0-27754 |
36-4007085
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(Commission File Number) | (I.R.S. Employer Identification No.) |
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o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(a) Not Applicable.
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(b) Not Applicable.
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(c) Not Applicable.
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(d) A list of exhibits filed herewith is contained on the Exhibit
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Index which immediately precedes such exhibits and is |
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incorporated herein by reference. |
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HUB GROUP, INC. | |
DATE: February 5, 2015 | /s/ Terri A. Pizzuto |
By: Terri A. Pizzuto | |
Title: Executive Vice President, Chief Financial Officer | |
and Treasurer |
HUB GROUP, INC.
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||||||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||
(in thousands, except per share amounts)
|
||||||||||||||||||||
Three Months
|
Twelve Months
|
|||||||||||||||||||
Ended December 31,
|
Ended December 31,
|
|||||||||||||||||||
2014
|
2013
|
2014 | 2013 | |||||||||||||||||
Revenue
|
$ | 915,361 | $ | 885,252 | $ | 3,571,126 | $ | 3,373,898 | ||||||||||||
Transportation costs
|
825,451 | 790,164 | 3,200,691 | 3,002,875 | ||||||||||||||||
Gross margin
|
89,910 | 95,088 | 370,435 | 371,023 | ||||||||||||||||
Costs and expenses:
|
||||||||||||||||||||
Salaries and benefits
|
32,964 | 33,868 | 136,480 | 135,341 | ||||||||||||||||
Agent fees and commissions
|
16,239 | 14,272 | 62,041 | 55,789 | ||||||||||||||||
General and administrative
|
14,033 | 15,096 | 58,014 | 56,772 | ||||||||||||||||
Depreciation and amortization
|
1,897 | 1,697 | 7,799 | 6,470 | ||||||||||||||||
Driver settlements and related costs | - | - | 10,343 | - | ||||||||||||||||
Impairment of software | - | - | 11,881 | - | ||||||||||||||||
Impairment of trade name | - | 2,904 | - | 2,904 | ||||||||||||||||
Total costs and expenses
|
65,133 | 67,837 | 286,558 | 257,276 | ||||||||||||||||
Operating income
|
24,777 | 27,251 | 83,877 | 113,747 | ||||||||||||||||
Other income (expense):
|
||||||||||||||||||||
Interest expense
|
(619 | ) | (328 | ) | (1,785 | ) | (1,246 | ) | ||||||||||||
Interest and dividend income
|
11 | 13 | 32 | 82 | ||||||||||||||||
Other, net
|
(66 | ) | (5 | ) | (257 | ) | (28 | ) | ||||||||||||
Total other expense
|
(674 | ) | (320 | ) | (2,010 | ) | (1,192 | ) | ||||||||||||
Income before provision for income taxes
|
24,103 | 26,931 | 81,867 | 112,555 | ||||||||||||||||
Provision for income taxes
|
7,747 | 10,395 | 30,309 | 43,445 | ||||||||||||||||
Net income
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$ | 16,356 | $ | 16,536 | $ | 51,558 | $ | 69,110 | ||||||||||||
Basic earnings per common share
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$ | 0.45 | $ | 0.45 | $ | 1.41 | $ | 1.88 | ||||||||||||
Diluted earnings per common share
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$ | 0.45 | $ | 0.45 | $ | 1.40 | $ | 1.87 | ||||||||||||
Basic weighted average number of shares outstanding
|
36,350 | 36,719 | 36,590 | 36,829 | ||||||||||||||||
Diluted weighted average number of shares outstanding
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36,533 | 36,942 | 36,732 | 36,982 | ||||||||||||||||
HUB GROUP, INC | ||||||||||||||||||||||||||||||||
UNAUDITED FINANCIAL INFORMATION BY SEGMENT | ||||||||||||||||||||||||||||||||
(IN THOUSANDS) | ||||||||||||||||||||||||||||||||
Three Months
|
Three Months
|
|||||||||||||||||||||||||||||||
Ended December 31, 2014
|
Ended December 31, 2013
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|||||||||||||||||||||||||||||||
Inter-
|
Hub
|
Inter-
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Hub
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|||||||||||||||||||||||||||||
Segment
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Group
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Segment
