DTS, Inc. (NASDAQ:DTSI) Q2 2016 Earnings Conference Call August 8, 2016 4:30 PM ET
Geri Weinfeld - Director, Investor Relations
Jon Kirchner - Chairman and Chief Executive Officer
Melvin Flanigan - Executive Vice President, Finance and Chief Financial Officer
Brian Towne - Executive Vice President & President of DTS Asia Pacific
Ralph Schackart - William Blair
Patrick Sholl - Barrington Research
Rob Stone - Cowen & Company
Steven Frankel - Dougherty & Company
Eric Wold - B. Riley & Co.
Paul Chan - JPMorgan
Good day, ladies and gentlemen, and thank you for standing by. Welcome to the DTS Second Quarter Fiscal Year 2016 Earnings Conference Call. During today’s presentation, all parties will be in a listen-only mode. Following the presentation, the call will be open for questions. [Operator Instructions] This call is being recorded today, Monday, August 8, 2016.
I would now like to turn the call over to Geri Weinfeld of DTS Investor Relations. Geri, please go ahead.
Good afternoon, everyone. Thanks for joining us as we report second quarter 2016 financial results. With me on the call today are Jon Kirchner, Chairman and CEO; Mel Flanigan, CFO; and Brian Towne, President, Asia-Pacific.
Before we begin, I would like to provide two reminders. First, today’s discussion contains forward-looking statements that are predictions, projections or other statements about future events, which are based on management’s current expectations and beliefs, and therefore subject to risks, uncertainties and changes in circumstances. Please refer to the Risk Factors section in our SEC filings, including our most recent forms 10-K and 10-Q for more information on the risks and uncertainties that could cause our actual results to differ materially from what we discuss today. Please note that the Company does not intend to update or alter these forward-looking statements to reflect events or circumstances arising after this call.
Second, we refer to certain non-GAAP financial measures, which exclude charges for stock-based compensation, amortization of intangibles and acquisition integration, and restructuring-related costs and the related tax effects if any, and impute an estimated 30% effective tax rate on the pre-tax earnings of the Company. We have provided reconciliations of these non-GAAP measures to the most directly comparable GAAP measures in the earnings release and on the Investor Relations section of our website. The recording of this conference call will be available on our Investor Relations website at www.dts.com, an unauthorized recording of this webcast is not permitted.
Now, I’ll turn the call over to Jon.
Thanks, Geri. We are very pleased with our Q2 performance. Both revenue and earnings exceeded our expectations, mainly driven by stronger than expected production in the mobile category and the timing of certain contract renewals in the home category.
As a result of the solid performance in Q2, we are raising our full year outlook and now expect revenue of a $185 million to $190 million and non-GAAP diluted EPS of $2.18 to $2.28. GAAP diluted EPS is expected to be $0.70 to $0.80.
Importantly, today we are excited to announce the introduction of a quarterly cash dividend beginning at $0.02 per share. We continue to improve operating margins and cash flow generation and are focused on capital allocation to optimize shareholder value, while historically we have emphasized strategic investments in opportunistic share buybacks, we believe the addition of a dividend to this mix represents another step in a thoughtful and sustainable strategy to return value to shareholders. We currently anticipate increasing the dividend as cash flow grows over time.
And I will provide more detail around our revised guidance and the dividends after I review our Q2 highlights. Similar to last quarter’s call, I will discuss the advancements we’ve made in expanding DTS encoded content across the globe and review our progress in each of our three core revenue generating markets, home, mobile and automotive.
As a reminder, DTS-enabled content fuels additional demand for our audio technologies. This quarter, we made significant strides in driving adoption of DTS-enabled content in the cinema and the home. Last week, we released DTS:X creation tools to digital media content professionals through authorized distribution partners Jargon Technologies and Scenarist.
These software-based tools are used to create DTS:X immersive audio streams for Blu-ray and Ultra HD Blu-ray and lay the foundation for ultimately driving delivery of DTS:X encoded streaming content to the home.
We continue to add new films to our roster of DTS:X cinematic releases. This quarter’s releases include top browsing film Warcraft, as well as, Now You See Me 2, Skiptrace, League of Gods and Secret Life of Pets. Since our launch of DTS:X last year, 31 films have been released in theaters with DTS:X.
