Trump’s coming to Bay Area but not to Atherton

In June 2016, Intel CEO Brian Krzanich was going to hold a fundraiser for Trump in his Atherton home, but canceled the event amid criticism of the …
President Trump reacts to the song as he arrives at a rally in Phoenix on Aug. 22, 2017. AP file photo.

BY SARA TABIN

Daily Post Staff Writer

President Trump will not visit Atherton next week as previously believed, but he will still be making a trip to the Bay Area.

Trump is scheduled to come to the area on Tuesday (Sept. 17) for a fundraising event at an undisclosed location.

Politico reported two weeks ago that the fundraiser would be held in Atherton, but that has changed, according to Menlo Park Fire Chief Harold Schapelhouman.

Schapelhouman had started preliminary discussions about the event with Atherton Police Chief Steve McCulley when they were informed that the president would no longer be coming to Atherton, according to a report Schapelhouman wrote.

Harmeet Dhillon, the national committeewoman of the Republican National Committee for California, said she spoke to the White House yesterday (Sept. 13) and was certain that the fundraiser is not cancelled.

“I am planning to meet the president Tuesday here in the Bay Area,” she said.

The event may have changed venues, said Dhillon, but she would not provide any specifics about the location. “Criminal elements” in the area might try to disrupt the event if an address is released, she said.

Protests have been planned for Tuesday. Activist group Backbone Campaign was even raising funds so it could fly a giant balloon depicting Trump in a diaper over Atherton, according to SFGate.

The event is a luncheon, according to a post on Dhillon’s Facebook page, and tickets start at $1,000.

This is the second visit Trump has made to the mid-Peninsula for a fundraiser.

In August 2016, Trump went to a mystery location (believed to be in Woodside) for a similar sort of fundraiser. Tickets for that event went for $25,000 each.

In June 2016, Intel CEO Brian Krzanich was going to hold a fundraiser for Trump in his Atherton home, but canceled the event amid criticism of the Republican candidate.

During the 2016 campaign, Trump made two public appearances in the Bay Area.

On April 29, 2016, he spoke at the state Republican Convention in Burlingame that may be remembered for his unusual entrance.

Protesters gathered in front of the Hyatt Regency in Burlingame in an attempt to stop him, so Trump simply stopped his motorcade on Highway 101 behind the hotel, hopped out of his SUV, climbed over a soundwall and entered the hotel through the service entrance, bypassing the demonstrators.

On June 2, 2016, Trump held a rally in downtown San Jose, and afterward his supporters were attacked by anti-Trump demonstrators.

Dhillon, who is an attorney in San Francisco, is representing the Trump supporters who were injured in the fighting, and claims San Jose police were told to stand down during the fighting.

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Trump Doesn’t Want to Let the “Very Bad People” Fleeing Hurricane Dorian Into the US

The Trump administration had a rare moment of hospitality toward non-white immigrants on Monday, as Customs and Border Protection sought to …

The Trump administration had a rare moment of hospitality toward non-white immigrants on Monday, as Customs and Border Protection sought to distance themselves from a ferry traveling from the Bahamas to Florida that barred Bahamians from traveling without a U.S. visa. More than 100 people fleeing the devastation from Hurricane Dorian were kicked off the ferry for failing to have visas, even though under typical circumstances—and in cases of other Bahamian refugees leaving post-Dorian—the islanders had been able to travel to the U.S. with only their passport and a police record. In an uncharacteristic response, the Trump administration claimed they didn’t have anything to do with the seemingly anti-immigrant move, instead blaming the private ferry operator and insisting they would have welcomed the immigrants with open arms. “If those folks did stay on the boat and arrived, we would have processed them, vetted them, and worked within our laws and protocols and done what we had to do to facilitate them,” a CBP official told WSVN journalist Brian Entin early Monday morning, calling it a “business decision” on the ferry company’s part. “They were not ordered off the boat by any U.S. government entity.” CBP Acting Commissioner Mark Morgan then clarified in a press briefing Monday that all Bahamians would be allowed to come to the U.S., “whether you have travel documents or not.”

Of course, that moment of compassion did not last long before the president intervened. Not one to let people think his administration was going to start letting in immigrants all willy-nilly, President Donald Trump clarified to reporters Monday that those fleeing the Bahamas would only be accepted into the U.S. with “totally proper documentation.” And this being Trump, the president naturally framed his xenophobia as a way to keep out the supposedly “very bad people” fleeing the Category 5-level devastation. “We have to be very careful,” Trump said. “Look, the Bahamas had some tremendous problems with people going to the Bahamas that weren’t supposed to be there. I don’t want to allow people that weren’t supposed to be in the Bahamas to come in to the United States, including some very bad people and some very bad gang members and some very very bad drug dealers.” (The president may be referring to the Bahamas’ large population of Haitian immigrants, who have faced xenophobia in the Bahamas and a stigma that has reportedly made them particularly vulnerable in Dorian’s wake.) Trump instead touted how the U.S. government has been transporting affected Bahamians to areas of the Bahamas that were not affected, rather than bringing them to American shores. “We’ll see what happens,” he said about the recovery efforts.