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Group
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|||||||||||||||||||||||||||||
Hub
|
Mode
|
Elims
|
Consolidated
|
Hub
|
Mode
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Elims
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Consolidated
|
|||||||||||||||||||||||||
Revenue
|
$ | 695,507 | $ | 245,266 | $ | (25,412 | ) | $ | 915,361 | $ | 683,614 | $ | 214,357 | $ | (12,719 | ) | $ | 885,252 | ||||||||||||||
Transportation costs
|
633,131 | 217,732 | (25,412 | ) | 825,451 | 613,198 | 189,685 | (12,719 | ) | 790,164 | ||||||||||||||||||||||
Gross margin
|
62,376 | 27,534 | - | 89,910 | 70,416 | 24,672 | - | 95,088 | ||||||||||||||||||||||||
Costs and expenses:
|
||||||||||||||||||||||||||||||||
Salaries and benefits
|
29,285 | 3,679 | - | 32,964 | 30,219 | 3,649 | - | 33,868 | ||||||||||||||||||||||||
Agent fees and commissions
|
14 | 16,225 | - | 16,239 | 148 | 14,124 | - | 14,272 | ||||||||||||||||||||||||
General and administrative
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12,408 | 1,625 | - | 14,033 | 13,383 | 1,713 | - | 15,096 | ||||||||||||||||||||||||
Depreciation and amortization
|
1,556 | 341 | - | 1,897 | 1,157 | 540 | - | 1,697 | ||||||||||||||||||||||||
Impairment of trade name | - | - | - | - | 2,904 | - | - | 2,904 | ||||||||||||||||||||||||
Total costs and expenses
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43,263 | 21,870 | - | 65,133 | 47,811 | 20,026 | - | 67,837 | ||||||||||||||||||||||||
Operating income
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$ | 19,113 | $ | 5,664 | $ | - | $ | 24,777 | $ | 22,605 | $ | 4,646 | $ | - | $ | 27,251 |
HUB GROUP, INC. | ||||||||||||||||||||||||||||||||
UNAUDITED FINANCIAL INFORMATION BY SEGMENT | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Twelve Months
|
Twelve Months
|
|||||||||||||||||||||||||||||||
Ended December 31, 2014
|
Ended December 31, 2013
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Inter-
|
Hub
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Inter-
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Hub
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|||||||||||||||||||||||||||||
Segment
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Group
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Segment
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Group
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|||||||||||||||||||||||||||||
Hub
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Mode
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Elims
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Consolidated
|
Hub
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Mode
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Elims
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Consolidated
|
|||||||||||||||||||||||||
Revenue
|
$ | 2,722,799 | $ | 931,131 | $ | (82,804 | ) | $ | 3,571,126 | $ | 2,599,763 | $ | 823,159 | $ | (49,024 | ) | $ | 3,373,898 | ||||||||||||||
Transportation costs
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2,461,144 | 822,351 | (82,804 | ) | 3,200,691 | 2,325,512 | 726,387 | (49,024 | ) | 3,002,875 | ||||||||||||||||||||||
Gross margin
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261,655 | 108,780 | - | 370,435 | 274,251 | 96,772 | - | 371,023 | ||||||||||||||||||||||||
Costs and expenses:
|
||||||||||||||||||||||||||||||||
Salaries and benefits
|
122,097 | 14,383 | - | 136,480 | 120,478 | 14,863 | - | 135,341 | ||||||||||||||||||||||||
Agent fees and commissions
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45 | 61,996 | - | 62,041 | 1,372 | 54,417 | - | 55,789 | ||||||||||||||||||||||||
General and administrative
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51,108 | 6,906 | - | 58,014 | 50,484 | 6,288 | - | 56,772 | ||||||||||||||||||||||||
Depreciation and amortization
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6,238 | 1,561 | - | 7,799 | 4,326 | 2,144 | - | 6,470 | ||||||||||||||||||||||||
