Materion Corp (MTRN) 2004 Q4 法說會逐字稿

Good day, everyone, and welcome to the Brush Engineered Materials Incorporated year-end 2004 Earnings Release Conference Call. Today's call is being recorded. With us today for opening remarks and introductions, we have Mr. Michael Hasychak. Mr. Hasychak, please go ahead.

Good afternoon, this is Mike Hasychak, Vice President, Treasurer, and Secretary. With me today is: Gordon Harnett, Chairman, President, and Chief Executive Officer; John Grampa, Vice President of Finance and Chief Financial Officer, and Jim Marrotte, Vice President and Controller.

Our format for today's conference call is as follows: John Grampa will comment on the fourth quarter and 2004 results and the outlook. Thereafter, we'll open up the teleconference call for questions. A recorded playback of this call will be available for 15 days by dialing area code 719-457-0820, access code number 650940. The call will also be available on the company's web site, beminc.com, for 30 days. To access the replay, click on Quarterly Earnings Conference Call under the Investors page. The broadcast requires Real Player software, which is available as a free download from the icon as indicated.

Any forward-looking statements made in this announcement, including those in the outlook section, and during the question-and-answer portion, are based on current expectations. The company's actual performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors. Those factors are listed in the earnings press release issued this morning. And now I will turn it over to John Grampa for comments.

Good afternoon. Thanks, everyone, for joining us today.

As I have in the past, I will review the current quarter, and then the year and then we'll follow that up with comments on the outlook for the first quarter 2005, as well as the full year 2005, and then we'll open the call for -- the call for questions.

To begin, we'll start with the fourth quarter. You will recall that we entered the fourth quarter of 2004, with a slowing order entry rate. Our backlog coming into the quarter was weaker than it had been in the previous three quarters. Automotive Electronics had weakened, and there were mixed signals coming from the Telecommunications, Computer and Semiconductor markets, as well as Japan had weakened and Southeast Asia began to experience slower growth.

As a result, after four consecutive quarters of growth, the average of 26 percent we announced during our last teleconference that we expected a growth rate of 8 to 12 percent in the fourth quarter of this year -- of this past year. We subsequently reinforced that sales range, and estimated that earnings would be in the break even to $0.10 per share range. And as you know, today we reported results consistent with those projections. Sales for the quarter were up 10 percent to $116 million and earnings, or EPS, was near the high end of the published range at $0.09 cents per share.

The weaker fourth quarter condition in the Electronics Equipment market was created by both lower demand and some inventory corrections. This, coupled with a weaker Automotive segment translated into a weaker mix, and in turn yielded lower gross margins than we would have otherwise expected by about a point or so. The full impact of the weaker mix was partially offset by improved manufacturing performance and lower overheads. The conditions in these markets were partially offset by stronger demand in our other markets, specifically Semiconductor, Data Storage, Oil and Gas, and Industrial components.

We continued to make good progress in the quarter with our new products, as well as the new market initiatives that we have discussed in the past. We also made good progress in our initiatives to reduce costs and to lower working capital further.

Now, I would like to review the year. Beginning with the fourth quarter of 2003, our order entry rate, and our sales levels improved significantly, continuously through the first half of the year, due principally to improvement in the Electronic Equipment market. We saw momentum gained and improving conditions begin in our other markets as well, starting the second quarter of the year, and continuing through the third and the fourth quarters. Then, as I indicated earlier, we did see some softening in some of the markets affect the fourth quarter.

Throughout the year, we advanced in each of the five key areas that we have been telegraphing as important to our overall progress. We advanced in most of these areas during the fourth quarter as well, and I would like to review the year's progress.

One very important area was strengthening the balance sheet and reducing debt. Coming into 2004, total balance sheet debt, plus key off balance sheet building and equipment leases, and our precious metal consignment obligations, had been reduced by almost 40 percent or $81 million since the end of the year 2000. In 2004, this was reduced by an additional 22 million which brings the four-year total reduction to over 50 percent, or over $100 million. Much of this was through improved working capital management, and over time, we have accomplished a lot with our programs to improve inventory turns and speed our receivables collections.

