despite the anticipated decline in margins , we expected that the reduction in the gross profit dollars due to higher steel costs could be offset , in varying degrees , by increases in market activity , by an expansion of our product offerings in both product segments , by the benefits associated with a number of cost reduction programs , and by prices and steel costs remaining relatively stable . in the fence segment , a combination of lower than expected pricing levels and significant delays in the implementation of important cost reduction programs resulted in a shortfall to our original 2005 profitability expectations . during the first eight months of 2005 , the price of steel purchases declined , only achieving a relative degree of stability in the later months of the year . we believe there were a number of principal reasons for the decline . going into 2005 , there were high inventory levels of steel rod held by producers as well as higher than normal inventory of the products manufactured from steel rod , held by both the manufacturers and their respective customers . this led to an inventory liquidation process through most of the first nine months of 2005. as well , the poor weather during the first four to five months of 2005 further contributed to the lowering of market demand . a somewhat slower pace of economic activity and delays in some sources of funding for non-residential construction projects only exacerbated the weaker market environment . collectively , all these factors played a role in lowering the overall demand for our products well below expectations , and , for fence and welded wire reinforcement products , even lower than in 2004 through the first three quarters of 2005. during the fourth quarter of 2005 , steel costs were generally stable and the volume of activity in our markets began to demonstrate increases , reflecting the continued improvement in economic conditions , primarily for non-residential construction activity . expected margins for 2005 were also dependent upon cost saving and expansion projects resulting from the installation of machinery and equipment early in 2005. we had anticipated annualized cost reductions in the range of approximately $ 5 million to $ 7 million from these investments in equipment and through the application of more rigorous management processes . significant equipment supplier delays , however , did not allow us to put these machines into service until late in the third quarter . as a result , a majority of these annualized cost reduction benefits were delayed into 2006. outlook we believe the overall economic outlook is relatively favorable . we anticipate real gdp growth , greater cement consumption , and improved spending in the key construction markets we serve , namely non-residential buildings and public construction . the impact of spending in the aftermath of hurricanes , the relatively favorable status of state budgets , and the new federal highway legislation are all factors affecting the expected improvement in our end markets . the competitive environment is expected to remain relatively stable in 2006. going forward , we are optimistic that the successful implementation of the fence segment 's sales and marketing strategies and further improvements in its manufacturing and distribution costs will support an improvement in the fence segment 's operating results . importantly , a full year 's cost reduction benefit can be obtained from the capital projects that were already placed into service late in 2005. the concrete construction products segment is well positioned to grow in volume and profitability as it expands its manufacturing capacity and geographic reach , continues its new products growth , and drives efficiencies in its manufacturing facility network . liquidity the company has approximately $ 290.4 million of long-term debt and capital lease obligations outstanding as of december 31 , 2005. by their terms , approximately $ 270.2 million of those obligations mature in april 2007. the company 's revolving credit facility includes a number of restrictive covenants . among the various restrictive covenants provided for under the credit facility is a requirement that the company refinance its $ 200 million of senior subordinated notes , which are due by their terms in april 2007 , on or before december 15 , 2006. if the company fails to do so , such failure constitutes an `` event of default `` under our $ 150 million credit facility , which is also due in april 2007. in december of 2005 , both standard & poor 's and moody 's investor services acknowledged the need for mmi to address the refinancing of the senior subordinated notes . neither ratings agency changed its rating on the senior subordinated notes . standard & poor 's changed its corporate credit rating outlook from stable to negative and indicated that rating would be lowered from b- to ccc+ and the negative outlook retained if the company did not have a plan in place to refinance its notes by the end of june 2006. moody 's investors service placed the debt ratings on review for possible downgrade to reflect difficulties