Alloy, Inc. Q4 2005 Earnings Conference Call Transcript (ALOY)

Mar.30.06 | About: Alloy Inc. (ALOY)

Alloy Media and Marketing (ALOY)

Q4 2005 Earnings Conference Call

March 29, 2006, 5:00 p.m. EST

Executives:

Matthew C. Diamond, Chairman and Chief Executive Officer

James K. Johnson, Chief Operating Officer

Gary Yusko, Chief Financial Officer

Analysts:

John Ship, Lehman Brothers

Mike Ongi, Analyst

Michael McCormack, Analyst

Operator

Good afternoon. My name is Omar and I will be your conference operator today. At this time, I would like to welcome everyone to the Alloy year end fourth quarter 2005 conference call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question and answer period. If you would like to ask a question during this time simply press “*” and “1” on your telephone keypad. If you would like to withdraw your question, press the “pound key.” Please limit your question to one plus one followup. I would now like to turn the call over to Jodie Smith. You may begin your conference.

Jodie Smith, Investor Relations

Good afternoon. Thank you for taking the time to join us for our conference call on Alloy’s fourth quarter and full year fiscal 2005 earnings. Participating in today’s discussion are Matt Diamond, Chief Executive Officer; Jim Johnson, Chief Operating Officer; and Gary Yusko, Chief Financial Officer. Alloy reported its fourth quarter and full year fiscal 2005 earnings after the close of the market today. If you have not previously received a copy of the press release, it is available on Alloy’s website at alloyinc.com. Matt will begin by providing an overview of our results, operational highlights, and an update on recent events, followed by Gary who will discuss our financial results and positions. We will then open the session up for questions and answers.

Our press release and this presentation reference several non-GAAP financial measures, specifically adjusted EBITDA and free cash flow. We have included these non-GAAP measures because we believe that they are important in evaluating the company’s performance. Because they are not calculated in accordance with GAAP, they should not be considered an isolation of or as a substitute of net income as an indicator of operating performance or net cash flow provided by operating activities as a measure of liquidity. At the end of our press release, we have provided supplemental disclosures, correcting files, and non-GAAP financial measures to their GAAP counterparts in accordance with the SEC’s Regulation G. Let me note that statements on this conference call relating to matters which are not historical facts or forward-looking statements; forward-looking statements involve risk and uncertainties which could cause actual results to differ. Risks and uncertainties are disclosed in Alloy security filings at the end of our press release. I will now turn the program over to Matt Diamond.

Matthew Diamond, Chairman and Chief Executive Officer

Thank you for joining the Alloy fourth quarter and full year fiscal 2005 conference call. With me today are Jim Johnson, Alloy’s Chief Operating Officer, and Gary Yusko, Alloy’s new Chief Financial Officer. I am pleased to report that the company produced strong results for the fiscal year end and fourth quarter. Sales increased $11 million or 6% in fiscal 2005 and $1.4 million or 3% for the fourth quarter of this year. Adjusted EBITDA increased by over $12 million or 259% for the year and $3.5 million for the quarter. The improved financials were the result of a reinvigorated and more selective sales effort, improved product offerings and a success of a significant number of cost reduction efforts. Let me highlight a few important recent accomplishments.

First, on December 19, 2005, after two years of consistently improving results, we spun off the dELiA*s Inc. to our shareholders. We are now a nontraditional media and marketing services company with good operating momentum. Second, we reinvigorated our sales productivity. More significantly, most of the revenue increase occurred in the more profitable media business segment. We believe that continuing to expand our media business segment will be critical in improving profitability and increasing shareholder value.

Third, we improved our product and service offerings throughout the year, enhanced programs for or added several key clients including McDonald’s, Wrigley’s, AOL, and US Swimming. Our creative work and success with the US Swimming campaign earned Alloy Media and Marketing a prestigious Reggie Award. Each of these campaigns involves the measurement clients use to evaluate the program and subsequently all led to renewals. We continue to improve awareness of the Alloy Media and Marketing brand and of our capabilities with major advertisers and agencies.

