##### Table of Contents



U.S. Securities and Exchange Commission
 Washington, D.C. 20549
 Form 10-Q
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2006
 Commission
file number 000-24498
 DIAMOND HILL INVESTMENT GROUP, INC
  Ohio
    
    65-0190407(State of incorporation)
    
    (I.R.S. Employer Identification No.)
 325 John H. McConnell Blvd, Suite 200, Columbus, Ohio 43215
 (614) 255-3333
  þ o
 12b-2
 o o þ
  o þ




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##### 



PAGEPart I: FINANCIAL INFORMATIONItem 1. Consolidated Financial Statements
    
    
    3Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operation
    
    
    16-21Item 3. Quantitative and Qualitative Disclosures About Market RiskItem 4. Controls and Procedures
    
    
    21Part II: OTHER INFORMATION
    
    
    21-22Item 1. Legal Proceedings
    
    
    21Item 2. Unregistered Sales of Equity Securities and use of Proceeds
    
    
    21Item 3. Defaults Upon Senior Securities
    
    
    21Item 4. Submission of Matters to a Vote of Security Holders
    
    
    22Item 5. Other Information
    
    
    22Item 6. Exhibits
    
    
    22Signatures
    
    
    23EX-31.1EX-31.2EX-32.1
  2




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##### Table of Contents



PART I            FINANCIAL INFORMATION
 
 ITEM 1: Financial Statements
 Diamond Hill Investment Group, Inc.
Consolidated Balance Sheets (unaudited)
 9/30/2006
    
    
    12/31/2005ASSETSCash and cash equivalents
    
    $
    6,006,447
    
    
    $
    2,532,334Investment portfolio (note 3)
    
    
    13,312,698
    
    
    
    5,855,370Accounts receivable
    
    
    3,658,125
    
    
    
    1,897,701Prepaid expenses
    
    
    789,596
    
    
    
    580,109Fixed assets, net of depreciation and other assets
    
    
    475,163
    
    
    
    111,863Deferred taxes (note 6)
    
    
    
    
    
    
    1,770,132Total assets
    
    $
    24,242,029
    
    
    $
    12,747,509LIABILITIES AND SHAREHOLDERS EQUITYLiabilitiesAccounts payable and accrued expenses
    
    
    736,788
    
    
    
    336,497Accrued incentive compensation
    
    
    7,647,335
    
    
    
    1,550,000Deferred taxes
    
    
    252,611
    
    
    
    Total Liabilities
    
    
    8,636,734
    
    
    
    1,886,497Commitments and contingeies (Note 7)
    
    
    
    
    
    
    Shareholders Equity (note 4)Common stock, no par value 
7,000,000 shares authorized; 1,827,972 issued 
1,802,726 outstanding at September 30, 2006
1,755,899 outstanding at December 31, 2005
    
    
    14,839,560
    
    
    
    13,199,444Preferred stock, undesignated, 1,000,000 shares
authorized and unissued
    
    
    
    
    
    
    Treasury stock, at cost

25,246 shares at September 30, 2006

72,073 shares at December 31, 2005
    
    
    (144,445
    )
    
    
    (412,370
    )Deferred compensation
    
    
    (1,433,055
    )
    
    
    (292,381
    )Retained earnings / (Accumulated deficit)
    
    
    2,343,235
    
    
    
    (1,633,681
    )Total shareholders equity
    
    
    15,605,295
    
    
    
    10,861,012Total liabilities and shareholders equity
    
    $
    24,242,029
    
    
    $
    12,747,509
  3




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##### Table of Contents



Diamond Hill Investment Group, Inc.
Consolidated Statements of Income (unaudited)
 THREE MONTHS ENDED
    
    
    NINE MONTHS ENDED9/30/2006
    
    
    9/30/2005
    
    
    9/30/2006
    
    
    9/30/2005INVESTMENT MANAGEMENT REVENUE:Mutual funds
    
    $
    3,919,192
    
    
    $
    922,618
    
    
    $
    9,149,927
    
    
    $
    2,120,078Managed accounts
    
    
    1,311,577
    
    
    
    787,969
    
    
    
    4,098,617
    
    
    
    1,721,687Private investment funds
    
    
    280,649
    
    
    
    1,586,728
    
    
    
    2,500,837
    
    
    
