RCI Hospitality Holdings Inc (RICK) 2010 Q2 法說會逐字稿

Greetings and welcome to Rick's Cabaret International, Inc. second quarter conference call and webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator instructions). As a reminder, this conference is being recorded.

On the call are President and COO, Eric Langan, CFO, Phil Marshall, and Investor Relations Counsel, Allan Priaulx.

It is now my pleasure to introduce your host, Allan Priaulx. Thank you, Mr. Priaulx you may begin.

Thanks, Doug.

Good afternoon. I am Allan Priaulx, Investor Relations Counsel for Rick's Cabaret and welcome to our second quarter 2010 conference call and webcast. In a moment I'll turn the call over to Eric Langan and Phil Marshall, and they'll present our second quarter results and then answer any questions you might have.

Before we begin, I would like to call your attention to our Safe Harbor statement which is included on Slide 2 of our PowerPoint presentation. It's available on our website, and at www.precisionir.com. Please take a good look at the statement as this conference call may contain forward-looking information within the meaning of section 21-E of the Securities and Exchange Act of 1934. I would also like to remind you that Rick's Cabaret files reports and other documents with the Securities and Exchange Commission and all of them are available on our IR website which has a new address, www.Ricksinvestor.com. This a new discrete investor relations web address for our investors. It's different from the www.ricks.com address which formally was in use. Also I want to invite anyone in the New York City area to attend our due diligence event tonight at Rick's Cabaret in Manhattan. We start at 6:00 PM EST and you'll have a chance to meet Eric Langan and to get a guided tour of the club and see how we conduct our business at the club level.

And now I'll turn the call over to Eric Langan. Eric?

Thank you, Allan. And thanks, everyone for calling in.

I'll begin the presentation with a quick overview of 2010. We're reviewing our second quarter 2010 performance, the impact on our bottom line emphasis in this quarter, the impact of the debenture redemption that we did here in May, and update you on the balance sheet a little bit as well, and an outlook for the remainder of the year, and then conclude with a question-and-answer session as always.

For a quick snapshot of 2010 versus 2009, you can see our total revenues were $22.5 million versus $18.4 million, or a 21.9% increase over last year, and our net income was $2.94 million versus $839,000 last year. Earnings per share of $0.30 on a fully diluted basis versus $0.09 last year. Same-store sales for the quarter were up 14.9% over the second quarter of last year.

Our primary factors were improved customer spend. What we really have seen this quarter was return to the -- what I call top of the menu spending, where guys would get a bottle menu or a menu and they would go down and look for the -- you know, a medium-priced or small-priced bottle, to order a bottle so they can continue to get table and bottle service and VIP service, back to the, you know, just give me the top bottle here on the menu, buying the most expensive thing on the menu. Which definitely helped in that quarter. We also reduced our marketing expenses in this last quarter. As we said we would at then of the December quarter -- excuse me. And we had a turn around in Las Vegas by changing a few things out there, and seeing as we matured and learned that market a little bit. I would like to let everyone know our cash flow does continue strong on a going-forward basis. We believe that will continue.

Our aggressive marketing and other improvements have continued to pay off with the very strong sales. We cut back a lot of marketing at the end of December. We let that -- we let that marketing not run all the way through the end of March 2010, and yet, we still continued to see our revenues increase month after month in those markets, especially in the Dallas/Fort Worth market. And we also had, of course, the big boost from the Super Bowl and the MBA all-star game.

We've moved our focus to the bottom line, instead of top line revenue. In the October to December quarter as we told you, we were really focused on top line growth. We wanted to keep our clubs busy, regardless of whether we were able to make a bunch of money off of the customers coming in. We wanted to keep our clubs busy. We wanted to be the busiest club, because we had seen in September, a slow turn around was coming in the economy, and it seemed like the customer was starting -- consumer spending was starting up in our locations again. And so, as that happened, we wanted to keep the customers in our club so that, as we were able to go in an bill the top quality girls and as the quality of the entertainers were trying to settle in and find their home for the future, where they were going to work, that they would be attracted to our locations because we were the busiest. As we moved into the January quarter, we changed that focus to more of a bottom-line emphasis. We wanted to have customers in our building, we want to be busy, but we want to make money off of those customers as well.

