UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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):  November 12, 2015

Cosi, Inc.
(Exact Name of Registrant as Specified in Its Charter)


Delaware
  
000-50052
  
06-1393745
(State or Other Jurisdiction of Incorporation)
  
(Commission File Number)
  
(IRS Employer Identification No.)


294 Washington Street, Ste. 510, Boston, Massachusetts
  
02108
(Address of Principal Executive Offices)
  
(Zip Code)

Registrant's telephone number, including area code:   (857) 415-5000

 
(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 (see General Instruction A.2. below):

☐      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 
Item 2.02             First Quarter Results of Operations and Financial Condition.

On November 12, 2015, Cosi, Inc. (the "Company") issued a press release announcing its earnings for the third quarter ended September 28, 2015.  A copy of the press release is furnished as Exhibit 99.1.


Item 7.01                           Regulation FD Disclosure.

On November 12, 2015, the Company hosted a teleconference and webcast to discuss its third quarter results.  The text of the supplemental slides to which management referred during the presentation is attached hereto as Exhibit 99.2


Item 9.01              Financial Statements and Exhibits.
 
 
(d) 
Exhibits
 
       
 
 
Exhibit 99.1
Press Release of Cosi, Inc., dated November 12, 2015.
       
 
 
Exhibit 99.2 
Slides for teleconference held on November 12, 2015.

 

 
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 hereunto duly authorized.
 
 
Date:  November 13, 2015
Cosi, Inc.
 
 
 
 
 
 
 
 
 
 
By:
/s/ Vicki Baue 
 
 
 
Name:  Vicki Baue
 
 
 
Title:    V. P. and General Counsel, CCO
 
 
 
 
 
 
 
 
EXHIBIT INDEX
 
 
 
Exhibit No.
 
 
Description
 
 
Paper (P) or
Electronic (E)
99.1
 
Press Release of Cosi, Inc., dated November 12, 2015.
 
E
99.2   Slides for teleconference held on November 12, 2015.    E
                                                                    
 
 


 
Exhibit 99.1
 

Cosi, Inc. Reports 2015 Third Quarter Results

BOSTON, MA, November 12, 2015 -- Così, Inc. (NASDAQ:COSI), the fast casual restaurant company, reported today a net loss for the 2015 third quarter of $(3.9) million, or $(0.08) per basic and diluted common share, compared with a net loss of $(4.1) million, or $(0.20) per basic and diluted common share, in the 2014 third quarter.

Così's total revenues for the 2015 third quarter increased by $4.3 million to $23.5 million from $19.2 million in the 2014 third quarter. Company-owned net restaurant sales increased by $4.5 million to $23.1 million from $18.6 million in the 2015 third quarter compared to the 2014 third quarter. Franchise fees and royalty revenues for the 2015 third quarter decreased by $0.2 million to $0.4 million compared to $0.6 million for the 2014 third quarter. The increase in revenues in the 2015 third quarter compared to the 2014 third quarter was driven primarily by the conversion of 13 franchise restaurants to Company-owned as a result of the Hearthstone merger completed on April 1, 2015.

System-wide comparable net restaurant sales for the 2015 third quarter, as measured for restaurants in operation for more than 15 months, recorded an aggregate decline of 0.3% compared to the 2014 third quarter. The breakdown in estimated comparable restaurant sales between Company-owned and Franchise-owned restaurants is as follows:

 
13 Weeks Ended
 
Sept. 28, 2015
Company-Owned *
(0.3%)
Franchise
(0.2%)
System-Wide
(0.3%)
   
   
* Does not include Hearthstone locations. Comparative locations are defined as restaurants in operation for more than 15 months as Company-owned locations.

"We have continued to implement Hearthstone's proven model of success across the entire system and are encouraged by the improved cash flows we are seeing in segments of our portfolio. At the same time, we have not seen the movement we expected in our most challenged restaurants, which continue to impact the cash flow gains we are seeing in the rest of our portfolio. We are working on a plan to deal with those restaurants," stated RJ Dourney, Così's CEO & President. "We are also right-sizing our overhead and capital expenditures. We believe these three cash management levers, together with the improvements we are seeing in sales and operating margins, will position us well to go into 2016 with the resources we need to enter the next phase of our turnaround, Dourney went on to say.


