Good day, and welcome to the Tiffany & Company Fourth Quarter Conference Call. [Operator Instructions] On today's call will be Mr. Michael Kowalski, Tiffany's Chairman and Chief Executive Officer; Mr. James Fernandez, Tiffany's Executive Vice President and Chief Financial Officer; and Mr. Mark Aaron, Tiffany's Vice President of Investor Relations. I will now turn the call over to Mr. Aaron.
Thank you, everyone, for joining us on today's call to review Tiffany's fourth quarter and full year performance, as well as to elaborate on our plans and financial outlook for 2011.
Before continuing, please note Tiffany's Safe Harbor provision that statements made on this call that are not historical facts are forward-looking statements. Actual results might differ materially from the expectations projected in those forward-looking statements.
Additional information concerning risk factors that could cause actual results to differ materially is set forth in Tiffany's 2009 annual report on Form 10-K and in other reports filed with the Securities and Exchange Commission. The company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.
Now we can proceed. Tiffany performed strongly in 2010, and we presume you will agree with that assessment. It was a year in which we saw solid sales growth across most regions, with the strongest growth in the Europe and Asia-Pacific regions, leading to a sales mix where non-U.S. sales slightly exceeded U.S. sales in the year.
In 2010, we also achieved excellent gross margin gains and maintained prudent expense control, and net earnings increased 39% to $2.87 per diluted share. However, excluding non-recurring items, net earnings came in at $2.93 per diluted share, which was above the outlook of $2.83 to $2.88 that we provided when we reported holiday sales due to stronger-than-expected results in January.
For one additional perspective, note that EPS came in considerably higher than the initial outlook of $2.45 to $2.50 per diluted share that we provided a year ago, and our balance sheet remained very strong.
Let's begin by reviewing sales by region. In the Americas, sales rose 10% in the fourth quarter as an increase in the average price per unit sold was partly offset by a small decline in units due to lower silver jewelry sales. Comp store sales were up 8% on top of the 10% increase last year. Sales in the New York flagship store rose 2% in the fourth quarter, while brand store comps rose 9% due to generally broad-based increases as well as outside increases in Hawaii and Guam due to strong tourist spending.
For the full year, sales rose 12% in the Americas, representing 51% of worldwide sales, and increased 11% on a constant-exchange-rate basis due to comp growth of 8% on top of a 14% decline last year and the incremental sales from new stores. Just to remind you, Americas' comps by quarter rose 15%, 5% and 5% in the first, second and third quarters versus declines in the first three quarters of 2009 of 32%, 25% and 10%.
Full year sales in our New York flagship store rose 6% and represented 8% of worldwide sales. Americas' brand store comps rose 8%. You might be interested to know that outside of the New York flagship store, the five largest volume branch stores in the Americas in 2010 were in South Coast Plaza in Costa Mesa, California; San Francisco; Chicago; Bloor Street in Toronto; and Washington, D.C. In terms of customer mix, sales growth in the fourth quarter was driven more by local customer sales and, to a lesser degree, by foreign tourist sales.
Full year sales growth was skewed more towards foreign tourist spending, with local customer sales increasing to a smaller extent. Sales to foreign tourists in 2010 represented 17% of U.S. retail store sales versus 15% in 2009 and 16% in 2008. I should add that the 17% of U.S. sales made to foreign tourists are to a diverse mix of customers, with more than a quarter of those sales made to European tourists and a bit less than a quarter to Japanese visitors.
We finished 2010 with 84 U.S. stores, which included five new stores opened in the second half of the year in Baltimore, Maryland; Jacksonville, Florida; a second store in Houston, Texas in The Woodlands; and two additional stores in the Los Angeles market in the Beverly Center in L.A.; and in Santa Monica. We're pleased to report that they've all performed well in their initial months.
In the Americas, we also have 12 Tiffany stores spread among Canada, Mexico and Brazil. All three countries posted solid sales growth in the fourth quarter and full year, and we have some exciting store expansion plans.
Rounding out the Americas, our Tiffany's e-commerce and catalog sales, which rose 8% in both the fourth quarter and the year due to increased spending per order. We continue to believe that Tiffany's Internet presence and the increasing use of digital and mobile technology as well as catalogs, serve as effective sales vehicles and as important marketing tools to attract customers into our stores. We increased catalog circulation by about 10% to 14 million books in 2010 and intend to increase mailings by about 5% in 2011.
