Q2 2017 XPEL Technologies Corp Earnings Call

Aug 29, 2017 AM EDT
DAP.U.V - XPEL Technologies Corp
Q2 2017 XPEL Technologies Corp Earnings Call
Aug 29, 2017 / 03:00PM GMT 

==============================
Corporate Participants
==============================
   *  Barry R. Wood
      XPEL Technologies Corp. - CFO
   *  John Nesbett
      Institutional Marketing Services, Inc. - Founder and President
   *  Ryan L. Pape
      XPEL Technologies Corp. - CEO, President and Director

==============================
Conference Call Participants
==============================
   *  James Barnby

==============================
Presentation
------------------------------
Operator   [1]
------------------------------
 Greetings, and welcome to the XPEL Technologies Second Quarter 2017 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

 I would now like to turn the conference over to your host, Mr. John Nesbett of IMS. Thank you. Mr. Nesbett, you may now begin.

------------------------------
 John Nesbett,  Institutional Marketing Services, Inc. - Founder and President   [2]
------------------------------
 Good morning, and welcome to our conference call to discuss XPEL Technologies' Financial Results for the 2017 Second Quarter. On the call today, we have Ryan Pape, XPEL's President and Chief Executive Officer; and Barry Wood, XPEL's Chief Financial Officer, who will provide an overview of the business and operations and review the company's financial results. Immediately after the prepared comments, we will take questions from our call participants.

 Like to take a brief moment to read the Safe Harbor statement. During the course of this call, we will make certain forward-looking statements regarding XPEL Technologies and its business, which may include, but are not limited to, anticipated use of proceeds from any capital transactions, expansion into new markets, the execution of the company's growth strategy. Often, but not always, forward-looking statement can be identified by the use of words such as plans, is expected, expects, scheduled, intends, contemplates, anticipates, believes, proposes or variations including negative variations of such words and phrases or state that certain actions, events or results may, could, would, might or will be taken, occur or be achieved.

 Such statements are based on the current expectations of the management of XPEL. The forward-looking events and circumstances discussed in this call may not occur by certain specified dates or at all, and could differ materially as well as results known or unknown risk factors and uncertainties affecting the company, performance and acceptance of the company's products, economic factors, competition, the equity markets generally and many other factors beyond the control of XPEL. Although XPEL's attempted to identify the important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed except as required by applicable securities laws. Forward-looking statements speak only as of the date on which they are made, and XPEL undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

 Okay. With that, I will now to turn the call over to Ryan. Go ahead, Ryan.

------------------------------
 Ryan L. Pape,  XPEL Technologies Corp. - CEO, President and Director   [3]
------------------------------
 Thanks, John, and good morning, and welcome -- I'll extend my welcome to our second quarter earnings call as well. Second quarter revenue grew 25% to a little over $17 million. That broke our previous quarterly record for our quarterly revenue. So we think those outstanding results reflect effective execution of our Get Close to the Customer strategy and obviously provides confirmation that I think we have a good strategy to continue to drive top line growth.

 So we saw a strong revenue growth across all major product lines during the quarter. We had a couple recent acquisitions in the last year, beginning of this year with some of the installation facilities. So those are fully integrated, continue to meet our expectations. And the brand continues to build strength in the marketplace. I think it's evidenced by the increasing demand we see and the strong nature of the quarter. And primarily, I think the quarter really represents a sort of back-to-business quarter for us. So it's really the first quarter free of some the distractions that have existed over the past several quarters or really over the past year plus. And I think that's demonstrated in the results. And I think that internally, we very much felt that way and our team very much felt that way. So that for me is really the highlight of the quarter.

 So I'm really pleased with the revenue performance of some of our international subsidiaries. Revenue in Canada and the Canadian business grew over 40% for the quarter over the prior year. So that's helped, obviously, by improving economic conditions in Canada off of last year and just a crisp execution of our team. I'm very proud of the team. I mean, that's -- for one of our best markets, that's just a tremendous number.

 So in Europe, under Tim Hartt's leadership, we're continuing to scale up in this -- what's a very underpenetrated region. So we talked about it before, but it's very much in the developmental stage. So we're sort of out there trying to acquire and help build some sort of marquee customers and those that'll really be a showpiece for us as we grow overall. So I think we were pretty pleased with the progress there and continue to have really high expectations for that going forward.

