8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): December 16, 2003

COLE NATIONAL CORPORATION
(Exact Name of Registrant as Specified in Charter)

DELAWARE
(State or Other Jurisdiction
of Incorporation) 1-12814
(Commission
File Number) 34-1453189
(IRS Employer
Identification No.)

1925 ENTERPRISE PARKWAY TWINSBURG, OHIO (Address of Principal Executive Offices)	44087 (Zip Code)
Registrant’s telephone number, including area code:	(330) 486-3100

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

     (c)  Exhibits. The following exhibit is furnished with this Form 8-K:

99.1 Press release of Cole National Corporation, dated December 16, 2003.

Item 12. Results of Operations and Financial Condition

     On December 16, 2003, Cole National Corporation (the “Company”) issued a press release, announcing financial results for the third fiscal quarter of 2003. A copy of the press release is being furnished as Exhibit 99.1 hereto and is incorporated herein by reference. Pursuant to the rules and regulations of the Securities and Exchange Commission, such exhibit and the information set forth therein and herein shall be deemed “furnished” and not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

2

SIGNATURE

     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 hereunto duly authorized.

		Cole National Corporation
		By:	/s/ Ann M. Holt Name:   Ann M. Holt Title:     Sr. Vice President and Corporate Controller
Date:	December 16, 2003

3

EXHIBIT INDEX

Exhibit
Number	Description
99.1	Press release of Cole National Corporation, dated December 16, 2003.

4 EX-99.1 3 l04624exv99w1.htm PRESS RELEASE

Exhibit 99.1

COLE NATIONAL ANNOUNCES THIRD QUARTER 2003 RESULTS

     Cleveland, Ohio, December 16, 2003 — Cole National Corporation (NYSE: CNJ), a leading retailer of optical services and personalized gifts with over 2,900 locations throughout North America and the Caribbean and one of the nation’s largest providers of managed vision care benefits, today announced results for the third quarter ended November 1, 2003. The Company filed its Form 10-Q for the quarter on December 15, 2003.

	Financial and Operating Highlights
•	Revenue rose to $296.5 million from $275.5 million in last year’s third quarter. The Company reported a net loss of $1.1 million, or $0.07 per diluted share, compared to a net loss of $1.9 million, or $0.12 per share, for the same period in 2002.
•	The third quarter’s pre-tax results include $1.5 million in professional fees relating to the evaluation of the Company’s strategic alternatives and $0.8 million in professional fees related to the restatement and resulting SEC investigation. Included in last year’s pre-tax results for the third quarter was $1.0 million related to severance and consolidating the corporate office.
•	Overall, same store sales in the Company’s vision segment increased 5.4%. Same store sales for every brand in the Company’s vision segment rose, led by an increase of 6.7% for Cole Licensed Brands.
•	Same store sales for Things Remembered rose 4.4%.

Larry Pollock, President and CEO, commented, “Cole National continued to generate strong same store sales company-wide during the third quarter and to gain market share in our core optical business. The Company’s profitability was negatively impacted during the quarter by legal and professional fees relating to the evaluation of the Company’s strategic alternatives, the SEC investigation resulting from the previous restatement of our financial statements and the California lawsuit.

“Within Cole Licensed Brands, same store sales rose 4.3% at Sears Optical, 16.2% at BJ’s Optical, and 22.4% at Target Optical. Overall, same store sales at Cole Licensed Brands increased 6.7%. Our updated merchandise assortment, combined with our key item merchandising strategy and our sales model, which emphasizes the features and benefits of premium products such as drill mount rimless frames and flexible metal frames, continued to increase the average spectacle transaction price and drive sales. Our training of the Company’s sales associates to present to customers the features and benefits of the premium products, as well as the different lens treatments, also had a positive impact on average spectacle transaction and contributed to the increase in same store sales.

     “At Pearle Vision, same store sales increased 3.9% at U.S. company-owned stores, 2.6% at U.S. franchised stores, and 3.1% overall. At our Pearle company-owned stores, average spectacle transaction rose 7.0% as a result of our increased focus on premium products. More than 11% of all sales at the company-owned stores were charged to the new Pearle Vision Preferred Card. The card gives us the opportunity to market directly to cardholders, enabling us to provide them with special promotions for themselves and their families.

     “Managed care revenue increased due to the number of capitated plans sold to employers, health plans and associations. Cost per claim increased in the quarter primarily as a result of incremental system maintenance cost related to the Health Insurance Portability and Accountability Act (HIPAA) and additional amortization of the Patriot claims management system. For the first nine months of the year, cost per claim was flat with the same period last year. Additional portions of the Patriot system were placed in service during the quarter, and it is now processing claims for all capitated plans. The system is functioning well, but will require further development to meet the needs of our fee for service plans. Future development will occur throughout 2004 and, in the meantime, we will continue to operate our existing system to serve fee for service plans.”

     Mr. Pollock continued, “The new merchandise assortment, marketing efforts, and greater sales effort by store associates in Things Remembered produced a same store sales increase of 4.4% in the third quarter, continuing the positive trend established at the beginning of the year. The average transaction increased 6.0% in the third quarter, although the gross margin rate decreased due to lower levels of personalization. Things Remembered’s direct business, which includes catalogs and the Internet, continued to produce year-over-year increases in sales and earnings.

     “In preparation for the important holiday season, we began implementing weekend promotional events in mid-November and will continue running them through Christmas and emphasizing our best gifts. We also expect Things Remembered’s loyalty program, which now includes 731,600 members, to make a positive contribution to sales. In our direct business, we are expanding our promotional email efforts to drive transactions to our web site.”

