(ATR) 2007 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by.

Welcome to AptarGroup's second-quarter 2007 results conference call.

At this time, all participants are in a listen-only mode.

Later, we will conduct a question-and-answer session.

Introducing today's conference call is Mr.

Ralph Poltermann, Vice President and Treasurer of AptarGroup.

Please go ahead, sir.

Thank you.

Before we begin, I would like to point out that the discussion to follow includes some forward-looking comments and that actual results or outcomes could differ materially from those projected or contained in the forward-looking statements.

To review important factors that could cause actual results to differ materially from those projected or contained in the forward-looking statements, please refer to AptarGroup's SEC filings.

The information in this conference call is relevant on the date of this live call.

Although the Company will post a replay of this conference call on its website as a service to those investors who are not able to listen today, the information contained in the replay will be dated and should be used for background information only.

The Company undertakes no obligation to update material changes and forward-looking information contained therein.

Participating on this call today are Carl Siebel, President and Chief Executive Officer of AptarGroup; Peter Pfeiffer, Vice Chairman; and Steve Hagge, Executive Vice President and Chief Financial Officer.

I would now like to turn the conference over to Mr.

Siebel.

Thank you, Ralph.

Good morning, ladies and gentlemen.

This is Carl Siebel.

I will briefly summarize our press release.

Then we will focus on each of our segments.

I myself will comment on our Beauty & Home segment, Peter will discuss our Pharma segment, and Steve will provide insight on the Closures segment, and then we will follow his segment-specific comments with his usual review of our financials.

Overall, we continue to benefit from the broad-based strength of demand across our segments and also a high level of new product activity, both our own innovations as well as new applications by our customers for our products.

I'm pleased to report that we had an exceptionally strong second quarter, which resulted in record quarter sales and profits for the quarter, as well as for the first six months.

Sales and profitability increased in every segment in this quarter.

Changes in exchange rates had a positive impact on sales.

Looking at our largest segment, the Beauty & Home segment, and excluding changes in exchange rates, Beauty & Home segment sales increased 15%.

And this is comprised of a 25% increase in sales to the personal care market, a 10% increase in sales to the fragrance/cosmetic market, and a 5% increase in sales to the households market.

The increase in personal care sales was broadly based and included increased demand for our aerosol valve systems for sun care products, as well as lotion pumps for viscous products.

Demand for our fragrance sample systems continues to be especially strong.

This includes our miniature spray pumps for vials, as well as our thin sampling system known as Imagine.

I would like to point out that Imagine has gained visibility in the marketplace as it has been distributed recently with the Giorgio Armani fragrance in an insert in a popular newspaper in France, as well as in a magazine in New York.

Now I would like to turn the call over to Peter.

Thank you, Carl, and good morning, everyone.

Speaking about our Pharma segment, the second quarter was particularly strong and was driven by increased demand for our metered dose valves and pumps, as well as higher custom sales -- tooling sales.

Excluding changes in exchange rates, the Pharma segment sales increased 18%, with higher custom tooling sales representing about 4% of the 18% increase.

Profitability of the Pharma segment in the quarter improved mainly due to higher product sales.

I would like to take a minute to speak about some recent pharmaceutical product announcements.

You may have seen the recent article in The Wall Street Journal regarding the latest products on the market for the treatment of asthma.

The article featured GlaxoSmithKline's Advair medications and the AstraZeneca Symbicort product which was recently approved in the U.S.

On prior calls, we mentioned that we are providing our metered dose valves for Advair.

I'm pleased to report that we also supply our metered dose valves for Symbicort.

Both medications are maintenance treatments.

This means that they are typically used frequently over long periods of time.

Turning to the dispensing systems for allergy medications, Glaxo recently received FDA approval for their new allergy medication called Veramyst, for which we supply nasal spray pumps.

In summary, we continue to have a number of pharmaceutical applications for our dispensing systems at various stages of development.

I would now like to turn it over to Steve.

Thanks, Peter, and good morning, everyone.

I will talk briefly about the Closures segment, and then I will talk about our consolidated results for the quarter.

Looking at the Closures segment, both sales and income increased during the second quarter.

And as we take a look, excluding changes in exchange rates, the Closures sales -- segment sales increased 7%, mainly due to a 12% increase in sales to the food market and a 6% increase in sales to the personal care and household markets.