in maintaining margins in certain product lines and to reflect the need to refinance the senior subordinated notes . as of march 30 , 2006 , the senior subordinated notes are rated ccc by standard & poor 's and caa2 by moody 's investor services . if an event of default under the credit facility were to occur , the lender may , among other remedies , accelerate the required repayment of the outstanding borrowings under the credit facility . an acceleration of the amounts due under the credit facility would result in a default under the senior subordinated notes , in which case , the notes could become immediately due and payable . story_separator_special_tag the analysis of the fair value of the fence reporting unit 's assets and liabilities compared to the respective carrying value resulted in the impairment of the fence reporting unit 's goodwill of approximately $ 17.3 million in fiscal 2005. other ( income ) expense , net replace_table_token_5_th other income , net was $ 296,000 in fiscal 2005 , a $ 3.8 million change from the $ 3.5 million of other net expense in fiscal 2004. the change was primarily due to restructuring related expenses and asset impairment charges incurred in 2004 of $ 3.3 million mainly associated with the now sold baltimore , maryland and oregon , ohio manufacturing facilities , and the move of certain manufacturing equipment to the mexicali , mexico manufacturing facility . also in 2004 , $ 1.0 million of direct costs related to possible business acquisitions were written off and was partially offset by a $ 0.9 million gain on sale of the closed baltimore , maryland facility . also contributing to the reduced net expense in 2005 were increased prompt payment discounts in the fence segment . most of the net expense for 2005 in the concrete construction products segment was due to an impairment charge related to certain equipment that was idled as a result of a new outsourcing arrangement . net income ( loss ) replace_table_token_6_th _ in the fourth quarter of 2005 , the company recognized a $ 17.3 million ( $ 14.8 million , net of tax ) expense for the impairment of goodwill related to its fence business . interest expense . interest expense increased $ 1.9 million , or 6.4 % , to $ 31.3 million in fiscal 2005 , as compared to $ 29.4 million in fiscal 2004 , primarily due to the higher interest rates now being charged under the revolving credit facility . effective may 3 , 2005 , the margin added to the eurodollar and prime interest rates charged under the revolving credit facility was increased by 25 basis points and 12.5 basis points , respectively , as the debt to adjusted earnings ratio was greater than 4.0 when computed utilizing trailing twelve month results . effective august 10 , 2005 , the margin added to the eurodollar interest rate charged under the revolving credit facility was increased by an additional 75 basis points as the debt to adjusted earnings ratio was greater than 4.5 when computed utilizing trailing twelve month results . subsequent to these changes , the actual margin added to the eurodollar and prime interest rates charged under the revolving credit facility was 2.75 % and .25 % , respectively . these interest rate margins represent the maximum margin that can be charged under the revolving credit facility . income tax ( benefit ) expense . income taxes decreased $ 16.0 million , or 105.9 % , to a benefit of $ 0.9 million in fiscal 2005 , as compared to $ 15.1 million of expense in fiscal 2004. the income tax benefit for 2005 was 8.5 % of the pretax loss of $ 10.5 million ( which includes a $ 17.3 million goodwill impairment ) . approximately 63 % of the goodwill impairment did not provide an income tax benefit . this non-deductible goodwill resulted from business acquisitions made in years prior to 2000 in which the capital stock of the acquired business was purchased . absent the impact of the goodwill impairment , the effective tax rate in 2005 would have been 24.5 % as compared to a 41.9 % effective tax rate in 2004. in 2005 , a $ 772,000 increase in tax expense was recognized to provide a valuation allowance for certain state tax benefits that may not be realized . in the fourth quarter of 2005 , the company recognized a deferred tax benefit of $ 825,000 to adjust certain deferred tax liabilities recognized in prior years . the company also recognized a $ 514,000 federal tax benefit in 2005 to adjust for the impact of certain state tax benefits recognized in prior years . in 2004 , the company recognized state and local income tax expense of $ 563,000 to adjust certain state tax benefits recognized in prior years . results of operations for fiscal 2004 compared to 2003 net sales replace_table_token_7_th consolidated net sales for fiscal 2004 increased $ 157.9 million , or 30.6 % , to $ 673.9 million , as compared to $ 516.0 million for fiscal 2003. the majority of the increase was due to price adjustments made in light of the increased cost , primarily for steel rod , and additionally in the fence business , for steel pipe and tubing and galvanized wire . improvements in market activity and market share