Indiana | 47-4850538 | |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | 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 |
Item 5.02. | Departure Of Directors Or Certain Officers; Election Of Directors; Appointment Of Certain Officers; Compensatory Arrangements Of Certain Officers. |
Item 9.01. | Financial Statements and Exhibits |
Exhibit No. | Description | |
99.1 | Press release of hhgregg, Inc. dated May 19, 2016 |
hhgregg, Inc. | ||||
Date: May 19, 2016 | By: | /s/ Robert J. Riesbeck | ||
Robert J. Riesbeck | ||||
Interim President and Chief Executive Officer and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press release of hhgregg, Inc. dated May 19, 2016 |
• | Net sales decreased 9.6% to $439 million year-over-year. |
• | Comparable store sales decreased 9.3% year-over-year, however appliance comp sales for February and March increased 4.9%. |
• | Gross margin increased to 28.7% compared to 28.6% in the prior year fourth quarter |
• | Net loss per diluted share, as adjusted, was $(0.28) compared to $(0.63) in the prior year fourth quarter. |
• | Adjusted EBITDA increased $7.9 million in the current year fiscal quarter from a loss of $7.8 million in the prior year fourth quarter. |
• | Net sales decreased (8.0)% to $2.0 billion year-over-year. |
• | Comparable store sales decreased (7.7)% year-over-year. |
• | The Company realized $66.9 million in cost savings, primarily through better-targeted advertising expenditures, store operations and corporate overhead expense reductions, exceeding its fiscal year goal of $50 million. |
• | Adjusted EBITDA increased $14.8 million to $8.2 million compared to $(6.6) million in fiscal year 2015. |
Three Months Ended | Twelve Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
(unaudited, amounts in thousands, except share and per share data) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | $ | 438,840 | $ | 485,603 | $ | 1,959,998 | $ | 2,129,374 | ||||||||
Net sales % decrease | (9.6 | )% | (9.8 | )% | (8.0 | )% | (8.9 | )% | ||||||||
Comparable store sales % decrease (1) | (9.3 | )% | (10.0 | )% | (7.7 | )% | (9.2 | )% | ||||||||
Gross profit as a % of net sales | 28.7 | % | 28.6 | % | 28.3 | % | 28.5 | % | ||||||||
SG&A as a % of net sales | 24.2 | % | 24.7 | % | 22.8 | % | 22.9 | % | ||||||||
Net advertising expense as a % of net sales | 4.9 | % | 6.1 | % | 5.4 | % | 6.0 | % | ||||||||
Depreciation and amortization expense as a % of net sales | 1.6 | % | 1.8 | % | 1.6 | % | 1.9 | % | ||||||||
Asset impairment charges as a % of net sales | — | % | 1.0 | % | 1.1 | % | 2.2 | % | ||||||||
Loss from operations as a % of net sales | (2.1 | )% | (5.1 | )% | (2.6 | )% | (4.7 | )% | ||||||||
Net interest expense as a % of net sales | 0.2 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||
Income tax benefit (expense) as a % of net sales | 0.2 | % | n/m | n/m | (1.4 | )% | ||||||||||
Net loss | $ | (9,085 | ) | $ | (25,228 | ) | $ | (54,879 | ) | $ | (132,746 | ) | ||||
Net loss, as adjusted (2) | $ | (7,675 | ) | $ | (17,371 | ) | $ | (26,522 | ) | $ | (38,685 | ) | ||||
Net loss per diluted share | $ | (0.33 | ) | $ | (0.91 | ) | $ | (1.98 | ) | $ | (4.72 | ) | ||||
Net loss per diluted share, as adjusted (2) | $ | (0.28 | ) | $ | (0.63 | ) | $ | (0.96 | ) | $ | (1.38 | ) | ||||
Adjusted EBITDA (3) | $ | 16 | $ | (7,838 | ) | 8,241 | (6,589 | ) | ||||||||
Weighted average shares outstanding—diluted | 27,707,978 | 27,663,764 | 27,701,055 | 28,129,596 | ||||||||||||
Number of stores open at the end of period | 226 | 228 |
