Rogers Communications Inc. (NYSE:RCI) April 25, 2012 11:00 AM ET
Alan Douglas Horn - Chairman, Chairman of Pension Committee, Member of Executive Committee, Member of Finance Committee, Member of Advisory Committee, Chief Executive Officer of Rogers Telecom, President of Rogers Telecommunications Limited, Chief Executive Officer of Rogers Telecommunications Limited and President of Rogers Telecom
Loretta Anne Rogers - Director, Member of Advisory Committee, Director of Rogers Cable Inc, Director of Rogers Media Inc, Director of Rogers TeleCommunication Inc and Director of Rogers Wireless Inc
Edward S. Rogers - Deputy Chairman, Executive Vice President Emerging Business & Corporate Development, Director, Director of Rogers Cable Inc, Director of Rogers Wireless Inc, Chairman of Executive Committee, Chairman of Finance Committee, Chairman of Nominating Committee & Member of Advisory Committee, Director of Rogers Wireless Communications Inc and Director of Rogers Media Inc
John Henry Clappison - Director, Member of Pension Committee and Member of Audit Committee
C. William D. Birchall - Independent Director, Member of Audit Committee, Member of Nominating Committee and Member of Finance Committee
Nadir H. Mohamed - Chief Executive Officer, President and Director
William W. Linton - Chief Financial Officer and Executive Vice President Finance
Anthony Staffieri -
Alan Douglas Horn
Good morning, ladies and gentlemen. Welcome to the Rogers Campus and the Velma Rogers Graham Theatre. I'd like to call this Annual General Meeting of the shareholders of Rogers Communications Inc. to order. My name is Alan Horn, Chairman of the Board. And on behalf of the Board of Directors and officers of Rogers, I am pleased to welcome you to this year's shareholders meeting. I will act as Chairman of the meeting and our General Counsel, David Miller, will act as recording secretary. As this annual meeting is also being webcast, we welcome those individuals joining us via the Internet link. I think everybody say -- see this -- so we will now commence with the formal part of this meeting. After we vote on the motions contained in the information circular and any other business that might properly come before today's meeting, our Chief Executive Officer, Nadir Mohamed; and our Chief Financial Officer, Bill Linton, will review the company's recent results and discuss the priorities and objectives going forward. We'll then open the meeting for questions from shareholders. Following the conclusion of the meeting, everyone is invited to a reception and casual lunch to be held across the foyer in our reception hall. This will provide an opportunity for you to meet and speak informally with Rogers' officers and directors, and to experience some of Rogers' new products, while enjoying some food and refreshments at the same time.
With that, I would now like to introduce my colleagues on the Board of Directors who are present here today aside from those at the head table, and we ask that they stand to be recognized. Ron Besse, Bill Birchall, Stephen Burch, John Clappison, Peter Godsoe, Toby Hull, Phil Lind, Isabelle Marcoux, David Peterson, Edward Rogers, Loretta Rogers, Martha Rogers, Melinda Rogers, Bill Schleyer, John Tory, Colin Watson. And also, our new Director nominees that are here with us today, John MacDonald and Charles Sirois. Thank you.
Moving on, I will now appoint Paul Keyes and Daniela Munoz of Computershare Investor Services, our registrar and transfer agent, to act as scrutineers of the meeting. Computershare has provided proof of delivery to shareholders as required of a notice, information circular and proxy relating to this meeting, as well as the 2011 annual report and consolidated financial statements. I've also received the scrutineers' preliminary report on attendance at today's meeting, and I'm advised that there are a sufficient number of shareholders and proxy holders in attendance to constitute a quorum. The scrutineers have also informed me that the number of shares to be voted by proxy against matters to be presented to this meeting is less than 5% of the Class A shares outstanding. Accordingly, to expedite the voting, we will conduct it by a show of hands.
I now declare this annual meeting to be regularly called and properly constituted for the transaction of business. As noted in the information circular, only holders of Class A shares or their proxy holders are entitled to vote on the matters at today's meeting. Holders of Class B shares are, however, entitled and encouraged to participate in discussions during the meeting. The first item of business is a presentation of the company's 2011 annual report and consolidated statements. I now formally present to the meeting -- these items to the meeting, including the report of the external auditors, KPMG. I would ask that any questions from shareholders on the financial statements be held until after the senior management presentations later in the meeting.
