Milestone Scientific Inc (MLSS) 2008 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Milestone Scientific fiscal year end 2008 results conference call. At this time, all participants are in a listen-only mode and later, instructions will be given for the question-and-answer session. (Operator Instructions). As a reminder, this conference is being recorded today, Thursday, March 26, 2009. At this time, I would now like to turn the conference over to Dodi Handy. Please go ahead.

Thank you, Craig, and good afternoon, ladies and gentlemen. It is my pleasure to welcome you to today's call. We're going to be discussing Milestone Scientific's financial and operational results for the fiscal year ended December 31, 2008. As the Operator mentioned, my name is Dodi Handy and I am the President and CEO of Elite Financial Communications Group, Milestone's investor and media relations firm.

Following my reading of the Safe Harbor statement, I'm going to be joined by Leonard Osser, Milestone's Chairman of the Board who, effective on Monday, March 30, will also be assuming the role of interim Chief Executive Officer of the Company. As announced last week, Joe Martin, Milestone's current CEO, is leaving the Company to pursue a new career opportunity. Leonard will serve as Joe's temporary replacement until such time as a new CEO has been appointed by the Board.

Also joining us today is Joseph D'Agostino. Joseph will be summarizing the year end financial results for you. Immediately following the conclusion of management's prepared remarks, we will instruct you on how to queue into the Q&A forum so that Len or Joseph can address your questions.

Before I formally introduce Leonard, please allow me to remind you that during this conference call, we may make forward-looking statements regarding the timing and financial impact of Milestone's ability to implement its business plan, expected revenues, and future success. These statements involve a number of risks and uncertainties, and are based on assumptions involving judgments with respect to future economic, competitive, and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond Milestone's control.

Some of the important factors that could cause actual results to differ materially from those indicated by those forward-looking statements are general economic conditions, failure to achieve expected revenue growth, changes in Milestone's operating expenses, adverse patent rulings, FDA or legal developments, competitive pressures, changes in customer and market requirements and standards, and the risks detailed from time to time in Milestone's periodic filings with the Securities and Exchange Commission including, without limitation, its annual report on Form 10-K for the year ended December 31, 2008.

The forward-looking statements made during this call are based upon management's reasonable belief as of today's date, March 26, 2009. Milestone undertakes no obligation to revise or update publicly any forward-looking statements for any reasons. So with that, we will now begin the discussion of the results.

In view of the results that the Company reported in their 10-K filed with the SEC on Tuesday of last week, I would like to be among the first to formally congratulate everyone at Milestone for the tremendous progress they accomplished last year. So without further ado, please allow me to introduce Mr. Leonard Osser, Chairman of the Board. Good afternoon and congratulations, Len.

Thank you very much, Dodi, and good afternoon to all of you who have joined us today. We, too, are very pleased with the positive traction Milestone has achieved in 2008 across a number of important metrics, particularly in sales of the STA System. When coupled with the declines we saw in operating expenses, net losses, product inventories, accounts payable, and net cash used in our operating activities, there is sufficient evidence that Milestone is heading in the right direction.

This progress is a credit to our team's rigorous financial and management discipline and their collective success in executing and implementing a number of key initiatives that are now pointing to 2009 being a very good year for us.

Before I turn the floor over to Joseph so that he can expand on our 2008 year-end results, I think it is important to first address the news we announced last week, which is that Joe Martin has elected to leave us to pursue another career opportunity. Since being appointed by the Board as Milestone's CEO in December of 2007, Joe has provided with our Company with strong leadership. A personal friend of Joe's presented him with another career opportunity at a large medical device company in the upper mid-region of the country and we want to wish him success and good fortune in this new endeavor.

We will be initiating a formal search for Joe's replacement as CEO. However, until a new executive appointment is made, I am delighted to step back into the role to help assure that the positive momentum we have achieved in our business last year continues without disruption.

I would now like to invite Joseph D'Agostino, our CFO, to summarize the financial results of 2008. Joseph?

Thank you, Leonard and good afternoon to all of you. As Dodi mentioned, we filed our Form 10-K for the 2008 fiscal year with the SEC on Tuesday of last week, March 17. Please note that the Milestone SEC filings, including the 10-Qs and the 10-Ks, provide a detailed analysis of our financial condition and operations and generally are informative documents, so I encourage you to thoroughly review them.

