TAMPA, Fla., May 1 /PRNewswire-FirstCall/ -- Walter Industries, Inc. today reported income from continuing operations of $0.5 million, or $0.01 per diluted share for the first quarter ended March 31, 2008 compared to $32.1 million, or $0.61 per diluted share, in the first quarter 2007.
First quarter 2008 results include pre-tax charges of $28.0 million, or $0.35 per diluted share, in the Financing and Homebuilding businesses. These charges were related to an interest rate hedge loss, the previously announced restructuring of Jim Walter Homes and an additional discount arising from Homebuilding's transfer of instalment notes receivable to Financing.
"Our results for the quarter reflect $36.5 million in operating income from Natural Resources and Sloss. Our metallurgical coal production and operating performance were in line with our previously announced expectations," said Walter Industries Chairman Michael T. Tokarz. "However, the unprecedented disruption in the residential mortgage market negatively impacted results in the non-core portion of our business for the quarter. In response, we took decisive actions to further our strategy of separating these businesses from Walter Industries."
Metallurgical Coal Contract Settlements
Walter Industries also announced today that it has settled approximately two million metric tons of its 2008-2009 metallurgical coal tonnage in excess of $315 per metric ton FOB Port. The Company expects to settle another 1.1 million metric tons over the next few weeks in a similar price range and has an additional 0.6 million metric tons available for the second quarter 2009 that will be priced later this year.
"Our Blue Creek Coal commands prices that are among the highest in the industry," said Jim Walter Resources Chief Executive Officer George R. Richmond. "Continuing supply constraints and robust demand in the international steel market have set the stage for ongoing strength in metallurgical coal pricing beyond the 2008-2009 contract year. With about one million tons of incremental production capacity scheduled to begin coming online in the second half of 2008 and approximately two million additional tons coming online in the first half of 2009, we are very well positioned to take advantage of the strong market for our coal."
First Quarter 2008 Financial Results
Net sales and revenues for the first quarter 2008 totaled $295.7 million, down 7.7 percent from the prior-year period. Revenues for the period were lower primarily as a result of lower coal selling prices in the 2007 - 2008 contract period, along with higher demurrage charges on coal shipments, as well as fewer unit deliveries at Homebuilding, partially offset by $17.9 million of higher selling prices at Sloss and the addition of coal sales volumes at Tuscaloosa Resources, Inc. (TRI).
Operating income from continuing operations for the first quarter 2008 totaled $6.5 million compared to $61.1 million in the first quarter 2007. Operating income in the current period was lower primarily as a result of a $22.9 million reduction resulting from lower average coal prices, which includes $6.9 million of increased demurrage charges; as well as higher coal production costs at Jim Walter Resources and $28.0 million of charges at Financing and Homebuilding mentioned above, partially offset by the favorable coke pricing at Sloss.
First Quarter Results by Operating Group Natural Resources & Sloss
The Natural Resources & Sloss group generated combined revenues of $203.9 million in the first quarter, comparable to the prior year. Results versus the prior year include increases in coke pricing at Sloss, the addition of TRI coal sales and incremental coal sales at Kodiak, offset by a 15.4 percent decline in metallurgical coal pricing at Jim Walter Resources, which includes the impact of higher demurrage charges.
Natural Resources & Sloss reported combined operating income of $36.5 million in the first quarter, compared to $58.8 million in the prior-year period. Operating income in the current-year period reflects pricing improvements at Sloss, offset by lower coal pricing and higher coal production costs at Jim Walter Resources.
Total metallurgical coal production of 1.6 million tons for the quarter was on track to achieve the previously announced expectation of 2.8 - 3.0 million tons for the first half of the year. Overall cost per ton of $48.47 also was in line with the Company's previously announced expectation range.
Mine No. 4 produced 1.0 million tons in the current-year period compared to 0.8 million tons in last year's first quarter. The 0.2 million ton improvement was primarily a result of improved advance rates during the quarter as well as incremental capacity provided by the early startup of the current longwall panel. Mine No. 4's cost per ton in the quarter was $36.03, an improvement of $1.29 per ton versus the prior-year period, primarily driven by higher production volumes.
