Jean Fontana - ICR
Brian Woolf - CEO
Tom Stoltz - CFO and COO
Steph Wissink - Piper Jaffray
Jeremy Hamblin - Dougherty & Company
Body Central Corp (OTCQB:BODY) Q4 2013 Earnings Conference Call March 25, 2014 4:30 PM ET
Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Fourth Quarter and Fiscal Year 2013 Earnings Release Conference Call. As a reminder today's conference is being recorded. At this time all participants are in a listen only mode. Following the presentation we will conduct a question-and-answer session. (Operator Instructions)
I would now like to turn the conference over to Ms. Jean Fontana of ICR. Please go ahead, Ms. Fontana.
Thank you. Good afternoon, everyone. Thank you for joining us today for Body Central's Fourth Quarter and Full Year 2013 Earnings Conference Call. Hosting the call today will be Brian Woolf, the Company's Chief Executive Officer; and Tom Stoltz, the company's Chief Operating Officer and Chief Financial Officer. You can access a copy of today's press release on the Company's website at www.bodycentral.com or by dialing (203) 682-8200.
Before we begin, let me remind you that certain statements made on today's call during our prepared remarks and in response to your questions may constitute forward-looking statements and are made pursuant to and within the meaning of the Safe Harbor provisions of the Private Security Litigations Reform Act of 1995 as amended. Such forward-looking statements are subject to both unknown and known risks and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are described in the Company's reports and registration statements filed with the SEC. Investors should not assume that statements made during the conference call today will be offered at a later time. Body Central undertakes no obligation to update any of the information discussed on today's call.
With that, I will turn the call over to Brian Woolf.
Thank you, Jean. And thank you all for joining us. On today's call, I will review our fourth-quarter performance, highlight some of our more recent progress and discuss the steps we are taking to improve the business. Tom will then take you through details of our fourth quarter financial results and provide some additional financing updates, including steps we are taking to provide more capital resources necessary to operate the business through this transition period.
You can see from our press release, we did not realize the improvement we expected in the fourth quarter. While we have come a long way in the last year in building the team, the processes and procedures that we believed will help us grow our business, the retail environment remains extremely challenging, which increases the difficulty of a turnaround.
The net loss for the quarter and the year, along with a negative cash flow from operations have had a negative impact on our liquidity and raised substantial doubt about our ability to continue is a growing concern. As a result we have taken actions to increase our liquidity which we believe should be adequate to finance our working capital needs through 2014, if we are successful in executing our business plan.
We closed the new credit facility with a total commitment of $17 million in early February 2014. We also reduced corporate cost and deferred non-essential capital projects. We continue to pursue sale-leaseback financing arrangements for previously incurred capital projects. As we move forward, we will continue to explore other financing options to provide us with additional capital. Tom will speak in greater detail on these measures shortly.
Regarding fourth-quarter results, comp store sales were down 26% in the quarter and the direct business was down 6%. Our operating margin was down significantly year-over-year and our net loss was $23.3 million for the fourth quarter. We recognized the importance of getting our inventory cleaned in time for spring deliveries, and took substantial markdowns resulting in a sharp decline in our gross margin.
We were able to reduce per store inventory levels by 19% across as compared to the end of last year, putting us in better shape to improve the productivity of our new assortment of merchandise. Maintaining leaner inventory levels will allow us to chase better selling styles, achieve higher full price sell through rates and realize higher AURs.
Tighter inventory management and improved product assortment should also translate into improved markdown levels, which we are starting to experience. As I mentioned in our last call, we previously over relied on fashion products which skewed too heavily towards a younger customer. We believe that we need to provide an assortment, that a better balance of fashion and core merchandise to appeal to a broader customer base and bring back the mid-20s to mid-30s customers that we catered to during our periods of peak performance.
This customer has a higher level of discretionary income and therefore we are working to offer her a better balance of casual, winter wear and evening wear attires to support more of her lifestyle leads. To better identify and accommodate the fashion perfections and needs of our target customer, we have strengthened the overall merchandising team. We promoted to CMO, Patti Simigran, who served as the CMO of Maurice's, leading their $600 million business before she joined the company. Patti possesses in-depth knowledge of the entire market, and has expertise in coordinating the merchandising and marketing efforts from calendar planning and product sales standpoint. We also hired Scott Graner as VP and Merchandise Manager to oversee jewelry, shoes, outerwear, lingerie, activewear and all other accessory categories. Scott’s background includes, The Limited, Victoria's Secret and Macy's.
