SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2005 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ........... to ............ Commission file number 0-8006 COX TECHNOLOGIES, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) NORTH CAROLINA 86-0220617 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 77 McADENVILLE ROAD BELMONT, NORTH CAROLINA 28012-2434 (Address of principal executive offices) (Zip Code) (704) 825-8146 (Registrant's telephone number, including area code) NONE (Former name, former address and former fiscal year, if changed since last report) Indicated by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 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 [ ] Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Number of shares of Common Stock, no par value, outstanding at January 16, 2005...................................................38,167,077 COX TECHNOLOGIES, INC. FORM 10-Q TABLE OF CONTENTS FACE SHEET ....................................................................1 TABLE OF CONTENTS .............................................................2 PART I. FINANCIAL INFORMATION Item 1. Financial Statements Statements of Net Assets in Liquidation at January 31, 2005 (Unaudited) and April 30, 2004 ....................................3 Statements of Changes in Net Assets in Liquidation for the Three and Nine Months ended January 31, 2005(Unaudited) ...........4 Consolidated Statements of Income For the Three and Nine Months Ended January 31, 2004 (Unaudited) .........................5 Consolidated Statement of Cash Flows For the Nine Months Ended January 31, 2004 (Unaudited) ................................6 Notes to Consolidated Financial Statements (Unaudited) .............7-9 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations ...............9-11 Item 3. Quantitative and Qualitative Disclosure About Market Risks ..........11 Item 4. Controls and Procedures .............................................11 PART II. OTHER INFORMATION AND SIGNATURES Item 1. Legal Proceedings ...................................................11 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds .........12 Item 6. Exhibits 31.1 - Certification by Co-Chief Executive Officer .................A-1 31.2 - Certification by Co-Chief Executive Officer .................A-2 31.3 - Certification by Chief Financial Officer ....................A-3 32.1 - Certificate of Co-Chief Executive Officers ..................A-4 32.2 - Certificate of Chief Financial Officer ......................A-5 Signatures ...................................................................12 2 PART I . FINANCIAL INFORMATION Item 1. Financial Statements COX TECHNOLOGIES, INC. STATEMENTS OF NET ASSETS IN LIQUIDATION January 31, 2005 April 30, 2004 ---------------- -------------- (Unaudited) ASSETS Cash and cash equivalents $2,574,441 $7,597,606 Amounts due from purchaser -- 319,613 Other assets -- 36,711 ---------- ---------- TOTAL ASSETS $2,574,441 $7,953,930 ========== ========== LIABILITIES Accounts payable and accrued liabilities $ 45,637 $ 707,444 Distribution declared and unpaid 982,290 -- Estimated costs of liquidation 483,725 630,131 ---------- ---------- Commitments and contingencies TOTAL LIABILITIES 1,511,652 1,337,575 ---------- ---------- NET ASSETS IN LIQUIDATION $1,062,789 $6,616,355 ========== ========== See Notes to Unaudited Financial Statements. 3 COX TECHNOLOGIES, INC. STATEMENTS OF CHANGES IN NET ASSETS IN LIQUIDATION Three Months Ended Nine Months Ended January 31, 2005 January 31, 2005 ---------------- ---------------- (Unaudited) (Unaudited) NET DECREASE IN NET ASSETS IN LIQUIDATION: - ----------------------------------------- Interest Income $ 37,897 $ 89,638 Distribution to shareholders ( 5,343,391) (5,343,391) Decrease (increase) in estimated costs of liquidation 245,202 ( 299,813) ------------- ------------ NET DECREASE IN ASSETS IN LIQUIDATION (5,060,292) (5,553,566) NET ASSETS IN LIQUIDATION, BEGINNING OF PERIOD 6,123,081 6,616,355 ------------- ------------ NET ASSETS IN LIQUIDATION, END OF PERIOD $ 1,062,789 $ 1,062,789 ============= ============ See Notes to Unaudited Financial Statements. 4 COX TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Nine Months Ended January 31, 2004 January 31, 2004 ---------------- ---------------- (Unaudited) (Unaudited) REVENUE: Sales $ 2,481,510 $ 7,446,371 ------------ ------------ COSTS AND EXPENSES: Cost of sales 1,274,501 3,609,674 General and administrative 443,493 1,334,283 Selling 235,679 689,592 Depreciation 24,867 73,694 ------------ ------------ TOTAL COSTS AND EXPENSES 1,978,540 5,707,243 ------------ ------------ INCOME FROM OPERATIONS 502,970 1,739,128 ------------ ------------ OTHER INCOME (EXPENSE): Other income 22,298 48,289 Interest expense (91,281) (332,717) ------------ ------------ TOTAL OTHER INCOME (EXPENSE) (68,983) (284,428) ------------ ------------ INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 433,987 1,454,700 PROVISION FOR INCOME TAXES -- -- ------------ ------------ INCOME FROM CONTINUING OPERATIONS 433,987 1,454,700 OPERATING LOSS FROM DISCONTINUED OPERATIONS 39,989 364,703 LOSS ON SALE OF ASSETS OF DISCONTINUED OPERATIONS 248,690 248,690 PROVISION FOR INCOME TAXES ON DISCONTINUED OPERATIONS -- -- ------------ ------------ LOSS FROM DISCONTINUED OPERATIONS 288,679 613,393 ------------ ------------ NET INCOME $ 288,679 $ 841,307 ============ ============ EARNINGS PER SHARE, BASIC AND DILUTED: Continuing Operations $ .01 $ .04 Discontinued Operations ( $.01) ( $.02) Net Income $ .00 $ .02 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 38,331,825 38,335,863 See Notes to Unaudited Financial Statements. 