Before proceeding with the election of company directors to serve going forward, I would like to recognize in honor of 2 long-time directors of our board, who are not standing for reelection this year. First is Ron Besse. Ron has been a Rogers Communications board member since 1984. In addition to his work on other board committees over the years, Ron has chaired the Audit Committee since year 2000. Ron had an illustrious and very successful career as an entrepreneur in the Canadian publishing sector, and he brought that experience to bear in all aspects of his role on the board. He was direct in his approach and someone who's input was valued by both management and the board. Ron's contributions over the company -- to the company over the years have been significant, and we greatly appreciate the value he has added over the nearly 3 decades of service as a Director. Second is Colin Watson. Colin began his career in the early deals of the cable industry with Canadian Cable Systems, which subsequently was acquired by Rogers. Colin was president of Rogers Cable for over 17 years. Colin left the cable industry in 1996 of what was a successfully career in the aerospace sector, but he never strayed far from Rogers, and he returned to be become a Director of Rogers Cable and then of the Rogers Communications board. Over a span of more than 30 years as an executive, a director and a friend of the company, Colin has been a steady business partner who has contributed greatly to the growth and development of Rogers. Again, his many contributions cannot be overstated. Please join me in thanking Ron and Colin for their outstanding service to Rogers.
Thank you. Now I'll say, if Ted were here, he would undoubtedly point out that when they joined Rogers, both Ron and Colin had full sets of hair. So they've undoubtedly gone above and beyond for Rogers. We will now proceed with the election of the 18 directors, all 18 of whom have been nominated and whose names are contained information circular. I now call for nominations.
Loretta Anne Rogers
I nominate the following persons for elections of directors of the corporation: Bill Birchall, Stephen Burch, John Clappison, Alan Horn, Peter Godsoe, Toby Hull, Phil Lind, John MacDonald, Isabelle Marcoux, Nadir Mohamed, David Peterson, Edward Rogers, Loretta Rogers, Martha Rogers, Melinda Rogers, Charles Sirois, Bill Schleyer and John Tory, and move that they be elected directors to hold office until the next annual meeting for shareholders or until their successors are duly elected or appointed.
Alan Douglas Horn
Thank you, Loretta.
Edward S. Rogers
Mr. Chairman, I second the motion.
Alan Douglas Horn
Thank you, Edward. Are there any further nominations? Given that there are no additional nominations, I declare the nominations closed. As the number of nominees is the same as the number of directors to be elected, I hereby declare that the 18 individuals nominated have been elected directors of Rogers Communications until the next annual meeting or until their successors are elected or appointed. On behalf of my fellow directors and shareholders, I would like to welcome John MacDonald and Charles Sirois to the Rogers board. We look forward to gain the benefit of their deep telecom and business experience and leadership in the years to come. The next item of business is a resolution appointing the external auditors of Rogers Communications. May I have a motion with respect to the appointment of auditors?
John Henry Clappison
Mr. Chairman, I move that KPMG LLP chair of accountants be appointed as auditors of the corporation to hold office until the next annual meeting or until their successor is appointed.
Alan Douglas Horn
Thank you, Mr. Clappison.
C. William D. Birchall
Mr. Chairman, I second the motion.
Alan Douglas Horn
Thank you, Mr. Birchall. Having held the motion, is there any discussion? Would all holders of Class A shares in favor of the motion, please raise their right hand.
Contrary, if any?
I declare the motion carried. With the formal business of the meeting concluded, we will now proceed with senior management's presentations with respect to the company's results and strategies. We will begin with our Chief Executive Officer, Nadir Mohamed; and then hear from our Chief Financial Officer, Bill Linton. Following these presentations, we will open the meeting for questions. I caution attendees that the presentations and discussion today may contain forward-looking statements. Such statements are based on assumptions as to the future and on management's current expectations and are naturally subject to risks and uncertainties. As suggested on the cautionary slide in the stream behind me, you should review Rogers' 2011 annual report, which is also available at the right side of the room and on rogers.com and the sedar.com websites. I'm now pleased to call on our Chief Executive Officer, Nadir Mohamed.
