-----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, UasEzITfS2/hfUVHHEZ+qoPcxwyIEgrNsJ4NvNA91mHNKVcPaw+0b/Z8eQOoOW2b /V7zENWyYkF9yy2b9geQgA== 0000912057-00-024955.txt : 20000516 0000912057-00-024955.hdr.sgml : 20000516 ACCESSION NUMBER: 0000912057-00-024955 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREATIVE HOST SERVICES INC CENTRAL INDEX KEY: 0000933098 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 330169494 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-22845 FILM NUMBER: 636223 BUSINESS ADDRESS: STREET 1: 6335 FERRIS SQUARE STREET 2: STES G-H CITY: SAN DIEGO STATE: CA ZIP: 92126 BUSINESS PHONE: 6195877300 MAIL ADDRESS: STREET 1: 6335 FERRIS SQUARE STREET 2: STES G-H CITY: SAN DIEGO STATE: CA ZIP: 92126 10QSB 1 10QSB SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2000. OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 000-22845 -------- CREATIVE HOST SERVICES, INC. (Exact name of registrant as specified in its charter) CALIFORNIA 33-0169494 (State or other jurisdiction (I.R.S. Employer of organization) Identification No.) 6335 FERRIS SQUARE, SUITE G-H SAN DIEGO, CA 92126 (Address of principal executive offices) (858) 587-7300 (Issuer's telephone number, including area code) NOT APPLICABLE (Former name, address and fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO As of May 10, 2000, 5,750,625 shares of the registrant's common stock were outstanding. PART I - FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) The following financial statements are furnished: Balance sheet as of March 31, 2000 Statement of Income and Operations for the three months ended March 31, 2000 and 1999 Statement of Cash Flows for the three months ended March 31, 2000 and 1999 Notes to Financial Statements 2 CREATIVE HOST SERVICES, INC. BALANCE SHEET AS OF MARCH 31, 2000 ASSETS Current Assets: Cash $ 3,415,152 Receivables 585,336 Inventory 342,973 Prepaid & Other 154,748 ------------- Total Current Assets $ 4,498,209 Net Property Plant and Equipment 12,102,284 Deposits and Other Assets 168,956 Net Intangible Assets 17,682 -------------- Total Assets $16,787,131 =========== LIABILITIES AND SHAREHOLDER'S EQUITY Current Liabilities: Accounts Payable and Accrued $ 1,674,530 Income Taxes Payable (3,007) Line of Credit 43,075 Current Maturities of Notes Payable 47,619 Current Maturities of Leases Payable 823,859 ------------- Total Current Liabilities $ 2,586,076 Notes Payable, Less Current Maturities 144,107 Leases payable, Less Current Maturities 2,993,898 Shareholders' Equity: Common Stock $12,499,812 Additional Paid-in Capital 922,471 Deficiency (2,359,233) -------------- Total Shareholders' Equity $11,063,050 ----------- Total Liabilities and Stockholders' Equity $16,787,131 ===========
See accompanying notes to financial statements. 3 CREATIVE HOST SERVICES, INC. STATEMENTS OF INCOME AND OPERATIONS
Three Months Ended March 31 --------------------------------------------- 1999 2000 ------------------ ------------------- REVENUES: Concessions $4,082,686 $4,445,606 Food Preparation Center Sales 81,232 28,420 Franchise Royalties 14,178 12,756 ------------------ ------------------- Total Revenues $4,178,096 $4,486,782 Cost of Goods Sold 1,242,389 1,381,645 ------------------ ------------------- Gross Profit $2,935,707 $3,105,137 OPERATING COSTS AND EXPENSES: Payroll and Other Employee Benefits $1,437,380 $1,506,765 Occupancy 676,779 693,584 General, Administrative and Selling Expenses 758,974 809,351 ------------------ ------------------- Total Operating Costs and Expenses $2,873,133 $3,009,700 INCOME FROM OPERATIONS $ 62,574 $ 95,437 INTEREST EXPENSE - NET 185,660 164,168 ------------------ ------------------- NET INCOME(LOSS) BEFORE INCOME TAXES (123,086) (68,731) PROVISION FOR INCOME TAXES, ALL CURRENT 0 3,059 ------------------ ------------------- NET INCOME (LOSS) $ (123,086) $ (71,790) ================== =================== NET INCOME (LOSS) PER SHARE BASIC AND DILUTED $ (0.04) $ (0.01) ================== ===================
See accompanying notes to financial statements. 4 CREATIVE HOST SERVICES, INC. STATEMENT OF CASH FLOWS INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Year ended Year ended March 31, 1999 March 31, 2000 -------------- -------------- CASH FLOWS PROVIDED BY (USED FOR) OPERATING ACTIVITIES: Net Income (loss) $ (123,086) $ (71,790) ------------- -------------- ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET CASE PROVIDED BY OPERATING ACTIVITIES: Depreciation and amortization 287,997 288,626 CHANGES IN ASSETS AND LIABILITIES: (INCREASE) DECREASE IN ASSETS: Accounts receivable (166,495) 17,983 Inventory (17,230) 14,497 Prepaid expenses and other current assets (33,453) (50,110) INCREASE (DECREASE) IN LIABILITIES: Accounts payable and accrued expenses 36,527 51,367 Income taxes payable (11,350) 0 ------------- -------------- Total Adjustments 95,996 322,363 ------------- -------------- Net cash provided by operating activities (27,090) (250,573) ------------- -------------- CASH FLOWS PROVIDED BY (USED FOR) INVESTING ACTIVITIES: Property and equipment (2,569,075) (236,470) Deposits and other assets (8,756) 3,503 Other assets 12,782 (12,483) ------------- -------------- Net cash used for investing activities (2,565,049) (245,450) ------------- -------------- CASH FLOWS PROVIDED BY (USED FOR) FINANCING ACTIVITIES: Net proceeds from (payments on) leases payable 2,633,920 (30,637) (Payments on) proceeds from notes payable (3,005) 245,393 Issuance of capital stock, net 0 3,069,902 Payments on line of credit 0 (13,589) Payments on loan payable, officer-shareholder 0 (51,063) ------------- -------------- Net cash provided by financing activities 2,630,915 3,220,006 ------------- -------------- NET INCREASE (DECREASE) IN CASH 38,776 3,225,129 CASH, beginning of year 139,743 190,023 ------------- -------------- CASH, end of year $ 178,519 $ 3,415,152 ============= ==============
See accompanying independent auditor's report and notes to financial statements. 5 CREATIVE HOST SERVICES, INC. Notes to Financial Statements The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements. Accordingly, they do not include all of the information and disclosures required for annual financial statements. These financial statements should be read in conjunction with the financial statements and related footnotes for the year ended December 31, 1999, included in the Company's Annual Report on Form 10-KSB. In the opinion of the Company's management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company's financial position as of March 31, 2000 and the results of operations and cash flows for the three-month period ended March 31, 2000 have been included. The results of operations for the three-month period ended March 31, 2000 are not necessarily indicative of the results to be expected for the full fiscal year. Net income per share amounts have been calculated using the weighted average number of common shares outstanding. Stock options and warrants have been excluded as common stock equivalents because of their antidilutive effect. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION WITH THE EXCEPTION OF HISTORICAL MATTERS, THE MATTERS DISCUSSED IN THIS COMMENTARY ARE FORWARD LOOKING STATEMENTS THAT INVOLVE RISKS AND UNCERTAINTIES. FORWARD LOOKING STATEMENTS INCLUDE, BUT ARE NOT LIMITED TO, STATEMENTS CONCERNING ANTICIPATED TRENDS IN REVENUES, THE FUTURE MIX OF COMPANY REVENUES, THE ABILITY OF THE COMPANY TO REDUCE CERTAIN OPERATING EXPENSES AS A PERCENTAGE OF TOTAL REVENUES, THE ABILITY OF THE COMPANY TO REDUCE GENERAL AND ADMINISTRATIVE EXPENSES AS A PERCENTAGE OF TOTAL SALES, AND THE POTENTIAL INCREASE IN NET INCOME AND CASH FLOW. THE COMPANY'S ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THE RESULTS DISCUSSED IN SUCH FORWARD LOOKING STATEMENTS. FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE THE INABILITY TO OBTAIN THE SUBSTANTIAL ADDITIONAL CAPITAL NECESSARY TO COMPLETE CONSTRUCTION OF CAPITAL IMPROVEMENTS AWARDED UNDER EXISTING CONCESSION AGREEMENTS, POSSIBLE EARLY TERMINATION OF EXISTING CONCESSION CONTRACTS, POSSIBLE DELAY IN THE COMMENCEMENT OF CONCESSION OPERATIONS AT NEWLY AWARDED CONCESSION FACILITIES, THE NEED AND ABILITY TO ATTRACT AND RETAIN QUALIFIED MANAGEMENT TO MANAGE OPERATIONS, THE NEED TO OBTAIN CONTINUING APPROVALS FROM GOVERNMENT REGULATORY AUTHORITIES, THE TERM AND CONDITIONS OF ANY POTENTIAL MERGER OR ACQUISITION OF EXISTING AIRPORT CONCESSION OPERATIONS. 6 OVERVIEW The Company commenced business in 1987 as an owner, operator and franchiser of French style cafes featuring hot meal croissants, fresh roasted gourmet coffee, fresh salads and pastas, fruit filled pastries, muffins and other bakery products. The Company currently has 9 restaurant franchises which operate independently from its airport concession business. The restaurant franchise business has never been profitable for the Company. Although the Company maintains a current offering circular on file with the FTC and various state authorities, the Company has not sold a new franchise since 1994. In 1990, the Company entered the airport food and beverage concession market when it was awarded a concession to operate a food and beverage location for John Wayne Airport in Orange County, California, which is currently operated by a franchisee. In 1994, the Company was awarded its first multiple concession contract for the Denver International Airport, where it was awarded a second concession in 1994 and two subsequent concessions in 1996. The success of the franchisees operating the Orange County and Denver International Airport concessions prompted the Company to enter into the airport concession business. Since 1994, the Company has opened 40 concession locations at 21 airports. In 1996, the company was awarded its first master concession contract for the airport in Cedar Rapids, Iowa, where it has the right to