-----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,
Gdb+1a23a6OdQrM+24SRokx75LvizbhKgStduGEtRxgShSP9fukEwKbCkZsxxvYC
oovdpPli0WGA40QvrVudIA==
0000827187-06-000058.txt : 20060725
0000827187-06-000058.hdr.sgml : 20060725
20060725162518
ACCESSION NUMBER: 0000827187-06-000058
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 4
CONFORMED PERIOD OF REPORT: 20060725
ITEM INFORMATION: Results of Operations and Financial Condition
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20060725
DATE AS OF CHANGE: 20060725
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: SELECT COMFORT CORP
CENTRAL INDEX KEY: 0000827187
STANDARD INDUSTRIAL CLASSIFICATION: HOUSEHOLD FURNITURE [2510]
IRS NUMBER: 411597886
FISCAL YEAR END: 1206
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-25121
FILM NUMBER: 06979324
BUSINESS ADDRESS:
STREET 1: 6105 TRENTON LANE NORTH
CITY: MINNEAPOLIS
STATE: MN
ZIP: 55442
BUSINESS PHONE: 7635517000
MAIL ADDRESS:
STREET 1: 6105 TRENTON LANE NORTH
CITY: MINNEAPOLIS
STATE: MN
ZIP: 55442
8-K
1
form8k072506.htm
FORM 8-K PRESS RELEASE
Form 8-K Press Release
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): July
25, 2006
SELECT
COMFORT CORPORATION
(Exact
name of registrant as specified in its charter)
Minnesota
(State
or
other jurisdiction of incorporation or organization)
0-25121
|
41-1597886
|
(Commission
File No.)
|
(IRS
Employer Identification
No.)
|
6105
Trenton Lane North, Minneapolis, Minnesota 55442
(Address
of principal executive offices) (Zip
Code)
(763)
551-7000
(Registrant’s
telephone number, including area code)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[
]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[
]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[
]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17 CFR 240.14d-2(b))
[
]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17 CFR 240.13e-4(c))
ITEM
2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On
July
25, 2006, Select Comfort Corporation issued a press release announcing results
for the second quarter ended July 1, 2006. A copy of the press release is
attached as Exhibit 99.1 to this Current Report on Form 8-K.
ITEM
9.01. FINANCIAL STATEMENTS AND EXHIBITS
(c) |
Exhibits. |
|
|
Exhibit 99.1 |
Press Release, dated July 25,
2006 |
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
|
SELECT
COMFORT CORPORATION
|
|
(Registrant)
|
|
|
|
|
Dated:
July 25, 2006
|
By: /s/
Mark A. Kimball
|
|
Title: Senior
Vice President
|
INDEX
TO EXHIBITS
The
exhibit listed in this index is being furnished pursuant to Item 2.02 of Form
8-K and shall not be deemed “filed” for purposes of the Securities Exchange Act
of 1934, as amended, or incorporated by reference into any document filed under
the Securities Act of 1933, as amended, or under the Securities Exchange Act
of
1934, as amended, except as otherwise expressly stated in any such
filing.
Exhibit
No. Description
of Exhibit
99.1 Press
Release, dated July 25, 2006
EX-99.1 CHARTER
2
exhibit_991.htm
EXHIBIT 99.1 PRESS RELEASE, DATED JULY 25, 2006
Exhibit 99.1 Press Release, dated July 25, 2006
![](sclogo2.jpg)
FOR
IMMEDIATE RELEASE
Media
Contact: |
Investor Relations
Contact: |
Tammy Nystuen |
Frank Milano |
(763) 551-7496 |
(763) 551-6908 |
tamara.nystuen@selectcomfort.com |
frank.milano@selectcomfort.com |
SELECT
COMFORT REPORTS 46 PERCENT INCREASE IN EARNINGS PER SHARE
Net
sales increase 22 percent, same-store sales increase 16
percent;
Company
raises full year earnings guidance to reflect strong second quarter
performance
MINNEAPOLIS –(July
25,
2006) – Select Comfort Corporation (NASDAQ: SCSS), the nation’s leading bed
retailer(1)
and
creator of the Sleep Number®
bed,
today reported
results
for the
fiscal second quarter ended July 1, 2006. Second quarter earnings per share
totaled $0.19 per diluted share, an increase of 46 percent compared to $0.13
per
diluted share in the second quarter of 2005. Net sales increased 22 percent
to
$188.6 million and net income increased 37 percent to $10.7 million, compared
to
net sales of $154.5 million and net income of $7.9 million in the second
quarter
of 2005. All earnings per share data reflects the company’s 3-for-2 stock split
that took effect on June 8.
Earnings
for the first six months of 2006 totaled $0.40 per diluted share, an increase
of
43 percent compared to $0.28 per diluted share in 2005. Net sales for the
first
six months of 2006 increased 23 percent to $401.4 million and net income
increased 36 percent to $22.5 million, compared to net sales of $327.4 million
and net income of $16.5 million in 2005.
Net
income and earnings per share in 2005 did not include stock option expense.
If
second quarter 2005 results had included the effects of stock option expense,
then earnings would have been $0.12 per diluted share in the prior year,
and
second quarter 2006 earnings of $0.19 per diluted share would represent earnings
growth of 58 percent. On a year-to-date basis, 2005 earnings would have been
$0.25 per diluted share, and 2006 earnings of $0.40 per diluted share would
represent earnings growth of 60 percent. A reconciliation of this non-GAAP
financial measure accompanies this press release.
“The
company’s second quarter performance is particularly gratifying in this
challenging consumer and retail environment and once again demonstrates the
breadth and strength of our multi-channel distribution. Our distribution
expansion provides convenient channel alternatives for consumers and enables
us
to maintain sales growth rates well in excess of industry averages,” said Bill
McLaughlin, Select Comfort chairman and chief executive officer. “We
successfully leveraged productivity advances and controlled costs, which
led to
significant margin expansion this quarter. We believe we will continue to
achieve margin gains over the balance of the year while continuing to invest
in
long-term growth initiatives intended to sustain the company’s superior growth
rates.”
Quarterly
Highlights
· |
Diluted
earnings per share growth of 46 percent
|
· |
Net
sales growth of 22 percent
|
· |
Same-store
sales growth of 16 percent
|
· |
Operating
profit margin expansion from 7.9 percent to 8.7
percent
|
· |
Initiated
stock repurchases under the $150 million buy-back
authorization
|
· |
Completed
staffing objectives to strengthen the company’s IT and R&D
functions
|
The
company’s ongoing efforts to offer consumers convenient choices for where to
purchase their Sleep Number® bed has resulted in net sales growth in excess of
20 percent for six consecutive quarters and 17 of the past 18 quarters. Several
channels exhibited significant net sales growth rates in the second quarter,
including:
· |
Retail
sales increased 25 percent, including same-store sales growth of
16
percent
|
· |
e-Commerce
sales increased 41 percent, reflecting the seventh consecutive quarterly
increase of 25 percent or more
|
· |
Retail
partner sales, reflected within total wholesale channel sales, increased
53 percent
|
During
the quarter, the company successfully opened 10 company-owned stores to end
the
quarter at 412 stores, up from 396 stores as of December 31, 2005, and on
track
to meet the company’s stated goal of between 40 and 45 net new stores in 2006.
In addition, the company added 65 doors to its retail partner program to
end the
quarter with 492 retail partner doors, up from 308 doors as of December 31,
and
on track to meet the company’s goal of doubling its retail partner program to
between 600 and 650 doors at year-end.
Operating
margins improved to 8.7 percent of revenue, compared to 7.9 percent in the
second quarter of 2005. The increase reflects a 310 basis point improvement
in
the gross margin percentage. Offsetting the improvement were stock option
expense, investments in sales and marketing initiatives and costs related
to the
development of the company’s long-term strategic plan.
Gross
margins increased to 61.0 percent of revenue, compared to 57.9 percent in
the
second quarter of 2005. Gross margins in company-owned sales channels – which
includes
retail, e-commerce and direct – increased to 62.3 percent from 60.3 percent
in the second quarter of 2005. The margin improvements reflect higher unit
volumes, higher average selling prices and productivity gains in both
manufacturing and logistics which more than offset increased commodity costs.
Sales
and
marketing expenses, which includes retail store expenses, totaled $78.6 million,
or 41.7 percent of net sales, compared to 41.4 percent of net sales in the
second quarter of 2005. Media spending increased 18 percent to $22.8 million
in
the second quarter, and on a year-to-date basis, media expenditures have
increased 21 percent to $54.4 million. The company expects to continue to
expand
media investments, which are planned to exceed $105 million in
2006.
Cash
and
investments totaled $94.3 million at the end of the quarter, a decrease of
$17.8
million compared to the balance at December 31. On a year-to-date basis,
the
decrease in cash reflects $23.8 million used for the repurchase of approximately
one million shares of common stock and capital expenditures of $14.0 million.
Since the end of the first quarter, the company has invested $9.3 million
to
repurchase an additional 431,000 shares of common stock under the $150 million
buy-back program authorized in May.
Outlook
- Increased Expectations for 2006
As
a
result of the continued strong performance in the second quarter, the company
is
increasing its earnings per share guidance for 2006 by $0.02 to between $0.93
and $0.97 per diluted share. This guidance includes an estimated $0.08 per
share
in stock option expense. The company’s outlook represents full year earnings
growth of between 33 percent and 38 percent, excluding the effects of expensing
stock options. Revenue guidance for 2006 remains
unchanged,
at or above the high-end of the company’s stated long-term revenue growth
targets of between 15 and 20 percent.
The
company’s long-term targets, which extend beyond 2006, remain
unchanged:
· |
Sales
growth of between 15 and 20 percent;
|
· |
Earnings
growth of between 20 and 25 percent, and
|
· |
Same-store
sales growth of between 7 and 12 percent.
|
· |
Sales
in 2007 of $1 billion with operating margins of 12 percent, before
consideration of stock option expense resulting from the implementation
of
FAS123R.
|
Conference
Call
Management
will host its regularly scheduled conference call to discuss the company’s
results and 2006 outlook at 5:00 p.m. Eastern Time (4:00 p.m. Central; 2:00
p.m.
Pacific) on Tuesday, July 25, 2006. To listen to the webcast, please access
the
investor relations area of the company’s website at: www.selectcomfort.com.
A
replay
will remain available through August 11, 2006, by dialing 402-998-0456. The
webcast replay will remain available in the investor relations area of the
company’s website for approximately 60 days.
About
Select Comfort
Founded
in 1987, Select Comfort Corporation is the nation's leading bed
retailer(1),
holding
30 U.S. issued or pending patents for its personalized sleep products. The
company designs, manufactures and markets a line of adjustable-firmness
mattresses featuring air-chamber technology, branded the Sleep Number® bed, as
well as foundations and sleep accessories. Select Comfort's products are
sold
through more than 400 company-owned retail stores located nationwide; through
selected furniture retailers and specialty bedding retailers; through its
national direct marketing operations; and on the Internet at
www.selectcomfort.com.
