0001178913-13-003188.txt : 20131114 0001178913-13-003188.hdr.sgml : 20131114 20131114060335 ACCESSION NUMBER: 0001178913-13-003188 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20131114 FILED AS OF DATE: 20131114 DATE AS OF CHANGE: 20131114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Pointer Telocation Ltd CENTRAL INDEX KEY: 0000920532 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 000000000 STATE OF INCORPORATION: L3 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13138 FILM NUMBER: 131216606 BUSINESS ADDRESS: STREET 1: 14 HAMELACHA STREET CITY: ROSH HA'AYIN STATE: L3 ZIP: 48091 BUSINESS PHONE: 97235723111 MAIL ADDRESS: STREET 1: 14 HAMELACHA STREET CITY: ROSH HA'AYIN STATE: L3 ZIP: 48091 FORMER COMPANY: FORMER CONFORMED NAME: NEXUS TELOCATION SYSTEMS LTD DATE OF NAME CHANGE: 19980623 FORMER COMPANY: FORMER CONFORMED NAME: NEXUS TELECOMMUNICATIONS SYSTEMS LTD DATE OF NAME CHANGE: 19980112 6-K 1 zk1313884.htm 6-K zk1313884.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 6-K
Report of Foreign Private Issuer
 
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
 
For the month of November 2013
 
Commission File Number: 001-13138
 
Pointer Telocation Ltd.
(Translation of registrant's name into English)
 
14 Hamelacha Street, Rosh Ha'ayin, Israel 48091
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F x Form 40-F o
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes o No x
 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
 
 
 

 
 
Pointer Telocation Ltd.
 
On November 14, 2013, Pointer Telocation Ltd. issued a press release announcing its Q3 2013 financial results.

A copy of this press release is annexed hereto as Exhibit 1 and is incorporated herein by reference.
 
Exhibit
 
Exhibit 1
Press release dated November 14, 2013, announcing Pointer Telocation Ltd.’s Q3 2013 financial results.

 
 

 
 
Signatures
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
Date: November 14, 2013
POINTER TELOCATION LTD.
 
By: /s/ Yossi Ben Shalom
——————————————
Yossi Ben Shalom
Chairman of the Board of Directors



EX-99 2 exhibit_1.htm EXHIBIT 1 exhibit_1.htm


Exhibit 1


For Immediate Release
 
Pointer Telocation Reports Record Results for Q3 2013
 
·
Record revenues of $ 24.4 million, growing 21% year over year
 
·
Non-GAAP net income of $ 1.9 million, an increase of 33% year-over-year
 
·
Closed Brazil transaction in Q4 2013
 
·
Annual revenues expected to exceed $ 100 million in 2014
 
Rosh HaAyin, Israel November 14th, 2013 Pointer Telocation Ltd. (Nasdaq CM: PNTR) - a leading developer, manufacturer and operator of Mobile Resource Management (MRM) and roadside assistance services for the automotive industry, today announced its financial results for the third quarter of 2013.
 
Financial Highlights
 
Revenues: Revenues for the third quarter of 2013 increased 21% to $ 24.4 million as compared to $ 20.2 million in the third quarter of 2012.
 
International activities for the third quarter of 2013 were 27% of revenues, at the same level as in the third quarter of 2012.
 
Pointer's revenues from services in the third quarter of 2013 increased 15% to $ 15.2 million (62% of revenues) compared to $ 13.1 million (65% of revenues), in the comparable period of 2012.
 
Revenues from products in the third quarter of 2013 increased 31% to $ 9.2 million (38% of revenues) compared to $ 7 million (35% of revenues) in the same period in 2012.
 
 
 

 

 
Gross Profit: In the third quarter of 2013, gross profit was $ 7.6 million (31.2 % of revenues) compared to $ 6.7 million (33 % of revenues) in the third quarter of 2012.
 
Operating Income: Operating income increased 25.1 % to $ 1.5 million in the third quarter of 2013 compared to $ 1.2 million in the third quarter of 2012.
 
Net Income: Net income from continuing operations attributable to Pointer's shareholders was $0.8 million or $ 0.14 per share in the third quarter of 2013 compared to $ 0.5 million, or $ 0.09 per share, in the third quarter of 2012.
 
Non GAAP Net Income: Pointer recorded non-GAAP net income of $ 1.9 million in the third quarter of 2013, an increase of 33% as compared to non-GAAP net income of $ 1.4 million in the third quarter of 2012.
 
