Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to promote an understanding of our financial condition, results of operations, liquidity and certain other factors that may affect future results. MD&A is provided as a supplement to, and should be read in conjunction with our consolidated financial statements and notes to those statements that appear elsewhere in this Form 10-K. This section generally discusses the results of operations for fiscal 2022 compared to 2021. For similar operating and financial data and discussion of our fiscal 2021 results compared to our fiscal 2020 results, refer to Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" under Part II of our annual report on Form 10-K for the fiscal year ended
September 30, 2021, which was filed with the SECon November 18, 2021. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to any differences include, but are not limited to, those discussed under the caption "Forward-Looking Statements" and under Item 1A - "Risk Factors."
We are a residential lot development company with operations in 53 markets in 21 states as of
September 30, 2022. In October 2017, we became a majority-owned subsidiary of D.R. Horton. As our controlling shareholder, D.R. Hortonhas significant influence in guiding our strategic direction and operations. We manage our operations through our real estate segment, which is our core business and generates substantially all of our revenues. The real estate segment primarily acquires land and installs infrastructure for single-family residential communities and generates revenues from sales of residential single-family finished lots to local, regional and national homebuilders. We have other business activities for which the related assets and operating results are immaterial and therefore, are included in our real estate segment. 26 -------------------------------------------------------------------------------- Table of Contents Results of Operations
The following tables and related discussion present selected operating and financial data for the years ended
The components of pre-tax income were as follows:
Year Ended September 30, 2022 2021 (In millions) Revenues
$ 1,519.1 $ 1,325.8Cost of sales 1,195.1 1,096.6 Selling, general and administrative expense 93.6
Equity in earnings of unconsolidated ventures (1.2) (0.2) Gain on sale of assets (3.2) (2.5) Interest and other income (1.0) (1.2) Loss on extinguishment of debt - 18.1 Income before income taxes
$ 235.8 $ 146.6Lot Sales
The residential lots sold consist of:
Year Ended September 30, 2022 2021 Development projects 16,454 14,221 Lot banking projects 383 1,694 16,837 15,915 Deferred development projects 854 - 17,691 15,915 Average sales price per lot (a)
$ 86,300 $ 81,600_______________
(a) Excludes lots sold from deferred development projects and any impact of changes in contract liabilities.
Table of Contents Revenues Revenues consist of: Year Ended September 30, 2022 2021 (In millions) Residential lot sales: Development projects
$ 1,420.2 $ 1,182.6Lot banking projects 33.5 116.1 Decrease (increase) in contract liabilities 1.8 (5.6) 1,455.5 1,293.1 Deferred development projects 26.8 - 1,482.3 1,293.1 Tract sales and other 36.8 32.7 Total revenues $ 1,519.1 $ 1,325.8Residential lots sold and residential lot sales revenues have increased primarily as a result of lots sales to customers other than D.R. Horton. In fiscal 2022, we sold 14,895 residential lots to D.R. Hortonfor $1.2 billioncompared to 14,839 residential lots sold to D.R. Hortonfor $1.2 billionin fiscal 2021. In fiscal 2022, we sold 2,796 residential lots to customers other than D.R. Hortonfor $287.8 million, inclusive of the $64.1 millioncumulative transaction price of deferred development lot sales, compared to 1,076 residential lots sold for $86.5 millionin fiscal 2021. Lots sold to customers other than D.R. Hortonin fiscal 2022 included 943 lots that were sold for $131.1 millionto a lot banker who expects to sell those lots to DR. Hortonat a future date. Deferred development lot sales in fiscal 2022 include 854 undeveloped and partially developed lots that were sold to customers other than D.R. Hortonfor a cumulative transaction price of $64.1 million. As part of these transactions, we are obligated to complete the development of the lots. During fiscal 2022, we received $38.8 millionin cash related to deferred development transactions with the remainder due as development of the lots is completed. During fiscal 2022, we recognized revenue of $26.8 millionrelated to deferred development transactions. The remaining revenue will be recognized over time as our development obligations are completed. Tract sales and other revenue in fiscal 2022 primarily consisted of 512 acres sold to third parties for $35.7 million. Tract sales and other revenue in fiscal 2021 primarily consisted of 12 acres sold to third parties for $1.6 millionand 85 acres sold to D.R. Hortonfor $25.9 million. Throughout the majority of fiscal 2022, demand for our residential lots remained strong. More recently, we have seen weakening demand as mortgage interest rates have increased substantially and inflationary pressures have remained elevated. We increase our land and lot sales prices when market conditions permit, and we attempt to offset cost increases in one component with savings in another. However, during periods when market conditions are challenging, we may have to reduce selling prices or may not be able to offset cost increases with higher selling prices. Although these challenging market conditions may persist for some time, we believe we are well-positioned to operate effectively through changing economic conditions because of our low net leverage and strong liquidity position, our low overhead model and our strategic relationship with D.R. Horton.