Mine No. 7 produced 0.6 million tons in the first quarter 2008, approximately 0.25 million tons less than in the same period last year. First quarter production costs at Mine No. 7 were $67.36 per ton versus $42.05 per ton in the prior-year period, due to the cost of additional continuous miner units developing the expansion at Mine No. 7, higher equipment and labor costs in the current-year period and the effect of lower production volumes. A portion of the demurrage charges resulted from limited availability of Jim Walter Resources' No. 7 coal.
Natural Gas
The natural gas business sold 1.6 billion cubic feet of gas at an average price of $7.96 per thousand cubic feet in the first quarter 2008 compared to sales of 1.9 billion cubic feet at an average price of $7.92 per thousand cubic feet in the prior-year period.
Sloss
Sloss Industries generated first quarter revenues of $50.9 million, up 55.1 percent versus the prior-year period, and operating income of $18.7 million, an increase of $17.4 million versus the prior-year period, driven by record-high coke pricing.
Sloss sold approximately 104,000 tons of coke at an average price of $388.51 per ton compared to approximately 109,000 tons at $216.55 in the prior-period.
"As we expected, global prices for metallurgical coke have tracked those of the metallurgical coal markets," Richmond said. "Sloss' price increases have now positioned the business as Walter Industries' second leading contributor of operating income."
Financing & Homebuilding
The Financing & Homebuilding group reported first quarter operating losses of $21.4 million on revenues of $92.2 million, compared to operating income of $7.9 on revenues of $115.9 million in the prior-year period. Excluding $28.0 million for the hedge loss, additional discount and restructuring charge noted above, operating income for the quarter would have been $6.6 million.
On an operating basis, results for Financing were consistent with the prior-year period. Excluding the $17.0 million hedge loss, operating income for the Financing business would have been $10.3 million in the quarter, compared to $10.6 million in the prior-year period. Portfolio performance continues to be strong, with delinquencies on the mortgage portfolio of 3.6 percent at March 31, 2008, compared to 3.4 percent at March 31, 2007 and 4.6 percent at Dec. 31, 2007.
The hedge loss at Financing was recorded to recognize a loss on maturing interest rate swaps that no longer qualify for hedge accounting treatment. The interest rate swaps, originally intended to hedge the Company's next securitization, no longer qualified for hedge accounting treatment because the Company does not plan to access the distressed securitization market. This loss would normally have been amortized over the life of a securitization and the cash outflow would have been offset by increased securitization cash proceeds. All of Financing's hedges were settled in April, and Financing has no more hedges outstanding.
Results at Homebuilding continue to reflect difficult market conditions. Revenues at Homebuilding declined due to a 29.7 percent decrease in unit completions and a $4.2 million increase in the discount from transferring instalment notes receivable to Financing at their estimated market value. Continued pressure in the residential mortgage market increased the discount required to fairly value these assets and resulted in lower revenue recognition for Homebuilding. The discount will be recognized as income by Financing over the life of the instalment note receivable.
The operating loss at Homebuilding of $14.7 million reflects the revenue impacts noted above and a $6.8 million restructuring charge in the period related to the previously announced closure of 36 Homebuilding sales centers.
In a separate release issued today, the Company announced that it has undertaken several critical steps toward the planned separation of the Financing and Homebuilding businesses. In particular, the Company said that Walter Mortgage Company would no longer provide financing for Jim Walter Homes' customers and, as a result, Jim Walter Homes will shift to a third party financing model. The Company also amended its corporate credit agreement to facilitate the sale or other disposition of these businesses. For more information on these actions, please see the separate release.
Business Outlook
The Company's revised full-year 2008 outlook reflects substantially higher metallurgical coal prices as well as higher metallurgical coal sales volumes.
Metallurgical coal sales are expected to be 6.9 - 7.2 million tons, exceeding the production range of 6.7 - 7.1 million tons. The incremental coal volumes are the result of sales of purchased coal. Earnings in the second half of the year will reflect production from two longwalls at Mine No. 7, as mining of the Southwest "A" panel begins in the mid-to-late August timeframe. This panel is expected to produce approximately one million tons by year end.
"We are confident that our higher coal and coke prices, along with our expanding metallurgical coal production, will lead to record earnings for Walter Industries in 2008," Tokarz said.
