-----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, Qzo01rN5TqG2SD02Oy1tjJUbwEfvulJJoGuiIaiJXyDfqF7EAr9k7L5vSHBaJSAu GcgGaaK6J4vFJwb3lTU9KQ== 0001193125-10-264680.txt : 20101119 0001193125-10-264680.hdr.sgml : 20101119 20101119075125 ACCESSION NUMBER: 0001193125-10-264680 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20101119 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20101119 DATE AS OF CHANGE: 20101119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ANNTAYLOR STORES CORP CENTRAL INDEX KEY: 0000874214 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-WOMEN'S CLOTHING STORES [5621] IRS NUMBER: 133499319 STATE OF INCORPORATION: DE FISCAL YEAR END: 0129 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10738 FILM NUMBER: 101204023 BUSINESS ADDRESS: STREET 1: 7 TIMES SQUARE STREET 2: 15TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: 2125413300 MAIL ADDRESS: STREET 1: 7 TIMES SQUARE STREET 2: 15TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10036 FORMER COMPANY: FORMER CONFORMED NAME: TAYLOR ANN STORES CORP DATE OF NAME CHANGE: 19960221 8-K 1 d8k.htm FORM 8-K Form 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): November 19, 2010

 

 

ANNTAYLOR STORES CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   1-10738   13-3499319

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

7 Times Square

New York, New York 10036

(Address, including Zip Code, of Registrant’s Principal Executive Offices)

(212) 541-3300

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Names or Former Addresses, if Changed Since Last Report)

 

 

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 (see General Instruction A.2. below):

 

¨ 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.

AnnTaylor Stores Corporation (the “Company”) issued a Press Release, dated November 19, 2010. A copy of the Press Release is appended to this report as Exhibit 99.1 and is incorporated herein by reference.

The Press Release furnished with this report contains certain non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company is providing operating income, net income and earnings per share data for the quarters and nine months ended October 30, 2010 and October 31, 2009 that exclude costs associated with the Company’s previously-announced restructuring program and, for the quarter and nine months ended October 31, 2009 only, non-restructuring asset impairment charges. The Company believes that these non-GAAP financial measures assist the reader’s understanding of its continuing business operations by removing the impact of these charges. These measures should be considered in addition to, not as a substitute for, measures of financial performance prepared in accordance with GAAP.

 

Item 9.01 Financial Statements and Exhibits.

 

  (d) Exhibits.

 

  99.1 Press Release issued by AnnTaylor Stores Corporation on November 19, 2010.

 

2


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 hereunto duly authorized.

 

   

ANNTAYLOR STORES CORPORATION

    By:   /S/    BARBARA K. EISENBERG        
      Barbara K. Eisenberg
Date: November 19, 2010       Executive Vice President,
      General Counsel and Secretary

 

3


EXHIBIT INDEX

 

Exhibit

No.

 

Description

99.1   Press Release issued by AnnTaylor Stores Corporation on November 19, 2010.

 

4

EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE

Ann Taylor Stores Corporation Reports Significantly Higher

Third Quarter Sales and Earnings

– Third Quarter 2010 Earnings More than Double Year-Ago Period –

– Comparable Sales Increase 12% with the Ann Taylor Brand Up 22% and the LOFT Brand Up 5% –

New York, NY, November 19, 2010 – Ann Taylor Stores Corporation (NYSE: ANN) today reported results for the fiscal third quarter ended October 30, 2010, and commented on its outlook for the fourth quarter and fiscal year 2010.

For the third quarter of 2010, the Company reported earnings per diluted share of $0.42, excluding after-tax restructuring charges totaling $0.01 per diluted share, compared with earnings per diluted share of $0.20 in the third quarter of 2009, excluding after-tax restructuring and asset impairment charges totaling $0.17 per diluted share. On a GAAP basis, including the aforementioned charges, earnings per diluted share were $0.41 in the third quarter of 2010, compared with $0.03 per diluted share in the third quarter of 2009.

Kay Krill, President and Chief Executive Officer, said, “We are extremely pleased with the Company’s excellent performance for the third quarter of 2010, with earnings for the quarter more than doubling from the year-ago period. The significantly higher sales and near-record gross margin rate reflect another standout quarter at the Ann Taylor brand and improved results at the LOFT brand for the third quarter.

“The Ann Taylor brand delivered meaningful gains across all of its channels, resulting in a 22% comparable sales increase for the brand. We continue to see an enthusiastic client response to the compelling fashion, quality and value Ann Taylor offers and are capturing a greater share of her overall spend. The LOFT brand also showed progress during the quarter, with outstanding performance in the online and outlet channels and steady improvement in the stores channel, which, as expected, delivered stronger sales in September and October as we received new product.

“While we anticipate a promotional environment in the upcoming months, we feel good about our overall business as we enter the fourth quarter and believe we are well-positioned in terms of our product, inventories, marketing initiatives and our planned promotional strategies for the Holiday season,” Ms. Krill said.


Fiscal 2010 Third Quarter Results

Total net sales for the third quarter of fiscal 2010 were $505.3 million, compared with net sales of $462.4 million in the third quarter of fiscal 2009. By brand, net sales across all channels of the Ann Taylor brand totaled $223.2 million in the third quarter of 2010, compared with net sales of $195.0 million in the third quarter of 2009. At the LOFT brand, net sales across all channels were $282.1 million in the third quarter of 2010, compared with net sales of $267.4 million in the third quarter of 2009.

Total Company comparable sales for the quarter increased 11.7%, versus a decline of 13.0% in the prior year. At Ann Taylor, total brand comparable sales increased 21.9%, reflecting increases of 23.4% at Ann Taylor stores, 57.0% in the Ann Taylor e-commerce channel and 11.3% in the Ann Taylor Factory channel. At LOFT, total brand comparable sales were up 4.5%, reflecting a decrease of 0.6% at LOFT stores, which was more than offset by an increase of 64.6% in the LOFT e-commerce channel and a 22.0% increase in the LOFT Outlet channel. (Please refer to Table 3 for a breakdown of sales by brand and channel.)

