REXNORD CORPORATION |
(Exact name of registrant as specified in its charter) |
Delaware | 20-5197013 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
4701 West Greenfield Avenue, Milwaukee, Wisconsin | 53214 | |
(Address of Principal Executive Offices) | (Zip Code) |
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. |
Item 9.01. | Exhibits. |
Exhibit No. | Description |
99.1 | Earnings Release dated January 28, 2014 |
REXNORD CORPORATION | ||
BY: | /S/ Mark W. Peterson | |
Mark W. Peterson | ||
Senior Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Earnings Release dated January 28, 2014 |
Press Release | |
January 28, 2014 | Contact Information: |
For Immediate Release | Mark Peterson |
Senior Vice President and Chief Financial Officer | |
414.643.3739 |
• | Net sales increased 4% (+4% core sales) to $489 million |
• | Income from operations increased 13% to $68 million year-over-year resulting in a 120 basis point increase in operating margin to 14% |
• | Adjusted earnings per share increased 79% from the prior year to $0.34 |
• | Adjusted EBITDA of $98 million resulting in an adjusted EBITDA margin of 20% |
• | Completed acquisition of Precision Gear Holdings, LLC |
Third Quarter Ended | Nine Months Ended | |||||||||||||||
December 28, 2013 | December 29, 2012 | December 28, 2013 | December 29, 2012 | |||||||||||||
Net sales | $ | 489.1 | $ | 471.7 | $ | 1,512.3 | $ | 1,464.8 | ||||||||
Cost of sales | 307.9 | 303.8 | 957.4 | 931.6 | ||||||||||||
Gross profit | 181.2 | 167.9 | 554.9 | 533.2 | ||||||||||||
Selling, general and administrative expenses | 99.2 | 93.7 | 311.2 | 297.5 | ||||||||||||
Zurn PEX loss contingency | — | — | — | 10.1 | ||||||||||||
Restructuring and other similar charges | 1.8 | 2.3 | 4.8 | 6.3 | ||||||||||||
Amortization of intangible assets | 12.7 | 12.4 | 37.8 | 38.7 | ||||||||||||
Income from operations | 67.5 | 59.5 | 201.1 | 180.6 | ||||||||||||
Non-operating expense: | ||||||||||||||||
Interest expense, net | (22.2 | ) | (39.1 | ) | (86.4 | ) | (114.6 | ) | ||||||||
Loss on the extinguishment of debt | — | (2.9 | ) | (133.2 | ) | (24.0 | ) | |||||||||
Other expense, net | (4.2 | ) | (2.2 | ) | (10.3 | ) | (1.5 | ) | ||||||||
Income (loss) from continuing operations before income taxes | 41.1 | 15.3 | (28.8 | ) | 40.5 | |||||||||||
Provision (benefit) for income taxes | 12.5 | 3.9 | (18.5 | ) | 9.5 | |||||||||||
Net income (loss) from continuing operations | 28.6 | 11.4 | (10.3 | ) | 31.0 | |||||||||||
Loss from discontinued operations, net of tax | — | (2.2 | ) | — | (4.8 | ) | ||||||||||
Net income (loss) | $ | 28.6 | $ | 9.2 | $ | (10.3 | ) | $ | 26.2 | |||||||
Non-controlling interest loss | (0.1 | ) | — | (0.5 | ) | — | ||||||||||
Net income (loss) attributable to Rexnord | $ | 28.7 | $ | 9.2 | $ | (9.8 | ) | $ | 26.2 | |||||||
Net income (loss) per share from continuing operations: | ||||||||||||||||
Basic | $ | 0.29 | $ | 0.12 | $ | (0.11 | ) | $ | 0.32 | |||||||
