Q1 2025 Telesat Corp Earnings Call
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Lee. Once again, please continue to stand by.
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Speaker Change: All participants, please stand by. Your conference is ready to begin. Good morning, ladies and gentlemen. Welcome to the conference call to report the first quarter 2025 financial results for Telesat.
James Ratcliffe: Our speakers today will be Dan Goldberg, President and Chief Executive Officer of Telesat and Andrew Browne, Chief Financial Officer of Telesat. I would now like to turn a meeting over to Mr. James Ratcliffe, Vice President of Investor Relations, please go ahead sir.
James Ratcliffe, Arun Seshadri,
Speaker Change: Thank you most. Good morning everyone and thank you for joining us today. Earlier this morning, we filed a quarterly report for the period ending March 31, 2025, on 4 on 6K with the SEC, and on CDR plus.
Speaker Change: All remarks today may contain forwardal statement. Chermisqui tell us that actual results make different materialism and results contemplated by the forwardal statement as a result known and unknown risked in uncertainties.
Speaker Change: for Discussion of No Rift, please see Telesat's annual report and updates filed with the SEC.
Speaker Change: Telesat assume no responsibility to update or revise these forward-looking statements.
Speaker Change: I will now turn the call over to Dan Goldberg, Telesat's President and Chief Executive Officer.
Dan Goldberg: Kate, thanks James and thank you all for joining us this morning. My opening remarks today are going to be quite short given we hosted an earnings call just six weeks ago when we released our Q4 and full-year numbers.
Dan Goldberg: on Pleas with Telesat's performance in the first quarter in both our Geo and our Leo segments. In Geo, the team continues to demonstrate disciplined execution in a challenging market environment.
and in Leo, we're making excellent progress with Telesat light speed.
Dan Goldberg: on both the technical and commercial funds. In addition to the agreements with orange and ADN that we announced earlier, and the term sheep with space Norway announced in March, we signed the significant multi-year agreement with Viasad in April .
just last month.
Biasad is a sophisticated satellite operator and service provider and is today the largest provider
Dan Goldberg: of Inflight Broadband Connectivity Services to the commercial airline industry and an important provider for defense applications, including to the U.S. government.
Dan Goldberg: As such, the Meaningful Commitment to Telesat light speed that they've made is a powerful and concrete testimony to the capabilities of the light speed consolation in the huge opportunity we have in the fast growing enterprise and government service markets. James Ratcliffe, Arun Seshadri, David McFadgen, David McFadgen,
Dan Goldberg: The last time we spoke, I said we believed our Leo Backlog at the end of 2025 would eclipse the 1.1 billion Canadian dollars of Geo Backlog that we reported at the end of 2024.
Assuming foreign exchange is more or less stable. [inaudible]
Dan Goldberg: We're at nearly 1.1 billion Canadian in Leo backlog today, and I'm optimistic we'll be able to secure additional commitments over the balance of this year, which would allow us to achieve our Leo backlog expectations.
Dan Goldberg: We have a robust pipeline of opportunities and strong momentum, and are very focused on closing additional deals. So with that, I'll hand over to Andrew, we'll speak to the numbers and more detail, and then we'll open the call up to questions.
Andrew: Thank you, Dan. Good morning, everyone. I would now like to focus on highlights on this morning's press release and filings.
Speaker Change: in the 4th quarter of 2025, Kelly Sutton, Report of Consolidated Revenues of 17 million.
Andrew: and just to the EBITDAF 67 million, and generated cash from operations of $139 million. We ended the quarter with $797 million of cash.
Andrew: For the first quarter of 2025, revenue is decreased by 25,000,000 to 117,000,000 from the first quarter of 20,000,000 forward.
Andrew: Operating expenses increased by 6 million to 53 million, and adjusted the EBITDA decreased by 43 million to 67 million. The adjusted EBITDA margin was 57.7%. I would note that the margin of energy or segment was approximately 74%.
Andrew: The revenue decrease for the quarter was primarily due to a lower rate on the renewal of a long-term agreement with an North American direct-to-home post-a-work.
Andrew: Well, the factors included reductions in services for CERC, they're the price customers, particularly an Indonesian rule of broadband program, a lower equipment sales for Canadian government customers.
Andrew: As usual, we break out the performance of a Leo and Geo segment, separately a Note 4 of a financial statement filed in Form 6K this morning.