Trump’s Monday comments marked the latest instance of the president using a “Trojan horse” excuse to justify keeping immigrants out of the country, claiming—without any facts to back him up—that there are lots of “bad people” and “criminals” that warrant blocking entire immigrant groups. (To name just a few examples, the president has used this claim against Syrian refugees, immigrants using family-based migration, and diversity visa lottery recipients, not to mention his campaign-launch claims that the border wall is needed because Mexico is “bringing crime” and sending “rapists” to the U.S.) Whether the president will be able to block those fleeing the Bahamas remains to be seen, though at least other politicians—including Republicans—have signaled their desire to see the U.S. offer a much-needed reprieve to those affected by the hurricane. Congresswoman Frederica Wilson and 14 other members of Florida’s congressional delegation have signed a letter asking the White House to extend Temporary Protected Status to Bahamians, which the Trump administration has said it’s considering, and Florida Senators Rick Scott and Marco Rubioasked Trump to waive or suspend visa requirements for affected Bahamians with relatives in the U.S. “As Americans, and others throughout our hemisphere and across the globe, work to provide aid and assistance for the many needs of the Bahamian people at this time, perhaps one of the most basic yet meaningful steps our government can take immediately is to ensure that those who have lost everything, including family members in some instances, are provided the opportunity for shelter and reunification with family in the United States,” the Republican senators wrote in a letter.

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Anaplan, Inc. filed 10-Q

Anaplan, Inc. filed 10-Q with SEC. Read ‘s full filing at 000156459019034375. In April 2018, the Company entered into a syndicated loan agreement …

Anaplan, Inc. filed 10-Q with SEC. Read ‘s full filing at 000156459019034375.

In April 2018, the Company entered into a syndicated loan agreement with Wells Fargo to provide a secured revolving credit facility that allows the Company to borrow up to $40.0 million, subject to an accounts receivable borrowing base, for general corporate purposes through April 2020. Any advances drawn on the credit facility will incur interest at a rate equal to (i) the highest of (A) the prime rate, (B) the federal funds rate plus 0.5%, and (C) the one-month LIBOR plus 1% less (ii) 0.5%. Interest is payable monthly in arrears with the principal and any accrued and unpaid interest due on April 30, 2020. This syndicated loan agreement was subsequently amended in September 2018. As of July 31, 2019 and January 31, 2019, the Company had not drawn down any amounts under this agreement. The Company was in compliance with the financial covenants contained in the agreement as of July 31, 2019 and January 31, 2019.

The United States and the U.K. were the only two countries that represented more than 10% of the Company’s revenue in any period. Revenue in the United States comprised of $48.9 million and 58%, and $92.1 million and 57% in the three and six months ended July 31, 2019, respectively, and $32.9 million and 57%, and $62.0 million and 57% in the three and six months ended July 31, 2018, respectively. Revenue in the U.K. comprised of $10.0 million and 12%, and $19.6 million and 12% in the three and six months ended July 31, 2019, respectively, and $8.1 million and 14%, and $15.4 million and 14% in the three and six months ended July 31, 2018, respectively.

As of July 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was $516.2 million, which consists of both billed consideration in the amount of $167.0 million and unbilled consideration in the amount of $349.2 million that the Company expects to recognize as revenue. The Company expects to recognize 29% of this amount as revenue in the remainder of fiscal year ending January 31, 2020 and 94% between August 1, 2019 and January 31, 2022.

As of January 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was $440.0 million, which consists of both billed consideration in the amount of $150.8 million and unbilled consideration in the amount of $289.2 million that the Company expects to recognize as subscription revenue. The Company expects to recognize 53% of this amount as revenue in the fiscal year ending January 31, 2020 and 98% over the three years ending January 31, 2022.

We derive the substantial majority of our revenue from subscriptions for users on our platform. Our initial subscription term is typically two to three years, although some customers commit for shorter periods. We generally bill our customers annually in advance. We also offer professional services, including consulting, implementation, and training, but are increasingly leveraging our partners to provide these services. During the three months ended July 31, 2019 and 2018, subscription revenue was $73.6 million and $49.6 million, respectively, representing a year-over-year subscription revenue growth rate of 48%. During the three months ended July 31, 2019 and 2018, services revenue was $10.9 million and $8.2 million, respectively. Our subscription revenue as a percentage of total revenue was 87% and 86% in the three months ended July 31, 2019 and 2018, respectively. During the six months ended July 31, 2019 and 2018, subscription revenue was $138.7 million and $94.5 million, respectively, representing a year-over-year subscription revenue growth rate of 47%. During the six months ended July 31, 2019 and 2018, services revenue was $21.7 million and $14.8 million, respectively. Our subscription revenue as a percentage of total revenue was 86% in the six months ended July 31, 2019 and 2018.

During the three months ended July 31, 2019 and 2018, our total revenue was $84.5 million and $57.8 million, respectively. Approximately 42% and 43% of our revenue was generated from outside of the United States in the three months ended July 31, 2019 and 2018, respectively. During the six months ended July 31, 2019 and 2018, our total revenue was $160.4 million and $109.4 million, respectively. Approximately 43% of our revenue was generated from outside of the United States in the six months ended July 31, 2019 and 2018. Our net loss was $40.6 million and $21.0 million in the three months ended July 31, 2019 and 2018, respectively, and $77.8 million and $47.2 million in the six months ended July 31, 2019 and 2018, respectively.

