Q3 2021 Superior Plus Corp Earnings Call
Ladies and gentlemen, thank you standing by your conference calls you have to get them on materially again, Thank you for standing by your.
Your conference call you forget momentarily. Thank you.
[music].
Yeah.
Thank you for standing by and welcome to the Superior plus 2021 third quarter results Conference call. At this time, all participants are in a listen only mode.
After the Speakers' presentation there'll be a question and answer session to ask a question at that time. Please press Star then one when you touch tone telephone.
I would now like to turn the conference or to your host Mr. Rob Darren Vice President Investor Relations and Treasurer, Sir please begin.
Thank you Valerie.
Morning, everyone and welcome to superior prices conference call and webcast to review, our 2021 third quarter results joining on the call today are lifted.
President and CEO, Beth summers executive VP, and CFO, and Darren Hribar, Senior VP and Chief Legal officer, today's call is being webcast and we encourage listeners to follow along with the supporting presentation, which is also available on our website.
Earnings call.
I will begin with their prepared remarks, and then we will open up the call for questions.
Before I turn the call I'd like to remind you that some of the comments made today maybe forward looking in nature and are based on current expectations estimates judgments projections and risks.
Some of the information provided refers to non-GAAP measures. Please refer it into periods third quarter MD&A posted on SEDAR and Superior's website yesterday for further details on forward looking information and non-GAAP measures.
And we encourage listeners to review the MD&A as it includes more detail on the financial information for the third quarter as we won't be going over each financial metric on today's call. This will allow us to move more quickly into the question and answer period I will now turn the call over to Lou.
Well, thank you, Rob and good morning, everyone.
Joining the call everyone of these things safe and healthy I'd like to start the call by thanking our entire superior plus team proud of our team's commitment to safety reliability, we continue to provide essential goods and services.
Servers, where they're our employees.
Under this yield and working remotely.
Making good progress and their superior way forward growth plan through acquisition continues to improve and arguably growth.
In the past 12 months, we've announced and completed 625 million of propane acquisition, including the acquisition of <unk> propane.
In 2021, we have announced or completed approximately.
$600 million of acquisition was just over 30% of our $1 9 billion target set for superior way forward acquisition initiative. So we're well on our way to achieve our acquisition target through 2026.
We have a proven track record of executing on our synergy targets for acquisition and we've targeted 25% improvement in the EBITDA of businesses, we acquired by optimizing the operation devising the superior way of previous platform and leveraging our larger scale as we are reducing redundant operating and back.
Office functions.
And on September 23rd we've announced that we received a request for additional information from the FTC related to our proposed acquisition of the company that makes up <unk> propane in California, We must provide this additional information to the authorities before we're able to close the transaction.
And so curious environment U S. Weaken later maturities are taking more time.
Viewing more information on the energy related transaction before making decisions, which is pushing out the timing of the deal.
Due to this continued review we anticipate the closing of <unk> incurred in the first quarter of 2022.
We still expect to finish within our adjusted EBITDA guidance range of $3 $90 million to $420 million.
'twenty, one even though the closing of camp has been delayed which demonstrate the resilience of our business and the positive impact of the.
The efficiency improvements in sales and marketing initiatives taken as part of our superior way forward plan.
On the financial and operating results, our third quarter results were modestly higher than the prior year driven by improved sales volume and average margin as well as a decrease in corporate costs. The increase in sales volume and margin were offset in part by higher operating costs, particularly in the U S. Due to.
The recent acquisition.
Third quarter is seasonally lowest quarter due to the lack of heating demand in many of our region. As a result, the increased operating cost from acquisition recently completed more than offset the increase in gross profit to the bottom line is you end up with the full cost once you have less volume than those supported too.
Two and three so therefore, it's more difficult.
Profit, which comes in quarter, four as well as quarter one of every year.
For reference to the third quarter adjusted EBITDA of $13 million represents approximately 3% of our annual adjusted EBITDA based on the midpoint of our 'twenty one guidance.
In the third quarter U S propane results decreased compared to the prior year quarter, primarily due to the higher incremental operating expense related to acquisition, partially offset by higher average margin and the higher sales volumes related to do incremental contribution from acquisition.
U S propane EBITDA from operation in 2021 is anticipated to be higher than 2020, primarily due to the impact of acquisition completed in 2020 and in 2021.