Andrew: Interest expense decreased by 8 million during the fourth quarter and compared to the same period in 2024. The decrease in interest expense was primarily due to the impact of recovery purchases. Allowable to the impact of lower market rates and our floating rate, term loan.
Andrew: and just to note, our cumulative principal amount of diary purchases today is equal to 49 million US dollars, and it costs 459 million US dollars, and average price is just under 53 cents, the result will result in the interest savings of approximately 54 million US dollars annually.
Andrew: In the fourth quarter, we recorded again and far an exchange of two million, as compared to the loss of 68 million in the fourth quarter of 2024.
Andrew: On that last for the fourth quarter was 51 million compared to on that last of 52 million in the same period in the prior year.
Andrew: The variance was due to lower revenues and loss related to a change in the fair value of financial instruments, and offset with the impact of the year on your foreign exchange improvement, as I mentioned.
Thank you very much.
Andrew: Also, during the quarter, we completed the first two draws on their financing facilities for the governments of Canada and Quebec, just receiving $340 million Canadian dollars.
Thank you very much.
Andrew: In terms of operating expenses, excluding share-based compensation, we expect to spend approximately $110,000,000 to $120,000,000 on Telesat in light of the year as compared to $72,000,000,000 in 2024.
Andrew: In terms of totally just a deep attack, we expect to be between 170 million to 190 million on a consolidated basis.
Andrew: In respect to capital expenditures and has previously disclosed and discussed, we continue to expect 25 capital expenditures to mean the range of 900 million, 1.1 billion Canadian, which is practically over-rated to Telesat like to be.
Andrew: To meet our expected cash requirements for the next few months, including interest payments and capital expenditures, we've approximately 800 million of cash, a short term investment, and at the end of March, as well as 2.2 billion available on the reformed agreements for the governments of Canada and Quebec.
Andrew: At the end of the fourth quarter, the total leverage ratio is calculated under the terms of the amended senior secured credit facilities of 7.24 times. Teddy Satis and Compliance at all the covenants are a credit agreement unadventured.
Andrew: A reconciliation between our financial statements and financial covenant calculations just provided in the report we filed this morning.
Andrew: R6K provides the unauthored intern condensed consolidated financial information in the beginning. The non-current for subsidiaries shown are essentially the unrestricted subsidiaries with minor differences.
Andrew: So this concludes our prepared remarks for the call and very happy to now turn back to the operator and address any questions you may have. Thank you very much.
Speaker Change: Thank you. We will now take questions from the telephone lines. If you have a question, please express that one.
Speaker Change: You may can tell your question at any time by pressing start 2.
Speaker Change: Please press down one at this time if you have a question. There will be brief pause while participants for just a few questions. We thank you for your patience.
Speaker Change: A first question will be from Addison New from Deutsche Bank. Please go ahead.
Laura: Okay, this is Laura, Jonathan. I'm going to continue my question, and actually my question is about life to be outlook.
Speaker Change: So, back in late 2020, I think you put on some revenue ebba targets for my speech.
Speaker Change: including like 600 million around me in 2028 and the 488 down, and also like more than like 3 million around me in 2032 and
Speaker Change: and also do you think there are any variables that are much different than expected? And also what you might like to see that updating the framework?
Speaker Change: OK, thanks for the question. It's Dan. I'm not sure I heard.
Speaker Change: Everything, but I think I got the gist of it. So we have published some projections for light speed, revenue, EBITDA, CapEx, and the light.
Speaker Change: as part of an investor presentation that we did. That's available on our website. And, yeah, that's still very much our plan, our current thinking in terms of our expected performance.
in terms of...
Variables,
Speaker Change: I'd say that things are still very much intact in terms of our outlook regarding our performance.
Speaker Change: and our partners are executing well across all the various work streams that...
We have, and things are...
from a budgetary perspective, a scheduled perspective or...
Speaker Change: Proceeding Consistent with our Expectations, and then the market itself. I think if anything and we've probably referred to this in recent calls from our perspective
Speaker Change: Everything we're seeing out there in the market, reinforces our conviction that Leo is sort of ascendant in the market.
Speaker Change: and I think I said on our last call that in addition to the verticals that were focused on, like, you know, backhaul for terrestrial wireless operators.
Speaker Change: Maritime Aviation Arrow, probably the one vertical that we're even more bullish on than we were when we put the plan together, it's probably around our government services.
