Concord Medical Services Holdings Ltd (CCM) 2011 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to the Concord Medical Services Holdings Q4 and full-year 2011 earnings conference call. At this time all participants are in a listen-only mode. There will be a presentation followed by a question and answer session. (Operator Instructions). I must advise you that this conference is being recorded today, Thursday March 22, 2012.

I would now like to hand the conference over to your host Mr. Tony Tian. Thank you. Sir, please go ahead.

Hello, everyone, and welcome to Concord Medical's fourth quarter and full year 2011 earnings conference call. Concord Medical's earnings release was distributed earlier today and you can find a copy on our website as well as on newswire services.

Today you will hear from Dr. Jianyu Yang, Concord Medical's Chairman and Chief Executive officer and Mr. Adam Sun, Chief Financial Officer. After their prepared remarks, Dr. Yang and Mr. Sun will be available to answer your questions.

Before we continue please note that the discussion today will contain forward-looking statements made under the Safe Harbor provisions of the United States Private Securities Litigation Reform Act of 1995 and within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include but are not limited to those outlined in our public filings with the SEC. Concord Medical does not undertake any obligation to update any forward-looking statements, except as required under applicable law.

Both our earnings release and remarks made during this call include discussions of certain unaudited non-GAAP financial measures. Our earnings release contains a reconciliation of the unaudited non-GAAP measures to the most directly comparable unaudited GAAP measures.

As a reminder this conference is being recorded. In addition, a webcast of this conference call will also be available on Concord Medical's website.

I will now turn the call over to Concord Medical's Chairman and CEO, Dr. Jianyu Yang.

(Interpreted). First of all, I would like to welcome everyone to our 2011 fourth quarter and full year results conference call.

We are very pleased to announce the signing of definitive purchase agreement to acquire 52% of the equity interest of Chang'an Hospital established in 2002. Chang'an Hospital is one of the largest privately owned hospitals in China and it is a general hospital with a strong focus in cancer treatment. After the closing of the acquisition, CCM will become one of the few US-listed Chinese companies that owns a private for-profit general hospital in China. This is a strategic acquisition that will enable CCM to enter into the hospital management sector. We will accumulate experience and talent and be ready for the other specialty oncology hospitals in various planning stages. During 2012 we are targeting to complete the licensing of at least another specialty oncology hospital in China.

During 2011 the business of our cancer treatment and diagnostic imaging centers has witnessed steady growth. Revenue increased by 16% to CNY450m. 13 centers were added during the year to 131 centers nationwide. CCM is the largest operator of radiotherapy and diagnostic centers in China in terms of the size of our network.

Also we're pleased to see positive government policy changes recently, including the moving of healthcare services from restricted to allowed category last December. As domestic consumption becomes a more important driver for China's economy, all healthcare-related industries, especially services, represent [epoch] investment opportunity in 2012 and beyond.

2011 is the year of transformation for CCM. During the year we have thoroughly reviewed our business strategy, identified growth opportunities and adjusted our investment philosophy to reflect the new market conditions. We have identified many areas in our operation that need improvement, such as cost control, some new centers falling short of projection, lack of qualified management and medical staff for centers, etc. All these factors combined contributed to our slower than expected revenue growth and lower profitability in 2011. As we have identified the issues, we will take measures to improve our performance in 2012.

We will focus more upon investment return and operational efficiency of our centers, so the new centers opened during the past two years will contribute more towards our bottom line. Also we have initiated a series of cost control measures and incorporated cost control as important KPI for our regional and central management. All these measures will contribute to improve our profitability in 2012.

Looking forward to 2012 we will achieve the following strategic goals. Improve the overall management level of center network. Enhance the efficiency and the return of investment capital. Install ROIC as a Company-wide key performance metric. Emphasize service and technology in the daily operation of centers. Promote the healthy and strong top and bottom line growth of Chang'an Hospital. Achieve positive free cash flow from the current network business line. Cautiously view future acquisition opportunities.

2012 will be a year of milestone in CCM's 15-year history. We will close the acquisition of Chang'an Hospital and well as strive to complete the necessary licensing of at least another specialty hospital. Our goal is to establish CCM as the leader in China's hospital management industry and oncology-related services.

Thanks for your continued support and advice. I will now turn the call over to Adam Sun, our CFO, who will walk you through our financials.