install and manage all food, beverage, news & gift and other services. As a result of this transition in its business, the Company's historical revenues have been derived from three principal sources: airport concession revenues, restaurant franchise royalties and wholesale sales from its food preparation center. These revenue categories comprise a fluctuating percentage of total revenues from year to year. Over the past six years, revenues from concession operations have grown from 59% of total revenues in 1995 to 99% of total revenues in 2000. The Company had working capital for the three months ending March 31, 2000 of $1,912,133 compared to $(923,794) for the three months ending March 31, 1999. Capital improvement costs incurred to meet the requirements of new airport concession contracts have placed demands on the Company's working capital. As of March 31, 2000 the Company has reduced its debt from the approximately $7,000,000 to $4,000,000 thus increasing its equity position from approximately $5,000,000 to $8,000,000. Additionally, the Company has raised $1,200,000 through the sale of private placement. The 462,000 outstanding warrants issued during this initial public offering are now being exercised at $5.40. The management believes all the warrants will be exercised which will result in additional capital of $2,494,800. As of March 29, 2000 approximately 300,000 warrants have been exercised resulting in capital contribution of $1,620,000. However, there is no assurance regarding the actual amount of warrants exercised. The Company may have additional capital requirements in 2000 to finance the construction of new airport concessions, restaurants and other concession related businesses such as news & gifts, specialty, inflight catering and other services. In this regard the Company may have additional capital requirements to the extent that it wins additional contracts from its current and future airport concession bids. 7 RESULTS OF OPERATIONS The following table sets forth for the period indicated selected items of the Company's statement of operations as a percentage of total revenues.
FISCAL YEAR ENDED THREE MONTHS ENDED DECEMBER 31 MARCH 31 ----------------------------------- ------------------------ 1997 1998 1999 1999 2000 ---------- ---------- ---------- ---------- ---------- Revenues: Concessions 92% 95% 98% 98% 99% Food Preparation Center Sales 7 4 1 2 1 Franchise Royalties 1 1 1 0 0 ---------- ---------- ---------- ---------- ---------- Total Revenues 100% 100% 100% 100% 100% Cost of Goods Sold 32 30 32 30 31 ---------- ---------- ---------- ---------- ---------- Gross Profit 68 70 68 70 69 Operating Costs and Expenses: Payroll and Employee Benefits 36 34 33 34 34 Occupancy 18 19 16 16 16 Depreciation 3 4 5 7 7 General and Administrative 9 8 12 11 10 Interest Expense 2 1 5 5 4 Other (Income) Loss 0 0 0 0 0 ---------- ---------- ---------- ---------- ---------- Net Income (Loss) 0% 4% (3)% (3)% (2)% ========== ========== ========== ========== ==========
THREE MONTHS ENDED MARCH 31, 2000 COMPARED TO THREE MONTHS ENDED MARCH 31, 1999 REVENUES. The Company's gross revenues for the three months ended March 31, 2000 were $4,486,782 compared to $4,178,096 for the three months ended March 31, 1999, an increase of $308,686 or 7.4%. Revenues from concession activities increased $362,921 ($4,445,606 as compared to $4,082,685) while food preparation center decreased by $52,812 ($28,420 as compared to $81,232) and franchise royalty revenues decreased by $1,422 ($12,756 as compared to $14,178). The increase in concession revenues was principally attributable to the operation of concessions awarded in 1999 for a full three month period. Same store sales for concession locations that were open for a full three month period ended March 31, 1999 increased 4.0% from $4,079,040 to $4,241,400. COST OF GOODS SOLD. The cost of goods sold for the three months ended March 31, 2000 were $1,381,645 compared to $1,242,389 for the three months ended March 31, 1999. As a percentage of total revenue, the cost of goods sold increased to 30.8% from 29.7%. The Company's cost of goods sold are primarily food costs. Those costs are generally higher as a percentage of revenues on the opening of a new facility until the Company establishes stable patterns of demand for its products. The Company believes that costs of goods sold of 30% of total revenues represents a relatively sustainable level. Management hopes to be able to reduce costs of goods sold as a percentage of sales slightly from this figure through increased purchasing power, distribution efficiencies and operation efficiencies. OPERATING COSTS AND EXPENSES. Operating costs and expenses for the three months ended March 31, 2000 were $3,009,700 compared to $2,973,133 for the three months ended March 31, 1999. Payroll expenses increased to $1,506,765 for the three months March 31, 2000 from $1,437,379 for the three months ended March 31, 1999. As