Executives
Bill Bambarger – CFO
Paul Casner – President and CEO
Analysts
Dick Ryan – Dougherty & Company
Bonnie Wachtel – Wachtel & Co., Inc.
Chip Richardson [ph]
Integral Systems, Inc. (ISYS) Fiscal 2010 Guidance Conference Call Transcript Call Transcript October 19, 2009 11:00 AM ET
Operator
Ladies and gentlemen, thank you for standing by. Welcome to the discussion of Fiscal 2010 Guidance Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. (Operator instructions). As a reminder, this conference is being recorded Monday, October 19th, 2009.
I would now like to turn the conference over to our speaker, Mr. Bill Bambarger, CFO of Integral Systems. Please go ahead, sir.
Bill Bambarger
Okay. Thank you, Rhonda. Good morning, everyone. I’m Bill Bambarger, CFO of Integral Systems. With me on the call today is Paul Casner, our Chief Executive Officer; Miller Adams, our Executive Vice President and General Counsel; and Katy Herr, our Vice President of Marketing and Communications.
I’ll start off with a Safe Harbor comment. I need to advise everyone that this call contains forward-looking statements that involves risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such statements are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
The agenda for the call today is as follows. First, I will review the company’s financial projections for the remainder of fiscal 2009 and then outline the guidance for 2010 we released earlier this morning. After that, I’ll turn the call over to Paul Casner, our President and CEO. Paul will discuss his operational viewpoint for all of you. After his remarks, we’ll then open the call for questions.
As of today, we are far along in the process of closing the books for fiscal 2009 and we are actively working with our auditors to complete the year-end process successfully. Although there is still a lot of work to do, particularly over the next several weeks, the process is running smoothly and we are currently on schedule to complete our audit and report our definitive fiscal 2009 earnings in early December.
Based on our preliminary review thus far, we are reaffirming our previously issued guidance of approximately $0.15 of earnings per share for fiscal year-end September 2009. We have also recently completed our fiscal 2010 business planning process where leaders from every part of our organization were tasked with preparing a comprehensive bottoms-up project for the new fiscal year. Their operational plans and cost structures were closely reviewed by management to ensure that we not only have the most accurate forecast based on our current knowledge and expectations, but also to ensure that our costs are under control and we are spending money only where it will benefit the company and our shareholders most.
Looking to 2010, we are confident that it will be an improvement over fiscal 2009’s financial performance. We have received several new contract awards and extensions, totaling over $50 million in the past several weeks that increases our backlog and support our projections for fiscal ’10.
Additionally, we’ll continue to monitor discretionary spending closely. We have instituted a hiring freeze in corporate support and we have eliminated the non-recurring spending that was incurred in early fiscal 2009. These improvements will translate into higher earnings and ultimately increase shareholder value. Our entire management team is committed to achieving or exceeding our projections for fiscal 2010.
As mentioned in our release this morning, highlights of our projections for fiscal 2010 are as follows. Revenue is projected to grow by approximately 5% to 7% over fiscal 2009, which translates into revenue of approximately $170 million to $174 million. Gross profit margins are expected to improve to approximately 37% in 2010.
One note there, we have changed our accounting for operating costs for some of our smaller subsidiaries. Previously, they accounted for bidding a proposal cost as well as research and development in their overhead and we've made the decision to consistently account for these investments across the enterprise as part of operating costs instead of overhead costs. So they will now be included in our D&A costs moving forward.
Operating expenses or SG&A are expected to be flat year-over-year to approximately $54 million, but represents a decrease as a percent of sales. Earnings per share are estimated to be between $0.35 and $0.40 for fiscal 2010. Also, as we mentioned in our release this morning, this projection takes into account the investment of approximately $0.07 per share to establish our new services line of business. We’ll discuss this in a little greater detail shortly.
EBITDA is projected to be approximately $20 million for fiscal 2010. Backlog is projected to grow by about $15 million to $20 million and cash flow from operations is projected to be in excess of $25 million to $30 million in fiscal 2010.
I’ll now elaborate on some of these financial metrics. With regards to revenue, as I mentioned, we are projecting top line organic growth of 5% to 7% in fiscal 2010. Our government segment is projecting stable year-over-year revenue. This is a positive though given that fiscal 2009 included a significant $5 million antenna delivery as zero profit. That’s being replaced this year with revenue of more traditional government margins.