2015 Third Quarter Financial Performance Review
In the three month period ended September 28, 2015, restaurant net sales increased 24.4%, or approximately $4.5 million, in the 2015 third quarter, as compared to the three month period ended September 29, 2014. This increase was the result of incremental net sales of $4.5 million from the 13 Hearthstone restaurants added to the corporate portfolio, and an increase of $1.0 million from the non-comparable restaurant base, offset by net sales decreases of $1.0 million from closed restaurants, and a decrease in comparable restaurant sales of -0.3%, which did not have a measurable impact when measured in dollars. The percentage decrease in comparable restaurant net sales for the three month period ended September 28, 2015, was the result of a 5.5% increase in average check and a 5.8% decrease in transactions. Cosi's operating loss narrowed in the 2015 third quarter by $0.3 million, or 9%, to ($3.5) million, when compared to the 2014 third quarter.

Cost of food and beverages, as a percentage of restaurant net sales, for the 2015 third quarter, decreased by 1.6% when compared to the same period last year. This decrease was primarily the result of operational improvements and stability in the costs of certain contracted commodities.

Restaurant labor and related benefits, as a percentage of restaurant net sales, for the 2015 third quarter remained flat when compared to the same period last year, due to the investment in staffing and training required to drive future efficiencies, productivity, and overall guest experience.

Occupancy and other restaurant operating expenses, as a percentage of restaurant net sales, for the 2015 third quarter decreased 1.5%, when compared to the same period last year.  This decrease was mostly the result of the acquired Hearthstone restaurants with higher sales volumes and lower fixed costs.

The Company reduced its general and administrative expenses in the three month period ended September 28, 2015, by $0.04 million when compared to the three month period ended September 29, 2014. This decrease is the net savings of a $0.3 million reduction in operating expenses offset by an increase in non-cash expenses related to executive stock compensation of $0.3 million.

Financial Outlook
Based on Cosi's 2015 results to date, the Company does not expect to generate positive cash flows from operations, excluding capital expenses, by the end of the 2015 fourth quarter as previously communicated. However, considering the expected results from re-balancing the portfolio, right sizing overhead costs and capital expenses, and the business outlook going into next year, the Company expects to generate positive EBITDA between the second and third quarters of 2016.

Così reported that, as of September 28, 2015, it had cash and cash equivalents balances of $8.0 million.

The results disclosed in this press release are unaudited.


As previously announced, the Company expects to host an investor teleconference webcast at 5:00 p.m. Eastern Time on November 12, 2015, to discuss the Company's results for the 2015 third quarter. The webcast will be broadcast live and available for replay for a limited time thereafter at:

Audio
Dial-In Number:  877-474-9502
Secondary Dial-In Number:  857-244-7555
Participant Code: 47606753
Note:  Participants should dial in a few minutes prior to the start time

Webcast
Website link:  http://ir.getcosi.com
Note:  Live, then archived for one year

Replay
Dial-In Number: 888-286-8010
Secondary Dial-In Number:  617-801-6888
Participant Code:  68957723
Note:  Available from November 12, 2015 (at 9:00 p.m. ET) until November 19, 2015 (11:59 PM ET)

About Così, Inc.
Così (http://www.getcosi.com) is an international fast casual restaurant company.  At the heart of every Cosi® restaurant is an open-flame stone-hearth oven where the Così® signature flatbread is made from scratch throughout the day.  The flatbread is made from a generations-old recipe and is part of many Così® favorites. Così® was founded on the idea that good-for-you food should be delicious.  Menu items are made using fresh ingredients and distinctive sauces and spreads to create edgy flavors.  The menu features made-to-order sandwiches, hand-tossed salads, bowls, breakfast wraps, melts, all natural soups, signature Squagels®, artisan flatbread pizzas, S`mores, snacks and desserts.  Guests can also enjoy handcrafted beverages and a variety of coffee-based and specialty beverages.

