通用動力 (GD) 2004 Q2 法說會逐字稿

Good day, everyone and welcome to General Dynamics second quarter 2004 financial results conference call.

Today's call is being recorded.

For opening remarks and introductions, I would like to turn the call over to Mr. Ray Lewis.

Please go ahead, sir.

Thank you very much Audrey and I want to welcome members of the press who are listening today and the members of the financial community.

As always, there may be some forward-looking statements made today.

People should understand that statements of that kind represent our best efforts at predicting the future but these are always subject to the risks of any normal business faces and I would direct you to our 10-Qs, 10-Ks and Annual Report for a more thorough explanation of what those risks might be.

With that said, I'd like to turn things over to our Chairman, Nick Chabraja.

Good morning Ray Lewis.

Good morning everyone.

I think I'll be brief this morning.

The results and schedules appended to the press release speak I think in large part for themselves.

The quarter, compared to the second quarter last year, was marked by significant growth in sales, 21% as a matter of fact even stronger growth in operating earnings and net earnings, and of course earnings per share.

Free cash was solid again, at about 100% of net income, at $296 million.

The quarter at $1.49 earnings per share, $1.47 from continuing operations, exceeded analysts' expectations, consensus, I think was about $1.40 and I should add that it exceeded our own anticipation as well.

But maybe the most important comparison I can draw for you is between the first and second quarters of this year.

When I spoke to you on this call three months ago, I characterized our first quarter as powerful.

Well, in the second quarter, on an essentially the same revenue.

We had 52 million more in operating income from continuing operations, 31 million more of net income, and 13 cents per share more of earnings per share, and operating earning rates up about 80 basis points over the first quarter.

So, the rest of my remarks will just try and give you my view of the difference between those two quarters, so I continue comparing first and second, rather than a year ago.

The significantly improved margins in Information Systems and Technology over the first quarter evidence in my mind the continuing successful integration of former Veridian and BSR as well, into AIS substantially, and a piece of former Veridian into networks systems.

All of that going very well costs coming out and reflected in the improved margins of those businesses.

I should also point to the continuing success of the consolidation effort of decision systems in Scottsdale into C-4 systems in Taunton, Massachusetts, where we're getting, again, improved earning rates from them that evidence the efficiencies of that consolidation.

Same thing going on at Combat systems, improved margins, over the prior quarter represent the continuing success of the integration of former GM Defense business into land systems, as well as modest improvement at the other units.

And when I'm speaking of the other units, they each improved, but I might want to point out that our OTS unit had an acquisition, IMCO, last year you'll recall, and their improvement indicates that they're doing very well integrating that acquisition.

On the general aviation side, Gulf Stream continues to improve as a result of its cost curtailment activities, and drastically reduced exposure in a pre-owned market.

That is a market that has stabilized somewhat, but our business model is also improved in our approach to that market is improved materially.

And of course, year-over-year we are getting the improvement in the marine group that we expected.

I told you a quarter ago, when we reported 7.7% earnings rate that I didn't expect that would continue through the year, and you're seeing some normalization there, but I would expect that they'll continue to perform at about the average of the first and second quarters, that would be my expectation.

Overall, this is the third quarter in a row of margin rate growth for the company.

So in summary I feel very good about the quarter, I like where we are at the halfway point in the year, and I look forward to an exciting second half.

With that, I'll ask Mike Mancuso, our Chief Financial Officer, to comment.

Thanks, Nick.

Good morning, ladies and gentlemen.

I will be brief and limit my comments to certain selected line items on Exhibit A, the consolidated statement of earnings.

First item I want to talk about is interest expense of 39 million in the quarter, versus 19 million last year.

Our average fixed rate debt this quarter is significantly higher than last year as a result of our acquisitions, and the fact that we converted to term debt to hedge against rising interest rates.

Second item I want to address is other income, or in this case expense of 12 million, as compared to 2 million of income last year.

The 12 million is primarily the result of Alvus-related transaction expenses; some accelerated leasehold amortization tied to our headquarters relocation, and a revaluation of capital equipment at one of the business units.

The third item I want to talk about is our tax rate.

You can see that our tax rate for the quarter is about a rounded 33.2%, which is in the range that we expected and that we had forecasted for you.

You might note that last year's rate was 33%.

Finally, the last item to note is discontinued operations.