     Strategic Alternatives

     Cole National Corporation announced on October 8 that its Board of Directors had formed a Special Committee of independent directors to evaluate the Company’s strategic alternatives. The Special Committee’s evaluation of strategic alternatives, including a possible merger or sale of the Company, a corporate restructuring or other alternatives, continues. There can be no assurance, however, that any transaction will be approved, or if approved, the amount or form of the consideration proposed to be payable to the Company or its shareholders, or whether a transaction will be consummated.

     Extension of AARP Relationship

     Subsequent to the third quarter, the Company announced that it had renewed its relationship with AARP to provide a vision discount program covering approximately 35 million AARP members, for an additional two years. Mr. Pollock commented, “We are very pleased to continue our relationship with AARP and to provide its members access to quality vision care through our extensive provider network of doctors and optical locations.”

     Financial Results for Third Quarter and Nine Months

     Revenues for the third quarter of 2003 rose 7.6% to $296.5 million from $275.5 million as a result of the 5.2% same store sales increase in the Company’s vision and gift businesses and increased revenue from managed vision care programs. Same-store sale results were driven by increases in the average transaction size, partially offset by a decrease in the number of transactions.

     The Company’s overall gross margin rate in the third quarter was 63.2% compared to 64.3% in the same period last year. At Cole Vision, the gross margin rate declined by 1.3 percentage points due to many factors, including a shift in revenue mix at Cole Managed Vision toward more funded programs, higher utilization within the funded programs, sales of higher cost premium lenses and frames, lower contact lens gross margin and higher obsolescence costs at Cole Licensed Brands. The decrease in gross margin rate was somewhat offset by improved gross margin rate at Pearle Vision due to lower inventory shrink and manufacturing costs. Certain costs for lab equipment, workers compensation and property insurance expenses were reclassified from operating expenses to cost of revenue in both fiscal years to more accurately reflect the gross margin, primarily for the Company’s vision segment. At Things Remembered, the gross margin rate decreased 50 basis points, primarily due to reduced sales from gift personalization.

     Operating expenses as a percent of sales decreased to 62.8% from 64.5% in last year’s third quarter, primarily as a result of same store sale increases in Cole Vision and Things Remembered. Total expenses increased to $186.2 million from $177.7 million last year, and were impacted by legal and professional fees related to the Special Committee established by the Board of Directors to evaluate strategic alternatives, as well as by professional fees related to the on-going SEC investigation.

     Also contributing to the increase in expenses were higher advertising expense and claims processing costs in the Vision segment. At Things Remembered, higher rent and occupancy expense was almost completely offset by lower store payroll, legal fees and travel expenses.

     Revenues for the first nine months of fiscal 2003 increased to $892.4 million from $853.3 million in the same period of fiscal 2002 as a result of increases in same store sales and increases in revenues from managed vision care programs. The total same store sales increase in the vision segment was 3.6%. Things Remembered’s same store sales increased 4.7% in the first nine months of fiscal 2003. The overall gross margin rate was 62.9% compared to 64.5% in the same period of fiscal 2002.

     For the first nine months of fiscal 2003, the Company reported a net loss of $13.0 million, or $0.79 per diluted share compared to a net loss of $6.7 million, or $0.42 per diluted share, for the same period in fiscal 2002. The results for fiscal 2003 include expenses related to previously announced management changes, the restatement and reaudit of the Company’s financial statements, a $2.7 million settlement charge for a shareholder class action suit, and legal and professional fees related to the company’s evaluation of its strategic alternatives. The results for the first nine months of fiscal 2002 include expenses of $11.1 million related to the early extinguishment of debt.

     The Company recorded a tax benefit based on its estimated annual effective rate of 26%. The quarterly tax rate reflects the cumulative impact of changing the estimated annual effective rate from 12% in the first six months of 2003 to 26%. Additionally, the effective tax rate estimated for fiscal

2003 is lower than the effective tax rate for fiscal 2002 and reflects fiscal 2003’s expected full year results and the impact of certain nondeductible expenses.

     Non-GAAP Financial Measure

     As a retailer, the Company believes that a measure of same store sales performance is important for understanding its operations. Same store sales growth is a non-GAAP financial measure of performance at stores open at least 12 months, which includes deferred warranty sales on a cash basis and undelivered customer orders, and does not reflect provisions for returns, remakes, and certain other items. Adjustments to the cash basis sales information accumulated at the store level are made for these items on an aggregate basis. This measure is consistent with the measures previously used in the Company’s reports. A reconciliation of same store sales to revenue is set forth in Schedule II.

     Outlook

     Same store sales in the Company’s vision segment increased in the third quarter of fiscal 2003 compared to the same period last year and the Company continued to see that trend in November, with same store sales for the vision segment increasing in the mid-single digits. The performance within the segment was varied, with Cole Licensed Brands posting strong results and Pearle Vision’s company-owned stores experiencing low single-digit negative same store sales. Things Remembered’s November same store sales started off strongly and then flattened, increasing more than 3% overall. There is no assurance that these same store sales trends will continue for the remainder of the year.

     The Company expects that certain cost of revenues and operating expense trends experienced in the first nine months of fiscal 2003, such as higher product costs, utilization within funded programs and occupancy costs, are likely to continue through the balance of the year. The Company also expects it will continue to incur legal and professional expenses as a result of the SEC investigation, the previously disclosed California lawsuit and costs related to the evaluation of the Company’s strategic alternatives.