Forward-Looking
Statements
Statements
used in this press release that relate to future plans, events, financial
results or performance are forward-looking statements that are subject to
certain risks and uncertainties including, among others, such factors as
general
and industry economic trends; uncertainties
arising
from global events; consumer confidence; effectiveness of our advertising
and
promotional efforts; our ability to secure suitable retail locations; our
ability to attract and retain qualified sales professionals and other key
employees; our ability to successfully expand distribution through independent
retailers; consumer acceptance of our products, product quality, innovation
and
brand image; our ability to continue to expand and improve our product line;
industry competition; warranty expenses; risks of potential litigation; our
dependence on significant suppliers, and the vulnerability of any suppliers
to
commodity shortages, inflationary pressures, labor negotiations, liquidity
concerns or other factors; uncertainties related to the supply of foam used
to
manufacture our products; rising commodity costs; and increasing government
regulations, including new flammability standards for the bedding industry.
Additional information concerning these and other risks and uncertainties
is
contained in our filings with the Securities and Exchange Commission, including
our Annual Report on Form 10-K, and other periodic reports filed with the
SEC.
The company has no obligation to publicly update or revise any of the
forward-looking statements that may be in this news release.
(1)
Top Bedding Specialists, Furniture
Today,
May
29, 2006.
#
#
#
|
|
AND
SUBSIDIARIES
|
|
Consolidated
Statements of Operations
|
|
(unaudited –
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
July
1,
|
|
%
of
|
|
July
2,
|
|
%
of
|
|
|
|
2006
|
|
Net
Sales
|
|
2005
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
|
188,641
|
|
|
100.0%
|
|
$
|
154,520
|
|
|
100.0%
|
|
Cost
of sales
|
|
|
73,504
|
|
|
39.0%
|
|
|
65,030
|
|
|
42.1%
|
|
Gross
profit
|
|
|
115,137
|
|
|
61.0%
|
|
|
89,490
|
|
|
57.9%
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
and marketing
|
|
|
78,638
|
|
|
41.7%
|
|
|
64,048
|
|
|
41.4%
|
|
General
and administrative
|
|
|
20,037
|
|
|
10.6%
|
|
|
13,261
|
|
|
8.6%
|
|
Operating
income
|
|
|
16,462
|
|
|
8.7%
|
|
|
12,181
|
|
|
7.9%
|
|
Other
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
761
|
|
|
0.4%
|
|
|
665
|
|
|
0.4%
|
|
Income
before income taxes
|
|
|
17,223
|
|
|
9.1%
|
|
|
12,846
|
|
|
8.3%
|
|
Income
tax expense
|
|
|
6,482
|
|
|
3.4%
|
|
|
4,984
|
|
|
3.2%
|
|
Net
income
|
|
$
|
10,741
|
|
|
5.7%
|
|
$
|
7,862
|
|
|
5.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per share – basic
|
|
$
|
0.20
|
|
|
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per share – diluted
|
|
$
|
0.19
|
|
|
|
|
$
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of weighted average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
weighted average shares outstanding
|
|
|
53,405
|
|
|
|
|
|
53,722
|
|
|
|
|
Effect
of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options
|
|
|
2,618
|
|
|
|
|
|
2,576
|
|
|
|
|
Warrants
|
|
|
25
|
|
|
|
|
|
1,958
|
|
|
|
|
Restricted
shares
|
|
|
197
|
|
|
|
|
|
300
|
|
|
|
|
Dilutive
weighted average shares outstanding
|
|
|
56,245
|
|
|
|
|
|
58,556
|
|
|
|
|
SELECT
COMFORT CORPORATION
|
|
AND
SUBSIDIARIES
|
|
Consolidated
Statements of Operations
|
|
(unaudited –
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended
|
|
|
|
July
1,
|
|
%
of
|
|
July
2,
|
|
%
of
|
|
|
|
2006
|
|
Net
Sales
|
|
2005
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
|
401,371
|
|
|
100.0%
|
|
$
|
327,352
|
|
|
100.0%
|
|
Cost
of sales
|
|
|
157,153
|
|
|
39.2%
|
|
|
135,765
|
|
|
41.5%
|
|
Gross
profit
|
|
|
244,218
|
|
|
60.8%
|
|
|
191,587
|
|
|
58.5%
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
and marketing
|
|
|
170,140
|
|
|
42.4%
|
|
|
139,073
|
|
|
42.5%
|
|
General
and administrative
|
|
|
39,311
|
|
|
9.8%
|
|
|
26,685
|
|
|
8.2%
|
|
Operating
income
|
|
|
34,767
|
|
|
8.7%
|
|
|
25,829
|
|
|
7.9%
|
|
Other
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
1,630
|
|
|
0.4%
|
|
|
1,138
|
|
|
0.3%
|
|
Income
before income taxes
|
|
|
36,397
|
|
|
9.1%
|
|
|
26,967
|
|
|
8.2%
|
|
Income
tax expense
|
|
|
13,922
|
|
|
3.5%
|
|
|
10,463
|
|
|
3.2%
|
|
Net
income
|
|
$
|
22,475
|
|
|
5.6%
|
|
$
|
16,504
|
|
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per share – basic
|
|
$
|
0.42
|
|
|
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per share – diluted
|
|
$
|
0.40
|
|
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of weighted average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
weighted average shares outstanding
|
|
|
53,418
|
|
|
|
|
|
53,711
|
|
|
|
|
Effect
of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options
|
|
|
2,740
|
|
|
|
|
|
2,631
|
|
|
|
|
Warrants
|
|
|
51
|
|
|
|
|
|
1,959
|
|
|
|
|
Restricted
shares
|
|
|
187
|
|
|
|
|
|
281
|
|
|
|
|
Dilutive
weighted average shares outstanding
|
|
|
56,396
|
|
|
|
|
|
58,582
|
|
|
|
|
SELECT
COMFORT CORPORATION
|
|
AND
SUBSIDIARIES
|
|
Consolidated
Balance Sheets
|
|
(unaudited –
in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
July
1,
|
|
December
31,
|
|
|
|
2006
|
|
2005
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
|
-
|
|
$
|
32,863
|
|
Marketable
securities –
current
|
|
|
38,306
|
|
|
24,122
|
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
|
|
|
|
|
|
of
$629 and $552, respectively
|
|
|
17,636
|
|
|
10,109
|
|
Inventories
|
|
|
25,182
|
|
|
21,982
|
|
Prepaid
expenses
|
|
|
17,916
|
|
|
9,841
|
|
Deferred
tax assets
|
|
|
6,832
|
|
|
6,139
|
|
Total
current assets
|
|
|
105,872
|
|
|
105,056
|
|
|
|
|
|
|
|
|
|
Marketable
securities –
non-current
|
|
|
55,971
|
|
|
55,102
|
|
Property
and equipment, net
|
|
|
58,595
|
|
|
53,866
|
|
Deferred
tax assets
|
|
|
14,193
|
|
|
11,256
|
|
Other
assets
|
|
|
3,538
|
|
|
3,554
|
|
Total
assets
|
|
$
|
238,169
|
|
$
|
228,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
35,419
|
|
$
|
31,655
|
|
Customer
prepayments
|
|
|
9,534
|
|
|
14,718
|
|
Accruals:
|
|
|
|
|
|
|
|
Sales
returns
|
|
|
4,533
|
|
|
5,403
|
|
Compensation
and benefits
|
|
|
20,904
|
|
|
24,839
|
|
Taxes
and withholding
|
|
|
4,363
|
|
|
9,624
|
|
Other
|
|
|
10,436
|
|
|
8,659
|
|
Total
current liabilities
|
|
|
85,189
|
|
|
94,898
|
|
|
|
|
|
|
|
|
|
Other
long-term accrued liabilities
|
|
|
14,756
|
|
|
12,589
|
|
Total
liabilities
|
|
|
99,945
|
|
|
107,487
|
|
|
|
|
|
|
|
|
|
Common
shareholders' equity:
|
|
|
|
|
|
|
|
Undesignated
preferred stock; 7,500 shares authorized, no
|
|
|
|
|
|
|
|
shares
issues and outstanding
|
|
|
-
|
|
|
-
|
|
Common
stock, $.01 par value; 142,500 shares authorized,
|
|
|
|
|
|
|
|
53,922
and 53,598 shares issued and outstanding, respectively
|
|
|
539
|
|
|
536
|
|
Additional
paid-in capital
|
|
|
51,253
|
|
|
56,854
|
|
Retained
earnings
|
|
|
86,432
|
|
|
63,957
|
|
Total
shareholders’ equity
|
|
|
138,224
|
|
|
121,347
|
|
Total
liabilities and shareholders’ equity
|
|
$
|
238,169
|
|
$
|
228,834
|
|
SELECT
COMFORT CORPORATION
|
|
AND
SUBSIDIARIES
|
|
Consolidated
Statements of Cash Flows
|
|
(unaudited –
in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended
|
|
|
|
July
1,
|
|
July
2,
|
|
|
|
2006
|
|
2005
|
|
|
|
|
|
|
|
Cash
flows from operating activities:
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
22,475
|
|
$
|
16,504
|
|
Adjustments
to reconcile net income to net cash provided by
|
|
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
9,247
|
|
|
7,554
|
|
Share-based
compensation
|
|
|
3,972
|
|
|
301
|
|
Excess
tax benefits from stock option exercises
|
|
|
-
|
|
|
1,865
|
|
Changes
in deferred tax assets
|
|
|
(3,630
|
)
|
|
(1,560
|
)
|
Change
in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(7,527
|
)
|
|
(3,063
|
)
|
Inventories
|
|
|
(3,200
|
)
|
|
(2,793
|
)
|
Prepaid
expenses
|
|
|
(363
|
)
|
|
(4,657
|
)
|
Other
assets
|
|
|
(2
|
)
|
|
30
|
|
Accounts
payable
|
|
|
3,764
|
|
|
2,571
|
|
Accrued
sales returns
|
|
|
(870
|
)
|
|
(672
|
)
|
Accrued
compensation and benefits
|
|
|
(3,935
|
)
|
|
2,572
|
|
Accrued
taxes and withholding
|
|
|
(5,261
|
)
|
|
(2,948
|
)
|
Consumer
prepayments
|
|
|
(5,184
|
)
|
|
2,098
|
|
Other
accruals and liabilities
|
|
|
3,944
|
|
|
1,644
|
|
Net
cash provided by operating activities
|
|
|
13,430
|
|
|
19,446
|
|
Cash
flows from investing activities:
|
|
|
|
|
|
|
|
Purchases
of property and equipment
|
|
|
(13,958
|
)
|
|
(11,565
|
)
|
Investments
in marketable securities
|
|
|
(28,718
|
)
|
|
(11,088
|
)
|
Proceeds
from maturity of marketable securities
|
|
|
13,665
|
|
|
15,125
|
|
Net
cash used in investing activities
|
|
|
(29,011
|
)
|
|
(7,528
|
)
|
Cash
flows from financing activities:
|
|
|
|
|
|
|
|
Repurchases
of common stock
|
|
|
(23,750
|
)
|
|
(12,384
|
)
|
Proceeds
from issuance of common stock
|
|
|
6,468
|
|
|
5,995
|
|
Net
cash used in financing activities
|
|
|
(17,282
|
)
|
|
(6,389
|
)
|
|
|
|
|
|
|
|
|
(Decrease)
increase in cash and cash equivalents
|
|
|
(32,863
|
)
|
|
5,529
|
|
Cash
and cash equivalents, at beginning of period
|
|
|
32,863
|
|
|
15,066
|
|
Cash
and cash equivalents, at end of period
|
|
$
|
-
|
|
$
|
20,595
|
|
SELECT
COMFORT CORPORATION
|
|
AND
SUBSIDIARIES
|
|
Reconciliation
of GAAP Net Income to Pro Forma Net Income
|
|
(unaudited –
in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The
non-GAAP financial measures used in this press release quantify
the impact
of adopting Financial Accounting Standards Board (FASB) Statement
of
Accounting Standards No. 123 (Revised 2004), Share-Based
Payments
(SFAS No. 123R) related to the expensing of stock option compensation
and
are referred to as Pro Forma reporting. These non-GAAP financial
measures
are not prepared in accordance with generally accepted accounting
principles and may be different from non-GAAP financial measures
used by
other companies. Non-GAAP financial measures should not be considered
as a
substitute for, or superior to, measures of financial performance
prepared
in accordance with GAAP. We view these non-GAAP financial measures
to be
helpful in assessing the Company's ongoing operating results. In
addition,
these non-GAAP financial measures facilitate our internal comparisons
to
historical operating results. We include these non-GAAP financial
measures
in our earnings announcement because we believe they are useful
to
investors in allowing greater transparency related to supplemental
information we use in our financial and operational analysis.
