Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)

Black Box Corporation (NASDAQ:BBOX)

F3Q2014 Earnings Conference Call

January 28, 2014; 05:00 p.m. ET

Executives

Mike McAndrew - President & Chief Executive Officer

Tim Huffmyer - Vice President & Chief Financial Officer

Ken Davis - Executive Vice President of North American Commercial Services

Gary Doyle - Vice President of Investor Relations

Analysts

Greg Burns - Sidoti & Company

Brad Evans - Heartland Advisors

Operator

Ladies and gentlemen, thank you for standing by and welcome to the third quarter fiscal 2014 earnings call.

At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions). As a reminder, this call is being recorded.

I would now like to turn the conference over to our host, Mr. Gary Doyle, Vice President of Investor Relations. Please go ahead sir.

Gary Doyle

Thank you. Good evening and welcome to Black Box Corporation's, third quarter of fiscal 2014 earnings conference call. With us today are Mike McAndrew, President and CEO of Black Box Corporation; Tim Huffmyer, our Vice President and Chief Financial Officer; and Ken Davis, our Executive Vice President of North American Commercial Services.

Earlier today we announced our third quarter of fiscal 2014 results by issuing a press release and furnishing it to the Securities and Exchange Commission on Form 8-K. We also posted this press release on our website at blackbox.com.

In addition to commentary from our executive team, we have a brief slide presentation supplementing the call. The slides are available for download on the IR section of our website at blackbox.com. For those of you who are accessing the webcast, the slides will present on your screen.

Before we begin and as a reminder, matters discussed in this call may contain forward-looking statements that involve risks and uncertainties concerning Black Box's expected financial performance. Actual results may differ materially from expected results and reported results should not be considered as an indication of future performance.

Potential factors that could affect our business and financial results include changes in economic conditions in our end markets and the general market at large. Additional factors are included in our most recent Form 10-K and today's press release.

On this call and as presented in today's press release, we will discuss some financial information that includes non-GAAP financial measures, including adjusted operating income percentage or adjusted operating margin, operating net income, operating earnings per share, free cash flow, EBITDA, adjusted EBITDA and organic or same-office revenue comparisons. We will limit any non-GAAP financial discussions today to the specific measures in our press release.

Please refer to the schedules that accompany the press release for a reconciliation of non-GAAP financial measurements to the most directly comparable GAAP financial measurement and other supplemental information.

Now I’d like to turn the call over to Mr. Mike McAndrew.

Mike McAndrew

Thank you Gary. Welcome and thank you for joining us today. I’d like to begin today’s call with a review of our third quarter of fiscal 2014 results.

For the quarter ended December 31, our revenue was $240 million, our operating earnings per share was $0.49 and we consumed $1.6 million in cash flow from operations. In addition we continue to return value to our shareholder through $6 million of stock repurchase and approximately $1.5 million of dividend payments.

Our outlook remains as previously guided. We continue to invest to transform Black Box into a more relevant and effective solution provider. In our products business, the introduction of our direct sales team has picked up momentum and has generated over $13 million of new revenue this year. These deals are larger than our historical deal size and carry a slightly lower gross margin.

With the organizational infrastructure already in place, we see the opportunity for increased operating margin leverage. Our return on direct sales team investment has been very good and we continue to identify new sales talent to add to the team.

Commercial activity in our services business has been mixed. The Core Telephony business continues to be challenged by a decrease in spend and competitive pricing. However we are seeing growth in opportunities in our wireless and Cisco solution practices.

Our backlog from these initiatives has increased approximately 25% over the previous quarter and as discussed last quarter, we continue to make investments to improve our capabilities in those areas.

The challenges on the federal government side have not changed, despite the progress on a budget plan. We remain cautious on the federal outlook for both our product and services business.

As we move forward my objective is to continue to transform Black Box into an organization that can more efficiently serve our current markets, while investing to participate in higher growth opportunities. Pursuing that objective requires changes in our operating structure and our go-to-market approach. Success will require time, resources and discipline around pace and return. I’m committed to this transformation and I’m confident that we’ll be successful.

