Delaware
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0-22823
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77-0105228
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification Number)
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100 Innovation Place, Santa Barbara, California
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93108
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(Address of principal executive offices)
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(Zip code)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
d) | Exhibits. |
Exhibit No.
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Description
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||
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Press Release, dated as of August 27, 2013, entitled “QAD Reports Fiscal 2014 Second Quarter Financial Results”
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QAD Inc.
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Date: August 27, 2013
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By: /s/ Daniel Lender
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Daniel Lender
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Chief Financial Officer
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For More Information, Contact:
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John Neale
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Laurie Berman/Matt Sheldon
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QAD Senior Vice President and Treasurer
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PondelWilkinson Inc.
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805.566.5117
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310.279.5980
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investor@qad.com
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pwinvestor@pondel.com
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· | Received license or On Demand orders from companies across QAD’s six vertical markets, including: Asteelflash Group SA, Autoliv Asia Management, General Mills India, Pvt. Ltd., Hewlett-Packard Company, JW Measurement Company, KYB, Reed-Lane, Inc., Saint Gobain, Sharp Corporation, Sunrise Medical Limited, TS Tech Americas Inc., VION ICT Services Ltd., and Xomox International; |
· | Enhanced the quality control and traceability frameworks in QAD Enterprise Applications to make it easier for life sciences manufacturers to ensure drug authenticity, product safety and quality control including support of the Federal Drug Administration’s new regulations regarding unique device identification (UDI); |
· | Delivered a collaborative support portal for QAD’s demand and supply chain planning solutions to help customers synchronize, view, analyze, simulate, and understand all supply chain data across all users; and, |
· | Earned a top “Logistics IT Provider” spot from Inbound Logistics magazine for the second consecutive year for its Precision Software division. |
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Three Months Ended
July 31, |
Six Months Ended
July 31, |
||||||||||||||
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2013
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2012
|
2013
|
2012
|
||||||||||||
Revenue:
|
||||||||||||||||
License fees
|
$
|
8,604
|
$
|
6,906
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$
|
14,822
|
$
|
14,771
|
||||||||
Maintenance and other
|
34,254
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33,886
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69,455
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68,406
|
||||||||||||
Subscription fees
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4,455
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3,745
|
8,497
|
6,968
|
||||||||||||
Professional services
|
17,881
|
16,432
|
34,347
|
34,532
|
||||||||||||
Total revenue
|
65,194
|
60,969
|
127,121
|
124,677
|
||||||||||||
Cost of revenue:
|
||||||||||||||||
License
|
1,058
|
832
|
2,013
|
1,713
|
||||||||||||
Maintenance, subscription and other
|
11,047
|
10,341
|
22,109
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20,341
|
||||||||||||
Professional services
|
16,672
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15,846
|
33,280
|
31,584
|
||||||||||||
Total cost of revenue
|
28,777
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27,019
|
57,402
|
53,638
|
||||||||||||
Gross profit
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36,417
|
33,950
|
69,719
|
71,039
|
||||||||||||
Operating expenses:
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||||||||||||||||
Sales and marketing
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15,850
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14,747
|
31,906
|
30,243
|
||||||||||||
Research and development
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10,469
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9,210
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21,314
|
18,744
|
||||||||||||
General and administrative
|
8,431
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8,378
|
16,377
|
16,483
|
||||||||||||
Amortization of intangibles from acquisitions
|
177
|
57
|
353
|
57
|
||||||||||||
Total operating expenses
|
34,927
|
32,392
|
69,950
|
65,527
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||||||||||||
Operating income (loss)
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1,490
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1,558
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(231
|
)
|
5,512
|
|||||||||||
Other (income) expense:
|
||||||||||||||||
Interest income
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(73
|
)
|
(164
|
)
|
(170
|
)
|
(327
|
)
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||||||||
Interest expense
|
209
|
330
|
412
|
616
|
||||||||||||
Other (income) expense, net
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(809
|
)
|
92
|
(1,082
|
)
|
538
|
||||||||||
Total other (income) expense, net
|
(673
|
)
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258
|
(840
|
)
|
827
|
||||||||||
Income before income taxes
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2,163
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1,300
|
609
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4,685
|
||||||||||||
Income tax expense
|
909
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341
|
618
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1,882
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||||||||||||
Net income (loss)
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$
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1,254
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$
|
959
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$
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(9
|
)
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$
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2,803
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|||||||
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||||||||||||||||
Diluted Net Income per Share
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||||||||||||||||
Class A
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$
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0.08