Diluted | $ | 0.28 | $ | 0.11 | $ | (0.11 | ) | $ | 0.31 | |||||||
Net loss per share from discontinued operations: | ||||||||||||||||
Basic | $ | — | $ | (0.02 | ) | $ | — | $ | (0.05 | ) | ||||||
Diluted | $ | — | $ | (0.02 | ) | $ | — | $ | (0.05 | ) | ||||||
Net income (loss) per share attributable to Rexnord: | ||||||||||||||||
Basic | $ | 0.29 | $ | 0.10 | $ | (0.10 | ) | $ | 0.27 | |||||||
Diluted | $ | 0.28 | $ | 0.09 | $ | (0.10 | ) | $ | 0.26 | |||||||
Weighted-average number of shares outstanding (in thousands): | ||||||||||||||||
Basic | 97,843 | 96,789 | 97,513 | 95,591 | ||||||||||||
Effect of dilutive stock options | 3,317 | 3,489 | — | 4,077 | ||||||||||||
Diluted | 101,160 | 100,278 | 97,513 | 99,668 |
Third Quarter Ended | Nine Months Ended | ||||||||||||||
December 28, 2013 | December 29, 2012 | December 28, 2013 | December 29, 2012 | ||||||||||||
Net income (loss) | $ | 28.6 | $ | 9.2 | $ | (10.3 | ) | $ | 26.2 | ||||||
Interest expense, net | 22.2 | 39.1 | 86.4 | 114.6 | |||||||||||
Income tax provision (benefit) | 12.5 | 3.9 | (18.5 | ) | 9.5 | ||||||||||
Depreciation and amortization | 26.7 | 26.9 | 80.6 | 83.9 | |||||||||||
EBITDA | 90.0 | 79.1 | 138.2 | 234.2 | |||||||||||
Adjustments to EBITDA | |||||||||||||||
Actuarial loss on pension and postretirement benefit obligation | — | — | — | 0.2 | |||||||||||
Loss from discontinued operations, net of tax | — | 2.2 | — | 4.8 | |||||||||||
Restructuring and other similar charges | 1.8 | 2.3 | 4.8 | 6.3 | |||||||||||
Loss on the extinguishment of debt | — | 2.9 | 133.2 | 24.0 | |||||||||||
Stock-based compensation expense | 1.8 | 1.9 | 5.3 | 5.4 | |||||||||||
LIFO (income) expense | (0.2 | ) | 1.4 | 1.3 | 3.5 | ||||||||||
Impact of inventory fair value adjustment | 0.4 | — | 0.4 | — | |||||||||||
Zurn PEX loss contingency | — | — | — | 10.1 | |||||||||||
Other expense, net (1) | 4.2 | 2.2 | 10.3 | 1.5 | |||||||||||
Subtotal of adjustments to EBITDA | 8.0 | 12.9 | 155.3 | 55.8 | |||||||||||
Adjusted EBITDA | $ | 98.0 | $ | 92.0 | $ | 293.5 | $ | 290.0 |
Third Quarter Ended | Nine Months Ended | ||||||||||||||
Adjusted Net Income and Earnings Per Share | December 28, 2013 | December 29, 2012 | December 28, 2013 | December 29, 2012 | |||||||||||
Net income (loss) | $ | 28.6 | $ | 9.2 | $ | (10.3 | ) | $ | 26.2 | ||||||
Actuarial loss on pension and postretirement benefit obligation | — | — | — | 0.2 | |||||||||||
Loss from discontinued operations, net of tax | — | 2.2 | — | 4.8 | |||||||||||
Restructuring and other similar charges | 1.8 | 2.3 | 4.8 | 6.3 | |||||||||||
Loss on the extinguishment of debt | — | 2.9 | 133.2 | 24.0 | |||||||||||
Stock-based compensation expense | 1.8 | 1.9 | 5.3 | 5.4 | |||||||||||
LIFO (income) expense | (0.2 | ) | 1.4 | 1.3 | 3.5 | ||||||||||
Impact of inventory fair value adjustment | 0.4 | — | 0.4 | — | |||||||||||
Zurn PEX loss contingency | — | — | — | 10.1 | |||||||||||