     The Company’s agreement with Target Corporation, under which the Company operates licensed optical departments in 265 Target Stores, expires on January 31, 2004 unless renewed. The Company estimates that losses at Target Optical reduced the operating income of its Cole Vision segment by $9.6 million in fiscal year 2002 and $6.9 million in the first nine months of fiscal 2003. The Company is in discussions with Target Corporation regarding the renewal of the agreement on modified terms. No assurances can be given as to the outcome of the discussions. It is estimated that exiting the Target Optical business would result in a pretax charge of approximately $22 million in the fourth quarter of fiscal year 2003, relating primarily to the writedown of fixed assets and inventory, and the payment of severance. Approximately three-quarters of this charge would be non-cash.

Conference Call Information

     Cole National’s management will conduct a conference call today at 10:00 a.m. Eastern Time to discuss the third-quarter 2003 results. Investors and interested parties may listen to the call via www.colenational.com and www.streetevents.com.

     About Cole National

     Cole National Corporation’s vision business, together with Pearle franchisees, has 2,197 locations in the U.S., Canada, Puerto Rico and the Virgin Islands and includes Cole Managed Vision, one of the largest managed vision care benefit providers with multiple provider panels and nearly 20,000 practitioners. Cole’s personalized gift business, Things Remembered, serves customers through 751 locations nationwide, catalogs, and the Internet at www.thingsremembered.com. Cole also has a 21% interest in Pearle Europe, which has 1,480 optical stores in Austria, Belgium, Denmark, Estonia, Finland, Germany, Italy, Kuwait, Norway, the Netherlands, Poland, Portugal, Russia and Sweden.

     Forward Looking Statement

     The Company’s expectations and beliefs concerning the future contained in this document and the Form 10-Q are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those forecasted due to a variety of factors that can adversely affect the Company’s operating results, liquidity and financial condition, such as risks associated with potential adverse consequences of the restatement of the Company’s financial statements, including those resulting from litigation or government investigations; restrictions or curtailment of the Company’s credit facility and other credit situations; costs and other effects associated with the California litigation; the Company’s evaluation of strategic alternatives; the expiration or renewal of the Company’s agreement with Target Corporation; the timing and achievement of improvements in the operations of the optical business; the results of Things Remembered, which is highly dependent on the fourth quarter holiday season; the nature and extent of disruptions of the economy from terrorist activities or major health concerns and from governmental and consumer responses to such situations; the actual utilization of Cole Managed Vision funded eyewear programs; the success of new store openings and the rate at which new stores achieve profitability; the Company’s ability to select, stock and price merchandise attractive to customers; success of systems development and integration; costs and other effects associated with litigation; competition in the optical industry; integration of acquired businesses; economic and weather factors affecting consumer spending; operating factors affecting customer satisfaction, including manufacturing quality of optical and engraved goods; the Company’s relationships with host stores and franchisees; the mix of goods sold, pricing and other competitive factors; and the seasonality of the Company’s business. The Company does not assume any obligation to update the forward looking statements in this press release.

Schedule I

Third Quarter and Nine Months
Results of Operations
(in thousands, except per share amounts)

		13 Weeks Ended						39 Weeks Ended
		November 1,			November 2,			November 1,			November 2,
		2003			2002			2003			2002
		Unaudited						Unaudited
Net revenue		$	296,507		$	275,501		$	892,415		$	853,332
Cost of revenues			109,229			98,294			331,336			302,783
Operating expenses			186,188			177,663			563,676			532,757
	Total costs and expenses		295,417			275,957			895,012			835,540
Operating income (loss)			1,090			(456	)		(2,597	)		17,792
Interest expense			6,433			6,501			19,148			20,385
Interest and other (income) expense, net			(1,304	)		(536	)		(4,186	)		(4,245	)
(Gain) loss on early extinguishment of debt			(15	)		—			(15	)		11,141
Income (loss) before income taxes			(4,024	)		(6,421	)		(17,544	)		(9,489	)
Income tax (benefit) provision			(2,939	)		(4,494	)		(4,561	)		(2,742	)
Net income (loss)		$	(1,085	)	$	(1,927	)	$	(12,983	)	$	(6,747	)
Earnings (loss) per common share
	Basic	$	(0.07	)	$	(0.12	)	$	(0.79	)	$	(0.42	)
	Diluted	$	(0.07	)	$	(0.12	)	$	(0.79	)	$	(0.42	)
Weighted average shares
	Basic		16,443			16,276			16,359			16,205
	Diluted		16,443			16,276			16,359			16,205

Financial Position
(in thousands)

			November 1,		November 2,		February 1,
			2003		2002		2003
			Unaudited				Audited
Assets
Current assets:
	Cash and cash equivalents		$	25,677	$	21,370	$	42,002
	Accounts and notes receivable, net			58,628		51,538		59,660
	Inventories			140,324		137,875		120,642
	Prepaid expenses and other current assets			53,104		53,780		55,601
		Total current assets		277,733		264,563		277,905
Property and equipment, net				122,021		123,092		121,008
Intangible and other non-current assets, net				245,947		242,989		245,435
		Total assets	$	645,701	$	630,644	$	644,348
Liabilities and Stockholders’ Equity
Current liabilities:
	Current portion of long-term debt		$	5,446	$	227	$	232
	Accounts payable			81,765		66,378		67,581
	Accrued liabilities and other			101,210		99,649		105,569
	Deferred revenue			41,055		37,754		38,014
		Total current liabilities		229,476		204,008		211,396
Long-term debt, net of current portion				281,475		286,254		286,553
Other long-term liabilities				36,204		24,228		41,587
Deferred revenue, long-term				12,855		11,927		11,559
Stockholders’ equity				85,691		104,227		93,253
		Total liabilities and stockholders’ equity	$	645,701	$	630,644	$	644,348

Certain prior year amounts in the statements above have been reclassified to conform with the current year’s presentation.

