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Filed pursuant to Rule 424(b)(5)
Registration Statement No. 333-10939
PROSPECTUS
55,000 Shares
GULF SOUTH MEDICAL SUPPLY, INC.
COMMON STOCK
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This Prospectus relates to the resale of up to 55,000 shares (the
"Shares") of the common stock, par value $.01 per share (the "Common Stock"),
of Gulf South Medical Supply, Inc. ("Gulf South" or the "Company") by a certain
stockholder of the Company (the "Selling Stockholder"). The Selling
Stockholder may sell the Shares from time to time in transactions on the Nasdaq
National Market, in negotiated transactions, through the writing of options on
the Shares, or a combination of such methods of sale, at fixed prices that may
be changed, at market prices prevailing at the time of sale, at prices related
to such prevailing market prices, or at negotiated prices. The Selling
Stockholder may effect these transactions by selling the Shares to or through
broker-dealers, who may receive compensation in the form of discounts or
commissions from the Selling Stockholder or from the purchasers of the Shares
for whom the broker-dealers may act as an agent or to whom they may sell as
principal, or both. See "Selling Stockholder" and "Plan of Distribution." The
Company will not receive any of the proceeds from the sale of the Shares. The
Company has agreed to bear all of the expenses in connection with the
registration and sale of the Shares (other than selling commissions).
The Common Stock of the Company is quoted on the Nasdaq National Market
under the symbol GSMS. On January 14, 1997, the closing sale price of the
Common Stock was $26.00 per share.
INVESTORS SHOULD CAREFULLY CONSIDER THE FACTORS SET FORTH UNDER
"RISK FACTORS." SEE PAGE 6.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
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NO DEALER, SALES REPRESENTATIVE OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS IN CONNECTION WITH THIS OFFERING
OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS AND, IF GIVEN OR MADE, SUCH
INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN
AUTHORIZED BY THE COMPANY OR THE SELLING STOCKHOLDER. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF ANY OFFER TO BUY COMMON STOCK
BY ANYONE IN ANY JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS NOT
AUTHORIZED, OR IN WHICH THE PERSON MAKING SUCH AN OFFER OR SOLICITATION IS NOT
QUALIFIED TO DO SO, OR TO ANY PERSON WHOM IT IS UNLAWFUL TO MAKE SUCH AN OFFER
OR SOLICITATION. NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE
HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THE
INFORMATION CONTAINED HEREIN IS CORRECT AS OF ANY DATE SUBSEQUENT TO ITS DATE.
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The date of this Prospectus is January 15, 1997.
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This Prospectus contains certain statements of a forward-looking nature
relating to future events or the future financial performance of the Company.
Prospective investors are cautioned that such statements are only predictions
and that actual events or results may differ materially. In evaluating such
statements, prospective investors should specifically consider the various
factors identified in this Prospectus, including the matters set forth under
the caption "Risk Factors," which could cause actual results to differ
materially from those indicated by such forward-looking statements.
ADDITIONAL INFORMATION
The Company is subject to the informational requirements of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and in
accordance therewith files reports, proxy statements and other information with
the Securities and Exchange Commission (the "Commission"). Such reports, proxy
statements and other information may be inspected and copied at the public
reference facilities maintained by the Commission at Room 1024, Judiciary
Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549; 500 West Madison Street,
Chicago, IL 60621; and Seven World Trade Center, New York, NY 10048. Copies of
such material can be obtained from the Reference Section of the Commission at
Judiciary Plaza, 450 Fifth Street, N.W., Washington, D.C. 20549 at prescribed
rates. The Company's Common Stock is traded on the Nasdaq National Market, and
such reports, proxy statements and other information may be inspected at the
offices of Nasdaq Operations, 1735 K Street, N.W., Washington, D.C. 20006.
Additionally, the Commission maintains a Web site that contains reports, proxy
and information statements and other information regarding the Company at
http://www.sec.gov.
