UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 26, 2016
OCWEN FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
| Florida | 1-13219 | 65-0039856 | ||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1661 Worthington Road, Suite 100
West Palm Beach, Florida 33409
(Address of principal executive offices)
Registrant’s telephone number, including area code: (561) 682-8000
Not applicable.
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02 | Results of Operations and Financial Condition. |
On October 26, 2016, Ocwen Financial Corporation issued a press release announcing its results for the third quarter ended September 30, 2016. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information contained under Item 2.02 in this Current Report, including Exhibit 99.1, is being furnished and, as a result, such information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit | ||
| Number | Description | |
| Exhibit 99.1 | Press Release of Ocwen Financial Corporation dated October 26, 2016 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
OCWEN FINANCIAL CORPORATION (Registrant) | ||
| Date: October 26, 2016 | By: | /s/ Michael R. Bourque, Jr. |
| Michael R. Bourque, Jr. | ||
| Chief Financial Officer | ||
(On behalf of the Registrant and as its principal financial officer) | ||
Exhibit 99.1
 |
Ocwen Financial Corporation® |
FOR IMMEDIATE RELEASE
OCWEN FINANCIAL ANNOUNCES OPERATING RESULTS
FOR THIRD QUARTER 2016
| • | Reported GAAP quarterly net income of $9.5 million, marking Ocwen’s first quarterly profit since Q2 2015 | |
| • | Servicing segment generated $33.2 million in pre-tax profit | |
| • | Quarterly mortgage lending volume grew 8% over the prior quarter | |
| • | Automotive Capital Services inventory finance receivables grew 66% over prior quarter | |
| • | Generated Cash from Operating Activities of $178 million |
West Palm Beach, FL – (October 26, 2016) Ocwen Financial Corporation, (NYSE:OCN) (“Ocwen” or the “Company”), a leading financial services holding company, today reported GAAP net income of $9.5 million, or $0.08 per share, for the three months ended September 30, 2016.
Third Quarter 2016 Results
Pre-tax income for the third quarter of 2016 was $2.4 million, a $98.8 million improvement from the second quarter of 2016. Pre-tax results for the quarter include a number of significant items, including but not limited to: $12.0 million of gains from the execution of servicer “clean up” call rights, $5.7 million from the sale of agency mortgage servicing rights (“MSRs”) on approximately $3.3 billion of unpaid principal balance (“UPB”), $(15.1) million of third-party monitor costs, $(10.0) million of additional reserves for the potential California regulatory settlement and $(7.0) million of incremental reserves for the previously disclosed letter dating remediation based on final submitted claims. For the quarter, the Company generated cash from operating activities of $178 million, an increase of $147 million versus the prior quarter. The Company ended the quarter with $264 million in cash, up $44.6 million from June 30, 2016. As of September 30, 2016, the Company had not yet paid various settlement amounts, including but not limited to the $30 million Fisher settlements announced in June and the $22 million letter dating remediation.
The Servicing segment recorded $33.2 million of pre-tax income on strong performance under the Making Home Affordable streamline modification program, significant operating cost improvements, gains from the execution of servicer “clean up” call rights and MSR sales and continued reductions in advances and match funded advances. This quarterly profit for the Servicing segment represents a $47.9 million improvement versus the second quarter of 2016.
| 1 |
The Lending segment recorded $3.6 million of pre-tax income for the third quarter of 2016, a $3.9 million decline versus the prior quarter on lower gain on sale margins. Quarterly mortgage lending volume grew 8% over the prior quarter.
The Automotive Capital Services business continued to grow, increasing inventory finance receivables outstanding by $11 million or 66%. As of October 24, our auto inventory finance business is now operating in 32 markets with 57 active auto dealerships and has approved credit facilities of $67 million.
“We are very pleased with the financial result this quarter, recording our first quarterly profit since the second quarter of 2015. We saw terrific execution from our Servicing team, which completed more than 21,000 modifications in the quarter, successfully delivered $12.0 million of gains on servicer “clean up” call rights transactions and continued to reduce operating costs. Additionally, our Automotive Capital Services business continues to grow and move closer to profitability. Our mortgage lending business saw growth in origination volume, but we must improve margins,” commented Ron Faris, President and CEO.
Phyllis Caldwell, who assumed the role of independent Chairwoman of the Board of Directors of Ocwen on March 15, 2016, added, “We remain focused on putting legacy matters behind us. We received the much awaited Standard & Poor’s upgrade to our servicer ranking in August. We continue to progress towards a potential resolution with the California Department of Business Oversight to end the current consent order and associated third party auditor before year-end. We are also continuing to achieve benchmarks and meet necessary conditions that we believe will result in the other remaining third-party monitorships concluding at their scheduled end dates.”
