-----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, FkJ6/wGUzZu+MhBLQOE7e9fzSDekfPPteyocskncHxlJ/wnlY2asC3xwx0isdPG2 wNEWVzh5aR9kzwGqLPDtJw== 0000906504-99-000087.txt : 19991117 0000906504-99-000087.hdr.sgml : 19991117 ACCESSION NUMBER: 0000906504-99-000087 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991115 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BONTEX INC CENTRAL INDEX KEY: 0000041052 STANDARD INDUSTRIAL CLASSIFICATION: CONVERTED PAPER & PAPERBOARD PRODS (NO CONTAINERS/BOXES) [2670] IRS NUMBER: 221427551 STATE OF INCORPORATION: VA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-05200 FILM NUMBER: 99754447 BUSINESS ADDRESS: STREET 1: ONE BONTEX DR CITY: BUENA VISTA STATE: VA ZIP: 24416-0500 BUSINESS PHONE: 5402612181 MAIL ADDRESS: STREET 1: PO BOX 751 CITY: BUENA VISTA STATE: VA ZIP: 24416 FORMER COMPANY: FORMER CONFORMED NAME: GEORGIA BONDED FIBERS INC DATE OF NAME CHANGE: 19920703 10-Q 1 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended September 30, 1999 Commission File No. 0-5200 BONTEX, INC. (Exact name of registrant as specified in its charter) VIRGINIA 54-0571303 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) ONE BONTEX DRIVE, BUENA VISTA, VIRGINIA 24416-1500 (Address of principal executive offices) (Zip Code) Registrant's telephone number: 540-261-2181 Indicate by checkmark whether the registrant (1) has filed all reports to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ( X ) NO ( ) Indicate the description and number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date. Class Outstanding at November 10, 1999 Common Stock - $.10 par value 1,572,824 1 BONTEX, INC. FORM 10-Q FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 1999 INDEX PART I. FINANCIAL INFORMATION Page No. Item 1. Financial Statements CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 1999 and June 30, 1999..........................3 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) AND CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY First Quarter Ended September 30, 1999 and 1998................4 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS First Quarter Ended September 30, 1999 and 1998................5 CONDENSED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS...................................................6,7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.................8-10 Item 3. Quantitative and Qualitative Disclosures About Market Risk.......................................10, 11 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K......................12 2 PART I. FINANCIAL INFORMATION Item 1. Financial Statements BONTEX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share and Per Share Data)
September 30, June 30, (unaudited) 1999 1999 ASSETS Current assets: Cash and cash equivalents $ 224 $ 336 Trade accounts receivable, less allowance for doubtful accounts of $182 ($128 at June '99) 9,758 11,765 Other receivables 381 278 Inventories 6,465 5,798 Deferred income taxes 123 124 Income taxes refundable 54 67 Other current assets 388 152 ------------- -------------- TOTAL CURRENT ASSETS 17,393 18,520 ------------- -------------- Property, plant and equipment: Land and land improvements 368 361 Buildings and building improvements 6,080 5,953 Machinery, furniture and equipment 18,015 17,885 Construction in progress 489 239 ------------- -------------- 24,952 24,438 Less accumulated depreciation and amortization 13,376 12,915 ------------- -------------- Net property, plant and equipment 11,576 11,523 Deferred income taxes 743 599 Other assets, net 523 522 ------------- -------------- TOTAL ASSETS $ 30,235 $ 31,164 ============= ============== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings $ 8,854 $ 9,215 Long-term debt due currently 1,116 781 Accounts payable 6,085 6,375 Accrued expenses 1,782 1,590 Income taxes payable 184 197 ------------- -------------- TOTAL CURRENT LIABILITIES 18,021 18,158 Long-term debt, less current portion 2,154 2,601 Deferred income taxes 49 48 Other long-term liabilities 521 464 ------------- -------------- TOTAL LIABILITIES 20,745 21,271 ------------- -------------- Stockholders' equity: Preferred stock of no par value. Authorized 10,000,000 shares; none issued - - Common stock of $.10 par value. Authorized 10,000,000 shares; issued and outstanding 1,572,824 shares 157 157 Additional capital 1,551 1,551 Retained earnings 7,581 8,120 Accumulated other comprehensive income 201 65 ------------- -------------- TOTAL STOCKHOLDERS' EQUITY 9,490 9,893 ------------- -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 30,235 $ 31,164 ============= ==============
See accompanying condensed notes to unaudited condensed consolidated financial statements. 3 BONTEX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) AND CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (In Thousands, Except Per Share Data) (Unaudited) Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss):
