-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, E15369PyqSvipPMkrv40ScADg1NTt2ZE8gCTSSbpC+fipIGxa9zAxkIne1w/0S9t ic2ITM2TcDY2SvI2wy8slQ== 0001163842-05-000089.txt : 20051026 0001163842-05-000089.hdr.sgml : 20051026 20051026093328 ACCESSION NUMBER: 0001163842-05-000089 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050930 ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051026 DATE AS OF CHANGE: 20051026 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ANTEON INTERNATIONAL CORP CENTRAL INDEX KEY: 0001163842 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 133880755 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31258 FILM NUMBER: 051155778 BUSINESS ADDRESS: STREET 1: 3211 JERMANTOWNE ROAD STREET 2: SUITE 700 CITY: FAIRFAX STATE: VA ZIP: 22030-2801 BUSINESS PHONE: (703) 246-0200 MAIL ADDRESS: STREET 1: 3211 JERMANTOWN ROAD STREET 2: SUITE 700 CITY: FAIRFAX STATE: VA ZIP: 22030-2801 FORMER COMPANY: FORMER CONFORMED NAME: AZIMUTH TECHNOLOGIES INC DATE OF NAME CHANGE: 20011219 8-K 1 anteonq3earningsrelease.htm ANTEON QUARTER 3 EARNINGS RELEASE

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (date of earliest event reported): October 26, 2005

 

ANTEON INTERNATIONAL CORPORATION

(Exact name of registrant as specified in its charter)

DELAWARE

(State or other jurisdiction

of incorporation)

001-31258
(Commission File Number)

13-3880755
(IRS Employer
Identification No.)

 

3211 Jermantown Road

Fairfax, VA

(Address of principal executive offices)

 

22030-2801

(Zip Code)

 

Registrant’s telephone number, including area code: (703) 246-0200

NOT APPLICABLE

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


 

 

Item 2.02.  

Results of Operations and Financial Condition.

 

On October 26, 2005, Anteon International Corporation, a Delaware corporation (the “Company”), issued a press release announcing the Company’s financial results for the third quarter ended September 30, 2005 and updating its guidance for the fourth quarter of 2005 as well as the full year 2005. The Company also announced the schedule for a conference call and “web cast” on the same date.

 

A copy of the Company’s press release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. Also attached to this Current Report on Form 8-K as Exhibit 99.2 is a reconciliation of certain non-GAAP financial measures to the most directly comparable GAAP financial measures used in the press release and/or expected to be discussed by the Company during its conference call. The reconciliation data is also incorporated by reference herein.

 

The information contained in this Form 8-K, including the attached exhibits, is being furnished under Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01.  

Financial Statements, Pro Forma Financial Information and Exhibits.

 

(c)

 

Exhibits.

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release, dated October 26, 2005, announcing the Company’s financial results for the third quarter ended September 30, 2005.

 

99.2

 

Reconciliation of certain non-GAAP financial measures to the most directly comparable GAAP financial measures used in the press release and/or expected to be discussed by the Company during its October 26, 2005 conference call.

 

 

 


 

SIGNATURES

 

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

 

 

 

ANTEON INTERNATIONAL CORPORATION

 

 

 

Date: October 26, 2005

 

/s/  Curtis L. Schehr

 

 

Curtis L. Schehr

Senior Vice President,

General Counsel and Secretary

 

 

 

 

Exhibit 99.1


NEWS

 

 

FOR IMMEDIATE RELEASE

 

Contacts:

 

Investors

Dennis Kelly

703-246-0318

dkelly@anteon.com

 

Media

Mark Meudt

 

703-246-0525

 

mmeudt@anteon.com

 

 

ANTEON REPORTS RECORD 3rd QUARTER 2005 RESULTS;

INCREASES 2005 FULL YEAR GUIDANCE

 

 

Revenues of $382.1 million, up 17.3%

Operating margin of 9.3%

 

Fully diluted EPS of $0.55, up 22.2%

 

 

FAIRFAX, VA, October 26, 2005 – Anteon International Corporation (NYSE: ANT), a leading information technology, systems integration and engineering services company, announced today its operating results for the third quarter ended September 30, 2005.

 

 

 

 

Financial Results

Anteon's revenues for the third quarter of 2005 increased 17.3% to $382.1 million from $325.6 million for the comparable period in 2004. The organic revenue growth rate for the quarter was 15.8%. Operating income for the third quarter increased 27.8% to $35.4 million from $27.7 million for the comparable period in 2004. Net income for the third quarter increased 24.4% to $21.0 million versus $16.8 million in the comparable period in 2004. Earnings per share on a fully diluted basis was $0.55 versus $0.45 in the comparable quarter in 2004, an increase of 22.2%. Free cash flow for the third quarter was $13.1 million, and days sales outstanding at September 30, 2005 was 75 days.