    2,034,912Total investment management revenue
    
    
    5,511,418
    
    
    
    3,297,315
    
    
    
    15,749,381
    
    
    
    5,876,677OPERATING EXPENSES:Compensation and related costs
    
    
    3,719,230
    
    
    
    3,148,925
    
    
    
    10,638,098
    
    
    
    4,449,369Legal and audit
    
    
    26,364
    
    
    
    15,859
    
    
    
    151,633
    
    
    
    77,170General and administrative
    
    
    254,879
    
    
    
    162,977
    
    
    
    639,285
    
    
    
    424,947Sales and marketing
    
    
    86,009
    
    
    
    82,591
    
    
    
    219,226
    
    
    
    192,456Total operating expenses
    
    
    4,086,482
    
    
    
    3,410,352
    
    
    
    11,648,242
    
    
    
    5,143,942NET OPERATING INCOME
    
    
    1,424,936
    
    
    
    (113,037
    )
    
    
    4,101,139
    
    
    
    732,735Mutual fund administration, net (note 9)
    
    
    596,223
    
    
    
    (9,007
    )
    
    
    1,220,062
    
    
    
    (126,709
    )Investment return
    
    
    113,187
    
    
    
    211,718
    
    
    
    903,287
    
    
    
    378,469INCOME BEFORE TAXES
    
    
    2,134,346
    
    
    
    89,674
    
    
    
    6,224,488
    
    
    
    984,495Income tax provision
    
    
    (772,101
    )
    
    
    
    
    
    
    (2,241,463
    )
    
    
    NET INCOME
    
    $
    1,362,245
    
    
    $
    89,674
    
    
    $
    3,983,025
    
    
    $
    984,495Earnings per shareBasic
    
    $
    0.76
    
    
    $
    0.05
    
    
    $
    2.24
    
    
    $
    0.60Diluted
    
    $
    0.61
    
    
    $
    0.04
    
    
    $
    1.81
    
    
    $
    0.50Weighted average shares outstandingBasic
    
    
    1,789,147
    
    
    
    1,658,446
    
    
    
    1,775,633
    
    
    
    1,642,623Diluted
    
    
    2,239,245
    
    
    
    1,999,620
    
    
    
    2,204,621
    
    
    
    1,965,743
  4




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##### Table of Contents



Diamond Hill Investment Group, Inc.
Consolidated Statements of Cash Flow (unaudited)
 NINE MONTHS ENDED9/30/2006
    
    
    9/30/2005CASH FLOWS FROM OPERATING ACTIVITIES:Net Income
    
    $
    3,983,025
    
    
    $
    984,495Adjustments to reconcile net income to net cash used in
operating activities:Depreciation on property and equipment
    
    
    44,724
    
    
    
    29,023Amortization of deferred compensation
    
    
    149,931
    
    
    
    40,275(Increase) decrease in accounts receivable
    
    
    (1,760,424
    )
    
    
    (818,879
    )(Increase) decrease in deferred taxes
    
    
    2,180,116
    
    
    
    Stock option expense
    
    
    24,582
    
    
    
    (Increase) decrease in unrealized gains
    
    
    (684,669
    )
    
    
    (316,683
    )Increase (decrease) in accrued liabilities
    
    
    6,497,626
    
    
    
    2,424,888Other changes in assets and liabilities
    
    
    (210,034
    )
    
    
    (161,812
    )Net cash provided by operating activities
    
    
    10,224,877
    
    
    
    2,181,307CASH FLOWS FROM INVESTING ACTIVITIES:Purchase of property and equipment
    
    
    (408,024
    )
    
    
    (20,708
    )Investment portfolio activity
    
    
    (6,772,659
    )
    
    
    (1,051,976
    )Net cash used in investing activities
    
    
    (7,180,683
    )
    
    
    (1,072,684
    )CASH FLOWS FROM FINANCING ACTIVITIES:Sale of treasury stock
    
    
    429,919
    
    
    
    773,401NET INCREASE IN CASH
    
    
    3,474,113
    
    
    
    1,882,024CASH, BEGINNING OF PERIOD
    
    
    2,532,334
    
    
    
    102,566CASH, END OF PERIOD
    
    $
    6,006,447
    
    
    $
    1,984,590Cash paid during the period for:Interest
    
    
    