First Quarter Ended September 30, 1999 1998 Net Sales $ 8,059 $ 8,717 Cost of Sales 6,138 6,577 --------- --------- Gross Profit 1,921 2,140 Selling, General and Administrative Expenses 2,412 2,339 --------- --------- Operating Income (Loss) (491) (199) --------- --------- Other (Income) Expense: Interest expense 200 243 Interest income - (1) Foreign currency exchange (gain) loss (15) 30 Other, net 7 5 --------- --------- Total Other (Income) Expense 192 277 --------- --------- Income (Loss) Before Income Taxes (683) (476) Income Tax Benefit (144) (96) --------- --------- Net income (Loss) (539) (380) --------- --------- Other Comprehensive Income Foreign currency translation adjustment 136 330 --------- --------- Comprehensive Income (Loss) $ (403) $ (50) ========= ========= Net income (loss) per share $ (.34) $ (.24) ========= ========= Condensed Consolidated Statements of Changes in Stockholders' Equity: Stockholders' Equity, beginning balance $ 9,893 $ 10,891 Net income (loss) (539) (380) Other comprehensive income Foreign currency translation adjustment 136 330 --------- --------- Stockholders' Equity, ending balance $ 9,490 $ 10,841 ========= =========
See accompanying condensed notes to unaudited condensed consolidated financial statements. 4 BONTEX, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (unaudited)
First Quarter Ended September 1999 1998 Cash Flows from Operating Activities: Cash received from customers $ 9,765 $ 10,577 Cash paid to suppliers and employees (8,850) (10,418) Interest received 1 2 Interest paid (193) (266) Income taxes paid, net of refunds 2 35 -------- -------- Net cash provided by (used in) operating activities 725 (70) -------- -------- Cash Flows from Investing Activities: Acquisition of property, plant and equipment (182) (262) -------- -------- Net cash used in investing activities (182) (262) -------- -------- Cash Flows from Financing Activities: Increase (decrease) in short-term borrowings, net (479) 283 Long-term debt incurred 19 350 Principal payments on long-term debt (186) (390) -------- -------- Net cash provided by (used in) financing activities (646) 243 -------- -------- Effect of Exchange Rate Changes on Cash (9) 47 -------- -------- Net decrease in Cash and Cash Equivalents (112) (42) Cash and Cash Equivalents at Beginning of Period 336 517 -------- -------- Cash and Cash Equivalents at End of Period $ 224 $ 475 ======== ======== Reconciliation of Net Income (Loss) to Net Cash Used In Operating Activities: Net income (loss) $ (539) $ (380) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 328 336 Provision for bad debts 56 10 Deferred income taxes (144) (128) Change in assets and liabilities: Decrease in trade accounts and other receivables 1,974 1,631 Increase in inventories (491) (216) Increase in other assets (233) (379) Decrease in accounts payable and accrued expenses (256) (976) Increase in income taxes 2 - Increase in other liabilities 28 32 -------- -------- Net cash provided by (used in) operating activities $ 725 $ (70) ======== ========
See accompanying condensed notes to unaudited condensed consolidated financial statements. 5 BONTEX, INC. AND SUBSIDIARIES CONDENSED NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 1999 AND 1998 AND JUNE 30, 1999 (Unaudited) 1. The accompanying unaudited condensed consolidated financial statements have been prepared by Bontex, Inc. and its subsidiaries ("Bontex" or the "Company") in accordance with generally accepted accounting principles for interim financial reporting information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all material reclassifications and adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of the results of operations, financial position and cash flows for each period shown, have been included. Operating results for interim periods are not necessarily indicative of the results for the full year. The unaudited condensed consolidated financial statements and condensed notes are presented as permitted by Form 10-Q and do not contain certain information included in the Company's annual consolidated financial statements and notes. For further information, refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended June 30, 1999. 2. The last in, first out (LIFO) method of inventory pricing is used by the Company in the United States. Inventories of the European subsidiaries are valued at the lower of cost or market using the first-in, first-out (FIFO) and weighted average bases. Inventories are summarized as follows:
September 30, June 30, 1999 1999 (Dollars in Thousands) Finished goods $ 3,546 $ 3,341 Raw Materials 2,506 2,025 Supplies 755 774 -------- --------- Inventories at FIFO and weighted average cost 6,807 6,140 LIFO reserves 342 342 -------- --------- $ 6,465 $ 5,798 ======== =========
