Abtech's (ABHD) CEO Glenn Rink on Q2 2014 Results - Earnings Call Transcript

| About: Abtech Holdings, (ABHD)

Abtech Holdings, Inc. (OTCQB:ABHD) Q2 2014 Results Earnings Conference Call August 14, 2014 1:00 PM ET

Executives

Yvonne Zappulla - Managing Director, Grannus Financial Advisors, Inc.

Glenn Rink - Founder and CEO

Jonathan Thatcher - Chief Operating Officer

Bjornulf White - EVP, Corporate Strategy and Business Development

Lane Castleton - Chief Financial Officer

Analysts

Brian O'Connell - Prosdocimi

Jim McIlree - Chardan Capital

Jay Harris - Axiom Capital

Adam Rund - LD Micro

Sam Sunmonu - Chesapeake Advisory Group

Operator

Good day, everyone. All participants are currently in listen-only mode. (Operator Instructions) At the end of today’s presentation, there will be an opportunity to ask questions. (Operator Instructions)

Today’s event is also being recorded. At this time, I would like to turn the conference call over to Ms. Yvonne Zappulla. Ma’am, please go ahead.

Yvonne Zappulla

Thank you. Thank you. Good afternoon. And it’s great to have you all join us for Abtech’s Second Quarter and First Six Months of 2014 Financial Results Conference Call. I’m Yvonne Zappulla of Grannus Financial Advisors, Abtech’s Investor Relations Consultant.

The financial report press release was issued last evening, just after the market closed. The press release is available on the company’s website, on both the Homepage and the Investor tab at www.abtechindustries.com. A copy of this call will be available for review approximately one hour after its completion through the Webcast link found on Abtech’s Homepage, as well as in the earnings press release.

Importantly, Abtech continues to build its social media presence and we encourage for you to follow the company on Twitter and Facebook.

Before we begin, I would like to state the following. During this call the management and representatives of Abtech Holdings Inc. may make comments that may be deemed to be forward-looking statements which are not purely historical and include any statements regarding beliefs, plans, expectations and intentions regarding the future.

Such forward-looking statements include, among other things, the development, cost and results of new business opportunities. Actual results could differ from those projected on any -- in any forward-looking statements due to numerous factors.

Such factors include risks associated with the company’s business involving the company’s products, their development and distribution, economic and competitive factors and the company’s key strategic relationships and other risks detailed in the company’s filings with the Securities and Exchange Commission. Abtech assumes no obligation to update any forward-looking information with respect to the announcements described herein.

With us today is Glenn Rink, Founder and CEO of Abtech Holdings, Inc.; Jonathan Thatcher, the company’s Chief Operating Officer, who is joining us from London today; Bjornulf White, Executive Vice President of Corporate Strategy and Business Development; and Lane Castleton; Abtech’s Chief Financial Officer, who will review the first half 2014 results.

However, before doing so, as a result of this morning’s announcement, Bjornulf would like to make a few opening comments and after which Lane will review the financials and then Glenn, of course, will provide us with overall business update. Following these prepared remarks, Glenn, will be joined by Lane, Jonathan and Bjornulf for a Q&A period.

I’d now like to turn the call over to Abtech’s EVP, Corporate Strategy and Business Development, Bjornulf White.

Bjornulf White

Thank you, Yvonne. And importantly, thank each of you for your interest and support for Abtech. It is a very exciting time for our industry and Abtech has positioned itself well to cease the opportunities that are arising.

As we forecasted more than three years ago, the stormwater market was shifting from one based upon an unfunded mandate to a funded major focus area of America's infrastructure.

As a first step, we saw billions of dollars of mandatory spending come under consent decree for certain targeted municipal areas and thereafter states and local governments voluntarily follow too.

Important to recognize, however, is that this is an entire new area of infrastructure, which means that local governments are largely not set up to develop and manage it, and thus we are provided with the natural opportunity for public private partnerships.

As municipality has put into place stormwater utility fees, it has enabled the private financing solutions to solve the capital need to accomplish the infrastructure upgrades needed throughout the country.

We are thus thrilled to announce the next natural step in solving America's stormwater infrastructure challenges, namely the combination of the two premier stormwater public private partnership companies in the country.

As we announced this morning, we have joined forces with Corvias Solutions, a major infrastructure construction company in the United States. Under the agreement, we will execute certain projects, pursue an expansion of others and bring in integrated stormwater program with proven financing capacity to the marketplace and this is truly a game changer for the industry.

We are also pleased to announce that our specialty engineering firm AEWS Engineering will join the Corvias team on executing what is the premier stormwater public private partnership in the country, the first $100 million initial stage in Prince George's County, Maryland.

The combination of Abtech, which is the holder of this first design build operator DBO stormwater contract in America with Corvias, awardee of the largest stormwater DBO and public private partnership that includes a financing component. Truly does form a powerhouse team. Corvias’ Prince George's County project has received the support of the Environmental Protection Agency and the Maryland Department of Environment.

Likewise, Abtech’s Nassau County project featured on national TV just yesterday, serves as a template for how to solve unit stormwater infrastructure challenges throughout the tri-state region. We look forward to the work we will begin with Corvias immediately and a new chapter for Abtech in this growing and evolving market.

I will now turn the call over to Lane for review of the quarter’s financial figures.

Lane Castleton

Thank you, Bjornulf, and congratulation. This is great news and something that is as a company we look at as a real strategic benefit going forward. This is going to be very important for us. Good afternoon, everyone. I appreciate you participating in the call today.

Abtech’s revenues for the second quarter of 2014 totaled $183,000, compared to $134,000 reported in the second quarter of 2013 and just $75,000 in the first quarter of 2014.

The company’s revenue today has been minimal. However, meaningful sequential quarterly growth is expected for the remainder of 2014 as Phase 1 of the Nassau County contract has officially been completed, sites have been selected and improved for system design and installation.

Funds for Phases 2 and 3 have been made available with funding for the remainder of the project expected to be released on expedited pace ahead of construction. Nassau County intents to have construction of the 10 to 14 initial pipes completed by first frost, which of course a subject to timely receive permits and other regulatory processes.

Thus, our revenue from this contract alone over the next two quarters is expected to be significantly higher than the revenue achieved in the first half of the year. We also expect to win additional similar size contract opportunities in the near-term, as will be discussed later in the presentation.