(1) | Comprised of net sales at stores in operation for at least 14 full months, including remodeled and relocated stores, as well as net sales for the Company’s e-commerce site. |
(2) | Amounts are adjusted in both the three and twelve months ended March 31, 2016 and 2015 to exclude the impact of severance due to our transformation efforts, consulting expenses paid to outside parties to assist with our transformation efforts and fixed asset impairment charges. Amounts are adjusted in the three months ended March 31, 2016 for monetizing a federal tax credit that was previously reserved. Amounts are adjusted in the twelve months ended March 31, 2016 for the federal tax credit previously discussed, as well as expenses associated with the Internal Revenue Service's settlement of a prior year tax matter. Amounts are adjusted in the twelve months ended March 31, 2015 for establishing a valuation allowance for deferred tax asset. See the attached reconciliation of non-GAAP measures to GAAP measures. |
(3) | Amounts are adjusted in both the current and prior year to exclude the impact of severance due to our transformation efforts, consulting expenses paid to outside parties to assist with our transformation efforts and fixed asset impairment charges See the attached reconciliation of non-GAAP measures to GAAP measures. |
Net Sales Mix Summary | Comparable Store Sales Summary | |||||||||||||||||||||||
Three Months Ended March 31, | Twelve Months Ended March 31, | Three Months Ended March 31, | Twelve Months Ended March 31, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Appliances | 56 | % | 51 | % | 53 | % | 51 | % | (0.4 | )% | (5.0 | )% | (3.2 | )% | (3.1 | )% | ||||||||
Consumer electronics (1) | 34 | % | 38 | % | 36 | % | 37 | % | (19.6 | )% | (9.8 | )% | (10.3 | )% | (10.9 | )% | ||||||||
Home products (2) | 6 | % | 5 | % | 6 | % | 5 | % | 2.8 | % | (12.5 | )% | 5.4 | % | (4.7 | )% | ||||||||
Computers and tablets | 4 | % | 6 | % | 5 | % | 7 | % | (32.2 | )% | (37.6 | )% | (35.0 | )% | (34.0 | )% | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | (9.3 | )% | (10.0 | )% | (7.7 | )% | (9.2 | )% |
(1) | Primarily consists of televisions, audio, personal electronics and accessories. |
(2) | Primarily consists of furniture and mattresses. |
Comparable Store Sales | Average Selling Price | Sales Unit Volume | |||||
Appliances | (0.4 | )% | Increase | Decrease | |||
Consumer electronics (1) | (19.6 | )% | Decrease | Decrease | |||
Home products (2) | 2.8 | % | Increase | Decrease | |||
Computers and tablets | (32.2 | )% | Decrease | Decrease | |||
Total | (9.3 | )% |
(1) | Primarily consists of televisions, audio, personal electronics and accessories. |
(2) | Primarily consists of furniture and mattresses. |
• | The Company's increase in gross profit margin for the period was primarily a result of favorable product sales mix to categories with higher gross margin rates offsetting the decrease in gross profit margin rates in all categories except home products. The decrease in gross margin rates was primarily driven by free delivery in appliances and a continued promotional environment. |
• | During the fourth quarter, hhgregg realized $21.1 million of its expected $50 million of annual cost savings for fiscal 2016. |
• | The decrease in advertising expense of $8.1 million for the fourth quarter was due to a reduction of gross advertising spend primarily driven by reductions in print media along with rebalancing of spending among more efficient advertising mediums. |