|
|
|
|
|
|
|
|
|
|
|
|
Investors
are encouraged to review the reconciliations of the non-GAAP financial
measures used in this press release to their most directly comparable
GAAP
financial measures as provided with the financial statements attached
to
this press release.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
|
|
July
1,
|
|
July
2,
|
|
July
1,
|
|
July
2,
|
|
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|
|
|
|
|
|
|
|
|
|
|
Net
income, as reported
|
|
$
|
10,741
|
|
$
|
7,862
|
|
$
|
22,475
|
|
$
|
16,504
|
|
Add:
Total stock option compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
determined
under fair value method, net of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related
tax effects
|
|
|
-
|
|
|
(845
|
)
|
|
-
|
|
|
(1,601
|
)
|
Adjusted
net income, pro forma
|
|
$
|
10,741
|
|
$
|
7,017
|
|
$
|
22,475
|
|
$
|
14,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic –
as reported
|
|
$
|
0.20
|
|
$
|
0.15
|
|
$
|
0.42
|
|
$
|
0.31
|
|
Basic –
pro forma
|
|
|
0.20
|
|
|
0.13
|
|
|
0.42
|
|
|
0.28
|
|
Diluted –
as reported
|
|
$
|
0.19
|
|
$
|
0.13
|
|
$
|
0.40
|
|
$
|
0.28
|
|
Diluted –
pro forma
|
|
|
0.19
|
|
|
0.12
|
|
|
0.40
|
|
|
0.25
|
|
Weighted
average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic –
as reported
|
|
|
53,405
|
|
|
53,722
|
|
|
53,418
|
|
|
53,711
|
|
Diluted –
as reported
|
|
|
56,245
|
|
|
58,556
|
|
|
56,396
|
|
|
58,582
|
|
|
|
AND
SUBSIDIARIES
|
|
Supplemental
Financial Information
|
|
(unaudited –
in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
|
|
July
1,
|
|
July
2,
|
|
July
1,
|
|
July
2,
|
|
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|
|
|
|
|
|
|
|
|
|
|
Percent
of sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
74.9%
|
|
|
73.2%
|
|
|
76.7%
|
|
|
74.9%
|
|
Direct
|
|
|
10.5%
|
|
|
12.2%
|
|
|
10.2%
|
|
|
12.2%
|
|
E-Commerce
|
|
|
5.6%
|
|
|
4.8%
|
|
|
5.4%
|
|
|
4.7%
|
|
Wholesale
|
|
|
9.0%
|
|
|
9.8%
|
|
|
7.7%
|
|
|
8.2%
|
|
Total
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
growth rates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-store
sales growth
|
|
|
16%
|
|
|
11%
|
|
|
17%
|
|
|
14%
|
|
Net
new stores
|
|
|
9%
|
|
|
|
|
|
8%
|
|
|
7%
|
|
Retail
total
|
|
|
25%
|
|
|
18%
|
|
|
25%
|
|
|
21%
|
|
Direct
|
|
|
5%
|
|
|
24%
|
|
|
3%
|
|
|
20%
|
|
E-Commerce
|
|
|
41%
|
|
|
32%
|
|
|
40%
|
|
|
28%
|
|
Wholesale
|
|
|
13%
|
|
|
88%
|
|
|
16%
|
|
|
62%
|
|
Total
|
|
|
22%
|
|
|
24%
|
|
|
23%
|
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stores
open:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning
of period
|
|
|
402
|
|
|
370
|
|
|
396
|
|
|
370
|
|
Opened
|
|
|
10
|
|
|
8
|
|
|
18
|
|
|
13
|
|
Closed
|
|
|
-
|
|
|
(9
|
|
|
(2
|
)
|
|
(14
|
)
|
End
of period
|
|
|
412
|
|
|
369
|
|
|
412
|
|
|
369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
partner doors
|
|
|
492
|
|
|
121
|
|
|
492
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
metrics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
sales per store ($000s) *
|
|
$
|
1,532
|
|
$
|
1,330
|
|
|
|
|
|
|
|
Average
sales per square foot ($s) *
|
|
$
|
1,333
|
|
$
|
1,207
|
|
|
|
|
|
|
|
Stores
> $1 million sales *
|
|
|
83%
|
|
|
71%
|
|
|
|
|
|
|
|
Average
sales per mattress unit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Q2
Company-owned channels; $s)
|
|
$
|
2,187
|
|
$
|
1,953
|
|
|
|
|
|
|
|
Return
on equity (trailing twelve months)
|
|
|
37.6%
|
|
|
28.9%
|
|
|
|
|
|
|
|
Cash
and investments
|
|
$
|
94,277
|
|
$
|
93,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
trailing twelve months for stores open at least one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRAPHIC
3
sclogo.jpg
SELECT COMFORT LOGO
begin 644 sclogo.jpg
M_]C_X``02D9)1@`!`0$`8`!@``#_X0!217AI9@``24DJ``@````#`!H!!0`!
M````,@```"@!`P`!`````@```#$!`@`/````.@````````!@`````0```$5$
M1T%2:7IE7J#
MA(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&Q\C)RM+3
MU-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$!`0$!`0``
M``````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$"`Q$$!2$Q
M!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF)R@I*C4V
M-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$A8:'B(F*
MDI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4U=;7V-G:
MXN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#]_**IS:SIEG?Q:5/J
M=NEQ*/W-N\H\Q_PZUNSK4NI$1V$Y
M](J`+-%>)_L`>(->\6?LC>$/$GBWQ!>ZKJ-W%=->:AJ=W+<2S'[;,,F27D\`
M#\!Z5Z_J6N:-I"QC5=3M[8S'9%]IF$>\_C0!=HHJGJNL:3HEF;_6-3M[2$<>
M;ZQ\6/BIXNLM"\.>'=/EO
M=8UG4IO+AM+:,9DED/8#%=&0I.:_$#_@Y-_X*+"?]J3PG_P3FT'4#+X7\/Z%
M%XP^(-G:WF#J6J&4_P!F:?F^,;S2(]3\5:_$.DT=E>1FVT9),
M2>5'=1W4QQ%YL5K^]BKH-&^!/P[UV32AX^_X*"?M$2^*)(/^)7,?C'?66_RO
MWOSVVG^58R''FC]Y%+YHB(_>^77Y8?#']KK2M'\R^L?&-M8_\]OM&+50-2\$
M_$^UL+75(H0#/B19RS>6+J+S?*L;\@\>98R7.#+_
M`,\?-B_Y:UO6RGZU#FI(%4]D?TTT4@PZYJIJNL:3H-F;_6-3M[2%>/-N9A&@
M_$U\T=!*>)9H9-Z/T([U3U/7M#T<1_VUJ=O:>:WEP_:9Q'YA_&@#0H
MI.'%5;S5-*T^%[J\OH(X[89FDEE'[OZT`6Z*S[O7]$L=+_MF\UFUBM`O_'R\
MX$?_`'\Z59AN(+B&.:&421R?ZN2.@">BOG#X\6^H?%K]JKPY\`]1\>ZWHGAR
M'P5=:Y>Q>'M7:REO+G[6+:.*22+GRX^>/6O?=!T:U\/Z+:Z)93RRQ65K'!%+
M8_<]/UH`TJ*H:9KNB:Q));:9JMM<21?ZZ.&82;*N2S)"AED/RB@
M!]%4HM;T:741I$6HVYN_)\S[-YH\SR_7'6N1\??&[PY\/_B5X/\`AI?Z?<7-
MWXRN[JWM)H73R[4VT7FL9._2@#NZ*3AQ2T`?`_CCX0V/PRU;QO??M9?LU>(_
M$=IJGB*;48/BUX4U(7-S;6OFYB_==;3ROZU])_M*?%Z;P/\`L=Z[\6_A/K'G
MY\/6TNA:J2\N(KEHHX[H>9UQ'+YG/IS7,ZU^Q%XFU2/6/!FF_M3^.+3P3KD\
MDFH^&Y)HKF;$LIDFBCO9,V@B\KRCG_IGQ0!\8V_P-TO5/A2L7AG]B;QM+XGN=-%WIWC_`/X2
MJT^W2:A)%^[U#S?M6<^9^]KZ[^#MYX\O/@?H=S\6+%K?Q&=!B_MV*3M<^5^\
M_7->40_L,^*+7PXOPMTW]J?QI;^`E3RU\,BWMC="WQC[-]NQYODXX\NO=-'T
M#3],\/0^%=/,B6MI:+;VXEDDE*QB/8`7D)\S\:`/(_\`@FS_`,F5>"/^N5__
M`.G"YKYZ^%UK'\(_B7?W_B2_LH+K^V;4V^CVL4W[NPCCFE
MB\ORNYZ\U]?_`+/?P;T_X!_"'1_A%I6N7.HVVBB80WEW%LDD\R664Y]\R?I7
M#>*/V1=?M/'6L>/?@5\>?$'@.7Q)>BY\1Z=9V<5[:W4N?WDL<49/M
M0!#^Q%X?^+'@OPWXD\$^._!>M:+HMEKIF\%V?B#48KFYM[&0#%KYD4LH*18&
M,_\`/3VKCOAG\)O!'[57QY^)WC7X\Z3_`&^/"?BN70?#GA^_ED^S6%K'%_KO
M*Z9ESG/UKV_X'?!7P_\``GPK-X6T37-6U:2^U*74=0U77-0-Q?,_%[6/`?B/5(8H-=GT^RBNK74_+SY>%OAU]MCTN[U"6\BL+G4))8K,R<^5;Y_U40/85\]
M7W[)O[.^K?MYWG@#5?A)I?%?0?P7^
M%%S\(?#=UI&H?$+Q!XGO[_4)+W4M6\079E>2:3J(XQB.&(8XCC`%E?RE_\`!?KP9\2O%W_!:CXV>*_#FJVELUEJNCP037,LG^C>7H&E]#Y?
M.8Y?]7[GK7]62*8%6)>PQ7X??\'%W[#?B*']KO2_VDO"EB?[+\=Z%';:C+%!
