Consolidated Graphics Inc. F4Q08 (Qtr End 03/31/08) Earnings Call Transcript

Consolidated Graphics Inc. (CGX)

F4Q08 (Qtr End 03/29/08) Earnings Call

May 7, 2008 11:00 am ET

Executives

Alex Tramont - Financial Dynamics, IR

Joe Davis - Chairman, CEO

Jon Biro - EVP, CFO

Analysts

Charles Strauzer - CJS Securities

Piyush Sharma - Longbow Research

Jaime Clement - Sidoti & Company

Matt Troy - Citigroup

Presentation

Operator

Good day, ladies and gentlemen, and welcome to the CGX fourth quarter fiscal year 2008 conference call. My name is Erica and I will be your coordinator for today. (Operator Instructions). I would now like to turn the call over to Alex Tramont from FD. Please proceed.

Alex Tramont

Thank you and good morning. Welcome to the Consolidated Graphics conference call. During the call management will discuss the company's results for the fourth quarter and year ended March 31, 2008. You may receive a copy of today's press release by calling FD at 212-850-5600 or by visiting Consolidated Graphic's website. The conference is being broadcast live on the Internet at www.cgx.com and a subsequent archive will be made available.

Before we begin I would like to remind everyone that remarks made by management during the course of this morning's call contain forward-looking statements which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from results, performance or other expectations expressed or implied by these forward-looking statements. Consolidated Graphics' expectations regarding future sales and profitability assume, among other things, stability of the economy and reasonable growth and demand for its products, the continued availability of raw materials at affordable prices, retention of its key management and operating personnel, satisfactory labor relations, as well as other factors detailed in Consolidated Graphics' filings with the Securities and Exchange Commission. Forward-looking statement assumptions or factors stated or referred to on this call are based on information available to Consolidated Graphics as of today. Consolidated Graphics expressly disclaims any duty to provide updates to these forward-looking statements, assumptions, or other factors after the date of this call to reflect the occurrence of events, circumstances, or changes in expectations. In addition, during the course of this call, management of the company will reference certain non-GAAP financial performance measures. Management's opinion regarding the usefulness of such measures together with the reconciliation of such measures for the most directly comparable GAAP measures for historical periods are included in the company's earlier filing today with the Securities and Exchange Commission.

Now with these formalities out of the way, I would like to turn the call over to Joe Davis, Chairman and Chief Executive Officer. Joe, you may begin.

Joe Davis

Thank you and good morning. With me on the call today is Jon Biro, Executive Vice President and Chief Financial Officer. This morning we released fourth quarter and full year 2008 financial results. Our results for the March quarter include revenue of $287.5 million, up 9% compared to $263.9 million for the same quarter a year ago. The growth in sales was primarily attributable to acquisitions, growth in strategic sales which consist of national and CGXSolutions sales and some election related printing, which will continue to ramp up as the year progresses. Revenue for the full year 2008 was up 9% to a record $1.1 billion. Acquisitions and strategic sales were the primary contributors to these record revenues and earnings.

Acquisitions continue to be a meaningful contributor to our growth strategy. As you know we acquired three first-class companies this year, including the Cyril-Scott Company, PBM Graphics, and Pikes Peak Lithographing Company. Cyril-Scott's 16 inline webs have added unique and formidable, and in some instances patented, capabilities including direct mail to our company. While these webs are capable of producing customized collateral. That is backup, folded, glued, and personalized inline and ready to be deposited into the mail stream straight off the press.

The PBM Graphics acquisition is our largest to date. It makes us one of the largest producers of collectible trading cards and trading card games in the world. And also provides us with additional web capacity.

The Pike's Peak acquisition further enhanced our large format offerings, particularly on the West Coast. All of these acquisitions are broadening our service offering and adding value to the entire CGX network. We continue to evaluate acquisition candidates and have an active pipeline of over $500 million in annual revenues.

In 2008 we combined national sales and CGXSolutions into one group, the Strategic Sales team. We did this because our large national customers need more than just printing. They need the ability to personalize printing materials for different markets and individual consumers, and have the materials distributed throughout the US. The Strategic Sales team is focused on providing these customers the one-source solutions they require. By combining national sales and CGXSolutions we now have more opportunities to present all of our capabilities, including our best in class technology solutions to large customers.