In addition, we upgraded key talents in merchandising categories, such as tops, dresses and jewelry. We have also made progress in improving our sourcing strategy with the addition of new vendors and partnerships that have led to increased initial mark-ups, while maintaining existing retail price point levels. We are collaborating with these vendors to develop exclusive products, which will provide us with a differentiation necessary to compete more effectively.
In marketing, we are focused on driving new and repeat traffic to our stores and website. Our campaign to collect customer mobile information for text messaging has been very successful and we have collected over 450,000 numbers to date, sending weekly offers to increase their traffic. We also have over 2 million active email addresses and currently send out approximately 5 emails per week that announce special deals and new products.
In addition we are building our social media platform to create excitement about our stores and the fashions we carry, with weekly editorials and increased use of multimedia to drive engagement with our brand. Throughout the stores we continue to stress the importance of displaying the complete outfits in our polychromes to, tell the trend story to our customer and bring the product to life.
Turning to our direct business, which is composed of a catalogue division, and an online e-commerce operation, we were down 6% in the quarter overall, having reduced our catalogue distribution 17%. Nevertheless we continue to see signs of improvement in the e-commerce business. Those sales have been more than tripled year-over-year for the second quarter in a row. We’re now offering twice as many SKUs on our website and have expanded certain further classifications such as lingerie and shoes.
The product assortment outline now mirrors the merchandise offering in our stores, and gives our customer exciting styles to shop. With the initiatives we have in place, we expect that the momentum in our e-commerce will remain strong during the coming months. We opened our fresh new prototype store in the Jacksonville market at our Orange Park location. We have been encouraged by its first four months of sales as it has outperformed the chain's comp sales performance by approximately 18 points during this period. We have also observed an increase in traffic, now seeing a more diverse customer base in terms of both age and household income.
In summary, we are making progress but still have a lot of work to do. While we continue to face stagnant low traffic trends in a highly competitive retail environment, we will continue to manage our business cautiously maintaining lean inventory levels and carefully controlling expenses accordingly. We look forward to sharing additional progress as results in new strategies continue to unfold.
Now I will turn it over to Tom for some more financing business updates and a recap of the financial results in our fourth quarter.
Thanks, Brian. As discussed in our last call, and as Brian mentioned, it was a tough business environment during 2013 that has continued into the first quarter this year. We are focusing on cash preservations, or reduced expenditures, tight inventory management and raising more capital through various financing initiatives.
First of all, I will begin with our financing work. As announced on February 7, we closed on our new credit facility with Crystal Financials. The new facility gives us a total commitment in borrowing capacity of up to $17 million, against eligible inventory and accounts receivable. We then committed with additional capacity of $7 million based on future growth in the business. It consists of a $12 million term loan that was funded to closing our remains outstanding with interest payable monthly at 8% plus LIBOR, and a revolving line of credit of up to $5 million against eligible inventory and accounts receivable, which may be drawn subject to other terms and conditions of the loan agreement.
Currently the Company has not borrowed under the revolving line of credit and at $20.1 million of cash on hand that includes the $12 million drawn on the term loan. In addition to the credit facility and a small IT software and equipment lease financing that we now have in place, we are working on additional equipment financing transactions. In addition we will explore other financing options to provide additional working capital for the company but cannot offer any assurance that we'll be able to procure such additional financing.
As a continuing effort to preserve cash, we have implemented additional cost cutting measures effective in March that will eliminate approximately $1.5 million in planned expenses in capital from now until the end of 2014. This includes some additional corporate and field payroll as well as some capital projects planned. We have reduced headcount by 10 positions largely related to the delay of some capital projects.
We have decided to delay moving into our new distribution center for the balance of 2014. The move as originally planned would have increased some of the operating expenses and we would have incurred some additional capital outlays. We do not believe the moving delay impacts our planned 2014 operating results.
We have also input our transition through a new ERP system on hold for the balance of 2014. This will allow us to preserve cash from now until the end of the year and to focus on the existing business. We do not believe this has a negative impact on our 2014 operating results as most of the system benefits would not have been realized until 2015. We have completed the implementation of a new planning system that should enhance our ability to plan the merchandise side of the business for the much higher level of precision.
