Boyd Gaming Corp (BYD) 2003 Q1 法說會逐字稿

Good day, and welcome, everyone to the Boyd Gaming First Quarter 2003 Earnings Conference Call. Today’s call is being recorded. With us today from the Company is the President, Mr. Don Snyder and the Executive Vice President and Chief Financial Officer, Mr. Ellis Landau. At this time, I would like to turn the conference over to Mr. Landau. Please go ahead, sir.

Thank you, and good afternoon everyone. Welcome to our first quarter conference call. Joining me today, as you heard, is Don Snyder, the President of our company. Also with us is Keith Smith, our Chief Operating Officer, and Bob Boughner, who is the Chief Executive of Borgata. And they will be available to answer questions when we get to that part of the call.

I want to remind you today that our discussions may involve forward-looking statements. The actual results may vary from what is contained in those statements. The variances may be immaterial, and I refer you to our SEC filings to see the risk factors you need to know before you invest. Additionally, we are broadcasting this call on our website at www.boydgaming.com, and at www.firstcallevents.com.

I would also like to refer you to our press release on another matter. In this call, as in our press release, we will use terms such as EBITDA and adjusted earnings and adjusted EPS. In the release, we described how and why we use EBITDA as a performance measurement, and we present tables that reconcile those non-GAAP measurements to GAAP measurements.

With that said, I'd like to go on with the results. A short while ago, we released our first quarter earnings in a press release, with an 8-K that was furnished to the Securities and Exchange Commission. We reported adjusted earnings per share of 29 cents. The only adjustment that we had there was a pre-opening expense this year. So, it was actually 29 cents before pre-opening expense. That compares with adjusted EPS of 31 cents reported in the first quarter of last year. At that point, the adjustments were pre-opening expenses, and the cumulative effect of a change in accounting for goodwill.

As you know, the first quarter was a difficult operating environment. We operated in a tough economy. We had the effects of the Iraq war on business. We had worse weather this winter than last winter. And we had much higher gaming taxes in two of our major markets. Such increased gaming taxes alone in Indiana and Illinois added $4.7m, or about 4 cents a share to our operating expenses in the first quarter. With all that, our properties still reported first quarter EBITDA that was even with the prior year.

Helping to get us there on the positive side were dockside operations at Blue Chip, which we got in return for the higher gaming tax. Secondly, a full quarter of slot operations at Delta Downs, which we opened in the middle of the first quarter last year. And third, the one boost we got the old-fashioned way by hard work was a blowout performance at Sam's Town, Las Vegas, which had its best quarter ever.

I mentioned that the properties did about the same as last year. To quantify that, let me tell you that EBITDA, before corporate expense, was $77.5m in the quarter, essentially the same as last year, and EBITDA, after corporate expense was 71.9m, up $400,000 over last year. Revenues for the quarter were $322m, up 6.3% from the prior year.

The reason we didn't equal last year on the adjusted EPS line with even EBITDA was that depreciation and interest expense both ran higher this first quarter than last -- about a penny a share each. We pointed out in the release that interest expense was higher because it included $800,000 of negative carry, as we held cash to redeem our called 9.5% notes from the first of the year until January 29, which was the redemption date for that issue. That cost us about a penny and a quarter. Still, the 29 cents tied for the second-best quarter ever, only behind the first quarter of last year.

Let me just take a moment to give you some color about property results. We did pretty well in our Nevada operations. As I mentioned, the standout was Sam's Town, Las Vegas, producing over $10m in EBITDA; that is the first time the property has exceeded that milestone in any quarter. The property's EBITDA margin was just shy of 30%. The downtown Las Vegas properties, it was not the result of the three properties, but instead, the cost of transportation from Hawaii that caused this quarter's EBITDA to fall short from the prior year. The three properties, as a group, actually performed better than last year, but charter costs or air charter costs, including fuel, turned the downtown unit into being down slightly from the prior year. The charters did run essentially full in the quarter.

In our central region, higher taxes and tough weather comparisons caused Par-A-Dice and Blue Chip to trail the prior year. Higher gaming taxes at Par-A-Dice added 1.4m to expenses there; and at Blue Chip, the higher expense from the new taxes was $3.3m. Sam's Town Tunica reported higher revenues with its expanded hotel facility, but higher facilities and payroll costs caused it to have lower EBITDA in this year's first quarter versus last.

