infoGROUP, Inc. Q3 2009 Earnings Call Transcript

infoGROUP, Inc. (IUSA)

Q3 2009 Earnings Call

November 3, 2009 8:30 am ET

Executives

Lisa Olson - SVP

Bill Fairfield - CEO

Tom Oberdorf - CFO

Analysts

Carter Malloy - Stephens, Inc.

Amy Norfles - Pilot

Robert Kirkpatrick - Cardinal Capital

Tom Klagus - Graham Partners

Brian Stack - Pioneer Investments

Presentation

Operator

Good day, and welcome to the infoGROUP third quarter Earnings Call. Today’s conference is being recorded.

At this time, it is my pleasure to turn the conference over to your host, Ms. Lisa Olson, Senior Vice President.

Lisa Olson

Thank you, Casey. Good morning. Thanks for taking the time to join us. As you know, I manage the Investor Relations program for infoGROUP. Joining me this morning is Bill Fairfield, our Chief Executive Officer and Tom Oberdorf, our Chief Financial Officer. Remember, today’s call is being recorded.

Our comments include forward-looking statements, and I ask that you refer to the cautionary language in the earnings release for additional information concerning facts that could cause actual results to differ materially from those in the forward-looking statements.

We also ask you to refer to the documents the Company files from time to time with the Securities and Exchange Commission. These documents contain and identify factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements.

In addition to disclosing results determined in accordance with generally accepted accounting principles or GAAP, infoGROUP also discloses the following non-GAAP measures. One, earnings before interest expense, income taxes and depreciation and amortization or EBITDA; and two, adjusted EBITDA and adjusted earnings per share, excluding the effects of the restructuring, non-recurring and non-cash charges outlined in the press release.

With that being said, let’s now get started on what you all called in for, our third quarter 2009 earnings results. We will have a Q&A session at the conclusion of the remarks.

It is now my pleasure to introduce our CEO, Bill Fairfield.

Bill Fairfield

Thanks, Lisa, and good morning to all of you. Today, we are going to highlight the solid progress we’ve made over the past quarters. We’re pleased to report we’re moving in the right direction, and I think you’ll find that the numbers certainly reflect that.

We’re also pleased with the impacts of our cost savings initiatives that we’ve made over the last several quarters, especially during these tough economic times. We think the hard work is really paying off, and those savings are going straight to the bottom line now.

As we talked about in our last call, historically, the summer and early fall months have shown some weakness. We certainly saw that last year. To be real honest with you, we are not sure whether that’s seasonal activity or self-imposed. But in spite of the economy, we saw a very slight increase during these months, which gives us cause for continued optimism.

We also said that our true litmus test would come in late fall. That is when we’ll know if we are seeing a true turn in marketing spends, since traditionally that is when our clients get ready for the holiday season. We are pleased to report we did experience slight increases, which is reflected in these quarterly numbers.

Let’s now review the numbers and for that I’ll turn it over to Tom Oberdorf, our Chief Financial Officer. Tom?

Tom Oberdorf

Thank you, Bill. Let me start with financials, and then I’ll give you some insight into what I consider some important issues and opportunities facing the company. Additionally, I’ve added some segment and cash flow information to my comments. After my comments, Bill will provide some additional commentary and then we’ll take questions.

During the third quarter of 2009, infoGROUP had revenue of $125 million compared to $145 million for the same period in 2008, representing a decline of 14%. On a currency neutral basis, the company’s revenues declined 12%.

Revenue for the Data Group in the third quarter was $64 million as compared to $74.8 million for the same period last year, a decline of 14% and a 13% decline on a currency neutral basis.

Revenue for the Services Group in the third quarter was $37 million compared to $41.5 million for the same period last year, a decrease of 11%.

Revenue for the Market Research Group in the third quarter was $24 million compared to $28.7 million for the same period last year, a decline of 16%. However, on a currency neutral basis, the decline was 13%.

infoGROUP’s operating income for the third quarter was $9.4 million compared to an operating loss of $12.4 million in the third quarter of last year. During the third quarter of 2009, the company recorded $9.3 million in restructuring, non-recurring, and non-cash charges, primarily for the impairment and write-down of assets, severance costs, facility closures, and charges related to the SEC investigation. When excluding these charges for 2009 and similar charges of $27.6 million for 2008, the increase in non-GAAP operating income was $3.7 million year-on-year.

infoGROUP’s net income for the third quarter of 2009 was $4.8 million or earnings per share of $0.08 as compared to a net loss of $8.6 million or a loss per share of $0.15 last year.

