FORM 10-Q |
HAWKINS, INC. |
(Exact name of registrant as specified in its charter) |
MINNESOTA | 41-0771293 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(612) 331-6910 |
(Registrant’s telephone number, including area code) |
Large Accelerated Filer | ¨ | Accelerated Filer | ý |
Non-Accelerated Filer | ¨ (Do not check if a smaller reporting company) | Smaller Reporting Company | ¨ |
CLASS | Shares Outstanding at July 24, 2015 | |
Common Stock, par value $.05 per share | 10,654,509 |
Page | |||
PART I. | |||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II. | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 6. | |||
June 28, 2015 | March 29, 2015 | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 18,071 | $ | 18,639 | ||||
Investments available-for-sale | 13,959 | 14,485 | ||||||
Trade receivables — less allowance for doubtful accounts: | ||||||||
$441 as of June 28, 2015 and $445 as of March 29, 2015 | 39,764 | 40,355 | ||||||
Inventories | 39,084 | 37,028 | ||||||
Income taxes receivable | — | 732 | ||||||
Prepaid expenses and other current assets | 2,527 | 3,101 | ||||||
Total current assets | 113,405 | 114,340 | ||||||
PROPERTY, PLANT, AND EQUIPMENT: | 175,861 | 172,772 | ||||||
Less accumulated depreciation and amortization | 80,739 | 79,042 | ||||||
Net property, plant, and equipment | 95,122 | 93,730 | ||||||
OTHER ASSETS: | ||||||||
Goodwill | 11,750 | 11,750 | ||||||
Intangible assets — less accumulated amortization: | ||||||||
$4,242 as of June 28, 2015 and $3,933 as of March 29, 2015 | 11,070 | 11,154 | ||||||
Long-term investments available for sale | 16,101 | 17,249 | ||||||
Other | 480 | 239 | ||||||
Total other assets | 39,401 | 40,392 | ||||||
Total assets | $ | 247,928 | $ | 248,462 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 18,345 | $ | 20,083 | ||||
Dividends payable | — | 4,038 | ||||||
Accrued payroll and employee benefits | 4,775 | 6,122 | ||||||
Deferred income taxes | 2,698 | 2,698 | ||||||
Income tax payable | 829 | — | ||||||
Other current liabilities | 3,763 | 3,402 | ||||||
Total current liabilities | 30,410 | 36,343 | ||||||
PENSION WITHDRAWAL LIABILITY | 6,513 | 6,589 | ||||||
DEFERRED INCOME TAXES | 10,014 | 9,978 | ||||||
OTHER LONG-TERM LIABILITIES | 656 | 1,588 | ||||||
Total liabilities | 47,593 | 54,498 | ||||||
COMMITMENTS AND CONTINGENCIES | — | — | ||||||
SHAREHOLDERS’ EQUITY: | ||||||||
Common stock; authorized: 30,000,000 shares of $0.05 par value; 10,569,764 and 10,564,949 shares issued and outstanding as of June 28, 2015 and March 29, 2015, respectively | 528 | 528 | ||||||
Additional paid-in capital | 50,426 | 50,901 | ||||||
Retained earnings | 149,358 | 142,567 | ||||||
Accumulated other comprehensive income (loss) | 23 | (32 | ) | |||||
Total shareholders’ equity | 200,335 | 193,964 | ||||||
Total liabilities and shareholders’ equity | $ | 247,928 | $ | 248,462 |
Three Months Ended | ||||||||
June 28, 2015 | June 29, 2014 | |||||||
Sales | $ | 101,496 | $ | 98,036 | ||||
Cost of sales | (80,761 | ) | (79,540 | ) | ||||
Gross profit | 20,735 | 18,496 | ||||||
Selling, general and administrative expenses | (9,891 | ) | (8,875 | ) | ||||
Operating income | 10,844 | 9,621 | ||||||
Interest income, net | 21 | 14 | ||||||
Income before income taxes | 10,865 | 9,635 | ||||||
Income tax provision | (4,074 | ) | (3,614 | ) | ||||
Net income | $ | 6,791 | $ | 6,021 | ||||
Weighted average number of shares outstanding - basic | 10,580,542 | 10,570,041 | ||||||
Weighted average number of shares outstanding - diluted | 10,628,409 | 10,613,738 | ||||||
Basic earnings per share | $ | 0.64 | $ | 0.57 | ||||
Diluted earnings per share | $ | 0.64 | $ | 0.57 | ||||
Cash dividends declared per common share | $ | — | $ | — |
Three Months Ended | ||||||||
June 28, 2015 | June 29, 2014 | |||||||
Net income | $ | 6,791 | $ | 6,021 | ||||
Other comprehensive income (loss), net of tax: | ||||||||
Unrealized gain (loss) on available-for-sale investments | 55 | (8 | ) | |||||
Total comprehensive income | $ | 6,846 | $ | 6,013 |
Three Months Ended | ||||||||
June 28, 2015 | June 29, 2014 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 6,791 | $ | 6,021 | ||||
Reconciliation to cash flows: | ||||||||
