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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period Ended February 29, 2020

Commission File Number: 1-9852

 

CHASE CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

 

Massachusetts

 

11-1797126

(State or other jurisdiction of incorporation
of organization)

 

(I.R.S. Employer Identification No.)

 

295 University Avenue, Westwood, Massachusetts 02090

(Address of Principal Executive Offices) (Zip Code)

 

(781) 332-0700

(Registrant’s Telephone Number, Including Area Code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

 

 

 

 

Title of each class

Common stock, $.10 par value

Trading Symbol(s)

CCF

Name of each exchange on which registered

NYSE American

 

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, and (2) has been subject to such filing requirements for the past 90 days.  YES ☒  NO ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  YES ☒  NO ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

Large accelerated filer ☐

Accelerated filer ☒

Non-accelerated filer ☐ 

Smaller reporting company ☐

Emerging growth company ☐

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES ☐  NO ☒

 

The number of shares of Common Stock outstanding as of March 31, 2020  was 9,448,620.

 

 

 

 

 

 

CHASE CORPORATION

INDEX TO FORM 10-Q

 

For the Quarter Ended February 29, 2020

 

Ca

 

 

Cautionary Note Concerning Forward-Looking Statements 

 

3

 

 

 

Part I - FINANCIAL INFORMATION

 

 

 

 

 

Item 1 – Unaudited Condensed Consolidated Financial Statements 

 

 

 

 

 

Condensed Consolidated Balance Sheets as of February 29, 2020 (unaudited) and August 31, 2019 

 

4

 

 

 

Condensed Consolidated Statements of Operations for the three and six months ended February 29, 2020 and February 28, 2019 (unaudited) 

 

5

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended February 29, 2020 and February 28, 2019 (unaudited) 

 

6

 

 

 

Condensed Consolidated Statements of Equity for the three and six months ended February 29, 2020 and February 28, 2019 (unaudited) 

 

7

 

 

 

Condensed Consolidated Statements of Cash Flows for the six months ended February 29, 2020 and February 28, 2019 (unaudited) 

 

9

 

 

 

Notes to Condensed Consolidated Financial Statements 

 

10

 

 

 

Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations 

 

31

 

 

 

Item 3 – Quantitative and Qualitative Disclosures About Market Risk 

 

43

 

 

 

Item 4 – Controls and Procedures 

 

44

 

 

 

Part II – OTHER INFORMATION 

 

 

 

 

 

Item 1 – Legal Proceedings 

 

45

 

 

 

Item 1A – Risk Factors 

 

45

 

 

 

Item 6 – Exhibits 

 

46

 

 

 

SIGNATURES 

 

47

 

 

 

2

Cautionary Note Concerning Forward-Looking Statements

 

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, including without limitation forward-looking statements made under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” involve risks and uncertainties. Any statements contained in this Quarterly Report that are not statements of historical fact may be deemed to be forward-looking statements.  Forward-looking statements include, without limitation, statements as to our future operating results; seasonality expectations; plans for the development, utilization or disposal of manufacturing facilities; future economic conditions; our expectations as to legal proceedings; the effect of our market and product development efforts; and expectations or plans relating to the implementation or realization of our strategic goals and future growth, including through potential future acquisitions. Forward-looking statements may also include, among other things, statements relating to future sales, earnings, cash flow, results of operations, use of cash and other measures of financial performance, statements relating to future dividend payments, as well as expected impact of the coronavirus disease 2019 (COVID-19) pandemic on the Company's businesses. Other forward-looking statements may be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “predicts,” “targets,” “forecasts,” “strategy,” and other words of similar meaning in connection with the discussion of future operating or financial performance. These statements are based on current expectations, estimates and projections about the industries in which we operate, and the beliefs and assumptions made by management. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Accordingly, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance.  Readers should refer to the discussions under “Risk Factors” contained in our Annual Report on Form 10-K for the fiscal year ended August 31, 2019 concerning certain factors that could cause our actual results to differ materially from the results anticipated in such forward-looking statements, as well as the supplement to those discussions contained in Part II, Item 1A of this Quarterly Report on Form 10-Q. These Risk Factors are hereby incorporated by reference into this Quarterly Report.