Looking first at our income statement, in our latest financial fiscal year ended December 31, 2008, we achieved revenues of $6.62 million, up from $6.39 million reported for the 12-month period in 2007.

Drilling down further into our revenue results, on the domestic front, total 2008 product sales decreased 5% to $4.34 million compared to $4.59 million in the prior year.

As you may recall, in early 2007, we signed an exclusive distribution and marketing agreement with dental supply company, Henry Schein, at which time they purchased $4.2 million in product inventory from Milestone for sellthrough to their customers.

It is no secret that a large portion of those units were not resold by Henry Schein to any users until 2008. Therefore, when looking at sellthrough of instruments in 2008 compared to 2007, we believe that there has been a notable improvement. While sales of our instruments were technically down in the domestic channel, declining to $914,000 from $1.56 million in 2008 and 2007, respectively, for the reasons noted, domestic sales of our disposable handpieces grew 14% to $3.37 million from $2.96 million.

We believe that the growth of the handpiece sales will become an ever stronger factor in our ongoing financial performance. As we continue to expand our STA customer base, recurring revenues from dentists reordering disposable handpieces should increase exponentially, helping to further validate this important aspect of our business model and growth strategy.

Generally speaking, our overall sales performance has improved due to a price adjustment and the fundamental change we made to our domestic distribution strategy in June 2008. More specifically, we moved from an exclusive arrangement with one distributor, that being Henry Schein, to supporting a national network of non-exclusive partners comprised of several leading dental supply companies, which includes Henry Schein, in addition to Patterson Dental and many others.

As a result of our new approach to distribution, coupled with the refined product pricing strategy, we succeeded in increasing the number of independent sales representatives potentially marketing our products to dental professionals in the U.S. and Canada to more than 2,400.

Now, looking at product sales in the international marketplace, we saw total revenues in 2008 climbed 35% to $2.25 million from $1.67 million. Instrument sales jumped 57% to $696,000 from $443,000 and related handpiece sales increased 29% to $1.55 million from $1.2 million year over year.

Moving down our income statement, we also saw an improvement in gross profit margin on the sales in 2008, which rose to 60% from the 55% posted for the previous year. This increase is attributable to growth in higher-margin handpiece sales, again further validating our underlying razor/razor blade business model.

Now, looking at our expenses, thanks largely to cost-cutting measures and strict expense discipline applied to most areas of our operations, selling, general, and administrative expenses for the year ended December 31, 2008, totaled $5.5 million, a 16% net decrease from SG&A expenses of $6.58 million in 2007.

On a comparative year-over-year basis, our research and development expenses also fell, declining 58% to $169,000 from $397,000. This is due to the STA System being completed in 2007.

Consequently, our total loss from operations for 2008 was $1.73 million, representing a 50% decrease when compared to a total loss of operations of $3.48 million reported for the 12 months ended December 31, 2007.

After factoring other income and expenses, including the sale of tax losses under the New Jersey Technology Business Tax Certificate program, our net loss for 2008 decreased 60% to $1.19 million or $0.09 per basic and diluted share, compared to a net loss of 2.2 -- $2.94 million or $0.24 per basic and diluted share in 2007.

Now, taking a look at our results for the three-month period ended December 31, 2008, revenues increased 67% to $1.85 million, up from $1.11 million for the same three months in the prior year. Operating expenses were down slightly to $1.51 million from $1.52 million.

Net income from operations for the quarter ending December 31, 2008, was a loss of $541,000 compared to a loss of $880,000 in the same period in 2007.

In the fourth quarters of 2008 and 2007, the Company sold New Jersey tax losses in the amounts of $675,000 and $552,000, respectively. The sale of these tax losses decreased our net losses from operations in 2008 and 2007, respectively.

The cash generated from the sale of the New Jersey tax losses provided a substantial addition to our cash flow for the Company in both years. Moreover, as a result of the net loss for the fourth quarter in 2008 was $88,000, which compared to a net loss of $353,000 reported for the fourth quarter in 2007.

Now, referring to our balance sheet, as of December 31, 2008, we had approximately $774,000 in cash and cash equivalents, $926,000 in accounts receivable, product inventories valued at $720,000, and working capital of $1.53 million. This is noteworthy to add, that our working capital position was positively impacted by a material decline in accounts payable, which dropped to $829,000 at the end of 2008 from $1.86 million as of December 31 of the prior year.