Fourth, we dramatically reduced cost in fiscal 2005 in order to improve the bottomline. Our corporate cost declined 25% and our operating cost including depreciation and amortization grew less than 2%. A successful example of our reduced cost was our promotions business segment, which improved adjusted EBITDA at 65% on a revenue increase of only 6.2%. We achieved this improvement in adjusted EBITDA by making top cost cuts to our infrastructure and by not being afraid to walk away from business that did not meet our minimum profitability targets.

Finally, as you have seen from our March 28th press release, Alloy has acquired Sconex, a social networking site for high school teens. Our interactive assets of which Sconex is now a part are now increasingly more popular with advertisers who market the youth demographic. We believe that the combination of the Sconex community and technology with Alloy’s marketing reach and sales relationship will enable us to continue to grow our interactive media revenues and profits. Sconex is particularly attractive, in that according to media metrics the average user spends nearly an hour on the site, more than two and half times that of myspace. This high use per user gives us confidence that Sconex will continue to gain new users through word of mouth in addition to the support our media properties can provides.

Going forward into fiscal 2006, we will be focused on the following key initiatives and earnings to increase shareholder value: We will seek to continue to improve our sales force productivity by increasing our total revenues year over year, particularly in our media business segment. Based on our sales management system, we continue to see a year-over-year increase in demand based on contracted and projected sales for the year. We will continue to look for opportunities to lower our cost structure. Although much of this work has been done, we believe there still remains some opportunity and we look forward to improving margins and lowering corporate cost as much as possible. We will look to invest in and/or acquire high-margin company proprietary media assets. We believe that expanding our media business segment is the best way to build long-term shareholder value. And finally we will look to create shareholder value operationally and strategically. Alloy Media and Marketing has established strong operating momentum over the last 12 months. Our free cash flow during 2005 was over $13 million and we have over $30 million of cash on hand. The company also carries approximately $69 million of convertible debt giving us a net debt position of approximately $38 million as of year end. If the debt converts to equity, the fair market value of the shares that Alloy would issue upon conversion would be less than the $69 million of outstanding debt. I’d like now to turn the call over to Gary, who will take you through a more detailed review of our results.

Gary Yusko, Chief Financial Officer

Thank you Matt. As noted in our press release, this is our first earnings recorded as a separate public company following our spinoff of dELiA*s Inc. on December 19, 2005. The financial results of dELiA*s are presented as discontinued operations for all periods. In addition, on February 1, 2006, we effected a one for four reverse stock split. All share and per share amounts have been retroactively adjusted for the reverse split. Before the spinoff dELiA*s Inc., the company in addition to its corporate segment had three operating segments -- direct marketing, retail, and sponsorship. The direct marketing and resale segments were entirely related to dELiA*s operation while the sponsorship segment was principally Alloy’s continuing operation. As a result of completing the spinoff, the company realigned its sponsorship segment into three new operating segments -- promotions, media, and placement. We will be reporting our results with these three new segments today in going forward.

Our three business segments give Alloy Media and Marketing significant reach into the 73 million young people who comprise our target demographic. We believe our products and services enable the company to provide a unique blend of marketing and advertising services, looking to connect the market to this demographic audience. In fiscal 2004, the year ending January 31, 2005, the company performed its annual testing of impairment in accordance with FAS 141 and 142 and recorded a non-cash impairment charge of approximately $72.9 million. At the end of fiscal 2005, year ending January 31, 2006, the company, as recorded by FAS 141 and 142, performed its impairment test on its redefined business segment. Despite the strength of our business this past year, the division of our previous sponsorship segments into the three new segments resulted in the company meetings to record an additional non-cash impairment charge of approximately $32.7 million in the current period. These non-cash charges together with approximately $3.5 million in cost related to the dELiA*s spinoff are included in the special charges caption on our statement of operation. Revenue for the full year was $195.3 million. It increased approximately $11.1 million or 6% from fiscal 2004 as reported revenue of $184.2 million. Approximately $6.1 million of the increase came from our media segment while $5 million came from our promotion segment. Strong sales momentum in our Out-of-Home business and growth in direct selling and sampling services drove the revenue growth. In fiscal 2005, we were also more selective in the type of business we accepted having turned away from businesses that did not meet our minimum profit expectations. To focus on profitability look at our revenue growth in the period; as Matt stated, we plan on continuing to be selective on business we accept, focussing on the profitability of transaction.

