Pitney Bowes (PBI) 3 Aug 232023 Q2 Earnings call transcript

Good morning, and welcome to the Pitney Bowes' Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Today's call is also being recorded.

[Operator Instructions] I would now like to introduce participants on today's conference call, Mr. Marc Lautenbach, President and Chief Executive Officer; Ms. Ana Maria Chadwick, Executive Vice President and Chief Financial Officer; and Mr. Investor Manager, Senior Brown, Relations. Alexander Mr. begin Brown harbor with safe call will now overview. a the

I'm thank about Good us. Brown, Alex morning. and today's and performance. are business Included you presentation forward-looking future statements our financial in joining for

reports our that report be Forward-looking cause with to on earnings found filed our More in actual from and risks these release, could information statements our on different and www.pb.com about that materially XXXX and Investor SEC results annual are risks website projections. involve our other Form and uncertainties XX-K be clicking uncertainties by the press Relations. can located at

for Please in release. you press can not in appropriate as non-GAAP undertake are materials, keep used forward-looking release do GAAP the our measures new statements presentation attached we our a update mind tables in any result or obligation Also, information discussed measures find in that press that the to to to of the reconciliations developments. or

we our website. slide Finally, on segment presentation with historical have and information spreadsheet a provided

And the to call turn now like Marc. over I'd to

good Alex, morning, I all joining appreciate and us this you, Thank you morning. everyone.

profit SendTech largely field expected The the the quarter from as Presort were expecting. continued. we for that left although grew second SendTech we as quarter, some first transactions and the quarter out played trends on

We expect those transactions to close in the third quarter.

quarter for third for quarter. Both experience second the the of to crosscurrents. second a had profit Ecommerce are both quarter, solid well businesses and Presort different half. continued positioned revenue growing these Global and

changed how our as business to headwinds clients of hand, X our offerings. one Cross-Border largest access On continued our the they face

market. business expedited traded overall digital with e-commerce Our the

will to to this calls mentioned predict on large opportunity. it a the opportunity opportunity social but online. Hard However, out, be interesting began could come very how previous platform roll I've

growth our right where business, XX%. around Parcel quarter parcel and centered, the value Domestic is to opportunity the our in quarter for accelerated in create second Growth was

under Pricing market. above where expected, some less our on new historical stress. than growth clients is the are is but and winning consistent performance weights We periods, well with are retail

continued in well, our network levels to market. very service competitive Our and perform are the

are our progressing in Finally, are with our expected what expected plan. long-term consistent as was costs and

provide our this Let me business they the confidence. dynamics foundation of cost in because the unpack

for cost and unit transportation improved Our year-to-year. quarter-to-quarter XX% XX%

achieve volumes labor inflation, Going forward, cost productivity to postal plan, relatively cost plan our remaining fixed improved. our long-term by flat, offset trading unit assumes improving inflation and as cost absorption costs transportation with nominal

experiencing Said market than fairly relies less resumption the another growth improvements, cost well we on right standard are plan way, and now. volume of pricing

quarter of schedule. the me, big we work proceeding about we We details, For but got half. ourselves news the important a the of slightly not if expected, however, positioned ahead program give will lot you as more Anna was for our restructuring done. how is well second

the cost performance takeout of Much and centered for and business, better-than-expected business the of in for as we the reset is our to account GEC expense fine-tuned that we network. of rightsized Cross-Border

positions We the several balance next for our refinancing, years. which also completed the sheet

which improving fundamentally balance bet, began this to from been and development the the of this receivables Next, our our company, earnings on leasing bank the good improves bank's a diversifying strong. and of our working bank for buy already We've posture power captive our very bank, sheet. was

program recognizing forward. and going business Finally, of our expanded improving of to clients the USPS economics substantial workshare discounts, the the July our rate USPS workshare and value the case the Presort

walk to operating of quarter. set to over quarter the fruition very out through that So the details that, we us of the and to and the half as turn forward. Lots summarize, to work Ana the With second second well came for floor turned up going expected. financial I'll

