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 QUARTER ENDED MARCH 31, 1998
OR
- ----- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 0-11757
J.B. HUNT TRANSPORT SERVICES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
ARKANSAS 71-0335111
(STATE OR OTHER JURISDICTION (I.R.S. EMPLOYER
OF INCORPORATION OR IDENTIFICATION NO.)
ORGANIZATION)
615 J.B. HUNT CORPORATE DRIVE, LOWELL, ARKANSAS 72745
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES, AND ZIP CODE)
(501) 820-0000
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
INDICATE 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 THE
FILING REQUIREMENTS FOR AT LEAST THE PAST 90 DAYS.
YES X NO
----- ------
THE NUMBER OF SHARES OF THE COMPANY'S $.01 PAR VALUE COMMON STOCK
OUTSTANDING ON MARCH 31, 1998 WAS 35,495,460.
PART 1
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The interim consolidated financial statements contained herein reflect
all adjustments which, in the opinion of management, are necessary for a fair
statement of financial condition, results of operations and cash flows for
the periods presented. They have been prepared in accordance with Rule 10-01
of Regulation S-X and do not include all the information and footnotes
required by generally accepted accounting principles for complete financial
statements. Operating results for the three month period ended March 31, 1998
are not necessarily indicative of the results that may be expected for the
entire year ending December 31, 1998.
The interim consolidated financial statements have been reviewed by KPMG
Peat Marwick LLP, independent public accountants.
These interim consolidated financial statements should be read in
conjunction with the Company's latest annual report and Form 10-K for the
year ended December 31, 1997.
INDEX
-----
Consolidated Statements of Earnings for the Three
Months Ended March 31, 1998 and 1997.............................. Page 3
Consolidated Balance Sheets as of
March 31, 1998 and December 31, 1997.............................. Page 4
Consolidated Statements of Cash Flows for the
Three Months Ended March 31, 1998 and 1997........................ Page 5
Notes to Consolidated Financial Statements
as of March 31, 1998.............................................. Page 6
Review Report of KPMG Peat Marwick LLP.............................. Page 8
ITEM 2.
Management's Discussion and Analysis of Results of Operations
and Financial Condition........................................... Page 9
ITEM 3.
Quantitive and Qualitative Disclosures About Market Risk...... Non Applicable
2
J.B. HUNT TRANSPORT SERVICES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share data)
(unaudited)
THREE MONTHS ENDED
MARCH 31
- ----------------------------------------------------------------------------
1998 1997
- ----------------------------------------------------------------------------
Operating revenues $ 413,466 $ 365,401
Operating expenses
Salaries, wages and employee benefits 145,988 121,444
Purchased transportation 137,307 116,780
Fuel and fuel taxes 33,416 38,057
Depreciation 32,430 33,250
Operating supplies and expenses 21,347 22,146
Insurance and claims 7,972 10,193
Operating taxes and licenses 5,376 6,078
General and administrative expenses 3,700 5,962
Communication and utilities 4,272 4,171
- ----------------------------------------------------------------------------
Total operating expenses 391,808 358,081
- ----------------------------------------------------------------------------
Operating income 21,658 7,320
Interest expense 6,606 6,404
- ----------------------------------------------------------------------------
Earnings before income taxes 15,052 916
Income taxes 5,569 348
- ----------------------------------------------------------------------------
Net earnings $ 9,483 $ 568
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Average common shares outstanding 35,613 36,750
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Basic earnings per share $ 0.27 $ 0.02
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Average diluted shares outstanding 36,648 36,762
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Diluted earnings per share $ 0.26 $ 0.02
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
3
J.B. HUNT TRANSPORT SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
- -------------------------------------------------------------------------------
MARCH 31, 1998 DECEMBER 31, 1997
- -------------------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 9,363 $ 3,701
Accounts receivable 176,038 169,198
Prepaid expenses 20,475 24,716
Deferred income taxes 2,337 2,337
- -------------------------------------------------------------------------------
Total current assets 208,213 199,952
- -------------------------------------------------------------------------------
Property and equipment 1,262,761 1,217,478
Less accumulated depreciation 420,557 420,671
- -------------------------------------------------------------------------------
Net property and equipment 842,204 796,807
