-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, H+t5Dv/375rdM8Opp+te9EyV4tgIPJ+aZQ8fkxNV9xULvex9qvo64b4JIknyf0W5 bW8l/wKAsD4eNV9PZ8OGjA== 0000789318-03-000001.txt : 20030214 0000789318-03-000001.hdr.sgml : 20030214 20030213195606 ACCESSION NUMBER: 0000789318-03-000001 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021231 FILED AS OF DATE: 20030214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CLANCY SYSTEMS INTERNATIONAL INC /CO/ CENTRAL INDEX KEY: 0000789318 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 841027964 STATE OF INCORPORATION: CO FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 033-04882-D FILM NUMBER: 03562176 BUSINESS ADDRESS: STREET 1: 2250 S ONEIDA STREET 2: STE 308 CITY: DENVER STATE: CO ZIP: 80224 BUSINESS PHONE: 3037530197 MAIL ADDRESS: STREET 1: 2250 S ONEIDA STREET 2: STE 3308 CITY: DENVER STATE: CO ZIP: 80224 FORMER COMPANY: FORMER CONFORMED NAME: OXFORD FINANCIAL INC DATE OF NAME CHANGE: 19600201 10QSB 1 dec02q.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2002 OR 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: 33-4882-D CLANCY SYSTEMS INTERNATIONAL, INC. (Exact name of Registrant as specified in its charter) Colorado 84-1027964 (State or other jurisdiction of (IRS Employer Identification incorporation or organization) Number) 2250 S. Oneida #308, Denver, Colorado 80224 (Address of principal executive offices and Zip Code) (303) 753-0197 (Registrant's telephone number) N/A (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 Mr. 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 APPLICABLE ONLY TO CORPORATE ISSUERS: The number of shares outstanding of the issuer's classes of common stock, as of February 12, 2003 is 365,117,938 shares, $.0001 par value. CLANCY SYSTEMS INTERNATIONAL, INC. INDEX Page No. PART I. FINANCIAL INFORMATION Consolidtated Balance Sheet - September 30, 2002 and December 31, 2002 (unaudited) 2 and 3 Consolidated Statement of Income - For the Three Months Ended December 31, 2001 and 2002 (unaudited) 4 Consolidated Statement of Stockholders' Equity - For the Three Months Ended December 31, 2002 (unaudited) 5 Consolidated Statement of Cash Flows - For the Three Months Ended December 31, 2001 and 2002 (unaudited) 6 Notes to Unaudited Consolidated Financial Statements 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 9 PART II. OTHER INFORMATION 11 1 CLANCY SYSTEMS INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEET September 30, 2002 and December 31, 2002 (unaudited) ASSETS September December --------- -------- Current assets: Cash, including interest bearing accounts $ 357,315 $ 414,136 Accounts receivable 339,599 447,855 Income tax refund receivable 35,063 8,410 Inventories (Note 2) 148,517 135,839 Prepaid expenses 138,141 114,341 ---------- --------- Total current assets 1,018,635 1,120,581 Furniture and equipment, at cost: Office furniture and equipment 259,595 199,424 Equipment under service contracts 1,893,995 2,446,790 Leasehold improvements 105,259 95,482 Equipment and vehicles under capital leases 356,745 169,582 --------- --------- 2,615,594 2,911,278 Less accumulated depreciation (1,170,030) (1,224,851) ----------- ---------- Net furniture and equipment 1,445,564 1,686,427 Other assets: Deferred tax asset (Note 3) 38,200 25,150 Deposits 20,640 21,996 Goodwill 225,214 225,214 Software development costs, net of accumulated amortization 150,193 157,869 --------- --------- Total other assets 434,247 430,229 --------- --------- $ 2,898,446 $ 3,237,237 =========== =========== See accompanying notes 2 CLANCY SYSTEMS INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEET September 30, 2002 and December 31, 2002 (unaudited) LIABILITIES AND STOCKHOLDERS' EQUITY September December --------- -------- Current liabilities: Accounts payable $ 141,092 $ 234,114 Accrued Expenses 166,159 183,029 Current portion of long term debt 111,111 169,715 Current portion of obligations under capital leases 132,279 132,279 Deferred revenue 110,722 103,222 ---------- --------- Total current liabilities 661,363 882,359 Long-term debt, net of current portions 182,824 238,985 Obligations under capital leases, net of current portion 53,423 83,408 Minority interest in subsidiary 142,769 146,619 Commitments Stockholders' equity: Preferred stock, $.0001 par value; 100,000,000 shares authorized, none issued - - Common stock, $.0001 par value; 800,000,000 shares authorized, 365,117,938 shares issued and outstanding 36,512 36,512 Additional paid-in capital 1,151,547 1,151,547 Retained earnings 670,008 757,807 --------- --------- Total stockholder's Equity 1,858,067 1,945,866 ----------- ---------- $ 2,898,446 $ 3,237,237 =========== =========== See accompanying notes 3 CLANCY SYSTEMS INTERNATIONAL, INC. CONSOLIATED STATEMENT OF OPERATIONS For the Three Months Ended December 31, 2001 and 2002 (unaudited) 2001 2002 ---- ---- Revenues: Sales $ 39,395 $ 40,775 Service contract income 342,319 621,451 Parking ticket collections 21,230 38,286 --------- --------- Total revenues 402,944 700,512 Costs and expenses: Cost of sales 34,538 20,443 Cost of services 114,238 122,096 Cost of parking ticket collections 26,274 35,688 General and administrative 181,408 338,928 Research and development 14,123 8,925 