Driver settlements and related costs | 10,343 | - | - | 10,343 | - | - | - | - | ||||||||||||||||||||||||
Impairment of software | 11,881 | - | - | 11,881 | - | - | - | - | ||||||||||||||||||||||||
Impairment of trade name | - | - | - | - | 2,904 | - | - | 2,904 | ||||||||||||||||||||||||
Total costs and expenses
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201,712 | 84,846 | - | 286,558 | 179,564 | 77,712 | - | 257,276 | ||||||||||||||||||||||||
Operating income
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$ | 59,943 | $ | 23,934 | $ | - | $ | 83,877 | $ | 94,687 | $ | 19,060 | $ | - | $ | 113,747 |
HUB GROUP, INC. | ||||||||||||||||||||||||||||||||
UNAUDITED NON-GAAP TO GAAP RECONCILIATION | ||||||||||||||||||||||||||||||||
(earnings per share) | ||||||||||||||||||||||||||||||||
Three Months
|
Twelve Months
|
|||||||||||||||||||||||||||||||
Ended, December 31,
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Ended, December 31,
|
|||||||||||||||||||||||||||||||
2014
|
2013
|
Change $ | Change % | 2014 | 2013 | Change $ | Change % | |||||||||||||||||||||||||
Diluted GAAP EPS
|
$ | 0.45 | $ | 0.45 | $ | - | 0.0 | % | $ | 1.40 | $ | 1.87 | $ | (0.47 | ) | -25.1 | % | |||||||||||||||
Impairment of trade name, net of tax | - | 0.05 | (0.05 | ) | - | 0.05 | (0.05 | ) | ||||||||||||||||||||||||
Driver settlements and related costs, net of tax
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- | - | - | 0.17 | - | 0.17 | ||||||||||||||||||||||||||
Impairment of Software, net of tax
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- | - | - | 0.20 | - | 0.20 | ||||||||||||||||||||||||||
Benefit related to changes in state tax apportionment | (0.04 | ) | - | (0.04 | ) | (0.04 | ) | - | (0.04 | ) | ||||||||||||||||||||||
Diluted NON-GAAP EPS (adjusted)
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$ | 0.41 | $ | 0.50 | $ | (0.09 | ) | -18.0 | % | $ | 1.73 | $ | 1.92 | $ | (0.19 | ) | -9.9 | % | ||||||||||||||
Diluted Shares
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36,533 | 36,942 | 36,732 | 36,982 |
HUB GROUP, INC.
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UNAUDITED CONSOLIDATED BALANCE SHEETS
|
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(in thousands, except share amounts)
|
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December 31, |
December 31,
|
|
2014
|
2013
|
|
ASSETS
|
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CURRENT ASSETS:
|
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Cash and cash equivalents
|
$ 109,769 |
$ 68,964
|
Accounts receivable trade, net
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401,803 |
371,528
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Accounts receivable other
|
24,886 |
26,569
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Prepaid taxes
|
14,937 |
409
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Deferred taxes
|
4,816 |
5,826
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Prepaid expenses and other current assets
|
14,355
|
12,738
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TOTAL CURRENT ASSETS
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570,566 |
486,034
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Restricted investments
|
21,944 |
20,754
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Property and equipment, net
|
338,327 |
260,400
|
Other intangibles, net
|
14,434 |
15,729
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Goodwill, net
|
262,813 |
263,032
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Other assets
|
4,043
|
1,994
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TOTAL ASSETS
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$ 1,212,127
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$ 1,047,943
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LIABILITIES AND STOCKHOLDERS' EQUITY
|
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CURRENT LIABILITIES:
|
||
Accounts payable trade
|
$ 256,345 |
$ 232,350
|
Accounts payable other
|
21,333 |
24,957
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Accrued payroll
|
16,192 |
17,000