The gross margin reported for the second quarter of 2014 was 34%, compared to 32% in the prior year’s second quarter and a negative gross margin in the first quarter of 2014. While we expect gross margins to improve significantly for Smart Sponge product sales as our operation approach full capacity, our business model has diversified to include revenue from design, installation and maintenance services, as well as sales of equipment from other manufacturers.

This broaden business model is expected to expand revenue growth and generate higher gross margin dollars. However, the actual gross margin percentage we achieved will be dependent on the mix of revenue from these various revenue sources.

On minimal revenue, Abtech reported loss from operations of $1.4 million for the second quarter ended June 30, 2014, which is not significantly different from the quarterly loss from operations reported in the same quarter of 2013 -- for the first quarter of 2014.

As a quick comment on our operating expenses, the company's operating expenses for the three months ended June 30, 2014 totaled $1.4 million, a decrease of $75,000 or approximately 5% from the prior year second quarter and approximately $99,000 higher than operating expenses for the first quarter of 2014.

The year-over-year decrease was primarily due to a reduction in SG&A expenses specifically lower auditing and legal fees compared to last year when we incurred costs associated with two S-1 registration statement filed with the SEC.

We also disengaged several outside consultant used for public relations, government affairs, business development, website development, supplemental, investor relations, which resulted in $71,000 of savings in this year’s second quarter, compared to last year’s second quarter.

In addition, we trimmed our internal staff, saving approximately $73,000 during the quarter. The savings from staff reduction will be short-lived, however, as we have already begun to hire professionals to address growing business activity and interest in Abtech technology.

That said, this SG&A savings have been shifted into a highly productive and expanded R&D effort during the quarter, increasing R&D expenses by $188,000 or 85% year-over-year to $410,000 for the second quarter of 2014.

The cost increases were led by oil and gas field test work and successful third-party validation of the company's mobile water pre-treatment system, expenses in lab testing of new heavy metals technology which yielded extraordinary results and the testing of the newly discovered recycling property of the Smart Sponge that we believe will make our technology even more attractive to the oil and gas produced water market. Looking forward, it is likely that the portion of the field testing cost will continue into the upcoming third quarter.

Interest expense during the second quarter of 2014 increased to $223,000, compared to just $13,000 in the same period of 2013 and $167,000 in the first quarter of 2014. As a result of the interest costs related to the $3.5 million, 6.5% secured convertible notes issued by Abtech in December 2013 and the $2 million of 7.5% secured notes issued by Abtech in increments from March through May of 2014. Interest expense for these notes includes the amortization of the note discounts and deferred financing costs related to these notes.

For the six months ended June 30, 2013, Abtech revenues were $258,000 versus $234,000 for the comparable period of 2013. The net loss attributable to controlling interest for the first half of 2014 totaled $2.8 million or $0.04 per basic share compared to the net loss attributable to controlling interest of $2.5 million or $0.04 per basic share reported for the same period of the previous year.

Our cash balance at June 30, 2014 totaled approximately $632,000. From December 31, 2013 to June 30, 2014 total assets declined by approximately $582,000, due primarily to the drawdown of cash during the quarter for operation, including the R&D costs of field deployment and validation of Abtech’s first oil and gas mobile unit, as well as heavy metal testing.

At June 30, 2014, the face amount of the company's outstanding short-term debt totaled $2.8 million or approximately $2.6 million net of discounts. With the face amount of the company's long-term debt totaling $3.5 million or approximately $3.1 million net of discounts.

The cash burn for operations during the second quarter this year averaged approximately $362,000 compared -- excuse me, $362,000 per month, while the cash burn for the first quarter 2014 was nearly $475,000 per month.

It is important to note that, as we are achieving some degree of business traction, we continue to be presented with several financing options. While our financing preference continues to be straight debt to fund the working capital requirements of large contracts since their one, there are other funding alternatives that we will consider as needed to fund operations, including the untapped $2 million equity line of credit that’s currently available to us and $100,000 bank line of credit that’s currently in place.

As of June 30, 2014, Abtech had total federal and state tax loss carry-forwards in excess of $40 million and $20 million, respectively. The number of shares of common stock outstanding as of the end of the second was 67.9 million shares consistent with year-end 2013.

The company's fully diluted share count increased by approximately 1.3 million shares during the first two quarters of 2014 to approximately 99.8 million shares inclusive of all options warrants and convertible debt.

Increases due to the 1 million warrant shares issued with the secured promissory note and the addition of conversion right to $500,000 note issued in 2013, representing the equivalent of 781,250,000 shares if converted and also an increase in Director and consultant options totaling 444,000 shares.

This increase in fully diluted shares was offset by the expiration of 1.7 million shares of warrants and options since year end 2013. If all of the outstanding options and warrants included in the fully diluted share count were exercised for cash approximately 10.7 million of additional capital would be generated for the company.

Now to further discuss our business opportunities I would like to turn the call over to Glenn Rink, Founder and CEO of Abtech.

Glenn Rink

Thank you, Lane, very much and good afternoon, ladies and gentlemen. I also would like to congratulate management for the recent press release regarding Corvias was outstanding work and it’s a game changer and I'm excited about it. I want to congratulate everyone for their support.

On a very personal note though, I’d like to begin by also stating that what should be obvious to most of you, Abtech has incredible opportunities on many fronts to address water contamination issues not only in the U.S. but globally and it is truly at the right time in place.

Obviously, we received the first contract for approximately $12 million for a stormwater design build and operate also known as the DBO of a distributed solution. The first we know in the country. We anticipate this will be replicated by the cities and towns throughout the country and probably the world. As it is truly addresses a serious problem.

I believe we have been extremely strategic in our pursue-to-market opportunities with our technology and again, I believe we are now on the right place at the right time with the right technology.

To date revenues have not reflected the magnitude of this opportunity, which can be very frustrating, not only for you the investor but also to management and to our Board. We have great confidence in our technology and its effectiveness in addressing water-related problems, providing true solutions. But the process of delivering cutting-edge technology that can reform the way we address water contamination issues for recycling and/or reuse worldwide, particularly in industries not necessarily known for their speed and bringing about change is slow, methodical process not likely to change anytime soon.

Abtech management is working diligently and I can assure you diligently within the conventional parameters of the industry to accelerate projects and bring solutions to the market at expeditiously -- as expeditiously as it feels is appropriate and profitable without damaging relationships with our customers. I'm truly more excited than ever, but I feels that we are year behind, where I would have liked us to been.