In the fourth quarter we continued to advance in both of those areas as well and we expect continued progress moving into 2005. The combination of that, plus the refinancing in the fourth quarter of 2003, the equity offering closed early in the third quarter of 2004, and the cash generated from operations in 2004, had significantly strengthened the company's balance sheet. The 2003 refin -- refinancing lowered our borrowing costs, improved earnings, improved cash flow, added flexibility, and added liquidity. We amended and extended that agreement during the fourth quarter of 2004, and that amendment lowered borrowing costs further and provided even more flexibility in liquidity.

The equity offering raised approximately $39 million. Thirty-nine -- 31million of the 39 million was used immediately to pay down debt. Our debt-to-total capital ratio is now approximately 25 percent, down from around 40 percent before the offering. Due to the continuing strong cash flow from operations, our cash balance climbed $23 million in the fourth quarter, to $49.6 million at year end. A portion of the year end cash balance was used to repay approximately $18 million of term loans in January of this year, and subsequent to that, our debt-to-equity -- our debt-to-debt plus equity was approximately 20 percent and there was zero drawn on our $105 million line of credit. We ended the year with significant financial flexibility.

Another important area of focus has been reducing overhead. You will recall that over the past three years, we have been successful at controlling overhead. In 2004, total overhead, including overhead above the gross profit line and SG&A, increased only 1 percent compared to prior year. In the fourth quarter of 2004, total overhead was approximately $11 million below the quarterly rate that existed in the beginning of 2001.

A third key area has been our effort to improve margins. And this is occurring in all of our businesses, but it's been most notable in our Alloy business which was the first to use the Six Sigma and Lean manufacturing techniques. We are rolling this program out company-wide. Gross margin in the fourth quarter was about half a point higher compared to the fourth quarter of the prior year, and for the year, gross margin percent was up about 4.2 points. That's solid progress with margins in spite of about a point to a point and a half negative effect due to currency and metal prices.

The fourth quarter improvement compared to the prior year also came in the quarter where our mix was weaker than had been in the earlier quarters of this year and we do expect continued improvement in margins in 2005 as well. We've also expended consumable energy to broaden and add to our revenue base. Our long-term goal here is to lessen our dependency on any single market, especially the Computer and Telecom market.

We've been focusing on new products as well as new markets and new geographic growth regions, particularly Asia. We made progress here throughout the year and that progress continued into the fourth quarter. Our International business, led by growth in Asia, was up 32 percent in 2004. Our International business is now 33 percent of the company.

We continue to make good progress with our new Alloys as well as our new ToughMet materials, and we also made good progress at Williams with materials for depositing thin layers of film on silicon wafers as well as with a new hermetic seal for military and communications, and with new materials for magnetic data storage. Roughly a third of our growth in 2004 company-wide, is from our new products, and other -- and our other revenue enhancing initiatives.

Lastly, important to our overall improvement is the state of the general economic environment and the markets that we serve. We have worked to ensure that we participate as markets turn, we have improved our internal processes, our response times and our service levels. We're faster, we're more reliable, and we're more competitive. And with the U.S. manufacturing economy starting to expand in 2004 and that expansion accelerating and becoming broader based as the year progressed, it led to good growth for us domestically. For the year in total, our domestic growth was 20 percent.

Almost all the goals we set in each of those five areas have either been met or exceeded and we continue to make good progress with each and expect to continue to make good progress moving forward. The fourth quarter was the eighth consecutive quarter where our sales were higher than the comparable quarter of the prior year. And it was the tenth straight quarter of very meaningful quarter-over-quarter improvement in earnings, and the fifth with top line growth in the double digits.

On the $10.4 million increase in revenue in the fourth quarter, compared to prior year, gross margin dollars increased about 2.8 million or roughly 26 percent. Approximately 2 million of the sales growth in the fourth quarter was copper price and currency, and after considering the effect of currency and metal prices, 33 percent of the sales growth flowed to gross margin. While lower than what we had experienced in the first three quarters of the year, this improvement confirms the leverage from the actions we have taken, and we expect this leverage to continue moving forward.

Now, turning to 2005. For the year in total, we are confident that we'll continue to advance the company. Our global markets are expected to continue to present us with solid growth opportunities. Coupled with our ongoing growth and margin expansion -- expansion initiatives, we believe the sales growth will be consistent with our previously stated range of 8 to 12 percent. With the slower start to the year, the lower end of that range, may be more realistic to expect at this time.