We are now in more than 130 screens across the globe, a 60 plus percent increase from last quarter and we continue to gain traction.
Shifting to content in the home, this quarter we signed a significant agreement with Paramount Home Media Distribution. Paramount will release a collection of tiles featuring our next-generation DTS:X immersive audio starting with Daddy’s Home, The Big Short, Zoolander 2, and Whiskey Tango Foxtrot.
In summary, momentum around DTS encoded content is increasing and is pacing ahead of our original expectations. We expect a number of important announcements this fall including the launch of additional services.
Moving on to highlights in our three revenue generating markets, home, mobile and automotive. As expected, the home market was down 5% mainly due to softness in standalone Blu-ray players and a tough comp in TVs is a certain minimum guarantee over just last year.
Blu-ray players were down consistent with overall market declines. This was partially offset by increases in AVRs and higher game console production.
Notably, in the home category, we successfully renewed the outstanding contracts that we discussed last quarter. We are tracking towards our goal of more than 60 DTS:X supported products across a multitude of brands, product types and price points by the end of the year.
As an example, last month, Yamaha’s first immersive 7.1.2 sound bar was released with DTS:X technology. For our wireless audio technology Play-Fi, we held our First Partner Marketing Summit in New York and received enthusiastic response.
Notably, this event brought together our entire wireless ecosystem with representatives from all Play-Fi hardware partners, key content service providers and DTS personnel to discuss the further expansion of the DTS Play-Fi ecosystem value proposition and roadmap.
Play-Fi products for Macintosh also launched at retail this quarter. Sonus Faber just previewed their forthcoming Play-Fi line-up to the press in Europe and we continue to add features to the platform.
Lastly, we advanced discussions with additional brands, supported integration of Play-Fi into more product categories and supported retailers preparing for the holiday season.
In the mobile market, we had a very strong quarter with revenue up 37% year-over-year, driven by higher than anticipated production levels from some of our customers.
Notably, 14 tablets and smartphones featuring Headphone:X were launched during the quarter. Among those, Asus launched the Zenfone 3 Ultra in Taiwan. The first smartphone to feature DTS Headphone:X 7.1 surround sound. We expect this product to be introduced to additional territories in the coming months.
Additionally, several Asus Zenpad tablet products with DTS Headphone:X technology have begun a worldwide rollout including the Zenpad Z 8 in North America available exclusively through Verizon.
We continue to build momentum in this category with a growing roster of mobile device manufacturers implementing DTS’s premium audio solutions including Huawei, the world’s third largest smartphone manufacturer, Jinli, Haier, LAO MOBILE, Nubia and ZTE from China and Acer from Taiwan.
Another interesting area in mobile is gaming accessories and BR. We are starting to see certain manufacturers converge on Headphone:X. So far this year, 12 new gaming headphones featuring Headphone:X were released in the market through leading manufacturers Logitech, Turtle Beach, SteelSeries and Mad Catz.
This more than doubles the number of Headphone:X enabled headphones in the market today. We expect several more gaming headphone product releases from these manufacturers as we move through the remainder of the year.
In the automotive market, revenues were up significantly, driven by our acquisition of iBiquity in Q4 last year. Sequentially, our automotive business was up 9% driven by increased HD radio penetration of new car sales in the US. We also continued to expand our geographic footprint in Canada where several new broadcasters launched HD radio services including Rogers Radio Stations in Toronto and Vancouver.
Lastly, we continue to expand the DTS automotive footprint. As an example, Honda has begun to embrace our neural technology beginning with the Honda Civic which was named the North American Car of the Year for 2016.
We continue to make good progress in defining our vision for DTS’s role in the connected car and we look forward to updating you later this year on our progress.
With that, I am going to turn the call over to Mel to discuss our Q2 results for each of these markets.
Thanks, Jon, and good afternoon, everyone. As a reminder, we’ve posted prior revenue category results on our website for your reference and our GAAP expense and earnings numbers can be found in the tables in our earnings release and in the Investor Relations section of our website.
For the second quarter, total revenues were $48.7 million, up 41% from $34.4 million last year. Growth in recoveries were less than $1 million, essentially flat year-to-year. The strong Q2 results were driven by solid performance in automotive and continued momentum across the mobile markets, which included roughly $2 million in minimum guarantee overages.