3. Business segment information related to the North American and European operations follows:
North American European Eliminations Consolidated Operations Operations First Quarter Ended September 30, 1999 Net Sales $3,703 $4,450 $ (94) $8,059 Net Income (Loss) (281) (261) 3 (539) First Quarter Ended September 30, 1998 Net Sales $3,886 $4,918 $(87) $8,717 Net Income (Loss) (239) (141) - (380)
6 BONTEX, INC. AND SUBSIDIARIES CONDENSED NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 1999 AND 1998 AND JUNE 30, 1999 (Unaudited) 4. Net income (loss) per share calculations are based on the weighted average number of shares outstanding of 1,572,824 shares for all periods. 7 BONTEX, INC. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS QUARTER ENDED SEPTEMBER 30, 1999 (Unaudited) Except for historical data set forth herein, the following discussion contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements include, for example, statements about future results of operations or market conditions and involve risks, uncertainties and assumptions. Actual results may differ materially from these forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, the global economic crisis emanating from Southeast Asia, excessive worldwide footwear inventories, a shrinking domestic market for Bontex products, decreased sales to key customers, increased competition from non-woven materials, the Year 2000 problem, the increase in the relative prices of Bontex's products due to foreign currency devaluations, increased pulp and latex prices, and capital illiquidity resulting from the breach of loan covenants and/or an inability to identify additional sources of financing. RESULTS OF OPERATIONS The results of operations for the first quarter of fiscal year 2000 reflect a decrease in profitability. During the first quarter, the Company generated a consolidated operating loss of $491,000, and a net loss of $539,000 or $.34 per share. Consolidated net sales decreased $658,000 or 7.5 percent to $8.1 million for the first quarter ended September 30, 1999. The fluctuation in foreign currency exchange rates resulted in a $312,000 translation decrease in net sales. There are several reasons contributing to the decrease in sales. The situation in Asia continues to have a significant impact on the Company's sales and profitability. It has been well publicized that athletic footwear sales, the largest footwear segment globally, have dropped considerably. Another item adversely impacting Bontex sales is the trend of increased usage of other materials, such as non-wovens and plastics, which have replaced Bontex cellulose materials in athletic footwear. Furthermore, our primary global competitor has reduced prices in several markets in an attempt to increase its sales, which has resulted in Bontex reducing prices to meet the competition to maintain market share. Seasonality generally exists in that the first half of each fiscal year is typically lower in volume than the second half, which is largely due to customer's scheduled vacations, shutdowns, holidays and purchasing cycles. Over the past fifteen years, the Company has generated net income during the first quarter only six times, the most recent being in fiscal year 1997. Gross profit as a percentage of net sales (i.e., Gross Margin) for the first quarter of fiscal year 2000 decreased slightly compared to the same period last year from 24.5 to 23.8 percent. This decrease in profit margins is primarily attributed to competitive pricing pressures which have resulted in lower selling prices and have had a negative impact on net sales and profit margins. The cost of pulp has been stable during the past fiscal year, but may be showing signs of increasing in fiscal year 2000. It is difficult to predict future raw material costs, and there can be no assurance that raw material prices will not have an adverse impact on the Company's operations or competitive position in the future. Selling General & Administrative (SG&A) expenses increased 3.1 percent compared to the same period last year and as a percent of net sales increased from 26.8 percent to 29.9 percent, as compared to the corresponding prior year. The increased SG&A percentage is mainly due to higher professional fees and the decrease in sales. Interest expense has decreased $43,000 for the quarter ended September 30, 1999, as compared to the same period last year due to reduced short-term borrowing. 