Cost of sales, depreciation of real estate and land option costs and interest incurred
Cost of sales in fiscal 2022 increased compared to fiscal 2021 primarily due to the increase in the number of lots sold. Cost of sales related to tract sales and other revenues in fiscal 2022 and 2021 was
$20.3 millionand $27.0 million, respectively. Each quarter, we review the performance and outlook for all of our real estate for indicators of potential impairment and perform detailed impairment evaluations and analyses when necessary. As a result of this process, we recorded real estate impairment charges of $3.8 millionduring fiscal 2022. There were no real estate impairment charges recorded in fiscal 2021. During fiscal 2022 and 2021, land purchase contract deposit and pre-acquisition cost write-offs related to land purchase contracts that we terminated or expect to terminate were $8.7 millionand $3.0 million, respectively. 28 -------------------------------------------------------------------------------- Table of Contents We capitalize interest costs throughout the development period (active real estate). Capitalized interest is charged to cost of sales as the related real estate is sold to the buyer. Interest incurred was $32.9 millionand $41.5 millionin fiscal 2022 and 2021, respectively. Interest charged to cost of sales was 2.9% and 3.3% of total cost of sales (excluding real estate impairments and land option charges) in those years.
Selling, general and administrative (SG&A) and other income statement items
SG&A expense in fiscal 2022 was
$93.6 millioncompared to $68.4 millionin fiscal 2021. SG&A expense as a percentage of revenues was 6.2% and 5.2% in fiscal 2022 and 2021, respectively. Our SG&A expense primarily consists of employee compensation and related costs. Our business operations employed 291 and 250 employees at September 30, 2022and 2021, respectively. We attempt to control our SG&A costs while ensuring that our infrastructure supports our operations; however, we cannot make assurances that we will be able to maintain or improve upon the current SG&A expense as a percentage of revenues. Loss on extinguishment of debt of $18.1 millionin fiscal 2021 was due to the redemption of our $350 millionprincipal amount of 8.0% senior notes due 2024 in May 2021. Income Taxes Our income tax expense was $57.0 millionand $36.1 millionin fiscal 2022 and 2021, respectively, and our effective tax rate was 24.2% and 24.6% in those respective years. Our effective tax rate for both years includes an expense for state income taxes and nondeductible expenses and a benefit related to noncontrolling interests. At September 30, 2022, we had deferred tax liabilities, net of deferred tax assets, of $35.9 million. The deferred tax assets were offset by a valuation allowance of $1.0 million, resulting in a net deferred tax liability of $36.9 million. At September 30, 2021, deferred tax liabilities, net of deferred tax assets, were $23.2 million. The deferred tax assets were offset by a valuation allowance of $1.2 million, resulting in a net deferred tax liability of $24.4 million. The valuation allowance for both years was recorded because it is more likely than not that a portion of our state deferred tax assets, primarily NOL carryforwards, will not be realized because we are no longer operating in some states or the NOL carryforward periods are too brief to realize the related deferred tax asset. We will continue to evaluate both the positive and negative evidence in determining the need for a valuation allowance on our deferred tax assets. Any reversal of the valuation allowance in future periods will impact our effective tax rate. The Inflation Reduction Act of 2022 ("IRA") was signed into law on August 16, 2022. The tax related provisions of the IRA did not have a material impact on our financial statements and are not expected to have a material impact on our financial statements in the future.
