EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACT:
Teresa Hess
Director, Investor Relations
Tecumseh Products Company
734-585-9507
TECUMSEH PRODUCTS COMPANY REPORTS THIRD QUARTER 2008 RESULTS
- Global economic slowdown exerts significant downward pressure on
revenues and margins and accelerates restructuring plans, resulting in
a net loss of $36.5 million for the quarter
- Total cash and equivalents amounted to $126.1 million, an increase of
$49.3 million when compared to the beginning of the year, providing
flexibility to support operations. Cash was utilized in the third
quarter to address working capital needs
- Effectively managing through challenging economic environment with
continued efforts to match capacity with demand and reduce operating
costs
ANN ARBOR, MICH., NOV. 5, 2008 - Tecumseh Products Company (NASDAQ: TECUA,
TECUB), a leading global manufacturer of compressors and related products, today
announced results for its third quarter ended Sept. 30, 2008.
"The dramatic slowdown of the global economy, continued tightening of the credit
markets and unprecedented volatility in the foreign exchange and commodity
markets combined to have a significant negative impact on our results in the
third quarter," commented Ed Buker, Chairman, President and CEO of Tecumseh
Products. "Although our bottom-line performance for the quarter was clearly
impacted by recent economic events, we took immediate action to address those
outside forces, including reducing our global headcount over the course of the
quarter by about 1,200 people. Going forward, we will continue to take the steps
necessary for Tecumseh to address the current global economic slowdown while
positioning the Company for gains in efficiency and profitability once the
global economy begins to recover. In the interim, our intensive cost cutting to
size our business to current volumes combined with aggressive cash management
should enable us to navigate the current economic uncertainties and continue to
pursue our long-term strategic plan."
With respect to global economic activity, the recent decline, which may
ultimately become a global recession precipitated by the financial crisis, has
had a detrimental effect on Tecumseh's sales volumes. This decline has been
marked by a deterioration of credit availability for consumers and customers,
increased borrowing rates for those who are able to secure lines of credit,
slowdowns in the housing market, and double-digit inflation rates in some
countries where the Company's business is concentrated. Any one of these
factors, taken independently, would have an adverse impact on sales volumes;
combined, the impact has been significant. Although Tecumseh is a global
business, and declines in economic activity that affect only certain regional
markets are often balanced against greater growth in other parts of the globe,
the current slowdown is affecting all of the Company's global markets with
nearly equal severity. In the first half of 2008, consistent with expectations,
the Company began to see a slowdown when compared to prior periods. As a result
of the conditions described above, this trend continued at an accelerated pace
in the third quarter of the year and based upon customer actions evidence
suggests that the fourth quarter will see an even greater decline in activity.
The
1
Company does not currently expect market conditions to improve before mid-2009.
Accordingly, it has accelerated certain restructuring activities which involve
the idling of underutilized assets and further reductions in employment levels
throughout the world.
Consolidated net sales from continuing operations in the third quarter of 2008
decreased to $256.2 million from $278.4 million in 2007. Sales of compressors
for air conditioning and other applications declined by $13.6 million, due to
softer economic conditions, higher customer inventory levels and
cooler-than-normal weather in many markets. Sales for refrigeration & freezer
applications declined by $9.6 million, associated primarily with a downturn in
market volumes as well as market share, most substantially in North America and
India. Compressors for commercial applications reported a slight increase in
sales of $1.0 million. For these applications, price increases and currency
effects more than offset declines in unit volumes due to softer economic
conditions and lower shipments to customers in light of higher inventory
balances. Expressed in unit volumes, compressors for commercial and aftermarket
applications (52% of sales dollars) declined by 26.9% when compared to 2007,
refrigeration & freezer applications (33% of sales dollars) declined by 13.8%,
and air conditioning applications (15% of sales dollars) declined by 49.5%.
Cost of sales was $238.7 million in the three months ended Sept. 30, 2008
compared to $244.4 million in the three months ended Sept. 30, 2007. As a
percentage of net sales, cost of sales was 93.2% and 87.8% in the third quarters
of 2008 and 2007, respectively. In dollar terms, gross margin declined $16.5
million to $17.5 million in 2008 compared with $34.0 million in the third
quarter of 2007.