However it’s better to be later than ever. I want to thank each of you and our investors, bankers, staff and especially our management team who are working seriously to bring results.

I also want to thank our Board of Directors and advisors who have been also put a tremendous effort forward and strategically positioning us for what I believe to be amazing growth phase that we are now entering.

Let me begin by commenting on our strategy to address these extremely large and developing markets. Obviously, Bjornulf touched on the Corvias press release earlier today which we believe is very strategic and a game changes have already indicated. But let me begin by commenting on the strategy to address this.

So, Abtech has started or started as an advanced media filtration technology company, many of you already know this. Smart Sponge is an extraordinary award-winning technology for hydrocarbon removal and now we are prepared to also delivere filtration media capabilities for heavy metals.

We will continue to offer this technology on a product sale basis, which of course, carried very attractive margins for our company. We are also company that listens to our target customers. The scope of their need is much bigger than what we could -- much bigger than what can be achieve with several novel individual products.

As we are addressing new burgeoning market at the breakup, tremendous growth driven in some cases by environmental concerns and regulations, and in some cases by limited access toward it, but in all cases economics.

Our customers need complete treatment solution. To address this need we’re strategically redeveloped our business model to offer partial and comprehensive turnkey solutions. Initially, specifically in stormwater, we also get complete design build operate model as we’ve already discussed, positioning Abtech as the prime contractor for the first few marquee contracts for the purposes of paving the way for the industries and to provide greater control over timing, margins and most importantly, the quality of the overall program and project offerings in the early phases of this storewater industry.

It is truly important to understand that Abtech is not planning to build this revenue model in stormwater by itself. While continuing to pursue similar Nassau type contracts and RFP awards, et cetera, we are currently in discussion with multi-million -- billion dollar companies that are in the municipal public sector space and have the ability to greatly leverage what we have already accomplished.

They have the resources and industry recognition to pursue many cities, towns and counties at the same time, as further example given by they released today by regarding Corvias.

Abtech just need to finish creating the model but it is already been formed, enabling an accelerated deployment of our technology at enhanced margins. Let me review our business opportunities beginning with our first -- our largest and most mature segment stormwater.

Our opportunities in the tri-state region anchored by our project Nassau County already as you know in execution, continue to expand as we advance our process there, increase personnel, including underground presence and gain credibility from regional work in progress.

The Nassau project after a longer than desired timeline, I think, we can all agree with that. We have completed Phase 1 of the project during which we evaluated 60 outfall pipes first focus, selected the first 14 to receive improvements, this have all been approved and the green-light has been given to move forward to upgrade the initial pipes under the pilot project totaling up to $12 million.

While we have long discussed 10 outfall pipes under the international contract, 14 were selected with the expectation that two to three of the sites maybe withdrawn from the list of sites if site complexities are discovered during the final detailed engineering work.

It is the intent of the county supported by its Executive Director that the initial outfall pipes are completed by first frost this year. The project construction for single outfall pipe, I want to go into some detail on the timing of this and so the project construction for single outfall pipe, site can be completed in as little as one to two weeks or as much as several weeks, depending on the sites specific.

More than one site can be improved simultaneously. Thus the actual installation base, weather permitting is a 10-week process. Based on current projected schedules, I again want to say weather permitting and assuming we don't have any unexpected surprises, post installation, Abtech will continue its management role by overseeing operation maintenance.

AEWS Engineering and its local engineering partner will be responsible for the continued monitoring and supporting of the municipality in its ongoing compliance and regulatory reporting needs, which equate to approximately $575,000 over the course of 2015 and 2016.

Under the terms of the contract, operation and maintenance is extendable and the projects is due as the first phase in a larger project effort to address no more management problems across the hundreds of stormwater outfall pipes in Nassau County.

Some of you may have seen, the recent press conference or have heard about it, but as stated by the county executive in recent public appearance, he would like to see all 2,600 pipes in the county undergo some level of improvement. This does not mean they will all be large pipes similar to the first 10 already under contract. The pipes will vary in size and needs.

Revenue generated from the Nassau contract during the third and forth quarter was most certainly improved from current levels. Funds have already been allocated by the County to satisfy Phases 1 and 2, and part of Phase 3 totaling approximately $750,000.

The process of establishing design build operate of a distributor model has been high -- been highly carefully and meticulous -- highly careful and meticulous process, which surely can now be streamlined by many communities that have similar stormwater management needs.

To help shorten future sales cycle, the first project helps established the template model that other cities, towns and counties can use to service the model for their needs. Beyond Nassau, we continue to gain momentum. With addition of municipality but we are limiting our review on this call to what we believe will be awarded and contracted this year.

There is a second RFP that we are responding to that is very similar to the Nassau County project in both size and work scope. So it maybe somewhat smaller in shared dollar amount, the turnaround of the RFP and its work is expected by year end.

Moving on to oil and gas, our opportunity in business update, many of you know, we have work diligently in this space, over the past year we have completed development and validation in 10 different shale plays in the U.S.

We have developed the (indiscernible) produced water treatment system ranging from mobile systems to previously tested fixed installation combining best to breathe commercial technology, innovative systems, engineering and specialty technology such as Smart Sponge de-oiling technology.

As we have had significant discovery and third-party valuation within the last couple of weeks, and as such strategy towards the industry is evolving in very positive ways. While we are continuing to pursue a two-fold strategy, the first to be a technology supplier to oil service companies, the second is to be a solution provider to operating companies for more system-orientated solutions, teaming with oil service company partners on projects.

There is a third opportunity that is under consideration and as and being pursue to form partnerships with companies already strategically in the space that want to leverage our technology with their existing customers for which they would manufacture and finance the entire pretreatment mobile unit, lead the sales process and pay combination of royalty and licensing fee to Abtech for its technology.

Candidly, I'm not really interested in reinventing the wheel and I don’t want to hire 800 to 1,000 guys, (indiscernible) hats and booths on the ground to sale under space that already has leading companies who could benefit from our technology.

We are actively considering all options with our Board and will keep you posted. I believe this next quarter will be defined our market penetration and partnering to the oil and gas space.

At the core, what is new that is creating this interest? Well, many of you read, water recycling reuse is quickly becoming a trend in the fracking industry, particularly in drought regions. The industry trend currently appears be focused on system that can take flowback order to clean brine which can be reused several times before disposal.

This process is highly cost-effective and greatly reduces but does not eliminate the fresh water, trucking and injection well disposal. The Abtech mobile unit is in -- is the right product at the right time.