5 COX TECHNOLOGIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS Nine Months Ended January 31, 2004 ---------------- (Unaudited) CASH FLOW FROM OPERATING ACTIVITIES: Net income $ 841,307 Adjustments to reconcile net income to net cash used by operating activities: Depreciation 181,849 Amortization of patents 28,711 Increase in allowance for doubtful accounts 6,170 Other (9,853) Loss on sale of assets of discontinued operations 248,690 Decrease in valuation adjustment 8,928 ----------- 1,305,802 Changes in assets and liabilities: (Increase) decrease in current assets: Accounts receivable (312,760) Inventory (655,201) Prepaid expenses (41,577) Increase in current liabilities: Accounts payable and accrued expenses 257,613 ----------- CASH PROVIDED BY OPERATING ACTIVITIES 553,877 ----------- CASH FLOW FROM INVESTING ACTIVITIES: Purchase of property and equipment (43,675) Collection of note receivable from property held for sale 75,000 ----------- CASH PROVIDED BY INVESTING ACTIVITIES 31,325 ----------- CASH FLOW FROM FINANCING ACTIVITIES: Issuance of common stock, net 1,072 Decrease in debt (413,192) Decrease in subscription receivable 11,279 ----------- CASH USED IN FINANCING ACTIVITIES (400,841) ----------- EFFECT OF EXCHANGE RATE CHANGES ON CASH (15,725) ----------- NET INCREASE IN CASH 168,636 CASH AND CASH EQUIVALENTS, beginning of period 572,149 ----------- CASH AND CASH EQUIVALENTS, end of period $ 740,785 =========== Supplemental Cash Flow Information Interest paid $ 36,959 Income taxes paid $ -- Note received from sale of Vitsab operations $ 175,000 See Notes to Unaudited Financial Statements 6 COX TECHNOLOGIES, INC. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS (UNAUDITED) These financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended April 30, 2004. In the opinion of management, all adjustments (consisting solely of adjustments to the estimated value of assets and costs of liquidation and other recurring estimates) necessary for a fair statement of the results of the liquidation of the Company for the interim period have been recorded. Note 1. SALE OF SUBSTANTIALLY ALL ASSETS, ACCOUNTING BASIS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Sale of Substantially All Assets On December 12, 2003, the Company entered into an Asset Purchase Agreement (the "Asset Purchase Agreement") with Sensitech Inc., a Delaware corporation ("Sensitech") and Cox Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of Sensitech, formed for purposes of consummating the Asset Purchase Agreement ("Buyer") to sell substantially all of its assets ("the Asset Sale"). Effective April 16, 2004, the Company and Sensitech completed the Asset Sale. The aggregate consideration received by the Company at the closing was comprised of $10,595,589 in cash. In addition, Sensitech assumed $233,569 of the Company's payables and assumed certain other liabilities. At closing, Sensitech retained a $250,000 holdback amount in the Asset Sale. Under the terms of the Asset Purchase Agreement, the Company retained certain assets and liabilities, including certain cash, receivables, production equipment, office equipment, machines, tools, fixtures, furniture and certain retained liabilities. In connection with the Asset Sale, the Company and Sensitech entered into a Manufacturing Services Agreement under which the Company continued to manufacture the Company's products on behalf of Sensitech for a period from April 16, 2004 through July 2, 2004. The parties completed the Asset Sale following a special meeting of the Company's shareholders on April 15, 2004, whereby the holders of a majority of the Company's common stock approved the Asset Sale and the subsequent liquidation and dissolution of the Company pursuant to the Plan of Complete Liquidation and Dissolution (the "Plan"). On January 29, 2004 the Company entered into an Asset Purchase Agreement with Rask Holding ApS, to sell its Vitsab division for $175,000 plus assumed liabilities. The transaction was consummated on the same date. Rask Holding acquired all of the assets associated with the Vitsab division except cash and accounts receivable, and assumed all liabilities associated with the Vitsab division except liabilities associated with a raw material purchase from a specific vendor and for taxes resulting from operations of the Vitsab division prior to January 29, 2004. The Vitsab operations have been reflected as discontinued operations in the accompanying consolidated statements of income and cash flows for the three and nine months ended January 31, 2004. Liquidation Basis of Accounting Pursuant to the Plan of dissolution approved by shareholders on April 15, 2004, we filed Articles of Dissolution with the North Carolina Secretary of State on January 3, 2005. Since April 15, 2004, the Company has been engaged in contract manufacturing for Sensitech (which services ended on July 2, 2004), selling and converting