-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, EjxgSgCsE0Rg8HQZATeprO6TtnZP6BrrsWxfEuvPfWvfmAi0cC6tOI1UsWPIEBXm BjluXrmrdccJfS3u+d1slg== 0000055772-94-000006.txt : 19941103 0000055772-94-000006.hdr.sgml : 19941103 ACCESSION NUMBER: 0000055772-94-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941027 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: KIMBALL INTERNATIONAL INC CENTRAL INDEX KEY: 0000055772 STANDARD INDUSTRIAL CLASSIFICATION: 2520 IRS NUMBER: 350514506 STATE OF INCORPORATION: IN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-03279 FILM NUMBER: 94555411 BUSINESS ADDRESS: STREET 1: 1600 ROYAL ST CITY: JASPER STATE: IN ZIP: 47549 BUSINESS PHONE: 8124821600 MAIL ADDRESS: STREET 2: 1600 ROYAL STREET CITY: JASPER STATE: IN ZIP: 47549 FORMER COMPANY: FORMER CONFORMED NAME: JASPER CORP DATE OF NAME CHANGE: 19740826 10-Q 1 1ST QTR FORM 10-Q FOR KIMBALL INTERNATIONAL, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1994 __ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-3279 KIMBALL INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Indiana 35-0514506 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1600 Royal Street, Jasper, Indiana 47549-1001 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (812) 482-1600 Not Applicable Former name, former address and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has filed all reports required 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___ The number of shares outstanding of the Registrant's common stock as of October 21, 1994 were: Class A Common Stock - 7,338,123 shares Class B Common Stock - 13,817,016 shares - 1 - KIMBALL INTERNATIONAL, INC. FORM 10-Q INDEX
PAGE NO. PART I FINANCIAL INFORMATION: Item 1. Financial Statements Condensed Consolidated Statement of Financial Condition - September 30, 1994 (Unaudited), June 30, 1994 and September 30, 1993 (Unaudited) . . . . . . . . . . . . . 3 Consolidated Statement of Income (Unaudited) - Three Months Ended September 30, 1994 and 1993 . . . . . . . 4 Consolidated Statement of Cash Flows (Unaudited) - Three Months Ended September 30, 1994 and 1993 . . . . . . . 5 Notes To Consolidated Financial Statements (Unaudited) . . . . 6 Item 2. Management's Discussion and Analysis Of Financial Condition and Results of Operations. . . . . . . . . 7-9 PART II OTHER INFORMATION: Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . 10 - Exhibit #11 - Computation of Earnings Per Share (Part I Exhibit) . . . . . . . . . . . . . . . . . . . . . 11 - Exhibit #15 - Letter re: Unaudited Interim Financial Information (Part I Exhibit). . . . . . . . . . . . . . . . . . . . . . 12 - Exhibit #27 - Financial Data Schedule (Part I Exhibit). . . . . . . . . . . . . . . . . . . . . . 13 - Exhibit #99 - Report of Independent Public Accountants- Limited Review of Interim Financial Information (Part II Exhibit) . . . . . . . . . . . . . . . . . . . . . 14
- 2 - PART I. FINANCIAL INFORMATION KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (dollars in thousands)
(unaudited) (unaudited) September 30, June 30, September 30, ASSETS 1994 1994 1993 CURRENT ASSETS: Cash and cash equivalents $ 7,222 $ 15,452 $ 2,769 Short-term investments at cost, estimated market value of $79,145, $76,479 and $88,800 79,389 76,494 88,552 Accounts and notes receivable, less allow- ance for possible losses of $3,788, $4,036 and $5,142 98,479 96,118 91,869 Inventories 87,033 81,083 93,046 Other 19,908 19,091 17,811 Total Current Assets 292,031 288,238 294,047 PROPERTY AND EQUIPMENT - at cost, less accumulated depreciation of $208,536, $205,027 and $190,340 172,215 171,243 154,960 OTHER ASSETS 11,909 11,932 11,166 Total Assets $476,155 $471,413 $460,173 LIABILITIES AND SHARE OWNERS' EQUITY CURRENT LIABILITIES: Loans payable to banks $ 1,440 $ 1,619 $ 2,822 Current maturities of long-term debt 1,210 1,196 1,850 Accounts payable 37,971 33,133 37,029 Dividends payable 4,424 4,426 4,426 Accrued expenses 57,223 61,790 57,606 Total Current Liabilities 102,268 102,164 103,733 OTHER LIABILITIES: Long-term debt, less current maturities 1,095 811 1,845 Deferred income taxes and other 17,675 17,486 16,457 Total Other Liabilities 18,770 18,297 18,302 SHARE OWNERS' EQUITY: Common stock 6,723 6,723 6,723 Additional paid-in capital 812 791 791 Foreign currency translation adjustment 1,193 836 585 Retained earnings 354,303 350,304 337,693 363,031 358,654 345,792 Less: Treasury stock, at cost (7,914) (7,702) (7,654) Total Share Owners' Equity 355,117 350,952 338,138 Total Liabilities and Share Owners' Equity $476,155 $471,413 $460,173 See Notes to Consolidated Financial Statements