also contributed to increases in sales volumes in 2004 as compared to 2003. improvements in production capabilities , customer service , and new product introductions all contributed to the market share increases . concrete construction products net sales in the concrete construction products segment for fiscal 2004 increased $ 116.6 million , or 51.9 % , to $ 341.1 million , as compared to $ 224.6 million for fiscal 2003 , due to increased price and volume levels . the higher price levels , which contributed approximately $ 80 million to the net sales increase , primarily reflect the pass-through of increased costs for steel rod . net sales increased approximately $ 36.5 million from volume gains resulting from improved market activity and increases in market share , supported by new production equipment installed in the second half of 2003. strategic initiatives to emphasize the sale of higher valued added products and to improve the breadth of our product offerings also contributed to the volume change in net sales . sales from the establishment of new concrete accessories distribution facilities in new england and the pacific northwest late in 2003 and in florida in august 2004 also contributed to the market share increase . market activity in

liquidity and capital resources cash flow operating activities . operations provided $ 41.1 million of cash in fiscal 2005 as compared to utilizing $ 15.8 million of cash in fiscal 2004. as discussed further below , a decline in working capital during 2005 as compared to an increase in working capital during 2004 was the primary reason for this change . operations utilized $ 15.8 million of cash in fiscal 2004 as compared to $ 16.9 million of cash in fiscal 2003. the primary reason for this relatively small change was because the increased investment during fiscal 2004 in working capital was offset by higher net income levels . investing activities . capital expenditures utilized $ 14.9 million of cash in 2005 compared to $ 9.0 million in 2004 and $ 6.2 million in fiscal 2003. most of the capital expenditures in 2005 , 2004 and 2003 were for new equipment to upgrade certain operations , add productive capacity and lower costs . in fiscal 2005 , $ 1.7 million was advanced on machinery that will be refunded in 2006 when the related capital lease financing is expected to close . in fiscal 2004 , $ 4.0 million was advanced as deposits on machinery that was refunded in 2005 when the related capital lease financing closed . in fiscal 2003 , $ 5.7 million of deposits made in fiscal 2002 on machinery was refunded when the related capital lease financing was closed . fiscal 2003 also included the acquisition of structural reinforcement products , inc. using cash of $ 23.4 million funded from our revolving credit facility . financing activities . in 2005 , the reduction in working capital as discussed further below partially offset by the increased investment in new machinery allowed us to reduce the borrowings under our credit facility by $ 26.5 million . the $ 30.8 million increase in borrowings under the credit facility in fiscal 2004 was used to fund the investment in working capital and new machinery .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources cash flow operating activities . operations provided $ 41.1 million of cash in fiscal 2005 as compared to utilizing $ 15.8 million of cash in fiscal 2004. as discussed further below , a decline in working capital during 2005 as compared to an increase in working capital during 2004 was the primary reason for this change . operations utilized $ 15.8 million of cash in fiscal 2004 as compared to $ 16.9 million of cash in fiscal 2003. the primary reason for this relatively small change was because the increased investment during fiscal 2004 in working capital was offset by higher net income levels . investing activities . capital expenditures utilized $ 14.9 million of cash in 2005 compared to $ 9.0 million in 2004 and $ 6.2 million in fiscal 2003. most of the capital expenditures in 2005 , 2004 and 2003 were for new equipment to upgrade certain operations , add productive capacity and lower costs . in fiscal 2005 , $ 1.7 million was advanced on machinery that will be refunded in 2006 when the related capital lease financing is expected to close . in fiscal 2004 , $ 4.0 million was advanced as deposits on machinery that was refunded in 2005 when the related capital lease financing closed . in fiscal 2003 , $ 5.7 million of deposits made in fiscal 2002 on machinery was refunded when the related capital lease financing was closed . fiscal 2003 also included the acquisition of structural reinforcement products , inc. using cash of $ 23.4 million funded from our revolving credit facility . financing activities . in 2005 , the reduction in working capital as discussed further below partially offset by the increased investment in new machinery allowed us to reduce the borrowings under our credit facility by $ 26.5 million . the $ 30.8 million increase in borrowings under the credit facility in fiscal 2004 was used to fund the investment in working capital and new machinery .
