EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1

NICE Reports Strong Third Quarter 2019 Financial Results Driven by
Robust Growth in Cloud Revenue

Recurring Revenue Increased to a Record 74% of Total Revenue
Company Raises Full Year EPS Guidance

Hoboken, New Jersey, November 14, 2019 - NICE (NASDAQ: NICE) today announced results for the third quarter ended September 30, 2019.

Third Quarter 2019 Financial Highlights

GAAP
Non-GAAP
Cloud revenue of $151 million, growth of 29% year-over-year
Cloud revenue of $152 million, growth of 27% year-over-year
Total revenue of $386 million, growth of 8% year-over-year
Total revenue of $387 million, growth of 8% year-over-year
Gross margin of 65.7% compared to 65.3% last year
Gross margin of 70.9% compared to 71.0% last year
Operating income of $56 million compared to $47 million last year, an increase of 19%
Operating income of $106 million compared to $97 million last year, an increase of 9%
Operating margin of 14.4% compared to 13.1% last year
Operating margin of 27.4% compared to 27.0% last year
Diluted EPS of $0.69 versus $0.62 last year, 11% growth year-over-year
Diluted EPS of $1.30 versus $1.20 last year, 8% growth year-over-year
 
“We are pleased to report another quarter of strong results driven by further robust growth in the cloud,” said Barak Eilam, CEO of NICE. “Our cloud revenue now represents nearly 40% of our total revenue, demonstrating the great success we are experiencing in our cloud business.”
 
Mr. Eilam continued, “Our growth is being fueled by strong demand for CXone. The number of quarterly deals continue to increase as we win in more market segments and geographies.  At the same time, deal sizes are growing rapidly, demonstrating the fast adoption of CXone by very large enterprises, and the attachment rates of our seamlessly integrated workforce optimization and analytics are increasing significantly. CXone gives us front-runner status and a distinct competitive differentiation to capture the many opportunities provided by a market that is quickly transforming to the cloud.”
 
GAAP Financial Highlights for the Third Quarter Ended September 30:
 
Revenues: Third quarter 2019 total revenues increased 8.4% to $386.3 million compared to $356.2 million for the third quarter of 2018.

Gross Profit: Third quarter 2019 gross profit and gross margin increased to $253.6 million and 65.7%, respectively, from $232.7 million and 65.3%, respectively, for the third quarter of 2018.

Operating Income: Third quarter 2019 operating income and operating margin increased to $55.7 million and 14.4%, respectively, compared to $46.7 million and 13.1%, respectively, for the third quarter of 2018.

Net Income: Third quarter 2019 net income and net income margin increased to $45.0 million and 11.7%, respectively, compared to $39.3 million and 11.0%, respectively, for the third quarter of 2018.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the third quarter of 2019 increased 11.3% to $0.69, compared to $0.62 in the third quarter of 2018.

Operating Cash Flow and Cash Balance: Third quarter 2019 operating cash flow was $82.3 million. In the third quarter $7.9 million was used for share repurchases. As of September 30, 2019, total cash and cash equivalents, short and long term investments were $927.5 million, and total debt was $462.6 million.
 
Non-GAAP Financial Highlights for the Third Quarter Ended September 30:
 
Revenues: Third quarter 2019 non-GAAP total revenues increased to $387.1 million, up 7.9% from $358.6 million for the third quarter of 2018.

Gross Profit: Third quarter 2019 non-GAAP gross profit increased to $274.4 million from $254.7 million. Third quarter 2019 non-GAAP gross margin was 70.9% compared to 71.0% for the third quarter of 2018.

Operating Income: Third quarter 2019 non-GAAP operating income and non-GAAP operating margin increased to $105.9 million and 27.4%, respectively, from $96.7 million and 27.0%, respectively, for the third quarter of 2018.

Net Income: Third quarter 2019 non-GAAP net income and non-GAAP net income margin increased to $84.3 million and 21.8%, respectively, from $76.3 million and 21.3%, respectively, for the third quarter of 2018.

Fully Diluted Earnings Per Share: Third quarter 2019 non-GAAP fully diluted earnings per share increased 8.3% to $1.30, compared to $1.20 for the third quarter of 2018.
 
Full Year 2019 Guidance:
 
Full-year 2019 non-GAAP total revenue is expected to be in a range of $1,563 million to $1,583 million (2018 non-GAAP: $1,453.4 million).

The Company increased full year 2019 non-GAAP fully diluted earnings per share to be in an expected range of $5.15 to $5.35 (2018 non-GAAP: $4.75 per share).