Current year margin was favorably impacted by selling price advances of $7.0
million. However, as discussed above, unit volumes declined substantially when
compared to the third quarter of 2007, resulting in unfavorable overhead
absorption rates. These declines were partially offset by an improved mix of
higher-margin product, but the net impact of these factors resulted in a decline
of $11.1 million in 2008 when compared to prior year results. The effect of
foreign currency exchange unfavorably impacted results for the current quarter
by $8.6 million, which included $3.7 million for losses recognized in the
Company's income statement from the re-measurement of foreign denominated assets
& liabilities in Brazil and the mark to market of ineffective hedges in India,
which resulted from the rapid devaluation of these currencies at the end of the
quarter. Unfavorable commodity costs of $3.7 million and unfavorable purchasing,
productivity and other costs of $0.1 million also affected gross margins in the
quarter.
Selling, general and administrative ("SG&A") expenses were $33.7 million and
$28.8 million in the three months ended Sept. 30, 2008 and 2007 respectively. As
a percentage of net sales, SG&A expenses were 13.1% in the third quarter of 2008
compared to 10.3% in the third quarter of 2007. The Company recorded
expenditures of approximately $5.1 million in the third quarter of 2008 for
one-time professional fees, which included consulting services for strategic
planning and legal fees for corporate governance issues. This expenditure
constituted an increase of $2.7 million in professional fees incurred for
one-time projects when compared to the same period in 2007. The remaining $2.2
million increase in administrative cost was largely reflective of costs
recognized in continuing operations that were previously allocated to businesses
that are now discontinued operations.
Buker continued: "Clearly, the most significant challenge facing our Company in
the third quarter came from the dramatic slowdown of the global economy, which
had a sizable negative impact on our sales and margins. Beyond the global
economic conditions that diminished demand for our compressors, we also had to
contend with the tangential impact of the increasingly tight global credit
environment on our customers. As a result of reduced levels of available credit
and financing sources, we saw many
2
customers delaying orders in efforts to reduce inventory levels, even as we
faced pressure from suppliers to accelerate payments or face higher financing
costs."
Losses from continuing operations were $36.5 million in the current quarter,
compared to a profit of $2.2 million in the prior year third quarter. Included
in 2008 results were $16.2 million in impairments, restructuring charges, and
other items. The majority of these expenses were as a result of the acceleration
of the Company's plans for consolidating and relocating certain of its global
manufacturing capabilities, in light of the pronounced softening of demand
resulting from the current global financial conditions. The expense was
recognized in Brazil ($11.9 million), North America ($3.7 million), and India
($0.6 million).
Financial performance in 2008 was favorably impacted by a $1.0 million
improvement in net interest expense when compared to third quarter 2007. This
improvement is attributable to the interest earned on substantially higher
levels of cash and short-term investments in 2008.
Buker said: "In an environment characterized by recessionary forces impacting
both the developed and emerging markets, combined with a dearth of available
credit from banks and traditional funding sources, it is clearer than ever that
our balance sheet restructuring of 2007 was the right move for Tecumseh. As a
result of our efforts to increase cash, the Company has adequate resources to
withstand the slowdown, without needing to tap other sources of capital."
Consolidated net sales from continuing operations in the first three quarters of
2008 decreased to $805.2 million from $864.7 million in 2007. Sales of
compressors used in commercial applications increased by $18.4 million; these
increases were primarily the result of pricing advances and currency impacts.
These increases in sales were offset by declines in sales of compressors used in
refrigeration & freezer applications of $56.0 million, which were associated
primarily with a downturn in market volumes as well as market share,
predominantly in North America, India and Europe. Sales of compressors for air
conditioning applications and all other applications also declined by $21.9
million. Expressed in unit volumes, compressors for commercial and aftermarket
applications (52% of sales dollars) declined by 13.9% when compared to 2007,
refrigeration & freezer applications (32% of sales dollars) declined by 25.3%,
and air conditioning applications (16% of sales dollars) declined by 25.2%.