While growing our topline, we focus on controlling cost. As a result, our operating cash flow or adjusted EBITDA, which we define as operating income plus special charges, depreciation in amortization, and non-cash stock-based compensation, increased 259% to $17.3 million in fiscal 2005 from $4.8 million in fiscal 2004. Non-cash stock compensation related to restricted stock grant was approximately $300,000 in fiscal 2005 compared with approximately $1.6 million in fiscal 2004. For the year, special charges decreased $37 million or 51% to $36.2 million from $73.3 million in fiscal 2004. As I mentioned, including the special charges in 2005 was the $32.7 million non-cash impairment charge for long-lived assets and $3.5 million in costs associated with the dELiA*s spinoff. In fiscal 2004, special charges included the $72.9 million non-cash impairment charge and about $400,000 of restructuring cost. Operating loss on a reported basis decreased 69% to $24.2 million in fiscal 2005 from $78 million in fiscal 2004. Excluding special charges, operating income rose $16.7 million to $12 million in fiscal 2005 from an operating loss of $4.7 million in fiscal 2004. The company has continued net operating loss carry forwards aggregating approximately $25.8 million. In prior periods, we established evaluation allowance on these NOLs, which on January 31, 2006 approximated $16 million. Accordingly the company has a nominal provision for income taxes in fiscal 2005 and 2004.

Weighted average shares outstanding in fiscal 2005 rose approximately 9% to $11.6 million from $10.7 million in fiscal 2004. The increase was principally attributable to the conversion of our Series B convertible preferred stock to common stock in June. As a result of incurring a net loss from continuing operations basic involuted shares used in the computations of earnings loss per share are equivalent as common stock equivalents would have an anti-dilutive effect on the per share amounts. Our free cash flow, which was defined as net income loss from continuing operations plus special charges, depreciation in amortization, non-cash stock compensation, and amortization of debt discounts, less capital expenditures for fiscal 2005 increased $15.1 million to $13.3 million from a (negative) $1.8 million in fiscal 2004. We believe free cash flow is the most important measure of any company’s operating performance as it represents the amount of cash available for debt service, acquisitions, and stock repurchases.

In fiscal 2005, our capital expenditures decreased approximately $1.9 million to about $750,000 from approximately $2.7 million in fiscal 2004. Free cash flow per share in fiscal 2005 was $1.15 compared with a loss of $0.17 per share in fiscal 2004. Finally, net loss attributable to common stockholders on a reported basis in fiscal 2005 decreased $57.3 million or 61% to $36.1 million or $3.11 per share from $93.4 million or $8.77 per share in fiscal 2004. As a result of our Series B convertible preferred stock converting to common stock in June, preferred dividends in fiscal 2005 decreased to $620,000 from $1.6 million in fiscal 2004.

Let me highlight our fourth quarter results. Revenue for the fourth quarter of fiscal 2005 increased $1.4 million or 3.3% to $43.2 million from $41.8 million in the fourth quarter of fiscal 2004. Revenue growth in the media segment more than offset revenue decreases in our promotion and placements segments. Adjusted EBITDA increased $3.5 million to $3 million in the fourth quarter of fiscal 2005 from a loss of approximately $500,000 in the comparable quarter of 2004. Free cash flow for the fourth quarter of fiscal 2005 was $2.2 million compared with a (negative) $2.3 million in the fourth quarter of fiscal 2004, an improvement of $4.5 million. Capital expenditures in the quarter were nominal compared with approximately $1 million in 2004’s fourth quarter. Free cash flow per share was $0.40 to $0.19 from a negative $0.22 in fiscal 2004’s fourth quarter. Net loss attributable to common stockholders in the fourth quarter of 2005 was $23.8 million or $2.01 per share compared with $73.8 million or $6.88 per share in the fourth quarter of fiscal 2004; a decrease in net loss of $50 million.