Delta Downs had its best quarter since it opened its slot casino. With stronger revenues and more efficiency, the property's EBITDA margin exceeded 20% for the first time, actually hitting 22.4% in the quarter. We are finalizing plans for a hotel and other enhancements at that property. Putting all that together, we are pleased that we delivered such good results, given the difficult operating environment.

Looking forward, I want to point out that last year, our second quarter adjusted EPS was lower than our first quarter's adjusted EPS. That is usually the pattern in our Company. I want to let you know that we expect this year, that pattern will continue, that the second quarter will be below the first quarter. That will be the case again this year -- that is our expectation.

Moving on, I want to let you know that we kind of are proud to say that the big event in our company is drawing closer. Borgata, our joint venture project in Atlantic City, is expected to open in 2-3 months. Don will talk about the property in just a moment. And Bob is here to answer questions about Borgata later in this call. So, I won’t say more than just how pleased we are with this almost finished product.

Regarding development costs, we, at MGM, started up our final equity contributions on a small-scale at this point; and at the same time, we are still borrowing on our construction loan. We, at MGM, will split costs 50/50 up to $1.067b, and we do expect the final cost to come in under that amount.

Let me say one thing about how Borgata results will be presented on our financial statements. Borgata results being coming over from the joint venture onto our Boyd statements on one line, it will actually be presented on two lines. One-half of Borgata's operating income will be shown on our income statement as operating income from another consolidated affiliate. In the other income and expense section of income statement, we will pick up one-half of Borgata's other income and expenses, which will be principally Borgata's interest expense. Borgata's New Jersey state income tax will also appear in that latter category. So, our half of Borgata's results will appear in two places -- one above the operating income line, and the other below the operating income line. I just wanted to clarify this matter for you at this time.

With that, I'd like to turn the microphone over to Don Snyder, President of our Company.

Thank you, Ellis, and good afternoon to all of you. As Ellis has said, we feel very good about these numbers. We feel very good about our company in terms of the performance that we are sharing here with you today, but also we feel good about the basic strategy, which gives us confidence in the future, and it is a basic strategy that we have shared with you over the past several quarters, and continues to serve us well, in terms of focusing on operations, in terms of diversifying the base of business, and getting the most out of those properties. Certainly the improvements that we have seen at Delta Downs and Sam's Town, Las Vegas reinforce that.

And we are especially pleased, as Ellis had said, and as we have focused on in our earnings release today, how the Borgata in the final few months as we prepare for the opening there. As Bill said in our press release, matching last year's first quarter operating performance really is quite an achievement. Even though we had dockside at Blue Chip and a full quarter of slot operations at Delta Downs, we really did achieve very strong numbers in the face of a tough economy, a war, high gaming taxes in two major markets, as Ellis has pointed out, with Indiana and Illinois, and tough winter comparisons.

Two of the Company's operating units that performed particularly well, just reinforcing what Ellis has said and how we feel about the job that our general managers are doing there, is that both Delta Downs and Sam's Town, Las Vegas. Sam's Town, Las Vegas reported its highest EBITDA ever, and a 31% increase over what we reported last year. Those are significant numbers, numbers that we feel very good about; and we're very pleased with the management team there and what they've been able to accomplish.

Delta Downs reported its best quarter since it opened last February, with the property's revenue, its EBITDA and its EBITDA margin, all at record levels. So, we are seeing the type of progress at those two important properties that we were hoping for, and had talked with you about a quarter ago.

In terms of growth, we have several internal growth opportunities that we have shared with you in the past. Dockside at Blue Chip, improving margins and a hotel at Delta Downs is under consideration -- give us the opportunities there to do more with that property. Hopefully more positions in Illinois; a larger boat at Treasure Chest is a possibility; and certainly something that we have discussed over the past several years -- the strategic asset that we have at the Stardust with the 61 acres, and what that provides in terms of future development opportunities. As we get further along in Atlantic City and get the property opened, and as we continue to see progress here at the north end of the strip, we feel increasingly good about the opportunities that focus on the Stardust, and start to develop a clearer picture with regard to what that property can potentially do for us and our shareholders.

Delta Downs, as I said, reported its best quarter since we opened the casino. And, we are looking at what we can do with that property. But as we said before, having more than 200 acres gives us substantial flexibility to do things with that property as we continue to develop the business.