its non-cash assets, discharging its liabilities and otherwise winding-up the business and affairs in preparation for liquidation. Under the liquidation basis of accounting, assets are stated at their estimated net realizable value and liabilities are stated at their anticipated settlement amounts. Distributions ultimately made to shareholders upon liquidation will differ from the "net assets in liquidation" recorded in the accompanying Statement of Net Assets in Liquidation as a result of future changes in estimated investment income, settlement of liabilities and obligations and final costs of liquidation. Our remaining assets consist of cash. 7 Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Examples of such estimates include, but are not limited to, the accounting for contingencies and estimated costs of liquidation, which represents the estimate of costs to be incurred during dissolution. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments purchased with an original or remaining maturity of less than three months at the date of purchase. Our cash and cash equivalents at January 31, 2005 consisted of deposits and money market funds maintained with major financial institutions. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk are comprised principally of cash and cash equivalents. We invest excess cash through banks, primarily in highly liquid securities, and have investment policies and procedures that are reviewed periodically to minimize credit risk. Note 2. LIABILITIES Liabilities, including the portion of the shareholder distribution declared and unpaid and estimated costs of liquidation, consist of the following: January 31, 2005 April 30, 2004 ---------------- -------------- (Unaudited) Accounts payable and accrued liabilities $ 45,637 $ 707,444 Distribution declared and unpaid 982,290 -- Estimated costs of liquidation: Employee compensation and benefits 81,637 130,000 Legal, audit and tax services 34,000 125,000 Insurance -- 212,000 In-the-money stock options 147,088 152,400 Other estimated costs of liquidation 221,000 10,731 ---------- ---------- 483,725 630,131 ---------- ---------- Total liabilities $1,511,652 $1,337,575 ========== ========== On January 3, 2005 the Company filed Articles of Dissolution with the office of the North Carolina Secretary of State. The effective date of the dissolution was fixed as January 16, 2005 (the "effective date"). The Board of Directors of the Company also approved (i) a distribution of $.14 per share to holders of the Company's common stock at the close of trading on the effective date (the "initial distribution"), and (ii) the closing of the Company's transfer books as of the close of trading on the effective date. On January 24, 2005, the Company initiated the mailing of transmittal materials to holders of record on the effective date. As of January 31, 2005, the Company has disbursed $4,361,101, of the initial $5,343.391 distribution approved, to shareholders who have accurately completed and returned the transmittal materials. The balance of $982,290 represents the difference between the declared total initial distribution and amount disbursed through January 31, 2005. It is anticipated that a second and final distribution to shareholders of approximately $.02 to $.03 will be made on or before April 30, 2005. 8 Note 3. CONTINGENCIES From time to time, we have been subject to pending or threatened litigation. Also, from time to time we have been advised that certain parties may exert claims related to our previous business activities and current dissolution efforts. We are unaware of any other claims that are likely to be made. However, no assurance can be made with respect to claims that may be made and the results of legal proceedings cannot be predicted with certainty. Future litigation could be costly, could cause the diversion of management's attention and could upon resolution, have a material adverse affect on the net assets available for distribution. The Company filed for an arbitration hearing in the third quarter ended January 31, 2005 involving a potential claim from a third party. The potential claim involved previous business activities of the Company. The Company reached a settlement with the potential claimant that avoided prolonged legal activity and fees and did not significantly reduce the assets available to distribution to shareholders. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS of FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS Upon the sale of substantially all of the assets of the Company on April 16, 2004, we ceased normal operations and began the orderly liquidation of the Company. Under the terms of the Asset Sale, we also provided contract manufacturing services to Sensitech from April 16, 2004 through July 2, 2004. We cannot list here all of the risks and uncertainties that could cause our actual future financial results to differ materially from our present expectations or projections regarding estimated distribution to shareholders but we can identify many of them. For example, our future results could be affected by the cost of satisfying known liabilities for which we have estimated the value, the need to satisfy unanticipated liabilities arising in the future and the expenses of dissolving and winding up the