Delaware | 03-0366218 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
1050 Buckingham St., Watertown, CT
(Address of principal executive offices) |
06795
(Zip Code) |
Shares outstanding at | ||
Class | September 5, 2007 | |
Common Stock, $.001 Par Value | 21,620,605 |
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Table of Contents
Table of Contents
Table of Contents
1.
BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been prepared in
accordance with Form 10-Q instructions and in the opinion of management contain all
adjustments (consisting of only normal recurring accruals) necessary to present fairly the
condensed consolidated financial position, results of operations, and cash flows for the
periods presented. The results have been determined on the basis of generally accepted
accounting principles and practices of the United States of America (GAAP), applied
consistently with the Annual Report on Form 10-K of Vermont Pure Holdings, Ltd. (the
Company) for the year ended October 31, 2006.
Certain information and footnote disclosures normally included in audited consolidated
financial statements presented in accordance with GAAP have been condensed or omitted. The
accompanying condensed consolidated financial statements should be read in conjunction with
the consolidated financial statements and notes thereto included in the Companys Annual
Report on Form 10-K for the year ended October 31, 2006. The results of operations for the
interim periods are not necessarily indicative of the results to be expected for the full
year.
The financial statements herewith reflect the consolidated operations and financial
condition of Vermont Pure Holdings Ltd. and its wholly owned subsidiary Crystal Rock, LLC.
2.
RECENT PRONOUNCEMENTS
In February 2007, the Financial Accounting Standards Board (FASB) issued Statement of
Financial Accounting Standards (SFAS) No. 159, The Fair Value Option for Financial Assets
and Financial Liabilities Including an amendment of FASB Statement No. 115 (SFAS No. 159).
SFAS No. 159 permits entities to choose to measure many financial instruments and certain
other items at fair value. The objective is to improve financial reporting by providing
entities with the opportunity to mitigate volatility in reported earnings caused by
measuring related assets and liabilities differently without having to apply complex hedge
accounting provisions. This statement is expected to expand the use of fair value
measurement, which is consistent with the FASBs long-term measurement objectives for
accounting for financial instruments. The fair value option established will permit all
entities to choose to measure eligible items at fair value at specified election dates. An
entity shall record unrealized gains and losses on items for which the fair value option has
been elected through net income in the statement of operations at each subsequent reporting
date. This statement is effective as of the beginning of an entitys first fiscal year that
begins after November 15, 2007, which is fiscal year 2009 for the Company. The Company is
currently
Table of Contents
reviewing the impact, if any, that this new
accounting standard will have on their financial statements.
3.
COMPENSATION PLANS
Effective November 1, 2005, the Company adopted the provisions of SFAS No. 123R,
Share-Based Payments (revised 2004) (SFAS No. 123R). SFAS No. 123R requires companies to
measure the cost of employee services received in exchange for an award of equity
instruments based on the grant date fair value of the award. That cost will be recognized
over the period during which an employee is required to provide services in exchange for the
award, the requisite service period (usually the vesting period). Under SFAS No. 123R the
Company provides an estimate of forfeitures at the initial date of grant.
The Company has several stock-based compensation plans under which incentive and
non-qualified stock options and restricted shares are granted. In November 1993, the
Company adopted the 1993 Performance Equity Plan (the 1993 Plan). The 1993 Plan
authorized the granting of awards for up to 1,000,000 shares of common stock to key
employees, officers, directors and consultants until November 2003. Grants could take the
form of stock options (both qualified and non-qualified), restricted stock awards, deferred
stock awards, stock appreciation rights and other stock based awards. The plan prohibits
issuances of options after November 2003.
In April 1998, the Companys shareholders approved the 1998 Incentive and Non-Statutory
Stock Option Plan. In April 2003, the Companys shareholders approved an increase in the
authorized number of shares to be issued under its 1998 Incentive and Non-Statutory Stock
Option Plan from 1,500,000 to 2,000,000. This plan provides for issuances of options to
purchase the Companys common stock under the administration of the compensation committee
of the Board of Directors. The intent of the plan is to reward options to officers,
employees, directors, and other individuals providing services to the Company.
