Condensed Consolidating Financial Statements | 3 Months Ended |
2-May-15 |
Condensed Consolidating Financial Statements | 19. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS |
The Company and several of its subsidiaries (the “Guarantors”) have fully and unconditionally guaranteed the senior subordinated notes payable on a joint and several basis. These guarantees are subject to release in limited circumstances (only upon the occurrence of certain customary conditions). The following are condensed consolidating financial statements, which present, in separate columns: Perry Ellis International, Inc., (Parent Only), the Guarantors on a combined, or where appropriate, consolidated basis, and the Non-Guarantors on a combined, or where appropriate, consolidated basis. Additional columns present eliminating adjustments and consolidated totals as of May 2, 2015 and January 31, 2015 and for the three months ended May 2, 2015 and May 3, 2014. The combined Guarantors are 100% owned subsidiaries of Perry Ellis International, Inc., and have fully and unconditionally guaranteed the senior subordinated notes payable on a joint and several basis. |
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PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED) |
AS OF MAY 2, 2015 |
(amounts in thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent Only | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
ASSETS | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Current Assets: | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | — | | | $ | 3,193 | | | $ | 15,543 | | | $ | — | | | $ | 18,736 | |
Accounts receivable, net | | | — | | | | 153,189 | | | | 27,803 | | | | — | | | | 180,992 | |
Intercompany receivable, net | | | 174,586 | | | | — | | | | — | | | | (174,586 | ) | | | — | |
Inventories | | | — | | | | 129,691 | | | | 23,804 | | | | — | | | | 153,495 | |
Investment, at fair value | | | — | | | | — | | | | 14,009 | | | | — | | | | 14,009 | |
Deferred income taxes | | | — | | | | — | | | | 741 | | | | — | | | | 741 | |
Prepaid income taxes | | | 4,018 | | | | — | | | | 188 | | | | 1,245 | | | | 5,451 | |
Prepaid expenses and other current assets | | | — | | | | 5,345 | | | | 1,014 | | | | — | | | | 6,359 | |
| | | | | | | | | | | | | | | | | | | | |
Total current assets | | | 178,604 | | | | 291,418 | | | | 83,102 | | | | (173,341 | ) | | | 379,783 | |
| | | | | |
Property and equipment, net | | | — | | | | 60,288 | | | | 4,435 | | | | — | | | | 64,723 | |
Other intangible assets, net | | | — | | | | 173,143 | | | | 33,638 | | | | — | | | | 206,781 | |
Goodwill | | | — | | | | 6,022 | | | | — | | | | — | | | | 6,022 | |
Investment in subsidiaries | | | 284,125 | | | | — | | | | — | | | | (284,125 | ) | | | — | |
Other assets | | | 1,697 | | | | 2,424 | | | | 1,385 | | | | — | | | | 5,506 | |
| | | | | | | | | | | | | | | | | | | | |
TOTAL | | $ | 464,426 | | | $ | 533,295 | | | $ | 122,560 | | | $ | (457,466 | ) | | $ | 662,815 | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Current Liabilities: | | | | | | | | | | | | | | | | | | | | |
Accounts payable | | $ | — | | | $ | 64,493 | | | $ | 6,337 | | | $ | — | | | $ | 70,830 | |
Accrued expenses and other liabilities | | | — | | | | 23,119 | | | | 4,253 | | | | — | | | | 27,372 | |
Accrued interest payable | | | 1,037 | | | | — | | | | — | | | | — | | | | 1,037 | |
Income taxes payable | | | — | | | | 452 | | | | — | | | | (452 | ) | | | — | |
Unearned revenues | | | — | | | | 3,356 | | | | 1,909 | | | | — | | | | 5,265 | |
Deferred pension obligation | | | — | | | | 8,911 | | | | 74 | | | | — | | | | 8,985 | |
Deferred income taxes | | | — | | | | 797 | | | | — | | | | — | | | | 797 | |