It fits on the superior way in the digital workforce optimization initiative and realized synergies from acquisition.
The depth of our paint result for the third quarter were modestly lower than the prior year quarter, primarily due to the decrease in benefits from the U S.
Truly offset by an increase in average margin and volume, we're seeing modest improvement in commercial and wholesale volume.
Propane distribution business.
<unk> 19 restriction come to new to be lifted.
Canadian propane EBITDA from operations 2020 was anticipated to be lower than 2020, primarily due to the decrease in average unit margin as well as reduction in you see a different view benefit we're optimistic more than COVID-19 restrictions will be lifted in the fourth quarter and for the coming 2020.
The two year, allowing our commercial customer to operate on the hiring capacity, which is expected to increase propane demand when COVID-19 is more behind us I'll now.
Now I'll turn the call over to Beth.
The financial resort results and more detail.
Thank you Liz and good morning, everyone could you generated third quarter, adjusted EBITDA of 13 million or $2 2 million, a 20% increase over the prior year quarter, primarily due to lower corporate costs, partially offset by lower EBITDA from operations in the U S approach.
Third quarter net loss from continuing operations of $35 9 million, a net loss of $26 1 million in prior year. The primary driver to the higher net loss with the increase in selling distribution and administrative costs and a decrease in gains on derivatives, partially offset by the increase.
Gross profit decreased infection.
Our consolidated.
<unk>.
Amcs before transaction and other costs.
For the third quarter was negative $4 8 million.
Second 9 million increase compared to the prior year quarter, primarily due to lower interest expense higher adjusted EBITDA lower cash taxes.
Turning now on the individual business results.
EBITDA from operation with negative $7 8 million.
Decrease of $3 8 million from the prior year quarter, primarily due to higher operating costs, partially offset by higher sales volumes and higher average margins.
Residential and wholesale sales volume were consistent with the prior year quarter, primarily due to acquisition offset by the impact of more flatter average weather as measured by degree days across markets, where U S propane operations with 17% warmer than the prior year quarter.
<unk> sales volumes were 13% higher compared to the prior year quarter, primarily due to incremental volumes from acquisition and the easing of COVID-19 restrictions.
Margins were 37, nine currently carry which is 4% higher than the prior year quarter. This is primarily due to our continued focus on growth of high margin propane customers, partially offset by the impact of the stronger Canadian dollar on the translation of the U S denominated gross profit.
Customer mix.
Operating cost increased by 20% compared to the prior year quarter due to acquisition.
Partially offset by workforce optimization initiatives realized synergy and the impact of the stronger Canadian dollar on U S denominated expenses.
Canadian propane EBITDA from operations of $21 2 million was consistent with the prior year quarter as higher sales volumes and higher average margins were offset by higher operating costs.
Residential sales volumes were consistent with the prior year quarter and the impact of acquisitions completed during the first quarter was offset by warmer weather.
The average weather across Canada for the third quarter as measured by degree days with 15% more than the prior year.
Commercial sales volumes were also consistent with the prior year quarter as increased demand from the oilfield or of our mobile camp businesses were offset by declines in some other segments, such as retailer or agent demand relating to the easing of COVID-19 restrictions.
Wholesale propane volumes were 7% higher compared to the prior year quarter due to increased demand in the California market related to the easing of COVID-19 restriction and to a lesser extent sales and marketing efforts to increase third party spot price wholesale propane sales.
Average margins were 9% higher than the prior year quarter due to the timing of carbon offset credit sales and the impact of weaker wholesale propane market fundamentals in the prior year quarter.
Operating cost increased by 19% compared to the prior year quarter due to the impact from me for AWS benefit and.
And in the prior year.
Ws benefit with higher it is a significant impact on customer demand in the early stages of the pandemic.
Lastly, the corporate results the adjusted EBITDA guidance as well as leverage the corporate operating costs were $1 million. This was a decrease of $6 1 million compared to the $7 1 million in the prior year quarter.
This was primarily due to lower long term incentive plan costs related to share price declines in the current quarter.
Interest costs decreased 21% compared to the prior year quarter due to lower average debt levels and lower average interest rate.
Superior total net debt to adjusted EBITDA leverage ratio for the trailing 12 months ended September 32021, with three five times, which is at the higher end of Superior's long term range target of three to three five times.