Company. The following discussion and analysis should be read in conjunction with our unaudited financial statements and notes thereto. Critical Accounting Policies and Estimates The presentation of our historical and liquidation based financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amount of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates and judgments, including those related to accrued costs of liquidation and commitments and contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our historical and liquidation based financial statements: Contingent Liabilities From time to time, we have been subject to pending or threatened litigation. Also, from time to time we have been advised that certain parties may exert claims related to our previous business activities and current dissolution efforts. We are unaware of any other claims that are likely to be made. However, no assurance can be made with respect to claims that may be made and the results of legal proceedings cannot be predicted with certainty. Future litigation could be costly, could cause the diversion of management's attention and could upon resolution, have a material adverse affect on the net assets available for distribution. 9 Estimated Costs of Liquidation and Effects of Change to Liquidation Basis Pursuant to the plan of dissolution, which was approved by stockholders on April 15, 2004, our operations (other than the contract manufacturing under the Manufacturing Services Agreement with Sensitech, which services ended on July 2, 2004) have been limited to winding-up our business and affairs, selling our remaining assets and discharging our known liabilities. We plan to distribute any remaining assets to our stockholders in accordance with the plan of dissolution. As a result, we changed our basis of accounting to the liquidation basis as of April 16, 2004. Under the liquidation basis of accounting, assets and liabilities are reflected at the estimated amounts to be paid or received; however actual costs could differ from those estimates. Distributions ultimately made to stockholders upon liquidation will differ from the "net assets in liquidation" recorded in the accompanying Statement of Net Assets in Liquidation as a result of future operations, the sale proceeds ultimately received by us and adjustments, if any, to estimated costs of liquidation. The accompanying historical statements of operations for the three and nine months ended and cash flows for nine months ended January 31, 2004 have been presented on a going concern basis comparable to prior periods, which assumes the realization of assets and the liquidation of liabilities in the normal course of business. It is our intention to settle our outstanding obligations and convert our remaining assets to cash as expeditiously as possible. Final dissolution and related distributions to stockholders will occur upon obtaining final resolution on all liquidation issues. For details of the estimated costs of liquidation at January 31, 2005, please refer to Note 2 to the unaudited financial statements of the Company on page 8. Comparison of our Changes in Net Assets in Liquidation for the Three and Nine Months Ended January 31, 2005 compared to our Results of Operations for the Three and Nine Months Ended January 31, 2004 This comparison should be read in conjunction with the accompanying financial statements and notes. On April 16, 2004, we completed the sale of substantially all of our operating assets to Sensitech Inc. and ceased preparing our financial statements on a going concern basis under U.S. generally accepted accounting principles. Accordingly, changes in net assets in liquidation for the three and nine months ended January 31, 2005 are not comparable to the results of operations for the three and nine months ended January 31, 2004. Effective April 16, 2004, we adopted the liquidation basis of accounting which is described in detail in Note 1 to the accompanying financial statements. In the current fiscal year we had no operations. Therefore, there is no discussion of operations in this comparison. Net assets in liquidation decreased by $5,060,292 for the quarter ended January 31, 2005. The decrease was due to an approved distribution to shareholders of $5,343,391 offset somewhat by a decrease in estimated costs of liquidation of $245,202. We reduced our estimate of costs of liquidation to reflect our current understanding of the future costs and expenses expected to be incurred. The decrease in net assets was partially offset by interest income. Liquidity and Capital Resources As of January 31, 2005, our net assets in liquidation were $1,062,789, consisting of cash and cash equivalents of $2,574,441. Our cash is being used to pay our outstanding liabilities and obligations. We recorded $37,897 and $89,638 of interest income for the three and nine months ended January 31, 2005, respectively. Any cash not used to satisfy liabilities and expenses will be distributed to stockholders. Outstanding Liabilities At January 31, 2005, we had $1,511,652 of outstanding liabilities consisting of $45,637 in accounts payable and accrued liabilities, $982,290 of shareholder distributions declared and unpaid and $483,725 of estimated costs of liquidation. Estimated costs of liquidation include both known and estimated future expenses, including costs and expenses to defend against potential claims associated with former business activities, professional fees for legal and accounting services, insurance premium expense, salaries and benefits expenses, utilities and office supplies. Actual costs and expenses could differ from those estimates. The Company filed for an arbitration hearing in the third quarter ended January 31, 2005 involving a potential claim from a third party. The potential claim involved previous business activities of the Company. The Company reached a settlement with the potential claimant that avoided prolonged legal activity and fees and did not significantly reduce the assets available to distribution to shareholders. 