    
    
    
    Income taxes
    
    $
    60,000
    
    
    
    
  5




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ORGANIZATION AND NATURE OF BUSINESS
      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  Reclassifications
  Principles of Consolidation
  6




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##### Table of Contents



SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
 Accounts Receivable
  Regulatory Requirements
  Valuation of Investment Portfolio
  Limited Partnership Interests
  Property and Equipment
  Incentive Compensation
  7




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##### Table of Contents



SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
 Earnings Per Share
   Numerator
    
    Denominator
    
    AmountBasic Earnings
    
    $
    1,362,245
    
    
    
    1,789,147
    
    
    $
    0.76Diluted Earnings
    
    $
    1,362,245
    
    
    
    2,239,245
    
    
    $
    0.61
  Numerator
    
    Denominator
    
    AmountBasic Earnings
    
    $
    89,674
    
    
    
    1,658,446
    
    
    $
    0.05Diluted Earnings
    
    $
    89,674
    
    
    
    1,999,620
    
    
    $
    0.04
  Numerator
    
    Denominator
    
    AmountBasic Earnings
    
    $
    3,983,025
    
    
    
    1,775,633
    
    
    $
    2.24Diluted Earnings
    
    $
    3,983,025
    
    
    
    2,204,621
    
    
    $
    1.81
  Numerator
    
    Denominator
    
    AmountBasic Earnings
    
    $
    984,495
    
    
    
    1,642,623
    
    
    $
    0.60Diluted Earnings
    
    $
    984,495
    
    
    
    1,965,743
    
    
    $
    0.50
 Fair Value of Financial Instruments
  8




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##### Table of Contents



INVESTMENT PORTFOLIO
   UnrealizedMarket
    
    
    Cost
    
    
    Gains (Losses)Diamond Hill Small Cap Fund
    
    $
    60,082
    
    
    $
    50,632
    
    
    $
    9,450Diamond Hill Small-Mid Cap Fund
    
    
    305,400
    
    
    
    300,000
    
    
    
    5,400Diamond Hill Large Cap Fund
    
    
    269,941
    
    
    
    250,477
    
    
    
    19,464Diamond Hill Select Fund
    
    
    312,590
    
    
    
    300,000
    
    
    
    12,590Diamond Hill Long-Short Fund
    
    
    271,569
    
    
    
    250,657
    
    
    
    20,912Diamond Hill Strategic Income Fund
    
    
    1,614,682
    
    
    
    1,543,637
    
    
    
    71,045Diamond Hill Investment Partners, LP
    
    
    6,447,764
    
    
    
    4,945,792
    
    
    
    1,501,972Diamond Hill Investment Partners II, LP
    
    
    4,030,670
    
    
    
    4,000,000
    
    
    
    30,670Total
    
    
    13,312,698
    
    
    
    11,641,195
    
    
    
    1,671,503
  UnrealizedMarket
    
    
    Cost
    
    
    Gains (Losses)Diamond Hill Small Cap Fund
    
    $
    60,817
    
    
    $
    50,632
    
    
    $
    10,185Diamond Hill Small-Mid Cap Fund
    
    
    300,000
    
    
    
    300,000
    
    
    
    Diamond Hill Large Cap Fund
    
    
    58,918
    
    
    
    50,477
    
    
    
    8,441Diamond Hill Select Fund
    
    
    300,000
    
    
    
    300,000
    
    
    
    Diamond Hill Long-Short Fund
    
    
    60,405
    
    
    
    50,657
    
    
    
    9,748Diamond Hill Strategic Income Fund
    
    
    1,024,171
    
    
    
    977,295
    
    
    
    46,876Diamond Hill Investment Partners, LP
    
    
    4,051,059
    
    
    
    3,139,474
    
    
    
    911,585Total
    
    
    5,855,370
    
    
    
    4,868,535
    
    
    
    986,835
  2006
    
    2005Total assets
    
    $
    283,346,165
    
    
    $
    176,442,538Total liabilities
    
    
    118,102,080
    
    
    
    69,122,518Net assets
    
    
    165,244,085
    
    
    
    107,320,020Net income
    
    
    13,592,611
    
    
    
    20,215,378DHCMs portion of net assets
    
    
    10,478,434
    
    
    
