-----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, Rg+dSLcDQUnFVIPvNsq05No+nSmZ5Cn1BSxjs+xkxUkRGnZJhZ3t73MtRp2EfLI1 OqQx83H6tYWi5D8UAP+orA== 0000853665-05-000108.txt : 20050728 0000853665-05-000108.hdr.sgml : 20050728 20050727180732 ACCESSION NUMBER: 0000853665-05-000108 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050727 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Other Events FILED AS OF DATE: 20050728 DATE AS OF CHANGE: 20050727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: APPLEBEES INTERNATIONAL INC CENTRAL INDEX KEY: 0000853665 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 431461763 STATE OF INCORPORATION: DE FISCAL YEAR END: 1225 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-17962 FILM NUMBER: 05978433 BUSINESS ADDRESS: STREET 1: 4551 W 107TH ST STE 100 CITY: OVERLAND PARK STATE: KS ZIP: 66207 BUSINESS PHONE: 9139674000 MAIL ADDRESS: STREET 1: 4551 W 107TH STREET STREET 2: SUITE 100 CITY: OVERLAND PARK STATE: KS ZIP: 66207 8-K 1 q205earningsrelease8k.txt Q2 2005 EARNINGS RELEASE 8K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported) July 27, 2005 ----------------------------------------------- APPLEBEE'S INTERNATIONAL, INC. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) DELAWARE 000-17962 43-1461763 - ------------------------------ ---------------- ------------------------ (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 4551 W. 107th Street, Overland Park, Kansas 66207 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (913) 967-4000 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) None - -------------------------------------------------------------------------------- (Former name or former address, 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: [ ] Written communications pursuant to Rule 425 under the Securities Act 17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition On July 27, 2005, Applebee's International, Inc. (the "Company") issued a press release entitled "Applebee's International Reports Second Quarter 2005 Earnings of $0.34 Per Diluted Share." The release is attached as Exhibit 99.1. Item 7.01 Regulation FD Disclosure. The release also contains the Company's business outlook for 2005. Item 9.01 Financial Statements and Exhibits (c) Exhibits. The following exhibits are filed herewith: 99.1 Applebee's International Reports Second Quarter 2005 Earnings of $0.34 Per Diluted Share. 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. Date: July 27, 2005 APPLEBEE'S INTERNATIONAL, INC. By: /s/ Steven K. Lumpkin ------------------------------- Steven K. Lumpkin Executive Vice President and Chief Financial Officer 3 EXHIBIT INDEX Exhibit Number Description - -------- ------------------------------------------------------------------- 99.1 Applebee's International Reports Second Quarter 2005 Earnings of $0.34 Per Diluted Share. 4 EX-99 3 q2earningsrealease.txt Q2 2005 EARNINGS RELEASE FOR IMMEDIATE RELEASE Contact: Carol DiRaimo, Vice President of Investor Relations (913) 967-4109 Applebee's International Reports Second Quarter 2005 Earnings of $0.34 Per Diluted Share OVERLAND PARK, KAN., July 27, 2005 -- Applebee's International, Inc. (Nasdaq:APPB) today reported net earnings of $27.5 million, or $0.34 per diluted share, for the second quarter ended June 26, 2005. This compares to net earnings of $28.1 million, or $0.33 per diluted share, for the second quarter of 2004, which included a $2.3 million pre-tax ($1.5 million after-tax or approximately $0.02 per share) inventory impairment charge. As previously reported, system-wide comparable sales for the second quarter of 2005 increased 1.6 percent, the 28th consecutive quarter of comparable sales growth. Comparable sales for company restaurants decreased 1.2 percent and franchise restaurant comparable sales increased 2.5 percent for the quarter. System-wide comparable sales for the year-to-date period through June increased 2.7 percent, with franchise restaurant comparable sales up 3.7 percent and company comparable restaurant sales down 0.4 percent. The company also reported comparable sales for the July fiscal period, comprised of the four weeks ended July 24, 2005. System-wide comparable sales increased 1.6 percent for the July period, and comparable sales for franchise restaurants increased 2.3 percent. Comparable sales for company restaurants decreased 0.3 percent, reflecting a decrease in guest traffic of approximately 3.0 percent, combined with a higher average check. System-wide comparable sales for the year-to-date period through July have increased 2.5 percent, with franchise restaurant comparable sales up 3.5 percent and company comparable restaurant sales down 0.4 percent. Lloyd L. Hill, chairman and chief executive officer, said, "Although we have been disappointed in sales trends for the last few months, particularly in company markets, we are focused on enhancing our value proposition in this environment. We are confident that our strategies will result in improved sales trends for the balance of the year." - more - July 27, 2005 Page 2 Other results for the second quarter and year-to-date periods ended June 26, 2005 included: o Net earnings for the 26-week period ended June 26, 2005 were $59.1 million, or $0.72 per diluted share. This compares to net earnings in the same period of 2004 of $57.9 million, or $0.69 per diluted share. o Total system-wide sales for the quarter increased by 8.0 percent over the prior year. System-wide sales are a non-GAAP financial measure that includes sales at all company and franchise Applebee's restaurants, as reported by franchisees. The company believes that system-wide sales information is useful in analyzing Applebee's market share and growth, and because franchisees pay royalties and