Let's now look at sales performance in the other half of our business. Our second largest region is Asia-Pacific, where business was strong all year. Sales in the fourth quarter were up 25% due to increased average price per unit sold, and jewelry unit volume also increased.
On a constant-exchange-rate basis, total sales in the quarter rose 21%, and comps rose 16% on top of a huge 24% comp increase last year. The strongest comps were in Hong Kong and Macau. Asia-Pacific comps in the first three quarters of 2010 had increased 21%, 7% and 11% compared with 2009 when comps declined 5% in the first quarter and then increased 5% and 9% in the second and third quarters.
For the full year, Asia-Pacific sales rose 29% and represented 18% of worldwide sales. Total sales in local currencies increased 23%, and comp store sales increased 14% on top of an 8% increase in 2009. Performance within the region was strong in most countries throughout the year, although sales growth was strongest in the Greater China market. In addition, Greater China represented slightly more than half of the Asia-Pacific region sales, while sales in Mainland China alone represented about 10% of the region.
You might be interested to know that the three highest volume stores in Asia-Pacific in 2010 were in Singapore's Ngee Ann City, in Australia in Sydney and in Hong Kong on Canton Road. At year end, we operated 52 Tiffany stores in Asia-Pacific, which included seven new stores opened in 2010, ranging from four new stores in China, one in Beijing, one in Kunming and two in Shanghai, to one each in Seoul, Singapore and Taipei. We also focused a considerable amount of marketing spending on China to build brand awareness in that increasingly important country. That growing awareness is not only resulting in increased customer purchasing in China but also an increased spending by Chinese tourists when they visit other countries in Asia-Pacific, the Americas and Europe.
The next region to review is Japan, which represented 18% of worldwide sales in 2010. Total sales rose 7% in 2010, but all of the increase was attributable to the translation effect from a stronger yen, which was 8% stronger than the prior year. On a constant-exchange-rate basis, total Japan sales in the year declined 1%, and comp store sales declined 4%. Sales in the fourth quarter rose 11% due to an increase in the average price per unit sold partly offset by lower units. We began to see improved results in Japan in the last several months of 2010. Specifically, local currency total sales in Japan rose 2% in the fourth quarter, and comps rose 1% versus a 9% decline last year. Comparable store sales in Japan, which turned positive in October, were also up in November and December then dipped in January but were then positive until the earthquake and tsunami on March 11.
Comps in Japan by quarter had declined 10%, 7% and 2% in the first, second and third quarters compared with prior-year declines of 13%, 11% and 13%. We opened one new department store boutique and closed two locations in 2010 as part of our long-term plan to address some underperforming locations and maintain strong profitability, and we operated 56 locations at year end.
We are saddened by the recent earthquake and tsunami, and our thoughts are with the people of Japan. We are pleased to report that all of our more than 700 Tiffany colleagues are safe. As noted in today's news release, most stores in the Kanto and Tohoku regions, which include Sendai and Tokyo, were closed last week but reopened over the past weekend. We have adjusted our financial expectations only for the first quarter based on assumptions of some continued business disruptions through the end of the quarter.
Now let's turn to Europe, which posted excellent results in the fourth quarter. Total European sales rose 14% in the fourth quarter due to increased unit volume. However, on the more meaningful constant-exchange-rate basis, total sales rose 21%, and comp store sales increased 16%, which was on top of a 14% increase last year, and resulted from strong growth in the U.K. and across most of the continent.
Sales growth was consistently strong throughout the fourth quarter. In the full year, European sales rose 18% and represented 12% of worldwide sales. In constant currencies, total sales in the year rose 23%, and comp store sales rose 18% due to solid growth in most markets. European comps were strong all year with increases of 14%, 21% and 24% in the first, second and third quarters on top of prior-year increases of 3%, 5% and 9%. We currently operate 29 Tiffany stores in Europe, including new stores we opened in the second half of 2010 in London's Canary Wharf and in Barcelona.
Retail store sales in the U.K. were about 45% of European retail store sales in 2010. The three highest volume European stores in 2010 were on London's Old Bond Street, and in Italy in Milan and Rome. We introduced e-commerce in eight continental European countries in mid-2010 and are very pleased with sales results and with the enhanced brand awareness that we derived from a stronger Internet presence.