Thank you, Dr. Yang, and hello, everyone, and thank you for joining us today. I would like today to spend a few minutes to discuss the goodwill impairment and the other charges we took during the fourth quarter which are the main reasons why we incurred a net loss for the quarter and the full year 2011.

A substantial portion of goodwill on the Company's balance sheet relates to the acquisition by the Company's predecessor before the Company's IPO in December 2009. Based on the testing and valuation result, also considering the low stock price at December 31, 2011, the Company concluded that the carrying amount of goodwill was higher than their current fair value and consequently recorded a goodwill impairment charge of CNY300.2m or $47.7m during the fourth quarter of 2011.

The Company has also conducted a thorough review of its business in the fourth quarter and evaluated all long-aged accounts receivable, deposits and other assets about the collectability, age and nature of the assets. Based on the internal review and evaluation, on the same conservative principle, the management decided to incur a one-time provision for accounts receivable and other impairment charges for long-term equipment deposits. The total provision and charge is CNY49m which includes CNY15m in accounts receivable provision and CNY34m in supplier deposits.

The accounts receivable provision is CNY15m which is about 3.3% of the total net revenue in 2011. It relates to two accounts which were acquired projects and we are seeing uncertainties in collection. The two projects have been converted to cash-based centers and we will not see any accounts receivable issues for them in 2012.

The provision for supplier deposits are related to gamma knife and other equipment. Because of the delay of licensing for gamma knife we were not able to install the equipment on time. Some of the related equipment are expected to install in the near future.

This is the first time since IPO that the Company incurs large amounts of provisions and charges. The management expects to recover most of the amount in the future. The provisions and charges will reverse when the balance is recovered and the equipment are installed. The Company will recognize non-operating gain accordingly.

The goodwill impairment and the other one-time charges have no cash flow impact and do not affect the Company's liquidity position or borrowing capacity and its current credit facilities. After the charge, the Company carries no goodwill on its balance sheet. A clean and healthy balance sheet, free of future uncertainties, of impairment charges, will provide great visibility to the market and our investors. It is also helpful for the management to plan and forecast the Company's financial performance with greater level of confidence.

All the relevant government approval relating to the Chang'an acquisition is ongoing at the moment. We expect the deal to close before June 30 and to consolidate the financial results of Chang'an Hospital beginning of the third quarter of 2012. The transaction will be accretive in Q3.

I will discuss more in detail on the 2012 guidance later in the call.

Now let's look at some key financial results for the fourth quarter and the full year of 2011. Since everyone has seen the filed 6K by the Company with full financials, I will just go through some key highlights and then open to questions. Total net revenue was CNY114m in the fourth quarter and CNY450m for the full year. Due to the ongoing Chang'an Hospital acquisition, we decided not to record the management service fee and some other Chang'an related revenue during the fourth quarter. Also the center performance in the fourth quarter was not as strong as we expected.

These two factors combined to contribute to the total net revenue fell short of the management estimate for 2011. We are taking measures to correct some of the operational issues we identified recently. In 2012 we expect to see a healthy growth of 15% from the current center business.

Gross margin was 60.8% for the fourth quarter and 64.6% for the full year compared with 68.5% in 2010. The lower margin was primarily due to higher consumable price, promotional expenses at the center level and higher disposable supply expenses. The fourth quarter gross margin was lower also due to seasonality effects and revenue mix as well. We expect the full year gross margin to normalize to the average, historical level in 2012.

Selling expenses were 8.3% of revenue in 2011 compared to 4.4% in 2010. The increase was primarily due to increases in headcount and marketing and other expenses to support increased business development efforts. Without the one-time charges, G&A expenses were 14% of revenue compared to 17% of revenue in 2010. In 2012 we are going to implement strict cost control measures to achieve better operational cost efficiency.

Adjusted EBITDA, which is a non-GAAP measure, was CNY318m in full year 2011 compared to CNY298m in 2010. Since the Company took significant one-time non-cash provision charges in 2011, we recommend that our investors pay attention to the non-GAAP financial performance of the Company in 2011.