    4,051,059DHCMs portion of net income
    
    
    2,427,374
    
    
    
    2,972,757
 9




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INVESTMENT PORTFOLIO
  Three Months Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2006
    
    2005
    
    2006
    
    2005Management
Fee  Private Funds
    
    $
    280,649
    
    
    $
    137,047
    
    
    $
    694,521
    
    
    $
    298,266Incentive Fee  Private Funds
    
    
    
    
    
    
    1,449,682
    
    
    
    1,806,317
    
    
    
    1,736,646Incentive Fee  Separate Accounts
    
    
    
    
    
    
    182,973
    
    
    
    703,557
    
    
    
    182,973
 CAPITAL STOCK
 Common Shares
  Treasury Stock
  Authorization of Preferred Stock
  10




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##### Table of Contents



STOCK-BASED COMPENSATION
 Equity Incentive Plans
 2005 Employee and Director Equity Incentive Plan
  1993 Non-qualified and Incentive Stock Option Plan
  Equity Compensation Grants
  401k Plan
  11




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##### Table of Contents



STOCK-BASED COMPENSATION (continued)
 Other Stock-Based Compensation Information
   Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Net income, as reported
    
    
    1,362,245
    
    
    
    89,674
    
    
    
    3,983,025
    
    
    
    984,495Add:Stock-based employee
compensation expense
included in reported
net income, net of
related tax effects
    
    
    3,015
    
    
    
    
    
    
    
    24,582
    
    
    
    Deduct:Total stock-based
employee
compensation expense
determined under
fair value based
methods for all
awards net of
related tax effects
    
    
    (3,015
    )
    
    
    (8,040
    )
    
    
    (24,582
    )
    
    
    (35,634
    )Pro forma net income
    
    
    1,362,245
    
    
    
    81,634
    
    
    
    3,983,025
    
    
    
    948,861Earnings per share:Basic  as reported
    
    $
    0.76
    
    
    $
    0.05
    
    
    $
    2.24
    
    
    $
    0.60Basic  pro forma
    
    $
    0.76
    
    
    $
    0.05
    
    
    $
    2.24
    
    
    $
    0.58Diluted  as reported
    
    $
    0.61
    
    
    $
    0.04
    
    
    $
    1.81
    
    
    $
    0.50Diluted  pro forma
    
    $
    0.61
    
    
    $
    0.04
    
    
    $
    1.81
    
    
    $
    0.48
  12




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##### Table of Contents



STOCK-BASED COMPENSATION (continued)
  Options
    
    
    WarrantsExercise
    
    
    
    
    
    
    ExerciseShares
    
    
    Price
    
    
    Shares
    
    
    PriceOutstanding December 31, 2004
    
    
    260,202
    
    
    $
    10.581
    
    
    
    280,400
    
    
    $
    12.897Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    29,000
    
    
    
    13.211
    
    
    
    15,000
    
    
    
    14.375Expired unexercised
    
    
    5,000
    
    
    
    14.375
    
    
    
    6,000
    
    
    
    14.375Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Outstanding September 30, 2005
    
    
    226,202
    
    
    
    10.160
    
    
    
    259,400
    
    
    
    12.777Exercisable September 30, 2005
    
    
    152,202
    
    
    $
    16.429
    
    
    
    259,400
    
    
    $
    12.777Outstanding December 31, 2005
    
    
    303,002
    
    
    $
    14.481
    
    
    
    259,400
    
    
    $
    12.778Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    10,531
    
    
    
    10.379
    
    
    
    2,000
    
    
    
    11.250Used in conjunction with cashless exercise
    
    
    269
    
    
    
    28.100Expired unexercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Outstanding September 30, 2006
    
    
    292,202
    
    
    
    14.616
    
    
    
    257,400
    
    
    
    12.789Exercisable September 30, 2006
    
    
    252,202
    
    
    $
    16.221
    
    
    
    257,400
    
    
    $
    12.789
 13




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##### Table of Contents



STOCK-BASED COMPENSATION (continued)
  Options Outstanding
    
    
    
    
    
    Options ExercisableWeightedAverageRemaining
    
    Weighted
    
    
    
    
    
    WeightedNumber
    
    Contractual
    
    Average
    
    Options
    
    AverageExercise Prices
    
    Outstanding
    
    Life
    
    Exercise Price
    
    Exercisable
    
    Exercise Price$73.75
    
    
    16,202
    
    
    1.62 years
    
    $
    73.75
    
    
    