contribute to the national advertising pool based on a percentage of their sales. o Applebee's ended the quarter with 1,722 restaurants open system-wide (462 company and 1,260 franchise restaurants). During the second quarter of 2005, there were 30 new Applebee's restaurants opened system-wide, including 14 company and 16 franchised restaurants. o The company repurchased 1,931,700 shares of common stock in the second quarter at an average price of $25.67 for an aggregate cost of $49.6 million. For the 26-week period ended June 26, 2005, the company has repurchased 2,660,000 shares of common stock at an average price of $25.65 for an aggregate cost of $68.2 million. As of June 26, 2005, $81.8 million remains available under the company's ongoing stock repurchase authorization. o As of June 26, 2005, the company had total debt outstanding of $86.9 million, with approximately $59.2 million available under its revolving credit facility. BUSINESS OUTLOOK The company updated its guidance with respect to its business outlook for fiscal year 2005: o More than 135 new restaurants are expected to open in 2005, including at least 50 company and 85 franchise restaurants. Approximately 12 company restaurants are expected to open in the third quarter, with the balance opening in the fourth quarter of the year. Approximately 20 to 25 franchise restaurants are expected to open in the third quarter, with the remainder opening in the fourth quarter. - more - July 27, 2005 Page 3 o The company continues to expect system-wide comparable sales to increase by at least three percent for the full year, with results expected to accelerate in the latter half of the year as comparisons become easier. o Overall restaurant margins before pre-opening expense for the full year are expected to be less than fiscal year 2004 results and will be dependent on comparable sales performance at company restaurants. o Pre-opening expense is expected to be higher as a result of the increase in the number of company openings from 32 in 2004 to at least 50 in 2005. o General and administrative expenses, as a percentage of operating revenues, are expected to be approximately nine percent. o The effective income tax rate is currently expected to continue at 34.6 percent for the remainder of the year. o Excluding the cost of franchise acquisitions, capital expenditures are now expected to be between $150 and $160 million in 2005, including the anticipated costs of re-opening seven restaurants in Memphis. o On May 23, 2005, the company completed the acquisition of 12 franchise restaurants located in Missouri, Kansas and Arkansas for approximately $39.5 million in cash. o Based on the foregoing assumptions and the company's performance through the first half of the year, diluted earnings per share for fiscal year 2005 are expected to be in the range of $1.44 to $1.47, with diluted earnings per share for the third quarter expected to be in the range of $0.37 to $0.39. A conference call to review the second quarter 2005 results and the current business outlook will be held on Thursday morning, July 28, 2005, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). The conference call will be broadcast live over the Internet and a replay will be available shortly after the call on the Investors section of the company's website (www.applebees.com). Applebee's International, Inc., headquartered in Overland Park, Kan., develops, franchises and operates restaurants under the Applebee's Neighborhood Grill & Bar brand, the largest casual dining concept in the world. As of July 24, 2005, there were 1,730 Applebee's restaurants operating system-wide in 49 states and 12 international countries. Additional information on Applebee's International can be found at the company's website (www.applebees.com). - more - July 27, 2005 Page 4 Certain statements contained in this release, including fiscal year 2005 guidance as set forth in the Business Outlook section, are forward-looking and based on current expectations. There are several risks and uncertainties that could cause actual results to differ materially from those described, including but not limited to the ability of the company and its franchisees to open and operate additional restaurants profitably, the ability of its franchisees to obtain financing, the continued growth of its franchisees, and its ability to attract and retain qualified franchisees, the impact of intense competition in the casual dining segment of the restaurant industry, the impact of economic factors on consumer spending, and its ability to control restaurant operating costs which are impacted by market changes, minimum wage and other employment laws, food costs and inflation. For additional discussion of the principal factors that could cause actual results to be materially different, the reader is referred to the company's current report on Form 8-K filed with the Securities and Exchange Commission on February 9, 2005. The company disclaims any obligation to update these forward-looking statements. # # # APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (in thousands, except per share amounts)
