FORM 10-Q

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM 10-Q

                QUARTERLY REPORT UNDERPURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended March 31,September 30, 2002
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                          Commission File Number 2-5916

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                            CHASE GENERAL CORPORATION
                            -------------------------
             (Exact name of registrant as specified in its Charter)

Missouri                                                36-2667734
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State incorporation                        I.R.S. Employer Identification Number

                3600 Leonard Road, St. Joseph, Missouri                 64503
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                (Address of principal executive offices)               Telephone:Zip Code

               Registrant's telephone number, including area code:
                                 (816) 279-1625
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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   [X]X     No [ ]

As of April 30, 2002 there were 969,834 shares outstanding_____
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The number of the Registrant's
($1.00 par value)registrant's common stock.stock outstanding as of October 31, 2002
was 969,834.

                                        1



                            CHASE GENERAL CORPORATION

                                      Index

PART I - FINANCIAL INFORMATION

   Item 1.  Financial Statements

       Consolidated Condensed Balance Sheets - March 31, 2002
           (Unaudited) and June 30, 2001 ................................   3

       Consolidated Condensed Statements of Operations -
           Three months ended March 31, 2002 and 2001 (Unaudited) .......   5

       Consolidated Condensed Statements of Operations -
           Nine months ended March 31, 2002 and 2001 (Unaudited) ........   6

       Consolidated Condensed Statements of Cash Flows -
           Nine months ended March 31, 2002 and 2001 (Unaudited) ........   7

       Notes to Consolidated Condensed Financial Statements .............   8

   Item 2.  Management's Discussion and Analysis of Financial
           Condition and Results of Operations ..........................   9

PART II - OTHER INFORMATION

   Item 3.  Defaults Upon Senior Securities .............................  11

   Item 4.  Submission of matters to a vote of security holders .........  11

   Item 6.  Exhibits and Reports on Form 8-K ............................
PART I - FINANCIAL INFORMATION

   Item 1.  Financial Statements

       Condensed Consolidated Balance Sheets - September 30, 2002
           (Unaudited) and June 30, 2002 ...................................................................    3

       Condensed Consolidated Statements of Operations -
           Three months Ended September 30, 2002 and 2001 (Unaudited) ......................................    5

       Condensed Consolidated Statements of Cash Flows -
           Three months Ended September 30, 2002 and 2001 (Unaudited) ......................................    6

       Notes to Condensed Consolidated Financial Statements ................................................    7

   Item 2.  Management's Discussion and Analysis of Financial
           Condition and Results of Operations .............................................................    9

   Item 3. Quantitative and Qualitative Disclosures About Market Risk ......................................   11

   Item 4.  Controls and Procedures ........................................................................   11

PART II - OTHER INFORMATION

   Item 1.  Legal proceedings - None

   Item 2.  Changes In Securities and Use of Proceeds - None

   Item 3.  Defaults Upon Senior Securities ................................................................   12

   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 ...............................................................   12

           Exhibit 99.1 - Certification Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to
                   Section 906 of the Sarbanes-Oxley Act of 2002 ...........................................   13

Signatures .................................................................................................   14