As expected, the home market was approximately $23 million, down 5% year-to-year driven primarily by a tough comp in TV and expected declines in standalone Blu-ray players. Home represented 49% of total revenues for the quarter.
Revenue from the mobile market increased 37% and was approximately $6.4 million driven by better than expected sales from one of our minimum guarantee customers and the launch of the new Asus phones and tablets as Jon discussed. Mobile represented 14% of total revenues in the quarter.
Automotive market revenues were $17.5 million, up substantially year-over-year driven by the HD Radio acquisition and up 9% sequentially due to stronger auto sales. Auto represented 37% of total revenues in the quarter.
Non-GAAP gross margin for the quarter was 98%. Non-GAAP operating expenses for the quarter were $29 million, up 17% from $24.8 million last year. The increase was primarily driven by the inclusion of the HD Radio business.
Non-GAAP SG&A for the quarter was $17.4 million, up 9% from $15.9 million a year ago. Non-GAAP R&D was $11.6 million, up 31% from $8.9 million last year. Non-GAAP operating income for the quarter was $18.5 million, up nearly 100% from $9.3 million last year. Non-GAAP operating margins came in at 38% versus 27% last year.
On the tax front, as you know, we’ve been working to bring the HD Radio IP into our international structure in part to maximized utilization of iBiquity’s net operating losses. Overall, we’ve been able to utilize over $110 million in NOLs to offset current and future cash taxes payable, significantly more than the $52 million we discussed in Q4.
Much of this benefit flows through purchase accounting and thus has a negative short-term impact on our GAAP provision and the effective tax rate. As a result of all this, our GAAP effective tax rate for 2016 is now forecast to be about 39%.
Absent certain IP transfer-related amounts, the rate would be in the upper 20s, so we believe the continuing to use 30% as a somewhat conservative non-GAAP estimate is appropriate, at least until the dust settles on the IP restructuring.
I should also note that while the GAAP benefits of our work are hidden for the most part in purchase accounting, the savings are real in terms of cash. Overall this year, our global cash tax rate is estimated to be under 15% and in June, we brought $30 million back into the US effectively tax free due to NOL coverage.
In all, our work on the iBiquity NOLs will save us more than $40 million in cash over the next several years, a great outcome for DTS and our shareholders. Non-GAAP net income for the quarter was $12.1 million or $0.67 per diluted share, up from $6.2 million or $0.34 in 2015.
Turning to the balance sheet, we closed the quarter with cash and cash equivalents totaling $43.8 million, and about $139 million in debt. In addition to our scheduled $5.5 million quarterly debt payment we began the retirement of an additional $20 million of debt by year end. The first installment was $10 million in June to be followed by $5 million payments in September and December.
In addition, as Jon mentioned earlier, the Board approved our first quarterly cash dividend of $0.02 per common share outstanding. The dividend will be payable on August 31, 2016 to shareholders of record as of August 22.
Also, given our performance to-date, we are increasing our full year outlook. We now expect revenues in the range of $185 million to $190 million. Note that with respect to seasonality, we currently expect Q3 revenues to be down sequentially due to the Q2 contract overages.
We also now expect operating expenses to tick up about $1 million per quarter from prior expectations due to certain incremental employee-related and marketing costs in the second half.
Lastly, we expect GAAP diluted EPS of $0.70 to $0.80 and we are increasing our non-GAAP diluted EPS to $2.18 to $2.28.
With that, I’ll turn the call back over to Jon.
Thanks, Mel. In closing, we had a great first half and I look forward to updating you on our progress on our initiatives in the home, mobile and automotive markets throughout the rest of the year. I’d like to thank our partners, customers, and employees for their ongoing support and efforts.
With that, I’ll turn the call over to the operator for questions. Operator, please go ahead.
Thank you. [Operator Instructions] And we’ll take our first to Ralph Schackart with William Blair. Please go ahead.
Good afternoon. First question on the guidance. Mel, I know, you talked about Q3 being down sequentially due to the overage in the Q2. However, I think last call you talked about Q4 seeing maybe stronger than expected auto just due to sort of the nature of the payments. Just curious is that’s sort of the expectation, how we are thinking about the linearity of Q3 and Q4 of the year?