We're confirming our 2021 adjusted EBITDA guidance range of 390 million to $420 million with a midpoint of $405 million, even though we had previously expected camps, which contributed to the business in 2021 for the remainder of 2021, we anticipate average weather to be consistent with.
The five year average for the U S and Canada, and wholesale propane fundamentals to be consistent with.
With the first nine months.
With that I'll turn the call over to Q&A.
Sure.
Thank you.
Ladies and gentlemen.
Please press Star then one on your touch tone telephone again to ask a question. Please press Star then one.
Our first question comes from David Newman of Desjardins. Your line is open.
Good morning folks.
Morning can you hear me okay.
Okay.
Looking at camps here I understand you know what the FCC has one request, but maybe just the nature of the second request here.
And if we're modeling this up I mean, obviously camps as it can be kind of in the wheelhouse of the the winter should we be modeling a mid quarter or end of quarter beginning of quarter.
Obviously it'll have.
And impact on the on <unk>.
Oh, absolutely I think we will start with rebar of FTC is there I mean is there.
Our chief legal officer here these are new waves of that.
Daily basis, Thanks, Luke.
Thank you.
As we announced previously we received a second request.
September 23rd.
Since that time, we've been working cooperatively with the FTC and caps has as well.
As they conduct a review of the transaction.
As we've worked through that there's a fair amount of data that we have to provide.
Determined what the custodians are worked through that process I think that's where we are where we sort of find ourselves.
Thinking that look by the time, we get all of that material submitted.
Second request is going to take us into closing sometime in the first quarter.
And if I'm modeling this up to any any any sense of what we should be thinking about where where do we place the close.
Hard to predict I would say.
Yes.
Maybe I'll just explain for us what's happening in this board call or is that.
Our market position in California, as we've been with Cam very low in retail.
Question from the D C R.
Non existent, but doesn't the floods, so yeah, because youre not bumping up against any market share here no perfect dull or whatever they use for their index I mean, youre clearly your market share is not youre not dominating our conscience had the concentration in that market right Luke.
No I think what's happening is they receive orders from Washington that would seem to us oil and gas should be with you. This it can request the retail is pretty clean venue, though not much.
Going there with a lot.
A lot of competition and we're not sure at all the things that wholesale is more complex for them to understand who would counter deals sales supplier aware that said it is complex and there is a lot of suppliers as it comes from Canada, or other wholesalers and I think that all areas where they're drilling.
Or to understand this I guess they are preparing themselves for ultra tier acquisition.
Propane world so not to worry much about what's going on in the overall because we know the numbers are all good enough to just.
But it's something though that we have to do.
To your timing.
And I'll ask Beth if she has a better view of the timing.
Yeah, I mean, I wouldn't say I have a better view of the timing of that would be consistent but it's always hard to anticipate from a regulatory perspective, what the timing will be for sure.
I would say maybe to be conservative.
I assume it towards the end of the quarter or at the end of the quarter. Okay.
Vincent.
Probably the way to think about it is Q1 would likely generate in the range of $50 million U S. Our 15, one five.
Got it okay, very good and switching gears over to this environment, which is.
Absolutely Crazy I think the propane prices are the highest since 2014, if I look at it.
And just kind of wondering a couple of things, obviously exports going out of the country I know that you guys contractor supply in the spring.
And does that get you through the winter and and how much wiggle room, you have on rack plus plus in other words do you believe your taxi price up in this kind of market and just the speed at which you can get that through maybe just to get just said the dynamics of the market right now.
I'll take the first part of it has to do with our markets in Bev can take the second part of this too.
Physician for the winter where supply so we are.
For us window as you look at our segments and customers, it's a pass through.
So we expect to be paid for inflation and we expect to be paid and we will be paying for added value service. So the margins.
I was going to be as good as ever on what we sell.
And then from a wholesale and then from a supply that can be.
What's happening there.
Yes could you talk about just the general market fundamentals.
So in the U S. I think starting to drive some of that higher pricing is first off it does tend to be linked to overall commodity prices in particular creative so as crude has been increasing over the last three quarters. We've also seen propane increasing a fair bit.
With the overall market.
Actually we've seen some quite a bit of a return to normal as a percentage of crude where for a period of time. It was down we're around 50%, 55%, whereas creeping up.
Back to that 70%, which is probably more of a historic percentage of crude tightened pricing right.
And actually part of the drivers from a supply perspective, the U S inventories are low.