We had no unrecognized tax benefits
Position of land and lot
Our land and lot position at
September 30, 2022and 2021 is summarized as follows: September 30, 2022 2021 Lots owned 61,800 64,400 Lots controlled through land lot purchase contracts 28,300 32,600 Total lots owned and controlled 90,100 97,000 Owned lots under contract to sell to D.R. Horton 17,800 21,000 Owned lots under contract to customers other than D.R. Horton 1,400 800 Total owned lots under contract 19,200 21,800
Owned lots subject to the right of first offer with
18,900 18,200 Owned lots fully developed 5,500 5,300 29
-------------------------------------------------------------------------------- Table of Contents Liquidity and Capital Resources
September 30, 2022, we had $264.8 millionof cash and cash equivalents and $356.7 millionof available borrowing capacity on our revolving credit facility. We have no senior note maturities until fiscal 2026. We believe we are well positioned to operate effectively during changing economic conditions because of our low net leverage and strong liquidity position, our low overhead model and our strategic relationship with D.R. Horton. At September 30, 2022, our ratio of debt to total capital (debt divided by stockholders' equity plus debt) was 37.1% compared to 41.0% at September 30, 2021. Our ratio of net debt to total capital (debt net of unrestricted cash divided by stockholders' equity plus debt net of unrestricted cash) was 26.9% compared to 35.2% at September 30, 2021. Over the long term, we intend to maintain our ratio of net debt to total capital at approximately 40% or less. We believe that the ratio of net debt to total capital is useful in understanding the leverage employed in our operations. We believe that our existing cash resources and revolving credit facility will provide sufficient liquidity to fund our near-term working capital needs. Our ability to achieve our long-term growth objectives will depend on our ability to obtain financing in sufficient amounts. We regularly evaluate alternatives for managing our capital structure and liquidity profile in consideration of expected cash flows, growth and operating capital requirements and capital market conditions. We may, at any time, be considering or preparing for the purchase or sale of our debt securities, the sale of our common stock or a combination thereof.
Bank credit facility
We have a
$410 millionsenior unsecured revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $600 million, subject to certain conditions and availability of additional bank commitments. The facility also provides for the issuance of letters of credit with a sublimit equal to the greater of $100 millionand 50% of the revolving credit commitment. Borrowings under the revolving credit facility are subject to a borrowing base calculation based on the book value of our real estate assets and unrestricted cash. Letters of credit issued under the facility reduce the available borrowing capacity. There were no borrowings or repayments under the facility during fiscal 2022. At September 30, 2022, there were no borrowings outstanding and $53.3 millionof letters of credit issued under the revolving credit facility, resulting in available capacity of $356.7 million.
The revolving credit facility is guaranteed by our wholly-owned subsidiaries that are not immaterial subsidiaries or have not been designated as unrestricted subsidiaries. The revolving credit facility includes customary affirmative and negative covenants, events of default and financial covenants. The financial covenants require a minimum level of tangible net worth, a minimum level of liquidity and a maximum allowable leverage ratio. These covenants are measured as defined in the credit agreement governing the facility and are reported to the lenders quarterly. A failure to comply with these financial covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable prior to maturity. At
September 30, 2022, we were in compliance with all of the covenants, limitations and restrictions of our revolving credit facility.