Adjusted EBITDA: Pointer's adjusted EBITDA for the third quarter of 2013 was $ 2.6 million as compared to $ 2.5 million in the third quarter of 2012.
 
David Mahlab, Pointer's Chief Executive Officer, commented on the results:  "We are very pleased with our third quarter results, in which we presented record revenue and continued year-over-year growth across all financial metrics. Looking ahead, we are pursuing many exciting opportunities both in Israel and internationally. We are continuing to devote a great deal of effort to business development, pursuing new vertical markets and territories, while developing and launching new products in order to enable us to sustain our high end market position and to continue to improve our overall performance. Despite price competition and challenging economic conditions in parts of the territories where we are active, our results continue to improve.  In addition, in October 2013, we closed the transaction for the full consolidation of our Brazilian subsidiary. As a result, we expect that full year revenues in 2014 will exceed $100 million, a milestone which will mark yet another remarkable achievement in the development of our company."
 
Conference Call Information:
 
Pointer Telocation's management will host today, Thursday, November 14th, 2013 a conference call with the investment community to review and discuss the financial results, and will also be available to answer questions.
 
 
 

 

 
The conference call will commence at 9:30 AM EST, 16:30 PM Israel time.
 
To participate in the call, please dial in to one of the teleconferencing numbers below. Please begin placing your call at least 5 minutes before the time set for the commencement of the conference call.
 
From USA: +1-888-281-1167, From Israel: 03-918-0650
 
A replay will be available from November 18th, 2013 at the company website: www.pointer.com
 
Reconciliation between results on a GAAP and Non-GAAP basis.
 
Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Condensed Interim Consolidated Statements of Cash Flows.
 
Pointer uses adjusted EBITDA and non-GAAP net income as a non-GAAP financial performance measurement.
 
We calculate adjusted EBITDA by adding back to net income, net loss from discontinued operations, financial expenses, taxes, depreciation, the effects of non-cash stock-based compensation expense, amortization and non-cash impairment of goodwill and intangible assets.
 
We calculate non-GAAP net income by adding back to net income, net loss from discontinued operations, the effects of non-cash stock based compensation expenses, amortization of intangibles related to acquisitions and non-cash tax expenses resulting from timing differences relating to the amortization of acquisition-related intangible assets and goodwill.
 
The purpose of such adjustments is to give an indication of our performance exclusive of non-GAAP charges that are considered by management to be outside of our core operating results.
 
Adjusted EBITDA and non-GAAP net income are provided to investors to complement results provided in accordance with GAAP, as management believes the measure helps illustrate underlying operating trends in the Company's business and uses the measure to establish internal budgets and goals, manage the business and evaluate performance. We believe that these non-GAAP measures help investors to understand our current and future operating cash flow and performance, especially as our acquisitions have resulted in amortization and non-cash items that have had a material impact on our GAAP profits. Adjusted EBITDA and non GAAP net income should not be considered in isolation or as a substitute for comparable measures calculated and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.
 
 
 

 

 
About Pointer Telocation:
 
Pointer Telocation is a leading provider of technology and services to the automotive and insurance industries, offering a set of services including Road Side Assistance, Stolen Vehicle Recovery and Fleet Management. Pointer has a growing list of customers and products installed in more than 45 countries. Cellocator, a Pointer Products Division, is a leading AVL (Automatic Vehicle Location) solutions provider for stolen vehicle retrieval, fleet management, car & driver safety, public safety, vehicle security and more. The Company's top management and the development center are located in the Afek Industrial Area of Rosh Ha'ayin, Israel.
 
For more information: http://www.pointer.com
 
Forward Looking Statements
 
This press release contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of the Company. The words "believe," "expect," "anticipate," "intend," "seems," "plan," "aim," "should" and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of the Company with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in the markets in which the Company operates and in general economic and business conditions, loss or gain of key customers and unpredictable sales cycles, competitive pressures, market acceptance of new products, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this press release. Various risks and uncertainties may affect the Company and its results of operations, as described in reports filed by the Company with the Securities and Exchange Commission from time to time. The Company does not assume any obligation to update these forward-looking statements.
 