But if you look at it where in the U S where theyre low differs so they tend to be quite low.
From the three year average when Youre looking at the Gulf Coast, which is where exports are occurring.
When you look to the markets. We're in so if you think about the northeast actually inventory levels are okay and this isn't to production. There is a lot of production and production is higher.
Look at it somewhat on a year over year basis. It is linked to the exports driving it and that does have an influence on the overall pricing now Canada is a little bit of a different story because the increase in Canada is getting linked to that overall commodity increasing like from an inventory perspective, its actually quite healthy.
A little lower than it was last year or below last year, but it is higher than the three year average for inventory levels and it does tend to east inventory levels are higher.
Then we would have seen in previous years, which I suspect are just people mitigating some of that risks frontline five.
See some higher there so supply the supply sitting where.
We need it from our perspective getting back to your question around the contract year Youre correct. Your contracting year is from April to the end of March and we're comfortable we have all of our contracts in place and we have all the supply that we require.
Contracted through the year. So we're comfortable that we have what we need and that we'll be able to get it when we need it for that security of supply for our customers excellent and it looks like Washington, and Mike might not be so quick to back Michigan on this line five dispute which is good to see Phil I'll hand over the line now thank you very much.
<unk>.
Thank you.
Comes from Ben.
Isaacson of Scotia Bank your line is open.
Thank you and good morning, everybody.
Luke and Beth just three non operational questions first.
I believe you met with <unk>.
<unk>.
Recently.
Can you just highlight how that went and whether there was anything interesting capacity.
Yes. It came to visit this week. So we've had a good session.
I'll go over what we have in the public markets under a five year plan.
Or acquisition to 25% improvement in those 18 deals we've done.
We're extremely.
Chris.
Sizes.
We met the management every one of my direct reports.
People during the afternoon their daily walked away, saying while to transparency. The open the clarification. The first time, we met in person you were really really agree with you and Chris and.
<unk> needs to be a good anchor investor and the read there are now not to have any glade to go further than their positions in the road.
These are an anchor investor that's their position that's what they're convinced us they wanted to do.
So good relation.
As we grow they intend to be there.
Please in the lines of business.
And has been.
We like our market position and what we've been able to accomplish in the last few years.
I would say extremely impressed the one big core business they sold the rest.
What they're doing now they're investing diversifying their family a Monday.
Taking a position that different companies like did to us.
So look.
Just to reiterate what is there any.
A discussion about a board seat or seats and I just wanted to make sure I understand clearly they do not intend to go above 19 nine is that right.
Yes, the board sequencing to discuss.
At this stage it might come later, but it certainly wasn't discussed some form of position.
Been an anchor investor certainly don't intend to.
Thanks to a majority position in the company and one that I really if theres anything else you can be more precise on that.
I think you just alluded to like under Securities law and under our SRP then they wouldn't be able to go beyond 5%.
And so I think their actions have been completely consistent with that and data staying a support of anchor investor.
Great. Thanks, My second question is back to campus.
I know that.
The FTC.
Our review is focused on wholesale and I believe FTC doesn't look at deals under $100 million. So with that context can you talk about whether this review has changed or evolved your strategy in terms of what.
What you do in the future from a consolidation viewpoint.
No as you know this deal is over 200 million. So it was the deal they have to review.
I personally think.
You asked a question I don't think we'll have any issue buying retail business between the states.
Okay.
We are positioned.
Sure, it's a new person.
Independent of <unk>.
Position is good good good if we do deals that are small enough that we don't even have to go to them, but over that we do and we will and I think today, what we've learned as we expect when we do deals.
Two more than you'll do a lot of the.
Search like they are doing now to make sure the northern oil and gas remains competitive.
It's a long way to go before.
Real issues.
Sounds like I said earlier it is complex because when you think of Uber, who supply us with work.
Kent suppliers to 14 different states and they don't have a big.
Position.
Those proteins are important these days.
California is another.
Even that much but it's.
So you kind of have a.
Good feeling that as well.
Got it.
The threshold that they have to review businesses.
So no I didn't.
So I think that like.
Somebody has to leave with is willing to do what we've done acquisitions, but I would expect that we dug into the tone of the business is going away.
Right.
Thank you and just my final question, we've talked in the past about customer churn in this environment of high propane prices I'm. Just wondering do you have any new data points or color on the rate of that turn have you seen customer switching out switching it to superior.