Thank everyone. morning, good you, and Marc,

on discussed note that This primarily for I'll change does will digital disposition adjusts be activities. begin which, and previously for Borderfree dollar extent, profitability presentation review, the change as I my not our the revenue of basis, Before of impact year-over-year lesser information services. The currency, a financial comparable affects affect the revenue discussed, of and, global a the SendTech. our change presentation to e-commerce a revenue revenues

million quarter such Also, is I speak and $XXX million SG&A quarter. to down the decrease. second million, basis. the to a other the will for revenue in unless last otherwise the prior noted, EPS for profit which EBIT, adjusted X% $XXX Total from million year $XXX quarter $X for period of compared decrease year. on same compared a items Gross EBITDA was X% and was company as an $XXX prior to the year, was million

$XX corporate Within to million higher from largely interest, year million, ago, variable to interest to year $XX a compensation. due compared $XX expense, $XX were including $XX up million unallocated was EBIT due which on Adjusted which expenses of million million prior rates finance $XX up timing a in million to adjusted Interest and million, is was year. $X employee debt. ago, million compared $XX EBITDA our was floating was SG&A,

to and a due performance loss conditions. of GAAP in global through unit our noncash $X.XX EPS goodwill e-commerce in includes quarter in was EPS continuing global was to the the $X.XX year. macroeconomic XXXX, loss EPS XX, $X.XX in the changes quarter. a e-commerce prior Adjusted $X.XX segment compared charge June impairment GAAP to related

cash breakeven. $XX the CapEx year. $X quarter year. flow. $XX cash a to of a last of $XX to Turning Free source was was million in operating million, from use compared for prior million from cash GAAP was down flow million activities

and $X paid During payments. in dividends in million the we quarter, made restructuring million $X

SendTech year. segments. revenues into compared in quarter, start reported X% prior $XXX business million the to SendTech. our down X with I'll of dive Let's

the year. to make XX now from migration, continue are We and refresh on our percentage progress is which points up prior product XX% IMI through

lease to the in past increase new years. This our We lease are success where cycle, extensions. fixed-term equipment entering new largely a offset product over have in due stage we several a by now placing less life will of is opportunities, corresponding our

financial This positive term. in to compared These over the is From offset upfront transactions financing results cash with and sales net flow. a XX% with this perspective, margin revenue deferred, quarter second out in the dynamics, down financing only sales being year prior X%. equipment shift played a higher lease equipment lower by coupled spread to down revenue

encouraged be our segment to largest SendTech. continues in In of comprises receiving, a spot We XX% quarter, traction growth. by are segment, now the grew we for remain revenue especially the Shipping bright over where year enterprise our XX% shipping-related shipping saw and prior products revenues. very the

removed segment We achieved highlight declined. and year through than SendTech business. profit. Moving revenue will I to initiatives Adjusted costs prior faster EBIT X% grew drive this efficiencies to over the X. as simplify

while in in gross concentrated manufacturing year-over-year. First, we network supplier and flat of and our margins actions helped These headwinds equipment also be cost the to equipment mix lowering reorganized resulted offset freight. less China, product

to continue points sales service optimize we clients more Second, our operations, touch cost channels. driving customer and to lower

the XX% business. customer while SMB financial For over example, via has U.S. of handled maintaining function. of of the services These than the are I'll an touch This total XX% inside to chat service XX% demonstrate requests an more SendTech. on actions satisfaction performance continue resulted customer score. points, automated client a of decline a moment our spend durability in in

services long-term at held finance receivables, This for including the success by quarter, those growing we our made Bowes positioning financial significant Bank. Pitney progress

where select a will that and for in initiated captive and bank our receivables, bank also will the program, good lease the enterprise We initiatives participate financing be of the overall.

best see continue grew quarter with $X.X to million healthy payment in we level years. billion, and to over to XX Finance our its financing portfolio improving over the $XX trends across receivables delinquencies

Next, let's to turn Presort.

million, of per X% X.X higher-yielding piece Presort generated basis Total mail expansion compared $XXX to last pieces. Revenue offset decline. increase an EBIT XX% the of was to the quarter segment million from quarter, Adjusted year. up EBIT and XX%. revenue growth margin prior volume sortation classes billion volume in for year. segment points declined Adjusted improved to XXX X% in $XX

improvement productivity improvement our piece new gains specifically, work due the lower excellent and in to from highlights efficiencies. better investment driving team's transportation in More operational per costs. margins labor continued unit The revenue margin sorters was

new our Presort value with reflect second as along new operational rates technology half. postal will help the These services. mentioned, and on performance the rates, USPS continued July provides the investments our the Also, and improvements, implemented in drive Marc strong network clients X that continued

global shift Let's e-commerce. to

heavily Revenue was segment million changes in decline last Adjusted the $XX drove $XXX in versus million, quarter's The lower on prior services, Cross-Border in to compared our $XX weigh of EBIT. call, over how clients which our to year-over-year and we adjusted access XXX% earnings segment million year. described contributed X% of loss revenue a X Cross-Border down segment performance. largest segment to EBIT continues of loss last year. a was

versus against the $XX last million revenue, and time versus Cross-Border was prior $X year declined quarter. million profit Gross $XX down excluding million Borderfree, million $XX and period. same