a percentage of total revenue, payroll declined to 33.6% for the three months ended March 31, 2000 from 34.4% for the three months ended March 31, 1999. The increase in payroll dollar amounts is due to the addition of new concession facilities. General and administrative expenses increased to $809,351 for the three months ended March 31, 2000 from $758,974 for the three months ended March 31, 1999. Depreciation expense increased to $288,626 for the three months ended March 31, 2000 from $287,997 for the three months ended March 31, 1999. As a percentage of total revenue, general, administrative and selling expenses remained constant at 18.0%. The Company will continue to add additional administrative staff commensurate with its growth but expect general and administrative expenses to decline as a percentage of total revenues. 8 INTEREST EXPENSE. Interest expense net decreased to $164,168 for the three months ended March 31, 2000 from $185,660 for the three months ended March 31, 1999. The decrease in interest expense is related to the conversion of $3,000,000 of Notes into Common Stock. The amount will decrease as a percent of sales as the year progresses. NET INCOME/LOSS. Net loss for the three months ended March 31, 2000 was $71,790 compared to loss of $123,086 for the three months ended March 31, 1999. Management attributes this decrease to a reduction in interest charges relating to the note conversion. The Company anticipates that net income from existing operations will increase commensurate with cost savings that result from economics of scale and efficiencies obtained at the operating level and full twelve months operation of newly opened locations. EBITDA. EBITDA increased to $384,063 for the three months ended March 31, 2000, from $350,571 for the three months ended March 31, 1999. This increase is related to corresponding reductions in payroll, general, administrative and selling expenses. The Company anticipates this trend to continue improving. The Company does not believe that inflation has had an adverse affect on its revenues and earnings. LIQUIDITY AND CAPITAL RESOURCES In December 1998 the Company made a private placement of $3,000,000 of 12% Secured Notes due December 21, 2003, the proceeds of which were utilized to finance the construction and capital improvements for new airport concessions, and to repay outstanding indebtedness. During 1999 the company continued to need additional financing to establish its airport facilities, which was met primarily with equipment lease financing and two small private placements of Common Stock to accredited investors only pursuant to which approximately $467,000 of equity capital was raised. The Company's working capital position improved in December, 1999 when the holder of $1,495,000 outstanding amount of 12% Secured Notes converted the entire balance held by him into Common Stock at a rate of $2.625 per share. In January and March, 2000, the remaining $1,505,000 of outstanding 12% Secured Notes were converted into Common Stock at the rate of $2.625 per share. The exercise of the outstanding warrants that were issued at the same time as the Notes did not improve the Company's liquidity because they were exercised on a "cashless" basis, resulting in the issuance of shares without a capital contribution to the Company. The cashless exercise did, however, result in less dilution in the outstanding number of shares than if the warrants had been exercised for cash. The prior holder of $1,505,000 of notes is also claiming that it is entitled to the issuance of approximately 106,000 additional warrants to purchase, as payment of accrued but unpaid interest in 1999, alleging that an agreement was made for the payment of such interest by the granting and "cashless" exercise of such warrants. The prior noteholder is asserting that the exercise price of such warrants should be $1.25 per share or less. The Company did not grant the warrants and does not believe that it agreed to grant them. The Company has tendered approximately $39,000 in cash to the holder as payment of the interest, and therefore deems the interest paid in full. The Company will vigorously defend against any claim made by the noteholder for additional shares of its common stock. There is however, no assurance that the Company will not be obligated to issue additional warrants or shares as a result of this claim. The Company's liquidity and working capital improved significantly commencing in January, 2000 as a result of (a) the exercise of outstanding warrants to purchase the Company's Common Stock for an exercise price of $5.40 per share, pursuant to which approximately $1,768,500 of capital had been raised as of March 29, 2000, with approximately 135,000 remaining $5.40 warrants yet to be exercised as of that date, and (b) the private placement of approximately 240,000 shares of the Company's Common Stock for a price of $5.00 per share, pursuant to which