10 Distribution of Assets to Shareholders On January 3, 2005 the Company filed Articles of Dissolution with the office of the North Carolina Secretary of State. The effective date of the dissolution was fixed as January 16, 2005 (the "effective date"). The Board of Directors of the Company also approved (i) a distribution of $.14 per share to holders of the Company's common stock at the close of trading on the effective date (the "initial distribution"), and (ii) the closing of the Company's transfer books as of the close of trading on the effective date. On January 24, 2005, the Company initiated the mailing of transmittal materials to holders of record on the effective date. As of January 31, 2005, the Company has disbursed $4,361,101, of the initial distribution approved, to shareholders who have accurately completed and returned the transmittal materials. It is anticipated that a second and final distribution to shareholders of approximately $.02 to $.03 will be made on or before April 30, 2005. Forward-Looking Statements Statements contained in this document, which are not historical in nature, are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Specifically, statements concerning distributions to shareholders are forward looking statements within the meaning of the Safe Harbor. These statements are based on management's current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ materially from those described herein include, without limitation the following: the precise nature, amount and timing of any distributions to shareholders will depend on and could be delayed by, among other things, claim settlements with creditors or other third parties, and unexpected or greater than expected expenses; our shareholders could be liable to our creditors up to the amount of any liquidating distributions received in the event we fail to create an adequate contingency reserve to satisfy all creditors' claims against us. In addition to the other factors mentioned in this document, we urge you to consider the risk factors and other information contained in our Proxy Statement dated March 15, 2004. Cox Technologies undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISKS The Company has identified certain areas that potentially subject it to significant concentrations of credit risk. These areas for potential risk include cash and cash equivalents. Cash balances at financial institutions are in excess of FDIC insurance coverage. The cash balances are maintained at financial institutions with high credit - quality ratings and the Company believes no significant risk of loss exists with respect to those balances. The Company believes that amounts reported for cash and cash equivalents are considered to be reasonable approximations of their fair values due to their short-term nature. Item 4. CONTROLS AND PROCEDURES Since the Asset Sale on April 16, 2004, we have been in the process of winding down our operations and liquidating the Company, including significantly reducing our workforce. As of March 11, 2005, the Company has four employees. As a result of the decrease in workforce, the Company has limitations on its ability to provide adequate segregation of duties and employ other common internal control practices. While the activities of the Company are being closely monitored by the Board of Directors, our inability to provide adequate segregation of duties and other mitigating controls may be considered a material weakness in internal controls over financial reporting. PART II. OTHER INFORMATION AND SIGNATURE Item 1. Legal Proceedings We are not currently engaged in any legal and administrative proceedings incidental to our previous business activities and current dissolution efforts. 11 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds No securities of the Registrant were issued during the three months ended January 31, 2005 Item 6. Exhibits 31.1 - Certification by Co-Chief Executive Officer 31.2 - Certification by Co-Chief Executive Officer 31.3 - Certification by Chief Financial Officer 32.1 - Certificate of Co-Chief Executive Officers 32.2 - Certificate of Chief Financial Officer 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. COX TECHNOLOGIES, INC. (Registrant) Date: 03-11-05 /s/ Brian D. Fletcher -------- ----------------------- Brian D Fletcher Co-Chief Executive Officer Date: 03-11-05 /s/ Kurt C. Reid -------- ----------------------- Kurt C. Reid Co-Chief Executive Officer Date: 03-11-05 /s/ John R. Stewart -------- ----------------------- John R. Stewart Chief Financial Officer 12