We are starting the year off solidly with significant bookings for our CCS-C and RAIDRS programs, extending those contracts both through 2013. We are guarded but optimistic about our GPS OCX proposal with Northrop Grumman that will hopefully be announced later in the fiscal year.
We expect continued growth in our commercial segment for 2010. Our international opportunities, particularly in Europe and Japan are strong and we are tracking several initiatives that will not only contribute to earnings this year, but will also increase backlog for the year as well.
Finally, we expect our product segment to grow significantly this year. In fiscal 2009, RT Logic fared well, but our SAT, Newpoint, and Lumistar subsidiaries struggled since they were affected mainly by the slow economy and delayed contract awards. In the past couple of weeks, we received several awards totaling over $5 million for these units that were delayed from earlier this year. This strengthens our confidence that this will be a good year for our products group.
With regards to gross profit, gross margins will improve in fiscal 2010 for three primary reasons. Number one, we do not expect another significant cost pass-through on our government programs like we did with the antenna costs for one of our air force programs in 2009. Number two, we do not expect a recurrence of the significant bad debt expense that we experienced with ProtoStar in 2009. And finally, we expect a more favorable mix of product revenue to total revenue in 2010 as RT Logic, SAT, Newpoint, and Lumistar contributions continue to increase.
Under operating expenses, operating expenses are projected to be flat year-over-year. I know everyone was looking for a reduction in operating expense and by and large we will achieve that in fiscal 2010. We will lower corporate SG&A by several million dollars, significantly reducing accounting, legal, and other compliance costs that were one-time investments in 2009.
Additionally, we implemented a hiring freeze on all new positions in corporate support. Offsetting these savings are three very important investments that management and the Board feel is necessary to increase shareholder value.
First, we have added approximately $2.8 million in incentives for 2010. We were not able to reward our employees in 2009, nor was it merited given our weak overall performance. Regardless, our employees have worked harder than ever in 2009 and we expect that same level of effort in 2010. Assuming we achieve the targets that we have been discussing, we feel it’s important to reward our employees for the efforts in order to retain our solid and highly experienced workforce.
Secondly, we are investing approximately $1.7 million, again a $0.07 impact to earnings per share in a new services line of business. Our well established experience in the market and our solid reputation with our customers will help launch this exciting new opportunity. Paul will speak about this a little more in detail shortly, but we feel it’s necessarily for us to invest in new products and services in order for the company to continue to grow.
This leads to the third investment we are making in fiscal 2010. It’s important that we continue to seek new and expanding opportunities in our marketplace. We are enhancing and refocusing our IR&D and business development initiatives by restructuring these functions that work more closely with operations and by providing additional capital to further these initiatives. Again, Paul will speak a little more about this in a moment.
Earnings per share. Higher revenue and higher gross margins coupled with flat operating costs will translate into higher earnings per share. We are committed to focusing heavily on our business opportunities and managing our costs accordingly. Our systems and controls are in place for us to adapt to changing business conditions quickly and we are devoted to a reasonable return to our shareholders while maintaining reasonable investments in our future.
EBITDA and operating cash flow. Our business has historically generated ample cash for the company to use for pursuing growth oriented opportunities. Fiscal 2009 was a difficult year for cash flow due to lower earnings and higher government rates that we were not able to invoice in a timely manner. We have worked hard to overcome both of these issues. Higher earnings in fiscal 2010 will generate approximately $20 million of EBITDA, most of which translates into operating cash flow.
Additionally, we have been proactively working with the DCAA to resolve our provisional rates for 2008, 2009, and 2010. We anticipate a resolution in the first quarter of fiscal 2010, which means we will be able to recover over $10 million of past costs. By submitting fiscal 2010 provisional rates in a timelier manner and not overspending during the fiscal year, we do not anticipate a significant increase in unbilled revenue like we saw in fiscal 2009. We therefore expect to generate operating cash flow of $25 million to $30 million in fiscal 2010.
Finally, with backlog, we have several relatively large bookings to start the year. We received significant extensions on our RAIDRS and CCS-C contracts and had several relatively large contract awards for some of our products divisions. Backlog will increase in the first quarter of fiscal 2010 for the first time in quite a while. While we are pleased with what we have accomplished so far, we are focusing on continuing this trend through the entire fiscal year. We have several large opportunities ahead of us that will continue to grow our backlog significantly and we are dedicated to seeing them come to provision.