Other expense, net (1) | 4.2 | 2.2 | 10.3 | 1.5 | |||||||||||
Tax effect on above items | (2.7 | ) | (3.4 | ) | (56.3 | ) | (16.5 | ) | |||||||
Adjusted net income | $ | 33.9 | $ | 18.7 | $ | 88.7 | $ | 65.5 | |||||||
Weighted-average number of shares outstanding (in thousands) | |||||||||||||||
Basic | 97,843 | 96,789 | 97,513 | 95,591 | |||||||||||
Effect of dilutive stock options | 3,317 | 3,489 | 3,109 | 4,077 | |||||||||||
Diluted | 101,160 | 100,278 | 100,622 | 99,668 | |||||||||||
Adjusted earnings per share - diluted | $ | 0.34 | $ | 0.19 | $ | 0.89 | $ | 0.66 | |||||||
Net income (loss) per share - diluted (in accordance with GAAP) | $ | 0.28 | $ | 0.09 | $ | (0.11 | ) | $ | 0.26 |
(1) | Other expense, net for the quarter ended December 28, 2013, consists of foreign currency transaction losses of $1.7 million, $0.2 million loss on sale of property, plant and equipment and other miscellaneous expenses of $2.3 million. Other expense, net for the quarter ended December 29, 2012, consists of foreign currency transaction losses of $1.7 million, loss on sale of assets of $0.1 million and other miscellaneous expenses of $0.4 million. Other expense, net for the first nine months of fiscal 2014, consists of $3.0 million of costs attributable to our now concluded review of strategic alternatives by our Board of Directors, foreign currency transaction losses of $3.0 million, $1.3 million loss on sale of property, plant and equipment and other miscellaneous expenses of $3.0 million. Other expense, net for the first nine months of fiscal 2013, consists of management fee expense of $15.0 million to terminate our management agreement with Apollo, foreign currency transaction losses of $6.6 million, a recovery under the Continued Dumping and Subsidy Offset Act of $16.6 million, a $4.0 million gain on the sale of property, plant and equipment and other miscellaneous expenses of $0.5 million. |
Third Quarter Ended | Nine Months Ended | ||||||||||||||
December 28, 2013 | December 29, 2012 | December 28, 2013 | December 29, 2012 | ||||||||||||
Net income (loss) attributable to Rexnord | $ | 28.7 | $ | 9.2 | $ | (9.8 | ) | $ | 26.2 | ||||||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustments | (2.7 | ) | 0.7 | 5.2 | (5.7 | ) | |||||||||
Unrealized gain on interest rate derivatives, net of tax | 0.1 | — | 0.1 | — | |||||||||||
Change in pension and other postretirement defined benefit plans, net of tax | (0.3 | ) | 0.3 | (0.8 | ) | 0.9 | |||||||||
Other comprehensive (loss) income, net of tax | (2.9 | ) | 1.0 | 4.5 | (4.8 | ) | |||||||||
Non-controlling interest loss | (0.1 | ) | — | (0.5 | ) | — | |||||||||
Total comprehensive income (loss) | $ | 25.7 | $ | 10.2 | $ | (5.8 | ) | $ | 21.4 |
December 28, 2013 | March 31, 2013 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 192.7 | $ | 524.1 | ||||
Receivables, net | 320.0 | 350.4 | ||||||
Inventories, net | 379.3 | 326.2 | ||||||