We expect to control overhead growth, to less than half the sales growth rate through the year. We believe that gross margin will grow by 1 to 1.5 basis -- 1. 5 points, and that is dependent upon mix. We anticipate making continued progress in working capital and believe that capital spending will remain well below depreciation rates.

Given the debt reduction of 2004, we expect interest expense to be approximately $2.5 million lower in 2005 than it was in 2004. And since the company had sizable off-balance sheet deferred tax assets, the federal tax expense on domestic income will be limited. We expect total tax, which includes federal tax, plus foreign taxes, as well as state and local taxes, to be in the range of 300 to $500,000 per quarter during the year 2005.

Our $30 million subdebt becomes prepayable in December 2005. As the year progresses we will assess its prepayment. Therefore, our current estimate is for sales to be in the 535 to $555 million range, and for earnings in 2005 to be in the there $1.30 to $1.60 per share range.

As for the first quarter, given the mix shifts and the softness we saw in certain of our markets during the fourth quarter, we expect a slower start to the year. Our order entry pattern is, however, improving, as is our mix. Our lead times, though, remain short, meaning changes in order rates can quickly translate to higher or lower sales in the quarter. And with incremental margins in the 35 to 50 percent range, small changes in revenue can have a noticeable effect on earnings, as can changes in mix. And we do remain very sensitive to volume.

Assuming that the order entry pattern continues to improve, and that our operating conditions remain favorable, we would expect revenue for the quarter to be in the range of 125 to $135 million. That's on top of last year's 26 percent first quarter growth. Earnings would then be in the range of $0.25 to $0.30 a share compared to last year's $0.19 per share after adjusting for the mid-year 2004 equity offer.

Moderator, those are my prepared comments. We'll now open the call for questions.

Thank you very much, sir. Our question-and-answer session will be conducted electronically. If you do have a question or comment at this time, please press star followed by the digit one on your touchtone telephone. And we'll go first to Mark Parr with KeyBanc Capital.

Hello. Hey, good afternoon.

Good afternoon.

Hey, Mark.

Hey, John, I had a couple of questions. First, I just would like to get some more color on your comments regarding the reduction in overhead. I think you had made a comparison between the fourth quarter of '03, and then was it the fourth quarter of '01?

No, Mark. Over the past several calls we have referenced our overhead reduction initiatives and we had spoke to a baseline that was in the quarters just preceding the downturn of 2001 whenever we began the initiatives.

Okay.

So, comparing the second quarter 2001, comparing the fourth quarter to that baseline, we're down $11 million. You will recall that we had also talked about a target of 35 to 40 million, or somewhere around $10 million a quarter, and that was the goal that we had set to achieve as we -- as we moved through the end of '03.

Okay.

And I referenced the fourth quarter to that point for that reason. Okay.

So the fourth quarter already -- you said your fourth quarter overhead was a little bit lower than the target level of $10 million?

That's correct.

And could you give us the context of how the fourth quarter was, say, compared to the rest of the quarters in '04?

Actually the fourth quarter was a little higher than the third quarter and I will let Jim Marrotte, our controller speak to that.

Thanks, John. To be honest with you, Mark, I don't have the -- I don't have the all the overhead numbers for the first two quarters of the year. But I think it's probably up -- up a tad, but not significant.

Is that -- I mean, you say by up a tad, I mean, is that -- I mean, can you talk to any sources of the -- of the increment on the up side?

The one thing that happened here in the fourth quarter is we had our general salary increase kicked in, in late September. So our annual increase, you will have a slightly higher salary base in the fourth quarter than you did in the earlier part of the year.

Okay. All right. That's helpful. I appreciate that. Now, just if I could just follow along with one additional question, and then I will pass it off. John, you indicated anticipation for 100 to 150 basis point increase in gross margins in '05. Could you give us a little color as to the anticipated sources of that margin expansion?

I can't break it down specifically, Mark. Part of it is the obvious shift in mix that I referenced, where we'll see some mix benefit coming in the first quarter, and we'll see the benefit that you get from the lift in the first quarter revenue, and the production to match that. So it's a combination of those two factors principally.

Okay. Terrific. Thank you very much. I'll pass it on.

Our next question come will come from Anthony Sorrentino, with $orrentino metals.

Good afternoon, everyone.

Hi, Anthony.

Hi. I noticed that copper prices impacted the company's earnings negatively in 2004. Do you expect to be able to more fully recover the copper price increases in 2005?