- -------------------------------------------------------------------------------
Other assets 21,953 25,160
- -------------------------------------------------------------------------------
$ 1,072,370 $ 1,021,919
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 88,650 $ 17,500
Trade accounts payable 119,130 138,509
Claims accruals 12,536 22,306
Accrued payroll 26,067 16,096
Other accrued expenses 9,283 10,677
- -------------------------------------------------------------------------------
Total current liabilities 255,666 205,088
- -------------------------------------------------------------------------------
Long-term debt 317,315 322,790
Claims accruals 15,168 15,168
Deferred income taxes 143,005 140,909
Stockholders' equity 341,216 337,964
- -------------------------------------------------------------------------------
$ 1,072,370 $ 1,021,919
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
4
J.B. HUNT TRANSPORT SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
- -----------------------------------------------------------------------------------------------
THREE MONTHS ENDED
MARCH 31
- -----------------------------------------------------------------------------------------------
1998 1997
- -----------------------------------------------------------------------------------------------
Cash flows from operating activities:
Net earnings $ 9,483 $ 568
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 32,430 33,250
Deferred income taxes 2,096 199
Termination of restricted stock (15) 0
Tax benefit (expense) of stock options exercised 60 (27)
Changes in assets and liabilities:
Accounts receivable (6,840) (11,061)
Prepaid expenses 4,241 11,637
Trade accounts payable (19,379) (13,410)
Claims accruals (9,770) (2,592)
Accrued payroll and other accrued expenses 8,577 (3,539)
- -----------------------------------------------------------------------------------------------
Net cash provided by operating activities 20,883 15,025
- -----------------------------------------------------------------------------------------------
Cash flows from investing activities:
Additions to property and equipment (93,307) (32,687)
Proceeds from sale of equipment 15,480 26,390
Decrease in other assets 3,207 3,809
- -----------------------------------------------------------------------------------------------
Net cash used in investing activities (74,620) (2,488)
- -----------------------------------------------------------------------------------------------
Cash flows from financing activities:
Repayment of long-term debt (5,000) (5,000)
Net borrowings under commercial paper program 70,675 13,096
Proceeds from sale of treasury stock 629 34
Repurchase of treasury stock (5,139) (10,479)
Dividends paid (1,766) (1,860)
- -----------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 59,399 (4,209)
- -----------------------------------------------------------------------------------------------
Net increase in cash and cash equivalents 5,662 8,328
- -----------------------------------------------------------------------------------------------
Cash and cash equivalents at beginning of period 3,701 3,786
- -----------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 9,363 $ 12,114
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ 6,597 $ 6,551
Income Taxes 1,474 196
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
See accompanying notes to consolidated financial statements.
5
J.B. HUNT TRANSPORT SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) LONG-TERM DEBT
Long-term debt consists of (in thousands):
3/31/98 12/31/97
-------- --------
Commercial paper $203,650 $132,500
Senior notes payable, interest at 6.25%
payable semiannually, due 9/1/03 98,260 98,260
Senior notes payable, interest at 7.84%
payable semiannually 5,000 10,000
Senior subordinated notes, interest at 7.80%
payable semiannually 50,000 50,000
Senior notes payable, interest at 6.25%
payable semiannually, due 11/17/00 25,000 25,000
Senior notes payable, interest at 6.00%
payable semiannually, due 12/12/00 25,000 25,000
-------- --------
406,910 340,760
Less current maturities (88,650) (17,500)
Unamortized discount (945) (470)
-------- --------
$317,315 $322,790
-------- --------
-------- --------
The Company is authorized to issue up to $240 million in notes under its
commercial paper note program. These notes are supported by two credit
agreements with a group of banks. One agreement for $120 million expires
March 12, 1999 and $120 million expires March 20, 2002.
The 6.25% senior notes were issued on September 1, 1993 and are due on
September 1, 2003.
The 7.84% senior notes were issued on March 31, 1992 and are payable in
five equal annual installments on March 31.
The 7.80% senior subordinated notes were issued on October 30, 1992 and
are payable in five equal annual installments beginning October 30, 2000.
The 6.25% senior notes were issued on November 17, 1995 and are payable
at maturity on November 17, 2000.
The 6.00% senior notes were issued on December 12, 1995 and are payable
at maturity on December 12, 2000.