Speaker Change: particularly in light of some of the geopolitical shifts that we've seen over the last, you know, six months or so. And so
Speaker Change: Yeah, I think our thesis remains intact, and while there always changes out there in the environment, I think on balance, if anything, we have greater conviction about our ability to deliver on our plans and our protections.
John Flaherty, John Flaherty, John Flaherty,
How can I go to you? I appreciate the column. Thank you.
Speaker Change: Thank you. The following question is from Chris Quilty, from Quilty Space, please go ahead.
Chris Quilty: Thanks, Dan. Just wanted to follow up on that government question. You've had a couple of recent hires in that area. Can you just perhaps outline for us what your government bloated market strategy looks like and where you expect to focus those efforts?
Domestically Internationally. [inaudible]
Chris Quilty: Frank. Yeah, thanks, Chris. So, you know, with respect to government, your focus naturally is with our life governments.
So that's certainly the focus. Thank you.
Company, we've been engaged with
Chris Quilty: the government of Canada for decades and decades. So, you know, that's kind of a very much of a direct kind of go-to-market activity. In the U.S., there again we've been providing services to the U.S. government for decades as well. We do have...
Chris Quilty: Arun, kind of foreign mitigated entity down there as a Canadian company to do business directly with the U.S. Government. There are advantages too.
Chris Quilty: setting up a kind of a proxy company, a foreign mitigated entity that has its own board.
to mitigate when he kind of-
Chris Quilty: for an influence. So we have that in place and we made, I think, an announcement maybe just last week about a new senior edition.
Chris Quilty: to the team there. We have, I think, really good leadership.
Chris Quilty: that's running that organization and a good board of directors that provides.
Chris Quilty: Supervision. So they're, you know, with the US government market, we're positioned and taking the steps to do business directly with the US government, but we'll gladly work with all of the long time service providers in US government.
Integrators that we've worked with for decades and so…
Chris Quilty: You know, whether it's the proliferated Leo RFP that's out there, we think that life speed...
Chris Quilty: is really well-architected to meet the needs of governments, including the U.S. government, and so we're very open.
Chris Quilty: to working with partners, long-standing partners, new partners as well to serve the U.S. Government. And then I'd say around the rest of the world, it's kind of the same.
Chris Quilty: You know, there are many allied governments that we've done business directly with over the years. For sure it will be the case that there are domestic players in each of those markets.
Chris Quilty: that will be great partners for us. And here again we think that light speed brings something compelling to the government services market. So anyway, Chris, that's all we're thinking about it.
Chris Quilty: The number two means a combination of both direct and partnering.
in terms of a go-to-market with big elements.
Customers.
Yep, that's exactly right.
Speaker Change: Um, our light speed, I think we're still on track for our first satellite deliveries in the next year. But what are the next major, well, maybe one or two major milestones we should be watching for?
toward the end of next year, so the first satellite. Bye.
Delivery, you know, will technically be earlier than that.
Speaker Change: So we've got a critical design review with NDA in a couple of months, six months, six months one time so you know towards the end of this year that that's something that is an important milestone, we feel good about it
Speaker Change: One or two so far, but there will certainly be more of those throughout the course of this year and next year we've made some announcements around user terminal development and we'll update folks on that.
Speaker Change: I'm just trying to think, I mean, those will be the things that will be obvious, you know, kind of from
the outside looking in...
Speaker Change: Yeah, those are things and then obviously, once we get into next year, you know, we'll be taking satellite deliveries and then we'll, you know, have a launch. So we're not that far off.
Oh, love my...
Speaker Change: Satellite Flight Ops, our knock will be there, we'll have a data center there, we'll be a cyber facility there so anyway and that's expected to come online toward the end of this year.
Speaker Change: So anyway, you know, we're super busy but making really good progress across all the different important work streams. So yeah, it's very gratifying.
Speaker Change: You mentioned on the user terminal and maybe just the focus on the IFC portion of that. I think right now you've got two solutions in via SAT with their existing terminal and DINCOM, which is the Airbus solution that are both electromechanical.
Speaker Change: How important do you think it is to have Paul Acronic, K.A.?
Market, what do you think?
You know, eventually we'll see a combination. Again.
Maybe you're thought on Leo Only vs.