Nadir H. Mohamed
Thank you, Alan, and good morning, everyone. Let me start by echoing Alan's comments about Ron and Colin, both of whom have made significant contributions to Rogers for many, many years. I'd like to personally thank Ron and Colin for their terrific support and wise counsel. Now last October we announced the transition of CFO responsibilities from Bill Linton to Tony Staffieri. I'd like to take the opportunity to thank Bill who's retiring as a CFO at the conclusion of today's meeting. Bill has made a significant number of important contributions over his long tenure at Rogers. Under Bill and his team's leadership, we've significantly strengthened our balance sheet, delivered strong shareholder value and implemented best practices in financial reporting and controls. I'd like to thank Bill for his invaluable support and leadership. Thank you, Bill. Colin, we do have an applause meter, and I think there was a slight favor to Bill, but nobody's counting.
Tony Staffieri will be assuming the position of CFO after today's meeting. Tony has been working with Bill and me to ensure a seamless transition. I believe Tony is an excellent match for Rogers and he brings an experience set that is exactly what we require. Tony, welcome aboard.
Now at last year's meeting, I talked about our industry. I talked about the digital economy and what we're doing to drive it. This morning, I'd like to build on that theme. I'd like to talk about the move to digital in an all-IP world, what it enables and what we're doing to embrace this world for our customers. But first, let me say a few words about our performance. There is no question 2011 was one of the most complex and competitive we've ever seen. It was a year characterized by economic uncertainty, regulatory challenges and competitive intensity. This all translated into more moderated growth for us. I'm pleased to report that despite this backdrop, we'd delivered last year. We grew our top and bottom line, we held our operating and capital expenditures in check, we met our operating profit and free cash flow targets, we delivered $2 billion of free cash flow pretax. We returned significant amounts of cash to you, our shareholders. I believe we returned more cash as a percentage of equity and market cap than any other cable or telecom company in Canada.
We further strengthened our investment-grade balance sheet, and we continue to make strategic investments for the long term. These results demonstrate our underlying strength, durability and stability. Yesterday afternoon, we've released our Q1 results and here's what we reported to The Street. We attracted a significant number of high-value smartphone customers. We stabilized postpaid churn and the rate of decline in ARPU on the voice side. Both in Wireless and Cable, we saw that the top line growth has, in fact, softened. Despite the competitive intensity and its impact on our top line, we delivered solid margins in Cable and Wireless. Yet clearly on a consolidated basis, adjusted operating profit was down year-over-year. As I look to the balance of the year, I expect this competitive intensity to continue. And with moderating revenue growth, cost management is absolutely imperative. And at the end of Q1, we took decisive action to further manage our costs and we're focused on driving initiatives that ensure we deliver to our commitments. We have a disciplined plan of action. In the short-term, this means more aggressively managing our costs. It also means remaining absolutely focused on our strategic game plan. This includes strengthening our core business, generating new streams of revenue growth and investing in next-generation platforms. Today, I'd like to update you on our strategic priorities and the progress we've made. Let me start with our core business. First, we've made meaningful progress on the customer front by investing in our front line and training to further enhance service quality in our call centers, advertising all-in monthly fees to improve clarity in pricing and monthly bills, launched a flexible hardware upgrade program to give customers more ways to upgrade their wireless devices sooner. Offering customers more affordable roaming plans and real-time data alerts to give consumers peace of mind while traveling and by introducing a number of innovative new services to keep Canadians at the forefront of what's next. These are just a few examples, and we're committed to enhancing the customer experience, but clearly this is a journey not a destination, and we have much more work to do to get to the destination.
Second, we've made great progress on the network side. Last year, we took a substantial leap forward with the launch of Canada's first Long Term Evolution network. I'm proud to say that we drove the LTE ecosystem in Canada. And true to our DNA, we were first to market. Today, we have the fastest and largest LTE network in the country, and we will finish rolling out LTE across Canada's top 25 markets throughout the year. Third, we continue to manage our cost structure. In 2011, we kept operating costs outside of device subsidies relatively flat, and we maintain strong margins in both Cable and Wireless. And we use these cost efficiencies to invest in our customers, our networks and our products while returning cash to shareholders. At the same time, we advanced our quantum strategy and the premium quantum we offer across multiple platforms. We launched CityNews Channel, we expanded our Citytv brand out West and we offered live streaming of popular sporting events. We rebranded Sportsnet, including the launch of Sportsnet Magazine, and we announced an agreement to acquire an equity stake in MLSE, securing some of the richest and most sought-after sports content in North America. These represent strategic focused investments and they confirm our commitment to be the #1 destination for local news and sports in Canada.