M_JM4M8O*_>8[2Q?9O^_4M?2\)V6;*F_MG+C&Z=+G/R*\&^+/V@_#WBG1YM)^
M'6DZIJD6HVLNF3+(17I"_LX
MWDD4?7&G^$_WE?!4W[,=]J44D,U]+/C'_@HQJW[4^K7_[=/P5M=)^(
M^J6=A*?!GQMU>^'B?5)M
M.DGM8O-T^PLYI?+CEB_Y:11?\]*^V/VB=`^(O[2OQ\\4?'WXF:YYGB3QCK$N
MHZQ%%#++%%_RRBBB_P">L4444447_3***E_9\_8A\8_Y^$_ASI7^D_P!J
M:]%;312P_P#++S?_`(U7T5/"ULLP/M'[/W*9@L;A<37]G3J'],G[/NO:AXJ^
M!OA#Q'J@'VF[\.VDDH_Z:>4,UX5\)_A9X)_:I^.WQ-\:_'G3(_$`\)>+YO#O
MAWP_J$F;?3;6(?ZT1],RYS^!KZ1\%^&;'P=X2TGPCI_^HTK3H;:''I%&(_Z5
MYA\0?V3I=2^(]_\`&3X,_&'6O`?B#6(8H]=DT^"*YLM2\H'RY9+64>7YH!QY
MO6OQ:3NVSZ!;'8?!GX'^`_@%X9N/"/P[AO;?3+G4)+R/3[K49;F.U,G6*+S,
M^5'[?6O!/V5/@O\`#/\`:H\*ZQ^T#^T%X?C\3Z[KVNWUN+359I)(M(MHYC%'
M:Q1D_NL`9/UKWGX+_"B7X0^&;C1;[Q]K_B6]O]0DO=2U7Q!>&5Y9I.HCC_U<
M,?'$<8`&:X77/V0M>TCQKJ_C'X#?'C7_``&WB2]^V:[I5G90WME+<'_6RQQ3
M?ZJ63',@]/PI#,/]D:WN?AK\:?BC^S3HFKW=[X3\(S:7<^'8KF7S#IGVJ$RR
MVH&\U[7]9N/-O=4N?^
M>LLG>IO#WP5TWPY\&/B+![UZ/X$^">E>`?BK
MXV^*=AK=U<7'C::QDNK254\NU^RP^4-G?DM?M\V?@C5/AM976EZOX$O
MM>U.UEEE*37\FH#-T?WO7K7=_MP7^J:Q=_#WX*Q>(K[2M(\=>,8].\17FGS>
M7)+:^4;G'X5Z1??!?2+[]H&R_:!;6[@7ECX7ET5=/"#RC'),)?,^N:
M?\;/@MX'^/?@O_A"O&PNHTBO(KRRO]/G\JZL;J,@QS128_=R#^M`'@?[6/[-
M'PF_9\^!\_QQ^!&AQ>"O$_@J:VO-(U72WE'G9FCCD@N3G$T<@D(/F9]>*]7_
M`&G]1E\3?L8>,]5O;$P/>>`[JYEM\Y\H_93(1^%8(_8SUSQCJ6G1?'S]H?Q)
MXXT/3+R*YLO#][96UK;2R1\H;KRA_I7XXKU7XI^`;+XH_#;Q!\-+V]DM8=?T
M>YL9[J(XDB$L1C\P?3-`'EO[&O[.7PQ^'_PX\,?%K3-!-SXIUCPK;2:CXAOI
M9);F7[5%#+)%D_\`+/(C_P"_8]*X[]JC]G7X,^*?VI?AA>Z]\/K>XN?&.NW\
M?B.4RR?Z=%;:?^Z$F/3RXA^%?1O@/PG#X$\$Z-X*M;J2>#1=)M[*&:3[\@BC
M$>3^`%<;\>O@-+\9YM`UW0_'VI>%O$'A?4C>Z/K&GPQR^698S%*DD4N8Y08S
MWZ?S`.U\'^#_``M\/?"]GX*\':1#I^EZ?;^5:6D(Q'%&*V*X70OAQXGTY-`E
M\0?%'4M7NM'LO*O+F6'RO[0E(_UDD<>!'7=4`%%%%`!1110`4444`%%&1ZT9
M'K0`4449'K0`BGC)[5YY^TC^SYX'_:;^%6H?"SQY:C[/=#?:W4?^LM;@?ZN:
M,]B#FO1.`*3)O^$=^(OA3[-;RS?\`
M$N\0&:7^S;G_`+>?^67_`%REK(A_9C_XDUY8Z5?:;%I=_-:R:E#:>)(O*O\`
MRI?-M?M/[W][Y4O[V+_GE+7[,7^FV&KVCZ?J=K%<6\H_>PS0AT0UYOJ_[$
M?[(VNZF-;U;]G3PE(/.\N'1/"6G64\`(5OX!&IV5EJ%O)I]_;QS021[)H)DWJZ>A!
MJJ>E0RG_``SXV_:;^(_[1W[.'P-U[0/"G[9NI_$+Q;<^.O!-K9QV/A_PY'XD
MT;3]7U:TL)(HHC%%82_:?])^R_:8HL'S?WLOECR_--:_:Q_;0^(G@CX`+\/O
M&/BZ6\^(/@_QCKVJGX::3X5.L7=K97^G1::+I/$$L=C:W,=M>C[7#%)^[NQ+
M''F..OMCP/\`LT_LX?#KPL/`?PW^`/@?PYHTFMV^J+I&A>%[6SMOM]K+'+%=
M>5%$$\Z*2&.2.3&08H\$8!J+QS^R7^R_\6+"TT/XJ?LY>`/$UC9:I>7VGVOB
M#P98WL=O>74S37,\22Q$1RRR_O99!S(^2>>:[:.*H4U[\/ZL'OB5J!\)7L>9:I;/\`:!@B8_9H8XLR`YBBCCZ*,*.)H0^P;JG6M\9\
M0?M*_M)?M%?V@=7\>ZII-U\-)]#\5V/AW0U\1Z9+X@\71:/+?VKM$^(MC^T';7,NI>
M&+#1+2UM-'B&A76K_P!H:.]L/M7V&*6WBLI/MLEUDWUK^^BD_=S;?_!)+XG?
MM0?&S]FO1/C1^TOKWCK4KCQ;X+\/:WIU]XITCPS::=--=6GG2R:8NB2?:?LI
M,D?_`!_QQ2^7Y7&3+7O_`($_9Z_9_P#AMXLU;XE_##X'^#_#^N>)9A)KFO:)
MX;M;.\U0F3S,W$\48DF_>$O\Y/)^M=%X6\*>'_!GAS3_``EX,T&TTO2-*LH;
M33-+TZTCM[:VMHT6.*&*-,".)$&%0``<`8IU<33G"<8Q_K^OR'"%0^'/'7Q2
M_:]^#W@3]L#QS(M?;X*^$-0/@ZUU?P=H44<%W_PBUIJ\5U(T-I%YIBE
MFP/,/E$?ZS(IW[1_[;_[5ZV?QW5O)'=75C(9;:.**,7,HBCEA.?+&9*^T]2^''PZUBRU_2-5\`:-<
M0^*XO(\4Q76F12+J\9A^S;;K*_Z2/*`BQ)G]W@=!BJ/CCX*?![XGV.K6?Q+^
M$_AK7[?Q1;VMIK=GK6A6UW'JEM:R23VL$XEC/FQQ.\LL:OGRY)&(QDUI#%X=
M-<\.W_MOYZ_>95,/5J?!,YW]GR^^+0_9]L]4^*&J>(&\211WTD\WQ&BT6WO8
M\2RF/[3_`+)8^6,1X\J3/E$>9^\W5\I?!C]M7]I*#P7I/A7XI_$O49/B-_
MPM#P)9^--&UO0]':VL++6R/,.FWFE2RVUWIER8KG[++)_I<<7$W[W%?;?PU^
M$_PI^$'A*'X"KX<:#X8T.(220Z!X>TB*RLX_,/S_N80(^3UXKF=/\`V//V
M3;3X;ZA\&M,_9>^',/@[4M2^VZIX2@\$6$>FW-U\O[Z6U$7E22_)'^\().P>
ME8TJ]*%2?-`TG3J^SL>*?%3XG_M+:O\`\%#[3X1_#G7_`!TG@K1O"_A76M3M
M_!VF>&9+(&^U75H;DZC)JLD=U]FDBL8A_H`EEQYV/WGE"O,_^&G_`-LK1_@S
M^TK^TGJ7CGQHECX)\._%%_`MQJ^E>%$\+VMSH>JW]M8^3Y!.KRRQQ6/[S[5'
MY)/VGD_N:^L)_P!CK]D&\USPYK#?LM?#F2^\(1PVWA:YE\#Z>9=%BAE,\4-H
M_DYMDCDD:5%CV@.<@@YS9L_V1_V5K;Q1XA\=VO[,7P]MM<\5VMU;>*M;B\%V
M'VG6HKD_Z5#=3>4)+I)<'S1*3YG?-:0Q="UN3_R4Q^KU>M0YG]BF_P#VIK_P
M+K,G[36GZS'(FNG_`(163Q1'H\>L7&G?9;8O+?)HLLMB)/M1NO*$)_U(A\P"
M3-?-O[+W_!07]IGQKXP^`_P8^.4UI!XE^(.L7FJ_VI8:?'%;^+?#!T#5;^.2
MVXQ#<6-]%:6MU&.?^/:;B.^$=?H*,X!4\>EB0'POOC\
M/"WTF*/^QP\7EN+?`_<9B.P^7C(..E1#$4GS\\`>'J^YR3/A3Q'_`,%!/VB+
MG]COPS\3/#'Q.TD>)[_]A?5/B/K%^=(M2+?Q%'#I9MKN6'I#%YLU_P#NO]5^
MZE_YY4FC_P#!3?\`:(^(?QNTCP?H&G6.E:?X5^%?BNW^*$+V/F1#X@:;%$]S
MI\;'*8IH]5BY_=XU"36I_AWH4US*;O[1=2
MZ3$9)#?@']M?]M_4/
MV5O&=MXS\8>(8_&\%[\+;CP[>2Z5X:&O26'B75[6QN)88XI)=(\J4_;H[3[3
MY4HQ_I/E#RI:Z3]K']J3]LW]G_P;\,;/1_&WCM-7O?!?BW5?$-UXGT#PH\D%
MU:ZKHMI8S:Y]EE^RVND1?VD?M,UA+YL,.)9/]7*8_L/3?V1?V4=#^&^K?!+1
M_P!F;X?VG@O5+J*ZUCP;9^#;&+3+R:,QO')-:K$(I7!ABY8''DQ^E7/#_P"S
M?^SCX2T&W^'_`(2^`?@W2]*L=.O["VT;3?#-I;6L5A?RQR7MND448C$-S)%&
MTL6,2F-3)DBJ>.PWM?X?]G^'82-+#"*.*+RIOWBCFCFE_L+[5Q;2R?9I?+
M%H,#_2?-BK[^\3>!O!'B_P`*77PU\6>#-)U;1+^R^RWF@ZAID5Q9W%MC;Y"K"33+:Z/
MF9EBM3%Y44O[V3]X!G]])ZFL*.*I0I^_#S.B>'JU/^7A\R_%CXX?M.>#O%/B
MW'[6,'@"#X7_`+.OACQC>0_$30=&N+6^U.[N]>CNFUC[+CR@?[,M8C]@N8XL
MRS>5G]V:^P/A9XGU7QU\,_#?CC7/"5WX>U'6-"M+^^\/WX_?:;++%')):RX_
MY:1%C&?<5RS_`+('[*
GRAPHIC
4
sclogo2.jpg
SELECT COMFORT LOGO
begin 644 sclogo2.jpg
M_]C_X``02D9)1@`!`0$`8`!@``#_X0`R17AI9@``24DJ``@````!`#$!`@`/
M````&@````````!%1$=!4FEZ97(@2%1-3```_]L`0P`"`0$!`0$"`0$!`@("
M`@($`P("`@(%!`0#!`8%!@8&!08&!@<)"`8'"0<&!@@+"`D*"@H*"@8("PP+
M"@P)"@H*_]L`0P$"`@("`@(%`P,%"@<&!PH*"@H*"@H*"@H*"@H*"@H*"@H*
M"@H*"@H*"@H*"@H*"@H*"@H*"@H*"@H*"@H*"@H*_\``$0@`C`)#`P$B``(1
M`0,1`?_$`!\```$%`0$!`0$!```````````!`@,$!08'"`D*"__$`+40``(!
