Q2 2019 Earnings Call
Good morning, Thank you for joining us today to discuss consolidated water company's second quarter ended June Thirtyth 2019.
Joining us today is the Chief Executive Officer of consolidated water Company, Rick Mctaggart. He is joined by the company's Chief Financial Officer David.
Following their remarks, well open the call to questions.
Before we conclude today's call I'll provide some important cautions regarding the forward looking statements made by management during the call.
I'd like to remind everyone that today's call is being recorded and will be made available for telephone replay instructions in today's press release, which is available in the investor relations of the company's website.
Now I'd like to turn the call over to consolidated water Companys CEO , Rick Mctaggart, Sir. Please go ahead.
Thank you Melissa and good morning, everyone. Thanks for joining us today on the call.
As you saw in the earnings release, we issued on Friday, we realized another quarter of double digit growth in revenue gross profit and net income.
This was driven mostly by a continued increased production activity in our manufacturing business, which I have to say has really come back strong. This year. After devoting a portion of its capacity last year to projects for our other subsidiaries.
Total revenues for the quarter reached 18.3 million up 22% over last year manufacturing represented 3.3 million of this growth with retail adding another 715000.
The growth in our manufacturing was due to a renewed focus on industrial sales with strong ECS execution by our sales team combined with increased customer demand for our specialized products.
Given these results in a healthy backlog, we expect to continue the progress made by our manufacturing business in the second half of this year.
The growth in our retail was partly due to the fact that the weather in Grand Cayman has been drier this year.
Rainfall in the second quarter was down 76% compared to last year, requiring the local population to use more of our water.
And looking at the first half of 2019 rainfall in our Cayman Islands service area was down 55% with rainfall in the first half compared to rainfall in the first half of 2018.
And it was also 55% lower than the 30 year average.
We don't know if this trend will continue but we're prepared with adequate production capacity in any event.
Now before I go further I would like to turn the call over to our CFO , David Sasnett, who will take us through the financial details for the quarter and I'll come back to discuss a little more about our recent operational activities and the outlook for the remainder of the year.
Dave.
Good morning, everyone.
As Rick mentioned, our total revenues grew 22% to 18.3 million, reflecting revenue growth for both our manufacturing in our retail segment.
Manufacturing segment revenues were up due to an increased number of orders, which led to expanded project production activity.
Our increases in manufacturing and retail revenues were partly offset by a decrease in our bulk revenues.
The main reason for the decline in revenues was the new contract that came into effect in February for the water, we supply to the water authority Cayman from our Red Gate North sound plants.
This as we have disclosed the right under this contract is less than the one that was in effect previously.
And the second quarter, our retail water segment represented 38% of our total revenue.
Our bulk water segment represented 38% also and manufacturing generated about 23.5% of our consolidated revenues.
Turning to the six months results.
Revenue was up 19% to 35.3 million compared to the first half of last year and once again. This increase was driven mostly by an increase in the manufacturing segment of 5.8 million.
In the retail segment, adding another 1 million.
Consistent with the second quarter for the six months the improvement manufacturing revenues was due to an increase the number of orders and greater production activity.
Retail revenue was up due to the volume of water sold by Cayman water, which increased by nearly 3%.
And our retail revenues. He came and also benefited from increased energy prices that increased the energy pass through component of our Cayman water retail revenues by $356000.
As we said earlier the increases in manufacturing retail revenues for the first half the year was partially offset by a decrease in bulk revenues and once again. This was due to the new contract signed with the water authority.
Gross profit for the second quarter of 2019, total 7.6 million or 41.3% of our revenues.
This was up 22% from the 6.2 million.
Or 41% revenues.
In the same quarter a year ago.
Gross profit for the first half of 2019 was 14.5 million or 41% of our revenues.
Which was up 70% from the 12.4 million or 42% of revenues in the first half of 2018.
And the second quarter, our DNA expenses on a consolidated basis were 5 million.
Representing a 12.3% increase from the same quarter, a year ago and for the first half of the year.
Gene I was up 2.9% to 9.4 million.
Net income attributable to stockholders for the second quarter of 2019 was 2.5 million.
Which equates to 16 cents per fully diluted share. This represents a 13% increase from the 2.2 billion or 14 cents.
Per fully diluted share that we reported last year.
For the first half of 2019.
Net income attributable to stockholders total $8.7 million or 57 cents per diluted share, which represents a 102% increase from the $4.3 million or 28%.