So we finished 2010 operating 233 Tiffany stores versus 220 in the prior year. Worldwide gross square footage in 2010 rose 5% to slightly over 1 million square feet. We achieved higher sales productivity in all regions in 2010. Sales per gross square foot in the Americas rose to $2,100 in 2010 from $1,900, which included sales productivity of $5,400 per square foot in the New York flagship store. In Japan, sales productivity rose to $3,500 from $3,300. In Asia-Pacific, it increased to $4,000 from $3,800. And in Europe, it increased to $3,000 from $2,700. For the total company, sales per gross square foot rose to $2,600 from $2,400 in 2009.
And beyond our stores, worldwide e-commerce included in our four segments has become a meaningful contributor to our overall sales. In fact, total e-commerce sales represented 6% of worldwide sales in 2010 and 2009 and accounted for 8% of total sales in the countries where we have an Internet presence. We continue to believe that the percentage can move a bit higher in the future.
Rounding out the sales review is our Other segment in which sales declined 30% in the quarter and rose 2% in the year. This segment is largely composed of two pieces: wholesale sales of products to third parties who operate Tiffany stores, mostly in the emerging markets of Russia and the Middle East, as well as wholesale sales of diamonds acquired through our rough diamond sourcing program. The 30% decline in Other sales in the quarter was more than entirely due to lower wholesale sales of diamonds. The 2% increase in the year reflected an increase in emerging market sales, mostly offset by a decline in diamond sales.
One cannot fully review the year without highlighting some of our merchandising successes in 2010. We were pleased to see relatively broad-based sales growth across most product categories. Diamond engagement jewelry sales were strong. Fine and fashion gold jewelry, such as Tiffany’s Victoria collection, Celebration Rings and our Metro collection performed well, reflecting strength of higher-end transactions in diamonds, platinum and gold. We are very pleased with the introduction and success of the new and extraordinary yellow diamond collection, which we expect will be successful for many years, as well as Tiffany's new Garden jewelry collection.
Worldwide silver jewelry sales rose only modestly due to what we think is macro-related softness in the Americas. In fact, the weakness in silver jewelry sales in the U.S. was the reason that the under-$500 price strata declined in the U.S., while all of the higher price point strata rose. Our Keys Collection, which spans multiple materials and prices, remained very popular, and we added new styles as well, although overall growth was muted by comparison to the incredibly strong launch in 2009. The designer jewelry category did well, reflecting the success of Paloma Picasso's new Marrakesh collection and the ongoing popularity of Elsa Peretti's Diamonds by the Yard collection, among many others.
We are very pleased with the initial success of our new leather collection, and Tiffany brand watch sales grew more than 30% in our own stores. So that covers the sales review. I'll now turn the call over to Jim for a look at the rest of the earnings statement and specifically the components of stronger growth in the operating margin.
Thanks, Mark, and hello to all of you. We were pleased to deliver strong sales and earnings growth in 2010, while we also continued to invest in our business to achieve further and strong long-term performance. Tiffany's gross margin in the quarter was 60.9% compared with 58.7% last year. For the full year, gross margin increased 260 basis points to 59.1%. In both the quarter and year, the increased gross margins were primarily due to the recapture of two years of higher product costs through retail price increases early in 2010, as well as manufacturing efficiencies and sales leverage on fixed costs that are included in cost of sales.
Those fixed costs include distribution centers and our merchandising and diamond sourcing organizations. We also increased prices in January of 2011 in many categories to offset cost increases, but we expect a much more modest rate of gross margin improvement in 2011 that would be consistent with our long-term goals.
Selling, general and administrative expenses increased 12% in the fourth quarter and rose 13% in the full year. Much of the increase was due to higher staffing and occupancy costs, fixed and variable, in new and existing stores, but marketing spending also increased substantially as we had planned throughout the year. In fact, the marketing-to-sales ratio increased as we had expected from 5.9% in 2009 to 6.4% in 2010. SG&A growth also included $6.1 million in the quarter and $16.6 million in the year of non-recurring expenses related to the upcoming relocation of our New York headquarters staff.
Excluding the non-recurring expenses, SG&A expenses as a percentage of net sales were 35.1% in the quarter and 39.2% in the year, both of which represented improvement from 35.8% and 40.2% in 2009. Approximately 80% of our SG&A expenses are fixed in nature, so strong sales growth provides us with the ability to leverage those costs and further improve the expense ratio.