• | The decrease in SG&A as a percentage of net sales to 24.2% from 24.7% for the three month comparable prior year period was a result of: |
▪ | 43 basis points decrease, or $6.1 million, in wages due to the Company's continuing effort to drive efficiencies in its labor structure; |
▪ | 38 basis points decrease, or $1.9 million, primarily due to the lapping of consulting expenses to assist with our transformation efforts in the prior year period; |
▪ | 27 basis points decrease, or $1.8 million, in bank transaction fees due to less enhanced financing options than prior year; and |
▪ | 24 basis points decrease, or $1.8 million, in employee benefits due to a reduction of medical expenses and payroll taxes driven by the efficiencies in the Company's labor structure. |
▪ | a 28 basis points increase, or $0.3 million, in delivery services due to free delivery for appliances and a shift in sales mix to more products which require delivery; and |
▪ | a 71 basis point increase,or $0.1 million, in occupancy costs primarily due to increased property tax rates and the deleveraging effect of lower net sales in the current quarter. |
Comparable Store Sales | Average Selling Price | Sales Unit Volume | |||||
Appliances | (3.2 | )% | Increase | Decrease | |||
Consumer electronics (1) | (10.3 | )% | Increase | Decrease | |||
Home products (2) | 5.4 | % | Increase | Increase | |||
Computers and tablets | (35.0 | )% | Decrease | Decrease | |||
Total | (7.7 | )% |
(1) | Primarily consists of televisions, audio, personal electronics and accessories. |
(2) | Primarily consists of furniture and mattresses. |
• | The Company's decrease in gross profit margin was due to lower gross profit margin rates in all categories, except home products, partially offset by a favorable sales mix shift to product categories with higher gross profit rates, such as appliances and furniture. |
• | During fiscal 2016, hhgregg realized $66.9 million of its expected $50 million of annual cost savings. This was inclusive of $4.2 million of additional fees associated with customer financing described below. |
• | The decrease in advertising expense of $23.8 million for fiscal 2016 was due to a reduction of gross advertising spend primarily driven by reductions in print media along with rebalancing of spending among more efficient advertising mediums. |
• | The decrease in SG&A as a percentage of net sales to 22.8% from 22.9% for fiscal 2016 compared to fiscal 2015 was a result of: |
▪ | 59 basis points decrease, or $26.7 million, in wages due to the Company's continuing effort to drive efficiencies in its labor structure; |
▪ | 17 basis points decrease, or $5.8 million, in employee benefits due to a reduction of medical expenses and payroll taxes driven by the efficiencies in the Company's labor structure; and |
▪ | 12 basis points decrease, or $8.1 million, in delivery services due to efficiencies in routing and lower fuel prices, slightly offset by free delivery for appliances and a shift in sales mix to more products which require delivery in the fourth quarter. |
▪ | a 30 basis points increase, or $4.2 million, in fees associated with the higher cost of offering customers extended months special financing options and the increased use of the private label credit card; and |
▪ | a 57 basis point increase, or $1.3 million, in occupancy costs primarily due to increased property tax rates. |
Contact: | Lance Peterson, Director, Finance & Investor Relations |
investorrelations@hhgregg.com | |
