Michigan
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0-22684
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38-1465835
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(State or other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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2801 East Beltline, NE
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49525
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Grand Rapids, Michigan
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(Address of Principal Executive Offices)
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(Zip Code)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).
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Item 2.02
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Results of Operations and Financial Condition
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Item 9.01
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Financial Statements, Pro Forma Financial Information, and Exhibits
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UNIVERSAL FOREST PRODUCTS, INC.
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(Registrant)
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Dated: April 13, 2011
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By:
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/s/ Michael R. Cole
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Michael R. Cole, Chief Financial Officer and Treasurer
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Exhibit Number
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Document
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Press Release dated April 13, 2011.
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§
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A dramatic run in lumber prices in early 2010, which boosted margins in the first quarter of last year. Conversely, lumber prices have been stable and flat thus far in 2011.
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§
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Major winter storms in January and February that crippled production in many parts of the country. Thirty-five Universal operations lost 219 production days to weather during the quarter, including 10 that were closed for at least 10 days.
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§
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A decline in sales to site-built and manufactured housing customers in 2011. Sales in 2010 were stronger primarily due to federal incentives that served to boost home buying in the first quarter of last year.
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§
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A decline in sales to DIY/retail customers in 2011. In 2010, certain customers built inventories early in the year. Customers have not stocked stores in the same manner this year, resulting in a decline in 2011 first-quarter sales. However, the Company is cautiously optimistic that consumer demand will be favorable in 2011, which would result in improved sales in future quarters.
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Quarter Period
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Year to Date
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|||||||||||||||||||||||||||||||
(In thousands, except per share data)
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2011
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2010
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2011
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2010
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||||||||||||||||||||||||||||
NET SALES
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$ | 387,233 | 100 | % | $ | 392,958 | 100 | % | $ | 387,233 | 100 | % | $ | 392,958 | 100 | % | ||||||||||||||||
COST OF GOODS SOLD
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345,819 | 89.3 | 341,324 | 86.9 | 345,819 | 89.3 | 341,324 | 86.9 | ||||||||||||||||||||||||
GROSS PROFIT
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41,414 | 10.7 | 51,634 | 13.1 | 41,414 | 10.7 | 51,634 | 13.1 | ||||||||||||||||||||||||
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
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46,488 | 12.0 | 48,489 | 12.3 | 46,488 | 12.0 | 48,489 | 12.3 | ||||||||||||||||||||||||
NET LOSS ON DISPOSITION OF ASSETS AND OTHER IMPAIRMENT AND EXIT CHARGES
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7 | - | 172 | - | 7 | - | 172 | - | ||||||||||||||||||||||||
EARNINGS (LOSS) FROM OPERATIONS
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(5,081 | ) | (1.3 | ) | 2,973 | 0.8 | (5,081 | ) | (1.3 | ) | 2,973 | 0.8 | ||||||||||||||||||||
INTEREST, NET
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635 | 0.2 | 766 | 0.2 | 635 | 0.2 | 766 | 0.2 | ||||||||||||||||||||||||
EARNINGS (LOSS) BEFORE INCOME TAXES
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(5,716 | ) | (1.5 | ) | 2,207 | 0.6 | (5,716 | ) | (1.5 | ) | 2,207 | 0.6 | ||||||||||||||||||||
INCOME TAXES (BENEFIT)
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(2,287 | ) | (0.6 | ) | 487 | 0.1 | (2,287 | ) | (0.6 | ) | 487 | 0.1 | ||||||||||||||||||||
NET EARNINGS (LOSS)
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(3,429 | ) | (0.9 | ) | 1,720 | 0.4 | (3,429 | ) | (0.9 | ) | 1,720 | 0.4 | ||||||||||||||||||||
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST
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(241 | ) | (0.1 | ) | (733 | ) | (0.2 | ) | (241 | ) | (0.1 | ) | (733 | ) | (0.2 | ) | ||||||||||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST
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$ | (3,670 | ) | (0.9 | ) | $ | 987 | 0.3 | $ | (3,670 | ) | (0.9 | ) | $ | 987 | 0.3 | ||||||||||||||||
EARNINGS (LOSS) PER SHARE - BASIC
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$ | (0.19 | ) | $ | 0.05 | $ | (0.19 | ) | $ | 0.05 | ||||||||||||||||||||||
EARNINGS (LOSS) PER SHARE - DILUTED
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$ | (0.19 | ) | $ | 0.05 | $ | (0.19 | ) | $ | 0.05 | ||||||||||||||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING FOR BASIC EARNINGS (LOSS)
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19,306 | 19,258 | 19,306 | 19,258 | ||||||||||||||||||||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING FOR DILUTED EARNINGS (LOSS)
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19,306 | 19,517 | 19,306 | 19,517 |
Quarter Period
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Year to Date
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|||||||||||||||||||||||||||||||
Market Classification
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2011
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%
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2010
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%
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2011
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%
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2010
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%
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||||||||||||||||||||||||
Do-It-Yourself/Retail
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$ | 150,004 | 37 | % | $ | 164,407 | 41 | % | $ | 150,004 | 37 | % | $ | 164,407 | 41 | % | ||||||||||||||||
Site-Built Construction
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53,991 | 14 | % | 60,889 | 15 | % | 53,991 | 14 | % | 60,889 | 15 | % | ||||||||||||||||||||
Industrial
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143,901 | 37 | % | 125,988 | 32 | % | 143,901 | 37 | % | 125,988 | 32 | % | ||||||||||||||||||||
Manufactured Housing
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46,325 | 12 | % | 48,362 | 12 | % | 46,325 | 12 | % | 48,362 | 12 | % | ||||||||||||||||||||
Total Gross Sales
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394,221 | 100 | % | 399,646 | 100 | % | 394,221 | 100 | % | 399,646 | 100 | % | ||||||||||||||||||||
