What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2021-09-03 compared with 2021-06-04 · 76 added, 80 removed, 249 unchanged (39% of the section changed)

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and related notes as of April 30, 2021, and for the three and six months ended April 30, 2021 and 2020, included elsewhere herein.

The following discussion and analysis should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and related notes as of July 31, 2021, and for the three and nine months ended July 31, 2021 and 2020, included elsewhere herein.

For additional information pertaining to our business, including risk factors which should be considered before investing in our common stock, refer to our Annual Report on Form 10-K for the fiscal year ended October 31, 2020.

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We work with our customers to the extent idling affects fulfillment timing.

• We have taken precautionary measures intended to help minimize the risk of the virus to our employees, including temporarily requiring some employees to work remotely.

• We have taken precautionary measures intended to help minimize the risk of the virus to our employees by implementing social distancing, sanitizing the workspace, and requiring employees to report any COVID-19 symptoms to ensure safety as infection surges dictate.

• We continue to monitor the rapidly evolving situation and guidance from international and domestic authorities, including federal, state and local public health authorities and may take additional actions based on their recommendations.

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residential wood cabinet demand.

In May 2021, the NAHB forecasted calendar-year housing starts to be 1.5 million for the 2021 calendar-year and 1.6 million for 2022 and 2023.

The May 2021, Ducker forecast indicated that total window shipments are expected to increase approximately 8.5% for calendar-year 2021 and approximately 2% for each of the 2022 and 2023 calendar-years.

In August 2021, the NAHB forecasted calendar-year housing starts to be 1.6 million for the 2021, 2022 and 2023 calendar-years.

In August 2021, the Ducker forecast indicated that total window shipments are expected to increase approximately 10.2% for calendar-year 2021 and approximately 3% in 2022 and 2% in 2023.

The estimated increase in window shipments for the year ended December 31, 2021 includes an increase in new construction shipments of approximately 16% and an increase in R&R shipments of approximately 6%.

In May 2021, Catalina Research estimated that residential semi-custom cabinet demand in the U.S.

In August 2021, Catalina Research estimated that residential semi-custom cabinet demand in the U.S.

is estimated to increase 18.9% in 2021 and 6.4% in 2022.

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For the majority of our customers and critical suppliers, we have price adjusters in place which effectively share the base pass-through price changes for our primary commodities with our customers commensurate with the market at large.

Our long -term exposure to these price fluctuations is somewhat mitigated due to the contractual component of the adjuster program.

Our long -term exposure to these price fluctuations is somewhat mitigated due to the contractual component of the adjuster programs.

However, these adjusters are not in place with all customers and for all commodities, and there is a level of exposure to such volatility due to the lag associated with the timing of price updates in accordance with our customer agreements, particularly with regard to hardwoods.

In addition, some of these commodities, such as silicone, are in high demand, particularly in Europe, which can affect the cost of the raw materials, a portion of which we may not be able to fully recover.

Thus far we have not experienced notable supply or logistics disruptions.

On June 23, 2016, citizens of the U.K.

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Results of Operations

Three Months Ended April 30, 2021 Compared to Three Months Ended April 30, 2020

Three Months Ended April 30,

Three Months Ended July 31, 2021 Compared to Three Months Ended July 31, 2020

Three Months Ended July 31,

2021 2020 Change $ % Variance

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NA Fenestration

Three Months Ended April 30,

Three Months Ended July 31,

2021 2020 $ Change % Variance

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Operating income margin 9 % 10 %

Net sales increased $37.6 million, or 35%, for the three months ended April 30, 2021 compared to the same period in 2020, which was primarily driven by a $33.5 million increase in volumes, including a recovery from prior year COVID-19 impacts, and an increase in price and raw material surcharges of $4.1 million.

Net sales increased $25.3 million, or 21%, for the three months ended July 31, 2021 compared to the same period in 2020, which was primarily driven by a $17.6 million increase in volumes, including a recovery from prior year COVID-19 impacts, and an increase in price and raw material surcharges of $7.9 million.

Cost of Sales.

The cost of sales increased $27.3 million, or 32%, for the three months ended April 30, 2021 compared to the same period in 2020.

Cost of sales increased primarily due to higher volumes during the period.