Non-GAAP adjusted earnings per share for the third quarter of 2009 was $0.18 compared to $0.15 for the third quarter of 2008, an increase of $0.03.

In the third quarter of 2009, EBITDA was $16.9 million compared to a loss of $3.3 million in 2008. Adjusted EBITDA, which eliminates certain restructuring, non-recurring and non-cash charges, was $26.2 million in 2009 compared to $24.3 million in 2008. As a result of the cost cutting initiatives we were able to offset the revenue decline experienced in the quarter.

In total, the company recorded $9.3 million in costs during the quarter for restructuring, non-recurring, and non-cash charges. This included $4 million in restructuring costs for severance associated with headcount reductions and facilities closures; $2.9 million for the impairment and write-down of assets; $2 million in legal and professional fees related to the SEC investigation; and $400,000 in non-cash stock compensation expense.

In total, these charges were distributed within the business segments as follows: $3.9 million within the Corporate Activities Group; $3.2 million within the Data Group; $1.6 million in the Marketing Research Group; and the remaining $600,000 was in the Service Group. Last year, these costs were significantly higher, and they were primarily related to legal fees and severance, which were $14 million and $11 million, respectively.

Let me give you a little bit more detail on the segments. Gross margin for the Data Group for the third quarter of both 2009 and 2008 was 69%, and operating income was $15.9 million or 25% of revenue for the third quarter of 2009 compared to $14.7 million or 20% last year.

Gross margin for the Services Group was 74% for the third quarter of 2009 compared to 77% last year, and operating income was $9 million or 24% of revenue compared to $7.9 million or 19% last year. Gross margin for the Marketing Research Group was 37% for the third quarter of 2009 compared to 38% last year.

In the current quarter, we had an operating loss of $700,000 compared to an operating income of $1.4 million for the third quarter of 2008.

The total company capital expenditures for the third quarter of 2009 was $3.6 million compared to $10.2 million for the third quarter of 2008. Total company operating cash flow from continuing operations was $9.2 million for the third quarter of 2009 compared to $6.3 million last year.

Let me go over a couple of key points now. First, our revenue for the third quarter of 2009 reflects an increase over the second quarter of 2009 by $3.4 million. We are pleased to see a stabilization of revenue in Q3 and expect Q4 to be in line with Q3.

Second, cost reduction initiatives continue to offset our economic headwinds. In the February earnings call, we projected annualized cost savings of between $15 million and $20 million. At that time, we expected it to take about 18 months to implement these initiatives.

In our last call in August, we reported that these initiatives had an estimated annual savings of $30 million, and would be achieved in this fiscal year. As a result of our continued effort and focus on cost reduction during the quarter, we now expect $35 million of annualized savings for the initiatives through the third quarter.

Now remember, these cost savings are in addition to the $16 million of annualized savings achieved in 2008.

These cost savings continue to drive down our SG&A run rate. Non-GAAP SG&A for the third quarter of 2009 was $53.5 million after eliminating one-time costs compared to $69.7 million last year, resulting in a reduction of $16.2 million quarter-over-quarter. We are really making progress in this area.

Third, we continue to focus on lowering our debt and improving our bank leverage ratio. Just to put this in perspective, at year-end we had $300 million in debt and our leverage ratio, a (inaudible) covenant, was 2.51. With the proceeds from the sale of Macro and our cost savings initiatives, our debt now stands at $187 million and our leverage ratio at 1.97. Our debt continues to decline and I expect it to continue throughout the year.

I’ll now turn it back over to Bill Fairfield.

Bill Fairfield

Thanks, Tom. Following a few remarks, we’ll be ready for Q&A, but let me just share with you some thoughts on the business, if I may. As Tom has outlined in the financial section, we are extremely pleased with our third quarter results. We continued our aggressive cost savings initiatives, as well as paid down debt on the tune of another $6.3 million I believe.

We also had 3% sequential growth, the first since first quarter of 2008. It was also our strongest quarter for operating income, both from a percentage basis and a dollar amount, as well as the strongest earnings per share since the first quarter of 2008. All great news and it confirms the work of our folks that we’re moving this company in the right direction.

Tom gave you some granularity in terms of the business units, so let me just talk a little bit about the sequential growth of the various business units over Q2 of this year. The Data Group was up 3.1%, and they had their highest operating income percent since 2007. The Services Group was up 6.3%, again this is sequential compared to Q2 of this year, and they had their highest operating income since 2007.

The Research Group was down 2.9%. And some of you’ve heard me talk about this before, but of all the various segments in marketing spend, the Research area has probably been hit the hardest. We’re hoping that that will show some strength here towards the end of the year.

Many of you have asked if we are seeing any increase in marketing spends from our clients. And I would say the answer to that is yes, we are seeing slight increases, but as I’ve cautioned before, I think it’s way too early to call it a trend. We think, as we continue to develop new products and services like we highlighted at our Shareholders Day last week, we will continue to position the company in a way to make ourselves extremely relevant to our customers, hence, increasing our share of their marketing spend.

One of the other main topics we discussed at the Shareholder Day was this notion of what’s the new normal. There is a whole new era of frugalism upon us with signs of permanency that frankly we haven’t seen before. It’s our task as a company to create and demonstrate value, which has become more important than ever.

Traditional media and direct mail is under siege, and it’s being replaced by integrated digital marketing. This, frankly, is right in our wheelhouse, if marketing dollars are limited and our clients must deliver a solid ROI on those investments, (inaudible) better to get targeted information than from infoGROUP.

We also chatted about data and how accessible it is these days and the concept that is basically it’s free. I’ve mentioned to you before that there has been a CMO 50 study, which stated that it’s predicted that the data will double in the next five years, and much of it, as I said, will essentially be free. While data may become more or less free, what is still important is how accessible it is and how it’s organized, if it’s in an appropriate context and whether or not marketers have the ability to use it.

We, frankly, welcome the increase in the amount of data because we have the tools to make sense of that data. That’s the company’s sweet spot and our crown jewels, if you will. We can help our clients manage all of that data in seconds rather than in days, and that means a quicker time to market and produce measurable results. We provide immediacy, personalization, authenticity, and findability, if you will, for all of that data for our clients. All measurable attributes located in one company and that company is infoGROUP.

So in closing, let me just say how pleased I am with how hard our employees have worked to move the company in the right direction. We are taking the appropriate costs out of the business. Our non-GAAP SG&A is at the lowest it’s been in the last three years, and we continue to reduce our debt.

Equally importantly is that as we’ve done this, we’ve also reinvested in the business. We’ve reinvested in new products, product extensions, training of our sales force, and development of our people. We are doing exactly what we told you we are going to do when we had our first earnings call just a year ago.

So let’s begin our Q&A, and let me start it off, first of all, by chatting a little bit about what’s probably on your mind. Many of you have seen the article that ran in the Omaha World-Herald this weekend. We did issue a press release saying we are continually evaluating the operations and prospects for the company to determine what course is best for our shareholders.

The release continued to highlight that as we announced on December 22, 2008, the company’s independent directors retained Evercore Partners as independent financial advisers to assist the company in determining what would be in the best interests of all shareholders, and that process, frankly, continues.

Those two points have not changed from when that release was issued in December of last year. Roger Siboni, our Chairman of the Board of Directors, added that we have made no decision to sell the company. We have several options before us, which include continuing to operate the company as an independent organization. Whichever course we follow will be determined by what optimizes value for our shareholders. As you may predict, I cannot add any additional comments.

So with that being said, let’s get on with whatever other questions you may have.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). We’ll take our first question from Carter Malloy with Stephens.

Carter Malloy - Stephens, Inc.

Tom, looking at the fourth quarter, you said it’s going to be in line with Q3. Is that sequentially flat revenues?

Tom Oberdorf

It means in line. When we had the call in the Q2, we said the same thing about Q3 in line. I mean it’s just we are not kind of predicting and looking out for the quarters, but we obviously have some indications and we project out. But I would just like to keep it as an in line.

Carter Malloy - Stephens, Inc.

Okay. And on the SG&A expense, can we assume this $53 million or $53.5 million is sort of is a non-GAAP sort of go forward run rate?

Tom Oberdorf

As a go forward run rate for this year, now I have said, guys, just remember there were no increases this year. Bonuses will be affected based on the economy and how we are performing against budget, so there will be some increases. We get constantly asked through these calls, are the savings that we made permanent, and the answer is yes. But although these savings are permanent, we are going to see natural, what I’ll call, modest salary increases, and we’ll be budgeting and hopefully achieving full bonus payouts for next fiscal year. So there will be some increases.

Carter Malloy - Stephens, Inc.

Okay. And on your branding efforts, you guys consolidated a few brands this last quarter. Can we continue to expect that activity? Or is there going to be any larger re-branding efforts as far as company-wide or even considering the parent company name?

Bill Fairfield

Carter, as part of our branding, I can tell you we have no intent on changing the company name. We have, I think, completed our branding exercise. I am looking at Lisa as I say this because she's been steering that whole effort. We presented to the Board last week sort of a finalized branding and identity initiative, which we'll start implementing as we speak.

Carter Malloy - Stephens, Inc.

And then, Tom, again, on the expenses in Q4, is there going to be additional SEC and other restructuring there?

Tom Oberdorf

There will be SEC costs. I think we’ve said this before, we have budgeted. And just to give you a feel, I think it was, we said in the early remarks, $2 million this quarter for SEC related costs. But just to give you a flavor, we budgeted $1 million a month all of this fiscal year; I think we've mentioned that once before.

Carter Malloy - Stephens, Inc.

But you guys should be through incurring those charges, correct?

Tom Oberdorf

No. We indemnify the officers, so to the extent that there's still things going on with the officers, we will be paying the legal bills for them.

Carter Malloy - Stephens, Inc.

But the general conclusion of the overall investigation should cut back those expenses, correct?

Tom Oberdorf

We, again, we are forecasting for next year. And we will certainly be cutting back those projections for next year as we think these things will tail off. And to be quite honest, we have no crystal ball of exactly when that cutoff happens. But we will be paring back what our estimates are of these costs for sure.

Operator

Thank you. We’ll take our next question from [Amy Norfles of Pilot].

Amy Norfles - Pilot

How are you? Can you talk about which segments or sectors or end markets where we are seeing strength or weaknesses in the two different groups, in Data and Services?

Bill Fairfield

I can highlight that a little bit, Amy. I'll talk a little bit about the Services Group first. As you know, the direct mail and catalog business has been under some pressure over the course of the last year to year and a half. We've seen some pressure there. Frankly, as we head into the holiday season, this will be the time when those businesses that are involved in that will likely see some seasonal uptick and some strength. How much of that will be longer term trend remains to be seen. We also typically see some seasonal uptick this time of the year in e-mail marketing.

As you know, we have a big position in e-mail marketing. That whole arena continues to grow, if memory serves me right, at about a 7 or 8% annualized growth rate. But again, it has some seasonality impact. So this is the time of the year where we would expect to see some strength in that arena.

As it relates to the Data group, we are seeing strengths pretty much across the board there, both in the small business environment as well as in mid-markets and enterprise. It's not a groundswell. But I think what we are seeing is whether it's a small business or a large business, people now believe that they’ve seen the bottom. They think they now know how they can budget their organizations, whether its marketing spend or any other kind of spend. So they have a little bit more confidence in spending their dollars. And again, they are trying to spend those reduced dollars more efficiently, so that fits right into the kinds of products and service that we offer.

Amy Norfles - Pilot

Okay. Can you talk about any new contract wins that you have had or anything that can give us a little bit of insight to what's happening in next year and the year after that?

Bill Fairfield

Well, Amy, I can't give you specific company names. I can tell you that we’ve had a number of nice wins. I’ll just give you an idea of various segments. We've had a number of nice wins and three-year contacts in the, what I'll call, the financial services sector. We've seen some resumed strength there. We've had several nice contracts, again, long-term contracts, in the travel and leisure industry. We just won a new contract in the communications sector yesterday.

So we are seeing a little bit of strength. And again, these are two- and three-year contracts. So we should have some insight into that revenue trend going forward.

Amy Norfles - Pilot

And are you taking the business from somebody, or this is new business that was never out there before?

Bill Fairfield

Well, I would have to think through. I can't give you any percentages, but it's been a little bit of both.

Amy Norfles - Pilot

And it's just because of your product offerings and the way that you are disseminating the information via Internet and all of that stuff? And --

Bill Fairfield

Exactly. Exactly.

Amy Norfles - Pilot

Okay. Is there anything that more that you could tell us about the press releases and all of the stuff that's been in the local papers there other than what you've already told us?

Bill Fairfield

I really can't, Amy. Like I’ve said, this is not new information. It goes back to last fall when there was an unfortunate press release that we had to react to; and we did react. It's appropriate that we engaged Evercore Partners to sort of help us think through strategic alternatives, and they continue to do that with our M&A committee.

Amy Norfles - Pilot

All right. Well, irrespective, I think you guys are doing a great job turning around the business and running the business. And even if it doesn't get sold, the company is doing very well. So congratulations, guys.

Operator

We’ll take our next question from Robert Kirkpatrick with Cardinal Capital.

Robert Kirkpatrick - Cardinal Capital

Thank you. Could you remind us, kind of, a little bit more detail, as to whatever Core has done for you in the year or so that they have been retained? And then also, who is on the M&A committee please?

Bill Fairfield

Sure. Let me go with the M&A committee first. The M&A Committee Group consists of the three newest independent directors. So that would be Roger Siboni, Tom Thomas; and Gary Morin, is the Chairman of that committee. And really what Evercore has done over the course of the last year is really try to help us figure out how to value the business. We've gone through a fairly extensive exercise internally with their guidance of projecting three and five years out.

And as you can imagine, that's a little like throwing a dart at a dartboard. But we've gone through what I think has been a useful exercise internally, really from the bottoms up, looking at each business, thinking about the lifecycle of that business and work stance and hence put together a projected growth model.

We've also then built some addendums onto that based upon some of the product initiatives we have going that we think will enhance the revenue opportunities there. Once all of that gets bundled up, which it has, and then, of course, we do all sorts of what-ifs around it, then they go through an evaluation process, using all sorts of methodologies that investment bankers do to sort of give us an idea of given the discounted cash flow of this business and other comparables, where should our value be in terms of the stock price.

And so they have provided that to the company. So we've got a good feel for what we think the value of this business would be if it continues to be independent and run properly. And then, so then they can use that to assess other strategic alternatives.

Robert Kirkpatrick - Cardinal Capital

During this year, have you looked seriously at acquisition opportunities, making acquisitions of other companies, be they big or small?

Bill Fairfield

Over the course of the last few months, we have looked at making some acquisitions. We’ve had some, what I’ll call, educational discussions with our Board. These would not be acquisitions that from a size standpoint would necessarily be material, but from a technology standpoint, we think would sort of round out some of the capabilities we already have. And we are not in a position as yet to go forward with any of those, but there are some under consideration.

Robert Kirkpatrick - Cardinal Capital

Okay. And then, Tom, I believe going back to Carter's discussion about legal and professional fees related to the SEC investigation, I think the expectation perhaps is that now that the company has reached a settlement with the SEC that those numbers would begin to come down because you wouldn't have as much ongoing costs associated with that.

Could you maybe address the issue of looking back over the last year, how much of those fees were related to defending current and/or former directors and officers versus defending the company? Is that possible at all?

Tom Oberdorf

I don't know if it's possible to do it live here. I don't have the breakdown of our costs between what I'll just call defending the company versus defending former officers or directors. I would say that a good share of that is defending individuals versus the company. So in kind of a broad brush approach here, we do expect the expenses to go down. We do expect in preparing our budget for next year but as this year we projected them for the whole year that they wouldn't last for the full year.

But with all those comments said, I don't have the crystal ball, and it's out of my control. So I think we are all feeling some of the comments that both you and Carter say that that, yes, we hope this is getting behind us and that these costs are to subside and they’ll be smaller and they’ll end sooner. But I just don't have the crystal ball for that.

Robert Kirkpatrick - Cardinal Capital

But certainly legally, Bill, they are getting behind you?

Tom Oberdorf

Legally, we think they should start to be reduced.

Robert Kirkpatrick - Cardinal Capital

Okay. And did you pick up the working capital adjustment and the working capital escrow release on the sale of the Macro business during the quarter?

Tom Oberdorf

Yes. Yes.

Robert Kirkpatrick - Cardinal Capital

And is that part of the $9 million plus that you talked about, or was that below the operating cash flow?

Tom Oberdorf

It was below the operating.

Robert Kirkpatrick - Cardinal Capital

Great. And congratulations on the results. And certainly as someone who attended the Shareholder meeting and the Industry Day, I appreciate the professionalism of both the directors and all the employees that I was out there and met.

Operator

Thank you. (Operator Instructions). We’ll take our next question from [Tom Klagus with Graham Partners].

Tom Klagus - Graham Partners

It looks like you guys are doing a great job. I do have a negative question though, which is, I guess, the revenues were flat. Deferred revenues went down by about $9 million, $8 million. And receivables were up by about $11 million sequentially. Is that seasonal? Was there demand weakness? Can you speak to those points?

Tom Oberdorf

Sure. This is Tom. When you say sequentially over June versus September, you're talking about?

Tom Klagus - Graham Partners

Right. So deferred was down and receivables were up?

Tom Oberdorf

Okay. So we do break our receivables down between trade receivables and receivables in list brokerage business, where you’ll see offsetting accounts payable for the list brokerage business.

But trade receivables for the remainder part of the business other than list brokerage was basically very much in line with June. And as far as the deferred income, we do see a pickup in both the summer and in the winter, basically as contracts renew both in December and in June. So I do think that part of that is seasonal in nature.

Operator

Thank you. And we’ll take our next question from Brian Stack with Pioneer Investments. (Operator Instructions).

Brian Stack - Pioneer Investments

Yes. You've done a great job on reducing expenses and so forth, and you gave a little bit of a prognosis for the near term. But along the lines of earlier discussion about what the longer term opportunity would be in terms of taking out costs and sort of rationalizing these disparate operations, which for years were sort of a mishmash. Can you talk a little bit about what's left to be done over, let's say, a two- to three-year time frame? And what that opportunity looks like compared to what we’ve witnessed to date?

Bill Fairfield

Brian, this is Bill. I'll start and try to be responsive to your question, and then I’ll invite Tom to chime in here. I think there are two or three areas of continued opportunity for us in terms of rationalizing the business. We still have some independent business units that, in many respects, do the same kind of thing and address the same kind of customers.

And there are going to be opportunities as we go forward to rationalize those business, integrate them both on a front-end, client-facing standpoint and back-office. You may ask, well, why haven't you done that already? Then the reality is it's a balancing act. You've got to be careful not to totally disrupt revenue generation while you are going through this. But I think we've got some opportunities in that area in all three of our major segments, to be real honest with you. So I think there is some opportunities there.

From a quantifiable standpoint, are they as great as the opportunities that we've already realized? I am not sure I can give you much insight into that. I just don't know the answer to that yet.

The other area, where we have opportunities, and we’ve talked about this before, is to use your word; we had kind of a mishmash. And part of that mishmash was the fact that each of our disparate business units sort of did their own thing when it came to IT. And we'll have different financial systems. We’ll have different back-office systems. We'll have different platforms. And Tom McAlister, our CIO, has done a terrific job along with his corporate steering committee, getting their arms around that.

But there is still some progress to be made there. And that will take a little bit more time because we’ve got to integrate new systems while we are end-of-lifing some of them that we have. But we think there are some opportunities there driven by IT as well.

Tom, any --?

Tom Oberdorf

Yes. You guys all poke us and ask us about next year, the SG&A run rate where we're going to be. And I just want to go back to say that I always want to caveat this by saying, look, we are going to have natural costs going up. But as early on as I can remember in the February call, we said, here's what we are working on. These initiatives for this current year, we do believe we'll have initiatives for year two and year three, and Bill kind of outlined that.

We do believe that there will be IT initiatives, which takes much longer than kind of some of the immediate things we've already done. We are already starting to look at how we get more of a common order entry system, and we are starting that process as we speak.

But those benefits come over a two- and three-year period. But I do think that we’ll see cost savings and benefits next year in some of the consolidation, and even in our third year here when we get more of the IT benefits.

Bill Fairfield

Brian, just one other highlight, too. I think there are going to be some natural efficiencies that we are going to get from the branding exercise that we've talked about before. We are not going to – as the importance of our marketing spend, but I think we have the opportunity to become much more efficient in that world as we narrow sort of the number of brands we have out there.

So hopefully that was responsive. I’m sorry, we can’t be more precise, but those are the general areas of improvement that we see over the next two or three years.

Brian Stack - Pioneer Investments

That was helpful. Thank you.

Operator

Thank you. And it appears there are no further questions. At this time, Ms. Olson, I would like to turn the conference back over to you for any additional or closing remarks.

Lisa Olson

Once, again, thank you so much for sharing your morning with us. And for those that came out for the Shareholder Day last Thursday, I hope that you saw some new products and services that you feel like are going to take the company forward.

With that, you can call me anytime, send me an e-mail and we’ll be responsive to your questions. Thank you. And have a great day.

Operator

Thank you. This does conclude today’s conference. We appreciate your participation. You may now disconnect.

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