Certifications .............................................................................................   15
2 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS CHASE GENERAL CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED CONDENSED BALANCE SHEETS March 31,September 30, 2002 and June 30, 20012002 ASSETS September 30, June 30, 2002 2002 ------------- ---------- (Unaudited)
ASSETS March 31, June 30, 2002 2001 --------- -------- CURRENT ASSETS Cash $ 238,856 $ 117,114 Trade receivables, net of allowance 103,756 100,494 Other receivables 7,053 7,053 Inventories: Finished goods 19,283 73,138 Goods in process 6,218 1,943 Raw materials 61,802 80,592 Packaging materials 64,003 64,536 Prepaid expense 8,587 34,606 Prepaid income taxes -- 11,220 ---------- ---------- Total current assets 509,558 490,696 ---------- ---------- PROPERTY AND EQUIPMENT - AT COST 1,121,853 1,117,639 Less accumulated depreciation 926,358 893,434 ---------- ---------- Total property and equipment 195,495 224,205 ---------- ---------- TOTAL ASSETS $ 705,053 $ 714,901CURRENT ASSETS Cash and cash equivalents $ 85,230 $ 188,528 Trade receivables, net of allowance of $11,439 and $9,834, respectively 133,374 121,918 Income tax receivable 14,535 7,053 Inventories: Finished goods 207,255 79,382 Goods in process 9,948 2,557 Raw materials 43,561 23,377 Packaging materials 99,865 60,635 Prepaid expense 2,491 22,110 Prepaid income taxes -- 1,316 ---------- ---------- Total current assets 596,259 506,876 ---------- ---------- PROPERTY AND EQUIPMENT - AT COST 1,101,729 1,146,035 Less accumulated depreciation 921,593 941,495 ---------- ---------- Total property and equipment 180,136 204,540 ---------- ---------- TOTAL ASSETS $ 776,395 $ 711,416 ========== ==========
3 LIABILITIES AND STOCKHOLDERS' EQUITY (Unaudited)
March 31,September 30, June 30, 2002 2001 --------- --------2002 ------------- ----------- (Unaudited) CURRENT LIABILITIES Accounts payable $ 29,284163,106 $ 46,002 Accrued expense 38,576 35,30166,600 Notes payable, Series B current maturities 51,010 --51,010 Accrued expenses 34,372 36,490 ----------- ----------- Total current liabilities 118,870 81,303 LONG-TERM LIABILITIES Notes payable, Series B, less current maturities above -- 77,672248,488 154,100 ----------- ----------- Total liabilities 118,870 158,975248,488 154,100 ----------- ----------- STOCKHOLDERS' EQUITY Capital stock issued and outstanding: Prior cumulative preferred stock, $5 par value: Series A (liquidation preference $1,297,500$1,312,500 and $1,275,000$1,305,000 respectively) 500,000 500,000 Series B (liquidation preference $1,252,500$1,267,500 and $1,230,000$1,260,000 respectively) 500,000 500,000 Cumulative preferred stock, $20 par value Series A (liquidation preference $3,072,982$3,102,250 and $3,029,083$3,087,616 respectively) 1,170,660 1,170,660 Series B (liquidation preference $500,798$505,566 and $493,643$503,182 respectively) 190,780 190,780 Common stock, $1 par value 969,834 969,834 Paid-in capital in excess of par 3,134,722 3,134,722 Retained earnings (deficit) (5,879,813) (5,910,070)(5,938,089) (5,908,680) ----------- ----------- Total stockholders' equity 586,183 555,926527,907 557,316 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 705,053776,395 $ 714,901711,416 =========== ===========
The accompanying notes are an integral part of these condensed consolidated condensed financial statements. 4 CHASE GENERAL CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended September 30 ---------------------- 2002 2001 --------- --------- NET SALES $ 326,374 $ 311,977 COST OF SALES 261,403 241,638 --------- --------- Gross profit on sales 64,971 70,339 --------- --------- OPERATING EXPENSES Selling expense 43,972 49,258 General and administrative expense 47,808 49,500 --------- --------- Total operating expenses 91,780 98,758 --------- --------- Net loss from operations (26,809) (28,419) OTHER INCOME (EXPENSE) (9,924) (457) --------- --------- Net loss before income taxes (36,733) (28,876) CREDIT FOR INCOME TAXES (7,324) (6,000) --------- --------- NET LOSS (29,409) (22,876) Preferred dividends (32,018) (32,018) --------- --------- Net loss applicable to common shareholders $ (61,427) $ (54,894) ========= ========= LOSS PER SHARE OF COMMON STOCK $ (.06) $ (.06) ========= ========= The accompanying notes are an integral part of these condensed consolidated financial statements. 