Net loss for full year 2011 was CNY211m, primarily due to goodwill and other impairment charges and other provisions we have discussed earlier. The non-GAAP net income, which excludes the one-time charges, in full year 2011 was CNY147m compared to CNY143m in 2010. Both basic and diluted non-GAAP earnings per ADS was CNY3.03.

The Company had sufficient cash resource by the end of 2011. Total credit capacity was CNY565m at year end. The Company will use cash on hand plus bank credit if the terms are favorable to finance the ongoing acquisition of Chang'an Hospital and other projects.

Today we have also issued our fiscal year 2012 guidance. We're projecting to see 15% to 18% growth of network business and 30%, 40% growth on consolidated basis with Chang'an Hospital.

The total CapEx is projected at CNY250m to CNY275m which does not include the equity investment in Chang'an as well as the possible CapEx for specialty hospitals during 2012.

We project to achieve positive free cash flow with our network business line in 2012.

With that I will now open the call for questions. Operator?

Thank you. We will now begin the question and answer session. (Operator Instructions). Your first question comes from the line of Bin Li from Morgan Stanley. Please go ahead.

Hi. This is Christopher Lui on behalf of Bin. I have three questions. Number one, on the goodwill impairment, the CNY300m, can you tell us more what it is? I know it's before IPO, but if you can give us more details that will be great. What it is, the entity and the function.

And question two will be on part of the CNY15m on the two centers. Can you tell us more how you valued the CNY15m? Why were they discontinued and when is it going to happen?

Third question is on the bad debt -- sorry, my third question is on the other provisions. Can you tell us what it is and why CNY35m? You mentioned we might recover some of them and can you give us a timeline? Thank you.

Sure. Thank you, Chris. For the three questions I will try to answer the first two and I will leave the third question to Mr. Yang.

And for the goodwill impairment part, as I mentioned before, it's mostly related to acquisitions before the IPO. In fact, if you [find out the F1] we issued on the IPO, the total amount of goodwill at that time was CNY300.2m already. So basically we inherited this goodwill from at that time. And the acquisitions we did in which in this goodwill arose are basically the acquisitions that were completed before the Company become a public company. And also, as you remember, before the IPO there is acquisition of another company in Shanghai which the two companies combined to become the Concord Medical Services as we see here today.

So the basically we are seeing a historical issue. And the reason that we took this charge this high is because on the one hand it is required by the US GAAP as well as the SEC regulation that the Company evaluates and tests the impairment, the potential impairment of goodwill at least on the annual basis. And the major indicator for the judgment of whether the goodwill is impaired or not or whether the Company is required to take the charge or not, there is a strong indicator which is the fair value of the Company which is basically [respect-wise] compared to the net book value. And based on our annual test and also that recommended -- approved by the management, we decided to take this charge on Q4 of 2011.

And we believe that by take away the goodwill, the substantial amount of goodwill on the balance sheet, we are able to provide our investor and the market a healthy and clean balance sheet which provides a better visibility and also helps the management to plan and forecast its financial performance in the future. Hope the answer is clear. And -- go ahead.

Sorry. One more thought. So what did that Shanghai company do?

I'm sorry. Say it again?

The Shanghai company that carries the goodwill, what --

I will let Dr. Yang to give you a little bit more background about the acquisition. Basically, before the IPO, there is this major combination of two companies. And let me turn that over to Dr. Yang to give you a little bit more background about the acquisition, and which is, by the way, public information also. Hold on a minute.

(Interpreted). So there are two aspects on this. The first one is that before IPO in 2009 we had two rounds of private equity financing. And the second aspect was in 2008 we -- the predecessor of this Company acquired Shanghai Medstar which was used to be listed in UK. Actually these two acquisitions in our history, they had a very positive influence to the Company. And they enhanced our performance, also helped us to improve our management team.

Let's hope that answered this question and may I move on to the second one.

Thank you.

I'm sorry, Chris. Let me answer the second part of the question, okay.

Yes.

For the second part of the question is about the accounts receivable provision we took in the Q4 of 2011. It relates to two centers that are acquired centers. And then we are having some operational issues with the acquired party. So during 2011 we evaluated the collectability of accounts receivable from these two centers and we decided to take the conservative approach and take a full accounts receivable provision at this moment. And, on the one hand, we have converted these two centers to cash-based already so -- which means that we will have no accounts receivable impact in the future. On the other hand we are working very closely with the other party as well as the hospitals to solve the issue and achieve collection as early as possible.