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 Suspicious Activity Report : despite the anticipated decline in margins , we expected that the reduction in the gross profit dollars due to higher steel costs could be offset , in varying degrees , by increases in market activity , by an expansion of our product offerings in both product segments , by the benefits associated with a number of cost reduction programs , and by prices and steel costs remaining relatively stable . in the fence segment , a combination of lower than expected pricing levels and significant delays in the implementation of important cost reduction programs resulted in a shortfall to our original 2005 profitability expectations . during the first eight months of 2005 , the price of steel purchases declined , only achieving a relative degree of stability in the later months of the year . we believe there were a number of principal reasons for the decline . going into 2005 , there were high inventory levels of steel rod held by producers as well as higher than normal inventory of the products manufactured from steel rod , held by both the manufacturers and their respective customers . this led to an inventory liquidation process through most of the first nine months of 2005. as well , the poor weather during the first four to five months of 2005 further contributed to the lowering of market demand . a somewhat slower pace of economic activity and delays in some sources of funding for non-residential construction projects only exacerbated the weaker market environment . collectively , all these factors played a role in lowering the overall demand for our products well below expectations , and , for fence and welded wire reinforcement products , even lower than in 2004 through the first three quarters of 2005. during the fourth quarter of 2005 , steel costs were generally stable and the volume of activity in our markets began to demonstrate increases , reflecting the continued improvement in economic conditions , primarily for non-residential construction activity . expected margins for 2005 were also dependent upon cost saving and expansion projects resulting from the installation of machinery and equipment early in 2005. we had anticipated annualized cost reductions in the range of approximately $ 5 million to $ 7 million from these investments in equipment and through the application of more rigorous management processes . significant equipment supplier delays , however , did not allow us to put these machines into service until late in the third quarter . as a result , a majority of these annualized cost reduction benefits were delayed into 2006. outlook we believe the overall economic outlook is relatively favorable . we anticipate real gdp growth , greater cement consumption , and improved spending in the key construction markets we serve , namely non-residential buildings and public construction . the impact of spending in the aftermath of hurricanes , the relatively favorable status of state budgets , and the new federal highway legislation are all factors affecting the expected improvement in our end markets . the competitive environment is expected to remain relatively stable in 2006. going forward , we are optimistic that the successful implementation of the fence segment 's sales and marketing strategies and further improvements in its manufacturing and distribution costs will support an improvement in the fence segment 's operating results . importantly , a full year 's cost reduction benefit can be obtained from the capital projects that were already placed into service late in 2005. the concrete construction products segment is well positioned to grow in volume and profitability as it expands its manufacturing capacity and geographic reach , continues its new products growth , and drives efficiencies in its manufacturing facility network . liquidity the company has approximately $ 290.4 million of long-term debt and capital lease obligations outstanding as of december 31 , 2005. by their terms , approximately $ 270.2 million of those obligations mature in april 2007. the company 's revolving credit facility includes a number of restrictive covenants . among the various restrictive covenants provided for under the credit facility is a requirement that the company refinance its $ 200 million of senior subordinated notes , which are due by their terms in april 2007 , on or before december 15 , 2006. if the company fails to do so , such failure constitutes an `` event of default `` under our $ 150 million credit facility , which is also due in april 2007. in december of 2005 , both standard & poor 's and moody 's investor services acknowledged the need for mmi to address the refinancing of the senior subordinated notes . neither ratings agency changed its rating on the senior subordinated notes . standard & poor 's changed its corporate credit rating outlook from stable to negative and indicated that rating would be lowered from b- to ccc+ and the negative outlook retained if the company did not have a plan in place to refinance its notes by the end of june 2006. moody 's investors service placed the debt ratings on review for possible downgrade to reflect difficulties in maintaining margins in certain product lines and to reflect the need to refinance the senior subordinated notes . as of march 30 , 2006 , the senior subordinated notes are rated ccc by standard & poor 's and caa2 by moody 's investor services . if an event of default under the credit facility were to occur , the lender may , among other remedies , accelerate the required repayment of the outstanding borrowings under the credit facility . an acceleration of the amounts due under the credit facility would result in a default under the senior subordinated notes , in which case , the