And finally, I'm pleased to confirm that we used approximately $442,000 in net cash in our operating activities during 2008, representing a 62% improvement over 2007, in which we used $1.15 million in net cash in our operating activities.

That concludes my formal summary of the results. However, if anyone has any specific questions relating to the numbers, please feel free to ask me during the question-and-answer period later on this call. Back to you, Leonard.

Thank you, Joseph. Again, we are all proud of the progress we made in 2008 despite challenging economic times. While health care, including dentistry. has generally experienced some reduction in growth, Milestone's business continues to gain momentum.

Due to the revised messaging and marketing platforms and the product pricing adjustment we implemented in early 2008, the STA value proposition is now clearly resonating with dentists worldwide and attracting broad industry attention to our Company. As reflected in our results, the clinical acclaim for the numerous tangible benefits of the STA System emanating from the dental community continues to inspire sales growth in both our domestic and international channels.

Upcoming in May, Milestone will be hosting the second annual C-CLAD symposium. That is a computer-controlled local anesthetic delivery. As we have noted on prior calls, the first symposium held last spring in New Orleans was a significant event at which the STA System was a central focus of much positive acclaim and active discussion by many of the dental industry's most prominent experts and clinicians.

This year's event will bring together an even larger group of accomplished dental professionals and C-CLAD advocates who, like last year, will gather to discuss the advancements in the scientific and clinical practice communities, [both] the common goal of advancing the art, science, and knowledge of C-CLAD in dentistry. We hope to gain even greater insight into how the STA System is positively impacting the dental industry and the practice of dentistry, ways that we can further strengthen and refine our key marketing messages to fuel broader market awareness, and ideas for expanding STA's market penetration so that, ultimately, the instrument is confirmed as the new standard of care for the industry on a worldwide basis.

One of the dentists joining us at this year's symposium, Dr. [Brian Nilan], who practices dentistry in Grand Rapids, Michigan, recently brought to our attention how the STA System assisted him in treating a young child in an extraordinarily difficult procedure. Because the story is compelling, I would like to share it with you.

Apparently suffering from an extreme form of spina bifida, further complicated by life-threatening tylosis that caused her internal organs to be clinically compacted, Catherine, an 11-year-old girl, was scheduled to undergo lifesaving surgery to straighten her spine in December of 2008. In order to minimize the risk of bacterial infection during the complex operation, her surgery required that she have her teeth cleaned and have all oral infections dressed, a relatively challenging task given the fact that Catherine could not sit in, much less lie back, in the dental chair.

Due to the inherent difficulties, several dentists that Catherine's foster parents approached elected to pass on treating her. That is until they found Dr. Nilan. Rising to the challenge, Dr. Nilan, who also happens to be 6'3", conducted a comprehensive oral examination on Catherine while she remained rigidly stooped over in her wheelchair and while he literally knelt on the floor of his exam room.

During the unconventional examination, he discovered that Catherine suffered from extremely sore and infected gums resulting from retaining her baby teeth, causing her to require multiple teeth extractions, seven teeth in total. Using his quote magic numby stick, which is how Dr. Nilan refers to the STA System when he uses it to treat [pe toe] patients, he prevailed in removing all of Catherine's overgrown baby teeth.

More than halfway through the tedious extraction process, Catherine told Dr. Nilan that she didn't believe he had pulled any teeth yet because she still hadn't felt any pain.

Dr. Nilan credits the STA System for empowering him with the ability to effectively treat Catherine's dental problems without added stress for him or pain for Catherine, thus enabling her medical doctors to proceed with the spinal surgery that would save her life.

After two years on the market, there appears to be a growing consensus among users like Dr. Nilan that the STA System is a valuable and beneficial instrument that is positively impacting their practice of dentistry. The utility and value of the STA System is perhaps best summarized by Dr. Joe [Blaze] who wrote in the December 2008 edition of Dental Economics, quote, I tried the STA System and my patients absolutely love it. This is a no-brainer. Go get one ASAP, unquote.

As the dental side of our business continues to grow and strengthen, it is important to emphasize that we are directly -- directing even more concentrated focus on developing strategic relationships with groups interested in exploiting the full potential of our patented CompuFlo technology in new medical applications. In our many discussions with medical companies, few if any of them disputes that there are obvious and potentially significant commercial opportunities for CompuFlo.