Moving forward, changes to be in a less sequential basis. we quarter on expect significant Cross-Border

encouraged We volume unit continue levels, strong to improvement. set strong growth domestic with cost parcel are indicators stage for in performance. improved progress financial the the leading by several that service be These and

Let me unpack these items.

the scores, which the new competitive First, several delivery client want weeks on-time quarter. more high-XXs clients satisfaction service the high, very during services. quarter reached our all-time were performance levels in reaching with This in bolstered and an

to that year were domestic XX% close over volumes Second, XX%. prior parcel flat. parcel $XX market up grew Domestic million, against revenue the is

drove improvements, operational lower cost X% year lower X% quarter. versus with and coupled unit volumes, higher versus Third, prior prior

now Our long-term with our in costs and transportation model. labor line are

and and declined declined X% versus XX% transportation Unit costs prior and quarter, XX% prior labor same versus costs against period. the XX% year

lighter parcel. quarter, in of last to weight market lower similar pricing a However, overcapacity per revenue parcels, with from mix resulted combined pressures

revenue In in in which the have the to costs. volume addition, been per unit have absorbed market more our parcel. offerings, improvements winning These also delivery essential impacted regional dynamics

this revenue parcel at clients, already come average to We a newly address our higher margin. which signed and issue with started on XXXX per

we start volumes expect up second in new scale and ramping to clients as half the XXXX. move our into from We

reduction. From completed an planned we significant operating the a of headcount portion perspective, expense

X our we which the quarter. consolidate of in quarter second the and the to will facilities. In going second also will third made half started occur progress all We year plan expenses actions in of the to in have process marginally These the further total, on benefited benefit close provide forward. facilities, and

half third building continued of in second the on That year in expect actions, the pressure combined volume said, per required the segment. are expect come with in profitability parcel major this Cost attractive blocks for we online revenue more quarter. long-term we incremental the to

plan Let and me quarter. meaningful reduction on made restructuring the discuss cost last and announced the shift gears we progress

million. reduced We to a of centers, shifted service $XX in charge shared restructuring headcount processes resulting and more

end reaffirming global the million plan e-commerce. XXXX annualized from measures We productivity by of the in are our of restructuring savings $XX target and

balance our strengthen Next, significant regarding sheet. took structure. capital to We several actions

we quarter, $XX the in bringing to $XX total the open of bonds year-to-date. During market, purchase bought million million the

Most private proceeds week, maturity importantly, portion our our XXXX. of earlier this Loan a will we this of remaining as the used placement be XXXX. offering next After redeem $XXX be Net in balance million a A. Term notes to in well as refinancing, will our XXXX March raised maturing

guidance. to Moving

full revenue lower on XXXX, on be relatively guidance, to basis. For flat we of the year a expect comparable end our

percent to We in the continue outpace to expect revenue. adjusted EBIT performance change

actions anticipate We volumes and in to revenue versus incremental cost second EBIT third e-commerce, quarter materialize. new also global rate in quarter improve case as and Presort

e-commerce domestic In conclusion, And service in to please strong remained and growth in parcel levels, the for profit volume position questions. a maintained Cross-Border momentum call half. headwind cost strong the growth. unit quarter, open global with the improvement second Operator, SendTech and well Presort while

We'll with & Sidoti Instructions] Company. to Lebiedzinski [Operator Anthony go

So question. bigger first, bit a a I little guess, of picture maybe

since What assessment us first with share Board? new your the can as as public call, is regards -- you this far so changed. the the initial Directors in Board was So to far of of

the that information. So would new was highly on-boarding asked of say the went the with hopefully, we lots terrific. we say lots about passed I here's great through listen, would on engaged, And were They I Board of Board. great members what The following. questions.

the I would thing that's So say. first

all Jury, the as we committees unanimous. Board I'd the reconstituted were say those and votes of second thing, the

members then you beyond say there's Board would would to I consistent So with move as say, value expect. existing you fairly a as drive together members, see for, forward. coming new I the how And well entire people the would shareholder to Board, intensive Board that, effort the

Got it.