For fully diluted share that we reported for the first half 2018.
If we turn now to our balance sheet, we're pleased to be able to report that our cash and cash equivalents.
Have increased to 41.9 million as of June thirtyth as compared to $31.3 million.
As of the most recent year end.
This is driven by cash flows generated from operations.
Our accounts receivable have declined from the end of the year.
20.2 million from 24.2 million as of December 31st 2018, as we have managed to collect more money in Bahamas, and our delinquent receivables.
From the water and sewage Corporation.
Our property plant and equipment increased $4.1 million and our construction in progress decreased 5.4 million from the end of the year.
This was due to the commissioning of the expanded plant capacity of our able to steal waterworks plant.
In Grand Cayman in March 2019.
Looking at our projected liquidity requirements for the rest of the year we have.
Anticipated capital expenditures for existing operations of about $2.2 million and we expect to spend about 4.3 million on our project development activities in Mexico.
And of course, our liquidity requirements May also include future quarterly dividends, if such dividends are declared by our board.
Exported to note that our dividend payments amounted to 5.1 billion for the year last year.
We paid 2.6 million in dividends for the first six months of this year.
And.
Once again I'd like to just emphasize that we have excellent credit standing very liquid solid balance sheet.
We're positioned to do things in the future given the credit staying that we have for our company.
And with that I'd like to turn things back over to Rick Thanks, David.
Our strong second quarter results once again demonstrate that the teams operating each of our business segments working hard to improve our financial performance.
Controlling costs and providing excellent products and services to our customers.
As many of you know our manufacturing operations are based in Florida, where we manufacture in service a wide range of water related products. We also provide design engineering operating and other services that are applicable to the water production supply and treatment for commercial municipal and industrial sectors.
We expect the results of our manufacturing segment for the rest of this year to continue to improve over last year, given our healthy order backlog.
Our bulk water business provides potable water and under long term water supply contracts in the Cayman Islands in Bahamas, we're naturally occurring potable water is scarce and reverse osmosis desalination technology is economically feasible.
Earlier this year, we executed a new seven year bulk water agreement with the water authority came in.
For the North side Waterworks and this has become effective on July onest and while we're charging a lower rate the agreement secured our position as the dominant desalinated water supplier in the Cayman Islands for the next several years.
And the Cayman Islands, we also own and operate a water utility business, our retail business and supplies desalinated water directly to residential commercial and public authority customers within the main tourists area of Grand Cayman.
Completing the expansion of the Bell Castillo Waterworks plant in Grand Cayman earlier this year.
Has ensured that we can meet future water demand from our retail customers.
The water authority Cayman recently made a public statement, saying that they will soon put out a tender for a 2.4 million gallon per day desalination plant to rebate to replace older plants on the island and naturally we plan to bid on this project when the tenders officially announced.
Now in terms of environmental and other factors that might come into play for our Cayman Islands operation.
As I mentioned earlier last year was a relatively.
Dry year in Grand Cayman.
With rainfall, 30% lower than in the year before and 31% lower than the 30 year average.
So then in the first quarter of this year rainfall amounts were higher returning to match the 30 year average.
However, rainfall in the second quarter of this year was down 76% compared to the same period last year.
So on balance for the first half of 2019.
Rainfall in our Cayman Islands service area was down 55% with rainfall compared to the first half of last year and it was 55% lower than the 30 year average sorry about all the numbers here.
Rainfalls traditionally higher in the second half of the year, but we will continue to monitor these trends.
So.
Another factor that's impacted our retail sales, we believe stay over tourist numbers in Grand Cayman continued to grow in the second quarter of this year came in at 14% higher than the second quarter of 2018.
If you all recall that there were a number of hurricanes in the Caribbean in 2017, and that's driven a lot of business to the Cayman Islands and that still continues.
Lower rainfall and increased tourism appeared to be the main drivers of the increase in retail water volume sales in the second quarter of 2019.
And as I mentioned historically, we so more water in Grand Cayman. During this first and second quarters of the year due to the number of tourists visiting the country being typically greater and local rainfall being lower compared to the latter parts of the year.
Now, we'll talk a bit about.
The Rosarito plant in Mexico.
The plant is expected to be the largest seawater desalination plant in the western hemisphere, and will provide drinking water to the northwestern coastal region of Baja California, Mexico for the next 37 years.