Adding this up, Tiffany's operating margin in the full year increased 300 basis points to 19.3% in 2010 and was 19.8% when excluding non-recurrent items. Other expenses net, which is primarily interest expense, declined modestly in both the fourth quarter and the full year. Tiffany's effective tax rate was 32.1% in the fourth quarter versus 34.2% last year. For the year, the rate came in at 32.7% due to some non-recurring items versus 31.9% last year, which had also included the recording of some favorable tax reserve adjustments. Bottom line, Tiffany's net earnings from continuing operations increased 31% in the fourth quarter and rose 39% to $368 million or $2.87 per diluted share in the year.
Excluding non-recurring items in 2010 and 2009, net earnings rose 47% in the year. We achieved an 18% return on average stockholders' equity and a 10% return on average assets, both of which achieved our performance objectives, and we are confident in our long-term ability to sustain strong returns.
Strong sales growth requires an efficient infrastructure behind the scenes to support that expansion, and most of you know that we have made substantial investments over the past decade, which continued to benefit us in 2010. Our internal manufacturing facilities produced approximately 60% of Tiffany merchandise sold. We've expanded our U.S.-based manufacturing operations into Lexington, Kentucky in temporary space and will soon open a 25,000 square-foot facility that will employ 125 skilled craftspeople and provide us with increased jewelry production capacity beyond the facilities we have in New York and Rhode Island.
Our two major distribution centers in New Jersey are also working very well, with one that is efficiently handling worldwide store replenishment and the other that processes direct-to-customer shipments. There is room for additional capacity utilization in both facilities, which will contribute to improved profitability. And our diamond sourcing organization is successfully operating globally to source and fulfill Tiffany's steadily increasing requirements for high quality diamond supply.
We finished the year with a strong balance sheet that positions us very well competitively. In fact, cash and short-term investments exceeded total debt. At January 31, 2011, cash and cash equivalents and short-term investments totaled $741 million versus $786 million at the prior year end. Short-term and long-term debt totaled $688 million at January 31 versus $754 million a year ago. During the year, we paid off $219 million of maturing long-term debt and entered into $118 million at issuance of new long-term debt in Japan at an attractive rate of 1.72%. Stockholders' equity rose to almost $2.2 billion at the end of 2010 from almost $1.9 billion a year ago. And that put the debt-to-equity ratio at 32% at year end versus 40% a year ago. And in 2010, Tiffany generated $172 million of free cash flow, which we define as cash flow from operating activities minus capital expenditures.
Reflecting that financial strength, Tiffany's Board of Directors increased the quarterly dividend twice in 2010 for a cumulative increase of 47%. The board also recently approved the new share repurchase plan to replace a plan that was set to expire, authorizing repurchases of up to $400 million through January of 2013. In 2010, we spent $81 million to repurchase 1.8 million shares at an average cost of $43.83 per share, with most of that spending occurring under the expiring plan. At January 31, $392 million remained available for future repurchases.
Net inventories increased 14% in 2010. That was comprised of a 9% increase in finished goods inventories and a 22% increase in raw material and work-in-process inventories to support sales growth, new stores, new product launches and higher product acquisition costs. Foreign currency translation was a small portion of the overall 14% inventory increase, and we intend to maintain very high inventory availability in our stores going forward.
For 2011, our plans call for net inventories to increase by more than 15% for several reasons: First, to support planned sales growth; second, for new store openings; third, for additional investments in high-end statement jewelry; and fourth, to further increase purchases of rough diamonds as we pursue our vertical integration strategy that provides supply and related cost benefits.
Accounts receivable rose 17% in 2010 with about five points of the increase due to foreign currency translation. Receivables turnover stayed at a healthy 18x per year. Capital expenditures in 2010 came in at $127 million or 4.1% of net sales, which was up from depressed spending of $75 million in 2009 when we cut back on all nonessential spending. However, CapEx in 2010 was lower than our initial projection of $200 million, mostly due to delayed spending on certain projects, especially on the New York relocation that will be incurred in 2011. Therefore, we expect capital expenditures of approximately $250 million to $275 million in 2011, which would represent 7% to 8% of total sales and is relative to our long-term projected CapEx of 6% to 7% of sales.