Schedule II

Reconciliation of Same-Store Sales to GAAP Basis Net Revenue
($ in thousands)

		13 Weeks
		Ended			39 Weeks Ended
		November 1,			November 1,
		2003			2003
Current year same-store sales		$	252,412		$	774,470
Prior year same-store sales			239,967			745,939
Percent change			5.2	%		3.8	%
Current year same-store sales		$	252,412		$	774,470
Adjustment for:
Sales at new and closed stores			3,281			12,388
Deferred revenue			(1,488	)		(4,337	)
Order vs. customer receipt			6,200			717
Returns, remakes and refunds			(140	)		(522	)
Other			235			534
	Store sales		260,500			783,250
Nonstore revenues			43,135			131,984
Intercompany elimination			(7,128	)		(22,819	)
GAAP Basis Net Revenue		$	296,507		$	892,415

8-K.PDF 4 l04624e8vkwpdf.pdf PDF COURTESY COPY begin 644 l04624e8vkwpdf.pdf M)5!$1BTQ+C(-)>+CS],-"C(R(#`@;V)J#3P\(`TO3&EN96%R:7IE9"`Q(`TO M3R`R-"`-+T@@6R`W,S0@,3@S(%T@#2],(#,P.#,W(`TO12`R,#8P,2`-+TX@ M-"`-+U0@,S`R-SD@#3X^(`UE;F1O8FH-("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("!XF4@,S@-+TEN9F\@,C$@,"!2(`TO M4F]O="`R,R`P(%(@#2]0')E9@TP#24E14]`@("`@#3(S(#`@;V)J M#3P\(`TO5'EP92`O0V%T86QO9R`-+U!A9V5S(#$P(#`@4B`-+TI4(#(P(#`@ M4B`-/CX@#65N9&]B:@TS-B`P(&]B:@T\/"`O4R`U-"`O1FEL=&5R("]&;&%T M941E8V]D92`O3&5N9W1H(#,W(#`@4B`^/B`-9%PQP&@H$@)@'BAD8BAAX&1T86#V$ M-=HX9;2W62WI\&TI8'C`P``08``E!PXAN9'-T'1'4W1A=&4@/#P@+T=3,2`S-2`P(%(@ M/CX@#3X^(`UE;F1O8FH-,C8@,"!O8FH-/#P@#2]4>7!E("]&;VYT(`TO4W5B M='EP92`O5'EP93$@#2]&:7)S=$-H87(@,S(@#2],87-T0VAA7!H96XO=2](+VYI;F4O62]F+TDO<&5R M:6]D+V@O4"]<#48O:2]D+TPO3B]Z97)O+TTO;B]O;F4O02]/+W1W;R]M+W@O M=&AR964O2R]P87)E;FQE9G0O;R]2+V9O=7(O12]3+W!A"]B+T,I#2]&;VYT1FEL93,@,S(@,"!2(`T^ M/B`-96YD;V)J#3(X(#`@;V)J#3P\("],96YG=&@@-#0R-"`^/B`-"DM-BXW*&,I+3$S+CDH:&$I+38N-RAN9RDM-BXW*&4I+3(U-RXX M*$$I+30N,BAC*3$P+C4H="DM,C0V+CDH;RDM-BXW*&8I+3(W,2XS*#$I,3"DM,"XU*&4I M,38N-RAC*2TW+C7!E("]&;VYT(`TO4W5B='EP92`O5'EP93$@#2]&:7)S=$-H87(@,S(@ M#2],87-T0VAA2]Z97)O+TTO>B]N+V]N92]!+T\O='=O+VTO<75O=&5R:6=H="]X M+W1H7`UR964O2R]P87)E;FQE9G0O;R]2+W`O12]3+W!A"]6+V)<#2]#*0TO1F]N=$9I M;&4S(#,Q(#`@4B`-/CX@#65N9&]B:@TS,2`P(&]B:@T\/"`O1FEL=&5R("]& M;&%T941E8V]D92`O3&5N9W1H(#4W,3(@+U-U8G1Y<&4@+U1Y<&4Q0R`^/B`- M9=ELY"=(ED78Z"9ZZIU%`46+_$A#`<&*-X#4 MWWH2(%00"$T""2(BB""$@.(!@AJ1GR((\B^UZ+4.I[U1J5:+H%:MUD-[=KQR MU7LW_;B?16[N.M/.SM#0T)]XA-3E/K MEL1HTE3I4^TW>1G&S\;Y.38\1_#NMKS\9N$18JE?BM7+)ZJ MOJ^KWU3U\U8$)VKBU8KUV3J].DVG6).