(317) 848-8710 |
Three Months Ended | Twelve Months Ended | ||||||||||||||
March 31, 2016 | March 31, 2015 | March 31, 2016 | March 31, 2015 | ||||||||||||
(In thousands, except share and per share data) | |||||||||||||||
Net sales | $ | 438,840 | $ | 485,603 | $ | 1,959,998 | $ | 2,129,374 | |||||||
Cost of goods sold | 313,090 | 346,651 | 1,406,216 | 1,523,536 | |||||||||||
Gross profit | 125,750 | 138,952 | 553,782 | 605,838 | |||||||||||
Selling, general and administrative expenses | 106,392 | 120,127 | 447,508 | 488,391 | |||||||||||
Net advertising expense | 21,570 | 29,638 | 105,046 | 128,826 | |||||||||||
Depreciation and amortization expense | 6,928 | 8,840 | 32,043 | 40,200 | |||||||||||
Asset impairment charges | — | 4,882 | 20,910 | 47,869 | |||||||||||
Loss from operations | (9,140 | ) | (24,535 | ) | (51,725 | ) | (99,448 | ) | |||||||
Other expense (income): | |||||||||||||||
Interest expense | 776 | 678 | 2,742 | 2,600 | |||||||||||
Interest income | (13 | ) | (9 | ) | (22 | ) | (63 | ) | |||||||
Total other expense | 763 | 669 | 2,720 | 2,537 | |||||||||||
Loss before income taxes | (9,903 | ) | (25,204 | ) | (54,445 | ) | (101,985 | ) | |||||||
Income tax (benefit) expense | (818 | ) | 24 | 434 | 30,761 | ||||||||||
Net loss | $ | (9,085 | ) | $ | (25,228 | ) | $ | (54,879 | ) | $ | (132,746 | ) | |||
Net loss per share | |||||||||||||||
Basic and diluted | $ | (0.33 | ) | $ | (0.91 | ) | $ | (1.98 | ) | $ | (4.72 | ) | |||
Weighted average shares outstanding-basic and diluted | 27,707,978 | 27,663,764 | 27,701,055 | 28,129,596 |
Three Months Ended | Twelve Months Ended | |||||||||||
March 31, 2016 | March 31, 2015 | March 31, 2016 | March 31, 2015 | |||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||
Cost of goods sold | 71.3 | 71.4 | 71.7 | 71.5 | ||||||||
Gross profit | 28.7 | 28.6 | 28.3 | 28.5 | ||||||||
Selling, general and administrative expenses | 24.2 | 24.7 | 22.8 | 22.9 | ||||||||
Net advertising expense | 4.9 | 6.1 | 5.4 | 6.0 | ||||||||
Depreciation and amortization expense | 1.6 | 1.8 | 1.6 | 1.9 | ||||||||
Asset impairment charges | — | 1.0 | 1.1 | 2.2 | ||||||||
Loss from operations | (2.1 | ) | (5.1 | ) | (2.6 | ) | (4.7 | ) | ||||
Other expense (income): | ||||||||||||
Interest expense | 0.2 | 0.1 | 0.1 | 0.1 | ||||||||
Interest income | — | — | — | — | ||||||||
Total other expense | 0.2 | 0.1 | 0.1 | 0.1 | ||||||||
Loss before income taxes | (2.3 | ) | (5.2 | ) | (2.8 | ) | (4.8 | ) | ||||
Income tax (benefit) expense | (0.2 | ) | — | — | 1.4 | |||||||
Net loss | (2.1 | )% | (5.2 | )% | (2.8 | ) | (6.2 | )% |
March 31, 2016 | March 31, 2015 | |||||||
(In thousands, except share data) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,703 | $ | 30,401 | ||||
Accounts receivable—trade, less allowances of $5 and $19, respectively | 11,106 | 11,901 | ||||||
Accounts receivable—other | 14,937 | 16,715 | ||||||
Merchandise inventories, net | 256,559 | 257,469 | ||||||
Prepaid expenses and other current assets | 6,333 | 6,581 | ||||||
Income tax receivable | 1,130 | 5,326 | ||||||
Total current assets | 293,768 | 328,393 | ||||||
Net property and equipment | 87,472 | 128,107 | ||||||
Deferred financing costs, net | 1,257 | 1,796 | ||||||
Deferred income taxes | — | 6,489 | ||||||
Other assets | 2,855 | 2,844 | ||||||
Total long-term assets | 91,584 | 139,236 | ||||||
Total assets | $ | 385,352 | $ | 467,629 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 107,474 | $ | 112,143 | ||||
Line of credit | — | — | ||||||