Depreciation and amortization | 3,564 | 2,984 | ||||||
Stock compensation expense | 457 | 405 | ||||||
Loss (gain) from property disposals | 13 | (4 | ) | |||||
Changes in operating accounts providing (using) cash: | ||||||||
Trade receivables | 591 | (1,971 | ) | |||||
Inventories | (2,056 | ) | (8,129 | ) | ||||
Accounts payable | (1,333 | ) | 3,763 | |||||
Accrued liabilities | (1,995 | ) | (1,695 | ) | ||||
Income taxes | 1,561 | (688 | ) | |||||
Other | 333 | 738 | ||||||
Net cash provided by operating activities | 7,926 | 1,424 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property, plant, and equipment | (5,181 | ) | (3,298 | ) | ||||
Purchases of investments | (2,194 | ) | (8,798 | ) | ||||
Sale and maturities of investments | 3,960 | 4,520 | ||||||
Other | (110 | ) | 18 | |||||
Net cash used in investing activities | (3,525 | ) | (7,558 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Cash dividends paid | (4,038 | ) | (3,823 | ) | ||||
Shares surrendered for payroll taxes | (379 | ) | (295 | ) | ||||
Shares repurchased | (552 | ) | (1,431 | ) | ||||
Net cash used in financing activities | (4,969 | ) | (5,549 | ) | ||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (568 | ) | (11,683 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 18,639 | 33,486 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 18,071 | $ | 21,803 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
Cash paid for income taxes | $ | 2,513 | $ | 4,325 | ||||
Noncash investing activities - Capital expenditures in accounts payable | $ | 720 | $ | 185 |
Three Months Ended | ||||||
June 28, 2015 | June 29, 2014 | |||||
Weighted-average common shares outstanding—basic | 10,580,542 | 10,570,041 | ||||
Dilutive impact of stock options, performance units, and restricted stock | 47,867 | 43,697 | ||||
Weighted-average common shares outstanding—diluted | 10,628,409 | 10,613,738 |
(In thousands) | Amount | ||
Accounts receivable | $ | 1,358 | |
Inventory | 859 | ||
Other assets | 159 | ||
Property, plant, and equipment | 702 | ||
Intangible assets | 3,509 | ||
Current liabilities | (877 | ) | |
Net assets acquired | 5,710 | ||
Goodwill | 4,358 | ||
Total purchase price | $ | 10,068 |
(In thousands) | Amount | Life (in years) | ||
Customer relationships | $ | 2,810 | 20 | |
Trade Name | 699 | 4 | ||
$ | 3,509 |
June 28, 2015 | ||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 18,071 | $ | 18,071 | $ | — | $ | — | ||||||||
Certificates of deposit | 28,243 | — | 28,243 | — | ||||||||||||
Municipal bonds | 1,817 | — | 1,817 | — | ||||||||||||
March 29, 2015 | ||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 18,639 | $ | 18,639 | $ | — | $ | — | ||||||||
Certificates of deposit | 29,136 | — | 29,136 | — | ||||||||||||
Municipal bonds | 2,598 | — | 2,598 | — |
June 28, 2015 | March 29, 2015 | |||||||
(In thousands) | ||||||||
Inventory (FIFO basis) | $ | 44,645 | $ | 42,567 | ||||
LIFO reserve | (5,561 | ) | (5,539 | ) | ||||
Net inventory | $ | 39,084 | $ | 37,028 |
June 28, 2015 | March 29, 2015 | |||||||||||||||||||||||
(In thousands) | Gross Amount | Accumulated Amortization | Net | Gross Amount | Accumulated Amortization | Net | ||||||||||||||||||
Finite-life intangible assets | ||||||||||||||||||||||||
Customer relationships | $ | 9,948 | $ | (1,837 | ) | $ | 8,111 | $ | 9,723 | $ | (1,697 | ) | $ | 8,026 | ||||||||||
Trademarks and trade names | 2,034 | (754 | ) | 1,280 | 2,034 | (667 | ) | 1,367 | ||||||||||||||||
Trade secrets | 962 | (919 | ) | 43 | 962 | (896 | ) | 66 | ||||||||||||||||
Carrier relationships | 800 | (395 | ) | 405 | 800 | (337 | ) | 463 | ||||||||||||||||
Other finite-life intangible assets | 341 | (337 | ) | 4 | 341 | (336 | ) | 5 | ||||||||||||||||
Total finite-life intangible assets | 14,085 | (4,242 | ) | 9,843 | 13,860 | (3,933 | ) | 9,927 | ||||||||||||||||
Indefinite-life intangible assets | 1,227 | — | 1,227 | 1,227 | — | 1,227 | ||||||||||||||||||
Total intangible assets | $ | 15,312 | $ | (4,242 | ) | $ | 11,070 | $ | 15,087 | $ | (3,933 | ) | $ | 11,154 |
(In thousands) | June 28, 2015 | March 29, 2015 | ||||||
Unrealized gain (loss) on: | ||||||||
Available-for-sale investments | $ | 30 | $ | (25 | ) | |||
Post-retirement plan liability | (7 | ) | (7 | ) | ||||