Let me say a few words about our balance sheet. Our balance sheet is strong. Cash and marketable securities on January 31, 2006 was $40.8 million including approximately $8.2 million which was dELiA*s. Our working capital as on January 31, 2006 was $45.8 million and our 5.375% senior convertible debt outstanding was $59.3 million. As a result of dELiA*s spinoff, I’d like to clarify the conversion terms of the debentures. Each $1000 principal amount of our senior convertible debentures is convertible into 29.851 shares of Alloy’s common stock and 59.702 shares of dELiA*s common stock. Therefore, with the entire issuance converted we would be required to issue approximately 2.1 million shares of our common stock and dELiA*s would be required to issue approximately $4.1 million shares of its common stock. We are responsible for paying interest on the full face amount of debentures. If not converted to common stock, we are responsible entirely for the repayment of the debentures. With that, let me turn the discussion over to questions and answers.

Operator…

Question-and-Answer Session

Operator

At this time, I would like to remind everyone if you would like to ask a question press “*” then “1” on your telephone keypad. Please limit your question to one plus one followup.

Your first question comes from the line of Doug Anmuth with Lehman Brothers.

John Ship, Lehman Brothers

Hi, this is actually John Ship for Doug. I just had a couple quick questions. The first one, I was wondering if you could break out your revenue and EBITDA across your three major segments for the fourth quarter of this year as well as last year. And my second question is if you can provide any more color on what’s driving the strength in the Out-of-Home business, and lastly on the Sconex acquisition, I’m wondering if you could quantify how much this acquisition will increase your online advertising inventory going forward. Thank you.

Matthew C. Diamond, Chairman and Chief Executive Officer

Hey John, it’s Matt Diamond, I’ll start and then we’ll turn it over to Gary to answer the specifics of your first question. The strength of the Out-of-Home from a couple of different areas, first the sales force effectiveness, various programs we put in place for sales force productivity, everything from commission plans to a team that’s just dedicated to selling Out-of-Home have all proven to be effective. I’ll also say the growth of nontraditional marketing in things in and around our location media properties is also helping us, client renewals renewing more and more with pre and post-study to show the effectiveness of the campaigns that we’re running. I think all of those things have led to what is the beginning, I would hope, of improvement and success in the Out-of-Home group. I think that we believe there’s more opportunity and we’ll continue to do what we’re doing, but we think we’ve got good profits in place that has worked well over the past year and we’re going to keep focusing on those same things.

As far as your second question with Sconex, currently I would probably add 20-25% at selling inventory. The caveat though is this is the new frontier or source for network marketing and advertisers are obviously extremely eager to be involved, but I think that the actual models are still being developed. I would like to think that we’re at the forefront of that given our relationship with advertisers, a history as a web marketing company, and really our relationships with ad agencies, particularly those in our active ad agencies. So, I caution in the sense that I wouldn’t want to just say every ad inventory that’s a source of networking is a sellable ad inventory, because I don’t think that’s the way it’s going to evolve and I don’t think that’s the way we’re going to look at it. I think for this first year we’ll just see what Sconex gives us, really focus on traffic, really focus on making Sconex the high school social networking site. It’s very unique in the sense that it is exclusively at this point focused on high school. We’re not interested in people that are 20 something getting into the site. This is for high school students only. You have to pass various security criteria to get into the site. If you’re not in high school you probably won’t get into the site. So, that’s really the focus today, to make it the high school site. They’re well on their way, they’ve done a great job to date with our marketing efforts, and we think we can continue to push that along. That’s how I look at Sconex, and Gary can talk to the first question.

Gary Yusko, Chief Financial Officer

John, it’s also breaking up the fourth quarter revenue by segment going in the order of promotion, media, and then placements. For the fourth quarter of fiscal ’05, revenue was $18.3 million, $12.7 million, and $12.2 million. As for 2004, it was $19.2 million, $10.1 million, and $12.5 million. On the EBITDA bi-segment for the same periods, about $3 million for each promotion and media and $1.5 for placement with corporate being a negative $4.5 million approximately, and for ’04 about $2.2 million and $0.8 million for promotion and media respectively, $1.5 million for placement, and corporate being a (negative) $5 million.

John Ship, Lehman Brothers

Great, thank you.