- 3 - KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (dollars in thousands except per share amounts)
(unaudited) Three Months Ended September 30, 1994 1993 Net Sales $209,411 $197,882 Cost of Sales 150,553 140,747 Gross Profit 58,858 57,135 Selling, Administrative and General Expenses 45,015 42,496 Operating Income 13,843 14,639 Other Income (Expense): Interest Expense (45) (141) Interest Income 1,076 583 Other - net (359) 888 672 1,330 Income Before Taxes on Income 14,515 15,969 Taxes on Income 6,092 5,689 Net Income $ 8,423 $ 10,280 Earnings Per Share of Common Stock: Net Income: Class A Common Stock $.40 $.48 Class B Common Stock $.40 $.48 Dividends Per Share of Common Stock: Class A Common Stock $.20 3/4 $.20 3/4 Class B Common Stock $.21 $.21 Average total number of shares outstanding Class A and B Common Stock 21,157,497 21,167,955 See Notes to Consolidated Financial Statements
- 4- KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (dollars in thousands)
(unaudited) Three Months Ended September 30, 1994 1993 Cash Flows From Operating Activities: Net income $ 8,423 $10,280 Non-cash charges (credits) to net income: Depreciation and amortization 7,560 7,005 Gain on sales of assets (7) (249) Deferred income tax provision 12 (1,216) Other deferred charges 621 --- Increase in current assets: Accounts and notes receivable (2,361) (4,246) Inventories (5,950) (8,380) Other current assets (1,015) (218) Increase (Decrease) in current liabilities: Accounts payable 4,838 (4,689) Accrued expenses (5,040) 4,330 Net Cash Provided By Operating Activities 7,081 2,617 Cash Flows From Investment Activities: Capital Expenditures (7,609) (9,267) Proceeds from sales of assets 216 277 Increase in other assets (355) (3,262) Purchases of short-term investments (43,842) (2,415) Maturities of short-term investments 40,947 16,460 Net Cash (Used For) Provided by Investment Activities (10,643) 1,793 Cash Flows From Financing Activities: Decrease in short-term borrowings (179) (657) Decrease in long-term debt (73) (124) Dividends paid (4,426) (4,428) Acquisition of Treasury Stock (245) (291) Other - net 231 (750) Net Cash Used For Financing Activities (4,692) (6,250) Effect of Exchange Rate Change on Cash and Cash Equivalents 24 (16) Net Decrease in Cash and Cash Equivalents (8,230) (1,856) Cash and Cash Equivalents-Beginning of Period 15,452 4,625 Cash and Cash Equivalents-End of Period $ 7,222 $ 2,769 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for: Income Taxes $ 1,788 $ 364 Interest $ 85 $ 116 Total Cash, Cash Equivalents and Short-Term Investments: Cash and cash equivalents $ 7,222 $ 2,769 Short-term investments 79,389 88,552 Totals $86,611 $91,321 See Notes to Consolidated Financial Statements
- 5 - KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (1) The interim financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. All significant intercompany transactions and balances have been eliminated. Management believes the financial statements include all adjustments of a normal, recurring nature necessary to present fairly the financial statements of the interim period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in the Company's latest annual report on Form 10-K. (2) Inventories consist of: (in thousands)
September 30, June 30, September 30, 1994 1994 1993 Raw Materials $41,597 $42,700 $48,240 Work-in-Process 14,225 14,603 19,381 Finished Goods 31,211 23,780 25,425 Total $87,033 $81,083 $93,046
For interim reporting, LIFO inventories are computed based on estimated year-end quantities and price levels. Changes in such estimates will be reflected in the interim financial statements in the period in which they occur. (3) Earnings per share are computed under the method prescribed in Accounting Principles Board Opinion No. 15 for computing earnings per share for two class common stock due to the dividend preference of Class B Common Stock. (4) The Company adopted FASB Statement No. 109, Accounting for Income Taxes, during the prior year's first quarter ended September 30, 1993. The impact of adopting the statement was $1,200,000 of income, or 5 cents per share and was included in Taxes on Income. See Management's Discussion and Analysis for additional discussion. (5) Arthur Andersen LLP, independent public accountants, performed a limited review of the consolidated financial statements for the three month period ended September 30, 1994, as indicated in the report on the limited review attached as an Exhibit. Since they did not perform an audit, they express no opinion on the financial statements referred to above. - 6 - KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW First quarter sales increased 6% when compared to the previous year's first quarter, as sales in each of the Company's three business segments (Furniture and Cabinets, Electronic Contract Assemblies, and Processed Wood Products and Other) exceeded the prior year. Net income for the quarter decreased 7% from the prior year's first quarter, after excluding the one-time impact of adopting FASB Statement No. 109, Accounting for Income Taxes, in the prior year. The decrease was attributed to increased operating losses on steel office furniture product lines within the Furniture and Cabinets segment. Had the steel furniture product losses attained break-even level, net income would have exceeded the prior year. Open order levels increased in all major product lines at quarter- end when compared to prior year levels. RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 1994 COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 1993 First quarter 1995 net sales increased 6% when compared to the prior year's first quarter net sales, as all business segments reported increased sales. Sales in the Furniture and Cabinets segment increased 2% when compared to the prior year's first quarter. Increases were experienced in certain office furniture product lines and original equipment manufacturer (OEM) product lines. The Company continued to experience volume increases in certain wood office furniture systems and casegoods product lines in response to strong customer demand for value-oriented products with flexible configurations. Sales in the metal furniture product line were below the prior year level, as shipment levels were negatively impacted by the relocation of the metal office furniture production facility during the quarter from Torrance, California to Post Falls, Idaho. Open order levels in the office furniture product line increased 28% over the prior year levels. The OEM cabinets and furniture product lines experienced volume increases in both wood and vinyl television and speaker cabinet sales. Other OEM wood product sales increased over the prior year's first quarter level as the Company's facility which produces domestic piano products continued to increase its production and sales of OEM products to utilize excess plant capacity. Open orders in OEM product lines increased 8% over prior year levels. Electronic Contract Assemblies segment sales increased 12% above the prior year first quarter as the result of volume increases in computer and automotive assemblies. Volume increases occurred in both existing product lines and new product lines which utilize the next generation of technology. This segment ended the quarter with open order levels up 24% above prior year levels. Included in this segment are sales to two customers which accounted for 19% of consolidated first quarter net sales. One of these customers accounted for 14% of consolidated first quarter net sales in fiscal year 1995 and 10% in 1994. Processed Wood Products and Other segment sales, including intersegment sales, increased 10% above the prior year's first quarter level, primarily the result of an increase in sales of lumber and dimension wood products and plastic components. The majority of the sales increase in the lumber and dimension product line was attributed to volume increases. Although sales prices were increased on lumber and dimension products in response to material price increases from suppliers, the full impact of the increased sales prices was delayed due to existing orders at previously established sales prices. Increased sales of plastic components were attributed to volume increases with both new and existing customers. - 7 - Consolidated cost of sales, as a percent of sales, increased by 0.8 percentage point when compared to the prior year's first quarter, as the Company's material costs, as a percent of sales, continued to trend upward. Major factors were increases in material cost prices from suppliers and a commitment to fixed price sales on certain contracts in a period of rising material costs. Labor costs, as a percent of sales, decreased as the labor force became more efficient, due in part to the Company's focus toward employee development and process re-engineering. Selling, Administrative and General Expenses increased as the Company incurred costs to support recent, and projected future, increases in sales and production volumes. Consolidated operating income, as a percent of sales, decreased 0.8 percentage point. Operating income within the Furniture and Cabinets segment was below the prior