Our Strategic Sales grew 28% over the prior year to $196.1 million for 2008. These Strategic Sales now represent 18% of our overall revenues compared to 15% last year. We believe this offering is a key differentiator for Consolidated Graphics that is helping us gain market share. We expect Strategic Sales to continue to grow. We are supporting the Strategic Sales team through our continued investment in new products.

In 2008 CGXSolutions will introduce a significant upgrade to StoreFront, our web based print procurement application. StoreFront allows our customers to access a website to order print materials designed for their business. With this upgrade the customer will also be able to use StoreFront to access a mailing list customized to their marketing goals, personalize a print collateral for the market, place the order and electronically forward this information to one of our facilities for printing and distribution. This new technology will help reduce customer's time to market and better meet their needs. Our technology and extensive geographic footprint will also provide opportunities for us to increase sales of digital print. Demand for digital printing will continue to grow at a healthy pace as customer's demand for personalized products also grows.

In 2008 we spent $21.5 million on digital presses and related technology to meet the increasing demand for digital printing. We now have 164 digital presses throughout the United States which we believe is one of the largest, if not the largest fleet of its type in the industry. With our nationwide digital footprint we can offer customers the option of printing their job near the ultimate destination of the printing materials, saving them time and money. And with our technology, our customers know that the printing materials will be consistent and high quality regardless of where the materials are printed.

For the fourth quarter and the full year our internal sales excluding election business were down slightly less than 1%, but overall pretty much inline with our projections. With election business, same store sales were up 1.1% for the quarter. Our growth in the Strategic Sales have for the most part offset the decline in sales to local customers, which we believe is being impacted perhaps by overall economic conditions. This decline in sales to local customers may indicate a downturn in the economy, while we cannot predict what the economy will do in the coming months, we do believe we have several competitive advantages during times of an economic slowdown.

First; the development of our Strategic Sales platform differentiates us in the market and allows us to mitigate some of the volatility associated with the cycle of our regular local business. With our nationwide footprint 70 companies in 27 states and Canada, our wide variety of capabilities, including our technology solutions, we can become a more cost effective and value added one-source solution for many customers.

Second; because we are strong financially, we would be able to maintain our high levels of quality, reliability, and customer service, allowing us to weather economic difficulties better than our weaker competitors and potentially take share from or purchase some of these companies.

Third; we will also continue to make investments in equipment and technology to meet the ever-increasing demands of our customers and continue positioning our business for the long-term. These attributes position us well in all conditions to continue to support our long-term business growth.

In fiscal 2007, we introduced Inspire our coated private label paper program available to all Consolidated Graphics customers. Inspire has achieved significant customer adoption due to its availability, consistency, and overall quality. Leveraging our economic strength and purchasing power has enabled us to deliver a product with exceptional value across our industry-leading footprint. Inspire has quickly become our most popular paper and continues to deliver excellent results.

In order to meet the growing demand for environmental solutions, we have introduced Inspire Earth to our already successful Inspire paper program. Inspire Earth features the same overall quality characteristics of Inspire. Inspire Earth is also Forest Stewardship Council certified, the global benchmark for responsible forest management, and importantly contains 10% post consumer waste content. We recognize environmental stewardship as a vital part of our business and are committed to extending this value to our customers.

In the fourth quarter, gross margin declined from 26.7% last year to 25.4% in 2008, primarily due to the effect of the 2008 acquisitions that currently generate lower gross margin relative to the rest of our companies, as well as higher expenses relating to start-up costs associated with our digital print business. Lower selling expenses as a percentage of revenue partially offset the effect of the gross margin drop, resulting in a decline in operating margin to 8.7%, compared to 9.4% excluding the goodwill impairment last year. Also, we've mentioned that the other expense of $845,000 related to a currency loss and reduced operating margins in the fourth quarter by three tenths of a percent. So without the currency loss we would have been at 9% versus 9.4% in the prior year.

Earnings per fully diluted share for the quarter were $1.15 compared to $1.06 excluding the goodwill impairment last year. For the full year diluted earnings per share were $4.63 versus $3.65 for '07. '07 results included a goodwill impairment charge of $11.5 million and excluding that charge earnings would have been $4.21 per fully diluted share. We continue to keep our own costs, mostly monitoring our labor situation and using our growing purchasing power to negotiate favorable purchasing agreements.