We believe that our focus on customer success allows us to retain and expand the subscription revenue generated from our existing customers, and is an indicator of the long-term value of our customer relationships for Anaplan as a whole. We track our performance in this area by measuring our dollar-based net expansion rate, which compares our annual recurring revenue from the same set of customers across comparable periods. The dollar-based net expansion rate was 121% and 123% as of July 31, 2019 and January 31, 2019, respectively.

International sales. Our total revenue generated outside of the United States during the three and six months ended July 31, 2019 was approximately 42% and 43%, respectively, and the three and six months ended July 31, 2018, was approximately 43%, of our total revenue. We believe global demand for our platform will continue to increase as organizations experience the benefits that our platform can provide to international enterprises with complex planning needs spanning multiple geographies. Accordingly, we believe there is significant opportunity to grow our international business. We have invested, and plan to continue to invest, ahead of this potential demand in personnel, marketing, and access to data center capacity to support our international growth.

Subscription revenue accounted for 87% and 86% for the three and six months ended July 31, 2019, respectively, and 86% for the three and six months ended July 31, 2018. Subscription revenue is driven primarily by the number of customers, the number of users at each customer, the price of user subscriptions, and renewal rates.

Total revenue was $84.5 million in the three months ended July 31, 2019 compared to $57.8 million in the three months ended July 31, 2018, an increase of $26.7 million, or 46%. Total revenue was $160.4 million in the six months ended July 31, 2019 compared to $109.4 million in the six months ended July 31, 2018, an increase of $51.0 million, or 47%.

Subscription revenue was $73.6 million, or 87% of total revenue, in the three months ended July 31, 2019, compared to $49.6 million, or 86% of total revenue, in the three months ended July 31, 2018, an increase of $24.0 million, or 48%. Subscription revenue was $138.7 million, or 86% of total revenue, in the six months ended July 31, 2019, compared to $94.5 million, or 86% of total revenue, in the six months ended July 31, 2018, an increase of $44.2 million, or 47%. The increase in subscription revenue was primarily driven by successfully expanding sales to existing customers and the acquisition of new customers in the three and six months ended July 31, 2019.

Professional services revenue was $10.9 million in the three months ended July 31, 2019 compared to $8.2 million in the three months ended July 31, 2018, an increase of $2.7 million, or 33%. Professional services revenue was $21.7 million in the six months ended July 31, 2019 compared to $14.8 million in the six months ended July 31, 2018, an increase of $6.9 million, or 46%. The increase in professional services revenue was primarily driven by sales of our professional services resulting from the growth of our customer base.

Total cost of revenue was $22.5 million in the three months ended July 31, 2019 compared to $16.0 million in the three months ended July 31, 2018, an increase of $6.5 million, or 41%. Total cost of revenue was $44.1 million in the six months ended July 31, 2019 compared to $30.0 million in the six months ended July 31, 2018, an increase of $14.1 million, or 47%.

Cost of subscription revenue was $12.2 million in the three months ended July 31, 2019 compared to $8.8 million in the three months ended July 31, 2018, an increase of $3.4 million, or 39%. The increase in cost of subscription revenue was primarily due to an increase in salary and bonuses, and benefits costs related to an increase in headcount of $1.8 million, including stock-based compensation, and an increase in amortization of our finance leases of $1.0 million.

Cost of subscription revenue was $23.3 million in the six months ended July 31, 2019 compared to $16.6 million in the six months ended July 31, 2018, an increase of $6.7 million, or 41%. The increase in cost of subscription revenue was primarily due to an increase in salary and bonuses, and benefits costs related to an increase in headcount of $3.2 million, including stock-based compensation, and an increase in amortization of our finance leases of $1.9 million.

Cost of professional services revenue was $10.3 million in the three months ended July 31, 2019 compared to $7.2 million in the three months ended July 31, 2018, an increase of $3.1 million, or 44%. The increase in cost of professional services revenue was primarily due to an increase in the partner implementation costs related to an increase in partner activity of $1.9 million, and an increase in salary and bonuses, and benefits costs of $1.1 million, including stock-based compensation.

Cost of professional services revenue was $20.8 million in the six months ended July 31, 2019 compared to $13.4 million in the six months ended July 31, 2018, an increase of $7.4 million, or 55%. The increase in cost of professional services revenue was primarily due to an increase in the partner implementation costs related to an increase in partner activity of $4.2 million, and an increase in salary and bonuses and benefits costs of $2.4 million, including stock-based compensation.

Gross profit was $62.0 million in the three months ended July 31, 2019 compared to $41.9 million in the three months ended July 31, 2018, an increase of $20.1 million, or 48%. Gross profit was $116.3 million in the six months ended July 31, 2019 compared to $79.4 million in the six months ended July 31, 2018, an increase of $36.9 million, or 46%. The increase in gross profit was the result of the increases in our subscription revenue primarily driven by successfully expanding sales to existing customers and the acquisition of new customers in the three and six months ended July 31, 2019.