In April 2004, the Companys shareholders approved the 2004 Stock Incentive Plan (the 2004
Plan). The plan provides for issuances of awards of up to 250,000 restricted or
unrestricted shares of the Companys common stock, or incentive or non-statutory stock
options to purchase such common stock. Of the total amount of shares authorized under this
plan, 149,000 option shares are outstanding, 26,000 restricted shares have been granted, and
75,000 shares are available for grant at July 31, 2007.
The options issued under the plans generally vest in periods up to five years based on the
continuous service of the recipient and have 10 year contractual terms. Share awards
generally vest over one year. Option and share awards provide for accelerated vesting if
there is a change in control of the Company (as defined in the plan).
There was no activity related to stock options and outstanding stock option balances or
other equity based compensation during the nine months ended July 31, 2007. The Company did
not grant any equity based compensation during the nine months ended July 31, 2006.
Table of Contents
Weighted
Average
Weighted
Intrinsic
Exercise
Outstanding
Remaining
Average
Value
Price
Options
Contractual
Exercise
as of
Range
(Shares)
Life
Price
July 31, 2007
$
1.80 - $2.60
299,500
5.9
$
2.36
$
$
2.81 - $3.38
350,000
3.1
3.25
$
3.50 - $4.25
70,000
3.0
3.99
$
4.28 - $4.98
5,000
4.4
4.98
724,500
$
2.96
$
Table of Contents
4.
INTEREST RATE SWAP AGREEMENTS
The Company uses interest rate swaps to fix certain long term interest rates. The swap rates
are based on the floating 30-day LIBOR rate and are structured such that if the loan rate
for the period exceeds the fixed rate of the swap, then the bank pays the Company to lower
the effective interest rate. Conversely, if the loan rate is lower than the fixed rate, the
Company pays the bank additional interest.
On July 5, 2007 the Company entered into an interest rate hedge agreement (the July 2007
Swap) in conjunction with an amendment to its Credit Agreement with Bank of America (see
footnote 8). The swap was structured to fix the interest rate on 75% of the Term Loan, as
amended on the same date, taking into account the hedge entered into on May 3, 2005 (the
May 2005 Swap) when the Credit Agreement was originally executed. The Credit Agreement
requires that the Company fix the interest rate on not less than 75% of its term debt for
the life of the loan. The July 2007 swap fixes the interest rate at 7.73% (5.98%, plus the
applicable margin, 1.75%) for the term facility at July 31, 2007
The May 2005 Swap fixed the interest rate at 6.41% (4.66%, plus the applicable margin,
1.75%) for the term facility at July 31, 2007, and amortizes concurrently with the loan
principal to fix the interest rate with respect to 75% of the outstanding principal prior to
the July 5, 2007 amendment. In addition to the July 2007 and May 2005 Swaps, the Company had
another swap (the Original Swap), in the notional amount of $10 million and a fixed rate
of 1.74%, plus the applicable margin, that matured in June 2006. When the Original Swap
matured in June 2006 the balance of the May 2005 Swap increased to hedge 75% of the term
loan, prior to the July 5 2007 amendment, on an amortizing basis. As of July 31, 2007, the
total notional amount committed to swap agreements was $15.6 million. On that date, the
variable rate on the remaining 25% of the term debt was 7.07%. Based on the floating rate
for respective nine month period ended July 31, 2007 and 2006, the Company paid $83,000 and
$173,000 less in interest, respectively, than it would have without the swaps.
These swaps are considered cash flow hedges under SFAS No. 133 because they are intended to
hedge, and are effective as a hedge, against variable cash flows. As a result, the changes
in the fair values of the derivatives, net of tax, are recognized as comprehensive income or
loss until the hedged item is recognized in earnings.