Hey, Ralph. So, I think that you’ll see the slip between three and four being a little bit more leveled than maybe we had originally expected. Part of that has to do with the preponderance of minimum guarantee deals and such, but I think we will see a slight uptick in Q4. But it’s not going to be as large as we might have seen in prior years.
Okay. And then, just in mobile, I think you called out about $2 million in minimum guarantee overages, maybe you can sort of give a little color around that, is that pretty broad based or with one customer and sort of how you think about the mobile business through the balance of the year?
Yes, so, typically, the way that the overages come up is it tends to be late in the cycle or late in the contract period. There were more than one account that has some overages, but the vast majority of it came from a single customer who far surpassed what their expectations were originally on their sales. So, good news for us.
Okay, thank you.
We’ll go next to Jim Goss with Barrington Research. Go ahead please.
Hi, this is Pat Sholl in for Jim Goss. I just had a couple questions. You guys mentioned the progress in theaters and the - I guess, increased penetration in the screens. Related to that, how – I guess, how many screens you guys currently have committed to, I guess, expanding your product? And then I guess, with the competition from Dolby, Atmos and I guess, other speakers, sound competitors, is there sort of any risk of sort of being blocked out not much partly blocked out from that – from that point? A - Jon Kirchner
I think, the marketplace wants choice. DTS:X in the cinema as well as from an immersive audio format perspective is designed to offer a range of performance and flexibility advantages. So, today, we are in 130 screens and growing that doesn’t include all those that potentially or under contract. There is ongoing discussions with other parties around expanding that number. Year-over-year with the product essentially being slightly more than 15 months ago, we are actually tracking I think pretty well to into an accelerating future for DTS:X in cinemas. So, the bottom-line is that, not unlike our prior experience over the past 20 years in the professional space, or in the consumer space is that DTS is going to have an important role to play as it relates to the high quality consumption and enjoyment of immersive entertainment. And this is just part of a broader strategy to support our business downstream.
Okay and with respect to auto, you have mentioned some improved penetration. I was wondering and you guys laid out the – I guess, growth trajectory over the next two years, how much of that improved penetration over that next two year period will be sort of back-end loaded? Or sort of how sort of steady do you expect it to be?
Well, I think there are a couple of factors that will influence how it moves. I mean, we are currently doing business with all 36 brands sold in the United States and depending on which manufacturers are including technology as factory standard versus optional ones, certain models and the relative sales of those models, it will influence what the ultimate penetration curve looks like. We do expect it to move northward year-over-year. But we are not yet providing any specific guidance around the pace of progress over the next four years in any given individual year.
Okay, thank you.
We’ll take our next question from Rob Stone with Cowen & Company. Please go ahead.
Hi guys. I wanted to circle back on the minimum guarantees and potential overages. With respect to the cadence of contracts that might be coming up on such a possible overage, do you see the scope in Q3 or particularly Q4 for upsize versus what’s in the contract? And I assume the guidance as its base now, it’s based on the guarantee, not an overage amount right?
Yes, there are contracts renewing throughout the year. There is a relatively small number of very large contracts that actually moved the needle in a meaningful way I suppose. And so we thought one of those obviously in Q2. As we sit here today, we don’t know of any that are going to be driving overages – meaningful overages in the next couple of quarters. So, that’s sort of what our expectations are based on.
Okay. You mentioned, Mel, that the OpEx we are going to tick up in the next couple of quarters, you were running somewhat above where the street was in Q2. Did I understand your comments correctly that it’s going to be another $1 million or so sequentially higher in each of Q3 and Q4?
Okay. And, with respect to auto, I guess, for folks covering the auto market, the question for a while there has been how long does the good times last? Do you still feel like based on what you know about implementation plans that your growth is driven as much by rising penetration as it is by overall vehicle volumes?
Yes, Rob. Absolutely, I mean, our longer term forecast anticipates that the market will be peaking during this period. And so, we are not basing our forecast on the expectation that that we are going to continue to see aggregate market growth in the US up into the right. But rather, within the existing market even if it peaks and begins to decline somewhat our baseline expectations and our forecast really have more to do with sensible aggregate volume where penetration is rising based on the advantages of the HD Radio delivery platform.