The Company's expectations with respect to earnings consider estimated pricing and volumes at Natural Resources and Sloss, summarized as follows:
Metallurgical Coal Q1A Q2E Q3E Q4E Sales Outlook (1) Tons Sold (short tons, in millions) 1.5 1.6-1.7 1.8-1.9 2.0-2.1 Average Operating Margin Per Ton $8 $20-$21 $75-$81 $90-$96 Coke Sales Outlook Q1A Q2E Q3E Q4E Tons Sold 104,024 100,000-108,000 103,000-109,000 103,000-109,000 Average Operating Margin Per Ton $182 $125-$145 $140-$165 $140-$165
(1) Quarter-to-quarter variability in timing, availability and pricing of shipments may result in significant shifts in income between quarters.
The Company also affirms previously communicated expectations for metallurgical coal production in 2009 and 2010 with ranges of 8.0 - 8.5 million and 8.7 - 9.1 million tons, respectively.
Coal production costs per ton are expected to range between $45.00 and $50.00 per ton for the full year, in line with prior expectations. Production costs currently reflect a continued high ratio of continuous miner development tons to longwall tons. The higher mix of continuous miner tons, when compared to historical averages, is expected to improve later this year when the Southwest "A" longwall begins production and then return to more normal levels when the Mine 7 East longwall begins operation in 2009. As a result, 2009 average costs are expected to decline by approximately $3.00 to $5.00 per ton.
Demurrage costs are projected to continue at or near current levels for the second quarter. In the second half, demurrage costs are expected to be lower as a result of the increased availability of Mine No. 7 coal with the start up of the Southwest "A" panel, the expansion of Port of Mobile and the implementation of caps in demurrage costs that the Company has negotiated into many of its 2008-2009 metallurgical coal contracts.
Prior expectations for freight costs and royalties remain unchanged, with freight and throughput costs projected at $13.00 to $14.00 per ton and royalties projected at 5.0 to 5.5 percent of revenues.
Natural gas production in 2008 is projected to range between 6.8 and 7.2 billion cubic feet, with pricing expectations of $8.79 per million cubic feet based on existing hedges and projected market pricing.
Corporate interest expense will be higher going forward, reflecting the increase in the revolver portion of the 2005 Walter Credit Agreement. However, interest expense at Financing will substantially offset this increase due to the retirement of the warehouse facilities.
The increased discount rate at Homebuilding is expected to continue through the build-out of the backlog that Walter Mortgage Company is financing.
The Company's effective tax rate is expected to be between 32 and 34 percent for 2008, unchanged from previously communicated expectations.
Quarterly Dividend
The Company announced today that its Board of Directors declared a regular quarterly dividend of $0.05 per common share, payable on June 6, 2008 to shareholders of record at the close of business on May 9, 2008.
Conference Call Webcast
Members of the Company's leadership team will discuss Walter Industries' first quarter 2008 results, its outlook for the remainder of the year and other general business matters during a conference call and live Web cast to be held on Fri., May 2, 2008, at 10 a.m. Eastern Daylight Time. To listen to the event live or in archive, visit the Company Web site at http://www.walterind.com/.
About Walter Industries
Walter Industries, Inc., based in Tampa, Fla., is a leading producer and exporter of metallurgical coal for the global steel industry and also produces steam coal, coal bed methane gas, furnace and foundry coke and other related products. The Company also operates a mortgage financing and affordable homebuilding business. The Company has annual revenues of approximately $1.2 billion and employs approximately 2,500 people. For more information about Walter Industries, please visit the Company Web site at http://www.walterind.com/.
Safe Harbor Statement
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including expressions such as "believe," "anticipate," "expect," "estimate," "intend," "may," "will," and similar expressions involve known and unknown risks, uncertainties, and other factors that may cause the Company's actual results in future periods to differ materially from the expectations expressed or implied by such forward-looking statements. These factors include, among others, the following: the market demand for the Company's products as well as changes in costs and the availability of raw material, labor, equipment and transportation; changes in weather and geologic conditions; changes in extraction costs, pricing and our assumptions and projections concerning our reserves in the Company's mining operations; changes in customer orders; pricing actions by the Company's competitors, customers, suppliers and contractors; changes in governmental policies and laws; changes in the mortgage-backed capital markets; changes in general economic conditions; and the successful implementation and anticipated timing of any strategic actions and objectives that may be pursued, including our announced separation of the Financing and Homebuilding business from the Company. Forward-looking statements made by the Company in this release, or elsewhere, speak only as of the date on which the statements were made. Any forward-looking statements should be considered in context with the various disclosures made by us about our businesses, including the Risk Factors described in our 2007 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. The Company disclaims any duty to update its forward-looking statements as of any future date.