The Company has filed with the Commission a Registration Statement on
Form S-3 (including all amendments, exhibits and schedules thereto, the
"Registration Statement") under the Securities Act of 1933, as amended (the
"Securities Act"), with respect to the Common Stock offered hereby. As
permitted by the rules and regulations of the Commission, this Prospectus omits
certain information contained in the Registration Statement. For further
information with respect to the Company and the Common Stock offered hereby,
reference is hereby made to the Registration Statement and to the exhibits and
schedules filed therewith. Statements contained in this Prospectus regarding
the contents of any agreement or other document filed as an exhibit to the
Registration Statement are not necessarily complete, and in each instance
reference is made to the copy of such agreement filed as an exhibit to the
Registration Statement, each such statement being qualified in all respects by
such reference. The Registration Statement, including the exhibits and
schedules thereto, may be inspected at the public reference facilities
maintained by the Commission as described above, and copies of all or any part
thereof may be obtained from such facilities upon payment of the prescribed
fees.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents, heretofore filed by the Company with the
Commission pursuant to the Exchange Act, are incorporated by reference in this
Prospectus:
(i) Annual Report on Form 10-K for the fiscal year ended December 31,
1995, including portions of the Company's Proxy Statement dated March 15, 1996
for its Annual Meeting of Stockholders held on April 18, 1996;
(ii) Quarterly Report on Form 10-Q for the quarter ended March 31,
1996, as amended by Form 10-Q/A, Amendment No. 1, filed on July 26, 1996;
(iii) Quarterly Report on Form 10-Q for the quarter ended June 30,
1996;
(iv) Quarterly Report on Form 10-Q for the quarter ended September 30,
1996;
(v) Current Report on Form 8-K dated November 19, 1996;
(vi) Current Report on Form 8-K dated December 26, 1996; and
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(vii) The section entitled "Description of Registrant's Securities to
be Registered" contained in the Company's Registration Statement on Form 8-A
filed under the Exchange Act and declared effective on March 24, 1994,
including any amendment or reports filed for the purpose of updating such
description.
Each document subsequently filed by the Company pursuant to Section
13(a), 13(c), 14 or 15(d) of the Exchange Act, prior to the termination of the
offering of the shares of Common Stock made hereby, shall be deemed to be
incorporated by reference in this Prospectus and to be a part hereof from the
date of filing of such document. The Company will provide without charge to
each person, including any beneficial owner, to whom a copy of this Prospectus
is delivered, upon the written or oral request of any such person, a copy of
any document described above (other than exhibits). Requests for such copies
should be directed to Stanton Keith Pritchard, Secretary, Gulf South Medical
Supply, Inc., 426 Christine Drive, Ridgeland, Mississippi 39157; telephone
(601) 856-5900.
Any statement contained herein or in a document incorporated or deemed
to be incorporated herein by reference shall be deemed to be modified or
superseded for purposes of this Prospectus to the extent that a statement
contained herein or in any subsequently filed document that is incorporated by
reference herein modifies or supersedes such statement. Any such statement so
modified or superseded shall not be deemed, except as so modified or
superseded, to constitute a part of this Prospectus.
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THE COMPANY
Gulf South is a leading national distributor of medical supplies and
related products to the long-term care industry. The Company provides products
and services to approximately 8,500 long-term care facilities in all 50 states.
The Company's customers range from independent nursing home operators to large
national chains offering a broad range of healthcare services, such as Beverly
Enterprises Sun Heathcare Group, as well as home healthcare providers, hospices
and sub-acute, rehabilitative and transitional care providers. Through its nine
full-service regional distribution centers, the Company offers both national
coverage to multi-facility customers and local service to individual facilities
and independent operators. Gulf South believes that it has achieved its success
to date due to the expertise gained from more than eleven years of focus on the
long-term care industry and its strong commitment to providing superior service
to its customers.
According to the latest industry data available, sales of medical
supplies and related products to the nursing home segment of the long-term care
industry in the United States were more than $1.5 billion in 1993 and the
Company estimates that such sales are growing at an annual rate in excess of
10%. The Company also believes that the home healthcare and sub-acute care
segments are growing at a faster rate than the nursing home segment of the
long-term care industry. Economic, regulatory, political and demographic
factors are causing an increase in the demand for the services provided by
long-term care facilities and in the need for facility operators to provide
patients with a broader variety of medical supplies on a cost-effective basis.