Cost of sales was $708.6 million in the nine months ended Sept. 30, 2008, as
compared to $760.5 million in the same period of 2007. As a percentage of net
sales, cost of sales was 88.0% and 87.9% in the first nine months of 2008 and
2007, respectively. Gross margin declined by $7.6 million in 2008 when compared
to the same period of 2007, from $104.2 million in 2007 to $96.6 million in
2008.
Current year margin was favorably impacted by selling price advances of $32.7
million. However, although an improved mix of higher-margin product contributed
favorably to 2008 year-to-date results, this favorable mix was not sufficient to
fully offset volume declines and lower overhead absorption, resulting in a net
reduction to 2008 margin of $23.6 million. The effect of foreign currency
exchange unfavorably impacted results for 2008 by $23.5 million when compared to
the prior year, including $5.7 million for losses from the re-measurement of
foreign denominated assets & liabilities in Brazil and the mark to market of
ineffective hedges in India. Increased commodity costs accounted for $13.1
million of the gross margin decline. These unfavorable trends were somewhat
offset by gains in productivity, purchasing costs and other improvements of
$15.6 million, as well as gains on the sale of an airplane and the Company's
former airport facility of $4.2 million.
3
Selling, general and administrative ("SG&A") expenses were $99.6 million or
12.4% of net sales in the first three quarters of 2008 as compared to $97.7
million or 11.3% of sales in the nine months ended Sept. 30, 2007. While the
Company incurred approximately $11.1 million in 2008 for one-time professional
fees, which included consulting services for strategic planning and legal fees
for corporate governance issues, this figure represented a $6.2 million
reduction in professional fees incurred for one-time projects when compared to
2007. This improvement was offset by $8.1 million in increased administrative
costs, which was primarily reflective of costs recognized in continuing
operations that were previously allocated to businesses that are now
discontinued operations.
Net loss from continuing operations was $36.3 million through the first three
quarters of 2008, compared to a loss of $8.2 million in the same period of 2007.
Results for 2008 were impacted by $20.0 million in impairments, restructuring
charges, and other items. These charges included $20.0 million in excise tax
expense on the proceeds received from the reversion of the Company's former
salaried retirement plan, $15.2 million in charges for impairment of buildings
and machinery in the third quarter of 2008 as discussed above, and a curtailment
loss on the Company's hourly pension plan of $3.9 million. The Company also
recorded expense of $6.9 million related to severance costs for previously
announced on-going restructuring activities. Offsetting these expenses were a
curtailment gain related to an hourly postretirement benefit plan ($19.1
million) due to reductions in future service cost related to the closure of
manufacturing operations in Tecumseh, Michigan, a settlement gain on the sale of
annuity contracts for the former salaried retirement plan ($6.3 million), and a
gain on the sale of a facility in Dundee, Michigan ($0.6 million).
Financial performance in 2008 was favorably impacted by a $2.7 million
improvement in interest expense when compared to 2007. Interest income also
improved by $3.1 million in 2008 due to the interest earned on substantially
higher levels of cash and short-term investments in the current year.
As of Sept. 30, 2008, the Company reported total cash and cash equivalents of
$126.1 million. In the third quarter of 2008, cash used by operations amounted
to $55.6 million. The most significant uses of cash during the quarter involved
working capital requirements, particularly payables and accrued expenses (a use
of $33.1 million) as well as accounts receivable (a use of $13.2 million). In
the case of payables, the Company accelerated payments to many cash- and
credit-constrained suppliers during the period, in order to avoid interest rate
charges on outstanding balances. With regard to accounts receivable, the Company
reduced the amount of discounted receivables by $31.0 million during the period,
which increased the net receivables recorded on the balance sheet, and also
avoided unnecessary interest expense. The remaining cash use was primarily
attributable to cash net losses, which were a result of the economic downturn
adversely affecting sales volumes combined with higher steel costs. In each of
these instances, Tecumseh's favorable cash position allowed it to address
unfavorable market conditions without incurring the cost of escalating interest
rates or drawing upon lines of credit. These cash uses were somewhat offset by
the Company's aggressive efforts to reduce its inventory balances, which
provided cash of $16.5 million during the quarter.