 As you probably saw, gross margin as a percentage of revenue remained relatively flat over the prior year quarter and we posted EBITDA growth a little over 6%. So I think that a couple things there when you look at growth rate in Canada and Europe, exceeding sort of the U.S. and rest of the world business as it did for the quarter in terms of growth rate, we feel that in terms of EBITDA contribution, mainly because of the continued impact of currency. So even in Canada growing 40%, we're still sort of off on the currency from a historical level. And even actually on a constant-currency basis, as Barry will say, Canadian dollar was even off slightly over the prior year and as we all know, prior year wasn't very good. So from that standpoint, when we see that really good revenue growth, we don't get quite the leverage on it at this point, but we know that we will going forward.

 So Barry will get into details later, but our SG&A growth for this quarter over the prior year reflects continued investment in the business. SG&A growth is a bit higher than we were trending in Q2, Q3 of last year. So with the other issues behind us, we're going to return to more of an enhanced focus to make sure that cost structure is right. I think we're really making progress on that the midpoint of last year, and obviously with some of the other things going on, that kind of took a backseat.

 I'd also point out that we do have operation in Houston. While that operation's closed this week with Hurricane Harvey, all of our employees are safe and the facility is secure. No damage there. So obviously, a huge disaster there.

 Finally, I'd like to formally welcome Mike Klonne to our Board of Directors. Mike was elected at the shareholders' meeting in June, a great addition to the board. He served as President and CEO of Bostik Inc., a global adhesives company. He had responsibility for more than 1,000 employees in 20 sites of theirs in North America, Latin America, Europe and Asia, heavily involved in their M&A strategy. So I think during his tenure, they grew revenue from about $250 million to over $1 billion. So he's already provided tremendously valuable insight during his short time on the board and we really look forward to that going forward.

 So overall, I'm pleased with our second quarter performance, especially the top line, obviously. I think it was really a good quarter for the company in terms of getting the team engaged and getting everybody focused on the thousand little things that we need to do right every day to serve our customers and to drive growth. So it was nice to be able to focus on those things.

 So with that, I will turn it over to Barry to go through the numbers and then take some questions.

------------------------------
 Barry R. Wood,  XPEL Technologies Corp. - CFO   [4]
------------------------------
 Thanks, Ryan, and good morning, everyone. Before I take you through the numbers, let me first say that certain of our key measurements that I'll talk through today will be stated on a constant-currency basis. We believe that comparing these numbers on a constant-currency basis provides a little better insight and visibility into our operations. Our constant currency numbers are a non-IFRS measure and reflect the current period's results as if we were using prior comparative periods of exchange rates. So with that said, I'll jump into the numbers a little bit.

 For the quarter, as Ryan alluded to, revenues increased 25% to $17 million. On a constant-currency basis, revenues grew 26.3% for the quarter. And also, as Ryan alluded to, our second quarter revenue was the highest in our company's history by far. So great quarter for our top line growth. Growth was strong across all product lines, but I will highlight our window film product line, which represented 8.4% of our total second quarter revenue. And on a year-to-date basis, revenues grew 18.9% to $29.7 million.

 Gross margin for the quarter grew 23.1% and declined only slightly as a percentage of sales to 27.1% versus prior year quarter. And on a year-to-date basis, gross margin grew 13% and decreased as a percentage of sales from 28.2% to 26.8%. This degradation was due mainly to the supply overhang issues we talked about last quarter. I will note our warranty cost line item improved significantly this quarter as expected, and we expect continued improvement in that line item as we move forward.

 On the SG&A front, expenses for the quarter increased 39.4% versus prior quarter and 39.9% on a year-to-date basis. The second quarter increase was mainly a function of our growth and continued investment in the business. About 50% of our SG&A growth comes from our personnel-related line items. We now have 133 full-time equivalents in the business versus 110 full-time equivalents during this time last year or Q2 of 2016. We also record commissions paid to our salespeople in this line item, which obviously will increase consistent with sales growth. And as noted in past quarters, we continue to see increases in sales and marketing occupancy and IT costs as we continue to build up for scale. In addition, we also experienced a sizable increase in our internal shipping costs where we ship product to our various satellite locations as we supply those warehouses and company locations with inventory, consistent with our Get Close to the Customer strategy.