We are currently in discussions with a large industry player who has expressed serious interest in CompuFlo. We are hopeful that these discussions will yield us a strategic collaboration in 2009.

I would also like to note that despite Milestone's accomplishments in 2008, we remain very disappointed in the performance of our Company's common stock. Nonetheless, we remain highly optimistic that with increased penetration of the global dental market with the STA System, along with the possibility of entering into an all-important strategic collaboration for our CompuFlo technology, that this will bode well for our stock performance.

The fact that we are seeing increasing demand for the STA System from dentists around the world is exciting. 2008 was a very good year for Milestone in many respects and 2009 has started off on an excellent sales pace.

Looking ahead, you can count on the fact that we will remain focused on and committed to the objectives at hand, those being growing Milestone's market share of the global dental industry and securing a strategic partner in the medical field.

Now, Dodi, why don't we take some questions?

Okay, Leonard. Craig, would you now kindly provide instructions to our call participants on how they may ask Leonard or Joseph some questions?

Certainly. (Operator Instructions). Roger Bensen, Number One Corporation.

A couple of questions, but before we get into the questions, let's address another issue. During this call, quite some reference has been made to the importance of us reviewing the documents that Milestone has filed with the SEC.

Well, we all would like to do that. It's very hard to find them. The Company has not put out any press release to the stock market. There is nothing on Dow Jones. There is nothing on Reuters. There's nothing on the important websites. In fact, there is nothing of SEC releases on Milestone's website since June of last year. There's no September one. There's no year-end one.

Fine, we can eventually go to the government and find these things out. Hold on one second, please. And this is -- we want this to be a real Company. We talk about the stock has not done well and so on, but we've got to put this information out where people can easily read it and access it. Is there any disagreement to that?

This is Joseph. I'll be glad to take that issue and correct it immediately. We did file the forms, as you know, in the SEC form and EDGAR. I'm surprised that they have not been transferred over, but I will take care of that immediately.

As far as the summaries and press releases, we can definitely look at doing that and providing that on a quarterly basis.

Thank you. It's time we started acting like a real Company in this basis. Now back to the questions. The overseas sales seem to do much better than the U.S. sales. Len, can we talk about this? I think quite awhile ago, you and I had a conversation -- hold on, again, I'll get rid of this call -- that the dentists overseas and maybe the distributors were a little more up-to-date on technology and willing to move forward than the United States dentists, which are -- reputation for being stingy.

What's currently going on there? Is that the case and then the overseas market, are they just adopting quicker to it?

In a small part. Mainly, what we have always had in the United States with the -- particularly with the large distributors in the United States -- we know that they are basically order takers.

We have our own salespeople. We have a company that we work with, with manufacturers reps in the United States, and they -- the distributors do advertise somewhat. They do help us at the shows, but basically, they are catalog houses other than the small distributors.

Whereas throughout the world, the distributors are basically on their own. They are more like medical distributors. Their people are more educated in their technology and in technology in general and take much more of a lead in selling the product than the distributors do in the United States.

Also, about a year and a half ago, we initiated a program in Europe, in Eastern Europe, whereby we gave instruments at a low margin, considerable amount of instruments at a low margin, to one of our distributors with the stipulation that they had to give the unit away with -- along with a contract to purchase a certain amount of handpieces. That has worked extraordinarily well in that territory.

So there are a number of reasons at play. Obviously, we are working very hard. Joe Martin has put together an excellent team. We have Bob Presuetti, who is our Director of Sales and Marketing. We are hiring and training more Milestone people to work with the reps in the field, and being that the product is getting very good press within the community, we are hearing very good word-of-mouth within the community, we believe that we will do better in the United States month on month as we move ahead.

So, I recognize what it is you're saying. You are correct. We are trying to build the sales in the United States. It is far more costly to build those sales in the United States, given the nature of the venue for selling, than it is overseas.

Okay. As I recall, we have a show in Chicago. It probably was just a little while ago. It comes up every year and then there's one in Germany that comes around every two years. What has been our experience at those shows this year?

I'm very pleased. The Chicago show, the projection for that show was, I believe, 100 STA units to be sold. I believe we sold 102 units. We have generally seen that the projections given to us by our Director of Sales and Marketing have been right on. So, that is good for a number of reasons.

We were also told that the Chicago show was underattended this year. They tend to get worse and worse as the years go on because the dentists are busy with CE lectures throughout the day and do not have a lot of time on the floor, but we were told by a lot of vendors at this show and our own people that the only booth that was crowded was ours and it was crowded all the time. So I believe there's a lot of interest.