Subsequent to the end of the third quarter, the Company has also begun to
receive cash refunds from the Brazilian government for pre-paid non-income
taxes. As of the end of October, and based upon the exchange rate between the
U.S. dollar and the Brazilian real as of the end of the third quarter, the
Company had received approximately $53.5 million in refunds. Further refunds are
expected by the end of 2008 and into 2009. Due to the recent volatility in the
exchange rate between the U.S. dollar and the Brazilian real, the actual amounts
received as expressed in U.S. dollars will vary depending on the exchange rate
at the time of receipt or future reporting date.
4
In the aggregate, cash balances have increased by $49.3 million when compared to
the end of 2007. The most significant elements of this increase in cash were the
net proceeds of $80.0 million realized from the reversion of the Company's
salaried retirement plan and $22.6 million in proceeds from the sale of assets.
These increases were offset in part by reductions in discounted accounts
receivable of $39.8 million at international locations.
Tecumseh reported that the condition of the global economy as discussed above,
as well as commodity costs, key currency rates and weather had a significant
impact on its business operations through the first three quarters of the year.
Certain key commodities, including copper, have seen significant fluctuations in
pricing since the beginning of the year; copper prices increased by more than
30% through July and then dropped 22.3% in August and September. As of Sept. 30,
2008, the Company held more than 80% of its total projected copper requirements
for the remainder of 2008 in the form of forward purchase contracts and futures,
which will provide it with substantial (though not total) protection from any
resurgence in price during the remainder of the year but also will detract from
the ability to benefit from price decreases. In addition, the Company expects
the cost of steel and other purchased materials to be more costly in 2008 versus
2007. As of Sept. 30, 2008, the Company's steel costs had risen by 65.5% since
the beginning of this year and by 77.8% when compared to Jan. 1, 2007. Increases
in the price of steel are particularly detrimental to the Company's
profitability, as there is currently no well-established market for hedging the
cost of steel used in its products. In the aggregate and after consideration for
the recent rapid escalation in steel costs, the Company expects the total 2008
cost of its purchased materials for the full year, including the impact of its
hedging activities, to be approximately $48 million more than the prior year,
depending on commodity cost levels in the remaining three months of 2008. As a
partial means of addressing the escalating costs of commodities, the Company has
implemented price increases, most of which have already taken effect with the
remainder becoming effective over the final quarter of this year.
"Throughout 2008, we have made significant strides in hedging currency and
commodity exposure, but in the third quarter, volatility in commodity and
currency markets had a detrimental effect on our profitability," said James
Nicholson, Chief Financial Officer of Tecumseh Products. "As the prices of
hedged inputs such as copper declined in the third quarter, we did not fully
realize the benefit of the falling price, while other inputs that do not have
effective hedging vehicles continued to rise, notably, the type of steel used in
our production. On the currency side, as the rupee, real and euro fell against
the dollar, re-measurement of assets and liabilities denominated in foreign
currencies further reduced profitability in the quarter. Despite the
unprecedented volatility we experienced in recent months, we will remain
disciplined in our approach to managing commodity and currency risks. In the
long run, we will benefit from these trends if they continue."
The Brazilian real, the euro and the Indian rupee continue to show significant
volatility against the U.S. dollar. While the Company has considerable forward
purchase contracts to cover its exposure to additional fluctuations in value
during the year, it expects the changes in foreign currency exchange rates,
after giving consideration to its contracts and including the impact of balance
sheet re-measurement of assets and liabilities held in an underlying currency
other than the dollar, to have a negative financial impact totaling
approximately $37 million when compared to 2007; further strengthening of the
dollar against the real could result in additional re-measurement losses.
As a partial means of offsetting these conditions, the Company said it intends
to continue to implement further cost reductions and consolidation of productive
capacity. During the third quarter, the Company
5
reduced its total global headcount by approximately 1,200 people, and expects to
initiate further actions in the fourth quarter.