WALTER INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS ($ in Thousands) Unaudited For the three months ended March 31, 2008 2007 Net sales and revenues: Net sales $243,000 $259,387 Interest income on instalment notes 48,710 49,565 Miscellaneous 3,980 11,342 295,690 320,294 Costs and expenses: Cost of sales (exclusive of depreciation) 174,036 171,640 Depreciation 13,967 10,630 Selling, general and administrative 37,870 37,451 Provision for losses on instalment notes 4,325 2,897 Postretirement benefits 6,592 6,332 Interest expense - mortgage- backed/asset-backed notes 28,308 29,771 Interest rate hedge ineffectiveness (1) 16,981 - Interest expense - other debt 5,715 7,347 Amortization of intangibles 365 478 Restructuring and impairment charges (2) 6,770 - 294,929 266,546 Income from continuing operations before income tax expense 761 53,748 Income tax expense (3) 262 21,613 Income from continuing operations 499 32,135 Discontinued operations (4) - (2,510) Net income $499 $29,625 Basic income per share: Income from continuing operations $0.01 $0.62 Discontinued operations - (0.05) Net income $0.01 $0.57 Weighted average number of shares outstanding 52,202,840 52,012,638 Diluted income per share: Income from continuing operations $0.01 $0.61 Discontinued operations - (0.05) Net income $0.01 $0.56 Weighted average number of diluted shares outstanding 52,851,054 52,512,615 (1) During the quarter ended March 31, 2008, the Company recognized a loss of $17.0 million for the ineffectiveness of interest rate hedges held by Financing that were intended to hedge an April 2008 securitization of instalment notes receivable. Unfavorable market conditions have precluded an April 2008 securitization and management cannot predict when such a securitization might occur. (2) Homebuilding recorded restructuring charges totaling $6.8 million during the quarter ended March 31, 2008 related to the closure of 36 sales offices. (3) Income tax expense for the quarter ended March 31, 2007 included a $4.4 million write-off of certain deferred tax assets no longer considered realizable. (4) The Company sold its modular home manufacturing business, which operated as Crestline Homes, Inc., in May 2007. Operating results of this business for the quarter ended March 31, 2007 have been classified as discontinued operations. WALTER INDUSTRIES, INC. AND SUBSIDIARIES RESULTS BY OPERATING SEGMENT ($ in Thousands) Unaudited For the three months ended March 31, 2008 2007 NET SALES AND REVENUES: Natural Resources (1) $153,031 $171,446 Sloss 50,871 32,801 Natural Resources and Sloss 203,902 204,247 Financing 52,104 53,747 Homebuilding 40,072 62,133 Financing and Homebuilding Group 92,176 115,880 Other (1) 418 1,270 Consolidating Eliminations (806) (1,103) $295,690 $320,294 OPERATING INCOME (LOSS) FROM CONTINUING OPERATIONS: Natural Resources (1) $17,810 $57,541 Sloss 18,700 1,306 Natural Resources and Sloss 36,510 58,847 Financing (3) (6,712) 10,571 Homebuilding (2) (14,727) (2,678) Financing and Homebuilding Group (21,439) 7,893 Other (1) (8,196) (5,645) Consolidating Eliminations (399) - Operating income from continuing operations 6,476 61,095 Other debt interest expense (5,715) (7,347) Income from continuing operations before income tax expense $761 $53,748 (1) Results for 2007 have been revised to reflect the reclassification of United Land (the parent company of Kodiak and TRI) from "Other" to Natural Resources. (2) Homebuilding recorded restructuring charges totaling $6.8 million during the quarter ended March 31, 2008 related to the closure of 36 sales offices. (3) Includes a loss of $17.0 million for the ineffectiveness of interest rate hedges that were intended to hedge an April 2008 securitization of instalment notes receivable. WALTER INDUSTRIES, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION Unaudited For the three months ended