Rightscorp's (RIHT) CEO Christopher Sabec on Q2 2014 Results - Earnings Call Transcript

Aug.13.14 | About: Rightscorp, Inc. (RIHT)

Rightscorp, Inc. (OTCQB:RIHT) Q2 2014 Earnings Conference Call August 13, 2014 4:15 PM ET

Executives

Robert Haag - Managing Partner, IRTH Communications

Christopher Sabec - CEO

Robert Steele - COO & CTO

Analysts

Julianne Pinter - Private Investor

Amit Tandon - SeeThruEquity

Brett Reiss - Janney Montgomery Scott

Chip Richardson - Wedbush

Operator

Greetings, and welcome to Rightscorp 2014 Second Quarter Conference Call. At this time, all participants are in a listen-only-mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce Robert Haag, Managing Director and Partner of IRTH Communications. Mr. Haag, you may begin.

Robert Haag

Good afternoon, everyone. My name is Robert Haag, and I'd like to welcome all of you to Rightscorp's second quarter 2014 conference call. With us today are Rightscorp's CEO, Christopher Sabec; and the company COO and CTO, Robert Steele.

Before I turn the call over to Christopher, I'd like to remind you that in this call management's prepared remarks contains forward-looking statements which are subject to risks and uncertainties and management may make additional forward-looking statements during the question-and-answer session. Therefore, the company claims the protection of the Safe Harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995.

Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors not limited to general economic and business conditions, competitive factors, changes in the business strategy or development plans, the ability to attract and retrain qualified personnel, and changes in legal and regulatory requirements. In addition, any projections as to the company's future performance represent management's estimate as of today August 13, 2014. Rightscorp assumes no obligation to update the projections in the future as market conditions may change.

This morning, the company filed its 10-Q with the SEC, and later we'll issue a press release announcing its results. So participants on this call may have not already done so, may wish to look at those documents we provide a summary of the results in the call.

I'd like to now turn the call over to Rightscorp's CEO, Christopher Sabec, who will give us an overview of the company's business activities and developments for the second quarter of 2014. Christopher will then turn the call over to Robert Steele; Steel will provide an overview of the company's key financial performance and operating metrics. We will then open the call for questions and answers. Christopher?

Christopher Sabec

Thank you, Robert. Hello, everyone, and thank you for joining us on our call today. I'm excited to report our strongest quarter to-date. We achieved triple-digit revenue growth within approximate 377% year-over-year growth as compared to the same quarter last year, and we're pleased to share more on the details of our progress with our shareholders and perspective investors on this call.

This quarter, we continued to generate steady growth on all of our key operating metrics. We increased our participating ISPs. We grew the number of copyrights in our system, and we increased closed settlement cases significantly. We also made refinements to our technology to make our monitoring process more streamlined and efficient. With the right elements in place, we believe that the remainder of this year will garner extremely positive results, while we stay committed to revenue generation and prudent financial oversight.

From an industry perspective, we achieved very exceptional feedback. Rightscorp is now being recognized as the pioneer in the fight against illegal copyright infringement and peer-to-peer networks, which have caused the entertainment industry billions of dollars in sales, revenues, and wages.

Our catalog of copyrights continues to expand, and this directly impacts our top line results. Fifteen years after the advent of Napster's file sharing service, rights holders are still struggling against good technology being used to the detriment of creators. It took us over a year to build out our foundation, and we believe that this is a great time to get involved in the company as we're now seeing some real traction.

The scalability of our business model has allowed us to operate efficiently on a larger scale as we continue to sign on more assets. This past quarter, we increased the number of copyrights we represented. In April, we signed a deal to represent a best-selling author (indiscernible) we begin to target the $15 billion book publishing industry.

We also expanded our representation into the film and video market and secured a new agreement with an iconic entertainment company focused on the distribution of independent and foreign films. This relationship increased our catalog with the addition of 800 copyrighted films and video titles.

The film and video market is experiencing growing challenges from file sharing evidenced by the fact that minutes after airing; infringers can upload recent episodes of popular shows from HBO, like Game of Thrones or the Netflix Original Series House of Cards.