Customer deposits | 43,235 | 48,742 | ||||||
Accrued liabilities | 43,370 | 46,723 | ||||||
Deferred income taxes | — | 6,489 | ||||||
Total current liabilities | 194,079 | 214,097 | ||||||
Long-term liabilities: | ||||||||
Deferred rent | 59,101 | 67,935 | ||||||
Other long-term liabilities | 10,818 | 12,009 | ||||||
Total long-term liabilities | 69,919 | 79,944 | ||||||
Total liabilities | 263,998 | 294,041 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $.0001; 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2016 and March 31, 2015, respectively | — | — | ||||||
Common stock, par value $.0001; 150,000,000 shares authorized; 41,204,660 and 41,161,753 shares issued; and 27,707,978 and 27,665,071 outstanding as of March 31, 2016 and March 31, 2015, respectively | 4 | 4 | ||||||
Additional paid-in capital | 304,325 | 301,680 | ||||||
Retained earnings (accumulated deficit) | (32,747 | ) | 22,132 | |||||
Common stock held in treasury at cost, 13,496,682 shares as of March 31, 2016 and March 31, 2015, respectively | (150,228 | ) | (150,228 | ) | ||||
Total stockholders’ equity | 121,354 | 173,588 | ||||||
Total liabilities and stockholders’ equity | $ | 385,352 | $ | 467,629 |
2016 | 2015 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (54,879 | ) | $ | (132,746 | ) | |
Adjustments to reconcile net loss to net cash provided by (used by) operating activities: | |||||||
Depreciation and amortization | 32,043 | 40,200 | |||||
Amortization of deferred financing costs | 539 | 538 | |||||
Stock-based compensation | 2,709 | 4,623 | |||||
Loss (gain) on sales of property and equipment | (19 | ) | 252 | ||||
Deferred income taxes | — | 41,402 | |||||
Asset impairment charges | 20,910 | 47,869 | |||||
Tenant allowances received from landlords | 812 | 986 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable—trade | 795 | 3,220 | |||||
Accounts receivable—other | 986 | 384 | |||||
Merchandise inventories | 910 | 41,073 | |||||
Income tax receivable | 4,196 | (3,946 | ) | ||||
Prepaid expenses and other assets | 454 | (108 | ) | ||||
Accounts payable | (12,537 | ) | (26,882 | ) | |||
Customer deposits | (5,507 | ) | 7,224 | ||||
Income tax payable | — | (122 | ) | ||||
Accrued liabilities | (3,417 | ) | (4,317 | ) | |||
Deferred rent | (8,854 | ) | (7,176 | ) | |||
Other long-term liabilities | (923 | ) | 289 | ||||
Net cash provided by (used in) operating activities | (21,782 | ) | 12,763 | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (12,828 | ) | (22,522 | ) | |||
Proceeds from sales of property and equipment | 117 | 45 | |||||
Purchases of corporate-owned life insurance | (217 | ) | (646 | ) | |||
Net cash used in investing activities | (12,928 | ) | (23,123 | ) | |||
Cash flows from financing activities: | |||||||
Purchases of treasury stock | — | (5,281 | ) | ||||
Net borrowings (repayments) on inventory financing facility | 8,012 | (2,122 | ) | ||||
Net cash provided by (used in) financing activities | 8,012 | (7,403 | ) | ||||
Net decrease in cash and cash equivalents | (26,698 | ) | (17,763 | ) | |||
Cash and cash equivalents | |||||||
Beginning of period | 30,401 | 48,164 | |||||
End of period | $ | 3,703 | $ | 30,401 | |||
Supplemental disclosure of cash flow information: | |||||||
Interest paid | $ | 2,205 | $ | 2,085 | |||
Income taxes received | $ | (3,523 | ) | $ | (6,411 | ) | |
Capital expenditures included in accounts payable | $ | 1,265 | $ | 1,409 |
Three Months Ended March 31, 2016 | Twelve Months Ended March 31, 2016 | ||||||||||||||