Così® employees create a welcoming environment where guests are invited to relax and enjoy great food.  In many cases, Così® is the cornerstone of the communities that they are in and take pride in supporting community organizations and local charities. There are currently 79 Company-owned and 30 franchise restaurants operating in fifteen states, the District of Columbia, Costa Rica and the United Arab Emirates.

"Così," "(Sun & Moon Design)" and related marks are registered trademarks of Così, Inc. in the U.S.A. and certain other countries. Copyright © 2015 Così, Inc. All rights reserved.


"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. This press release contains statements that constitute forward- looking statements under the federal securities laws. Forward-looking statements are statements about future events and expectations and not statements of historical fact. The words "believe," "may," "will," "should," "anticipate," "estimate," "expect," "intend," "objective," "seek," "plan," "strive," or similar words, or negatives of these words, identify forward- looking statements. We qualify any forward-looking statements entirely by these cautionary factors. Forward-looking statements are based on management's beliefs, assumptions and expectations of our future economic performance, taking into account the information currently available to management. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. Factors that could contribute to these differences include, but are not limited to: the results being reported in this release are unaudited and subject to change; the cost of our principal food products and supply and delivery shortages and interruptions; labor shortages or increased labor costs; changes in demographic trends and consumer tastes and preferences, including changes resulting from concerns over nutritional or safety aspects of beef, poultry, produce, or other foods or the effects of food-borne illnesses, such as E. coli, "mad cow disease" and avian influenza or "bird flu"; competition in our markets, both in our business and in locating suitable restaurant sites; our operation and execution in new and existing markets; expansion into new markets including foreign markets; our ability to attract and retain qualified franchisees and our franchisees' ability to open restaurants on a timely basis; our ability to locate suitable restaurant sites in new and existing markets and negotiate acceptable lease terms; the rate of our internal growth and our ability to generate increased revenue from our existing restaurants; our ability to generate positive cash flow from existing and new restaurants; fluctuations in our quarterly results due to seasonality; increased government regulation and our ability to secure required government approvals and permits; our ability to create customer awareness of our restaurants in new markets; the reliability of our customer and market studies; cost effective and timely planning, design and build out of restaurants; our ability to recruit, train and retain qualified corporate and restaurant personnel and management; market saturation due to new restaurant openings; inadequate protection of our intellectual property; our ability to obtain additional capital and financing; adverse weather conditions which impact customer traffic at our restaurants; and adverse economic conditions. Further information regarding factors that could affect our results and the statements made herein are included in our filings with the Securities and Exchange Commission.

Additional information is available on Così's website at
http://www.getcosi.com in the investor relations section.

CONTACT:                         Miguel Rossy-Donovan
                          Chief Financial Officer
                          (857) 415-5020
 

 
 
 Cosi, Inc.
 Consolidated Balance Sheets
 (dollars in thousands)
 
         
   
September 28, 2015
    
December 29, 2014
  
   
(Unaudited)
      
Assets
        
Current assets:
        
Cash and cash equivalents
  
$
8,047
    
$
21,053
  
Credit card receivable
    
789
      
507
  
Accounts receivable, net of allowances of $286 and $118, respectively
    
896
      
581
  
Inventories
    
1,020
      
825
  
Prepaid expenses and other current assets
    
1,722
      
1,279
  
          Total current assets
    
12,474
      
24,245
  
                 
Furniture and fixtures, equipment and leasehold improvements, net
    
12,656
      
7,308
  
Notes receivable, net of allowances of $675 and $450, respectively
    
326
      
551
  
Intangible assets, net
    
2,795
      
-
  
Goodwill and indefinite-lived assets
    
9,797
      
-
  
Restricted cash
    
5,001
      
-
  
Other assets
    
1,348
      
1,327
  
          Total assets
  
$
44,397
    
$
33,431
  
                 
Liabilities and Stockholders' Equity
                
Current liabilities:
                