In addition to the aging of the U.S. population, these factors include cost
containment measures initiated by public and private reimbursement programs and
the emergence of long-term care facilities as an effective non-hospital setting
in which sub-acute medical and rehabilitative care can be provided to medically
stable patients.
The Company believes that its ability to compete in the long-term care
market is enhanced by its emphasis on offering customers a single source for
over 10,000 products at competitive prices, coupled with convenient ordering
procedures, accurate and complete fulfillment of small and "broken case"
orders, and consistent and reliable deliveries. The Company estimates that it
ships more than 95% of all orders received on the same day the order is placed,
with a fill rate of 98%. The Company also provides its customers with value-
added services designed to assist in managing inventory usage and controlling
costs. These services include monthly usage reports, inventory
control/ancillary billing software, next-day invoicing and customized programs
such as bar code labeling and customer-specific ordering guides. In addition,
the Company utilizes its electronic data interface (EDI) capabilities to
streamline and simplify the ordering and invoicing process for certain of its
major customers, as well as to ensure accurate order entry and fulfillment.
The Company's net sales have grown at a compound annual rate of 42.0%
over the past five years, from $32 million in 1991 to $130 million in 1995.
Operating income over this period grew at a compound annual rate of 48.1%, from
$3.0 million in 1991 to $13.7 million in 1995. Net sales and operating income
for the nine months ended September 30, 1996 were $131.0 million and $13.2
million, respectively. The Company believes that it is well-positioned to
pursue growth opportunities in the long-term care industry. The Company's
principal growth strategies are to increase its sales to existing customers by
continuing to meet their product and service needs as they grow, to add new
customers, including large national chains and group purchasing organizations,
to expand its presence in the home healthcare and sub-acute, rehabilitative and
transitional care segments of the long-term care industry, and to augment its
internal growth with the acquisition of distributors that serve complementary
markets or that supplement the Company's presence in existing markets.
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The Company originally was incorporated in Mississippi in 1982 under the
name of Gulf South Supply Company of Mississippi and changed its name to Gulf
South Medical Supply, Inc. in 1988. In 1993, the Company was reincorporated in
Delaware. The Company's principal executive offices are located at 426
Christine Drive, Ridgeland, Mississippi 39157, and its telephone number is
(601) 856-5900. As used in this Prospectus, the terms "Gulf South" and the
"Company" refer to Gulf South Medical Supply, Inc., a Delaware corporation, and
its predecessor, unless the context otherwise requires.
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RISK FACTORS
In addition to the other information in this Prospectus, the following
factors should be considered carefully in evaluating an investment in the
shares of Common Stock offered hereby.
Intense and Increasing Competition. The Company faces intense
competition from a variety of regional, local and national distributors.
Barriers to entry in the long-term care distribution industry are relatively
low, and the risk of new competitors entering the market, particularly on a
local level, is high. In response to competitive pressures, the Company has in
the past lowered, and may in the future lower, selling prices in order to
maintain or increase market share, which has resulted, and may in the future
result, in lower gross margins. Although several national distributors and
healthcare manufacturers presently sell to the long-term care market, to date
the long-term care market has not been a primary focus for such distributors
and manufacturers. However, national distributors and manufacturers, many of
which have substantially greater capital resources, sales and marketing
experience and distribution capabilities than the Company, may focus their
efforts more directly on the long-term care market. Hospitals that form
alliances with long-term care facilities to create integrated healthcare
networks may look to national distributors and manufacturers to furnish
products to their long-term care affiliates. Because the national distributors
may have cost advantages over the Company due to their ability to purchase
products in large volumes, the Company may experience significant pricing
pressures from these and other competitors which could adversely affect the
Company's business and operating results.