The project comprises the construction of a seawater reverse osmosis desalination plant with the capacity of 100 million gallons per day to be implemented in two phases of 50 million gallons each.
The first phase includes the installation of an aqueduct designed to deliver potable water from the plan to buy California is public water system.
Now I'll just mention that.
A lot of the capital that we use.
Foresees spending for the remainder of this year will be related to acquiring the remaining rights of ways.
For this aqueduct, David mentioned, a number of $4.3 million.
Earlier in his comments.
Well, we currently own 100% of the project development company, we've executed agreements with our potential equity partners through which we will retain at least 25% ownership in the project at the closing of these agreements.
We also retain a 50% ownership position in the company that operates the facility for the the owners.
The need for potable water has increased significantly over the past few years in Baja California with its rapidly growing coastal cities, becoming increasingly dependent on the overtaxed, Colorado River.
The aging aqueduct from the river to the coastal regions crosses several earthquake zones and has been prone to failure is due to its age over the past few months.
As has happened in the past any failures along the one hundreds of miles of canals and pipelines could interrupt the flow of fresh water to an estimated 2 million inhabitants, along the coast in Mexico.
Our rosary to Rosarito Beach desalination plant will diversify the region's water resources and enhance drinking water supplies in Baja California for decades to come.
For the Rosarito project, we had two major positive developments earlier this year that we reported regarding legislative approval and funding. This has allowed US to proceed to other important steps before we begin the construction phase. These steps include securing the major portions of the projects required debt financing.
And the remainder of the aqueduct rates away.
Beyond this area of Mexico, there remains many other water scarce countries in the Caribbean and other markets, where we believe we can have a positive impact on their population by providing essential freshwater supplies. So we are continuing to explore development opportunities, where we can support the growth the regional economies and improve the quality of life and local communities.
Now looking ahead for the rest of this year.
The prospects for our manufacturing business continued to look favorable, especially given that we possess specialized manufacturing capabilities and experience relating to markets with relatively high barriers to entry.
For these markets, we qualify for projects that require world class quality control and documentation systems, which we possess.
We also fabricate water treatment equipment for a diverse number of industries involved in waste water treatment infrastructure and we believe the numerous municipal utilities in need of wastewater infrastructure improvements will drive growth in our business.
In anticipation of further manufacturing growth, we are expanding our production facility, which we expect to be completed with the within the next 12 months.
This project is being led by our new VP of manufacturing, whose knowledge and experience will play an important role as we grow this business.
Appointed in.
The second quarter.
Jamie is brought to us more than 22 years of management experience in engineering manufacturing plant integration and development as well as product development and distribution.
As David mentioned earlier, given our strong balance sheet with ample liquidity both of which we can to have continued to improve this year.
We are focusing focused on closing the development phase of the Rosarito project as well as expanding our businesses into new markets and complimentary product lines.
This includes actively evaluating M&A in partnership targets in North America that would expand our geographic footprint and diversify our revenue streams.
These efforts are strongly supported by our board of directors, which considers acquisitions to be a strategic imperative. So we are currently actively advancing on one potential target and we have our eyes on others.
Our ideal targets would have an existing water treatment related business and a business model similar to our Caribbean DSL business model.
They would give us access to new markets for our existing products and services as well.
Now I'll say a bit about the state of the industry.
All indications remain that the global market value for desalination is growing strongly.
According to recent reports it is expected to double by 2026, reaching more than 20 or $37 billion of market value.
This growth is reportedly being driven by multiple catalyst from shrinking or limited freshwater resources or adverse environmental changes.
To growing populations further increasing the demand for freshwater.
On the manufacturing and services side of our business.
The aging water and wastewater utility infrastructure in the US is widely recognized as being in much need of investment across the countries more than 49000 community water systems and 18000 wastewater systems.
This has been largely due to years of deferred maintenance and upgrades.
Water and wastewater capital expenditures now stand at 45 billion annually for the us municipal systems and a rising steadily.
And for consolidated water. This is all good news good for our growth and our opportunities.
And especially good for building shareholder value over the quarters and years to come and our strong performance in Q2 reflects these tremendous opportunities ahead.
So having said that I'd like to open the call for questions Melissa.
Thank you we will now begin the question and answer session.
If you would like to ask a question. Please signal by pressing Star then one on your telephone keypad to withdraw your question. Please press Star then too.