Accounts payable
  
$
1,891
    
$
1,519
  
Accrued expenses
    
6,456
      
9,336
  
Deferred franchise revenue
    
-
      
18
  
Current portion of other long-term liabilities
    
50
      
177
  
Current portion of long-term debt
    
611
      
-
  
          Total current liabilities
    
9,008
      
11,050
  
                 
Deferred franchise revenue
    
1,733
      
1,724
  
Other long-term liabilities, net of current portion
    
1,707
      
1,663
  
Long-term debt, net
    
10,658
      
6,623
  
          Total liabilities
    
23,106
      
21,060
  
                 
Commitments and Contingencies
                
                 
Stockholders' equity
                
Common stock - $.01 par value; 100,000,000 shares authorized,
                
48,109,677 and 38,410,196 shares issued and outstanding, respectively
    
480
      
383
  
Additional paid-in capital
    
344,179
      
323,256
  
Treasury stock, 59,886 shares at cost
    
(1,198
)
    
(1,198
)
Accumulated deficit
    
(322,170
)
    
(310,070
)
          Total stockholders' equity
    
21,291
      
12,371
  
          Total liabilities and stockholders' equity
  
$
44,397
    
$
33,431
  
                 
 
The accompanying notes are an integral part of these consolidated financial statements.
      
 
 
Cosi, Inc.       
Consolidated Statements of Operations (Unaudited)       
(dollars in thousands, except share and per share data)       
 
                 
                 
   
Three Months Ended
    
Nine Months Ended
  
   
September 28,
    
September 29,
    
September 28,
    
September 29,
  
   
2015
    
2014
    
2015
    
2014
  
                 
Revenues:
                
Restaurant net sales
  
$
23,113
    
$
18,574
    
$
64,347
    
$
56,309
  
Franchise fees and royalties
    
404
      
635
      
1,527
      
1,945
  
Total revenues
    
23,517
      
19,209
      
65,874
      
58,254
  
                                 
Costs and expenses:
                                
Cost of food and beverage
    
5,959
      
5,087
      
17,317
      
14,624
  
Restaurant labor and related benefits
    
8,843
      
7,114
      
24,527
      
21,640
  
Occupancy and other restaurant operating expenses
    
8,127
      
6,816
      
23,296
      
20,896
  
Operating costs and expenses
    
22,929
      
19,017
      
65,140
      
57,160
  
General and administrative
    
3,073
      
3,110
      
8,873
      
9,164
  
Depreciation and amortization
    
885
      
573
      
2,311
      
1,812
  
Restaurant pre-opening expenses
    
4
      
-
      
5
      
-
  
Provision for losses on asset impairments and disposals
    
-
      
217
      
-
      
241
  
Closed store costs
    
12
      
100
      
25
      
196
  
Lease termination costs
    
42
      
62
      
235
      
1,317
  
Loss (gain) on sale of fixed assets
    
94
      
-
      
112
      
(50
)
Total costs and expenses
    
27,039
      
23,079
      
76,701
      
69,840
  
                                 
Operating loss
    
(3,522
)
    
(3,870
)
    
(10,827
)
    
(11,586
)
                                 
Other income (expense):
                                
Interest, net
    
(228
)
    
(171
)
    
(795
)
    
(410
)
Debt issuance and discount amortization
    
(165
)
    
(164
)
    
(493
)
    
(164
)
Other income (expense)
    
3
      
57
      
15
      
72
  
Total other expense
    
(390
)
    
(278
)
    
(1,273
)
    
(502
)
                                 
Net loss
  
$
(3,912
)
  
$
(4,148
)
  
$
(12,100
)
  
$
(12,088
)
                                 
Per Share Data:
                                
Loss per share, basic and diluted
  
$
(0.08
)
  
$
(0.20
)
  
$
(0.28
)
  
$
(0.64
)
                                 
Weighted average shares outstanding basic and diluted:
    
46,722,660
      
20,334,567
      
43,216,165
      
18,846,038
  
                                 
                                 
 
The accompanying notes are an integral part of these consolidated financial statements.
          
