ExamWorks Group's CEO Discusses Q4 2012 Results - Earnings Call Transcript

| About: ExamWorks Group, (EXAM)

ExamWorks Group, Inc. (NYSE:EXAM)

Q4 2012 Earnings Call

February 27, 2013 5:00 pm ET

Executives

Richard E. Perlman – Executive Chairman of the Board

James K. Price – Chief Executive Officer

J. Miguel Fernandez de Castro – Senior Executive Vice President and Chief Financial Officer

Analysts

Ryan Daniels – William Blair

Ralph Giacobbe – Credit Suisse

Operator

Good day ladies and gentlemen, and welcome to the Fourth Quarter 2012 ExamWorks Group Incorporated Earnings Conference Call. My name is Anne and I’ll be your coordinator for today’s call. As a reminder, this conference is being recorded for replay purposes. At this time all participants are in listen-only mode. (Operator Instructions) We will be facilitating a question-and-answer session following the presentation.

I would now like to turn the presentation over to your host for today's call, Mr. Miguel Fernandez, Chief Financial Officer. Please proceed, sir.

Miguel Fernandez de Castro

Thank you, Anne. Hello, everyone, and thank you for joining the ExamWorks fourth quarter 2012 earnings conference call. An audio replay of the call will be available on our website at investorrelations.examwork.com later this evening. A copy of our earnings release is also available on our website.

In the course of this conference call management may make statements that contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995 such as statements regarding future events or company performance or estimates relating to the future.

Although, the company believes that the assumptions underlining any forward-looking statements are reasonable. I caution you that any of these assumptions maybe inaccurate and therefore the company’s actual results could differ materially from those that maybe projected in management’s discussions. Additional detailed information concerning a number of factors that could cause actual results to differ from the information that management may give you is detailed in the company’s filings with the SEC. Copies of these reports are available upon request.

I will now turn the call over to our Executive Chairman, Richard Perlman.

Richard E. Perlman

Thanks, Miguel, and good evening, everyone. In addition to Miguel I am joined by Jim Price our CEO. We had an excellent quarter exceeding both revenue and adjusted EBITDA expectations after having raised our guidance in early December. The performance in all our geographic regions improved markedly.

In the U.S, due to the impact of Hurricane Sandy, revenues declined slightly, although much less than originally estimated. We are pleased that the impact was mitigated by the successful implementation of disaster recovery and business continuity procedures.

During the quarter, we continue to rollout our national accounts program and this effort continues into Q1. We expect organic sales initiatives, including the national account program, a new sales initiatives to drive revenue growth in 2013. This will become evident commencing in the second quarter as we were able to start recognizing revenue from the increased referrals we are enjoying in the current quarter. We completed one acquisition in the U.S., which had a minimal impact on our financials for the quarter. PMG was acquired on December 19, (inaudible) our capacity for workers' compensation related IME services and expands our geographical footprint into southern California.

Our UK operations outperformed the prior quarter growing at 28%. The impressive results are driven by continued market share gains across all business lines, which accounted for approximately 60% of the increase and the balance coming from the previously discussed national account in the United Kingdom.

Our Australian operations also outperformed the prior quarter growing at 27.8%. We attribute the strength of the performance to our exceptional team and the fact that we are the only national company in Australia and as a result continue to enjoy market share increases due to our ability to service customers anywhere in the country with superior quality and service levels.

The Canadian region recorded a dramatic improvement as anticipated declining only 3.6%. This is a substantial improvement over the 25.8% decline in the third quarter. As we indicated previously, we believe the Canadian market has begun to stabilize and we believe we are best positioned to capitalize on opportunities when growth returns.

We continue to expect that Canada will account for less than 5% of our total revenues during 2013 and are encouraged by the improved results in this region. This year’s performance reflects the successful integration of all the acquired companies, sound brand development and diversification into international markets. We entered 2013 well positioned to deliver on our strategy and whether continue to show our focus on our goal of redefining the IME industry. On that note, let me turn the call over to Miguel for the financial review.