And then to regards Okay. GEC. in

biggest headwind was Cross-Border the obviously, within So that.

the we profitability Cross-Border, numbers of on if exclude have like, maybe kind to but can you comment been GEC, were ballpark how the So just of estimates? could

Yes. increased say I domestic would of directionally, the kind and profit traded parcels expedited, market. with

and then of made. in deterioration in and the somewhere, consumed profit the I the of rest think Ana that some said remarks it the Cross-Border or her segment everything revenue progress

other. level its So or that's the right one find way to going

we've our plan domestic as and we creation parcels. back to as value where along, I and go the in is, said contemplate But it's all opportunity long-term

some say parcels. it. So and keep But best and that now way through our kind would to I the Cross-Border teams results on in the doing noise we and eye their is domestic of the to prize, continue the creating their right that's work

kind the quarter points above the growth better the were terrific. second are kind of have little you go with and the would if end terrific, behaved plan. exactly, consistent levels parcel in if the of service a And unit well that The through thought market. we bit was The costs not than what long-term dynamic, of

we've of bit some on revenue services. per with that types there's a phenomenon. honestly, which on revenue a that of different on a bit the piece they're of market And little much piece, focused customers some of And pressure brought because more come new slightly little per regional is

they So revenue bring per less piece, they therefore, while also less bring cost.

So we we at are the precisely revenue that a on working plan. way expect the we more would those piece, the that costs more long-term out per get in dynamics that confident stare the the

Got it.

Okay. Cross-Border, subsegment sort divest? perhaps look a And out biggest far just not few Is a to that's something would maybe that carve could the you as so that you then that's for follow-up as consider? Or challenge so and quarters. of to been

across put and portfolio always mean, scale they efficiencies No, and together get we can share a this would the I I've in certainly true things. board. and we that consider, said, and structures those way economies is absolutely of the all

At maintain the same optionality. time, we

if would of of have And rest to we kind we a business, that Borderfree. So that of pudding, the optionality. and the a degree business mean, in I with I proof Borderfree's the that chose it the -- saw business you same say was Cross-Border exit.

Got it.

the or down or you a of Okay. revenue the is in fourth new out wins you at could reversal that have in piece -- quarter. far do per the as And see to start and given new that be will then of just maybe third you the that flattening I -- wins point client kind think that something expect something dynamic know maybe some potential so you client Is that mentioned and you quarter pipeline? the in that Or well? that would

of what revenue of what would a depends quarter-to-quarter piece the clients right are now. per are so I a for question touch say Obviously, is me ball buying, et that much consumers cetera. dynamics, on client hitting

of quarter-to-quarter, it's new be do year-to-year. I So because that of expect some think -- will I I a likely guess bit a the down it clients. little

transportation at But the RPP, the revenue per decline declined amount. same costs look again, piece quarter, second you in if

it's one So on variable. easy over-rotate to particular

on a at the and really at it You've look got to look client contribution we margin basis.

to could the attendant lead you one looking of So conclusion. cost wrong at looking without the at variable kind unit

to And Northcoast with Research. next, Mehta we Kartik can go

business. And the it's it's it I'm volume just now, the I'm think it conversation issue? wondering, Or if a you we've issue a to know reposition wondering about is a know of business I you? And secular to I a Or Cross-Border is there's you this profitable? maybe lot a make do is So temporary? for need right had way and drag. temporary it

exchange that's issue have we that's to Those of. less expect problem. concentrated stabilized that's dynamics little a touch, think all The a I a rates I has of customers. around Look, in relationships, Yes. It highly don't to to be kind is as bit evolved. Those business determined change. customer into so said,

evolves of going think forward. mark it's I how a that Cross-Border business So question

think business. your would to chunk I Cross-Border. again, kind the domestic of draw back biggest I is. over-rotate the mean it's of in attention But to where revenue easy parcel I that's the

you in out marketplace. If Or get to is that's where work your And EBITDA all some of to -- incremental itself or going got long-term either confident We'll I'm the the that this that moving not, look Cross-Border value at another if to it's way business the way. is. the question, forward. one plan,