M`P,"!`,%!00$```!?0$"`P`$$042(3%!!A-180'EZ@X2%AH>(B8J2DY25EI>8F9JBHZ2EIJ>HJ:JRL[2UMK>X
MN;K"P\3%QL?(R;GZ.GJ\?+S]/7V]_CY^O_$`!\!
M``,!`0$!`0$!`0$````````!`@,$!08'"`D*"__$`+41``(!`@0$`P0'!00$
M``$"=P`!`@,1!`4A,08205$'87$3(C*!"!1"D:&QP0DC,U+P%6)RT0H6)#3A
M)?$7&!D:)BH*#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&
MQ\C)RM+3U-76U]C9VN+CY.7FY^CIZO+S]/7V]_CY^O_:``P#`0`"$0,1`#\`
M_?RBBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH
M`****`"BBB@`HHK(\1ZWH/AK0KS7?$NI06>GV-K)5%;QQC?))))QY
M8`&3Z8HW=@-54QR:^=OVY?\`@IS^Q3_P3P\/_P!O?M0_&_3](U&6%9]/\,6.
M;G5[^',NR2*UBS+Y>8Y?WL@$7[J09XK\^?\`@H9_P6E^,7[7?B%/V8?^"1'Q
M":QT(71MO&GQV2`"V_>6DTGV#3?,C\P_N_FDNHO*EB\O]U(,>;7EO[-_[#OP
M#^!GC#_A;%]97/C+Q_?7<5[K'Q'\;S?;=3NKF7$MS=12_P#+*2647,OFQ?Z5
M+YLOFRRUZ^"RJK7J?O-#*I.Q[IK7_!Q!^U_\?=7CM?\`@GM_P2:\<^,-$CAD
MO)_$/CNZ_L2VO;"60?8KFVD(\O$L>9.9/ITK2N_VHO\`@Y0^*&IS^,_A/\"_
MV=?!>DZA;6MS8^#?%NKW^HZEI@,4?FQRW,)BBD/F^8<#_5D^5GC)]=^&/B30
MYK"/2O/CN8[7_GE-%_F*O9-.^+7PS^'OA:X\5>./$>D:!I=K_P`?FK:Y>165
MK:_\\O-EE_U5>A3654?S.G_P#!2K]@3XK?"2ZCN+FWFURST(WND75Z)1Y=I;7)\OS#Y.9/,'_/(_6O
MMOQ3X[\*ZE8/]B,)/#?V"3_A(Y_,L_]5-^Y\R*6*7_
M`%L4L7E>5Y7[KRO_`-[6D\+E4U:I3U\C/#8G%U?XA]&_LH_MM?LK?MP>`1\3
M/V7?C7HWBZPB1?M,>GWQ-U8F2:6(&YM9,2P;I+>7R_,4"3RF\O(KV8$..17\
M^GQ0_P""=7A'X8_%>U_:D_X)W>*(_@]\4](UB*^T[6]"/E:3YL#M]H?I]11
M17EF@4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%
M%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`444
M4`%>%?&[]NGP%\#/BWIWP@\1>"MIWEOI>G
MS:I=G$5M%)))]!S0!&T\PP:U?"2&WNCFVFC_`'7[VYQ+&8I3
M#Y7_`"U%?S(?LQ^.-6G\3:I\;_'6NWM]K?BRZDN->+_7?ZZ&:NHT;Q)!!+Y\$_ER?\]8:]"I]0Q_[SVGLZ@OWQ]L>&_'E]IL
M7GZ'KDD=O%-^^A\[]U7KO[''@B]_;/\`VD/[2\<:4NI>`/A"/,U$R0?Z+K'B
MBZB_T:UR>)8K6PE\Z6'_`%7FW]MU\FOSNTWXG?$W^U-+T/P/!+J6N:SJ46FZ
M#I,/_+_=74L7E1?]_?\`R%YM?N7^Q5^S#I?[)?[.7AWX+)>_;]3L[87GB?6V
M4"75=8N9#/?7;GOYD[R$9Y$7EQ](Q7GYU4JTU3IS'36A\%>)]5\8?LG?&+Q)
M^Q1-?2^7X7ABU'P3=WL4O_+6L'Q)XPU74
MOW^N7TMS)_RQA_S_`*JOJG_@LM^SK?\`Q!^`EK^TE\/="DN/%WPJ,U['#:C]
M[J.ARX_M.Q'_`&RCCN8_^FUI%7Y3:E\;/%6O?\3S^W/-M[K]Y#_RUBKIRZO.
MOA+48>SJ0_Y>!46A[9XV^,_A31XOW]_%+)Y/F0PVDW_;*OD7]JSX1Z%^T;I4
M(LM2N-.UW0]0^V>#M=CS%]CE\N&/RI(O^>?E11C]U^]BECCEB\K][%+T5[XD
ML9OWT]]YLE(M+B\J(W*:!1110`
M4444`%%%%`!1110`4444`%%%%`!1110`4444`%>1_M'_`+7GPL_9ATZV;Q<\
M][JE[&7T[2;,IYLL0X,AY^2/CK[5ZY7YP_&G1K#XU?\`!4>3P1XQ@%QI4NO6
M&GS6DLN__18K"*;RO^NW_``3_`."G.E?&3XLZ3\-+#X07]N=:OO(M
M[N/4HI1!%Y(D\V3V_P!;_P!^S7U?7.Z1\,?ASX=NH+[1/`FC64]LNRTEM--B
MC>(>Q`KHJ`"BBB@`HHHH`****`"BBB@`HHKR:]_;#^"MG\^&=I;[4?^$F_
MM&*S\G^S9/*\V2'S1^]Z?ZOG-`'K-%%%`!1110!Y%^T1^V'\'?V=$33/%NHW
M5[K0BO#]/_`."Q7PYGU%(M4^#6MQVYYEDMM0AE
MD@C]9(NOZUX/\2M3\+:O_P`%#-5/[2-OLT"+QW+;ZB+O_51V$7_'KYO_`$R_
MX]I?^VM?.?LF?LD^&?V
M7M"NX+'Q#=ZOJNJ+$=3U*X7RHY3'P/+MP2(OH,U['0!B>-_'O@[X:^&KCQ9X
M\\06VFZ9:C,UW=RX`KY8\:?\%>/A#I&K#2O"7P\UK5X-H'V^[NXK*&4=Y(_]
M9(1^`KS3]N7QWXF_:2_:PL/V%=0NP?L:ZJ8Y+6;_KG<1'!_2OI+AQ7QO\`M^?LC_!>7X4ZC\8?
MACI.DZ3KVD`7-U#I\OEI?6WG1^<#&./,QC%=O_P3-^-FO?`R:1XS=I-5\
M)ZD--,\PYFMO*BDAE_4C_MG0!])5^>7_``41_P"3UM#_`-5_JM+_`-;_`-=:
M_0VOSS_X*)?\GKZ%_JO]1I?^M_ZZRT`?H9117-?$[QQIOPS^'FN?$+5T:6VT
M?3)[V6(2!/-,<>1'S_?QC\:`.2_:$_:V^#7[-=A$/'NN/)J%R/\`0M&L%\VY
MN?H*\";_`(+$>`CKLMBOP3UMX(I,2R_VC#Y@C]?*ZUY%^RQ\%%_;4^,>N_%O
MX_>)_.L;7RGU**.;[.+Z67_5VT8ZQVOMW_6ON6+X(_LQ1>'D\*V_P[\(#2XQ
MQ:?8X<"@"O\``/\`:C^#W[1NG23^`];E2]M5Q>Z-?0F*ZMCC'(Z'_@!KT^OS
M1_:L^&]C^Q7^TGX?^)?P%O/]'OX);S3[.*7B*6*7][%+)_SR_>Q?ZVOT7\)>
M*M+\:^$]*\::%*);36-.AO;,GO%+&)$/Y&@#7KR']H#]L?X)_L]'^S/%?B.X
MN]8*GR=$TB#SK@Y'&?\`EG%_VT(KI?V@_BC;?!?X,^(OB7);+-)I6G&6TBQ_
MK)?^60/_`&T(KX9_84_9E_X:I^(FO_%CXV3/J-A8WF^Z!FE\W4[^4?\`+23O
M%Y7;_IK0!Z7;_P#!9+P`][;VZ_!C5I$FY/DZM#))&GJ17T9\!OVH/@_^T-I\
MD_@#Q#_IUL/],T6[_=W5K]8ZN3_LU?L_76C?\([/\'O#QL_*\O[*=,BZ5YE\
M#/\`@GW\-O@1\8-0^+&@ZG>S1[B/#NE9V1Z8LG^M+X_UI(_=Y/2/CWH`^B:^
M9OVB?^"AWPG^%'BS7O@MK_@GQ/ZBAG_MN"*,RF6+S08_*EER/QKY"_X)<_";X=?%[5_%EC\6?!&E>(
M$M-.L);/^U;/S/+\V6[\WR\_]LJ^\/A[\)?AI\)K.XL/AIX(TS0H+J;S;N+3
M+01"63U.*`.FHHHH`_`+_@\/_:7M[OXL?"/]DV77K.:TTW3+OQ)KMK93R)?6
MDLF889'/FB/!CC>2.,QY\R/(DYQ7Y5_!C6U%K=>"]2MH+&_LKJ6Y6PMA_JX9
M/WG'_?S'X15]N?\`!TWJVCZC_P`%6-8M;B]2Y6#X<:%9SQVFI2I]FD_T^7$L
M<<Z=9:R_B*RU.+[7+-L^U6.M>9+B\2Z>-/H+3=2GT>_COK'_615UFF_'+Q59_9X/L\4OE0_OO^>LM
M?/4'[0B:?)NUK3TEC^U^7YO]H_O?^>GF^5Y7^JK:L_CWX"FEC@U6]ETV23_5
M>9#+_P`]?^N5=V(P.$Q:]I.F=-/$4_L'[1_\&]'[-U]^TG\9[_\`;&\:Z?*?