Accumulated other comprehensive income (loss) | $ | 23 | $ | (32 | ) |
Shares | Weighted- Average Grant Date Fair Value | ||||||
Unvested at beginning of period | 53,580 | $ | 37.55 | ||||
Granted | 37,309 | 40.89 | |||||
Vested | (28,648 | ) | 40.25 | ||||
Unvested at end of period | 62,241 | $ | 38.31 |
(In thousands) | Industrial | Water Treatment | Total | |||||||||
Three months ended June 28, 2015: | ||||||||||||
Sales | $ | 67,588 | $ | 33,908 | $ | 101,496 | ||||||
Gross profit | 10,714 | 10,021 | 20,735 | |||||||||
Selling, general and administrative expenses | 5,199 | 4,692 | 9,891 | |||||||||
Operating income | 5,515 | 5,329 | 10,844 | |||||||||
Three months ended June 29, 2014: | ||||||||||||
Sales | $ | 67,546 | $ | 30,490 | $ | 98,036 | ||||||
Gross profit | 9,361 | 9,135 | 18,496 | |||||||||
Selling, general and administrative expenses | 5,099 | 3,776 | 8,875 | |||||||||
Operating income | 4,262 | 5,359 | 9,621 |
Three months ended | |||||||
June 28, 2015 | June 29, 2014 | ||||||
Sales | 100.0 | % | 100.0 | % | |||
Cost of sales | (79.6 | )% | (81.1 | )% | |||
Gross profit | 20.4 | % | 18.9 | % | |||
Selling, general and administrative expenses | (9.7 | )% | (9.1 | )% | |||
Operating income | 10.7 | % | 9.8 | % | |||
Interest income, net | — | % | — | % | |||
Income before income taxes | 10.7 | % | 9.8 | % | |||
Income tax provision | (4.0 | )% | (3.7 | )% | |||
Net income | 6.7 | % | 6.1 | % |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Plan or Program | Maximum Number of Shares that May Yet be Purchased under Plans or Programs | ||||||
3/29/2015-04/26/2015 | 9,984 | (1) | $ | 37.99 | — | 240,398 | ||||
4/27/2015-5/24/2015 | — | — | — | 240,398 | ||||||
5/25/2015-6/28/2015 | 13,850 | $ | 39.86 | 13,850 | 226,548 | |||||
Total | 23,834 | — | 13,850 |
Exhibit | Description | Method of Filing | |||
3.1 | Amended and Restated Articles of Incorporation. (1) | Incorporated by Reference | |||
3.2 | Amended and Restated By-Laws. (2) | Incorporated by Reference | |||
31.1 | Certification by Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act. | Filed Electronically | |||
31.2 | Certification by Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act. | Filed Electronically | |||
32.1 | Section 1350 Certification by Chief Executive Officer. | Filed Electronically | |||
32.2 | Section 1350 Certification by Chief Financial Officer. | Filed Electronically | |||
101 | Financial statements from the Quarterly Report on Form 10-Q of Hawkins, Inc. for the period ended June 28, 2015 filed with the SEC on July 29, 2015, formatted in Extensible Business Reporting Language (XBRL); (i) the Condensed Consolidated Balance Sheets at June 28, 2015 and March 29, 2015, (ii) the Condensed Consolidated Statements of Income for the Three Months Ended June 28, 2015 and June 29, 2014, (iii) the Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended June 28, 2015 and June 29, 2014, (iv) the Condensed Consolidated Statements of Cash Flows for the Three Months Ended June 28, 2015 and June 29, 2014, and (v) Notes to Condensed Consolidated Financial Statements. | Filed Electronically |
(1) | Incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2010, filed on July 29, 2010. |
(2) | Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated October 28, 2009 and filed November 3, 2009. |
HAWKINS, INC. | |||
By: | /s/ Kathleen P. Pepski | ||
Kathleen P. Pepski | |||
Vice President, Chief Financial Officer, and Treasurer | |||
(On behalf of the registrant and as principal financial officer) |
Exhibit | Description | Method of Filing | |||
3.1 | Amended and Restated Articles of Incorporation. | Incorporated by Reference | |||
3.2 | Amended and Restated By-Laws. | Incorporated by Reference | |||
31.1 | Certification by Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act. | Filed Electronically | |||
31.2 | Certification by Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act. | Filed Electronically | |||
32.1 | Section 1350 Certification by Chief Executive Officer. | Filed Electronically | |||
32.2 | Section 1350 Certification by Chief Financial Officer. | Filed Electronically | |||