Intercompany payable, net | | | — | | | | 155,841 | | | | 23,191 | | | | (179,032 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total current liabilities | | | 1,037 | | | | 256,969 | | | | 35,764 | | | | (179,484 | ) | | | 114,286 | |
| | | | | | | | | | | | | | | | | | | | |
Senior subordinated notes payable, net | | | 150,000 | | | | — | | | | — | | | | — | | | | 150,000 | |
Senior credit facility | | | — | | | | 9,670 | | | | — | | | | — | | | | 9,670 | |
Real estate mortgages | | | — | | | | 21,882 | | | | — | | | | — | | | | 21,882 | |
Unearned revenues and other long-term liabilities | | | — | | | | 13,633 | | | | 1,074 | | | | — | | | | 14,707 | |
Deferred income taxes | | | — | | | | 37,182 | | | | 3 | | | | 1,696 | | | | 38,881 | |
| | | | | | | | | | | | | | | | | | | | |
Total long-term liabilities | | | 150,000 | | | | 82,367 | | | | 1,077 | | | | 1,696 | | | | 235,140 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 151,037 | | | | 339,336 | | | | 36,841 | | | | (177,788 | ) | | | 349,426 | |
| | | | | | | | | | | | | | | | | | | | |
Total equity | | | 313,389 | | | | 193,959 | | | | 85,719 | | | | (279,678 | ) | | | 313,389 | |
| | | | | | | | | | | | | | | | | | | | |
TOTAL | | $ | 464,426 | | | $ | 533,295 | | | $ | 122,560 | | | $ | (457,466 | ) | | $ | 662,815 | |
| | | | | | | | | | | | | | | | | | | | |
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PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATING BALANCE SHEET |
AS OF JANUARY 31, 2015 |
(amounts in thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent Only | | | Guarantors | | | Non-Guarantors | | | Eliminations | | | Consolidated | |
ASSETS | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Current Assets: | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | — | | | $ | 30,055 | | | $ | 13,492 | | | $ | — | | | $ | 43,547 | |
Accounts receivable, net | | | — | | | | 114,325 | | | | 23,107 | | | | — | | | | 137,432 | |
Intercompany receivable, net | | | 174,264 | | | | — | | | | — | | | | (174,264 | ) | | | — | |
Inventories | | | — | | | | 156,107 | | | | 27,627 | | | | — | | | | 183,734 | |
Investments, at fair value | | | — | | | | — | | | | 19,996 | | | | — | | | | 19,996 | |
Deferred income taxes | | | — | | | | — | | | | 725 | | | | — | | | | 725 | |
Prepaid income taxes | | | 5,275 | | | | — | | | | 314 | | | | 795 | | | | 6,384 | |
Prepaid expenses and other current assets | | | — | | | | 6,159 | | | | 965 | | | | — | | | | 7,124 | |
| | | | | | | | | | | | | | | | | | | | |
Total current assets | | | 179,539 | | | | 306,646 | | | | 86,226 | | | | (173,469 | ) | | | 398,942 | |
| | | | | |
Property and equipment, net | | | — | | | | 60,216 | | | | 4,417 | | | | — | | | | 64,633 | |
Other intangible assets, net | | | — | | | | 176,563 | | | | 33,638 | | | | — | | | | 210,201 | |
Goodwill | | | — | | | | 6,022 | | | | — | | | | — | | | | 6,022 | |
Investment in subsidiaries | | | 274,714 | | | | — | | | | — | | | | (274,714 | ) | | | — | |
Other assets | | | 1,809 | | | | 1,926 | | | | 1,456 | | | | — | | | | 5,191 | |
| | | | | | | | | | | | | | | | | | | | |
TOTAL | | $ | 456,062 | | | $ | 551,373 | | | $ | 125,737 | | | $ | (448,183 | ) | | $ | 684,989 | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Current Liabilities: | | | | | | | | | | | | | | | | | | | | |
Accounts payable | | $ | — | | | $ | 105,046 | | | $ | 12,743 | | | $ | — | | | $ | 117,789 | |
Accrued expenses and other liabilities | | | — | | | | 17,945 | | | | 4,410 | | | | — | | | | 22,355 | |
Accrued interest payable | | | 4,045 | | | | — | | | | — | | | | — | | | | 4,045 | |
Income taxes payable | | | — | | | | 901 | | | | — | | | | (901 | ) | | | — | |
Unearned revenues | | | — | | | | 3,023 | | | | 1,833 | | | | — | | | | 4,856 | |