We are now providing you with our first outlook for 2011. Now let's look at the components of our annual sales and earnings guidance for 2011. I should begin by pointing out that the financial projections for the year that we are sharing with you today incorporate some effect in the first quarter from the devastating events in Japan on March 11. Specifically, we are projecting worldwide net sales to increase 12% to 14% in 2011.
Looking at it by geographic region, we are looking for sales in the Americas to increase by a low double-digit percentage with comps up high single digits and combined Internet and catalog sales in the Americas also increasing by a high single-digit percentage. We expect sales in Asia-Pacific to increase by at least 20% in dollars, with local currency comps increasing by a mid-teens percentage. In Japan, we are projecting total and comp store sales to decline by a mid-single digit percentage for the year in dollars and yen, factoring in the current events in Japan that are affecting our first quarter sales there. And in Europe, we expect sales to increase by more than 20% in dollars, with local currency comps increasing by a low double-digit percentage.
In addition, we are projecting Other sales to increase by more than 30% due to strong growth in wholesale sales to distributors, primarily in the emerging markets of Russia and the Middle East, while we expect only a modest increase in wholesale sales of diamonds. We are not looking for any significant differences in total sales growth by quarter except for slightly stronger growth in the second quarter as we consider the year-over-year comparisons. In addition, these sales projections assume no meaningful changes in foreign currency rates versus the U.S. dollar from the rates at the start of the year.
Moving down the earnings statement, we are looking for gross margin to increase by a couple of tenths of a point. We have addressed higher product costs with recent retail price increases in many product categories, and there could be other increases later in the year as well, if necessary. We cannot identify any meaningful resistance to the price increases in that customers are knowledgeable of higher costs and understand the need for us to address it. Other jewelers have also been affected by higher costs, and we assume they are also increasing their prices, so Tiffany's competitive position remains strong.
We are also looking for SG&A expenses to increase about 12% to 13% in total 2011. This excludes non-recurring items related to the upcoming New York headquarters staff relocation. These items specifically relate to incremental rental costs and accelerated depreciation on fixed assets, as well as a charge associated with the non-cancelable obligations remaining under the existing leases, which are expected to total about $40 million or $0.19 per diluted share after-tax, with most of the charge being recorded in the second quarter when we relocate.
SG&A expense growth also reflects marketing spending that will increase somewhat faster than sales growth, so that the marketing to sales ratio continues to move higher. With the sales growth that we are projecting, this should result in a few tenths of a point improvement in the expense ratio excluding non-recurring items, and this would take the operating margin to just above 20% when excluding non-recurring items.
We are projecting other expenses net, which is primarily interest expense, to be relatively unchanged at about $46 million for the year. We expect Tiffany's effective tax rate to come in at about 34% for the full year. Therefore, we are now projecting net earnings, excluding non-recurring items, to increase 14% to 18%, and earnings per diluted share increasing to a range of $3.35 to $3.45 per share.
As you know, we typically do not provide guidance on a quarterly basis but will do so for this first quarter in light of the significant events in Japan. As such, we expect that first quarter earnings per diluted share, excluding non-recurring items, will be reduced by approximately $0.05 per share from our initial expectation of $0.62 per diluted share to approximately $0.57 per diluted share versus $0.48 per share in last year's first quarter excluding non-recurring items. We cannot provide any forecast for Japan for subsequent quarters, so our expectation for the second, third and fourth quarter continues to call for sales roughly equal to the prior year in Japan.
Lastly, we are assuming that the share count will be roughly unchanged at about 128 million shares as share repurchases offset the effect of option exercises. We believe that Tiffany has the necessary ingredients to achieve solid performance in 2011, and now I'm pleased to turn the call over to Mike.
Thanks, Jim. At the risk of repeating what's already been said, Tiffany truly prospered in 2010, achieving strong and better-than-expected sales and earnings growth. Our business began to strengthen in the latter part of 2009, and the rebound gained momentum during 2010. We're immensely proud of the accomplishments of the more than 9,000 Tiffany employees who are responsible for that success. Our results clearly demonstrate the power of a global expansion program that has provided a platform for robust and sustainable growth as an international luxury brand. In 2010, we expanded our store base, increased our e-commerce reach and communicated Tiffany's message across an ever wider global audience.
For the first time, worldwide sales are now essentially equally divided between the United States and the rest of the world. With 233 company-operated stores in 22 countries along with independently operated locations in additional 30 countries, we have a solid base of distribution to serve increasing numbers of global customers, and that base will continue to grow.
