SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C.  20549
                                   
                                   
                            FORM 8-K/A (7)
                            CURRENT REPORT
                                   
   Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
                                 1934.

  Date of report (Date of earliest event reported) December 28, 1995

                    Commission File Number 1-16914
                                   
                       THE E.W. SCRIPPS COMPANY
        (Exact name of registrant as specified in its charter)
                                   
                                   
                                   
                                   
         Delaware                                               51-0304972
(State or other jurisdiction of                                (I.R.S. Employer
incorporation or organization)                            Identification Number)

1105 N. Market Street
Wilmington, Delaware                                     19801
(Address of principal executive offices)               (Zip Code)

  Registrant's telephone number, including area code:  (302) 478-4141

                               Not Applicable
 (Former name, former address and former fiscal year, if changed since
                             last report.)
                                   
                                   



                  INDEX TO THE E. W. SCRIPPS COMPANY
                                   
    AMENDMENT TO CURRENT REPORT ON FORM 8-K DATED DECEMBER 28, 1995
                                   
This amendment to The E.W. Scripps Company Current Report on Form 8-K
filed on December 29, 1995 provides financial information for Scripps
Cable for the quarterly and year-to-date periods ended September 30,
1996  under Item 7.  Financial Statements and Exhibits.
                                   

Item No.                                                       Page

  7       Financial Statements and Exhibits

          (A)  Index to Financial Statements and Financial
                  Information                                  F - 1

          (B)  Index to Pro Forma Financial Information        P - 1


                                   


                              SIGNATURES


Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                                           THE E.W. SCRIPPS COMPANY




Dated : November 1, 1996                     By:  /s/ D. J. Castellini

                                                  D. J. Castellini
                                                  Senior Vice President,
                                                  Finance & Administration




                             SCRIPPS CABLE
                                   
        Index to Financial Statements and Financial Information

Item No.                                                                  Page

  1.     Combined Balance Sheets                                           F-2

  2.     Combined Statements of Income and Retained Earnings (Deficit)     F-4
  
  3.     Combined Statements of Cash Flows                                 F-5
  
  4.     Notes to Combined Financial Statements                            F-6

  5.     Management's Discussion and Analysis of Financial 
            Condition and Results of Operations of Scripps Cable           F-8