Okay. And, my last question is on, Headphone:X. I know it’s still relatively early days in terms of the number of overall mobile SKUs, I think you said something like 2014 up to now, but are you seeing a pattern where the penetration looks like it’s going to be greater, for instance, it sounds like gaming headsets, that’s going to be a strong area for the technology. You mentioned some tablets, is it likely to be on certain specialized platforms or do you see broad interest on mainstream smartphone for instance?
I think we see broad interest, Rob, in a number of categories including things like TV. We are seeing some interest in the PC space and certainly in smartphone and tablets. I think, there will be news to come in the future in terms of the pace of that rollout, but people are very interested in what we are doing. I think the advent of BR additionally provides interest in the application of Headphone:X is largely designed to support that particular use case. So, I think you are going to see Headphone:X appear in multiple places as we move ahead over the coming quarters and you will see it in greater volume as well.
So, I take your comments to mean that you have design wins and view for half two launches?
We expect more products to be launched and I think as we look into 2017 and beyond, Rob, there are certainly conversations we are interested and excited about.
Great, thank you.
We’ll go next to Steven Frankel with Dougherty. Please go ahead.
Hi, good afternoon. Let me just follow-up on the guidance comments and maybe you could help us understand where are the incremental $1 million a quarter is going to be spent and what do you hope to get out of that?
Hey, Steve, it’s Mel. So, couple different things. So we’ve got some marketing spend that is expected to ramp up through into the fall and holiday season and such. Part of it is related to employee-related expenses including things like, company-wide bonus programs that scale based on revenue and operating profit performance. So there is sort of – that’s kind of one of the very few areas that where there is a variable cost associated with exceeding plans from a revenue and profit perspective. So it’s kind of across the board vertically on the P&L in a sense that, you’ll see it in sales and marketing, G&A and R&D.
Okay, and then, in terms of Play-Fi, is it too late to expect any more partners this holiday season or the discussions you have any further, that’s for next year?
We are in some discussions Steve that span both the balance of the year as well as next year. I mean, you are quickly approaching depending on how Play-Fi is implemented a period we are sourcing modules and what not and getting it into products certainly means later, very late in the holiday season. But suffice it to say that, we are also working on some things that involve embedded implementations of Play-Fi and distribution there looks a lot different. So, I would stay tuned, but we are certainly encouraged by the number of the conversations and back to your question, some of what we anticipate doing from marketing standpoint spending-wise is in support of products that we expect to hit retail in the – during the holiday season.
And those partners that you announced during the year, are they all slated to hit the holiday period? I know, actually, we had a couple with interruptions. What’s your confidence level in this year’s partners hitting the holiday window?
Hi, Steve, it’s Brian. I think the confident, we’ve delivered what we need to deliver. I guess, is what I can share with you. Last year, missing the window, to be very clear and the other way what I think we said then, it wasn’t due to the Play-Fi technology itself. So, different things can happen that are clearly outside our control, but we talk to these folks certainly weekly and have engineering calls very frequently to assist them and I am told by the team they are feeling positive that the products will ship. And once again, we have certainly visibility around the module sales.
Okay, and then, switching gears, looking a bit forward into CES next year. Given the shift in the market towards 4-K what do you think your kind of value-add or your ability to get designed into TVs, it looks like this year versus last year?
A couple of comments. We are today contracted with pretty much all 13 or so of your world’s largest TV manufacturers. So we are doing business with them quite extensively and increasingly under minimum guarantee type deals. We span various elements of their product line including 4 K related cess. So, I think we are – from a value prop standpoint, we are going to continue to be an important part of next generation displays and product offerings and maybe most importantly, we are also in the process of delivering some new and innovative technology that will hit the TV cycle probably as we get out into 2018 that I think our interest and will kind of keep us on that continuum of growing importance as a value-added partner of the TV manufacturers.
Jon, I would add to that. I think, the transition, not only that monitors transitioned into 4K but people service offering we are transitioning to 4K, which opens up the opportunity for a quality discussion which really fits our business model and I think we are pretty pleased with our progress in that area.
Okay, and at one point, you talked about Play-Fi’s presence in Q4 maybe depresses gross margins, given the dynamics in the business seems things are shifting a bit. Would you still expect to see some pressure on gross margins in Q4 from Play-Fi?