Rightscorp offers all holders of copyrighted intellectual property, the only viable revenue positive solution to this challenge facing them in the industry.

On the music side, we added over half a million copyrights to our catalog of representation, including a large tranche from BMG, representing the balance of their catalog. So we now represent the entire BMG catalog.

Additionally, we added 600 copyrights in the extreme music market with our agreement with Rotten Records, and more recently we secured our representation agreements with the Royalty Network to represent and monitor their copyrights.

The Royalty Network is recognized as one of the music industry's most powerful music publishing firms and represents an impressive roster of top songwriters, producers and artists, including Beyonce, Calvin Harris, Kanye West, Lil' Wayne, Kendrick Lamar, and many other notable acts.

We also made significant headway with top songs in the Billboard charts. In a recent week, for example, we were monitoring 12 songs in the Billboard Top 40, 20 songs in the Billboard Hot 100, 39 songs on albums on the Billboard Top 200 album chart and 18 songs on the iTunes Top 100 Singles. We are continuing matured discussions with key industry leaders and executives who are looking for a solution to the billion dollar copyright infringement problem.

And as we've mentioned on our earlier calls, there are three major key metrics that serve as good indicators of our growth. First is the addition of copyrights that we acquire and sign on to represent, we call this our authorized copyright catalog. At the end of the second quarter 2014, we reported that we have surpassed over 1.5 million copyrights, which include music, movies, books and other digital content.

Second is our ingestion rate. This is the process of adding content from our approved catalog to our proprietary copyright monetization system. We continue to make strives in advancing and accelerating this ingestion process.

Then third is the number of participating ISPs that forward our notices and settlement offers. These three factors directly impact our top line growth and help drive our business revenues. We've been gaining solid momentum in all the key aspects of our business, and with that said, we're still merely scratching the surface of the enormous opportunity we have in front of us.

We recently reported that the number of ISPs participating has increased by 100% to over 140 participating ISPs. Doubling the amount of participating ISPs was meaningful for us, because each additional ISP allows us to pursue, monetize and collect upon thousands of potential infringement cases. Today, we have more than 80,000 copyrights in our system, and this number continues to grow.

We also announced that we had settled more than 75,000 cases of copyright infringement and collected payments from distributors through notifications send by their ISPs. This represents a 25% growth from the 60,000 cases in a two-month span, which is a major accomplishment for a company of our size. And this number continues to increase daily as well.

It is apparent that Rightscorp is leading the charge against copyrighting infringement, and we're very encouraged by the opportunities we have generated thus far and believe we offer compelling investment propositions to our investors. This is a multibillion dollar dilemma for the industry for which we have a solution that is effective and works.

Now, I'd like to turn the call over to my co-founder, Robert Steele, who will provide an update on the financial and operational progress that we have made in this quarter as well as our plans for operational and infrastructure expansion to support our future growth. Robert?

Robert Steele

Thanks, Christopher. For the second quarter ending June 30, 2014, Rightscorp generated total revenues of $251,481, up 377% from $52,670 in the same period in 2013.

Sequentially, revenues rose 34% from $188,215 in the first quarter of 2014. The growth in revenues were driven by an increase in the number of copyrights under contract, an increase in active copyrights uploaded into our automated system, and by the growing number of ISPs participating in the company's service, creating a multiplier effect.

For the second quarter of 2014, operating expenses totaled $995,080, compared with $452,812 for the prior year quarter. The increase in fees was due to an increased fees paid to copyright holders for the period as we share our percentage of the revenues we collect. Our general and administrative expenses were $821,474 for the quarter ended June 30, 2014, compared to $390,260 for the year ago quarter, due to increased wages, professional and investment banking fees, travel and other expenses related to securing financing. We have also increased cost due to further accelerating our ingestion and collections processes.

Sales and marketing cost increased slightly to $35,108 for the second quarter of 2014, from $28,084 for the second quarter of 2013, due to an increased presence at industry conferences to meet potential clients.