M#?P\E_L_PS;2XQ<:Y+&)99#W_P!'AE0#_KYC[B4']JLC!S@&OYHWT]I#J/@W[3+%]JE-U)_I&?\`GK*?*\W_
M`)ZB+_ED*]+B_P"#GK_@I+<11S0_$7P:<_\`5/?_`+;7Y]C,
MPU+XYG]'-W9PWT+P3V\5=/\FOYQO^"IWP5US_@GI^UGX@^"^E6$
MH\+ZS%+K7P]E,/[K[!+_`,NO_;K+YL7_`'Z_YZT2_P#!S]_P4_O9OWGFUR=[KVJWD7D3WTGE^3Y?DUYS-\>?",\L9T.WN;V.4>7_
M`*J6+][_`)\O_O[69XE^-FH'1-3EM]#^Q^7+]GAF&KQ^;YG_`&RK[7#Y3@\+
M6IPI_;./ZW3]KR5)D'Q@U.*_UX-+JUK)!I["`26TFR2VE\V+S(O,\S!D_P"6
MO_3+RZ_>K_@U1_:UU'XA_LOWO[/WB*>3[;X)U>73H8O(BCCCA_UL<47E8\TQ
MB7]Y7\]5AH%MIT=QXD@M["VNO*%Q$8K_`,SRI(^?W?[O_GI_UT_YYU^IG_!J
MY\3M6TK]JOQ=X!TO6I)=%FL](N8;+<)!]J_U4LOF<2?ZJVZ?^0JYL^PU*MDO
M/4_Y=\YE@*]*IBIJ!_271117Y>>T8_C#QIX6^'WANY\8^.-5)J-S=Q6,7_`&S!S(?RKRO]OCXC
M>-/V@?VG[#]F[PG/)_9^F:C:Z=%'$18*$?ZROGO\`:*_X)U?!
M/X\7%GJNC6H\)WT=S']ON=%M(Q]JMA_RQ,9_=_CBO;/`?@O1/AWX1L/!'A6V
MFCT_2[1+>SCFGDED5!_MR')H`W:\'^//[?OP'^`.L3^%;_4;O7-;MI3'-IFC
M-$[12_\`/*5Y)`(OQJ;]O?X]ZE\`?@%?:SX>N!'K6L3#3M(DXS%)(3YDW_;.
M,$UX!_P3Y_8M\+_$K0YOCY\;;$:U;W>I2_V#I5Y_JOW4LL4ES)_SU)[?2@#I
M=*_X+#>`9[PV^L_!?6K6&,?OIK75[:Y>+ZC(S7T;\%/VCOA+^T%I4E_\.?$@
MN9;;_C]T^Z'E75M_UTB[4WQ;^S-\!/&_AW_A%O$7P@T&>SBA\N!1I<221_[D
MF,BO@[XZ_#[Q%_P3V_:=TOQ'\+M9G_LNZB^VZ.)3F26+_5W-K+_SU['_`+]4
M`?IE6+XV\6V/@?P9K/CB^LY+B#1].EO)8K<9DDCBC,A`_(U)X1\1V'C/PMI?
MB_33_H^IV<5U"?9X\C^=9GQIMH;_`.$'BJRFY2;PY?QR_0VTG^-`'BWA#_@I
MK^S[XC\(:YXQU.TUK08-&BBQ#K$$7F7\LOF^7%;B&67)/E'\ZX:?_@L/\.XO
M$'D1?!+Q)+IO_+647=L+L?\`;MGG_OY7SQ_P3W_9F\._M#_%?R/&Y%QHGAW3
M8KS4;6.0QBZ,O^JBX_\`(O\`URQ7Z&>)OV7/V??&G@Y_!>K_``FT5=.\GRX1
M::;%%+&/]B2,9%`&9X7_`&P?V>_%7P(>*?^"O\`\.]-U*6W\._"#5[VWC&?,U#4HK:1X_41@2&OE3X0_`R^
M\:_M*VO[.-QJMQ]C?Q'=66L36T^!Y=C++YDI(!Q)+%%+Y9[2U^F7AO\`9A_9
M]\+^%SX.TGX2Z!]@,/ESPS:;%)Y@_P!O(YH`P?V>OVP_A3^TD9]*\)37>GZS
M:P&2[T358?*N!'VECZI(,XZ?RKU^OS.\:>!++]D?_@H9H7A[X=#[+:7?B.PN
M;.'TL+J7RI8O^_OF_P#D*OTQH`\B_:=_;`\`_LJPZ2/''A;6]1DUCS1:0Z'!
M#(08QDY\V6+U%?!=Y^TAX7O?VWO^&DHM"U;^P/\`A(XM1-G]CB^W>5%:>5_S
MU\K_`,BU^DWQ#^"WPD^+(M1\2_A]I6N_83FS_M"S$OE?3-?G[J/PQ^',7_!2
M_P#X5E!X(TW_`(1__A+XK:;1/[-B^S>5_9_FT`?8W[-W[:'PY_:CU[4_#O@W
MPMK^FW6E6<5S.-6BM1^ZEZ8\J:7O7L]<=\/O@/\`!SX47UQJGPU^&VD:)<74
M8CNY=/LQ$9$'..*W_$OB&P\,>'K[Q'J7^HL;26XF/M&,_P!*`.1^.'[1_P`*
MOV>=%35OB3KODR71QI^GV@\VYNC_`-,XN]?.NO\`_!8'X?Z==#[%\']7EMQ_
MRUN]7AMI/^_9KQ3X)^`_&'_!07]IK4/$7Q&U2YBT^U/VC6/)F_U5K_RRM8O^
M>5?>OA;]F[X#^#O#G_"+Z1\*-$CLSS-YMA$\DI_YZ/(>30!P'P`_X*$?`3XZ
MZRG@V*^O/#NM2Y\C2O$$)B-S_P!%^*?V[_A/X-^/7_#/NN:#K\6I1W<4<^J"
M*V^P0B2+S1(\GG>8(\=_+ZU[I7YA_MT^%=4US]M_5/"NA^8]YK%Y86VF^TMU
MY47_`*-\J@#Z"\:?\%9OA!H.NOI?@GP'JVO6D,PC&K/-%;VTO7B,GK_JZ^C?
M@I\3K7XR_"W1/BA9Z'<:;#K5D+B*TO'_`'D<9]:\Z^#W[!_[.WPI\'0:#?\`
MP\TG6K\P?\3'6-4LQ)+]>PZ#H.D>&-(M_#WA[3(;.RM8O+M
M+2UB\N.)/0"@#S;]I?\`:S\#?LQ6>E77C#PMK6I?VS++';C1X83Y?EC)+^=+
M'@5\$:E^TKX'U+]M^/\`:@LM+U?^PXM>BO?[/_=?:O\`CTBM?^>OE?\`D6OT
MI^(7P?\`A;\6HK>'XE^`M+UN.U.^T&H68D\H_C7P%XF^%GP[M_\`@IE!\+8?
M`^F?\(Y)XBM;'O
M!'BVRU+5!(;.74;2U\D8_P">GE7)Q^5?1U<'X2_9F_9]\":Y;^(_!WP=\/Z;
MJ%J/]%N[+38XY(A[$5WE`!1110!X1^T[^P7\'/VD+O\`X2J]671?$"C_`)"M
ME")/-_ZZ1=):^7/&W_!-+]H_X,3/XQ^$OBNVU^.R'F"+1)9=-OOW?_3/S?*E
MJ_\`%KXR?MG_`+)_[1.J>./'%]V/F?NHHHXL^5-6OXP_
MX*[^(M7\*MIO@[X0I9:O>VI2"YFU>2Y$7_37RXHW<0QYAE]_W@KZ\KX?_`."6W[-7C?P[KFH?M!>-
MK.ZL+2^LQ!H-K=1>3)+YA!EE,?\`SR_YY>U?<%`'Y4__B^.GPFB>3Q#86GEZEIT+;);Z./_52QG_GK'VKS'X4?\%/
MOBU\+M,_X5W\8OAH=:U&Q_=1S75Y)IUR1Z2^=%_K*`.AF_X(^:J(WS^TS%Y9
MBQ+YO@^7_P"3Z]Q_8X_9'N?V3])UW2)O'T.O_P!LW=M)YT>C_8O*\J+'3S9<
MBOE;XO?MJ?'W]L^V3X/_``6\$2Z=9ZI-^^M=/\RYNKF+_IK+_JHHJ^T/V8?A
M]\2/AK\%M)\(?%+Q*=7UF`?O)FF\PVT6?W'_`/KCI?\`Z-EK]#*_/?\`X*!6=]-^W#X?\BWEECEATO\`U7_766@#]"*\
MF_;./][(/^_<9KUFJ][8V^H6SV-]"DL$L9
M26*0??%`'Y9?L8?LFP?M8C7(8/BW%X6U#1C%(-.BTC[;YL4L7^M_UL5>[P_\
M$?=&!YAM+BV
MLY)3#%UDM;H=HN_FUVB_\%A[V"T_L^X^!:2ZAY6?.AU[$?\`WZ$4DM`"S_\`
M!'N_:W^QR?M,@Q_\M83X0ED_]OZ^O?A'X,C^&OPM\.?#J35?[0'A[0[33?M[
M0>5YOV>$1>88^D>?+[5\,?#*\_;%_;6^.FG_`!1LIKGPQI>CRQ>5JL*B.VLH
MO-\SRH_-_>77F\>U?HA0!X1_P47TJ[UG]DGQ0;&,2?9OLT\BYZQB:/->=_\`
M!(/5M+/P4\3^%X;B$7=IXPEN)H8QUBEM;7RI/Q\N2OJ;Q9X6T/QOX;OO"/B6
MQ%Q8:E:26]W`3_K(SQC]:_.C7_A?^T3_`,$Z/C)/X^\(Z?+J7ANZGD2'4!:&
M2VOK:0@B*Y\K_52Y'_QJ@#]+**^&+O\`X+#WEOHL=N/@1#_:-O^10UC_L%W/\`Z*-:]9WB2PDU30-0TJ(_/=6LD0^I
MC(H`^(/^"-W_`",GC3_L`Z7_`.C;NOO"ORY_9S^-_C?]@+XDZ_X<\8_#N2^N
M+F,6>HZ?=S2VTG[K_52QR>5+^Z_>_P#D6OLS]CG]K^^_:O;Q'!TT6TT:>
M*.V:*]^T&82`_P#3,4`>]4444`?S7?\`!R#\+O"FH_\`!5KQ-JUUHEC_`*?X
M"T;[6D%KY?G28NOWLI[R_P"J_P"_45?"P^&WA,>7C1[/]U-'_P`NG_//_5U^
MPO\`P=`?LW?V9\3O!_[4&AZ'^[U2S_L77KN&S_Y:Q?O;7S9/^_M?E!Y,\/\`
MRPS7ZCD$:M;*:;_`*V3]Y_JOWG_`$UKT3R9O^>,GY5%Y-Q_SP%>
M_?&4OW=C!8;#IW3/J;_@EU_P;N:/_P`%-O@)JOQ@L/VN=*\*)X?\8W.A'1W\
M%7.L3KY<<4GF2R?;[0?\M?*XCX\G_6'RZ^BY_P#@R?>X\\)_P4FMX_,F\R+R
M_@N_[L?W!_Q.NGZUYK_P01_;U_
M^]^P2_\`?V26+_MK7]%^U0,*<5\)G&?<1Y3C'0A4Y*?167^1Z-/#T9'X+R?\
M&2KRB//_``4JB'E_>_XLU)\__E:KY4_X*H_\$&/#'_!+?PSX/N+G]K:Q\<:A
MXVUN:&'PS!X*DTBY%I:VLOG:A'++?W,9$4US:Q>6<9-S&>DWB\R>:63"1IZG\J_F*_P""JW[8-[^WC^V3XD^-UB+C_A&+#_B0
M^"XI!B(Z9:RR_OO^NLLLDDO_`&UJN'\SXBS;,+>UNOZ\A8BA15(^*?#O[/FC
MZ?;)%JNN27/E_O#Y7[ORO]5_SR_ZYG_R%6W_`,*D\"Q33F'0;2..Y.R6+RND
M==-Y4WI4GDS?\\9/RK[:GA\11^!'']4PSZG&S_"7PT4@M/[/@EM$_P!7'Y?^
MKK]`_P#@W-^$=IX,_:YU#7-&TTII=U%86_)S^]BEEE_]J5\7?8Y_-_U%?JG_
M`,&Z7P4O;OQC_P`)E?P2?O+O[3_J?]5%Y7[JO#XHGBJ.4_O"\'A*=*K[C/V\
MBSY2>;UJ6BBORX]8_-J'4K?X\`!4N2?Q=OCCF^(\OV>7M_I44OE?\`HVOT
MEKY$_P""BW[&VM?%FXMOC!\*](%YK45I]FU;28.+F_AS@2Q?]-8^U>;_``O_
M`."J/Q3^'^@)X/\`BU\+3K5[8Q>7_:,4\UE)_P!M1+%+^\]J`/T#HK\\/&W[
M<7[3W[5?BFP\$_`#PAJ&B"UU"*5(]*_TB266+KYMSY7E>5YO_7*OO'P%'XSA
M\&:9:_$&^LKG7?L4?]KS6$12WDF_Y:&,'MUH`^9/^"N>EWM_\'?#.K6T4DMG
M:^)?*O1">:#?31PSS2V\DFG:EY7G".6*YC'[J3_`*9?ZT]9
M:`/TRKX'_P""QNNVEYXO\`^&;.^"W]EIVJ7$R@?ZJ.Y-M#$<^\D3_E6AJ_\`
MP6%OKS3)(/#WP*BM[O;@'4==^T(/^V<,7[W\)!7+?`#]F'XX_M??&'_A?/Q\
MAU"WT*6>*>[NM1@^SR:EY7^JM;:(?\NH'/F\9X&9_%./XRW>A7!