Gross margin, as a percentage of net sales, was 57.2%, compared to the 57.3% gross margin rate achieved in the third quarter of 2009. This strong third quarter gross margin rate performance was primarily driven by improved product offerings and higher full-price selling at the Ann Taylor brand, effective marketing initiatives and the success of the Company’s strategy to appropriately position inventory levels at both brands.

Selling, general and administrative expenses for the third quarter of 2010 were essentially flat at $247.4 million, versus $246.2 million in the third quarter of 2009, on a $43 million increase in sales.

During the quarter, the Company recorded pre-tax restructuring charges of $0.6 million associated with its previously announced strategic restructuring program, compared with $0.6 million in the third quarter of 2009. On an after-tax basis, third quarter 2010 restructuring charges totaled $0.3 million, or approximately $0.01 per diluted share, compared with $0.4 million, or $0.01 per diluted share, in the third quarter of 2009.

The Company did not have any non-cash asset impairment charges related to stores not included in the Company’s restructuring program, compared to pre-tax non-cash asset impairment charges totaling $15.3 million in the third quarter of 2009. On an after-tax basis, third quarter 2009 asset impairment charges totaled $10.2 million, or $0.16 per diluted share.

Excluding restructuring and asset impairment charges, the Company reported operating income of $41.4 million for the quarter, compared with operating income of $18.7 million in the third quarter of 2009. On the same basis, the Company reported net income in the quarter of $24.5 million, or $0.42 per diluted share, compared with net income of $12.0 million, or $0.20 per diluted share, in the third quarter of 2009.

On a GAAP basis, the Company reported operating income of $40.8 million in the third quarter of 2010, compared with an operating income of $2.7 million in the third quarter of 2009. On the same basis, the Company reported net income of $24.2 million, or $0.41 per diluted share, in the third quarter of 2010, compared with a net income of $2.1 million, or $0.03 per diluted share, in the third quarter of 2009.


The Company closed the quarter with approximately $224 million in cash and cash equivalents. During the fiscal third quarter of 2010, the Company repurchased 1.2 million shares of its common stock at an approximate cost of $19.8 million.

Total inventory per square foot, excluding e-commerce, at the end of the third quarter increased eight percent versus year-ago, reflecting a 16% increase at Ann Taylor stores, a one percent increase at LOFT stores, and an 18% increase in the factory outlet channel to support new LOFT Outlet stores.

During the third quarter of 2010, the Ann Taylor brand closed two Ann Taylor stores. At the LOFT brand, the Company closed one LOFT store and converted four LOFT stores to LOFT Outlet stores. The Company opened five new LOFT stores and 11 new LOFT Outlet stores during the quarter. The total store count at the end of the third quarter was 907, comprised of 276 Ann Taylor stores, 92 Ann Taylor Factory stores, 506 LOFT stores, and 33 LOFT Outlet stores. The Company updated expectations related to the store closure component of its previously announced strategic restructuring program. Under the program, the Company now expects to close approximately 43 stores in fiscal 2010, bringing the total closures associated with the three-year program to approximately 145. Of these, approximately half are expected to be Ann Taylor stores and half are expected to be LOFT stores.

Fiscal 2010 Nine-Month Results

Net sales for the first nine months of fiscal 2010 were $1.5 billion, compared with net sales of $1.4 billion in the first nine months of fiscal 2009. By brand, net sales across all channels of the Ann Taylor brand were $628.8 million in the first nine months of 2010, compared with net sales of $565.1 million in the first nine months of 2009. At the LOFT brand, net sales across all channels were $836.1 million in the first nine months of 2010, compared with net sales of $794.3 million in the first nine months of 2009.

Total Company comparable sales for the first nine months of 2010 increased 10.5%, versus a decline of 22.2% in the prior year. At Ann Taylor, total brand comparable sales increased 17.9%, including increases of 19.4% at Ann Taylor stores, 46.0% in the Ann Taylor e-commerce channel and 9.3% in the Ann Taylor Factory channel. At LOFT, total brand comparable sales increased by 5.4%, including an increase of 1.6% at LOFT stores, an increase of 60.3% in the LOFT e-commerce channel and a 19.3% increase in the LOFT Outlet channel. (Please refer to Table 3 for a breakdown of sales by brand and channel.)

Gross margin, as a percentage of net sales, was 57.2%, reflecting a 220 basis point improvement over the 55.0% gross margin rate achieved in the first nine months of 2009. Selling, general and administrative expenses for the first nine months of 2010 were $726.6 million, versus $725.0 million in the first nine months of 2009.


During the first nine months of 2010, the Company recorded pre-tax restructuring charges totaling $1.7 million, compared with $32.7 million in the first nine months of 2009. On an after-tax basis, restructuring charges totaled $1.0 million, or $0.02 per diluted share, in the first nine months of 2010, compared with restructuring charges of $22.1 million, or $0.39 per diluted share, in the first nine months of 2009.

The Company did not have any non-cash asset impairment charges related to stores not included in the Company’s restructuring program during the first nine months of 2010, compared to pre-tax non-cash asset impairment charges totaling $15.3 million in the first nine months of 2009. On an after-tax basis, third quarter 2009 asset impairment charges totaled $10.3 million, or $0.18 per diluted share.

Excluding restructuring and asset impairment charges, the Company reported operating income of $111.1 million for the first nine months of 2010, compared with operating income of $22.9 million in the first nine months of 2009. On the same basis, the Company reported net income in the first nine months of 2010 of $66.4 million, or $1.12 per diluted share, compared with net income of $14.2 million, or $0.25 per diluted share, in the first nine months of 2009.

On a GAAP basis, the Company reported operating income of $109.4 million in the first nine months of 2010, compared with an operating loss of $25.2 million in the first nine months of 2009. On the same basis, the Company reported net income of $65.4 million, or $1.10 per diluted share, in the first nine months of 2010, compared with a net loss of $18.2 million, or $0.32 per diluted share, in the first nine months of 2009.