Deferred pension obligation | | | — | | | | 8,878 | | | | 52 | | | | — | | | | 8,930 | |
Deferred income taxes | | | — | | | | 797 | | | | — | | | | — | | | | 797 | |
Intercompany payable, net | | | — | | | | 156,438 | | | | 23,211 | | | | (179,649 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total current liabilities | | | 4,045 | | | | 293,028 | | | | 42,249 | | | | (180,550 | ) | | | 158,772 | |
| | | | | | | | | | | | | | | | | | | | |
Senior subordinated notes payable, net | | | 150,000 | | | | — | | | | — | | | | — | | | | 150,000 | |
Real estate mortgages | | | — | | | | 22,109 | | | | — | | | | — | | | | 22,109 | |
Unearned revenues and other long-term liabilities | | | — | | | | 13,620 | | | | 1,389 | | | | — | | | | 15,009 | |
Deferred income taxes | | | — | | | | 35,383 | | | | 3 | | | | 1,696 | | | | 37,082 | |
| | | | | | | | | | | | | | | | | | | | |
Total long-term liabilities | | | 150,000 | | | | 71,112 | | | | 1,392 | | | | 1,696 | | | | 224,200 | |
| | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 154,045 | | | | 364,140 | | | | 43,641 | | | | (178,854 | ) | | | 382,972 | |
| | | | | | | | | | | | | | | | | | | | |
Total equity | | | 302,017 | | | | 187,233 | | | | 82,096 | | | | (269,329 | ) | | | 302,017 | |
| | | | | | | | | | | | | | | | | | | | |
TOTAL | | $ | 456,062 | | | $ | 551,373 | | | $ | 125,737 | | | $ | (448,183 | ) | | $ | 684,989 | |
| | | | | | | | | | | | | | | | | | | | |
|
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PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) |
FOR THE THREE MONTHS ENDED MAY 2, 2015 |
(amounts in thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent Only | | | Guarantors | | | Non- | | | Eliminations | | | Consolidated | |
Guarantors |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Net sales | | $ | — | | | $ | 232,279 | | | $ | 25,978 | | | $ | — | | | $ | 258,257 | |
Royalty income | | | — | | | | 4,912 | | | | 3,245 | | | | — | | | | 8,157 | |
| | | | | | | | | | | | | | | | | | | | |
Total revenues | | | — | | | | 237,191 | | | | 29,223 | | | | — | | | | 266,414 | |
Cost of sales | | | — | | | | 160,251 | | | | 16,063 | | | | — | | | | 176,314 | |
| | | | | | | | | | | | | | | | | | | | |
Gross profit | | | — | | | | 76,940 | | | | 13,160 | | | | — | | | | 90,100 | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative expenses | | | — | | | | 59,845 | | | | 9,763 | | | | — | | | | 69,608 | |
Depreciation and amortization | | | — | | | | 3,024 | | | | 298 | | | | — | | | | 3,322 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | — | | | | 62,869 | | | | 10,061 | | | | — | | | | 72,930 | |
| | | | | | | | | | | | | | | | | | | | |
Loss on sale of long-lived assets | | | — | | | | (697 | ) | | | — | | | | — | | | | (697 | ) |
| | | | | | | | | | | | | | | | | | | | |
Operating income | | | — | | | | 13,374 | | | | 3,099 | | | | — | | | | 16,473 | |
Interest expense | | | — | | | | 3,567 | | | | 60 | | | | — | | | | 3,627 | |
| | | | | | | | | | | | | | | | | | | | |
Net income before income taxes | | | — | | | | 9,807 | | | | 3,039 | | | | — | | | | 12,846 | |
Income tax provision | | | — | | | | 3,081 | | | | 354 | | | | — | | | | 3,435 | |
| | | | | | | | | | | | | | | | | | | | |
Equity in earnings of subsidiaries, net | | | 9,411 | | | | — | | | | — | | | | (9,411 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | | 9,411 | | | | 6,726 | | | | 2,685 | | | | (9,411 | ) | | | 9,411 | |
| | | | | | | | | | | | | | | | | | | | |
Other comprehensive income | | | 1,066 | | | | 135 | | | | 931 | | | | (1,066 | ) | | | 1,066 | |
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income | | $ | 10,477 | | | $ | 6,861 | | | $ | 3,616 | | | $ | (10,477 | ) | | $ | 10,477 | |