If you are using speakerphone, please pick up your handset before pressing the keys.
Again press Star one to ask a question we will pause for just a moment to allow everyone an opportunity to signal for a question.
The first question today comes from Gerry Sweeney with Roth Capital. Please go ahead.
Hey, good morning, David Rick Thanks for taking my call.
Hey, Jerry Jerry how are you.
I'm doing well could you maybe discuss or give a little bit more detail on potential acquisitions maybe.
How big.
In terms of revenue.
How much you're looking to spend to give us a little bit more clarity on that front.
Yes, I mean, we're not prepared to talk about that right now Jerry I mean, as you know we don't.
We're somewhat conservative and.
And how we grow the business and we're not going to take any big chances.
If you.
We have a lot of cash on hand, so you can think of.
The size of these acquisitions within that sort of a.
Scope.
Okay. That's fair and then maybe switching gears gears I'm, sorry, we're going to say some David.
No. We don't expect this next acquisition will be funded by any debt. So we have cash.
If we tell okay that's positive.
If if if if we close.
Got you that makes sense and Thats helpful. Also.
You can give us a little bit margins margins obviously.
I know volume certainly help on the on the retail side, but even on the bulk side they seem to be doing quite well, even with some of the repricing of the contracts.
Could you maybe discuss maybe some internal.
Improvements or processes, you put in place that could be helping out on that front.
And are they sustainable.
Well I'll just mention that I mean, I mentioned in the in this.
In the script that.
We're focused on cost control, we're always focused on cost control and.
Hi, guys of the operations Department has implemented some.
Management protocols and systems that.
Really over the last two years that I think have been very hopeful and focusing.
The entire team the operating team on cost control and I think it's paying benefits.
I mean these are great.
Industry standard type systems that we've implemented.
And then final question from me would be just that new potential tenders do you know roughly speaking when it may come to market and maybe a little bit of timing, but the expectation is.
When it comes to market that may be.
When it would be finalized and when.
Grand Cayman, we'd like to have that plant operation.
Thanks.
I mean, our best guess just based on the timing of the announcement is that we'll see some this year, maybe the bid documents, but we don't have any firm information on that.
And.
Just mentioned that we're not sure.
How that contract is going to be structured because there.
In the past here in the Cayman Islands, the UK is imposed some.
Debt some borrowing restrictions on the government and.
The types of deals that we do or.
They are looked at as debt.
At the government level so.
It could be a boot it could be something else I'm not sure exactly what it's going to look like when it comes out.
Okay, Great I will jump back in line. Thanks.
The next question comes from Michael Gaugler with Janney Montgomery Scott. Please go ahead.
Good morning, everyone.
Hey, Mike how are you doing.
Rick maybe you could update us on.
Rosarito timelines in terms of.
When do you expect to.
You know.
Get into construction and finalize things given the developments that thus far this year.
Well I'd like to give you an exact date, but I can't.
I mean I would tell you there was an election there over the summer there is a new governor the governor elect it comes in in November .
So I mean, that's kind of.
Added a new layer of.
I wouldn't say complication, but.
Getting his team up to speed and.
On the project and that sort of thing has been our focus over the last.
Hi, guys month or two.
I would really like to close by the end of the year, Mike I mean, that's that's my goal.
But there will be some political shuffling in November and we hope that doesnt delay anything.
Okay.
That's actually all I had.
Jerry asking my question on acquisitions so.
I'll leave it there.
Okay. Thanks, Mike.
Again, it is star one to ask a question. The next question comes from Hassan Doza with W. Am. Please go ahead.
Hi, Good morning, Hassan Doza with water asset management.
Good morning, Rick and Dave Thanks for the update.
Couple of your how you doing.
Good good couple of questions one is.
If I look at the last couple of years in your.
Bulk water business your annual revenue run rate was about 8 million.
Give or take and the first two quarters in the bulk water have averaged about 7 million so going forward.
Hi, David or rate is 7 million ish is kind of the new run rate, we should think about.
Per quarter versus the 8 million previously given the repricing of the two facilities.
Well, let's not forget that in the third quarter of this year there will be another.
Just spent because we've signed that third.
A contract for the third plant so all of the.
But water contracts for RCC have been renegotiated.
And going forward I think you need to wait until the end of the third quarter of this year to get a better idea of what the run rate will be on our boat business.
