2018 Q4 Form 10-Q Financial Statement

#000147409818000186 Filed on November 01, 2018

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2017 Q3
Revenue $235.6M $205.5M $201.8M
YoY Change 31.18% 1.83% -3.43%
Cost Of Revenue $158.0M $119.7M $116.9M
YoY Change 36.8% 2.39% -0.03%
Gross Profit $77.60M $85.82M $84.92M
YoY Change 21.06% 1.05% -7.69%
Gross Profit Margin 32.93% 41.76% 42.08%
Selling, General & Admin $19.40M $21.50M $15.80M
YoY Change 6.01% 36.08% -17.28%
% of Gross Profit 25.0% 25.05% 18.61%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $34.30M $24.70M $25.30M
YoY Change 38.31% -2.37% -0.39%
% of Gross Profit 44.2% 28.78% 29.79%
Operating Expenses $53.70M $46.20M $41.00M
YoY Change 24.31% 12.68% -8.07%
Operating Profit $23.90M $40.35M $40.71M
YoY Change 14.35% -0.88% 15.19%
Interest Expense -$20.60M $12.65M $8.969M
YoY Change 121.51% 41.01% -12.56%
% of Operating Profit -86.19% 31.34% 22.03%
Other Income/Expense, Net -$27.30M $3.931M $132.0K
YoY Change -1400.0% 2878.03% -91.47%
Pretax Income -$101.2M $31.64M $32.16M
YoY Change -950.42% -1.64% -194.58%
Income Tax -$1.900M $1.719M $1.593M
% Of Pretax Income 5.43% 4.95%
Net Earnings -$98.91M $29.79M $30.44M
YoY Change -931.25% -2.14% -185.94%
Net Earnings / Revenue -41.98% 14.5% 15.09%
Basic Earnings Per Share -$1.16 $0.37 $0.38
Diluted Earnings Per Share -$1.16 $0.37 $0.38
COMMON SHARES
Basic Shares Outstanding 69.04M shares 68.91M shares 68.81M shares
Diluted Shares Outstanding 69.26M shares 69.20M shares

Balance Sheet

Concept 2018 Q4 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $83.40M $18.00M $14.20M
YoY Change 228.35% 26.76% -69.53%
Cash & Equivalents $83.37M $18.03M $14.19M
Short-Term Investments
Other Short-Term Assets $76.70M $173.5M $43.90M
YoY Change 75.92% 295.22% -10.04%
Inventory
Prepaid Expenses
Receivables $59.90M $36.30M $35.80M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $220.0M $227.8M $93.90M
YoY Change 124.03% 142.6% -26.06%
LONG-TERM ASSETS
Property, Plant & Equipment $6.734B $2.466B $2.493B
YoY Change 170.93% -1.09% -3.66%
Goodwill
YoY Change
Intangibles $199.7M $28.59M $29.19M
YoY Change 587.9% -2.03% -1.98%
Long-Term Investments $373.9M
YoY Change
Other Assets $24.40M $8.500M $6.500M
YoY Change 243.66% 30.77% -88.66%
Total Long-Term Assets $6.758B $2.849B $2.500B
YoY Change 171.13% 13.96% -11.62%
TOTAL ASSETS
Total Short-Term Assets $220.0M $227.8M $93.90M
Total Long-Term Assets $6.758B $2.849B $2.500B
Total Assets $6.978B $3.076B $2.594B
YoY Change 169.34% 18.61% -12.24%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $360.3M $147.6M $150.1M
YoY Change 142.14% -1.67% -8.7%
Accrued Expenses $2.700M $3.500M $3.300M
YoY Change 28.57% 6.06% -10.81%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $461.5M $208.3M $205.2M
YoY Change 128.35% 1.51% -7.15%
LONG-TERM LIABILITIES
Long-Term Debt $2.747B $1.333B $872.9M
YoY Change 210.31% 52.74% -22.7%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $2.747B $1.333B $872.9M
YoY Change 210.31% 52.74% -22.75%
TOTAL LIABILITIES
Total Short-Term Liabilities $461.5M $208.3M $205.2M
Total Long-Term Liabilities $2.747B $1.333B $872.9M
Total Liabilities $3.208B $1.541B $1.078B
YoY Change 195.07% 42.99% -20.2%
SHAREHOLDERS EQUITY
Retained Earnings -$308.8M -$170.3M -$172.6M
YoY Change 61.67% -1.33% 10.61%
Common Stock $1.303M $689.0K $688.0K
YoY Change 89.39% 0.15% -4.31%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.760B $1.529B $1.511B
YoY Change
Total Liabilities & Shareholders Equity $6.978B $3.076B $2.594B
YoY Change 169.34% 18.61% -12.24%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income -$98.91M $29.79M $30.44M
YoY Change -931.25% -2.14% -185.94%
Depreciation, Depletion And Amortization $34.30M $24.70M $25.30M
YoY Change 38.31% -2.37% -0.39%
Cash From Operating Activities -$35.10M $68.30M $57.60M
YoY Change -182.59% 18.58% -15.91%
INVESTING ACTIVITIES
Capital Expenditures -$32.80M -$21.70M -$16.20M
YoY Change 89.6% 33.95% -43.55%
Acquisitions
YoY Change
Other Investing Activities -$1.232B -$109.5M $2.300M
YoY Change -16100.0% -4860.87% -123.71%
Cash From Investing Activities -$1.265B -$131.2M -$13.90M
YoY Change 13075.0% 843.88% -63.8%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.381B 63.90M -44.00M
YoY Change -6645.5% -245.23% 122.22%
NET CHANGE
Cash From Operating Activities -35.10M 68.30M 57.60M
Cash From Investing Activities -1.265B -131.2M -13.90M
Cash From Financing Activities 1.381B 63.90M -44.00M
Net Change In Cash 81.20M 1.000M -300.0K
YoY Change 588.14% -433.33% -102.91%
FREE CASH FLOW
Cash From Operating Activities -$35.10M $68.30M $57.60M
Capital Expenditures -$32.80M -$21.70M -$16.20M
Free Cash Flow -$2.300M $90.00M $73.80M
YoY Change -103.85% 21.95% -24.07%