Gross margin was 73% in the three months ended July 31, 2019 compared to 72% in the three months ended July 31, 2018. Gross margin was 73% in the six months ended July 31, 2019 and 2018. The increase in gross margin year-over-year was primarily due to the increase in subscription revenue, which generates a significantly higher gross margin than our professional services revenue, as a percentage of total revenue, partially offset by a decrease in our professional services gross margins. Our gross margins can fluctuate from quarter to quarter as a result of the requirements, complexity, and timing of our customers’ implementation projects that can vary significantly.

Research and development expenses were $16.4 million in the three months ended July 31, 2019 compared to $12.2 million in the three months ended July 31, 2018, an increase of $4.2 million, or 35%. The increase was primarily due to an increase in salary and bonuses, and benefits costs related to an increase in headcount of $5.2 million, including an increase in stock-based compensation of $2.2 million, partially offset by an increase in capitalized software development costs of $1.1 million.

Research and development expenses were $31.5 million in the six months ended July 31, 2019 compared to $23.8 million in the six months ended July 31, 2018, an increase of $7.7 million, or 32%. The increase was primarily due to an increase in salary and bonuses, and benefits costs related to an increase in headcount of $8.9 million, including an increase in stock-based compensation of $3.8 million, partially offset by a decrease in consulting spend of $1.9 million and an increase in capitalized software development costs of $1.6 million.

Sales and marketing expenses were $64.0 million in the three months ended July 31, 2019 compared to $38.6 million in the three months ended July 31, 2018, an increase of $25.4 million, or 66%. The increase was primarily due to an increase in salary and bonuses and benefits costs related to an increase in headcount of $15.0 million, including an increase in stock-based compensation of $7.0 million, an increase in commission expenses of $2.4 million, and an increase in conference and events of $1.4 million.

Sales and marketing expenses were $120.3 million in the six months ended July 31, 2019 compared to $77.9 million in the six months ended July 31, 2018, an increase of $42.4 million, or 54%. The increase was primarily due to an increase in salary and bonuses and benefits costs related to an increase in headcount of $28.9 million, including an increase in stock-based compensation of $12.8 million, an increase in commission expenses of $5.5 million, and an increase in company events of $1.6 million.

General and administrative expenses were $22.8 million in the three months ended July 31, 2019 compared to $11.0 million in the three months ended July 31, 2018, an increase of $11.8 million, or 106%. The increase was primarily due to an increase in salary and bonuses, and benefits costs related to an increase in headcount of $9.8 million, including an increase in stock-based compensation of $6.9 million.

General and administrative expenses were $42.8 million in the six months ended July 31, 2019 compared to $22.9 million in the six months ended July 31, 2018, an increase of $19.9 million, or 87%. The increase was primarily due to an increase in salary and bonuses, and benefits costs related to an increase in headcount of $17.5 million, including an increase in stock-based compensation of $13.1 million.

Other income (expense), net was a gain of $0.5 million in the three months ended July 31, 2019 compared to a loss of $0.2 million in the three months ended July 31, 2018, an increase of $0.8 million, or 339%. Other income (expense), net was a gain of $0.3 million in the six months ended July 31, 2019 compared to a loss of $0.6 million in the six months ended July 31, 2018, an increase of $0.9 million, or 147%. The change was primarily due to GBP decreasing in value compared to the U.S. dollar and the related remeasurements during the periods, primarily related to our U.K. operations.

The provision for income taxes was $1.3 million in the three months ended July 31, 2019 compared to $0.9 million in the three months ended July 31, 2018, an increase of $0.4 million, or 46%. The provision for income taxes was $2.4 million in the six months ended July 31, 2019 compared to $1.5 million in the six months ended July 31, 2018, an increase of $0.9 million, or 65%. The increase in provision for income taxes was primarily related to increased income generated from intercompany cost plus arrangements in certain European and Asian countries.

In April 2018, we entered into a syndicated loan agreement with Wells Fargo to provide a secured revolving credit facility that allows us to borrow up to $40.0 million, subject to an accounts receivable borrowing base, for general corporate purposes through April 2020. Any advances drawn on the credit facility will incur interest at a rate equal to (i) the highest of (A) the prime rate, (B) the federal funds rate plus 0.5% and (C) one-month LIBOR plus 1% less (ii) 0.5%. Interest is payable monthly in arrears with the principal and any accrued and unpaid interest due on April 30, 2020. There was a $6.0 million reduction of the available credit facility in April 2018 related to letters of credit for certain of our facility leases, which resulted in the simultaneous release of $6.0 million in restricted cash. As of July 31, 2019, the Company had not drawn down any amounts under this agreement.

Our results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the British Pound Sterling, Euro, and Singapore Dollar. Impacts to our operations from changes in foreign currency have been fairly limited to date and thus we have not instituted a hedging program. We expect our international operations to continue to grow in the near term and we will monitor our foreign currency exposure to determine when we should begin a hedging program. A majority of our agreements have been and we expect will continue to be denominated in U.S. dollars. A hypothetical 10% increase or decrease in the relative value of the U.S. dollar to other currencies would not have had a material effect on operating results for the six months ended July 31, 2019 and 2018.

