SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 1997 Commission File No. 0-9377
------------------- ---------
KINNARD INVESTMENTS, INC.
(Exact name of registrant as specified in its charter)
Minnesota 41-0972952
(State of incorporation) (I.R.S. Employer identification number)
920 Second Avenue South, Minneapolis, Minnesota 55402 (612) 370-2700
----------------------------------------------------------------------------
(Address of principal executive offices) Telephone number
Former name, former address and former fiscal year, if changed since last report
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
such filing requirements for at least the past 90 days. Yes X No ____
Shares of $0.02 par value common stock outstanding at November 11, 1997:
6,612,740
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONTENTS
PART I Page
ITEM 1 - CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statements of financial condition...................3
Consolidated statements of operations............................4
Consolidated statements of shareholders' equity..................5
Consolidated statements of cash flows............................6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS...........................8
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.........................9
ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT
MARKET RISK................................................11
PART II
OTHER INFORMATION...............................................12
<PAGE>
PART I
ITEM 1 -CONSOLIDATED FINANCIAL STATEMENTS
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
(In thousands, except share data)
================================================================================= ==================== ====================
September 30, December 31,
1997 1996
- --------------------------------------------------------------------------------- -------------------- --------------------
(Unaudited)
<S> <C> <C>
ASSETS
Cash and cash equivalents $4,605 $12,518
Funds held in escrow 1,572 1,513
Receivable from clearing firm and other broker-dealers 287 968
Miscellaneous receivables 2,705 2,140
Trading securities, at market 8,776 7,658
Office equipment at cost, less accumulated depreciation
of $3,562 and $3,327, respectively 1,381 980
Investment securities, at fair value 25,561 20,940
Income tax receivable 249 0
Other assets 285 424
- --------------------------------------------------------------------------------- -------------------- --------------------
Total assets $45,421 $47,141
================================================================================= ==================== ====================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Securities sold but not yet purchased, at market $981 $842
Employee compensation and related taxes payable 3,242 3,900
Other accounts payable and accrued expenses 2,949 3,011
Income taxes payable 0 3,228
Deferred tax liability 560 131
- --------------------------------------------------------------------------------- -------------------- --------------------
Total liabilities 7,732 11,112
- --------------------------------------------------------------------------------- -------------------- --------------------
Shareholders' equity
Preferred stock, authorized 1,000 shares; none issued or outstanding 0 0
Undesignated stock, authorized 16,500 shares; none issued or outstanding 0 0
Common stock, $.02 par value; authorized 7,500 shares; issued and
outstanding 6,162 and 6,027 shares, respectively 123 120
Additional paid-in capital 13,187 12,710
Retained earnings 24,379 23,199
- --------------------------------------------------------------------------------- -------------------- --------------------
Total shareholders' equity 37,689 36,029
- --------------------------------------------------------------------------------- -------------------- --------------------
Total liabilities and shareholders' equity $45,421 $47,141
================================================================================= ==================== ====================
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
(In thousands, except per share data)
============================================== ================================== ==== ==================================
Three Months Ended Nine Months Ended
September 30, September 30,
- ---------------------------------------------- ---------------------------------- ---- ----------------------------------
1997 1996 1997 1996
- ---------------------------------------------- ---------------- ----------------- ---- ----------------- ----------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Revenues:
Commission income $3,669 $9,457 $10,607 $30,484
Principal transactions 6,891 7,948 20,035 28,884
Investment account income 1,100 1,087 1,294 5,128
Investment banking 1,678 1,181 3,221 4,737
Interest 597 804 1,737 2,062
Other 661 1,195 1,772 3,470
- ---------------------------------------------- ---------------- ----------------- ---- ----------------- ----------------
Total revenues 14,596 21,672 38,666 74,765
- ---------------------------------------------- ---------------- ----------------- ---- ----------------- ----------------
Expenses:
Compensation and benefits 9,157 10,182 25,447 35,826
