2015 Q1 Form 10-Q Financial Statement

#000091376015000092 Filed on May 07, 2015

View on sec.gov

Income Statement

Concept 2015 Q1 2014 Q1
Revenue $14.44B $8.453B
YoY Change 70.85% -28.18%
Cost Of Revenue $14.29B $8.324B
YoY Change 71.62% -28.58%
Gross Profit $156.5M $129.2M
YoY Change 21.13% 12.45%
Gross Profit Margin 1.08% 1.53%
Selling, General & Admin $99.00M $85.00M
YoY Change 16.47% 7.59%
% of Gross Profit 63.26% 65.79%
Research & Development $7.200M $6.200M
YoY Change 16.13% 6.9%
% of Gross Profit 4.6% 4.8%
Depreciation & Amortization $1.800M $1.700M
YoY Change 5.88% -26.09%
% of Gross Profit 1.15% 1.32%
Operating Expenses $7.200M $6.200M
YoY Change 16.13% 6.9%
Operating Profit $149.3M $123.0M
YoY Change 21.38% 12.74%
Interest Expense $4.500M $2.800M
YoY Change 60.71% 75.0%
% of Operating Profit 3.01% 2.28%
Other Income/Expense, Net $1.800M $1.300M
YoY Change 38.46% -18.75%
Pretax Income $18.10M $10.30M
YoY Change 75.73% 505.88%
Income Tax $5.100M $2.600M
% Of Pretax Income 28.18% 25.24%
Net Earnings $13.00M $7.500M
YoY Change 73.33% 400.0%
Net Earnings / Revenue 0.09% 0.09%
Basic Earnings Per Share $0.68 $0.39
Diluted Earnings Per Share $0.67 $0.39
COMMON SHARES
Basic Shares Outstanding 18.60M shares 18.61M shares
Diluted Shares Outstanding 18.96M shares 18.96M shares

Balance Sheet

Concept 2015 Q1 2014 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $244.0M $169.0M
YoY Change 44.38% -73.76%
Cash & Equivalents $243.5M $169.2M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory $67.90M
Prepaid Expenses
Receivables $1.493B $1.559B
Other Receivables $11.00M $13.00M
Total Short-Term Assets $1.748B $1.741B
YoY Change 0.4% -37.35%
LONG-TERM ASSETS
Property, Plant & Equipment $15.40M $17.40M
YoY Change -11.49% -7.45%
Goodwill $47.50M $47.50M
YoY Change 0.0% 8.94%
Intangibles $12.70M $11.00M
YoY Change 15.45% -16.67%
Long-Term Investments $1.554B $156.0M
YoY Change 896.15% -11.36%
Other Assets $715.0M $745.0M
YoY Change -4.03% 3625.0%
Total Long-Term Assets $2.715B $1.274B
YoY Change 113.06% 234.06%
TOTAL ASSETS
Total Short-Term Assets $1.748B $1.741B
Total Long-Term Assets $2.715B $1.274B
Total Assets $4.463B $3.015B
YoY Change 48.01% -4.6%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.361B $2.273B
YoY Change 3.87% 1.61%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $119.0M $2.278B
YoY Change -94.78% -7.7%
LONG-TERM LIABILITIES
Long-Term Debt $91.00M $86.00M
YoY Change 5.81%
Other Long-Term Liabilities $1.522B $218.0M
YoY Change 598.17% -8.02%
Total Long-Term Liabilities $1.613B $304.0M
YoY Change 430.59% 28.27%
TOTAL LIABILITIES
Total Short-Term Liabilities $119.0M $2.278B
Total Long-Term Liabilities $1.613B $304.0M
Total Liabilities $4.093B $2.677B
YoY Change 52.89% -5.44%
SHAREHOLDERS EQUITY
Retained Earnings $167.1M $135.4M
YoY Change 23.41% 6.78%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost) $22.00M $15.00M
YoY Change 46.67% 145.9%
Treasury Stock Shares 1.167M shares 815.8K shares
Shareholders Equity $370.0M $338.0M
YoY Change
Total Liabilities & Shareholders Equity $4.463B $3.015B
YoY Change 48.01% -4.6%