Quarterly Results Conference Call

NICE management will host its earnings conference call today November 14th, 2019 at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. To participate in the call, please dial in to the following numbers: United States 1-866-804-8688 or +1-718-354-1175, International +44(0)1296-480-100, United Kingdom 0-800-783-0906, Israel 1-809-344-364. The Passcode is 662 849 54. Additional access numbers can be found at http://www.btconferencing.com/globalaccess/?bid=54_attended. The call will be webcast live on the Company’s website at https://www.nice.com/investor-relations/upcoming-event. An online replay will also be available approximately two hours following the call. A telephone replay of the call will be available for 7 days after the live broadcast and may be accessed by dialing: United States 1-877-482-6144, International +44(0)20-7136-9233, United Kingdom 0-800-032-9687. The Passcode for the replay is 334 744 17.

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, share-based compensation, certain business combination accounting entries, amortization of discount on long term debt, tax adjustment re non-GAAP adjustments. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Business combination accounting rules requires us to recognize a legal performance obligation related to a revenue arrangement of an acquired entity. The amount assigned to that liability should be based on its fair value at the date of acquisition. The non-GAAP adjustment is intended to reflect the full amount of such revenue. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income.

About NICE
NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.

Investors
Marty Cohen, +1 551 256 5354, ir@nice.com, ET
Yisca Erez, +972 9 775-3798, ir@nice.com, CET

Media Contact
Chris Irwin-Dudek, +1 (551) 256-5140, Chris.Irwin-Dudek@nice.com          

Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE.  All other marks are trademarks of their respective owners.  For a full list of NICE' marks, please see: http://www.nice.com/nice-trademarks.

Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “believe,” “expect,” “seek,” “may,” “will,” “intend,” “should,” “project,” “anticipate,” “plan,” and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company’s management regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business.
 
Forward looking statements are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.  These factors, include, but are not limited to, risks associated with competition, success and growth of the Company’s cloud Software-as-a-Service business, cyber security attacks or other security breaches against the Company, privacy concerns and legislation impacting the Company’s business, the Company’s dependency on third-party cloud computing platform providers, hosting facilities and service partners, changes in general economic and business conditions, rapidly changing technology, changes in currency exchange rates and interest rates, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel, successful execution of the Company’s growth strategy, the effects of tax reforms and of newly enacted or modified laws, regulation or standards on the Company and its products, and other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”). You are encouraged to carefully review the section entitled “Risk Factors” in our latest Annual Report on Form 20-F and our other filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance. The forward-looking statements contained in this presentation speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new information, future developments or otherwise, except as required by law.

NICE LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share amounts)

   
Quarter ended
    
Year to date
  
   
September 30,
    
September 30,
  
   
2019
    
2018
    
2019
    
2018
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
Revenue:
                        
Product
  
$
56,950
    
$
60,097
    
$
188,999
    
$
170,864
  
Services
    
178,609
      
179,113
      
525,947
      
533,458
  
Cloud
    
150,704
      
116,996
      
428,758
      
329,368
  
Total revenue
    
386,263
      
356,206
      
1,143,704
      
1,033,690
  
                                 
Cost of revenue:
                                
Product
    
5,318
      
7,854
      
16,850
      
23,386
  
Services
    
54,476
      
55,046
      
164,218
      
170,584
  
Cloud
    
72,877
      
60,559
      
213,418
      
166,690
  
Total cost of revenue
    
132,671
      
123,459
      
394,486
      
360,660
  
                                 
Gross profit
    
253,592
      
232,747
      
749,218
      
673,030
  
                                 
Operating expenses:
                                
Research and development, net
    
48,531
      
47,701
      
141,553
      
137,023
  
Selling and marketing
    
96,138
      
90,492
      
293,083
      
270,238
  
General and administrative
    
42,438
      
37,560
      
121,181
      
107,048
  
Amortization of acquired intangible assets
    
10,780
      
10,341
      
32,276
      
31,512
  
Total operating expenses
    
197,887
      
186,094
      
588,093
      
545,821
  
                                 
Operating income
    
55,705
      
46,653
      
161,125
      
127,209
  
                                 
Finance and other expense, net
    
(252
)
    
2,195
      
3,890
      
9,100
  
                                 
Income before tax
    
55,957
      
44,458
      
157,235
      
118,109
  
Taxes on income
    
10,918
      
5,175
      
33,074
      
21,065
  
Net income
  
$
45,039
    
$
39,283
    
$
124,161
    
$
97,044
  
                                 
Earnings per share:
                                