We picked up $4 million after tax, or 2 cents EPS, having reduced the reserve for certain outstanding liabilities incurred as a result of our exit of the commercial underwater cable laying business.

So with that having been said, I'm going to turn it back to Ray to initiate the question and answers.

Thank you, Mike.

Audrey, if you would, could you explain to folks how they can get into the queue to ask questions.

[OPERATOR INSTRUCTIONS].

We'll go to Cai von Rumohr with SG Cowen.

Yes, good quarter.

Gulf Stream, could you give us color on what was the level of used aircraft sales and were there any used aircraft profits?

I think that's in the press release, Cai, but no, it was a wash from the used aircraft.

Do we have that, Mike, on schedule - pre-owned deliveries on schedule G, Cai, we sold four aircraft in the quarter at break-even.

OK.

And what was the revenues on that?

Roughly 80 million

OK.

And the profitability looked good, I mean was there anything abnormal or should we assume that's, you know, sustainable or improvable level of profitability excluding used aircraft?

Yes, Cai, if you look at it compared to the year ago quarter, there was a modest volume increase, I think we delivered one more aircraft, we had a few more completions, but mostly it came not from the volume but from just improved performance and absence of pre-owned loss.

And I guess to answer your second question, yes, this is sustainable and improvable as well.

A little volume pop here would drive these margins.

Well, to what extent, because I recall you were saying we should see margins get better in the second part of the year.

Is the pricing in the second half looks better than it was in this quarter, or was there some pickup in this quarter that you might have expected later on in the year?

Cai, you know, it's kind of interesting, people would get very confused about it they ask about pricing, and I can say pricing is better, but I'm talking about the order book, pricing in the backlog, which will hit us a year from now.

This was pricing from a while back.

But even that is mixed.

You can see or I can see into our operating margins, manufacturing margins per airplane, some of the products have significantly improved manufacturing margins, indicating to me that they've gotten pricing as well as efficiency, other products not so much.

So it's a mixed bag in this quarter.

I think it will get generally slightly better as we go through the year.

So, all in all, you know, demand is in fact picking up.

We've tried not to be very excited about it.

If you chart it, as we do, demand is discernibly better, beginning in the third quarter of last year.

And of course, we needed that improved demand to meet our own production estimates and forecasts, but it has since improved further.

And the evidence since the close of the second quarter is that the third quarter could be a little bit super heated.

That's the way it looks to us right now, but we'll see as the quarter goes on.

Thank you, I'll let someone else go.

A great quarter.

We'll take our next question from David Gremmels at Thomas Weisel Partners.

Thanks.

First on the FCS program, it looks like the army is restructuring and delaying the vehicle portion.

What does that mean for you and you know did this change your $2 billion development contract and what are the implications for Stryker.

Well, that's a whole bunch of compound questions.

Let's see, first and foremost with respect to FCS, we've obviously talked to the army.

We've talked to them at some length about what they're doing.

I'm going to let the army speak to you on how exactly that program is being restructured, the chief of staff of the army is speaking as we speak, on the hill, and I believe tomorrow the army has a press conference scheduled, but let me tell what you they've told us, you know, insofar as it impacts us.

They've indicated that the program, even though restructured, will remain basically the same with no elements of it cut.

They plan to continue the ground manned vehicles, and it would appear that procurement will slip a couple of years, but that is well outside of our planning horizon.

You've heard from us, through 2007, what our expectations are.

The RDT&E funds they will furnish us in that planning period will remain the same, in my view.

They've also indicated that they're counting on us to pull forward our C-3 -- or C-cubed I capabilities to meet their current operational requirements and that should impact us quite favorably.

So to the extent that FCS is restructured, and by that I mean money is moved around, I think what you'll see is that those monies won't vanish but will instead support the further growth of the army.

And be good for the army and be good for suppliers, the regular suppliers to the army who have the capabilities to meet their current requirements.

So, all in all, we think that this isn't a negative for General Dynamics but will be a positive.

Stryker is doing very well in Iraq.

It has its naysayer's, but certainly not the troops who are using it.

And as you probably know, there is, going on as we speak, in the conferences between the house and the senate, a debate over how many Strykers they will in fact add to the president's request, and we expect, supported by the army, there to be a plus-up in the Stryker account that in fact will be what -- more than what we anticipated in our planning.