I do seeing dividends the the a some obviously, of things lot you're Marc, then, was warehouses, a distribution you were Kind one of And must stand on you be lower of that better, doing automating of where seeing And as that? lot . you know facilities. the cost. paying unit you're

Yes. I investment. would say automation we are mostly done with the

say are front We've a couple the got great deploying We and have it. weeks process in using in team would in the ago. with some automation. the sites I deploying of are of got new opportunities a that it We had some some review we've that of them. aggressively

would say that the productivity as the was when case contemplated I what automation planned. was But deployed producing is business is that is in it

just or you to or are still hard question. to salespeople make bit all? Marc, one looking last maybe your new e-commerce outsource or environment, changing as from are company where more labor little looking hearing that that? at is get are the and today's to is these what efficient, customers is In parcels Or their a attitude

Outsource the understood what? question. I not sure I'm

their Just coming a needs take for like parcel outsourcing to over parcel shipment you all entire say, the company they us." process "Hey,

the we total Well, portion I so logistics mean, chain. a provide of

a the point we as you outsourcing are to customers little would it. more say of more model, the in So I I business bit couple things. whole mid-market a more of our end-to-end. do selective. interested look Larger the would thing would benefits of customers don't at are say, I

middle, versus the to is our postal I that with. capabilities others as labor is very very, recreating. say deal it one a our flexible have -- our unit relates and competitors. costs, final economics very delivery costs to our hard we're competitive that And in are time would service the more mile economics One got terrific

economic to for for a of capabilities to network. service -- the nice we veneer middle clients get So provide the parcels into mile postal

with one And we'll more time question, for to Matt Swope go Baird.

me last on Just GEC. one for

global out had If would have quarter? for Cross-Border, e-commerce the took you positive EBITDA

not out I would Yes, I'd going say to I'm said, Cross-Border, performance -- What I EBITDA you reiterate detail. been take to just that would is get have better. and performance of level what EBIT

that to of of $XXX-odd How And on et again short-term a up much cash asked overseas, times about and you cash have bank tied us Could characterize to is you cash you Okay. for you versus before enough. the of side. couple in or Ana, Fair make cetera? million that -- one the investments. I've available

Sure.

available X/X U.S. on hand, about So of bank is and that is between the as international. us to the cash then and rest

so again, And just highly being theoretical.

If million around? of that run need cash to able to do be you deploy still chose the Or to some would all of business? X/X, $XXX that you you keep

I amount run of No, need a working to my capital needs. that good

you. Got

is Okay. maybe Marc, And guy's meeting? your the that of Board how is the When cadence Board? happen? to then meetings What next and back -- the often does Or with question.

schedule varies. say altered I we now, accommodate coming members. right to would it I they're the frequently mean, up say more maybe would new there's because just I the Board speed. more to Board

going not Board. on very I'm engaged it's to active a But comment now say So per I the right specific would cadence se. and

come Maybe you focus what of businesses X that No, can second. And to interested that's that. people are other might just fair. sort the then imagine on out a for of in

and mix profitability in SendTech talk should still. just about little revenue expect we the on Can the the challenges profitability what going you some of in SendTech you a showed nice side, that face On forward? bit

Sure.

this a to anticipating. profitability here. my touched perspective, I From during remarks on we continue revenue we're expect those at the that margins So

that clients being -- a through equipment mix the to to are of is comes conversion, the so X concept that playing a will less up product for flows bottom an coming more the As our line. out longer now margin original see of what of extension and very renewal which through out the their a X have of XX% product IMI or instead see coming the sales new and we upfront, renewals because in a opportunities good put stream profit leases will new with that dynamics revenue more are to we better lasts we those than

a is we durability SendTech a from net-net, segment. anticipate So positive the those very thing in flows of as cash

through CES. the you of we give continue margins are they if mean, I to I'll kind the long-term where those plan. expect

all we years we've kind margins So that we businesses last experienced expect update plan, the the X for the just margins X had years. of long-term the like their are the next and

there's a pressure So performance kind we of of on little side? solid revenue on the maybe see same the the trend bit profitability but side, where

Correct.

Could And the great. good Presort? Presort talk where in of profitability, sort profitability forward and goes about strong. of exceedingly where you same numbers the speaking conversation about were That's revenue

Yes.