At the end of March we began processing order for the first time using our commercial system at site in the Eagle Ford Shale play in Taxes. We deliberately choose a site where we were able to bring third parties, also potential customers, ranging from exploration and production companies or operators to the oilfield services companies to other synergistic water treatment companies.

Moreover, to maximize -- truly maximize benefit from this demonstration. We chose a challenging site where we could process a variety of flowback and produce water from throughout the Eagle Ford Shale play, while also selecting a site that if we had any problems it would not be an embarrassment to Abtech.

Fortunately for Abtech, we were not embarrassed and in fact, our technology was confirmed where we fit in this solution, which was exactly where we planned, it would be positioned and we are very pleased by that obviously.

The particular site is actually a disposal well and I know, some of you already discussed this with us and we have read about it, where water arrives daily from throughout the shale play formation by truck destined for disposal. Abtech systems intercepted water prior to the disposal on order to demonstrate a water treatment alternative.

At a disposal well typically water is collected from a number of different produced water sites or frac sites from different operators. This water is usually inconsistent not only since its coming from the variety of production wells, but mostly because there is a variety of proprietary chemical formation that are unique to each operator. The result of Abtech technology was impressive.

The water received on the site had gas and oil condensate, free oil and high concentration of iron sulfide that pose a unique challenge in treating water to a level that can be safely re-injected in a disposal well.

The existing treatment system while effective allowed up to 350 parts per million of free oil to be injected back and receiving formation. And improve system was required to remove the remaining oil while ensuring the injection well was protected from solids and oil, which could cause plug-in, after five weeks and more than 800 hours of processing of between 5,000 and 15,000 barrels per day of contaminated produced water and importantly, just recently validated by independent experts and third-party labs our pretreatment mobile unit reported hydrocarbon removable rates as high as 90% with oil and grease levels and as low as 58 parts per million.

While overcoming many adversities on site including treating gel frac, heavily -- heavily chemical multiplied oils, iron sulfide, bacterial pad buildup and fluctuating flow rate, probably more information you wanted to hear, but regardless, we expect removal rates to reach closer to 100%, when we deploy our equipment on the commercial basis. Since we don’t need to address the typical site condition we faced in the pilot location, where unknown chemical injection sites were drawn into mix that added the complexity of the water blind.

In addition to these meaningful results as a recent discovery of the property of Smart Sponge that essentially creates a close loop process that eliminates one of the major concerns that we began hearing from potential customers. Its truly an important aspect and I’m very excited about this as well.

What do you do with the spent Smart Sponge, essentially what do you do with used Smart Sponge. The answer is to absorb the hydrocarbons out of the water. We’ve always said they can go to waste-to-energy facility. But in the case of the oil fields, waste-to-energy facility could be hundreds of miles away from a specific oilfield site, which could dramatically increase cost and a major concern.

So at some frac sites are located at such remote areas, converting this sponge to an energy source and melting it down to retrieve the oil is too cumbersome. And hence carving the sponge to white site became too expensive no longer. It turns out that under most conditions, our lead engineer confirmed that we can recycle right on the actual site, eliminating any disposal need and thus reducing the overall cost of the process by approximately 10%.

Now, that’s reducing the cost by 10% of the overall project, not of disposal or not of using our used Smart Sponge, that used Smart Sponge is sellable. This is seen by the potential customers as a highly significant development. While we do not want to go any further to detail this processes, as we believe the process we're using in recycling is tangibility potential and we are pursuing that.

AbTech’s pretreatment system consist of an oil recovery, solids removal and hydrocarbon polishing phase, all meant to sit in front of typical produced water treatment system such as membrane or electrocoagulation systems. With Abtech System as the front end of a treatment train, the entire water treatment process is made more efficient and economical. In fact, the total treatment cost is significantly less than current freight and disposal process.

What are the dynamics to Abtech? The dynamics can be different at every site but here is just one example. Each mobile unit processing 10,000 barrels of produced water per day should yield revenue to Abtech of approximately $1 million per year or more. And again that is going to change the site-to-site based on contamination levels, that’s just a simple example.

International, if I could just go into this briefly, 2015 as many of you heard us speaking is obviously fast approaching. This is the year that the European Union Framework Directive requiring all inland and coastal waters within defined areas to achieve what’s called good status, water quality standards. This is going to impact every aspect of water usage; domestic, industrial, agriculture, leisure, and environmental and conservation.

We are truly seeing an escalation of business opportunities internationally. To address these opportunities, we formed a new subsidiary, Abtech Industries U.K. Limited in the fourth quarter of 2013 though -- through which we intend to pursue projects in the United Kingdom and potentially other European countries.

We’ve long discussed the evaporator opportunity which is more aptly described as the liquid solid separation technology that addresses the on-site treatment of landfill leachate and concentrate waste streams in the Waste Management and Oil & Gas Industries. We intend to market two models of the equipment currently proposed.

The first is 150-gallon per hour unit that captures thermal energy from a combined heat, power unit, also CHP engine that generates electricity. The second model is 600-gallon per unit that derives its thermal energy from a gas burner, operating off landfill gas or other piped gas sources.

We estimate cost savings of this technology to the customer 30% to 50% of current cost to truck and treat off-site. We offer either a service agreement or equipment -- or an outright equipment sale. Under the service agreement model, we will supply equipment and maintenance to customers under 10-year service agreement that is renewable for successive 10-year periods.

Customers are charged a monthly minimum based on the availability of the system and average charges based on leach -- total leachate process each month. Gross margin is projected at 45%. This pricing model has been primarily attracted to U.K. and EU customers and it’s liabilities of leachate treatment continues for a 60-year term in EU.

Under the equipment sales model, which encompasses directs sales of the separator and related accessories, the units including heat transfer packages for 150-gallon power unit are projected to retail for $400,000 of the $250,000 in direct cost whereas the 600-gallon per hour unit are projected to retail for $600,000 with approximately $400,000 direct cost.

Gross margins on the equipment sales alone are expected in the 35% range. Generally no inventory of units will be held as they are shipped directly from contract manufacturers’ facility to the inflation site. Briefly on European, sorry -- the EU landfills, we’ve identified over 2,000 landfills throughout the EU that would be candidates for the technology. Over 300 of these are in the U.K., which is the market we have chosen the focus on initially.