We are exposed to market risks in the ordinary course of our business. These risks primarily include interest rate sensitivities. As of July 31, 2019, we had cash and cash equivalents of $356.0 million, which consisted primarily of bank deposits. Such interest-earning instruments carry a degree of interest rate risk; however, historical fluctuations of interest income have not been significant. We have not been exposed nor do we anticipate being exposed to material risks due to changes in interest rates. A hypothetical 10% change in interest rates would not have had a material impact on our operating results for the six months ended July 31, 2019 and 2018.

The GDPR significantly increases the level of sanctions for non-compliance from those in existing EU data protection law. EU data protection authorities will have the power to impose administrative fines for violations of the GDPR of up to a maximum of €20 million or 4% of the data controller’s or data processor’s total worldwide global turnover for the preceding financial year, whichever is higher, and actual or alleged violations of the GDPR may also lead to damages claims by data controllers and data subjects. We have taken and will continue to take steps to cause our processes to be compliant with applicable portions of the GDPR, but the rules and regulations under the GDPR may not be fully articulated and we cannot assure you that our steps will be compliant. Our efforts to comply with the GDPR or other new data protection laws and regulations may cause us to incur substantial operational costs, require us to modify our data handling practices), and may otherwise adversely impact our business, financial condition and operating results.

Furthermore, under the Tax Cuts and Jobs Act of 2017, or Tax Reform Act, although the treatment of tax losses generated in taxable years ending before December 31, 2017, has generally not changed, tax losses generated in taxable years beginning after December 31, 2017 may be utilized to offset no more than 80% of taxable income annually. The reduced availability of net operating losses in future taxable years could adversely affect our potential profitability.

In addition, under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, or the Code, our ability to utilize net operating loss carryforwards or other tax attributes, such as research tax credits, in any taxable year may be limited if we experience an ‘ownership change.’ Such an ‘ownership change’ generally occurs if one or more stockholders or groups of stockholders who own at least 5% of our stock increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. Similar rules may apply under state tax laws. We do not believe that our IPO and concurrent private placement resulted in an ownership change, or if they did, we do not believe they will trigger any material limitation on the use of our tax attributes for purposes of Section 382 of the Code. However, the extent of such limitations for prior years, if any, has not yet been determined. Future changes in our stock ownership, however, could also cause an ‘ownership change.’ It is possible that an ownership change, or any future ownership change, could have a material effect on the use of our net operating loss carryforwards or other tax attributes, which could adversely affect our potential profitability.

Our executive officers, directors, and the holders of more than 5% of our outstanding common stock, in the aggregate, beneficially owned approximately a majority of our common stock, assuming no exercise of outstanding options and no settlement of outstanding restricted stock units. As a result, these stockholders, acting together, will have significant influence over all matters that require approval by our stockholders, including the election of directors and approval of significant corporate transactions. Corporate actions might be taken even if other stockholders oppose them. This concentration of ownership might also have the effect of delaying or preventing a change of control of our company that other stockholders may view as beneficial.

In addition, as a Delaware corporation, we are subject to Section 203 of the Delaware General Corporation Law. This provision may prohibit large stockholders, in particular those owning 15% or more of our outstanding voting stock, from engaging in a business combination with us even if the business combination would be beneficial to our existing stockholders. A Delaware corporation may opt out of this provision by express provision in its original certificate of incorporation or by amendment to its certificate of incorporation or bylaws approved by its stockholders. However, we have not opted out of this provision.

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HURCO COMPANIES INC filed on Sep 06 10-Q

… rates based on, at our option, either (i) a LIBOR-based rate, or other alternative currency-based rate approved by the lender, plus 0.75% per annum, …

HURCO COMPANIES INC filed 10-Q with SEC. Read ‘s full filing at 000114420419043785.

On January 2, 2019, the Compensation Committee also approved a long-term incentive compensation arrangement for our executive officers in the form of restricted shares and performance stock units (‘PSUs’) under the 2016 Equity Plan, which will be payable in shares of our common stock if earned and vested. The awards were approximately 25% time-based vesting and approximately 75% performance-based vesting. The three-year performance period for the PSUs is fiscal 2019 through fiscal 2021.

On January 2, 2019, the Compensation Committee also granted a total target number of 30,943 PSUs to our executive officers designated as ‘PSU – TSR’. These PSUs were weighted as approximately 40% of the overall 2019 executive long-term incentive compensation arrangement and will vest and be paid based upon the total shareholder return of our common stock over the three-year period of fiscal 2019-2021, relative to the total shareholder return of the companies in a specified peer group over that period. Participants will have the ability to earn between 50% of the target number of the PSUs – TSR for achieving threshold performance and 200% of the target number of the PSUs – TSR for achieving maximum performance. The grant date fair value of the PSUs – TSR was $40.72 per PSU and was calculated using the Monte Carlo approach.

On January 2, 2019, the Compensation Committee also granted a total target number of 30,557 PSUs to our executive officers designated as ‘PSU – ROIC’. These PSUs were weighted as approximately 35% of the overall 2019 executive long-term incentive compensation arrangement and will vest and be paid based upon the achievement of pre-established goals related to our average return on invested capital over the three-year period of fiscal 2019-2021. Participants will have the ability to earn between 50% of the target number of the PSUs – ROIC for achieving threshold performance and 200% of the target number of the PSUs – ROIC for achieving maximum performance. The grant date fair value of the PSUs – ROIC was based on the closing sales price of our common stock on the grant date, which was $36.08 per share.