Let me connection. a just make

ways the the us, think you in look at they if e-commerce. for child I To absolutely is Presort were global result poster terrific. some Presort

you they're businesses If for at word analogous. the substitute X those mail fairly you and parcels, look

And sufficient of candidly, if you improve. see history operationally they've those over the last Presort as look they build got at more the as and and excellent, scale you XX years margins can

last time around that's still basic Presort In XX-plus of I forward, percent. going it ZIP Presort, margins was right code. we gave think terms the guidance

flat We positive revenue to growth there. expect slightly

available certainly and And acquisitions and to than interesting Bound become it's opportunities. opportunities to Mail If good more do there's that to better outsource, a revenue there's in also and continue decide possible which say Mail customers great So Packet on the I be would side Marketing some that. business. is

and forward. rate to of reflective it's the economics and customers' marketplace, that postal it's say that our for value would July, important I terrific economics we going the really that's provide, and the a boost in case the but our service passed

Sakon we to go Peter can Credit with Suisse. And

in growth that Following what Can up higher-yielding about on on Presort can you press in talk release, elaborate means? the the business, classes. the mail -- the the you

Sure.

Presort, mail. have first-class So inside of we

first-class majority is mainly There's We that we what is classes. of vast flats. process, mail the range. and different have mid-single-digit what marketing mail, declines in marketing And mail that

at are the mail mail continue portion which moment, growing. a to are growth small but been marketing we've and bounded hand, of into On the some the that anticipate They total declines. and that print offset of the classes matter, of help first-class going we other represent mail

And great. of you That's a that lot can automation. about, you investment done been has the said in talk

CapEx the was division what you haven't quarter, yet? that in if For had by it

Sure.

talked investments on our global CapEx of basis done. So e-commerce the is year-over-year are what we've about declining majority is a because vast

XX tell would will is that you I total then big about or percent next attributable our e-commerce. so So of CapEx global be the SendTech And one. to

a has refresh lot Presort done the orders of already. these of

I little that So of a perspective. bit gives a hope you

Okay. way twice business? you think of And you Marc, sense What your on one of said on the Cross-Border is timing business, said resolution other. the I or that

the Listen, and to I business. a say I on management mean, Board going make we're at decision the mean thoughtful continually looks that would I portfolio.

like best to forward. the not That's time. way first And our of is decision portfolio once-a-year all at ultimately, the we the make and that all, look it's So move the shareholders the for, how thing. of the and what's team we'll it's customers

to going myself a not into So I'm timeframe. box

the on guess I And the Okay. part last Cross-Border.

it it's the not value Given like said that, the is to EBITDA otherwise, negative is that Is Or you it close marketplace. EBITDA? more expensive maybe in lost you would have consistent? because guess, I

I decline in the improvement in I EBITDA didn't negative said the say was businesses. surpassed the just EBITDA. other it

is positive? that you Are saying Cross-Border EBITDA business

say it didn't I was negative.

for the any Mr. turn to Lautenbach closing call I'll And remarks. over back

morning. this joining for everyone, the of thanks, And back want go to theme my to of I kind life. Great.

with first consistent the second quarter. The expected. It out played quarter as was largely

the lot in a drama not second results. of quarter So

is I going how What forward. positioned we're like really

since moment that through affected for it the broader end tail last economic of candidly So now. we're an affected the getting like of economy fighting The interesting the fact supply feels on chains, retail, right a COVID. been we've years couple

positioned. that of we're I coming And as how we're period, out like

shape, as a we opportunity and into will good half, the get cost make Our that second are expense difference. good in meaningful

those the So the That's realize cost, us, front the expense cost we'll still in all most are of of the in and and terrific. half. -- start benefits not second of all to

good performance. didn't domestic And again, terrific, and any momentum the year PB And the adjustments e-commerce, is are positioned. the Presort were the relates some we're as our really of important parcel bank questions, the ballast then made is well SendTech, fortify and of forward, continuing. continued bank, important that for as but The enterprise. That's we the absolutely second global profit positioned excited we it get to the I that but about the Bank well that we for important also cash. there to will It's see half in overall going how said,

So moment to and is is company this positioned going economic as that well we're extremely fronts in forward. all the go on we end

we'll So Thank you with we call, busying forward that, look and to close this forward. with morning's you. going

conclude today. your service. does that And our for Teleconference for conference using AT&T Thanks for participation and

disconnect. You may now