So as we move forward, and as we moved into this quarter, we have gotten very careful with our marketing costs. We have also been able to pass on selective price increases through the last three or four months, and cut back on happy hours and cut back on certain specials and promotions that we have ran that increase our cost of goods in the past, and maybe bring more customers in but not necessarily a customer that we make money off of.

We have also focused in this quarter on cutting our operating expenses, better use of purchasing power, using our regional efficiency so that our management, our management efficiencies are better, and really leaning out our corporate structure. Our goal is to continue the revenue growth and build the strong bottom line and earnings at the same time as we grow our revenue.

February 2010 was very strong for us, even without the contributions from the Super Bowl and the pro-bowl, and the NBA all-star game. But was really impressive was March 2010 was a very broad-based performance at most of our clubs. New York had an amazing month. The most profitable month ever for that location since it opened in 2005, and a lot of our other locations continued that. And as you have seen from our gross revenue report, that we put out April, it was a very, very strong growth -- revenue month for us. We have free cash flow still going forward basis of about $1 million a month. And also, we had onetime expenses in this quarter from VCG-related legal expenses, from the acquisition that we were unable to complete, of about $246,000 that affects our earnings.

We are very optimistic that we will achieve our guidance in 2010. While there are several factors that will weigh into that on a going forward basis, we believe that we're poised and set to meet those challenges and we'll continue to perform. Our big-ticket customer is returning to our A-clubs. You know, like I said earlier, the customers are ordering from the top of the menu, ordering the more expensive bottles, and champagnes and wines.

And our B clubs, are -- we're seeing the increase of the $30 to $50 customer. Where he had kind of disappeared and was coming in not at all, or was coming in once a week, now we're starting to see him a couple of times a week, that regular customer. A lot of people refer to him as the bar flies that sit around the bar, drink, and spend that $30 to $50 each visit, but they are more frequent visitors. And we're seeing the return of those customers as well. But the main thing that we're seeing is just the consistency and return to more normal visit patterns and more normal spending habits, and that's what you have seen in our April sales numbers.

In our April sales numbers, you have seen that that's a typical trend. Last April was a record month for us. A lot of that record was due to the Las Vegas location and the change in the marketing program in Las Vegas -- excuse me -- but what we really see right now is a -- is a trend to the normal. So that January, February, March are big months, then April is your off month because of Easter, because of tax times. And we move into May, and May becomes a much more solid month. And then we move into our summer, June, July and August. And then we have the September when kids start back into school, which should typically be an off month again. So we'll kind of watch through this summer to see how those trends continue, and see if it looks like we're going to get on -- the consumer is going to be on a more normal spending pattern for entertainment.

The Las Vegas revenue was lower, but our net revenue after marketing costs was actually higher. And we were profitable in the second quarter compared to a $633,000 loss in the second quarter of last year. The real turn around there is the taxicab marketing costs have stabilized at about $20 to $30 a head. Paying $30 during prime time hours and $20 during off-prime hours. So far, all of the clubs have held at these levels. If the other clubs decide not to play fair in the future, and maintain the stability that has been created in the marketplace, we will be aggressive again. We are hoping at this time that everyone will continue to play and that we'll use, like every other market in the country, we'll use just standard marketing procedures with billboards and advertising and newspapers and magazines and what not, but if it gets back into a taxicab war, we're prepared to play. But I believe at this time that everyone is quite satisfied with where the paths are and building their business again, instead of losing money.

The big question that remains in Vegas, and I'm sure all the casinos and everyone else wants to know as well, is will Vegas again attract the profitable travelers. While Vegas is packed with travelers, and full, a lot of nights, especially on the weekends, it's not the big-ticket customer. It's not the grade -- the club A customer who is buying bottles. We're still seeing a lot of lower-end spending in the Vegas market, and hopefully, as the economy comes back, we'll see that big-ticket customer back there as well.

As we discussed in New York City a record month. In March we're seeing, you know, strong numbers in New York. In that club has always performed well for us. One of the big questions that I'm sure a lot of you have, and we'll just take care of that while we're on this slide, is I know there was a recent ruling, saying that the state of New York -- the city of New York had closed down some of the clubs. Our club is not affected by that ruling. That ruling is strictly for locations that operate under a 60/40 pretense, where 60% is non-adult and 40% is adult. The ruling actually says they are now not operate the 40% in that business as well. Nothing has changed at this time. I think there's some appeal process or some stuff going on right now. But it's definitely getting a much shorter lived time for those locations in my opinion, and I believe that if the City is successful in closing that loophole for the 60/40 clubs, it will actually increase Rick's business. The other current thing, like I said, we're seeing more of the big-spend customers, and that's really, you know, the New York market.