5.
COMPREHENSIVE INCOME
The following table summarizes comprehensive income for the respective periods:
Table of Contents
Three Months Ended July 31,
Nine Months Ended July 31,
2007
2006
2007
2006
$
576,797
$
1,251,840
$
1,279,440
$
1,791,534
(8,640
)
(16,114
)
(38,597
)
26,114
$
568,157
$
1,235,726
$
1,240,843
$
1,817,648
6.
INVENTORIES
Inventories consisted of the following at:
July 31,
October 31,
2007
2006
$
1,382,773
$
1,057,580
187,480
134,706
$
1,570,253
$
1,192,286
7.
INCOME PER SHARE AND WEIGHTED AVERAGE SHARES
The Company considers outstanding in-the-money stock options as potential common stock in
its calculation of diluted earnings per share, unless the effect would be anti-dilutive, and
uses the treasury stock method to calculate the applicable number of shares. The following
calculation provides the reconciliation of the denominators used in the calculation of basic
and fully diluted earnings per share:
Three Months Ended
Nine Months Ended
July 31,
July 31,
2007
2006
2007
2006
$
576,797
$
1,251,840
$
1,279,440
$
1,791,534
21,625,571
21,645,384
21,626,220
21,633,440
479
21,626,050
21,645,384
21,626,220
21,633,440
$
.03
$
.06
$
.06
$
.08
$
.03
$
.06
$
.06
$
.08
There were 724,500 and 757,187 options outstanding as of July 31, 2007 and 2006,
respectively. For the nine month period ended July 31, 2007 there were no options used to
calculate the effect of dilution because all of the outstanding options exercise prices
Table of Contents
exceeded the market price of the underlying common shares. For the three months ended July
31, 2007, there were 20,000 options used to calculate the effect of dilution and 704,500
options not included in the dilution calculation because the options exercise prices
exceeded the market price of the underlying common shares. For the three month and nine
month periods ended July 31, 2006, there were no options used to calculate dilution because
all of the options exercise price exceeded the market price of the underlying common
shares.
8.
DEBT
On July 5, 2007 the Company amended its credit agreement with Bank of America dated April 5,
2005. The amendment changed the Acquisition Loan Termination Date and Revolving Credit Loan
Maturity Date to April 5, 2010 from April 5, 2008 and extended the Term Loan Maturity Date
to January 5, 2014. In conjunction with the extension of the maturity date, the monthly
amortization amount on the Term Loan was fixed at $270,833 for the duration of the loan.
Prior to the amendment, the Term Loan Maturity Date was May 5, 2012 and the remaining
amortization was scheduled to be monthly amounts, increasing from year to year, ranging from
$312,500 to $395,833. In addition, the amendment makes up to $3,000,000 available from the
Revolving Credit Loan for repurchase of Company stock or for repayment of subordinated debt
and $2,200,000 available from the acquisition loan for installation of solar panels for
electricity generation at the Companys facility in Watertown, CT. The amendment has
provisions for amortization of the additional borrowed amounts over the remaining life of
the loans starting approximately two years after disbursement. It also alters some of the
financial covenant calculations to provide for the additional borrowing.
As of July 31, 2007 the Company had an outstanding balance of $47,000 on its revolving line
of credit with Bank of America. There was no balance on the acquisition line of credit and
$1,385,000 outstanding in letters of credit on the revolving line of credit. As of July 31,
2007, there was $7,500,000 and $2,992,000 available on the acquisition and revolving lines
of credit, respectively.
As of July 31, 2007, the Company had approximately $5.3 million of debt subject to variable
interest rates. Under the senior credit agreement with Bank of America, interest is paid at
a rate of LIBOR plus a margin of 1.75% on term debt and 1.50% on the line of credit
resulting in variable interest rates of 7.07% and 6.82%, respectively at July 31, 2007. In
addition, as of July 31, 2007 the Company had $20,854,000 of senior term debt outstanding
under the credit agreement.