Speaker Change: David McFadgen, David McFadgen, David McFadgen, David McFadgen, David McFadgen,
just in terms of the texture of that airline.
Subs by www.zeoranger.co.uk
Yeah, listen, I think-
Speaker Change: It just makes it so much easier for us to hit the ground running with our partners because all of these planes today that have you mentioned the thin comment tenna there's the bias island tenna those are light speed compatible so it's kind of a built in adjustable market. So
from Dave One, that's great.
Vice-Sat announced that they're making their own Isha.
Speaker Change: which is going to be, you know, light speed compatible. It's going to be a multi orbit antenna from what I understand. We announced, I think earlier this year, maybe it was late last year, that we're working with Kest.
Speaker Change: for an all-ease electronically steerable antenna for the arrow market. There are other players out there as well that are building ESA antennas.
for the Arrow Market, [inaudible]
Speaker Change: or attracted to them because they're lighter weight, they can have a lower profile which makes them more fuel-efficient than the like and so the airlines like those. And then with respect to multi-orbit versus Leo only, I mean at the end of the day the airlines will decide. [inaudible]
you know, what meets there? [inaudible]
and interest best. Thank you. Thank you.
and different players are...
Speaker Change: taking different approaches to this. So we're going to see it play out real-time by ASAT. And we're very pleased with the agreement that we announced with ASAT last month. That'll be a multi-orbit offering, clearly. You know, by ASAT's the largest provider of in-flight. So we're going to see it play out real-time by ASAT. We're going to see it play out real-time by ASAT.
Speaker Change: Frontlines there, and it's clear a lot of their customers are excited about having a multi-rubit solution, equally there are others that are...
Speaker Change: Turning the Starlink, which is obviously a Leo only solution, and so I think for light speed.
You know, um...
Speaker Change: So we'll see how it plays out, but again I think from Telesat's perspective. .
Speaker Change: Whether it's multi-orbit, whether it's Leo only, and for sure we think there are real advantages. We think Leo's a great value prop for the aeronautical market and for some of the other verticals too, but we think we're well positioned. And...
in either setting, multi-orbit, Leo Womley, and we've really designed...
Speaker Change: Lightspeed to provide really compelling service for the aero segment, and yeah, so we're pretty bullish around that.
Speaker Change: And if I can't a final question, I mean, the Leo backlog went up 600 million sequentially if I assume 80% is bias added, like a half billion dollar deal. Are there other...
Speaker Change: Customers out there of that scale, or do you think? Obviously, I guess we should assume via that was the biggest potential.
Speaker Change: of customers since they're the largest IFC provider, but what should we think about in terms of other customers? Are there other customers out there that are, you know, nine figure customers? Are we looking at, you know,
group of fields that you expect to announce. [inaudible]
Chris Quilty: It's a great question, Chris. I think it's going to be a mix. I think the Viasedat contract.
is a very meaningful...
contracts.
Speaker Change: I think that there will be other commercial players out there that will sign significant.
Speaker Change: Deals, maybe they'll be, they won't quite be at the Wireshot level, but they could be...
Still in kind of that mind figure, kind of zip code.
Speaker Change: When I think about, you know, conversations that we're having and what the pipeline looks like.
Speaker Change: and then there's the government segment, and I think that there could be meaningful commitments around there too. Government opportunities are always a little bit harder to...
Speaker Change: Oh, wait just because you're dealing with governments, and so there's always more complexity there, but we know that the government requirements.
or significant. [inaudible]
We know that the U.S. [inaudible]
kind of, you know...
for so many of these allies as they've seen.
For instance, the conflict play out in the Ukraine and...
Speaker Change: and so we think that there could be some very meaningful
opportunities for light speed in the government services market.
Speaker Change: But, you know, kind of being specific around the timing of those, the quantum of those, is always a little bit hard. But, you know,
for the avoidance of doubt.
We're very bullish on our opportunities there.
and think that that's going to be a meaningful...
Part of the Lightspeed Business, including kind of pre-launch.
Business, so, anyway, stay tuned.
Very good. Thanks, Dan.
Speaker Change: Okay, thank you. Thank you. The following question is from David McFadden from Cornmark Securities. Please go ahead.
David Mcfadden: Great, thank you. Now, a couple of questions. So, I was just looking at the Alino, even the lost in the corner. It was definitely lower than what I was.