To put everything into perspective as I mentioned before, the CNY15m accounts receivable only accounted for about 3.3% of our total net revenue in 2011. And overall, our collection efforts on the center level is strong and healthy.

And if you look at our accounts receivable situation at the year end, although the total DSO is a little bit high, the reason -- the main reason for that is we have -- it relates to the Chang'an Hospital related accounts receivables. If you back them off, which will be offset after the closing of the acquisition, the average days sales outstanding or DSO of the network business is about 120 days, which we maintain -- we strive to maintain at this level during 2012.

And now for the third part of your question about the provision of equipment deposit, I would also like to turn the call to Mr. Yang who is going to give you more background about the issue.

(Interpreted). So the CNY34m actually is not exactly the equipment deposit. I'd rather call it the equipment down payment for the gamma knives.

So we had previous equipments with several suppliers and to -- for the down payment for certain gamma knife equipment. And as you know the production cycle for gamma can be long and also recently there's been tight control on the radioactive material for the gamma knives. So we paid way in advance and later on there is some delay for the licensing of the gamma knives from the hospital and that's why this happened.

So actually we have been in close contact with these hospitals who are waiting for the gamma knives licenses. And we believe -- we are confident that eventually these hospitals will achieve, will obtain the license for the gamma knives. So eventually it will happen.

I see. Can you confirm for the two centers that -- are we still working with them or we have discontinued (multiple speakers).

Yes, we are still working with these two centers. It's just there are some, I would say a [glitch] in the collection efforts and the centers are operating normally. It's just we have some uncertainties in the timely collection. In fact the age of these receivables is not that long and we decided to take the provisions based on our own judgment instead of recommended by our auditor.

I see, thank you. Crystal clear, thank you very much.

Thank you. (Operator Instructions). Your next question comes from the line of Sean Wu from JP Morgan. Please go ahead.

(Spoken in Chinese). Thank you for taking my question.

Hi, Sean.

So I have a couple of very quick questions. I know your cost of revenue actually went up quite a bit, much more than your total revenue. The reason you give actually is a little confusing to me. You're talking about the increased spending on medical consumable. Aren't all those things being recorded by the centers and you take like a share of the profit? So why would you incur cost of medical consumable and other stuff from your side?

Okay. And, Sean, do you have another part of your question?

Another question I was like looking at the hospital operations. You said that you are going to generate about CNY190m to CNY210m. I recall Mr. Sun, the former CFO -- congratulations Mr. Sun on your new appointment, he said for that hospital to achieve profitability they need to generate about CNY300m like revenue. So clearly now the hospital has achieved that kind of revenue. So what kind of profitability do we expect for this year? And do you think the profitability can improve from next year on and what do you expect as the peak sales for this hospital at the current 1,000 bed capacity?

Okay. And Sean, let me answer your questions and then I will ask Mr. Yang to add on it.

On your first question about the cost of revenue you are correct that in our business models we have two kinds of economics with the hospital partners. One part is the profit sharing; the other part is revenue sharing. So obviously if it is revenue sharing model, why did we take their operation expenses such as consumables, those disposable supplies are going to be taken by Concord Medical, so that is going to come up in our cost of goods sold as well.

You know even for the profit sharing model, there are some cases where there's a cap for the percentage of costs that will be shared by the hospital. So those that goes above the cost or those that are not approved by the hospital partners will go into our cost of goods sold as well. So that is part of the reason why we're seeing this comes up in our cost structure.

And also to give you a little bit of explanation about why we're seeing a low gross margin in Q4, first of all, revenue mix explains part of it, because as I explained before in the fourth quarter because of the pending Chang'an acquisition we decided not to record management service and other related revenues related to Chang'an, so because after the acquisition the interparty transaction between Chang'an and CCM will be offsetting on a consolidated basis.

So the total Chang'an related revenue in 2011 for the first three quarters was about CNY60m, which translates into about CNY20m per quarter. So we are short by this CNY20m revenue in the fourth quarter as you can understand.

And on a pro forma basis, if we add the CNY20m back to the top line assuming that the Q4, the performance and everything is comparable to the first three quarters, you will see that we'll be close to our, first our management guidance and we'll only about 2% short of the guidance we issued before.