Other current assets | 51.6 | 46.4 | ||||||
Total current assets | 943.6 | 1,247.1 | ||||||
Property, plant and equipment, net | 435.8 | 410.7 | ||||||
Intangible assets, net | 607.0 | 613.5 | ||||||
Goodwill | 1,151.9 | 1,118.4 | ||||||
Insurance for asbestos claims | 35.0 | 35.0 | ||||||
Other assets | 42.8 | 49.1 | ||||||
Total assets | $ | 3,216.1 | $ | 3,473.8 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Current maturities of debt | $ | 26.1 | $ | 169.3 | ||||
Trade payables | 195.7 | 208.3 | ||||||
Compensation and benefits | 59.0 | 55.6 | ||||||
Current portion of pension and postretirement benefit obligations | 5.7 | 5.7 | ||||||
Interest payable | 0.8 | 48.1 | ||||||
Other current liabilities | 114.8 | 121.2 | ||||||
Total current liabilities | 402.1 | 608.2 | ||||||
Long-term debt | 1,952.1 | 1,962.3 | ||||||
Pension and postretirement benefit obligations | 163.4 | 170.8 | ||||||
Deferred income taxes | 197.6 | 231.6 | ||||||
Reserve for asbestos claims | 35.0 | 35.0 | ||||||
Other liabilities | 31.8 | 37.4 | ||||||
Total liabilities | 2,782.0 | 3,045.3 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, $0.01 par value; 10,000,000 shares authorized; none issued | — | — | ||||||
Common stock, $0.01 par value; 200,000,000 shares authorized; shares issued: 98,846,185 at December 28, 2013 and 98,108,438 at March 31, 2013 | 1.0 | 1.0 | ||||||
Additional paid-in capital | 795.0 | 784.0 | ||||||
Retained deficit | (321.3 | ) | (311.5 | ) | ||||
Accumulated other comprehensive loss | (34.2 | ) | (38.7 | ) | ||||
Treasury stock at cost; 900,904 shares at December 28, 2013 and March 31, 2013 | (6.3 | ) | (6.3 | ) | ||||
Total Rexnord stockholders' equity | 434.2 | 428.5 | ||||||
Non-controlling interest | (0.1 | ) | — | |||||
Total stockholders' equity | 434.1 | 428.5 | ||||||
Total liabilities and stockholders' equity | $ | 3,216.1 | $ | 3,473.8 |
Nine Months Ended | ||||||||
December 28, 2013 | December 29, 2012 | |||||||
Operating activities | ||||||||
Net (loss) income | $ | (10.3 | ) | $ | 26.2 | |||
Adjustments to reconcile net (loss) income to cash provided by operating activities: | ||||||||
Depreciation | 42.8 | 45.2 | ||||||
Amortization of intangible assets | 37.8 | 38.7 | ||||||
Amortization of deferred financing costs | 2.1 | 3.0 | ||||||
Loss (gain) on dispositions of property, plant and equipment | 1.3 | (4.0 | ) | |||||
Deferred income taxes | (30.2 | ) | (12.9 | ) | ||||
Other non-cash charges | 0.8 | 8.0 | ||||||
Loss on debt extinguishment | 133.2 | 24.0 | ||||||
Stock-based compensation expense | 5.3 | 5.4 | ||||||
Changes in operating assets and liabilities: | ||||||||
Receivables | 36.4 | 36.2 | ||||||
Inventories | (33.9 | ) | (41.6 | ) | ||||
Other assets | (5.2 | ) | (0.9 | ) | ||||
Accounts payable | (18.0 | ) | (33.5 | ) | ||||
Accruals and other | (68.7 | ) | (44.7 | ) | ||||
Cash provided by operating activities | 93.4 | 49.1 | ||||||