| | | | | | | | | | | | | | | | | | | | |
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) |
FOR THE THREE MONTHS ENDED MAY 3, 2014 |
(amounts in thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent Only | | | Guarantors | | | Non- | | | Eliminations | | | Consolidated | |
Guarantors |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Net sales | | $ | — | | | $ | 225,331 | | | $ | 24,585 | | | $ | — | | | $ | 249,916 | |
Royalty income | | | — | | | | 4,520 | | | | 2,878 | | | | — | | | | 7,398 | |
| | | | | | | | | | | | | | | | | | | | |
Total revenues | | | — | | | | 229,851 | | | | 27,463 | | | | — | | | | 257,314 | |
Cost of sales | | | — | | | | 154,245 | | | | 15,404 | | | | — | | | | 169,649 | |
| | | | | | | | | | | | | | | | | | | | |
Gross profit | | | — | | | | 75,606 | | | | 12,059 | | | | — | | | | 87,665 | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative expenses | | | — | | | | 60,554 | | | | 9,156 | | | | — | | | | 69,710 | |
Depreciation and amortization | | | — | | | | 2,769 | | | | 211 | | | | — | | | | 2,980 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | — | | | | 63,323 | | | | 9,367 | | | | — | | | | 72,690 | |
Gain on sale of long-lived assets | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Operating income | | | — | | | | 12,283 | | | | 2,692 | | | | — | | | | 14,975 | |
Interest expense | | | — | | | | 3,685 | | | | 31 | | | | — | | | | 3,716 | |
| | | | | | | | | | | | | | | | | | | | |
Net income before income taxes | | | — | | | | 8,598 | | | | 2,661 | | | | — | | | | 11,259 | |
Income tax provision | | | — | | | | 2,220 | | | | 1,264 | | | | — | | | | 3,484 | |
| | | | | | | | | | | | | | | | | | | | |
Equity in earnings of subsidiaries, net | | | 7,775 | | | | — | | | | — | | | | (7,775 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net income | | | 7,775 | | | | 6,378 | | | | 1,397 | | | | (7,775 | ) | | | 7,775 | |
| | | | | | | | | | | | | | | | | | | | |
Other comprehensive (loss) income | | | 754 | | | | 80 | | | | 674 | | | | (754 | ) | | | 754 | |
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income | | $ | 8,529 | | | $ | 6,458 | | | $ | 2,071 | | | $ | (8,529 | ) | | $ | 8,529 | |
| | | | | | | | | | | | | | | | | | | | |
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PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) |
FOR THE THREE MONTHS ENDED MAY 2, 2015 |
(amounts in thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent Only | | | Guarantors | | | Non- | | | Eliminations | | | Consolidated | |
Guarantors |
NET CASH USED IN BY OPERATING ACTIVITIES: | | $ | (1,639 | ) | | $ | (34,209 | ) | | $ | (3,820 | ) | | $ | — | | | $ | (39,668 | ) |
| | | | | | | | | | | | | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | |
Purchase of property and equipment | | | — | | | | (2,969 | ) | | | (350 | ) | | | — | | | | (3,319 | ) |
Purchase of investments | | | — | | | | — | | | | (2,640 | ) | | | — | | | | (2,640 | ) |
Proceeds from investments maturities | | | — | | | | — | | | | 8,580 | | | | — | | | | 8,580 | |
Proceeds on sale of intangible assets | | | — | | | | 2,500 | | | | — | | | | — | | | | 2,500 | |
Intercompany transactions | | | 721 | | | | — | | | | — | | | | (721 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) investing activities | | | 721 | | | | (469 | ) | | | 5,590 | | | | (721 | ) | | | 5,121 | |
| | | | | | | | | | | | | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | |
Borrowings from senior credit facility | | | — | | | | 90,036 | | | | — | | | | — | | | | 90,036 | |
Payments on senior credit facility | | | — | | | | (80,366 | ) | | | — | | | | — | | | | (80,366 | ) |
Payments on real estate mortgages | | | — | | | | (206 | ) | | | — | | | | — | | | | (206 | ) |