Outlook for Fiscal Fourth-Quarter and Full-Year 2010 Update

For the fiscal fourth quarter of 2010, the Company expects total net sales to approach $500 million, reflecting mid- to high-single digit comparable sales performance at the Company, including a double-digit comparable sales performance at the Ann Taylor brand, and a low-single-digit comparable sales increase at the LOFT brand. Gross margin rate performance is expected to approach the gross margin rate of 52.5% achieved in the fiscal fourth quarter of 2009. Selling, general and administrative expenses are estimated to be approximately $250 million, including approximately $5 million of incremental marketing investment versus the fourth quarter of last year.

In terms of the full year, the Company updated its outlook as follows:

 

 

The Company currently expects fiscal 2010 total net sales to approach $1.965 billion. In addition, the Company anticipates positive comparable sales at both brands;

 

 

Gross margin rate performance is expected to reflect a nearly 150 basis point improvement from the 54.4% rate achieved in fiscal 2009;

 

 

Selling, general and administrative expenses for fiscal 2010 are expected to be approximately $975 million, representing an $8 million dollar increase in SG&A from 2009 levels while achieving an anticipated increase of nearly $140 million in net sales and making an incremental marketing investment of approximately $20 million in fiscal 2010;

 

 

The full-year 2010 effective tax rate is approximately 40%;

 

 

Incremental restructuring savings for the year are expected to total approximately $20 million and one-time restructuring costs are estimated to be in the range of $7-$10 million.


 

Total weighted average square footage is expected to decline approximately 3% by year-end, reflecting the impact of 43 store closures in fiscal 2010 under the Company’s previously announced restructuring program. This is partially offset by the opening of approximately 30 stores, comprised of approximately 20 LOFT Outlet stores and 10 LOFT stores, to support the continued growth of the LOFT brand;

 

 

Capital expenditures are expected to be approximately $70 million;

 

 

A continued focus on maintaining a healthy balance sheet including a disciplined approach to inventory management throughout the fiscal year; and,

 

 

The Company will repurchase shares under its existing $400 million share repurchase authorization.


FORWARD-LOOKING STATEMENTS

Certain statements in this press release are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements may use the words “expect”, “anticipate”, “plan”, “intend”, “project”, “may”, “believe” and similar expressions. Forward-looking statements also include representations of the expectations or beliefs of the Company concerning future events that involve risks and uncertainties, including:

 

 

the Company’s ability to accurately predict client fashion preferences and trends and provide merchandise that satisfies client demands in a timely manner;

 

 

the Company’s ability to optimize its store portfolio and effectively manage the profitability of its existing stores;

 

 

the Company’s ability to hire, retain and train key personnel;

 

 

the Company’s ability to successfully upgrade and maintain its information systems, including adequate system security controls;

 

 

the Company’s reliance on independent foreign sources of production, including financial or political instability, supplier inability to obtain adequate access to liquidity to finance their operations, the decision by suppliers to curtail or cease operations, the imposition of duties or other possible trade law or import restrictions, including legislation relating to import quotas, and increases in the costs of raw materials and freight;

 

 

effectiveness of the Company’s brand awareness and marketing programs, and its ability to maintain the value of its brands;

 

 

the Company’s ability to successfully execute brand extensions;

 

 

competitive influences and decline in the demand for merchandise offered by the Company, and the Company’s ability to manage inventory levels and merchandise mix;

 

 

the performance and operations of the Company’s websites;

 

 

the Company’s ability to continue operations in accordance with its business continuity plan in the event of an interruption;

 

 

a significant change in the regulatory environment applicable to the Company’s business and the Company’s ability to comply with legal and regulatory requirements;

 

 

general economic conditions and the recent financial crisis, including the resultant downturn in the retail industry, and their effects on the Company’s liquidity and capital resources;

 

 

continuation of lowered levels of consumer spending and consumer confidence, changes in levels of store traffic and higher levels of unemployment resulting from the worldwide economic downturn;

 

 

continued volatility or deterioration of the financial markets, including further tightening of the credit environment, fluctuations in interest rates and exchange rates or restrictions on the transfer of funds;

 

 

failure by independent manufacturers to comply with the Company’s quality, product safety and social practices requirements;

 

 

the Company’s dependence on its Louisville distribution facility and third-party transportation companies;

 

 

fluctuation in the Company’s level of sales and earnings growth and stock price;

 

 

the Company’s ability to secure and protect trademarks and other intellectual property rights;

 

 

the inability of the Company, particularly through its sourcing and logistics functions, to operate within production and delivery constraints;

 

 

acts of war or terrorism in the United States or worldwide;

 

 

the potential impact of natural disasters and public health concerns, including severe infectious diseases, particularly on the Company’s foreign sourcing offices and manufacturing operations of the Company’s vendors;

 

 

work stoppages, slowdowns or strikes;

 

 

the Company’s ability to achieve the results of its restructuring program, including changes in management’s assumptions and projections concerning costs and timing;

 

 

the Company’s ability to realize deferred tax assets; and

 

 

the effect of external economic factors on the Company’s future funding obligations for its defined benefit pension plan.

Further description of these risks and uncertainties and other important factors are set forth in the Company’s latest Annual Report on Form 10-K, including but not limited to Item 1A – Risk Factors and Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations therein, and in the Company’s other filings with the SEC. Although these forward-looking statements reflect the Company’s current expectations concerning future events, actual results may differ materially from current expectations or historical results. The Company does not assume any obligation to publicly update or revise any forward-looking statements at any time for any reason.


About Ann Taylor

Ann Taylor Stores Corporation is one of the leading women’s specialty retailers for fashionable clothing in the United States, operating 907 Ann Taylor, Ann Taylor Factory, LOFT and LOFT Outlet stores in 46 states, the District of Columbia and Puerto Rico as of October 30, 2010, as well as online at AnnTaylor.com and LOFT.com. Visit AnnTaylorStoresCorp.com for more information (NYSE: ANN).