Thanks for your time and attention. I’ll now turn the discussion over to Paul for his remarks.
Paul Casner
Thanks, Bill. It’s a pleasure to join you on this call for the first time. As you are aware, I stepped in as President and CEO of Integral Systems in August, having served as a Director of the company for the past three years. Over the last 60 days, I have spent a great deal of time with our leadership team in Integral Systems, spoken with many of our customers and with quite a number of new members of the investment community. Let me state unequivocally that I am energized and optimistic about the opportunities facing this company. However, we have some work to do this year to realize these opportunities.
As we enter a new fiscal year, we continue to face a challenging marketplace, requiring that we focus on key points of leverage and opportunity in our business. More than ever, our focus on the core fundamentals will guide our business decisions and the other actions. My role here is to stabilize the company, get us focused on the business fundamentals, predictable growth, customer service, and profitability.
Turning to FY ’10, in order to achieve the sustainable long-term growth we know the business is capable of, we have a laser-like focus on prioritizing our investments and streamlining our business processes. This means driving out costs wherever possible and redeploying those resources in areas that will make the most positive impact on our business. To this end, we recently completed a comprehensive assessment of our current operations and future business opportunities as part of our FY 2010 budget process. We have implemented several organizational adjustments to better align our core competencies, improve our ability to focus on high potential growth opportunities.
Previously, we had three operating groups, the government group, the commercial group, and the space communications group. We have realigned into four operating groups for FY ’10. Our new operating groups are military and intelligence group comprising our air force programs division, national programs division, and our government engineering organization. This group is focused on expanding our core systems into adjacent military and intelligence communities.
Civil and commercial group. We have added our civil programs government division to our core commercial command and control line of business. Co-locating our civil programs and our commercial programs will better enable technology transfer between these key customer sets. Our European subsidiary Integral Systems Europe also reports into this operating group.
Products group. We have brought all of our product divisions into a common organization to improve product development and facilitate product integration. This organization includes our EPOCH command and control product line, our RT Logic, Newpoint Technologies, Lumistar, and SAT Corporation subsidiaries.
Finally, it is my pleasure to announce that we have established an Integral Systems Service Group. Drawing on our core expertise in command and control, signal analysis, and network management, we are positioned to offer a comprehensive array of cost-effective services to address the growing needs of satellite operators, resellers, users, and regulators of satellite and satellite interface networks worldwide. This is a multi-billion dollar market that allows us to leverage our current global infrastructure to provide our current product offering as outsource services to customers who may not have the capital or business model to support the investment in new products and infrastructure.
This new line of business represents a $1.7 million investment in FY ’10. We anticipate that it will be profitable within two to three years and should be a significant revenue generator within three to five years. We are excited about this new growth area and our plan to launch this new business area later this year.
We continue to look for opportunities to achieve greater efficiencies in our cost structure. As I mentioned earlier, we recently completed a comprehensive FY ’10 budget process whereby we already removed several million dollars in corporate costs. Going forward, I remain committed to continuing to streamline our operations, but not at the detriment of investing in our people and our products.
Finally, recognizing that our people are our greatest single asset, we are in a process of moving to a common benefit structure that will include all of our subsidiaries. With this effort to be completed by the end of calendar 2009, a common benefit structure will give us a greater purchasing power in the market and will allow us to continue to provide the most comprehensive, cost-effective benefits option for our employees.
In closing, we are getting back to basics. We are committed to stabilizing the company, executing disciplined growth strategy, delivering measurable organic growth, cutting our cost structure, and delivering value to our shareholders. We will continue to invest in our most valuable assets of people and our products. They are the key to ensuring that Integral Systems provide the best products and solutions to help our customers achieve mission and business success.
With that, we’d like to open this call for questions.
Bill Bambarger
Rhonda, we are ready for questions.
Question-and-Answer Session
Operator
Thank you. (Operator instructions). Our first question comes from the line of Dick Ryan with Dougherty & Company. Please proceed with your question.
Dick Ryan – Dougherty & Company
Thank you. Bill, just a couple more housekeeping items on the assumptions. What kind of tax rate are you looking at for ’10?