Investing activities | ||||||||
Expenditures for property, plant and equipment | (31.6 | ) | (41.5 | ) | ||||
Acquisitions, net of cash | (112.0 | ) | (21.1 | ) | ||||
Loan receivable for financing under New Market Tax Credit incentive program | — | (9.7 | ) | |||||
Proceeds from dispositions of property, plant and equipment | — | 6.1 | ||||||
Proceeds from dispositions of discontinued operations, net of cash | — | 2.3 | ||||||
Cash used for investing activities | (143.6 | ) | (63.9 | ) | ||||
Financing activities | ||||||||
Proceeds from borrowings of long-term debt | 1,934.8 | 15.4 | ||||||
Repayments of long-term debt | (1,938.2 | ) | (308.1 | ) | ||||
Proceeds from borrowings of short-term debt | 6.9 | 10.2 | ||||||
Repayments of short-term debt | (162.1 | ) | (5.1 | ) | ||||
Payment of deferred financing fees | (17.1 | ) | (2.0 | ) | ||||
Payment of early redemption premium on long-term debt | (109.9 | ) | (17.6 | ) | ||||
Net proceeds from issuance of common stock | — | 458.3 | ||||||
Proceeds from exercise of stock options | 1.8 | 2.3 | ||||||
Third party investment in non-controlling interest | 0.4 | — | ||||||
Excess tax benefit on exercise of stock options | 3.9 | 17.2 | ||||||
Cash (used for) provided by financing activities | (279.5 | ) | 170.6 | |||||
Effect of exchange rate changes on cash and cash equivalents | (1.7 | ) | (1.3 | ) | ||||
(Decrease) increase in cash and cash equivalents | (331.4 | ) | 154.5 | |||||
Cash and cash equivalents at beginning of period | 524.1 | 298.0 | ||||||
Cash and cash equivalents at end of period | $ | 192.7 | $ | 452.5 |
Fiscal 2014 | |||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||
Net sales | |||||||||||||||||||
Process & Motion Control | $ | 314.6 | $ | 311.8 | 300.8 | $ | 927.2 | ||||||||||||
Water Management | 194.1 | 202.7 | 188.3 | 585.1 | |||||||||||||||
Corporate | — | — | — | — | |||||||||||||||
Total | $ | 508.7 | $ | 514.5 | 489.1 | $ | 1,512.3 | ||||||||||||
Adjusted EBITDA | |||||||||||||||||||
Process & Motion Control | $ | 70.8 | $ | 77.6 | 76.2 | $ | 224.6 | ||||||||||||
Water Management | 29.5 | 32.1 | 28.2 | 89.8 | |||||||||||||||
Corporate | (7.5 | ) | (7.0 | ) | (6.4 | ) | (20.9 | ) | |||||||||||
Total | $ | 92.8 | $ | 102.7 | 98.0 | $ | 293.5 | ||||||||||||
Adjusted EBITDA % | |||||||||||||||||||
Process & Motion Control | 22.5 | % | 24.9 | % | 25.3 | % | 24.2 | % | |||||||||||
Water Management | 15.2 | % | 15.8 | % | 15.0 | % | 15.3 | % | |||||||||||
Total (including Corporate) | 18.2 | % | 20.0 | % | 20.0 | % | 19.4 | % | |||||||||||
Fiscal 2013 | |||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | |||||||||||||||
Net sales | |||||||||||||||||||
Process & Motion Control | $ | 313.9 | $ | 309.1 | $ | 302.9 | $ | 340.2 | $ | 1,266.1 | |||||||||
Water Management | 179.7 | 190.4 | 168.8 | 200.1 | 739.0 | ||||||||||||||
Corporate | — | — | — | — | — | ||||||||||||||