 

Investor Contact:   Press Contact:  
Judith Pirro Lord   Catherine Fisher  
Vice President, Investor Relations   Vice President, Corporate Communications  
Ann Taylor Stores Corporation   Ann Taylor Stores Corporation  
212-541-3300 ext. 3598   212-541-3300 ext. 2199  


ANNTAYLOR STORES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Quarters and Nine Months Ended October 30, 2010 and October 31, 2009

(unaudited)

Table 1.

 

     Quarters Ended      Nine Months Ended  
     October 30,
2010
     October 31,
2009
     October 30,
2010
     October 31,
2009
 
     (in thousands, except per share amounts)  

Net sales

   $ 505,281       $ 462,410       $ 1,464,934       $ 1,359,386   

Cost of sales

     216,505         197,555         627,193         611,500   
                                   

Gross margin

     288,776         264,855         837,741         747,886   

Selling, general and administrative expenses

     247,381         246,200         726,601         725,019   

Restructuring charges

     550         630         1,693         32,722   

Asset impairment charges

     —           15,318         —           15,318   
                                   

Operating income/(loss)

     40,845         2,707         109,447         (25,173

Interest income

     245         186         582         750   

Interest expense

     369         788         1,254         2,598   
                                   

Income/(loss) before income taxes

     40,721         2,105         108,775         (27,021

Income tax provision/(benefit)

     16,525         36         43,351         (8,772
                                   

Net income/(loss)

   $ 24,196       $ 2,069       $ 65,424       $ (18,249
                                   

Earnings per share:

           

Basic earnings/(loss) per share

   $ 0.41       $ 0.04       $ 1.11       $ (0.32

Weighted average shares outstanding

     57,467         56,855         57,630         56,727   

Diluted earnings/(loss) per share

   $ 0.41       $ 0.03       $ 1.10       $ (0.32

Weighted average shares outstanding assuming dilution

     58,270         58,037         58,492         56,727   


ANNTAYLOR STORES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

October 30, 2010, January 30, 2010 and October 31, 2009

(unaudited)

Table 2.

 

     October 30,
2010
    January 30,
2010
    October 31,
2009
 
Assets    (in thousands)  

Current assets

      

Cash and cash equivalents

   $ 223,614      $ 204,491      $ 134,104   

Short-term investments

     —          5,655        5,698   

Accounts receivable

     28,578        19,267        26,283   

Merchandise inventories

     231,953        169,141        211,194   

Refundable income taxes

     31,363        24,929        7,717   

Deferred income taxes

     27,244        35,799        28,475   

Prepaid expenses and other current assets

     50,096        45,613        62,196   
                        

Total current assets

     592,848        504,895        475,667   

Property and equipment, net

     333,772        365,934        388,370   

Deferred financing costs, net

     746        973        1,048   

Deferred income taxes

     26,446        23,683        42,082   

Other assets

     10,725        6,656        7,064   
                        

Total assets

   $ 964,537      $ 902,141      $ 914,231   
                        
Liabilities and Stockholders’ Equity       

Current liabilities

      

Accounts payable

   $ 90,964      $ 76,969      $ 92,228   

Accrued salaries and bonus

     21,454        32,168        27,426   

Accrued tenancy

     46,785        44,878        44,332   

Gift certificates and merchandise credits redeemable

     36,177        47,555        35,424   

Accrued expenses and other current liabilities

     74,204        73,804        82,279   
                        

Total current liabilities

     269,584        275,374        281,689   

Deferred lease costs

     164,861        183,917        194,864   

Deferred income taxes

     1,000        1,584        1,673   

Long-term performance compensation

     24,205        9,428        7,301   

Other liabilities

     22,577        14,652        17,970   

Commitments and contingencies

      

Stockholders’ equity

      

Common stock, $.0068 par value; 200,000,000 shares authorized; 82,554,516, 82,476,328 and 82,476,328 shares issued, respectively

     561        561        561   

Additional paid-in capital

     793,408        777,786        773,450   

Retained earnings

     479,718        414,294        414,253   

Accumulated other comprehensive loss

     (3,741     (4,158     (6,648

Treasury stock, 24,584,175, 23,701,800 and 23,695,785 shares respectively, at cost

     (787,636     (771,297     (770,882
                        

Total stockholders’ equity

     482,310        417,186        410,734   
                        

Total liabilities and stockholders’ equity

   $ 964,537      $ 902,141      $ 914,231   
                        


ANNTAYLOR STORES CORPORATION

Brand Sales and Store Data

For the Quarters and Nine Months Ended October 30, 2010 and October 31, 2009

(unaudited)

Table 3.

 

     Quarters Ended  
Sales and Comparable Sales    October 30, 2010     October 31, 2009  
     Sales      Comp (1)     Sales      Comp (1)  
     ($ in thousands)  

Ann Taylor

          

Ann Taylor Stores

   $ 128,505         23.4   $ 114,595         (25.8 )% 

Ann Taylor e-commerce

     24,122         57.0     15,673         (5.6 )% 
                      

Subtotal

     152,627         27.7     130,268         (23.9 )% 

Ann Taylor Factory

     70,576         11.3     64,768         (3.4 )% 
                      

Total Ann Taylor Brand

   $ 223,203         21.9   $ 195,036         (18.4 )% 
                      

LOFT

          

LOFT Stores

   $ 233,356         (0.6 )%    $ 237,654         (9.7 )% 

LOFT e-commerce

     26,670         64.6     16,591         0.8
                      

Subtotal

     260,026         3.6     254,245         (9.1 )% 

LOFT Outlet

     22,052         22.0     13,129         15.6
                      

Total LOFT Brand

   $ 282,078         4.5   $ 267,374         (8.5 )% 
                      

Total Company

   $ 505,281         11.7   $ 462,410         (13.0 )% 
                      
     Nine Months Ended  
Sales and Comparable Sales    October 30, 2010     October 31, 2009  
     Sales      Comp (1)     Sales      Comp (1)  
     ($ in thousands)  

Ann Taylor

          