13 Weeks Ended 26 Weeks Ended ----------------------------------- --------------------------------- June 26, June 27, June 26, June 27, 2005 2004 2005 2004 --------------- ---------------- ---------------- ---------------- (as restated) (1) (as restated)(1) Revenues: Company restaurant sales ........................ $ 272,703 $ 247,769 $ 543,161 $ 491,329 Franchise royalties and fees..................... 32,493 30,722 65,501 61,437 Other franchise income........................... 1,424 3,399 2,489 6,514 --------------- ---------------- ---------------- --------------- Total operating revenues.................... 306,620 281,890 611,151 559,280 --------------- ---------------- ---------------- --------------- Cost of company restaurant sales: Food and beverage................................ 72,565 66,647 144,200 130,162 Labor............................................ 90,115 80,683 178,839 160,338 Direct and occupancy............................. 71,038 60,513 137,405 119,855 Pre-opening expense.............................. 1,268 425 2,435 992 --------------- ---------------- ---------------- --------------- Total cost of company restaurant sales...... 234,986 208,268 462,879 411,347 --------------- ---------------- ---------------- --------------- Cost of other franchise income....................... 1,229 5,035 2,048 7,972 General and administrative expenses.................. 27,980 24,960 54,926 50,382 Amortization of intangible assets.................... 226 158 454 244 Loss on disposition of restaurants and equipment..... 564 584 861 1,079 --------------- ---------------- ---------------- --------------- Operating earnings................................... 41,635 42,885 89,983 88,256 --------------- ---------------- ---------------- --------------- Other income (expense): Investment income................................ 449 18 408 241 Interest expense................................. (634) (416) (971) (760) Other income..................................... 584 562 1,019 1,023 --------------- ---------------- ---------------- --------------- Total other income.......................... 399 164 456 504 --------------- ---------------- ---------------- --------------- Earnings before income taxes......................... 42,034 43,049 90,439 88,760 Income taxes......................................... 14,544 14,919 31,292 30,894 --------------- ---------------- ---------------- --------------- Net earnings......................................... $ 27,490 $ 28,130 $ 59,147 $ 57,866 =============== ================ ================ =============== Basic net earnings per common share.................. $ 0.34 $ 0.34 $ 0.74 $ 0.71 =============== ================ ================ =============== Diluted net earnings per common share................ $ 0.34 $ 0.33 $ 0.72 $ 0.69 =============== ================ ================ =============== Basic weighted average shares outstanding............ 79,897 81,781 80,295 81,883 =============== ================ ================ =============== Diluted weighted average shares outstanding.......... 81,360 84,098 81,861 84,371 =============== ================ ================ =============== (1) The company's Annual Report on Form 10-K for fiscal year 2004 included a restatement of certain historical information as discussed in Note 22 to the consolidated financial statements.
The following table contains information derived from the company's consolidated statements of earnings expressed as a percentage of total operating revenues, except where otherwise noted. Percentages may not add due to rounding.
13 Weeks Ended 26 Weeks Ended ----------------------------- ------------- ------------- June 26, June 27, June 26, June 27, 2005 2004 2005 2004 ------------ ---------------- ------------- ------------- (as restated) (1) (as restated) (1) Revenues: Company restaurant sales.................................. 88.9% 87.9% 88.9% 87.9% Franchise royalties and fees.............................. 10.6 10.9 10.7 11.0 Other franchise income.................................... 0.5 1.2 0.4 1.2 ------------ ---------------- ------------- ------------- Total operating revenues............................. 100.0% 100.0% 100.0% 100.0% ============ ================ ============= ============= Cost of sales (as a percentage of company restaurant sales): Food and beverage......................................... 26.6% 26.9% 26.5% 26.5% Labor..................................................... 33.0 32.6 32.9 32.6 Direct and occupancy...................................... 26.0 24.4 25.3 24.4 Pre-opening expense....................................... 0.5 0.2 0.4 0.2 ------------ ---------------- ------------- ------------- Total cost of sales.................................. 86.2% 84.1% 85.2% 83.7% ============ ================ ============= ============= Cost of other franchise income (as a percentage of other franchise income)......................................... 86.3% 148.1% 82.3% 122.4% General and administrative expenses........................... 9.1 8.9 9.0 9.0 Amortization of intangible assets............................. 0.1 0.1 0.1 -- Loss on disposition of restaurants and equipment.............. 0.2 0.2 0.1 0.2 ------------ ---------------- ------------- ------------- Operating earnings............................................ 13.6 15.2 14.7 15.8 ------------ ---------------- ------------- ------------- Other income (expense): Investment income......................................... 0.1 -- 0.1 -- Interest expense.......................................... (0.2) (0.1) (0.2) (0.1) Other income.............................................. 0.2 0.2 0.2 0.2 ------------ ---------------- ------------- ------------- Total other income................................... 0.1 0.1 0.1 0.1 ------------ ---------------- ------------- ------------- Earnings before income taxes.................................. 13.7 15.3 14.8 15.9 Income taxes.................................................. 4.7 5.3 5.1 5.5 ------------ ---------------- ------------- ------------- Net earnings.................................................. 9.0% 10.0% 9.7% 10.3% ============ ================ ============= ============= (1) The company's Annual Report on Form 10-K for fiscal year 2004 included a restatement of certain historical information as discussed in Note 22 to the consolidated financial statements.