Cashflow Statement

Concept 2015 Q1 2014 Q1
OPERATING ACTIVITIES
Net Income $13.00M $7.500M
YoY Change 73.33% 400.0%
Depreciation, Depletion And Amortization $1.800M $1.700M
YoY Change 5.88% -26.09%
Cash From Operating Activities -$21.60M $1.900M
YoY Change -1236.84% -112.58%
INVESTING ACTIVITIES
Capital Expenditures -$1.000M -$1.800M
YoY Change -44.44% -5.26%
Acquisitions
YoY Change
Other Investing Activities -$7.800M $0.00
YoY Change -100.0%
Cash From Investing Activities -$8.800M -$1.800M
YoY Change 388.89% 0.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -5.300M -24.90M
YoY Change -78.71% 61.69%
NET CHANGE
Cash From Operating Activities -21.60M 1.900M
Cash From Investing Activities -8.800M -1.800M
Cash From Financing Activities -5.300M -24.90M
Net Change In Cash -35.70M -24.80M
YoY Change 43.95% -23.22%
FREE CASH FLOW
Cash From Operating Activities -$21.60M $1.900M
Capital Expenditures -$1.000M -$1.800M
Free Cash Flow -$20.60M $3.700M
YoY Change -656.76% -128.03%

Facts In Submission

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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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us-gaap Income Tax Expense Benefit
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CY2015Q1 us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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11900000 USD
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Payments To Acquire Businesses Net Of Cash Acquired
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us-gaap Payments To Acquire Property Plant And Equipment
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3100000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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1900000 USD
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18100000 USD
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3000000 USD
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us-gaap Increase Decrease In Brokerage Receivables
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66500000 USD
us-gaap Increase Decrease In Deposits
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us-gaap Increase Decrease In Deposits
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313000000 USD
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37600000 USD
us-gaap Increase Decrease In Financial Instruments Sold Not Yet Purchased
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222500000 USD
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2700000 USD
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us-gaap Increase Decrease In Income Taxes Receivable
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8900000 USD
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19600000 USD
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266300000 USD
us-gaap Increase Decrease In Operating Assets
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244800000 USD
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123800000 USD
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177100000 USD
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87600000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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5000000 USD
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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15700000 USD
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Income Loss Available To Common Stockholders Diluted
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From Aoci Realized Upon Sale Or Liquidation Before Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
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CY2014Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Before Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Before Tax
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CY2015Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Before Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Before Tax
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us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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us-gaap Professional Fees
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us-gaap Professional Fees
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CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Number
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CY2014Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value
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CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Outstanding Weighted Average Remaining Contractual Terms
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21.73
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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0.00
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
0.34
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0080
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Forfeitures
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitures
328 shares
CY2014 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Granted
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted
1096325 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Granted
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted
991689 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Authorized
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized
1000000 shares
CY2014Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
913500 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant
822500 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
390636 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
36.17
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
1700000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercises In Period Total Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
3000000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod
45359 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
0 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
91000 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
4.31
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Other Increases Decreases In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOtherIncreasesDecreasesInPeriod
5333 shares
CY2014Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
1900000 USD
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
7000000 USD
CY2014Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
1578056 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
1337269 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Period Increase Decrease
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingPeriodIncreaseDecrease
91000 shares
CY2014Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
25.38
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
28.00
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
11.06
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
27.92
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
19.59
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
20.54
CY2014Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Equity Instruments Other Than Options Aggregate Intrinsic Value Outstanding
SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueOutstanding
4000000 USD
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Equity Instruments Other Than Options Aggregate Intrinsic Value Outstanding
SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueOutstanding
7200000 USD
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P2Y10M17D
CY2015Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
2100000 USD
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P1Y4M13D
CY2014 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P4Y1M28D
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P4Y6M11D
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
281095 shares
us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
4700000 USD
CY2014Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
345400000 USD
CY2015Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
369500000 USD
us-gaap Supplemental Deferred Purchase Price
SupplementalDeferredPurchasePrice
0 USD
us-gaap Supplemental Deferred Purchase Price
SupplementalDeferredPurchasePrice
5000000 USD
CY2014Q1 us-gaap Supplies And Postage Expense
SuppliesAndPostageExpense
300000 USD
us-gaap Supplies And Postage Expense
SuppliesAndPostageExpense
500000 USD
CY2015Q1 us-gaap Supplies And Postage Expense
SuppliesAndPostageExpense
300000 USD
us-gaap Supplies And Postage Expense
SuppliesAndPostageExpense
600000 USD
us-gaap Tangible Asset Impairment Charges
TangibleAssetImpairmentCharges
700000 USD
us-gaap Tangible Asset Impairment Charges
TangibleAssetImpairmentCharges
2800000 USD
CY2014Q1 us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
900000 USD
us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
2000000 USD
CY2015Q1 us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
900000 USD
us-gaap Taxes Excluding Income And Excise Taxes
TaxesExcludingIncomeAndExciseTaxes
1900000 USD
CY2014Q1 us-gaap Technology Services Costs
TechnologyServicesCosts
800000 USD
us-gaap Technology Services Costs
TechnologyServicesCosts
1500000 USD
CY2015Q1 us-gaap Technology Services Costs
TechnologyServicesCosts
1100000 USD
us-gaap Technology Services Costs
TechnologyServicesCosts
2300000 USD
CY2014Q1 us-gaap Trading Gains Losses
TradingGainsLosses
64700000 USD
us-gaap Trading Gains Losses
TradingGainsLosses
116400000 USD
CY2015Q1 us-gaap Trading Gains Losses
TradingGainsLosses
84800000 USD
us-gaap Trading Gains Losses
TradingGainsLosses
155100000 USD
CY2015Q1 us-gaap Trading Securities Pledged As Collateral
TradingSecuritiesPledgedAsCollateral
791000000 USD
CY2014Q1 us-gaap Travel And Entertainment Expense
TravelAndEntertainmentExpense
2000000 USD
us-gaap Travel And Entertainment Expense
TravelAndEntertainmentExpense
4800000 USD
CY2015Q1 us-gaap Travel And Entertainment Expense
TravelAndEntertainmentExpense
2500000 USD
us-gaap Travel And Entertainment Expense
TravelAndEntertainmentExpense
5300000 USD
CY2014Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
942973 shares
CY2015Q1 us-gaap Treasury Stock Shares
TreasuryStockShares
1167482 shares
CY2014Q3 us-gaap Treasury Stock Value
TreasuryStockValue
17500000 USD
CY2015Q1 us-gaap Treasury Stock Value
TreasuryStockValue
22000000 USD
CY2014Q1 us-gaap Undistributed Earnings Allocated To Participating Securities
UndistributedEarningsAllocatedToParticipatingSecurities
-200000 USD
us-gaap Undistributed Earnings Allocated To Participating Securities
UndistributedEarningsAllocatedToParticipatingSecurities
-300000 USD
CY2015Q1 us-gaap Undistributed Earnings Allocated To Participating Securities
UndistributedEarningsAllocatedToParticipatingSecurities
-300000 USD
us-gaap Undistributed Earnings Allocated To Participating Securities
UndistributedEarningsAllocatedToParticipatingSecurities
-500000 USD
CY2014Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
18955128 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
19274153 shares
CY2015Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
18957780 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
18743033 shares
CY2014Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
18609550 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
18627383 shares
CY2015Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
18599011 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
18546377 shares
us-gaap Fiscal Period
FiscalPeriod
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company&#8217;s fiscal year end is September&#160;30, and the fiscal quarters end on December&#160;31,&#160;March&#160;31, June&#160;30 and September 30. Unless otherwise stated, all dates refer to fiscal years and fiscal interim periods.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of condensed consolidated 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 liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The most significant of these estimates and assumptions relate to fair value measurements for financial instruments and investments, revenue recognition, the provision for potential losses from bad debts, valuation of inventories, valuation of goodwill and intangible assets, self-insurance liabilities, incomes taxes and contingencies. Although these and other estimates and assumptions are based on the best available information, actual results could be materially different from these estimates.</font></div></div>

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