From a store project standpoint, our capital expenditures will be largely maintenance capital expenditures for our existing store base and should not exceed 1 million for 2014. We have closed 23 stores to date during the first quarter of this year and plan to close five more during the rest of the year. All of these closures are being completed based on lease explorations or kick off clauses. Since our third quarter call, our liquidity outlook has changed primarily as a result of net losses from operations, a continued decline in comparable store sales, negative trends in our direct business and negative cash flows from operations.
Management has taken several actions to increase our liquidity during the 2014 fiscal year and if we are successful in executing our plan, our current forecast indicates that our cash position, net cash provided by operating activities, new credit facility -- all that we believe should be adequate to finance our working capital needs throughout fiscal 2014.
In addition to our cost reduction initiatives, we have made key changes to merchandising personnel notable advances in our information technology systems which enable us to analyze our product assortment and customer preferences and inventory management to better reflect sales trends. This will allow us to reduce markdowns and to optimize our store work force. We believe the two initiatives will also enable us to ultimately realize higher sales levels and improve gross margins during 2014.
However the success of these initiatives is largely dependent on a variety of factors, one of which is fashion trends. We must appropriately engage the fashion taste of our customers and provide merchandise that satisfies customer demand. Our failure to either anticipate, identify or react to changes investment in pace and demand could have a material adverse effect on cash flows. Additionally factors such as competition, current national and regional economic conditions and weather are not necessarily within our control. However the lead factors could negatively impact our forecast and have a material adverse impact on our cash flows.
We have forecasted in 2014 that our operational changes will improve gross margin on the year-over-year basis as a function of better assortments in merchandise planning. Additionally we expect a lessening and ultimate reversal of both the negative core lead comparable sales trends and our negative trends of the direct business by the second half of 2014. If however our future comparable store sales continue to decline or do not improve consistent with our forecast or our direct business does not improve from the prior year, our cash flow projections could be materially and adversely impacted.
We typically have averaged up to 30 days to pay our merchandise vendors. However if we deviate from our 2014 forecast -- consequently our vendor payment terms were to change significantly, this could also result in a significant adverse change to our cash flow projections. These could be inherent uncertainties in making estimates and assumptions on our forecast but can be no assurance that the Company will be able to execute on its strategic initiatives. Therefore the Company’s operations underperform in comparison to its forecasted results, its financial position, results of operations and cash flows could be materially and adversely impacted.
Now I will discuss our financial results for fourth quarter. The Net revenues decreased 18.3% to $66.2 million for the fourth quarter this year from $81 million last year. Store sales decreased 19.5% to $59.4 million for the quarter from $73.8 million last year. This decrease was driven by a 26% decrease in comparable store sales for the quarter, partially offset by net store unit growth of 18 stores or a 6.5% increase in store units.
Our comparable store sales decrease for the quarter was driven primarily by a decrease in the number of transactions per store down 21% and lower average units per transaction down 6%. Direct sales which include catalogue, e-commerce, shipping and handling fees totaled $6.7 million for the quarter as compared to $7.2 million last year, the decrease of 5.6%. This decrease is driven by a 17.3% reduction in catalogue distribution and an approximate $0.53 decrease in revenue per catalogue. Simultaneously we have expanded e-Commerce efforts, which primarily include email, display ads, pay per click and a few related programs. The revenue growth in these new marketing channels has nearly quadrupled in the fourth quarter of 2013 compared to the fourth quarter 2012.
Gross profit for the quarter decreased 45.6% to $13.4 million from $24.5 million last year and, as a percentage of sales, decreased 20.2% from 30.3% last year. Due to the very promotional environment and competitive landscape we aggressively increased markdowns taken to clear slow-moving merchandise and ran numerous promotions to drive traffic into our stores. We ended the quarter with store inventory down 18.9%.
Selling, general and administrative expenses increased 35.4% to $25.5 million for the quarter. The increase in total expenses resulted primarily from an increase in store operating expenses related to the growth in new stores, additional marketing spend for customer research and to drive traffic to the e-Commerce site and into our stores and an increase in corporate expenses primarily from 2013 new hires, professional fees related to strategic planning and financing due diligence work and other consulting work. Special consulting and diligence work in the quarter resulted in unplanned expenses totaling approximately $900,000. The Company incurred approximately $600,000 in the quarter related to severance, relocation and recruiting expenses associated with our restructuring of the origination.