Minority interest in loss of subsidiary - 3,849 --------- -------- Total costs and expenses 370,581 529,929 Income from operations 32,363 170,583 Other income (expense): Loss on disposal of assets - (17,762) Interest income 951 548 Interest expense - (11,507) --------- -------- Total other income (expense) 951 (28,721) Income before provision for income taxes and loss in equity-basis partnership 33,314 141,862 Provision for income taxes: Current expense (14,545) (41,013) Deferred expense - (13,050) --------- -------- Total income tax expense (14,545) (54,063) Loss in equity basis partnership (net of tax benefit of $2,936 - 2001) (4,791) - --------- ------- Net income $ 13,978 $ 87,799 ========= ======== Basic net income per common share $ * $ * ========= ======== Weighted average number of shares outstanding 361,600,000 365,118,000 *Less than $.01 per share See accompany notes 4 CLANCY SYSTEMS INTERNATIONAL, INC. CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY For the Three Months Ended December 31, 2002 (Unaudited)
Additional Common stock paid-in Retained Shares Amount capital earnings ------ ------ ------- -------- Balance, September 30, 2002 365,117,938 $ 36,512 $ 1,151,547 $ 670,008 Net income for the three months ended December 31, 2002 - - - 87,799 ----------- --------- ----------- -------- Balance, December 31, 2002 365,117,938 $ 36,512 $ 1,151,547 $ 757,807 =========== ========= ============ ========= See Accompany Notes 5
CLANCY SYSTEMS INTERNATIONAL, INC. CONSOLIDATED STATEMENT OF CASH FLOWS For the Three Months Ended December 31, 2001 and 2002 (unaudited) 2001 2002 ---- ---- Cash flows from operating activities: Net income $ 13,978 $ 87,799 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 47,431 69,615 Deferred income tax expense 4,500 13,050 Changes in assets and liabilities: Investment in equity-basis partnership 7,728 - Accounts receivable 55,180 (108,256) Inventories (2,892) (305) Income taxes refundable - 26,653 Prepaid expenses 4,209 36,783 Accounts payable (16,008) 93,022 Accrued Expenses - 16,870 Income taxes payable 7,030 - Deferred Revenue (11,982) (7,500) Minority Interest - 3,850 -------- -------- Total adjustments 95,196 143,782 -------- -------- Net cash provided by operating activities 109,174 231,581 Cash flows from investing activities: Acquisition of furniture and equipment (30,033) (250,099) Increase in software licenses and software development costs (7,675) (21,826) Decrease in note receivable-employee 35 - Increase in deposits and other assets - (2,000) -------- -------- Net cash used in investing activities (37,673) (273,925) Cash flows from financing activities: Borrowings on notes payable - 160,000 Payments on notes payable and capital leases - (60,835) -------- ------- Net cash provided by financing activities - 99,165 -------- ------- Increase in cash and cash equivalents 71,501 56,821 Cash and cash equivalents at beginning of period 385,491 357,315 -------- -------- Cash and cash equivalents at end of period $ 456.992 $ 414,136 ========= ========= See accompanying notes 6 1. Basis of presentation The accompanying financial statements have been prepared by the Company, without audit. In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of only normal recurring accruals) necessary for a fair presentation of the financial position as of September 30, 2002 and December 31, 2002, and the results of operations and cash flows for the periods ended December 31, 2001 and 2002. As a result of the July 2002 settlement agreement with the principals of UTS (Urban Transit Solutions) we have changed the reporting method for the Company's 60% ownership in UTS from the equity method of accounting to presenting the information on a consolidated basis. The difference in presentation between the equity method of accounting and on a consolidated basis is significant. For, 2001, Clancy presented its investment in UTS as a single line item "investment in partnership" on the balance sheet and as a single line item on the statement of operations. For 2002, the consolidated financial statements combine each line item on the balance sheet and statement of operations of Clancy with those of UTS. 2. Inventories Inventories consist of the following at: September 30, December 31, 2002 2002 ------------ ------------ Finished goods $ 22,272 $ 40,784 Work in process 4,795 42,247 Purchased parts and supplies 121,450 52,808 -------- --------- $148,517 $135,839 ======== ======== 3. Income taxes The provision for income taxes for the three months ended December 31, 2001 and 2002 is based on the expected tax rate for the year. As of September 30, 2002 and December 31, 2002, total deferred tax assets and liabilities are as follows: September 30, December 31, 2002 2002 ---- ---- Deferred tax assets $ 87,700 $ 98,700 Deferred tax liabilities (49,500) (73,550) --------- ---------- $ 38,200 $ 25,150 ========= ========== 7 4. Investment in UTS Pro Forma consolidated financial information for the quarter ended December 31, 2001 is as follows: Pro Forma consolidated For quarter ended statement of operations December 31, 2001 ----------------------- ----------------- Total Revenues $ 685,784 Total costs and expenses (671,806) ----------------- Net income $ 13,978 ================= 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Critical Accounting Policies: The Company has identified the accounting policies described below as critical to its business operations and the understanding of the Company's results of operations. The impact and any associated risks related to these policies on the Company's business operations is discussed throughout this section where such policies affect the Company's reported and expected financial results. The preparation of this Quarterly Report requires the Company to make estimates and assumptions that affect the reported amount of assets and liabilities of the Company, revenues and expenses of the Company during the reporting period and contingent assets and liabilities as of the date of the Company's financial statements. There can be no assurance that the actual results will not differ from those estimates. Revenue Recognition: Revenue derived from professional service contracts on equipment and support services is included in income as earned over the contract term; related costs consist mainly of depreciation, supplies and sales commissions. The Company defers revenue for equipment and services under service contracts that are billed to customers on a quarterly, semi-annual, annual or other basis. Revenue from the issuance of parking tickets is recognized on a cash basis when received. Revenue derived from professional service contracts on parking meter and lots fees collections is recognized on a cash basis when received. Related costs consist mainly of Municipalities' fees, depreciation and lots rents. Computer software: Costs incurred to establish the technological feasibility of computer software are research and development costs, which are charged to expense as incurred. Software development costs incurred subsequent to establishment of technological feasibility are capitalized and subsequently amortized based on the greater of the straight line method over the remaining estimated economic life of the product (generally five years) or the estimate of current and future revenues for the related software product. 9 Good Will On January 1, 2002, the Company adopted Statement of Financial Accounting Standards No. 142 (SFAS 142), Goodwill and Intangible Assets, which clarifies the accounting for goodwill and intangible assets. Under SFAS 142, goodwill and intangible assets with indefinitive lives will no longer be amortized, but will be tested for impairment annually and also in the event of an impairment indicator. Material Changes in Financial Condition At December 31, 2002, the Company had working capital of $238,222 derived primarily from contract sales and contract service, as compared to working capital of $357,272 at September 30, 2002. The Company anticipates that working capital will be sufficient to meet its working capital requirements for the current year. Funds will continue to be used for general and administrative purposes, equipment purchases, equipment manufacturing, travel, marketing and research and development. Material Changes in Results of Operations During the quarter ended December 31, 2002, the Company generated revenues from contract sales from its professional services contracts, sales, remit-online payment processing, privatization contract, and meter operations in Puerto Rico. New contracts signed during the quarter included Loudoun County VA, Mountain Village CO, Ellensburg WA, and Bay Area Rapid Transit. UTS added 663 meters to it's Cauguas contract. Enforcement efforts have also begun. Consolidated revenues during the quarter were higher than the prior year's quarter by 74%. Consoliated expenses increased by 43% over the prior year's quarter. The Company reported a profit of $87,799 ($82,028 for Clancy directly and $5,771 for UTS)for the quarter as compared to a net profit of $13,978 for the prior year's quarter. The consolidated revenues are reported as $700,512 ($421,246 for Clancy directly, up 5% from the prior year's quarter, and $279,266 for UTS). The consolidated expenses are reported as $529,929 ($320,807 for Clancy directly, down 10% from the prior year's quarter and $209,122 for UTS). Long term debt, capital lease,and interest expenses are attributed to the obligations of UTS. Clancy directly has no outstanding debt. Forward Looking Information Statements of the Company's or management's intentions, beliefs, anticipations, expectations and similar expressions concerning future events contained in this document constitute "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. As with any future event, there can be no assurance that the events described in the forward looking statements made in this report will occur or that the results of future events will not vary materially from those described in the forward looking statements in this document. 