The cost of sales increased $23.9 million, or 26%, for the three months ended July 31, 2021 compared to the same period in 2020.

Cost of sales, including labor, increased primarily due to higher volumes during the period as well as the inflation of raw materials.

Selling, General and Administrative.

S elling, general and administrative expenses increased $3.2 million, or 32%, for the three months ended April 30, 2021 compared to the same period in 2020, primarily due to higher compensation and increased general expenses year-over-year.

S elling, general and administrative expenses increased $1.4 million, or 12%, for the three months ended July 31, 2021 compared to the sam e period in 2020, primarily due to increased general expenses year-over-year.

Restructuring Charges.

Restructuring charges for the three months ended April 30, 2020 relate to facility lease expense for a U.S.

Restructuring charges for the three months ended July 31, 2020 relate to facility lease expense for a U.S.

vinyl extrusion plant which was closed in January 2017.

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Depreciation and Amortization.

Depreciation and amortization expense decreased $1.1 million for the three months ended April 30, 2021 compared to the same period in 2020, reflecting the run-off of depreciation expense related to existing assets and disposals during the period.

Depreciation and amortization expense decreased $1.0 million for the three months ended July 31, 2021 compared to the same period in 2020, reflecti ng the run-off of depreciation expense related to existing assets and disposals during the period.

EU Fenestration

Three Months Ended April 30,

Three Months Ended July 31,

2021 2020 $ Change % Variance

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Operating income margin 16 % 14 %

Net sales increased $32.4 million, or 111%, for the three months ended April 30, 2021 compared to the same period in 2020, which was primarily driven by a $28.3 million increase in volumes, including a recovery from prior year COVID-19 impacts and the reopening of manufacturing facilities in the U.K.

which were forced to close for several weeks in the second quarter of 2020, $2.9 million of foreign currency rate changes, and $1.2 million of base price increases.

Net sales increased $33.0 million, or 86%, for the three months ended July 31, 2021 compared to the same period in 2020, which was primarily driven by a $26.8 million increase in volumes, including a recovery from prior year COVID-19 impacts, $4.1 million of foreign currency rate changes, and $2.2 million of base price increases.

These increases were partially offset by a temporary closure of our manufacturing facility in Germany due to flooding in July 2021.

Cost of Sales.

The cost of sales increased $20.4 million, or 97%, for the three months ended April 30, 2021 compared to the same period in 2020.

The cost of sales increased $23.6 million, or 91%, for the three months ended July 31, 2021 compared to the same period in 2020.

Cost of sales increased primarily due to higher volumes during the period.

Selling, General and Administrative.

Selling, general and administrative expense increased $2.1 million, or 40%, for the three months ended April 30, 2021 compared to the same period in 2020.

Selling, general and administrative expense increased $2.8 million, or 58%, for the three months ended July 31, 2021 compared to the same period in 2020.

The increase is primarily due to higher compensation, general expenses and foreign currency impacts year-over-year.

NA Cabinet Components

Three Months Ended April 30,

Three Months Ended July 31,

2021 2020 $ Change Variance %

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Selling, general and administrative 5.2 4.6 0.6 (13)%

Restructuring charges — 0.2 (0.2) 100%

Depreciation and amortization 3.4 3.2 0.2 (6)%

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Operating loss margin (2) % — %

Net sales increased $12.9 million, or 25%, for the three months ended April 30, 2021 compared to the same period in 2020, which was driven by an $11.4 million increase in volumes, including a recovery from prior year COVID-19 impacts, and an increase in price and raw material indexes of $1.5 million.

N et sales increased $10.0 million, or 19%, for the three months ended July 31, 2021 compared to the same period in 2020, which was driven by an increase in price and raw material indexes of $5.9 million and a $4.1 million increase in volumes.

Cost of Sales .

Cost of sales increased $10.9 million, or 25%, for the three months ended April 30, 2021 compared to the same period in 2020.

Cost of sales increased primarily due to higher volumes during the period and rising lumber prices, which are recovered on a lag.

Cost of sales increased $10.2 million, or 23%, for the three months ended July 31, 2021 compared to the same period in 2020.

Cost of sales increased primarily due to rising lumber prices, which are recovered on a lag, and higher volumes during the period.

Selling, General and Administrative .