As a percentage of store sales, store operating expenses increased to 22.5%, resulting from deleveraging against negative comparable sales in the quarter. Corporate cost increased to 13.5% of overall sales. Overall SG&A expenses increased to 38.5% of sales including corporate cost. Depreciation and amortization expense increased to $2.3 million as compared to $1.8 million in the same quarter of last year, primarily from the addition of new stores and new systems.
As the result of these factors, operating income decreased to a loss of $26.6 million from $3.9 million in income last year. This year’s fourth quarter operating loss includes an impairment charge related to goodwill and the store assets totaling $12.1 million.
Finally, net loss for the quarter was $23.3 million or $1.42 loss per diluted share based on 16.4 million weighted average shares outstanding. This compares to net income of $2.4 million or $0.15 per diluted share on 16.3 million shares outstanding last year. Before the impairment charges, net loss for the quarter was $12.1 million or negative $0.74 per diluted share.
Reviewing the full year results net revenues decreased 8.8% to $283.6 million from $311 million last year. Store sales decreased 7.4% to $254.7 million as a result of a 6.5% increase in store count all set by same store sales decrease of 16.8%. Direct sales decreased 19.4% to $28.9 million as a result of decreasing catalogue distribution from the prior year and a decrease in revenue for the catalogue division.
Gross profit contracted 615 basis points primarily as a function of the sales and gross profit rate declines in the stores and direct businesses. Excluding the impairment charges reported during the second and fourth quarters related to goodwill and store assets, we realized an operating loss this year to date of $30.9 million and had a net loss of $20.8 million or $1.27 per diluted share.
Turning to our balance sheet, cash, cash equivalents and short-term investments were $16.5 million at the end of the quarter compared to cash, cash equivalents and short-term investments of $41.1 million last year. This reflects cash loss from operations of $13.6 million and CapEx of $17.8 million for the last 12 months.
Our total inventories were $18.8 million at the end of the quarter and $23 million at the end of the quarter last year, which includes the direct business and inventories in transit. On an average store basis, inventory was down 18.9% at cost and down 10.1% on a unit basis compared to last year.
Looking ahead to our first quarter, which is now substantially completed as of this date, sales trends remain though with comparable sales trending down at a similar rate for the fourth quarter. We have managed our inventory levels and cash flows based with the expectation that sales do not improve and therefore currently have per store inventories planned down as we prepare to head into the eastern build in sales. We expect gross margins will decline year-over-year as a much lesser rate than we saw in the fourth quarter as a result of initiatives in merchandising and planning and allocation that we both discussed earlier. We expect total SG&A expenses to be in the range of $23 million to $24 million for the first quarter. That includes approximately $1 million for unusual costs related to financing strategic planning and restructuring efforts.
We believe that steps we have taken to improve performance are beginning to take hold as we’re seeing a favorable response to select new merchandise, increase traffic from some of our marketing efforts and better results in our e-commerce business. However this will be a gradual recovery particularly in light of the challenging environment but we'll remain diligent in our efforts to drive top line while remaining very disciplined in taking steps to preserve cash.
Now operator, please open the call for any questions.
Thank you. (Operator Instructions). And we’ll take our first question from Steph Wissink with Piper Jaffray.
Steph Wissink - Piper Jaffray
Brian and Tom, I want to just ask more of a larger picture question here, because it sounds like within what is a fairly grim kind of report, that the online business or the e-commerce business is a relative point in outperformance. Can you talk a little bit about the channel margins, the merchandise margins within it? And is there an option to really rethink or reshape the positioning of the brand, the brand authority to be more skewed towards online versus stores?
Well in terms of repositioning the Company, we are doing that in the sense that we are going back to what made us successful in the past in terms of the customer base who we serve. In 2011, 2010 when the business was at its peak the customer base was slightly older, more along the lines of the 25 to 30 year old customer base who was more highly affluent on a relative basis, higher income and given more towards more of a young contemporary framework rather than a fast fashion junior business. So we are repositioning the Company along those lines and we have said repeatedly on the past calls that we need to become an omni-channel retailer. So there is the lot emphasis in terms of shifting emphasis away from the catalogue and more towards the mobile/e-com piece of the business which is the way we need to message to this particular customer.