approximately $1,200,000 of gross capital and approximately $1,080,000 of net capital had been raised as of March 29, 2000. The Company ceased the private placement of its Common Stock at $5.00 per share and expects that the remaining outstanding warrants will be exercised at $5.40 per share, although there is no assurance as to if or when those warrants will be exercised. Assuming that the remaining 135,000 warrants with the $5.40 per share exercise price are exercised, the Company would realize approximately $729,000 of additional capital. While the Company believes that the capital raised from the private placement of Common Stock and the exercise of the $5.40 warrants will be adequate to meet facility construction needs in 2000 and eliminate or substantially reduce the need for equipment lease financing, the Company intends to seek at least an additional $1,400,000 of equity capital in 2000 to finance the acquisition of other businesses, if suitable candidates can be found, and for general working purposes. 9 There is no assurance regarding the availability of additional capital to the Company, or the availability of suitable acquisition candidates. The leases guaranteed by Mr. Ali are the equipment leases for the Company's food and beverage facilities at Lexington, Kentucky (approximately $150,000), and the airports in Madison and Appleton, Wisconsin (approximately $300,000). The equipment leases each have a term of 60 months, are payable in equal monthly installments and have an interest rate of approximately 17.5%. Upon payment of the last installment on each lease, the Company will own the equipment. When the Company is awarded a new concession facility, it is generally committed to expend a negotiated amount for the capital improvements to the facility. In addition, the Company is responsible for acquiring equipment necessary to conduct its operations. As a result, the Company incurs substantial expenses for capital improvements at the commencement of a concession term. Generally, however, the term of the concession grant will be for a period of 10 years, providing the Company an opportunity to recover its capital expenditures. Substantially all of the Company's concession locations have been obtained in the past 4 years, which has resulted in significant capital needs. As a result, the Company has been required to seek capital, and to apply capital from operations, for the construction of capital improvements at newly awarded concession locations. The Company intends to continue to bid for concession locations, including bidding on larger proposals. Anticipated cash flows from operations will not be sufficient to finance new acquisitions at the level of growth that the Company has experienced over the past 3 years. Accordingly, to the extent the Company is successful in securing new concession contracts, the Company may continue to need additional capital, in addition to cash flow from operations, in order to finance the construction of captial improvements and acquisitions. As of March 31, 2000, the Company had working capital of $1,912,133. As of March 31, 2000, the Company has reduced its debt from approximately $5,500,000 to $4,000,000 thus increasing its equity position from approximately $6,500,000 to $8,000,000. Additionally, the Company has raised $1,200,000 through the sale of a private placement. The Company anticipates capital requirements of approximately $1.4 million in Fiscal 2000 to complete the construction of improvements at concession facilities which it has already been awarded in Louisiana. 10 The Company may have additional capital requirements during 2000 and 2001 if the Company wins additional bids or acquires additional airport concession facilities, or if the Company finds other suitable acquisition candidates. The Company is continually evaluating other airport concession opportunities, including submitting bid proposals and acquiring existing concession owners and operators. The level of its capital requirements will depend upon the number of airport concession facilities which are subject to bid, as well as the number and size of any potential acquisition candidates which arise. There is no assurance that the Company will have sufficient capital to finance its growth and business operations or that such capital will be available on terms that are favorable to the Company or at all. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CREATIVE HOST SERVICES, INC. Date: May 10, 2000 /s/ Sayed Ali ------------------------------------------------ Sayed Ali, President and Chief Financial Officer 11 EX-27 2 EXHIBIT 27
5 3-MOS DEC-31-2000 JAN-01-2000 MAR-31-2000 3,589,063 0 575,348 9,175 342,973 4,498,209 14,837,525 2,548,603 16,787,131 2,586,076 3,138,005 0 0 12,499,812 (1,436,762) 16,787,131 4,486,782 4,486,782 1,381,645 1,381,645 3,009,700 0 164,168 (68,731) 3,059 (71,790) 0 0 0 (71,790) (.01) (.01)
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