Anteon's revenues for the nine months ended September 30, 2005 increased 19.9% to $1.1 billion from $917.9 million reported in the comparable period in 2004. The organic revenue growth rate for the nine months ended September 30, 2005 was 16.6%. Operating income for the nine months ended September 30, 2005 increased 32.2% to $100.6 million versus $76.1 million for the comparable period in 2004. Net income for the nine months ended September 30, 2005 increased 31.5% to $59.0 million from $44.8 million for the comparable period in 2004. Earnings per share on a fully diluted basis was $1.56 versus $1.21 in the first nine months of 2004, an increase of 28.9%.

A reconciliation between certain non-GAAP financial measures discussed above and reported financial results is provided as an attachment to this press release.

New Business

New orders during the quarter totaled $451 million, including:

A $29.8 million contract from the Department of Interior Minerals Management Service to provide systems integration and application development support to their offshore operations in Alaska, the Gulf of Mexico, and the Pacific;

 

A $26.5 million contract from the U.S. Navy Space and Naval Warfare Systems Center to provide C4ISR systems development, systems engineering and software development support for their Joint and National Systems Division;

 

A $25.7 million contract from the U.S. Naval Sea Systems Command for ship repair and modernization of Mine Countermeasures Class Ships;

 

An $18.7 million contract from the U.S. Air Force to provide services and software integration for weapon system life cycle management; and

 

A $9.8 million contract from the U.S. Air Force to provide analytical modeling, simulation and training support to Joint Military Planning and Training Events.

 

 

 

 

 

Company Guidance

The Company provides guidance for the fourth quarter 2005 and updates its full year 2005 guidance as summarized in the table below.

2005 FINANCIAL GUIDANCE

Dollars and shares in millions, except per share amounts

Q4 2005

Full Year 2005

 

Revenues

$385-$400

$1,486-$1,501

 

Weighted Avg. Shares Outstanding

37.9

37.8

 

Tax Rate

37.8%

37.9%

 

Fully Diluted Earnings Per Share

Meet or exceed $0.54

Meet or exceed $2.10

 

CEO Comments

Joseph M. Kampf, President and Chief Executive Officer of Anteon, said, “Anteon had a very strong third quarter. In almost every case, our three- and nine-month financial metrics set new record highs. As a result of this strong trend line, and our confidence in Q4 performance, we are again raising our guidance for 2005. Anteon’s full year 2005 revenue guidance is now between $1.486 - $1.501 billion and full year fully diluted earnings per share is now expected to meet or exceed $2.10. I am also pleased with the strength of our qualified pipeline and continued opportunity for new business growth.”

 

Conference Call

Anteon has scheduled a conference call for 10:00 a.m. Eastern Daylight Time TODAY, October 26, 2005, during which senior management will discuss third quarter results and respond to questions. The conference call will be Webcast listen only via Anteon's website at www.anteon.com.

A telephone replay of the call also will be available beginning at 1:00 p.m. Eastern Daylight Time on October 26, 2005, until midnight November 2, 2005. To access the replay, call

 

 

877-519-4471 U.S. or 973-341-3080 international. The confirmation code for access to the replay is 6568554. A replay will also be available on Anteon’s website shortly after the conclusion of the call.

About Anteon

Anteon, headquartered in Fairfax, Virginia, is a leading information technology company serving the U.S. Federal government and international customers. Anteon designs, integrates, maintains, and upgrades state-of-the-art systems for national defense, intelligence, homeland security, and other high priority government missions. Anteon provides numerous government clients with the systems integration, strategy and program management, systems engineering, operations services, and simulation and training skills necessary to manage the development and operations of their mission critical systems. The Company was founded in 1976 and currently employs over 9,500 employees in more than 100 offices worldwide. Anteon consistently ranks among the top information technology integrators based on independent surveys, and has been named to the Forbes List of the 400 Best Big Companies in 2005, earning distinction on the Forbes Platinum List. Anteon is included in the Standard & Poor’s MidCap 400 Index. For more information, visit www.anteon.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied by, forward-looking statements. The Company has tried, whenever possible, to identify these forward-looking statements using words such as “projects,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” and similar expressions. Similarly, statements herein that describe the Company’s business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. The risks and uncertainties involving forward-looking statements include the Company’s dependence on continued funding of U.S. government programs, government contract procurement and termination risks, including risks associated with protests, and other risks described in the Company’s Securities and Exchange Commission filings. These statements reflect the Company’s current beliefs and are based upon information currently available to it. Be advised that developments subsequent to this release are likely to cause these statements to become outdated with the passage of time. The Company does not currently intend, however, to update the guidance provided today prior to its next earnings release.