J. Miguel Fernandez de Castro

Thank you, Richard. Starting with the income statement, we generated revenues of $139.6 million in the fourth quarter, an increase of 21.1% over the prior year quarter. Excluding the impact of acquisitions completed in the last 12 months, organic growth was 5.4%. The PMG acquisition contributed $295,000 in revenues and $53,000 in adjusted EBITDA this quarter.

Pro forma revenue this quarter were $142.6 million, an increase of 7.9% over the prior year quarter pro forma revenues of $132.1 million. On a constant currency basis, this growth rate would have been 6.9%. And pro forma revenues assume that the 2011 and 2012 acquisitions were completed on January 1, 2010 and ‘11 respectively.

For the year, we generated revenues of $521.2 million, an increase of 31% over the prior year. Excluding the impact of acquisitions completed in the last 12 months, organic growth was 3.4%. Pro forma revenues for the year were approximately $574 million, an increase of 5.6% over the prior-year pro forma revenues. On a constant currency basis, this growth rate would have been 5.9%.

Our adjusted EBITDA for the fourth quarter of 2012 was $20.3 million, or 14.6% of revenues, an increase of 20.8% over the prior-year quarter. And for the year, adjusted EBITDA was $79.8 million or 15.3% of revenues, an increase of 26% over the prior-year. Pro forma adjusted EBITDA for the year was approximately $92 million or 16% of revenues.

Now moving to revenues by geography, our U.S. business generated pro forma revenues of $82.7 million a 1% decrease over the prior year quarter pro forma revenues. The decline reflects the impact from Hurricane Sandy. For the year, our U.S. business generated pro forma revenues of $352.8 million, a 2.2% increase over the prior year pro forma revenues. The growth is due to increased volumes.

Our U.K. business generated revenues of $35.8 million, a 28% increase over the prior year quarter revenues. On a constant currency basis, the growth rate would have been 25.4%. The majority of this growth is coming from market share gains and various product lines with approximately 40% of the growth coming from our previously announced national contract.

And for the year, our U.K. business generated revenues of $131.3 million and 18.2% increase over the prior year pro forma revenues. On a constant currency basis, the growth would have been 19.5%. Approximately 35% of this growth came from the national contract with the balance driven primarily due to increased volumes. Australian business generated revenues of $16.9 million or 27.8% increase over the prior year quarter pro forma revenues.

On a constant currency basis, the growth rate would have been 24.6%. The growth is due to a change in sales mix, increased volumes and to a smaller extent increased pricing. For the year, our Australian business which we acquired on August 31 generated pro forma revenues of $61.5 million, 23.5% increase over the prior year pro forma revenues. On a constant currency basis, the growth rate would have been 23.3%. Again, the growth is due to the change in sales mix, increased volumes and to a small extent increased pricing.

In our Canadian business which again represents approximately 5% of our total business generated revenues of $7.1 million a 3.6% decline compared to the prior year quarter pro forma revenues. On a constant currency basis, the decline would have been 6.5%. For the year, our Canadian business generated pro forma revenues of $28.2 million, a 24.3% decline compared to the prior year pro forma revenues and on a constant currency basis the decline would have been 23.2%.

Now turning to expenses, cost of revenues as a percentage of revenues for the quarter were 66.3% and 66% for the year which is in line with our full year 2011 percent of 65.9%. SG&A expenses in the fourth quarter and the full year were $28.9 million and $113.5 million respectively. Included in our fourth quarter SG&A are $440,000 in share based compensation expenses and $944,000 in acquisition related transaction and other non-recurring costs.

Included in our full year SG&A are $10.8 million in share based compensation expenses and $2.4 million in acquisition related transaction and other none recurring costs. Depreciation and amortization expense were $16.3 million and $58.6 million in the fourth quarter and full year 2012 respectively.

Interest and other expenses in the fourth quarter and full year 2012 were $7.8 million and $28.1 million respectively and primarily related to interest costs from the senior unsecured note.

Our income tax rates to the 12 months ended December 31, was 35% and that’s the result of certain U.S.-based license we made on foreign sourced income. We expect a similar effective rate for 2013.