To give you an idea of our debt overview. On May 5, 2010 we converted $7.2 million in convertible ventures that were issued in August of 2009. Now, we believe the result of this is a strengthened balance sheet as we drop our total debt to under $32 million, and a savings of $720,000 a year in annualized interest expense.

We are also looking and considering and aggregating some of our mortgage debt and maybe refinancing some of our mortgage debt. The remainder by $32 million, about $27 million of that, or $25 million -- somewhere between $25 million and $27 million of that is tied to real estate. And we -- we have -- been discussing with different individuals and some funds about restructuring that debt into a single loan, and putting it into a more long-term debt. We will continue to use our free cash flow to buy back the put options, or at least -- or taking -- and taking that stock out of the market. As we have always said, that we looked at those put options as basically an interest-fee form of debt that could self-liquidate if the stock performed. Unfortunately the market had a little setback when Lehman went down, so we have been buying those put options back, but there's plenty of cash flow being generated from the businesses that we bought with that stock that -- to buy that stock back, and eventually it will self-liquidate, and that cash flow will stay in the Company.

I think the most important part of our strategy going forward is our growth strategy, how we are going to grow. The organic growth continues, and it continues to help increase the generation of free cash flow. We do anticipate some type of acquisition every quarter. That is our goal to continue on one acquisition per quarter basis. We were busy in the second quarter with the Super Bowl and the NBA all-star games, and of course with the VCG, but we have resumed active discussions with many other potential targets. I believe we'll have an acquisition closed by the end of this quarter that we're in now if not sooner, and we're looking for an acquisition for the next quarter that -- that we're in -- in discussions with as well.

We're going to continue to acquire in the three to five times EBITDA purchase range, and we will continue to seek properties that will be significantly accretive, and immediately accretive. We're looking on the East Coast, and the West Coast, but we're also looking where we get the best cluster benefits in markets that we exist in now. We believe those are the best clubs for us to take over, operate, and to make sure they complement our existing brands, instead of competing with our existing brands.

Generally the plan of one acquisition per quarter is very easily achievable by us. We have about $12 million in cash on hand right now. The marketplace knows that we are the serious buyer out there. We can do cash, or, you know, owner finance. We can issue equity if our equity is in the right spot. But right now we're being very picky in the properties that we are seriously considering. We are not wasting a lot of time flying all over the country looking at different locations. If the numbers aren't right -- if the numbers don't make sense in the first place, we're just really not even looking right now. We're really looking for locations that are already profitable and making money.

We're still watching the overall economy closely, and if we continue to see the strength-gaining this summer, we will start becoming more aggressive in our acquisition strategy. We are also looking to try to close a mega club in the next -- within the next year if not sooner to make sure that we can continue the growth, looking for another Tootsie's type acquisition that we can pick up and add to the Company. Our goal is to identify those high quality targets and buy them for the right price and not just buy something to buy something. We went through that in 2008. We learned from that. We're not going to make those mistakes again. We're going to be very focused on our acquisitions and make sure that they add to our bottom line.

That ends the formal presentation. I would like to invite everybody out to the club tonight. I'll be there from 6:00 PM to 8:00 PM at 50 W. 33rd in new York City if you have a chance to come by for some due diligence, and for those of you that can't make it by to answer your questions personally, I'd ask you to go ahead and the Operator can queue you up and we'll get started on our question-and-answer session.

Thank you. Ladies and gentlemen, at this time we'll be conducting a question-and-answer session. (Operator instructions). Our first question comes from the line of Eric Beder from Brean Murray Carret. Please proceed with your question

Good afternoon, guys.

Good afternoon, how are you?

I'm doing fine. Could you talk a little bit about -- first of all we -- just some housekeeping questions. How many clubs are open as of the end of the quarter?

Nineteen.

Okay.

Actually, no, eighteen at the end of the quarter. On April 4, 2010 we opened the nineteenth club. So we have nineteen open right now.

Great. If you look -- if you look at -- where in the balance -- in the income statement is the charges for the VCG acquisition, the legal charges?