Contact:
 
Zvi Fried, V.P. and Chief Financial Officer
Kenny Green/Ehud Helft, CCG Investor Relations
Tel.: +972-3-572 3111
Tel: +1 646 201 9246
E-mail: zvif@pointer.com
E-mail: pointer@ccgisrael.com
   
 
Chen Livne, Gelbart-Kahana Investor Relations
Tel: 972-3-607 4717, +972-54-302 2983
E-mail: chen@gk-biz.com
 
 
 

 
POINTER TELOCATION
 
INTERIM CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
 
   
September 30,
   
December 31,
 
   
2013
   
2012
 
   
Unaudited
       
             
ASSETS
           
             
CURRENT ASSETS:
           
Cash and cash equivalents
  $ 2,697     $ 3,685  
Restricted cash
    91       108  
Trade receivables
    19,732       16,215  
Other accounts receivable and prepaid expenses
    2,352       2,069  
Inventories
    5,124       3,982  
                 
Total current assets
    29,996       26,059  
                 
LONG-TERM ASSETS:
               
Long-term accounts receivable
    556       582  
Severance pay fund
    10,189       9,034  
Property and equipment, net
    11,233       10,364  
Investment and long term loans to affiliate
    1,003       814  
Other intangible assets, net
    1,665       2,242  
Goodwill
    49,665       47,190  
                 
Total long-term assets
    74,311       70,226  
                 
Total assets
  $ 104,307     $ 96,285  
 
The accompanying notes are an integral part of the interim consolidated financial statements.
 
 
 

 
POINTER TELOCATION
 
INTERIM CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
 
   
September 30,
   
December 31,
 
   
2013
   
2012
 
   
Unaudited
       
LIABILITIES AND SHAREHOLDERS' EQUITY
           
             
CURRENT LIABILITIES:
           
Short-term bank credit and current maturities of long-term loans
  $ 9,308     $ 11,129  
Trade payables
    13,986       11,248  
Deferred revenues and customer advances
    8,526       6,954  
Other accounts payable and accrued expenses
    7,484       7,251  
                 
Total current liabilities
    39,304       36,582  
                 
                 
LONG-TERM LIABILITIES:
               
Long-term loans from banks
    7,531       9,339  
Long-term loans from shareholders and others
    1,083       925  
Other long-term liabilities
    5,021       3,765  
Accrued severance pay
    11,432       10,328  
                 
      25,067       24,357  
COMMITMENTS AND CONTINGENT LIABILITIES
               
                 
EQUITY:
               
Pointer Telocation Ltd's shareholders' equity:
               
Share capital -
               
Ordinary shares of NIS 3 par value -
               
Authorized: 8,000,000 shares at September 30, 2013 and December 31, 2012; Issued and outstanding: 5,561,558 shares at September 30, 2013 and 5,555,558 at December 31, 2012
    3,876       3,871  
Additional paid-in capital
    120,776       120,290  
Accumulated other comprehensive income
    1,762       1,127  
Accumulated deficit
    (92,975 )     (95,540 )
                 
Total Pointer Telocation Ltd's shareholders' equity
    33,439       29,748  
                 
Non-controlling interest
    6,497       5,598  
                 
Total equity
    39,936       35,346  
                 
Total liabilities and shareholders' equity
  $ 104,307     $ 96,285  
 
The accompanying notes are an integral part of the interim consolidated financial statements.
 
 
 

 
POINTER TELOCATION
 
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except per share data)
 
   
Nine months ended
September 30,
   
Three months ended
September 30,
   
Year ended
December 31,
 
   
2013
   
2012
   
2013
   
2012
   
2012
 
   
Unaudited
       
Revenues:
                             
Products
  $ 25,022     $ 22,525     $ 9,206     $ 7,009     $ 30,402  
Services
    44,756       40,421       15,192       13,162       54,430  
                                         
Total revenues
    69,778       62,946       24,398       20,171       84,832  
                                         
Cost of revenues:
                                       
Products
    14,799       13,406       5,602       4,126       17,988  
Services
    32,510       28,391       11,167       9,317       38,573  
Amortization of intangible assets
    -       181       -       60       181  
                                         
Total cost of revenues
    47,309       41,978       16,769       13,503       56,742  
                                         
Gross profit
    22,470       20,968       7,629       6,668       28,090  
                                         
Operating expenses:
                                       
Research and development
    2,296       2,036       826       647       2,716  
Selling and marketing
    7,524       6,583       2,629       2,138       9,067  
General and administrative
    7,165       6,986       2,512       2,177       9,232  
Amortization of intangible assets
    639       1,486       129       481       1,987  
                                         
Total operating expenses
    17,624       17,091       6,096       5,443       23,002  
                                         
Operating income
    4,846       3,877       1,533       1,225       5,088  
Financial expenses, net
    785       1,285       187       357       1,628  
Other income (expenses), net
    -       12       -       3       (5 )
                                         