We also continue to invest in strategic opportunities to drive new revenue growth. We launched an innovative home monitoring and automation service that lets you remotely monitor and control your home using your smartphone or your computer. We refocused and re-energized Rogers Digital Media. We delivered cost-effective IP solutions to Canadian businesses through Rogers Business Solutions, and we continue to invest in wireless machine-to-machine applications. Finally, we made significant progress on our long-term plan to invest in next-generation platforms to invest in the foundation required to deliver on our digital destiny. There is no question, everything is moving to the web. The digital shift is on and IP is the universal standard as we make this shift. IP enables the delivery of converged services across platforms and it makes the promise of anywhere, anytime communications a reality. Customers today want to mix and match hardware applications and networks. They want unique, personalized experiences at a price they're willing to pay. IP allows us to offer a full range of experiences seamlessly across multiple devices. It delivers global economies of scale, it brings cost efficiencies, improves our time-to-market and it will standardize how video, voice and data services are delivered. We've been executing a multiyear plan to evolve to an open all-IP standard to embrace and lead in the digital world.
On the Wireless side, our move to LTE enables the shift -- the shift to an all-IP network for both Wireless voice and data. This will allow us to introduce amazing and innovative new services much more easily. Our immensely popular Rogers One Number service is an IP-based services -- service that brings advanced voice communications together across networks and platforms. It allows you to redirect your mobile phone to your computer, transfer an active call from one device to another, send text messages, make video calls and listen to your wireless voicemail all from your laptop. And this is just the beginning.
We're making similar moves on the Cable side. We're on a 2-year journey to move to an all-IP video delivery network to deliver TV over IP using global standards. Think about it as one big pipe into the home; a pipe that allow consumers to access any type of content and entertainment, whether it's broadcast, on-demand or user-generated. In the past, you'd watch the World Series on broadcast TV and catch the highlights on the late-night news. In the future, you'll watch the broadcast on the mainstream while pulling up stats and following tweets from players on a companion screen, while controlling the entire experience through your tablet without requiring separate boxes. In the future, your TV and your computer will be one and the same. It's truly an exciting time for our industry. Our customers have an insatiable demand to engage, to interact, to connect to what matters most anywhere, anytime and it's our job to bring these networks, applications and devices together in a way that's easy, seamless and reliable. We've taken a number of steps to do just that. We've introduced innovative data sharing plans, plans that let customer share data from the smartphones and other mobile -- with other mobile devices. We've enhanced our most popular high-speed Internet plans, plans that offer faster download speeds and higher monthly allowances. We've launched NextBox 2.0, a suite of new features, including a superior program guide, Whole Home PVR and live streaming within the home. We've introduced light TV on your tablet, making it easy for you to catch the news while sitting on your porch or cooking breakfast in your kitchen. We're digitizing all of our Rogers Media content, making it available across every platform. We already deliver a great Internet experience, and we'll make it even better as IP networks, applications and services converge. We will quickly integrate new technologies and embrace new business models. We'll continue to make the right investments and the infrastructure, the services and the tools to be the best; to embrace and lead in the digital world and to help consumers and businesses seamlessly connect to what's next.
In closing, I would like to thank Alan and our Board of Directors for their support. I would also like to thank our 30,000 employees for their incredible dedication; our customers for their business; and most importantly, each of you for your support and continued investment. Thank you.
Alan Douglas Horn
Thank you, Nadir. And I now call on Bill Linton, our Chief Financial Officer, to step up to the plate once more.
William W. Linton
Thanks, Alan, and thank you, Nadir, for those kind words. Good morning, everyone. What I'll do in the next couple of moments is share a brief overview of our 2011 results and highlight our first quarter of 2012, which we announced late yesterday. From a financial perspective, 2011 was a very solid year for Rogers, especially in light of significant competitive challenges. At our Wireless and Cable operating units, we grew revenue 2% and 4%, respectively, with Media up 10% and revenues growing on a consolidated basis to $12.4 billion. Wireless data revenue, a key growth driver, was up 27%. At the end of 2011, data represented 35% of Wireless network revenue and now represents a revenue stream of well over $2 billion. We had good success from our focus on operating expense efficiencies, which help to offset the increased smartphone subsidy investments. And as a result, we were able to drive adjusted operating profit growth of 2% and maintain strong consolidated margins of 38%. On the bottom line, adjusted net income was up 4% to $1.75 billion, with EPS up a solid 10%, reflecting the accretion of from our share buyback program. In total, we generated $1.95 billion in pretax pre-cash flow. That strong cash flow enabled us to increase the dividend by 11% and buy back $1.1 billion of Rogers shares, in total, returning $1.9 billion of cash to shareholders. We also continued to refinance borrowings, lowering our overall cost of fixed debt while remaining within our targeted leverage range. So overall, healthy financial performance and we continue to have a very strong balance sheet.