Speaker Change: Expecting, I thought that 110 to 120 million number would sort of ease them throughout the year. So, I was really if you can give us an update on sort of the cadence that you would expect to get to that 110 to 110.
Speaker Change: Andrew Browne, yeah, I think David, we're pretty consistent, I mean it's sort of timing.
Speaker Change: and we're hiring ramping up staff, etc. So it's really, it's really about that. We feel pretty comfortable with the guidance that we had given, because this is a, it's a big program that we're developing. So obviously, between one quarter and another quarter, you may have things that shift slightly, but overall, now we feel pretty comfortable with where we are.
Speaker Change: Oh, I can tell you so much of it is head count driven totally and you know
We are adding…
A lot of new colleagues around here, I think.
You know,
Speaker Change: No, I have the data somewhere here, but for instance we've got 60 new colleagues that will be joining us so they've already accepted their offers, they haven't shown up yet.
Speaker Change: Yeah, we're ramping up our spending as we execute on the program. Yep.
Speaker Change: Okay, and then just a question on Biosat. So, you know, in the press conference, it says that there's a news like these aviation maritime enterprise and defense. Is there a vertical that Biosat services today that they're not planning to use Biosat?
Speaker Change: You know, if you looked at the press release that we issued a new issue at the time, I think it covers pretty much all their their verticals. I think
Speaker Change: At a minimum, I want to have the ability to leverage light speed for all the different verticals that they're participating in. So, that's...
Speaker Change: That's my expectation. Someone's pointing out to me, to the extent that they're doing direct-to-consumer internet, that's not the focus.
Speaker Change: But, you know, for Arrow, defense applications, maritime, you know, they've got a business kind of a rural broadband business.
Speaker Change: You know, all of that I think is fair game for how they think about multi-orbit and leveraging light speed.
Okay.
So, I mean, it's my unit event.
Probably every geo operator will probably want to license my speed, so...
Speaker Change: Arun, have you entered into any other discussions with other geo operators right now? [inaudible]
Speaker Change: Yeah, we have. It's a great question. I don't expect everyone who is a geo-operator today to go out and build their own Leo constellation. And yet everyone I think sees where the market is going. So for sure, particularly with a lot of the regional...
Geo operators around the world and...
Speaker Change: You know, many of these companies, Telesat, has supported through our consulting business for years, so we have good relations with these different companies around the world. So yeah, you know, how those discussions
Speaker Change: Play out at the end of the day, you know, stay tuned, but I think that, um,
Speaker Change: I would just answer your question, David, yes, we're engaged with...
a pretty wide range of...
Speaker Change: Regional Geo Operators that are interested in finding a compelling Leo solution so that they can continue to meet the needs of their existing customers, including quite often times their own domestic governments.
Okay.
Speaker Change: And then I noticed that when you talk about space in all the way, you expect to conclude that deal in a lot of half of this year.
Speaker Change: Look, you know, a deal isn't closed until a deal is closed. And I...
You know, think that having that done by your end.
Speaker Change: Heels like that's pretty reasonable. But here again, you know, Space Norway is the government in Norway and back to my confidence about how
Speaker Change: Deals with governments can sometimes, you know, take a little bit longer, that could take a little bit longer. And then in terms of quantum, yeah, I say stay tuned on that one too.
You know, Space Norway,
Speaker Change: you know, the Eleanor Space Business, so on the one hand, they've got a lot of...
Purely commercial requirements, much like Telesat as in our business.
Speaker Change: and then they have their own government requirements for Norway and, you know, I think they have close relations with the other Scandinavian governments and whatnot. And, of course,
Speaker Change: their allies. So anyway, so hard to say, just right now, what that will look like in terms of quantum. My expectation is it should be a pretty meaningful agreement, but we're still working with them on figuring that all out.
Speaker Change: Okay, and two more for me. So I believe Taiwan wanted to make where it was planning to make a decision about whether they were going to license lightspeed or not this year. So I don't know if it can provide us with any update though.
We know, we've... [inaudible]
We've always been pretty clear, I don't think we've ever...
Confirmed that we're in discussions with, you know, any...
David Mcfadden: particular governments, face Norway is different because we signed an announced a term sheet there. So, we are, you know, as I said David.
constellation capabilities
David Mcfadden: Cyber kind of standards, other standards that government users have in terms of resiliency and some other features that are important to government.
So, anyway, all I would say is...