Total | $ | 493.6 | $ | 499.5 | $ | 471.7 | $ | 540.3 | $ | 2,005.1 | |||||||||
Adjusted EBITDA | |||||||||||||||||||
Process & Motion Control | $ | 74.2 | $ | 77.7 | $ | 74.9 | $ | 89.0 | $ | 315.8 | |||||||||
Water Management | 29.3 | 30.5 | 23.7 | 30.7 | 114.2 | ||||||||||||||
Corporate | (6.0 | ) | (7.7 | ) | (6.6 | ) | (4.7 | ) | (25.0 | ) | |||||||||
Total | $ | 97.5 | $ | 100.5 | $ | 92.0 | $ | 115.0 | $ | 405.0 | |||||||||
Adjusted EBITDA % | |||||||||||||||||||
Process & Motion Control | 23.6 | % | 25.1 | % | 24.7 | % | 26.2 | % | 24.9 | % | |||||||||
Water Management | 16.3 | % | 16.0 | % | 14.0 | % | 15.3 | % | 15.5 | % | |||||||||
Total (including Corporate) | 19.8 | % | 20.1 | % | 19.5 | % | 21.3 | % | 20.2 | % |
X._256-;97_+5Q)-GQW"^PX*[*%:OD-/\`
MBG^LSKJL;*OH=T]MX=9MM?\`0<65Y%]5!JV-NMQZV_G_`.C72?73_%[E]6ZF
MWKG1 X._256-;97_+5Q)-GQW"^PX*[*%:OD-/\`BG^LSKJL;*OH
M=T]MX=9MM?\`0<65Y%]5!JV-NMQZV_G_`.C72?73_%[E]6ZFWKG1 '!A8VME="!B96=I
M;CTB[[N_(B!I9#TB5S5-,$UP0V5H:4AZ D!\@'Z`@,"#`(4`AT")@(O`C@"00)+`E0"
M70)G`G$">@*$`HX"F`*B`JP"M@+!`LL"U0+@`NL"]0,``PL#%@,A`RT#.`-#
M`T\#6@-F`W(#?@.*`Y8#H@.N`[H#QP/3`^`#[`/Y!`8$$P0@!"T$.P1(!%4$
M8P1Q!'X$C`2:!*@$M@3$!-,$X03P!/X%#044%]@8&!A8&)P8W!D@&609J!GL&C`:=!J\&P`;1!N,&]0<'!QD'
M*P<]!T\'80=T!X8'F0>L![\'T@?E!_@("P@?"#((1@A:"&X(@@B6"*H(O@C2
M".<(^PD0"24).@E/"60)>0F/":0)N@G/">4)^PH1"B<*/0I4"FH*@0J8"JX*
MQ0K<"O,+"PLB"SD+40MI"X`+F`NP"\@+X0OY#!(,*@Q##%P,=0R.#*<,P`S9
M#/,-#0TF#4`-6@UT#8X-J0W##=X-^`X3#BX.20YD#G\.FPZV#M(.[@\)#R4/
M00]>#WH/E@^S#\\/[!`)$"800Q!A$'X0FQ"Y$-<0]1$3$3$13Q%M$8P1JA')
M$>@2!Q(F$D429!*$$J,2PQ+C$P,3(Q-#$V,3@Q.D$\43Y10&%"<4211J%(L4
MK13.%/`5$A4T%585>!6;%;T5X!8#%B86219L%H\6LA;6%OH7'1=!%V47B1>N
M%](7]Q@;&$`891B*&*\8U1CZ&2`911EK&9$9MQG=&@0:*AI1&G<:GAK%&NP;
M%!L[&V,;BANR&]H<`APJ'%(<>QRC',P<]1T>'4<=:AZ4
M'KX>Z1\3'SX?:1^4'[\?ZB`5($$@;""8(,0@\"$<(4@A=2&A( &YXS'DJ>8EYYWI&>J5[!'MC>\)\(7R!?.%]07VA?@%^8G["
M?R-_A'_E@$>`J($*@6N!S8(P@I*"](-7@[J$'82`A..%1X6KA@Z& T7..Q*T\<(O81^*`EF`^<9`D^W2K`>;="2SYBVV[
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M[KW7O?NO=>]^Z]ULQ?\`"4[X_?Z5_P"9JW;%?1>;"_&CIC?N_8*N6/R4J;QW
MM%%U1MVA=3<>5Z',YFL@+#TFD+`AU0^X<][]U^AY-^A4]UY,B4\]"5E8_95$
M!_TW0DY6M_%W+Q3PC4G\SVC^1/[.OI;>\/.I(Z"KO'I+J_Y(=1]@=%]T;2QN
M^>K^S]MUNUMX[8RB-X*_&UEI(JBEJ8BLM+64DZ0UF/KJ9TJ*2JBAJ:>2.>*-
MU7;;N5[M%_%N>W2&*:%@R,/(CU\B"*AE-0RD@@@D=-3PQ7,303#4K"A'^K^1
M\CGKY-O\U?\`EJ=G_P`L/Y/9OIO=O\2W%UEN3[[<_0_:D]&L%'V)U_\`=B)%
MJI*8""+-XEI(Z/.T*:3%,8YT04E7222YS X*>K^RSE'TYG=C[0J4E
M\513;V[9FAZKVA7TBCU.])D,S3UI11^F%B2%#,!?R#M/[[YQV_;R*J95=_\`
M215E8'[50C\^B[=[CZ7;9IAQTD#[6[1_,UZ^05[SWZB3KWOW7NO>_=>Z][]U
M[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>
M_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>ZNI^"W\_7^8K\&I\5@,5VO5
M]\=044],M1U#WW5Y3?6)IL;"G@-#L[=]5.,[@E2,M]O3T.0^Q22TDM#/8JT=
M+K;L6HR--6S/R7
M`W-0QWY55%E$;;S[`VK`R;!?,A\DG4,#_P`W(PI`_P";;'H[MN;Y`0+R($>J
M&G\C6O[1UM#?"K^<'_+[^?`QV)Z([ZP-/V17Q1,>E^RE7KOMI*F2)IY:+&[7
MSSK'FG@52:B7;M5D((^-4PN+PMS%R!S5RO63<[5C"/\`1H_U(OM++\%?(2!"