So this revenue mix, that also explains why the gross margin was lower because the management fee and the other service related revenue have higher margin than the lease and management service revenue. So if you include the Q4 Chang'an revenue into our income statement it will have increased the gross margin by about 4%.

So the fourth quarter, if we look quarter over quarter during the whole year, the fourth quarter has the lowest gross margin of around 60% and looking forward to 2012 we expect gross margin to return to the historical level of around 65%.

And to answer your second question, you are right, every hospital has a breakeven revenue and for Chang'an Hospital that revenue is between CNY250m to CNY300m. And we're very glad to announce that it has reached that revenue threshold in 2011. The hospital has expanded its total areas open to patients and we have seen very strong growth of the hospital both in in-patient and outpatient services during the year 2011. The revenue growth from 2011 to 2010 is about 60%.

And recently the hospital just opened the second phase of its operation and has added the total number of beds to around 1,000 as you mentioned before.

So the drivers for the continuous revenue growth for the hospital is on the one hand to achieve high utilization or full utilization of its patient beds, which we have seen very encouraging ratio for the first two months of the year. And secondly, to improve the yield on a per patient basis, which includes the service charge for the average fee for each patient as well as to manage the length of hospital stay for each patient which we are achieving, which we are working very hardly with the hospital management team currently to achieve it.

And another potential area for growth is relatively low outpatient contribution, so far we have witnessed and that will be improved by basically enhanced reputation in the local market and introduce better equipment and better doctors into the hospital so that -- because the hospital has a very strong location. The area the hospital is located is the high tech region in Xi'an as you know which is one of the most -- is a very important city in northwestern part of China.

So all this will -- so based on these assumptions and also that by the encouraging signs we have witnessed in the past two years when CCM has started to work together with Chang'an Hospital so we are very confident that we're going to see strong revenue growth, both revenue and top and bottom line growth from here on.

So as for the -- so basically based on the current projection and the current condition of the assets of the hospital, we do not project any major CapEx expenditure, capital expenditure in the next two to three years.

So that is my part of the answer and I will turn the call over to Dr. Yang who is going to give more explanation or more about his plan about the hospital.

(Interpreted). So there are two aspects about the Chang'an Hospital's growth and the first aspect is about the overall revenue. And as you know the number of patient beds increased, so the patient cases, the number of visits also increased. So that will contribute to the growth of the revenue and also the growth of the profit.

So the second aspect is about the structure of the revenue and we are targeting to build Chang'an Hospital into a general hospital but with a strong focus in cancer treatment and diagnostics. And as you know Concord Medical has over 15 years history in cancer treatment and diagnostics. So we want to expand our strength and advantage on this Chang'an as the new platform to further increase the profitability of Chang'an Hospital.

So we aim to build Chang'an Hospital into a high end general hospital with a strong focus, again with a strong focus in cancer treatment and a hospital that's [facing] mainly the northwestern region of China. And we welcome everybody to come to visit Chang'an Hospital in the near future.

Sean, let me add on it, to talk a little bit about the profitability margin expansion of the hospital. As you know, the hospital business requires a relatively long ramp-up period, so as you know Chang'an Hospital was established in 1998 and first opened in 2002. So basically it has a ten-year operational experience, history. So it is entering this stage in its growth that will have a high growth momentum here on.

During the acquisition process we have done very thorough analysis of its financials which are available to us because we have this management team installed as well as our cooperation on the CCICC, the specialty oncology hospital.

So by our projection, so the net profit margin for the hospital will be around 10% and up, which is based on the full after-tax basis. Because it is for-profit private hospital so it is -- it doesn't have to pay any business tax. So it don't need to pay that 5.5%, but it has to pay corporate income taxes as a average company.

So to analyze its potential tax rate, we did not take into consideration that it has accumulated some operational loss during the past few years. So whether we can take advantage of that accumulated tax loss so that to offset some of the potential tax burdens in the future we still have to have communication with the local tax authority. So when we do our projection and our analysis we take the full conservative approach and assume that it pays the full 25% corporate income tax level.

And then the after tax profit margin will be around 10%. And we're going to see some profit margin expansion as well because its sales and G&A expenses or the management expense is relatively stable and also very low compared to the level you might see in other hospitals in big cities. So that is the basis for -- so we're going to see strong top line growth, some in-line expansion of its sales and the G&A expenses and then the potential advantage, potential tax advantage out of that accumulated net income loss in the past two years, past few years.

