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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from__________ to __________
Commission file number 0-14611
FRETTER, INC.
(Exact name of Registrant as specified in its charter)
MICHIGAN 38-1557359
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
12501 Grand River
Brighton, Michigan 48116
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (810) 220-5000
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last
report.)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 of 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No___
NOT APPLICABLE
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the Registrant filed all documents and reports
required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act
of 1934 subsequent to the distribution of securities under a plan confirmed by
a court. Yes___ No___
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Shares outstanding as of
Class September 12, 1994
----- ------------------------
Common Stock, $.01 par value 10,577,467
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FRETTER, INC.
INDEX
Page No.
Form 10-Q Cover Page 1
Form 10-Q Index 2
Part I. Financial Information:
Item 1. Financial Statements
Consolidated Balance Sheets 3
Consolidated Statements of Earnings 4
Consolidated Statements of
Shareholders' Equity 5
Consolidated Statements of Cash Flow 6
Notes to Consolidated Financial
Statements 7
Item 2. Management's Discussion and Analysis
of Financial Condition and
Results of Operations 9-14
Part II. Other Information
Item 1-6. 15
Signatures 16
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PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
FRETTER, INC.
CONSOLIDATED BALANCE SHEETS
( Dollars in thousands, except share data)
Assets July 31, January 31,
1994 1994
--------- ----------
Current Assets
Cash and cash equivalents $9,499 $16,805
Accounts receivable 10,634 22,983
Merchandise inventory 231,183 224,445
Prepaid expenses 6,777 4,019
Deferred commissions 5,525 3,960
-------- --------
Total current assets 263,618 272,212
Property and equipment, net 113,914 110,954
Goodwill, net 62,545 63,616
Other assets 3,913 4,587
Deferred commissions 5,807 5,433
-------- --------
$449,797 $456,802
======== ========
Liabilities and Shareholders' Equity
Current Liabilities
Current portion of long-term obligations $505 $590
Accounts payable 27,476 28,864
Current portion of deferred service contract revenue 25,564 21,290
Accrued liabilities 75,659 100,995
Reserve for store closings 8,777 33,385
Income taxes payable 2,510 3,558
-------- --------
Total current liabilities 140,491 188,682
Long-term obligations 90,050 43,584
Other noncurrent liabilities 30,392 38,696
Deferred service contract revenue 38,358 29,058
Employee benefit obligations 80,182 80,788
-------- --------
Total liabilities 379,473 380,808
-------- --------
Redeemable preferred stock 45,000 45,000
-------- --------
Commitments and contingencies
Shareholders' Equity
Preferred stock-authorized, 5,000,000 shares of $.01 par
value; issued; none
Common stock-authorized, 50,000,000 shares $.01 par
value; issued, 10,577,467 shares at
July 31, 1994 and January 31, 1994, respectively 106 106
Additional contributed capital 1,641 1,641
Retained earnings 23,577 29,247
-------- --------
25,324 30,994
-------- --------
$449,797 $456,802
======== ========
See accompanying notes to consolidated financial statements.
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FRETTER, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
For the six months ended July 31,
(Dollars in thousands, except share data)
Three-months Ended July 31, Six-months Ended July 31,
--------------------------- -------------------------
1994 1993 1994 1993
---------- --------- ---------- -----------
Net sales $205,546 $87,637 $387,550 $167,080
Cost of goods sold 151,416 63,877 284,498 121,709
---------- --------- ---------- ---------
Gross profit 54,130 23,760 103,052 45,371
Operating expenses
Selling 41,941 15,575 85,082 30,584
Warehouse and delivery 6,603 2,841 12,850 5,265
Administrative 7,465 3,304 13,169 6,663
---------- --------- ---------- ---------
56,009 21,720 111,101 42,512
Other income (expense)
Interest and other 2,155 387 4,309 822
Interest expense (1,739) (695) (3,244) (1,243)
---------- --------- ---------- ---------
416 (308) 1,065 (421)
(Loss) earnings before income taxes and
cumulative effect of change in accounting
principle (1,463) 1,732 (6,984) 2,438
Income taxes (benefit) (526) 601 (2,514) 863
---------- --------- ---------- ---------
(Loss) earnings before cumulative effect of
change in accounting principle (937) 1,131 (4,470) 1,575
Cumulative effect of change in accounting
for income taxes 2,756
---------- --------- ---------- ---------
Net (loss) earnings before preferred
dividend (937) 1,131 (4,470) 4,331
---------- --------- ---------- ---------
Preferred stock dividend requirements 600 1,200
---------- --------- ---------- ---------
Net (loss) earnings available for
common shareholders ($1,537) $1,131 ($5,670) $4,331
========== ========= ========== =========
Weighted average number of common shares 10,577,467 7,410,908 10,577,467 7,412,042
========== ========= ========== =========
(Loss) earnings per common share before
cumulative effect of change in accounting
principle ($0.15) $0.15 ($0.54) $0.21
Cumulative effect of change in accounting
for income taxes $0.37
Net (loss) earnings per common share ($0.15) $0.15 ($0.54) $0.58
========== ========= ========== =========
See accompanying notes to consolidated financial statements
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Fretter, Inc.