Bill Bambarger
About 36.5%, Dick.
Dick Ryan – Dougherty & Company
Okay. And I think you mentioned in your narrative, but I didn’t catch, did you talk about capital expenditures?
Bill Bambarger
I did not, but our CapEx for 2010 will be pretty much in line with what you usually see, between $3 million and $4 million.
Dick Ryan – Dougherty & Company
Okay.
Bill Bambarger
And most of that is – most of that’s just typical computer refresh and things like that.
Dick Ryan – Dougherty & Company
Yes, okay. In your top line revenue, is it primarily driven from backlog or do you – are you including some new business and new business awards in that number?
Bill Bambarger
Well, a lot of it is driven from our backlog. We are not very aggressive with regards to GPS or any other new contract awards. We do have some revenue in there for new contract awards, but only where we felt were – they were the most probable and they are heavily factored.
Dick Ryan – Dougherty & Company
Okay. And GPS, I think you said end of the year, was that the end of your fiscal year or calendar '09 when that is anticipated?
Bill Bambarger
Well, right now the government is saying November or December I believe. Quite frankly, we are probably expecting something after the beginning of the calendar year. As you know, that’s totally out of our control, but that’s the latest expectation that we’ve heard.
Dick Ryan – Dougherty & Company
Great. Thank you. I’ll get back in line.
Bill Bambarger
All right. Thanks, Dick.
Operator
(Operator instructions). Our next question comes from the line of Bonnie Wachtel with Wachtel & Co., Inc. Please proceed with your question.
Bonnie Wachtel – Wachtel & Co., Inc.
Thank you. Three questions this morning. First, on the government division and I maybe referring back to the old organization because I lost track a little bit of the new organization, although it sounded promising. What percentage of your government business approximately is made up by the two programs, RAIDRS and CCS-C?
Bill Bambarger
Good morning, Bonnie.
Bonnie Wachtel – Wachtel & Co., Inc.
Good morning.
Bill Bambarger
Well, I think RAIDRS is probably – I don't have the exact numbers in front of me, but RAIDRS is probably 40% to 50% and CCS-C is 20% to 25%.
Bonnie Wachtel – Wachtel & Co., Inc.
Okay, that’s great. Next, when – in looking over the 2009 numbers, which obviously was a disappointing year for all of us, what I saw was the division that had taken the biggest hit – I think we are looking at earnings primarily, was RT Logic. And I’m reminded by the calendar here it’s been just about exactly a year since the Board allowed John Higginbotham, who was in place for a month at that time to fire the three founders of RT Logic. Have you taken any steps to try to hire them back yet?
Bill Bambarger
Well, actually Bonnie, let me just correct one thing you mentioned. Our space communications segment included RT Logic, SAT, and Lumistar all together in fiscal 2009 and actually, our RT Logic operation met our expectations that we set in mid-year. So they did not have that disappointing of a fiscal year as you mentioned. The segment looks significantly underachieving because SAT and Lumistar were significantly adversely affected by the economy and was the major reason why that whole segment did not achieve.
As far as hiring back Sean, Mark, and Randy, I don't think there has been any discussions along those lines nor do we have any expectations to do so.
Paul Casner
I’d like to add something, Bill. Bonnie, we have a lot of confidence in the management at RT right now. I think they are doing a wonderful job. I spent some time out there, made it clear to the current management and to the people how important they are to our business. And I feel pretty good about where they are today and where they are headed. So I’m pretty comfortable with the current management.
Bonnie Wachtel – Wachtel & Co., Inc.
All right. I appreciate the clarification. I thought Lumistar has been folded into RT. I certainly have – also have nothing but admiration for the current management of the division. That doesn't mean that the division isn’t significantly in a riskier position because of that firing. But I’m sure you don't want to debate that.
So let me go on to my third question, which is – just looking at these numbers overall, Paul, I – I’m struck by the following. In the four – I counted closer to four years that you’ve been in place and I think many of the shareholders have looked to you as an extremely significant person on the Board, the person with the best background in this type of industry and someone with such a good – such a stellar record at DRS.
And obviously, you are one person on the Board that consists of several others, but I looked at the numbers overall and the revenues have continued to move up primarily from CCS-C and RAIDRS, bottom line has degraded in almost every way and even though I see you are going to post a break-even quarter in the fourth quarter before moving up next year, but even next year we are looking at 3.5% net margin on a company that used to post 10% net margin, that was before you came in, return on equity of 5% or 6%. Do you consider these numbers good?
Paul Casner
Bonnie, I’m equally disappointed. As you pointed out, my background is kind of operations and I had a great run at DRS and thank you for that comment. But none of us are satisfied with the numbers as they stand right now and we are going to continue to try to streamline the business and invest where we think we can get the best growth. I’m committed to – I’ve been here for 60 days, we’ve taken out about $6 million in corporate expense. We’ve added back the bonus money as Bill has pointed out.
And it – this is a work in progress. I want to get the numbers back up as well as you do and I think over time, over the next year or two, we are going to be able to do that. My focus is on taking out indirect costs around this place, getting ourselves more competitive and growing the backlog and I think we have a – I think we are on the way to doing that. I’m not finished with 2010, I’m going to continue that process and my belief is that we are going to see much better numbers.
Bonnie Wachtel – Wachtel & Co., Inc.
I appreciate everything you said, Paul. I feel better about it if you haven't been one of the authors driving up the expenses. And with that, I will get back in line.
Bill Bambarger
Okay, thanks. Rhonda, next question?
Operator
(Operator instructions). We do have a follow-up question from Bonnie Wachtel. Please proceed with your question.
Bonnie Wachtel – Wachtel & Co., Inc.
I’ll try to be brief and very polite and supportive. A few more questions. Pete Gaffney, now as I recall Pete's history, he was CEO briefly and on the Board. He was forced to move out of those positions. You placed him under contract when most of his compatriots were charged with securities fraud or somewhere around there. When E&Y came off, you moved his contract into consulting status. It is my understanding he is back now. But – I have no objection to Pete Gaffney working in this company, but could you tell us his current position?
Paul Casner
Yes, Bonnie, I can tell you that. Actually, he was never moved to a consultant, he was moved to a contract employee. And when I got here, I believe that was in his best interest and our best interest to bring him back as an employee and his current job is strategic planning and corporate development. We intend to pursue the strategic plan pretty aggressively, I want to make sure that we are – that our focus is right. We intend to get our product roadmaps done so we are clear on how we are going to invest our money and where we are going to invest it. And I think Pete can help us a lot there. And in addition to that, it is my intention to look at strategic acquisitions and so Pete is going to help us in the area of M&A.
Bonnie Wachtel – Wachtel & Co., Inc.
Just for my knowledge as Pete an officer, what’s his title?
Paul Casner
He’s not an officer. His title is Vice President of Corporate Development and Strategic Planning.
Bonnie Wachtel – Wachtel & Co., Inc.
Okay. Next, I noticed this. There was a filing that Mr. Baldwin received 15,000 options or I think that was the number at $6.90 on September 30th. I didn’t see any filings for anybody else. Could you – what was that for?
Bill Bambarger
Well, as you know Bonnie, Alan was on as – his severance or separation agreement from when he stepped down as CEO last summer and as – throughout the past year, Alan wasn’t part of the incentive compensation program, the stock option program, or the Board of Directors’ fees. That all changed in late July, early August when his one-year period was up and he became part of the standard Board Stock Option Issuance Program that all the other Board members received earlier. So we made the decision or the Board made the decision, excuse me, to grant him his stock option shares for next year.
Bonnie Wachtel – Wachtel & Co., Inc.
Okay. Last question. As we know, I submitted a shareholder proposal, which was requesting that the Board opt out of the Maryland unsolicited takeover law. That's the law that was used a few years ago to shut the Board. I haven't heard back from you. Does that mean you do intend to run that?
Paul Casner
Bonnie, yes, we do. We received your input. We do intend to put it in the proxy and we – I believe that we will consider that at the December meeting and come to some conclusion about how the Board feels about that. I’m recommending to the Board that we recommend a vote for.
Bonnie Wachtel – Wachtel & Co., Inc.
I appreciate that. Okay, that’s it for me.
Bill Bambarger
Thanks, Bonnie. Rhonda, are there any other questions?
Operator
Yes. Our next question is a follow-up question from Dick Ryan with Dougherty & Company. Please proceed with your question.
Dick Ryan – Dougherty & Company
Yes, thank you. Bill, you mentioned some good extensions from RAIDRS and CCS-C. Can you address a little bit about new business, either that has been won or that could be in the pipeline on a near-term outlook?
Bill Bambarger
Sure. Well, we put out a couple of releases recently regarding some contract awards with our SAT organization as well as I think with our Lumistar organization. Those awards were over $6 million over the past couple of weeks, which we are pretty happy for. Given the size of those operations, those are pretty significant contract awards. We did receive a positive response on our puppet master program. However, that was protested and we are in the process of working with the customer now on what the next steps are for that. So we are hoping to have some positive news on that going forward.
And then we are tracking quite a bit of other programs, work with NATO, work with some other air force programs, things like that that we think are high likelihood of success going forward.
Dick Ryan – Dougherty & Company
The puppet master opportunity, is that for products groups?
Bill Bambarger
Yes. That’s primarily RT Logic, as well as some of our other products and I believe it’s SAT and Newpoint as well.
Dick Ryan – Dougherty & Company
Okay. One other thing. Paul, on the new service offering, are you – you maybe building a network operating center. Is that part of the program and where would you be housing that?
Paul Casner
Yes, the intention is to have a couple of different NOCs. We certainly will put one in Colorado Springs. There will also be one here and there will be one in Europe as well. So that would – should – that should position us along with our global footprint with antennas to provide a worldwide service of signal analysis and geolocation services.
Dick Ryan – Dougherty & Company
Can you talk a little bit about the business opportunities that you might be targeting for this new group over the next say 12 months or two or three years out?
Paul Casner
Well, we think there are a lot of small satellite – and I’m not talking about the size of the satellite now, but small satellite operators that actually can’t afford the array of products that we have to offer, but would dearly like to have the capability that they represent. So we talked to several of them in the European arena that have expressed interest and in fact, we’ve also talked to a couple of our customers who are considering letting us operate their network.
So right now, it’s a pretty highly competitive situation, but we believe that there are a number of operators who would love to have some level of this service and also some of our existing customers that might be interested in having us take over their network operation.
Dick Ryan – Dougherty & Company
Okay, great. Thank you.
Bill Bambarger
Rhonda, there anyone else?
Operator
(Operator instructions). Our next question comes from the line of Chip Richardson [ph] who is a private investor. Please proceed with your question.
Chip Richardson
My question has to do with the new business opportunity. Why would it have so much of impact on earnings negatively?
Bill Bambarger
Well, Chip, the amount that we are investing, the $1.7 million is mostly incremental to our business and with – we've been very conservative about anticipating revenue coming in, particularly in this next fiscal year. So with the $1.7 million that we are investing in terms of hardware and software and people and marketing and business development, that translates into $0.07 per share after tax.
Chip Richardson
Why would you need the new people in all of this stuff until – could you explain that a little better?
Bill Bambarger
Well, some of the hardware and facilities and things like that that we talked about with regards to the network operation centers, we have to have a demonstration capability and we have to have the ability to deliver on the contracts when they come in. With regards to the marketing and business development, obviously for obvious reasons we’ll need to be ahead of that with regards to trying to win new work or new business in this line.
Chip Richardson
All right. Thank you.
Bill Bambarger
Well, thank you.
Operator
(Operator instructions). And at this time, I show no further pending questions. I’ll turn it back to you.
Bill Bambarger
Okay. Thank you, Rhonda. Thank you, everybody, for being on our call today. We wanted to get the news out to you as quickly as possible. I know I’ve received a lot of calls inquiring about our outlook for fiscal 2010. I think you can take from the call that we are cautiously optimistic about going forward. We are very disappointed at our results and our performance for fiscal 2009 and are dedicating every day to making sure that we don’t have a repeat of a year like that. Hopefully, the economy will work in our favor along with everyone else in the industry and certainly with the cost management initiatives and the new business opportunities that we have ahead of us, we are energized and we are excited.
Paul and I are heading out later this week to Boston, Hartford, and New York to get out and talk to some of you and some other potential investors. We are going to continue that approach through the end of the year. We anticipate releasing our definitive 2009 results the first week of December once we are finished with our audit process with Ernst & Young. And then we anticipate filing the 10-K very shortly after that.
Thank you again, everyone. We look forward to talking to you in early December. Bye-bye.
Operator
Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line.
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