(2) CAPITAL STOCK
The Company maintains a Management Incentive Plan that provides various
vehicles to compensate key employees with Company common stock. A summary of
the restricted and non-statutory options to purchase Company common stock
follows:
6
Weighted average Number of
Number of exercise price shares
shares per share exercisable
------ --------- -----------
Outstanding at December 31, 1997 3,039,925 $16.70 274,225
-------
-------
Granted 10,000 17.50
Exercised (25,950) 16.47
Terminated (87,500) 17.62
--------- ------
Outstanding at March 31, 1998 2,936,475 $16.65 294,025
--------- ------ -------
--------- ------ -------
On April 16, 1998, the Company's Board of Directors declared a regular
quarterly cash dividend of $.05 per share payable on May 19, 1998 to
stockholders of record on May 1, 1998.
(3) NEW ACCOUNTING PRONOUNCEMENTS
The Company adopted Financial Accounting Standards Board Statement No.
128, Earnings Per Share (SFAS 128), as of December 31, 1997. Accordingly,
earnings per share amounts for the first quarter of 1998 and 1997 have been
computed based on the following:
Three Months Ended March 31
(in thousands,
except per share data)
---------------------------
1998 1997
------- -------
Numerator (net earnings) $ 9,483 $ 568
Denominator - Basic earnings per share
Weighted average shares outstanding 35,613 36,750
------- -------
------- -------
Basic earnings per share $ .27 $ .02
------- -------
------- -------
Denominator - Diluted earnings per share
Weighted average share outstanding 35,613 36,750
Effect of common stock options 1,035 12
------- -------
Weighted average shares assuming dilution 36,648 36,762
------- -------
Diluted earnings per share $ .26 $ .02
------- -------
------- -------
Options to purchase shares of common stock during the first quarter of
1998 and 1997, but were not included in the computation of diluted earnings
per share because the options price was greater than the average market price
of the common shares, are shown below.
1998 1997
---- ----
Number of shares under option 3,100 4,979,000
Range of exercise price $24.63 $14.33 - $24.63
The Company adopted Financial Accounting Standards Board Statement No.
130, Reporting Comprehensive Income (SFAS 130), as of January 1, 1998. SFAS
130 establishes standards for reporting and displaying comprehensive income
and its components in a financial statement that is displayed with the same
prominence as other financial statements. SFAS No. 130 also requires the
accumulated balance of other comprehensive income to be displayed separately
in the equity section of the consolidated balance sheet. The accumulated
balance of other comprehensive income of each of March 31, 1998 and December
31, 1997 was $5.6 million. The adoption of this Statement had no material
impact on net earnings or stockholders' equity. Comprehensive income was
equal to net earnings during the first quarter of 1998 and 1997.
(4) RECLASSIFICATIONS
Certain amounts for 1997 have been reclassified to conform to the 1998
classifications.
7
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
--------------------------------------
The Board of Directors
J.B. Hunt Transport Services, Inc.:
We have reviewed the accompanying condensed consolidated balance sheet of
J.B. Hunt Transport Services, Inc. and subsidiaries as of March 31, 1998, and
the related condensed consolidated statements of earnings and cash flows for
the three-month periods ended March 31, 1998 and 1997. These condensed
consolidated financial statements are the responsibility of the Company's
management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit in
accordance with generally accepted auditing standards, the objective of which
is the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the condensed consolidated financial statements referred to
above for them to be in conformity with generally accepted accounting
principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of J.B. Hunt Transport Services,
Inc. and subsidiaries as of December 31, 1997, and the related consolidated
statements of operations, stockholders' equity, and cash flows for the year
then ended (not presented herein); and in our report dated January 30, 1998,
we expressed an unqualified opinion on those consolidated financial
statements. In our opinion, the information set forth in the accompanying
condensed consolidated balance sheet as of December 31, 1997, is fairly
presented, in all material respects, in relation to the consolidated balance
sheet from which it has been derived.
/s/ KPMG Peat Marwick LLP
-------------------------
Little Rock, Arkansas
April 14, 1998
8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS AND FINANCIAL CONDITION
The following discussion should be read in conjunction with the attached
interim consolidated financial statements and notes thereto, and with the
Company's audited consolidated financial statements and notes thereto for the
calendar year ended December 31, 1997.
RESULTS OF OPERATIONS
COMPARISON OF FIRST QUARTER 1998 TO FIRST QUARTER 1997
The following table sets forth items in the Consolidated Statements of
Earnings as a percentage of operating revenues and the percentage increase or
decrease of those items as compared with the prior period.