Basic
  
$
0.72
    
$
0.64
    
$
2.00
    
$
1.58
  
Diluted
  
$
0.69
    
$
0.62
    
$
1.93
    
$
1.54
  
                                 
Weighted average shares outstanding:
                                
Basic
    
62,160
      
61,448
      
62,041
      
61,239
  
Diluted
    
65,066
      
63,660
      
64,493
      
63,157
  


NICE LTD. AND SUBSIDIARIES
                        
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
                        
U.S. dollars in thousands (except per share amounts)
                        
                         
    
Quarter ended
    
Year to date
  
    
September 30,
    
September 30,
  
   
2019
    
2018
    
2019
    
2018
  
GAAP revenues
  
$
386,263
    
$
356,206
    
$
1,143,704
    
$
1,033,690
  
Valuation adjustment on acquired deferred product revenue
    
-
      
12
      
15
      
97
  
Valuation adjustment on acquired deferred services revenue
    
3
      
82
      
5
      
588
  
Valuation adjustment on acquired deferred cloud revenue
    
867
      
2,329
      
2,692
      
5,631
  
Non-GAAP revenues
  
$
387,133
    
$
358,629
    
$
1,146,416
    
$
1,040,006
  
                                 
GAAP cost of revenue
  
$
132,671
    
$
123,459
    
$
394,486
    
$
360,660
  
Amortization of acquired intangible assets on cost of product
    
(1,123
)
    
(1,094
)
    
(2,972
)
    
(5,019
)
Amortization of acquired intangible assets on cost of services
    
(1,535
)
    
(1,523
)
    
(4,604
)
    
(3,333
)
Amortization of acquired intangible assets on cost of cloud
    
(15,270
)
    
(12,937
)
    
(45,118
)
    
(38,397
)
Valuation adjustment on acquired deferred cost of cloud
    
575
      
594
      
1,893
      
1,254
  
Cost of product revenue adjustment (1)
    
(97
)
    
(59
)
    
(304
)
    
(247
)
Cost of services revenue adjustment (1)
    
(2,106
)
    
(2,113
)
    
(6,251
)
    
(5,762
)
Cost of cloud revenue adjustment (1)
    
(358
)
    
(2,352
)
    
(2,142
)
    
(3,766
)
Non-GAAP cost of revenue
  
$
112,757
    
$
103,975
    
$
334,988
    
$
305,390
  
                                 
GAAP gross profit
  
$
253,592
    
$
232,747
    
$
749,218
    
$
673,030
  
Gross profit adjustments
    
20,784
      
21,907
      
62,210
      
61,586
  
Non-GAAP gross profit
  
$
274,376
    
$
254,654
    
$
811,428
    
$
734,616
  
                                 
GAAP operating expenses
  
$
197,887
    
$
186,094
    
$
588,093
    
$
545,821
  
Research and development (1,2)
    
(2,033
)
    
(2,638
)
    
(5,182
)
    
(6,777
)
Sales and marketing (1,2)
    
(7,737
)
    
(9,004
)
    
(19,211
)
    
(22,158
)
General and administrative (1,2)
    
(8,962
)
    
(6,206
)
    
(24,378
)
    
(15,156
)
Amortization of acquired intangible assets
    
(10,780
)
    
(10,341
)
    
(32,276
)
    
(31,512
)
Valuation adjustment on acquired deferred commission
    
76
      
-
      
245
      
-
  
Non-GAAP operating expenses
  
$
168,451
    
$
157,905
    
$
507,291
    
$
470,218
  
                                 
GAAP finance & other expense (income), net
  
$
(252
)
  
$
2,195
    
$
3,890
    
$
9,100
  
Amortization of discount on long-term debt
    
(2,377
)
    
(2,234
)
    
(6,847
)
    
(6,491
)
Non-GAAP finance & other expense (income), net
  
$
(2,629
)
  
$
(39
)
  
$
(2,957
)
  
$
2,609
  
                                 
GAAP taxes on income
  
$
10,918
    
$
5,175
    
$
33,074
    
$
21,065
  
Tax adjustments re non-GAAP adjustments
    
13,324
      
15,322
      
33,258
      
34,413
  
Non-GAAP taxes on income
  
$
24,242
    
$
20,497
    
$
66,332
    
$
55,478
  
                                 
GAAP net income
  
$
45,039
    
$
39,283
    
$
124,161
    
$
97,044
  
Valuation adjustment on acquired deferred revenue
    
870
      
2,423
      
2,712
      
6,316
  
Valuation adjustment on acquired deferred cost of cloud revenue
    
(575
)
    