5 CHASE GENERAL CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months Ended March 31 --------------------September 30 ----------------------- 2002 2001 ---- -------------- ---------- NET SALES $240,665CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ 217,524 COST OF SALES 237,317 237,980 --------(29,409) $ (22,876) Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 8,853 12,016 Provision for bad debts 1,605 1,605 Loss on disposition of equipment 9,747 -- Effects of changes in operating assets and liabilities: Receivables (20,543) (63,902) Inventories (194,678) (167,632) Prepaid expense 20,935 25,892 Accounts payable 96,506 163,061 Accrued expenses (2,118) 10,196 --------- Gross profit (loss) on sales 3,348 (20,456) -------- ---------- OPERATING EXPENSES Selling expense 48,401 49,119 General and administrative expense 53,567 51,613 -------- --------- Total operating expenses 101,968 100,732 -------- --------- Net losscash used in operating activities (109,102) (41,640) --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from operations (98,620) (121,188) OTHER INCOME (EXPENSE) (501) (1,411) --------sale of equipment 5,500 -- (Purchases) credit of property and equipment 304 (3,637) --------- --------- Net loss before income taxes (99,121) (122,599) CREDIT FOR INCOME TAXES (33,689) (41,943) --------cash provided by (used in) investing activities 5,804 (3,637) --------- --------- NET LOSS (65,432) (80,656) Preferred dividends 32,018 32,018 --------DECREASE IN CASH AND CASH EQUIVALENTS (103,298) (45,277) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 188,528 117,114 --------- Net loss applicable to common shareholders $(97,450) $(112,674) ========--------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 85,230 $ 71,837 ========= LOSS PER SHARE OF COMMON STOCK $ (.10) $ (.12) ======== =========
The accompanying notes are an integral part of these consolidated condensed financial statements. 5 CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
Nine Months Ended March 31 ----------------- 2002 2001 ---- ---- NET SALES $1,532,114 $1,711,307 COST OF SALES 1,147,340 1,333,944 ---------- ---------- Gross profit on sales 384,774 377,363 ---------- ---------- OPERATING EXPENSES Selling expense 187,569 194,840 General and administrative expense 157,749 148,084 ---------- ---------- Total operating expenses 345,318 342,924 ---------- ---------- Net income from operations 39,456 34,439 OTHER INCOME (EXPENSE) (1,664) (4,007) ---------- ---------- Net income before income taxes 37,792 30,432 PROVISION FOR INCOME TAXES 7,535 6,068 ---------- ---------- NET INCOME 30,257 24,364 Preferred dividends 96,054 96,054 ---------- ---------- Net loss applicable to common shareholders $ (65,797) $ (71,690) ========== ========== LOSS PER SHARE OF COMMON STOCK $ (.07) $ (.07) ============ ==========
The accompanying notes are an integral part of these consolidated condensed financial statements. 6 CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended March 31 -------------------- 2002 2001 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 30,257 $ 24,364 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 32,925 32,082 Provision for bad debts 4,815 4,815 Effects of changes in operating assets and liabilities: Accounts receivables (8,077) 25,800 Accounts payable (16,718) 1,621 Inventories 68,903 90,112 Prepaid expense 26,019 9,044 Prepaid income taxes 11,220 -- Accrued expense 3,275 (5,463) ----------- ----------- Net cash provided by operating activities 152,619 182,375 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (4,215) (53,925) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long-term debt (26,662) (50,000) ----------- ----------- NET INCREASE IN CASH 121,742 78,450 CASH, BEGINNING OF PERIOD 117,114 146,779 ----------- ----------- CASH, END OF PERIOD $ 238,856 $ 225,229 =========== =========== SUPPLEMENTAL DISCLOSURES Interest paid $ 6,161 $ 8,710 =========== =========== Income taxes paid $ -- $ 7,525 =========== ===========
The accompanying notes are an integral part of these consolidated condensed financial statements. 7 CHASE GENERAL CORPORATION AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited) NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION InOrganization Chase General Corporation and subsidiary (`the Company') operates in the confectionery products industry. As of September 30, 2002, the Company's operations were primarily conducted through its wholly-owned subsidiary, Dye Candy Company. Basis of Presentation The accompanying condensed consolidated financial statements are unaudited and do not include certain information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. However, in the opinion of management, the accompanying unaudited interim consolidated condensed financial statements include all adjustments, (consistingconsisting only of normal adjustments)recurring adjustments considered necessary for a fair presentation ofto present fairly the Company's consolidated financial position of Chase General Corporation as of March 31, 2002 and June 30, 2001 and the results of its operations, for the nine months and three months ended March 31, 2002 and 2001, and its cash flows for the nine months ended March 31, 2002 and 2001. The accompanying unaudited consolidated condensedhave been included. These interim financial statements have been preparedshould be read in accordanceconjunction with generally accepted accounting principlesthe consolidated financial statements and related notes included in the Company's 2002 Annual Report on Form 10-K. Results for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Interim resultsperiods are not necessarily indicative of trends or of results for a fullyfull year. A summary of the Company's significant accounting policies is presented on pages 19 and 20 (not shown) of its 20012002 Annual Report to Shareholders. Users of financial information produced for interim periods are encouraged to refer to the footnotes contained in the Annual Report to Shareholders when reviewing interim financial results. There has been no material change in the accounting policies followed by the Company during the ninethree months ended March 31,September 30, 2002. Revenue Recognition The Company recognizes revenues as product is shipped to the customers. Net sales are comprised of the total sales billed during the period less the estimated returns, customer allowances, freight paid on these shipped goods, and customer discounts. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceed the fair value of the assets. 7 CHASE GENERAL CORPORATION AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 2 - EARNINGS (LOSS) PER SHARE The earnings (loss) per share was computed on the weighted average of outstanding common shares as follows:
Nine Months Ended Three Months Ended March 31 March 31 ----------------------- -----------------------September 30 --------------------------- 2002 2001 2002 2001 ---- ---- ---- ---------------- ------------ Net income (loss) $ 30,257(29,409) $ 24,364 $(65,432) $ (80,656) -------- -------- -------- ---------(22,876) ------------ ------------ Preferred dividend requirements: 6% Prior Cumulative Preferred, $5 par value 45,000 45,000 15,000 15,000 5% Convertible Cumulative Preferred, $20 par value 51,054 51,054 17,018 17,018 -------- -------- -------- --------------------- ------------ Total dividend requirements 96,054 96,054 32,018 32,018 -------- -------- -------- --------------------- ------------ Net loss applicable to common shareholders $(65,797) $(71,690) $(97,450) $(112,674) ======== ======== ======== =========$ (61,427) $ (54,894) ============ ============ Weighted average of outstanding common shares 969,834 969,834 969,834 969,834 ======== ======== ======== ===================== ============ Loss per share $ (.07)(.06) $ (.07) $ (.10) $ (.12) ======== ======== ======== =========(.06) ============ ============
No computation was made on common stock equivalents outstanding because loss per share would be anti-dilutive. 8 ITEM 2 CHASE GENERAL CORPORATION AND SUBSIDIARY ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL Chase General and its wholly-owned subsidiary are engaged in the manufacture of confectionery products which are sold primarily to wholesale houses, grocery accounts, vendors, and repackers. RESULTS OF OPERATIONS Three Months Ended March 31,FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 and 2001 - ------------------------------------------ Sales: The Company's netCOMPARED TO THE THREE MONTHS ENDED SEPTEMBER 30, 2001: Income from Operations Net sales of $240,665 for period ended March 31, 2002 increased 11% over net sales of $217,524 for the three months ended March 31,September 30, 2002 increased 4.5% to $326 thousand from $312 thousand in the three months ended September 30, 2001. ThisThe increase was primarily attributable to improved sales with a wider distribution of mini mash product from a major customer. The gross profit margin was 19.9% in the three month period is normallymonths ended September 30, 2002 compared to 22.6% in the Company's slowest season. The Company gained net salescomparable 2001 period. Revamping packaging to a clam shell, and manufacturing labor rate increases, had the impact of reducing the 2002 gross profit margin percentage by 12%. Selling, general and administrative expenses decreased 7%, primarily due to a major customer increasing distribution sites of the mini mash bar. Expenses: Selling expenses decreased 1.46% compared to selling expensesreduced office personnel and lower sales incentive bonuses. Loss from operations for the three months ended March 31, 2001. General and administrative expenses increased 3.78% compared to these expensesSeptember 30, 2002 was $26,809, which represented a 6% decrease from the $28,419 loss reported during the comparable 2001 period. LIQUIDITY AND CAPITAL RESOURCES As of September 30, 2002, the Company has no commitments for capitalized expenditures. Cash decreased $103,299 during the current three month period as a result of normal seasonal build-up of inventories for the busy season. The additional expense for the three months ended March 31, 2001,September 30, 2002 included a $9,747 loss on disposition of fixed assets. The Company reduced several items in the fleet that caused this loss. Inventories increased $194,678 for this three month period ending September 30, 2002 as a resultpart of website maintenance costs and increased health insurance premiums. Nine Months ended March 31, 2002 and 2001 - ----------------------------------------- Sales: The Company had no unusual transactions for the nine months ended March 31, 2002. The Company realized a gross profit margin of 25.11% for the nine months ended March 31, 2002 as compared to 22.05% for the same period ended a year ago. Consolidated net sales for the nine months ended