We have outstanding senior notes as described below that were issued pursuant to Rule 144A and Regulation S under the Securities Act. The notes represent senior unsecured obligations that rank equally in right of payment to all existing and future senior unsecured indebtedness and may be redeemed prior to maturity, subject to certain limitations and premiums defined in the respective indenture. The notes are guaranteed by each of our subsidiaries to the extent such subsidiaries guarantee our revolving credit facility. Our
$400 millionprincipal amount of 3.85% senior notes (the "2026 notes") mature May 15, 2026with interest payable semi-annually. On or after May 15, 2023, the 2026 notes may be redeemed at 101.925% of their principal amount plus any accrued and unpaid interest. In accordance with the indenture, the redemption price decreases annually thereafter, and the 2026 notes can be redeemed at par on or after May 15, 2025through maturity. The annual effective interest rate of the 2026 notes after giving effect to the amortization of financing costs is 4.1%. 30
We also have
$300 millionprincipal amount of 5.0% senior notes (the "2028 notes") outstanding, which mature March 1, 2028with interest payable semi-annually. On or after March 1, 2023, the 2028 notes may be redeemed at 102.5% of their principal amount plus any accrued and unpaid interest. In accordance with the indenture, the redemption price decreases annually thereafter and the 2028 notes can be redeemed at par on or after March 1, 2026through maturity. The annual effective interest rate of the 2028 notes after giving effect to the amortization of financing costs is 5.2%. The indentures governing our senior notes require that, upon the occurrence of both a change of control and a rating decline (each as defined in the indentures), we offer to purchase the applicable series of notes at 101% of their principal amount. If we or our restricted subsidiaries dispose of assets, under certain circumstances, we will be required to either invest the net cash proceeds from such asset sales in our business within a specified period of time, repay certain senior secured debt or debt of our non-guarantor subsidiaries, or make an offer to purchase a principal amount of such notes equal to the excess net cash proceeds at a purchase price of 100% of their principal amount. The indentures contain covenants that, among other things, restrict the ability of us and our restricted subsidiaries to pay dividends or distributions, repurchase equity, prepay subordinated debt and make certain investments; incur additional debt or issue mandatorily redeemable equity; incur liens on assets; merge or consolidate with another company or sell or otherwise dispose of all or substantially all of our assets; enter into transactions with affiliates; and allow to exist certain restrictions on the ability of subsidiaries to pay dividends or make other payments. At September 30, 2022, we were in compliance with all of the limitations and restrictions associated with our senior note obligations. Effective April 30, 2020, our Board of Directors authorized the repurchase of up to $30 millionof our debt securities. The authorization has no expiration date. All of the $30 millionauthorization was remaining at September 30, 2022.
Other note payable
We also have a note payable of
$12.5 millionthat was issued as part of a transaction to acquire real estate for development. The note is non-recourse, is secured by the underlying real estate and accrues interest at 4.0% per annum with interest payments due in October 2022and at maturity in October 2023.
Issue of common shares
We have an effective shelf registration statement filed with the
SECin October 2021registering $750 millionof equity securities, of which $300 millionwas reserved for sales under our at-the-market equity offering program that became effective November 2021. In fiscal 2022, we issued 84,547 shares of common stock under our at-the-market equity offering program for proceeds of $1.7 million, net of commissions and other issuance costs totaling $0.1 million. At September 30, 2022, $748.2 millionremained available for issuance under the shelf registration statement, of which $298.2 millionwas reserved for sales under our at-the-market equity offering program.
Operating cash activities
In fiscal 2022, net cash provided by operating activities was
$108.7 million, which was primarily the result of net income generated in the year and increases in liabilities and other accrued expenses, partially offset by the increase in our real estate. In fiscal 2021, net cash used in operating activities was $303.1 million, which was primarily the result of the increase in our real estate.
Investing Cash Flow Activities
In fiscal 2022, net cash provided by investing activities was
$1.3 millioncompared to $1.0 millionin fiscal 2021. The cash provided by investing activities in the current period consists primarily of cash received from the sale of an investment, partially offset by cash expenditures for property and equipment. Additionally, cash provided by investing activities in both periods includes distributions received from our unconsolidated ventures. 31 -------------------------------------------------------------------------------- Table of Contents Financing Cash Flow Activities In fiscal 2022, net cash provided by financing activities was $1.2 millioncompared to $61.4 millionin fiscal 2021. Cash provided by financing activities in the prior year was primarily the result of proceeds from the issuance of $400 millionprincipal amount of 3.85% senior notes and the issuance of common stock under our at-the-market equity offering program for net proceeds of $33.4 million, which were partially offset by the early redemption of our $350 millionprincipal amount of 8.0% senior notes and the related call premium of $14.0 million.