(594
)
    
(1,893
)
    
(1,254
)
Amortization of acquired intangible assets
    
28,708
      
25,895
      
84,970
      
78,261
  
Valuation adjustment on acquired deferred commission
    
(76
)
    
-
      
(245
)
    
-
  
Share-based compensation (1)
    
21,293
      
17,258
      
56,625
      
48,752
  
Acquisition related expenses (2)
    
-
      
5,114
      
843
      
5,114
  
Amortization of discount on long term debt
    
2,377
      
2,234
      
6,847
      
6,491
  
Tax adjustments re non-GAAP adjustments
    
(13,324
)
    
(15,322
)
    
(33,258
)
    
(34,413
)
Non-GAAP net income
  
$
84,312
    
$
76,291
    
$
240,762
    
$
206,311
  
                                 
GAAP diluted earnings per share
  
$
0.69
    
$
0.62
    
$
1.93
    
$
1.54
  
                                 
Non-GAAP diluted earnings per share
  
$
1.30
    
$
1.20
    
$
3.73
    
$
3.27
  
                                 
Shares used in computing GAAP diluted earnings per share
    
65,066
      
63,660
      
64,493
      
63,157
  
                                 
Shares used in computing non-GAAP diluted earnings per share
    
65,066
      
63,660
      
64,493
      
63,157
  

NICE LTD. AND SUBSIDIARIES
                        
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
                        
U.S. dollars in thousands
                        
                         
(1) Share-based Compensation
                        
    
Quarter ended
    
Year to date
  
    
September 30,
    
September 30,
  
   
2019
    
2018
    
2019
    
2018
  
                         
Cost of product revenue
  
$
97
    
$
59
    
$
304
    
$
247
  
Cost of services revenue
    
2,106
      
2,113
      
6,251
      
5,762
  
Cost of cloud revenue
    
358
      
718
      
2,142
      
2,132
  
Research and development
    
2,033
      
1,567
      
5,177
      
5,706
  
Sales and marketing
    
7,737
      
8,930
      
19,181
      
22,084
  
General and administrative
    
8,962
      
3,871
      
23,570
      
12,821
  
    
$
21,293
    
$
17,258
    
$
56,625
    
$
48,752
  

(2) Acquisition related expenses
                        
    
Quarter ended
    
Year to date
  
    
September 30,
    
September 30,
  
   
2019
    
2018
    
2019
    
2018
  
                         
Cost of cloud revenue
  
$
-
    
$
1,634
    
$
-
    
$
1,634
  
Research and development
    
-
      
1,071
      
5
      
1,071
  
Sales and marketing
    
-
      
74
      
30
      
74
  
General and administrative
    
-
      
2,335
      
808
      
2,335
  
    
$
-
    
$
5,114
    
$
843
    
$
5,114
  

NICE LTD. AND SUBSIDIARIES
                        
CONSOLIDATED CASH FLOW STATEMENTS
                        
U.S. dollars in thousands
                        
   
Quarter ended
    
Year to date
  
   
September 30,
    
September 30,
  
   
2019
    
2018
    
2019
    
2018
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
Operating Activities
                        
                         
Net income
  
$
45,039
    
$
39,283
    
$
124,161
    
$
97,044
  
Depreciation and amortization
    
43,924
      
39,426
      
128,744
      
114,283
  
Stock based compensation
    
21,273
      
17,258
      
56,589
      
48,752
  
Amortization of premium and discount and accrued interest on marketable securities
    
387
      
137
      
(187
)
    
(170
)
Deferred taxes, net
    
(12,485
)
    
(13,142
)
    
(31,107
)
    
(33,054
)
Changes in operating assets and liabilities:
                                
Trade Receivables
    
6,788
      
(5,771
)
    
26,900
      
(3,083
)
Prepaid expenses and other assets
    
(15,626
)
    
(4,233
)
    
(88,157
)
    
(32,461
)
Trade payables
    
(8,791
)
    
(8,940
)
    
(5,073
)
    
(6,608
)
Accrued expenses and other current liabilities
    
44,173
      
34,643
      
53,789
      
24,179
  
Operating lease right-of-use assets, net
    
4,346
      
-
      
11,842
      
-
  
Deferred revenue
    
(45,558
)
    