In summary 2008 was a strong year for Consolidated Graphics in which we continue to grow our business and invest in assets that will serve to enhance our customer offering and shareholder value over the long-term. For the 15 months ended March 31, I would like to remind you that we've acquired businesses that generate over $320 million per year in revenue and repurchased 20% of our shares outstanding. No small accomplishment. Even with these purchases, our debt to EBITDA remains at a comfortable 2.3 to 1. We believe we have the financial strength to continue making acquisitions and investments at different chains across in the marketplace and position us well for the future.

I will now turn the call over to Jon Biro, who will provide you with additional financial information. Jon?

Jon Biro

Thank you Joe, and good morning. As a reminder, earlier this morning we filed with the Securities and Exchange Commission the basis for our use and reconciliations of certain non-GAAP financial measure including adjusted operating margins, EBITDA, EBITDA margin, and free cash flow. Please refer to this filing for additional information.

We have a very strong balance sheet and have substantial capacity to make the necessary investments in equipment and technology to pursue our business goals and continue to make acquisitions. The increase in debt during the quarter is attributable to the stock repurchases and the acquisition of PBM Graphics. At March 31, 2008, our total debt outstanding was $385.7 million, consisting of $271.9 million of floating rate bank debt bearing interest at 4.1% on average and $113.8 million of principally fixed rate debt bearing interest at 5.6% on average.

Capital expenditures in the March quarter were $28.4 million bringing our total investment in new technology, equipment, and real estate in 2008 to $82.4 million for the year. We currently expect 2009 capital expenditures to be between $65 million and $75 million. Looking forward to the June quarter we expect revenue to grow year-over-year, primarily from acquisitions, more election related business and growth in Strategic Sales. These revenue increases will likely be partially offset by declines in sales to local customers. Revenue in our fiscal first quarter is expected to be between $300 million and $310 million. Diluted earnings per share should be between $1.10 and $1.20 per fully diluted share.

For the June quarter, we project interest expense at approximately $4 million and an effective tax rate of around 38%. Our range of earnings estimates reflects an assumed same store sales decline during the June quarter of between 0% and 2%. Last we are using a weighted average of 11.4 million fully diluted shares outstanding in our projections.

One last comment regarding the 2008 earnings; on the other income and expense line on the face of the income statement you will notice we incurred a loss of $845,000 for the fourth quarter and a $3.1 million gain for the year. These amounts were primarily due to US dollar denominated bank debt held by our Canadian subsidiary. In March, we effectively hedged this currency exposure and therefore you should not expect gains or losses of this magnitude going forward.

I will now turn the call back over to Mr. Davis.

Joe Davis

Thank you Jon. Operator, Erica we are now available for any questions.

Question-and-Answer Session

Operator

(Operator Instructions). Our first question comes from the line of Charles Strauzer from CJS Securities. Please proceed.

Charles Strauzer - CJS Securities

Hi. Good morning, Joe and Jon. How are you?

Joe Davis

Good morning.

Jon Biro

Good.

Charles Strauzer - CJS Securities

Couple quick questions for you, when you look at first of all the guidance in Q1, can you give us a little bit more flavor of kind of the organic assumptions in there? You said that sales to local are probably going to be down. Is that kind of similar to what we just saw in Q4?

Joe Davis

Well, I guess when you're in the economy that we're in today and I have a habit of watching CNBC every day, you're pretty concerned about the economy. So, I think do anything different than projecting a decline in same store sales is not very smart. So, we would certainly hope not to have a decline in same store sales just like we didn't have a decline in same store sales in the March quarter, but we did give a range that would anticipate down 2% to flat, same store sales.

Charles Strauzer - CJS Securities

Got it. And then you basically have the elections to kind of offset that in the interim as well.

Joe Davis

Could have some benefit to that, most likely.

Charles Strauzer - CJS Securities

Okay. And then can you give me a little sense of the seasonality of the PBM business that you just bought, and maybe a little bit better flavor on the margins there?

Joe Davis

Well, certainly our acquired companies PBM, Cyril-Scott, Pikes Peak to some degree shouldn't have lower margins than we have overall in the company initially. So, we would expect those margins, certainly we hope that they would improve over time, bring some things to the table that we think will assist in bringing them up. In addition to that, seasonality, particularly at like Cyril-Scott, this is rather slow time of the year, offset a little bit by PBM, it's a little more aggressive this time of the year. So, we're doing some things particularly at Cyril-Scott, we've got some new management there, been a lot of demand for inter company sales, salesman, person in California is booking business that will be produced at Cyril-Scott in Lancaster, Ohio. So, we are pretty optimistic about the potential for that, but don't have too much of that in our projections.