Bank commissions 0 4,298 0 13,063
Floor brokerage and clearance 1,153 1,174 3,049 3,833
Communications 194 314 577 947
Occupancy and equipment 1,319 1,653 3,800 4,733
Other 1,446 2,151 3,798 6,806
- ---------------------------------------------- ---------------- ----------------- ---- ----------------- ----------------
Total expenses 13,269 19,772 36,671 65,208
- ---------------------------------------------- ---------------- ----------------- ---- ----------------- ----------------
Income before income taxes 1,327 1,900 1,995 9,557
Income tax expense 533 761 815 3,829
- ---------------------------------------------- ---------------- ----------------- ---- ----------------- ----------------
Net income $794 $1,139 $1,180 $5,728
- ---------------------------------------------- ---------------- ----------------- ---- ----------------- ----------------
Earnings per common share:
Primary $0.13 $0.19 $0.19 $0.94
Fully diluted $0.12 $0.19 $0.18 $0.93
- ---------------------------------------------- ---------------- ----------------- ---- ----------------- ----------------
Weighted average number of common and
common equivalent shares outstanding:
Primary 6,297 6,085 6,244 6,101
Fully diluted 6,459 6,140 6,509 6,190
============================================== ================ ================= ==== ================= ================
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
(In thousands, except per share data)
================================================= =========================== ============= ============== =============
Additional Unearned
Common Stock Issued Paid-in Compen- Retained
Shares Amount Capital sation Earnings
- ------------------------------------------------- ------------- ------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1994 5,881 $118 $12,861 ($26) $8,122
- ------------------------------------------------- ------------- ------------- ------------- -------------- -------------
Forfeiture of restricted shares and adjustment
to common stock dividend (1) (5) 6 2
Exercise of warrants 381 7 850
Issuance of shares under the employee
stock option plan 11 0 22
Repurchase of stock (15) 0 (48)
Amortization of unearned compensation 20
Net income 3,376
- ------------------------------------------------- ------------- ------------- ------------- -------------- -------------
Balance, December 31, 1995 6,257 125 13,680 0 11,500
- ------------------------------------------------- ------------- ------------- ------------- -------------- -------------
Issuance of shares under the employee stock
purchase plan 11 0 51
Issuance of shares under the employee
stock option plan 88 2 311
Repurchase of stock (329) (7) (1,332)
Net income 11,699
- ------------------------------------------------- ------------- ------------- ------------- -------------- -------------
Balance, December 31, 1996 6,027 120 12,710 0 23,199
- ------------------------------------------------- ------------- ------------- ------------- -------------- -------------
Issuance of shares under the employee
stock option plan 63 1 208
Issuance of new shares 325 6 1,699
Repurchase of stock (253) (4) (1,430)
Net income 1,180
- ------------------------------------------------- ------------- ------------- ------------- -------------- -------------
Balance, September 30, 1997 (unaudited) 6,162 $123 $13,187 $0 $24,379
================================================= ============= ============= ============= ============== =============
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
(In thousands)
============================================================================== ===========================================
Nine Months Ended
September 30,
1997 1996
- ------------------------------------------------------------------------------ --------------------- ---------------------
(Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers, broker-dealers
and clearing agencies $35,336 $61,922
Cash paid to suppliers and employees (37,490) (60,596)
Interest:
Received 1,737 2,062
Paid 0 (205)
Income taxes paid (3,700) (4,191)
- ------------------------------------------------------------------------------ --------------------- ---------------------
Net cash used in operating activities (4,117) (1,008)
- ------------------------------------------------------------------------------ --------------------- ---------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investment securities 14,128 13,901
Purchase of:
Office equipment (850) (833)
Investment securities (17,495) (7,014)
Proceeds from earnings in escrow account (59) 0
- ------------------------------------------------------------------------------ --------------------- ---------------------
Net cash provided by (used in) investing activities (4,276) 6,054
- ------------------------------------------------------------------------------ --------------------- ---------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock 1,914 129
Repurchase of common stock (1,434) (1,135)
Net payments on notes payable and
revolving credit agreements 0 (1,207)
- ------------------------------------------------------------------------------ --------------------- ---------------------
Net cash provided by (used in) financing activities 480 (2,213)
- ------------------------------------------------------------------------------ --------------------- ---------------------