notes could become immediately due and payable . story_separator_special_tag the analysis of the fair value of the fence reporting unit 's assets and liabilities compared to the respective carrying value resulted in the impairment of the fence reporting unit 's goodwill of approximately $ 17.3 million in fiscal 2005. other ( income ) expense , net replace_table_token_5_th other income , net was $ 296,000 in fiscal 2005 , a $ 3.8 million change from the $ 3.5 million of other net expense in fiscal 2004. the change was primarily due to restructuring related expenses and asset impairment charges incurred in 2004 of $ 3.3 million mainly associated with the now sold baltimore , maryland and oregon , ohio manufacturing facilities , and the move of certain manufacturing equipment to the mexicali , mexico manufacturing facility . also in 2004 , $ 1.0 million of direct costs related to possible business acquisitions were written off and was partially offset by a $ 0.9 million gain on sale of the closed baltimore , maryland facility . also contributing to the reduced net expense in 2005 were increased prompt payment discounts in the fence segment . most of the net expense for 2005 in the concrete construction products segment was due to an impairment charge related to certain equipment that was idled as a result of a new outsourcing arrangement . net income ( loss ) replace_table_token_6_th _ in the fourth quarter of 2005 , the company recognized a $ 17.3 million ( $ 14.8 million , net of tax ) expense for the impairment of goodwill related to its fence business . interest expense . interest expense increased $ 1.9 million , or 6.4 % , to $ 31.3 million in fiscal 2005 , as compared to $ 29.4 million in fiscal 2004 , primarily due to the higher interest rates now being charged under the revolving credit facility . effective may 3 , 2005 , the margin added to the eurodollar and prime interest rates charged under the revolving credit facility was increased by 25 basis points and 12.5 basis points , respectively , as the debt to adjusted earnings ratio was greater than 4.0 when computed utilizing trailing twelve month results . effective august 10 , 2005 , the margin added to the eurodollar interest rate charged under the revolving credit facility was increased by an additional 75 basis points as the debt to adjusted earnings ratio was greater than 4.5 when computed utilizing trailing twelve month results . subsequent to these changes , the actual margin added to the eurodollar and prime interest rates charged under the revolving credit facility was 2.75 % and .25 % , respectively . these interest rate margins represent the maximum margin that can be charged under the revolving credit facility . income tax ( benefit ) expense . income taxes decreased $ 16.0 million , or 105.9 % , to a benefit of $ 0.9 million in fiscal 2005 , as compared to $ 15.1 million of expense in fiscal 2004. the income tax benefit for 2005 was 8.5 % of the pretax loss of $ 10.5 million ( which includes a $ 17.3 million goodwill impairment ) . approximately 63 % of the goodwill impairment did not provide an income tax benefit . this non-deductible goodwill resulted from business acquisitions made in years prior to 2000 in which the capital stock of the acquired business was purchased . absent the impact of the goodwill impairment , the effective tax rate in 2005 would have been 24.5 % as compared to a 41.9 % effective tax rate in 2004. in 2005 , a $ 772,000 increase in tax expense was recognized to provide a valuation allowance for certain state tax benefits that may not be realized . in the fourth quarter of 2005 , the company recognized a deferred tax benefit of $ 825,000 to adjust certain deferred tax liabilities recognized in prior years . the company also recognized a $ 514,000 federal tax benefit in 2005 to adjust for the impact of certain state tax benefits recognized in prior years . in 2004 , the company recognized state and local income tax expense of $ 563,000 to adjust certain state tax benefits recognized in prior years . results of operations for fiscal 2004 compared to 2003 net sales replace_table_token_7_th consolidated net sales for fiscal 2004 increased $ 157.9 million , or 30.6 % , to $ 673.9 million , as compared to $ 516.0 million for fiscal 2003. the majority of the increase was due to price adjustments made in light of the increased cost , primarily for steel rod , and additionally in the fence business , for steel pipe and tubing and galvanized wire . improvements in market activity and market share also contributed to increases in sales volumes in 2004 as compared to 2003. improvements in production capabilities , customer service , and new product introductions all contributed to the market share increases . concrete construction products net sales in the concrete construction products segment for fiscal 2004 increased $ 116.6 million , or 51.9 % , to $ 341.1 million , as compared to $ 224.6 million for fiscal 2003 , due to increased price and volume levels . the higher price levels , which contributed approximately $ 80 million to the net sales increase , primarily reflect the pass-through of increased costs for steel rod . net sales increased approximately $ 36.5 million from volume gains resulting from improved market activity and increases in market share , supported by new production equipment installed in the second half of 2003. strategic initiatives to emphasize the sale of higher valued added products and to improve the breadth of our product offerings also contributed to the volume change in net sales . sales from the establishment of new concrete accessories distribution facilities in new england and the pacific northwest late in 2003 and in florida in august 2004 also contributed to the market share increase . market activity in