Hey, Steve, it’s Mel. There will be slight pressure, but it’s very, very minimal. It’s not something I would even worry too much about from a modeling perspective.
Great. That’s all I have. Thank you.
[Operator Instructions] And we will take our next question from Eric Wold with B. Riley. Please go ahead.
Thank you. Just a couple questions. One, kind of looking into the back half of the year, I know that, Q2 performance was driven by these 14 new phones and tablet products launched in the quarter. Can you give a sense of how much of the Q3 and Q4 I or guess, the remaining second half guidance is based on products yet to be launched, just trying to gauge kind of the risk level from your point of view into remaining year’s guidance?
A lot of what we expect to recognize over the balance of the year really relate to minimum guarantee contracts. So, from a mobile perspective, a good bit of the expected volumes are already linked to minimum guarantee deals. So the relative risk this year versus let’s say a year ago is different impart by how we continue to enter into minimum guarantee deals. That being said, a good portion of our business also isn’t covered by minimum guarantees, because minimum guarantee contracts will represent only, roughly about a third of our business. So, we are subject to what happens at retail in Q4, but I think as we look ahead, we’ve narrowed our guidance range. We’ve lifted the floor. We feel good about where we are going for the balance of the year. Obviously, we had a very strong Q2 both top and bottom. And I think, at this point of the year where we tend to begin to get better visibility on the – on what happens in the back half, we feel good looking ahead where we are right now based on that, we’ve adjusted our guidance accordingly.
Thank you. And then, just one kind of, I guess, broader question. As you speak to some of the OEMs about getting on to additional handset and product models, can you maybe just right kind of the tone of the discussions now, versus what they may have been a couple of years ago? Are the OEMs are lot more open to the thought of dual-sourcing if it a question teams you and Dolby to make sure that all are basis or covered to that argument on your standpoint of the merit to DTS technology has gotten somewhat easier and in terms of as you go more towards lower end models, the ease of getting your technology on to kind of across the entire product roadmap is a change for the better?
Let me address, maybe part of that and ask Brian to address the rest. At a high level, one of the things you have to continually keep in mind is this migration of higher quality content distribution out of the living room into mobile and portable devices and the truth is the content universe that exists in your living room is widely spread across both DTS as well as other formats. And so, the use case as people migrate that content to these devices is inherently there. I think beyond that, as you are selling post-processing related technologies and other sorts of value-added technologies, certainly as you build momentum in the marketplace, it tends to get others off the fence and helps drive further support. So, maybe, Brian can address more specifically the characteristics of some of those discussions.
First I would say, in many cases, the customers that we were targeting or let’s say most, are now under contract for one or many technologies. So, it’s no longer a legal discussion, it’s really a pricing and volume discussion and becomes very much share of wallet. The other thing I would tell you, it is easier today, because we have working – we went through be porting to a number of different platforms that were important to our customers. So we’ve kind of gotten half to where we were and we’ve talked to you maybe three quarters ago, which it makes the customers’ life easier, which then makes all the discussions easier.
That’s helpful. Thanks guys.
We’ll go next to Paul Koster with JPMorgan. Please go ahead.
Hi, thanks. This is Paul Chan for Paul Koster. Thanks for taking my question. Can you give us an update on cross-sell revenue opportunities with existing HD Radio customers with DTS tech? How big is this opportunity? And are these discussions taking place? Thanks.
Sure. The discussions are clearly taking place. The challenge with automotive is how to provide visibility into contracts that are executed relating to vehicle models that aren’t going to come for a couple of years, which is something over time we will, I think, continue to put some focus on to figure out how we can share information that’s comparable for us and as well as our partners. But long story short, we are at the table with our automotive customers in a way that historically we had not been in part because of the breadth of the platform we now have and our ability to offer a whole range of value-added technologies, as well as the fact that we have a broadcast platform that potentially has utility and value in the connected car scenario. So, we are very pleased with how things are going. Our teams are working together and are actively selling a full suite of audio solutions as well as being actively engaged with product planners on the automotive side about what the automotive space may look like ten or fifteen years from now and I think, over time, we will certainly be able to manage that preferred positioning into a broader base of business for us to track.
Okay, thank you very much.
And this concludes the Q&A session. Thank you for your participation in the call today.
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: firstname.lastname@example.org. Thank you!