The Companys Loan and Security agreement requires the Company to be in compliance with
certain financial covenants at the end of each fiscal quarter. The covenants include senior
debt service coverage as defined of greater than 1.25 to 1, total debt service coverage as
defined of greater than 1 to 1, and senior debt to EBITDA of greater than 2.50 to 1.
Due to higher than usual unfinanced capital expenditures in the fourth quarter of fiscal
2006 and higher cash taxes in 2007, as of July 31, 2007, the Company was not in compliance
with two of the financial covenants of its senior credit facility, senior debt service
coverage (which
Table of Contents
was 1.18) and total debt service coverage (which was 0.88). Bank of America
waived compliance with these covenants, and we expect to be in compliance with them in the
future.
As of July 31, 2007, the Company had $14,000,000 of subordinated debt outstanding bearing an
interest rate of 12%.
9.
GOODWILL AND OTHER INTANGIBLE ASSETS
Major components of intangible assets at July 31, 2007 and October 31, 2006 consisted of:
July 31, 2007
October 31, 2006
Gross Carrying
Accumulated
Gross Carrying
Accumulated
Amount
Amortization
Amount
Amortization
$
5,477,663
$
3,013,035
$
5,141,123
$
2,383,443
555,261
194,589
633,172
193,277
$
6,032,924
$
3,207,624
$
5,774,295
$
2,576,720
Amortization expense for the three month periods ending July 31, 2007 and 2006 was
$213,513 and $223,021, respectively. Amortization expense for the nine month periods ending
July 31, 2007 and 2006 was $630,904 and $649,808, respectively.
The changes in the carrying amount of goodwill for the nine month period ending July 31,
2007 are as follows:
$
54,421,662
11,479
(5,251
)
$
54,427,890
Table of Contents
Table of Contents
Product Line
2007
2006
Difference
% Diff.
(000s $)
$
8,096
$
7,808
$
288
4
%
4,608
4,190
418
10
%
2,296
2,227
69
3
%
2,107
2,296
(189
)
(8
%)
$
17,107
$
16,521
$
586
4
%
Table of Contents
Table of Contents
Product Line
2007
2006
Difference
% Diff.
(in 000s $)
$
21,866
$
21,306
$
560
3
%
14,405
12,920
1,485
11
%
6,858
6,740
118
2
%
4,957
5,409
(452
)
(8
%)
$
48,086
$
46,375
$
1,711
4
%
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Payment due by fiscal year
Remainder
Contractual Obligations
Total
of 2007
2008-2009
2010-2011
After 2011
$
34,960,000
$
860,000
$
6,558,000
$
6,500,000
$
21,042,000
16,652,000
756,000
5,573,000
4,713,000
5,610,000
10,798,000
718,000
4,906,000
2,739,000
2,435,000
$
62,410,000
$
2,334,000
$
17,037,000
$
13,952,000
$
29,087,000
(1)
Interest based on 75% of outstanding senior debt at the hedged interest rate discussed
above, 25% of outstanding senior debt at a variable rate of 7.07%, and subordinated debt at a rate
of 12%.
Table of Contents
Table of Contents
Table of Contents
23
24
25
Table of Contents
Total Number of
Maximum
Shares
Number of
Purchased as
Shares that May
Total Number of
Part of a Publicly
Yet be Purchased
Shares
Average Price
Announced
Under the
Purchased
Paid per Share
Program (1)
Program (1)
14,200
$
1.91
14,200
165,400
5,900
$
1.92
5,900
159,500
2,800
$
1.90
2,800
156,700
22,900
$
1.90
22,900
(1)
On June 16, 2006 we announced a program to repurchase up to 250,000 shares of our
common stock at the discretion of management. There is no expiration date for the program
and the share limit may not be reached.