8 Other comprehensive income, foreign currency translation adjustment, which totaled $136,000 for the quarter ended September 30, 1999, is primarily the result of the strengthening of the US Dollar verses the Euro since June 30, 1999. FINANCIAL CONDITION Consolidated stockholders' equity decreased $403,000 from June 30, 1999, and totaled 9.5 million at the end of September 1999. Financial ratios at September 30, 1999 generally decreased from June 30, 1999 because of the negative operating results. The fluctuation in foreign currency exchange rates resulted in a translation decrease of $1.8 million in consolidated total assets as compared to September 30, 1998. The decrease in cash balances is mainly attributed to the payment of debt from operating cash flows. Trade accounts receivables decreased by $2.0 million to $9.8 million, and is primarily because of the decrease in consolidated net sales. The $667,000 increase in inventories to $6.5 million mainly corresponds to raw material increases from year end lows to support current operations. Other current assets increased $236,000 to $388,000 from June 30, 1999, primarily due to prepaid insurance for fiscal year 2000. The $514,000 increase in gross property, plant and equipment is due to the addition of routine equipment costs and exchange rate changes resulting in translation adjustments at the Company's European operations. Accounts payable, accrued expenses and short-term borrowings decreased $459,000, which primarily corresponds to decreased trade account receivables. Management believes that existing short-term credit facilities will be sufficient to meet future operating and capital requirements. As of September 30, 1999, Bontex USA was not in compliance with certain loan covenants of its secured debt agreement, under which certain current and noncurrent assets are pledged as collateral. Accordingly, Bontex has classified $320,000 of long-term debt as current. In the meantime, the Company is seeking alternative means of capital and/or financing, which management believes they will successfully complete in the second quarter of fiscal year 2000. If Bontex is unable to obtain refinancing, Bontex might have difficulty in obtaining funds to meet operating and capital requirements, which could cause a material adverse impact on its financial condition and results of operations. FINANCIAL INSTRUMENTS From time to time, the Company utilizes derivatives and other financial instruments in the normal course of business. By their nature, all such instruments involve risk, and the Company's maximum potential loss may exceed amounts recorded in the balance sheet. The Company is exposed to a variety of market risks, including the effects of changes in foreign currency exchange rates, interest rates and commodity prices. In the past, the Company has primarily used such derivative financial instruments for the purpose of hedging currency and interest rates exposures. For further information concerning the aforementioned financial instruments, refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended June 30, 1999. REFOCUSING Bontex has recently developed several new innovative products for footwear that it believes will have good sales potential based on early marketing efforts. The Company has also concluded new marketing agreements for stitch 9 bonded non-wovens, open celled polyurethane foams, thermoplastics, and specialized moulds. Each of these projects should bring advanced technology to the footwear industry and should add value for Bontex customers. Bontex management believes that the key to success in these areas relies upon bringing added value to our customers. We have an aggressive strategy to locate such technologies and bring them to the marketplace. Sales from these projects are expected to occur during fiscal year 2000, however it is impossible to accurately predict the level of sales potential or profitability at this time. YEAR 2000 ISSUE Over the past two years, Bontex has invested and capitalized approximately $200,000 in information and non-information technology (IT) systems to improve data efficiency and address the Company's Year 2000 systems exposure. The Year 2000 issue relates to computer programs using two digits rather than four to define the applicable year. Inability to process data properly due to this phenomenon may result in system's failures. The project to address the Company's Year 2000 systems exposure is complete. The IT systems software has been tested and all software appears to operate as intended. Testing of non-IT systems was also completed in October 1999, and all non-IT systems appear to operate as intended. Bontex continues to assess the Year 2000 readiness of its major customers and vendors. The review is substantially complete with no material risks identified. Major customers and vendors who have not responded, however, could suffer disruptions for the Year 2000 problem. Furthermore, even if the systems of Bontex's major customers and vendors are Year 2000 compliant, their operations may suffer disruptions as a result of the Year 2000 problems of the outside parties on which they rely. Therefore, there can be no assurances that the Year 2000 will not significantly affect the Company's third parties, which in turn could affect Bontex's operations and