(15,279
)
    
13,311
      
71,827
  
Long term liabilities
    
(20
)
    
573
      
(300
)
    
(214
)
Operating lease liabilities
    
(2,836
)
    
-
      
(11,995
)
    
-
  
Amortization of discount on long term debt
    
2,379
      
2,234
      
6,848
      
6,491
  
Other
    
(672
)
    
847
      
(2,656
)
    
720
  
  Net cash provided by operating activities
    
82,321
      
87,036
      
282,709
      
287,706
  
                                 
Investing Activities
                                
                                 
Purchase of property and equipment
    
(6,545
)
    
(7,957
)
    
(21,527
)
    
(21,521
)
Purchase of Investments
    
(187,752
)
    
(96,544
)
    
(493,894
)
    
(284,467
)
Proceeds from Investments
    
113,121
      
40,093
      
283,629
      
99,802
  
Capitalization of software development costs
    
(8,549
)
    
(7,450
)
    
(25,940
)
    
(22,926
)
Payments for business and asset acquisitions, net of cash acquired
    
(184
)
    
(105,046
)
    
(25,972
)
    
(105,046
)
  Net cash used in investing activities
    
(89,909
)
    
(176,904
)
    
(283,704
)
    
(334,158
)
                                 
Financing Activities
                                
                                 
Proceeds from issuance of shares upon exercise of share options
    
1,693
      
10,533
      
4,711
      
17,976
  
Purchase of treasury shares
    
(7,897
)
    
-
      
(22,612
)
    
(10,613
)
Repayment of short-term bank loan
    
-
      
(8,436
)
    
-
      
(8,436
)
Capital Lease payments
    
(191
)
    
-
      
(631
)
    
-
  
  Net cash used in financing activities
    
(6,395
)
    
2,097
      
(18,532
)
    
(1,073
)
                                 
Effect of exchange rates on cash and cash equivalents
    
(1,489
)
    
(875
)
    
(1,733
)
    
(4,607
)
                                 
Net change in cash and cash equivalents
    
(15,472
)
    
(88,646
)
    
(21,260
)
    
(52,132
)
Cash and cash equivalents, beginning of period
  
$
236,311
    
$
364,816
    
$
242,099
    
$
328,302
  
                                 
Cash and cash equivalents, end of period
  
$
220,839
    
$
276,170
    
$
220,839
    
$
276,170
  

NICE LTD. AND SUBSIDIARIES
            
CONDENSED CONSOLIDATED BALANCE SHEETS
            
U.S. dollars in thousands
            
             
   
September 30,
    
December 31,
  
   
2019
    
2018
  
   
Unaudited
    
Audited
  
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
220,839
    
$
242,099
  
Short-term investments
    
225,975
      
243,729
  
Trade receivables
    
259,985
      
287,963
  
Prepaid expenses and other current assets
    
134,966
      
87,450
  
                 
Total current assets
    
841,765
      
861,241
  
                 
LONG-TERM ASSETS:
                
Long-term investments
    
480,669
      
244,998
  
Property and equipment, net
    
141,336
      
140,338
  
Deferred tax assets
    
14,603
      
12,309
  
Other intangible assets, net
    
438,266
      
508,232
  
Operating lease right-of-use assets
    
111,910
      
-
  
Goodwill
    
1,371,925
      
1,366,206
  
Other long-term assets
    
117,294
      
74,042
  
                 
Total long-term assets
    
2,676,003
      
2,346,125
  
                 
TOTAL ASSETS
  
$
3,517,768
    
$
3,207,366
  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Trade payables
  
$
22,569
    
$
29,617
  
Deferred revenues and advances from customers
    
242,184
      
221,387
  
Current maturities of operating leases
    
19,022
      
-
  
Accrued expenses and other liabilities
    
414,466
      
373,908
  
                 
Total current liabilities
    
698,241
      
624,912
  
                 
LONG-TERM LIABILITIES:
                
Deferred revenues and advances from customers
    
26,140
      
35,112
  
Operating leases
    
111,239
      
-
  
Deferred tax liabilities
    
16,712
      
44,140
  
Long-term debt
    
462,588
      
455,985
  
Other long-term liabilities
    
16,538
      
30,604
  
                 
Total long-term liabilities
    
633,217
      
565,841
  
                 
SHAREHOLDERS' EQUITY
    
2,186,310
      
2,016,613
  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
3,517,768
    
$
3,207,366