>H-%F:+0JO3K14Z$(3DU5Q$PAZ!0Q M:IU:FR5T7U-5).L4*H5>JTI4IZFT.Q6:)$5D520^(@<8D89FR:T6HGLZNVQ^Q_:]]@_\1!XW#3 M<:%CJR,O"7-R9BV8..P,@?FKZV+7 M#V?-44AT?!@4(PPPZ5V0)_;0473]*SZ,<@ZV/B&X4QH#7TZ?P!BA9X%)N M;;G%J8?6?!'=EI?C!D$(-R'-`A95>JP*CN(DBOV`KX'`OP""`.>]@NKZ,\>ZVCYH3DO3:G>J M.W+JY9+`RBSK:@->`.<)Z!441HA0]C]6D]=%DMQFJ[09;WP.1YX34&[E&'`Q MHXKPP!)4B%R02PD4?'7=#!7@(F^V19$J9$!VR+$?Z2$2(OM!#XY@IP(#BI1+ M3'7618(9R8*)=JYPJDZD-%0/ROGOJ'UF%.%-YE(GATRF&EF'Z8,L^>1F*CBI M)+J$DYA&^881',8?$;P&YC![#I*1B<8#23*T3P2!$$H.?/QP_!4+MDNO>_LL MV8H\TKCZ(O+BR=;1<1G8-7EM4L8M7>XI1ZM1-)G'LY0DMY,?_TP*-^^J;]$W M8`D\8&Z8FXHZC>*K*37!6E89'^C)1:F'MLER](6:C8^+&F$I.'P#\\#MS3.J MXW+ZZ^&S'YZ]R/9E?(N8B&6I:%8"5U=,MM3UWQF7C71NV.2EW.J=+HB%G+57 M^6B#M*87"N_01CX52FQG`4D+T`&JUO$*![U,*]:?ST?D=LV1BHC1B#PLZK&JBIY8U/GX0Z9 M`&^5M$B'1L-&0',C=I1^!CO@&D,_`F_[=H81S\;'^PYW%QZ_P"9O#TI[?'SKP;Z[,^2:WEWF]8]L<[K,22!?O.\K8M>.M3 M*/R.N)S)0.516`@QL(.%``\@D1-R#4`8-<`9R[9KXT5,E:4 MX`Z7PRH"0?@7$+#H. M9L/WOQ1^NAXAVU^Z%#QNLL#F/GZ%`:^SAA/6#19F>WEN]X6H"!2T@1BVD!*Z8+,8NZ.^%FBZC10KD!!1-^`-%GSEFG<7< M+Z[-"V8GHZC0O%V^)<+\8XKN`.T)X+I?!@PN/RXW"P<_JO[F)!`L>*&0VN4< M:A?!%O2$>7ZZ*+]#3F=^DG,^Q8]%+'(L6!.=7='%\;6V=>;:$UQ5;5F]C#Y[ M\P^T+Y,AI?"# M!F,?!\3KC_`C:ES,\V^,G0`@&[ MM;*BB8/9/\=^\%_L,,HO;[>R6/CH[18JM-Q0*R5:Y:DB:B11)Z/.)(@+3I2H8,1M1`0#HHZ""`)" MTS0[0DO3=-,@('1#TPW(*HO0B"*(B,9MXHY;B+ADF9SHB1CT%N=U9N85.)GY M,:?J3YUSW[O?O?=[W_NJ,N^VGBSJ4J*'_T/63XA\UR<>$_]%%GD,RJ!.[&+Z MB@OO&TAHJQ+UJP\G>K#V'6AS0N)^_F^5`RNY<%68,C$WWA0G)!=6)K5Q5?"> M'GQ&&3.2>\*@3)Q'SD2GQJR)8$/"([`"!_(0A/ZS;[,275-;TY>\:=T2J>Y& M4G=.LND&"VO1$9-%0[M8NF@;/@7:2]_"D?:=3A>U,FQGY+J M.V@Y0,#/0O@M1<)2-8&7;$;+]`KK2U:.E2JK5I-YB$^QK_E]BEBB,4OS(I93\$Y]SN4\*0&Y2__9Y-`` ME.@.E`Q^363`DTBX$X2`"KL2;5M`'E?LB%4X!&9B)_`4FM[&LO>_A0A0@JQ_ M&;0XW'T/B"YFXD9@N!96B44?O MB]K4L):;-W#Z==^>B1`$'Y2!K/82Z?KNH:NS',KX2NI$0:+S]L#=_+HT_' MV8QLO5G7*VF#68DZ-*7)MKF093\YV4A!E'B^]FYQ\2G]%`GA,?'A,8=\\9%, MO`D>S+(8I1=VXG`!)7J(K^1&>SF*Q4OE1ZBK18>_@ND<1%)V3_LK>8)X$540 M$SCN2>HY4"M@<<7$YJ6\"KT[;FQ3#[0JOZR!W94-A M+\SNXLE-&<"DI22E*KAP;4V-`)O1!>W/^$.>?H8=MWKLB#^\K^Z(V6H1\M5& M(UMWK/1H;4?*LZ>:3W:S"\WM&65RS&*\BAJ%%SCF5U# M$5VPYDN8_]WK#8#P[Y?ZK(_.X#5PEE+KY+3=7^67Z)_D&(^R$W)C+OJD>!5SV& MV`&Z$?XQR.P^L'-_$.>YO!