The answer to the question is -- is, we do anticipate recovering the part of the market that is available to us. As you know, not 100 percent of our business on the copper side is pass -- is direct pass through, it's roughly 60 percent. We captured a part of that through the year, 2004, particularly as the year progressed, and we anticipate capturing another piece of that in 2005, perhaps up to a number more in the order of magnitude of $2 million.

In addition, one of the issues that we had in '0 -- in 2004 was, because of the history of the company, and the financial position that we had in 2003 and in 2002, we were not able to put in place, the lines to hedge copper, and therefore, we came through 2004 without copper hedges, and therefore absorbed more than what we would typically absorb in a price increase of that size. We do now have copper hedged for a portion of 2005, so I do not anticipate the same risk.

Okay. Also, related to your your now better financial position, what are your priorities for are cash flow?

Our first priority would be to ensure that as we get towards the end of 2005, we have the financial flexibility to pay down that expensive subdebt, that $30 million of subdebt that becomes payable near the end of 2005. Beyond that, we will pay attention to augmentation opportunities to support our businesses, particularly the growth opport -- opportunities that might exist in and around the markets that Williams Advanced Materials supplies.

Would that mean small acquisitions to fill in your product line?

Yes. That would be our principal goal.

Okay. Very good. Thank you very much.

Our next question will come from Bob Shenosky with Jefferies & Co.

Good afternoon.

Good afternoon.

A couple of quick ones, John. The first: Just, can we clarify the tax rate? You said 3 to 500k per quarter. Is that your cash tax rate?

That would be both cash and expense. Three to $500,000 per quarter would be the income tax expense that you would expect to see in the P&L.

Okay, so both cash and book then. Okay and then CapEx for '05?

We've suggested in the past that -- that we've had a number in 2005 of around $15 million, and I think that's probably still a fair range, 15 to 17 max.

Are there any special projects in there?

I'm sorry Bob, we could not hear you.

Sorry. Are there any special projects in there of any size?

There is one at Elmore that we would anticipate that we would be approving, have not approved it yet, that's related to storm water runoff, an environmental requirement under the national pollution discharge eliminate standard. We estimate that that could be a couple of million dollars approval. So that's an environmental one. But that's -- that's the largest one in that entire group, as I recall.

Okay. Great. And then just as a follow on, you talked about first quarter weakness. In doing some channel checks with other companies, we're seeing some of the same issues, but they -- they broadly define that as -- as inventory build, especially in Automotive. Is that consistent with what you are seeing? Or are there any pockets of weakness that we should be cognizant of?

Is there any pockets what?

Pockets of weakness that we should be cognizant of?

I'm not aware of any specific pockets of weakness. As John pointed out in his remarks, it was slow towards the end of December, but actually the incoming order rate has really started to improve. I would say that the feedback we get in most cases remains, you know, just a continuing mindfulness on the part of our customer base to keep an eye on inventories. But encouraging is that it looks like orders are filling in, and so I think at this stage, we're cautiously optimistic. But I don't see, Bob, any specific areas. If I had to pick one, I would say U.S. Automotive. We've benefited from strength in the European Automotive sector this past -- past year, based on their electrical content. So, we've been pleasantly surprised by Automotive in Europe.

Great. If I could throw one last in. You've given us an outlook for '05 in terms of revenues. Can you offer any color on how Williams will sit into that number?

I think, you know -- we believe that the two important businesses for us will be both Williams and Alloy. I mean they are our two largest ones, and I would expect that the earnings leverage would be strong in both of those as we expect them to grow. So I think, you know, that we -- we believe that both of them will continue to contribute to our -- our -- both revenue and, importantly, profit increase.

Okay. Thank you.

We'll go next to Tim Hayes with Williams Advanced Materials.

Thank you. Good afternoon. Two questions regarding gross profit and margins. Do you have the specific gross profit numbers for the segment, the segment?

Bear with me. Tim, you're talking about the year?

No, for the fourth quarter.

For the fourth quarter?

Yes.