March 31, 2008 2007 Operating Data: Jim Walter Resources Tons sold by type (in thousands): Metallurgical coal, contracts 1,476 1,426 Purchased metallurgical coal 1 96 1,477 1,522 Average sale price per short ton: Metallurgical coal, contracts $84.86 $100.34 Tons sold by mine (in thousands): Mine No. 4 850 630 Mine No. 7 626 782 Subtotal 1,476 1,412 Mine No. 5 (1) - 14 Total 1,476 1,426 Coal cost of sales (exclusive of depreciation): Mine No. 4 per ton $51.88 $48.89 Mine No. 7 per ton $76.38 $53.29 Mines No. 4 and No. 7 per ton average $62.27 $51.33 Mine No. 5 per ton (1) $- $57.98 Total average $62.27 $51.39 Purchased coal costs (in thousands) $57 $8,328 Other costs (in thousands) (2) $2,606 $4,449 Tons of coal produced (in thousands) Mine No. 4 969 789 Mine No. 7 638 883 Subtotal 1,607 1,672 Mine No. 5 - - Total 1,607 1,672 Coal production costs per ton: (3) Mine No. 4 $36.03 $37.32 Mine No. 7 $67.36 $42.05 Mines No. 4 and No. 7 average $48.47 $39.82 Mine No. 5 $- $- Total average $48.47 $39.82 Natural gas sales, in mmcf (in thousands) 1,566 1,863 Natural gas average sale price per mmcf $7.96 $7.92 Natural gas cost of sales per mmcf $2.94 $2.76 Tuscaloosa Resources, Inc. (4) Tons sold (in thousands) 193 - Tons of coal produced (in thousands) 207 - Kodiak Tons sold (in thousands) 43 15 Tons of coal produced (in thousands) 20 25 (1) Mine No. 5 ceased production in December 2006 as planned. Sales and cost of sales amounts in 2007 resulted from the sale of residual inventory on hand at December 31, 2006. (2) Consists of charges (credits) not directly allocable to a specific mine. (3) Coal production costs per ton are a component of inventoriable costs, including depreciation. Other costs not included in coal production costs per ton include Company-paid outbound freight, postretirement benefits, asset retirement obligation expenses, royalties, and Black Lung excise taxes. (4) Tuscaloosa Resources, Inc. was acquired on August 31, 2007. WALTER INDUSTRIES, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION Unaudited For the three months ended March 31, 2008 2007 Operating Data (continued): Sloss Industries Furnace and foundry coke tons sold 104,024 108,955 Furnace and foundry coke average sale price per ton $388.51 $216.55 Financing Delinquencies, as of period end 3.6% 3.4% Prepayment speeds 5.3% 8.1% Number of repossessions 325 288 Repossession rate, annualized 3.3% 2.8% Recovery rate on repossessions 83.1% 84.9% Homebuilding (excluding Crestline) New sales contracts 450 734 Cancellations 98 84 Unit completions 446 634 Average contractual sales price $105,600 $104,200 Average revenue per home sold (1) $89,800 $98,000 Ending backlog of homes 995 1,535 Depreciation ($ in thousands): Natural Resources $11,375 $7,880 Sloss 1,006 916 Financing 135 281 Homebuilding 1,219 1,234 Other 232 319 $13,967 $10,630 Capital expenditures ($ in thousands): Natural Resources $21,308 $22,084 Sloss 1,575 2,120 Financing 42 31 Homebuilding 429 1,240 Other 106 52 $23,460 $25,527 (1) Includes the effect of the discount required to sell instalment notes receivable to Financing at the estimated market value. WALTER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ($ in Thousands) Unaudited March 31, December 31, 2008 2007 ASSETS Cash and cash equivalents $26,394 $30,614 Short-term investments, restricted 73,462 75,851 Instalment notes receivable, net of allowance of $14,009 and $13,992, respectively 1,829,840 1,837,059 Receivables, net 89,738 81,698 Inventories 116,800 101,676 Prepaid expenses 52,677 38,340 Property, plant and equipment, net 441,366 435,035 Other assets 143,131 156,113 Goodwill 10,895 10,895 $2,784,303 $2,767,281 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $71,780 $72,072 Accrued expenses 70,644 83,072 Accrued interest on debt 13,462 13,940 Debt: Mortgage-backed/asset-backed notes 1,689,944 1,706,218 Other debt 