Ellis also suggested that I make a few comments about the Borgata, and I will. We're also pleased, as we did last quarter, to have Bob Boughner be here to share with you his perspective and answer any questions that you have. The Borgata is extremely important in the context of our Company. We are extremely excited about it. The course of construction has proceeded, as we have said in the past quarters, extremely well. And we feel, as we now approach the opening of that property this summer, that it continues to please us in terms of both how the course of construction is going, but also how the property looks and how it will be received in that marketplace.

We have also, as you saw in our press release, narrowed the window -- the opening window -- for the Borgata. We have said in the past that we would open during the summer of 2003. We will, but, as you saw in the press release or as you will see in the press release, we have now narrowed that between June 21st -- the first day of summer -- and then the last week in July. So, as we move forward, stay tuned, and we will share with you a bit more perspective as to kind of where we are. But we, at the end of the day, feel extremely good about the course of construction. And it is certainly doing, at this point, what we had expected in terms of progress.

In terms of hiring -- that is a major part of our focus. The job that Bob Boughner and his people are doing in terms of assembling a first-class team is well underway. It is, to date, what has all the appearance of being an all-star team. It is exciting having a property that creates as much enthusiasm as the Borgata does. And if you look at the quality of the team that Bob is putting together, I think you'll share the excitement that we have, in terms of what we are able to attract to that property.

We have approximately 40,000 people that have actually filed applications for employment at the Borgata. There is another 10,000 or so that have expressed some form of interest without filing an application. So, there is obviously a tremendous amount of interest in that property. And, we feel good about that. We have, to date, interviewed nearly 20,000 applicants. That is a significant number. We are encouraged by that. And it probably adds to the work we have to sort through it. But it really gives us an opportunity to continue to assemble what will be an all-star team of managers and employees at that property.

So, in summary, we feel that we have produced extremely good operating results under difficult circumstances, especially. But we also feel that our positioning is good. It is a well-diversified portfolio of properties that we have built over the past several years. We have strong management teams in place, and they are focused on the things they need to be focused on in terms of running those properties, Wwe feel very good about it.

Our balance sheet is strong. It has been strengthened by a lot of the work that Ellis has done over the past several months. And, we feel very good about how the data structured and what the maturity profiles look like and what the cost of that debt is.

The growth prospects are real. And, in the case of The Borgata, are imminent. We feel very good about, obviously, that in the short-term; but we also feel good about what that says for the long-term growth opportunities for this Company. At the end of the day, I think it is safe to say that the enthusiasm that you perhaps sensed from both of us is considerable, and we would, at this point, entertain any questions that you may have.

Thank you sir. Today’s question-and-answer session will be conducted electronically. At this time, if you like to ask any question, please press the”*” key followed by the digit “1” on your touchtone telephone. If you are using a speakerphone for today’s conference, please make sure your mute function is turned off in order for your signal to reach our equipment. Once again if your like to ask a question at this time, please press “*” “1.” We will pause for just a moment to give everyone a chance to signal. We will go first to Joe Greff with Fulcrum Financial Services.

Good afternoon, gentlemen. Can you just talk about, I guess, your marketing approach to the opening of The Borgata? I know you don't want to give a specific date. How much lead time do you think you really need in order to effectively promote it? And, along those lines, would you rule out a soft opening or a staggered opening and as much as you can tell us about that?

Joe, with regard to marketing strategies, we do not publicly discuss any of our strategies as it relates to marketing. That is a position we have taken, and we are going to stay with that.

That is Bob Boughner speaking by the way.

There is a limited amount of information, I guess, that we would be inclined to give. With regard to -- there is some of the facts I can share with you. One is we will be opening our call center on or about June 1st, to begin to accept reservations for a date that has yet to be determined. It will be determined by June 1st, what date we will begin excepting reservations. And, as we a previously stated, we have previously begun booking conventions and meetings at the property, starting with September 1st, 2003, as a date. But, beyond that, we don't intend to get into any discussions with regard to our marketing programs and our marketing strategies.

How many employees are you up to that you have hired?

We have received applications from 47,000 individuals. We have done the first interviews on roughly 20,000 of those 47,000. We have done second interviews on roughly 10,000 individuals. And, we are over 40% complete with respect to the size of the staff that we intend to hire.

Okay.

About 40% of the individuals are not on the payroll today, but 40% of the individuals have made a commitment to Borgata.