Yeah, we have them here. [voices speaking at once] Do you want to ask your second question? [laughter]

Sure. You said in '04 that the gross margins were negatively affected by one to 1.5 percentage points because of exchange rates and metal prices. If that were to go completely away then that -- is that the -- that would be the guidance that you are giving for '05? Is -- is that the reason why you expect '05 margins to be higher or do you still see some drag from exchange rates and --

No. Actually, Tim, the metal prices and exchange rates are in the top- line number in both years. The progress in 2005 on gross margin over 2004 levels will be driven by a combination of the growth and continued progress in cost reductions.

Okay. Thank you.

As far as your margin question, you were asking the fourth quarter?

Right.

The Metal Systems was 21.9 percent, and Microelectronics is 22.1.

Okay. Thank you.

We'll go next to Martin Heilbrim with Winchester Group.

Hi. A question on your LIFO reserve. You were up what -- you were up about $6 million for the nine months. What was your LIFO reserve in the fourth quarter?

LIFO reserve for the fourth quarter?

The total amount.

As you know, the reserve line this year primarily because of the high price of copper.

Oh, is it? That's the view on FIFO? I guess your nine-month earnings would be up by over $0.20.

The LIFO reserve ended the year at about $32 million.

$32 million. So basically for the year your LIFO reserve was up roughly $9 million?

Yes. That's correct. Yep.

So that's about -- well, with your tax rate, that's about a $0.40 a share hit.

Yeah, but there's an offset on that LIFO reserve movement in the fact that the FIFO value of the inventory is higher as well. So, it doesn't necessarily all flow through to the P&L.

Well, looking at your FIFO inventory, you're turning -- turning your inventory over just about once a quarter. Is that about right?

On a LIFO basis, we're turning it over about once a quarter.

I'm talking FIFO, because really it should be judged on FIFO.

On a FIFO basis, it's less than once a quarter.

That's the way everybody else calculates it.

Okay.

Now, on your increase of that .1 and a half that you mentioned, that $9 million was that the 1.5 points?

The margin increase year-over-year? No, the increase, the -- you know the effect of foreign exchange on copper prices.

Would that LIFO increase be included in that 1.5 effect?

The -- the numbers that we quoted were what flowed through, what we believe flowed through -- through the P&L. Well, the -- putting in the LIFO reserve would be in your P&L. [voices speaking at once] Yes.

To the -- to the extent it's not covered by inflation in the mix.

Right, in the FIFO value, as well.

Correct.

Thank you.

And just as a reminder to our phone audience, that if you do have a question or comment, please press star one on your touch-tone telephone. And we'll go next to Arthur Winston with Pilot.

Hi. It seems that -- and tell me if I'm not accurate, but we have a jewel in Williams and then we have the rest of your company. And it seems like the -- I wonder, a, first of all, is there any business connection between Williams and the rest of the businesses, in terms of operating them?

No, not -- not much.

So why don't we separate -- was there some reason not to separate your company into two companies; where we have one really good one and one that we're improving. Would that make any sense to you guys?

I don't see how it makes sense to have two publicly held entities with all the duplication of costs associated with that.

Yeah, and that's that's the main reason, because it would be so costly to operate with all the Sarbanes Oxley and all of that stuff?

Two even smaller microcap companies.

Oh, yeah.

And, in fact, with he do benefit from the international side, there are definitely opportunities that we do take advantage of each other's resources, particularly in the -- in the Asia region. And there are -- there are definitely common characteristics in the sense that we are both a materials/metals, you know, businesses.

Okay. My second question, the low tax rate, for how long could that go on for? I mean, what kind of time period are we talking about?

Well, certainly at least for the next -- the next year. You look back at the deferred tax assets that are off balance sheet, we talked in the past that those were sheltered in the neighborhood of $50 million or so of pretax income and that's still the case.

Good. Okay. Well, thank you very much.

And once again, just as a final reminder, if you do have a question or comment, please press star one at this time. And we'll take a follow-up question from Mark Parr with KeyBanc Capital.

Thank you very much. Hey, John, just on this copper pass through issue. I think in previous calls you had indicated an expectation of recovering as much as 5 million in '04. On this call, you are talking about a 2 million -- perhaps a $2 million number. Could you give some color in terms of -- at least on the surface it appears to be a change in your sentiment for this area?

Actually, Mark, there's not a change. In '04, we were penalized by about 7.5 in total.

Okay.

Not being able to recover about half of that would be normal. We would have hedged. We probably recovered 2 to 3 million in '04, and we anticipate recovering another two in '05.