And I think probably the same will be true over time for the heavy equipment that we provide to the army.

I expect that the tank sustainment activity will be relatively robust for some period of time.

So all in all, for us nothing to be excited about in terms of our financial plans, but plenty of opportunities to be of assistance to our customer here.

I think that covers them all.

Thank you.

We'll move next to Gary Liebowitz of Jeffries & Co.

Hi.

Good morning, gentlemen.

Can you hear me?

Yes.

Sure can, Gary.

It looks like there's been some reported Virginia class cost increases and delays.

Nick can you comment on this and how it might affect the marine margins going forward?

Gary, the first four Virginia class are cost-plus boats, so to the extent there has or will be cost growth with respect to that flight of the Virginia class, it won't affect margins at all.

We've had extremely modest schedule slippage.

The Virginia is going to sea, I believe next week, for sea trials, and will be delivered shortly after that.

I think that's probably a month or two off of a schedule that was set probably ten years ago.

So, not a bad performance.

There has been some cost growth in the big picture relatively modest, considering how we're building this thing in partnership with our friends at Newport and all in all, the program is going pretty well, and the navy has asked the Congress for some additional monies to cover what they anticipate will be a shortfall.

But so far, the program, I think, is going well from our point of view.

OK, great.

And Mike, did you buy back any stock this quarter?

No.

No share repurchases, Gary.

OK.

And also, Nick, do you want to comment on the Reuters report on the WIN-T that came out last night?

The army said there would be essentially divided with you and Lockheed?

I think anything along those lines needs to come from the army.

Not from me or from Reuters, for that matter.

OK, thank you very much.

Moving on, we'll go next to Steve Binder with Bear Stearns.

Yes Nick, I guess a couple things.

One on IS&T margins, you know you continue to do better than expected, and you touched on trying to get to the 10% level for the year in light of the first quarter performance, that was kind of your goal, and it looks like your sales sequentially from Q1 and Q2 were essentially flat.

Profits are up 25 million you got over about a 1.5% of margin improvement.

Can you may be touch on what happened in the second quarter.

You kind of exceed what you kind of, you know, projected, and I'm just wondering, in a relatively stable revenue environment, that's a pretty good profit pickup?

Yes Steve, I mean, this is a difficult story to tell with lots of numbers, but if you go back to the second quarter of 2003, this is a group that was performing at 12.2%, operating margin, 11.2 the first quarter.

So let's say that probably normalized it was somewhere in between, higher 11s.

Late in the third quarter, we introduced Veridian, and I can't remember, but I think DSR is well about that time, and they had an immediate albeit modest impact, because they were only in for a month and we went down to 11.2, but in the fourth quarter, you could really see the impact of those acquisitions, and our not having enough time to begin to assimilate them, integrate them, and get cost out of the equation, we went down to 9.2.

So at the first quarter call I was happy to see us up at 9.9, indicated to me the integration was going well, and that the consolidation was doing well also, and Massachusetts, Scottsdale.

Well, they have exceeded my expectations in the quarter.

They're getting better margins across the board on all of their product lines and their programs because they've taken cost out.

Some of it's overheads, but some of it's heads directly chargeable to the contracts, and we're seeing it in improved performance.

So where will it go?

I don't know.

We're going to watch it carefully, the guys are doing real well, and I should add that network systems did very well.

Their margins were up as well and they got a piece of Veridian.

So all in all, the synergies we anticipated in those acquisitions, we're getting them a little sooner than I thought we would so.

Over marine, your know you first quarter comments, and this is being nit picky so take it for what it's worth.

But you said you are going to fight hard to keep it at 7.7 the first quarter rate for the full year?

No, that's not what I said.

I said I doubted that we would get there.

I told you, anybody who was listening to me fairly heard me say that, that was not something that I expected to continue, but that we would fight hard to keep it over 7.

OK.

Cash taxes for the year, I don't know if, Mike, you want to touch on this.

I mean you've been tracking pretty much at 70% of book, your Q1 goal is away but Q2 is generally light, too, relative to the book provision.

But what are you kind of anticipating for the full year relative to book provision?

Well, book provision, you know look for a number like us you know at 33-3 of whatever you believe our projected pretax income is going to be.

In terms of actual cash payments, I think there certainly will be some reduction to that as we pick up some tax benefits.