Increase (decrease) in cash and cash equivalents (7,913) 2,833
Cash and cash equivalents at beginning of period 12,518 5,766
- ------------------------------------------------------------------------------ --------------------- ---------------------
Cash and cash equivalents at end of period $4,605 $8,599
============================================================================== ===================== =====================
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
<TABLE>
<CAPTION>
(In thousands)
=============================================================================== ===========================================
Nine Months Ended
September 30,
1997 1996
- ------------------------------------------------------------------------------- --------------------- ---------------------
(Unaudited)
<S> <C> <C>
RECONCILIATION OF NET INCOME TO NET CASH
USED IN OPERATING ACTIVITIES:
Net income $1,180 $5,728
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation and amortization 449 623
Net unrealized (gain) loss on investment securities (1,158) 83
Net realized gain on sale of investment securities (136) (5,211)
Deferred income taxes 429 (71)
(Increase) decrease in:
Receivable from clearing firm and other brokers-dealers 681 (1,489)
Receivable from customers 0 (6,706)
Miscellaneous receivables (525) ( 1,086)
Trading securities, at market (1,118) 2,199
Income tax receivable (249) 0
Other assets 139 (77)
Increase (decrease) in:
Due to clearing firm and other broker-dealers 0 471
Payable to customers 0 596
Securities sold but not yet purchased, at market 139 (253)
Employee compensation and related taxes payable (658) 3,220
Other accounts payable and accrued expenses (62) 1,256
Income taxes payable (3,228) (291)
- ------------------------------------------------------------------------------- --------------------- ---------------------
Net cash used in operating activities ($4,117) ($1,008)
=============================================================================== ===================== =====================
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Summary of Significant Accounting Policies
The accompanying consolidated financial statements of Kinnard
Investments, Inc., (the "Company") have been prepared in
conformity with generally accepted accounting principles and
should be read in conjunction with the Company's annual report for
the year ended December 31, 1996. The results of operations for
the nine months ended September 30, 1997 are not necessarily
indicative of the results to be expected for the year ended
December 31, 1997.
The consolidated statement of financial condition as of September
30, 1997 and other financial information for the nine months ended
September 30, 1997 and 1996, are unaudited, but management of the
Company believes that all adjustments (consisting only of normal
recurring adjustments) necessary for a fair statement of the
results of operations for the periods have been included.
Note 2. Net Capital Requirements
Pursuant to the net capital provision of the Securities Exchange
Act of 1934, the Company's subsidiary, John G. Kinnard and
Company, Incorporated ("JGK") is required to maintain minimum net
capital as defined under such provisions. Also under this rule,
JGK's ratio of aggregate indebtedness to net capital may not
exceed 15 to 1, and JGK may be prohibited from expanding its
business or declaring cash dividends if its ratio of aggregate
indebtedness to net capital is greater than 10 to 1.
At September 30, 1997 JGK had net capital of $6.7 million, a net
capital requirement of $613,000 and a ratio of aggregate
indebtedness to net capital of .95 to 1.
Note 3. Commitments and Contingent Liabilities
In May 1997, a lawsuit seeking class action status was filed in
U.S. District Court in Minnesota alleging that Photran
Corporation, its management, and JGK violated securities laws by
issuing false and misleading statements related to financial
results. JGK managed the initial public offering of Photran in May
1996. JGK believes that it has substantial defenses against these
claims, and intends to defend itself vigorously against them. The
ultimate effect of this matter on the future operating results and
financial condition of the Company is unknown at this time.
In June 1997, a lawsuit seeking class action status was filed in
U.S. District Court in Minnesota alleging that JGK violated
securities laws by issuing false and misleading statements
relating to the initial public offering of Electroscope, Inc. that
was managed by JGK in May 1996. JGK believes that it has
substantial defenses against these claims, and intends to defend
itself vigorously against them. The ultimate effect of this matter
on the future operating results and financial condition of the
Company is unknown at this time.
JGK is a defendant in various other actions relating to its
business, some of which involve claims for unspecified amounts.
Although the resolution of these matters cannot be predicted with
certainty, the Company's management believes that while their
outcome may have a material effect on the earnings in a particular
period, the outcome will not have a material adverse effect on the
financial condition of the Company.