Well, the auditors would not let us break it out. (Inaudible) whatever categories it fell in. If it's under -- if it was, if it was legal it was under legal, you know, accounting. If it was advice it's under, it might be under the -- hold on let me look at -- most of it is going to be under legal and professional. Actually, this one it is going to be under legal and professional because it's all consolidated. So it will be both in the legal and professional number. So you will see that our legal and professional, without that, would be significantly lower than it was in the previous year because of the settling of the -- of the Minnesota case.

Right. And if you look at at -- could -- you talked about Vegas turning. Are you seeing some of the other -- like some of the Club Onyx's like Philadelphia starting to see some changes there also?

Well we have made some changes in management, and we are seeing some improvement, but it is a still a very, very tough economy in Philadelphia. The unemployment rate is still pretty high there. As jobs come back, I think we'll continue to see -- we have negotiated with the -- actually we own the land, but we have a partner in the land, and we negotiated with the partner in the land to actually cut our -- cut the rent down at that location starting in May 2010. So the rent be a little bit lower starting in May, and, you know, we have done some things to lower some other costs there as well. And that's really what we have been focused on because we do believe it will be a little while before the economy is strong enough in Philadelphia to really bring that club to where it needs to be, and where it was before the economy went down. I mean, when we first converted into Club Onyx it was doing very, very well for us. And actually generating significant income for us. So, and I believe we'll get back to that. It's just, it's just a process right now.

What is the status on the DFW club, how is that progressing?

Actually I was there this weekend and took some pictures. We're going to try to get them posted on the website soon. The -- it's under construction. The forms are laid out. They are getting ready to pour the slabs. The steel is on-site, so all the steel is on-site right now. And (inaudible) the contractor that he believes that he will be done around August 15, 2010 still. So -- you know, we're very optimistic that we'll get that club opened before the end of this fiscal year.

Okay. And in terms of shares outstanding by converting the preferred, what shall we be thinking about going forward in terms of that?

There are now 10,222,000 shares. Is that right?

About 10.2 million.

Yes, thanks, Phil.

So the same we have in the press release now.

Yes, it's on the front page of the 10-Q -- 10,212,867.

Okay. That's after the conversion?

Yes.

Okay.

That's as of May 4, 2010.

Okay, and I guess the final question is on M&A. You are do it three to five times. What are you seeing? Are pricing coming up? Are prices coming down --

We say three to five times is our target range. Actually right now, I mean we've stayed -- as you can seen from our last two acquisitions very close to being under three times, or at three times. We have stayed pretty close to that. We're looking at a couple of mega clubs right now out there that we would probably push closer to a four times multiple on. You know, and like I said, we're -- we're going to be negotiating on those, so, you know, could push a little higher or a little less depending on what we see as we look at those locations, and what we think we can get as far as an increase from what they're doing. Whether or not we believe we can get an increase. You know, with Tootsie's, when we looked at Tootsie's of course we increased the revenues by $0.5 million a month.

So, we can go into a location and get that type of increase from a mega location by making certain, certain changes and we believe the market will do that, obviously we would be willing to pay, you know, towards the higher end of three to five. And if we believe that the location is maxed out, we're going to push to pay as close to three times as we can.

Great. Congratulations.

Okay. Thank you.

(Operator instructions). Our next question comes from the line of Peter Heise from RedChip Companies. Please proceed with your questions.

Hi guys. Congratulations.

Thank you.

When you're talking about consolidating your mortgage debt, do you have any sort of range for that as you -- ?

Well, obviously we want to pay less interest than we're paying now. I think --

Like maybe 200 basis points or -- ?

It just depends on the costs and the terms. Some of it's on five year balloons and some of it's on, you know, longer -- longer amortization schedules. So, basically we'll have to really kind of look at the overall package and see if we can find something that can make sense. What we would like to do is get it to the point where we're not mailing out fifteen payments to fifteen different lenders, and dealing with that type of stuff, and then maybe consolidate into a single lender that we can also maybe even set up a line of credit against as well -- excuse me -- so that we have a drawdown on it. We believe we have somewhere around $35 million to $38 million worth of real estate with about $25 million worth of debt against it, so if we could put together the right package, then we could -- you know, actually have a -- a fund where we could, you know, pull $5 million or $10 million additional funds against, if we have another acquisition or more real estate comes up.