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InsuredEventGainLoss
0 USD
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Land
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3500000 USD
us-gaap Lease And Rental Expense
LeaseAndRentalExpense
10200000 USD
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LeaseAndRentalExpense
3600000 USD
us-gaap Lease And Rental Expense
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10100000 USD
CY2017Q4 us-gaap Liabilities
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CY2017Q4 us-gaap Line Of Credit
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CY2017Q3 us-gaap Loss From Catastrophes
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74000 USD
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1452000 USD
us-gaap Marketable Securities Unrealized Gain Loss
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0 USD
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MarketableSecuritiesUnrealizedGainLoss
24100000 USD
CY2017Q4 us-gaap Minority Interest
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4625000 USD
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MinorityInterestOwnershipPercentageByNoncontrollingOwners
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us-gaap Net Cash Provided By Used In Operating Activities
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CY2017Q3 us-gaap Net Income Loss
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30443000 USD
us-gaap Net Income Loss
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87989000 USD
CY2018Q3 us-gaap Net Income Loss
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29792000 USD
us-gaap Net Income Loss
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CY2017Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
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us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
341000 USD
CY2018Q3 us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
125000 USD
us-gaap Net Income Loss Attributable To Noncontrolling Interest
NetIncomeLossAttributableToNoncontrollingInterest
424000 USD
CY2017Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
26420000 USD
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
75919000 USD
CY2018Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
25769000 USD
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
100234000 USD
us-gaap Noncontrolling Interest Increase From Subsidiary Equity Issuance
NoncontrollingInterestIncreaseFromSubsidiaryEquityIssuance
106000 USD
CY2018Q3 us-gaap Number Of Real Estate Properties
NumberOfRealEstateProperties
28 property
CY2017Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
40710000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
101420000 USD
CY2018Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
40352000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
120221000 USD
us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
3849000 USD
us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
0 USD
CY2017Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
733000 USD
us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
1544000 USD
CY2018Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
829000 USD
us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
-1861000 USD
us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
-1807000 USD
CY2017Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
132000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
132000 USD
CY2018Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
3891000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
29247000 USD
us-gaap Other Payments To Acquire Businesses
OtherPaymentsToAcquireBusinesses
0 USD
us-gaap Other Payments To Acquire Businesses
OtherPaymentsToAcquireBusinesses
112000000 USD
us-gaap Payments For Capital Improvements
PaymentsForCapitalImprovements
63545000 USD
us-gaap Payments For Capital Improvements
PaymentsForCapitalImprovements
56935000 USD
us-gaap Payments For Proceeds From Deposits On Real Estate Acquisitions
PaymentsForProceedsFromDepositsOnRealEstateAcquisitions
-2000000 USD
us-gaap Payments For Proceeds From Deposits On Real Estate Acquisitions
PaymentsForProceedsFromDepositsOnRealEstateAcquisitions
0 USD
us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
95981000 USD
us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
2507000 USD
us-gaap Payments Of Dividends Common Stock
PaymentsOfDividendsCommonStock
81039000 USD
us-gaap Payments Of Dividends Common Stock
PaymentsOfDividendsCommonStock
79403000 USD
us-gaap Payments Of Dividends Preferred Stock And Preference Stock
PaymentsOfDividendsPreferredStockAndPreferenceStock
12070000 USD
us-gaap Payments Of Dividends Preferred Stock And Preference Stock
PaymentsOfDividendsPreferredStockAndPreferenceStock
12070000 USD
us-gaap Payments Of Financing Costs
PaymentsOfFinancingCosts
145000 USD
us-gaap Payments Of Financing Costs
PaymentsOfFinancingCosts
15724000 USD
us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
62000 USD
us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
470000 USD
us-gaap Payments To Acquire Marketable Securities
PaymentsToAcquireMarketableSecurities
356180000 USD
us-gaap Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
39000 USD
us-gaap Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
34000 USD
CY2017Q3 us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
4023000 USD
us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
12070000 USD
CY2018Q3 us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
4023000 USD
us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
12070000 USD
CY2017Q4 us-gaap Preferred Stock Liquidation Preference Value
PreferredStockLiquidationPreferenceValue
250000000 USD
CY2018Q3 us-gaap Preferred Stock Liquidation Preference Value
PreferredStockLiquidationPreferenceValue
250000000 USD
CY2017Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2018Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.01