MU&`FYT;281FUM8O,_>Q19WQ8[_8(Q_RRK?\`^#B_P3X'L?V")OVBAIUM;^./
MA_XLT:^\%:U&WE7<5U)J$44D44@_>?ZJ667RQU\JK>`P-/'+!33Y^]_MO_VT
MF>)J_5IUH'N'[>W_``5%_9\_X)TZIX,T?XZ>'_%FHW7CI=2;08/">A?;IC]B
M^S>;N7S!C_CYBQZTG['_`/P5;_8V_;=\;7OPQ^$?C;4;7Q5I]F+R?PMXKT.;
M3K_R>/WL<4H_>CE/]63CK7QI_P`%H?&GQQTS]J?]A;XD?"'X;6GBCQP&\17>
MC>&-0U`6T5[?R1:$3;R3'_5<&3]YVQ[U-_P35U#X[?\`!2__`(*+K_P4&^,.
MB^$/A\?@3:ZGX*E^'VB>;)J]S?RQ2Q2RWWF_ZJ+]Y+Y7KY6/^6SZ'ZP%D"9KP_]L3]O?\`9P_84\$6?B_X\^.#8&^E
M%OH^B6-DUUJ>J2\CRK>VCY)X_P!8<1CN>17MNTD`'\:_-3X=>'M%^/7_``<9
M_$>3XYZ=!MIL'G2O]HNH;6((,\YDFC_`#KSW_@JI\'_`(1_&[_@GK\6M&^+>C6]
MQIVD_#_5]4M-0F@S)IMU;6DLT5W$?OQR121@\>GU%?%'Q_\`'WC[XD_\&IT/
MBSXEWTU[K%SX0T*&>\DD_>211>([2&*0G_KE'&:[L-A<'C94.33GJ*#^;.&I
MB,3A^>$_Y+GLNA_\'%7[%&KWNFV4?P@^,T(U66VB@G'P\EECB$P`CE/ERG,9
MWCF/-?H*OS`/B4U]X8FBCU35M-\'22V)
M\R**0&.7S!GB4=JU?V0O^"S_`.S%^VK\9=/^"/PK\"?$.QU;5--N+RSO/$'A
M"6UL)8HHO,.+@Y'2K/\`P73M(#_P2A^,T_E1B3^P+7YS'_U$+6O3O^"=5I;Q
M?L#?!&[AACCEE^$'ACS'$>,_\2JVIJ.`_LY3]G^\O;?R1K[6JL3R$W[-O[:G
MP6_:K\??$[X>?#"35C?_``H\82^&/%#ZCIODQ&_B,@?[/)D^=&_P`U-T+]
MM/X->)/VTM=_83T^YU!O&WA[P3#XFU$?9#]E%I)-%$$\W_GKF6([/22ORZ_8
MT^/'_!1'X0?ME_M>Z9^P]^QGHGQ4LKW]H+6I->,Y?@1%%-X:T[6(K^..U^
MUVOER^;%*<^E=\LE:]KRO14^??R1YL%K.UN-8'A;PK]NBA2XCBECY$@_@N(L_\`72O0_P!A'_@I
M#\#O^"@__"5_\*@\(>-M%D\'S6J:G#XQ\.2Z<9/M/G>6T08_O!_H\G3IQZU^
M?OC'XE_M??"S_@OO^T7JO[&_[,NF?$[6[GP+H*:OI6KZ_%I\<5M]@T;]Y'))
M(!^&*_0[]A?XH_MD?%/P#KNI?MG?LP:9\,-8M-=-OHVGZ3K\5^E]8^5&?M+F
M*0^6?-,@P3T`_%9C@,%A<#3E"GK.$->?OO[G0Z,)BJU6LZ=0]_+[#MKXE^-O
M_!=3]C#X-?%;7/A+#HOC_P`:2^$IY8_%VM>"/!4U]IFA2Q?ZR*:YXC,L?<1Y
MK[7)D-[[Q.^M^&=7B
MM=9TN.ZYEAN;4PR_:O+`/_3/'_+4?ZJO-P%"E7YU+?HMKFV*J5*5K'W9XJ_;
MY_9PT#]B>[_;[L_%=[JWPYMM".JK>Z7I\DMQ-%YOD^6D6!)YOFGR\>OYUZ7\
M*_B-X<^,7PUT+XI^$!(=.\1Z1;:EIOVJ$QR>3+&)(S(.W!KX9_X*&_M%?!W]
MJ[_@@?X^^./[.X$'A?6_!=L^FV-QIP@DL'^WVP\J2WB)\N2,C_5CV[5]1_\`
M!/BWM[']ASX0Z=;\Q1?#?1D4?]ND5:U<%3I9=]8:]_VG)\K#6(_VGV9Y9^VK
M_P`%A_V8OV%OC/9_`/XI^%?&VK>(;O0DU@0>%-`%YY=J93'O;,D?=#6W^P]_
MP53^`O[?'C/7_`OPB\!^/M+NO#NGQ7EW-XK\*RV%O+#)+Y8$GPSXR_91^`>F_$GQ?_`,*4DMXO#&HZU#8;;8SR^9<^
M;)^`K[3_`_`(Q_M^?%;4O$8_;-_8WT#X4V]I';G09=)\40ZE)JK@G\?_MAPTL36J9A4I^TV_N?J>9_%;_@OK^Q[
M\(/C'XK^".N_#SXFZGJ?@[7Y=&U>YT/PA]IM5NHO]8!()1P*]F_96_X*!?!C
M]K/]GG6?VH?!?A_Q9HOA[0'NO[0M_$^@265SBWA^T2/'&>9?W9!&.O3Z_GG^
MSA\=O^"AOPM_;._:PL_V*OV+=`^*MC??'&ZDUR\U?QC#IALI?WH\K][+_P`\
M\=*^Y]#\9_M(?$__`()U_$C5?VM_@;I7PO\`%L\7A,+2I02A9Z?;O^'0,'BZM6//S_SGCO@C_@Y&_P""=/B>
M*VU7Q!%\0O#FEW4_EQ:[JW@F9[$\'O$>B>*='M/$?AS5K>]
ML;ZUCN+6ZM)1+'<12`&.1'!P4(YX_P#U_AO^PW9?\%4?VE?^"4?AW]CO]G[]
MC[P)-\-?$]IJ>EI\3O$GB6)!#'+K-T;F0VHE\T>5*98\Q12?ZL>7%C%?LQ^R
MM\%6_9M_9B^'?[/`UV75QX#\"Z5X=.JS1@27OV&TBMO-(_Z:"+./>LLYPF%P
MU7DI_P#I=_R-V?QD^'NI_!\_';1=?AU'PQ)X=?7;?4+#]X+FQ$/G"6/IG
M]WS^-?%G_!POHNB>(OV7'=6LLLL812H8"EB,%'V?\3MY?\`QKYA6PV*J>T_AGW?\-?V_
M/@1\4?V)&_;_`/"!U<^`TT"_U7_2M-,5X8K666*7]UGKYD4E=U\&_C[X(^-_
M[/GA[]I#P6UT/#OB3PW'K5C]J@,=S]FDA\T9C[2>U?G?^QR\LO\`P:X:H]E"
MD9_X5CXMP.W_`!_ZA7U1_P`$W2/^'/7PK&!'_P`64M./3_0*PQ6"I49S4.E2
MQV4\3S\C_N7.L^"W_!0?]G[X[?L6:I^WCX&GU?\`X032++6;F\>]TTQW(BTR
M6:.Y/E?6WDQ6G^Q3^V[\"_V^O@K!\=?@!J=Y+I,FHS65U:ZI:&WN[*ZB`\R*
M6(\HV'0]_P#6"O@S_@FW)--_P;*^-KF4/\`77_^%>1_\$6O
MBG:?\$Z?B'X,\&_$+Q%+;_#']H;X1CQ=I.K:E(8HM*U[389#=1/R(HHY84D^
M8?ZSRK;WKT:>2T:N#KSA_$A.R7_P""C?[-7P._:_\`
M`W[$'C/Q!>_\)MX[B1]-AM;,R6]J)#*(31R3VKG/VX/^"L_[
M-W_!/SXB^'_A9\8M!\6ZIJ_B;1YM0TRS\)Z!]MD\F.7RR9/W@QS_`"K\K/A/
M_P`)]\>?^"H/[/?_``4<\>Q7MM+\"/\`@MG\!?$7[+7PGTWQSXSA^%VJ#3_"FM:U'IUO?QG[?YO[
MV::./,<1DEQU_=UUULDP5'$4J4Y_\NYN?^-?D94L?BJM&I4_Z>6^1]K?L;_\
M%(/V6_V[[K5M,_9_\67\FJZ!#%)K&AZ_I%QIU];12_ZJ4V\P!\L^M>??M=?\
M%KOV4?V-?CS??LW_`!!\'>/M6\4V&FVU]=1>&?"OVJ+R9O\`5?O/,'-?,/[!