At a higher rate recently.
Pascal.
Yes, there's certainly don't switch during the winter time.
Absolutely history would show that more referring when the price goes up.
And kind of deal person leaves us.
No experience.
I'm assuming with.
With the.
Work, we do with the businesses.
I don't think it will be as.
I think as other years.
We're a couple of reasons.
It will be less switching due to COVID-19 globally.
And I think most importantly.
Everything's, calling nurse's going up like Crazy.
If you take the commercial and industrial social very big get it when you take our residential customers.
With time to look at Walmart price supplier.
It went up to 2012 or more.
Florida.
But then they go to the <unk>.
Filled up their car and they are aware of surprises installed everywhere. So.
Hey, Mike.
The less pressure on the turn.
We do know that turns because the more we get more new customers, we lose lora silver. So there is a cost issue too and then out of that not ideal but.
I don't know with all the price residential usually on that score.
Our wireless charging we still are I think they are today because it goes to the things where they are starting to see Oh, yeah. That's like endear everywhere. The newspaper radio every small town you know everybody talks about that so hopefully that doesn't create the type of turning the story was embraced them very hard.
Sure.
C, but it was a cost to in and out but at the end, we will probably end up at the same place with other competitors are the same position.
Anything you want them to them.
I think I think it is.
It's one leesburg.
Reiterating everything you said it fundamentally will have a better sense what.
What the impact potentially would be once you get into the winter months. So it'd be more of it in April April May I think we would have a better sense, but that being said I mean, the reality is they still need the propane for us.
Those that are doing it because the sticker shock, they're going to change from one to another so we'll be picking up as well depending on those attrition levels. So I think net net to the business I think we're comfortable from a volume perspective, but as Luc said it could have some impact on margin just because you're new.
<unk> margin is different with introductory pricing et cetera.
Our retained customer.
That makes sense, okay, great. Thanks, so much guys.
Thank you.
Question comes from Joel Jackson with BMO capital markets. Your line is open hi, good.
Morning, everyone.
Hello.
A few questions I'll go one at a time.
Just first of all in 2021 bridge to be able to hold the midpoint of the guide with the guidance range excuse me despite camps pushing out into early next year can we talk about collab.
Collaborate on what the offsets were in terms of better fundamental <unk>.
Benefit better volume than you thought that was able to offset the $10 million.
Yes.
A few color and this will add.
To complete the answer for you.
We're certainly getting good retail consumer residential.
As eventual growth in Canada, and our marketing and sales.
Under humming well, our digital approach in connection with those customers.
<unk>, that's known for when people look at propane so very good to Lubbock, all 6000, a year. So we're we're having in that regard we have been.
Very careful though because we've always been and you've seen some cost reduction and improvement.
The overall company.
Certainly.
To make the same margin.
Charge for inflation is there more than Nevada.
Cover inflation with pricing this would go on to lose any benefit from.
Pricing from the service will render to customer.
And I'm sure you all get us on the call that a quarter or two and three with our acquisition. We made went up with way more cost.
It was a 20%.
And 5% of their sales so.
Great.
Then you get to a quarter for quarter, one and you have all the sales coming so you're rebalancing appropriately.
The profitability of the over a year so.
There might be additional point Vincent you can see them.
I'd say, one way of thinking about it is.
Part of it is from where our expectations were Q3 with an over performance.
So that would have been above where you originally expected to see I think from a pricing perspective, they were quite high when it comes to the carbon credits again not in.
Any range of sort of two to 5 million, but that being said that pricing was higher so there's a bit of a pick up there.
From an allocation perspective that would be a little different and then the reality of wage subsidy potentially a little higher than we might have originally.
So when you look at that over performance in the reasons that Luke.
Living too.
Roughly that $8 million to $10 million range, we were expecting from cats. This year. When you look at all of the various pieces, we're still comfortable that will be in line now with the guidance of that 490 to 520.
393 numbers are preliminary.
That would be really good.
Let's see.
Sure.
Absolutely.
Yes.
Okay and then so if we look at 2022 with kind of bridge, what we could see in 2022, a lot of moving parts, obviously, I guess I'll get some more recovery in volumes.
Hopefully you'll have the camps deal done in early.
Part of the year, Jon Zaffino win maybe.
Maybe some other tuck ins you might do.
Won't get maybe the same level of CW benefits hopefully for society.