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
This discussion should be read in conjunction with Management's Discussion and
Analysis contained in the Company's Annual Report - Form 10-K for the year ended
December 31, 1996.
Results of Operations
Net income for the current quarter was $794,000, or 13 cents per share, on
revenues of $14.6 million. This result compares to net income of $1.1 million,
or 19 cents per share, on revenues of $21.7 million for the same quarter a year
ago. Included in the prior year are results of PRIMEVEST Financial Services,
Inc., which was sold by the Company in October 1996. If the results of PRIMEVEST
were excluded, net income for the third quarter of 1996 would have been
$836,000, or 14 cents per share, on revenues of $13.6 million.
For the nine months ended September 30, 1997 net income was $1.2 million, or 19
cents per share on revenues of $38.7 million. This compares to net income of
$5.7 million, or 94 cents per share on revenues of $74.8 million in 1996.
Excluding PRIMEVEST, prior year revenues, net income and earnings per share
would have been $50.0 million, $4.4 million and 72 cents, respectively. All
subsequent 1996 comparisons below exclude the results of PRIMEVEST.
Commission income increased by 21% for the current quarter, and 1% for the
comparable nine month period. Sales of mutual fund products and over-the-counter
equity securities accounted for the majority of the increase.
In the third quarter, revenue from principal transactions decreased by 6%.
Equity trading results declined from the prior year as the Company experienced
volatility in the stocks in which it makes a market in. Partially offsetting
this decline was an increase in fixed income trading revenues, which benefited
from a large number of fixed income originations and a generally favorable
interest rate environment. The yield on the 30-year treasury bond declined to
6.4% on September 30, 1997, from 6.8% on June 30, 1997. For the nine month
period, principal income declined by 26%.
Income from the change in valuation of securities held in the Company's
investment account was down 1% for the quarter and 74% for the nine month
period. In the first half of 1996, the Company realized exceptionally large
gains on certain positions held in its portfolio. The investment account has
historically been a volatile source of income.
Income from investment banking increased by 43% during the quarter as the
Company raised $84 million in new capital for businesses and municipalities
through its Corporate Finance and Fixed Income Origination departments. Revenues
decreased by 31% for the nine month period due to completing an additional
public offering in 1996.
Interest income increased by 38% for the quarter primarily as a result of income
earned on proceeds generated by the sale of PRIMEVEST. Other income increased by
40% for the three month period due to an increase in fee based income.
Employee compensation expenses increased by 10% in the third quarter. Variable
compensation increased in line with the corresponding revenues, while salary
expense increased with the addition of key personnel and annual adjustments.
Compensation for the nine month period decreased by 16% due to lower revenue
levels.
Bank commissions, relating solely to the operations of PRIMEVEST, were zero in
the current period. Communications expense declined in both the three and nine
month periods, by 13% and 11%, respectively, as a result of continued cost
reduction efforts. Occupancy expense increased by 9% and 10% for the three and
nine month periods, respectively, due to an increase in real estate taxes and
the opening of a new branch office in Wayzata, Minnesota. Other expenses were
unchanged for the quarter, and decreased 23% for the nine month period due to
the resolution of certain litigation matters.
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Effect of Recent Accounting Standards
In June 1996 the Financial Accounting Standards Board (FASB) issued Statement
No. 125 (SFAS 125), "Accounting for Transfers and Servicing of Financial Assets
and Extinguishment of Liabilities." Subsequently, the FASB issued Statement No.
127 (SFAS 127), which deferred the effective date of certain provisions of SFAS
125 until 1998. The Company intends to adopt the applicable provisions of SFAS
125 when required in 1998, and does not expect the adoption to have a material
effect on its consolidated financial statements.
In February 1997 the FASB issued Statement No. 128 (SFAS 128), "Earnings Per
Share." The Company intends to adopt SFAS 128 when required in the fourth
quarter of 1997, and does not expect the adoption to have a material effect on
reported earnings per share amounts.
Liquidity and Capital Resources
Operating Activities
A large portion of the Company's assets are cash and assets readily convertible
to cash. The liquid portion of the Company's trading and investment securities
are stated at quoted market values and are readily marketable. The less liquid
portions of trading inventory and investment securities, which totaled $1.9
million at September 30, 1997, are stated at fair value, which is determined by
management's estimate.