M?3H366[V%_002#5_"<-^P\?RKU9M[!O1GU[W[KW7O?NO=>]^Z]U[W[KW6.66
M*"*2::2.&&&-Y99976.***-=UW*7,H:5X!:W!_P!%@`0U]70#0_S++JI@,.CFQW[<;&BA_$3^%L_L/$?D
M:?+K>P_EH_S[/A=_,9&%V'!EWZ!^2=UON`_*6X_N[<6)V^Y8:_^$N<"4?T>`D'FM&%2M"'M^V<
M;A#XT(_608_I#^'[?3YX\\?,5R..R&'R%?B,O05F+RN+K*K'9/&9&EGH
JUL#G41224?\*4C"G_?C8_A#YH'=VY@
M@L*PP4DF]/PK_ICZ_(9]2.OG,_);Y0=\_,#MK>'R-[)W!V?V1N1]-3F
]^Z]U[W[KW7O?NO=;&G\MS_A-C\R_FS28'LW
MN4R?$SX_95*;(T.XM]X&HK^U=[XJ4B:.?9'5LLM)-!35$?\`FLIG*BCB*/'4
M4L-?'=?<1\W^[_+W+C-9[?\`X]=+4%4:D2'^G)0@D>:H&."&*GH0[=RY>7H$
MLWZ49\R.X_8O^4T^5>MY7X+_`,F?X`_R_:'$5_3G3&+W3VEC5@EG[V[;BQ^_
MNVJC(0Z3]_B,U6T\='@B2JWBVY0T$;6!=7>[G&OF;W"YIYJ9EW"X*0'_`$&*
MJ14]"`:O]LC,?3'0WL=GL+``PI5A^)LM^WR_(#JT_P!@GHTZ][]U[KWOW7NO
M>_=>Z][]U[KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z('\Z?Y9/PW_F);,EVS\DN
MI\5E]R4M#)1[4[=VS'3;<[@V,Q5_"VW-\TT33O3([F5L5D4JL=*X5YJ21E0J
M*>6>Q=X]F=B;BQNT=A=?;8SF\]Y[IS$I@Q>WMK[:QLF8SN9R$JAF$5-30R2OI4
ML0ME!-@7[6UN+ZYCL[1#)+*RHBCBS,:*!\R33JDDB1(99#15!)/H!Q/7R4/Y
MM?\`,>WM_,S^7.[^Z,FV2P_5&VWJME=`[!K)2$VAUECJQOLJVNI$9HUR^;D!
MRN9<,]IY13)(]-2TP7.SD3E&VY-V&/;DHT[T>=Q^.0C(!_A3X4^0U$58]13N
MVXON5V9CA!A1Z+_G/$_LX`=5B>QGT6=>]^Z]U[W[KW7O?NO=>]^Z]T+71/1?