251,219 225,860 Accumulated postretirement benefits obligation 341,541 335,034 Other liabilities 226,636 216,372 Total liabilities 2,665,226 2,652,568 Stockholders' equity 119,077 114,713 $2,784,303 $2,767,281 WALTER INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2008 ($ in Thousands) Unaudited Accumu- lated Other Compre- Capital in Compre- Accumu- hensive Common Excess of hensive lated Income Total Stock Par Value Income Deficit (Loss) Balance at December 31, 2007 $114,713 $520 $497,032 $(290,986) (91,853) Comprehensive income: Net income 499 $499 499 Other comprehensive income (loss), net of tax: Change in pension and postretirement benefit plans 636 636 636 Net unrealized loss on hedges 575 575 575 Comprehensive income $1,710 Effects of changing the pension plan measurement date pursuant to FASB 158: Service cost, interest cost, and expected return on plan assets for October 1 - December 31, 2007, net of taxes (4,603) (4,603) Amortization of actuarial gain and prior service cost for October 1 - December 31, 2007, net of taxes 670 670 Purchases of stock under stock repurchase program (363) (363) Stock issued upon the exercise of stock options 4,269 3 4,266 Stock issued upon conversion of convertible notes 785 1 784 Tax benefit from the exercise of stock options 3,766 3,766 Dividends paid, $0.05 per share (2,605) (2,605) Stock-based compensation 2,139 2,139 Other (1,404) (1,404) Balance at March 31, 2008 $119,077 $524 $503,615 $(295,090) $(89,972) WALTER INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in Thousands) Unaudited For the three months ended March 31, 2008 2007 OPERATING ACTIVITIES Net income $499 $29,625 Loss from discontinued operations - 2,510 Income from continuing operations 499 32,135 Adjustments to reconcile income from continuing operations to net cash provided by continuing operations: Provision for losses on instalment notes receivable 4,325 2,897 Depreciation 13,967 10,630 Provision for deferred income taxes 262 21,613 Non-cash loss from ineffective hedges 16,981 - Other 11,343 1,060 Decrease (increase) in assets: Receivables (8,096) 10,535 Inventories (15,124) (8,369) Prepaid expenses (8,803) 3,078 Instalment notes receivable, net (1,177) (20,540) Increase (decrease) in liabilities: Accounts payable 2,020 4,255 Accrued expenses (13,700) (24,195) Accrued interest (478) (1,593) Cash flows provided by operating activities of continuing operations 2,019 31,506 INVESTING ACTIVITIES Purchases of loans - (18,107) Principal payments received on purchased loans 4,071 11,715 Decrease in short-term investments, restricted 2,389 5,736 Additions to property, plant and equipment (23,460) (25,527) Other (444) 26 Cash flows used in investing activities of continuing operations (17,444) (26,157) FINANCING ACTIVITIES Issuances of mortgage-backed/asset- backed notes 25,000 59,250 Payments of mortgage-backed/asset- backed notes (41,290) (58,816) Proceeds from issuances of other debt 30,000 - Retirements of other debt (3,856) (28,512) Other 1,351 (1,218) Cash flows provided by (used in) financing activities of continuing operations 11,205 (29,296) Cash flows used in continuing operations $(4,220) $(23,947) CASH FLOWS FROM DISCONTINUED OPERATIONS Cash flows used in operating activities $- $(2,510) Cash flows used in investing activities - - Cash flows provided by financing activities - - Cash flows used in discontinued operations $- $(2,510) Net decrease in cash and cash equivalents $(4,220) $(26,457) Cash and cash equivalents at beginning of period $30,614 $127,369 Add: Cash and cash equivalents of discontinued operations at beginning of period - 1 Net decrease in cash and cash equivalents (4,220) (26,457) Less: Cash and cash equivalents of discontinued operations at end of period - 11 Cash and cash equivalents at end of period $26,394 $100,902
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