Borrowings under the 2018 Credit Agreement bear interest at floating rates based on, at our option, either (i) a LIBOR-based rate, or other alternative currency-based rate approved by the lender, plus 0.75% per annum, or (ii) a base rate (which is the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate or (c) the one month LIBOR-based rate plus 1.00%), plus 0.00% per annum. Outstanding letters of credit will carry an annual rate of 0.75%.

In December 2017, the U.S. Tax Cuts and Jobs Act of 2017 (the ‘Tax Reform Act’) was enacted. The Tax Reform Act lowered the U.S. corporate tax rate from 35% to 21%, implemented a territorial tax system from a worldwide system, imposed a tax on deemed repatriation of earnings of foreign subsidiaries, and added provisions related to Global Intangible Low Taxed Income (‘GILTI’) and Foreign-Derived Intangible Income (‘FDII’), among other provisions.

We recorded income tax expense during the nine months of fiscal 2019 of $6.1 million compared to $8.7 million for the same period in fiscal 2018. Our effective tax rate for the nine months of fiscal 2019 was 28%, compared to 40% in the corresponding prior year period.

The market for machine tools is international in scope. We have both significant foreign sales and significant foreign manufacturing operations. During the nine months of fiscal 2019, approximately 51% of our revenues were attributable to customers in Europe, where we typically sell more of our higher-performance, higher-priced VMX series machines. Additionally, approximately 12% of our revenues were attributable to customers in the Asia Pacific region, where we encounter greater price pressures.

Sales and Service Fees. Sales and service fees for the third quarter of fiscal 2019 were $58.5 million, a decrease of $20.3 million, or 26%, compared to the corresponding prior year period and included an unfavorable currency impact of $1.9 million, or 2%, when translating foreign sales to U.S. dollars for financial reporting purposes.

Sales in the Americas for the third quarter of fiscal 2019 increased by 8% compared to the corresponding period in fiscal 2018. The increase in sales for the third quarter fiscal 2019 was primarily attributable to sales of vertical milling machines from a U.S. machine tool distributor acquired by Hurco in the fourth quarter of fiscal 2018 located in California, one of the largest machine tool markets in the U.S., and increased customer demand for Hurco, Milltronics and Takumi vertical milling machines in the U.S. European sales for the third quarter of fiscal 2019 decreased by 31% compared to the corresponding period in fiscal 2018. Sales for the third quarter of fiscal 2019 included an unfavorable currency impact of 4% when translating foreign sales to U.S. dollars for financial reporting purposes. The decrease in European sales for the third quarter of fiscal 2019 was primarily attributable to a reduced volume of shipments of Hurco vertical milling machines in Germany and the United Kingdom. Asian Pacific sales for the third quarter of fiscal 2019 decreased by 53% compared to the corresponding period in fiscal 2018. The decrease in Asian Pacific sales for the third quarter of fiscal 2019 was primarily attributable to decreased shipments of Hurco vertical milling machines and Takumi bridge mill machines in China and an unfavorable currency impact of 2% when translating foreign sales to U.S. dollars for financial reporting purposes.

Sales of computerized machine tools and computer control systems and software decreased by 29% and 16%, respectively, for the third quarter of fiscal 2019, compared to the corresponding period in fiscal 2018, due mainly to a reduced volume of shipments of Hurco vertical milling machines and Takumi bridge mill machines. Sales of service parts decreased in the third quarter of fiscal 2019 by 8%, compared to the corresponding period in fiscal 2018, primarily due to a reduction in aftermarket sales of service parts for all three product lines, Hurco, Takumi and Milltronics. Service fees increased in the third quarter of fiscal 2019 by 2%, compared to the corresponding period in fiscal 2018. The increase was primarily attributable to aftermarket service from the newly acquired distributor.

Orders. Orders for the third quarter of fiscal 2019 were $53.0 million, a decrease of $23.0 million, or 30%, compared to the corresponding period in fiscal 2018, and included an unfavorable currency impact of $1.8 million, or 2%, when translating foreign orders to U.S. dollars.

Orders in the Americas for the third quarter of fiscal 2019 decreased by 8%, compared to the corresponding period in fiscal 2018, due primarily to decreased customer demand in the U.S. for Hurco vertical milling machines, partially offset by an increase in orders for Takumi vertical milling machines and vertical milling machines sold by the newly acquired distributor. European orders for the third quarter of fiscal 2019 decreased by 39%, compared to the corresponding prior year period, and included an unfavorable currency impact of 4% when translating foreign orders to U.S. dollars. The year-over-year decrease in orders was driven primarily by decreased customer demand for Hurco vertical milling machines in Germany, the United Kingdom and France, as well as a decrease in customer demand for electro-mechanical components and accessories manufactured by LCM. Asian Pacific orders for the third quarter of fiscal 2019 decreased by 37%, compared to the corresponding prior year period and included an unfavorable currency impact of 2% when translating foreign orders to U.S. dollars. The decrease in orders for the third quarter of fiscal 2019 was mainly the result of decreased customer demand for Hurco vertical milling machines in India and Southeast Asia and Takumi bridge mill machines in China.