"With more than $120 million in cash and equivalents and minimal debt, we
believe we have adequate resources available to withstand the current economic
weakness, but we will remain highly disciplined in our use of cash," continued
Buker. "We will continue to hold the line on capital expenditures, though we may
incur costs to shift production and adjust our current capacity levels to better
reflect global demand and resulting revenue levels. We are holding to our
capital expenditure run rate projections of $20 to $25 million as an average
annualized basis; in the near term, we anticipate total capital investments of
$10 to $15 million in 2008, but with a carryover of approximately $10 million
into the upcoming year they may be as high as $35 million in 2009. These
expenditures will be managed carefully and will be dependent upon economic
conditions throughout the year."
CONFERENCE CALL TO DISCUSS THIRD QUARTER 2008 RESULTS
Tecumseh Products Company will host a conference call to report on the third
quarter 2008 results on Thursday, Nov. 6, 2008 at 11:00 a.m. ET. The call will
be broadcast live over the Internet and then be made available for replay
through the Investor Relations section of Tecumseh Products Company's website at
www.tecumseh.com.
Press releases and other investor information can be accessed via the Investor
Relations section of Tecumseh Products Company's Internet web site at
http://www.tecumseh.com.
CAUTIONARY STATEMENTS RELATING TO FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that are subject to the safe
harbor provisions created by that Act. In addition, forward-looking statements
may be made orally in the future by or on behalf of the Company. Forward-looking
statements can be identified by the use of terms such as "expects," "should,"
"may," "believes," "anticipates," "will," and other future tense and
forward-looking terminology.
Readers are cautioned that actual results may differ materially from those
projected as a result of certain risks and uncertainties, including, but not
limited to, i) the success of our ongoing effort to bring costs in line with
projected production levels and product mix; ii) financial market changes,
including fluctuations in foreign currency exchange rates and interest rates;
iii) availability and cost of materials, particularly commodities, including
steel and copper, whose cost can be subject to significant variation; iv)
changes in business conditions and the economy in general in both foreign and
domestic markets, the condition of which may magnify other risk factors; v)
weather conditions affecting demand for replacement products; vi) actions of
competitors; vii) our ability to maintain adequate liquidity in total and within
each foreign operation; viii) the effect of terrorist activity and armed
conflict; ix) economic trend factors such as housing starts; x) emerging
governmental regulations; xi) the ultimate cost of resolving environmental and
legal matters; xii) our ability to profitably develop, manufacture and sell both
new and existing products; xiii) the extent of any business disruption that may
result from the restructuring and realignment of our manufacturing operations or
system implementations, the ultimate cost of those initiatives and the amount of
savings actually realized; xiv) the extent of any business disruption caused by
work stoppages initiated by organized labor unions; xv) potential political and
economic adversities that could adversely affect anticipated sales and
production in Brazil; xvi) potential political and economic adversities that
could adversely affect anticipated sales and production in India,
6
including potential military conflict with neighboring countries; xvii)
increased or unexpected warranty claims; and xviii) the ongoing financial health
of major customers. These forward-looking statements are made only as of the
date of this release, and the Company undertakes no obligation to update or
revise the forward-looking statements, whether as a result of new information,
future events or otherwise.