Operator

Your next question comes from the line of Mike Ongi.

Mike Ongi

Hi, could you tell us about the utilization rate of your billboards for the quarter and the second question is your NOLs…

Matthew C. Diamond, Chairman and Chief Executive Officer

We don’t disclose the utilization rates. I think that our answer, though, generally are basically are back to school and holiday always are stronger months, and therefore I think the results are flatbed because of the higher margin asset for us. But, all these areas, even in your high months like the back to school and holiday, it is not fully utilized. There is plenty of growth there. I think it’s safe to say that utilization has improved, but there’s plenty of growth there and in fact we don’t think utilization will hinder any of our growth for at least the foreseeable future.

Mike Ongi

Okay, and your NOLs?

Gary Yusko, Chief Financial Officer

The question?

Mike Ongi

Net operating losses?

Gary Yusko, Chief Financial Officer

Yeah, as I mentioned before, we got about $25.8 million of NOLs.

Mike Ongi

Okay, sorry, I missed that. Thanks.

Operator

Once again if you would like to ask a question, press “*” then the number “1” on your telephone keypad. We do have a question from the line of Michael McCormack.

Michael McCormack

Hi guys. These questions are predominantly for Gary, but could you just first refresh us with the reverse split. What is the conversion price on the convertible right now?

Gary Yusko, Chief Financial Officer

Again on the conversion it converts to 20.85 shares of Alloy and 59.7 of dELiA*s.

Michael McCormack

Isn’t there a price there that converts that?

Gary Yusko, Chief Financial Officer

No, this is because of two stock prices, the shares really come into play, so it’s a combination of what the stocks are.

James K. Johnson, COO and CFO

This is Jim Johnson. If you’re kind of looking at it, may be an easy way to think about it from where it was pre-spinoff is the conversion price originally was $83, and now that we’ve done the spinoff you take Alloy’s stock price divide it by 4, because we did a reverse split 1:4, and then take dELiA*s stock price divide it by 2 because of distribution, and then add those two together and compare that and it creates a price.

Michael McCormack

Okay, I will do so. Gary, as the new man on the team, can you talk about things on the balance sheet or the income statements that you could bring to the table to optimize?

Gary Yusko, Chief Financial Officer

One of the things that we’re going to be doing is working to bring down accounts receivable and then also hopefully improve performance so that our convertible debentures will go through and convert out, and we’re able to realize some additional value for our shareholders.

Michael McCormack

The primary thing on the balance sheet is receivables?

Gary Yusko, Chief Financial Officer

Definitely.

Michael McCormack

And could you comment on the deferred revenue. I think the deferred revenue declined year over year, it’s kind of tough still with those continued ops, but is that the case and why would that be the case?

Gary Yusko, Chief Financial Officer

Well, I think it’s just really a combination of how much business we’re selling and where we’re getting money upfront prior to the orders going through and running.

James K. Johnson, COO and CFO

Yeah, I don’t think that there’s anything there that’s significant in terms of an operational trend. I think, as Gary said, some programs are more cash upfront, some are less, and I think that’s just a natural variation from year to year. I don’t think that there’s any trend that you can associate that to.

Gary Yusko, Chief Financial Officer

It also has to do even the credit worthiness of the client. If a Procter & Gamble is doing a program, you’re not going to have to or even have the luxury of getting money upfront. If a startup is doing it, you’re going to demand the money upfront.

Michael McCormack

Absolutely not. On Sconex, can you give us an idea about any revenue contribution or losses that you would assume with this acquisition?

Gary Yusko, Chief Financial Officer

We don’t expect losses, in fact we’re going to continue to reinvest in the business; clearly this is a transaction in an area that we want to continue to grow, because frankly it’s just that the advertising market is extremely interested in it. So, we will of course continue to reinvest in the Sconex business. Having said that, we do expect that we are modestly cash flow positive and there won’t be a negative impact. We’d expect in the first year a couple of million dollars in the topline. We’ll of course know more in the coming months as we roll that out, meet with advertisers. We’re certainly excited in just the 24 hours, a very brief period of time, the interest that we have received. But as I said, it’s still a balancing act because where you place those ads, how you place those ads, you don’t want to alienate the users, you want the excitement in the community, and certainly meet criteria to establish yourself as a dominant site. So, I think what you’ll see in the first year is a couple of million on the topline of good revenue and we expect to be operated cash flow positive.