    16,202
    
    
    $
    73.75$7.95
    
    
    10,000
    
    
    3.86 years
    
    $
    7.95
    
    
    
    10,000
    
    
    $
    7.95$8.438
    
    
    10,000
    
    
    4.22 years
    
    $
    8.438
    
    
    
    10,000
    
    
    $
    8.438$28.10
    
    
    71,000
    
    
    4.22 years
    
    $
    28.10
    
    
    
    71,000
    
    
    $
    28.10$8.45
    
    
    10,000
    
    
    4.51 years
    
    $
    8.45
    
    
    
    10,000
    
    
    $
    8.45$5.25
    
    
    60,000
    
    
    4.79 years
    
    $
    5.25
    
    
    
    60,000
    
    
    $
    5.25$4.50
    
    
    115,000
    
    
    6.68 years
    
    $
    4.50
    
    
    
    75,000
    
    
    $
    4.50Total
    
    
    292,202
    
    
    5.16 years
    
    $
    14.6163
    
    
    
    252,202
    
    
    $
    16.221
 Warrants Outstanding
    
    
    
    
    
    Warrants ExercisableWeightedAverageRemaining
    
    Weighted
    
    
    
    
    
    WeightedNumber
    
    Contractual
    
    Average
    
    Number
    
    AverageExercise Prices
    
    Outstanding
    
    Life
    
    Exercise Price
    
    Exercisable
    
    Exercise Price$10.625
    
    
    13,000
    
    
    0.43 years
    
    $
    10.625
    
    
    
    13,000
    
    
    $
    10.625$73.75
    
    
    14,000
    
    
    1.62 years
    
    $
    73.75
    
    
    
    14,000
    
    
    $
    73.75$22.50
    
    
    16,400
    
    
    2.50 years
    
    $
    22.50
    
    
    
    16,400
    
    
    $
    22.50$11.25
    
    
    12,000
    
    
    3.42 years
    
    $
    11.25
    
    
    
    12,000
    
    
    $
    11.25$8.75
    
    
    2,000
    
    
    3.61 years
    
    $
    8.75
    
    
    
    2,000
    
    
    $
    8.75$8.00
    
    
    200,000
    
    
    3.61 years
    
    $
    8.00
    
    
    
    200,000
    
    
    $
    8.00Total
    
    
    257,400
    
    
    3.24 years
    
    $
    12.789
    
    
    
    257,400
    
    
    $
    12.789
 INCOME TAXES
  COMMITMENTS AND CONTINGENCIES
  14




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OPERATING LEASES
  2006
    
    2007
    
    2008
    
    2009
    
    2010
    
    2011
    
    2012
    
    2013$35,176
    
    $156,900
    
    $171,700
    
    $177,100
    
    $182,500
    
    $188,000
    
    $195,000
    
    $82,600
  MUTUAL FUND ADMINISTRATION
  THREE MONTHS ENDED
    
    NINE MONTHS ENDED9/30/2006
    
    9/30/2005
    

    9/30/2006

    
    9/30/2005MF Admin revenue, gross
    
    
    1,622,207
    
    
    
    438,202
    
    
    
    3,965,176
    
    
    
    1,078,137MF Admin
expense, fund related
    
    
    (627,200
    )
    
    
    (212,554
    )
    
    
    (1,626,527
    )
    
    
    (615,412
    )MF Admin revenue, net
    
    
    995,007
    
    
    
    225,648
    
    
    
    2,338,649
    
    
    
    462,725MF Admin expense
    
    
    (421,488
    )
    
    
    (244,115
    )
    
    
    (1,186,842
    )
    
    
    (607,419
    )Sub-Total: Net MF Admin income / (expense)
    
    
    573,519
    
    
    
    (18,467
    )
    
    
    1,151,807
    
    
    
    (144,694
    )C-Share financing revenue
    
    
    319,300
    
    
    
    158,643
    
    
    
    850,394
    
    
    
    377,042C-Share financing expense
    
    
    (296,596
    )
    
    
    (149,183
    )
    
    
    (782,139
    )
    
    
    (359,057
    )Sub-Total: Net C-Share financing income
    
    
    22,704
    
    
    