<^A*G7.GL[.D-7Y@ET.,S&5I=04"_AKF,$]-+55GN0<%J_SSR'^0UBBZU$-0M= MG\]C:DLM=Q(M6I_S'3LTW1J`EB?E8'X'9Y$8&IW:YU`]VWK$3V8JRWE M38]-F-T7H_YTY9+(;Q_P]#?.N[[A MBR\C!?JV9?YB;9**W7NIWDN!,X^!TL[`5Y=6*?LX&G^Q]A M)E<>ENVO+V?+6FUE.CZW27V8ZWW9`F]UI9E3RZ7_,9'K&9WW[0'P'J#[Q7@C MLR4_U4!4U1^U9L%8/'ZM7^B6X%$ZZM_0,6!DQ/K?1FP/1EDZ;M-2(_ M@])PCX4,=,K68JSASEIWKA*P'W)7JOW4)"(8C5M,$H\O/!L+[PU.O#_XR0`] M1,Q?JI%:D:,N(9X%T$']9J6OGGQ) M_)48>65Q:%.MU5I3'5,>%IP02N13&!PCV2/37N*1UQ."(;F2]4U%Z]\3'`_"Y]+X[ ME>Y\_(A9%:;9D47`1QE172<+CK4%1U5$__]A/>GBS;7KQF77XY"6I0:NWQ3L9YOW!(#+Q+)32T-[8,TEI9#!_9T19A3 M@1T9'"HD5^TR;(]9%.#J.)K$PS34D3`KK2]G?6%13A9[:1KNYQA<[C2`M'+43R69LS->:"`19/`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`O(Y&3O+Y7ZI&`D<;*-[>UI"=E9$F3S99>G2B^7[T^XB/O1!8EZ[W>AA7)Y@GX^#.?!3 MZ)2K?6]+3(6YE'!<"2O%^.X';R1(/V#_/!DR=!FKZ"9]17,ENP15O@4E!#^L M]P7H_MZ602?VOY4G1PP^W1`B%J/LY!R8LQZH?70XZ`C&T-?R9*_9W=B5#0RZ MDUPL.#4NIM7I"^.D'P?=KZB9V"'8=6[&[?`.MW/`PCUQR.GM=J5@U8);,*+$ MW![?(6U+@/'S"H>AK8FGE5IC68S(%J=C]A- M6&,UE@4JF!QSH9ZCAG8%2X]>.'06Z&,LO"HM$O&2\]M3DJ:L$8F.Q(^W)TA+ M@5'4.8@5:GW9\PQB9=`C+2!$=)\TH2>)@.R$R['W/`.L#'4^7(!OR9EDTI2T M!N)0'!BMM?+1X0+@;L<>:H1:"Z_A"WU&7+EF>7H:O>QD8[!W4!S]8H=WE\Y@ ML9A8B]%D,3,ZG=/3V3YV]B!'K8:JSD>PGT8V8N0X>02X@N';L8?:0'5_(ZW! M;B+>JV?/T=<^]%=7EO!Y^?LUNUU.FZV%M3E:;';&Y3)H5>K<]$\YR@1ZU2/8 M)S4(#Q8*2.F%*JL,1/=#WD8V"-)&+^0*B>@SFU3EAJ>M3X2?C#XEF>;``\4_ M4*$240HB!@UD>A#I"B) MA001*2M&^!"3B&QB#W&"Z"%#R`RR4_&N(E/1H0Q43E?>])GLLUTEJ%:J'E$F MJI4>06^G;ZL3U9]J2,TBS;%^0_K5]A?Z9_>_X[O,]Y7?`K_'V@CM&NW+`;$# M=@U,&WC1/\!_FO]37;SN$T;!?,1<#=`$6`,D;Y@6GV"4YWOR)*B4<,43S\X3 MT8P#L9.+;,1L*$5_OI%^[\K"N^#FX')7QY,O^%]"($:.:<`H]J(;S#`0.KFO M[9"-I>#/V^GOYIR=@6X.+R>D1:3P6F_81IA(PMC;RDL8QYYO`M4-T'&?YUZ+ M69QEFV\ZN:J1WU%=5:W?^+,@H\#ZHR0ZH4$([M+-8@6JHH.14 M93"%/`Y3E,?OLK[$HI;,TZ=:6TZ?M+0M2LU*7\)KRQH]@8UD'8R#P3!."7=! M9&>O2R@OY(O*UV1EZN>O[()@`4KH)T[0W3J];RZ&\'@*^[.X^`4.A0`P_`DB M(0XVH"^H@X:C+ABK>:VSSA-:1$(2C%1*277LR'4-MP3IUDH:JY%4Y=,[CQS9 ML4O?YDP3!2]+)U9FH-K%.Z3^M-8)@5(B4"2J:,PR`UJL!%,YVR M+[BP,(F+G+W"RIN2_SQ3O[1XN3WY9LY#B'\-"OC5BSG7E[B% MN-;$CXW5:FU9`_S8"7N+R$8(`QY"E5*V9P:+YVT8A/,PGL,-("3_%>):8>H% MB$:?UIFI)1O6.O@.,('VPC_WJG&$=PL;Y30E)99>@X7-V[YPN?@=VW>[:O7= MM>_C4$&[KU!J@7?)W=)2I93OB6"]$Z@T%%5NZMG^L\YZ/:13N,C;HOH'I2T[ M[`DXJ&L$/U0`*\^-@('0G^EE[D.4U,,>;VX_\U7-C`4?R"[D7 MH&!Q0ESXF(BNI!ZSP/3&%49D(,FAXM5<("#X;X_`OS?ASL1S//.7BWL>MSSC MF/N7TK_!4)[I18VWD;V_[U!3)W][R8VED5R^TS@NWG;S'J_=5@A[._/KX<<& M73V$RKJ$,6<.E;$@+UL0S(-X3IYHX5(8QEEPZH<\\QBCPB9L&((C6,D+:P?W!