Significant Accounting Policies and Estimates
General - A comprehensive enumeration of the significant accounting policies of
Forestar Group Inc.and subsidiaries is presented in Note 1 to the accompanying financial statements as of September 30, 2022and 2021, and for the years ended September 30, 2022, 2021 and 2020. Each of our accounting policies has been chosen based upon current authoritative literature that collectively comprises U.S.Generally Accepted Accounting Principles (GAAP). In instances where alternative methods of accounting are permissible under GAAP, we have chosen the method that most appropriately reflects the nature of our business, the results of our operations and our financial condition, and have consistently applied those methods over each of the periods presented in the financial statements. The Audit Committee of our Board of Directors has reviewed and approved the accounting policies selected. Accounting estimates are considered critical if both of the following conditions are met: (1) the nature of the estimates or assumptions is material because of the levels of subjectivity and judgment needed to account for matters that are highly uncertain and susceptible to change and (2) the effect of the estimates and assumptions is material to the financial statements. We have reviewed our accounting estimates, and none were deemed to be considered critical for the accounting periods presented. Revenue Recognition - Real estate revenue and related profit are generally recognized at the time of the closing of a sale, when title to and possession of the property are transferred to the buyer. Our performance obligation, to deliver the agreed-upon land or lots, is generally satisfied at closing. However, there may be instances in which we have an unsatisfied remaining performance obligation at the time of closing. In these instances, we record contract liabilities and recognize those revenues over time as the performance obligations are completed. Generally, our unsatisfied remaining performance obligations are expected to have an original duration of less than one year. Real Estate and Cost of Sales - Real estate includes the costs of direct land and lot acquisition, land development, capitalized interest, and direct overhead costs incurred during land development. All indirect overhead costs, such as compensation of management personnel and insurance costs are charged to selling, general and administrative expense as incurred. Land and development costs are typically allocated to individual residential lots based on the relative sales value of the lot. Cost of sales includes applicable land and lot acquisition, land development and related costs (both incurred and estimated to be incurred) allocated to each residential lot in the project. Any changes to the estimated total development costs subsequent to the initial lot sales are generally allocated to the remaining lots. We receive earnest money deposits from homebuilders for purchases of developed lots. These earnest money deposits are typically released to the homebuilders as lots are sold. Earnest money deposits from D.R. Hortonare subject to mortgages that are secured by the real estate under contract with D.R. Horton. These mortgages expire when the earnest money is released to D.R. Hortonas lots are sold. We have agreements with certain utility or improvement districts to convey water, sewer and other infrastructure-related assets we have constructed in connection with projects within their jurisdiction and receive reimbursements for the cost of these improvements. The amount of reimbursements for these improvements are defined by the district and are based on the allowable costs of the improvements. The transfer is consummated and we generally receive payment when the districts have a sufficient tax base to support funding of their bonds. The cost incurred by us in constructing these improvements, net of the amount expected to be collected in the future, is included in our land development budgets and in the determination of lot costs. 32 -------------------------------------------------------------------------------- Table of Contents Each quarter, we review the performance and outlook for all of our real estate for indicators of potential impairment. We determine if impairment indicators exist by analyzing a variety of factors including, but not limited to, the following:
•gross margins on lots sold in recent months;
•projected gross margins based on budgets;
•changes in gross margins, average selling prices or cost of sales; and
•rate of absorption of batch sales.
If indicators of impairment are present, we perform an impairment evaluation, which includes an analysis to determine if the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts. These estimates of cash flows are significantly impacted by specific factors including estimates of the amount and timing of future revenues and estimates of the amount of land development costs which, in turn, may be impacted by the following local market conditions:
•the supply and availability of land and plots;
•the location and desirability of our lands and lots;
• the amount of land and lots we own or control in a particular market or sub-market; and
• local economic and demographic trends.
For those assets deemed impaired, an impairment charge is recorded to cost of sales for the amount by which the carrying amount of the assets exceeds the fair value of the assets. Our determination of fair value is primarily based on discounting the estimated cash flows at a rate commensurate with the inherent risks associated with the assets and related estimated cash flow streams. When an impairment charge is determined, the charge is then allocated to each lot in the same manner as land and development costs are allocated to each lot. We rarely purchase land for resale. However, we may change our plans for land we own or land under development and decide to sell the asset. When we determine that we will sell the asset, the project is accounted for as land held for sale if certain criteria are met. We record land held for sale at the lesser of its carrying value or fair value less estimated costs to sell. In performing the impairment evaluation for land held for sale, we consider several factors including, but not limited to, recent offers received to purchase the property, prices for land in recent comparable sales transactions and market analysis studies, which include the estimated price a willing buyer would pay for the land. If the estimated fair value less costs to sell an asset is less than the current carrying value, the asset is written down to its estimated fair value less costs to sell.