Three Months Ended March 31
Percentage
Percentage of Change
Operating Revenues Between Quarters
--------------------- ----------------
1998 1997 1998 vs. 1997
------ ------ -------------
Operating revenues 100.0% 100.0% 13.2%
Operating expenses
Salaries, wages and employee benefits 35.3% 33.2% 20.2%
Purchased transportation 33.2% 32.0% 17.6%
Fuel and fuel taxes 8.1% 10.4% (12.2%)
Depreciation 7.9% 9.1% (2.5%)
Operating supplies and expenses 5.2% 6.1% (3.6%)
Insurance and claims 1.9% 2.8% (21.8%)
Operating taxes and licenses 1.3% 1.7% (11.5%)
General and administrative expenses .9% 1.6% (37.9%)
Communication and utilities 1.0% 1.1% 2.4%
--------------------- -------------
Total operating expenses 94.8% 98.0% 9.4%
--------------------- -------------
Operating income 5.2% 2.0% 195.9%
Interest expense 1.6% 1.7% 3.2%
--------------------- -------------
Earnings before income taxes 3.6% .3% 1,543.2%
Income taxes 1.3% .1% 1,500.3%
--------------------- -------------
Net earnings 2.3% .2% 1,569.5%
--------------------- -------------
--------------------- -------------
Operating revenues for the first quarter of 1998 increased 13%, to $413.5
million from $365.4 million in the first quarter of 1997. This increase in
revenue was primarily a result of an 18% increase in the van tractor fleet,
offset by a 5% impact of flatbed business, which was included in the 1997
revenue. The flatbed business was sold in July of 1997. Dry-van truck
revenue per mile (rates), excluding fuel surcharges, increased approximately
3% during the current quarter, while intermodal revenue per mile decreased
about 3%. Intermodal revenue, which is included in the core dry-van business
increased 7%.
Total operating expenses for the first quarter of 1998 increased 9% over
the comparable period of 1997. Total operating expenses expressed as a
percentage of operating revenues (operating ratio) were 94.8% for the first
quarter of 1998 compared
9
with 98.0% in 1997. A number of significant changes in operating expenses
during the current quarter were related to an approximate 33% pay increase
for certain over-the-road drivers which was effective on February 28, 1997.
This pay increase was the primary reason for the increase in salaries, wages
and employee benefits. The increase in purchased transportation expense was
consistent with trends in recent periods and reflects payments to railroads
and third-party providers of truck line-haul transportation services. The
purchase of transportation services from unrelated motor carriers is a
fundamental aspect of the growing logistics business. Fuel and fuel tax
expense declined, primarily due to a 15% decrease in fuel cost per gallon
during the first quarter of 1998. This decrease of fuel expense was partly
offset by lower fuel surcharge revenue. The decline of depreciation expense
was partly due to gains recognized during the current quarter on the
disposition of revenue equipment. Gains on asset dispositions reduce
depreciation expense and totaled $.7 million during the first quarter of 1998
compared with $.2 million in 1997.
The nearly 22% decrease in insurance and claims expense was a result of
fewer vehicle collisions during the first quarter of 1998. The new driver
compensation package has been successful in attracting and retaining
experienced, professional drivers. As anticipated, the higher average years
of driving experience has resulted in lower levels of vehicle damage and
collisions. The decrease of operating taxes and license expense was partly a
result of a favorable tax case ruling which was received during the current
quarter. The lower level of general and administrative expenses was due
primarily to reduced driver advertising expense, and earnings recognized from
the Company's operations in Mexico, which are recorded as an offset to
general and administrative expenses. The Company's effective income tax rate
was 37% for the first quarter of 1998 and 38% for the comparable period of
1997.
As a result of the above, net earnings for the first quarter of 1998
increased to $9.5 million, or basic earnings per share of 27 cents, compared
with $.6 million, or 2 cents per share in 1997. Diluted earnings per share
were 26 cents in 1998 and 2 cents in 1997. The decrease in the number of
shares outstanding was primarily due to the Company's acquisition of treasury
shares.
LIQUIDITY AND CAPITAL RESOURCES
This discussion of corporate liquidity and capital resources should be
read in conjunction with information presented in the Consolidated Statements
of Cash Flows and the Consolidated Balance Sheets.