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Accrued other
|
43,523 |
42,834
|
Current portion of capital lease
|
2,504 |
2,413
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Current portion of long term debt
|
19,619
|
1,771
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TOTAL CURRENT LIABILITIES
|
359,516 |
321,325
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Long term debt
|
72,460 |
6,475
|
Non-current liabilities
|
22,929 |
22,304
|
Long term portion of capital lease
|
15,937 |
18,477
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Deferred taxes
|
140,501 |
117,835
|
STOCKHOLDERS' EQUITY:
|
||
Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2014 and 2013
|
-
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-
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Common stock
|
||
Class A: $.01 par value; 97,337,700 shares authorized and 41,224,792 shares issued in 2014 and 2013; 36,247,324 shares outstanding in 2014 and 36,626,384 shares outstanding in 2013
|
412
|
412
|
Class B: $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2014 and 2013
|
7
|
7
|
Additional paid-in capital
|
171,235 |
167,357
|
Purchase price in excess of predecessor basis, net of tax benefit of $10,306
|
(15,458)
|
(15,458)
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Retained earnings
|
589,809 |
538,251
|
Accumulated other comprehensive income (loss)
|
(77) |
(85)
|
Treasury stock; at cost, 4,977,468shares in 2014 and 4,598,408 shares in 2013
|
(145,144)
|
(128,957)
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TOTAL STOCKHOLDERS' EQUITY
|
600,784
|
561,527
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ 1,212,127
|
$ 1,047,943
|
HUB GROUP, INC.
|
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UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
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(in thousands)
|
||||||||
Twelve Months Ended December 31,
|
||||||||
2014
|
2013
|
|||||||
Cash flows from operating activities:
|
||||||||
Net Income
|
$ | 51,558 | $ | 69,110 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
29,380 | 21,302 | ||||||
Impairment of software | 11,881 | - | ||||||
Impairment of trade name
|
- | 2,904 | ||||||
Deferred taxes
|
24,501 | 16,438 | ||||||
Compensation expense related to share-based compensation plans
|
8,258 | 7,667 | ||||||
Gain on sale of assets
|
(46 | ) | (167 | ) | ||||
Excess tax benefits from share based compensation
|
- | (13 | ) | |||||
Changes in operating assets and liabilities:
|
||||||||
Restricted investments
|
(1,190 | ) | (3,536 | ) | ||||
Accounts receivable, net
|
(28,621 | ) | (25,420 | ) | ||||
Prepaid taxes
|
(14,533 | ) | (308 | ) | ||||
Prepaid expenses and other current assets
|
(1,621 | ) | (2,137 | ) | ||||
Other assets
|
(2,047 | ) | (682 | ) | ||||
Accounts payable
|
20,370 | 27,635 | ||||||
Accrued expenses
|
367 | 1,736 | ||||||
Non-current liabilities
|
284 | 2,888 | ||||||
Net cash provided by operating activities
|
98,541 | 117,417 | ||||||
Cash flows from investing activities:
|
||||||||
Proceeds from sale of equipment
|
612 | 1,837 | ||||||
Purchases of property and equipment
|
(119,171 | ) | (110,917 | ) | ||||
Net cash used in investing activities
|
(118,559 | ) | (109,080 | ) | ||||
Cash flows from financing activities:
|
||||||||
Proceeds from issuance of debt | 91,084 | 9,120 | ||||||
Repayments of long term debt | (7,251 | ) | (874 | ) | ||||
Proceeds from stock options exercised
|
- | 41 | ||||||
Stock tendered for payments of withholding taxes | (3,195 | ) | (2,634 | ) | ||||
Purchase of treasury stock
|
(18,024 | ) | (13,791 | ) | ||||
Capital lease payments
|
(2,449 | ) | (2,329 | ) | ||||
Excess tax benefits from share-based compensation
|
652 | 336 | ||||||
Net cash provided by (used in) financing activities
|
60,817 | (10,131 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents
|
6 | (2 | ) | |||||
Net increase (decrease) in cash and cash equivalents
|
40,805 | (1,796 | ) | |||||
Cash and cash equivalents beginning of the year
|
68,964 | 70,760 | ||||||
Cash and cash equivalents end of the year | $ | 109,769 | $ | 68,964 | ||||