year, primarily the result of losses on the Company's steel office furniture product lines somewhat offset by increased operating income on OEM cabinets and furniture product lines and reduced operating losses in Europe. The Company continued to experience losses on its steel office furniture product lines as this production facility was relocated to a new facility during the quarter, as previously discussed. Start-up operations have taken longer than originally anticipated, causing the Company to project operating losses on these product lines into the second half of the fiscal year, approaching monthly break-even levels sometime late in the second half, at which time key learning inefficiencies associated with the new site are expected to be diminished. The OEM cabinets and furniture product line experienced growth in operating income through increased sales levels and labor efficiencies. Close scheduling with customers aided in steady plant utilization. The Electronic Contract Assemblies segment experienced an increase in its operating income level from the prior year's depressed level. Sales volume increases and lower start-up costs on new product line offerings in the current year's quarter were major improvements over the prior year's operating income level. Operating income in the Processed Wood Products and Other segment remained flat as increased volumes in the processed wood products line were offset by material price increases from suppliers and inefficiencies associated with smaller quantity production runs. Material price increases were unable to be immediately passed along to customers due to existing open orders at pre-established sales prices. Operating income on sales of plastic components increased as the result of an increase in sales volume. Interest income was above the prior year's first quarter level as the Company maintained larger average balances of fixed income investments and as the result of higher interest rates on those investments. Other-net decreased in the current year when compared to the prior year, as the result of several miscellaneous items, none of which are significant. The 1995 first quarter effective tax rate decreased 1.1 percentage point from the first quarter of 1994, excluding the effects of adopting FASB Statement No. 109, Accounting for Income Taxes, in the prior year. Reduction in foreign operating losses, for which there are no immediate tax benefits, was the primary cause for the decrease in the effective tax rate. The adoption of FASB Statement No. 109 lowered the prior year's first quarter Taxes on Income by $1.2 million and lowered the effective tax rate by 7.5 percentage points. Net income for the first quarter of fiscal year 1995 was $8,423,000 or 40 cents per share, down 7% from last year's $9,080,000 or 43 cents per share excluding the adoption of FASB Statement No. 109. The one time impact of adopting FASB Statement No. 109 increased the prior year's first quarter net income by $1,200,000, or 5 cents per Class B share, to $10,280,000. - 8 - LIQUIDITY AND CAPITAL RESOURCES Cash, Cash Equivalents and Short-Term Investments totaled $86.6 million at September 30, 1994 as compared to $91.9 million at June 30, 1994 and $91.3 million one year ago. Working capital and the current ratio were a strong $189.8 million and 2.9 to 1, respectively, at September 30, 1994. The Company continued to generate positive cash flows from operating activities, which totaled $7.1 million in the first quarter. The Company used cash flow generated from operating activities and other available cash to internally fund $8.0 million of capital investments for the future, including investments in information technology. The Company used an additional $4.7 million of cash to fund financing activities, primarily the payment of dividends. Cash flow, excluding the effect of purchases and maturities of short-term investments, totaled a negative $5.3 million for the first quarter as compared to a negative $15.9 million in the previous year. Due to the Company's strong financial position, it is believed the Company has a substantial amount of unused short-term and long-term debt capacity that could be utilized if necessary. The Company anticipates to maintain a strong liquidity position throughout fiscal year 1995. - 9 - PART II. OTHER INFORMATION Item 6. - Exhibits and Reports on Form 8-K (a) Exhibits (numbered in accordance with Item 601 of Regulation S-K) (11) Computation of earnings per share (27) Financial Data Schedule (99) Report of Independent Public Accountants - Limited Review of Interim Financial Information (b) Reports on Form 8-K No reports on Form 8-K have been filed during the three months ended September 30, 1994. 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. KIMBALL INTERNATIONAL, INC. Douglas A. Habig DOUGLAS A. HABIG (President and Chief Executive Officer) Gary P. Critser GARY P. CRITSER (Senior Exec. Vice President, Chief Accounting Officer and Secretary) Date: October 26, 1994 - 10 - EX-11 2 EXHIBIT 11 TO KIMBALL'S 10-Q KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE THREE MONTHS ENDED SEPTEMBER 30, 1994 (UNAUDITED) Net income, three months ended September 30, 1994 . . . . . . . . $8,423,000 Dividends declared: Class A Common -- $.2075 per share . . . . . . . . . . . . . .$(1,523,000) Class B Common -- $.21 per share . . . . . . . . . . . . . . . (2,901,000) (4,424,000) Undistributed earnings . . . . . . . . . . . . . . . . . . . . . $3,999,000 Undistributed earnings divided by 21,157,497 average number of shares outstanding . . . . . . . . . . . . . . . . . . . . . $.1890 Class A Class B Undistributed earnings per share . . . . . . . . . . . . . . . . $.1890 $.1890 Assumed distribution of earnings . . . . . . . . . . . . . . . . .2075 .2100 Earnings per share . . . . . . . . . . . . . . . . . . . . . . $.3965 $.3990 Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.40 $.40
COMPUTATION OF EARNINGS PER SHARE THREE MONTHS ENDED SEPTEMBER 30, 1993 (UNAUDITED) Net income, three months ended September 30, 1993 . . . . . . . . $10,280,000 Dividends declared: Class A Common -- $.2075 per share . . . . . . . . . . . . . .$(1,529,000) Class B Common -- $.21 per share . . . . . . . . . . . . . . . (2,897,000) (4,426,000) Undistributed earnings . . . . . . . . . . . . . . . . . . . . . $ 5,854,000 Undistributed earnings divided by 21,167,955 average number of shares outstanding . . . . . . . . . . . . . . . . . . . . . $.2766 Class A Class B Undistributed earnings per share . . . . . . . . . . . . . . . . $.2766 $.2766 Assumed distribution of earnings . . . . . . . . . . . . . . . . .2075 .2100 Earnings per share . . . . . . . . . . . . . . . . . . . . . . $.4841 $.4866 Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.48 $.48 Part I-Exhibit(11)
- 11 - EX-15 3 EXHIBIT 15 TO KIMBALL'S 10-Q To Kimball International, Inc.: We are aware that Kimball International, Inc. has incorporated by reference in its Registration Statement No. 33-20125 its Form 10-Q for the quarter ended September 30, 1994, which includes our report dated October 11, 1994, covering the unaudited interim financial information contained therein. Pursuant to Regulation C of the Securities Act of 1933, that report is not considered a part of the registration statement prepared or certified by our firm or a report prepared or certified by our firm within the meaning of Sections 7 and 11 of the Act. Very truly yours. Arthur Andersen LLP ARTHUR ANDERSEN LLP October 11, 1994 Indianapolis, Indiana. Part I - Exhibit (15) - 12 - EX-27 4 FINANCIAL DATA SCHEDULE
5 This schedule contains first quarter summary financial information extracted from Kimball International, Inc. 1995 first quarter Form 10-Q and is qualified in its entirety by reference to such Form 10-Q filing. 1,000 QTR-1 JUN-30-1995 SEP-30-1994 7,222 79,389 102,267 3,788 87,033 292,031 380,751 208,536 476,155 102,268 1,095 6,723 0 0 348,394 476,155 209,411 209,411 150,553 150,553 0 (31) 45 14,515 6,092 8,423 0 0 0 8,423 .40 .40
EX-99 5 EXHIBIT 99 TO KIMBALL'S 10-Q REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To Kimball International, Inc.: We have reviewed the condensed consolidated statement of financial condition of Kimball International, Inc. (an Indiana corporation) and subsidiaries as of September 30, 1994, and the related consolidated statements of income and cash flows for the three-month period then ended. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the financial statements referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated statement of financial condition as of June 30, 1994, and the related consolidated statements of income, cash flows and shareowners' equity for the year then ended (not presented separately herein), and in our report dated August 3, 1994, we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying condensed consolidated statement of financial condition as of June 30, 1994, is fairly stated, in all material respects, in relation to the consolidated statement of financial condition from which it has been derived. Arthur Andersen LLP ARTHUR ANDERSEN LLP Indianapolis, Indiana, October 11, 1994. Part II - Exhibit (99) - 14 - -----END PRIVACY-ENHANCED MESSAGE-----