And that's really the long-term plan for us, to be able to secure our real estate in these acquisitions so we don't have to worry about owner financing, or coming up with a bunch of our own cash flow to buy real estate. We want to take our cash flow and buy more earnings and more revenues.

Right. Okay. And do you have any specific marketing plans that you are doing for the merchandise? Is there any may -- major initiatives that you are pushing?

You know, we obviously sell merchandise in all of locations. Some of our clubs we call it -- it's called Feature Time or Up Time, where all the girls go up and you buy a feature item from them and you get two dances. That type of stuff. That's really how we push most of it. We have a little store on our website and that. Merchandise is just a very small part of our revenue at this time. I think as we grow into a more nationalized chain and more national recognition, that we will increase that marketing presence, and maybe even look at licensing different products, let other people make our merchandise for us. Like playboy does, so we generate revenue without actually having to come up with all the up front costs of it. So those are some of the things we've looked at.

I think we're a little ways away of that type of marketing exposure just because of the sheer number of locations we have.

Right. And are the talks now completely done with VCGH?

I'm a never say never kind of guy. If the right deal presented itself, you know, I would look at it. You know, I don't think I ever try to burn bridges.

At this time under the current terms of the letter of intent, yes, that deal was gone. They claim they could not deliver and get the consignments that were necessary to deliver the assets, and so therefore that deal was unable to be done, and we basically didn't agree on anything other, you know, going forward. So rather than waste our time and energy, you know, chasing something -- we weren't chasing that deal when it came, it kind of popped into our lap. We looked at it, and we showed interest, and the reality is there's a lot of stuff out there to buy, and the multiples that we are paying on a lot of this other stuff are much lower than the VCG deal was. The attraction of the VCG deal was, of course, you know, getting in so many markets that we're not in right now, and, you know, going to -- you know, forty locations in a single transaction. You know, that appeal will probably -- will never leave, however, the deal has to be right. It has to be priced right, and it has to make sense for Rick's's shareholders --

Right.

-- or we're not interested. As I said earlier, we're not interested in doing deals just to do deals. We want to do deals that are going to build our Company, strengthen -- strengthen our brand, and our balance sheet and increase our cash flow.

And they haven't come to you at all since the deal closed, or you haven't been in contact with them?

No, we haven't talked.

All right. Thanks, guys.

Yep.

Gentlemen there are no further questions in the queue at this time. Do you have any closing remarks? Oh, we did just get a couple more.

Our next question comes from the line of Richard Keim from Kensington Management. Please proceed with your question.

Hello.

Hello.

Hi, congratulations.

Thank you.

Quick question you show securities on your balance sheet.

Yes.

What are they?

VCG Holdings.

Okay, so you do continue to hold them?

Yes.

That's the question. Thank you.

All right. No problem.

And the last question in queue comes from the line of Steven Martin from Slater Asset Management. Please proceed with your question.

Hi there, Eric.

Hi.

Can you update us on the status of the Texas legislation, and how that's flowing through the income statement this quarter?

Okay. We expense it, of course, but we don't pay it. So it shows as an expense, but it also shows as an add-back into the cash flow -- on the cash flow statement.

Should I assume it's in taxes and permits.

Yes, it is definitely in taxings and permits.

Can you tell us --

Actually it may be line items -- Phil, did we line item out --

I don't think it is. Let me look at this --

No it's not lined out. Yes it's just in tax and permits. Yes.

Will you disclose in the 10-Q how much in each quarter it is?

The Q I don't -- we probably didn't do it in the Q. I know we do it in the K, and the K -- we lined item it out in the K, to let you know. There's a patron tax section. Okay. But it's about -- I want to say it's about $600,000 a quarter.

It's $269,000 a quarter.

$269,000, what was it last -- same -- last year this quarter?

$166,000.

So a it went up a lot because you have more Texas clubs.

Exactly.

Phil, are you talking about the patron tax?

Yes.

Is how much? It was $2.6 million in 5 quarters. So, it's at least $.5 million a quarter.

Okay, well maybe -- maybe --

Yes, we need to look that up. We need to look that up and pull that out for you.

Yes, maybe when you guys file the Q you can, you know, put that in the disclosure. Because it is a material item and it is a non-cash item.

Yes, it should be in the footnotes. I believe. Or it was in the footnotes last time.

Okay, can you talk about --

I will find it for you Steve, and get you that number.