Selling, general and administrative expense increased $1.3 million, or 33%, for the three months ended April 30, 2021 compared to the same period in 2020, primarily due to higher compensation and general expenses year-over-year.

Restructuring Charges .

Restructuring charges for the three months ended April 30, 2020 related to severance, equipment moving, and other charges incurred for a plant closure.

Selling, general and administrative expense increased $0.6 million, or 13%, for the three months ended July 31, 2021 compared to the same period in 2020, primari ly due to higher compensation and general expenses year-over-year.

Unallocated Corporate & Other

Three Months Ended April 30,

Three Months Ended July 31,

2021 2020 $ Change Variance %

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Operating (loss) income $ (2.2) $ (1.0) $ (1.2) 120%

Net sales for Unallocated Corporate & Other represents the elimination of inter-segment sales for the three months ended April 30, 2021 and 2020.

Net sales for Unallocated Corporate & Other represents the elimination of inter-segment sales for the three months ended July 31, 2021 and 2020.

Cost of Sales .

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Selling, General and Administrative .

Selling, general and administrative expenses increased $6.3 million, or 242%, for the three months ended April 30, 2021 compared to the same period in 2020.

This increase is attributable to $5.2 million of higher compensation expense related to the valuations of our stock based compensation awards and executive bonuses and $1.5 million of medical expenses due to a higher claims experience during the three months ended April 30, 2021 as compared to the prior year period.

These increases were partially offset by a reduction in executive severance and legal charges.

Selling, gen eral and administrative expenses increased $1.0 million, or 143%, for the three months ended July 31, 2021 compared to the same period in 2020.

This increase is attributable to $1.7 million of medical expenses due to a higher claims experience partially offset by $0.4 million of lower compensation expense related to the valuations of our stock based compensation awards and executive bonuses during the three months ended July 31, 2021 as compared to the prior year period.

Changes related to Non-Operating Items:

Interest Expense .

Interest expense decreased $1.0 million for the three months ended April 30, 2021 compared to the same period in 2020 as a result of lower interest rates and lower borrowings during the period.

Interest expense decreased $0.6 million for the three months ended July 31, 2021 compared to the same period in 2020 as a re sult of lower interest rates and lower borrowings outstanding during the period.

Income Taxes .

We recorded income tax expense of $6.5 million on pre-tax income of $21.0 million for the three months ended April 30, 2021, an effective rate of 30.7%, and income tax expense of $2.1 million on pre-tax income of $7.6 million for the three months ended April 30, 2020, an effective rate of 27.9%.

The $4.4 million increase in income tax expense year-over-year corresponds with the increase in pre-tax income .

Six Months Ended April 30, 2021 Compared to Six Months Ended April 30, 2020

Six Months Ended April 30,

We recorded income tax expense of $7.5 million on pre-tax income of $21.2 million for the three months ended July 31, 2021, an effective rate of 35.3%, and income tax expense of $4.4 million on pre-tax income of $15.2 million for the three months ended July 31, 2020, an effective rate of 28.6% .

The $3.1 million increase in income tax expense year-over-year was primarily driven by the remeasurement of our deferred income tax assets and liabilities related to the increase in the corporate tax rate in the U.K.

from 19% to 25%.

Nine Months Ended July 31, 2021 Compared to Nine Months Ended July 31, 2020

Nine Months Ended July 31,

2021 2020 Change $ % Variance

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NA Fenestration

Six Months Ended April 30,

Nine Months Ended July 31,

2021 2020 $ Change % Variance

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Operating income margin 10 % 6 %

Net sales increased $55.3 million , o r 25%, for the six months ended April 30, 2021 compared to the same period in 2020, which was primarily driven by a $48.3 million increase in volumes, including a recovery from prior year COVID-19 impacts, and an increase in price and raw material surcharges of $7.0 million.

Net sale s increased $80.6 million, or 24%, for the nine months ended July 31, 2021 compared to the same period in 2020, which was primarily driven by a $66.8 million increase in volumes, including a recovery from prior year COVID-19 impacts, and an increase in price and raw material surcharges of $13.9 million.

Cost of Sales.

The cost of sales increased $38.0 million, or 22%, for the six months ended April 30, 2021 as compared to the same period in 2020.

Cost of sales increased primarily due to higher volumes during the period.