Got you. Okay, and then we are happy to see -- a different matter -- on Delta Downs, we were happy to see that the margin is above 20%. Can you just talk about the drivers there? And then maybe also, broadly speaking, just the timing of when you would look to maybe do something from a hotel tower perspective?

Hi Joe, this is Keith Smith. At Delta Downs, it is really part of the plan, as we opened the property and began to understand the markets in early last year -- and we were new to the market and we didn't know what would work and what would not work. So as we come to this point in our life, we have been open for just about a year -- a little over a year at this point -- we expected the margins to improve. It has been better revenue growth; it has cost us a little less to get the business, as we understand the market better, to better spend those marketing dollars; our database has grown; we are able to better use that database, and better able to identify the customers and target those customers.

With respect to the hotel, as Ellis said, we are finalizing the plans now. They are not drawn. The project is not bid out. We are finalizing exactly what it is we want to do and how many rooms. We are finishing up our market research. So, you know, we are not planning to put a shovel in the ground by tomorrow by any means. But we are getting close.

Okay, great. Thank you, guys.

Thank you.

We will take our next question from Larry Klatzkin with Jefferies & Company.

Hi guys, good quarter.

Thanks Larry.

A couple of questions. One, share buybacks, I saw you bought a little bit of shares this quarter. Any intention going forward? What is your plan?

Authorization is for 2m shares and as you saw, we bought back just under 1m shares in the quarter. So, we are less than halfway into the authorization. We don't have any specific announcement to make about timing. The program remains in place.

Okay. The Stardust -- I mean the Sam's Town, Las Vegas was up significantly. Can you talk about some of the drivers of what drove that to do so well? Can you give me any specifics?

Larry, this is Keith again. Sam's Town has been on a trend for probably the last 18 months or so in terms of increasing EBITDAs, and increasing margins. So it is a continuation of a trend. I think in the early days, we achieved a lot of that through cost savings; it has been gratifying in the last quarter to see that we have achieved some nice revenue growths at that property. We are seeing some old customers come back to enjoy our brand of entertainment, from some of our competition. And we are just doing a better job at targeting our customers and marketing to those customers. I think we are doing a better job of delivering a good quality product and good quality service.

Okay. I have a question for Bob. Bob, I keep on getting different answers. Are you opening 100% cashless? Are you going to be -- have what Park Place is doing with an option of coin or cash for lesser amounts?

What our plan is, Larry is to...

I know you have the commission approval.

Yeah, it is pursuant to approvals by the Casino Control Commission, it is our intention to open the floor with 100% ticket-in ticket-out capability, and beyond that to also have tokenization capability at all of our machines, as well.

Okay. So you don't know whether you are going to have actual money in the hoppers or not -- you have not decided yet?

It is our plan to have tokens in the hoppers.

Okay, okay.

Larry, you mentioned you keep getting different answers. I hope that is not from...

No, no, it is a lot of your competitions are answering for you.

Okay.

The answer from the source versus the competition.

You came to the right place.

Illinois -- that wonderful tax increase. What is your guy's opinion on it?

Obviously, the tax increase is significant. It concerns us; and probably the thing that concerns us the most is it just doesn't reflect a solid understanding of our business. It is not a done deal at this point, as you know. And hopefully there will be some rational conversation that takes place before anything is done. But, I think, as you and the others on the phone know, there is a relationship between tax rates and a predictability of tax rates, and the level of investment that you can get out of any industry, let alone the gaming industry. And that type of talk is just not consistent with good solid investment.

Okay. Okay. And I guess the last question I have is just, if Pinnacle does get -- or when gets its wonderful facility open in Lake Charles, I know you -- at the entrance, you really should not be that affected by it. But what do you see is the effect of that facility?

We like anything that puts a lot of cars on the highway. And being the first stop into Louisiana is something we continue to feel very good about.

Okay, thanks guys. Good quarter.

Thank you.

We will go next to Harry Curtis with J.P. Morgan.

Hi Guys, can you give us a sense of what the pre-opening budget for marketing is for Borgata?

No, we really are not going to disclose what our pre-opening budget is for marketing. What we will tell you is that the efforts will be very substantial, commensurate with the level of investment and commensurate with the level of importance that that project holds in the marketplace.

Okay, fair enough. And what will be the variables to consider in that one month gap between June 21st and the last week in July?