financial results. The Company is currently in the process of formulating a contingency plan to maintain operations in the event of its most likely worse case Year 2000 scenario. Bontex intends to complete the plan in December 1999. Bontex expects that the contingency plan will provide, if necessary, for manual processing of accounting and financial information. The contingency plan, however, would be unable to mitigate extreme Year 2000 effects, such as power or communications failures, interrupted deliveries from major suppliers, or decreased sales resulting from regional or worldwide recessions or disruptions in the operations of major customers. Therefore, there can be no assurance that the date change from 1999 to 2000 will not materially affect the Company's operations and financial results. RECENT ACCOUNTING PRONOUNCEMENTS Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities," was to be effective for periods beginning after June 15, 1999, but implementation has been delayed by the Financial Accounting Standards Board to be effective for periods beginning after June 15, 2000. This statement requires that the Company recognize all derivatives as either assets or liabilities in the balance sheet, and measure those instruments at fair value. The Company is currently in the process of reviewing the impacts of this Statement. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The Company is exposed to certain risks related to interest rates, currency and commodity positions. Market risk is defined as the risk of loss arising from adverse changes in market rates and prices. The following disclosures provide certain forward-looking data concerning potential exposures to market risk. In general, the Company's policy is not to speculate on interest rates, currencies and commodities in the markets, but rather to fix rates and prices at levels considered favorable. 10 There is no expected material foreign exchange risk for the Company's debt, as these amounts are denominated in the local operating currencies of the respective operations. Other assets and liabilities are hedged and accordingly, are not considered subject to material foreign exchange risk as well. The table below provides information about the Company's derivative financial instruments that are sensitive to changes in interest rates. For debt obligations, the table presents principal cash flows and related weighted average interest rates by expected maturity dates. For interest rate swaps, the table presents notional amounts and weighted average interest rates by expected (contractual) maturity dates. Notional amounts are used to calculate the contractual payments to be exchanged under contract. Weighted average variable rates are based on implied forward rates in the yield curve at the reporting date. Derivative Financial Instruments held for other than trading purposes at September 30, 1999 (dollars in thousands):
Expected Maturity Date There- Estimated 2000 2001 2002 2003 2004 after Total Fair Value Liabilities Long-term debt Fixed Rate $ 1,069 $ 461 $ 468 $ 468 $ 462 $ 342 $ 3,270 $ 3,270 Average interest rate 6.40% 6.40% 5.49% 4.99% 5.00% 5.23% 5.75% Interest Rate Derivative Interest Rate Swap Fixed to Variable $ 1,000 - - - - - $ 1,000 $ (6) Average pay rate 6.35% 6.35% Average receive rate 5.00% 5.00%
The Company's interest rate swap fixes the rate of interest for $1,000 of $8,854 total variable rate debt. In the event of lowering BIBOR or LIBOR rates, the Company is exposed to higher fixed rates. The $7,854 variable rate debt not covered by the interest rate swap is subject to the risk of interest rate changes. The market risk sensitivity analysis above does not fully reflect the potential net market risk exposure, because other market risk exposures may exist in other transactions. 11 PART II. OTHER INFORMATION BONTEX, INC. FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1999 Item 6. Exhibits and Reports on Form 8-K (a.) Exhibits: 27 - Financial Data Schedule (b.) Reports on Form 8-K: None 12 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 thereunto duly authorized. BONTEX, INC. (Registrant) November 15, 1999 /s/James C. Kostelni (Date) James C. Kostelni Chairman of the Board and President November 15, 1999 /s/Charles W. J. Kostelni (Date) Charles W. J. Kostelni Corporate Controller and Secretary 13 EX-27 2 FDS --
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BONTEX, INC.'S UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENT FOR THE QUARTER ENDED SEPTEMBER 30, 1999, AS SET FORTH IN THE COMPANY'S QUARTERLY REPORT ON FORM 10-Q, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS JUN-30-2000 SEP-30-1999 224 0 10,321 182 6,465 17,393 24,952 13,376 30,235 18,021 3,270 157 0 0 9,333 30,235 8,059 8,074 6,138 8,757 0 56 200 (683) (144) (539) 0 0 0 (539) (.34) (.34)
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