101 | Financial statements from the Quarterly Report on Form 10-Q of Hawkins, Inc. for the period ended June 28, 2015 filed with the SEC on July 29, 2015, formatted in Extensible Business Reporting Language (XBRL); (i) the Condensed Consolidated Balance Sheets at June 28, 2015 and March 29, 2015, (ii) the Condensed Consolidated Statements of Income for the Three Months Ended June 28, 2015 and June 29, 2014, (iii) the Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended June 28, 2015 and June 29, 2014, (iv) the Condensed Consolidated Statements of Cash Flows for the Three Months Ended June 28, 2015 and June 29, 2014, and (v) Notes to Condensed Consolidated Financial Statements. | Filed Electronically |
1. | I have reviewed this quarterly report on Form 10-Q of Hawkins, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Patrick H. Hawkins | |
Patrick H. Hawkins | |
Chief Executive Officer and President |
1. | I have reviewed this quarterly report on Form 10-Q of Hawkins, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Kathleen P. Pepski | |
Kathleen P. Pepski | |
Vice President, Chief Financial Officer, and Treasurer |
/s/ Patrick H. Hawkins |
Patrick H. Hawkins |
Chief Executive Officer and President |
July 29, 2015 |
/s/ Kathleen P. Pepski |
Kathleen P. Pepski |
Vice President, Chief Financial Officer, and Treasurer |
July 29, 2015 |
Share Repurchase Program (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 28, 2015 |
Jun. 29, 2014 |
Mar. 29, 2015 |
May. 29, 2014 |
|
Share Repurchase Program [Abstract] | ||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 300,000 | |||
Stock Repurchased During Period, Shares | 13,850 | 39,170 | 59,602 | |
Stock Repurchased During Period, Value | $ 0.6 | $ 1.4 | $ 2.2 |
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Inventories (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jun. 28, 2015 |
Jun. 29, 2014 |
Mar. 29, 2015 |
|
Inventory Disclosure [Abstract] | |||
Finished goods (LIFO basis) | $ 41,400 | $ 39,000 | |
Increase (decrease) in LIFO reserve | $ 0 | $ 490 |
Segment Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Information |
|
Share Based Compensation (Details) - 3 months ended Jun. 28, 2015 - Performance-Based Restricted Stock [Member] - $ / shares |
Total |
---|---|
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested at beginning of period (Shares) | 53,580 |
Granted (Shares) | 37,309 |
Vested (Shares) | (28,648) |
Unvested at end of period (Shares) | 62,241 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Beginning Balance, Weighted average grant date fair value (usd per share) | $ 37.55 |
Granted, Weighted average grant date fair value (usd per share) | 40.89 |
Vested, Weighted average grant date fair value (usd per share) | 40.25 |
Ending Balance, Weighted average grant date fair value (usd per share) | $ 38.31 |
Business Combinations |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | Business Combinations Acquisition of The Dumont Company, Inc.: In the third quarter of fiscal 2015, we acquired substantially all of the assets of The Dumont Company, Inc. (“Dumont”) under the terms of an asset purchase agreement with Dumont and its shareholders. We paid $10.1 million in cash including a working capital adjustment in the third quarter of fiscal 2015, using available cash on hand to fund the acquisition. Dumont was a water treatment chemical distribution company with revenues of approximately $14 million in calendar year 2013. Through this acquisition we added seven operating locations across Florida. The results of operations since the acquisition date, and the assets, including the goodwill associated with this acquisition, are included in our Water Treatment segment. Costs associated with this transaction were not material to our company and were expensed as incurred. The acquisition has been accounted for under the acquisition method of accounting, under which the total purchase price is allocated to the net tangible and intangible assets of Dumont acquired in connection with the acquisition based on their estimated fair values. We estimated the fair values of the assets acquired and liabilities assumed using a discounted cash flow analysis (income approach). The following table summarizes the preliminary allocation of the purchase price to the fair values assigned to the assets acquired and liabilities assumed at the date of the Dumont acquisition:
The goodwill recognized as a result of this acquisition is primarily attributable to strategic and synergistic benefits, as well as the assembled workforce. Such goodwill is expected to be deductible for tax purposes. The preliminary allocation of the purchase price to the assets acquired and liabilities assumed resulted in the recognition of the following intangible assets:
|
Earnings per Share (Details Textual) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Jun. 28, 2015 |
Jun. 29, 2014 |
|
Earnings Per Share [Abstract] | ||
Shares or stock options excluded from the calculation of diluted EPS | 0 | 0 |
Cash and Cash Equivalents and Investments (Details Textual) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 28, 2015 |
Mar. 29, 2015 |
|
Cash and Cash Equivalents [Line Items] | ||
Available-for-sale Securities, Current | $ 14.0 | $ 14.5 |
Available-for-sale Securities, Noncurrent | $ 16.1 | $ 17.2 |
Fair Value, Inputs, Level 2 [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Maturities period of certificates of deposit minimum | 3 months | |
Maturities period of certificates of deposit maximum | 3 years |
Earnings per Share |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share Basic earnings per share (“EPS”) are computed by dividing net earnings by the weighted-average number of common shares outstanding. Diluted EPS includes the incremental shares assumed to be issued upon the exercise of stock options and the incremental shares assumed to be issued as performance units and restricted stock. Basic and diluted EPS were calculated using the following:
For the three months ended June 28, 2015 and June 29, 2014, there were no shares or stock options excluded from the calculation of weighted-average common shares for diluted EPS. |
Inventories (Details) - USD ($) $ in Thousands |
Jun. 28, 2015 |
Mar. 29, 2015 |
---|---|---|
Summary of Inventories | ||
Inventory (FIFO basis) | $ 44,645 | $ 42,567 |
LIFO reserve | (5,561) | (5,539) |
Net inventory | $ 39,084 | $ 37,028 |
Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 28, 2015 |
Jun. 29, 2014 |
|
Segment Reporting Information [Line Items] | ||
Sales | $ 101,496 | $ 98,036 |
Gross profit | 20,735 | 18,496 |
Selling, general and administrative expenses | 9,891 | 8,875 |
Operating income | 10,844 | 9,621 |
Industrial [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 67,588 | 67,546 |
Gross profit | 10,714 | 9,361 |
Selling, general and administrative expenses | 5,199 | 5,099 |
Operating income | 5,515 | 4,262 |
Water Treatment [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 33,908 | 30,490 |
Gross profit | 10,021 | 9,135 |
Selling, general and administrative expenses | 4,692 | 3,776 |
Operating income | $ 5,329 | $ 5,359 |
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands |
Jun. 28, 2015 |
Mar. 29, 2015 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 11,750 | $ 11,750 |
Goodwill and Intangible Assets (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 28, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of intangible assets and goodwill | A summary of our intangible assets as of June 28, 2015 and March 29, 2015 is as follows:
|
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
Jun. 28, 2015 |
Mar. 29, 2015 |
---|---|---|
Unrealized gain (loss) on: | ||
Available-for-sale investments | $ 30 | $ (25) |
Post-retirement plan liability | (7) | (7) |
Accumulated other comprehensive income (loss) | $ 23 | $ (32) |
Share Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance-Based Restricted Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of performance-based restricted stock units | The following table represents the restricted stock activity for the three months ended June 28, 2015:
|
Basis of Presentation |
3 Months Ended |
---|---|