    9,460
    
    
    
    68,255
    
    
    
    17,985Mutual Fund Administration net income / (expense)
    
    
    596,223
    
    
    
    (9,007
    )
    
    
    1,220,062
    
    
    
    (126,709
    )
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ITEM 2: Managements Discussion and Analysis of Financial Condition and Results of Operation
 Forward-looking Statements
  General
   Assets Under Management
  September 30, 2006
    
    
    December 31, 2005
    
    
    September 30, 2005Mutual Funds
    
    $
    2,193
    
    
    
    907
    
    
    
    565Separately Managed Accounts
    
    $
    747
    
    
    
    513
    
    
    
    489Private Investment Funds
    
    $
    177
    
    
    
    111
    
    
    
    96Total Assets Under Management
    
    $
    3,117
    
    
    
    1,531
    
    
    
    1,150
 Three months ended September 30, 2006 compared to three months ended September 30, 2005
 
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Nine months ended September 30, 2006 compared to nine months ended September 30, 2005
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Liquidity and Capital Resources
      Impact of Inflation and Other Factors
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ITEM 3: Quantitative and Qualitative Disclosures About Market Risk
  
 ITEM 4: Controls and Procedures
 
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PART II: OTHER INFORMATION
 
 ITEM 1: Legal Proceedings 
 ITEM 1A: Risk Factors
  
 ITEM 2: Unregistered Sales of Equity Securities and use of Proceeds
 
 ITEM 3: Defaults Upon Senior Securities 
 
 ITEM 4: Submission of Matters to a Vote of Security Holders
 
 ITEM 5: Other Information 
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##### Table of Contents



ITEM 6: Exhibits
 3.1
    
    Amended and Restated Articles of Incorporation of the Company. (Incorporated by
reference from Form 8-K Current Report for the event on May 2, 2002 filed with the SEC
on May 7, 2002; File No. 000-24498.)3.2
    
    Code of Regulations of the Company. (Incorporated by reference from Form 8-K Current
Report for the event on May, 2002 filed with the SEC on May 7, 2002; File No.
000-24498.)10.1
    
    Representative Investment Management Agreement between Diamond Hill Capital
Management, Inc. and the Diamond Hill Funds. (Incorporated by reference from Form
N1-A filed with the SEC on December 30, 2005; File No. 811-08061.)10.2
    
    Fourth Amended and Restated Administrative, Fund Accounting, and Transfer Agency
Services Agreement between Diamond Hill Capital Management, Inc. and the Diamond Hill
Funds. (Incorporated by reference from Form N1-A filed with the SEC on May 2, 2006;
File No. 811-08061.)10.3
    
    1993 Non-Qualified and Incentive Stock Option Plan. (Incorporated by reference from
Form DEF 14A filed with the SEC on July 21, 1998; File No. 000-24498.)10.4
    
    Employment Agreement between the Company and Roderick H. Dillon, Jr. dated August 10,
2006. (Incorporated by reference from Form 8-K Current Report filed with the SEC on
August 10, 2006; File No. 000-24498.)10.5
    
    Employment Agreement between the Company and James F. Laird dated October 24, 2001.
(Incorporated by reference from Form 10-KSB for 2002 filed with the SEC on March 28,
2003; File No. 000-24498.)10.6
    
    2005 Employee and Director Equity Incentive Plan. (Incorporated by reference from
Form DEF 14A filed with the SEC on April 5, 2005; File No. 000-24498.)10.7
    
    2006 Performance-Based Compensation Plan. (Incorporated by reference from Form 8-K
Current Report filed with the SEC on May 16, 2006; File No. 000-24498.)14.1
    
    Code of Business Conduct and Ethics. (Incorporated by reference from Form DEF 14A
filed with the SEC on April 9, 2004; File No. 000-24498.)31.1
    
    Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a).31.2
    
    Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a).32.1
    
    Section 1350 Certifications.
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##### Table of Contents



SIGNATURES
  Signature
    
    
    
    Title
    
    Date/s/R. H. Dillon

R. H. Dillon
    
    
    
    President, Chief Executive Officer, and
a Director
    
    November 10, 2006/s/James F. Laird

James F. Laird
    
    
    
    Chief Financial Officer, Treasurer, and
Secretary
    
    November 10, 2006
 23