The cost of sales increased $61.8 million, or 23%, for the nine months ended July 31, 2021 as compared to the same period in 2020.

Cost of sales, including labor, increased primarily due to higher volumes during the period as well as the inflation of raw materials.

Selling, General and Administrative.

S elling, general and administrative expenses increased $2.6 million, or 11%, for the six months ended April 30, 2021 as compared to the same period in 2020.

S elling, general and administrative expenses increased $3.9 million, or 11%, for the nine months ended July 31, 2021 as compared to the same period in 2020.

This increase was due primarily to higher compensation year-over-year.

Restructuring Charges.

Restructuring charges for the six months April, 30 2020 relate to facility lease expense for a U.S.

Restru cturing charges for the nine months ended July 31, 2020 relate to facility lease expense for a U.S.

vinyl extrusion plant which was closed in January 2017.

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Depreciation and Amortization.

Depreciation and amortization expense decreased $2.9 million compared to the six months ended April 30, 2021 and 2020, reflecting the run-off of depreciation expense related to existing assets and disposals during the period.

Depreciation and amortization expense decreased $3.9 million for the nine months ended July 31, 2021 as compared to the same period in 2020 , reflectin g the run-off of depreciation expense related to existing assets and disposals during the period.

EU Fenestration

Six Months Ended April 30,

Nine Months Ended July 31,

2021 2020 $ Change Variance %

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Operating income margin 16 % 9 %

Net sales increased $44.7 million, or 68%, comparing the six months ended April 30, 2021 to the same period in 2020, which was primarily driven by a $37.5 million increase in volumes, including a recovery from prior year COVID-19 impacts and the reopening of manufacturing facilities in the U.K.

Net sales increased $77.7 million, or 75%, comparing the nine months ended July 31, 2021 to the same period in 2020, which was primarily driven by a $64.4 million increase in volumes, including a recovery from prior year COVID-19 impacts and the reopening of manufacturing facilities in the U.K.

which were forced to close for several weeks in the second quarter of 2020, $8.6 million of foreign currency rate changes, and $4.6 million of base price increases.

Cost of Sales.

The cos t of sales increased $27.0 million, or 58%, for the six months ended April 30, 2021 compared to the same period in 2020.

The cos t of sales increased $50.5 million, or 70%, for the nine months ended July 31, 2021 compared to the same period in 2020.

Cost of sales increased primarily due to higher volumes during the period.

Selling, General and Administrative.

Selling, general and administrative expense increased $2.7 million, or 24%, for the six months ended April 30, 2021 compared to the same period in 2020.

The increase is primarily due to higher compensation, general expenses and foreign currency impacts year-over-year.

Selling, general and administrative expense increased $5.6 million, or 35%, for the nine months ended July 31, 2021 compared to the same period in 2020.

The increase is primarily du e to higher compensation, general expenses and foreign currency impacts year-over-year.

NA Cabinet Components

Six Months Ended April 30,

Nine Months Ended July 31,

2021 2020 $ Change Variance %

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Operating loss margin (1) % (2) %

Net sales increased $16.9 million , or 17% , for the six months ended April 30, 2021 compared to the same period in 2020 , which was driven by a $15.8 million increase in volumes, including a recovery from prior year COVID-19 impacts, and an increase in price and raw material indexes of $1.1 million.

Net sales increased $26.9 million , or 18% , for the nine months ended July 31, 2021 compared to the same period in 2020 , which was driven by a $19.8 million increase in volumes and an increase in price and raw material indexes of $7.1 million.

Cost of Sales .

Cost of sales increased $13.0 million , or 15%, for the six months ended April 30, 2021 compared with the same period in 2020, primarily as a result of higher volumes and rising lumber prices, which are recovered on a lag.

Cost of sales increased $23.2 million, or 18%, for the nine months ended July 31, 2021 compared with the same period in 2020, primarily as a result of higher volumes and rising lumber prices, which are recovered on a lag.

Selling, General and Administrative .

Selling, general and administrative expense increased $1.4 million, or 16%, for the six months ended April 30, 2021 compared to the same period in 2020, primarily due to higher compensation and general expenses year-over-year.

Selling, general and administrative expense increased $2.0 million, or 15%, for the nine months ended July 31, 2021 compared to the same period in 2020, primarily due to higher compensation and general expenses year-over-year.