Risks Associated with Acquisition Strategy. A key element of the
Company's growth strategy is to augment its internal growth with the
acquisition of medical supply distributors, and inventory and facilities of
such distributors, that serve complementary markets or that supplement the
Company's presence in existing markets. Certain of these businesses may be
marginally profitable or unprofitable. In order to achieve anticipated
benefits from these acquisitions, the Company must successfully integrate the
acquired businesses with its existing operations and no assurance can be given
that the Company will be successful in this regard. In the past the Company
has incurred one-time costs and expenses in connection with acquisitions, and
it is likely that similar one-time merger costs and expenses may be incurred in
connection with any future acquisitions, including the write-off of unsold
inventory and unused assets. In addition, attractive acquisitions are
difficult to identify and complete for a number of reasons, including
competition among prospective buyers and the possible need to obtain regulatory
approvals. There can be no assurance that the Company will be able to complete
future acquisitions. In order to finance such acquisitions, it may be
necessary for the Company to raise additional funds either through public or
private financings, including bank borrowings. Any financing, if available at
all, may be on terms which are not favorable to the Company. The Company may
also issue shares of its Common Stock to acquire such businesses, which may
result in dilution to the Company's existing stockholders.
Concentration of Customers. The Company depends on a limited number of
large customers for a significant portion of its net sales. Consolidation
among long-term care providers and the growth of the Company's business with
large chains could increase such dependence. In the year ended December 31,
1995 and in the nine months ended September 30, 1996, the Company's largest
five customers accounted for approximately 30.8% and 33.8%, respectively, of
net sales. Beverly Enterprises accounted for 16.6% of net sales for the year
ended December 31, 1995. As is customary in its industry, the Company does not
have any long-term contracts with its customers and sells on a purchase order
basis only. The loss of, or significant declines in the level of purchases by,
one or more of these customers would have a material adverse effect on the
Company's business and results of operations. Although the Company has not to
date experienced any failure to collect accounts receivable from its
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largest customers, an adverse change in the financial condition of any of these
customers, including as a result of a change in governmental or private
reimbursement programs, could have a material adverse effect upon the Company's
results of operations or financial condition. In addition, the expansion of
the Company's business with large chains has in the past resulted in
competitive pricing pressures and lower operating margins and such pressure on
margins may continue in the future.
Risks of Business Growth and Changing Market Conditions. A key element
of the Company's growth strategy is to increase sales to existing and new
customers, including both large chains and independent operators, by adding one
or more new strategic distribution centers or expanding existing distribution
centers and by hiring additional direct sales or other personnel and through
national account sales efforts. Such efforts will result in increased
operating expenses. There can be no assurance that the establishment of new
strategic distribution centers, the expansion of existing distribution centers,
the addition of new sales or other personnel or national account sales efforts
will result in additional revenues or operating income. The Company's growth
plans also could place significant demands upon the Company's management and
financial resources. The expansion of the Company's business with large chains
has in the past resulted in competitive pricing pressures and lower operating
margins and such pressure on margins may continue in the future. As a result
of changes occurring in the long-term care market, both the nature of the
Company's customer base as well as products and services required by its
customers are changing. The failure of the Company's management to effectively
respond to and manage changing business conditions, including changes in
customer requirements and changes to the Company's overall product mix, could
have an adverse effect on the Company's business and results of operations. As
a result of these factors, the Company could experience fluctuations in
operating results.
Dependence on Management. The continued success of the Company's
operations will depend largely upon the continued services of its executive
officers, in particular Thomas G. Hixon, Guy W. Edwards and Steven L.
Richardson, who serve as President, Senior Vice President and Vice President of
Operations, respectively. The loss of service of one or more of such executive
officers could adversely affect the Company's business. The Company does not
have written employment agreements with such individuals but does have
noncompetition agreements with them, which extend for two years after
termination of employment. The Company presently maintains keyman life
insurance on Thomas G. Hixon in the amount of $1,500,000 and on Guy W. Edwards
and Steven L. Richardson, each in the amount of $500,000. The Company's future
success will also be dependent, in part, upon the Company's ability to attract
and retain additional qualified managers and employees.