 

 

3

Item 1 — Unaudited Condensed Consolidated Financial Statements

 

CHASE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

In thousands, except share and per share amounts

 

 

 

 

 

 

 

 

 

 

 

February 29, 

 

August 31, 

 

 

 

2020

    

2019

 

ASSETS

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

67,664

 

$

47,771

 

Accounts receivable, less allowance for doubtful accounts of $822 and $739

 

 

38,243

 

 

39,324

 

Inventory

 

 

39,185

 

 

42,354

 

Prepaid expenses and other current assets

 

 

2,815

 

 

2,418

 

Assets held for sale

 

 

1,064

 

 

1,064

 

Prepaid income taxes

 

 

1,913

 

 

1,451

 

Total current assets

 

 

150,884

 

 

134,382

 

 

 

 

 

 

 

 

 

Property, plant and equipment, less accumulated depreciation of $51,655 and $49,730

 

 

27,375

 

 

29,326

 

 

 

 

 

 

 

 

 

Other Assets

 

 

 

 

 

 

 

Goodwill

 

 

82,175

 

 

81,986

 

Intangible assets, less accumulated amortization of $72,163 and $65,862

 

 

46,932

 

 

52,704

 

Cash surrender value of life insurance

 

 

4,450

 

 

4,450

 

Restricted investments

 

 

1,325

 

 

1,260

 

Deferred income taxes

 

 

3,837

 

 

3,804

 

Operating lease right-of-use asset (Note 8)

 

 

9,256

 

 

 —

 

Other assets

 

 

35

 

 

56

 

Total assets

 

$

326,269

 

$

307,968

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

Accounts payable

 

$

14,681

 

$

12,105

 

Accrued payroll and other compensation

 

 

4,357

 

 

6,300

 

Accrued expenses

 

 

4,868

 

 

4,035

 

Total current liabilities

 

 

23,906

 

 

22,440

 

 

 

 

 

 

 

 

 

Operating lease long-term liabilities (Note 8)

 

 

6,648

 

 

 —

 

Deferred compensation

 

 

1,338

 

 

1,275

 

Accumulated pension obligation

 

 

9,879

 

 

10,485

 

Other liabilities

 

 

 —

 

 

217

 

Accrued income taxes

 

 

2,381

 

 

2,324

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

First Serial Preferred Stock, $1.00 par value: Authorized 100,000 shares; none issued

 

 

 —

 

 

 —

 

Common stock, $.10 par value: Authorized 20,000,000 shares; 9,448,620 shares at February 29, 2020 and 9,400,748 shares at August 31, 2019 issued and outstanding

 

 

945

 

 

940

 

Additional paid-in capital

 

 

15,882

 

 

14,351

 

Accumulated other comprehensive loss

 

 

(14,060)

 

 

(14,324)

 

Retained earnings

 

 

279,350

 

 

270,260

 

Total equity

 

 

282,117

 

 

271,227

 

Total liabilities and equity

 

$

326,269

 

$

307,968

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the condensed consolidated financial statements

4

CHASE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

In thousands, except share and per share amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

    

February 29, 2020

    

February 28, 2019

 

 

February 29, 2020

    

February 28, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

64,626

 

$

65,442

 

 

$

130,383

 

$

136,806

 

 

Royalties and commissions

 

 

956

 

 

1,189

 

 

 

2,001

 

 

2,328

 

 

 

 

 

65,582

 

 

66,631

 

 

 

132,384

 

 

139,134

 

 

Costs and Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products and services sold

 

 

40,666

 

 

43,213

 

 

 

82,449

 

 

89,788

 

 

Selling, general and administrative expenses

 

 

13,810

 

 

13,086

 

 

 

27,450

 

 

26,448

 

 

Operations optimization costs (Note 15)

 

 

60

 

 

 —

 

 

 

709

 

 

260

 

 

Loss on impairment of goodwill (Note 7)

 

 

 —

 

 

2,410

 

 

 

 —

 

 

2,410

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

11,046

 

 

7,922

 

 

 

21,776

 

 

20,228

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(56)

 

 

(162)

 

 

 

(111)

 

 

(366)

 

 

Other income (expense)

 

 

(185)

 

 

(828)

 

 

 

(789)

 

 

(1,122)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

10,805

 

 

6,932

 

 

 

20,876

 

 

18,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes (Note 17)

 

 

2,926

 

 

1,659

 

 

 

5,635

 

 

4,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

7,879

 

$

5,273

 

 

$

15,241

 

$

14,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders, per common and common equivalent share (Note 4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.83

 

$

0.56

 

 

$

1.62

 

$

1.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted

 

$

0.83

 

$

0.56

 

 

$

1.60

 

$

1.49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

9,355,821

 

 

9,332,288

 

 

 

9,353,985

 

 

9,330,929

 

 

Diluted

 

 

9,444,211

 

 

9,373,030

 

 

 

9,439,215

 

 