M:GR7[=V%T5TGM'(;Z[0[*SU-MW:6VL<88I*RMF5IIZFLK*ID@I:.E@26JK:V
MID2&GIXY)IG2.-F"#<]SL=GL)=SW&010PKJ9CY#Y`9))H`!DD@`5/3L$$MS,
ML$(U,QH!_J_F>OJ:_P`H3^4#TM_*\Z
ORCWQM^BB[N[K\
=)2PS[
MBZR[$QM/*FV=^;:EEL1-2O*\-5`'5:NCEJ*.4^*=_8BY6YFW#E/>(]WV\Y7#
MH3VR1GXD;Y'B#^%@&&1TBO[&'<+9K:;SX'S4^1'^K(J.ODJ?,'XE=R_![Y"]
MA?&WO7`-A=\;"RAACKJ=9I,!O#;=63-MS?.T,A,J?=8O*4VFHII=(=#KIZA(
MJJ&>&/.O8-]V_F3:HMXVQ]44HX?B1A\2,/)E."//B"5()BF\M)K*X:VG%&7]
MA'D1\C_JST67V<])NO>_=>Z.+\)/@?\`);^8-W#1=,?&K8=3NC,HM+6[MW3D
M&EQNP^N-O5%0:=MS;]W.8WCHJ4%7\,2K)4U+J8J2"HFM'[#_`#'S/L_*NWG<
M=XET+D*HR\C?PHOF?4X"\6(&>E=E8W.X3>#;+4^9\@/4GR_PGRZ^EO\`RHOY
M*/QG_E@[1I-P8RDI.VOE#G,4*7?7R`W'BX4R%$E73B/(;4ZKQ,QD&`PE]0E\
M;M6UURU=4R1+34U+AYSQ[B[SSG.8G)@LE-4@4X-.#2G\;^GX5_"`:EI(VK9;
M;;$U#OE/%S_@7T'\SYG@!
5>5V6Y2(W5RM")9J,5(\T2@1*'(-"X_C
MZ"M_OVX7X*%O#0_A7%?M/$_X/EU2-[DCHEZ][]U[KWOW7NO>_=>Z][]U[KWO
MW7NCC?`WX0]R?S"/DKL7XU]+4%LQN6-KLQE\C5-HIL?C,;2M6U];4/S:.*)'D<_@`^[QQO+(
ML48JS$``>9)H!^9ZT2%!9L`=?%P^47=F6^2?R2[Z^0.;>I.1[G[>["[+DAJW
M+RT%/O#=-5F\?B5%V"1T=/-%20QJ=,<<:HME4#WT/V7;8]GVBUVJ/A;Q1QX\
M]"@$_F02?4FO4-W4QN;F2X;B[$_M->@(]FG3'7O?NO=>]^Z]U[W[KW7O?NO=
M?2__`.$JWQX7J+^6/3]L5U$T.>^3G;V_.PQ43H(ZO^Z&S*Q>I]LT#1V#"$5.
M%RM?3EQ=UK#(I,;Q^\.O>[=OK^POYQ_^E9=]_P#U
M_P#>:/\`4SD__HTV?_9+!_T!U&7[SW+_`)2)?^"J,O(W\*+6K'U\E&6(&>E=E8W-_,(;9:GS/D!ZD^7^7RZ^I5_*^
M_E?=#_RONAZ;K+K*FBW1V5NB+'9/NKNK)XZ&EW1V9NBEA8(JH&D:@P=`TDT>
M&PT
&P_PD=$',Q`VAP?,K
M_P`>!Z^7M[S1ZC+KWOW7NO>_=>Z][]U[KWOW7NO>_=>Z^L7_`,)_-HOLG^3U
M\(\-(LB-6[&WUNX"243,4[`[CW)OR-@ZJME9
0`H!^0ZAIF+,6;).3TU>W.M=>]^Z]U[W[KW7O?NO=;8'_"1GX\+V
M'\YNY/D)DJ)JG$?'+I.3%XFI$8MC^P>Z\LVWL'4-,P(`?`8O=4.@69BX8-I1
ME>#??C=OI.6K?:D-&NYJGYQPC4W_`!MHCT*N4[?Q+Y[@\(U_FV!_(-U]%CWB
M7U(77O?NO=>]^Z]U[W[KW7O?NO=:17_"JS^5N,C0TG\S#I;;J_?XV+`;+^5>
M(Q-(S2UV.3P[>Z_[DG6/ZO2**7;N8<`_L_PV72J054IR/]D.==#'D[<7P=3V
MQ)X'+/%^>9$^>L>:CH%