I believe our Director of Marketing, Scott Mahnken, is doing an excellent job bringing people to our booths, increasing the knowledge of our STA System. I believe the -- Joe Martin instituting the C-CLAD symposium has been a great plus for the Company. A lot of things have been done broadly and on a lot of different levels to get awareness up of this product.

I think the most important thing, however, in a small industry, selling a new product, is that the word of mouth is excellent. The product is working. It's easy to use. We have a very good staff that Joe Martin put together in customer service in reaching out to the dentist to make sure they have no problems and that they are using the handpieces.

It's not moving as fast as we would like it to move, but it's moving very well and it has been increasing pretty much month on month for the last 12 months, and the handpiece usage is now moving up on the STA units, so I believe that the trajectory of the Company is certainly in the right direction.

The team that we have is certainly the right team in every area, I believe, so I believe we -- I feel confident that the Company will continue to grow, both in the United States and offshore. We will start turning a lot more attention, now that the United States is moving in the right direction, to the foreign markets.

And I think that that will help us a lot for the remaining part of this year.

Okay. That sounds good. The first quarter is pretty much over here. How, in general, is it going to compare to the first quarter of last year?

This is Joe D'Agostino. We are moving ahead. Obviously, we haven't finished the quarter, but we are closing in on it. Last year, for the quarter, our revenues were $1.3 million, $1.4 million. This year, we will better that number. And I can't disclose the exact amount right now, but we will do much better than that.

Okay. One last question from me and then, let somebody else take over. One of the logical questions that has -- people who look at this stock and there aren't that many people who do look at it, but anyone who does is, gee whiz, are they going to have to sell some more stock to raise some more money in here? They've been losing money. They didn't have that much money. You have improved the cash drain on the Company and your sales are picking up and so on. Maybe we can get by without having to sell some more stock here in the near future.

Yes. I think that one of the things that Joe Martin brought to the Company is the ability to put together an excellent team and that includes Joe D'Agostino. The expenses were brought down to a level and the margins are at a level, when combined with the money that we received from selling the NOL to New Jersey, it appears to us at this point that we will not have to raise any more capital for the Company.

That's great. Of course, we would hope that eventually we will be generating cash enough so we're not just selling loss carryforwards to keep going.

We agree. We do whatever we can do in every area. It is all important to us not to dilute the stock and we believe that we are finally in a position where we feel that we will not have to raise money in the future. I think that's a significant accomplishment and a lot of that goes to the cost-cutting over the last year.

It is. It's a very great accomplishment. We hope to see evidence of it in the -- actually in print soon and, of course, with these handpiece sales going the way they're going and building up, that should be very good for us.

Thank you, Roger.

Greg, our next question.

Our next question does come from the line of Jerome Ballan with Shields Company.

Most of my question has been answered, but the -- with your sales and costs both going in the right direction, do have any thoughts on when you might become cash flow positive?

Yes, I think that we will turn cash flow positive this year.

I soon you weren't able to do it in the first quarter.

No, we were not able to do it in the first quarter, but at some point during this year, we will turn cash flow positive. Keeping in mind that the summer quarter in our area is very, very poor. Given the way sales are going and given the usage of the handpieces, we are projecting that sometime before the end of the year, we will turn cash flow neutral, and cash flow positive.

Have you got the ability to do any -- without selling stock, do you have the ability to do any borrowing here, if you need be, on a short-term basis?

Yes, where we have -- Milestone, if anything, has been extraordinarily successful at borrowing money from one of our investors who has been the angel who has really kept Milestone alive all of these years. We have no guarantee that we can borrow further from this investor, but as I said, I do not believe we will have to raise or borrow any more money for Milestone.

Thank you.

(Operator Instructions) Tom Brady, private investor.

I do have a question for you. I'm reviewing your 10-K, which is about 33 pages long and I've half-reviewed it and I have a couple of questions on page 7. You guys have your patented intellectual property section and I have on here, things that took place last year, designed for drive unit for aesthetics took place four eight, 2008 you filed it, it was issued and designed for drive use for aesthetics anesthesias 10/28/2008 and the last one is the one that's of interest. It's drug infusion device with tissue identification using pressures sensing. That was issued on 11/11/2008. My question is is those three last items took place last year. Is that related to your spinal injection area that you want to get into the medical area?