>__):32(N+-BXH'(5OWYS7ODJ_;?UP?:`(:6[: M6I6ZI96KK3W>>(^'%=2NY8>GY7'9)9L3RWD1'M+>2EC#_ATJ7F&%2KO5Z18/ M0U<3U#>);MUKF`!&B$0>HIECR:ECHH1@;9&V]\^(I!U30V4F[^"J:.7IB)ZCJ M0'QFDB=K#RQ:3;G+::3EE>D;.2U5XI/>S3-Y!F(E<+=2L\P"&7' M1$3;INASHFKNF87,KHW/KW(PI0U&PW"@GJ)FPE'>#65YE+AV76%>_M0S87K, MQ*%HQ#3\`'08`:LAX-'U)_??R"<>E5X?D0E^)Q^!3R&&R=DU"+HIJ-XFSX`1 M3!R,,4(,-O-XF6)VBW1;1<>F),Z[ELXLRC7Q3`YLDFZQ^S=O=G?I(?H`6HVX M?GP"^J2NV],NO)'P$)P[`H>/O)$P',+K@7(S14Q+K4=@_T2//%(G2 MUW0[9*CDQH68AN6/TL<7[^@0H)Q^>O@VGRK%@0OR0UQJ**4_V[/U M(NCOBAAT0&:\V/L5I9TO#\2EMP!'NX&N8UXR3_H`3U4>?QM0!*^;CMV27G63 M@]4TZ&IC(K<+;OA6I%9/+IV!`ZO4S,N?4.3];3`%[^?K9)`N2@MT<3.XW!+= MK#L&L?`Y&#/=C.2IZ/L>GHM4=\7A30E<$+UTE6T\SMT(57A6$\\Z^? M&R3\?X-RD)J:)'<*EZ&!?J MS/?2FSDS]Z&G?^6'20D=1<),DQ)=/!+P=>"7V6:#$.=@/^RDA9PQ\'+`2O&4M M4W`(7HAGX'@<"1_A6:2EV@X?P2R(A'B\$&;@$-FDQFQVZ+,3C3TC3/R,>.(X MP3QFIE>7I>M'6)`C\-*=T@VTN=WJ++]J)^Z$`ZJ6<.2M9484Z$RA3>W+NN0H M."L[)Y\K*-04;=GGQHQ#$?^3I$%76=DJO=VV$]/8XZMX_*[^E[SZ7R"!.+B4'IA869R_-:6)5+FGWAC+/Z]/%R[ M$/P^E5W>10W&=B=]P687SL'O".\ELP&HYVFR>*RUTM7%);6';)TQ3Z2P;@#> MO04F2_B[+F]"0:J*P'B]PL](:"*=E15$2,G33(*U.!YA!D?:H'KYV!, MT,DEPRLQ]BD/:WQ9/(;P&X>CC^_D-@X^5G9(SX_5]9Z4M7<>O/\#"\/H4F/Y MV5)"N@?&5.>?S)YUOX:2OHQB[C)#O\8(L0(4=*O&7O0-FZK*5>=Q6(P?41K: M&T8I9=T^4P7;:M5-6MB@`O5HRG,K4^P?>^$W\3FR"+\-_Z54Y>KRQB0F: M,+5@HF:4H,_0A][&`=#F108!15W3PU(W``IU2F[:5Y$,@ONN%9Z/%29K5@LT\(Z_8 M_A3]'1;6(0B&@?IF:W$=R3IK(/`J_UZSIQE\,`/3P0TX9@?3PL<-2/+R*+5: M7:22IFCKC#(XB!Y_F5UMQNNIH+?==7.DAMKJQONWZP M6AM+9.[>6LR/]TF,L,'X`D>8C(7B"2)2;OC-TH_EX^`=^=^F/I3U>'\N!#MEK[2\]J! M85_'RGEXIIR\LU-'/X#W;E[Z?K!+P-B7TLB_U4=0DEK-(2AES`DFD[<=EVS4 M:ZQ-+#^,=R6ALZI#1:$L#D2'DV+:@J3SYBS&_F0A]OG9]\X-B^5H&Q>`F,R+ M-64Z\*AR(W]L^5F2&[D^?(D6IIT;/_C@:E^#O(@34`]#D`,6",!EP,)4,2P& MNP2XU@:'O5*18N1*X[1ANEBW7_!\27)Z]-?KI7],>7%7+8,2NE>=3;HQ?RE& M?YF'YV"_%\N?W^IO?G1!F%.U)GY&!WQI$UT%63^XBTDC9S/1`?J]I4,L7![K M6`#NJ$EWLJ>BEG31F2D9B6Q:34S[]XU-]J%E-CE>6X2GS^4V?MV/1^G09'6, MBD#]IID,9^^,6B#V3+[-TW)O*7D`O&`*Z66DD3>9)\N8B5P^E9\I.8.G(>9) M;G5$C#%*BF>L6;ID14_(]429!C&/EVW+6;YC'1O6DMF9P9$/X\N""Z/B(MC@ MZ]'@`;\#KR;R(\;HP!8=Q[S(#=!1RW6[=:WL$4=]W;A66V;EAAM;3E]@S\=9 M\PYP9/O?7*&2TY;,J)784QNQ=Z9^H*&L\O`A&8G?