7
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)*
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------ ------------------
(Dollars in millions, except per share data) 2008 2007 2008 2007
------- ------- ------- --------
Net sales $ 256.2 $ 278.4 $ 805.2 $ 864.7
Cost of sales 238.7 244.4 708.6 760.5
Selling and administrative expenses 33.7 28.8 99.6 97.7
Impairments, restructuring charges, and other items 16.2 (0.1) 20.0 1.6
------- ------- ------- --------
Operating (loss) income (32.4) 5.3 (23.0) 4.9
Interest expense 7.0 6.6 20.5 23.2
Interest income and other, net 2.7 1.3 7.8 4.6
------- ------- ------- --------
(Loss) income from continuing operations before taxes (36.7) (0.0) (35.7) (13.7)
Tax (benefit) expense (0.2) (2.2) 0.6 (5.5)
------- ------- ------- --------
(Loss) income from continuing operations (36.5) 2.2 (36.3) (8.2)
Income (loss) from discontinued operations, net of tax 23.3 (79.4) 49.1 (174.0)
------- ------- ------- --------
Net (loss) income ($13.2) ($77.2) $ 12.8 ($182.2)
======= ======= ======= ========
Basic earnings (loss) per share:
(Loss) income from continuing operations (1.98) 0.12 (1.96) (0.44)
Income (loss) from discontinued operations, net of tax 1.27 (4.30) 2.65 (9.42)
------- ------- ------- --------
Net (loss) income per share, basic ($0.71) ($4.18) $ 0.69 ($9.86)
======= ======= ======= ========
Diluted earnings (loss) per share
(Loss) income from continuing operations (1.98) 0.11 (1.96) (0.44)
Income (loss) from discontinued operations, net of tax 1.27 (4.00) 2.65 (9.42)
------- ------- ------- --------
Net (loss) income per share, diluted ($0.71) ($3.89) $ 0.69 ($9.86)
======= ======= ======= ========
Weighted average shares, basic (in thousands) 18,480 18,480 18,480 18,480
Weighted average shares, diluted (in thousands) 19,871 19,871 19,871 19,368
======= ======= ======= ========
Cash dividends declared per share $ 0.00 $ 0.00 $ 0.00 $ 0.00
======= ======= ======= ========
* The consolidated condensed financial statements of Tecumseh Products
Company and Subsidiaries (the "Company") are unaudited and reflect all
adjustments (including normal recurring adjustments) which are, in the
opinion of management, necessary for a fair statement of the financial
position and operating results for the interim periods. The December 31,
2007 consolidated condensed balance sheet data was derived from audited
financial statements, but does not include all disclosures required by
generally accepted accounting principles in the United States ("U.S.
GAAP"). The consolidated condensed financial statements should be read in
conjunction with the consolidated financial statements and notes thereto
contained in the Company's Annual Report for the fiscal year ended December
31, 2007. Due to the seasonal nature of certain product lines, the results
of operations for the interim period are not necessarily indicative of the
results for the entire fiscal year.
8
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
SEPTEMBER 30, December 31,
(Dollars in millions) 2008 2007
------------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 126.1 $ 76.8
Restricted Cash 14.3 6.8
Short-term investments 5.0 5.0
Accounts receivable, net 115.2 93.2
Inventories 125.9 143.4
Assets held for sale 19.5 21.9
Other current assets 116.0 50.6
-------- --------
TOTAL CURRENT ASSETS 522.0 397.7
Property, plant and equipment - net 283.8 353.3
Goodwill and other intangibles 18.5 20.2
Prepaid pension expense 129.7 233.4
Other assets 88.1 160.3
-------- --------
TOTAL ASSETS $1,042.1 $1,164.9
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, trade $ 117.2 $ 123.0
Short-term borrowings 55.6 59.5
Liabilities held for sale 2.4 2.6
Accrued liabilities 81.7 84.2
-------- --------
TOTAL CURRENT LIABILITIES 256.9 269.3
Long-term debt 1.1 3.3
Deferred income taxes 13.2 10.2
Pension and postretirement benefits 46.6 89.1
Product warranty and self-insured risks 8.2 10.0
Other non-current liabilities 34.3 37.1
-------- --------
TOTAL LIABILITIES 360.3 419.0
STOCKHOLDERS' EQUITY 681.8 745.9
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,042.1 $1,164.9
======== ========
9
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended
September 30,
-----------------
(Dollars in millions) 2008 2007
------ --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash provided by (used in) operating activities $ 24.1 ($24.5)
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets 22.6 205.9
Capital expenditures (5.5) (5.9)
Change in restricted cash (7.6) --
------ ------
Cash provided by investing activities 9.5 200.0
------ ------
CASH FLOWS FROM FINANCING ACTIVITIES:
Debt issuance / amendment costs (1.6) (2.9)
Proceeds / (repayments) from First Lien Credit
Agreement, net -- (82.8)
Other borrowings / (repayments), net 0.5 (116.1)
------ ------
Cash used in financing activities (1.1) (201.8)
------ ------
EFFECT OF EXCHANGE RATE CHANGES ON CASH 16.8 1.6
------ ------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 49.3 (24.7)
CASH AND CASH EQUIVALENTS:
Beginning of period 76.8 81.9
------ ------
End of period $126.1 $ 57.2
====== ======
10