CY2018Q3 us-gaap Preferred Stock Redemption Price Per Share
PreferredStockRedemptionPricePerShare
25.00
CY2017Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
100000000 shares
CY2018Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
100000000 shares
CY2017Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
10000000 shares
CY2018Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
10000000 shares
CY2017Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
10000000 shares
CY2018Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
10000000 shares
CY2017Q4 us-gaap Preferred Stock Value
PreferredStockValue
100000 USD
CY2018Q3 us-gaap Preferred Stock Value
PreferredStockValue
100000 USD
CY2017Q4 us-gaap Prepaid Expense And Other Assets
PrepaidExpenseAndOtherAssets
43642000 USD
CY2018Q3 us-gaap Prepaid Expense And Other Assets
PrepaidExpenseAndOtherAssets
173472000 USD
us-gaap Proceeds From Insurance Settlement Investing Activities
ProceedsFromInsuranceSettlementInvestingActivities
0 USD
us-gaap Proceeds From Insurance Settlement Investing Activities
ProceedsFromInsuranceSettlementInvestingActivities
5104000 USD
us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
220502000 USD
us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
500181000 USD
us-gaap Proceeds From Minority Shareholders
ProceedsFromMinorityShareholders
106000 USD
us-gaap Proceeds From Minority Shareholders
ProceedsFromMinorityShareholders
0 USD
us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
0 USD
us-gaap Proceeds From Sale And Maturity Of Marketable Securities
ProceedsFromSaleAndMaturityOfMarketableSecurities
6658000 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
203479000 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
0 USD
CY2017Q3 us-gaap Profit Loss
ProfitLoss
30571000 USD
us-gaap Profit Loss
ProfitLoss
88330000 USD
CY2018Q3 us-gaap Profit Loss
ProfitLoss
29917000 USD
us-gaap Profit Loss
ProfitLoss
112728000 USD
CY2017Q4 us-gaap Real Estate Investment Property Accumulated Depreciation
RealEstateInvestmentPropertyAccumulatedDepreciation
447622000 USD
CY2018Q3 us-gaap Real Estate Investment Property Accumulated Depreciation
RealEstateInvestmentPropertyAccumulatedDepreciation
521101000 USD
CY2017Q4 us-gaap Real Estate Investment Property At Cost
RealEstateInvestmentPropertyAtCost
2904072000 USD
CY2018Q3 us-gaap Real Estate Investment Property At Cost
RealEstateInvestmentPropertyAtCost
2958780000 USD
CY2017Q4 us-gaap Real Estate Investment Property Net
RealEstateInvestmentPropertyNet
2456450000 USD
CY2018Q3 us-gaap Real Estate Investment Property Net
RealEstateInvestmentPropertyNet
2437679000 USD
us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
272502000 USD
us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
151181000 USD
us-gaap Repayments Of Secured Debt
RepaymentsOfSecuredDebt
71737000 USD
us-gaap Repayments Of Secured Debt
RepaymentsOfSecuredDebt
1764000 USD
CY2017Q4 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
7123000 USD
CY2018Q3 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
8485000 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-191013000 USD
CY2018Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-170284000 USD
CY2017Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
201793000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
589688000 USD
CY2018Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
205480000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
593036000 USD
CY2017Q4 us-gaap Secured Debt
SecuredDebt
70457000 USD
CY2018Q3 us-gaap Secured Debt
SecuredDebt
68731000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
3717000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
4237000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Period1
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1
P6Y
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
1207886 shares
us-gaap Stock Issued1
StockIssued1
503000 USD
us-gaap Stock Issued1
StockIssued1
662000 USD
us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
3717000 USD
us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
4237000 USD
us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
95981000 USD
us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
2507000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
1498901000 USD
CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
1529391000 USD
CY2016Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1609116000 USD
CY2017Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1515651000 USD
CY2017Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1503526000 USD
CY2018Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
1534983000 USD
CY2017Q3 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
0 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
0 USD
CY2018Q3 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
0 USD
us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
67000 USD
CY2017Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
69202920 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
70228074 shares
CY2018Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
69255858 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
69267098 shares
CY2017Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
68814805 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
69854618 shares
CY2018Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
68912185 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
68900402 shares
us-gaap Write Off Of Deferred Debt Issuance Cost
WriteOffOfDeferredDebtIssuanceCost
776000 USD
us-gaap Write Off Of Deferred Debt Issuance Cost
WriteOffOfDeferredDebtIssuanceCost
0 USD
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:18px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:6px;text-align:left;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management&#8217;s best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from these estimates.</font></div></div>

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