Ms. Caldwell continued, “I am also proud to say that despite some of the challenges of the past, we have continued to invest in our corporate culture, risk management, compliance, service excellence and technology. We have maintained our leadership in helping families struggling with their mortgage payments as evidenced by our number one status in the HAMP program. We are also making progress in building our new asset generation businesses. Most importantly, the entire Ocwen team is devoted to working in the best interest of homeowners and investors to deliver positive outcomes.”
Additional Q3 2016 Business Highlights
| • | Completed 21,070 modifications in the quarter, 63% of which were HAMP modifications. 38% of modifications included some form of principal reduction. |
| • | Delinquencies decreased from 11.9% at June 30, 2016 to 11.4% at September 30, 2016, primarily driven by higher collections and loss mitigation efforts. |
| • | In the third quarter of 2016, Ocwen originated forward and reverse mortgage loans with unpaid principal balance of $1.2 billion and $213.0 million, respectively. |
| • | Our reverse mortgage portfolio ended the quarter with an estimated $97.5 million in undiscounted future gains from future draws on existing loans. Neither the anticipated future gains nor the future funding liability are included in the Company’s financial statements. |
| • | Reduced CFPB consumer complaints by 28%, the largest reduction of any major mortgage company, for the three month period from May to July of 2015 to the same three month period of 2016. |
| • | Conducted successful community outreach programs with NID Housing Counseling and NAACP in Sacramento and San Bernardino, California and Des Moines, Washington. |
| • | The constant pre-payment rate (CPR) increased from 14.2% in the second quarter of 2016 to 15.0% in the third quarter of 2016. In the third quarter of 2016, prime CPR was 19.7%, and non-prime CPR was 12.0%. |
| 2 |
Webcast and Conference Call
Ocwen will host a webcast and conference call on Wednesday, October 26, 2016, at 5 p.m., Eastern Time, to discuss its financial results for the third quarter of 2016. The conference call will be webcast live over the internet from the Company’s website at www.Ocwen.com, click on the “Shareholder Relations” section. A replay of the conference call will be available via the website approximately two hours after the conclusion of the call and will remain available for approximately 30 days.
About Ocwen Financial Corporation
Ocwen Financial Corporation is a financial services holding company which, through its subsidiaries, originates and services loans. We are headquartered in West Palm Beach, Florida, with offices throughout the United States and in the U.S. Virgin Islands and operations in India and the Philippines. We have been serving our customers since 1988. We may post information that is important to investors on our website (www.Ocwen.com).
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology.
Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Our business has been undergoing substantial change which has magnified such uncertainties. Readers should bear these factors in mind when considering such statements and should not place undue reliance on such statements. Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those suggested by forward-looking statements and this may happen again.
Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the following: our servicer and credit ratings as well as other actions from various rating agencies, including the impact of downgrades of our servicer and credit ratings; adverse effects on our business as a result of regulatory investigations or settlements; reactions to the announcement of such investigations or settlements by key counterparties; increased regulatory scrutiny and media attention, uncertainty related to claims, due to rumors or otherwise, litigation and investigations brought by government agencies and private parties regarding our servicing, foreclosure, modification and other practices, including uncertainty related to past, present or future investigations and settlements with state regulators, the CFPB, State Attorneys General, the SEC, Department of Justice or HUD and actions brought under the False Claims Act by private parties on behalf of the United States of America regarding incentive and other payments made by governmental entities; any adverse developments in existing legal proceedings or the initiation of new legal proceedings; our ability to effectively manage our regulatory and contractual compliance obligations; our ability to contain and reduce our operating costs, including our ability to successfully execute on our cost improvement initiative; the adequacy of our financial resources, including our sources of liquidity and ability to sell, fund and recover advances, repay borrowings and comply with debt covenants, including the financial and other covenants contained in them; volatility in our stock price; the characteristics of our servicing portfolio, including prepayment speeds along with delinquency and advance rates; our ability to successfully modify delinquent loans, manage foreclosures and sell foreclosed properties; uncertainty related to legislation, regulations, regulatory agency actions, government programs and policies, industry initiatives and evolving best servicing practices; as well as other risks detailed in Ocwen’s reports and filings with the Securities and Exchange Commission (SEC), including its annual report on Form 10-K for the year ended December 31, 2015 and its current and quarterly reports since such date. Anyone wishing to understand Ocwen’s business should review its SEC filings. Ocwen’s forward-looking statements speak only as of the date they are made and, we disclaim any obligation to update or revise forward-looking statements whether as a result of new information, future events or otherwise.