Gross Profit. Gross profit for the third quarter of fiscal 2019 was $17.2 million, or 29% of sales, compared to $24.5 million, or 31% of sales, for the corresponding prior year period. The gross profit for the third quarter of fiscal 2019 remained generally stable at approximately 30%, despite the reduction in sales volume year over year, due to an increased mix of larger, higher-priced vertical milling machine sales and margin contribution from vertical milling machine sales from the newly acquired distributor.

Operating Expenses. Selling, general and administrative expenses for the third quarter of fiscal 2019 were $12.6 million, or 22% of sales, compared to $15.2 million, or 19% of sales, in the corresponding period in fiscal 2018, and included a favorable currency impact of $278,000 when translating foreign expenses to U.S. dollars for financial reporting purposes. The decrease in year-over-year selling, general and administrative expenses was primarily related to decreased variable employee compensation and other operating expense reductions implemented during the year, partially offset by increased operating expenses associated with the newly acquired distributor.

Income Taxes. The effective tax rate for the third quarter of fiscal 2019 was 25%, compared to 28% in the corresponding prior year period. The year-over-year decrease in the effective tax rate for the third quarter was primarily due to a shift in taxable income and loss among the various geographic regions.

Sales and Service Fees. Sales and service fees for the nine months of fiscal 2019 were $203.4 million, a decrease of $14.2 million, or 7%, compared to the corresponding period in fiscal 2018, and included an unfavorable currency impact of $7.3 million, or 3%, when translating foreign sales to U.S. dollars for financial reporting purposes.

Sales in the Americas for the nine months of fiscal 2019 increased by 19%, compared to the corresponding period in fiscal 2018. The increase in sales for the nine months of fiscal 2019 was primarily attributable to sales of vertical milling machines from the newly acquired distributor, and increased customer demand for Hurco, Milltronics and Takumi vertical milling machines in the U.S. European sales for the nine months of fiscal 2019 decreased by 14%, compared to the corresponding period in fiscal 2018. Sales for the nine months of fiscal 2019 included an unfavorable currency impact of 5%, when translating foreign sales to U.S. dollars for financial reporting purposes. The decrease in European sales for the nine months of fiscal 2019 was primarily attributable to a reduced volume of shipments of Hurco vertical milling machines in Germany and the United Kingdom. Asian Pacific sales for the nine months of fiscal 2019 decreased by 28%, compared to the corresponding period in fiscal 2018. The decrease in Asian Pacific sales for nine months of fiscal 2019 was primarily attributable to decreased shipments of Hurco vertical milling machines and Takumi bridge mill machines in China and an unfavorable currency impact of 3% when translating foreign sales to U.S. dollars for financial reporting purposes.

Sales of computerized machine tools for the nine months of fiscal 2019 decreased by 8%, compared to the corresponding period in fiscal 2018, and included an unfavorable currency impact of 3% when translating foreign sales to U.S. dollars for financial reporting purposes. The decrease was primarily attributable to a reduced volume of shipments of Hurco and Takumi machines in Europe and China. Sales of computer control systems and software increased by 4%, compared to the corresponding period in fiscal 2018, due mainly to an increase in aftermarket software sales in France and the Americas. Sales of service parts and service fees increased in the nine months of fiscal 2019 by 4% each, compared to the corresponding period in fiscal 2018, due primarily to sales of aftermarket sales and service by the newly acquired distributor.

Orders. Orders for the nine months of fiscal 2019 were $188.2 million, a decrease of $44.6 million, or 19%, compared to the corresponding period in fiscal 2018, and included an unfavorable currency impact of $7.2 million, or 3%, when translating foreign orders to U.S. dollars.

Orders in the Americas for the nine months of fiscal 2019 increased by 3% due to increased customer demand for Takumi vertical milling machines and vertical milling machines sold by the newly acquired distributor. European orders for the nine months of fiscal 2019 decreased by 28%, compared to the corresponding prior year period, and included an unfavorable currency impact of 4% when translating foreign orders to U.S. dollars. The year-over-year decrease in orders were driven primarily by decreased customer demand for Hurco vertical milling machines in Germany, the United Kingdom and France, as well as a decrease in customer demand for electro-mechanical components and accessories manufactured by LCM. Asian Pacific orders for the nine months of fiscal 2019 decreased by 25%, compared to the corresponding prior year period and included an unfavorable currency impact of 4% when translating foreign orders to U.S. dollars. The year-over-year decrease in orders was primarily due to decreased customer demand for Hurco and Takumi machines in China and India.

Gross Profit. Gross profit for the nine months of fiscal 2019 was $61.0 million, or 30% of sales, compared to $64.0 million, or 29% of sales, for the corresponding prior year period. The gross profit for the nine months of fiscal 2019 remained generally stable at approximately 30%, despite the reduction in sales volume year over year, due to an increased mix of larger, higher-priced vertical milling machine sales and margin contribution from vertical milling machine sales from the newly acquired distributor.

Operating Expenses. Selling, general and administrative expenses for the nine months of fiscal 2019 were $40.6 million, or 20% of sales, compared to $41.4 million, or 19% of sales, in the prior year period and included a favorable currency impact of $1.2 million when translating foreign expenses to U.S. dollars for financial reporting purposes. The year-over-year decrease in selling, general and administrative expenses was primarily related to decreased variable employee compensation and other operating expense reductions implemented during the year, partially offset by increased operating expenses associated with the newly acquired distributor.