I’ll ask Tim to give us a financial update and then I’ll come back for additional comments and to take your questions.

Tim Huffmyer

Thank you, Mike. In the third quarter we posted revenue of $240 million, down 5% from $252 million reported for the same period last year and above our guidance provided last quarter of $230 million to $235 million. Maintenance revenue, which is derived primarily from long-term agreements with our service clients was $47 million or 20% of our revenue for the third quarter.

Our six-month order backlog now stands at $167 million compared to $178 million at the end of the second quarter. The decrease in backlog is attributable to the consumption of previously awarded federal projects, which is typical during our third quarter.

Gross margin for the quarter was 30.8%. This is lower than the 31% to 32% used in the guidance we provided last quarter. This decrease is primarily within the North America services segment where we experienced slower than expected gross margin on specific jobs due to higher than expected costs to complete these projects. We believe these jobs were not representative of our typical service delivery and believe them to be isolated within the quarter.

Based on our forward look, our fourth quarter and fiscal 2014 guidance for gross margin remains at 31% to 32%. In the third quarter SG&A was $60.4 million, which includes approximately $800,000 of restructuring expenses. Restructuring expenses will reduce our projected SG&A by an annual run rate of approximately $750,000. As noted last quarter, much of the savings generated from our restructuring activity is being invested in new growth programs.

We anticipate additional restructuring cost of approximately $1.5 million over the remainder of fiscal 2014. Our adjusted operating income margin for the third quarter was 5.9%, down from last quarters 7%. This decrease is attributable to a decrease in our revenue and compression in our gross margins.

Third quarter operating earnings per share was $0.49, which was at the high end of the guidance range we provided last quarter. During the third quarter our GAAP effective income tax rate was 27.5%, which was down from the second quarter rate of 50.3%.

During the third quarter we recognized two discreet tax benefits related to an uncertain tax position and a federal return to provision adjustment. Although these discrete items occurred, we are still guiding to an operational and GAAP annual effective income tax rate of 39.5% for fiscal 2014.

Third quarter cash flow used for operating activities was $1.6 million. The use of operating cash in the current quarter is largely attributable to the timing of certain milestone related invoices, related to specific state and federal contracts. These invoices appropriately converted from cost and excessive billings to accounts receivable within the quarter, but remained unpaid at the end of the quarter. This increase in working capital does not impact the ability of the business to generate cash.

Aggregate DSOs for the third quarter, inclusive of cost in excess of billings and billings in excess of cost were 89 days, up from the second quarter aggregate DSOs of 84 days and over our fiscal 2014 goal of 85 days.

The increase in aggregate DSOs relates primarily to the timing of payments from our federal clients. The increase is not unexpected and will normalize in the ordinary course of business over the next few quarters. At the end of the third quarter we had cash and cash equivalents of $26 million and total debt of $180 million resulting in a net debt position of $154 million.

This is an $8 million increase from a net debt position of $146 million at the end of the second quarter. This increase is primarily related to the working capital items previously mentioned. Currently, our incremental borrowing rate is 1.5% and our leverage ratio is 2.5 times. Our historical range for our leverage ratio is 1.5 to 2.6 times.

Total capacity under our line of credit is $400 million, which expires in March 2017. I am comfortable with these debt levels based on our historical range and our demonstrated ability to generate free cash flow.

During the third quarter we repurchased approximately 230,000 shares or just over 1% of our shares outstanding for approximately $6 million. On January 27, our Board of Directors approved an additional 1 million shares for repurchases, resulting in a current authorization to repurchase approximately 1.2 million additional shares.

Over the last 2.5 years we have invested over $67 million to repurchase 2.7 million shares or approximately 15% of our shares outstanding. Repurchases may continue to occur from time-to-time depending on factors such as cash flow, share price, other potential uses of cash and general market conditions.

While we may continue to repurchase shares for the foreseeable future, there can be no assurance as to the timing or amount of such purchases. We are committed to a balanced deployment of capital, while evaluating long-term growth of the company or short-term tangible returns for our shareholders.