(Amounts in thousands, except share data) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net loss as reported | $ | (9,085 | ) | $ | (25,228 | ) | $ | (54,879 | ) | $ | (132,746 | ) | |||
Non-cash adjustments to net loss: | |||||||||||||||
Asset impairment charges | — | 4,882 | 20,910 | 47,869 | |||||||||||
Valuation allowance for deferred tax assets | — | — | — | 41,402 | |||||||||||
Cash adjustments to net loss: | |||||||||||||||
Severance (1) | 2,215 | 1,323 | 2,526 | 1,515 | |||||||||||
Consulting fees (2) | 13 | 1,652 | 4,487 | 3,275 | |||||||||||
Income tax (benefit) expense (3) | (818 | ) | — | 434 | — | ||||||||||
Net loss, as adjusted | $ | (7,675 | ) | $ | (17,371 | ) | $ | (26,522 | ) | $ | (38,685 | ) | |||
Weighted average shares outstanding – Diluted | 27,707,978 | 27,663,764 | 27,701,055 | 28,129,596 | |||||||||||
Net loss per diluted share as reported | $ | (0.33 | ) | $ | (0.91 | ) | $ | (1.98 | ) | $ | (4.72 | ) | |||
Net loss per diluted share, as adjusted | $ | (0.28 | ) | $ | (0.63 | ) | $ | (0.96 | ) | $ | (1.38 | ) |
(1) | Expense for severance due to the transformation efforts. |
(2) | Costs paid to outside consultants to assist with the Company's transformation efforts. |
(3) | Included in the amount for three months ended March 31, 2016 is $0.8 million for monetizing a federal tax credit that was previously reserved. Included in the twelve months ended March 31, 2016 amount is the $0.8 million income tax benefit previously discussed, as well as expenses of $1.2 million charged in the current period associated with the Internal Revenue Service's settlement of a prior year tax matter. |
Three Months Ended March 31, 2016 | Twelve Months Ended March 31, 2016 | ||||||||||||||
(Amounts in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net loss as reported | $ | (9,085 | ) | $ | (25,228 | ) | $ | (54,879 | ) | $ | (132,746 | ) | |||
Adjustments: | |||||||||||||||
Depreciation and amortization | 6,928 | 8,840 | 32,043 | 40,200 | |||||||||||
Interest expense, net | 763 | 669 | 2,720 | 2,537 | |||||||||||
Income tax (benefit) expense | (818 | ) | 24 | 434 | 30,761 | ||||||||||
EBITDA | $ | (2,212 | ) | $ | (15,695 | ) | $ | (19,682 | ) | $ | (59,248 | ) | |||
Non-cash asset impairment charges | — | 4,882 | 20,910 | 47,869 | |||||||||||
Severance | 2,215 | 1,323 | 2,526 | 1,515 | |||||||||||
Consulting Fees | 13 | 1,652 | 4,487 | 3,275 | |||||||||||
Adjusted EBITDA | $ | 16 | $ | (7,838 | ) | $ | 8,241 | $ | (6,589 | ) |
• | EBITDA and Adjusted EBITDA do not reflect the Company's cash expenditures, or future requirements, for capital expenditures or contractual commitments; |
• | EBITDA and Adjusted EBITDA do not reflect interest expense or the cash requirements necessary to service interest payments on the Company's debt; |
• | EBITDA and Adjusted EBITDA do not reflect tax expense or the cash requirements necessary to pay for tax obligations; and |
• | Although depreciation and amortization are non-cash charges, the asset being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements. |
FY2014 | FY2015 | FY2016 | |||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
Beginning Store Count | 228 | 228 | 228 | 228 | 228 | 229 | 228 | 228 | 228 | 227 | 227 | 227 | |||||||||||||||||||||||
Store Openings | — | — | — | — | 1 | — | — | — | 1 | — | — | — | |||||||||||||||||||||||
Store Closings | — | — | — | — | — | (1 | ) | — | — | (2 | ) | — | — | (1 | ) | ||||||||||||||||||||
Ending Store Count | 228 | 228 | 228 | 228 | 229 | 228 | 228 | 228 | 227 | 227 | 227 | 226 |