The size of the market, the opportunity assuming each landfill on average we require two units and the equipment was directly sold to them. It would represent a market opportunity about $1.6 billion. If the same opportunity is served under 10-year service agreement, it would elevate and represent a market opportunity of over $7 billion.

In the United States, in the U.S. market, there were 1,900 landfills. The landfills in the U.S. are much large in size than those down in the EU. We’ve assumed a 1,000 of these landfills represent our opportunity. Each landfill in U.S. is estimated to require four 600 gallons per hour separators. This would see a market opportunity of equivalent sales of over $2 billion.

Current opportunities in hand, a large subsidiary, we’ve discussed previously, we've been working with approximately 250 company is our partner in U.K. to develop the waste heat version of the separator. They are a partner to certify and permit the initial unit in the U.K. They operate 20 open landfills currently and 12 closed in U.K.

Upon successful trial, they have planned for over 10 units. We anticipate installation of the first unit in the fourth quarter of this year and to be processing leachate prior to the end of the year. One of large U.S. operators that operates 326 landfills in 80 water treatment facilities. It has also shown an interest and purchasing a couple of the units. So two has another large waste competitor as well.

Timing schedule in the U.K., we anticipate completing manufacturing testing shipment and installation start-up at first unit at our partner site in the fourth quarter. We will be collecting data for regulatory submission over six to nine months period thereafter. Regulatory approval and additional equipment orders are anticipated in the second quarter of 2015.

In the United States, we anticipate sales of the first couple of units before year end. So we are quite excited about the opportunities for both here domestically and internationally. From an industrial standpoint, I'd like to just briefly discuss the DieselPure. We’ve discussed this in the past. We’ve signed an agreement with them in September of 2013.

The good news is that there is a good amount of interest in the product, however, progress has been disappointing as we are receiving significant pushback from potential customers based on price. We are working with the manufacturer to address this issue.

In addition, customers are interested in using their emergency generator sets to save money by peak shaving their electrical rates. This capability would require the combination of diesel fuel filtration and emissions control technology.

We are working with the third-party power utilization experts to complete this evaluation. Currently, we do have four proposals outstanding a total of approximately $300,000. But we are less than excited about where it is at this particular point in time.

We do believe that the industry is not evaluating apples-to-apples on the equipment. And we do believe that with the evaluation of the peak shaving that that could really help differentiate it further for people on bringing greater clarity.

From a research and development update, Abtech has always had a fairly active and ongoing R&D effort, nevermore so than in the past six months. Not only we focused on designing an engineering systems like our recent mobile pretreatment unit but we made a significant discovery as we’ve already discussed recycling this spent Smart Sponge and as mentioned earlier, to this progress, we added a series advancement to our abilities to address heavy metals, which is increasingly being regulated in dressing contamination in our waterways.

I have to say after more than two years of extensive research on heavy metals technology and testing, just last week upon completion of successive third-party bench scale laboratory test that provided impressive results. We signed an exclusive worldwide license agreement with Synanomet, an Arkansas-based private company that holds exclusive patent rights in the University of Arkansas at Little Rock relating to the manufacturing and use of certain nano-structured materials of interest to Abtech for heavy metal removal.

We believe we now have a cost effective superior capability for targeting heavy metal such as cadmium, chromium, copper, iron, lead, zinc and ortho-phosphates from stormwater while not being blinded off by much more common and less toxic metals such as calcium and magnesium.

In addition, we understand we are the first to have addressed selenium IV & VI and consistently added a reasonable price. We are proceeding quickly to field validation of both mining sites and stormwater applications in confirming strategic partners who are already heavily invested in the space, anticipating commercialization in the coming months.

In closing, I'm sure you're pleased to hear, I believe -- I absolutely believe we are a great company, well positioned in the marketplace with amazing technology albeit with some project delays. In light of this and what we believe will be materializing over the next few quarters, we consider our stock undervalued and we’ll also add since the exact timing of our expected progress cannot be predicted with any degree of accuracy. We are not a short-term play but rather a buy-and-hold but we are confident our time is coming.

And I truly appreciate each of your support. And with that, I would like to open the conference call up to questions. Operator, would you please assist.

Question-and-Answer Session

Operator

(Operator Instructions) And our first question comes from Brian O'Connell from Prosdocimi. Please go ahead with your question.

Brian O'Connell - Prosdocimi

Thank you. Hi Glenn.

Glenn Rink

Hi.

Brian O'Connell - Prosdocimi

I have got two questions. The first one is relating to your very encouraging press release on Corvias opportunity. We want to understand, I know, you’ve been kind of hesistant to mention the progress on development booth, projects and revenue realization. Do you have any idea at this early stage, what the Corvias opportunity could mean in terms of revenue and how quickly initial kind of revenues might materialize in this opportunity?

Glenn Rink

Thank you Brian for your question. Thank you for joining us. At this late hour, I’m in London and with that Bjornulf, would you please?

Bjornulf White

Sure. Well, I would focus attention on the immediate opportunities that we've discussed in the press release. The first is being selective as the partner to provide the engineering services for the Prince George's County project. That is we have a 30-day timeline to complete the subcontract agreement from the point when they complete their contract with Prince George's County, which is very imminent.

So it’s actually a very quick timeline. And then we would start work on it right thereafter. So that’s a near-term revenue event under this agreement. The other thing is that we immediately begin work on inactive proposal for a project that is similar to Nassau County in terms of size and scope and based on that timeline, that one is moving quite fast as well and we would expect to encompass revenues this year.

Beyond that I think what I'd rather focus attention on is, what this means from a company positioning standpoint and that is really that this agreement and this teaming with Corvias allows us to focus on what we do best. Nassau County, the project that we put in place was really about creating a template to show the marketplace how to do this. But we never wanted to be the one who actually went out and build a large infrastructure to do that.

So now we can revert back to providing innovative technologies and best-in-class stormwater engineering services. And Corvias or companies like Corvias can go out and establish the relationships with municipalities and establish the umbrella contracts and do all the stuff that they do best.

The second part is that I want to focus attention on something that’s very, very key to this relationship and what’s happening in the marketplace and that is the financing, the private financing component. So when you have a municipality that has a stormwater utility fee in place. It is a much quicker process to put together a project, finance against the stormwater utility fee and then focus on the deployment of the infrastructure immediately.

So with all of the projects that we pursue, we will no longer be operating under the old model of waiting for municipalities to find funding sources but rather go in and immediately establish these types of contracts, bring private financing and then begin work.