Exhibit
Number
Description
Certificate of Incorporation (Incorporated by reference to Exhibit B to
Appendix A to our registration statement on Form S-4, File No. 333-45226, filed with
the SEC on September 6, 2000)
Certificate of Amendment of Certificate of Incorporation (Incorporated by
reference to Exhibit 4.2 of our current report on Form 8-K, filed with the SEC on
October 19, 2000)
By-laws, as amended (Incorporated by reference to Exhibit 3.3 to our quarterly
report on Form 10-Q, filed with the SEC on September 14, 2001)
Table of Contents
Exhibit
Number
Description
First Amendment to the Credit Agreement dated April 5, 2005 with Bank of
America and Bank of America
Second Amendment to the Credit Agreement dated April 5, 2005 with Bank of
America and Bank of America
Third Amendment to the Credit Agreement dated April 5, 2005 with Bank of
America and Bank of America
First Amendment to the Lease of Buildings and Grounds in Watertown, Connecticut
from the Bakers Grandchildren Trust
Certification of Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
Certification of Chief Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Table of Contents
26
27
VERMONT PURE HOLDINGS, LTD.
By:
/s/ Bruce S. MacDonald
Bruce S. MacDonald
Vice President, Chief Financial Officer
(Principal Accounting Officer and
Principal Financial Officer)
Table of Contents
Exhibit
Number
Description
First Amendment to the Credit Agreement dated April 5, 2005 with Bank of
America and Bank of America
Second Amendment to the Credit Agreement dated April 5, 2005 with Bank of
America and Bank of America
Third Amendment to the Credit Agreement dated April 5, 2005 with Bank of
America and Bank of America
First Amendment to the Lease of Buildings and Grounds in Watertown, Connecticut
from the Bakers Grandchildren Trust
Certification of Chief Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley act of 2002.
Certification of Chief Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley act of 2002.
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
-2-
-3-
VERMONT PURE HOLDINGS, LTD.
|
||||
By: | /s/ Timothy G. Fallon | |||
Name: | Timothy G. Fallon | |||
Title: | Chief Executive Officer | |||
CRYSTAL ROCK LLC
|
||||
By: | /s/ Timothy G. Fallon | |||
Name: | Timothy G. Fallon | |||
Title: | Manager | |||
BANK OF AMERICA, N.A.,
as a Lender
|
||||
By: | /s/ Matthew S. Latham | |||
Name: | Matthew S. Latham | |||
Title: | Senior Vice President | |||
BANK OF AMERICA, N.A.,
as Administrative Agent
|
||||
By: | /s/ Matthew S. Latham | |||
Name: | Matthew S. Latham | |||
Title: | Senior Vice President | |||
WEBSTER BANK, NATIONAL ASSOCIATION
|
||||
By: | /s/ Richard A. OBrien | |||
Richard A. OBrien | ||||
Senior Vice President | ||||
-2-
-3-
VERMONT PURE HOLDINGS, LTD.
|
||||
By: | /s/ Peter K. Baker | |||
Name: | Peter K. Baker | |||
Title: | CEO | |||
CRYSTAL ROCK LLC
|
||||
By: | /s/ Peter K. Baker | |||
Name: | Peter K. Baker | |||
Title: | Manager | |||
BANK OF AMERICA, N.A.
, as a Lender
|
||||
By: | /s/ Matthew S. Latham | |||
Name: | Matthew S. Latham | |||
Title: | Senior Vice President | |||
BANK OF AMERICA, N.A.
, as Administrative Agent
|
||||
By: | /s/ Michael R. Langmeyer | |||
Name: | Michael R. Langmeyer | |||
Title: | Assistant Vice President | |||
WEBSTER BANK, NATIONAL ASSOCIATION
|
||||
By: | /s/ Richard A. OBrien | |||
Richard A. OBrien | ||||
Senior Vice President | ||||
-2-
-3-
Period | Amount of Payment | ||||||
May 5, 2005 through and including May 4, 2006
|
$ | 250,000.00 | |||||
May 5, 2006 through and including January 4, 2014
|
$ | 270,833.33 | |||||
Term Loan Maturity Date
|
Remaining Balance of Term Loan |
-4-
-5-
VERMONT PURE HOLDINGS, LTD.
|
||||
By: | /s/ Peter K. Baker | |||
Name: | Peter K. Baker | |||
Title: | Chief Executive Officer | |||
CRYSTAL ROCK LLC
|
||||
By: | /s/ Peter K. Baker | |||
Name: | Peter K. Baker | |||
Title: | Manager | |||
BANK OF AMERICA, N.A.