 And then finally, as we noted last quarter, effective January 1, we changed our method of depreciation, depreciating our fixed assets from the double declining balance method to the straight-line method. And as you'll recall, we made this change because we think it better reflects how we consume the future benefits of our assets. This change is considered a change in accounting estimate under IFRS and therefore the effects of which are handled prospectively. And the impact of this change for Q2 is approximately $90,000. And this change effectively accelerated depreciation from some of our older assets into 2017 and this change will lessen significantly as we move into 2018 and beyond.

 On a year-to-date basis for SG&A, the increases there included expenses related to our dealer conference held in the first quarter as well as some of the legal expense overhang that we discussed last quarter. I will note, however, that our Q2 professional fee line item decreased about 13% versus prior quarter due to the reduction in legal costs, which is very nice to see. EBITDA increased about $99,000 or 6.23% versus prior quarter and decreased to $2.1 million or 23% on a year-to-date basis. On a constant-currency basis, EBITDA increased 6.3% for the quarter.

 Net income for the quarter was relatively flat versus prior year quarter, finishing at about $750,000. On a year-to-date basis, net income was $685,000, which is reflective of the first quarter cost incurred related to the dealer conference, the legal fees and supply-related challenges that carried over that we discussed last quarter. And on a constant-currency basis, net income was about -- right at about $751,000 for the quarter.

 On the cash flow front, our net cash used in operating activities totaled $3.7 million due mainly to the cash outflows related to the continued planned buildup of our inventory pursuant to the execution of our strategy to place our inventory closer to our end customers. In addition, with those higher inventory buildup, it sort of accessed as a de facto hedge against future supply interruption should they occur. Our inventory turnover for year-to-date 2017 was 1.9x compared to 2.4x in prior year-to-date. Strategically, we believe in overall increase in our inventory level is the right thing to do, but we'll be working to manage this closely to the optimal level in the next 2 quarters. Our balance sheet continues to be very strong, as evidenced by our liquidity ratios, and our debt-to-equity ratio continues to be nicely optimized and consistent.

 So all in all, a very successful quarter for XPEL. And we look forward to continuing outstanding results as we move forward. And with that, operator, we'll now open the call up for questions.

==============================
Questions and Answers
------------------------------
Operator   [1]
------------------------------
 (Operator Instructions) Our first question comes from the line of [Adam Goldstein], a private investor.

------------------------------
 Unidentified Shareholder,    [2]
------------------------------
 So from my perspective, it was a nice quarter in terms of revenue. So congratulations on that. I guess I'm trying to understand, from a big picture perspective, why it seems over a period of years now, we don't see the operational leverage that one normally sees in a business that -- whose revenue has expanded by the amount XPEL's had. I mean, it's gone from like back in 2013, an $18 million revenue; this year, on track for higher than $60 million. But SG&A cost as a percentage of revenue has actually gotten worse over the years if we compare like 2014 and '15 and '16. So I know there's always specific reasons when it's discussed, but can you give a big picture understanding of why just over a period of years you think we haven't seen the kind of operational leverage you normally see?