SCRIPPS CABLE                                                                                                                 
COMBINED BALANCE SHEETS                                                                                                       
( in thousands ) As of September December September 30, 31, 30, 1996 1995 1995 (Unaudited) (Unaudited) ASSETS CURRENT ASSETS : Cash and cash equivalents $ 1,596 $ 3,085 $ 970 Accounts receivable (less allowances - $1,270, $1,288, and $1,355) 11,496 12,107 11,532 Inventories 10,670 12,822 15,314 Deferred income taxes 5,421 5,421 5,421 Miscellaneous 6,954 446 1,855 Total current assets 36,137 33,881 35,092 PROPERTY, PLANT, AND EQUIPMENT : Land and improvements 3,804 3,691 3,700 Buildings and improvements 9,731 9,529 9,577 Equipment 631,964 587,052 570,544 Total property, plant, and equipment 645,499 600,272 583,821 Less accumulated depreciation 326,801 305,715 295,410 Net property, plant, and equipment 318,698 294,557 288,411 GOODWILL AND OTHER INTANGIBLE ASSETS : Goodwill 41,201 40,965 40,885 Non-competition agreements 5,495 5,800 5,800 Franchise costs 209,119 158,541 159,273 Customer lists 1,719 1,719 1,719 Other intangible assets 7,071 7,100 7,100 Total goodwill and other intangible assets 264,605 214,125 214,777 Less accumulated amortization 128,141 120,629 119,502 Net goodwill and other intangible assets 136,464 93,496 95,275 OTHER ASSETS 590 639 623 TOTAL $ 491,889 $ 422,573 $ 419,401 See notes to combined financial statements.
SCRIPPS CABLE COMBINED BALANCE SHEETS
( in thousands ) As of September December September 30, 31, 30, 1996 1995 1995 (Unaudited) (Unaudited) LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIENCY) CURRENT LIABILITIES : Accounts payable $ 10,179 $ 12,244 $ 13,607 Customer deposits and unearned revenue 2,979 2,475 2,401 Accrued liabilities : Employee compensation and benefits 1,778 1,174 1,398 Copyright and programming costs 7,783 7,164 7,302 Lawsuits and related settlements 2,157 3,784 6,100 Property taxes 2,720 1,038 3,159 Interest on advances from parent company 1,599 1,599 1,618 Income taxes 514 (22) (187) Miscellaneous 5,018 5,818 6,088 Total current liabilities 34,727 35,274 41,486 DEFERRED INCOME TAXES 103,576 80,193 79,737 ADVANCES FROM PARENT COMPANY 340,982 312,737 308,877 OTHER LONG-TERM OBLIGATIONS 8,775 9,325 9,490 COMMITMENTS AND CONTINGENCIES (Note 3) STOCKHOLDER'S EQUITY (DEFICIENCY) : Capital stock 1,801 1,801 1,801 Additional paid-in capital 35,144 35,144 35,144 Retained earnings (deficit) (33,116) (51,901) (57,134) Total stockholder's equity (deficiency) 3,829 (14,956) (20,189) TOTAL $ 491,889 $ 422,573 $ 419,401 See notes to combined financial statements.
SCRIPPS CABLE COMBINED STATEMENTS OF INCOME AND RETAINED EARNINGS (DEFICIT)
( in thousands ) (Unaudited) (Unaudited) Three months ended Nine months ended September 30, September 30, 1996 1995 1996 1995 OPERATING REVENUES $ 77,976 $ 71,110 $ 231,408 $ 207,855 OPERATING EXPENSES : Employee compensation and benefits 11,246 10,349 33,536 32,359 Programming and copyright costs 20,230 18,394 62,329 54,385 Other operating expenses 13,245 13,888 37,189 36,427 Depreciation and amortization 12,887 13,243 40,810 41,105 Total operating expenses 57,608 55,874 173,864 164,276 OPERATING INCOME 20,368 15,236 57,544 43,579 OTHER CREDITS (CHARGES) : Interest on advances from parent company (8,666) (8,334) (26,045) (25,571) Other interest expense (34) (27) (252) Gain on sale of cable television system 1,502 1,502 Miscellaneous, net (28) (14) (79) 812 Net other credits (charges) (8,694) (6,880) (26,151) (23,509) INCOME BEFORE INCOME TAXES 11,674 8,356 31,393 20,070 PROVISION FOR INCOME TAXES 4,683 3,360 12,608 7,613 NET INCOME 6,991 4,996 18,785 12,457 RETAINED EARNINGS (DEFICIT) : Beginning of period (40,107) (62,130) (51,901) (69,591) End of period $ (33,116) $ (57,134) $ (33,116) $ (57,134) See notes to combined financial statements.
SCRIPPS CABLE COMBINED STATEMENTS OF CASH FLOWS