We've...
David Mcfadden: They have multiple conversations with various governments around the world as governments more and more think about leveraging Leo to meet their growing space requirements. And I think that's really all we can say, we'll...
David Mcfadden: You know, as we have deals to announce, we'll announce them and that's pretty much all I can say. And again with that caveat, that government procurement.
David Mcfadden: Make too many specific predictions around how those things play out.
Speaker Change: Okay, and then just lastly, Claviu entered into the negotiations and chat with the developers.
this year and, you know, shaking to refinance.
Speaker Change: and a restricted group of balance sheet with the kind of geo-lenders. That's an important corporate priority for us. So, in answer to the question, no, we haven't really fully engaged.
Speaker Change: with the restricted group lenders at this point in time. But back to the comments around it's an important corporate priority for us.
Speaker Change: To try to make progress on that this year, the expectation is that that's something that we will be doing sooner than later, and so that's our plan.
Okay, all right, thank you. Okay, thank you.
Thank you.
Speaker Change: Our last question is some Walter Piecyk from Lightshed. Please go ahead.
Hi, all. This is Joe on for Walt.
Speaker Change: I noticed in the filing that there's a cable that shows the piece of anticipated drawdowns for the build-out of light speed.
Speaker Change: is that pretty locked in at this point, or what would cause that schedule to change around the margin, although then like four, it's kind of like an Andrew question.
Dan Goldberg: Dan, maybe I'll take it in the first instance and Andrew can chime in. So basically, we, we,
Speaker Change: Our ability to draw down from the facilities that we have with the government of Canada, the government of Quebec are mostly tied to milestones through our vendors.
Speaker Change: and so I think so long as the vendors are executing the plan that we're probably going to be reasonably consistent with whatever. [inaudible] I'm sorry, I'm sorry, I'm sorry,
Speaker Change: Schedule that we filed, what could cause it to move to the right as far our key vendors, and look, the big one is MDA.
if they were to...
Speaker Change: Gettley, and the milestones that are kind of tied to those drawdowns, if those milestones.
Speaker Change: Where to shift out to the right, then our drawdowns will shift down to the right and look, you know, you put yourself in the company issues as soon as we draw down. Now, let's go to the next round.
Speaker Change: then, you know, the interest starts kicking on those drawdowns. So we certainly don't want to draw down any earlier than we need to. So I think the schedule that you see is kind of our best approximation of when we anticipate we need to make those drawdowns. [inaudible]
tied to the milestones that we have. [inaudible]
with our various vendors.
Speaker Change: and here again, if they're late on those milestones, then we'll draw down a little bit later then.
Thank you.
James Ratcliffe, John Flaherty, John Flaherty, John Flaherty,
K&L Interest Extension, I guess, as opposed to being capitalized.
at the end of the program.
Speaker Change: So when all, when the whole consolation is offered, it's because it's changed over time as birds go up in the air.
We're at 156 satellites.
Okay.
Speaker Change: and then just the last one, back to Viathrat, it's more just a general question. On the user terminals, what's the...
Speaker Change: of some of the antennas with, I guess, getting regulatory approval.
How long does that process usually take? [inaudible]
you.
to get a general sense.
Speaker Change: Certifications that are required and a decent understanding of that process, but that will...
Speaker Change: principally be looking at my general counsels, as I say this, principally that will be via such responsibility. We'll certainly be working with them.
Speaker Change: to make sure that the modem, the user terminal, kind of more broadly speaking, the antenna and whatnot are compatible with light speed and will support them as they get, you know, the approvals that they need, but
But yeah, I would cheat.
Speaker Change: Inflight Connectivity Services is about as, you know, probably more experience than anyone in obtaining those certifications. So, anyway, for us that's not...
Speaker Change: something that is a worry for us in terms of when we'll be able to start serving via SAT and supporting them with their end user customer.
Okay, thanks.
Speaker Change: Thank you. That concludes the question and answer session. I would not like to turn the meeting back over to Mr Goldberg.
Speaker Change: Okay, operator, well thank you very much. Thank you everyone for joining us this morning and we look forward to speaking again when we release our second quarter numbers. So thank you again. Thank you very much.
Speaker Change: Thank you. The conference has now ended. Please disconnect your lines of this time and we thank you for your participation.
This conference is no longer being recorded. This conference is no longer being recorded. [inaudible]
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