 
 
   
Three Months Ended
    
Nine Months Ended
  
   
Sept 28,
    
Sept 29,
    
Sept 28,
    
Sept 29,
  
   
2015
    
2014
    
2015
    
2014
  
                 
Revenues:
                
Restaurant net sales
    
98.3
%
    
96.7
%
    
97.7
%
    
96.7
%
Franchise fees and royalties
    
1.7
      
3.3
      
2.3
      
3.3
  
Total revenues
    
100.0
      
100.0
      
100.0
      
100.0
  
Cost and expenses:
                                
Cost of food and beverage (1)
    
25.8
      
27.4
      
26.9
      
26.0
  
Restaurant labor and related benefits (1)
    
38.3
      
38.3
      
38.1
      
38.4
  
Occupancy and other restaurant operating expenses (1)
    
35.2
      
36.7
      
36.2
      
37.1
  
     
99.3
      
102.4
      
101.2
      
101.5
  
General and administrative expenses
    
13.1
      
16.2
      
13.5
      
15.7
  
Depreciation and amortization
    
3.8
      
3.0
      
3.5
      
3.1
  
Restaurant pre-opening expenses
    
-
      
-
      
-
      
-
  
Provision for losses on asset impairments and disposals
    
-
      
1.1
      
-
      
0.4
  
Closed store costs expense
    
0.1
      
0.6
      
-
      
0.4
  
Lease termination expense
    
0.2
      
0.3
      
0.4
      
2.3
  
Loss (gain) on sale of fixed assets
    
0.4
      
-
      
0.2
      
(0.1
)
Total costs and expenses
    
115.0
      
120.1
      
116.4
      
119.9
  
Operating loss
    
(15.0
)
    
(20.1
)
    
(16.4
)
    
(19.9
)
Other income (expense)
                                
Interest, net
    
(1.0
)
    
(0.9
)
    
(1.2
)
    
(0.7
)
Misc income
    
-
      
-
      
-
      
-
  
Debt issuance amortization
    
(0.7
)
    
(0.8
)
    
(0.7
)
    
(0.3
)
Other income (expense)
    
-
      
0.3
      
-
      
0.1
  
Total other income (expense)
    
(1.7
)
    
(1.4
)
    
(1.9
)
    
(0.9
)
Net loss
    
(16.6
)%
    
(21.5
)%
    
(18.4
)%
    
(20.8
)%
                                 
 
(1)
Expressed as a percentage of restaurant net sales versus all other items expressed as a percentage of total revenues.
    		      
 
 
                
 
 
 
   
For the Three-Month Period Ended
 
   
September 28, 2015
   
September 29, 2014
 
   
Company-Owned
    
Franchise
    
Total
    
Company-Owned
    
Franchise
    
Total
  
                         
Restaurants at beginning of period
    
78
      
32
      
110
      
66
      
48
      
114
  
Franchise-owned converted to Company-owned
    
1
      
1
      
-
      
1
      
1
      
-
  
New restaurants opened
    
-
      
1
      
1
      
-
      
-
      
-
  
Restaurants permanently closed
    
-
      
2
      
2
      
4
      
-
      
4
  
Restaurants at end of period
    
79
      
30
      
109
      
63
      
47
      
110
  
                                                 
   
For the Nine-Month Period Ended
 
   
September 28, 2015
   
September 29, 2014
 
   
Company-Owned
    
Franchise
    
Total
    
Company-Owned
    
Franchise
    
Total
  
                                                 
Restaurants at beginning of period
    
64
      
47
      
111
      
70
      
52
      
122
  
Franchise-owned converted to Company-owned
    
17
      
17
      
-
      
3
      
3
      
-
  
New restaurants opened
    
-
      
4
      
4
      
-
      
-
      
-
  
Restaurants permanently closed
    
2
      
4
      
6
      
10
      
2
      
12
  
Restaurants at end of period
    
79
      
30
      
109
      
63
      
47
      
110
  
 
 
 
 