Glenn Rink

I hope that was helpful Brian.

Brian O'Connell - Prosdocimi

Thank you. And just my final question, Glenn, just looking ahead into Q3, what is your most likely, kind of, expectation of revenue contribution that you can get from Nassau. And I guess, Glenn, should we expect to take half the remaining Nassau pipeline or will it be more gradual increase since year end. And then finally, would you anticipate revenue beyond Nassau in Q3?

Glenn Rink

Great question. Thank you for asking and I will once again transition to Bjornulf for a response.

Bjornulf White

Sure. On that one, I would really refer you to the Tuesday news release on the status of the project because at this point, I think the key is we’ve completed the first phase. We’ve selected and been approved for 14 sites to move forward with. And so we’re now in engineering and design phase. The procurement and construction overlaps with engineering and design phase because the construction administration portion also sits within engineering and design.

And as Glenn mentioned the construction timeline on these sites, once you get through all the stuff that we’re doing now is actually very quick, one to two weeks on smaller or simpler sites and several weeks on more complex sites that involve roadways or things like that.

So even in the more complex situations, you still have a very fast constructions timeline. And that allow us to capture the lion share of revenue, which are all in that construction phase, 80% of the contract value, relatively quickly compared to all the other faces. But beyond that I don’t think we’re prepared to say anything beyond what we’ve said today on the call and in the release on Tuesday.

Glenn Rink

Thank you Brian

Brian O'Connell - Prosdocimi

Thank you very much

Operator

Our next question comes from Jim McIlree from Chardan Capital. Please go ahead with your questions.

Jim McIlree - Chardan Capital

Thank you and good afternoon. Can you -- Glenn, you mentioned that the oil and gas product will go commercial at some point. And I was just wondering if you could put a time range around when you think it will be a commercial product?

Glenn Rink

Hi, Jim, how’re you? Nice to speak with you, It’s a great questions as well. And one of things that I’m trying do is set expectations in a way that doesn’t put us behind the [eight-ball] (ph) because of the fact that we had certain expectations for other projects.

I can say to you that and others can chime in here as well that’s we’re diligently working in the field with the particular customers that we think have great strategic capabilities to work with us. And one issue that we address, Jim, was this spent material. You visited our site down at the Eagle Ford. You actually were down there and we appreciated your trip down there, but that spent material would have cost us, just as an example, $20,000 to dispose off if we weren’t able to figure out what we did and turning it back into liquids.

So now that, that issue is resolved, we believe that is -- that’s going to be very helpful. But it’s not the only things that’s going to be helpful. The other part of it is the delivery of that equipment and the ability to deliver that and people now worrying -- company is now worrying about our balance sheet and having adequate funds to deliver that equipment especially if there is multiple units being ordered

And that process is also we believe being addressed properly with one of the multi-billion dollar companies that we’re working within that space. There’s actually two but one of them that we think is ideal for this and we’re in discussion that we’ll actually work with us in putting it on that balance sheet.

So I’m going to be very careful about saying anything sooner than that, just because I know these issue need to be addressed. I’d like to see some thing happen this coming quarter but I don’t want to promise something that I cannot deliver because of third-parties that are involved.

We feel we have a very unique niche and that we have a very appropriate -- from the economic standpoint, but it took a little time to make sure we actually understood what some of the push back was and what the issues around that were, really those two items that I mentioned which we believe we’ve addressed and excitedly addressed the recycling capability. There’s anybody else. Bjornulf, would you want to add anything further to that? Jonathan, would you like to add anything further? Jonathan, are you there?

Jonathan Thatcher

Sorry. I had my phone on mute there. No, I mean -- I think that’s accurate and I think that one again the field testing that we did really underscored the right place for Smart Sponge as well as in the treatment process in terms of protecting the downstream technologies.

Jim McIlree - Chardan Capital

Thank you.

Glenn Rink

Jim, do you have a follow-up?

Jim McIlree - Chardan Capital

Yes. I might -- the Synanomet, I hope, I’m pronouncing that correctly, relationship that you announced recently. Is there any upfront cash involved in that and when is it likely that that technology would become part of your commercial offerings?

Glenn Rink

Well, I can tell you there is interest from all globally. We had interest increase all of the world for it and we just want to roll it out and properly and effectively. And I’m going to let Jonathan -- Jonathan get into further details of the economics and whatever else you're at liberty to disclose, Jonathan.

Jonathan Thatcher

Hi Jim. No, there is no upfront cash in the context of what you would think of as sort of initial license fee. For that there are some minimums that kick-in in out years under that agreement. The only initial dollars which are some modest consulting dollars are focused around taking the current manufacturing process which we will be able to manufacture hundreds of pounds a week of it under the current manufacturing process and turning that into a real commercial process, which we estimate will take probably four months to six months to modify the manufacturing approach, so that we can produce thousands of pounds of media a month or week with that particular technology. So no large certain upfront license fee and the consulting arrangements focused around the commercial production development.

Glenn Rink

I just want to clarify one thing that Jonathan said when he is talking about the pound is the pounds being produced. He is talking about for the sites that we’re looking to commercially roll it out to specifics sites and having adequate material out there for this specific sites. But then we want to roll it out commercially and we’re looking at hundreds of thousands of pounds hopefully per day. So, its very unique technology. It adds a very unique capability and its quite exciting. So anyway I apologize. Did you have a follow-up to that Jim?

Jim McIlree - Chardan Capital

No, that’s it for me. Thanks a lot and good luck with everything.

Glenn Rink

Thank you very much

Operator

Our next questions come form Jay Harris from Axiom Capital. Please go ahead with your question.

Jay Harris - Axiom Capital

I’m very pleased to see that we’re -- our life as a commercial development company is shortly coming to an end. I have several questions. One, what was the cash burn in the month of July and how much cash will the company need before it starts to generate a positive cash flow?

Glenn Rink

I can only say to you that I don’t believe we put out numbers for July, did we Lane.

Lane Castleton

No but know them.

Glenn Rink

I understand, Lane. Lane? Have I lost my Chief Financial Officer? Is he there?

Lane Castleton

Sorry I had my phone on mute. This is not the venue when we’re going to start releasing monthly financials.

Jay Harris - Axiom Capital

So repeat what your burnt in June then?