Reliance on Centralized Business Systems and on Third Parties. Because
the Company believes that its success to date is dependent in part upon its
ability to provide prompt, accurate and complete service to its customers on a
price-competitive basis, any disruption in its day-to-day operations or
material increases in its cost of procuring and delivering products could have
an adverse effect on its results of operations. Any failure of either its
management information system or its telephone system, both of which are
located at the Company's principal distribution center in Jackson, Mississippi,
could adversely affect its ability to receive and process customer orders and
ship products on a timely basis. Any significant expansion of the Company's
business, either through the addition of new customers, expansion of business
with existing customers or through acquisitions, could also result in the need
to increase the capacity and capability of the Company's management information
system or telephone system. Strikes or other service interruptions affecting
United Parcel Service or other common carriers used by the Company to ship its
products could also impair the Company's ability to deliver products on a
timely and cost-effective basis. In addition, because the Company typically
bears the cost of shipment to its customers, any increase in shipping rates
could have an adverse effect on the Company's operating results.
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In order to provide prompt and complete service to its customers, the
Company maintains a significant investment in product inventory (approximately
$23.0 million at September 30, 1996) at its eleven warehouse locations.
Although the Company closely monitors its inventory exposure through a variety
of inventory control procedures and policies, there can be no assurance that
such procedures and policies will continue to be effective or that unforeseen
product developments or price changes will not adversely affect the Company's
business or results of operations. In addition, the Company may assume the
inventory of distributors that it acquires which includes product lines or
operating assets not normally carried or used by the Company. These product
lines or assets may be difficult to sell, resulting in the Company writing off
any such unsold inventory or unused assets in future periods.
National Health Care Reform. National health care reform has been the
subject of a number of legislative initiatives by Congress. Although the
Company is not itself presently subject to significant direct federal or state
regulation, its customers are highly regulated, and any legislative or
regulatory changes which affect them may also indirectly affect the Company.
Due to uncertainties regarding the ultimate features of health care reform
initiatives and their enactment and implementation, the Company cannot predict
which, if any, of such reform proposals will be adopted, when they may be
adopted or what impact they may have on the Company's customers or on the
Company. The actual announcement of reform proposals and the investment
community's reaction to such proposals, announcements by competitors of their
strategies to respond to reform initiatives and general proposals, and general
industry conditions could produce volatility in the trading and market price of
the Company's Common Stock.
Anti-Takeover Provisions; Possible Issuance of Preferred Stock. The
Company's Amended and Restated Certificate of Incorporation and By-laws contain
various provisions that may make it more difficult for a third party to
acquire, or may discourage acquisition bids for, the Company and could limit
the price that certain investors might be willing to pay in the future for
shares of the Company's Common Stock. In addition, the rights of the holders
of Common Stock will be subject to, and may be adversely affected by, the
rights of any holders of Preferred Stock that may be issued in the future and
that may be senior to the rights of the holders of Common Stock.
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SELLING STOCKHOLDER
The following table sets forth certain information with respect to the
Shares held by the Selling Stockholder. The Shares may be offered from time to
time by the Selling Stockholder. See "Plan of Distribution."
<TABLE>
<CAPTION>
Shares Beneficially Owned Shares Beneficially Owned
Prior to Offering(1) Shares Offered After Offering(1)(2)
-------------------------- Pursuant to this --------------------------
Name Number Percent Prospectus Number Percent
---- ------ ------- ---------- ------ -------
<S> <C> <C> <C> <C> <C>
Richard W. Bayer ............... 55,000 * 55,000 0 0
</TABLE>
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* Less than 1% of the outstanding Common Stock.
(1) The number of shares of Common Stock deemed outstanding includes
16,264,923 shares of Common Stock outstanding as of January 14, 1997.
(2) Assumes that the Selling Stockholder will sell all of the Shares
registered hereunder. The Selling Stockholder may sell all or any part
of his Shares pursuant to this Prospectus.
The Selling Stockholder acquired his Shares in connection with the
Acquisition (as defined below).
In February, 1996, the Company acquired all of the outstanding shares of
capital stock of Bayer Medical Service Systems, Inc. ("Bayer Medical"), an Ohio
Corporation (the "Acquisition"), pursuant to a Stock Purchase Agreement dated
as of February 12, 1996 among Bayer Medical, Richard W. Bayer, as sole
stockholder, and Gulf South (the "Acquisition Agreement"). The Acquisition was
accomplished through an exchange of 151,724 shares of the Company's Common
Stock for all of the outstanding shares of capital stock of Bayer Medical.