| 3 |
FOR FURTHER INFORMATION CONTACT:
| Investors: | Media: | |
| Stephen Swett | John Lovallo | Dan Rene |
| T: (203) 614-0141 | T: (917) 612-8419 | T: (202) 973 -1325 |
| E: shareholderrelations@ocwen.com | E: jlovallo@levick.com | E:drene@levick.com |
Residential Servicing Statistics (Unaudited)
(Dollars in thousands)
| At or for the Three Months Ended | ||||||||||||||||||||
| September 30, 2016 | June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | ||||||||||||||||
| Total unpaid principal balance of loans and REO serviced | $ | 216,892,002 | $ | 229,276,001 | $ | 237,081,036 | $ | 250,966,112 | $ | 288,069,149 | ||||||||||
| Non-performing loans and REO serviced as a % of total UPB (1) | 11.4 | % | 11.9 | % | 13.0 | % | 13.7 | % | 13.1 | % | ||||||||||
| Prepayment speed (average CPR)(2) (3) | 15.0 | % | 14.2 | % | 12.7 | % | 13.3 | % | 14.7 | % | ||||||||||
| (1) | Performing loans include those loans that are less than 90 days past due and those loans for which borrowers are making scheduled payments under loan modification, forbearance or bankruptcy plans. We consider all other loans to be non-performing. |
| (2) | Average CPR for the prior three months. CPR measures prepayments as a percentage of the current outstanding loan balance expressed as a compound annual rate. |
| (3) | Average CPR for the three months ended September 30, 2016 includes 19.7% for prime loans and 12.0% for non-prime loans. |
| 4 |
| Segment Results (Unaudited) (Dollars in thousands) | ||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Servicing | ||||||||||||||||
| Revenue | $ | 319,080 | $ | 374,936 | $ | 951,727 | $ | 1,269,269 | ||||||||
| Expenses | 204,434 | 318,439 | 741,706 | 940,764 | ||||||||||||
| Other expense, net | (81,475 | ) | (69,239 | ) | (259,815 | ) | (249,947 | ) | ||||||||
| Income (loss) before income taxes | 33,171 | (12,742 | ) | (49,794 | ) | 78,558 | ||||||||||
| Lending | ||||||||||||||||
| Revenue | 30,696 | 29,662 | 89,255 | 106,721 | ||||||||||||
| Expenses | 27,735 | 23,126 | 78,091 | 73,497 | ||||||||||||
| Other income, net | 628 | 2,052 | 1,958 | 5,793 | ||||||||||||
| Income before income taxes | 3,589 | 8,588 | 13,122 | 39,017 | ||||||||||||
| Corporate Items and Other | ||||||||||||||||
| Revenue | 9,672 | 348 | 22,277 | 2,709 | ||||||||||||
| Expenses | 39,509 | 46,161 | 165,556 | 104,133 | ||||||||||||
| Other expense, net | (4,559 | ) | (5,951 | ) | (16,208 | ) | (16,740 | ) | ||||||||
| Loss before income taxes | (34,396 | ) | (51,764 | ) | (159,487 | ) | (118,164 | ) | ||||||||
| Corporate Eliminations | ||||||||||||||||
| Revenue | — | — | — | (58 | ) | |||||||||||
| Expenses | — | — | — | (58 | ) | |||||||||||
| Other income (expense), net | — | — | — | — | ||||||||||||
| Income (loss) before income taxes | — | — | — | — | ||||||||||||
| Consolidated income (loss) before income taxes | $ | 2,364 | $ | (55,918 | ) | $ | (196,159 | ) | $ | (589 | ) | |||||
| 5 |
| OCWEN FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (UNAUDITED) | ||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenue | ||||||||||||||||
| Servicing and subservicing fees | $ | 302,235 | $ | 360,017 | $ | 906,993 | $ | 1,203,541 | ||||||||
| Gain on loans held for sale, net | 25,645 | 27,298 | 69,074 | 116,934 | ||||||||||||
| Other revenues | 31,568 | 17,631 | 87,192 | 58,166 | ||||||||||||
| Total revenue | 359,448 | 404,946 | 1,063,259 | 1,378,641 | ||||||||||||
| Expenses | ||||||||||||||||
| Compensation and benefits | 92,942 | 102,612 | 287,613 | 313,599 | ||||||||||||
| Amortization of mortgage servicing rights | (2,558 | ) | 18,108 | 18,595 | 88,188 | |||||||||||