Charles Strauzer - CJS Securities

Got it. And then I would assume that PBM, kind of the back half of the year around the Christmas time season with collectible cards probably gets a little pick-up then too?

Joe Davis

They should be pretty strong in the first quarter.

Charles Strauzer - CJS Securities

That's first quarter's usually the best quarter. Got it. Okay. Great. And then lastly the CapEx $65 million to $70 million this year, what's the bulk of that being spent on? More digital press initiatives? Is that really where the bulk of the money is going?

Joe Davis

I think that probably hindsight would have added a little more flavor to that. A lot of that is expansion CapEx. We increased our number of digital presses tremendously over the last year. It's a new business for us. We have increased demand from our customers for us to do things like put in plant installations in various of some manufacturing facilities for instance. And we have one large customer who has a growing digital business that we're servicing. So all of these things together, we don't have this quite finalized yet, but I would not be surprised if expansion CapEx hit in 40% to 50% of the total 2009 CapEx.

Charles Strauzer - CJS Securities

Great. Thank you very much, Joe.

Joe Davis

Thank you.

Operator

Our next question comes from the line of Piyush Sharma from Longbow Research. Please proceed.

Piyush Sharma - Longbow Research

Good morning, guys.

Joe Davis

Good morning.

Piyush Sharma - Longbow Research

Firstly, if you look at your current pipeline, will you be able to characterize how many potential targets you see in the $100 million plus range?

Joe Davis

Would you repeat that question, Piyush?

Piyush Sharma - Longbow Research

Yes, Joe. I was just asking if I look at your $500 million of pipeline there, how many potential targets are you seeing out there that are in the $100 million plus range? Something like PBM.

Joe Davis

Right. Well, as you know, our average company today is (inaudible). And we publicly state that we look at all the types of companies, some from potential tuck-ins and some for expansion of market, lots of reasons. We typically, as a standalone company, unless there are some unusual characteristics, are not really going too aggressively after a $10 million and below company. On the other hand, there are more smaller companies in the universe than there are larger companies. So in that over $500 million of revenue includes, maybe as much as one or -- I say over $500 million too, I didn't say $500 million. Maybe as much as one or two larger ones, as well as a number of smaller ones.

Piyush Sharma - Longbow Research

Okay. And then on elections, do you still see revenues up 50% with the last cycle?

Joe Davis

Right.

Piyush Sharma - Longbow Research

Okay. And would it be possible for you to quantify, maybe give a range, the extent of which variable data is cannibalizing other business?

Joe Davis

Well, in our case, I think I've given some unusual example before, where we have one customer that used to print in the health insurance business, printed a book for medical insurance, a book for dental insurance, life insurance, and disability. They had four books. Now, they've gotten a lot smarter and a lot more customer friendly, in printing that personalized with one book, giving all of the data in one situation. Now on the surface, that would appear that while you were printing four books before and now you're only doing one. Well, that would be an incorrect conclusion. So if we might not have been printing those four books before. So we have a distinct advantage in that, we have the technology to enable them to have a better, more personalized offering to their customers, getting all the business today where we weren't -- might not have been getting any of the four books. So, maybe it's taking market share from other printers.

Piyush Sharma - Longbow Research

Okay. And Jon had mentioned, I think I missed that, the share account guidance for fiscal first quarter?

Jon Biro

$11.4 million for the quarter.

Piyush Sharma - Longbow Research

Okay. Thank you, guys. That's all I have.

Joe Davis

Yeah, we have a fairly low share account compared to the (inaudible).

Piyush Sharma

Okay. Thanks.

Joe Davis

Thank you.

Operator

Our next question comes from the line of Jaime Clement from Sidoti. Please proceed.

Jaime Clement - Sidoti

Joe, Jon, good morning.

Joe Davis

Good morning.

Jon Biro

Good morning.

Jaime Clement - Sidoti

Joe, I'm just curious what your thoughts are on just kind of your competition across the country, just from a local market perspective? I mean, do you have a sense at least, at the very least anecdotally, that some of your competitors in local markets are struggling a bit these days?