Jun. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, accordingly, do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements and footnotes included in our Annual Report on Form 10-K for the fiscal year ended March 29, 2015, previously filed with the Securities and Exchange Commission (“SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to present fairly our financial position and the results of our operations and cash flows for the periods presented. All adjustments made to the interim condensed consolidated financial statements were of a normal recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation. The accounting policies we follow are set forth in “Item 8. Financial Statements and Supplementary Data, Note 1 – Nature of Business and Significant Accounting Policies” to our consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended March 29, 2015, filed with the SEC on May 28, 2015. There has been no significant change in our accounting policies since the end of fiscal 2015. The results of operations for the three months ended June 28, 2015 are not necessarily indicative of the results that may be expected for the full year. References to fiscal 2015 refer to the fiscal year ended March 29, 2015 and references to fiscal 2016 refer to the fiscal year ending April 3, 2016. As compared to our normal 52-week fiscal years, fiscal 2016 will be a 53-week year, with the extra week to be recorded in our fourth quarter’s results of operations. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued new accounting requirements for recognition of revenue from contracts with customers. The requirements of the new standard will be effective for annual reporting periods beginning after December 15, 2017 (our fiscal year ending March 31, 2019), and interim periods within those annual periods. We are currently evaluating the impact of this accounting pronouncement on our results of operations and financial position. |
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands |
Jun. 28, 2015 |
Mar. 29, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, trade receivables | $ 441 | $ 445 |
Intangible assets accumulated amortization | $ 4,242 | $ 3,933 |
Shares authorized | 30,000,000 | 30,000,000 |
Common stock, par value (usd per share) | $ 0.05 | $ 0.05 |
Common Stock, Shares, Issued | 10,569,764 | 10,564,949 |
Common Stock, Shares, Outstanding | 10,569,764 | 10,564,949 |
Segment Information |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We have two reportable segments: Industrial and Water Treatment. The accounting policies of the segments are the same as those described in the summary of significant accounting policies as disclosed in our fiscal 2015 Annual Report on Form 10-K. Product costs and expenses for each segment are based on actual costs incurred along with cost allocation of shared and centralized functions. We evaluate performance based on profit or loss from operations before income taxes not including nonrecurring gains and losses. Reportable segments are defined primarily by product and type of customer. Segments are responsible for the sales, marketing and development of their products and services. The segments do not have separate accounting, administration, customer service or purchasing functions. There are no intersegment sales and no operating segments have been aggregated. Given the nature of our business, it is not practical to disclose revenues from external customers for each product or each group of similar products. No single customer’s revenues amounted to 10% or more of our total revenue. Sales outside of the United States are immaterial and all assets are located within the United States.
|
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Jun. 28, 2015 |
Jul. 24, 2015 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HAWKINS INC | |
Entity Central Index Key | 0000046250 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 28, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --04-03 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,654,509 |
Earnings per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of basic and diluted EPS | Basic earnings per share (“EPS”) are computed by dividing net earnings by the weighted-average number of common shares outstanding. Diluted EPS includes the incremental shares assumed to be issued upon the exercise of stock options and the incremental shares assumed to be issued as performance units and restricted stock. Basic and diluted EPS were calculated using the following:
|
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