Lane Castleton

Yeah, I mean, you could simply -- in June, I think it was around $360,000 we averaged for the last quarter. We averaged around $360,000. And I can tell you that those numbers, that was operating in the oil and gas sector. So we’ve really -- we’ve kept cost at the minimum. But if you just assumed that you are looking at about $400,000 -- a monthly burn of about 400,000 that gives you a little bit of a cushion.

Obviously as things developed and we accelerated in certain areas of the world and opportunities including in Maryland, they may require necessitate opening offices and expanding. But those things are not going to happen until certain -- till the revenue, not contracts but the revenue starts coming through in and most all cases.

And so if you would look at our margins previously and we had our calls on previously, Jay we’ve discussed our margins, the Nassau-type project have been reduced because of the overall type of projects and as Bjornulf was alluding to in the statement about moving forward, our margins are moving back to the standard -- more standard level of 40% or greater.

So if you are looking at breakeven point and $400,000 a month, you could be looking at roughly $800,000, call it $800,000 a month to $900,000 a month to breakeven. And you could be looking be approximately $10 million a year for breakeven point based on those types of margins as we’re moving back into the more standardized area. From a -- I hope that’s helpful, may be that was more information then you wanted.

Jay Harris - Axiom Capital

No, it’s good information. Thank you. What -- when we start to service orders, what kind of working capital requirements will that meet?

Glenn Rink

Each market segment is going to have different answer to that. If you are looking at the oil and gas equipment, Jay, which Jonathan can go into some detail on the evaporator. Jonathan, why don’t you touch on the evaporator in industrial market because those are some very fixed cost and high costs. Could you touch on those?

Jonathan Thatcher

Sure. The general manufacturing period for the separation equipment and packages is about three to four months dependent somewhat on configuration. And so there will be some financing and inventory carry during that period as we’re manufacturing for those that are sale -- equipment is going for sale, roughly 30 days after delivery and installation. We have paid for that equipment. And so you would be looking at a roughly five months carry on the inventory. So for that you would use equipment financing.

There are also groups for those that are related to 10-year service agreements that are willing to carry the financing based on that contract as well for that 10-year service agreement. And so we would use a combination of sort of more traditional inventory and manufacturing financing along with contract financing for longer-term service agreements.

Jay Harris - Axiom Capital

And finally, Glenn, as commercial activity picks up, could you just sort of describe when you would -- what would cause you to put out a press release or to keep us -- how would you keep us informed that you were moving into billable activities?

Glenn Rink

That’s -- you talking about -- it’s a great question. Are you referring to specifically, for example, the Nassau project to more of the Corvias, just in general.

Jay Harris - Axiom Capital

Well, whichever one hits first?

Glenn Rink

I forgot. Lane, how you would you like to answer that question, Lane. I’d like to be shouting it from the rooftops but I probably, I won’t be able to do that. So Lane, could you help me with that, Lane?

Lane Castleton

I think, we’ll follow the same process that we’ve been following with Nassau. And that is when we actually sign a contract with a specific billable amount, we will disclose those contracts and try and give an estimate of the timing of when those revenues were going to be generated.

Obviously, we've learned with Nassau County project that it's very difficult to project that timing. But as we win new business, we will be disclosing the significant new contracts that we enter into. We will see that.

Jay Harris - Axiom Capital

I think the audience would be equally interested in indications of when you start billable activities. There’s been a gap -- historically, there’s been a gap between signing a contract and commencing billable activities?

Glenn Rink

Point well taken and we’ll look at ways that we can leverage some of that information out so that the public is kept informed in that regard. You realize we’re trying not to set a precedent where every time the project to some level, like, $200,000 or even $1 million. Though it’s very exciting as the turning point, we’re trying to set a precedent that we’d be doing on every order. Then people don’t see press release, they think something is not happening. But we will do our best to try to communicate as these projects start to develop and keep you informed.

Jay Harris - Axiom Capital

Well, congratulations on the progress that you’ve obviously made over the last few weeks.

Glenn Rink

Well, I appreciate your recognition of that. I can say to you that having a couple companies out there and this particular company is a phenomenal company. They’re very well positioned. And as Bjornulf already indicated the fact that they already have.

We got the first project, they got the second but there’s a $100 million project. And Prince George's County is expecting to spend $1.2 billion overall and this is the first $100 million of that. So we believe this is a huge step up with the right company and the growth opportunities and leveragability of this can really make -- just it’s very, very exciting and it's been a long time in the workings.

Bjornulf White

Thank you, Jay. Next, do you have time for another question? Operator?

Operator

Sure. Next question comes from Adam Rund from LD Micro. Please go ahead with your question.

Adam Rund - LD Micro

Yes. First allow me to congratulate you on the recent contract in advancement, exciting news. I have two separate questions and I’ll ask them individually. First, as you view your cap spending plans and important component will be equipment such as oil and gas mobile units. Approximately, how much do these cost? And how long it take to build the unit, should you choose not to partner out of business? Could you give us an idea of how many you plan to build this year?

Glenn Rink

Jonathan, could you assist to that question please.

Jonathan Thatcher

Yeah. The oil and gas units take approximately three to four months to build in the mobile trailer environment. And the cost of those are about $400,000 a piece that can climb to $600,000 depending on the configuration of the technology. In terms of the number of units, we would build this year. We would build them based on order contracts. And so that the numbers would follow those. And as those contracts are signed, we’ll certainly report the number of units both in the field and in under manufacturing as well as we go forward.

Glenn Rink

Adam, I hope that first question was answered adequately for you?

Adam Rund - LD Micro

It was. I got the 400K cost per unit, kind of cut off right after that. Were there something else that went along with that?

Glenn Rink

Jonathan.

Jonathan Thatcher

Yes. Its $400,000. It can climb up to as much as $600,000 depending on the configuration and the technology choices for the water environment. It's going to be operating in but the more typical model will be closer to $400,000 a piece.

Glenn Rink

And that would be -- that would be something in the range for 10,000 barrel per day well side. Jonathan, is that correct?

Jonathan Thatcher

Correct. That’s 300 GPM or 10,000 barrel per day unit.

Glenn Rink

And then it’s a calculation, from a standpoint going up to 20,000 barrels, would you give us some detail on the calculation. It’s not a total, its not linear but could you give some detail on that as well?

Jonathan Thatcher

And again, depending on -- we can actually increase the throughput in the existing footprint by moving few things, external that are internal to that design. Storage tanks et cetera that can be made as external and that same basic footprint because quite often, real estate in fracking operations near the well site is at a premium. And so there are ways to leverage and increase that and maintain pretty much the same footprint but increase up to about 15,000 to 20,000 barrels per day, unless there is unique technology required for that particular order.