 
Exhibit 99.2
 
 Supplemental Information3Q 2015 Investor Tele-conferenceNovember 12, 2015  1 
 
 SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Matters discussed in this presentation that relate to events or developments which are expected to occur in the future, including any discussion, expressed or implied, of anticipated growth, new store openings, operating results or earnings, constitute forward-looking statements under the federal securities laws and not statements of historical fact. The words "believe," "may," "will," "should," "anticipate," "estimate," "expect," "intend," "objective," "seek," "plan," "strive," or similar words, or negatives of these words, identify forward- looking statements. We qualify any forward-looking statements entirely by these cautionary factors. Forward-looking statements are based on management's beliefs, assumptions and expectations of our future economic performance, taking into account the information currently available to management. Forward-looking statements involve risks and uncertainties that may cause our actual results, performance or financial condition to differ materially from the expectations of future results, performance or financial condition we express or imply in any forward-looking statements. Factors that could contribute to these differences include, but are not limited to:the cost of our principal food products and supply and delivery shortages and interruptions; labor shortages or increased labor costs; changes in demographic trends and consumer tastes and preferences, including changes resulting from concerns over nutritional or safety aspects of beef, poultry, produce, or other foods or the effects of food-borne illnesses, such as E. coli, “mad cow disease” and avian influenza or “bird flu”; competition in our markets, both in our business and in locating suitable restaurant sites; our operation and execution in new and existing markets; expansion into new markets, including foreign markets; our ability to attract and retain qualified franchisees and our franchisees’ ability to open restaurants on a timely basis; our ability to locate suitable restaurant sites in new and existing markets and negotiate acceptable lease terms; the rate of our internal growth and our ability to generate increased revenue from our existing restaurants; our ability to generate positive cash flow from existing and new restaurants; fluctuations in our quarterly results due to seasonality; increased government regulation and our ability to secure required government approvals and permits; our ability to create customer awareness of our restaurants in new markets; the reliability of our customer and market studies; cost effective and timely planning, design and build out of restaurants; our ability to recruit, train and retain qualified corporate and restaurant personnel and management; market saturation due to new restaurant openings; inadequate protection of our intellectual property; our ability to obtain additional capital and financing; adverse weather conditions which impact customer traffic at our restaurants; and adverse economic conditions. Further information regarding factors that could affect our results and the statements made herein are included in our filings with the Securities and Exchange Commission. Additional information is available on the Cosi, Inc. website at www.getcosi.com.Copies of this deck will be available on the Così® Website at: www.ir.getcosi.com  2 
 
 Welcome and State of the BusinessEconomics of our portfolioImproving cash flowsDomestic & international franchise growth plan3rd Quarter Financial Results OverviewClosing comments and Q&A  Introductory Comments  3 
 
 Economics of our Portfolio: Segmentation  Current 2015 Financial Performance by Quartile   4 
 
 Improving Cash Flows: Economic Model Optimization  Restated 2015 Financial Performance Excluding Current 4th Quartile   5 
 
 Improving Cash Flows: Managing Overhead Costs  General & Administrative Projected Cash Uses   6 
 
 Improving Cash Flows: Driving Traffic  Brand positioning & guest experience  Intense focus on elevating guest experience and building relationships with guestsOwning brand story and point of differentiationCreating appealing and relevant in-store creativeCommunicating message through all key touchpoints that resonate with guestsReintroducing Cosi to NYC guestsMotivating trial by treating guests to signature Cosi® sandwichesStaying committed to giving back to community through donations to food bankLeveraging non-traditional media to drive trial and repeat visitsStrategic targetingRelevant brand messaging and compelling creative  #feedthecity  Media  7 
 
 Domestic & International Franchise Growth  Future Outlook  Conversations with 1-4 potential new franchise partners are making progressDomestic potential of 500+ units in the next 5-7 yearsInternational potential of 100 units in Central & South America in the next 5-7 yearsDomestic8-10 new units by current partners1 unit from new development agreement in Florida across 3 countiesInternational1 unit in Panama from a new development agreement  Projected Openings: 2016  8  Actual Openings: 2015Domestic3 new units: Boston (formerly Hearthstone), Virginia (Sodexo), DC (Compass)International2 new units in Costa Rica (Fast Casual) 
 
 3Q 2015 Financial Results  Financial Summary ($’s in thousands)*   9  * Results may be slightly affected by rounding differences  
 
 3Q 2015 Financial Results  Reconciliation of Non-GAAP Measures to Net Income ($’s in thousands)*   10  * Results may be slightly affected by rounding differences  
 
 
 
 Closing Comments and Q&A  11