Specifically, in 2011, we are planning to open 21 stores. This will include eight stores in the Americas, with plans for four United States stores. We've already announced Northbrook, Illinois and Richmond, Virginia; three in Canada, in Calgary and two additional cities; and we hope to finalize plans for a store in Brasilia to expand our growing presence in the important market of Brazil. We are planning to open eight stores in Asia-Pacific, including four stores in China, three in Korea and one in Taiwan. And we are planning five stores in Europe, including both the Zürich and Frankfurt Airports, along with additional stores in France and Italy. In total, this will represent a 9% increase in the number of company-operated locations and a 5% increase in square footage.
We also expect to derive continuing sales benefits from Tiffany's expanded Internet presence. This will enable us to reach customers who appreciate e-commerce convenience, whether they live far or near to our store, recognizing, however, that no online experience, however extraordinary, can replicate the outstanding Tiffany in-store experience.
In addition, we believe there's important growth potential in emerging markets like the Middle East and in Russia where Tiffany's distribution is currently managed through third parties. Our total wholesale sales of products in those markets and other markets in 2010 represented only 3% of worldwide sales, and we believe there is much untapped growth potential. And we hope to soon finalize plans for Tiffany to enter India.
We have a very full pipeline of exciting new designs for 2011 in a full range of materials and price points. A few highlights include our new collection of locks, pendants and bracelets executed in silver, gold and platinum, with prices ranging from $100 to $10,000. We are also excited that this year, Elsa Peretti is reintroducing and expanding her bottle collection, an iconic pendant design that dates back more than 30 years. We are also looking forward to an important new collection from Paloma Picasso. There will, of course, be many, many additional new jewelry designs introduced in 2011. There will also be expanded assortments in personal accessories, building on the successful launch of our handbag collection, as well as in sunglasses.
Regarding watches, while sales in Tiffany's own stores have been strong, we have been disappointed with the slower-than-expected rollout of wholesale watch distribution. As we have indicated for some time, while over the short to medium term, the expected contribution to sales and earnings from watches is minimal. Over the long term, we remain hopeful about the ultimate potential of the Watch business. We are also hopeful that our differences with our watch partner can be resolved collaboratively and professionally.
Finally, we continue to look to grow our high-end Statement business by strengthening and strategically redeploying our inventory assortment with a special emphasis on taking maximum advantage of the newly completed jewel salon in our flagship store as a global destination for the most spectacularly crafted jewelry in the world.
Regarding margins, Tiffany and the entire jewelry industry are continuing to deal with higher product input costs for precious metals and diamonds. However, we have successfully increased retail prices to offset those costs, and we believe that the combination of Tiffany's pricing power and strong competitive position will allow us to do so, if necessary, again in the future.
Our marketing communications will reach a growing base of potential customers around the world through print media and various forms of electronic communication, and we are beginning to formulate our plan to commemorate in 2012 the 175th anniversary of Tiffany's founding in 1837. We continue to monitor the events in Japan and the continued safety of our more than 700 employees and their families there. Our thoughts are with all of the people of Japan.
On a worldwide basis, I believe we have planned our business prudently for all of 2011 with a healthy rate of store expansion into attractive new markets and underserved existing markets and with a rate of spending to support that growth and further invest in strengthening Tiffany's worldwide competitive position. And of course, given our organization and financial strength, we will maintain our long-term strategic focus of continuing to build upon the foundation of one of the world's great brands.
Lastly, we are excited about relocating our New York headquarters staff in the coming months to a location at Fifth Avenue and 23rd Street. As we previously said, it will provide organizational efficiencies with substantial long-term cost savings. We look forward to welcoming many of you there.
Thank you for listening to our review of 2010 and our plans for 2011. We look forward to updating you on the progress throughout the year. Please note on your calendars that we expect to report Tiffany's first quarter results on Thursday, May 26. Please feel free to call Mark with any questions. That concludes today's call. Thank you for your ongoing interest.
A replay of today's call will be available starting today, March 21 at 10:30 a.m. Eastern Standard Time through March 27 at 11:30 p.m. Eastern Standard Time. You may dial in to (719) 457-0820 or (888) 203-1112 and reference the pass code 3527907. This does conclude today's conference. You may now disconnect. Thank you.
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