To go into the various and sundry book versus tax differences would take a longer conference call than we have time here, Steve, but I don't think it's going to be markedly difference from cash taxes paid necessarily than last year.

So if you're looking for guidance, we'll be about where we were last year in terms of taxes paid.

OK.

And Nick, just finally, the comments on Gulfstream, you said Q3, did you say new equipment orders could be super heated, was that what you were referring to or -

Yes, orders.

Yes.

It to be right now it's a lot of activity.

Because I was wondering because the first half of the year, your book-to-bill, I guess in your back are used aircraft sales looked close to pretty - close to one to one.

Yes, pretty close.

Right.

So, you're kind of thinking about seeing that go above 1 to 1 in the third quarter; is that a fair characterization?

Well, it could.

I mean that's what it's looking like.

And can you maybe touch on fractional share you know orders we haven't you know just do you expect that to start heating up as well, to see a bigger intake, or conversely, are we going to just see an acceleration of the order book as supposed to incremental orders?

Yes, Steve, the position we're in right now is we have an enormous number of orders from net jets.

And what's really going on is they're beginning, little by little in certain product lines, to draw down on those orders.

So what I expect to happen over time is I expect deliveries to net jets to improve.

OK.

And lastly, can you maybe just touch -- you touched on the first quarter.

How about looking for '05 - looking at the '05 skyline, what percent are you sold out today?

In '05?

Yes.

I don't even know, Steve.

OK, fair enough.

Thanks very much.

Next we'll move to David Strauss at UBS.

Good morning.

Nick, given that you said you exceeded your own expectations in the second quarter, is there any change to your 570 to 575 guidance for the full year?

Well, yes, I think so.

I think we have to bow to the inevitable right now.

I think a lot of folks were ahead of consensus for the year.

I guess consensus for the year is about 5.82.

There have been a number of analysts at 5.85, and I think that's where we are right now.

We're going to be a little bit cautious about this, and if I had to think about it in terms of dividing it by the quarter, I would say that the third quarter will look an awful lot like this one, like the second quarter.

And the balance will be in the fourth quarter.

Well, great.

Could you talk about the progress of Bowman, I recently read some articles that seeing that, there's some delays in the program, you're having trouble fitting the radios into the vehicles over there.

Could you just give us a update on status of the program?

Yes.

Bowman as a program is doing very well.

It is meeting its milestones in terms of the development of the intellectual property, the radio, the software, everything that makes Bowman functional.

We are having some problems in connection with installation.

It's a subcontractor management issue it's as a result of the fact that the design agent for us didn't adequately anticipate the age and variety of the number of vehicles.

I mean, the vehicles of the same kind may have dozens of variances, they were produced over periods of time and some of those records are ancient.

So we've run into some problems just with the you know the sweat end of the deal or the installation.

And of course, in England or in the United Kingdom, everything is fodder for the press on that, but all in all we're satisfied with the program and the -- these issues which we're taking very seriously in fact Jerry Demuro, our group executive is over there right now conducting reviews and, you know, putting in fixes have impacted our financial performance.

Do you have any additional color on combat systems sales in the quarter?

If you back out additional sales through acquisitions, it looked like sales for combat were down about 5-6% in the quarter.

Was there anything specific going on there?

I don't see what you see.

It's been pretty steady state since we've acquired General Motors Defense.

We reached a high of $1.287 billion in the fourth quarter, not unusual in the fourth quarter to get deliveries for those businesses that have units at delivery accounting.

But third quarter last year pretty much the same as second quarter this year, so I don't see anything about the volume here that's unusual.

OK.

It's looking more likely that extension of bonus depreciation for business jet aircraft will get extended for another year.

What-is there any anticipation of what that might do for Gulfstream orders in the back half of the year?

Yes, I have always said that I can't quite discern the value of that for the Gulfstream customer.

I know that the manufacturers of the lighter aircraft feel that that is very important to them, but I don't -- you know, in terms of things that we can deliver to you, if you want to take advantage of bonus depreciation, it's precious little right now.

We're fairly well sold out for this year.

We have a couple of open slots and, you know, you can always get your cancellation or somebody that wants to delay, but we'd be hard pressed to sell somebody a plane to take advantage of bonus depreciation for this year.

OK, thanks a lot, Nick.

And as a reminder to the audience, if you do have a question, press star one.