( in thousands ) (Unaudited) Nine months ended September 30, 1996 1995 Cash Flows From Operating Activities: Net income $ 18,785 $ 12,457 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 40,810 41,105 Gain on sale of cable television system (1,502) Deferred income taxes (216) (905) Prepaid franchise fees 1,932 Refundable property taxes 10,400 Changes in certain working capital accounts (4,195) (7,547) Miscellaneous, net 181 154 Net operating activities 55,365 56,094 Cash Flows From Investing Activities: Additions to property, plant, and equipment (46,901) (30,119) Acquisition of cable television systems (62,099) (259) Miscellaneous, net 927 2,752 Net investing activities (108,073) (27,626) Cash Flows From Financing Activities: Increase (decrease) in advances from parent company 53,738 (25,384) Payments on advances from parent company (1,894) (1,717) Miscellaneous, net (625) (2,500) Net financing activities 51,219 (29,601) Increase (Decrease) in Cash and Cash Equivalents (1,489) (1,133) Cash and Cash Equivalents: Beginning of year 3,085 2,103 End of period $ 1,596 $ 970 Supplemental Cash Flow Disclosures: Interest paid $ 26,072 $ 25,722 Income taxes paid 12,213 9,222 See notes to combined financial statements.
NOTES TO COMBINED FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The combined financial statements of Scripps Cable include EWS Cable Company ("EWSCC") - 100 shares of no-par capital stock authorized, 50 shares issued and outstanding; L-R Cable Company ("LRCC") - 100 shares of no-par capital stock authorized, 50 shares issued and outstanding; Scripps Howard Cable Company ("SHCC") - 100 shares of no-par capital stock authorized, 80 shares issued and outstanding; Scripps Howard Cable Company of Sacramento ("SHCCS") - 2,000 shares of no-par capital stock authorized, 100 shares issued and outstanding, and cable television operations owned and operated by Scripps Howard Broadcasting Company ("SHB"). The historical basis in assets and liabilities of the cable television systems has been carried over. The historical combined financial statements do not necessarily reflect the results of operations or financial position that would have existed if Scripps Cable were an independent company. Scripps Howard, Inc. ("SHI" a wholly-owned subsidiary of Scripps) provides certain legal, treasury, accounting, tax, risk management and other corporate services to Scripps Cable. On October 28, 1995, Scripps and Comcast Corporation ("Comcast") reached an agreement pursuant to which Scripps will contribute all of its non-cable television assets to SHI and Scripps Cable will be transferred to and held directly by Scripps. Scripps Cable will be acquired by Comcast through a tax-free merger (the "Merger") of Scripps into Comcast. The remaining SHI business will continue as "New Scripps", which will be distributed in a tax-free "spin-off" to Scripps shareholders (the "Spin-Off") prior to the Merger and thereafter renamed The E.W. Scripps Company. The Merger and Spin- off are collectively referred to as the "Transactions." The closing date of the Transactions is expected to occur prior to the end of 1996, subject to certain conditions and rights, including termination and "top-up" rights described fully in the Joint Proxy Statement - Prospectus included in Comcast's registration statement on Form S-4 filed with the Securities and Exchange Commission and declared effective on September 30, 1996. The accompanying financial statements and the notes thereto have been prepared assuming consummation of the Transactions. The financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The information disclosed in the notes to combined financial statements for the year ended December 31, 1995 included in the fifth amendment to The E.W. Scripps Company's Current Report on Form 8-K dated December 28, 1995 has not changed materially unless otherwise disclosed herein. Financial information as of December 31, 1995 included in these financial statements has been derived from the audited combined financial statements included in that report. In management's opinion all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the interim periods have been made. Results of operations are not necessarily indicative of the results that may be expected for future interim periods or for the full year. Certain liabilities included in these combined financial statements (primarily income taxes payable, accruals for lawsuits and related settlements, and amounts due Scripps) will not be assumed by Comcast. At September 30, 1996 those liabilities totaled approximately $351,900,000. 2. ACQUISITIONS AND DIVESTITURES Acquisitions 1996 - In 1995 SHB reached an agreement to acquire cable television systems adjacent to the Knoxville and Chattanooga systems for $62,500,000 (the "Mid-Tenn Purchase"). The acquisitions were completed in January 1996. 1995 - SHCC acquired a cable television system. The following table presents additional information about the acquisitions:
( in thousands ) Nine months ended September 30, 1996 1995 Goodwill and other intangible assets acquired $ 50,606 $ 167 Other assets acquired 11,681 92 Total 62,287 259 Liabilities assumed (188) Cash paid $ 62,099 $ 259
