Boyd Gaming Corp (BYD) 2002 Q3 法說會逐字稿

Thanks and good afternoon, everyone. Welcome to our 3Q02 Conference call. Let me just remind you the call today may contain some forward looking statements. The actual results may vary from what's contained in those statements, the variances could be material and we'll refer you to our public filings for the risk factors you need to know before you invest. Just a short while ago we reported or 3Q02 results and we're pleased with how our properties peformed in the third quarter. Third quarters generally is a weaker quarter for us due to the seasonally slower business in Nevada so we didn't match, and didn't expect to match our 01Q02 or 02Q02 of this year. However, that said, our 3Q02 was the company's third best quarter ever, exceeded only by the 01Q02 and 02Q02. Our Nevada properties did $20m in EBITDA for the quarter, actually had one of its better summer performances in recent years due to better results of the Stardust and a good summer quarter at Sam's Town Las Vegas. In fact the Quarter put Sam's Town Las Vegas looking at their LTM number at just over $30m of EBITDA and with good momentum to grow their numbers from here.

The summer quarter is usually a good one in our central region and this year was no exception. The five central regional properties report EBITDA of $53m, their highest quarterly total ever. We reported $0.23 per share in the quarter, that's fully diluted before pre-opening expenses and before a loss that we recorded on the earlier retirement of debt. That compares to $.09 before pre-opening expenses that we reported in 03Q01. When we updated last year's 03Q01 for us and everyone in the group was lower than normal due to the last 20 days that came at the aftermath of 9/11. Last year, and we did report this at the time, we estimated that the last 20 days of September were $2.5m shy of where we thought they would have been under normal circumstances, that's about $.02 a share that came off of last year's numbers. Our EBITDA in the 03Q02 from our properties was $73m before corporate expense and $65m after corporate expense. That's 25% increase in property EBITDA over last year. Taking out Delta Downs, doing a same-store comparison, our property EBITDA was up 15%. Seven of our eight operating units that operated both years reported higher EBITDA in 03Q02 vs. 03Q01. And once again, the company improved operating margins. Our downtown Las Vegas properties did report slight lower margins in 03Q02 and Par-A-Dice was lower this year because of the tax increase. All the other properties were up, and as a group, we had an increase in our EBITDA margin of $1.7 percentage points after corporate expense. When we do talk about our property-by-property results in the [Wrigley] so I won't go over that but let me just point out some of the pertinent information about some of our property results.

The downtown Las Vegas unit as I mentioned was the only operating unit that reported lower EBITDA this year vs. last year in the quarter. The reason was not that the property level operations, the reason was that our air charter operations that we operate from Honolulu to Las Vegas, didn't get as high a revenue per passenger as last year and we had some higher costs from that operation. I can report to you that this appears a bit more of a summer issue and at this point our charter results look much better for 04Q02. Turning to Par-A-Dice. Par-A-Dice had a great 03Q02. In fact, if it weren't for the gaming tax increase, it would cost us $1.4m the property would have had a $15m EBITDA quarter, that would have been a record and thus the first time we ever would have hit $15m but it wasn't to be with the tax increase. We were still ahead of last year in EBITDA, which is quite good with the tax increase and still produced great operating margins. They are the best operating margins in the State of Illinois. At Blue Chip, which by the way also produces the top margins in the state of Indiana, dockside has been good to us. Dockside started on August 1st so we had 2 months of it in the quarter. In that period, gaming win was up 18% over the prior year. We think that's generally a sustainable level of increase with dockside operations versus the cruising operations that existed before dockside began. As we pointed out in the release, we're not really seeing higher effective tax rates yet because we are at the lower part of the graduated scale that will run through year-end. Next year we'll accrue a higher tax rate, but we're still hopeful that we will be able to more-than-offset higher taxes with the better results that are coming from dockside operations.

Going over to Delta Downs, Delta Downs is coming along but maybe a little bit slower than what we would have liked. Just to give some statistics, the win per unit since we started slot operations in the middle of February this year, has been $250 per machine per day that is through the end of 03Q02. In the second quarter which is our first full quarter of operations we did $243.00 a day and 03Q02 we did $227.00 per day. Horseracing didn't take place in the 03Q02, it did in 02Q02. I'm sure there are some seasonal things in there, and we're just really new in that operation so we hadn't been to a full year cycle yet. October started out tough for us because we lost several days to a hurricane that was headed toward the property and the resulting preparations people were undertaking evacuations and so forth. But, still our goal remains that we show sequential EBITDA and margin improvement Q to Q. It's a great location and we're looking at property enhancements that we hope will make a real difference in the properties' performance.

Let me go over to the balance sheet for a moment. We pay down $23m in debt in the quarter, that brings our YTD pay down to $54m and, by the way, that's after putting $37m into the Borgata in the 01Q02. We're going to keep paying down debt with our available free cash flow. We did close the quarter at $1,091m. If nothing unforeseen comes along, we could be around the $1 billion or below debt level by the end of 2003. In the quarter, we retired about 40% of our 9 1/4 percent of bonds of 03 that issue becomes due next October. We drew down on our bank line to buy in the notes. Historically, the premiums are paid in trades like that are recorded as extraordinary items, but the new accounting standard that's come out that actually starts January 1st requires that it go into the non-operating section of the income statement where interest expense are recorded. We adopted this treatment now, early, to avoid a 2003 Reclassification for extraordinary back to that section in which we put it, which is required by that new accounting standards. The premium we paid and the loss we took on that was $.03 a share in the quarter. When you look at corporate expense, just looking forward, keep in mind what we reported in the release, it was unusually high this quarter. You should probably be seeing this in the $6.5m per quarter range going forward. As far as the Borgata in Atlantic City's concerned, Don will give you an update, in just a minute. Let me just point out that we're getting into the home stretch and it is on schedule to open next summer and we're all very excited about that. Let me give you one statistic. Our neighbor in the marina district in Atlantic City is Harris. They have recently expanded and upgraded their property. We think they're a good proxy because they're in the neighborhood, in the arena with that new road, the Atlantic City Expressway Connector going right to it and they have a new and improved product. I want to point out that they had a great summer. 3Q02 revenues were up 16% at that property, EBITDA was up 27% of $56m, that's why we're really looking forward to getting the Borgata opened for next summer.

Let me give you a few statistics, pre-opening expense in the 3Q02 was $2.7m, that's $.3 a share and that was primarily the Borgata. That was due to the Borgata. 3Q02 CAPEX total was $13m, that was $12m of maintenance CAPEX and $1m to finish up the expansion of third deck at Blue Chip and you may have notice in the Indiana Report that we did add table games that was the addition of the poker room and a high ended table area. Capitalized interest in the quarter was $3.9m. That is due to our investment in the Borgata we're capitalizing interest on the approximately $182m that we have invested in the Borgata up to this point. The cash at the end of the quarter, of September 30 was $70m, that is net of unrestricted cash. The cash we took in from selling equity in the quarter, which was done through stock options was $2.3m YTD was taken at about $14m on option exercises. The shares at the end of 9/30/02 was $64.7m shares outstanding, the diluted share number that we used in the calculation of 03Q02 diluted EPS was $66.7m. Let me just say in summary, we're having a great year. Through the three quarters we have EBITDA before pre-opening of $209m and EPS of $.82 per share. These results are much better than we've ever seen before. We're hopeful that 04Q02 can beat 03Q02. We come out of that summer season in Nevada and do expect a better Nevada quarter in Q04. It will be a record year, and next year should be even better. On top of that, the Borgata opens in the middle of next year. And with that optimism, about our future, I'd like to turn it over to our President, Don Snyder.

Thank you Ellis and good afternoon. This company really is in very good shape and you can pick that up from the tone and comments that Ellis has made and we're very proud of that fact. We're proud of what we're producing and equally proud of how it's being produced. We're also very proud of what we're building in Atlantic City and as Ellis has suggested we are very optimistic about that property and how it will perform once we open next summer and we will talk a little bit in more depth about that project in just a minute. We are very pleased with 03Q02 results, and the fact that we have improved so dramatically over last year's numbers. Our business focus, our business strategy continues to be played in 3 basic areas, strengthening the operating foundation, building a stronger balance sheet, and creating and managing growth effectively and I think that throughout this report and conversation you'll get a sense that all of that is happening extremely well. We continued our focus from an operating point of view, on operating margins we were very pleased to report that we improved in that category Q over Q once again. Our geographic and market diversification is serving us extremely well but so are the people that are running those businesses for us. Led by Keith Smith, our COO, our General Managers are truly doing a great job managing those properties effectively and efficiently. Financially as Ellis has said, we are concentrating on the financial position on the Balance Sheet and pleased that we were able to entire or reduce debt by another $23m in 03Q02, that is a significant reduction for the year as Ellis has suggested and we look forward, certainly into 04Q02, without any major capital expenditures plan, we expect that we will continue to reduce the debt levels exactly as we have suggested in the past.

In terms of growth opportunities, Delta Downs, Ellis touched on just a bit in his report, this is the 2nd full quarter with Delta Downs. We remain encouraged by the performance and progress being made at Delta Downs but as Ellis suggests, we aren't yet satisfied that those results are where they, can be and will be in the future. We continue to build our database and work on determining the most effective marketing practices for this region as we get experience with the property and that particular marketplace. We are managing expenses aggressively, and the result should be growing margins. We are confident that that will continue to move forward. As we mentioned in the press release, we are considering some enhancements for that property as we have suggested in the beginning with 200 acres of land with a tremendous location. We have the opportunity to add amenities to that property, such as the hotel that we think is part of realizing the full potential of that property over time. Also the racing season will begin in a couple of weeks. We are encouraged by that. It really does add a lot of excitement to the property and we think that increasingly can get reflected in the operating results for the property. But, the big deal for us is the Borgata and we remain very focused on that in terms of where our growth and efforts and our development efforts are placed. All aspects of this development feel very good to us. The construction process, the quality, the look and the feel of the building and importantly, as we move toward our opening next summer, the operational planning that is being done, and the operating management team that is being put in place encourages us greatly as well. We recently launched Borgatajobs.com our online job application system. In just ten days of that, we have nearly 10,000 job applications and another 3,000 expressing some interest for employment at the Borgata so we're absolutely overwhelmed in a positive sense, with that reaction to our property. We had our Board of directors in Atlantic City last week and they clearly share our enthusiasm in the Borgata and our confidence in successfully completing and opening the property next summer. If you haven't had a chance to be in Atlantic City recently to see the Borgata or if you haven't turned into our online live construction cam, let me give you a quick recap of the project and where we stand today.

First of all, with regard to the tower, if you're in Atlantic City, you absolutely can't miss it, it is certainly, in terms of its physical structure, quickly approaching completion. The concrete is totally complete, the curtain wall is virtually complete on the entire tower building, the roof structure is being finished but when you start to get inside the building, you also start to get a real sense of this project moving forward in a positive way. The baggage and service elevators are in use. The west tower crane came down in September, Millwork and painting is now nearing the halfway mark inside the building. Doors are being installed, wall covering is being installed, the marble floors are being put in place as is the carpet and importantly the furniture is being installed as we speak and for the firs time get a real sense of what the real rooms are going to look like and we're extremely excited about the look of those rooms, the feel of those rooms and if you like Ritz-Carlton rooms, you're going to love these rooms. They're going to make a real statement in that marketplace and what we wanted to do from the outset, we're clearly seeing it come together as we had anticipated from the very beginning.

In terms of the low rise, it's making the same type of progress. The concrete work is essentially complete, the ceiling work, the framing is nearing completion, and again when you look at that building and see the details that's going into things like the ceiling and see the finished work starting to come together, you start to get a real feel for the impact this property is going to have in this marketplace. Throughout the low rise, the escalators are in place, the elevators are going in. The kitchens are installed. In fact, when you walk around and look at the kitchens it looks like they're read to be fired up. The details, the fit and finish of the entire low rise building will certainly exceed the expectations of virtually any one that has operated or been to that marketplace and we're very excited about that.

The parking garages, the main parking garage as well as the employee parking garage are moving along nicely. The main parking garage is virtually complete, is virtually ready to be put in service and the employee parking garage we think will add a wonderful amenity to this property is also progressing extremely well. Finally, with regard to that project, the roadways that we've anticipated for a long time, starting with the "tunnel" project but now the onsite roadway, as it nears completion, gives you a real sense of access into the property, it is very positive, landscaping is going in, so, as you arrive at the property and travel the roadways, you get a real sense of the arrival and what it is that we can create with a 30-acre parcel of land, which is part of the bigger master plan environment. Again, it will make a tremendous statement in that marketplace, a big part of why we are enthusiastic about what the Borgata will do as it opens next summer.

In summary, the fundamentals of this company are really are very strong. The progress that we have made in that regard both gives us pride in what we've accomplished but it also gives us confidence in our ability to continue to perform at those levels. The Borgata is truly a category Killer Project, which we're very proud to be part of, and is very much on schedule for next summers' opening. We just could not feel better about this project at this stage of development, and could not feel better about the project and the impact that it will have as it opens next summer. With that, Ellis and I are pleased to entertain your questions.

+++ Operator's remarks.

Thank you, and ladies and gentlemen, today's question and answer session will be conducted electronically. If you would like to pose a question at this time, you may do so by pressing the * key followed by the digit 1 on your touchtone phone. We'll take our first question from Larry Klaskin at Jeffries and Company.

Hey guys. A couple of questions, were you coming out right now for an opening date for the Borgata or you still don't want to give any kind of tightness on that?

Not yet, Larry, we're still talking about summer voice obviously we'd like to be earlier than later than in the summer and we're shooting for that, but there's no date yet.

And October results so far, can you talk about that?

Larry, we don't get into too much into that. As you heard, we feel good about border exceeding Q03 or hoping it exceeds Q3 so that's an indication we are starting off okay but we don't have any specifics to offer you at this time.

On Treasure Chest, it seems like your margins were a little bit disappointing and revenues were rising. What's going on there in that market?

Nothing in particularly, we lost a little bit from the storm but other than that, it could be partly related to some promotional activity that we did not have worked as well as we wanted, just some small things, nothing that we seems to be a longer-term problems, just shorter term operational issues.

Alright and then another questions, there were a lot of people bantering around about the possible [Iniex 5] and what I'm hearing sounds like "much ado about nothing." Can you just make a comment about that?

What [cheniatravia] are you talking about?

In Michigan. No there's nothing really new on the Pokegan issue if that's what you're talking about, the traffic's been there for some time, that has there matter is still in the courts so we have nothing new to report, it's been there for some time and we don't have any particular information out at this point .

You guys just don't worry coming up right now.

Well, the good news is you don't know what the results of the particular court matters may be and its hard to predict that but we can say that now we are dockside and we have the opportunity to enhance our facility and we have the opportunity to serve our guests in a dockside manner. We are in a much better position to compete with a land based than we would have been had we stayed cruising, so when you say not worried, I mean we know that we can be an effective competitor even in the event that the property is eventually comes into service.

Okay, thanks guys, I really appreciate it.

We'll go next to Joyce Minor at Lehman Brothers.

Hey guys, can you talk a little bit about your take on MGMs plans to kind of push back the timing on their property in Atlantic City. Can you also talk about the little access road that sort of connects you to Harrah's and if you have any plans to really use that road or connect that property more easily to Harrah's in any way, and Ellis, can you talk to the up-tick in the corporate expense, I mean it sounds kind of a non-recurring item to me. Many people in this business are certainly more aggressive on accounting than you and I wouldn't consider that aggressive but is that kind of non-recurring in your mind and then can you also speak to Delta Downs and what you're seeing down in that neck of the woods with respect to construction and potential competitor moves of boats down there.

Let me take the #3 first and then I'll turn it over to Don. The issue of the corporate expense, as we've pointed out was just a write-off, a $1 million write-off of some obsolete software, there's nothing more than that and we did feel the need to do that and it does appear in the corporate expense area. I wanted to point it out in the release because I thought it would be helpful to know that that was essentially non-recurring if not to think of higher corporate expense numbers you look forward, so yet, there's a one time non-recurring item that took place in the quarter I'll just turn it over to Don.

Thanks Ellis. The MGM Mirage decision, just to respond to that first of all by saying that MGM Mirage is a great partner and we're absolutely pleased that they have a $500m stake in the Borgata. I think that that says something about their commitment into the market place and have been extremely supportive of everything we have done to the development of this project. But, we also know that they're a great developer and they would add a lot of breadth to the Renaissance point market, the general marina market in Atlantic City as a whole but to a considerable extent, this is a valid situation where you can have your cake and eat it too. They're a strong competitor, and to the extent that we have a longer period of time for the Borgata to operate without another major competitor in that marketplace is something that gives us cause for optimism with regard to the numbers and the ability to continue to produce strong numbers in that market without a new major competitor. It will allow us to absorb the growth of the marketplace over a longer period of time. Harrah's and what Ellis talked about in terms of the numbers that they produced gives us a tremendous amount of confidence in the strength and the ability of that market to produce good numbers. All that said, as we've seen in other markets, more critical mass, can expand the market, bring more activity and to have a major property next to us long term is nothing that we think that serves the best place and us as the nearest neighbor so it really is a situation of having our cake and eating it too. We will benefit in the short term and had a little bit longer period of time to digest the expansion into the marketplace but at the appropriate time, if that market continues to grow, and we see the success that the Borgata can achieve, our expectations that the MGM mirage folks will go ahead with the project and will be good for the area and good for us.

As far as the roadway into Harrah's I really don't have much to add on that. We obviously want to do what we can to facilitate the movement throughout that area but I just don't have any specific insights on that issue right now.

Restate the Delta Downs question, again?

Sure it was just a question, I know there is some road construction going on down there. How does that affect you guys and then your competitors were thinking out of kind of moving boats.

First of all, nothing a lot is back from the construction. I know there's been some conversation with the riverboats in Lake Charles, they have felt that we haven't really noticed the significantly at all so that has not been an issue for us. With regard to the moving of Riverboats, I think there has a lot to play out there. I think we can anticipate the chaos that would be involved in a local parish being able to vote the ability to relocate a casino. I think that there is a lot of litigation that takes place before anything happens and so we are not overly concerned about that.

Thank you.

[Lanesse, Kreske and Hart] Hi guys, great quarter, just one question, the $23 m you paid down on debt this quarter, can you use that sort of a road race going forth from maybe the next 2-3 quarters.

Yeah. I think I pointed out recently in our discussions that these levels of cash flow and not doing expansion of CAPEX we're running about $100m per year of free cash flow and we have stated and continue to state, this free cash flow will be applied to reducing debt until there a new expansion project on the horizon, so I think that that's a fair number to use.

Well go next to Ray Chiefman, Jeffries and Company

Congratulations Ellis on a very nice quarter. I was wondering if you would bring us up to date on your actions down in Tunica where a competitor's property is now being folded into your operations, how's it going, what's your plan forward, the other thing is - What's going on downtown, it looks like Becky's had a lot of problems. Does it impact visitation downtown, people under FST or does it not matter in the slightest?

I will try to answer both of those questions. First of all, with regard to Tunica and the acquisitions of the Isles operations there, that transaction was completed October 7 as you probably know. We purchased the property for $7.5m and really planned the additional hotel rooms and theatre and not the casino. We are using the hotel, which happened immediately after the acquisition was completed and occupancy levels were very normal to what we saw before. Actually giving us a little bit of flexibility and do things that we have been planning to do in terms of renovations and not have a reduction in rooms, at all. So, at this point in time, having over a thousand rooms, its something that we feel good about. As far as the theatres, we're evaluating the proper use of those theatres but feel that it is going to be an amenity that obviously was acquired at a very attractive price and we think can business over time, but we have to sort out the best way to so that. We're doing some things to smooth the easy ability for people to move from property to property, most from those new hotel rooms over to Sam's town. We have a tram and shuttle service to do that. We're modifying the entrance to the former aisle property so that it faces the Sam's Town and we're calling it Sam's Town, East Tower so over time it's just integrated into our overall building plan and our marketing program. We had great response from our customer particularly with the Jacuzzi suites that existed at that property which are in very good shape and add to the room space we have. So we feel pretty good about what is added to it. It's too early to really judge what the impact is going to be on gaming revenues but so far it's encouraging as we look at the initial reaction to it.

Don, do you get about the same price on those rooms or is it a little bit different.

It's marginally different but I don't have a good feel right off the top of my head what the room rates are but they are being marketed a little bit differently but the Jacuzzi suites give us a little bit of flexibility but beyond that I don't have a more-specific answer for you.

And the other question was just downtown, nobody seemed to be, You know MGM reported and it didn't look like it was that great and Becky's got all these problems the lights off and on, I'm just wondering if that has impact on you or is your franchise totally different.

Well, our franchise is largely different, certainly because the position that we have with the Hawaiians, that market continues to be very good for us, and so we haven't noticed the impact from the ongoing challenges the Horseshoe was having, I guess you know most of the gaming operations are back in business at the horse shoe but the noise that surrounds it continues to be a bit problematic but we certainly haven't felt that and over time, we hope that they things sorted out because a healthy Horseshoe is really good for the general downtown marketplace, and pretty much we'd experience in general.

Thank you and congrats on just a nifty quarter.

Just to give you a little preview, the gaming revenue at Sam's Town Tunica October is running nicely up. So this is a start on it, I don't want to be too predictive in such a short period of time but it is running nicely ahead and so we do hope that that acquisition makes a difference for us.

And I guess those rooms really give you room to leverage a lot of the CAPEX that you really spiffed that properly up with last year

No doubt about it.

It's the opportunity to prove some, when we take some rooms out of service now, upgrade the older rooms we have in Sam's Town Tunica, we won't have a lower room count with the additional of the acquired rooms.

Well I'm glad some people build rooms cheap and give them away. [laugh]

We'll go next to Kent Green at Boston America:

Yeah, good quarter fellas, I'm just a little curious, your revenues were up a little bit from the first quarter but the EBITDA margins were down. Normally would you have a little bit lower margins in the 3rd quarter vs. first quarter.

Ellis Landau; I'm not sure going back over past years. The summertime and it's clearly going to be the case in the summer in Nevada with a slowdown that we'd expect, obviously fixed costs the slower business would give us lower margins but I don't have any statistics for you off the top of my head about sequential margins.

Have you had to market unusually in any one of the jurisdictions because of increased competitive pressures.

No, I think that there's really been nothing unusual. You see the margin improvement over time at the Sam's Town, Las Vegas I think that we've seen less promotional spending there and so that's been a help to us I'm just trying to think of this. There's not any one area we've seen any unusual marketing activities of course we're trying to bring our cost down to Delta Down but newer in the first week got into the situation where we were spending more marketing and we want to lower those but there's no particular area I can single out where there's marketing expenses that are unusual marketing wars going on in 03Q02.

Yeah, Jack said at Delta Downs, when I talked to him, the media buys were terrible and he used to bark, "are you cutting back in meetings over there at Delta Downs. "

Yeah, that's a very expensive market in which to advertise and while we were new we went into that particular form of advertising and promotion but now we've brought that down because we want some more direct marketing for our database.

What other of your properties are going to need additional CAPEX do you think besides possible hotel down at Delta Downs, anything else that you see cause I know you've been through with renovations, both Sam's Towns and a lot of the other properties.

For the most part, our properties are in quite good shape. We keep them up on a regular basis but there's nothing, no place where there's significant deferred maintenance. In terms of enhancements. We've mentioned Delta Down as being one opportunity. Another one is Blue Chip, I mean that property was a large piece of ground, and now that we're dockside we could do quite a bit more. The hotel there is virtually full all the time so there's always a need for rooms or potentially more restaurants and who knows what we may do in terms of improving that property but it is clearly an opportunity to take a real winner and make it bigger, have more of a better thing.

Just a final question: You're one of only 4 publicly traded companies I know of that's already operating and all the speculation about the governments deficits and Racino's head. Are you doing any preliminary work in any other parts of the country to see if you want to operate another Racino.

As you suggest, we are somewhat unique in the sense that we've kind of grown this company in traditional gaming markets, riverboats, we had the relationship with the Chocktaw Indians in Mississippi, and so it had Indian gaming experience as well and now have a Racino so of course we're monitoring developments across the country and there will be opportunities because of the fiscal challenges that many states are facing, but we want to be very cautions if another Delta Downs opportunity developed. Of course we would look at it but we really don't feel under any pressure to have to do something. When you have the Borgata as we do, when you have some of the internal growth opportunities that Ellis has touched on and perhaps even beyond that, when we got some legislative relief in Illinois and expanded a number of gaming positions. There's opportunities there as well. We've reached the point where we have some internal growth opportunities that combined with the Borgata are pretty exciting to us and then with Sea Wind and hopefully the successful completion of his financing from [Areve] that project moves forward but certainly creates energy and excitement at the north end of the strip here in Las Vegas and our Stardust property is certainly well positioned for that so as we have been over the course of the last few years, we are opportunistically following things that happen in the industry and certainly Racino's is something that is very much on everyone's most people's radar screen and we're among them.

Thank you.

And ladies and gentlemen, if there are no further questions at this time, I'd like to turn the conference back over to Mr. Landau for any additional or closing comments.

Thank you, everyone for your interest and we'll be reporting the fourth quarter in February.

thank you. Bye.

Once again, ladies and gentlemen, that does conclude today's conference call. Thank you for your participation. You may now disconnect at the sign.