Consolidated Statements of Shareholders' Equity
For the six months ended July 31, 1993 and 1994
(Dollars in thousands, except share data)
Common Stock Additional
For the six-months -------------------------- Contributed Retained
ended July 31, 1993 Shares $0.01 par Capital earnings Total
- - ------------------------ ---------- ----------- ----------- ---------- ---------
BALANCE AT FEBRUARY 1, 1993 14,540,714 $145 $33,531 $30,343 $64,019
Earnings before cumulative effect
of change in accounting principle 1,575 1,575
Cumulative effect of change in accounting
principle for income taxes 2,756 2,756
Common stock redeemed (9,981) 0
---------- -------- ------- ------- -------
BALANCE AT JULY 31, 1993 14,530,733 $145 $33,531 $34,674 $68,350
========== ======== ======= ======= =======
For the six-months
ended July 31, 1994
BALANCE AT FEBRUARY 1, 1994 10,577,467 $106 $1,641 $29,247 $30,994
Net loss for the six-months
ended July 31, 1994 (5,670) (5,670)
---------- -------- ------- ------- -------
BALANCE AT JULY 31, 1994 10,577,467 $106 $1,641 $23,577 $25,324
========== ======== ======= ======= =======
See accompanying notes to consolidated statements
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FRETTER, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the six-months ended July 31,
(Dollars in thousands)
1994 1993
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) earnings before preferred dividends ($4,470) $4,332
Adjustments to reconcile net (loss) earnings to net
cash (used for) operating activities:
Depreciation and amortization 7,467 2,687
Stock compensation expense 1,236 498
Deferred income taxes (3,986)
Other non-cash items 2,195
Change in assets and liabilities
Merchandise inventory (6,738) (742)
Other current and long-term assets 7,822 (1,200)
Accounts payable (1,388) 4,149
Accrued Liabilities (27,772)
Reserve for store closings (27,262)
Deferred service contract revenue 13,574 945
Other current and long-term liabilities (9,499) (2,164)
------- ------
NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES (44,835) 4,519
------- ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (8,852) (2,211)
------- ------
Net cash (used for) investing activities (8,852) (2,211)
------- ------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long term obligations 46,578
Payments of long term obligations (197) (53)
Redemption of common stock (40)
------- ------
NET CASH (USED FOR) PROVIDED BY
FINANCING ACTIVITIES 46,381 (93)
------- ------
NET (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS (7,306) 2,214
Cash and cash equivalents at beginning of period 16,805 6,315
------- ------
Cash and cash equivalents at end of period $9,499 $8,529
======= ======
See accompanying notes to consolidated financial statements
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FRETTER, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The accompanying unaudited consolidated financial statements, which
include Fretter, Inc. and its wholly owned subsidiaries ("Company") have been
prepared in accordance with generally accepted accounting principles and
reflect, in the opinion of management, all adjustments necessary for a fair
presentation of financial position as of July 31, 1994 and the results of
operations, and cash flows for the six months ended July 31, 1994 and 1993; all
of which adjustments are of a normal and recurring nature, except for the
adoption of Statement of Financial Accounting Standard No. 109 (SFAS 109)
"Accounting for Income Taxes" effective February 1, 1993. The consolidated
financial statements should be read in conjunction with the financial
statements and notes contained in the Company's 1994 Annual Report on Form 10-K
and Annual Report filed with the Securities and Exchange Commission on April
29, 1994.
2. SERVICE CONTRACTS
The Company recognizes revenue from the sale of service contracts on a
straight-line basis over the life of the contract. Incremental direct costs
resulting from the sale of such contracts (primarily commissions) are also
deferred and recognized on a straight-line basis over the same period.