We'll go next to George Shapiro at Smith Barney.

Good morning, Nick.

Good morning, George.

In the IS&T area we've seen what looks like the organic growth is slowed from what really was an unsustainably high like 20 plus percent in Q1 to maybe 13 or 14% this quarter.

And the backlog was down a little bit sequentially.

I mean, what do you think is a sustainable growth, you know, as we get into next year for that business?

George, you're doing better than I can do at culling out the organic growth.

Even with the benefit of Hyperion software, I can't tell what it is, given the way we've integrated those businesses.

But look, I'll agree with you that it's been wholesome, that the IS&T organic growth rate has been wholesome, and as you correctly point out, nothing grows at 20% forever, right?

Right.

And you know, if I had to make a bet, I'd say it's high single digit, low double-digit growth rate for quite some period of time here.

OK.

And I know we're there were a couple of questions on the margin before, but if you looked at the margins last year and it's hard because you had Veridian and all in the fourth quarter and not the third.

But I got a piece of them in the third quarter in September, so they were in the third quarter results for a piece of it.

But if you didn't have Veridian in there last year, would it still have been the second quarter was the highest margin of the year and then if so, is it this quarter that you're getting a lot more deliverables?

I mean, we saw the IDIQ backlog down about a hundred million sequentially, which I assume went into revenues this quarter, so is there something unique with the second quarter that helps deliveries and maybe gives you the higher margin?

I don't think so, George.

I think if we didn't have those acquisitions, the fourth quarter and even the third would have been stronger, and they may have looked like this 11/4.

And the first quarter would have been stronger.

But I think what we're really doing is getting those things into our midst and operating them pretty much the way we operate our own companies.

These are businesses that are doing very well from a margin point of view.

Yes, I mean we have talked about it before but it just seems like in consistently doing maybe it's 10 or 11%, which is, you know 50% higher in margin for 300-400 basis points than what the rest of the industry does in this area, and I know you guys are good, I was just trying to figure out, get a little bit more insight as to how you can sustain that much better than everybody else.

George, we don't want to give lessons here.

OK.

Well, one last one on Gulf Stream.

You've seen the sequential backlog down the last couple of quarters now, so what you're implying is that we'll see a significant pickup in backlog in the third quarter?

Well, I don't know, George, but look, I think that the backlog has, to the extent that it's reduced, it's been insignificant in the first two quarters.

The book-to-bill has been pretty similar.

And, we needed the demand pickup that I talked about earlier to get there.

We're there, and I think from the -- and one shouldn't make forecasts from three weeks of activity.

We've had a lot of activity in the first three weeks.

And others have as well.

I mean, as I talked to the other leaders in this area, they're all saying that they're having a hot start to the third quarter.

So if that continues, George, then we'll see the book-to-bill ratio improve.

I might add, as a caveat, the third quarter is kind of weird because usually in August you can't find anybody to do business with.

So, you can have a hot July and they go away in August, and we'll see what happens when they come back after Labor Day.

But right now, Gulf Stream has a pipeline, the likes of which they haven't had for a long, long time.

And a lot of that pipeline is maturing, you know, it's moving down into the final stages of competition in some cases, or contract discussion in other cases.

In other cases it's converting letters of intent into contract documents.

But their sales force is extremely busy.

And last one.

Nick, if the integration is going somewhat quicker and better than you thought, do you give any more look towards acquisitions?

I remember you were saying this year your thought would be more one of consolidating everything that you bought last year.

But if you're getting more comfortable with where you are and we saw, you know, the Titan deal fall apart I mean, and those valuations have come down.

Is there any more of interest in looking at some of this stuff at this point?

George, I'd like to kind of address your question, eliminating from it the reference to Titan and things of that kind and character.

OK.

Because that's really not my scope right now.

You know, look, I think as I become increasingly comfortable with operations, and I am increasingly comfortable, and as Gulf Stream requires less and less of my time, as it does now, we'll turn our attention once again to this balance sheet of ours where net debt is at a fairly handsome place right now.

We don't have any commercial paper debt, and we have 500 million of floating rate notes that come due in the fall.

We'll want to pay those down.

And after that, we have nothing left but our, you know, longer term fixed rate indebtedness and, you know, we'll have again the lovely problem of what do you do with the cash?

So it's coming, George, it's coming.

OK.

Very good, thanks a lot.