Income before taxes on income
    4,061       2,580       1,339       865       3,455  
Taxes on income (Note 6)
    1,054       738       591       192       861  
                                         
Income after taxes on income
    3,007       1,842       748       673       2,594  
Equity in gains of affiliate
    340       106       158       25       38  
                                         
Income from continuing operations
    3,347       1,736       906       648       2,632  
Loss from discontinued operations, net
    -       995       -       296       995  
                                         
Net income
    3,347       741       906       352     $ 1,637  

 
 

 
POINTER TELOCATION
 
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except per share data)
 
   
Nine months ended
September 30,
   
Three months ended
September 30,
   
Year ended
December 31,
 
   
2013
   
2012
   
2013
   
2012
   
2012
 
   
Unaudited
       
                               
Other comprehensive income (loss):
                             
Currency translation adjustments of foreign operations
    1,104       (960 )     516       (35 )   $ 299  
Realized losses on derivatives designated as cash flow hedges
    (24 )     237       -       76       224  
Unrealized losses on derivatives designated as cash flow hedges
    -       (31 )     -       (5 )     14  
                                         
Total comprehensive income (loss)
    4,427       (13 )     1,422       388     $ 2,174  
                                         
Profit (loss) from continuing operations attributable to:
                                       
Equity holders of the parent
    2,565       1,224       780       503       1,833  
Non-controlling interests
    782       512       126       145       799  
                                         
      3,347       1,736       906       648       2,632  
                                         
Loss from discontinued operations attributable to:
                                       
Equity holders of the parent
    -       630       -       274       630  
Non-controlling interests
    -       365       -       22       365  
                                         
      -       995       -       296     $ 995  
Total comprehensive income (loss) attributable to:
                                       
Equity holders of the parent
    3,200       (110 )     1,119       229       1,493  
Non-controlling interests
    1,227       97       303       159       681  
                                         
      4,427       (13 )     1,224       388     $ 2,174  
                                         
Earnings per share from continuing operations attributable to Pointer Telocation Ltd's shareholders:
                                       
Basic net earnings per share
  $ 0.46     $ 0.24       0.14     $ 0.09     $ 0.35  
                                         
Diluted net earnings per share
  $ 0.46     $ 0.24       0.14     $ 0.09     $ 0.35  
 
The accompanying notes are an integral part of the interim consolidated financial statements.
 
 
 

 
POINTER TELOCATION
 
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

   
Nine months ended
September 30,
   
Three months ended
September 30,
   
Year ended
December 31,
 
   
2013
   
2012
   
2013
   
2012
   
2012
 
   
Unaudited
       
Cash flows from operating activities:
                             
                               
Net income
  $ 3,347     $ 741     $ 906     $ 352     $ 1,637  
Adjustments required to reconcile consolidated net income to net cash provided by operating activities:
                                       
Depreciation, amortization and impairment
    2,768       4,270       855       1,211       5,546  
Accrued interest and exchange rate
    (37 )     19       (18 )     16       118  
                                         
Changes of long-term loans to affiliate
    -       34       -       6       -  
Accrued severance pay, net
    (114 )     103       (47 )     148       91  
Gain from sale of property and equipment, net
    (169 )     (228 )     (2 )     (104 )     (271 )
Equity in losses (gains) of affiliate
    (340 )     106       (158 )     25       (38 )
Amortization of stock-based compensation
    163       222       106       55       265  
Decrease (increase) in restricted cash
    17       10       7       4       15  
Increase in trade receivables, net
    (2,852 )     (2,872 )     (1,374 )     (555 )     (1,572 )
Decrease (increase) in other accounts receivable and prepaid expenses
    (363 )     (460 )     (107 )     182       46  
Decrease (increase) in inventories
    (945 )     467       (851 )     (416 )     732  
Deferred income taxes, net
    671       738       240       274       847  
Decrease (increase) in long-term accounts receivable
    12       269       (20 )     36       234  
Increase  (decrease) in trade payables
    1,531       386       1,959       (587 )     965  
Increase (decrease) in other accounts payable and accrued expenses
    1,718       383       458       (558 )     (274 )
                                         
Net cash provided by operating activities
    5,407       4,188       1,954       89       8,341  
                                         
Cash flows from investing activities:
                                       
Purchase of property and equipment
    (3,188 )     (3,215 )     (752 )     (818 )     (4,033 )
Proceeds from sale of property and equipment
    1,458       1,194       660       448       1,733  
Investment and loans/Repayments in affiliate, net
    101       (694 )     35       23       (669 )
Acquisition of subsidiary (a)
    -       (251 )     -       -       (251 )
Purchase of business activity (b)
    -       (3,125 )     -       -       (3,125 )
                                         