We do think that the business needs to be a balance between brick and mortar stores and e-com and the lineal customer does like to go into stores to shop. She’s very social. She reads magazines. She obviously is very active on the social networking framework. And so we believe that it has to be a balance. Would we expect the e-com growth to far outstrip growth in brick and mortar? Wes we would. In terms of the margins, Tom?
The margins obviously on pure e-commerce side of the business is better than four wall store profit margins because the cost to drive traffic online is less than the cost obviously to operate the store. So from that standpoint we would add better profit margins. get more of the business shifted that way.
Steph Wissink - Piper Jaffray
And just one follow up to that. Maybe in contrast to the e-com strategy, your new store prototype, I think Brian you mentioned it outperformed the average by about 18 percentage points in the first four months. If I recall just going back, your Jacksonville stores have tended to outperform naturally just given the brand recognition and history in that market. So can you talk a little bit about that prototype in terms of maybe how it induces relative to the non-Jacksonville market or just give us some sense relative to some of the other markets outside of your core home base?
Yes. Well, what we are very excited about in terms of the new store prototype is that it is in the same exact space as it was originally. So we did not move it, we did not increase the space. The mall in and of itself is a very blue color mall, very heavily urban based customer both in terms of Afro-American and in terms of Hispanic. So what was good is that as we redid the store, which doesn’t look anything like the rest of the stores in the chain, we saw an immediate impact in traffic which started to increase as much as 30% on a weekly basis. We did notice and this is anecdotal that our store's organization as well as all the merchants and myself who constantly shop the Orange Park store just to see what the customer base is, clearly it’s become more diverse, a better balance of the 16 to 24 year old as well as the 25 to 35 year old. And it is we think, slightly higher income customer based who was previously shopping in our store.
The 18 point swing is obviously total Company. We don’t have that many stores in the Jacksonville area. There is the avenues, there is the stores that we have in the beach as well as the store River City. All of those stores are relatively strong but it’s still a strong performance in Orange Park compared to those other stores in Jacksonville also.
Steph Wissink - Piper Jaffray
Okay, thank you. Just one final, actually two, Tom for you. I think you mentioned that the payables are right around 30 days is how your vendor structure currently exists. Any flexibility to stretch those terms with your existing vendors or does that limit your ability to really capture fashion if you are not able to extend those terms? And then lastly just on the gross margin, I think you indicated decline to a lesser rate in Q1. Should we think about that being the key dynamic point in the model as we look through the balance of 2014, your most controllable factor?
Yes, two good questions. I think on the first question as it relates to -- I'm sorry, tell me again, I lost the….
Steph Wissink - Piper Jaffray
Your vendor terms in terms of the payable.
That’s right, vendor payables. Our historical payables has been 30 days for the last couple of years. So that 30 day term does not have deteriorations from what we have seen in the past. What we were saying in the prepared remarks is that if the terms substantially deteriorate from that 30 day term, then obviously we will be using more cash up front and won't have much -- as much floated outstanding through accounts payable. So that was the point there. As far as gross margins, yes, that is a key component of the plan ‘14. We believe it's reasonable and sound assumptions to believe that we can improve gross margins in ‘14 and that is part of our plan for the year.
And our next question comes from Jeremy Hamblin with Dougherty & Company.
Jeremy Hamblin - Dougherty & Company
So, I wanted to ask you also about gross margins and just think about it in the terms of decomposing the decline that you saw in Q4 specifically and then also for the year. So, if we look at it between merchandise margins and occupancy deleverage, can you tell me kind of -- you had about a 1000 basis point of deleverage in Q4 and 650 basis points for the year. Can you give me the approximate split of those?
Yes, it’s roughly a 200, maybe a little more 100 basis points related to deleveraging and the rest would have been margin for the fourth quarter.
Jeremy, this is Brian. In terms of the merchandise margins, merchandise margins at the end of the first quarter will be precipitously higher than they were in the fourth quarter and we are happy about that obviously. Margin rate, we believe, with a week to go in the month of March will also be higher than last year. Inventories are low and clean. We see flow has been consistent. We are happy with returns we're getting on the new receipts. Top line remains under a huge amount of pressure but we are getting the margin break certainly where we want it to be and we see that is playing itself out for a while. Having said that, we've got to execute the overall business plan and that obviously presents a risk since top line is under so much pressure, but the margin rate we are happy with.