March 31, 2001 of $1,5352,114, $1,532,114 were 10% below the $1,711,307 in 2001's first nine months. The improved gross profit was due to lower labor costs, equipment repairs and utilities. The loss in net sales was due to less repeat sales from one customer who closed several retail outlets in Chase's territory. Expenses: Selling, general and administrative expenses were 22.5% of sales in the nine month period ended March 31, 2002 compared to 20% in the first nine months of 2001. Additional costs for a computer consultant maintaining the Company's website and health insurance premiums caused the increase in administrative costs for 2002. Inventories at March 31, 2002 were $68,900 lower than at June 30, 2001 due to the Company being in its slower business cycle. In addition, accounts payable and prepaid expenses were reduced $54,000 during this period.normal seasonal build-up. 9 ITEM 2 CHASE GENERAL CORPORATION AND SUBSIDIARY ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) LIQUIDITY AND CAPITAL RESOURCES As of March 31,(CONTINUED) The Company believes that cash flow from Dye Candy Company's operating activities and cash on hand will be adequate to meet its liquidity requirements. Cash and cash equivalents were $85,229 at September 30, 2002 the Company has no commitments for capitalized expenditures. Cash increased $121,700 duringcompared to $188,528 at June 30, 2002. Working capital at September 30, 2002 was $347,770 and the current nine month period asratio was 2.4 to 1 compared to working capital at June 30, 2002 of $352,776 and a resultcurrent ratio of completing the3.3 to 1. The decrease in working capital is primarily due to start of busy season and controlling overhead.inventory build up. CASH FLOW FROM OPERATING ACTIVITIES Cash used by operating activities in the three months ended September 30, 2002 was $109,103 compared to cash used of $41,640 in the three months ended September 30, 2001. Accounts receivable and inventories increased by $20,543 and $194,678, respectively, in the three months ended September 30, 2002. MARKET RISK The Company's debt securities with a stated interest rate are not subject to market risk for changes in interest rates. There have been no material changes from the information provided in the June 30, 2002 Form 10-K. FORWARD-LOOKING STATEMENTS This report does not contain forward-looking statements. 10 CHASE GENERAL CORPORATION AND SUBSIDIARY ITEM 3. - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK See the "Market Risk" section under Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations. ITEM 4. - CONTROLS AND PROCEDURES Chase General's chief financial officer is charged with making an evaluation of Chase General's disclosure controls and procedures. These controls and procedures are designed to ensure that information required to be disclosed in reports mandated by the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the required time periods. Additionally, these controls and procedures are designed to ensure that the appropriate information required to be disclosed in the reports is accumulated and communicated to Chase General's management, including Chase General's chief executive officer, to allow for timely decisions regarding disclosure. Chase General's chief financial officer has concluded, based upon his evaluation of these controls and procedures as of September 30, 2002, that Chase General's financial disclosure controls and procedures are effective. Chase General's chief financial officer is also charged with making an evaluation as to the effectiveness of the design and operation of Chase General's internal controls and procedures for financial reporting purposes. Chase General's chief financial officer has concluded, based upon his evaluation of these controls and procedures as of September 30, 2002, that Chase General's internal controls and procedures are effective. Additionally, there have been no significant changes in Chase General's internal controls or in other factors that could significantly affect these controls subsequent to the date of his evaluation. 11 PART II. OTHER INFORMATION CHASE GENERAL CORPORATION AND SUBSIDIARY ItemITEM 3. DEFAULTS UPON SENIOR SECURITIES a. None b. The total cumulative preferred stock dividends contingency at March 31,September 30, 2002 is $6,123,780. Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS a. The annual meeting of shareholders scheduled for January 14, 2002 was not held due to the lack of receiving the required number of proxies to hold the meeting. Item$6,187,816 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. a. Exhibits - None required99.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. b. Reports on Form 8-K: There were no reports on Form 8-K filed during January, February,July, August and March,September, 2002. SIGNATURES 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. CHASE GENERAL CORPORATION ------------------------- Registrant 5-14-02 /s/ Barry M. Yantis - -------------------- -------------------------------- Date Barry M. Yantis President and Chief Financial Officer 1112