M'BS]H74/^"WGB'Q-^W]\'H?AC\2_$GPE^Q^"?#7APPS:3?:7'-YLIDN8[J7S
MKH>7G_MC+Q'TJE^T+\3OVP/A9_P7D\?:O^QI^S?IWQ0UR;X0:5!J^B:IK\5A
M':VO!\WS9?\`IKY532R?"/,)T_L>SY_C]-.<53,L3]6A_P!?.0^W?V%/^"GG
MP)_X*"W&N6GPA\#>/M'?0(;:6\D\8>%)=.BE\WIY,A)$M>0>*O\`@X<_8(\&
M_$+Q%\//%.E_$=(O"^M7VEZSK=K\/[JYL8I;6Z^S2G]P))?+W=_*KVG]A7XQ
M_MQ_%/2O$#_MK?LA:/\`"JXL;NU7PW%HOBR'4O[2B,1\PR>5_JC&<#'>OR,^
M"?[<_P"U;^P7%^TEX@^$'[+OA/Q-X*NOVB?$<&K^,?%][)]FT?4Y=0N8HXKF
M*+][Y7FX_/WJ,ORO#8JIB'*'\.UO?7Y]3KQ&+^K>S]\_7#Q!_P`%+?V>/^%/
M>%/CI\,I]8\<^'O&S?\`$BG\)6T4F?WJVO[WSI8O+/VF2.'R_P#6>:<8KW3P
M%XWT'XB^"-(^(?A6^:YTO7=.@U#3IWCV&2WEC$D9_(@U\>?\$XO^"7'A7X%_
ML1^$_A!\==:LO$NMKKEYXC;4_"VH36MK;2WN/W5K)#)$3%Y4<73K+^]]Z^R?
M#7AS0/!OAZP\'^&],BL=,TRTCMM.M;8;(K>*,"..(?@,?A7B8A86F^2F>A2=
M5TKS/C3XX?\`!>/]B_X"_M%^(_V;O&?A[Q_>:OX2U*.SUV^T/PJ+ZUAE,7F_
M\LI3+TS_`,L_^69KZ*_96_:S^!W[9'PLM_C+^SWXU77M!FOI;&2;R'BEM;F(
M?O(9XI,212#*<'G]XAQWK\O_`(3?$G]NCX=_\%7/VOH/V(?V8/"7Q)N[GQ)H
MHUU?%/B6+3/L&(;KRI8_-D\R4'I+CTBZ<5[A_P`&]=^;?PU\?/"GQ!-[HOQ8
M3XS76K_%+P+)IAM[70;FZBQ;?9B)98Y8I1;2XE!S^Z\KD0QRR^OC\KPM+"NI
M3WA[/_R=?@>-@\PK5<5[*?\`?.C\3?\`!QE^Q)X=\7:YX.A^''Q7U8Z#J]WI
MVI7VA^"?M,(FMI?*EP1*._M7T!\,/^"B/P3^)_[&NO\`[]\JQ\SSMD1//^K.*_,_\`X)F_'W_@H[\+[7XU^'?V.OV&-`^)
MWAZ?X^Z]K^,8;"2VO\`[+8Q?9?+EE_YY16TO_;S7W3^U+XS^/?Q`_X(
MQ?%_Q)^TA\'['P!X[N_@]XC.J^&K'5AJ5O82?9+GR\2C_6@\'\:,PR_"8>M"
MG[/[:^W^AT8?%U:M*?OG#>#?^#D7_@GAK;6UQXR@^(GA33KJ6*.+6->\!W0L
MR9/-Q^]A$O\`SS-?;WPR^*?@7XR>"K#XD_"WQ5I^O^']4A\W3=5TNZ$D4T?J
M"*\#_P""9G@WP;X\_P""7/P:T;QCX5T_4[34/AEI<5W:ZA:K<1RQ^0.'!
M@O\`P0XA/PX^/7[5G[+_`,.M2DN_AC\/OBG"G@P-J7VJ.TDN8I3=6<7:*.(Q
M1#RNV:XL7AL!4]I.A!P]GWU+H8FK2]G"I[_.?H^.E%'6BO*/3"BBB@`HHHH`
M****`"BBB@`HHHH`****`"BBB@`HHHH`R?$WAS0/&7A^_P#"?B72XKW3=3M9
M+74;6XCS%<12`QR1GZCC\:_._P`+?\$UO^"HW[#VL7O@;_@F[^V+X,G^%MS>
M2W>C^`?B[I\L@T#S?,,D5O<6MM+)+'YT@E&?*//[SS.OB!JD-]JXCS#HN
ME^5#Y8AL+8X\J+_!/2O.?V3O^"3UYX(_90^-_P"RA^U#XCT;Q-HWQ<\=Z[J\
M,NC12$6%K=S>9;G][&/])BD"2YY'FQ@\XK[E7M2#[Q%)8RK[_G^FI/U:F?*O
M[)W[(_[1GPE_8$U+]COXX?%O1O$NKVVCZMH/ACQ/I\5PN-*ECEBL3'/%5IK7QL_LFSEM8O%'V:7S(K:V
MC2(>7'Z\QGBO3?B1_P`$N/V%/B!\.]?\`G]FCP5I/]O:3<6/V_3_``Y!'<6Q
MEC($L9Q_K$/[P>X^M?2#?*#CM0AW#)I+'8RG&'LYV4398.C)\TE<^:?V#_V3
M_C1^SE^P58_LD_&WXB:3XAU71=-O]&TK7=+68Q_V?)YOV42";G,4<@BP/^6<
M4?>I/^"5?['/C/\`8-_8N\._LS?$'7=*U75M#U#4[BZOM%\PVTQNK^:Z^7S(
MXSQYN.E?21[4IY#`^M35Q56JIW^WJPAAZ=/DL?!7[3'_``3!_:8T#]J/6_VT
M?^"9W[1FG?#GQ9XR@C3X@^$_$UIY^@>(IH@/*NCY44C02]?,(C/F;R<@]<#P
MS_P3%_;E_:T^-'AWXF?\%7/VH/"WB#PIX'UM-3\.?"7X9Z=*FD76H1DM%=W4
MTT<4DGE@^6(3')P9/WHZ5^B8P5P0.M!P%P`.M-9KB%07;O\`:^\GZE2]KS'R
MG^V9^PAX^_:<_;#_`&;OVD/#7BS2],TGX+:YK%]KVG7@#KX21G4
MY@O^C7]L8H\>>)(X\F0]#+@_O3C[`R02`:0DGK2ABJD8VZ#^J4O:\XX*2M?&
MG[?/_!,[Q-^T5\7/"_[7G[*7QL;X5?&GP;');67B==-%Q::S:?\`/K>1?7`\
MW]Y^Z,D4D4H*^5]F]*;L!K.CB*F'JZ]''-%*;:2XNK6+R8B8S_STYV>]?27[
M=_[#-[^T9_P3B\0?L+_`.]TGPQ'=:-H^E>'?[4:8VMA:V-W:RK"YB#R$>3;>
M5Z\BOIRF[5)(Q6L\QQ$ZE-JRY-596U,J>%I4VBZOXLT>.VLM4OQF*UD%S%+EP!(3_J^P-=G^RU\*]5^!G[-/
MP]^"6M7=O=7_`(/\#:/HMW=6ZXCEEM;2*VDD3/(&8R?Q%>BX&,8I"`!Q6GMI
MK#^S^9E[->UYSY,_X)]?L$_$#]D/XV_M$?%3QGXPT;4K/XP?$^Y\3Z%9Z0LW
MFV5M)+=2^5<^:@_>9N?^6>15KP;^PYXW\/\`_!5SQ?\`M]:CXPTZ7P_K_P`,
MK7PSINBQ&3[5!7B(@?O,Y<\5]3'EE%(I.&K1X[$.I.5]9*WR
MT_R(>&I>[H?G'\>O^"<7_!3"T_X*'?$?]MS]B;]IGX=>$(_'^BZ9IUS:^)M'
MEO+GRK6TM8N>:^A?V"OAO\`\%,O`6J^*)OV_P#]H;P)XXLK
MF&T_X1&+P?X=^QO8./-^T^>_EQ>;G]UCCL:^EF^7H*3<2<9K6>.KUJ'LY0AV
MO;73SL13P*IUO:*3'N,1G,NSWK\Y/%G[#_\`P6Z\-ZGXP^&7P<_X*$^!M<\`
M^*M3NKBWUOQ[H:/\`F77HJK2Y6?%GB?\`X)2Z?H'_``2&U;_@F/\`!_Q]!%/<>&A90^)-
M7B,,MO"O@*#]MWX1GPCX=6QL
M3IT?A4O*=/A\N/R]YL0?,\L8SYG6OT>+$$4BX#'BNAYEB84JD:MI?7BO4OV'?A-_P5B\!_$VZU3]N?]I[X?>-?"F^$_
M#GV:YAOS+'Y.IM>_L[Q!H4MS)$9`
M0@E_T63]Y\Y_U<@!XKZ4^!7P+_;VU7]F3X@_"/\`;C^//@WQ7XF\4:??:=H6
ML>&M!%M:V5M<6ABQ)'Y<7FD2.3].*^G<^U*$5QDBMJN8UJU.TH1Z=-=/.P0P
M=*C\!\]?\$P?V3?&'[$/[$G@O]F+Q]XBT[4]7\-?VG]LO]),AMI6NM3NKO,9
MD2.3IC^(M+NO[2\&^)%A!DTR_CQ@],^6^-L@[@]\"OI9
M@!R!S2=!N'K6]',,1AG3G!V<-C*>#I5?:*7VSYE_81_80E_9R_X)TZ/^PO\`
M&;6]/U\P:/JVFZY=Z29?)GBOKJZE(C,O[P?N[G'/<&OE+P[_`,$N?^"POP0^
M$>H?L8?`7]N7P#)\';G[79:9J7B?2;G_`(2#3-,N.MK$(K;RN-\G/F<9'O7Z
MDX#`$B@J&ZBKAF6(56,#
MB@$CI2H8W%T*WM(3UO?YCG@Z5:C[.2/C#XT_\$Q]0\2?'[]E/Q?\%M4T;1?!
MW[.MW>?;-)O/-%S7YA\H^87\L$29]JP?^"AW_!/3]LSXY_M
MH_#W]LW]B[XU>#/"&O>!?"5YHL<_BJTDN(O!=IH%]9^*M.EN)?+AP`_'&N:G^WI^TUX!\<:#)IL46@Z=
MX2\-_9);6Y$A\R663R8LCR^,<]:XW]E'_@E9!\-OA=^T+\%OVC-:T;Q5X;^-
M?Q'UK7X(=)BEAEM[6_FEDQ)E`([F/S<`Q\9C!K[9!(`H(`!P*S>-JI3MI>VW
MEJ:T\+2@?-W_``3)_9H_:`_9$_9BL?VGTA4-UK.K5>(J\\BX05*ER1/S3\
M9_\`!-G_`(*I?#G]LSXP_M'_`+%'[5WPV\*:5\6-9L[R\M-?T>:ZN0EM$5B!
M\RUFC'^ME^YQR*^@?^":7_!/7Q'^Q/8>._'_`,7OC)+\0/B=\5--]%_93_`&P_A/H'A?Q;X^O_`!,-/U'PZ]S=
M>=<^5'B266QEY\J&/\J^D;K]EK]MOXT?\$X_B9^RU^UO\:O"7B+X@^.O#6LZ
M-:^)]$TPV]C;17=J8H?,C$,>?+)))$>?K7UCO:@,Q(YK2OF.(JN[A&_I_P``
MNG@(T]I,_,KX2_\`!.'_`(+A>%?A+I'[.O\`P\L\!^#O!^DZ9#I5E=>%/!1N
M]1MK6,8!CDDBMI!)@=?-K['_`&!OV&?AA^P#\";/X(_#>]NM1=IY+WQ#XDU7
M!O=;OY#^]NICZG_/J?$K:[V25WY]R<-@:6'ES+
9<6BBBN0[0HHHH`****`"BBB@`HHHH`__V3\_
`
end
-----END PRIVACY-ENHANCED MESSAGE-----