Income Taxes. The effective tax rate for the nine months of fiscal 2019 was 28%, compared to 40% in the corresponding prior year period. The year-over-year decrease in the effective tax rate for the nine months was primarily due to one-time charges of $2.9 million related to the Tax Cuts and Jobs Act of 2017 recorded in the first quarter of fiscal 2018. The impact of these one-time charges increased the effective tax rate by approximately 39% for the first quarter of fiscal 2018.

At July 31, 2019, we had cash and cash equivalents of $66.1 million, compared to $77.2 million at October 31, 2018. Approximately 60% of the $66.1 million of cash and cash equivalents is denominated in U.S. Dollars. The balance is attributable to our foreign operations and is held in the local currencies of our various foreign entities, subject to fluctuations in currency exchange rates. We do not believe that the indefinite reinvestment of these funds offshore impairs our ability to meet our domestic working capital needs.

In the nine months of fiscal 2019, we derived approximately 63% of our revenues from customers located outside of the Americas. All of our computerized machine tools and computer control systems, as well as certain proprietary service parts, are sourced by our U.S.-based engineering and manufacturing division and re-invoiced to our foreign sales and service subsidiaries, primarily in their functional currencies.

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The Trump Administration Might End Refugee Re-Settlement As We Know It

The Trump administration’s long-running attacks on legal immigration may soon escalate even further, as the White House mulls plans to drastically …

The Trump administration’s long-running attacks on legal immigration may soon escalate even further, as the White House mulls plans to drastically cut the number of refugees admitted into the U.S. Following earlierreports suggesting the administration could slash its number of refugee admissions next year, the New York Timesreported Friday that the White House is weighing several options for the future of the U.S.’s refugee admissions—and all would basically signal the end of the country’s refugee re-settlement program as it exists today.

Per the Times, the administration is currently considering a plan that would “[zero] out the program altogether,” only allowing the president to admit refugees during an emergency. Another option would cut refugee admissions down to 10,000 or 15,000—far fewer than this year’s already-low cap of 30,000 refugees—and save the coveted slots for refugees from “a few handpicked countries or groups with special status,” such as Iraqi and Afghan citizens who help the American military and intelligence services. (The few refugees who can settle in the U.S. may then face additional roadblocks, according to reports suggesting the administration is separately considering allowing states and cities to individually deny entry to admitted refugees.) The issue is likely to come to a head on Tuesday at a high-level meeting in the Situation Room, where administration officials will deliberate on the number that President Donald Trump should set as next year’s refugee admissions ceiling.

Unsurprisingly, the Times notes that the administration’s decimation of the refugee program is being done at the urging of Trump’s adviser and anti-immigration henchman Stephen Miller, along with his allies in the Departments of State and Homeland Security. Miller’s long-standing anti-refugee views have previously faced resistance in the Pentagon, though, as former Secretary of Defense James Mattis vehemently defended the need for admitting refugees who have served with American troops. While the Times notes that current Defense Secretary Mark Esper has not yet signaled how he’ll advise the administration about their current refugee plans, retired high-ranking military officials have picked up Mattis’s mantle, with 27 retired generals and admirals sending a letter to Trump earlier this week to criticize the administration’s planned cuts. The officials called the refugee program a “critical lifeline” for those who help the American government abroad, and said even the current 30,000 cap is “leaving thousands in harm’s way.” “We urge you to protect this vital program and ensure that the refugee admissions goal is robust, in line with decades-long precedent, and commensurate with today’s urgent global needs,” the officials wrote. Though the administration is considering still admitting refugees who worked with American officials under their potential plans, the number of successful refugees would still be far lower than those with a need to re-settle. The Wall Street Journal reported that 107,000 Iraqis who have helped American troops are waiting to be processed as refugees to the U.S., which is in addition to the more than 100,000 refugees currently on a referral list for possible American re-settlement.

The White House’s planned 2020 cuts would be a further escalation of the administration’s existing attacks on refugee admissions, which have been slashed under Trump to record lows. The administration set a 45,000 person refugee ceiling in 2018 prior to the 30,000 cap this year, which marked the lowest ceiling since the refugee resettlement program was established in 1980. (Under President Barack Obama, the refugee ceilings ranged between 70,000-85,000 per year.) And the actual number of admitted refugees has slowed even further, even as the refugee crisis only continues to grow. Though approximately 26,000 refugees have entered the U.S. through August 16 of this year, coming close to the 30,000 ceiling, only 22,491 were admitted in 2018, despite the United Nations reporting over 20 million refugees globally that year. Should the Trump administration follow through with their newest wave of drastic cuts, it will affect the thousands of refugees currently in the years-long process of coming to the U.S.—and potentially torpedo the resettlement program for years to come. More than 29,000 refugees have completed interviews with U.S. Citizenship and Immigration Services, and 9,000 are currently approved to travel to the U.S., which could all be undone by a potential decision to essentially shut down the program. “In the long-term, [the cuts] would mean that the capacity and the ability of the United States to resettle refugees would be completely decimated,” Jen Smyers, a director with U.S. resettlement agency Church World Service, told Politico in July.

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