The variables are some issues which are in our control, and other issues which are really outside of our control. Facilities of this nature require a substantial number of approvals and receipt of permits and such. And there is a wide variety of various municipal and state agencies that are involved in that.

So, from our standpoint, there are other issues which we control, which is the level of readiness of the staff, the level of readiness of the vast amount of technology, and completion of the last amount of construction, principally related to finishes and the arrival of all of the operating supplies and equipment. And those are the types of issues that we face, both from our own responsibility and also where others really control our destiny.

The last question, going back to the equipment side. There has been some question as to whether you have -- you're going to be using a one wire or two wire system for your slots, and the timing of a New Jersey state approval. Can you give us a little more color on what that issue is all about, and what the approval process is?

Yes, the system that we have chosen is the ACSC system, which using the nomenclature you called is a one-wire system. It is a system that we believe that, long run, will be the preferred system amongst most regulatory agencies. It has not yet been approved in the state of New Jersey. However, every indication that we have so far leads us to believe that, once certain criteria are met and the appropriate agencies have had ample opportunity to review that work, that the system will be approved in time for a timely opening of Borgata.

Okay, very good. Thank you.

We will take our next question from Michael Rietbrock with Smith Barney.

Hi, it is Jeff Davis, guys. Could you give us your outlook on the tax situation in New Jersey?

Our view with regard to the tax situation is as follows. The issues that Governor McGreevey has raised are very real issues in the state of New Jersey. As in many other states, there are real issues that need to be solved with regard to the general fund. However, we disagree with the Governor's approach towards solving that issue with respect to the gaming industry. We do not believe that the current proposal that was outlined in the Governor's budget proposal will ultimately be adopted in New Jersey. We believe that there are very good faith efforts on both sides of the issues between the Casino Association of New Jersey, and representatives of the Governor's office, and then also, representatives of the state Legislature, that some modest compromise will ultimately be reached.

Got it. Thank you.

Thank you.

We will go next to Joe Garner with Emerald Asset Management.

Good afternoon. A couple of questions for you. First, on Delta Downs. What impact, if any, did the highway construction have this quarter? Is that behind you at this point or how do you see that?

The highway construction had less of an impact this quarter than in prior quarters. The part in Louisiana, is, for the most part, behind us. They are still doing construction on the Texas side. It looks like that will be going on for quite a number of months still. It is difficult to quantify that, but it certainly did have some impact.

Given that this is the first quarter in last three where you didn't have some kind of unusual circumstance -- hurricane, or whatever, are you finding that this average daily win levels -- do you think you're settling into this as sort of a, you know, go forward type of level? Or how do you look at the 264 you had in the quarter?

We are certainly very pleased with the results we achieved in the first quarter. We are still trying to understand the seasonality in the marketplace. So, determining that 264 is kind of a normal level for that property, I am not sure we are comfortable saying that yet. We are happy with the results. But as you said, we didn't have any unusual activities, and we still look for good things to happen there.

Anything that would have, on the unusual positive side that would have boosted that number up in the first quarter?

No, it actually was a fairly standard quarter for us. The months were pretty consistent. Once again, we've done a better job of understanding our market now that we have got a year under our belt and who our customer is and what it takes to attract them; how the competition reacts to what we do; and we just, once again, have an overall better operation a year after opening.

Okay.

The number reported by Louisiana for the quarter was 256, not 264. I just wanted to clarify that for the purposes of the record.

Okay. On the Sam's Town side, I just wonder if you comment a little more on those -- anything that would have been unusual there? Is there any reason to think that the, you know, anything would have boosted the first quarter up that may cause it to go back down later in the year?

As both Ellis and Don said, we are extremely proud of the numbers we have produced at Sam's Town. We are seeing the return of a lot of customers. And, once again, as I stated earlier, during the early part of this 18 or 20-month run, we did a good job of refining our expense levels and controlling our expenses. We didn't necessarily grow revenues in the past. This quarter, we grew revenues nicely, and were able to bring the majority of those revenues to the bottom line, which obviously helps out the margins to a great degree. So nothing unusual that pumped that up at all.

Okay. Is there any way that you can quantify the weather impact on Blue Chip and Par-A-Dice in the quarter?