Net cash provided by operating activities was $20.9 million for the first
quarter of 1998, compared with $15.0 million in 1997. Net cash was generated
during the current quarter primarily from net earnings and depreciation and
used primarily for trade accounts payable, claims payments and an increase in
accounts receivable. Net cash used in investing activities was $74.6 million
in 1998 and $2.5 million in 1997. The primary use of cash in investing
activities was to purchase revenue equipment. These purchases of revenue
equipment were funded by cash provided by operating activities and a $65.7
million increase in debt. The Company also used cash to purchase $5.1
million of treasury stock during the first quarter of 1998.
10
SELECTED BALANCE SHEET DATA
As of
---------------------------------------------------
March 31, 1998 December 31, 1997 March 31, 1997
-------------- ----------------- --------------
Working capital ratio .81 .97 1.08
Current maturities of long-
term debt (millions) $88.7 $17.5 $68.0
Total debt (millions) $ 406 $ 340 $ 390
Total debt to equity 1.19 1.01 1.13
Total debt as a percentage
of total capital .54 .50 .53
The Company's debt levels were reduced during the fourth quarter of 1997,
primarily due to reduced capital expenditures for revenue equipment. Debt
levels increased during the first quarter of 1998 primarily due to increased
spending for fleet expansion and to reduce the average age of the tractor
fleet. The Company generates significant cash from operating activities and
has borrowing capacity to meet its committed and contemplated cash
requirements.
YEAR 2000
The Company developed a plan during 1996 to deal with the Year 2000
problem. The Year 2000 problem is the result of computer programs being
written using two digits rather than four to define the applicable year. The
Company's plan provides for the conversion efforts to be completed by the end
of 1998. The total cost of the project is estimated to be $820,000 and is
being funded through operating cash flows. The Company is expensing all
costs associated with these systems changes as the costs are incurred.
FORWARD-LOOKING STATEMENTS
This report may contain statements that may be considered as
forward-looking or predictions concerning future operations. Such statements
are based on management's belief or interpretation of information currently
available. These statements and assumptions involve certain risks and
uncertainties and management can give no assurance that such expectations
will be realized. Among all the factors and events that are not within the
Company's control and could have a material impact on future operating
results are general economic conditions, cost and availability of diesel
fuel, adverse weather conditions and competitive rate fluctuations. In
addition, the ultimate net cost of the new driver compensation package will
be dependent on the mix of experienced drivers attracted to the Company and
on future accident, cargo and worker's compensation claims, as well as other
factors.
11
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None applicable.
ITEM 2. CHANGES IN SECURITIES
None applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The annual meeting of stockholders of J.B. Hunt Transport Services,
Inc. was held on April 16, 1998. Proxies for the meeting were solicited
pursuant to Regulation 14A of the Securities Exchange Act of 1934. At the
meeting, stockholders voted on the following resolutions with the vote
tabulations so indicated:
Votes
----------------------------------------
For Against Abstained
----------------------------------------
1. To elect nine directors of the
Company; three for a one-year
term; three for a two-year term;
and three for a three-year term. 31,294,904 0 1,460,870
2. To approve the Amended
Management Incentive Plan 26,751,917 5,978,370 25,487
3. To ratify the appointment of
KPMG Peat Marwick LLP as
the Company's independent public
accountants for the next fiscal year. 32,741,432 3,980 10,362
4. To transact such other business
as may properly come before the
meeting or any adjournments
thereof. 28,273,412 3,570,700 911,662
There was no solicitation in opposition to management's nominees for
Directors as listed in the proxy statement and each nominee was elected by
greater than ninety-two percent of the shares entitled to vote. No
additional business or other matters came before the meeting or any
adjournment thereof.
ITEM 5. OTHER INFORMATION
None applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule
27.2 1997 Restated Financial Data Schedule
12
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.
J.B. HUNT TRANSPORT SERVICES, INC.
DATE: May 12, 1998 BY: /s/ Kirk Thompson
----------------- --------------------------------
Kirk Thompson
President and
Chief Executive Officer
DATE: May 12, 1998 BY: /s/ Jerry W. Walton
----------------- --------------------------------
Jerry W. Walton
Executive Vice President, Finance
and Chief Financial Officer
13