Okay. Can you talk about what is going on in cost of alcoholic beverage and food, et cetera?

Everything has kind of been holding steady. As you've seen, our cost of goods actually dropped this quarter but it was because we had so much high-ticket volume where there's a lot of profit on it.

Okay. So -- and same in food and other cost of goods sold type items?

Yes, everything has been staying pretty steady. We have been doing very, very good at keeping our cost very steady, and running right around 12%.

Okay. Thank you very much.

Our next question comes from the line of Philip Bartlett from Deutsche Bank. Please proceed with your question.

Yes, Eric, your Tootsie's acquisition was such a terrific buy, such an enormously profitable property and establishment, and I -- I'm really interested to hear, are there really potentially other targets similar to that, you know, in the United States that could be that attractive? I don't want you to name them, obviously.

Right.

But I was under the impression that, my God, how could there be another place like those, you know?

Well, there's other clubs that are running those type of numbers. Now, whether we can get them for the same 2.5 times or 2.8 times EBITDA is the trick question. I think that will be a little more difficult. I think you are going to see these clubs trade more on a 3 to 4 multiple range. But if you look at what our stock was trading at back then, as far as our EBITDA multiple versus what we paid, the spread is going to be -- the spread is going to be about the same.

So for the existing shareholder, the expanded margin should definitely help cushion, even though we're going to be paying a little bit higher price -- if we get into a situation that was similar to that, where you have two partners that aren't getting along and want to sell heir properties -- you know, they want to sell no matter what -- and Rick's is the only cash buyer, I think we can end up in a situation where we can pick up something in that, in that price range like we did with Tootsie's. But I -- you know, the reality of it is that Tootsie's was a diamond in the rough, and on top of that it was just an incredible buy to begin with. You know, I don't think we even envisions we would ever increase the revenues $5 million a year when we bought it. I mean -- so that was like -- that was -- that was like icing on the cake, but the cake itself a wasn't bad. We are buying $8.8 million in EBITDA for a $25 million price, so -- and only putting $15 million cash up front, and financing the other $10 million through the owners.

It was a once in a lifetime, you know, very sweet deal, but there are other properties out there similar to it, it's just where we can get the deal to be as good. That's the real key. But there are definitely several properties in the United States right now that are in that $15 million to $25 million revenue range, and we are definitely seeking those types of properties right now.

Good luck finding the diamonds.

Thank you.

Hey, Eric, let me clarify. I did - I finally found that number on the patron tax. $810,000 a quarter.

Hey, that sounds more like it. Okay. Yes, I was going to say I thought you were probably in just one group instead of the entire text. You were probably in (inaudible) or Rick's or something with the $260,000 number. That should do it.

Our next question in queue comes from the line of Barry Burns who is a private investor. Please proceed with your question.

Two questions. First of all, I kind of (inaudible) am I correct in what I heard that you are basically at this point as far as the rest of the year kind of standing by the guidance that you had given previously?

Yes, at this time, yes.

Okay. And the second one is, I guess more of a cosmetic one. What is the cost, and/or is if you -- have you ever looked in terms of benefit of either changing to a calendar year from a fiscal year? Or -- I remember two years ago I think it was, I think you used to also report on what the guidance or what the results were on a calendar year basis even though we were still a fiscal year back then?

Right. Well, you know, we have been very cautious with guidance at this point, simply because it's just so hard, there are so many changing factors with the economy right now, and with unemployment and the consumer is so fickle. So we have been very -- very cautious on giving guidance more than the current fiscal year.

As far as changing to a calendar year, you know we don't see the benefit in the calendar year versus the fiscal year. The fiscal year, our audits are cheaper, our auditors are available to us, because they're not competing -- we're not competing with so many other companies. There's not the rush, and everybody, you know, because our fiscal year ends in September, of course, our finances are due out in December, which makes it, you know, much easier for us to get everybody to work right -- you know, get everything done right, because they all want to be done before Christmas. So we feel that we get a just a much more timely and easier and smoother transition for ourselves by getting our financial reports out by being on the fiscal year.

Thank you.

Yes.

There are no other questions in the queue at this time. I would like to turn the floor back over to management for closing comments.

All right. Well, thank you, everybody, for calling in and I appreciate the questions and your time, and hopefully I'll see a bunch of you tonight at the club. Thank you.

Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.