Not really. The only thing I could say is if you looked at the monthly results for Blue Chip in January and February where we had some pretty significant weather, and you look at March, where the weather was fairly normal, you will see that the numbers released by Indiana in March just came out, and Blue Chip was up 21%. January and February, Blue Chip was flat. You have to draw your own conclusions from there, but there was fairly significant impacts due to that weather, year-over-year.

Okay. And just one final question. The promotional allowances line item on the income statement was up significantly, year-over-year. Anything -- can you talk about what may have driven that, and what you might expect to see, going forward?

Not necessarily. We have a full quarter of Delta Downs this year as opposed to last year, where we had only half a quarter of that. That would have driven that number up to the extent that Delta Downs had, you know, twice as many promotional expenses due to the fact we have 13 weeks instead of six and half weeks. Outside of that, I do not believe there was anything unusual in the promotional expense category.

Okay.

Tunica [inaudible] this new hotel property probably had higher promotional expenses than it did in the prior year. It is across the board. But, I think those two would probably cover it the best.

Okay. Great, thank you very much.

As a reminder, ladies and gentlemen, if you would like to ask a question, please press “*” “1” on your touchtone telephone. We will go next to Kent Green with Boston American Asset Management.

[inaudible] in the hospital for a test.

Mr. Green your line is open. Please go ahead with your question sir.

Running over to get some [inaudible]

We will go next to Jeff Logsdon with Gerard Klauer.

Thank you. Could you comment on the issues around Blue Chip with the Pokagon Band, what the court may be doing, what are the next events with the courts? And, is there an element here where there might be an EPA issue on the site that has been selected, or at least hope to be put in federal trust?

Jeff, there is no real changes on what has been most recently stated. The matter is still back with the tribe. As you know, the federal judge asked the tribe to -- required the tribe to improve their Environmental Impact Study before it could be acceptable. They felt that the one that was delivered did not meet the standards of federal law. And it is back with them to rework it and resubmit it. We don't really have any...

With regard to the issue of -- we are aware of any EPA problems at the site, we don't have any information one way or the other. I think that is probably the purpose of having that detailed study done. We don't know why they have not done it at this point in time.

And then secondly, any comment on litigation over Delta Downs?

No. The last thing we stated in our filing, in the 10-K, is the -- how the lawsuit was stated there; and there has been no change in that particular matter.

Thanks.

We will take our next question from Mike Warner with Kennedy Capital.

Hi. It’s good quarter for you guys. I wanted to touch on something that I may have missed earlier when you were discussing the marketing approach. Can you reiterate again how the spending, not the dollar amount that you are spending, but for The Borgata, how that is going to be flowing through to either you or MGM?

Are you talking about the way we discussed accounting -- the way it will be presented in our financial statements? Or specifically about Borgata marketing expenses at the question that was related more of the properties opening?

More to the latter point.

Yeah, just to be clear, any expenditures until we open will be classified as pre-opening expenses.

Okay.

Our marketing, personnel training, all of those. And they are, as you know, each quarter, we take half of that and Jim takes half of that onto our own income statements. And so, those expenditures that have occurred through opening will be treated that way. And then once revenue is generated, the marketing expenses, of course, will be charged against income and reported in the income statement of Borgata, which I mentioned will be picked up half by us and half by MGM as operating income, on our own financial statements.

So, basically, you are incurring those costs as they come about; and you will actually be charged for them as the revenues come in?

That is right. The marketing costs that occur before we open will be charged to our pre-opening expenses. They are charged off as you see on each or our quarterly statements. And then those marketing expenses and other expenses that are incurred after revenue is generated will be just part of the normal operating expense.

Understand. Thank you very much.

Next we will take a follow-up question from Joe Greff with Fulcrum Financial Services.

My follow-up question relates to Las Vegas. So far, in the second quarter, can you just talk about just general demand trends and volumes that you are seeing at your Las Vegas casinos, particularly with respect to Sam's Town?

Joe, we typically don't get into intra-quarter trends. It is something we have stayed away from; and I think we're going to continue with that practice. So, we really don't have any comment. The quarter, of course, is young. It's only two weeks old. We don't get into discussing current trends. I think that is the policy we will stay with.

Okay. Thank you.

This concludes today's question-and-answer session. At this time, I'd like to turn the conference back over to Mr. Landau for any additional or closing comments.

Okay. I just want to thank each of you for listening to our conference call. And we look forward to talking with you again at the second quarter results. Thank you.