The acquisitions have been accounted for as purchases. The acquired operations have been included in the Combined Statements of Income from the acquisition date. Pro forma results are not presented because the combined results of operations would not be significantly different from the reported amounts. Divestitures Scripps Cable sold its cable television system in Barbourville, Kentucky. The sale resulted in a pre-tax gain of $1,502,000. 3. COMMITMENTS AND CONTINGENCIES In 1994 Scripps Cable accrued an estimate of the ultimate costs, including attorneys' fees and settlements, of certain lawsuits against the Sacramento cable television system related primarily to employment issues and to the timing and amount of late-payment fees assessed to subscribers. In the third quarter of 1995 Scripps Cable accrued an additional $1,400,000 based upon a reassessment of the probable cost of these and additional employment related lawsuits. In May 1996 Scripps Cable agreed to settle the late-payment fee lawsuits. The settlement did not result in an additional charge. Management believes the possibility of incurring a loss greater than the amount accrued for the employment issues lawsuits is remote. Pursuant to the terms of the Merger, New Scripps will indemnify Comcast against losses related to these lawsuits. Amounts accrued, less payments for settlements and attorneys fees, are included in accrued lawsuits and related settlements in the Combined Balance Sheets. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF SCRIPPS CABLE Scripps Cable's revenues are primarily earned from subscriber fees for basic, cable programming and premium television services (including pay-per-view programming), and the rental of converters and remote control devices. Historically Scripps Cable's revenue growth has been primarily achieved through internal subscriber growth, additional services offered subscribers, acquisitions, and increases in rates for services provided to cable television subscribers. Regulations adopted by the Federal Communications Commission ("FCC") pursuant to the 1992 Cable Act have affected Scripps Cable's ability to increase rates for certain subscriber services or to restructure its rates for certain services. The Telecommunications Act of 1996 provides some significant relief from the burdens of rate regulation by, among other things, expanding the flexibility of operators to set differing rates for providing services to multiple dwelling units and by modifying the threshold for the filing of a complaint that would trigger review of new non-basic cable programming rates. Most importantly, the new law sets a maximum threshold of three years for the elimination of all rate regulation of non-basic cable programming services. RESULTS OF OPERATIONS Earnings before interest, income taxes, corporate management fees, depreciation, and amortization ("EBITDA") is included in the discussion of results of operations because: Changes in depreciation and amortization are often unrelated to current performance. Management believes the year-over-year change in EBITDA is a more useful measure of year-over-year performance than the change in operating income because, combined with information on capital spending plans, it is a more reliable indicator of results that may be expected in future periods. However, management's belief that EBITDA is a more useful measure of year-over-year performance is not shared by the accounting profession. Financial analysts use EBITDA to value cable television businesses. Acquisitions of cable television businesses are based on multiples of EBITDA. EBITDA should not, however, be construed as an alternative measure of the amount of Scripps Cable's income or cash flow from operating activities as EBITDA excludes significant costs of doing business. Combined results of operations are as follows:
( in thousands, except per subscriber information ) Quarterly Period Year-to-Date 1996 Change 1995 1996 Change 1995 Operating revenues: Basic and cable programming services $ 52,557 11.5 % $ 47,144 $ 156,048 13.0 % $ 138,139 Premium and pay-per-view services 14,154 5.0 % 13,485 42,438 9.3 % 38,814 Other monthly services 4,260 11.5 % 3,821 12,515 3.1 % 12,141 Advertising 3,539 3.9 % 3,405 10,218 8.4 % 9,428 Installation and miscellaneous 3,466 6.5 % 3,255 10,189 9.2 % 9,333 Total operating revenues 77,976 9.7 % 71,110 231,408 11.3 % 207,855 Operating expenses: Employee compensation and benefits 11,246 8.7 % 10,349 33,536 3.6 % 32,359 Programming and copyright costs 20,230 10.0 % 18,394 62,329 14.6 % 54,385 Other 13,245 6.1 % 12,486 37,189 6.2 % 35,025 Depreciation and amortization 12,887 (2.7)% 13,243 40,810 (0.7)% 41,105 Total operating expenses 57,608 5.8 % 54,472 173,864 6.7 % 162,874 Operating income excluding unusual items 20,368 22.4 % 16,638 57,544 27.9 % 44,981 Unusual items (1,402) (1,402) Operating income 20,368 15,236 57,544 43,579 Interest expense (8,666) (8,368) (26,072) (25,823) Gain on sale of cable television system 1,502 1,502 Miscellaneous, net (28) (14) (79) 812 Income taxes (4,683) (3,360) (12,608) (7,613) Net income $ 6,991 $ 4,996 $ 18,785 $ 12,457 Other Financial and Statistical Data EBITDA (excluding unusual items) $ 33,255 11.3 % $ 29,881 $ 98,354 14.3 % $ 86,086 Percent of operating revenues: Operating income 26.1 % 23.4 % 24.9 % 21.6 % EBITDA 42.6 % 42.0 % 42.5 % 41.4 % Capital expenditures $ 15,523 37.2 % $ 11,311 $ 46,901 55.7 % $ 30,119 Average number of basic subscribers 796.8 5.8 % 753.0 801.7 6.9 % 750.0 Average monthly revenue per monthly subscriber $32.62 3.6 % $31.48 $32.07 4.2 % $30.79 Program costs as a percent of basic and premium revenue 31.40% 30.73% Homes passed at end of period 1,261.1 6.5 % 1,184.4 Basic subscribers at end of period 809.1 6.7 % 758.5 Penetration at end of period 64.16% 64.04%
In January Scripps Cable acquired cable television systems adjacent to the Knoxville and Chattanooga systems for $62,500,000 (the "Mid-Tenn Purchase"). The acquired cable systems increased quarterly and year- to-date operating revenues approximately 4%. The remaining increase in operating revenues is due to subscriber growth and higher average monthly revenue per subscriber. Program costs have increased due to the growth in the number of subscribers, additional programming offered subscribers, and increased costs to produce or purchase programming. Other operating expenses and depreciation and amortization increased primarily due to the Mid- Tenn Purchase. The acquired cable systems increased EBITDA approximately 5%. In 1994 Scripps Cable accrued an estimate of the ultimate costs, including attorneys' fees and settlements, of certain lawsuits against the Sacramento cable television system related primarily to employment issues and to the timing and amount of late-payment fees assessed to subscribers. In the third quarter of 1995 Scripps Cable accrued an additional $1,400,000 based upon a reassessment of the probable cost of these and additional employment related lawsuits. The additional accrual reduced 1995 third quarter and year-to-date net income $900,000. Scripps Cable sold its cable television system in Barbourville, Kentucky in the third quarter of 1995. The sale resulted in a pre-tax gain of $1,502,000. LIQUIDITY AND CAPITAL RESOURCES Cash flow from operating activities was $55.4 million in 1996 and $56.1 million in 1995. Cash flow from operating activities in 1995 included an $11.3 million refund of disputed Sacramento property taxes, including interest. Scripps Cable invests heavily in its cable plant, continually replacing and modernizing its technology by rebuilding and upgrading its systems with fiber optic cable. Capital expenditures in 1996 increased primarily due to the rebuild of the Sacramento system. Acquisitions of cable television systems and capital expenditures are financed through cash flow from operating activities and, if necessary, additional advances from Scripps. Advances from Scripps increased in 1996 due to the Mid-Tenn Purchase. THE E.W. SCRIPPS COMPANY Index to Pro Forma Financial Information Item No. Page 1. Pro Forma Balance Sheet as of September 30, 1996. P - 2 2. Pro Forma Statements of Income for the Nine Months Ended September 30, 1996. P - 3 3. Notes to Pro Forma Financial Information. P - 4 THE E.W. SCRIPPS COMPANY PRO FORMA BALANCE SHEET AS OF SEPTEMBER 30, 1996