Michael McCormack

Sounds like a certainly very interesting acquisition. And lastly, I know you’re not giving guidance, but could you speak to may be your segments and your focus on media and promotion and may be trends that you might see in those businesses and bookings and so forth?

Gary Yusko, Chief Financial Officer

I guess as I indicated on the strip, we are seeing a continued positive demand. We look at it, as you asked the question “would you look at it in those three segments,” and we also look at it year over year and quarter over quarter and we continue to see positive trends. I think that what you saw in ’05 is what we’re pushing for as well as in ’06, which is in essence to focus on the media growth while focusing on the profitability in the other segments. As you know, this is a business that you start each season and quarter sort of from the ground up. The good thing is our reputation and our branding are giving out that umbrella support that we really have been working for a few years, and now with our size and the success of the programs every year we’re starting with a little bit better base and a little bit better strength of clientele and renewals. So, we’re confident and positive with the trends. They look good and it looks like our focus needs to continue to be, really in our media segment, as a highly interactive piece which this transaction helps with, as well as Out-of-Home and databases as the key areas.

Michael McCormack

Did I hear correctly that promotions were down year over year about $1 million?

Gary Yusko, Chief Financial Officer

That was just the fourth quarter.

Michael McCormack

Yeah, but year over year, fourth quarter to fourth quarter it was down about $1 million.

James K. Johnson, COO and CFO

Yeah, in the fourth quarter it was down about $1 million. Again, I think the biggest driver there was…as we talked about gross revenue fell in 2005; that side of business we’re most aggressive with reducing the cost structure and we’re most aggressive with redefining the type of business that we want to accept and…

Michael McCormack

You could see it in the positive EBITDA performance with the low…

James K. Johnson, COO and CFO

Absolutely, so when we look at it, we’re not bothered by the fact that we’re down a little bit in revenue because the EBITDA was obviously much stronger. So, we’re not too concerned about it.

Michael McCormack

Right, thanks again guys, and congrats on the spin.

Operator

We do have a followup question from the line of Mike Ongi.

Mike Ongi

Hi, do you have any CapEx projections?

Gary Yusko, Chief Financial Officer

I think looking at the company going forward you could probably anticipate it’s somewhere in the range between $1 million and $1.5 million a year. However, this year with Sconex coming in, we haven’t gone through and evaluated what that may do yet to this year’s numbers, so there may be some incremental spending we may have to do, which may take it up to may be $2 million this year, on a worse case basis.

Mike Ongi

And the followup question is, you talked about invigorating sales force, what exactly is the difference from what it was before?

Matthew C. Diamond, Chairman and Chief Executive Officer

I would say a few things. We entered about a year and a half ago with a major set of initiatives ranging from quality of sales people, training within the sales force, rewarding those that had been successful through commission plans as well as incensing them to focus on the higher margin media assets, various incentives that are associated with that, senior management that has been here a while, understands the assets extremely well, understands the nontraditional marketing space, and that also stays within the sales force itself, the dedicated staff, the dedicated selling particular assets, and that balance between selling across the network so that you could get advertisers that map deep reach but balancing that with a focused team that awfully just focuses on one particular property has also been part of the success. And in those dedicated stacks there’s a tremendous amount of expertise for those assets, but really I would set the standard for the property for the asset within the industry. So, I think all those things have played a role and I don’t want to suggest where we want to be because we’re not. We think we can continue to focus on the assets that make the most sense for our clients and the company as well as just continuing to drive sales force productivity.

Mike Ongi

Great, thanks.

Operator

Once again, if you would like to ask a question, please press “*” and “1” on your telephone keypad. Please limit your questions to one plus one followup. At this time, there are no further questions.

Matthew C. Diamond, Chairman and Chief Executive Officer

Thank you all for joining us. We look forward to coming back to you with our first quarter 2006 results.

Operator

This concludes today’s conference call. You may now disconnect

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!