For the year, we generated $24.8 million of cash flow from operations and that’s after the $22.5 million of bond interest payments made in January and July of 2012. The growth in our UK business created a working capital drag, which impacted our cash flow from operations for the year. As a reminder, in order to facilitate this longer collection cycle, we have discount facilities at a 3% interest rate in place in the UK.

Our DSOs in the fourth quarter were 111 days, it’s a slight improvement of our DSOs in the third quarter, and the result of our growth in the UK and Australia. In the U.S., our DSOs were 48 days, which in line with our historical collection experience, and with respect to Australia, DSOs in the fourth quarter were approximately 30 days.

In the fourth quarter, we completed the acquisition of PMG for a net cash consideration of $11.8 million. We financed the purchase price of PMG with proceeds from our senior revolving credit facility. On an annual basis, this acquisition generates revenues of $12.5 million and adjusted EBITDA of $2.5 million. And as Richard stated, this acquisition enhances our position in the workers’ comp market in California.

We ended the quarter with $8.6 million of cash on hand and total debt of $385 million. As of the end of the quarter, our total leverage was 4.15 times well within the 4.75 times a lot under the credit facility. Our total committed availability as of the end of the year is $180 million of which $55 million is available immediately and the balance available to execute on our acquisition strategy.

Consequently, given our cash generation profile and anticipated cash requirements, we believe that we have more than ample liquidity to continue to grow our business and fund our acquisition program. We did not repurchase any additional shares in the fourth quarter of 2012. We have approximately $10.2 million remaining under our repurchase program.

And now I'll turn to our business outlook. As previously announced, while acquisitions are an important part of our strategy, we will not provide acquisition guidance going forward, but we’ll announce transactions as they close.

In summary, for 2012 we generated pro forma revenues of approximately $574 million and adjusted EBITDA of approximately $92 million, or 16% of revenue. For 2013, we continue to expect a 5% to 7% organic revenue increase from our 2012 pro forma revenues of $574 million, that excludes the effects of currency. This revenue increase does not include the potential revenue contribution from acquisitions that we may close in 2013.

Our assumptions are as follows; we expect our U.S. business to grow in the mid single-digits. We expect our UK and Australian businesses to grow in the low to mid teens, and we expect our Canadian business to be flat to slightly up.

We expect our full year adjusted EBITDA margins of between 15.5% and 16.5% of reported revenues. The 50 basis points change from our prior guidance is the result of significantly higher healthcare costs and employee enrollment into our benefit plans and originally anticipated. As the year progresses, we expect quarterly adjusted EBITDA margin fluctuations of between 15% and 17% of reported revenues. First quarter 2013 reported revenue is expected to range between $144 million and a $148 million at the mid-point showing a growth rate of 4% compared to the prior year. The growth rate is 5% if you exclude the impact of currency. Few items impacting the first quarter of 2013, compared to the first quarter of 2012. Q1 ‘13 has one less business day than Q1 ‘12 and we expect an unfavorable currency impact of approximately $1.3 million which are both included in our revenue guidance.

We expect the U.S. to grow in the low single digits, compared to the prior year. We expect our UK and Australian businesses to continue to outperform and grow in the mid teens. And we expect our Canadian businesses to be flat, compared to Q1 2012. First quarter 2013 reported adjusted EBITDA margins are expected to be approximately 15% of reported revenue, an increase from Q4 2012 adjusted EBITDA margin of 14.6% and reflecting the positive operating leverage in the business.

After close of financial review, we are extremely pleased with our fourth quarter and full year 2012 performance, and we look forward to sharing our progress over the course of 2013.

And with that, I’ll turn the call over to Jim.

James K. Price

Thank you, Miguel. Good evening everyone. First, we want to express our gratitude to all of our employees worldwide who continue to work hard and deliver exceptional service to our clients and help us achieve another great quarter. As we look at the past year, I would like to review our accomplishments.

We began 2012 at an annual revenue run rate of $483 million and a pro forma EBITDA of approximately $81 million. We closed the year at a pro forma revenue run rate of $574 million and pro forma EBITDA of approximately $92 million. We started the year with 45 service centers, in three countries, with 1,850 employees. We ended 2012 with 57 service centers, in four countries, with 2,138 employees.