But it's important to remember Hassan that revenues a decline in revenues doesn't automatically translate to the same kind of decline in profits.
All of these contracts had energy pass thru components, where we would pay the energy and then the government would pay us back.
The new contracts have been restructured so that the government pesos energy charges directly.
So while the revenues for these contracts have gone down so have the cost of revenues. So the impact on the margin is not the full amount of the revenues that we lost.
So if you're looking to see how things are going to shake out its better that you wait until the end of the third quarter of this year.
And then you'll have a better idea of the run rate for our revenues and it's important to understand also hassan that up.
Good portion of the margin on these ball contracts is protected because.
They had these minimum charge amounts in there the governments have to pay a certain amount whether or not they use the the water or not.
So our margins on our bulk business are somewhat protected so I know what you need and so if you want to get an idea of where we'll be take a look at things after the end of the third quarter.
Okay, and and David you had mentioned.
Further erosion reader facility the development expense this year in 2019, if I heard you correctly is 4.3 million you said.
No. That's the amount of money, we expect to spend for the rest of this year.
And most of that will be expend on acquiring rights of ways.
If you look at US we're spending about anywhere from 1 million to $2 million historically per year in GA cost in Mexico that doesn't include the amounts that were capitalizing our balance sheet for the rights of ways. So the remainder I can tell you exactly what our projections are at this point in time.
One second I'll go back to back my comments that are made here the.
The conference call I have my numbers here.
So what we're talking about is spending about.
4.3 for Mexico, and that would include rights of ways and everything.
So a portion of that will be capitalized and then for the rest of our stuff wireless capital expenditures are going to be 2.2 billion.
Okay sort of the the amount flowing through your Jamie DNA in line is.
How much.
Roughly on an annual run rate.
About a million and a half year.
Yes, I think goes away Hassan if we close the Mexico.
Deal.
Those numbers were transferred over to HDR, and we would own 25 to 30 reps in radio so that DNA hit for a company goes away if we can close to Mexico.
Project.
Got you and one.
Closing one Rick it's for you any update on the kind of the came in retail license I know we have been speaking on this for years on the call I would love to get.
Update on where you are in negotiation stands.
Well, we continue to negotiate with the regulator, we don't have any.
Any other sort of update to give we're in active negotiations with them.
And.
Again, this is something that I'm, hoping to close out before the end of the year certainly.
Okay.
Oh.
You there.
Got it thank you.
Okay.
Again, if you have a question. Please press Star then one the next question comes from John Bair with ascend wealth advisors. Please go ahead.
Good morning, gentlemen, thanks for taking the call.
Hey, Jeff.
Got a couple of questions.
First one referring to that the right of ways.
Are you having any issues with.
Pulled out so I don't quite.
I understand.
How that works is this price.
You are trying to do get leases are actually by the rights of way.
How long are those terms and so forth and.
In other words, if it is it private ownership land ownership that you're trying to acquire the those rights away from and are.
Some of those people begin.
Or entities are kind of holding out and.
Slowing the process down.
Yes, they're private Reits, who is the public Reits, who is or are easier to deal with those are.
Obviously, the government supports the projects so.
A big part of the actual.
30 kilometer right away.
His public but then we have to deal with private owners as well.
A lot of different.
Situations I mean, we havent found.
Anything that.
We haven't been able to get.
Get around and these are.
Indefinite rights away is that we're purchasing from the owners.
So I mean, it's always challenging I mean, as you're dealing with dozens of different parties.
Along this pipeline path, but we've been able to overcome.
All the big challenges in where we can't overcome a challenge we we look at relocating the pipeline to avoid it so.
We do have a little bit of flexibility on that.
For things like title, Yes, yes, your title search isn't that kind of stuff to.
From from ownership and so forth I would assume.
Oh, yes, that's a big part of it and those are the ones that.
Become problematic when the owner doesn't have good title and then we have to go around it.
But we haven't found too much of that.
Okay.
My second question.
Involves the additional manufacturing your order outlook and so forth are these.
Orders.
Coming more from a from the municipal.
And users or are they.
Food and beverage type companies can you can you shed a little more.
Light on that and secondly are they more domestic or.
Exclusively domestic are we kind of where are they coming from generally speaking.
Well.
Bulk of them is coming from the power industry.
And.
Than other other orders are coming from as we mentioned.
Municipal wastewater treatment.
Plants, you know paperwork that.