The Company has recorded a liability for the estimated costs of
servicing contracts of DUS which existed at the acquisition date. No revenue or
costs associated with these acquired contracts will be recognized. The current
and noncurrent portions of the liability are included in accrued liabilities
and other noncurrent liabilities, respectively.
3. SEASONALITY
Due to the seasonality of the Company's business, interim results of
operations are not necessarily indicative of the results for any other interim
period or the results of operations for the full year.
4. EARNINGS PER SHARE
Earnings per share are computed by dividing earnings after income taxes
by the weighted average number of common shares outstanding, including common
stock equivalents. Common stock equivalents include stock options outstanding
which may be converted to common stock. There were no common stock equivalents
used in the calculation at July 31, 1994.
5. INCOME TAXES
The Company has adopted Statement of Financial Accounting Standard No.
109, (SFAS 109) "Accounting for Income Taxes," effective February 1, 1993. The
adoption of SFAS 109 changes the method of accounting for income taxes from the
deferred method (APB 11) to an asset and liability method. The assets and
liability method recognizes the deferred tax assets and liabilities for the
expected future tax consequences of temporary differences between the carrying
amount and the tax basis of the assets and liabilities.
Under SFAS 109, assets and liabilities acquired in purchase accounting
are assigned their fair values assuming equal tax bases
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and deferred taxes are provided for lower or higher tax bases. Under ABP 11,
values were assigned net of tax. In adopting SFAS 109, the Company adjusted
the carrying values of assets so acquired. The cumulative effect of the change
in accounting principle for the three months ended April 30, 1993 was
$2,756,198 or $.19 per share.
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PART I. ITEM 2. FINANCIAL INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(SIX MONTHS ENDED JULY 31, 1994 AND 1993)
OVERVIEW
The Company is a large volume specialty retailer of home entertainment
products, consumer electronics and appliances.
On December 3, 1993, the Company issued 3,164,804 shares of common
stock, 3,000,000 shares of Convertible Series A Preferred Stock and 1,500,000
shares of Series B Preferred Stock to Dixons America Holdings, Inc. ("DAH") in
exchange for the outstanding shares of equity securities of Dixons U.S.
Holdings, Inc. ("DUS"). As a result of this transaction, the Company owns and
controls the business assets and operations of DUS. DAH subsequently
transferred all of its shares in the Company to Dixons Overseas Investments
Limited ("DOI").
The ultimate parent company of DOI is Dixons Group plc ("Dixons") which
(through certain subsidiaries), is the largest consumer electronics retailer in
the United Kingdom and is a public limited company listed on London Stock
Exchange. DUS is the holding company of Silo Holdings, Inc., which together
with its subsidiaries (including Silo, Inc.) comprise the business referred to
as "Silo."
Currently the Company operates 242 retail stores, 44 of which are in
Michigan, Ohio, Massachusetts and New Hampshire under the name Fretter; 154
retail stores under the name Silo in Arizona, California, Delaware, Illinois,
Indiana, Louisiana, Nevada, New Jersey, New Mexico, New York, Oregon,
Pennsylvania, Texas, Utah and Washington, operated through DUS; 3 retail
stores under the name YES! Your Electronics Superstore in New York, operated
through DUS; 22 retail stores in Colorado, Montana and Wyoming operated through
Fred Schmid Appliance & TV Co. ("Schmid"), a wholly-owned subsidiary of the
Company; and 19 automotive electronic retail stores in Michigan, Ohio and
Indiana operated through Dash Concepts, a wholly-owned subsidiary of the
Company.
As a result of this acquisition, the Company has closed a number of
locations where there were overlapping and competing stores, low performing
stores and duplicate facilities. Inventory liquidation sales were held in the
Los Angeles and Denver markets under the Silo name and the Indianapolis and
Chicago markets under the Fretter name. All liquidation sales are complete
except for stores required to remain open to honor continuous operation clauses
in certain leases. At September 14, 1994 there are only five stores still
required to operate under continuous operation clauses.
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PART I. ITEM 2. FINANCIAL INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(SIX MONTHS ENDED JULY 31, 1994 AND 1993)
As of July 31, 1994, reserves recorded for future costs related to
store closures aggregate $17.6 million, consisting of $8.8 and $8.8 million
expected to be incurred in the remaining six months of fiscal 1995 and in
fiscal 1996, respectively. Such reserves include estimated future lease costs,
store operating costs, employee separation and relocation costs and losses
associated with the disposal of merchandise and other costs. Such reserves
also include $15.9 million related to locations closed by DUS prior to the
acquisition.