Payments on capital leases | | | — | | | | (77 | ) | | | — | | | | — | | | | (77 | ) |
Deferred financing fees | | | — | | | | (569 | ) | | | — | | | | — | | | | (569 | ) |
Proceeds from exercise of stock options | | | 114 | | | | — | | | | — | | | | — | | | | 114 | |
Tax benefit from exercise of equity instruments | | | 396 | | | | — | | | | — | | | | — | | | | 396 | |
Intercompany transactions | | | — | | | | (1,002 | ) | | | (127 | ) | | | 1,129 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) financing activities | | | 510 | | | | 7,816 | | | | (127 | ) | | | 1,129 | | | | 9,328 | |
Effect of exchange rate changes on cash and cash equivalents | | | 408 | | | | — | | | | 408 | | | | (408 | ) | | | 408 | |
| | | | | | | | | | | | | | | | | | | | |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | | | — | | | | (26,862 | ) | | | 2,051 | | | | — | | | | (24,811 | ) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | | | — | | | | 30,055 | | | | 13,492 | | | | — | | | | 43,547 | |
| | | | | | | | | | | | | | | | | | | | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | | $ | — | | | $ | 3,193 | | | $ | 15,543 | | | $ | — | | | $ | 18,736 | |
| | | | | | | | | | | | | | | | | | | | |
PERRY ELLIS INTERNATIONAL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED) |
FOR THE THREE MONTHS ENDED MAY 3, 2014 |
(amounts in thousands) |
|
| | | | | | | | | | | | | | | | | | | | |
| | Parent Only | | | Guarantors | | | Non- | | | Eliminations | | | Consolidated | |
Guarantors |
NET CASH (USED IN) OPERATING ACTIVITIES: | | $ | (4,408 | ) | | $ | (45,242 | ) | | $ | (656 | ) | | $ | 2,999 | | | $ | (47,307 | ) |
| | | | | | | | | | | | | | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | |
Purchase of property and equipment | | | — | | | | (2,816 | ) | | | (234 | ) | | | — | | | | (3,050 | ) |
Purchase of investments | | | — | | | | — | | | | (15,387 | ) | | | — | | | | (15,387 | ) |
Proceeds from investments maturities | | | — | | | | — | | | | 9,490 | | | | — | | | | 9,490 | |
Intercompany transactions | | | 4,664 | | | | — | | | | — | | | | (4,664 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) investing activities | | | 4,664 | | | | (2,816 | ) | | | (6,131 | ) | | | (4,664 | ) | | | (8,947 | ) |
| | | | | | | | | | | | | | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | | | | | | | | |
Borrowings from senior credit facility | | | — | | | | 110,991 | | | | — | | | | — | | | | 110,991 | |
Payments on senior credit facility | | | — | | | | (54,586 | ) | | | — | | | | — | | | | (54,586 | ) |
Payments on real estate mortgages | | | — | | | | (200 | ) | | | — | | | | — | | | | (200 | ) |
Payments on capital leases | | | — | | | | (75 | ) | | | — | | | | — | | | | (75 | ) |
Tax benefit from exercise of equity instruments | | | (95 | ) | | | — | | | | — | | | | — | | | | (95 | ) |
Intercompany transactions | | | — | | | | (4,946 | ) | | | 443 | | | | 4,503 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net cash (used in) provided by financing activities | | | (95 | ) | | | 51,184 | | | | 443 | | | | 4,503 | | | | 56,035 | |
Effect of exchange rate changes on cash and cash equivalents | | | (161 | ) | | | — | | | | (161 | ) | | | 161 | | | | (161 | ) |
| | | | | | | | | | | | | | | | | | | | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | | | — | | | | 3,126 | | | | (6,505 | ) | | | 2,999 | | | | (380 | ) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | | | — | | | | — | | | | 29,988 | | | | (2,999 | ) | | | 26,989 | |
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CASH AND CASH EQUIVALENTS AT END OF PERIOD | | $ | — | | | $ | 3,126 | | | $ | 23,483 | | | $ | — | | | $ | 26,609 | |
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