( in thousands ) REPORTED SCRIPPS PRO FORMA PRO FORMA AMOUNTS CABLE ADJUSTMENTS AMOUNTS ASSETS CURRENT ASSETS: Cash and cash equivalents $ 16,334 $ (8,000) (A) $ 8,334 Accounts and notes receivable 150,578 150,578 Program rights and production costs 70,805 70,805 Refundable income taxes 17,019 17,019 Inventories 9,932 9,932 Deferred income taxes 21,545 21,545 Miscellaneous 20,856 20,856 Total current assets 307,069 (8,000) 299,069 NET ASSETS OF DISCONTINUED CABLE OPERATIONS 354,951 $ 354,951 INVESTMENTS 54,494 54,494 PROPERTY, PLANT, AND EQUIPMENT 433,076 433,076 GOODWILL AND OTHER INTANGIBLE ASSETS 591,746 591,746 OTHER ASSETS: Program rights and production costs (less current portion) 27,622 27,622 Miscellaneous 21,386 21,386 Total other assets 49,008 49,008 TOTAL ASSETS $ 1,790,344 $ 354,951 $ (8,000) $ 1,427,393 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current portion of long-term debt $ 112,540 $ 112,540 Accounts payable 76,132 76,132 Customer deposits and unearned revenue 33,298 33,298 Accrued liabilities: Employee compensation and benefits 32,855 32,855 Artist and author royalties 10,209 10,209 Interest 3,510 3,510 Income taxes 1,220 1,220 Lawsuits and related settlements 4,387 4,387 Miscellaneous 24,748 24,748 Total current liabilities 298,899 298,899 DEFERRED INCOME TAXES 71,868 71,868 LONG-TERM DEBT (LESS CURRENT PORTION) 31,804 31,804 OTHER LONG-TERM OBLIGATIONS AND MINORITY INTERESTS 106,153 106,153 STOCKHOLDERS' EQUITY 1,281,620 $ 354,951 $ (8,000) (A) 918,669 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,790,344 $ 354,951 $ (8,000) $ 1,427,393
THE E.W. SCRIPPS COMPANY PRO FORMA STATEMENT OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
( in thousands, except per share data ) REPORTED SCRIPPS PRO FORMA PRO FORMA AMOUNTS CABLE ADJUSTMENTS AMOUNTS OPERATING REVENUES: Advertising $ 353,865 $ 353,865 Circulation 97,459 97,459 Other newspaper revenue 38,204 38,204 Total newspapers 489,528 489,528 Broadcast television 230,250 230,250 Entertainment 77,274 77,274 Total operating revenues 797,052 797,052 OPERATING EXPENSES: Employee compensation and benefits 266,294 266,294 Newsprint and ink 96,732 96,732 Program, production and copyright costs 50,824 50,824 Other operating expenses 194,332 194,332 Depreciation 36,697 36,697 Amortization of intangible assets 15,029 15,029 Total operating expenses 659,908 659,908 OPERATING INCOME 137,144 137,144 OTHER CREDITS (CHARGES): Interest expense (6,350) (6,350) Miscellaneous, net 614 614 Net other credits (charges) (5,736) (5,736) INCOME BEFORE TAXES AND MINORITY INTERESTS 131,408 131,408 PROVISION FOR INCOME TAXES 56,603 56,603 INCOME BEFORE MINORITY INTERESTS 74,805 74,805 MINORITY INTERESTS 2,326 2,326 INCOME FROM CONTINUING OPERATIONS 72,479 72,479 INCOME FROM DISCONTINUED OPERATIONS 34,645 $ 34,645 NET INCOME $ 107,124 $ 34,645 $ 72,479 AVERAGE WEIGHTED SHARES 80,328 80,328 80,328 PER SHARE OF COMMON STOCK: Income from continuing operations $.90 $.90 Income from discontinued operations .43 $.43 Net income $1.33 $.43 $.90
THE E.W. SCRIPPS COMPANY NOTES TO PRO FORMA FINANCIAL INFORMATION On October 28, 1995, The E.W. Scripps Company ("Scripps") and Comcast Corporation ("Comcast") reached an agreement pursuant to which Scripps will contribute all of its non-cable television assets to Scripps Howard, Inc. ("SHI" - a wholly-owned subsidiary of Scripps and the direct or indirect parent of all of Scripps' operations) and SHI's cable television subsidiaries ("Scripps Cable") will be transferred to and held directly by Scripps. Scripps Cable will be acquired by Comcast through a tax-free merger (the "Merger") of Scripps into Comcast. The remaining SHI business will continue as "New Scripps", which will be distributed in a tax-free "spin-off" to Scripps shareholders (the "Spin-Off") prior to the Merger and thereafter renamed The E.W. Scripps Company. The Merger and Spin- off are collectively referred to as the "Transactions." The closing date of the Transactions is expected to occur prior to the end of 1996, subject to certain conditions and rights, including termination and "top-up" rights described fully in the Joint Proxy Statement - Prospectus included in Comcast's registration statement on Form S-4 filed with the Securities and Exchange Commission and declared effective on September 30, 1996. The accompanying financial statements and the notes thereto have been prepared assuming consummation of the Transactions. The pro forma balance sheet as of September 30, 1996 assumes the Transactions occurred as of that date. The pro forma statement of income assumes the Transactions were completed at the beginning of the period. Pro forma adjustments represent fees on the Transactions. Earnings per share is based on the weighted average shares outstanding for the period. The pro forma financial information is not necessarily indicative of the results which actually would have occurred had the Transactions been completed as of the dates indicated or which may occur in the future. Explanation of specific pro forma adjustments are as follows: (A) Effect of estimated expenses of $8.0 million on Stockholders' Equity.