We don't go down through Covid.
You walk us through what 2022 could look like trying to bridge the difficult Pony.
So the backbone of Torrey position continued to be very strong that's one thing.
With me it would be.
As you would be conservative on Cam because we don't control. The exact dates so I would say too bad we're missing the January February or parts of the quarter one goes away.
The Cotwo from the government of course is gone and then you have the return of Covid and commercial industrial and kind of the nuts fully returning.
The Greenfield.
Third our way then the return of Covid, we still owned was customary those tanks and the volume of commercial industrial is not what it was prior to Covid and I don't think it will come back until 2023.
Big picture I.
All the points of that was mentioned.
I mentioned in the.
The two best for additional yeah, I think you've covered all of the key areas that will be impacting us in 2022 from an actual guidance perspective.
Issue guidance for 2022, when we issue our Q4 results, which would be consistent with what we've been doing in the past.
And just on this my last question you also relates back to a question that's been asked a little bit earlier. So you don't you think your pipeline for tuck ins acquisitions remains the same despite.
Some of it coming from the FTC now does this mean, though that you need to budget now for a longer approval period. So your tuck in program has a bit of a delay.
I guess right now because you have to assume that tuck ins will take longer to get approval. If that makes any times, what I'm, saying, yes to your question but.
We've talked to we would do $1 9 billion by 2026 will be they've done a third of that so what's happening right now for multitude of reasons from entrepreneur independent another in the propane industry.
We thought it would do to <unk> through the year.
More than that this year nearly doubled in that so I think we will do more than that next year or two but as you know we don't put that in our guidance, whether it be coming to what size of EBITDA than the synergy comes a year. After so we're not prepared to put any acquisition in the forecast because we don't.
Has led the market.
And then find out that.
Takes more time or the dealers.
These small midsized or larger.
The larger side. So net net I think we're going to do maybe not as much as this year, but more than the average of $2 53.
I think we're gonna be above that yes.
The only other thing I think I'd add is that.
I think in terms of the timing on <unk>.
Future transactions I think with caps, it's a bit of a unique situation with the with the wholesale business.
Different position most of the retail.
Acquisitions that we've done are pure retail and highly fragmented market, where you've got.
Similar to California.
Very little overlap and then.
Even where there is there is a.
<unk> number of.
Our competitors.
Some of those places its 12 13 competitors. So I don't think you're going to see that and then theres just the.
The fact that when Youre looking at these tuck in acquisitions.
They have to go over the threshold of $91 million or whatever it is in the U S. So there's not a significant portion of those that are at that level.
I don't think it's going to going to change how we look at that but certainly for something like cabinets.
It is going to cause us a little bit of delay.
Good point.
Thank you very much.
Thanks.
Thank you.
I'm showing no further questions at this time I would like to turn the call back over to Luke.
President and CEO for any closing remarks.
So I'd like to thank our management and employees are very proud of all of our accomplishments to date in 2021.
The action.
Continuous improvement.
Are there is the COVID-19, though we adjusted that.
It's quite quite extraordinary so.
The customer service.
<unk> again are good so and then there was just one quarter.
I feel very good that when the great position I think the quarter shows those a trend and the momentum that we have.
And it's really we need to take we losing.
It's up tenants.
In winter time, with this fourth quarter and we're talking about guidance.
We're pretty satisfied with them.
We're going to continue to do that.
So her company at any level, so small quarter, but the good trend in a good direction.
So thank you everyone to participate in our call.
Thank you ladies and gentlemen.
Today's conference. Thank you all for participating you may now disconnect have a great day.
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Thank you for standing by and welcome to the superior plus 2021 third quarter results conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question at that time. Please press Star then one on you touched on telephone.
I would now like to turn the conference or to your host Mr. Rob Darren Vice President Investor Relations and Treasurer, Sir please begin.
Thank you Valerie good morning, everyone and welcome to superior prices conference call and webcast to review our 2021 third quarter results joining on the call today are.
President and CEO, Beth summers executive VP, and CFO, and Darren Hribar, Senior VP and Chief Legal officer, today's call is being webcast and we encourage listeners to follow along with the supporting presentation, which is also available on our website.
Earnings call.
Well begin with their prepared remarks, and then we will open up the call for questions.
Before I turn the call I'd like to remind you that some of the comments made today may be forward looking in nature and are based on <unk> current expectations.