Depreciation and amortization expenses were $12,758 during the second quarter ended June 30, 2014, an increase of $4,625 compared to $8,133 in the year ago quarter.

During the three months ended June 30, 2014, we recorded a net loss of $754,239 or $0.01 per share compared to $487,930 or $0.02 per share for the three months ended June 30, 2013.

For the six months ended June 30, 2014, we reported $440,414 in revenues, a 332% increase over revenues of $101,926 for the same period in 2013. This increase in revenue is also driven by an increase in the number of copyrights we represent.

We incurred operating expenses of approximately 1.8 million during the six months ended June 30, 2014 as compared to $771,766 for the six months ended June 30, 2013. This increase was due to increased payroll expenses and fees paid to copyright holders in the period.

General and administrative expenses were approximately 1.5 million for the period ended June 30, 2014, compared to $662,542 for the six months ended June 30, 2013. Due to increased wages, expenses, professional investment banking fees, and travel and other expenses related to securing finance.

Sales and marketing costs were $66,416 for the six months ended June 30, 2014, compared to $42,719 for the six months ended June 30, 2013, due to an increased presence in industry conferences to meet potential clients.

Depreciation and amortization expenses were $24, 357 during the six months ended June 30, 2014 as compared to $15,542 for the six months ended June 30, 2013.

For the first six months ended June 30, 2014, net loss attributable to common shareholders was approximately 1.4 million or $0.02 per share compared to $809,977 or $0.03 per share for the six months ended June 30, 2013. That 1.4 million included $275,000 of non-cash expenses related to stock and warrant issuances for investor relations and legal services.

It's important to note that our balance sheet improvements include a material increase in cash and cash equivalents of $767,581 on June 30, 2014, up from $36,331 on December 31, 2013. The increases in cash and other fixed assets resulted in growth of total assets of $876,292 in June 30, 2014, up from $146,223 on December 31, 2013.

We're proud of what we've achieved in a short period of time since launching our technology. Today we represent more than 1.5 million copyrights; we are partnered with major motion picture studios, numerous platinum recording artists, academy award winning films, top TV shows and songs on Billboard charts. We've already received settlements from subscribers on more than 140 ISPs and closed over 75,000 cases of copyright infringement today. We have the right elements in place to continue to this great pattern. The validation we receive from the industry will continue to attract new opportunities for us and it's clear that we are a company on the move.

We'd like to thank all of you for supporting our story and sharing our vision. We look forward to sharing our progress with you again in the next quarter. We'll now like to open the call for questions.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from Julianne Pinter, Private Investor.

Julianne Pinter - Private Investor

Hi, guys. Great to hear all the good news and you guys are working hard. One of my questions is have you guys had any ISP terminate service of any repeat centers yet to-date that you are aware of?

Christopher Sabec

Yes, we have. That happens pretty much on a daily basis. We don't have numbers for that. I'll let Robert speak to his experience in the call center.

Robert Steele

Yes. As a reminder, we have a Web site dashboard for all U.S. ISPs where they can see live lists of their repeat infringers. And we do have many of the 140 ISPs due suspend servers to repeat infringers. It happens on a regular basis. So people call the call center nearly everyday telling us that their service has been interrupted. And once we get payments the Web site for the ISP indicates to them the payment list we made and people get connected.

Julianne Pinter - Private Investor

That's great.

Christopher Sabec

This is Christopher again, I'll add. That is really revolutionary in that piracy fight, the ability to thread the needle of the digital millennial copyright act and hold the ISPs accountable to their obligations to terminate repeat infringers. That's what the technology that Rightscorp has developed allows to happen and that's what sets us apart.

Julianne Pinter - Private Investor

That's great. Can I ask another question? Who are the current competitors?

Christopher Sabec

Robert? I'm going to let Robert list that out.

Robert Steele

Sure. There is a company called CEG Tech, also known as Copyright Enforcement Group. They have a similar model where they mine the Tier 3 networks through infringement data and send payment demands and users. Their model differs from us in a couple of different ways.