Focusing on some of the new closure product initiatives, we recently introduced in Europe a new beverage closure which design provides both better functionality as well as aesthetics than our earlier version.

It has been extremely well received by the market, and today we are selling at our full capacity.

Also, we have seen interest and a demand for our patented easy-open jar lids, which, again, we are continuing to see strong sales throughout the quarter.

Now, looking at Aptar's consolidated results for the quarter, reported sales overall increased 19% and changes in exchange rates accounted for 6% of the increase.

Acquisitions accounted for approximately $4 million, or about 1% of the 19% increase in sales.

From a geographic standpoint, sales to customers by our European operations represented approximately 63% of net sales this year versus 61% last year, while sales to customers by our U.S.

operations accounted for 26% of sales this year versus 30% last year.

Our stock option expense on a pretax basis for the quarter was about the same in both years.

So bottom line, we reported earnings per share of $0.52 per share compared to $0.39 a year ago, or a 33% increase.

Free cash flow, defined as cash flow from operations, less capital expenditures, for the quarter was approximately $28 million versus $16 million a year ago.

Our cash flow from operations for the quarter was approximately $58 million in the current year compared to $46 million in the prior year.

And our capital expenditures were around $30 million in the second quarter of both years.

We spent approximately $25 million to repurchase roughly 680,000 shares during the quarter at an average cost of a little over $37 per share.

And at the end of the quarter, the remaining number of shares authorized for repurchase was around 3 million.

The mix of debt at the end of the quarter is roughly 50/50 fixed versus variable, with an average interest rate around 5.7%.

From a balance sheet standpoint, on a gross basis, our debt to capital is approximately 24%, while net debt to net capital is approximately 11%.

Now, briefly looking at the first six months, consistent with the quarter, reported sales increased approximately 19% and changes in exchange rates accounted for 6% of the increase.

Acquisitions accounted for approximately $11 million, or about 1% of the 19% increase on a year-to-year basis.

Looking forward, presently we expect our depreciation in 2007 to be in the area of $120 million, while total cash outlays for capital expenditures in 2007 are expected to be in the area of $140 million.

Capital expenditures in 2007 will exceed depreciation and amortization, primarily due to the previously announced expansion of our pharmaceutical facility in France.

The normal effective tax rate for 2007 is expected to be in the area of 31% to 32%.

We expect during the third quarter of this year that the German government will ratify a proposed reduction in the German effective tax rate effective January 1, 2008.

This reduction will reduce our overall taxes that we pay in Germany from approximately 38% today to 38% beginning next year.

Also -- or excuse me, 30% next year.

Also, when it is finalized, we will need to recalculate our deferred taxes for this lower tax rate.

We presently estimate the reduction of net deferred tax liabilities that we expect to record in the third quarter of this year to be in the area of $2 million, or a positive impact of about $0.03 a share.

Looking forward, we expect the positive momentum to continue into the third quarter of 2007.

Diluted earnings per share for the upcoming quarter are expected to be in the range of $0.47 to $0.50 per share compared to $0.40 a share for the third quarter of 2006.

This represents an increase in the range of 18% to 25%.

I would like to point out that this range does not include the effect of the German tax rate decrease on deferred taxes that I just talked about.

At this time, Carl, Peter and I would be glad to answer any of your questions.

(OPERATOR INSTRUCTIONS).

Ghansham Panjabi, Wachovia.

Could you give us a sense as to which end market you see the most momentum heading into the second half?

It looks like pharma is very strong, but should we expect a slowing in fragrances, given the tougher comps, particularly in Q4?

Certainly, we will have tougher comps in the second half, as you mentioned.

But up to this point, we do not see, from talking to our customers, anybody predicting a reduction in the demand for the second half.

So basically, we continue to see good orders for the pharmaceutical.

We have a good order backlog also for the perfumery and cosmetic business.

And really, essentially, we're running on all cylinders.

And it looks like, at least for the third quarter, as reflected in our forecast for the results for the third quarter, that all three segments will continue on the track which we have seen in the second quarter.

Okay, good.

And just real quick on whether polypropylene impacted you negatively in the second quarter and what we should expect for 3Q.

You're right, it did.

There was some impact by cost -- price increases from the plastic resin cost side, also some from the metal side.

And as usual in the closure business, we have regular pass-throughs, evidently with a time lag.

And we are also working on passing the metal cost increases through to our customers in the cosmetic and personal care area.

Ross Gilardi, Merrill Lynch.

It's certainly great to see the share repurchase this quarter, and of course the top-line growth.

When I look at your balance sheet, though, it seems like you guys have got a seemingly very high-class problem -- you've got this net debt to capital target out there of 30% to 40% for some time.

You're sitting at 11% right now.

You're generating, obviously, plenty of top-line growth on your own.

From the sidelines, I am certainly not privy to what you guys can see in terms of smaller regional transactions, but prices for big acquisitions in your space appear to be occurring at multiples well above your own multiple.

You are generating a lot of cash.

Just wondering, would you consider something a little bit more unconventional, like a Dutch tender offer for 10% to 15% of the Company?

By our calculations, it would seem you could do something like that, still have plenty of borrowing capacity to do smaller to mid-sized acquisitions, which have always been your bread and butter, and still maintain well within your capital structure parameters.

So just curious about your thoughts on that.

This is Steve.

You are right -- we are continuing to generate cash.

Our primary focus for the cash we have has been and will continue to be on the acquisition side.

Given some of the prices of the larger deals, we have not been able to at least calculate that we can get the returns we require on those transactions.

We are very active right now in a lot of smaller transactions, or at least looking at those, as we have been in the past.

From a stock buyback standpoint or a Dutch tender, we will continue to look at those, and we continue to evaluate it with the Board really on a quarter-by-quarter basis.

But we have made no commitment or decision one way or the other on that side.

Do you have any specific timing in mind as to when you want to get to that target capital structure?

No, I think, again, the acquisitions, in terms of where we are at, is more looking at what makes sense for us strategically.

So we haven't put out -- saying we want to be there in six months or two years.

It is really more of a long-term goal for the Company.

Can you just make some general comments as to what multiples in the pharma area that would be complementary to your existing business look like relative to the more traditional packaging and dispensing markets?

Again, I would not like to get into the multiples of any kind of transactions we are getting into before we would ever announce anything.

Okay.

And then I just had a follow-up on Pharma.

Obviously, great growth this quarter, but what was unclear to me, how much of that 18% organic growth was from the new products that have just gotten -- Symbicort and the new Glaxo product?

Was that actually in this quarter, or is that more for the second half?

This is Peter speaking.

There was some sales for the Advair product, but the main sales will come in the next quarter.

So it is not reflected in the second quarter, really, the new introductions.

There was also the introduction of Veramyst, the product of Glaxo, which will start really in the next quarter.

And is any of this -- any of these new orders going to be fulfilled with your new capacity, or is that -- what does the timing look like for your capacity expansion?

The capacity expansion is foreseen for next year.

So we're still building the building in France for the pharmaceutical production and will come onstream only in 2008, third or fourth quarter 2008.

George Staphos, Banc of America Securities.

Steve, it looks like working capital was a $10 million use in the quarter, which is a little bit better than what you saw in the first quarter and versus a year ago.

Would that be about right?

Yes, actually I had working quarter was about flat between the two quarters -- or between last year and this year.

So most of our generation of free cash flow came through our operations side, came through cash flow from operations.

Okay, fair enough.

I got to basically the figures that you provided, but we will have to wait for the cash flow to get all the line item detail.

You are keeping CapEx at $140 million, yet you started the first half of the year at, I think, $55 million.

Is the timing on the expansions pretty much in line -- and the capital spending in line with what your initial expectations were for the year?

Or have you pushed back the timing on any of the expansions?

The biggest difference, George, is the timing of the building payments that we will have.

And those will start to accelerate as we go into the second half.

So while we've started the facility, the major expenditures will come towards the second half of the year.

Fair enough.

I guess the last question for now is as we think about the fragrance and cosmetic business, you are already, I would imagine, producing or beginning to get orders for the holiday season.

A., would that be correct, and B., if, Carl, you're seeing good signs where maybe you're up against tough comparisons but not a reduction in orders, shouldn't that be already a good sign for the whole of the year, or how would you have us think about that -- the whole of the holiday season?

George, you are right.

The filling season for the Christmas business traditionally in the perfume industry is already starting.

So some of the business we are supplying is certainly to produce for the Christmas season.

And as far as our expectations is concerned, yes, again we remember that fourth quarter last year was pretty strong, so comparison in the fourth quarter this year to fourth quarter last year will be somewhat more difficult.

But essentially, right now we have no indication from anybody, from the customers and so on, that would tell us there could be a reduction in activity in the second half.

Presently, in many product lines, we have good order backlogs.

The outlook the customers are giving us are positive.

And based on the demand, especially in developing countries -- Eastern Europe, Russia, Latin American -- seems to continue to be strong.

And I guess the only potential weakness, and that is already true in the first half of this year, is the U.S.

market in fragrance, which is not growing very much.

But worldwide, the demand is strong, and we see only continuation of that for the time being.

Chris Manuel, KeyBanc Capital.

Let me touch on part of the answer to George's question that you gave, and that was when we think about the organic growth, it looks to be another terrific quarter you had.

And what you have indicated is that, or at least it seems to be, that the third quarter is going to continue at this pace.

Can you help us with maybe looking at this a different way on the geographic standpoint on where most of that growth is coming from?

Is the bulk of it in Eastern Europe, Asia, those type of regions, and the U.S.

being more low single digit, or how should -- can you help us with the geographic look at that?

Looking really across all our businesses, you could make the statement that presently, the U.S.

market is somewhat slower than all other markets for us.

Now, one difficulty in judging where the growth is coming from is that a lot of our business in Europe goes to marketers who then sell, export their products worldwide.

That is specifically true for the high end of the perfumery market, but in general for the perfume market.

Our conviction is, based on information from customers, that the biggest growth drivers is Asia -- it's generally the developing markets.

It is Asia, it is Latin America, and last, not least, definitely Eastern Europe and Russia.

One customer said to me, we have crazy growth, textually, in Russia.

Helping with that is also that visibly, the consumption in Europe and the European markets, the GDP growth has picked up in Europe and generally the economies, specifically in Germany and other European countries within the European Union, are doing much better than in the preceding year.

So it is a combination of that.

And then on top of that for us, naturally, our new product introductions -- our sampling systems, which are going well; some very interesting products like a lotion which was brought to the market by [Brut] and got very -- a lot of publicity, first in England and is now introduced like iPhone in the United States.

So this, again, we are supplying that with lotion pumps.

So again, some specific elements, but there is a general fundamental growth, as explained.

Maybe some of those sun care products are going for all those folks that were standing in line outside, getting burned waiting for those iPhones.

So I guess that maybe that is some of the crazy growth.

One last question for you is, on the acquisition pipeline, I know you are not going to -- ready to tell us about anything at this point, but it has been almost a year since your last acquisitions.

Would it be unreasonable to assume that with a lot of the bigger deals being absorbed by private equity guys that there is a sort of a niche in the smaller-type deals that it makes it more attractive for you?

And should we be surprised if you announce one or two of these smaller deals by year end?

Does the pipeline look that good?

Well, as we always said, we are constantly evaluating potentials.

And at this time also we're doing this.

And yes, it may be that within the second half, we may be closing something.

But naturally, we cannot pin anything down at this point.

So we are continuing to evaluate opportunities for geographic expansion, for new technologies, new products, innovative acquisitions.

And there are opportunities out there.

Claudia Shank, JPMorgan.

You mentioned in the press release that the Company continues to benefit from cost-containment efforts.

And I was wondering, maybe you can quantify these and put them into context in terms of what you have been doing, and then really how much more room there is left for improvement.

It is difficult to quantify, Claudia, because, frankly, it comes across all of our businesses.

We announced a couple of years ago we were doing some restructuring in our French businesses, and those are positively impacting the business today in terms of overall savings.

But since we have activities going on in each of our different branches, it is really for us almost impossible to come up to one number.

So I can tell you, though, across all the sectors we're seeing improvements in terms of overall utilization and productivity.

So it's just a number we don't -- we don't have one number to be able to pin it on.

How much more room do you have to go in terms of these efforts?

For us, it is a continual effort.

We have been doing it.

We will continue to look how we can better utilize our operations, both regionally, also on a worldwide basis and with the new products.

So I would tell you I still think there are continued room for improvement in our overall productivity side.

Including technologies which enhance the possibility of productivity, which is a continuous effort.

So again, we are certainly not -- we are not anywhere close to the end of that game.

Mike Hamilton, RBC Dain.

Most of what I've got is fairly specific stuff.

First, if you could comment at all on where you are on the productivity issues that were hitting you the last couple of quarters in the French plant.

In our French facility, what we have seen is -- we are to date, at least in the second quarter, we have seen improvements from where we were in the second half of 2006.

However, we've actually backtracked a bit.

We actually had a reduction in our improvement in the second quarter to the tune of around $700,000.

So while we are better than the second half, we actually increased the expenses in that operation or the nonprofits in that operation by about $700,000 in the quarter.

We expect that to be improving.

That was really done as a reduction not out of productivity, but a falloff in some sales that we had in the quarter.

We hope both productivity and sales to increase through the second half.

And again, we'd hope to see continued, then, improvements through the second half of the year.

Steve, do you have what the total tooling revenue was in the quarter?

Yes, I do.

This year, we were about $10 million in revenue -- or excuse me, l$13 million this year, $10 million last year, or an increase of about $3 million.

And Mike, that gets you to the first half of about $21 million compared to $22 million a year ago.

And then Steve, if you've got it handy, could you give us the unit revenue, pulling out acquisitions -- your organic without?

Yes, if you look at it in the Beauty & Home side without acquisitions, personal care was 24%.

Fragrance/cosmetic would have been 8%.

Getting into the Closures, personal care without acquisition would have been 3%, and household and food would have been the same -- 6% and 12% -- as they would have been before acquisitions.

And Pharma would have been the 18% that we had; there was no acquisition impact.

Just excellent execution.

Thank you for all the help.

Greg Halter, Great Lakes Review.

I will echo the good job commentary as well.

Just one question for you regarding price pressure.

If you could comment on what you're seeing there and what kind of competitive situation you have been dealing with, specifically on MeadWestvaco buy of Calmar, if there has been any change in what you're seeing there?

Price pressure is a constant element, evidently, like in most industries, also in our business, as a continued struggle to increase your productivity at least as much as your price pressure.

[What costs you now], with specific reference to Calmar/MeadWestvaco, we did not see any change in their competitive behavior in the market since the acquisition.

So I suppose that MeadWestvaco also has the interest of maintaining or increasing profitability like we have.

So we did, as I said, we did not see any change in their behavior in this respect.

And on the tax rate, Steve, is it too early to say that the 31%, the 32% will go down in '08?

Everything else being equal, it will go down, because we've got around -- last year, about $260 million of our sales in Germany, and as we disclosed in our 10-K last year.

All those sales that we will have in '08 will be impacted by the lower tax rate.

So again, everything else being equal, we would expect the tax rate to go down.

Probably a couple percentage points?

We haven't gone through, since we are still pretty early in the game, on that.

We haven't calculated that yet.

I know the government is still talking about finalizing, but is that pretty much a done deal?

It is pretty much a done deal.

It remains only the signature of the President.

It is through both houses of Parliament.

And the signature of the President is a formality.

Timothy Burns, Cranial Capital.

Carl, I've got a great idea for you.

My friend Chris Manuel, fellow Cleveland native, brought up the iPhone, as did you.

One thing you guys ought to think about is a dispensing system that acts like a windshield wiper on all those fancy views, if you know what I mean.

It would certainly be a thin system.

But I don't know about you guys, but I am tired of looking at this gooey mess on my phone.

If you can conquer that, you guys don't have to worry about any M&A.

The other question I had was in terms of -- I was a little confused in terms of the Beauty & Home comments.

It said sales ex FX were up like 15%.

Yet it had personal care up 25%, fragrance and cosmetic up 10% and household up 5%.

Am I missing something?

No.

I mean, those were -- we are up, in terms of the total, excluding FX, we were up 15%.

Those other numbers included FX?

Correct.

Got you.

I'm sorry, I was just a little confused.

And then regarding the personal care segment, you have two sampling systems.

One is Imagine.

Can you remind me what the other one is?

We have -- the glass tube with stopper or pump is a product which is on the market now maybe 10 years or longer.

And we were supplying for long term a product -- the market leader in this specific segment of the business is Rexam.

We have been competing with Rexam with a product which was similar to the competitors and similar to the product of Rexam.

But then we were able to develop a new system, which we are marketing under the name Easy Spray, which has significantly less components, has the spring outside the mechanism so that it is not influencing the perfume, which is an advantage for our customers, and naturally was more economical.