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$
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0.06
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$
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-
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$
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0.18
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||||||||
Class B
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$
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0.07
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$
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0.05
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$
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-
|
$
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0.15
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||||||||
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||||||||||||||||
Diluted Weighted Shares
|
||||||||||||||||
Class A
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12,903
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13,082
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12,451
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13,144
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||||||||||||
Class B
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3,231
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3,264
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3,145
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3,274
|
|
July 31,
|
January 31,
|
||||||
|
2013
|
2013
|
||||||
Assets
|
||||||||
Current assets:
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||||||||
Cash and equivalents
|
$
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69,395
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$
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65,009
|
||||
Accounts receivable, net
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42,733
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72,564
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||||||
Deferred tax assets, net
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4,289
|
4,414
|
||||||
Other current assets
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13,786
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13,806
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||||||
Total current assets
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130,203
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155,793
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||||||
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||||||||
Property and equipment, net
|
33,280
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32,526
|
||||||
Capitalized software costs, net
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3,690
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4,180
|
||||||
Goodwill
|
11,302
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11,412
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||||||
Long-term deferred tax assets, net
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16,291
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16,431
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||||||
Other assets, net
|
5,325
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5,606
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||||||
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||||||||
Total assets
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$
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200,091
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$
|
225,948
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||||
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||||||||
Liabilities and stockholders' equity
|
||||||||
Current liabilities:
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||||||||
Current portion of long-term debt
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$
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380
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$
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372
|
||||
Accounts payable and other current liabilities
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34,743
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43,952
|
||||||
Deferred revenue
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86,031
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101,193
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||||||
Total current liabilities
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121,154
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145,517
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||||||
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||||||||
Long-term debt
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15,279
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15,474
|
||||||
Other liabilities
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5,891
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6,759
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||||||
|
||||||||
Stockholders' equity:
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||||||||
Common stock
|
18
|
18
|
||||||
Additional paid-in capital
|
150,519
|
149,777
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||||||
Treasury stock
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(29,726
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)
|
(31,093
|
)
|
||||
Accumulated deficit
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(55,399
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)
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(52,468
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)
|
||||
Accumulated other comprehensive loss
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(7,645
|
)
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(8,036
|
)
|
||||
Total stockholders' equity
|
57,767
|
58,198
|
||||||
|
||||||||
Total liabilities and stockholders' equity
|
$
|
200,091
|
$
|
225,948
|
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Six Months Ended
|
|||||||
|
July 31,
|
|||||||
|
2013
|
2012
|
||||||
|
||||||||
Net cash provided by operating activities
|
$
|
13,079
|
$
|
11,373
|
||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(3,000
|
)
|
(2,029
|
)
|
||||
Acquisition of businesses, net of cash acquired
|
-
|
(4,713
|
)
|
|||||
Capitalized software costs
|
(148
|
)
|
(199
|
)
|
||||
Other, net
|
31
|
2
|
||||||
Net cash used in investing activities
|
(3,117
|
)
|
(6,939
|
)
|
||||
|
||||||||
Cash flows from financing activities:
|
||||||||
Repayments of debt
|
(187
|
)
|
(111
|
)
|
||||
Tax payments, net of proceeds, related to stock awards
|
(589
|
)
|
(786
|
)
|
||||
Excess tax benefits from share-based payment arrangements
|
51
|
123
|
||||||
Repurchase of stock
|
(686
|
)
|
(3,899
|
)
|
||||
Dividends paid in cash
|
(3,119
|
)
|
(1,841
|
)
|
||||
Net cash used in financing activities
|
(4,530
|
)
|
(6,514
|
)
|
||||
|
||||||||
Effect of exchange rates on cash and equivalents
|
(1,046
|
)
|
(1,004
|
)
|
||||
Net increase (decrease) in cash and equivalents
|
4,386
|
(3,084
|
)
|
|||||
Cash and equivalents at beginning of period
|
65,009
|
76,927
|
||||||
Cash and equivalents at end of period
|
$
|
69,395
|
$
|
73,843
|