Net cash used in investing activities
    (1,629 )     (6,091 )     (57 )     (347 )     (6,345 )
                                         
Cash flows from financing activities:
                                       
Receipt of long-term loans from banks
    3,710       9,324       29       1,687       11,670  
Repayment of long-term loans from banks
    (7,859 )     (9,397 )     (2,261 )     (3,740 )     (12,253 )
Dividend paid to non-controlling interest
    -       -       -       -       (1,215 )
Proceeds from issuance of shares
    -       1,945       -       1,803       1,945  
Short-term bank credit, net
    (387 )     (39 )     659       (302 )     (345 )
                                         
Net cash provided by (used in) financing activities
    (4,536 )     1,833       (1,573 )     (552 )     (198 )
                                         
Effect of exchange rate changes on cash and cash equivalents
    (230 )     676       (32 )     549       419  
                                         
Increase (decrease) in cash and cash equivalents
    (988 )     606       292       (261 )     2,217  
Cash and cash equivalents at the beginning of the period
    3,685       1,468       2,405       2,335       1,468  
                                         
Cash and cash equivalents at the end of the period
  $ 2,697     $ 2,074       2,697     $ 2,074     $ 3,685  
 
 
 

 
POINTER TELOCATION
 
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
 
     
Nine months ended
September 30,
   
Three months ended
September 30,
   
Year ended
December 31,
 
     
2013
   
2012
   
2013
   
2012
   
2012
 
     
Unaudited
       
(a)
Acquisition of subsidiary:
                             
                                 
 
Property and equipment
  $ -     $ 22     $ -     $ -     $ 22  
 
Technology
    -       58       -       -       58  
 
Goodwill
    -       304       -       -       304  
 
Non controlling Interest
    -       (133 )     -       -       (133 )
                                           
      $ -     $ 251     $ -     $ -     $ 251  
                                           
(b)
Purchase of business activity:
                                       
 
Working capital
  $ -     $ 27     $ -     $ -     $ 27  
 
Property and equipment
    -       112       -       -       112  
 
Customer list
    -       1,364       -       -       1,364  
 
Goodwill
    -       1,669       -       -       1,669  
 
Accrued severance pay, net
    -       (23 )     -       -       (23 )
 
Employees accruals
    -       (24 )     -       -       (24 )
                                           
      $ -     $ 3,125     $ -     $ -     $ 3,125  
                                           
                                           
 
The accompanying notes are an integral part of the interim consolidated financial statements.
 

 
 

 
POINTER TELOCATION
 
ADDITIONAL INFORMATION
U.S. dollars in thousands
 
The following table reconciles the GAAP to non-GAAP operating results:
 
Non GAAP Net income
 
   
Nine months ended
September 30
   
Three months ended
September 30
   
Year ended
December 31
 
   
2013
   
2012
   
2013
   
2012
   
2012
 
   
Unaudited
       
                               
                               
GAAP Net income as reported
  $ 3,347     $ 741     $ 906     $ 352     $ 1,637  
                                         
Amortization and impairment of  intangible assets
    639       1,670       129       541       2,168  
Loss from discontinued operations, net
    -       995       -       296       995  
Stock based compensation  expenses
    163       222       106       55       265  
Non-cash tax expenses resulting from timing differences
    relating to the amortization of acquisition-related
    intangible assets and goodwill
    1,350       619       787       200       819  
                                         
Non-GAAP Net income
  $ 5,499     $ 4,247     $ 1,928     $ 1,444     $ 5,884  
 
Adjusted EBITDA
 
   
Nine months ended
September 30
   
Three months ended
September 30
   
Year ended
December 31
 
   
2013
   
2012
   
2013
   
2012
   
2012
 
   
Unaudited
       
                               
GAAP Net income (loss) as reported:
  $ 3,347     $ 741     $ 906     $ 352     $ 1,637  
                                         
Loss from discontinued operations, net
    -       995       -       296       995  
Financial expenses, net
    785       1,285       187       357       1,628  
Tax on income
    1,054       738       591       192       861  
Stock based compensation  expenses
    163       222       106       55       265  
Depreciation, amortization and impairment of goodwill and intangible assets
    2,768       3,922       855       1,216       5,198  
                                         
Non-GAAP Adjusted EBITDA
  $ 8,117     $ 7,903     $ 2,645     $ 2,468     $ 10,584  

 


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