10 Important factors that could cause the Company's actual performance and operating results to differ materially from the forward looking statements include, but are not limited to, (i) the ability of the Company to obtain new customers, (ii) the ability of the Company to obtain sufficient financing for business opportunities, (iii) the ability of the Company to reduce costs and thereby maintain adequate profit margins. Chat Room Disclaimer This forum of exposure to publicly traded companies presents a venue for the public to inquire about companies from other individuals as well as post opinions. The Company has no way to regulate postings nor monitor information posed on these boards. Management can only provide accurate information to shareholders and potential shareholders when contacted directly and such information can only be provided when it is based on fact and has been filed as required by law with the Securities and Exchange Commission and other regulatory agencies. PART II - OTHER INFORMATION Item 1. Legal Proceedings On September 19, 2000, the Company filed an action in Suffolk County Superior Court against Mr. John Mr. Short, Syracuse, New York, who posted as Darth4, MrDarth4, and other aliases on Raging Bull and other message boards. Relief sought includes monetary damages for harm done to the Company and its officers in an amount not yet determined, retraction of false and damaging statements and for the subject to cease and desist posting or discussing the Company, its officers, and any activities related thereto. In a judgment rendered by the Superior Court Department of the Trial Court of Suffolk County, a default judgment against Mr. Short was entered on October 31, 2001. The Judgment orders Mr. Short to pay the Company attorney's fees and costs of $16,699 and an additional fine of $50,000 for his willful failure to comply with a Court order of June 28, 2001. On November 19, 2002 Short filed a Motion for Relief of Default Judgment. The motion was denied on December 13, 2002. On December 20,2002, Short filed a Notice of Appeal from Order Denying Motion for Relief from Default Judgment. This appeal is still pending. On January 23, 2003, Short filed an Emergency Motion for Stay of Execution of Judgment Pending Appeal from Order Denying Motion for Relief from Default Judgment. On February 6, 2003 this Motion was denied. Item 2. Changes in Securities and Use of Proceeds None Item 3. Controls and Procedures An evaluation was performed under the supervision and with the participation of the Company's management, including the Chief Executive Officer and Chief Financial Officer of the effectiveness of the design and operation of the Company's disclosure controls and procedures within 90 days before the filing date of this quarterly report. 11 Based on that evaluation,the Company's management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective. There have been no significant changes in the Company's internal controls or in other factors that could significantly affect internal controls subject to their evaluation. Item 6. Exhibits and Reports on Form 8-K Section 302 Certification by Chief Executive Officer Section 302 Certification by Chief Financial Officer Exhibit 99.1 Section 906 Certification by Chief Executive Officer Exhibit 99.2 Section 906 Certification by Chief Financial Officer Filed herewith. 12 Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: February 14, 2003 CLANCY SYSTEMS INTERNATIONAL, INC. (Registrant) By: /s/ Stanley J. Wolfson Stanley J. Wolfson, President and Chief Executive Officer 13 Section 302 Certification Quarterly Report on Form 10-QSB I, Stanley J. Wolfson, certify that: 1. I have reviewed this quarterly report on Form 10-QSB of Clancy Systems International, Inc.; 2. Based on my knowledge, this quarterly 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 quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have: a) designed such disclosure controls and procedures 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 quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 14 6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: February 14, 2003 /s/Stanley J. Wolfson Chief Executive Officer 15 Section 302 Certification Quarterly Report on Form 10-QSB I, Lizabeth M. Wolfson, certify that: 1. I have reviewed this quarterly report on Form 10-QSB of Clancy Systems International, Inc.; 2. Based on my knowledge, this quarterly 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 quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have: a) designed such disclosure controls and procedures 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 quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 16 6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: February 14, 2003 /s/Lizabeth M. Wolfson Chief Financial Officer 17 Exhibit 99.1 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Clancy Systems International, Inc. (the "Company") on Form 10-QSB for the period ended December 31,2002 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Stanley J. Wolfson, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. /s/ Stanley J. Wolfson _______________________ Chief Executive Officer February 14, 2003 18 Exhibit 99.2 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Clancy Systems International, Inc. (the "Company") on Form 10-QSB for the period ended December 31 2002 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Lizabeth M. Wolfson, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. /s/ Lizabeth M. Wolfson _______________________ Chief Financial Officer February 14, 2003 19 -----END PRIVACY-ENHANCED MESSAGE-----