, as a Lender
|
||||
By: | /s/ Christopher T Phelon | |||
Name: | Christopher T Phelon | |||
Title: | Senior Vice President | |||
BANK OF AMERICA, N.A.
,
as Administrative Agent |
||||
By: | /s/ Kalens Herold | |||
Name: | Kalens Herold | |||
Title: | Assistant Vice President | |||
WEBSTER BANK, NATIONAL ASSOCIATION
|
||||
By: | /s/ Carol Carver | |||
Name: | Carol Carver | |||
Title: | Vice President |
Commitment
Revolving
Percentage
Credit
Acquisition
(for Revolving
Loan
Term Loan
Loan
Credit Loans, Term
Name and Address
Commitment
Commitment
Commitment
Loans and
of Lender
Amount
Amount
Amount
Acquisition Loans)
$
3,900,000.00
$
18,200,000.00
$
6,500,000
65.00
%
$
2,100,000.00
$
9,800,000.00
$
3,500,000
35.00
%
1. | The parties acknowledge that the ten year term of the lease expires on October 5, 2010 and that the Rent currently is FOUR HUNDRED FOURTEEN THOUSAND and 00/100 DOLLARS ($414,000.00) per annum, payable in equal monthly installments, in advance, of THIRTY FOUR THOUSAND FIVE HUNDRED and 00/100 DOLLARS ($34,500) per month. | ||
2. | The parties agree to replace Article XXIX, OPTIONS TO RENEW, of the lease, with the following: |
3. | All other terms and conditions of the Lease shall not be modified by this Amendment and are hereby ratified. |
Signed, Sealed and Delivered
in the
presence of |
BAKER GRANDCHILDRENS TRUST
u/t/a dated May 5, 2000 LANDLORD |
|||||||
|
||||||||
/s/
Cheryl Gustafson
|
By | /s/ Henry E. Baker | ||||||
|
|
|||||||
/s/
Mary DelGrasso
|
||||||||
|
||||||||
|
||||||||
VERMONT PURE HOLDINGS, LTD.
Successor to Crystal Rock Spring Water Company, TENANT |
||||||||
|
||||||||
/s/
Debbie H. Kritz
|
By | /s/ Martin Dytrich | ||||||
|
|
|||||||
/s/ Beatrice B. Moore | Chair, Audit Committee | |||||||
Chair, Independent Directors |
STATE OF CONNECTICUT
|
) | |||||||
|
) | ss.: | ||||||
COUNTY OF
|
) |
/s/ David Jurasek | ||||
Notary Public/ | ||||
Commissioner of the Superior Court | ||||
STATE OF CONNECTICUT
|
) | |||||||
|
) | ss.: | ||||||
COUNTY OF
|
) |
/s/ Debbie H. Kritz | ||||
Notary Public/ | ||||
Commissioner of the Superior Court | ||||
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
c) | disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: September 14, 2007
|
||
|
||
/s/ Peter K. Baker
|
||
Peter K. Baker
|
||
Chief Executive Officer
|
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
c) | disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/s/ Bruce S. MacDonald
|
||
Bruce S. MacDonald
|
||
Chief Financial Officer
|
/s/ Peter K. Baker
|
||
Peter K. Baker
|
||
Chief Executive Officer
|
/s/ Bruce S. MacDonald
|
||
Bruce S. MacDonald
|
||
Chief Financial Officer
|