The more significant factors affecting the Company's operations in the
six month period ended July 31, 1994 include:
- Severe weather conditions in the Eastern United States affected the
Company's Pennsylvania and New England markets.
- All Silo stores were converted to the Fretter Point of Sale System
and physical inventories were conducted on all converted stores.
- The Company consolidated Fretter and Silo headquarters into a new
location in Brighton, Michigan.
CHANGES IN RESULTS OF OPERATIONS
Net Sales
Net sales increased in the three month period ended July 31, 1994 as
compared to the three month period ended July 31, 1993 by $117.9 million
(134.5%). The increase of $117.9 million in total sales is primarily due to
the acquisition of DUS. Comparable store sales decreased $2.7 million (5.7%)
for the three month period from the same period last year.
Net sales increased in the six month period ended July 31, 1994 as
compared to the six month period ended July 31, 1993 by $220.5 million
(132.0%). Comparable store sales decreased $8.7 million (9.8%) for the six
month period from the same period last year.
Sales for the three month period ending July 31, 1994 were adversely
affected due to a lack of availability of air conditioner units.
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PART I. ITEM 2. FINANCIAL INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(SIX MONTHS ENDED JULY 31, 1994 AND 1993)
Comparable store sales relates each store's sales in a current fiscal
period to the same store's sales in the same period in the prior fiscal year.
The comparable store sales decrease for both the three and six month periods
ended July 31, 1994 does not include the sales from any of the closed Fretter
locations nor does it include the sales from any of the DUS locations.
Additionally, such sales do not include any sales from the Illinois or Colorado
regions. Nine Fretter locations were closed in Illinois and the remaining
Illinois locations were converted from Fretter to Silo stores. Further, two
Schmid locations were closed in Colorado and six Silo locations in Colorado
were converted to Schmid locations. Because of this conversion and the
liquidation of inventory in the markets pursuant thereto, the results of these
markets were excluded from comparable sales. Accordingly, of the 242 currently
operating stores, 43 are used in the comparable store sales analysis; therefor
the comparable store sales analysis is not necessarily indicative of the
overall comparable store sales performance of all currently operating retail
locations.
Cost of Goods Sold
Cost of goods sold increased by $87.5 million (137.0%) and gross profit
increased by $30.4 million (127.8%) in the three month period ended July 31,
1994 as compared to the three month period ended July 31, 1993. Gross profit
as a percentage of net sales decreased to 26.3% in the three month period ended
July 31, 1994 from 27.1% in the three month period ended July 31, 1993.
Cost of goods sold increased by $162.8 million (133.6%) and gross
profit increased by $57.7 million (127.1%) in the six month period ended July
31, 1994 as compared to the six month period ended July 31, 1993. Gross profit
as a percentage of net sales decreased to 26.6% in the six month period ended
July 31, 1994 from 27.2% in the six month period ended July 31, 1993.
The decrease in gross profit for both the three and six month periods
ended July 31, 1994 is principally attributable to the acquisition of DUS.
With the acquisition of DUS, the Company has consolidated inventory and
liquidated items not included in the future overall merchandise mix of the
Company.
Operating Expenses
Operating expenses comprise selling, warehouse and delivery, and
administrative expenses. Operating expenses increased by $34.3 million
(157.9%) in the three month period ended July 31, 1994
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PART I. ITEM 2. FINANCIAL INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(SIX MONTHS ENDED JULY 31, 1994 AND 1993)
compared to the three month period ended July 31, 1993. As a percentage of net
sales, operating expenses increased to 27.2% in the three month period ended
July 31, 1994 from 24.8% in the three month period ended July 31, 1993.
Operating expenses increased by $68.6 million (161.3%) in the six month
period ended July 31, 1994 compared to the six month period ended July 31,
1993. As a percentage of net sales, operating expenses increased to 28.7% in
the six month period ended July 31, 1994 from 25.4% in the six month period
ended July 31, 1993.
As a percentage of net sales for both the three and six month periods
ended July 31, 1994, the increase in operating expenses is primarily
attributable to an increase in store occupancy cost resulting from the
acquisition of DUS. Silo locations typically are leased as opposed to Fretter
locations, a majority of which are owned, thus leading to increased overall
occupancy costs.
Interest And Other Income
Interest and other income increased $1.8 million (456.8%) in the three
month period ended July 31, 1994 compared to the three month period ended July
31, 1993. Interest and other income as a percentage of net sales for the three
month periods ended July 31, 1994 and 1993 were 1.0% and .4%, respectively.