Joe Davis

Well, I think if you look at the printing industry landscape, certainly I guess a number two company in size in the world just filed Chapter 11 a few months ago. Just announced last week, they're closing a 700 employee plant in the East Coast -- Connecticut, I think. So, that has some impact on everybody, no question about that.

Jaime Clement - Sidoti

Okay.

Joe Davis

But the local market, certainly the companies who have failed to invest in technology, who have something like CGXSolutions, and quite frankly, none of them have anything like that. They have off-the-shelf software, one-size-fits-all. We don't approach our customers with one-size-fits-all. We customize the solution to fit their needs. That gives us a real distinct advantage in the marketplace.

Jaime Clement - Sidoti

The follow-up question there is, in past times, when conditions have gotten tough, if there's little bit of a falloff in volume, like a lot of times in the local markets you see pricing pressure pickup, etcetera, etcetera. But, what I'm wondering is if you look at sort of your industry over the last ten years and the technological changes that have happened, I'm wondering if in fact, the local guys out there are struggling? Whether the next couple of quarters, if economic conditions are little choppy, if this might be a time when you can actually pick up some new customers for good?

Joe Davis

Well, certainly there's some economic choppiness. We've seen some of that in the local markets, but I'd say certainly nothing to the extent of 2001 to 2002 era. So, we're looking at some kind of workout situations now? But not to the extent we've had before.

Jaime Clement - Sidoti

Okay. And the last question and I'll get back in the queue. PBM's business obviously, they're known for some of the game cards business, and you all mentioned Pokemon and that sort of thing. How much of their business, what percentage terms, is that kind of work versus what's a little -- what I'd view as more of just a traditional commercial printing company?

Joe Davis

I would say it's a large percentage of their business. Well they're pretty good at it.

Jaime Clement - Sidoti

Okay. Thank you very much for your time.

Operator

(Operator Instruction). Our next question comes from the line of Matt Troy from Citigroup. Please proceed.

Matt Troy - Citigroup

Yes, thanks. I guess with the near-term focus on the cyclical dampening in the business, I was wondering if I could get your longer-term view? I guess the benefit or opportunity in times like this is that, you take a look at the business, perhaps a harder look than you do in better times, and identify areas for improvement. I was wondering if you could just give us two, three, four year view in terms of what your learning's have been in this most recent pocket of softness? And where you see the biggest opportunity to potentially optimize your cost, be it in sourcing, be it in optimizing the network? Just curious if you see yourselves coming out on the better end of this a leaner franchise and one of the one or two things that you really can focus on to improve that?

Joe Davis

Certainly as we look out two, three, four years, we see an increasing demand for personalization and customized products. And we see that as an increasing -- ever increasing growing part of our business. We also see large companies who like what we have to offer. And when you look at companies certainly there's one company that's the largest company in the world had more locations than we do. But, we're not talking about -- we don't print telephone books and some of that kind of stuff.

But of the kind of stuff we do, we have 70 locations, strategically located around the United States and one in Canada. And the kind of stuff that large companies are purchasing, we are in the best position to service them than anybody else. Even the large company only has 16, 17 locations that compete with us. Nobody else has even half the locations that we have. And that's a very, very important thing that we offer to service large national companies.

So as we look out, we think that we are going to be able to capitalize on the desire of national companies to concentrate and control their print spend. And we think we're in a great position to utilize that. And we combine that with our digital offering and our CGXSolution offering, we think we're going to see continued growth in that area. And the acquisitions will continue also to be an important part of our growth strategy.

Matt Troy - Citigroup

Okay. Returning, I guess to the nearer term, I was just interested in your commentary. Obviously with the network you have, it's difficult to get an all in read. But I was curious if you could give us a sense, January, February, March, April, was there any sense of linearity in terms of the broader demand environment, or was it pretty choppy and inconsistent throughout? Just trying to get a sense if things are feeling better, worse, or the same now that we're almost into the middle of the second quarter?

Joe Davis

Actually, I think I've told you before, I was in New York in January and the doom and gloom up there frightened me. January 10 or so, I was absolutely frightened by it. I had an analyst meeting from 7:15 AM to 3:15 PM and I got in the automobile, got on the telephone and talked to all my people. The world hasn't changed, everybody was telling me it's the world has changed, the world has been unchanged. Our January was better than the prior January. February was pretty decent. March was pretty good. So, we haven't, except in certain isolated industries, certainly if you service in the mortgage business or some company has something adverse happening to them, it's been negative. But our business generally has been pretty darn good. And we're not seeing a fallout that you're seeing on the financial markets at Wall Street. I hope that answers that.