------------------------------
 Ryan L. Pape,  XPEL Technologies Corp. - CEO, President and Director   [3]
------------------------------
 Sure, Adam. Ryan. I think that if you go back and sort of look at our comments over the years, what we used to talk about was that we basically -- probably, I don't know if it's at the time that you're speaking of, but we didn't have the infrastructure and the staff to support sort of where we were, and we were super lean. So you had kind of this evolution where you're sort of building to the type of staff you need to be able to support the growing business and we thought for a period of time that we're really -- we're in the hole on that. So then we kind of moved through that phase and then move into sort of where we are now, where we're growing. Obviously, we're establishing the different components of the international business. I think when you look at Europe today, I mean, there's a lot of SG&A cost that we've put in to help support the revenue we're generating, but clearly, the SG&A cost there will support a lot more revenue. So that's an investment not in the form of an acquisition, but investment in the future. And then I think you can't ignore the impact of currency. You look at Canada as a percentage of our world today and you look at the kind of nominal exchange rate where we are today versus where things were sort of prior to the beginning of 2015, that alone has a huge impact on the business, and now we see that little bit in Europe, too. So it's always a struggle and a balancing act to say where are you investing for the long term in terms of your people, in terms of new initiatives? And then what do you do to try to gain most leverage to the bottom line? I think that we saw -- middle of last year, we saw increasing leverage in terms of SG&A growing slower than revenue, and that's certainly the path that we want to be on under the circumstances for a variety of reasons. At the end of last year, beginning of this year, we kind of regressed from that a bit, but that's still sort of where we think we can be and where we will be. All pending, we think there's other really good opportunities that are going to set us up for long-term growth. We'll still evaluate that case by case, but I think it's a combination of those things that you see over time.

------------------------------
 Unidentified Shareholder,    [4]
------------------------------
 Okay. And I know there's something specific here that the quarterly employee salaries and benefits under direct cost increased by 67% from the same quarter previous year. Sounds like the number of full-time employees increased by much less than that. So any (inaudible)...

------------------------------
 Ryan L. Pape,  XPEL Technologies Corp. - CEO, President and Director   [5]
------------------------------
 Yes, I don't have that exact number in front of me. I think if you recall -- I'm not sure which comparison you're looking at, but we had an increased allocation of personnel costs to direct costs via the installation businesses. So as we've added installation businesses like Las Vegas and Dallas, that represents the -- majority of the personnel cost for those businesses is now part of direct cost because they're actually installing the product. So that may be what you're seeing there.

------------------------------
 Unidentified Shareholder,    [6]
------------------------------
 Okay. One last question. There was a pretty large cash outflow due to operations this quarter. I know inventory was a big part of that. It looks like there's only $1.5 million left of availability on your revolving credit line. So are there any issues with cash outflow over the next few quarters?

------------------------------
 Barry R. Wood,  XPEL Technologies Corp. - CFO   [7]
------------------------------
 Adam, this is Barry. No, we don't see any issues at all with that. In fact, we're continuing to work through that and working with partners to help us grow the business. So we're -- there'll be no issues with that as we go forward, that we see.

------------------------------
 Ryan L. Pape,  XPEL Technologies Corp. - CEO, President and Director   [8]
------------------------------
 Yes. And Adam, I'd just add to that, that I think that you see the growth in inventory. Certainly, from the beginning of the year, we view that as a positive thing. And we sort of made a conscious commitment that we're going to carry more inventory in general going forward. But then we've also engaged in a process to do some other things that aren't obvious in the total inventory number just to increase our internal efficiency, sort of number SKUs. And there's elements of the inventory that historically don't turn as fast as others, and so we're really consciously focused on that so that at the end of today, yes, we carry more inventory in perpetuity, but then hopefully within that, when you sort of break it down, we're even that much more efficient, which effectively is giving us that much more available inventory. So hopefully, we get the benefit of increased inventory even beyond what you actually see in the number of -- in the dollar amount of increased inventory. But clearly, during the quarter, that was a big use of our cash, but for a good reason, we think.

------------------------------
Operator   [9]
------------------------------
 Our next question comes from the line of [Jason Herchman], a private investor.

------------------------------
 Unidentified Shareholder,    [10]
------------------------------
 First of all, glad to hear that everyone is safe in Houston, and hopefully, your operations won't be too disrupted and everybody in Houston can get back to normal sooner rather than later. So a really terrible thing down there. So a couple small questions, and then maybe just some big picture questions. If you can go over just the increase in travel-related costs for this quarter. Was there -- and just explain why that one has gone up dramatically year-over-year?

------------------------------
 Ryan L. Pape,  XPEL Technologies Corp. - CEO, President and Director   [11]
------------------------------
 Yes, I think it wasn't any one thing in particular. It just happens that we have a number of sort of long-running projects, either specific things we're doing or specific projects related to new customers that just represented a lot of travel sort of in the quarter, combined with some of our timing of certain marketing events and things like that. So I think it's probably more of a timing issue with some of those than really a change in anything more material.