9,377,167

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annual cash dividends declared per share

 

 

 

 

 

 

 

 

$

0.80

 

$

0.80

 

 

 

See accompanying notes to the condensed consolidated financial statements

5

CHASE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

 

In thousands, except share and per share amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

    

February 29, 2020

    

February 28, 2019

 

February 29, 2020

    

February 28, 2019

 

 

Net income

 

$

7,879

 

$

5,273

 

$

15,241

 

$

14,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized (loss) gain on restricted investments, net of tax

 

 

(43)

 

 

13

 

 

(2)

 

 

(8)

 

 

Change in funded status of pension plans, net of tax

 

 

128

 

 

291

 

 

259

 

 

527

 

 

Foreign currency translation adjustment

 

 

(142)

 

 

1,144

 

 

1,395

 

 

538

 

 

Total other comprehensive (loss) income

 

 

(57)

 

 

1,448

 

 

1,652

 

 

1,057

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

7,822

 

$

6,721

 

$

16,893

 

$

15,153

 

 

         

See accompanying notes to the condensed consolidated financial statements

 

 

6

 

 

 

 

 

CHASE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

THREE MONTHS ENDED FEBRUARY 29, 2020 AND FEBRUARY 28, 2019

(UNAUDITED)

 

In thousands, except share and per share amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

Accumulated Other

 

 

 

 

Total

 

 

Common Stock

 

Paid-In

 

Comprehensive

 

Retained

 

Stockholders'

 

    

Shares

    

Amount

    

Capital

    

Income (Loss)

    

Earnings

    

Equity

Balance at November 30, 2018

 

9,402,706

 

$

940

 

$

13,608

 

$

(12,727)

 

$

246,372

 

$

248,193

Restricted stock grants, net of forfeitures

 

4,599

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 —

Amortization of restricted stock grants

 

 

 

 

 

 

 

415

 

 

 

 

 

 

 

 

415

Amortization of stock option grants

 

 

 

 

 

 

 

124

 

 

 

 

 

 

 

 

124

Exercise of stock options

 

5,018

 

 

 1

 

 

181

 

 

 

 

 

 

 

 

182

Change in funded status of pension plans, net of tax $101

 

 

 

 

 

 

 

 

 

 

291

 

 

 

 

 

291

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

1,144

 

 

 

 

 

1,144

Net unrealized gain (loss) on restricted investments, net of tax $3

 

 

 

 

 

 

 

 

 

 

13

 

 

 

 

 

13

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

5,273

 

 

5,273

Balance at February 28, 2019

 

9,412,323

 

$

941

 

$

14,328

 

$

(11,279)

 

$

251,645

 

$

255,635

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at November 30, 2019

 

9,423,946

 

$

942

 

$

15,063

 

$

(14,003)

 

$

271,471

 

$

273,473

Restricted stock grants, net of forfeitures

 

24,674

 

 

 3

 

 

(3)

 

 

 

 

 

 

 

 

 —

Amortization of restricted stock grants

 

 

 

 

 

 

 

594

 

 

 

 

 

 

 

 

594

Amortization of stock option grants

 

 

 

 

 

 

 

228

 

 

 

 

 

 

 

 

228

Change in funded status of pension plans, net of tax $47

 

 

 

 

 

 

 

 

 

 

128

 

 

 

 

 

128

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

(142)

 

 

 

 

 

(142)

Net unrealized gain (loss) on restricted investments, net of tax ($15)

 

 

 

 

 

 

 

 

 

 

(43)

 

 

 

 

 

(43)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

7,879

 

 

7,879

Balance at February 29, 2020

 

9,448,620

 

$

945

 

$

15,882

 

$

(14,060)

 

$

279,350

 

$

282,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the condensed consolidated financial statements

7

 

 

CHASE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

SIX MONTHS ENDED FEBRUARY 29, 2020 AND FEBRUARY 28, 2019

(UNAUDITED)

 

In thousands, except share and per share amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

Accumulated Other

 

 

 

 

Total

 

 

Common Stock

 

Paid-In

 

Comprehensive

 

Retained

 

Stockholders'

 

    

Shares

    

Amount

    

Capital

    

Income (Loss)

    

Earnings

    

Equity

Balance at August 31, 2018

 

9,396,947

 

$

939

 

$

13,104

 

$

(12,336)

 

$

245,049

 

$

246,756

Restricted stock grants, net of forfeitures

 

9,308

 

 

 1

 

 

(1)

 

 

 

 

 

 

 

 

 —

Amortization of restricted stock grants

 

 

 

 