^/^ZJS:FJ2L,HV0"IB8#_REC@U&=:C:X@EPE%7(L4 M-LP1N*%(5;X!5ES"QS@T69]5R1)\7&5!7BB,#-X*42P0Y'>>,I2^Z.V*R;49 M@4IW\;Y>&MR(]#^):XJF2*5A!LN*9_8HXW..KJ M-)^FE]8Y7I]12]:KT3_Z$W#WG@)3C(M#1/]ZWB>$8#T(P8K3$B@,@3(>@C)B M;[6&U/I/%LC^_\V#Q24=OC9^MQ%OB$]UXA<2U88@SRS@$2JK7M^\2,/+2.?O/WM-N;J\#(D0 M%S,?O_^,1F>61/[^EL1LPNXIRZ?7:]&)JJILB5D?F;6+>`%F8<>^'\E]/Q") M6N%+@?J@H:(M2"L&(`7='>MN8Q3!P3K5=>64=[1/*)L^\I[FJ-XHQ6U=Q"D< M^M0AU*1+BJ4;'*>EY'5(,[S%+R9DE]EW5&RS>#=5-L?098T&Z-+*$X)O+L5_@!,KK<\1"F7!Z:#W2QQ1>?,5::]87*/-?H)RQ,_T*<8KFI[Q$9 M07[S7Z>0R=`:DDFV8[O"YXOC521D3N-D*B(&\1]>LZ2"9=(TGQ M2#0)5+G;VE#=BF/`M$WQ^R.07^H16OK=+PHXB10$9TN=D;;P_#NO,V4=J0OM MI"FZ!4;`#1RZ[/!4MW\,T3A]&['/`6==3DTD!\D",KMT?"_=&5SHZ&%\&>W& MYK+(%E/3.3M]KL1AJ)/\C&2FCK6$-FQNB8"N\^N&!F3QBL! MS?PFINM@Z=8G49N`?'EZ>WQ] M?G^`@8*#A(6&AXB)BHN,C8Z/D)&2DY25EI>8F9J;G)V>GZ"AHJ.DI::GJ*FJ MJZRMKJ^PL;*SM+6VM[BYNKN\O;Z_P,'"P\3%QL?(R+CY.7FY^CIZNOL[>[O\/'R\_3U]O?X^?K[_/W^_P(,`*WV M?X$*96YD7!E M(#`@+T1O;6%I;B!;(#`@,2!=("]286YG92!;("TQ(#$@72`O0FETF4@6R`R-38@72`O3&5N9W1H(#4R-R`O1FEL=&5R("]& M;&%T941E8V]D92`^/B`-("(B(B0F)B8H*BHJ+"XN+C`R,C(T-C8V.#HZ. MCP^/CY`0D)"1$9&1DA*2DI,3DY.4%)24E165E986EI:7%Y>7F!B8F)D9F9F: M&IJ:FQN;FYPGI\?GY^@(*"@H2&AH:(BHJ*C(Z.CI"2DI*4E MI:6F)J:FIR>GIZ@HJ*BI*:FIJBJJJJLKJZNL+*RLK2VMK:XNKJZO+Z^OL#"P ML+$QL;&R,K*RLS.SL[0TM+2U-;6UMC:VMKX.+BXN3FYN;HZNKJ[.[N[ MO#R\O+T]O;V^/KZ^OS^_O\!`P,#!0<'!PD+"PL-#P\/$1,3$Q47%Q<9&QL;' M1\?'R$C(R,E)RWM[?7]_?X&#@X.%AX>'B8N+BXV/CX^1DY.3E9>7EYF;FYN=GY^?H:.CH MZ6GIZ>IJZNKK:^OK[&SL[.UM[>WN;N[N[V_O[_!P\/#QOKZ^WO[^_Q\_/S]??W]_G[^_O]_ M__\"#`#GK#\0"F5N9'-T7!E M("]%>'1'4W1A=&4@#2]302!F86QS92`-+U--(#`N,#(@#2]/4"!F86QS92`- M+T)'(#,S(#`@4B`-+U5#4B`S-"`P(%(@#2](5"`O1&5F875L="`-+U12("]) M9&5N=&ET>2`-/CX@#65N9&]B:@TQ(#`@;V)J#3P\(`TO5'EP92`O4&%G92`- M+U!A"DR-2XR*&@I M,"XX*&EB:2DR,BXW*'0I+3(T-2XV*&ES*2TR,S(N,2AF*30N-2AU*3`N."AR M*30N-2AN*3`N."AI*3(R+C&,I+38N."AH*3(T+C@H82DM-BXX*&YG92DM,C4P M+C2DM,C0T+C$H2E=5$H*5"H*,"XP M,3$X(%1C"ELH9BDR-RXW*&EL:2DR,2XU*&YG*2TR-#0N,RAU;F1E*3$V+C@H M&,I,38N M."AH82DQ-BXX*&YG92DM,C4Q+C4H06,I+3'0@72`-+T9O M;G0@/#P@+T8R(#(Y(#`@4B`O1C8@,C8@,"!2(#X^(`TO17AT1U-T871E(#P\ M("]'4S$@,S4@,"!2(#X^(`T^/B`-96YD;V)J#38@,"!O8FH-/#P@+TQE;F=T M:"`R,#$R(#X^(`US=')E86T-"C$@,2`Q(')G"B]'4S$@9W,*,2!I(`HQ."`W M-S0@-3@P+C`U-B`M-S4U+CDV.2!R90IF*@HQ."`W-S0@-32DM,CDR+C,H82DM-BXX M*'4I+3(T*'0I+3(V+C4H:&\I+3(T*'(I+3(P+C,H:2DM,C8N-2AZ*2TV+C@H M92DM,S$N,BAD+BE=5$H*,C@N.3"DM-RXR*&AI*2TY+C -----END PRIVACY-ENHANCED MESSAGE-----

EX-99.1

PRESS RELEASE