| Servicing and origination | 63,551 | 101,545 | 249,230 | 255,905 | ||||||||||||
| Technology and communications | 25,941 | 37,182 | 85,519 | 117,793 | ||||||||||||
| Professional services | 65,489 | 62,428 | 257,795 | 191,728 | ||||||||||||
| Occupancy and equipment | 16,760 | 31,043 | 62,213 | 85,530 | ||||||||||||
| Other | 9,553 | 34,808 | 24,388 | 65,593 | ||||||||||||
| Total expenses | 271,678 | 387,726 | 985,353 | 1,118,336 | ||||||||||||
| Other income (expense) | ||||||||||||||||
| Interest income | 5,158 | 5,693 | 14,488 | 16,306 | ||||||||||||
| Interest expense | (110,961 | ) | (118,313 | ) | (308,083 | ) | (362,606 | ) | ||||||||
| Gain on sale of mortgage servicing rights, net | 5,661 | 41,246 | 7,689 | 97,958 | ||||||||||||
| Other, net | 14,736 | (1,764 | ) | 11,841 | (12,552 | ) | ||||||||||
| Total other expense, net | (85,406 | ) | (73,138 | ) | (274,065 | ) | (260,894 | ) | ||||||||
| Income (loss) before income taxes | 2,364 | (55,918 | ) | (196,159 | ) | (589 | ) | |||||||||
| Income tax expense (benefit) | (7,110 | ) | 10,832 | (7,214 | ) | 21,866 | ||||||||||
| Net income (loss) | 9,474 | (66,750 | ) | (188,945 | ) | (22,455 | ) | |||||||||
| Net income attributable to non-controlling interests | (83 | ) | (119 | ) | (373 | ) | (321 | ) | ||||||||
| Net income (loss) attributable to Ocwen stockholders | $ | 9,391 | $ | (66,869 | ) | $ | (189,318 | ) | $ | (22,776 | ) | |||||
| Income (loss) per share attributable to Ocwen stockholders | ||||||||||||||||
| Basic | $ | 0.08 | $ | (0.53 | ) | $ | (1.53 | ) | $ | (0.18 | ) | |||||
| Diluted | 0.08 | (0.53 | ) | (1.53 | ) | (0.18 | ) | |||||||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 123,986,987 | 125,383,639 | 123,991,343 | 125,322,742 | ||||||||||||
| Diluted | 124,134,507 | 125,383,639 | 123,991,343 | 125,322,742 | ||||||||||||
| 6 |
| OCWEN FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) (UNAUDITED) | ||||||||
| September 30, 2016 | December 31, 2015 | |||||||
| Assets | ||||||||
| Cash | $ | 263,534 | $ | 257,272 | ||||
| Mortgage servicing rights ($696,108 and $761,190 carried at fair value) | 1,036,669 | 1,138,569 | ||||||
| Advances, net | 289,014 | 444,298 | ||||||
| Match funded advances | 1,534,322 | 1,706,768 | ||||||
| Loans held for sale ($302,114 and $309,054 carried at fair value) | 339,765 | 414,046 | ||||||
| Loans held for investment - Reverse mortgages, at fair value | 3,339,641 | 2,488,253 | ||||||
| Receivables, net | 279,883 | 286,981 | ||||||
| Premises and equipment, net | 62,701 | 57,626 | ||||||
| Other assets ($20,660 and $14,352 carried at fair value) | 439,921 | 586,495 | ||||||
| Total assets | $ | 7,585,450 | $ | 7,380,308 | ||||
| Liabilities and Equity | ||||||||
| Liabilities | ||||||||
| Match funded liabilities | $ | 1,365,532 | $ | 1,584,049 | ||||
| Financing liabilities ($3,719,142 and $2,933,066 carried at fair value) | 3,828,019 | 3,089,255 | ||||||
| Other secured borrowings, net | 663,170 | 762,411 | ||||||
| Senior unsecured notes, net | 346,511 | 345,511 | ||||||
| Other liabilities | 718,831 | 744,444 | ||||||
| Total liabilities | 6,922,063 | 6,525,670 | ||||||
| Equity | ||||||||
| Ocwen Financial Corporation (Ocwen) stockholders’ equity | ||||||||
| Common stock, $.01 par value; 200,000,000 shares authorized; 123,989,954 and 124,774,516 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 1,240 | 1,248 | ||||||
| Additional paid-in capital | 524,725 | 526,148 | ||||||
| Retained earnings | 136,611 | 325,929 | ||||||
| Accumulated other comprehensive loss, net of income taxes | (1,500 | ) | (1,763 | ) | ||||
| Total Ocwen stockholders’ equity | 661,076 | 851,562 | ||||||