Restructuring Charges .

Restructuring charges of $0.2 million in the six months ended April 30, 2020 related to severance, equipment moving, and other charges incurred for a plant closure.

Restructuring charges of $0.3 million in the nine months ended July 31, 2020 related to severance, equipment moving, and other charges incurred for a plant closure.

Unallocated Corporate & Other

Six Months Ended April 30,

Nine Months Ended July 31,

2021 2020 $ Change Variance %

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Operating (loss) income $ (14.1) $ 0.3 $ (14.4) (4,800)%

Net sales for Unallocated Corporate & Other represents the elimination of inter-segment sales for the six months ended April 30, 2021 and 2020.

Net sales for Unallocated Corporate & Other represents the elimination of inter-segment sales for the nine months ended July 31, 2021 and 2020.

Cost of Sales .

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Selling, General and Administrative .

Selling, general and administrative expenses increased $13.0 million, or 565%, for the six months ended April 30, 2021 compared to the same period in 2020.

This increase is attributable to $9.7 million of higher compensation expense related to the valuations of our stock based compensation awards and executive bonuses, $3.1 million of medical expenses due to a higher claims experience during the six months ended April 30, 2021 as compared to the prior year period, and $1.4 million of loss on the sale of a plant.

Selling, general and administrative expenses increased $14.0 million, or 875%, for the nine months ended July 31, 2021 compared to the same period in 2020.

This increase is attributable to $9.3 million of higher compensation expense related to the valuations of our stock based compensation awards and executive bonuses, $4.8 million of medical expenses due to a higher claims experience during nine months ended July 31, 2021 as compared to the prior year period, and $1.4 million of loss on the sale of a plant.

These increases were partially offset by a reduction in executive severance and legal charges.

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Interest Exp ense .

Interest expense decreased $1.7 million for the six months ended April 30, 2021 compared to the same period in 2020 as a result of lower interest rates and lower borrowings during the period.

Interest expense decreased $2.3 million for the nine months ended July 31, 2021 compared to the same period in 2020 as a result of lower interest rates and lower borrowings outstanding during the period.

Income Taxes .

We recorded income tax expense of $9.9 million on pre-tax income of $32.3 million for the six months ended April 30, 2021, an effective rate of 30.6%, and income tax expense of $2.6 million on a pre-tax income of $8.1 million for the six months ended April 30, 2020, an effective rate of 31.7%.

The $7.3 million increase in income tax expense year-over-year corresponds with the increase in pre-tax income.

We recorded income tax expense of $17.4 million on pre-tax income of $53.5 million for the nine months ended July 31, 2021, an effective rate of 32.5%, and income tax expense of $6.9 million on a pre-tax income of $23.2 million for the nine months ended July 31, 2020, an effective rate of 29.7%.

The $10.5 million increase in income tax expense year-over-year was primarily driven by the increase in pre-tax book income as well as the remeasurement of our deferred income tax assets and liabilities related to the increase in the corporate tax rate in the U.K.

from 19% to 25%.

Liquidity and Capital Resources

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We maintain a $325.0 million revolving credit facility (the Credit Facility) that matures in 2023 (5-year term) and requires interest payments calculated at a variable market rate depending upon our Consolidated Leverage Ratio.

The applicable rate during the six months ended April 30, 2021 ranged from LIBOR + 1.50% to LIBOR + 1.25%.

The applicable rate during the nine months ended July 31, 2021 ranged from LIBOR + 1.50% to LIBOR + 1.25%.

Our cost of capital could increase depending upon the Consolidated Leverage Ratio at the end of any given quarter.

2 unchanged sentences

For further details of the Credit Facility, refer to Note 4, “Debt and Finance Lease Obligations” to the accompanying unaudited condensed consolidated financial statements contained elsewhere herein.

As of April 30, 2021, w e had $49.3 million of cash and equivalents, $73.0 million outstanding under the Credit Facility, $4.5 million of outstanding letters of credit and $15.7 million outstanding under finance leases and other debt.

We had $247.5 million available for use under the Credit Facility at April 30, 2021.

We repatriated $8.8 million and $3.1 million of f oreign cash during the six months ended April 30, 2021 and 2020, respectively.