Ann Taylor Stores

   $ 362,011         19.4   $ 332,756         (36.1 )% 

Ann Taylor e-commerce

     62,426         46.0     43,768         (18.8 )% 
                      

Subtotal

     424,437         22.6     376,524         (34.6 )% 

Ann Taylor Factory

     204,366         9.3     188,597         (13.6 )% 
                      

Total Ann Taylor Brand

   $ 628,803         17.9   $ 565,121         (29.2 )% 
                      

LOFT

          

LOFT Stores

   $ 719,360         1.6   $ 713,919         (16.7 )% 

LOFT e-commerce

     66,586         60.3     42,475         (10.5 )% 
                      

Subtotal

     785,946         4.8     756,394         (16.4 )% 

LOFT Outlet

     50,185         19.3     37,871         15.6
                      

Total LOFT Brand

   $ 836,131         5.4   $ 794,265         (16.1 )% 
                      

Total Company

   $ 1,464,934         10.5   $ 1,359,386         (22.2 )% 
                      

 

(1) A store is included in comparable sales in its thirteenth month of operation. A store with a square footage change of more than 15% is treated as a new store for the first year following its reopening.


Table 3. (Continued)

 

     Quarters Ended  
Stores and Square Feet    October 30, 2010     October 31, 2009  
     Stores     Square Feet     Stores     Square Feet  
     (square feet in thousands)  

Ann Taylor

        

Ann Taylor Stores

     276        1,501        313        1,692   

Ann Taylor Factory

     92        668        92        668   
                                

Total Ann Taylor Brand

     368        2,169        405        2,360   
                                

LOFT

        

LOFT Stores

     506        2,954        509        2,998   

LOFT Outlet

     33        217        18        123   
                                

Total LOFT Brand

     539        3,171        527        3,121   
                                

Total Company

     907        5,340        932        5,481   
                                

Number of:

        

Stores open at beginning of period

     894        5,265        933        5,486   

New stores

     16        93        1        6   

Expanded/downsized stores (2)

     —          (6     —          —     

Closed stores

     (3     (12     (2     (11
                                

Stores open at end of period

     907        5,340        932        5,481   
                                

Converted stores (3)

     4        —          1        —     
     Nine Months Ended  
Stores and Square Feet    October 30, 2010     October 31, 2009  
     Stores     Square Feet     Stores     Square Feet  
     (square feet in thousands)  

Number of:

        

Stores open at beginning of period

     907        5,348        935        5,492   

New stores

     16        93        14        83   

Expanded/downsized stores (4)

     —          (11     —          —     

Closed stores

     (16     (90     (17     (94
                                

Stores open at end of period

     907        5,340        932        5,481   
                                

Converted stores (5)

     10        —          1        —     

 

(2) During the quarter ended October 30, 2010, the Company downsized two Ann Taylor stores.
(3) During the quarter ended October 30, 2010, the Company converted four LOFT stores to LOFT Outlet stores. During the quarter ended October 31, 2009, the Company converted one Ann Taylor store to a LOFT store.
(4) During the nine months ended October 30, 2010, the Company downsized five Ann Taylor stores and one LOFT store. During the nine months ended October 31, 2009, the Company downsized one Ann Taylor store.
(5) During the nine months ended October 30, 2010, the Company converted six Ann Taylor stores to LOFT stores and four LOFT stores to LOFT Outlet stores. During the nine months ended October 31, 2009, the Company converted one Ann Taylor store to a LOFT store.
GRAPHIC 3 g121722g00x35.jpg GRAPHIC begin 644 g121722g00x35.jpg M_]C_X``02D9)1@`!`@``9`!D``#_[``11'5C:WD``0`$````9```_^$-=6AT M='`Z+R]N&%P+S$N,"\`/#]X<&%C:V5T(&)E9VEN/2+O MN[\B(&ED/2)7-4TP37!#96AI2'IR95-Z3E1C>FMC.60B/SX*/'@Z>&UP;65T M82!X;6QN#IX;7!T:STB061O8F4@6$U0 M($-O&UL M;G,Z<&AO=&]S:&]P/2)H='1P.B\O;G,N861O8F4N8V]M+W!H;W1O&UL;G,Z27!T8S1X;7!#;W)E/2)H='1P.B\O:7!T8RYO&UP0V]R92\Q+C`O>&UL;G,O(@H@("!X;7!2:6=H=',Z5V5B M4W1A=&5M96YT/2(B"B`@('!H;W1O&UL.FQA;F<](G@M9&5F875L="(^36EC&UL.FQA;F<](G@M M9&5F875L="(O/@H@("`@/"]R9&8Z06QT/@H@("`\+WAM<%)I9VAT&UP0V]R93I#:4%D&UP0V]R93I#:55R;%=O&UP;65T83X*("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@(`H@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M"B`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`*("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@(`H@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@"B`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`* M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@(`H@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@"B`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`*("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@(`H@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@"B`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`*("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@(`H@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@"B`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`*("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@(`H@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@"B`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`*("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@(`H@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@ M("`@("`@("`@("`@("`@("`@"B`@("`@("`@("`@("`@("`@("`@("`@("`@ M(`H\/WAP86-K970@96YD/2)W(C\^_^X`#D%D;V)E`&3``````?_;`(0``0$! M`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0("`@(" M`@("`@("`P,#`P,#`P,#`P$!`0$!`0$"`0$"`@(!`@(#`P,#`P,#`P,#`P,# M`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#_\``$0@`.@$/ M`P$1``(1`0,1`?_$`(H```$$`@,!`0`````````````!!PD*!0@$!@L"`P$! M`````````````````````!````8"`0(#!04$!@,1`````0(#!`4&!P@`$0DA M$A,Q49$4"D&A(A468;%B%W&!,K'(E&/#!T?%2DB-3)'2T=K8G=SDZ$0$` M````````````````````_]H`#`,!``(1`Q$`/P"_CU'WC\1X!U-[Q^(\`\P^ M\?CP#J/O'XCP%ZF]YOOX"=1]X_$>`=1]X_$>`=1]X_$>`O4W\7W\!.H^\?B/ M`7J8?8)A^/`3J;WC\1X!U'WC\1X"_B_B^_@'XOXOOX!^+^+[^`G4?>/Q'@'4 MWO'XCP#J/O'XCP#J8?8(_?P%ZF]YO'V>WQX"=1]X_$>`=1]X_$>`OXOXOOX" M=3![1'[^`=1]X_$>`=1]X_$>`=1]X_$>`O4P>(^8`_KX">8?>/QX!U-[Q^(\ M!?Q?Q??P$\P@/01'K[NOCP#J/O'XCP$X$&'U`.Y>?-5-!2P#OWER4Q="]N3<3*>N^>K!4\P6E"H$NJ;#%N1B8[9T$ M[6IJH/HF11I\[($G%OE)$IB-/7'RN0`AQ63"-OL=?4%VV[W\W;4[JQI'%N[- M&LSK'%1R+=XM.MHY/F(VF!BW;*1.YC)B/DX]=B[4 M)Z2S<_D$_F()3`!@#<>J5TE1K<+623-BL1(2/0CRSMMEUY^S2OHEZ?.S1D%NO4ZI@#J/V`'`KH=YW`'&Z%-RF MVAKM!5_\BHYI:)>-JC<4&TL<[1)18C!]Y01.9`_E4,#.=AWZ@MAN2ZC]&]Z" MFQ/O[2%)&JLW%@AEJE$9P5JY2LWC-9J_5*-OL+7TM-5GZW>&G4G$3,M' MB+V$DUTDU02(X;',!TU"B'B&]$5'%B(R.BB/)&0)&LFS$K^7>JR4J]*U1(B# MJ2D%^JSU\OY/,JJ?\1SB(CXCP,B'M#^D.!$E@_3G8ZXYCV;S-L-M]N##P=EV M(R8UP1@FG90CJ1B^D8.BY!".I3Q"/AJZK/23^P%06=D.K(%22;'2("7G\YC! M7F[ANW6X>#_J*-*M&L;;;;#0&M&55=9R7N@!D!1Z,T6[V^S15I#\[>QZ\PU& M78QB1#BFJ`D$!,3RB/@%AO>K1K/5SP3E*P:H;L;J8HS_`%JH6.RXNCH',+:? MJ-JML2R5DHNG6"LVVO2J;J/L:K7Y!(R+IHHW5<%4\X@42F"4JIFE#U6LGG"+ MIS9Z]"&F4W0D%R25-&-1D2.13$4Q<%>"<#^7P\W7IP*]7U(F^>S&H.EM@-IH ME/M,K0<[BV_9=R37?()L*857R`WB(V5?#ZA5C+9*O,>A!^DF50?RD9%13R$* M"@!*QVY-V*+W#-,L&[840R#=/)%4;A<8!(Q?4IV28/\`U1?ZBX2!9P=+\FLK M5`YNU6$;EGS#5SHN-\XY/UXR,^KDVA0\HXOL/Y-(UFVN M&@#!2DLR692+&?AVDD@E\PU61-YVQU2IB10Q3E"H;V-NZSMIB/N*YO[6G=PR MO?K1GU[:'M5PQ>+U8#/((UTAT0=GI*?HIQT,[A\BP#9*4JTH5OZCDZ@MA.(N MD"%"V!NS:99IAQSC.@SUMAJV=O?'<:[>EMSF8:H.EHRDX M[CVZDS/.3)*(@Q:^AT.NX024!Q];,*36`\4UW']FS5E[8&T,63,]DRAFFS(V M6VV25Z3FW#51U M>R+E1;T$2$2*8X^4`X&WW`:?.V;<;ZVX:R;GS,$^G5\8XBIDY>[M.J)F7,R@ MX%FH[,%8DFOTEDG-2U<205LMHV(R2R-(3JL$DUDFK9*%KCJ*;&>&<%576 M(@4RP3'9&TZI5LJC^&Q]DC.6!+:=,AH3)>*\MW#]3PCU`14;**QMVDKA4K%' MF6Z?,LY&/1[KN]GCM*[^LZ?$;IX.L%B0QWE+'T2X M@,=[(4&%CFUB8S00;Q\[&J9#=TY\A+'9(=&+IL*OHE24;G3,$U&UK:3-KEFF M8A+5;J9.U+%^0;C!3]*GG->F6DU7*9.R,6<7C8#^LU2>I$4,BW/*KN#R_3*);]?=AIVK MYDQ)=X>XM94B(U]C-UEA;XJ9BW<4"JZ2,J8BS$ZYRBB=(IA"5#'^^^5;GV6W MW_25FEZZDJW)Z_P`T M,>[*`*"?H?@2F3DW$5F$F+)/R#:)@:]%2$Y-RKU0$6<9$1+19_(R#M8WX4FS M-F@=0YA\`*41X$9F'9*SY,A\R97RMJ=F6YAM/'+P*,4LIA@D2TUE39S47C"B M'C+!F")EF!IVKV)W-32*[9NX-*3:Z:I"@@D0@4^^USD:V=AGOE91[?\`EJ.M M=!U+W.G8IIB]&_.X-TYA/U)*21M=[E(RT+89BNEG`U-R;_B_U._\`(6S7_@L3<"*GO@=B##O=5H"V2**$3BK=VA01 M&^,LO%4<1D/]7 MLC@Z!R;V9^[;`W")V#K*O%UZDY$EV9C_`*IB)UFW M35KMQ1*LD\;^#U503$<<#T$S_P!H?ZOW!P-27G^.VM_Y2;I_?#1N!"5WTOI] MZ3W$XUSLYJR:-PWW`*4G&2<%;VUCW,:W:*EO'1-H==:71+E*U%6)=9$& MDYCHRLE5\GM6@)I15_91L8LY;S";-//\`U_=>!Z`H^T?Z1_?P.FY#OM7Q;1+ADBZR!8JI46MR M]IL+\2^H=&*A62SYT#9`!*HZ>KD1]-!`G51=8Y4R`)S``A&94J1-9CP-G6O; M*:?9OL\CNG&6(^:8@DA@T&\;0[+!+5:B8[B#268V;^.)CS'AFB1#'036).&= MN_*554>@55.P%G7(?:)[J.P?9KV<_/:QC[-=S4E<%*6L(P3MLC*,$I''4L+Z M*D)*%3;9AQH1%JN#-PNW&=:-D"F\XGZAZ!_`I]?5G]NZA7C6-KW.,?/S8[V: MU,DJ`W?VV(57CW=XQ\^NK",@V:R[(GJ)V^AVV=;OXA^(E43;`N@8PAZ'IA)W MV)\KY0W>TXPYW"=FIN)M^?LBTB8Q3&.H6,-#5ZH43'EOD*Y)'BH<5%DTK=E& MR5X9NR/B"!7"P-6J)$6K1)/@3E<"FO\`6K__`%^:T?YKFG]UU[X%G#0'_`II MG_E9P)_=?6.!L!D?(M5Q34']YNKU:/KD:_K\:[=-VB[Y8KNT6&*JT,DFU;%. MNJ+F:F6Z0^4!\H'$P^`#P(B_J(<(9.S_`-G_`'#HF(V;^7MT=5:W?U*_%)N5 MY*Q5O&]R@;I:XA@T:$47?.S0$,X630*416.B!``3&`.!J-])-=ZM:>S=C2!@ M5FH2^/!Y]- M]HMIVH^LL8RF#6ZSN*UPM^,K3F.R,"_ZMK\-B?#L(PO",F]3*JW26EI-^G`@ MF<2G4=.12#H8H]`O1;2?X9-CO_@;+_\`=_8>!2X^BUILO:-:MVUXW)-ZHQ&F M_J%IVR=N[9/2 M+;385HP[DFMDW>[%#L\%[3%3_P#9^V5D(:9>SF-83&),0H7`!S=B[_`&5PV0^1,.%/]G[^=OY9^5LA.&+@QU^NAC_R M3S?EWG"J!Z?RG7T>O_1]?+P&YW&U\S/LG3(S'..\Z5W#E+=R\')9%82>*29$ M?Y!C*_8HNP$I+EZO<:VG"TZR?E@-)@B"1GCMDHHBFNB4Y_,&U]?;S36#B&UC M?QLI/MXYHC,2,-&+0T2]D4T2E=.8V):%,'2F#6\LG5K=3:"6;R`Y).NF[U_$2$\^M!;9#:4@:)+6"/ MAHAE&EE+7&IV*PL'EFDEVQW#IPU^4;G.I^%`G3Q!FLJ8"V.NFQF-K_3[YB?,U1(V1M46G5;9$6MQ2 MK$DX(9I:J1/+Q7D4:.0]1HJ?UVJB*GG]0).3#YA'VAU]P^/QX&DLI@#8]WM; M';"1^PU"8TF,ITEC5'$:V#E7AW%'E[3$6IXL[O?\QD93]8)N8=-%%TFV38E3 M,;S,SF'KP-V?W<",G;;M1:O[;[,ZP[D6**>4C9;5K)=&O-7R74TVR3N[5RF3 MJ4T7'60X]`G`.!78V1[$MHV M8[CN(.YK:]LV$%FC!KK'BM'ID%A(AL=.F^+YV7G*RE9&S_(SB>?*N59#B9"3*0`=.HZ'=24PXC M6BJGB1$[IP8@>`G-[>!J%MCKKG7820QW'T;/E1QCC:F7:G9#LM"F\._S!)D^ M2: M;-L21=LVQV31T_(B0KMRU9J.':C1LNX`QB)&55,F40*)S"'40K\]UGL*5WNA M;'8EV3=[$R.NU]PE#1<12;-C?'+:2N;HL--IVB%<66>E;6BQ?KUBRBNYBU$& M3=5N1R=-0RH`02A.3B>#R;6Z3%PV7+Y`Y*NC`A&SRXUZG*41K,-T&[=!%T\K MQY^QI(2KE1(ZK@Z*Y&YCJ=$TDRE`.!I;W--%[7W%];+SJ@IF.*Q)BK)\="M; MP_;X\4M]W,[KMLB+7&.*Y*N+="P\6@9Q"I)+IKL71CD,82G((AT#\.V'H=9> MV]K93M4&^9([+F*L<-Y_]$R#O'IJA=R/K/:Y:V2RUBE&ULF8>4;$:53&"<_=5+,WK MH;;8AP#MMA;%&,L/5?8;"C^ MM8JH%1QS`/IK7JS*S#V%I<"PKL6[E566;6C,\DNRCR&7,DDFF941$I0#PX#" M[$:$[?[4RV+H[*V^K"O8AQ_F/%^8)[$V(]TH@/4!`0]H<"* MFH]K^KZO9@S'G_M\WD-9[?GR4;6+,>&)^"-D'5G(MI;KN%_U@`(8;1[MUZS=OZMWF-P57YY]< M\LV=W>,S9DR+/*W++N7KD_DXWV1#+>.,MVN+N-WCKGBU*&M9 M)6!K[N"B4:Y8(:Z&CHYE_P!I!5N?TT/G' M2#;UCATZD1]=0GJ'_$'@7J/CP.6/A_:$"_Z0@'PZB'7@)U*/@!B"/N`Q1$?M M\``>H\#@.Y:*CW#-H_DXYBZD5/2CVSQ\U:N'RO\`U;-!=5-5R?J/L(!AX&0' MP]H@7_2$"_OZ<`#H/L$IA]O0I@$?@`B/`3J7V"8H#[A,4!^`CUX!U#H(]2]` M`1$?,`@`![1$>O0``.!QF;]C($.K'O6;Y-,_IJ*,G2#HB:@!U$AS(**%*<`^ MP?'@IBE$/# M@<\1`H"8P@4I0$3"80`"E#Q,8PCT`I2A[1'@<&.E(R80,ZB9)A*-2*G0.YC7 MK9\@59,0!1$RS555,JJ8B'4HCU#KP.=U+]IB!^P3%`?AUX"^P`$1#H/B`]0\ MH@/L$#=>GCP`!`1Z`8HC[>@&*(]`_8`]>!PI"2CHEJ9[*R#&+9$,0AG!D/V?;XCT^WP]OA[?#KP#^L/B'4?Z`^W@'`.`<`X!P#@ M'`/C_5X<"H_M5BS#5VW@VQ?7C;[M?;!32E[@UD\,=Q+,V:L.9"U58,JE",3X MTQ8RK5]858:2[7:FE4I=C#).E7+L_JKK"0!`-Y>V_5-7NX;JY9Z#D+7XKFAZ MN;)Y0QK2Y^N[29PSUAG(\@V:Q3J5R#@7-L]8("Z6S&"_YG^7MF+M1PUB%VBK M5`P@F/0.@]FG4?"#_6J?V/B:$ZM6PV/ME]VZ[C.WV3)F3ID6A5Y MPUE+J\A%XN&@6#6-3*NW5]-!,!'J;I&.@T@I_:YL>: M-AZ!$T??*O[^Y;S13Z'8ZK86%K=8@G:PRKL+".K/GJNQ;NOP;"P'2@Y)PZ,D M=05B$)P#8A2A6[NO]RN&RID'05FTJC_5I"GP>]VW>:L!KP[:5PS`8FKV/ M+`QB)*$>OBD5E55$RJD>"F`=0,8>!NUM%7=*%^W?4JMKGO9JKK=2VVQN))?, M4U6,[Y`REJ_E')!H4SNQ:ZY8RA5LE(Y'I6,,DE;$,*HR\6L=LT1!1(?6.0P: MR:X7O"FJ&XVHD92,?=O+*%GS_ED^(V;;M>[J9UG[%4(^PU>55>94S%KE+S<] M1LA8PK+9B(O9)^H!XA15-PF<5``!"S=MC+YEK^KVQ4[KK%%G,]PV$\G2>&8@ M44G1I+)K&G3#BEM$&BY3(/72T^F@"**@"197RD,'0P\"NAKG5NQ!=-4:/F?: M/8W&EEV51Q[%R.Q.9=B=H;71=RZ=FY.%27R4QD&,ED"LY4Q;;:G<<&FNUK5C;3Y:72J^0*QCZ\%=2CA5287BV\W*-D6L@H)3@0X-CD1CI%@K9[1J$[ M-F1Z6;8*[[+4.*SE@S5'+#K*.(KKJ&]0E4LU7782FUZSVS'M2C:6P1:.HFR/ M"L)8LF9)!LJL"YB`#!0.)J*Q_N,QKD)/WC>6YZ\/:&U3 MU\Q--_RYJE-91$W%.HM=X].](Y!1JF+I\=,P`!!.`,)8;/?5NR/W')&]/9*'8+L"QCUP2-<@Z$'75,!`0[J5'3S,N]N\E&[P^38!K; MJ;E:,C]/\'[.90>XHU\6U7:46JG@MV,I,1D-*NHN%DP1!(&ZB@I\".![C_(6+>V3BW8:Y]IFN MOJ]-:\XF>6#;6"[D>:I"UTAO>Z9!M@VJN=%IU:4M\5"U-[*)V6<3BW#EU&H$ M4,`BFD=0H25;GY[RI%:U:*]L^D7W.&YV5MWLZ:?Q;V\Y85U#JS6$; M6?(5>7B9N-?1:VT-F0)7XB9/)MW1HY9\\*)U"AP')[8.2HS)T1L%VH=N,:;` M5VOT]21R-JK`[9-+/CS,N9-+IJU`]AXEX^0LSFR6"6UYN?EK;V01EUG3F."/ M66\OG4ZAU#63M^:A6_N@]S/#-BQG)S.-<)5/2J4QA2'66LR'BJ,^R%CBWS=Q M=Q*)9L<[/T-EFL^.7+^A;$TC:JYS&^$MEP8[1Y)L]TIK M%:J,>>)JE=@JO%*/Y&54C*[$1\)'GE)AZM)2\D=E&MVS8S^5D7*CARL)?476 M4,DTRP0L=6Y^H5>)M42-VJ;J9G:^_D7!&S=,J:8'4$"$*! M0Z`'3@9""UWU^J]1L&/ZS@K#=&F M5B)(D*!W**A@*4``>@!P,=C;5_6C#,VO9 MJU>O/;!)5^MP$%(VR4+.6J0AH:.C'UFFRLVT<68L+MDV07FI4L>S10!PY,HL M"*1">;RE``#KCK$N*7Z%K;/L8X\>MKY,Q]CO+=W2JVY0NEAB19C%3UL26C3I MV*9C!CF_R[IX"RZ/H)^0P>0O0'!_XOAP&IRC@?!N<&\:SS5AC$^8&D*HJK#M MLHXZJ%_0B55P*"ZL8E:X>6(P46`H`!V"L8SQO2::7'-,Q]1ZCC MPK-['%H57J<#`4LL?)$43D6`5>)8-(,&3]-8Y5TO0\BI3"!@$!'@9DE7K*5: M"F)UR!3IY84:T6IDAX\M9+7!9#&C7RP(-PBPA!CA^7^4]+T/1_!Y?+X<#$5O M&^.J:]"2I]`I-4D@KT+40D*U58*"?!4ZV"H5VK_-Q;!JX_3L`"YP9,O-\LU` MYO2(7J/`RCJIU5[9(JY/:S7GEO@8^1B8*UNH6-<66%BI4CH^ M4.U2%RBBJ1-<4RB<#>4.@?;&KUB,G)RT1M<@8^S6=.,1LMC8P\>TGK$C"HJ- MH9*=ET&ZJL7>R92 MC-9=?([)JB3)U!5/+DMK>MISQ90ZAA,+@''K"(]1-UX#RO M*Q6I"=AK3(5V"?6>N(2C6NV1Y$1[J>@&LVF@E--H686;GD(MO,)-DRNB(*$* MX*F4%`,!0Z!PY*CTJ8LU?NLO3JK*W*IHR#>JVV2KT2^L]9;RZ0(RJ%>GG316 M5A49-$`(X*V53*L7P.`AP.T<`X!P#@
-----END PRIVACY-ENHANCED MESSAGE-----