Following the Acquisition, Richard W. Bayer became Vice President - Business
Development of Gulf South. The Acquisition has been accounted for under the
pooling-of-interests method. The purchase price and terms for the transaction
were determined in arms-length negotiations.
The Selling Stockholder represented to the Company that he was acquiring
the Shares as principal for his own account for investment and not with a view
to, or for sale in connection with, any distribution thereof in contravention
of the Securities Act or any other applicable securities legislation. In
recognition of the fact, however, that the Selling Stockholder may want to be
able to sell his shares when he considers it appropriate, in connection with
the Acquisition Agreement, the Company agreed to file the Registration
Statement with the Commission to effect the registration of the resale of the
Shares under the Securities Act and to use reasonable efforts to keep the
Registration Statement effective until February 29, 1998.
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PLAN OF DISTRIBUTION
The Shares offered hereby may be sold from time to time by the Selling
Stockholder for his own account. The Company is responsible for the expenses
incurred in connection with the registration of the Shares. The Company will
not receive any of the proceeds from this offering. The Selling Stockholder
will pay or assume brokerage commissions or other charges and expenses incurred
in the sale of the Shares.
The distribution of the Shares by the Selling Stockholder is not subject
to any underwriting agreement. The Shares covered by this Prospectus may be
sold by the Selling Stockholder or by pledgees, donees, transferees or other
successors in interest. The Shares offered by the Selling Stockholder may be
sold from time to time in transactions on the Nasdaq National Market, in
negotiated transactions, through the writing of options on the Shares, or a
combination of such methods of sale, at fixed prices that may be changed, at
market prices prevailing at the time of sale, at prices relating to such
prevailing market prices or at negotiated prices. In addition, the Selling
Stockholder may sell his Shares covered by this Prospectus through customary
brokerage channels, either through broker-dealers acting as agents or brokers,
or through broker-dealers acting as principals, who may then resell the Shares,
or at private sale or otherwise, at market prices prevailing at the time of
sale, at prices related to such prevailing market prices or at negotiated
prices. The Selling Stockholder may effect such transactions by selling Shares
to or through broker-dealers, and such broker-dealers may receive compensation
in the form of underwriting discounts, concessions, commissions, or fees from
the Selling Stockholder and/or purchasers of the Shares for whom such broker-
dealers may act as agent or to whom they sell as principal, or both (which
compensation to a particular broker-dealer might be in excess of customary
commissions). Any broker-dealers that participate with the Selling Stockholder
in the distribution of Shares may be deemed to be underwriters and any
commissions received by them and any profit on the resale of Shares placed by
them might be deemed to be underwriting discounts and commissions within the
meaning of the Securities Act, in connection with such sales.
Any shares covered by the Prospectus that qualify for sale pursuant to
Rule 144 under the Securities Act may be sold under Rule 144 rather than
pursuant to this Prospectus.
Since the Selling Stockholder is not restricted as to the price or
prices at which he may sell his Shares, sales of such Shares at less than the
market prices may depress the market price of the Company's Common Stock.
Harris Trust and Savings Bank, 311 West Monroe, Chicago, Illinois 60690,
is the transfer agent for the Company's Common Stock.
LEGAL MATTERS
The validity of the shares of Common Stock offered hereby will be passed
upon for the Company and the Selling Stockholder by Testa, Hurwitz & Thibeault,
LLP, Boston, Massachusetts. A partner of Testa, Hurwitz & Thibeault, LLP is the
holder of 2,000 shares of Common Stock.
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EXPERTS
The financial statements and financial statement schedules of the
Company as of December 31, 1994 and 1995 and for each of the three years in the
period ended December 31, 1995, incorporated by reference in this Prospectus
and in the Registration Statement have been audited by Ernst & Young LLP,
independent auditors, as set forth in their report thereon incorporated herein,
and are included in reliance upon such report incorporated herein given upon
the authority of such firm as experts in auditing and accounting.
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