Now looking at this next slide, here we show our adjusted net income and earnings per share over the past 5 years. That there has continued to be consistent growth in net income despite the slowing in top line growth speaks to the cost control initiatives that have been put in place. What's interesting to note is how EPS has grown at a faster rate than the underlying net income over the same period. And this accretion to the rate of growth on a per-share basis is the result of our share buyback program over the past few years, during which we reduced the shares outstanding by 22%.
Looking at this next slide, here we show the growth in our dividend on the left, while on the right you can see a bit more of the specifics of the significant share repurchase program that we've executed on over the past 4-or-so years. The combination of these dividends and share buybacks has resulted in a very significant return of cash to our shareholders. And for 2012 as you saw in my first slide, in February of this year, we increased the dividend by 11% to $1.58 per share. And on the same day, we announced that our board had authorized the repurchase of up to an additional $1 billion of Rogers shares during 2012. And to put the previous slide in perspective on this slide, you can see that in 2011, we returned more cash to our shareholders in the form of dividends and buybacks as a percentage of equity market cap than any other Canadian cable or wireless company. Moving from equity to debt, this slide simply lays out Rogers cost of debt over the past 6 years. During that time, we have redeemed $4.5 billion of primarily higher-cost, U.S. dollar-denominated debt, refinancing it with investment-grade Canadian dollar-denominated notes totaling $7.3 billion. Not only has the coupon cost of the debt come down by 176 basis points, but we have been able to reduce our exposure to complex and expensive derivative instruments related to hedging activities at the same time. On our current level of borrowings, that's an interest saving alone of well over $100 million per year. This has contributed to the strength of our balance sheet, provided greater financial flexibility and enabled greater returns to shareholders. Behind me now are a few highlights of our first quarter 2012 results that we reported late yesterday. As Nadir mentioned, it was a quarter of good postpaid wireless subscriber additions with continued strong smartphone sales. We also stabilized postpaid churn while slowing the rate of decline in voice ARPU for the third straight quarter. However, we did have a softer rate of top line growth than we would've liked, reflective of the continued intense wireless competitive environment and a slowing in the rate of growth of wireless data. At the same time, competition heated up at cable as IPTV became more widely available and the ad market remains slow at Media. So we've accelerated a number of cost-reduction initiatives aimed at offsetting, as much as possible, the top line pressures. We took some decisive action late in Q1, and we'll continue to do so as required to protect our margins and cash flow. And to wrap up on this slide, we briefly highlight the financial strength of Rogers today. In addition to the roughly $1.6 billion of after-tax free cash flow we expect to generate in 2012, we have investment-grade ratings from each of the major rating agencies, and we have a fully committed $2.4 billion bank facility, of which $1.9 billion is currently available. We also have a conservatively leveraged balance sheet at about 2.3x net debt to operating profit. We have no near-term debt maturities, and our dividend payout ratio is at a very manageable 50% of free cash flow. I'll conclude by saying that Rogers is in a solid financial position that affords us flexibility and enables us to both fund continued growth into the future and return significant amounts of cash to our shareholders. Thank you for your attention.
Thank you, Bill, and thank you, Nadir, for your presentations. As Nadir mentioned, this will be one of Bill's final acts as the Chief Financial Officer of Rogers as he retires from that position after today. Over the years, Bill has served as the CFO of Rogers Cable, the CFO of Rogers Wireless and came back to Rogers late in the year 2005 with the acquisition of Call-Net. He has served as CFO of Rogers Communications since that time. Bill has made a huge difference at Rogers, going back almost 30 years. So again, I think it would be appropriate for you to join me in thanking Bill for his great contribution.