First, they do not have a patent, a new technology for identifying repeat infringers. So they can't compel the ISPs to do anything. So because we have this ability to identify repeat infringers, we are able to trigger the ISPs obligations to maintain their safe-harbor. So once we notify the ISP of these repeat infringers, we also deliver to the ISP a no cost solution for reducing their repeat infringers on their network. Because if they further notices and suspends some of the people who keep infringing then our clients are going to be reasonably satisfied with that. And that's a win-win. It doesn't cost them very much and allows them to prove in that paper trail that they have a policy towards terminating repeat infringers. So, Copyright Enforcement Group doesn't have anything like that. So they're able to get ISPs for the notices, then that's something that's basically the ISPs choice. They don't have any mechanism to compel.

Second thing is that the Copyright Enforcement Group as we understand is really a pornography service company. So they are doing what they do with the pornography titles. They are very expensive. Each notice costs $500 or some of its ten notices, they are demanding $5000. And we believe that they are using essentially the shame factor to drive the payment, and scaring people and saying that it moves to law suit and their name is going to be named in public associated with some salacious content.

The other company that we consider competitive would be MarkMonitor. MarkMonitor provides the data for what's called the six strikes system. Our system is superior to six strikes systems for several reasons. One reason is because of the scope, so because we put the owners of payment on the infringer. It allows us to monitor every infringement and notice every infringement. With the MarkMonitor six strikes team, the ISP and the rightholder have to pay for the technology cost. So we believe that is fundamentally unscalable to be at a scale to recover 40% of all U.S. upload track literally billions of illegal transactions. In our model we can afford to notice billions of transactions.

Then secondly, there is no sanction with the six strikes. If you read about it, there was a talk at one point that they might slow down people's connections. But we've seen no evidence that they do anything other than send six notices.

Julianne Pinter - Private Investor

Thanks.

Operator

Our next question comes from Amit Tandon with SeeThruEquity. Please proceed with your question.

Amit Tandon - SeeThruEquity

Hi, guys. Congratulations on the quarter.

Christopher Sabec

Thank you.

Amit Tandon - SeeThruEquity

I just had a question about the new participating ISPs; can you guys provide any additional color on where you see that increase in participating ISPs going for the rest of '14 and also into '15? I was just curious about the -- what's the penetration rate that 140 represents on U.S. homes now?

Robert Steele

Amit, its Robert Steele. Yes, great. Thanks for the question. This is the best estimate that we can do. What we do is we take the public figures for those 140 and the public figures of how many subscribers they have, and divide that by the number of broadband U.S. subscribers. We will get roughly 15%. So the big ones of the 140 are chartered and quests. So we come up with about 15% coverage in that 140 of the 85 million U.S. broadband subscribers. So that's the first part of the question.

We have just recently been seen that Comcast has been forwarding an abbreviated version of our notice which has resulted in payments. The Comcast is the biggest. They have at least 20% market share. And so we've been sending Comcast notice for three years sending them weekly demands to terminate their repeat infringers and we've actually just started to see it trickle payments coming through Comcast.

The other part of your question was that in 2011, June 2011 we had six ISPs and now we have 140. There is roughly right now I would say there is 3800 in the United States. The top five Comcast, Verizon, AT&T, Cable Vision and one more that I am drawing the point on. But obviously our goal is to get all of them compliant. And I think you are going to see coming up later in the fall, we can discuss more about our strategy for getting the top five on board. But we can say that the growth continues that month over month for the last three years we had no ISPs every month. So thanks for the question.

Amit Tandon - SeeThruEquity

Okay, thank you. There is one other question. Any updates on the scalable copyright technology that you guys are planning to roll out In terms of timelines or any news you could provide on that front?

Robert Steele

I don't have the specific events that I can sight, but what I can say is that every time that we have, say for instance, the company was invited to the Philippines about two weeks ago and we've started a conversation with parties in the Philippines, and when we explained the model that we get down to the fact that in the U.S. we use termination to drive the business model. I always mention the scalable copyright as our goal. But what we really want to do is move away from termination and move to what's called a hard redirect, like, when you go into a hotel and you have to put your room number in order to get past the browser and get on to browsing the web.