In 2012, we completed acquisitions that generated approximately $75 million of annual revenue. This consisted of three acquisitions, the most significant being the MedHealth acquisition, which is the largest and only national IME company in Australia. We have nine offices throughout six states and two territories and 135 employees with a very strong management team that has been able to achieve high growth rates by focusing on delivering great service to our clients and by constantly increasing the position panel.

During the course of 2012, we continue to invest in technology, which gives us and our customers a secure, compliant, and reliable platform in which to operate. This was very evident as we quickly recovered from Hurricane Sandy and we are able to resume business in the northeast by leveraging our private cloud. We continued to develop and deploy software and integrations allowing our customers to efficiently upload and trac new cases throughout the process. Our team of approximately 70 IT and IS professionals are constantly raising the bar and this continues to set us apart from our competitors as we educate our clients on our complete technology offering.

We are expecting great things in 2013, we will continue to look at selective acquisitions that will strengthen our position in the markets we serve and we are – we’ll announce these transactions after they are completed. We have positioned the company to continue to win new business, we believe the industry will continue to seek out national partners with safe and secure systems and with a robust panel of medical professionals

We are the global leader in delivering IME services today and we’ll continue to set and raise the bar in our industry. And with that, operator I would like to open up the call for questions.

Question-and-Answer Session

Operator

Okay, Thank you. (Operator Instructions) And our first question comes from the line of Ryan Daniels with William Blair. Please proceed.

Ryan Daniels – William Blair

Yes guys thanks for all the color and congrats on a strong end to the year. If I am doing my math correctly, it looks like you saw x the hurricane, a nice acceleration in your domestic road and I am curious if you could just talk a little bit more about what might be driving that, I know you don’t want to go into kind of detail on the national accounts but maybe how much impact that’s really having in the organic growth in the forward outlook and how much of it’s just kind of regular market share gains in the U.S.?

Richard E. Perlman

Ryan, its Richard, the good news is that the contribution of the national accounts was as we had indicated previously very minimal in Q4. So what‘s the most gratifying for us as a management team is the progress that we’ve been – we’re able to make in terms of the doubles everyday. So again that’s one of the reasons again I think we’re still optimistic about 2013 is that we still haven’t gotten any real major impact from this national accounts and that’s getting ready to come.

Ryan Daniels – William Blair

Okay. And how do you view that ramping through the year, if we think the national accounts and kind of your organic growth guidance might we see a tip towards the higher end of the guidance later in the year or maybe just...?

James K. Price

Yeah, I mean it will definitely be in Q1. We only have contributions again it’s still not the full contribution from one of the two. The second one is currently in the implementation process and we’ll start to see some contribution from that in the second quarter. But as the year progresses again we anticipate both continue to ramp up. So it will be back end loaded, but again we’re very excited about it.

Ryan Daniels – William Blair

Okay. That’s helpful. And then I know you’re not putting the M&A in your outlook any more Jim as you referenced. But I’m curious if we just think about the M&A front, now that you’ve got really a national footprint, you’ve got the best technology, you’ve got the broadest dock panel, you’re looking to expand in any novel areas related to IMEs or maybe doing any more IT transactions in the space or will the M&A front really consistent the smaller tuck-in deals and maybe some line expansions as you look into to 2013 and beyond?

James K. Price

We think there are still some opportunities out there that are not adjacent opportunities there in our core sweet spot. But I will say that will become much more discriminating and that’s based on a perception of how the markets changing and what we don’t want to do is pay for a business that will ultimately win organically.

And so that being said, there is still some strategic places in our existing footprint were we could add either lines of business or relationships and the good news is again there are a lot of choices in the pipelines robust. But we’re not going to announce those until they complete as we said before.

Ryan Daniels – William Blair

Okay. And then maybe last question, I’ll hop back in the queue. Just thinking about all the IT investments you’ve made both throughout the years and then maybe more recently to handle some of national accounts, is that gaining you further traction in the marketplace if you go out on sales pictures and talk to adjusters or talk to larger corporate accounts not just from a security standpoint, but really helping their workflow maybe turning the IMEs quicker. Just a little more color on what that does and then how you can potentially are using that as a marketing tool for your growth as well? Thanks.