Interest and other income increased $3.5 million (424.2%) in the six
month period ended July 31, 1994 compared to the six month period ended July
31, 1993. Interest and other income as a percentage of net sales for the six
month periods ended July 31, 1994 and 1993 were 1.1% and .5%, respectively.
The increase for both the three and six month periods ended July 31,
1994 is due to the acquisition of DUS and subsequent increase in private label
credit card sales.
Interest Expense
Interest expense increased $1.1 million (150.2%) in the three month
period ended July 31, 1994 compared to the three month period ended July 31,
1993. Interest expense as a percentage of net sales for both three month
periods ended July 31, 1994 and 1993 was .8%.
Interest expense increased $2.0 million (161.0%) in the six month
period ended July 31, 1994 compared to the six month period
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PART I. ITEM 2. FINANCIAL INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(SIX MONTHS ENDED JULY 31, 1994 AND 1993)
ended July 31, 1993. Interest expense as a percentage of net sales for the six
month periods ended July 31, 1994 and 1993 were .8% and .7%, respectively.
The increase in interest expense for the three month period ended July
31, 1994 is primarily due to the increase in inventory levels and increased
interest rates.
Income Taxes
The effective income tax rates for the three month periods ended July
31, 1994 and 1993 were 36.0% and 34.5%, respectively. The effective income tax
rates for the six month periods ended July 31, 1994 and 1993 were 36.0% and
35.4%, respectively. The effective tax rates for the three and six month
periods ended July 31, 1994 were higher than statutory rate primarily due to
state income taxes.
Net Earnings
Due to the factors discussed above, net earnings decreased $2.6 million
from net earnings of $1.1 million in the three month period ended July 31, 1993
to a net loss available for common shareholders of $1.5 million in the three
month period ended July 31, 1994.
Due to the factors discussed above, net earnings decreased $10.0
million from net earnings of $4.3 million in the six month period ended July
31, 1994 to a net loss available for common shareholders of $5.7 million in the
six month period ended July 31, 1994.
Changes in Cash Flows
The Company's primary needs for capital are to support its inventory,
particularly during the Christmas Holiday season and the summer months with the
purchase of air conditioners. In addition, capital is required to fund new
store openings and to remodel or relocate existing stores. For the six month
period ended July 31,
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PART I. ITEM 2. FINANCIAL INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(SIX MONTHS ENDED JULY 31, 1994 AND 1993)
1994, no new stores were opened or relocated and ten stores were remodeled.
Cash and cash equivalents increased $970,000 during the six month
period ended July 31, 1994, primarily due to proceeds of long-term obligations
of $46.6 million offset by the purchase of property and equipment of $8.9
million and cash used for operating activities of $44.8 million.
Net cash used in operating activities of $44.8 million primarily
resulted from the decrease of accrued liabilities of $27.8 million, the
decrease in the reserve for store closings of $27.3 million and the increase in
deferred service contract revenue of $13.6 million.
The Company will continue to open new stores to the extent that
economically feasible transactions can be structured. The Company anticipates
fiscal 1995 capital expenditures to be approximately $16.4 million of which
approximately $12.0 million is for stores.
Since July 31, 1994, the Company has opened one new store in
Massachusetts and resited two stores, one in both Massachusetts and Washington.
The Company also plans to open one additional store and remodel three for the
fiscal year.
The Company expects to fund future expansion plans with a combination
of funds generated from operations, mortgage and loan financing, and through
existing lines of credit. The Company expects that such sources will be
sufficient to meet its future cash requirements.
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PART II. OTHER INFORMATION
Item 1. Legal Proceedings
From time to time the Company is party to various legal proceedings
relating to the conduct of its business. Many of these claims are covered by
insurance. Management is of the opinion that the outcome of any of these
currently pending legal proceedings will not have a material adverse effect on
the Company's business or financial condition.
Item 2. Changes in Securities
None
Item 3. Default upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
27. Selected Financial Data Schedule per Item
601(c)(1)(ii) of Regulation S-B and S-K.
b. Reports on Form 8-K
None
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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 thereunto duly authorized.
FRETTER, INC.
Registrant
Date: 09/14/94 By: /s/ John Hurley
------------------------------
John Hurley
Chief Executive Officer
Date: 09/14/94 By: /s/ Dale R. Campbell
------------------------------
Dale R. Campbell
Executive Vice President
(Principal Accounting Officer)
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