We'll go next to Troy Lahr at Legg Mason.

Thank you, I wonder if you guys can talk a little bit about margins at the Combat systems, in the second quarter they were up quite a bit from the first quarter -- do you see kind of is that going to continue going forward, are you pretty comfortable within this 11.3 level?

We'll have to see, but it looks to me, and I've already addressed this a little bit, that what you're seeing is the successful integration of the businesses we acquired last year.

I can draw your attention to the first and second quarters of last year where we did 11.3 and 11.7, higher than this year, then we made the acquisitions and dropped to 11.2 and 10.5 in the third and fourth quarters, repeated the 10.5 in the first quarter, and now found our way back to 11.3.

So, this margin seems to be well within the pattern that we had established for this business before we made those acquisitions and, you know, shows we're doing a good job, it seems to me, of consolidating them and that they were in fact as accretive as we indicated to you they would be, maybe more so.

Because we're getting synergies that we didn't reveal to you at the time of the acquisition.

OK.

Have you seen a pickup in international interest for Stryker?

I know Israel just delayed their decision, whether they're going to procure -- get that or not.

Yes, I think that there's a considerable amount of international interest in the LAV family of vehicles.

Whether it is Stryker or the Canadian Variant, which Canada is buying, or one produced at MOAG, you know, it is an extremely good family of vehicles, extremely competitive on the international market, and you'll see some of those sales we hope in our European LAN Combat systems group.

Are people looking away from the Strykers to some of the other option that is you have, is that kind of what you're seeing?

No, we're just seeing that certain -- you know, the Stryker is a Variant or a modification of the LAV-3 at the request of the United States Army to suit its particular requirements and needs.

Other countries have different requirements and different needs.

So they like the vehicle but it's not necessarily Stryker.

OK.

It might be, you know, Piranha or LAV-3 or LAV-2 modified.

It's a wonderful and variable product set.

OK.

You talked a little bit just -- one last question.

You talked a little about aircraft demand picking up.

Is that to say for large aircraft versus the midsize aircraft or is there a little difference there?

I was -- you know, the piece of this that I know best is the large aircraft, and the piece where we have the most comparative data, and I was addressing the long-range large cabin market.

OK.

Fair enough.

OK, thanks.

We will go next to Jim Higgins at CS First Boston.

Yes hi.

Back on Gulfstream.

Can you give a bit of color on where this order activity is coming from, from a global region standpoint, etc?

No, and I don't intend to.

OK.

And number of used aircraft to sell?

We have nine aircraft in inventory at the end of the quarter, six are not available for sale, they're on temporary lift agreements with customers.

One is sold pending delivery, so two available for sale.

Great, thanks very much.

And next we move to Amit Malhotra (ph) with Banc of America.

Hi, just wanted to touch on Gulfstream but I want to come back at it from a different way than others have.

Basically, one of your key competitors for Gulfstream came out on Monday (inaudible) basically restated they are seeing you know, strong momentum in the business jet market but ion your sequential funded backlog decrease from first quarter states.

Is the that more coming from a pricing issue or in terms of pricing, and you know, the added surge in the third quarter like you were saying, is that sort of what strategy you're coming up with for market share?

I don't even think about market share.

We sell as many airplanes as we can at good prices, prices affirming.

We-- the book-to-bill has been largely consistent.

If you see the gross numbers, they include completions.

If you look at our funded backlog, there's almost no change at all.

I'm looking at the second quarter, we're 39-70.

A quarter ago we were 409.4.

So, I mean it's not; it's one airplane, sometimes.

But sometimes it's not an airplane.

It's two or three completions.

So the book-to-bill has been pretty consistent, and price is more important to me than market share.

And what are you doing in terms of -- are you trying to reassess -- is there a strength in pricing, or are you sort -- is that reflective of the decrease in the sequential backlog?

I don't even know what you're talking about.

OK, thank you.

And Mr. Lewis, there are no further questions at this time.

We'll turn the conference back over to you.

OK, well thank you very much.

I'm going to go run, get a quick bite to eat and then I will be available for further questions that people might have.

I'm at 703-876-3195, and in today also my associate Carl Johnson who is at extension 3172 and you might congratulate Carl, he became a father yesterday for the first time.

And goodbye to you all.

And that does conclude today's conference.

Again, thank you for your participation.