James K. Price

Sure, Ryan. This is Jim. It is definitely a serious competitive hedge and since obviously we have the largest IT and technology team in this industry. It were deploying and our goal is to make the referral process completely paperless for the adjusters and as we get deeper integrated and allow them the access with our portal and eliminate the manual paperwork and tracking – giving them the tracking ability electronically, it makes their life easier and it allows us to become more efficient as well.

So that’s definitely a big part of the sales forces is does have access and deploy that they can show that technology as they do sales calls in the marketplace. And once as we rollout the national accounts, we have the implement – a big part of implementation process is going out in the market to all the offices, training the adjusters and getting them setup with log on to do that deep integration. So it’s being deployed currently.

Ryan Daniels – William Blair

Okay; helpful color and congrats again on the momentum here excellent year.

James K. Price

Thanks.

Operator

And our next question comes from the line of Ralph Giacobbe with Credit Suisse.

Ralph Giacobbe – Credit Suisse

Thanks, good afternoon. Just a few, first I guess just on the margin I guess maybe help us understand a little bit since you gave guidance last quarter. I know you mentioned the healthcare cost, just help us understand, like I thought – you would add some visibility on that, so what sort of what changed I guess? And then just secondly, as it relates to kind of 1Q guidance, I know you mentioned some of the pressures, but there are other certain costs in 1Q and maybe is there any other seasonality that we need to keep in mind as sort of you ramp the margins as you move through the year?

J. Miguel Fernandez de Castro

Yeah. Hey, Ralph, it’s Miguel. So, I think on the full-year EBITDA guidance, the margin guidance, so when we guided in the third quarter and then updated early December, we had built in into our model and expectation of growth rate in healthcare and our healthcare U.S. healthcare cost. Additionally, what we expected from an enrollment – on employee enrollment standpoint, and is that wrapped up towards the back half of December, those numbers came in much higher than we had anticipated, it’s $3 million that's the 50 bps change in its entirety. We’re on the self-insured program, so to the extent we have better claims history in 2013, we may be able to realize some benefit. But I think as insurance goes and everybody is feeling the effects of big increases every year.

Now, for the quarter, we do have one less business today, leap year last year one less this year, we do have some headwinds on currency compared to last year, which we attempted to anticipate into our guidance. To the extent we see more movement there in the currency and that could shift those numbers slightly as well. As far on the margin itself, generally you will see from a payroll standpoint, the first quarter is slightly heavier from the employer tax side and generally little bit lighter towards the end of the year as individuals have maxed out potentially. But we don’t really see any other cost again from an adjusted EBITDA margin in the first quarter compared to the fourth quarter.

Ralph Giacobbe – Credit Suisse

Okay. All right, that’s helpful. May be on the Canada side, seems like we’ve turned the corner a little bit. Is there sort of visibility on kind of turning positive and maybe where do we stand on sort of the legal cases up there because that would be something that comes through to maybe get to even above where your expectations are for the year, is that just too early to call?

Richard E. Perlman

Ralph, hi, it’s Richard. Actually, there is some good news to report. So what has happened up in Canada is that the Canadian legislature passed on addendum to the insurance act in an attempt to close the loophole that was allowing for the classification of claimants as having minor injuries without medical evidence.

Ralph Giacobbe – Credit Suisse

Yeah.

Richard E. Perlman

And that new law goes into effect on June 1. So clearly, that’s a very, very good event. And we’re optimistic about what the positive effect will be. However, our guidance does not assume anything other than the industry having bottomed out there. So there is some of upside in Canada for sure, this year.

Ralph Giacobbe – Credit Suisse

And Richard, just I don’t know if you will – have you talk about the backlog – I thought you’ve talked about the backlog before of cases that were up there. Is there any way or you’re willing to sort of…?

Richard E. Perlman

Well, it was a backlog again, continues to be in that 30,000 to 40,000 cases. The Canadian government, I think we have talked about this before; outsourced the medication process to five independent outsourcing companies. It’s been a slow and very cumbersome process and all that do would be sort of provide a one-time bump-up. What we are more focused on is that the business getting back to normal, which is what we hope this new legislation will do. So there could be again a one-time bump-up potentially if those cases again go back to getting into the normal queue, but more importantly going forward, starting hopefully in the summer, I things we’ll get back closer to what they were?

J. Miguel Fernandez de Castro

Again not in our guidance, what we’re assuming is essentially flat to where we are.

Ralph Giacobbe – Credit Suisse

Okay. That’s helpful. In terms of the national contracts, certainly there is a couple that we’re looking forward to coming through beginning this year in terms of domestic side. But to be too greedy, but are there more on the horizon any more RFP, anything there or is that I won’t call store that, but you’re still sort of working towards the contracts that you already have versus us thinking about the potential for more or something more in the near-term.

James K. Price

Hey, Ralph. It’s Jim. Now we’re very excited that we have a handful in our pipeline currently of national account that are in the process and we look forward to announcing additional winds this year.

Ralph Giacobbe – Credit Suisse

This year?

James K. Price

Yes.

Ralph Giacobbe – Credit Suisse

All right, that’s helpful. And then just a couple quick ones as well, in terms on the balance sheet I think I saw some $32 million long-term receivable, I don’t think I’ve seen before that just really to an acquisition or is that something else?

James K. Price

Ralph, so I think in the UK as you know DSOs are roughly the 300 days. It’s a longer collection cycle and as we rolled out the national accounts in UK and then some additional business, the terms that we’ve extended are a times longer than a year. So for accounting classification were representing those as long-term, the tax liability, there is no impact to that. That industry just kind of drives those kind of terms there. So we’ve taken the position to re-class those into the long-term cycle, potentially that they could be collected within the one year, but we’re classifying them as long-term.

Ralph Giacobbe – Credit Suisse

Okay, that’s helpful. And just my last one if I could squeeze one in. In terms of the acquisition I know I understand that you’re not going to sort of put it in guidance, but should we expect a release when you make deals or you just going to provide an update or a list of deals when you report your quarterly results?

James K. Price

I would say later Ralph, probably again it’s become less of a key part of the story, here we’re very focused on organic growth and I think we’ll just wait till the quarterly results come out.

Ralph Giacobbe – Credit Suisse

Okay, great. Thanks very much.

Operator

And our next question comes from the line of Brian Zimmerman with Goldman Sachs. Please proceed.

Unidentified Analyst

Hi, guys. Thanks for all the color so far. This is (inaudible) actually in for Brian Zimmerman. Just wanted to ask regarding the IT investments that maybe increasing regarding integrations, can you give us some color on that what we should look for?

James K. Price

Well I mean the IT integrations and investments we continue to expand with every one of our acquisitions. We virtualize and we take the company to the private cloud and then on top of that with these national account roll out, we’re doing the deep integration with various partners and obviously we also have the IT deployment in the UK and Canada and Australia as well.

Unidentified Analyst

So how has the progress been with MedHealth better than plant, better than international acquisition that you have made before?

James K. Price

Sure, actually we’re thrilled with the MedHealth because they were positioned as a company that actually had already deployed the same private cloud that we utilize here in the U.S., UK and Canada. And they had put a very seasoned management team in it, put good budgets in place. We were able to go over and integrate very quickly into some of our best policies and procedures. But to give them a lot of credit, they actually were operating a spectacular business.

So I think joining us it’s an additional integration. We have deployed a video conferencing that we used throughout our organization and are deployed and tied into Australia. And from a quarterly business review, we’ve down meetings over in Australia and we also do management meetings with video conferencing. And we also do that with the UK, Canada and all of our offices as well.

Unidentified Analyst

Great, thank you so much.

Operator

Ladies and gentlemen, this concludes today’s question-and-answer session. I would now like to turn the call back to Mr. Jim Price for closing remarks.

James K. Price

All right, well thank you everybody and we look forward to our next call with you all. Bye-bye.

Operator

Ladies and gentlemen, we thank you for your participation in today’s conference. This concludes the presentation and you may now disconnect. Have a good day.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!