------------------------------
 Unidentified Shareholder,    [12]
------------------------------
 Okay. And a similar question. On the professional fees, glad to see it starting to come down. Perhaps it hasn't come down percentage-wise as much as one might have expected. Are there some residual legal fees from formal lawsuits still in the mix in this -- in Q2?

------------------------------
 Ryan L. Pape,  XPEL Technologies Corp. - CEO, President and Director   [13]
------------------------------
 There were a little bit. And then I think also when you look at the distribution in our legal fees last year, Q2 was relatively light legal fees. So those expenses, relative litigation really accelerated in Q3 and Q4 of last year. So from a comparison standpoint and with a little bit of hangover, that difference wasn't as dramatic in Q2.

------------------------------
 Unidentified Shareholder,    [14]
------------------------------
 Okay. Now just a couple of bigger picture questions, if I may. In terms of the investments that you're making in personnel, is that -- could you give us a little bit more color in terms of, geographically, where it is occurring? Is it occurring mostly in Europe, in the United States, in Canada? In China? Can you just give a little bit more color? Because I presume maybe some of that investment is occurring in Europe.

------------------------------
 Ryan L. Pape,  XPEL Technologies Corp. - CEO, President and Director   [15]
------------------------------
 Yes. So I think the Canadian headcount's been relatively flat over time. I think we've added a person or 2 over a couple of years. So that's been not a factor. Europe, obviously, we've seen, on a percentage basis, the greatest increase in headcount. And that's just trying to build that, again, and I think to the other question earlier, trying to build that to the level that we need to sustain the size of the operation we think it can become. So this is like salespeople, customer service people, folks doing designs for our software installation training. So just sort of that kind of core of the business that really has to be replicated in Europe. And I think now, we've got some number of people kind of in all of those key roles. So I think we've kind of staffed that to a level that we'd like it to be. And then the balance of that would be increase in U.S. headcount. And that's -- there's a couple trends there that I think will kind of shake out over the next few quarters, which is, in certain areas where we relied principally on third-party or external firms or contractors to do things, some marketing, some IT things, we've been going through a process to bring those in-house. And that's either a zero-sum in terms of no extra cost or actually a slight reduction in cost to internalize those things. So that's going to drive some -- it's going to do a shift to cost in a sense from other line items in SG&A into personnel cost for some of those. But we think these are things that are really core to the business and they're ongoing expenses, so they need to be done with our people. So that's -- you sort see that trend, I think slightly increased full-time count in lieu of some sort of external third parties.

------------------------------
 Unidentified Shareholder,    [16]
------------------------------
 Okay. And final question is -- final question I have is basically if you can just provide a little bit of color on the Chinese market and how that's developing in Q2 and whether that's continuing to move forward nicely.

------------------------------
 Ryan L. Pape,  XPEL Technologies Corp. - CEO, President and Director   [17]
------------------------------
 Yes, I think overall, in China, relative to paint protection, I would call it, it was an okay quarter in terms of we saw some growth. We obviously like to see it higher. The other thing that's very positive that's been developing alongside that really coming out of Q2 at the end of Q2 is development of some window film opportunities in China and some very specialized products that we're creating for that market. So overall, I think that we still have really high expectations and expect to see a lot of growth there. What we do tend to see is, obviously, we're working with local partner and distributor and there's other obstacles and things that may get in their way from time to time that sort of make quarter-to-quarter a bit unpredictable for us. But the macro trend is still a positive one and still one that we expect to see a lot of growth from going forward, both paint protection and window film in that market.

------------------------------
Operator   [18]
------------------------------
 (Operator Instructions) Our next question comes from the line of James Barnby of DKAM.

------------------------------
 James Barnby,    [19]
------------------------------
 Just a question here just on the European operations. It looks like there was a bit of a drag on the net income for the quarter. I was wondering if you could just give us a little bit more details on the nature of those costs. I can obviously see the breakdown with it all rolled up, but anything specific to Europe would be valuable. And then just wondering if you anticipate running losses on European operations for the remainder of this year and next year, or if -- like where do you see it being breakeven?