The following table sets forth certain financial information and other restaurant data relating to company and franchise restaurants, as reported to us by franchisees:
13 Weeks Ended 26 Weeks Ended ------------------------------- ------------------------------- June 26, June 27, June 26, June 27, 2005 2004 2005 2004 ------------- ------------- -------------- ------------- Number of restaurants: Company: Beginning of period....................... 437 391 424 383 Restaurant openings....................... 14 4 27 12 Restaurants acquired from franchisees..... 11 10 11 10 ------------- ------------- -------------- ------------- End of period............................. 462 405 462 405 ------------- ------------- -------------- ------------- Franchise: Beginning of period....................... 1,257 1,212 1,247 1,202 Restaurant openings....................... 16 8 29 19 Restaurants closed........................ (2) (3) (5) (4) Restaurants acquired from franchisees..... (11) (10) (11) (10) ------------- ------------- -------------- ------------- End of period............................. 1,260 1,207 1,260 1,207 ------------- ------------- -------------- ------------- Total: Beginning of period....................... 1,694 1,603 1,671 1,585 Restaurant openings....................... 30 12 56 31 Restaurants closed........................ (2) (3) (5) (4) ------------- ------------- -------------- ------------- End of period............................. 1,722 1,612 1,722 1,612 ============= ============= ============== ============= Weighted average weekly sales per restaurant: Company........................................ $ 46,800 $ 47,758 $ 47,483 $ 48,075 Franchise...................................... $ 50,114 $ 48,759 $ 50,705 $ 48,763 Total.......................................... $ 49,244 $ 48,510 $ 49,868 $ 48,593 Change in comparable restaurant sales:(1) Company........................................ (1.2)% 5.5% (0.4)% 7.0% Franchise...................................... 2.5 % 6.5% 3.7 % 7.2% Total.......................................... 1.6 % 6.3% 2.7 % 7.2% Total operating revenues (in thousands): Company restaurant sales....................... $ 272,703 $ 247,769 $ 543,161 $ 491,329 Franchise royalties and fees(2)................ 32,493 30,722 65,501 61,437 Other franchise income(3)...................... 1,424 3,399 2,489 6,514 ------------- ------------- -------------- ------------- Total.......................................... $ 306,620 $ 281,890 $ 611,151 $ 559,280 ============= ============= ============== ============= (1) When computing comparable restaurant sales, restaurants open for at least 18 months are compared from period to period. (2) Franchise royalties are generally 4% of each franchise restaurant's reported monthly gross sales. Reported franchise sales, in thousands, were $820,483 and $764,422 in the 2005 quarter and the 2004 quarter, respectively, and $1,653,480 and $1,528,538 in the 2005 year-to-date and 2004 year-to-date period, respectively. Franchise fees typically range from $30,000 to $35,000 for each restaurant opened. (3) Other franchise income includes insurance premiums from franchisee participation in our captive insurance program and revenue from information technology products and services provided to certain franchisees.
APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share amounts)
June 26, December 26, 2005 2004 ---------------- --------------- ASSETS Current assets: Cash and cash equivalents................................................... $ 661 $ 10,642 Short-term investments, at market value..................................... 283 282 Receivables, net of allowance............................................... 38,318 39,152 Receivables related to captive insurance subsidiary......................... 3,908 2,566 Inventories................................................................. 27,112 35,936 Prepaid and other current assets............................................ 14,859 12,079 ---------------- --------------- Total current assets................................................... 85,141 100,657 Property and equipment, net..................................................... 544,082 486,548 Goodwill........................................................................ 138,788 116,344 Restricted assets related to captive insurance subsidiary....................... 18,803 17,386 Other intangible assets, net.................................................... 8,094 8,524 Other assets, net............................................................... 28,478 24,972 ---------------- --------------- $ 823,386 $ 754,431 ================ =============== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt........................................... $ 243 $ 222 Notes payable............................................................... 4,300 -- Accounts payable............................................................ 47,456 42,830 Accrued expenses and other current liabilities.............................. 82,491 89,064 Loss reserve and unearned premiums related to captive insurance subsidiary.. 14,012 12,137 Accrued dividends........................................................... -- 4,867 Accrued income taxes........................................................ 13,130 2,578 ---------------- --------------- Total current liabilities.............................................. 161,632 151,698 ---------------- --------------- Non-current liabilities: Long-term debt - less current portion....................................... 82,349 35,472 Deferred income taxes....................................................... 29,264 28,995 Other non-current liabilities............................................... 45,392 41,539 ---------------- --------------- Total non-current liabilities.......................................... 157,005 106,006 ---------------- --------------- Total liabilities...................................................... 318,637 257,704 ---------------- --------------- Stockholders' equity: Preferred stock - par value $0.01 per share: authorized - 1,000,000 shares; no shares issued......................................................... -- -- Common stock - par value $0.01 per share: authorized - 125,000,000 shares; issued -108,503,243 shares............................................... 1,085 1,085 Additional paid-in capital.................................................. 231,468 220,897 Unearned compensation....................................................... (3,458) (1,924) Retained earnings........................................................... 682,462 623,315 ---------------- --------------- 911,557 843,373 Treasury stock - 29,082,335 shares in 2005 and 27,375,044 shares in 2004, at cost...................................................................... (406,808) (346,646) ---------------- --------------- Total stockholders' equity............................................. 504,749 496,727 ---------------- --------------- $ 823,386 $ 754,431 ================ ===============
APPLEBEE'S INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
26 Weeks Ended ------------------------------------ June 26, June 27, 2005 2004 ---------------- --------------- (as restated) (1) CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings................................................................ $ 59,147 $ 57,866 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization.......................................... 25,676 22,402 Amortization of intangible assets...................................... 454 244 Amortization of unearned compensation.................................. 1,067 695 Other amortization..................................................... 63 175 Inventory impairment................................................... -- 2,300 Deferred income tax benefit............................................ (2,294) (52) Loss on disposition of restaurants and equipment....................... 861 1,079 Income tax benefit from exercise of stock options...................... 3,794 5,169 Changes in assets and liabilities (exclusive of effects of acquisitions): Receivables............................................................ 834 (8,889) Receivables related to captive insurance subsidiary.................... (1,342) (4,325) Inventories............................................................ 9,014 (13,103) Other current assets related to captive insurance subsidiary........... -- (1,049) Prepaid and other current assets....................................... (217) (923) Accounts payable....................................................... 4,626 1,874 Accrued expenses and other current liabilities......................... (6,902) (16,933) Loss reserve and unearned premiums related to captive insurance subsidiary........................................................... 1,875 8,914 Income taxes........................................................... 10,552 26,287 Other non-current liabilities.......................................... 1,759 1,892 Other.................................................................. (1,177) (3,184) ---------------- --------------- NET CASH PROVIDED BY OPERATING ACTIVITIES.............................. 107,790 80,439 ---------------- --------------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment......................................... (59,922) (36,543) Restricted assets related to captive insurance subsidiary................... (1,417) (5,488) Acquisition of restaurants.................................................. (46,777) (13,817) Lease acquisition costs..................................................... -- (4,919) Purchases of short-term investments......................................... -- (253) Other investing activities.................................................. -- (966) ---------------- --------------- NET CASH USED BY INVESTING ACTIVITIES.................................. (108,116) (61,986) ---------------- --------------- CASH FLOWS FROM FINANCING ACTIVITIES: Purchases of treasury stock................................................. (68,238) (53,223) Dividends paid.............................................................. (4,867) (3,911) Issuance of common stock upon exercise of stock options..................... 9,929 8,789 Shares issued under employee benefit plans.................................. 2,323 3,981 Net debt proceeds (payments)................................................ 51,198 22,934 ---------------- --------------- NET CASH USED BY FINANCING ACTIVITIES.................................. (9,655) (21,430) ---------------- --------------- NET DECREASE IN CASH AND CASH EQUIVALENTS....................................... (9,981) (2,977) CASH AND CASH EQUIVALENTS, beginning of period.................................. 10,642 17,867 ---------------- --------------- CASH AND CASH EQUIVALENTS, end of period........................................ $ 661 $ 14,890 ================ =============== (1) The company's Annual Report on Form 10-K for fiscal year 2004 included a restatement of certain historical information as discussed in Note 22 to the consolidated financial statements.
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