Matt Troy - Citigroup

It does. Thank you very much.

Joe Davis

The other thing you asked about, how do we optimize costs in our sources?

Matt Troy - Citigroup

Right.

Joe Davis

I think the Inspire program, what we have private label is a good example of that. I mean sure, no question. You come to the types of things we buy, paper being a large one, ink, digital equipment, on and on, we are the largest purchaser of that type of thing in the country today. So we would expect to get some benefit out of that. But when we're dealing with a supplier, they can deal with one person, our purchasing people here in Houston, and they can get a lot of business, rather than running all over the country with a lot of sales costs and taking a lot of credit risk, a lot of service problems, and a lot of implementation problems. We know how to do that. We expect to get some economic benefit out of what we bring to the table.

Matt Troy

Excellent. Thank you.

Operator

We have a follow-up question from the line of Charles Strauzer from CJS Securities. Please proceed.

Charles Strauzer - CJS Securities

Hey, Joe. Just one quick follow-up on the M&A pipeline. Obviously, it's been reloaded to kind of where it was prior to PBM and I think, is that purely indicative of more people coming to the table, given the economic choppiness, people saying you know what, I don't want to have to remortgage the business and go underwater again here. It's in the valuations, I'm afraid, maybe it'll slip again. A, is that really what you've seen there and B, are the valuations kind of holding up and so you're four to five times EBITDA range?

Joe Davis

I think it's a number of things. One, I would certainly think that some owners of some companies also watch CNBC and they're a little scared, quite frankly. Some owners of companies are getting a little older; they're not getting any younger. And some say, I've got a great thing here, all of my eggs are in one basket. I need some asset diversification. So, we're seeing people come to us for a number of different reasons.

Another reason we have in our favor is, we have a great reputation with company owners, prior company owners. We give references. We have people -- if you'd like to know how we operate, call the guys we purchased in the past. Talk to them. See how it works. We like to help people who want to stay on and work with us for a few years. Maybe they want to work five years, maybe they want to work ten, maybe they want to work 20. But that's our preferred model. So, does that really work? Well, why don't you go talk to Ben Keys, the Keys Printing in Greenville, South Carolina? See how it worked for Ben. Ben is now retired. He's well known in the industry.

So, a lot of people check us out, but we have a great reputation in the industry. And if people who really care about their companies, are not interested in some big company coming in and shutting them down. They're interested in continuing to grow -- their legacy growing, and we've got a lot of examples where we've been able to achieve that.

Charles Strauzer - CJS Securities

Got it. And then just lastly just on valuations that you're still seeing valuations kind of holding up? Are they coming in a little bit more towards your, the lower end of your ranges there?

Joe Davis

Well, we've always said for financial purposes, for discussions with the financial community, that when we purchase companies, we pay between four and five times actual trailing EBITDA, and that's our model. Now having said that, we don't just take a set of financial statements and plug that number in and give you a number --give our people a number. We want to study the company. We want to look at the prospects of that company. We want to look at the quality of its customers, the quality of its employees, the quality of its management. And is there anything that we think we can do to assist that company to grow going forward? We don't just use financial statements to come up with a price. We like to meet the people, understand the people, understand where that company is going long-term.

Charles Strauzer - CJS Securities

Excellent. Thanks, Joe.

Operator

There are no further questions. I would now like to turn the call back over to management for closing remarks.

Joe Davis

I would perhaps like to add one thing to the last answer, I gave to Jaime. Another thing that we look for in companies is will the management of that company fit within our culture? Our culture is one of getting results, managing the business, servicing the customer, providing greater service to customers. And if that culture is not going to fit, then we're probably not too interested. And we believe in retaining customers over a long period of time, and growing and developing customers. Most of our customers, 95% of our customers are repeat customers. We want to grow that customer base. So, we don't lose many accounts, and that's the kind of company that we're very interested in.

Okay. No other questions. I certainly appreciate our continued support from our good customers, our hard-working, dedicated employees, and our shareholders. We look very much forward to reporting to you on our June quarter results, which will be announced in sometime. I don't have the date, probably early August. And we thank you for your interest today.

Operator

Thank you for your participation in today's conference. This concludes the presentation. You may now disconnect. Everyone have a great day.

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