We are building for those those projects and that sort of thing everything is domestic were selling all domestically.
I think I covered.
When in my comments about.
Through the water treatment industry desalination and.
In desalination. This includes brackish water treatment, so any type of membrane treatment plant.
I mean, that's where we see the bulk of the orders coming from from that part of the business from the wastewater industry and from a continued orders from the power industry water treatment type equipment for the power industry.
Okay is there any potential for international sales in this area.
Surely.
Looking at that to some extent.
Yes, I mean, we've done orders in the past for the middle East, but for a client that's doing a project in the middle East I mean, we're fabricators. So we typically don't bid. These projects directly. So we're just building pieces of them for for a client.
And.
It's different.
Much different from the rest of our business, where we lead the development done.
On the projects were just at Air X. We're just.
We're building bits and pieces for these projects.
We're a contractor basically to the main contractor.
Okay, Great. One last quick question at what point might you consider another.
Dividend.
Hopefully increase.
And what year and a half.
John we always consider at this up to the.
After that.
To the to the wisdom of our board of directors.
It's.
At some point in time John .
We'd like to divert that capital to acquisitions, it makes more sense to us to put that money.
Hi into growing the business if at some point in time, we accumulate so much cash that we don't think it's reasonable to hold back for acquisitions. Then certainly we will increase our dividend I think a big impact of all this it will be Mexico.
After we closed the Mexico that would change the situation with our company significantly now we're not spending more than half a year to continue to develop that project.
Yes, and we have we're going to sell the land back into the project. So I think that might be at.
You know sort of a signal for when we might increase the dividend, but once again, it's not it's not really our choice per se as scepter wouldnt more.
He is like doing what they believe is prudent.
Just said John I mean in the past when we have more visibility on what our cash flows are going to look like I mean, we have increased the dividend. So a few years ago, we feel comfortable that we had renewed.
Was quite a few contracts that come up for renewal over I guess, a two year period, we felt more comfortable that those were secured in that long term cash flows look better than.
Well certainly consider increasing the dividend.
You've got two pieces to elements of uncertainty in the renegotiation of the Ria retail license in Mexico.
Plus as a result, I think would be a much better picture as to how we think.
Change or different amounts John .
Sure.
That completely makes sense and that.
I appreciate you taking my call him.
Good luck.
Thanks, John .
This concludes our question and answer session I would now like to turn the call back over to Mr. Mctaggart for any closing remarks.
Thank you Melissa just wanted to thank everybody for joining us today, and we look forward to presenting another good quarter.
In November .
Hopefully, we'll speak to you again thanks.
Thank you, ladies and gentlemen, now before we conclude today's call I would like to provide the company's safe Harbor statements that include important cautions regarding forward looking statements made during today's call.
The information that we have provided in this conference call includes forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
Including but not limited to statements regarding the company's future revenues future plans objectives expectations and events assumptions and estimates forward looking statements can be identified by the use of words or phrases usually containing the words believe estimate project intend expect should will or similar expressions.
Statements that are not historical facts are based on the company's current expectations beliefs assumptions estimates forecasts and projections for its business and the industry end market related to its business.
Any forward looking statements made during this conference call are not guarantees of future performance and invest certain risks uncertainties and assumptions, which are difficult to predict.
Actual outcomes and results may differ materially from what is expressed in such forward looking statements.
Important factors, which may affect these actual outcomes and results include without limitation.
Continued acceptance of the company's products and services in the marketplace changes in its relationship with the government of its jurisdictions in which it operates its ability to successfully secure contracts for new router projects, including the project under development in Baja California, Mexico.
Its ability to develop and operate such projects profitability and its ability to renew existing bulk water supply contracts.
And its ability to manage growth and other risks, including those risk factors set forth under part one item one a risk factors in the company's annual report on Form 10-K .
Any forward looking statements made during this conference call may speak as of today's date.
The company expressly disclaims any obligation or undertaking to update or revise any forward looking statements made during this conference call to reflect any change in its expectations with regard there to or any change in events conditions or circumstances on which any forward looking statements is based except as it may be required by law.
Before we end today's conference call I would now like to remind everyone that this call will be available for replay starting later this evening and running through August 19th.
Please refer to today's earnings release for dial in replay instructions available via the company's website at Www Dot CW Seo Dot com. Thank you for joining today.
With Us. This concludes the conference call you may now disconnect.