So we were able, with a very good margin, to bring this product to the market.

Number one, aesthetically better, technology a ways better, and lower cost the market.

And with that, we were able to gain a considerable part of the market share in the specific business of sampling.

Parallel to that, we developed a completely different technology, which we are selling under the name of Imagine, which is a flat sample and the first possibility to put a perfume, sprayable perfume, in a magazine.

So it is also using very different technologies from our traditional dispensing systems.

It is not using plastic molding.

It is very, very innovative and very different.

We are also, in this case, selling to the market the complete filled product.

So we are not only producing the dispensing system, this flat sample, but we are also filling it.

So it is a product which is sent to our customers ready to go to the retail.

And that has had a very, very big success this year.

We are sold out for the rest of the year in this product.

And the first large -- the first utilization was Estee Lauder two years ago.

And now it is being marketed worldwide with the Armani perfume.

And L'Oreal, who is really the marketer behind Armani perfume, is not only using it in magazines, but is also using it to distribute it in airports, at the point of sale and so on.

So one of our customers said, you have the potential to revolutionize with this sampling market for perfume.

Got you.

This may sound stupid, but are you guys using propellants in any of your products?

Evidently, yes, in the aerosol side.

We don't use it; our customers use it.

Our customers.

Our customers use propellants on some of their -- particularly on the aerosol.

We, not personally -- we are supplying the aerosol industry with aerosol valves.

Okay, because there has been a little bit written on the changes in formulation of propellants and that some valve manufacturers will do better than others.

And I am just wondering if you had any comments along those lines.

Is any business threatened or is there any growth potential?

We think there is considerable growth potential.

Number one, the aerosol business worldwide has started to grow again over the last year.

So there are now about 11 to 12 billion units of aerosols filled worldwide.

The one issue, naturally -- we first had the ozone depletion issue, which then led to the elimination of certain propellants and their replacement by hydrocarbons.

The potential with hydrocarbons is naturally it is flammable, and there is the desire of the marketers if we would be able to come up with propellants which would eliminate that potential.

And we are working since two or three years on some very innovative dispensing systems which would allow us to get -- because the issue is if you eliminate, for example, fluorocarbons, you get a deterioration potential of the spray -- of the quality of the spray.

And you can use, for example, compressed gases, and that has been tried in the past.

But using compressed gases, you deteriorate the spray.

Our new technology might accommodate that and might make it possible to use compressed gases, which would be very environmentally friendly, and still creating the same quality or better quality than using, for example, fluorocarbons or hydrocarbons.

So the net-net is the aerosol business could actually feature some unknown growth?

Yes, it could.

We have some very interesting long-term projects there.

Good.

And then I couldn't get away with this, and then I will sign off -- I was taking a shower the other day and I noticed my son had some product called Axe.

And to my surprise, it showed a gentleman showering all by himself, and after using the Axe product, he was showering with two lovely women.

And I'm just wondering -- are you guys --

(multiple speakers) yourself.

I'm just wondering, why hasn't it worked for myself?

No.

But isn't it true that these products are much more available in Europe and are very, very prized and desired?

Yes, they were first developed, and Axe is a product of Unilever, which is extremely successful in the deodorant market, and was launched first in Europe, but has been, I think, also a big success in the United States, has been also then introduced similar kind of products for the same clientele in the United States by other marketers.

And we are supplying a good portion of this business.

Thanks a lot, and hopefully it will come to Cleveland.

(OPERATOR INSTRUCTIONS).

Ross Gilardi, Merrill Lynch.

I just want to clarify -- did you say the German tax law change will help the third quarter by $0.03, and that wasn't included in guidance?

That is correct.

It was not included in the guidance.

And right now, assuming it gets signed in the third quarter, which is our present expectation, it will benefit the quarter about $2 million on a tax basis or about $0.03 a share.

And that would be in addition to the guidance we have given.

Would you think that it is a similar type benefit in the fourth quarter as well?

No, that is a one-time benefit for the deferred taxes.

Then we will start to get a quarter-by-quarter benefit beginning the first quarter of 2008, because that is when the tax rate reduction goes into place.

I would like to (multiple speakers)

I was just saying there were no further questions, sir.

Thank you very much.

I would like to thank everybody for participating in today's call.

Thank you, and good-bye.