------------------------------
 Ryan L. Pape,  XPEL Technologies Corp. - CEO, President and Director   [20]
------------------------------
 Sure. I think it's possible how it presents in the segment revenues, see the loss there through the rest of the year. I'd caution sort of reading too much into the individual segment profitability only because you've got multiple factors. You've got -- it's a truly global nature of our employee base, which means that we've got people in the U.S. contributing to the European efforts in certain ways and vice versa. So it's perhaps a little less segment driven than segment-based reporting would have you believe, at least in terms of practical impact. And then obviously, there's issues related to the transfer pricing and cost of goods between the subsidiaries which sort of complicate an easy understanding of the results. But if you think about it overall, I think it's fair to say that when you look at the European operations, we've now, relative to the earlier question, staffed it kind of with all the key pieces that we need to support that, and they're there to support a larger revenue than we currently have. So we are in a situation where we anticipate growing revenue through those costs in Europe. And I will say that overall, that does represent a cost, and ultimately, a hit to your sort of net number to be able to do that, but we think it's the right thing to do to set the stage for that market to be like a lot of our other markets.

------------------------------
 James Barnby,    [21]
------------------------------
 Great. Okay. And then I was wondering if you could provide an update on the recent M&A focus that you talked about earlier in the year? Are you still as optimistic? Have you made any the additions to your M&A team? And how do things look on that front?

------------------------------
 Ryan L. Pape,  XPEL Technologies Corp. - CEO, President and Director   [22]
------------------------------
 Yes. So I think you're probably referring to sort of our posture that we're actively looking for installation businesses in key markets to acquire as part of our Get Close to the Customer strategy and the Market Development strategy. That's very much still active and we're still either pursuing those opportunities in one stage or another. I think that one of the things we've learned in doing that is that given the nature of these customers, some of these things take longer than you might think just because the folks we're dealing with are very active in their business, so to get them to step away takes some time. But given what we see there and what we've seen from the type of deals we've done so far, we're still very much interested in pursuing that and adding to that and doing that at some scale for the rest of the year.

------------------------------
Operator   [23]
------------------------------
 There are no further questions over the audio portion of the conference at this time. I would now like to turn the conference back over to management for closing remarks.

------------------------------
 Ryan L. Pape,  XPEL Technologies Corp. - CEO, President and Director   [24]
------------------------------
 I just want to say thanks to everybody for participating, and we look forward to speaking again next quarter.

------------------------------
Operator   [25]
------------------------------
 This concludes today's conference. Thank you for your participation. You may disconnect your lines at this time. Have a wonderful rest of your day.




------------------------------
Definitions
------------------------------
PRELIMINARY TRANSCRIPT: "Preliminary Transcript" indicates that the 
Transcript has been published in near real-time by an experienced 
professional transcriber.  While the Preliminary Transcript is highly 
accurate, it has not been edited to ensure the entire transcription 
represents a verbatim report of the call.

EDITED TRANSCRIPT: "Edited Transcript" indicates that a team of professional 
editors have listened to the event a second time to confirm that the 
content of the call has been transcribed accurately and in full.

------------------------------
Disclaimer
------------------------------
Thomson Reuters reserves the right to make changes to documents, content, or other 
information on this web site without obligation to notify any person of 
such changes.

In the conference calls upon which Event Transcripts are based, companies 
may make projections or other forward-looking statements regarding a variety 
of items. Such forward-looking statements are based upon current 
expectations and involve risks and uncertainties. Actual results may differ 
materially from those stated in any forward-looking statement based on a 
number of important factors and risks, which are more specifically 
identified in the companies' most recent SEC filings. Although the companies 
may indicate and believe that the assumptions underlying the forward-looking 
statements are reasonable, any of the assumptions could prove inaccurate or 
incorrect and, therefore, there can be no assurance that the results 
contemplated in the forward-looking statements will be realized.

THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATION
OF THE APPLICABLE COMPANY'S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TO
PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS,
OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS.
IN NO WAY DOES THOMSON REUTERS OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER
DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN
ANY EVENT TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S
CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE
MAKING ANY INVESTMENT OR OTHER DECISIONS.
------------------------------
Copyright 2018 Thomson Reuters. All Rights Reserved.
------------------------------