| Non-controlling interest in subsidiaries | 2,311 | 3,076 | ||||||
| Total equity | 663,387 | 854,638 | ||||||
| Total liabilities and equity | $ | 7,585,450 | $ | 7,380,308 | ||||
| 7 |
| OCWEN FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (UNAUDITED) | ||||||||
| For the Nine Months Ended September 30, | ||||||||
| 2016 | 2015 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (188,945 | ) | $ | (22,455 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Amortization of mortgage servicing rights | 18,595 | 88,188 | ||||||
| Loss on valuation of mortgage servicing rights, at fair value | 63,609 | 73,257 | ||||||
| Impairment of mortgage servicing rights | 37,164 | 25,052 | ||||||
| Gain on sale of mortgage servicing rights | (7,689 | ) | (97,958 | ) | ||||
| Realized and unrealized losses on derivative financial instruments | 2,213 | 8,529 | ||||||
| Provision for bad debts | 61,191 | 25,272 | ||||||
| Depreciation | 18,277 | 13,467 | ||||||
| Amortization of debt issuance costs | 10,475 | 10,385 | ||||||
| Gain on sale of fixed assets | — | (1,095 | ) | |||||
| Increase in deferred tax assets | — | 5,700 | ||||||
| Equity-based compensation expense | 4,000 | 5,130 | ||||||
| Gain on loans held for sale, net | (69,074 | ) | (116,934 | ) | ||||
| Origination and purchase of loans held for sale | (4,575,264 | ) | (3,713,311 | ) | ||||
| Proceeds from sale and collections of loans held for sale | 4,493,887 | 3,935,420 | ||||||
| Changes in assets and liabilities: | ||||||||
| Decrease in advances and match funded advances | 343,129 | 491,654 | ||||||
| Decrease (increase) in receivables and other assets, net | 122,305 | (1,899 | ) | |||||
| Increase in other liabilities | 4,745 | 30,726 | ||||||
| Other, net | 11,802 | 14,866 | ||||||
| Net cash provided by operating activities | 350,420 | 773,994 | ||||||
| Cash flows from investing activities | ||||||||
| Origination of loans held for investment – reverse mortgages | (1,185,565 | ) | (781,002 | ) | ||||
| Principal payments received on loans held for investment - reverse mortgages | 528,263 | 105,520 | ||||||
| Purchase of mortgage servicing rights, net | (15,969 | ) | (10,055 | ) | ||||
| Proceeds from sale of mortgage servicing rights | 45,254 | 598,059 | ||||||
| Proceeds from sale of advances and match funded advances | 74,982 | 285,938 | ||||||
| Additions to premises and equipment | (28,649 | ) | (18,335 | ) | ||||
| Proceeds from sale of premises and equipment | — | 4,758 | ||||||
| Other | 9,483 | 4,082 | ||||||
| Net cash provided by (used in) investing activities | (572,201 | ) | 188,965 | |||||
| 8 |
| OCWEN FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS — (continued) (Dollars in thousands) (UNAUDITED) | ||||||||
| For the Nine Months Ended September 30, | ||||||||
| 2016 | 2015 | |||||||
| Cash flows from financing activities | ||||||||
| Repayment of match funded liabilities | (218,517 | ) | (500,401 | ) | ||||
| Proceeds from other secured borrowings | 6,632,059 | 5,647,016 | ||||||
| Repayments of other secured borrowings | (6,996,715 | ) | (6,572,601 | ) | ||||
| Payment of debt issuance costs | (2,242 | ) | (18,610 | ) | ||||
| Proceeds from sale of loans accounted for as a financing | 820,438 | 803,924 | ||||||
| Repurchase of common stock | (5,890 | ) | — | |||||
| Proceeds from exercise of common stock options | 406 | 413 | ||||||
| Other | (1,496 | ) | 6,501 | |||||
| Net cash provided by (used in) financing activities | 228,043 | (633,758 | ) | |||||
| Net increase in cash | 6,262 | 329,201 | ||||||
| Cash at beginning of year | 257,272 | 129,473 | ||||||
| Cash at end of period | $ | 263,534 | $ | 458,674 | ||||
| 9 |