So every ISP has this ability to put up a redirect page. So that's the goal. So we start in the beginning of the ISP relationship by demanding the forwarding of notices and the terminations. But where we want to end up is with our scalable copyright system where it's not about termination, it's about compelling the user to make the payment so that they can get back to browsing the web. But other than the design of the system, the name of the system and the goal, there is no other announcable event in anyway right now.

Amit Tandon - SeeThruEquity

All right, great. Thank you. Congratulations again on the quarter.

Robert Steele

Thanks.

Operator

(Operator Instructions) Our next question comes from Brett Reiss with Janney Montgomery Scott. Please proceed with your question.

Brett Reiss – Janney Montgomery Scott

Yes. Hi, I'm new to this, so bear with me. Do you have to -- I guess it's the fear of somebody not being able to use the service that compels them to pay their fee. You don't have to sue in court to compel payment just if you could give me some tutorial on that.

Christopher Sabec

Sure, this is Christopher Sabec, the CEO. We don't file lawsuits. We send -- you could almost look at it as a parking ticket or red light camera ticket to people. And we would leverage their -- the fact that they have an agreement with their ISP not to commit piracy. And we put pressure on them based on the fact that they could lose their internet service, but they continue to infringe the copyrights of others. And so that's how our system works. The fees are low. The statute allows for damages up to $150,000 per infringement. For example, recently a movie download, there was $49,000 judgment against that person when they went to court. We had this vision, Robert Steele and I had a vision where instead of these large judgments which the American public has said they don't like. We've come up with a concept where we have small fines, $20 that add-up for each infringement. And people pay them and ISPs suspend service to people that don't. That's how it works.

Brett Reiss – Janney Montgomery Scott

Okay. Now the -- this software that enables you to do this, this is already patented and it's an asset of Rightscorp.

Christopher Sabec

It is an asset of Rightscorp and it's in the patenting process. We have two full patent applications filed and three provisionals filed in the U.S. and then in many foreign countries as well. And Robert Steele is the architect and designer of that software. We own and control it.

Brett Reiss – Janney Montgomery Scott

Okay. When do you think the patent will be granted and it become an asset of the corporation?

Christopher Sabec

Robert, what is the timeline that you have been working on with council?

Robert Steele

Our estimate is some time in 2015 right now.

Brett Reiss – Janney Montgomery Scott

Right.

Robert Steele

There is three years on these once you get them filed. So we filed that.

Brett Reiss – Janney Montgomery Scott

Okay. I just -- some very quick retreat, 10-Q; could you tell me who is Hartford Equity and Seaside 88, because apparently they have been investors in Rightscorp?

Christopher Sabec

Yes. Hartford Equity was the company that facilitated our alternative public offering transaction while we backed into our public shell and they gave us concurrently a $2 million investment that they paid monthly and cost is around $150,000 per charge. So that's Hartford. And then Seaside 88 is a company that approached us in the first quarter and we put in an instrument in place which allow them to invest in the company and buy stock directly from the company while 144 stock.

Brett Reiss – Janney Montgomery Scott

Right. And I think that you -- this is more interesting and exciting and practicing more because apparently that's your background.

Christopher Sabec

Correct. (Indiscernible) entertainment training-by-training, and this is the perfect compliment to my career are helping artist return the growth in the music business. Because I wrote a big growth, the period of the music business and now creator of some content are not being paid fairly. And Robert and I are hoping to turn that around, planning in turning that around.

Brett Reiss – Janney Montgomery Scott

All right. Thank you for taking my questions.

Christopher Sabec

You are welcome.

Operator

Our next question comes from Chip Richardson from Wedbush Securities. Please proceed with your question, your line is live.

Chip Richardson - Wedbush

Thank you. Great quarter, guys. Could you give me a little information on the number of copyrights and does it -- are certain areas a lot more lucrative for you than other areas. You talked about music, but what other stuff are you working on?