Glenn Rink

Thanks, Jonathan. Adam, did you have the backend to that question that you were going to ask or the second question?

Adam Rund - LD Micro

Yeah. I have the second question, first of all, thank you for answering my first question to all. Are there any additional updates regarding waste management, essentially, what’s your position with waste management, particularly, in light of today's news?

Glenn Rink

I would say to you that waste management who we have met with very recently senior management regarding relationship and interest because as I mentioned in my opening statement, there's a couple of companies we’ve been in the billion dollar sector that we've been speaking to about stormwater public-sector statement and accelerating revenue and sales and being out there.

And waste managements got there some of its own infrastructure changes but they have consistently indicated the desire to move forward to be a part of the program. They restated that. But I will tell you at the end of the day, they are great company, they’ve done great things.

Unfortunately, hasn’t been very effective for Abtech today. We have higher hopes for that. But under this arrangement that we’ve announced today, we have the full capability with the team to move forward with or without waste management under that arrangement and if waste management has the desire to be involved in the servicing, back-end of the service and operation and maintenance type portion of this, that could be a distinct possibility.

But this relationship and as anybody would expect, we need to move the company forward. We need to move it forward fast and we need to show results. And if they can be part of that, I would welcome that. But, ultimately, time will only tell that we are prepared to go either direction. I hope that’s helpful.

Adam Rund - LD Micro

It is. Thank you.

Glenn Rink

You welcome.

Glenn Rink

I think, we can take one more question and I know we’re over the timeline, but I think we can squeeze another one and if that’s all right.

Operator

All right. We do have a final question from Sam Sunmonu from Chesapeake Advisory Group. Please go ahead with your question.

Glenn Rink

Thank you.

Sam Sunmonu - Chesapeake Advisory Group

Hey, Glenn. Thanks for having me. So, first, I want to say congrats on the recent announcements regarding Nassau and also Corvias. So just quickly I have two questions. First is, so how if necessary is all the R&D spending in the context of generating revenues? And then follow-up question, given the expansion of R&D expenditures and Abtech’s minimal revenues to date, has management given any thought to allocating more resources to sales to grow revenue?

Glenn Rink

Well, both very good questions and Jonathan, do you want to start on the R&D one.

Jonathan Thatcher

Yeah. Fair a bit of what is that Abtech categorizes as R&D is also collecting the data necessary to prevent -- present specifications of its technology to its customers, engineering specifications. And so when you hear about the testing, for example, in the oil and gas side, that's all data that goes directly to the business development side for use with customers in order to do engineered systems, in order to explain how the technology works and show its ability to treat produced water in the field.

There is a small couple initiatives that are more sort of what you would consider traditional R&D, one is on the manufacturing side and its consumes different -- slightly different manufacturing hardware that we would use, which would increase our throughput by ten-fold and our costs for the equipment to about 2% of the existing CapEx costs for manufacturing. That’s consume very little actual expense or cash to pursue.

The other significant one, let call that significant one, is the heavy metals and that’s primarily done using existing engineering staff and our cost to pursue things like that are primarily the third-party laboratory testing results that we do and then the cost to do field validations in that, those field validations all provide the information and engineering specifications and stuff that customers expect to see, when we being presented with the technology.

Sam Sunmonu - Chesapeake Advisory Group

That’s helpful.

Bjornulf White

Sam, I hope that was helpful.

Sam Sunmonu - Chesapeake Advisory Group

Yeah. That answered the first question.

Glenn Rink

And then the kind of overlaps, when you, lot, for example, oil and gas, where we would 10 more people out selling oil and gas right now, but without the data that Jonathan just described and without the information that regarding the spend material and the financing capabilities. It’s also strategically making sure all the stars are aligned. And so I can assure you that from a standpoint of -- we’re not still developing to develop to be able to sell truly its valid -- getting the data as Jonathan saying so that customize all the economics it needs to move forward. But I will let Bjornulf close that question out.

Bjornulf White

Yeah. Your second question was about allocating resources toward sales. And I think, the first thing I would say on that is realize that we could have an enormous sales for selling products but that’s really know how this market is structured and the move toward public-private partnership where a single contract contains the design and specifying of technologies, the coordination of integrating those technologies and then the ongoing operation and maintenance of those, really changes the sale structure anyway for this marketplace.

So while historically, Abtech was selling products and going and meeting with contractors and hoping that they would use their products. We've really completely change that model. And so the Corvias announcement this morning shows being new way to go to market and for us that’s allowing a large third-party that goes out and interfaces with municipalities to establish this P3 contract.

And our job in that situation then is to provide the engineering services and then, for the actual installation of systems to be the technology experts that provide our own native solutions and also third-party technologies that are complementary. So, we're really shifting to a model where third-party do the “selling” for us.

Bjornulf White

I hope that was helpful, Sam.

Sam Sunmonu - Chesapeake Advisory Group

Yeah. Got it. And just have a more follow-up questions. So, I guess, you could give some guidance on what R&D is second half of the year a also if any that can be delayed?

Bjornulf White

Jonathan. Jonathan, do we lose you?

Jonathan Thatcher

Sorry. Thank you. The bulk of the R&D costs that you see accrued in the first half. A good portion of that and Lane can help me out here, but probably, roughly half of those costs are related to the field trial that was done on the oil and gas, and that’s completed and won’t be continuing into the second half. I would not anticipate the R&D costs to continue at that level for the remainder of the year at all.

Sam Sunmonu - Chesapeake Advisory Group

Got it. Okay. Thanks.

Glenn Rink

Thank you. Thank you, Operator. Thank you everyone for joining us for today's call. Thank you for your time, your interest in our company. All of us at Abtech, we’re very thankful for everyone's patience and dedicated support, consistent dedicated support. We look forward to highly active second half of the year and we’ll keep all of you very closely appraise of the development as best as we can.

We are really looking forward to our next conference call where we can review our third quarter 2014 financial results in early November. In the meantime should you have any additional questions or comments or concerns please feel free to contact myself or Yvonne Zappulla at (212) 681-4108. And with I wish you enjoyable remainder of your day and the remainder of the summer. I hope that you have a good summer and I hope that we bring great excitement your life very soon. Thank you all.

Operator

Ladies and gentlemen, that does conclude today’s conference call. We do thank you for attending. You may now disconnect your telephone lines.

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