Okay, so there's really no change there. So, that's helpful. Another thing, Gordon, I was -- I was wondering if you could help us a little bit. I know this is kind of a difficult question in looking at, you know, the contributions of, you know, new products, renewed marketing, you know, restored customer relations, you know, versus what the underlying market is providing. And in the fourth quarter, you had 10 percent growth. Maybe that's a good starting point. You know, first quarter you are looking at what, flat to up 10 million?

Let me -- that's a good question and I kind of anticipated it. So let me tell you what -- what I conclude and I will give you just some reference points. Of the $95 million in growth that we had year-over-year, I would estimate that slightly more than a third of that came as a result of our new product and our new growth initiatives. So, it was fairly significant, and it was gaining momentum throughout the year.

The return of the Computer/Telecom market, in my view, represented slightly more than half of our revenue increase. And the balance would be our normal efforts to grow our other businesses, our traditional applications. So, an important part of that growth in this past year, as I said over a third of that in my view, as best as I can calculate this stage, came as a result of our -- of our new initiatives and it was pretty widely distributed. I mean, it occurred in Alloys, Beryllium products, WAM and TMI. All four of those businesses did generate good revenue improvement as a part of their market initiatives.

And looking -- if I could just follow on to that, you know, looking at the guidance that you have given for '05, can you talk a little bit about what your expectations are for new products contributions in the growth outlook?

I think, again, we would suggest that, you know, a significant portion of that growth, 40 to 50 percent of that could be coming from, you know, the new product initiatives. We believe that Domestic Strip marketplace will be relatively flat in -- in '05. The growth that we would expect to see is Strip which is synonymous with connectors again, if it occurs, is going to be primarily in Asia.

But we see good growth in the Oil and Gas area. We see good growth in our Bulk materials, going into the Heavy Equipment and increasingly, even some of the Aerospace applications. So the growth that we anticipate this year will be, I would say, more than ever before heavily dependent on these initiatives, and some of these new marketing programs that we have underway, not the anticipation of rapid or continued high growth from Computer/Telecom.

Okay. Just one more follow-up on the growth side. You've given -- you've given -- you made some comments on the call that, at least on the surface, don't -- may not seem totally consistent. Because on the one hand you talked about growth for '05 coming in at the low end of your normal range, and then on the other hand, Gordon, I think had you mentioned in your comments, that you're seeing some nice recovery in your order book, and maybe that's the last couple of weeks. And at this point, would you be cautiously optimistic. And I was wondering, maybe, if -- if some more color might help to reconcile those two comments?

I think it is, as John said in his remarks. We don't have great visibility, and are still, I think, a little bit cautious. I mean it was very clear that the order rate was soft at the end of the year. It carried, you know, into the first part of January. I would say the last couple of weeks are encouraging. But I think it would be -- it's difficult to say with any precision, you know, whether it will be at the low or high end, and I think therefore we thought it was prudent to kind of provide guidance towards the -- towards the -- a more moderate rate of growth at least in the first quarter.

Terrific. Well, good luck. Congratulations and good luck with the -- you know with the internal growth initiatives.

Thank you.

We'll take a follow-up question from Tim Hayes with Williams Advanced Materials.

Thanks. I saw some outlooks for the Semiconductor market that has sales up 5 percent or so this year. Do you see any different trends though within the 200-millimeters versus the 300-millimeters?

We don't supply heavily into the Semiconductor market at this stage. So neither side would I be able to provide good information on. Interesting enough, Williams is starting to target the Semiconductor market, with their vapor deposition products, and believe that they will tending to focus on the mature side of that -- the 200-millimeter wafer segment, believing that we can provide service and products that are better suited to that --- to that segment. But right now, we are not heavily dependent on the Semiconductor market for our growth rate.

Operator, I would like to also, from the company's perspective, correct the introduction of Mr. Hayes. He is from BB & T Capital and not from Williams Advanced Materials.

Thank you, and then Mr. Hayes did you have anything further?

No, that's all, thanks.

Thank you.

Mr. Hasychak, there are no further questions at this time.

We would like to thank everybody for participating on the call this afternoon. I will be around for the remainder of the afternoon, answering any other questions. My direct dial number is 216-383-6823. Thank you very much. And that does conclude today's teleconference.

We'd like to thank everyone for their participation. We wish everyone a good day, and at this time you may disconnect.