# # #

 

 

 

 

 

ANTEON INTERNATIONAL CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the three months ended September 30, 2005 and 2004

($ in thousands, except EPS)

 

 

 

Three Months Ended

September 2005

Three Months Ended

September 2004

Percentage Change

 

 

 

 

 

 

 

 

Revenues

$         382,050

$     325,581

17.3%

 

 

 

 

Costs of revenues

327,381

280,898

 

General and administrative expenses

18,615

16,473

 

Amortization of intangible assets

685

542

 

Operating income

35,369

27,668

27.8%

Operating margin

9.3%

8.5%

 

 

 

 

 

Other income

102

939

 

Interest expense

2,214

1,831

 

Minority interest

(5)

9

 

Pretax income

33,252

26,785

24.1%

Income tax

12,290

9,936

 

Net income

$           20,962

$      16,849

24.4%

After tax margin

5.5%

5.2%

 

 

 

 

Cash flow from operations

14,852

17,784

(16.5%)

Tax rate

37.0%

37.1%

 

 

 

 

 

Basic shares

37,107

35,817

 

Diluted shares

37,857

37,253

 

EPS, basic

$              0.56

$          0.47

19.1%

EPS, diluted

$              0.55

$          0.45

22.2%

 

 

 

 

 

ANTEON INTERNATIONAL CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

for the nine months ended September 30, 2005 and 2004

($ in thousands, except EPS)

 

 

 

Nine Months Ended

September 2005

Nine Months Ended

September 2004

Percentage Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

$    1,100,627

$       917,892

19.9%

 

 

 

 

 

 

Costs of revenues

940,588

791,152

 

 

General and administrative expenses

57,355

48,720

 

 

Amortization of intangible assets

2,057

1,901

 

 

Operating Income

100,627

76,119

32.2%

 

Operating margin

9.1%

8.3%

 

 

 

 

 

 

 

Other income

1,009

943

 

 

Interest expense

6,534

5,575

 

 

Minority interest

(58)

(26)

 

 

Pretax income

95,044

71,461

33.0%

 

Income tax

36,084

26,613

 

 

Net income

$         58,960

$         44,848

31.5%

 

After tax margin

5.4%

4.9%

 

 

 

 

 

 

 

Cash flow from operations

86,429

48,246

79.1%

 

Tax rate

38.0%

37.2%

 

 

 

 

 

 

 

Basic shares

36,682

35,630

 

 

Diluted shares

37,884

37,201

 

 

EPS, basic

$             1.61

$             1.26

27.8%

 

EPS, diluted

$             1.56

$             1.21

28.9%

 

 

 

 

 

 

ANTEON INTERNATIONAL CORPORATION

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

($ in thousands)

 

 

 

 

 

 

 

 

As of

September 30, 2005

(unaudited)

 

 

 

As of

December 31, 2004

$ Change

 

 

 

 

 

ASSETS

 

 

 

Cash and cash equivalents

$                32,612

$             4,103

$         28,509

Short term investments

42,525

--

42,525

Accounts receivable, net

317,881

317,296

585

Other current assets

15,462

17,205

(1,743)

 

 

 

 

Property and equipment, net

14,495

12,920

1,575

Goodwill

241,965

242,066

(101)

Intangible and other assets, net

17,631

19,836

(2,205)

Total assets

$              682,571

$        613,426

$           69,145

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Accounts payable/accrued expenses and other current liabilities

$              168,261

$         154,031

$          14,230

Indebtedness

163,350

184,388

(21,038)

Deferred revenue

14,984

13,764

1,220

Other long-term liabilities

14,040

13,685

355

Total liabilities

360,635

365,868

(5,233)

 

 

 

 

Minority interest in subsidiaries

340

282

58

Stockholders’ equity

321,596

247,276

74,320

Total liabilities and stockholders’ equity

$              682,571

$        613,426

$         69,145

 

 

 

 

 

 

 

 

 

ANTEON INTERNATIONAL CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

($ in thousands)

 

 

 

 

For the nine months ended September 30,

 

 

 

 

2005

2004

Operating Activities:

 

 

Net income

$       58,960

$       44,848

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

Gain on settlement of subordinated notes payable

--

(1,327)

Gain on reversal of an acquisition reserve

(900)

--

Depreciation and amortization on property and equipment, intangibles and financing fees

5,662

5,368

Restricted stock compensation

28

--

Deferred income taxes

1,475

343

Minority interest in earnings of subsidiaries

58

26

Changes in assets and liabilities

21,146

(1,012)

Net Cash Provided By Operating Activities

86,429

48,246

 

 

 

Investing Activities:

 

 

Purchases of property, equipment and other assets

(4,674)

(2,846)

Purchases of short term investments

(71,025)

--

Proceeds from short term investments

28,500

--

Costs of acquisitions, net of cash acquired

--

(43,295)

Other

101

--

Net Cash Used For Investing Activities

(47,098)

(46,141)

 

 

 

Financing Activities

 

 

Principal payment on subordinated notes payable

--

(1,350)

Principal payments on Term Loan B

(1,238)

(1,125)

Proceeds from Term Loan B

--

16,125

Deferred financing fees

--

(294)

Net proceeds (payments)on revolving credit facility

(19,800)

(4,400)

Redemption of senior subordinated notes payable

--

(1,876)

Principal payment under capital lease obligations

(166)

(240)

Proceeds from issuance of common stock, net of expense

10,382

3,614

Net Cash Provided/ (Used For) Financing Activities

(10,822)

10,454

 

 

 

Cash And Cash Equivalents:

 

 

Net Increase in cash and cash equivalents

28,509

12,559

Cash and cash equivalents, beginning of period

4,103

2,088

Cash and cash equivalents, end of period

$       32,612

$      14,647

 

 

 

 

 

 

Exhibit 99.2

 

RECONCILIATION BETWEEN TOTAL REVENUE GROWTH AND ORGANIC REVENUE GROWTH

 

($ in thousands)

 

 

 

 

 

 

 

Q1

Q2

Q3

Q3 YTD

 

 

 

 

 

2004Revenue

$        288,150

$         304,161

$          325,581

$          917,892

2005 Revenue

349,982

368,595

382,050

1,100,627

Total Revenue Growth over 2004

21.5%

21.2%

17.3%

19.9%

 

 

 

 

 

Less: 2004 IMSI and STI Revenues

--

--

(7,791)

(7,791)

Adjusted 2004 Revenues (a)

288,150

304,161

317,790

910,101

 

 

 

 

 

2005 Revenue

349,982

368,595

382,050

1,100,627

Less: 2005 IMSI and STI Revenues

(12,430)

(13,273)

(14,135)

(39,838)

Adjusted Total 2004 Revenue (b)

$        337,552

$         355,322

$           367,915

$        1,060,789

Organic Revenue Growth over 2004 (b-a)/a

17.1%

16.8%

15.8%

16.6%

 

 

 

 

 

 

(1)

The Company defines organic growth as the increase in revenues excluding the revenues associated with acquisition, divestitures and closures of businesses in comparable periods. The Company believes that organic growth is a useful supplemental measure to revenue. The Company uses organic growth as part of its evaluation of core operating results and underlying trends.

 

 

 

RECONCILIATION OF CASH FLOW FROM OPERATIONS TO FREE CASH FLOW

(in thousands)

 

 

 

 

 

Free Cash Flow

Q1 2005

Q2 2005

Q3 2005

Q3 YTD

 

 

 

 

 

Cash flow from operations

$       51,713

$       19,864

$;      14,852

$        86,429

Less: capital expenditures

(1,538)

(1,431)

(1,705)

(4,674)

Free cash flow (2)

$        50,175

$        18,433

$        13,147

$        81,755

 

 

 

 

 

 

(2)

The Company believes that free cash flow is a useful supplemental measure of cash available to the Company after the payments for the capital expenditures.

 

 

 

 


NET DEBT RECONCILIATION

($ in thousands)

 

 

 

 

 

 

 

 

Net Debt

Q3 2005

Q2 2005

Q1 2005

 

 

 

 

Revolving credit facility

$                      --

$                     --

$                    --

Term Loan B

163,350

163,763

164,175

Total:

163,350

163,763

164,175

 

 

 

 

Less: cash

(32,612)

(30,125)

(35,145)

Short term investments

(42,525)

(30,000)

--

Net debt

$              88,213

$          103,638

$          129,030

 

(3)

The Company believes that net debt is a useful measure of actual indebtedness of the Company.

 

 

 

 

 

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