It's -- it relates primarily -- give me one moment. I'm looking it up now. Are you speaking of the sharps injury protection as one of them?

The sharps injury protection, that's below it -- just below it. The engineered sharp protection injury devices is just below it. I'm looking at the last three items --

Looking at the catheter device?

I'm looking at the last three. I'm at the very top. It's listed as computer-controlled drug delivery systems and then the last three lines on that item took place in 2008. I didn't hear you guys ever talk much about it, but you guys were issued these U.S. patent numbers in April of 2008 and October of 2008 and in November of 2008 and I'm just wondering if that is related to why you're holding off on your using it in the hospital for your spinal injection for pain blocks and things of that nature, or if this is related to something different.

The pressure -- you're talking about drug infusion device for tissue identification using pressure sensing?

Right.

That is for the CompuFlo technology which is embodied in the STA unit, which allows the dentist to give single-tooth anesthesia. It is also used in various other areas for medicine, including the epidural injection. So, what we -- when we realized that the vast majority of dentists who purchased our product purchased it to give single-tooth anesthesia, not for the elimination of pain, we decided to invent pressure-forced sensing, which allowed the dentist to know where the end of the needle was.

It also allows us to, after doing a analysis of the tissues in any area, to differentiate the pressures by differentiating the density of the area, so that we know where that noodle is, which is useful in hundreds of different applications. So, the answer is it is not available in the prior [art], which is the CompuDent and the wand technology -- the earlier wand technology, but it is embedded in the STA and it will be embedded in the technology going forward in the medical area.

Okay. So that's what you guys have been working on as far as your research goes for this past year?

Yes. We have had clinical studies in the area of epidurals and animal studies and interarticular injections, and another study with a potential partner in self-administrative -- self-administered injections. What has allowed us to do the first two of those is the pressure-forced feedback technology.

The third is a -- does not require that, the reason for usage of the technology, and that is for pain reduction. But going forward, we would think that the pressure-forced feedback elements is what will allow us to enter into many different areas with many different instruments and different handpieces.

Okay, that answers my question. So this year sometime is what you are hoping to break into that area?

Yes. We have been working -- we have been trying for a couple of years now to do a -- our first medical deal which is the all-important one. You have heard from us in the past about a large pharmaceutical company that we were working with in one of these areas.

We continue to hope that we have an arrangement with them, but we have now reached out to another large pharmaceutical company who we are in negotiations with. And what we are looking forward to is finalizing an arrangement with that company sometimes this year.

Right. Good luck to you. Hopefully that works out.

Thank you very much.

Thanks, Tom.

(Operator Instructions). At this time, they do not appear to be any further audio questions. Please continue with any closing comments you may have.

Okay, think so much. Before we conclude for the day, why don't we take some closing comments from management? Joseph, let's start with you.

Thank you very much, Dodi. I would like to thank the shareholders for being patient with this Company. We are making strides, moving forward in the -- I believe a positive direction. Part of that is, obviously, with our Chairman, Mr. Osser working with us and the Board, as well as Joe Martin, and we are looking forward to increasing our sales and putting the company into a positive cash flow position later on this year with only greater expectations for the future. Thank you.

Thank you, Joseph. And Leonard?

I would also like to thank our shareholders for being very patient over the years. I believe that we have an excellent team on board to take advantage of the technology that I believe is a major technology and I think that we will be making significant progress this year in -- certainly in the dental arena and I'm optimistic in the medical area as well.

Thanks, Leonard. Before we call it a day, I would like to remind you, if you are not already receiving information on Milestone via fax or e-mail and would like to do so, please give the offices of Elite a call. Our phone number is area code 407-585-1080, or you can reach us via e-mail at mlfs@efcg.net.

So with that, I would like to again thank the management team of Milestone for providing clarity into the results and providing some perspective on what's to come in the following months. So that, I would like to wish everyone a great day. Thank you.

Thank you, Dodi. Good day.

Ladies and gentlemen, this does conclude our conference call for today. We do thank you for your participation in today's call. If you do need to listen to a replay of this conference, you may do so by dialing either 303-590-3000 or 1-800-405-2236. You will need to into the access code of 11127369 followed by the #. The conference will be available after 6.15 PM Eastern today through Thursday, June 25 at midnight.

Again, we do thank you for your participation. You may now disconnect your lines.