Jeremy Hamblin - Dougherty & Company
Okay, that’s good to hear. And then just a clarifying point. So for the full 2013 then, would it be occupancy deleverage about a 150 basis points and then 500 basis points of merch margin comp?
Yes, in that range that’s right.
Jeremy Hamblin - Dougherty & Company
In that range, okay. The other question I wanted to ask was, it’s good to hear that the newer store format is significantly outperforming the rest of the base. In terms of obviously liquidity being tight, how can you make or what is the plan in terms of improving the look and feel of the rest of the fleet of the stores to get them more in that direction of being more aspirational in terms of the messaging within your store, the look and feel of it and when do you think, assume that you see improvement this year, when is a reasonable time to think that that transformation can start to take place?
So, Jeremy all good questions. Certainly from the merchandise side, what we have done over the past year is cleaned up a lot of clutter, as we call it. We've taken fixtures of the floor. We've lowered the walls. We've really made the merchandise assortment start to pop just by really merchandising a lot less units and a lot less SKUs into our stores. With the existing store base and then obviously the one store that we have, there is no question to window changes which we are doing on a weekly basis is really starting to work we believe. We can’t really take a look at last year’s traffic because we only have traffic count as right now but the conversion rates, the amount of traffic we’re getting into our stores seems to be pretty stable at this point. Again, there is no basis of comparison to look at it from last year. And as Tom said, the transactions are down 20%. So you can see that the traffic must be off.
So in terms of getting the feel of the Orange Park store across the chain, we’re spending a lot of time in terms of the signage being cleared and sustained in terms of setting our very clear and concise floor sets that we do on a monthly basis. The consistency of the receipt flow coming in obviously will be key and we like the receipts that are coming in. Again that’s not going to pull us through if the top line doesn’t start to turnaround somewhere along the line. We’ve got to execute the business plan. Are the good things happening the way see it in the new receipts? Yes. Is it enough to turn the business around? Not yet.
Jeremy Hamblin - Dougherty & Company
Okay, fair enough. And Tom, I just wanted to confirm, what you said was the total CapEx budget for 2014?
At this point, all we’re going to do as maintenance capital in existing stores where we need to. We’re not going to commit to any new store growth, do very few relocations and retrofits, just where we have to. So it’s going to be in the $1 million to $2 million range. That will be the extent this year.
Jeremy Hamblin - Dougherty & Company
In that is that putting then the -- and that’s not inclusive of cost for the new corporate offices and distribution center or is that inclusive of that or all of that being just financing. So it’s kind of a wash?
As I said in the script anywhere from this point forward will be delayed. We will not do anymore work on the distribution center. In 2014, we won’t be moving into that new facility and that includes the office as well. Any work that we’ve done at this point, those monies were spent primarily in the prior year or had been wrapped into leases.
Jeremy Hamblin - Dougherty & Company
And if I can just ask one more follow-up on e-commerce as it relates to not moving into the new building, is it going to put a cap on how good the direct channel can be because the e-commerce side of the business, obviously the facility that you’re managing that, that part of the business is older and is that going to put a cap on e-commerce? And I think you said that maybe the direct channel would be up actually in 2014. Did I hear that right?
I don’t think we spoke specifically of the direct other than to say that in our plan for 2014, expect some improvement in the direct business. But anyhow, clearly in the new facility we would have had more room to expand the SKU count but we have figured out ways here in our existing billings to expand this SKU count beyond what we thought. So we still think we’ll be able to continue to drive nice performance on the e-commerce side of the business. We’re still obviously evaluating the catalog side of the business and how best to spend our dollars there.
Jeremy, I wanted to say it was several quarters to go that we talked about not having enough flexible space to get beyond 600 regular price SKUs which at one time that’s all we were running on e-comp. We are up to a 1000 now. We are looking within our own old DC home office complex to be able to try and figure out how we flex more space to get even more units out there. So even though we have not moved to the new DC, it doesn’t mean that we can’t get more exposure and more SKUs internally here in the building which is what we are working on.
That concludes today’s question and answer session. Mr. Brian Woolf, at this time, I will the turn the conference back to you for any additional or closing remarks.
No, I think that’s it. Thank you very much.
That concludes today’s presentation. Thank you for your participation.
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