 

 

 

795

 

 

 

 

 

 

 

 

795

Amortization of stock option grants

 

 

 

 

 

 

 

249

 

 

 

 

 

 

 

 

249

Exercise of stock options

 

7,022

 

 

 1

 

 

301

 

 

 

 

 

 

 

 

302

Common stock received for payment of stock option exercises

 

(954)

 

 

 —

 

 

(120)

 

 

 

 

 

 

 

 

(120)

Cash dividend on common stock, $0.80 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,522)

 

 

(7,522)

Change in funded status of pension plans, net of tax $184

 

 

 

 

 

 

 

 

 

 

527

 

 

 

 

 

527

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

538

 

 

 

 

 

538

Net unrealized gain (loss) on restricted investments, net of tax ($4)

 

 

 

 

 

 

 

 

 

 

(8)

 

 

 

 

 

(8)

Adoption of ASC 606

 

 

 

 

 

 

 

 

 

 

 

 

 

22

 

 

22

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

14,096

 

 

14,096

Balance at February 28, 2019

 

9,412,323

 

$

941

 

$

14,328

 

$

(11,279)

 

$

251,645

 

$

255,635

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at August 31, 2019

 

9,400,748

 

$

940

 

$

14,351

 

$

(14,324)

 

$

270,260

 

$

271,227

Restricted stock grants, net of forfeitures

 

45,311

 

 

 5

 

 

(5)

 

 

 

 

 

 

 

 

 —

Amortization of restricted stock grants

 

 

 

 

 

 

 

1,080

 

 

 

 

 

 

 

 

1,080

Amortization of stock option grants

 

 

 

 

 

 

 

456

 

 

 

 

 

 

 

 

456

Exercise of stock options

 

3,618

 

 

 —

 

 

123

 

 

 

 

 

 

 

 

123

Common stock received for payment of stock option exercises

 

(1,057)

 

 

 —

 

 

(123)

 

 

 

 

 

 

 

 

(123)

Cash dividend on common stock, $0.80 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,539)

 

 

(7,539)

Change in funded status of pension plans, net of tax $91

 

 

 

 

 

 

 

 

 

 

259

 

 

 

 

 

259

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

1,395

 

 

 

 

 

1,395

Net unrealized gain (loss) on restricted investments, net of tax ($1)

 

 

 

 

 

 

 

 

 

 

(2)

 

 

 

 

 

(2)

Adoption of ASU 2018-02 (Note 2)

 

 

 

 

 

 

 

 

 

 

(1,388)

 

 

1,388

 

 

 —

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

15,241

 

 

15,241

Balance at February 29, 2020

 

9,448,620

 

$

945

 

$

15,882

 

$

(14,060)

 

$

279,350

 

$

282,117

 

See accompanying notes to the condensed consolidated financial statements

 

8

CHASE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

In thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

    

 

February 29, 2020

    

February 28, 2019

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net income

 

 

$

15,241

 

$

14,096

 

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on impairment of goodwill

 

 

 

 —

 

 

2,410

 

 

Depreciation

 

 

 

2,041

 

 

2,491

 

 

Amortization

 

 

 

5,826

 

 

6,225

 

 

Provision (recovery) for allowance for doubtful accounts

 

 

 

81

 

 

(11)

 

 

Stock-based compensation

 

 

 

1,536

 

 

1,044

 

 

Realized (loss) gain on restricted investments

 

 

 

(28)

 

 

 4

 

 

Pension curtailment and settlement loss

 

 

 

 —

 

 

473

 

 

Deferred taxes

 

 

 

 —

 

 

(581)

 

 

Increase (decrease) from changes in assets and liabilities

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

 

1,169

 

 

3,003

 

 

Inventory

 

 

 

3,338

 

 

(5,651)

 

 

Prepaid expenses and other assets

 

 

 

(356)

 

 

(1,864)

 

 

Accounts payable

 

 

 

2,425

 

 

(2,764)

 

 

Accrued compensation and other expenses

 

 

 

(3,375)

 

 

(2,847)

 

 

Accrued income taxes

 

 

 

(437)

 

 

1,275

 

 

Net cash provided by operating activities

 

 

 

27,461

 

 

17,303

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(827)

 

 

(1,304)

 

 

Cost to acquire intangible assets

 

 

 

 —

 

 

(30)

 

 

Proceeds from sale of businesses

 

 

 

 —

 

 

400

 

 

Changes in restricted investments

 

 

 

(40)

 

 

(41)

 

 

Net cash used in investing activities

 

 

 

(867)

 

 

(975)