Now I would like to provide guidance for the fourth quarter and the full year of fiscal 2014. For the fourth quarter we are targeting reported revenues of $230 million to $235 million, an operating EPS range of $0.42 to $0.47. This operating EPS range includes stock based compensation expense of $1.3 million, interest expense of $1.3 million and expected operational income tax rate of 39.5%. We expect capital expenditures of $1 million to $2 million and our expected weighted average shares outstanding is $15.8 million.

Our fourth quarter guidance reflects an approximate 2% decrease in organic revenue from the same period last year. For the full year of fiscal 2014 we are targeting reported revenues of $963 million to $968 million, an operating EPS range of $2.05 to $2.10. This operating EPS range includes stock based compensation expense of $6.8 million, interest expense of $5.4 million and an expected operational income tax rate of 39.5%. We expect capital expenditures of $7 million and our expected weighted average shares outstanding is $16 million for the full year.

Our annual guidance projects an approximate 3% decrease in our organic revenue from fiscal 2013. This guidance excludes restructuring expense, intangible amortization, joint venture investment loss and the impact of changes in the fair market value of our interest rate swaps. It is also before any new merger and acquisition activity that has not been announced.

Now I’d like to turn the call back over to Mike.

Michael McAndrew

Thanks Tim. Before we turn the call over for questions, I’d like to take a minute to look forward on our two businesses. In the products business the yearly results of the new go-to-market strategy, specifically our introduction of a direct sales team gives us confidence to continue investing to drive organic growth. We believe that a broader direct sales team, coupled with a mature and functionally efficient product introduction support model will deliver expanding operating margins.

Relative to the service business, we made investments around technologies with high growth prospects. Implementation of our solution practices has provided additional enablement tools to our sales force. Over the last several quarters we’ve identified, pursued and captured incremental revenues by introducing these solutions into our existing client base. Last quarter we indicated that we identified process and manpower constrains and we are investing to strengthen the practices.

With these practices in place and operating, our focus moving forward is to evaluate and improve our sales effectiveness, both form a process and talent perspective. I believe there is revenue growth opportunity available in our services business from investment and evaluation and enhancement of our sales organization. We are currently engaged in the first steps of that process.

In summary, we are passionately focused on improving our business from all dimensions. The future Black Box is bright and will continue to generate value to our clients, share holders and key members by delivering world class product and service solutions.

Now I’d like to open up the line for questions.

Question-and-Answer Session

Operator

(Operator Instructions). And our first question will go to the line of Greg Burns with Sidoti. Please go ahead.

Greg Burns - Sidoti & Company

Good afternoon.

Mike McAndrew

Hey Greg.

Greg Burns - Sidoti & Company

Question on the federal market, with the budget being finally passed, have you seen any improvement from that at all?

Mike McAndrew

I would say that we are seeing revenue levels and activity around the fed clients consistent with what we sort of laid out last quarter. I think that there may be more clarity relative to the budget, but relative to impact on our business year and the quarter just wrapped up and trajectory going into our fourth quarter, that sort of a run rate that we’re at and that we sort of see moving forward, no real significant change in trajectory.

Greg Burns - Sidoti & Company

So, no improvement in number or size of bids and award activity at all?

Mike McAndrew

That’s correct. I mean we have bid on a couple with a much lesser number than a year ago period and we’ve had a couple of wins, but I would say that clearly at a level lower than we were at this point last year.

Greg Burns - Sidoti & Company

And on the commercial side of the business, I know you talked about investment decisions not necessarily being at the top of the list for the communication systems, but could you give us a sense of what percent of your installed base is on old systems or is it kind of – the aging of the communication systems in your installed base, could you give us a sense of maybe the kind of pent-up demand that might be building our market.

Mike McAndrew

Like conversion opportunity.

Greg Burns - Sidoti & Company

Yes, and how you feel about your position to be there when they finally decide to convert.