As of July 31, 2021, w e had $43.7 million of cash and equivalents, $58.0 million outstanding under the Credit Facility, $4.5 million of outstanding letters of credit and $16.0 million outstanding under finance leases and other debt.

We had $262.5 million available for use under the Credit Facility at July 31, 2021.

We repatriated $17.7 million and $12.6 million of f oreign cash during the nine months ended July 31, 2021 and 2020, respectively.

We expect to repatriate excess cash moving forward and use the funds to retire debt or meet current working capital needs.

Funds from operations may be impacted by softer demand and liquidity concerns of our customers as a result of COVID-19.

In the U.K., we insure against a portion of our credit losses.

In light of the COVID-19 pandemic, the Company has implemented a range of actions aimed at reducing costs and preserving liquidity.

We believe our business model, our current cash reserves and the recent steps we have taken to strengthen our balance sheet leave us well-positioned to manage our business and remain in compliance with our debt covenants.

Analysis of Cash Flow

The following table summarizes our cash flow results for the six months ended April 30, 2021 and 2020:

Six Months Ended

The following table summarizes our cash flow results for the nine months ended July 31, 2021 and 2020:

Nine Months Ended

(In millions)

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Cash used for investing activities $ (12.9) $ (20.5)

Cash (used for) provided by financing activities $ (24.3) $ 63.5

Cash used for financing activities $ (43.5) $ (17.4)

Operating Activities .

Cash provided by operating activities for the six months ended April 30, 2021 increased $26.5 million compared to the six months ended April 30, 2020 .

Higher net income year-over-year due to increased demand and improvements in working capital management were the primary drivers of this operating cash growth.

Cash provided by operating activities for the nine months ended July 31, 2021 decreased $0.2 million compared to the nine months ended July 31, 2020.

The decrease in cash provided by operating activities is primarily due to an increase in working capital partially offset by higher net income year-over-year due to increased demand.

The increase in working capital was largely driven by an inventory build and raw material price inflation.

Investing Activities.

Cash used f or investing activities decreased $8.2 million for the six months ended April 30, 2021 compared to the same period in 2020, primarily as a result of lower capital expenditures.

Cash used f or investing activities decreased $7.6 million for the nine months ended July 31, 2021 compared to the same period in 2020, primarily as a result of lower capital expenditures and an increase in proceeds from disposition of capital assets.

Financing Activities.

Cash used for financing activities was $24.3 million for the six months ended April 30, 2021, which included $30.6 million of net debt repayments, $5.3 million of dividends paid to our shareholders, and $4.0 million of treasury stock repurchases.

Our use of cash was partially offset by $16.1 million of proceeds from stoc k option exercises.

Cash used for financing activities was $43.5 million for the nine months ended July 31, 2021, which included $45.5 million of debt repayments, $8.0 million of dividends paid to our shareholders, and $5.7 million of treasury stock repurchases.

Our use of cash was partially offset by $16.3 million of proceeds from stock option exercises.

Liquidity Requirements

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Other uses of cash include paying cash dividends to our shareholders and repurchasing our common stock.

During the six months ended April 30, 2021 and 2020, we repatriated repatriations $8.8 million and $3.1 million, respectively, of foreign earnings from our foreign locations.

We maintain cash balances in foreign countries which total $15.0 million as of April 30, 2021.

During the nine months ended July 31, 2021 and 2020, we repatriated $17.7 million and $12.6 million, respectively, of foreign earnings from our foreign locations.

We maintain cash balances in foreign countries which total $16.8 million as of July 31, 2021.

Critical Accounting Policies and Estimates

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For a description of our critical accounting policies and estimates, see our Annual Report on Form 10-K for the fiscal year ended October 31, 2020.

Our critical accounting policies and estimates have not changed materially during the six months ended April 30, 2021.

Our critical accounting policies and estimates have not changed materially during the nine months ended July 31, 2021.

While there have been no changes in the application of principles, methods, and assumptions used to determine our significant estimates, we may be required to revise certain accounting estimates and judgments related to the economic and business impact of the COVID-19 pandemic, such as, but not limited to, those related to the valuation of goodwill, intangibles, long-lived assets, accounts receivable, and inventory, which could have a material adverse effect on our financial position and results of operations.

8 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis