Tivo, Inc. (NASDAQ:TIVO)
Q4 2009 Earnings Call
March 2, 2009 5:00 pm ET
Derrick Nueman – Director, Investor Relations
Thomas Rogers – Chief Executive Officer
Anna Brunelle – Chief Financial Officer
Tony Wible – Janney Montgomery
Todd Mitchell – Kaufman Brothers
David Miller – Caris & Company
Alan Gould – Natixis
Welcome to the Tivo fourth quarter fiscal year 2009 earnings conference call. Today's call is being recorded. At this I would like to turn the conference over to Mr. Derrick Nueman.
I'm Derrick Newman, Tivo's head of Investor Relations. With me today are Thomas Rogers, CEO, Anna Brunelle, CFO, and Matt Zinn – General Council
We're here today to discuss Tivo's financial results for fourth quarter and full fiscal year ending January 31, 2009. We have just distributed a press release detailing our financial results. We have also released a financial and key metrics which is posted on our investor relations web sit. Additionally, we will post a recording of this call later today on the investor relations section of our web site.
The prepared remarks today should take 20 to 30 minutes and there will be a question and answer session following. Our discussion today includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to among other things, Tivo's future subscriptions, advertising, research, profitability, operations and financial performance and guidance, distribution of Tivo's service domestically and internationally, Tivo's current and future service features and product releases, partners, and Tivo's ongoing litigation with EchoStar.
You can identify these statements by the use of terminology such as guidance, believe, expect, will or other similar forward-looking terms. We caution you not to put undue reliance on these forward looking statements as they involve risks and uncertainties that may cause actual results to vary materially from the forward-looking statement. Factors that may cause actual results to differ materially include delays in development, competitive service offerings and lack of market acceptance as well as other factors described in our risk factors in our report filed with the SEC including our latest 10-K and 10-Q.
Any forward-looking statements made on this call reflect as of today and we have no plans or duties to update them. Additionally, some of the metrics and financial information provided in today's call include non-GAAP measures. Please see our fourth quarter fiscal year 2009 key metric sheet for a reconciliation of these items.
With that I will now turn the call over to Thomas Rogers.
Good afternoon everyone. Fiscal 2009 was an impressive year for Tivo as it marked the most financially successful year in the history of the company. We recorded our first adjusted EBITDA and net income positive year and would have done so even without the EchoStar litigation proceeds.
In fact, we recorded our sixth straight quarter of adjusted EBITDA profitability and ended the year with a strong balance sheet of over $200 million in cash, no debt and improved cash flow. Certainly this is an enviable position to be in considering the current economic environment. More importantly, these results were achieved while maintaining our clear focus on advancing our long term growth drivers and future prospects.
Quickly touching on the economy for a moment, there is no doubt that all facets of consumer spending have been adversely affected by the lingering recession, including the consumer electronic industry, and we're not sure when the environment's going to improve.
Despite this gloomy backdrop though, our business strategy coupled with the recent steps to reduce our cost structure have proven effective. As of year end, the company is on a solid financial footing to help it weather the storm and further our many strategic growth initiatives.
This past year, we also successfully protected our intellectual property. Our litigation with EchoStar has entered the final enforcement stage. We have won this case and received nearly $105 million in initial damages from EchoStar's infringement of our time warp patent, and we believe they continue to infringe our patent and violate the injunction issued by the District Court requiring them to disable the DVR functionality in their infringing models.
In February the District Court held an evidentiary hearing to assess EchoStar's new software and to determine whether EchoStar is in violation of the injunction. We are waiting on the court's ruling on these final matters and expect a ruling in the near future, and we remain confident in the outcome.
Now let's talk about the progress we continue to make on the mass distribution front. Comcast is fully marketing our product in the New England market and is in the process of adding and sharpening offers. For example, Comcast has just introduced a DVR with free Tivo service as an option for their Triple Play with HD. This makes Comcast DVR with Tivo service only $9.95 all in as opposed to $2.95 for Tivo on top of the regular DVR service fee For anyone subscribing to Triple Play with HD.
They are also working to prepare for the launch of Tivo in Chicago. Further, the work Comcast is doing in the North Central has been useful for them as they roll out the new two-way technology infrastructure across their entire footprint.
Speaking of cable partnerships, this quarter we embarked on two important initiatives to make it easier for cable operators to offer the truly differentiated Tivo experience to their subscribers. First, we have announced a relationship with SeaChange, one of the leading providers of cable video on demand solutions, with whom we would be able to integrate cable operators, video on demand services with current and future generations of retail Tivo hardware to use a cable card.
This is a significant milestone for the industry as it provides a way for cable operators to deploy a low cost Tivo platform that seamlessly combines the unique capability of cable VOD with the complete portfolio of broadband services now available via the Tivo service all without having to invest in a major software porting effort.
This collaboration was made possible for consumers to experience the benefits of two way cable programming services with existing Tivo HD DVR's. We are excited about this development and its potential to enhance the competitive position of small and large cable operators alike by accelerating the deployment of next generation cable TV services.
Our goal of lowering the deployment hurdle for operators also sparked another initiative we announced with quarter with Alticast, a leading provider of middle ware software that pay television operators internationally. Porting Tivo's software to the Alticast platform would make it easier for domestic and international operators to deploy the Tivo service on set top box platforms that run the Alticast software.
We believe our efforts with Alticast will present some welcome new options for paid television providers who are rapidly being confronted with a two fold challenge of needing to differentiate their consumer services while also reducing capital expenditures and operating expense.
Additionally, we continue to work on our new Direct TV HD DVR. The new HD DVR will include many popular Tivo broadband features and will be immediately accessible to Direct TV's entire national customer base on day one of the launch. We have a very successful history with Direct TV and those subscribers are some of our most loyal customers.
Now, as these customers look to upgrade from standard definition programming, they will have the option to choose the Tivo experience so they can get the most out of their Hi-def viewing experience.
Turning to the stand alone side of the business, there are a number of trends that we see evolving that will benefit Tivo. The first is that expect the high definition television set trend to continue. During these challenging times with most consumers cutting back on big ticket item purchases such as automobiles, we believe that the big screen high definition TV will be one of the largest expenditures for most consumers, particularly with the upcoming conversion by broadcasters to digital TV and the overall appeal of the HD viewing experience.
Supplement this purchase with a Tivo HD box ensures that consumers will get the most out of their HD television experiences, and we've had some success bundling Tivo with HD sets at Best Buy even in this difficult environment.
The second trend is the consumers' demand for cheaper in the home entertainment. We recognize that it is a tough time for the consumer and we need to make clear that Tivo makes sense now for their wallet. Let me provide you with some detail on the Tivo value proposition that we are marketing which we view as a three step saving program for consumers.
First, consumers save when buying Tivo at a retail outlet like Best Buy, getting promotional discounts when bundling it with a purchase of an HD TV set. Since as I said, Tivo gives viewers the most juice out of their new Hi-def big screen TV, buying them together in a proposition is a proposition worthy of immediate savings.
Second is the reality of just how expensive it is to come to entertainment outside the home. Consumers are looking to cut back on leisure spending and Tivo is making it so easy and affordable to have an excellent in home entertainment experience. We call it the Great American entertainment bail out.
With millions, really millions of content options, bailing consumers out of having to spend money on entertainment out of the home during these difficult times by delivering right to the TV set, over five million pieces of broadband content that aren't available on cable or satellite.
So for example, if you're a Netflix subscriber, you get 12,000 movies and shows delivered to your TV for no incremental charge or access to Amazon's over 40,000 movies and shows starting at as little as $0.99.
The final step is the monthly savings the Tivo user may be able to realize by not having to lease a box from their cable company since Tivo also functions as a cable box. Consumers just need to leave the cable card from the cable company which typically costs only a few dollars per month. But Tivo has several different pricing plans available, so consumers may be able to find a Tivo plan that is less expensive on a monthly basis than what their cable operator DVR service costs.
In addition, our strategy to keep acquisition costs and marketing spend down proved to be particularly effective during the fourth quarter. In fact, it was $114.00, down 17% from the year ago quarter and is the lowest for us in over three years. As we have discussed in the past, we have benefited from third party marketing efforts from retailers, content owners and consumer electronics manufacturers that market the Tivo product on our behalf.
We continue to make major strides toward creating the ultimate in home media center that combines the best way to search and watch traditional television with the unlimited video and music choice available via broadband, delivering the most dynamic user experience on the market today.
From our partnerships with Amazon or U Tube or Rhapsody, Net Flicks to name just a few, broadband enabled Tivo subscribers have access to an incredible amount of content not available on cable or satellite.
There are two points that distinguish us from new broadband enabled TV sets and other consumer electronic devices when it comes to the area of broadband content delivery. The first is the comprehensiveness of the content we deliver by way of broadband content; not a slice of it but an attempt to allow all content regardless of either the programmers underlying format of delivery or the underlying business model of the content provider.
The second and even more important is a way of making sense of finding and using all that choice which has really been the Tivo secret sauce from our very beginning. Our revolutionary new Tivo search features a high definition design that takes full advantage of the extra real estate that large flat screen TV's provide and makes searching millions of pieces of content truly fast and easy. Tivo is the only solution with an interface that integrates broadband, broadcast and cable content delivery through one box with the ability to search this content.
In terms of our strategic partnership with Net Flicks, there's been a terrific response from our users and they have wasted no time in adopting this feature. Almost half of Tivo users who are Net Flicks subscribers have already accessed the Net Flicks library after launching a few months ago, and have been amazed and just how simple and fast it is to add a movie to your queue and immediately begin watching it.
Such broad adoption speaks to the value and the convenience of this service and it's already resulting in cross pollination between our two subscriber bases.
On the advertising and audience measurement front, in a key note address during the annual Association of Television Program Executives, the NAFTP conference in January, we addressed the challenges that commercial avoidance and infinite content choice present for both advertisers and programmers, and we cautioned that if they do not confront these challenges with a greater sense of urgency, the economic consequences for the entire TV industry are going to be devastating.
It's become the rule not the exception for viewers who get a DVR to immediately begin time shifting programs and just as quickly begin avoiding commercials. Our research shows an enormous amount of time shifting, particularly in prime time entertainment programs with an astonishing 50% to 70% of the commercials in these time shifted shows getting fast forwarded through.
Tivo's role here is not only to encourage the industry to act but just as importantly, offer solutions that can help develop a television business model that actually creates new opportunities in a more immersive and more valuable advertising experience.
In addition, critically important to this solution is our second by second audience data. Even in a market where all kinds of advertising expenditures are being pulled back, our combined advertising and research business grew this past quarter when compared to the year ago quarter. During the quarter we expanded the sample size from which our stop watch rating service derives anonymous second by second audience behavioral data, making it 25 times larger than other ratings services, a feature that has been lauded by agencies, marketers and networks.
And we have just added 17 additional channels to our growing list of cable networks that we can produce stable rating measurements for, bringing the total to 93 broadcast and cable channels, 16 of which were previously unmeasured by the industry currency. This data is particularly powerful in today's challenging economy when there is increased scrutiny on the effectiveness of ads and advertising ROI.
Additionally in December, we added a pause menu to our growing menu of suite of interactive ad solutions. This feature enables advertisers to reach audiences with targeted product messages displayed within the pause screen of a live or time shifted program.
This is yet another way we are helping the media industry depart from traditionally passive ad delivery which are largely being skipped by consumers and instead, are providing solutions that actively grab the viewer's attention with more targeted, more actionable advertisements that bring an enhanced level of immediacy to product purchase decisions.
In conclusion, we clearly made significant progress during fiscal 2009 and celebrated a milestone year from a profitability perspective. However, in these uncertain economic times we will continue to efficiently manage our stand alone business while aggressively developing our relationship on the mass distribution, international and advertising fronts and fight to uphold the value of our intellectual property to ensure our business remains on solid financial footing.
We are beginning to see our long term strategic initiatives bear fruit and are confident that our forward momentum will continue in fiscal 2010.
And with that, I'll turn it over to Anna.
Good afternoon everyone. Before I get into the specifics of the fourth quarter, let me quickly give you some impressive highlights of the full year 2009. Our net income was approximately $104 million or about $260,000 when adjusting for the litigation proceeds. This is compared to a loss of approximately $32 million last year.
Adjusted EBITDA was $120 million or about $33 million when adjusted for the litigation proceeds. This compares to a loss of about $3 million last year. And finally, our cash position ended the year at $207 million versus $99 million a year ago.
With that, let me get into some specifics for the fourth quarter. Service technology revenues were $48.5 million. Of that, service revenues were $44.1 million and were impacted by a reduction of $1.7 million from the longer amortization of product lifetime subscriptions.
Technology revenues were $4.4 million down approximately $2.7 million from the year ago quarter. Technology revenues will continue to fluctuate based on the nature and amount of third party work done for service providers in any given quarter.
Excluding about $700,000 in expenses related to stock based compensation, cost of service and technology revenues were $13.2 million which included $11 million related to cost of service revenues. The service gross margin excluding stock based compensation was 75%.
Our hardware loss was $5.1 million and consisted of $2.5 million of loss related to net hardware costs which benefit from the utilization of about $600,000 standard definition inventory reserve and $2.6 million of loss related to marketing development funds and revenue share from the retail channel.
Operating expense excluding stock based compensation as a percentage of service and technology revenues were as follows: sales and marketing expenses were 16% which is a substantial decrease from the 24% we had incurred in the year ago quarter.
The portion of sales and marketing expenses related to subscription acquisition costs represent 3% of service and technology revenue. Research and development expenses were 27% of service and technology revenue and G&A expenses were 18%, up from last quarter due to higher litigation expenses.
This led to a net loss in the fourth quarter of $3.6 million which compares to a net loss of $6.4 million in the year ago quarter and our guidance of a net loss of $10 million to $12 million. Our net loss per share was $0.04 for the quarter which compares to a net loss per share of $0.06 for the year ago quarter. Our net income per share calculation for the quarter was based on 101.3 million shares.
With stock based compensation expenses at $6 million, interest income of $400,000, a tax benefit of $1.8 million and depreciation and amortization expenses of $2.3 million, our adjusted EBITDA for the fourth quarter was $2.5 million. This compares to our adjusted EBITDA guidance of negative $2 million to negative $4 million and to our adjusted EBITDA of $900,000 in the year ago quarter.
The better than anticipated net income in adjusted EBITDA was primarily driven by lower operating expenses as we continue to carefully watch discretionary spend given the economic environment.
Moving to the balance sheet, we ended the year with approximately $207 million in cash and short term investments and no debt. Excluding the Echo Star award and related taxes, we generated about $3.1 million in cash from operations in fiscal 2009 compared to approximately $32 million in cash burn in the prior year.
Now turning to our fourth quarter key pricing and volume metric. As expected our gross additions were down significantly year over year to 59,000 compared to 109,000 in the year ago quarter. Much of this is due to the economic climate, this impact on discretionary spending and the effect on the retail consumer electronic sector. It's important to note that the year over year decline improved as the quarter progressed.
Churn reduction remains a key priority and in the fourth quarter our churn was 1.3% per month down from both the year ago quarter and last quarter. We attribute the improved churn to the longer product lifetime amortization which delays some product lifetime churn and to improvements in our processes.
On a net basis, our Tivo owned subscriptions decreased by 4,000 in the fourth quarter and our Tivo owned subscription base ended the quarter at approximately 1.6 million subscriptions. Our Amazon broadcaster subscription base declined by 121,000 sequentially from the third quarter. As expected, our Direct TV base continued to churn as no new subscriptions are being added and as Direct TV is heavily promoting and HD and own DVR offering.
Further, Comcast talks and international partners did not meaningfully offset the churn from Direct TV as they're in development for the early stages of deployment.
Our overall subscription base stands at approximately 3.3 million subscriptions at the end of January 2009.
Our Tivo owned average revenue per user fell to $7.85 primarily due to our longer amortization period and a larger number of fully amortized product life time subscriptions that once fully amortized are non revenue generating.
At the end of the quarter, we had approximately 225,000 Tivo owned product lifetime subscription that had reached the end of the revenue amortization period. This represents 33% of our current total product lifetime subscription base which stands at 674,000 subscriptions at the end of the fourth quarter.
Tivo owned acquisitions remained low in the fourth quarter. Total acquisition costs were $6.7 million or $114.00 per subscription. On a trailing 12 months basis, our stat was $125.00, declining for the fourth straight quarter as we have continued to be prudent with our marketing spend.
We will continue to manage acquisition expenditures aggressively but we won't benefit as much in fiscal 2010 from the release of standard definition inventory reserves which reduced our acquisition costs by approximately $5 million during fiscal 2009.
Before I get into the specific guidance for the first quarter, let me walk you through a couple of factors that will impact our guidance. First, the increase in amortization period for the majority of our product lifetime subscriptions of 60 months will reduce our Q1 service and technology revenue and increase net loss in adjusted EBITDA each by about $1.3 million compared to the year ago quarter.
Second, we expect to incur substantially higher legal cost from the year ago quarter due to the accelerated discover bench trial on February 17 relating to Echo Star's purported work around.
Third, as I stated before, we don't anticipate significant benefit from the release of the standard definition inventory reserve, especially compared to the $1.6 million benefit in the year ago quarter.
And fourth, we will continue to see declines in our Direct TV subscription revenue until our new HD TV is offered by Direct TV.
With that, for the first quarter, we expect service and technology revenues of $47 million to $49 million, our adjusted EBITDA to be in the range of break even to $2 million and our net loss to be in the range of $6 million to 48 million.
Finally, although we do not provide specific annual guidance, it is our goal to be well into positive adjusted EBITDA territory for fiscal year 2010 despite the current economic pressure and excluding any additional damages that we may receive in the Echo Star litigation.
In addition, we expect to receive additional substantial sums from the Echo Star litigation in fiscal year 2010 which will further increase our adjusted EBITDA possibility.
To wrap up, I'm extremely pleased about our financial performance for fiscal 2009. We achieve net income and adjusted EBITDA profitability even excluding the Echo Star litigation award with over $200 million in cash, no debt and an improved cash flow; we are well positioned to continue to focus on the elements of our business that we believe will drive meaningful growth over time.
This concludes my remarks. Thank you for your time. And we'll now take questions.
(Operator Instructions) Your first question comes from Tony Wible – Janney Montgomery.
Tony Wible – Janney Montgomery
Congratulations on a great quarter in a tough environment. First question I has was really if you could help us delineate what the legal costs are in the first quarter especially with the trial that you had. The reason I ask is because we obviously pull out some benefits so it make sense to pull out some of the costs if they're abundantly large relative to some of the ongoing legal expenses that you typically pay.
The second part of that question is if you do prevail there, do you see any of the cable episodes that are currently licensing for Tivo ramping up any of their efforts around the current offerings?
On the litigation expense front, we do hit periods where the litigation has gotten more intense than others that during those periods litigation expense tends to spike quite considerably and the first quarter of this year, particularly with the work around hearing that we just had coupled with the activity that spawned from that hearing is one of those periods where it spikes significantly. We're not prepared to break that out but it is one of the key issues in terms of what our first quarter EBITDA should look like.
On the issue of the impact of this litigation more broadly, as you well know we have interacted with mass distributors on the basis of the importance of what we offer commercially, what we can do for them that nobody else can do, and that continues to be the mode we are in in terms of our commercial discussions.
I have no doubt that a positive outcome in terms of the current temp hearing will significantly increase the perceptions of the value of our intellectual property and with that I think it will significantly benefit various distribution opportunities for us, but it's one where we have been able to grow our distribution relationships without having the need to directly point to the litigation issues.
Your next question comes from Todd Mitchell – Kaufman Brothers.
Todd Mitchell – Kaufman Brothers
I wanted to ask you about channel in this environment. Can you address where you are seeing traction in this environment? Are you seeing much more of a direct sales model? Is it coming from retail? Can you give us any more color on the license subs and where they're coming from as well?
On the channel issue, we really haven't seen much of a change in terms of the overall split between online and retail so coming into the quarter online subs have been in the mid 30 range for us and as you know the retail situation changed dramatically over the course of the quarter with Circuit City effectively going out of business.
So we do feel good about the increased opportunities that we see possible with Best Buy. The one that we did pursue over the course of the quarter with some success was the amount of bundling of Tivo HD with the purchase of a new HD television set and the customer getting a significant incentive in terms of a discount with that bundling.
And we do see the HD theme carry forward even in tough economic times and the more we can attach ourselves to that with our customer issue, I think the more we'll be able to move the dial forward in that channel.
On the mass distribution front, we haven't broken out the source of any of that distribution. I think it's fair to say that we're still at a developing stage in terms of all those distribution relationship. Obviously Comcast has just rolled in Boston and New England, continuing to refine the offer. We're quite happy with the new offer that they're just looking to try in terms of Tivo and the full DVR service as we are in the whole content delivery broadband delivery, HD DUI search delivery aspects continues to pay significant benefits in terms of the desires of mass distributors to look to do business with us beyond any of my comments on the intellectual property front.
Your next question comes from David Miller – Caris & Company.
David Miller – Caris & Company
I have two questions, the first of which is a follow up on the previous questions. I don't really understand why it is you won't break out the line that has your total number of cable and DVS subs. Our channel checks confirm that you are making progress in that sort of Northern New England area, Hartford, Providence, etc., in those Comcast markets. It's a nice sort of kicker growth business for you. I just don't understand why it is you won't break that out out of your DVS line.
And also, on the stand alone line it looks like net net you only lost four subs sequentially. Is that just due to the overall popularity of the HD box, or was there something else at work there?
On the first question, they aren't our subs to break out. We don't own those subs. When we only had a Direct TV relationship by way of a mass distributor it provided one basis for that being easily understood. As we have multiple sources of mass distribution, those numbers don't belong to us in the sense that the right to report them without the permission of the underlying operator.
I'll point out to you that in the mass distribution space, most if not all operators don't necessarily distinguish between HD and DVR customers. They're bundled together and therefore even numbers at that level aren't generally provided with granularity that would give us the ability to point to that. That may change over time but that's the situation as it stands today.
On the stand alone front the number I think you're pointing to is 4,000 in terms of decline there and given the tough economic situation and obviously increased churn that you are seeing from all kinds of subscription services, we were pleased that churn actually declined both quarter over quarter sequentially as well as year over year and we have begun to make some progress in identifying the stand along single tuner, standard definition Tivo customer which is the source of most of our churn and how to get an HD offer in front of them before an operator may come to them after they buy and HD set and give them the full package that the operator would be able to offer including a generic HD DVR.
And so we're hoping we can continue to make progress on that front, but that's what I felt there in terms of what the number ended up being.
Your next question comes from Alan Gould – Natixis.
Alan Gould – Natixis
Can you update us on how the Cox trials are going and what's the timing of the roll out there? And secondly, you mentioned on stock watch service that you're now using a number that's 25 times larger than other rating services. Could you quantify exactly what number you're talking about? Is that in comparison to Neilson's sampling of 10,000 to 20,000? What's the number there? And could you also give a little color on what you see as the long term revenue opportunity for the stock watch and how that's going?
Well the Cox trials are progressing fine. We're looking to see that service rolled out during the first half of the year. As we had indicated previously, Cox was always about six months behind Comcast since it was we backing the Comcast middle ware and other technical aspects of the package that enabled Tivo and a lot of those were in a state of refinement over the course of the last year to the end of the year and tacking on the six months to that, brings us to the first half of the year in terms of where Cox is, but it continues with its trials of the service which are progressing fine.
On the stock watch front, what I was referring to there was basically that we in the stock watch service have about 100,000 Tivo homes that are within that sample. The general currency used for ratings purposes, Neilson has within its overall sample, about 4,000 DVR homes, and just using that as an approximation of about 4,000 homes representing what they point to is the rough percentage of homes that DVR's within the United States against our 100,000, that's how your get the 25 times.
I think it's fair to say that our stock watch service is making great strides with the research community. I think we've earned a reputation for listening to all kinds of methodological inputs from all parts of the research community. This is a whole new way to think about television viewing and to think about accountability and measurability in television with that has brought all kinds of comments in terms of how we measure, what we measure, the precision with what we measure.
We've been listening to those comments continually to refine it and the feedback not only about how well we're listening to our client base, but how the changes really are creating growing credibility for the product. So that gives us increased sense of optimism even in a tough environment with our ability to grow.
As I indicated earlier, the combined advertising audience research element actually grew in the fourth quarter for us against a quarter that was very, very tough in terms of those kinds of marketing expenditures.
You have no further questions. I'd like to turn the call back over to Mr. Thomas Rogers for any additional or closing remarks.
Thank you very much. It was a quarter that we feel proud of. It was a year we feel really entered a new era for Tivo being able to be net income positive. It was a year of great strides on our overall strategy to create the ultimate television experience, get anything you want whenever you want it, and it was a quarter where we determined that what we have to offer to the future of television for consumers, for advertisers, for marketers is one where our place is continuing to be more important.
So thank you. Stay tuned. Appreciate a tough weather day, everybody making it to the call. Take care.
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