Mike McAndrew

Yes well, I would say that north of 50% of our clients are still running older technologies. We feel we’re in a good position because of our relationship with them and clearly the relationships we have with the leading OEMs in that space, we feel like we are in a good position there. I would say the whole aspect of a hosted offering, you know we just signed a couple of agreements here and I think right around this three months ago we announced them and so having a hosted offering to our portfolio is another step forward in maintaining contemporary portfolio of UC offerings.

Greg Burns - Sidoti & Company

Okay. And do you see any potential benefit from the Mitel and Aastra acquisition. I know Aastra is more enterprise space. Is there any benefit for you with that combination?

Mike McAndrew

Well I would like to see what happens there. Aastra’s stronger international presence right then in North America, our relation with Mitel is very strong and we’ve seen growth in the Mitel solution. They are one of the partners on the hosted offering side, actually the first one we paired up with and so I’d say North America, we don’t see a whole lot of benefit at this point, but obviously as they look at the product set and are able to enhance their portfolio with the position we have with them as a channel partner, I think I don’t see any downside and clearly being in position with them now offers opportunity for upside.

Greg Burns - Sidoti & Company

Okay, and then lastly Tim, the international products was a little – seemed a little better than what I was looking for and it looks like it was very low margin business. Could you just give us a little color on what was going on there in the quarter?

Tim Huffmyer

Yes Greg. The international products and really products in North America as well, what we’re seeing there is some nicer, larger deals come through at profit, the gross profit levels, a little bit lower than we traditionally have seen. So we believe our outlook there is bright and we still are guiding to the 31% to 32% consolidated, but just the timing on product mix and our profitability levels on certain orders are coming through there.

Greg Burns - Sidoti & Company

Okay. And was that strength in Europe or in other markets?

Tim Huffmyer

It was in Europe.

Mike McAndrew

Yes, I think the predominant part of our international products business is in Europe, like probably three quarters of our international number comes from Europe.

Greg Burns - Sidoti & Company

Okay, I’ll hop back in the queue.

Mike McAndrew

Thanks Greg.

Operator

(Operator Instructions). And we do have a follow-up back from Greg Burns with Sidoti. Please go ahead.

Greg Burns - Sidoti & Company

Hi guys.

Mike McAndrew

Welcome back.

Greg Burns - Sidoti & Company

So I just wanted to I guess dig a little deeper on the solutions practices. I know in the past you talked about the number of branches that are funneling deals and then the percentage of salesmen that have submitted or submitted something through the solution practices or any kind of qualitative color you could give us on that.

Ken Davis

Hey Greg, it’s Ken. Yes, I’d like to answer that question. So we continue to obviously enable our sales teams out there across North America. We continue to invest in our solution practices to help provide our sales folks out in the field, better enable them to identify deals that relates to Cisco, wireless or DAS deals.

We think that continued investment in that area to enable the sales team is important and so we continue to see many of our offices put opportunities through the solution practices and I talked about numbers a quarter or two ago that continues to increase as we get better out in the field, understanding how to position those particular technologies, working hand in hand with our resident experts through the solution practices.

So we are still very much bullish on continued investments in those and we believe that there’s still definite upside opportunities, both with existing clients and obviously new clients as well and as Mike mentioned, we continue to put investments into those practices to drive more revenue opportunities.

Greg Burns - Sidoti & Company

And when we, I guess look at the pipeline for the solutions practices back quarter-over-quarter, but the backlog grew pretty nicely. It then applies you getting better conversion rates on what’s in the pipeline and any color on why the pipeline is kind of stagnated here?

Ken Davis

Yes well, we continue to try to put the most qualified deals in the pipeline as well and as we get better educated on qualified deals and our teams get better educated on deals that are more likely to win, you might see just a drop in the pipeline, but we continue to convert deals through the pipeline as well.

So again, we think qualification of deals is important. It gives us a better chance of winning. We continue to refine the education process of what’s the best deals to look at and give our self the best chance to win. So again, we think it’s a very important enablement tool for our teams to have that ability to access the solution practices and the experts that come with the solution practices to help increase our win rate.

Greg Burns - Sidoti & Company

And this is less than your maintenance revenue stream. Just as you become more I guess software centric or software based, is there any risk to your maintenance revenue stream as it becomes more about software assurance and rolling a truck out and driving on-site maintenance.

Mike McAndrew

Yes, I would say that we touched on that about a year ago. That clearly in the IP environment, the traditional maintenance stream is different. Now it does depend on what particular solution we’re supporting, so there is downward pressure on that number.

I think we’ve been bouncing around $47 million, $48 million a quarter here for the last several quarters. So at the same time I would say that we are looking to expand our capabilities on remote monitoring beyond just voice, but to the network at large that might help augment any declines there and of course hosted solutions are more of a recurring revenue stream that has very attractive characteristics as well.

Greg Burns - Sidoti & Company

Okay, thank you.

Mike McAndrew

Thanks Greg.

Operator

Thank you. And next we’ll go to the line of Brad Evans with Heartland. Your line is open.

Brad Evans – Heartland Advisors

Good afternoon everybody.

Mike McAndrew

Hey Brad.

Brad Evans – Heartland Advisors

Thank you for taking the question.

Mike McAndrew

Sure.

Brad Evans – Heartland Advisors

Do you feel like the business is stabilized at this point?

Mike McAndrew

Is it stabilized? Elements of it are more stable than others. I would say that our traditional core EC business still has headwinds to it. We’re having success around those other technologies that we’ve talked about around the solution practices. We are still going to be down year-to-year. Our guidance suggests 3% decline coming off of 10% last year. So I believe we are turning the quarter Brad, but is it fully stabilized? I would say that I would not claim victory on that at this point.

Brad Evans – Heartland Advisors

As you look out over the next, say 18 months, assuming as was discussed here we have a federal budget I guess, so some visibility there. Well it appears the US economy is gradually improving and I guess we’re hearing the same out of Europe as well. So as you think about headwinds versus tailwinds over the next say 18 months, how would you stack those up?

Mike McAndrew

Well clearly in improving the macro environment it’s helpful. So that is not another headwind you need to be faced with. I think normalized spending on the fed side will pay, predictability there, which you all aware, its been a bit illusive over the last couple of years and so ranking them relative to risk. I’d say that we don’t have any further headwinds. We are operating in an environment that we should be able to turn the corner here and drive growth into our business, which you know we are passionately focused on with measurable specific programs.

So I’d say the other element that if you put on a risk or headwind is the decline in gross margin in the UC space. Finding the organic growth illusive with the decline in GP is not the best scenario to be playing in, so again its more shifting our resources to the higher growth areas that we see within our portfolio today.

Brad Evans – Heartland Advisors

And when you look at your pipeline, just generally speaking are they in the aggregate are they trending higher at this point or how would you characterize your dashboards or your pipelines of business across products and services at this point from what you can see today.

Mike McAndrew

Sure. On the product side you know, pipelines there we get awards and we ship them, so it’s a …

Brad Evans – Heartland Advisors

Very limited I guess.

Mike McAndrew

Very limited. On the services side, its been sort of at the same level for the last several quarters, so we have not seen growth or decline in that area on the commercial side. I would say relative to last year our pipeline is much smaller on the federal part of our services business as we touched on some of the less number of opportunities that are available to be bid on. So commercial services flat, fed services down from last year.

Brad Evans – Heartland Advisors

Okay, so it sounds like if you were to see improvement in the business, at this point it would be more a result of your internal initiatives versus a macro uplift. Is that a correct statement or…

Mike McAndrew

That is a correct statement, yes.

Brad Evans – Heartland Advisors

But if you were to start to see capital spending amongst your customers start to improve a bit and addressing legacy telephony issues that would be a positive for you obviously.

Mike McAndrew

Absolutely, we’ll take that one.

Brad Evans – Heartland Advisors

I guess going through a period of austerity, I don’t want to speak for – I shouldn’t speak to your customers, but from what I understand, upgrading systems, telephone systems to a certain degree is kind of a – its just kind of on, down the ladder in terms of area of importance, in terms of – you know they don’t need to do it, so I guess you probably see that more when they are feeling more confident. Do you sense that that confidence is starting to turn a bit or not yet?

Mike McAndrew

I don’t feel that that is happening at this point Brad and I think your right on point. We’ve talked about that relative to where UC or telephony falls in the priority schemes relative to CIOs and their budgets and their priorities for the upcoming year. It continues to be at the lower end of the list.

Brad Evans – Heartland Advisors

Any further cost actions you can take across the organization or do you feel like your sized right now for the reality of the market.

Mike McAndrew

I would say taking into account the investments we are marking in those other areas, I think this is sort of where we’re at. As we continue to see or have experienced reductions on the growth rates around UC solutions, we are doing the proper thing there relative to cost management, but we are kind of taking those expenses and moving them over to the areas we’ve talked about where we see growth prospects. So, I would say we’re at a, an appropriate spot right now relative to that sort of transformation.

Brad Evans – Heartland Advisors

Got it. One last question and I’ll turn it over. Its very unusual when you guys are – some of the strengths of the company has been pretty consistent, you have positive operating cash flow. So just recognizing the cash usage this quarter, is it appropriate to build the mosaic that perhaps some timing effects in there, where perhaps fourth quarter cash flows standout to the positive.

Tim Huffmyer

Yes, we fully expect that positive cash flow. I think if you look at the real dynamic in there, we’ve been talking in the last several quarters about converting a lot of our unbilled AR and billing it out, really a lot of that having to do with our federal clients. So we are seeing that move across the pipeline. The jump in our DSOs is really on the build side as we’ve seen that reduction out of the unbilled side. So that conversion should happen this quarter and so its really more of a timing element relative to that process.

Brad Evans – Heartland Advisors

Okay, so if you were to have a stronger operating cash flow quarter, could we expect perhaps the buyback to be a little more aggressive or do you just continue to – you’ve done a phenomenal job. I applaud you for really bending the number of shares down in a dramatic fashion. I think that’s going to pay dividends for shareholders when the underline business turns, which should happen eventually.

Mike McAndrew

That’s our plan.

Brad Evans – Heartland Advisors

Okay, so hopefully…

Tim Huffmyer

Yes, I think the other thing to look at, our leverage is up to the higher end of our range. We’ve been operating in the 1.5 to 2.5 range historically. We are now up at around 2.5. So we’re looking closely at our capital deployment to make sure that we have a good handle on our debt levels relative to our contemporary run rate and profitability and cash flow.

So you might see a slightly more focus on debt reduction here in the near term Brad, but as you saw, we did get our authorization on share repurchases increased to $1 million or $2 million, so that is also part of the program moving forward.

Brad Evans – Heartland Advisors

Okay, thank you.

Tim Huffmyer

Thanks Brad.

Operator

At this time Mr. Doyle there are no further questions. Please continue.

Gary Doyle

Okay, thank you. Well thank you all for your time today. As a reminder, our press release has been filed on Form 8-K and on blackbox.com. On the IR front Mike and Tim will present at the Bank of America Merrill Lynch Small & Mid Cap conference in Boston on March 19 and we’ll send out a press release with more details as that event gets closer. Thank you again and this concludes today's conference call.

Operator

Ladies and gentlemen, this conference will be available for replay after 7:00 p.m. Eastern time today through February 4, 2014 at midnight. You may access the AT&T teleconference replay system at anytime by dialing 1-320-365-3844 and entering the access code 314588. That number again is 1-320-365-3844 and entering the access code 314588.

That does conclude our conference for today. Thank you for your participation and for using AT&T Executive Teleconference Service. You may now disconnect.

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

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

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

Source: Black Box's CEO Discusses F3Q2014 Results - Earnings Call Transcript

Check out Seeking Alpha’s new Earnings Center »

This Transcript
All Transcripts