Key inventory valuation assumptions are influenced by local market and economic conditions, and are inherently uncertain. Although our quarterly valuations reflect management’s best estimates, due to uncertainties in the estimation process, actual results could differ from those estimates.
Accounting standards pending
March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform," which provides optional expedients and exceptions for applying U.S.GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) or by another reference rate expected to be discontinued. The guidance was effective beginning March 12, 2020and can be applied prospectively through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform - Scope," which clarified the scope and application of the original guidance. We will adopt these standards when LIBOR is discontinued and do not expect them to have a material impact on our consolidated financial statements or related disclosures. In October 2021, the FASB issued ASU 2021-08, which requires application of ASC 606, "Revenue from Contracts with Customers," to recognize and measure contract assets and liabilities from contracts with customers acquired in a business combination. ASU 2021-08 creates an exception to the general recognition and measurement principle in ASC 805 and will result in recognition of contract assets and contract liabilities consistent with those recorded by the acquiree immediately before the acquisition date. The guidance is effective for us beginning October 1, 2023and interim periods therein, with early adoption permitted. We are currently evaluating the impact of this guidance, and it is not expected to have a material impact on our consolidated financial position, results of operations and cash flows. 33 -------------------------------------------------------------------------------- Table of Contents Forward-Looking Statements This Annual Report on Form 10-K and other materials we have filed or may file with the Securities and Exchange Commissioncontain "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements are identified by their use of terms and phrases such as "believe," "anticipate," "could," "estimate," "likely," "intend," "may," "plan," "expect," and similar expressions, including references to assumptions. These statements reflect our current views with respect to future events and are subject to risks and uncertainties. We note that a variety of factors and uncertainties could cause our actual results to differ significantly from the results discussed in the forward-looking statements. Factors and uncertainties that might cause such differences include, but are not limited to:
•the effect of
• our ability to realize the potential benefits of the strategic relationship with
•the effect of our strategic relationship with
•the cyclical nature of the home building and land development industries and changes in economic, real estate and other conditions;
•the impact of significant inflation, a rise in interest rates or deflation;
•supply shortages and other risks related to the acquisition of land, building materials and skilled labor;
•the effects of public health issues such as a major epidemic or pandemic, including the impact of COVID-19 on the economy and our business;
•the impacts of weather conditions and natural disasters;
• health and safety incidents related to our operations;
• our ability to obtain or availability of bonds to secure our performance related to construction and development activities and the pricing of bonds;
• the impact of government policies, laws or regulations and the actions or restrictions of regulatory agencies;
•our ability to carry out our strategic initiatives;
•continuing liabilities related to the assets sold;
•the cost and availability of properties suitable for the development of residential lots;
•general economic, market or business conditions in which our real estate activities are concentrated;
•our dependence on relationships with national, regional and local manufacturers;
•competitive conditions in our industry;
• obtain reimbursements and other payments from government districts and other agencies and the timing of such payments;
•our ability to succeed in new markets;
•capital market conditions and our ability to raise capital to fund anticipated growth;
• our ability to manage and service our debt and to comply with our covenants, restrictions and limits;
• volatility in the market price and trading volume of our common stock;
• our ability to hire and retain key personnel;
•the strength of our information technology systems and the risk of cybersecurity breaches and our ability to comply with privacy and data protection laws and regulations.
34 -------------------------------------------------------------------------------- Table of Contents Other factors, including the risk factors described in Item 1A of this Annual Report on Form 10-K, may also cause actual results to differ materially from those projected by our forward-looking statements. New factors emerge from time to time and it is not possible for us to predict all such factors, nor can we assess the impact of any such factor on our business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, we expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. 35
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