Between December 31, 1996 and September 30, 1997, trading securities increased
$1.1 million and securities sold but not yet purchased increased by $139,000.
Both long and short inventories are generally maintained to facilitate customer
transactions rather than for market speculation.
Based on the Company's current liquidity position, available bank lines and
operating plans, it is anticipated that the Company has sufficient resources to
meet the cash requirements of its operations in the foreseeable future.
Investing Activities
The majority of the Company's investment account has been invested in short to
medium-term investment grade marketable fixed income securities. In addition,
the Company holds both publicly traded and privately placed equity securities.
Investing activity results primarily from the maturity and repurchase of fixed
income securities, while the volatility in income earned on the portfolio
typically results from changes in valuation of the equity securities.
Financing Activities
JGK maintains a credit facility in order to meet short-term operating needs. At
December 31, 1996 and September 30, 1997 there were no outstanding balances
under this facility.
During the first nine months of 1997, the Company repurchased 253,000 shares of
its common stock at a total cost of $1.4 million. The Board of Directors has
authorized the repurchase of up to 1.1 million shares of the Company's common
stock, of which a total of 840,000 shares have been repurchased as of September
30, 1997.
Cautionary Statements
The Company wishes to caution investors of the following factors which could
affect the Company's results of operations and cause such results to differ
materially from those anticipated in forward-looking statements made in this
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Cautionary Statements (continued)
document or elsewhere by or on behalf of the Company: volatility in the
securities markets, risks in the ownership and underwriting of securities,
consolidation in the financial services industries, volatility in earnings and
losses of investment securities, competition, government regulation, customer
litigation and arbitration, and off-balance-sheet credit and market risks. For a
more complete discussion of these and other factors, see the Company's Annual
Report on Form 10-K for the year ended December 31, 1996.
ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Not Applicable
<PAGE>
KINNARD INVESTMENTS, INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
See Note 3 in Notes to Consolidated Financial Statements.
ITEM 2 - CHANGES IN SECURITIES
None.
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5 - OTHER INFORMATION
None
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 Financial Data Schedule (filed in electronic format only)
(b) Reports on Form 8-K
During the quarter ended September 30, 1997 the Company filed
the following reports
(1) Forms 8-K, 8-k/A (No.1) and 8-K/A (No.2) with a
report date of June 30,1997 reporting under
Item 4 a change in the Company's certifying
accountant.
(2) Form 8-K with a report date of August 20, 1997 reporting
under Item 4 a change in the Company's certifying
accountant.
<PAGE>
Signature
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.
KINNARD INVESTMENTS, INC.
/s/ Daniel R. Sass
Daniel R. Sass
Treasurer (principal financial and
accounting officer)
Date 11/11/97
<PAGE>
EXHIBIT INDEX
KINNARD INVESTMENTS, INC.
FORM 10-Q
For Quarter Ended September 30, 1997
Exhibit No. Description
27 Financial Data Schedule (filed in electronic format only)
<TABLE> <S> <C>
<ARTICLE> BD
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1
<CASH> 6,177
<RECEIVABLES> 2,992
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 34,337
<PP&E> 1,381
<TOTAL-ASSETS> 45,421
<SHORT-TERM> 0
<PAYABLES> 0
<REPOS-SOLD> 0
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 981
<LONG-TERM> 0
0
0
<COMMON> 123
<OTHER-SE> 37,566
<TOTAL-LIABILITY-AND-EQUITY> 45,421
<TRADING-REVENUE> 20,035
<INTEREST-DIVIDENDS> 1,737
<COMMISSIONS> 10,607
<INVESTMENT-BANKING-REVENUES> 3,221
<FEE-REVENUE> 1,772
<INTEREST-EXPENSE> 0
<COMPENSATION> 25,447
<INCOME-PRETAX> 1,995
<INCOME-PRE-EXTRAORDINARY> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,180
<EPS-PRIMARY> 0.19
<EPS-DILUTED> 0.18
</TABLE>