So I hope that gives you a better idea about how we view the potential profit impact of Chang'an Hospital on a consolidated basis.

Thank you very much, Sun-zong, Yang-zong. Very, very happy. I have like one follow-up question in this sense. You budgeted for CapEx of CNY250m, CNY275m. And yesterday you may incur additional CapEx for the hospital. So this compared to last year CNY334m of expenditure and you acquired 13 new centers. From this you may now add anything more than ten centers this year. And how much of your guided growth of 15% to 18% came from existing centers and how much might be from the new centers added?

That's a very good question. So first of all we have this projected total CapEx of between CNY250m and CNY275m during the year. So this is like the upper limit. So what we're trying to do is be more disciplined in doing, when reviewing future investment opportunities. And we, basically our CapEx will translate into the targets for non-current assets on our book, which stays -- the number right now is about CNY200m. So basically it means that what we do is we sign this contract with the local hospital partner. We purchase the agreement and then it enters into this preparatory period before the center opens.

This period of time can be sort of couple of months or it can be as long as a year and over. So what we have right now is we have a very healthy pipeline of pending centers. So our business department are doing regular monthly or weekly review of the status of preparedness for each center. So we are very confident that out of this 30 and plus centers in the pipeline we're going to see probably between 20 -- around 20 centers to be opened during 2012. So we're seeing a very strong -- we're going to see a very strong contribution from new centers opened during the course of the year.

Of course the timing of the opening of these new centers there are a lot of factors beyond that control of the Company such as you may understand there are very heavy licensing costs. It is a very heavily licensed and regulated process. So, a lot of factors that are beyond our control. So we're doing our best to manage this process.

And as for the revenue contributions from new center versus the old centers, what we are doing right now is we basically group our centers, a total of 131 centers now into two groups. On the one hand we have the centers that are opened before 2010, basically during IPO. The total number of centers in this category is about 88, I believe. And then the rest of those centers were opened during the past two years, 2010 and 2011.

During 2011 the revenue contribution from the old centers is about 75% to 80% of our total revenue. And then the rest of those centers, about 40 of them accounted for 25 -- the rest of the 25%.

So you see there's a mismatch between the percentage of revenue contribution and the number of centers in the total network. So what we're going to do is during 2012 we have set up very clear targets for both the old centers and the new centers to achieve their -- especially for the new centers to achieve the projected target for the corresponding year during this operation.

And to arrive at the total number of 15% basically for the mature centers we are seeing the revenue growth in the single digits. It is very safe to assume that it's between 5% to 10%.

And then for the new centers that's going to see a higher growth because of the relative low base as well as the new, the early stage in its development. So that is the basically the basis, the mechanics of how we arrived at the number of 15%.

And also during the 2012 we have done very thorough focusing on budget process. We've gone through that together with our manage -- with our operation department. So our -- now our top line focus is based as a very bottom up process. So basically we have gone through the 131 centers we have right now, compared their performance of 2012 with that of 2011, set up specific performance goals both in revenue and in cost structure for each center and each region. So we are -- based on this analysis we have reached the number of our revenue forecast and our growth rate in 2012.

So we are very comfortable about this number and we have strong confidence that we are going to achieve and maybe exceed that number during the year of 2012.

Okay, great. Do you have any centers closed for last year?

We have two centers closed during 2011. So when you do the projection so probably it's helpful that you, basically out of the center business, we have a lower base because those two centers are not in service anymore. So basically you see some -- this is the kind of like the special character, specialty of our business. So during the year sometimes you see, sometimes that centers closed and are not part of the network anymore. And we, as far as I can remember we don't have any centers closing during 2012.

Okay, thank you.

Thanks.

(Operator Instructions). Thank you. It seems there are no further questions at this point of time. I'll hand the call back to Mr. Tony Tian.

Once again thank you for joining us today. Please don't hesitate to contact us if you have any further questions. Thank you very much for your continued support.

Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect.

Portions of this transcript that are noted "interpreted" were interpreted on the conference call by an Interpreter present on the live call. The interpreter was provided by the Company sponsoring this Event.