Sales Allowances
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(6,988 | ) | (6,688 | ) | (6,988 | ) | (6,688 | ) | ||||||||||||||||||||||||
Total Net Sales
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$ | 387,233 | $ | 392,958 | $ | 387,233 | $ | 392,958 |
MARCH 2011/2010
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(In thousands)
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ASSETS
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2011
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2010
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LIABILITIES AND EQUITY
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2011
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2010
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CURRENT ASSETS
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CURRENT LIABILITIES
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Cash and cash equivalents
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$ | - | $ | - |
Accounts payable
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$ | 66,612 | $ | 82,571 | ||||||||
Accounts receivable
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182,841 | 187,625 |
Accrued liabilities
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49,427 | 62,726 | ||||||||||||
Inventories
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243,639 | 207,786 |
Current portion of long-term
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||||||||||||||
Assets held for sale
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7,528 | - |
debt and capital leases
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74,647 | 683 | ||||||||||||
Other current assets
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22,034 | 21,718 | |||||||||||||||
TOTAL CURRENT ASSETS
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456,042 | 417,129 |
TOTAL CURRENT LIABILITIES
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190,686 | 145,980 | ||||||||||||
OTHER ASSETS
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11,698 | 4,311 |
LONG-TERM DEBT AND
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INTANGIBLE ASSETS, NET
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171,534 | 171,926 |
CAPITAL LEASE OBLIGATIONS,
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||||||||||||||
PROPERTY, PLANT
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less current portion
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52,474 | 68,881 | ||||||||||||||
AND EQUIPMENT, NET
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216,802 | 227,269 |
OTHER LIABILITIES
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33,018 | 33,916 | ||||||||||||
EQUITY
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579,898 | 571,858 | |||||||||||||||
TOTAL ASSETS
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$ | 856,076 | $ | 820,635 |
TOTAL LIABILITIES AND EQUITY
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$ | 856,076 | $ | 820,635 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
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FOR THE THREE MONTHS ENDED
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MARCH 2011/2010
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(In thousands)
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2011
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2010
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||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
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Net earnings (loss) attributable to controlling interest
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$ | (3,670 | ) | $ | 987 | |||
Adjustments to reconcile net earnings (loss) attributable to controlling interest to net cash from operating activities:
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||||||||
Depreciation
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6,902 | 7,630 | ||||||
Amortization of intangibles
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1,441 | 1,825 | ||||||
Expense associated with share-based compensation arrangements
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735 | 660 | ||||||
Excess tax benefits from share-based compensation arrangements
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(121 | ) | (63 | ) | ||||
Expense associated with stock grant plans
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140 | 113 | ||||||
Deferred income tax credit
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(69 | ) | (96 | ) | ||||
Net earnings attributable to noncontrolling interest
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241 | 733 | ||||||
Net gain on sale or impairment of assets
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(142 | ) | (40 | ) | ||||
Changes in:
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Accounts receivable
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(55,869 | ) | (80,239 | ) | ||||
Inventories
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(53,007 | ) | (45,022 | ) | ||||
Accounts payable
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7,035 | 32,788 | ||||||
Accrued liabilities and other
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(13,054 | ) | 3,081 | |||||
NET CASH FROM OPERATING ACTIVITIES
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(109,438 | ) | (77,643 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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Purchase of property, plant, and equipment
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(6,309 | ) | (4,622 | ) | ||||
Acquisitions, net of cash received
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- | (634 | ) | |||||
Proceeds from sale of property, plant and equipment
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177 | 189 | ||||||
Collections of notes receivable
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243 | 15 | ||||||
Other, net
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25 | 13 | ||||||
NET CASH FROM INVESTING ACTIVITIES
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(5,864 | ) | (5,039 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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Net borrowings under revolving credit facilities
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71,817 | 15,686 | ||||||
Proceeds from issuance of common stock
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456 | 279 | ||||||
Purchase of additional noncontrolling interest
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(100 | ) | - | |||||
Distributions to noncontrolling interest
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(395 | ) | (90 | ) | ||||
Capital contribution from noncontrolling interest
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40 | - | ||||||
Repurchase of common stock
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- | (680 | ) | |||||
Excess tax benefits from share-based compensation arrangements
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121 | 63 | ||||||
Other, net
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- | 14 | ||||||
NET CASH FROM FINANCING ACTIVITIES
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71,939 | 15,272 | ||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS
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(43,363 | ) | (67,410 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
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43,363 | 67,410 | ||||||
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CASH AND CASH EQUIVALENTS, END OF PERIOD
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$ | - | $ | - | ||||
SUPPLEMENTAL INFORMATION:
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Cash paid during the period for:
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Interest
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250 | 4,905 | ||||||
Income taxes
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1,690 | 12,346 |