Now some people might comment that unlike Ron and Colin, even after 30 years here, Bill still has a fairly full head of hair. In fact, maybe even a little bit more. But Bill would like me to point out that when he joined Rogers he was actually 6 foot 3. I would also like to congratulate Tony Staffieri on his new position, and welcome him to the Rogers family. I will now open the meeting for any questions from shareholders. Also note that Rob Bruce, President of the Communications division; Keith Pelley, President of Media; Edward Rogers, Deputy Chairman and Executive Vice President; and Tony Staffieri are all here with us and are available to help address any questions that you might have. If any shareholder has a question, please identify yourself as either a shareholder or proxy holder. And because this meeting is also being webcast, please be sure to wait until a microphone is handed to you before asking your question. Are there any questions from shareholders?
Yes, Ayno Ader [ph]. I'm a shareholder. And my main question is, today, I've seen Apple making a small fortune. And I know you and every wireless carrier is subsidizing these iPhones. And I'm wondering why are they doing that? Like, if the people want to buy those iPhones that are made in China by child labor, why should Rogers subsidize these customers that are buying these phones that got very little morals that are buying these Apple iPhones? If they want these iPhones, why not make them buy these iPhones?
Alan Douglas Horn
Okay. Nadir, do you want to?
Nadir H. Mohamed
It's a great question. Very topical, obviously, with the amount of smartphones, and in particular, iPhones, that we've been loading on our network. I think the reality is when we look at smartphones -- and iPhones is an example of it, but it applies generally. What we do with our customers, we give them a choice. They can buy the device and pay for the device themselves or they can actually sign on with us, and we'll give them a subsidy if they sign on to a contract. So there's a bit of the relationship that says, part of the reason for giving a subsidy is you end up having a customer that's committing to stay with you. And obviously, we're focused on making sure they stay with great service. So there is a trade-off that's involved.
Yes, I have another follow-up question. And I'll point to RIM as an example. I'd like -- I don't understand how buying back shares as a shareholder does me any good. I'll use RIM as an example. When RIM bought back their shares of $60, I don't know what good it does to the people that own RIM today at $13. If RIM would have paid them a dividend at that time, at least they would have had a -- had enough to go out and have a Starbucks coffee.
Nadir H. Mohamed
Also a great question because one of the things that Bill referred to is how we use our capital. And to your point, I think one of the things we feel particularly good about is our track record on dividends. Over the last 3 years, and in fact longer, we've actually growing dividends every year. And frankly, not to speak for the board but working with the board, we have a capital policy that's very sensitive to one of the things we want to establish and have in the last few years is the consistent track record of looking at dividends as the first way, if you will, to reward our shareholders in terms of payouts. We use share buybacks as an opportunistic thing. We've been doing a fair amount of it in the last couple of years. In our guidance, we've talked about share buybacks up to $1 billion for this year. But frankly, it's never intended to get in the way of what are smart things to do. So when we look at our business, our first commitment is to build the best networks in Canada. So there's no confusion. That capital -- and the board's very supportive to invest in the business. Then we'll look at, once we've done that, dividends is another part of it, whether there’s acquisitions, will be another factor, and we've been quite upfront. If there is an acquisition that makes sense, our buyback program will be something that would look to downscale to support any purchase. So it is in that context that the buybacks fit in for us.
Yes, but you're still missing my point there because like I said before, you said that enhances the shareholders' value. I don't get how it does. And if something does happen like in RIM, which is on the verge of going bankrupt, even though the backdoor [ph] shares back at $60, it doesn't do the RIM shareholder any good that's holding the shares today if they'd have paid more of a dividend at that time. And so if you have an excess cash and you're not taking -- if you're buying another company, I understand, but just to buy back your own shares rather than to give the shareholders more dividend, that's what I'm saying. I believe more shareholders would rather have dividend if you've got excess cash than to buy back shares.
Nadir H. Mohamed
I appreciate your point.
Alan Douglas Horn
Are there any further questions?
Okay. Well ladies and gentlemen, if there are no further questions, thank you for attending today's meeting of your company. We now invite you to join our directors and members of senior management for an informal luncheon reception, along with demonstrations of several new Rogers products and services. Please follow the direction of staff to the reception hall across the foyer as you leave this auditorium. We look forward to seeing you there, and that concludes today's meeting. Thank you very much.
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