Christopher Sabec

We started the music because my background is in music. We have moved into film as well, film and TV as well. We are doing very well with Warner Brothers Entertainment on both film and television and Miramax on film. Then we signed our first book bill this year with an author. And that's $15 billion business and there was a lot of infringement going on in the book space, both in e-books, and believe it or not, and people just scanning traditional books and uploading traditional books.

And then there is -- the other silos that we have potential in our software and games, but we're focused on building up to three silos we're working with now. And I'll let Robert answer the question of whether some areas are more lucrative than others since he is on top of the operations, but I think an infringement is an infringement for us, and we like all copyrights. Robert?

Robert Steele

Right. In our model, whether or not they're pirating a book for videogame or movie or a TV show or song is it's the same income. It does appear that at the moment that we get more income from music, necessarily music is multiple copyrights generally when people pirate. So, for instance, when someone pirates a movie, we're sending one notice a day. We won't see them pirate again, if someone pirates an album that has five songs that we represent, then, we're sending five notices. But other than that, it's just sort of a bundling issue other than that for us a copyright is a copyright, we want all the copyrights.

Chip Richardson - Wedbush

And have you considered charging different amounts for different things, like film obviously is …

Christopher Sabec

Yes. We definitely …

Chip Richardson - Wedbush

Respective to access than single songs?

Christopher Sabec

Yes. We have done that, and we have looked at that before even with the clients, but we keep coming down to the fact that what we're releasing people from is the same violation under Federal Law. Whether you download a song or download a movie, the law looks at it the same way. It's an infringement of somebody's copyright, and since we're releasing them from the same liability, everyone -- when we look at it from different angles we come to the same conclusion that the price should be the same throughout.

Any client has the right, and we give clients the latitude to ask us to charge more. And once they go down that path to make that determination, every single time they come back to just staying with -- stay the course.

Robert Steele

Then there is two other factors there; one is that there is no -- we're not transferring any ability to legally use product. So when they make the payment they're agreeing to delete it, so they're not getting the movie for the $20. They're not getting the song for the $20. What they're getting is the legal release from liability and not having their Internet suspended.

And the second way to look at it is that very few people pay $20. Most people, piracy is a lifestyle, and so most people are getting multiple notices. So we're closing cases everyday for $300, $400, $500 because people got multiple notices.

Chip Richardson - Wedbush

Very interesting. Thank you.

Operator

Our next question comes from Julianne Pinter. Please proceed with your question.

Julianne Pinter - Private Investor

Hi, guys. So you guys should give $20 of settlement now, is that correct?

Christopher Sabec

Yes.

Robert Steele

Yes.

Julianne Pinter - Private Investor

And then, what percent is going to the copyright holders typically?

Christopher Sabec

We still are with the most segregation, a deal of 50%. We regained 50% of the net receipts and then remit 50% to the right's holder, and that's really unheard of in the business. iTunes is 30%-70% goes to the right's holder, but we put enough investment into this, and we're solving such a substantial problem for the industry that we've been able to maintain that margin.

Julianne Pinter - Private Investor

Yes. That was something I know you guys are sending out a lot of notices today, at least you were last year, how many notices are you sending out per day currently?

Christopher Sabec

Robert?

Robert Steele

Yes, Julianne, at the moment we consider that trade secret.

Julianne Pinter - Private Investor

Okay.

Robert Steele

That's on the call, that's where we're emphasizing that we closed 75,000 cases and we're emphasizing that we've done that with 80,000 copyrights, but at the moment the volume is something that our clients prefer we don't disclose.

Julianne Pinter - Private Investor

Okay. That's all the questions I have, thanks.

Operator

(Operator Instructions) At this time, I'd like to turn the floor back to Robert Haag for closing comments.

Robert Haag

Thanks everyone. I'd like to thank all Rightscorp's shareholders and interested parties for their participation on today's call and their support for the company. This concludes Rightscorp's 2014 second quarter conference call. Thank you very much.

Christopher Sabec

Thank you everyone.

Operator

Thank you. Ladies and gentlemen, this concludes today's conference. You may disconnect your lines at this time. Thank you all for your participation.

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!