Ladies and gentlemen, thank you for standing by. Good day, and welcome to the WD-forty Company 4th Quarter and Full Fiscal Year 2015 Earnings Conference Call. Today's call is being recorded. At this time, all participants are in a listen only mode. At the end of the prepared remarks, we will conduct a question and answer session.
I would now like to turn the presentation over to the host for today's call, Ms. Wendy Kelly, Director of Investor Relations and Corporate Communications. Please proceed.
Thank you. Good afternoon, and thanks to everyone for joining us today. On the call today are WD-forty Company's President and Chief Executive Officer, Gary Ridge and Vice President and Chief Financial Officer, Jay Remboldt. Following their prepared remarks, the operator will come back on the line for the Q and A portion of the call. Before we get started, let me remind you that supporting materials for this call are available on our Investor Relations website at investor.
Wd40company.com. In addition to our traditional disclosures, the company has published some supplemental slides, which can be downloaded from this website. We encourage investors to review these slides in conjunction with today's prepared remarks. A replay and transcript of today's webcast will also be made available at that location shortly after this call. As a reminder, today's call includes forward looking statements about our expectations for the company's future performance.
Of course, actual results could differ materially. The company's expectations, beliefs and projections are expressed in good faith that there can be no assurance that they will be achieved or accomplished. Please refer to the risk factors detailed in our SEC filings for further discussion. Finally, for anyone listening to a taped or webcast replay or reviewing a written transcript of this call, please note that all information presented is current only of today's date, October 15, 2015. If the company disclaims any duty or obligation to update any forward looking information, whether as a result of new information, future events or otherwise.
With that, I'd now like to turn the call over to Gary.
Thank you, Wendy. Good day, and thanks for joining us for today's conference call. To sum up fiscal year 2015, it was the best of times and it was the worst of times. Fiscal year 2015 was a year of solid operating performance that was obscured by the impacts of political events, economics instability, a strong U. S.
Dollar and a particularly weak euro against the pound sterling. We are proud that we've been able to build a global company and we currently generate approximately 40% of our sales in currencies other than the U. S. Dollar. With this comes foreign currency risk.
We currently have 4 subsidiaries located in the United States sorry, outside of the United States that generate sales and do business in currencies other than the U. S. Dollar. They are located in the United Kingdom, Canada, Australia and China. The main currency in which each of these subsidiaries conduct business is called its functional currency.
We have foreign currency translation exposure when we translate the results of our foreign subsidiaries from their functional currency into U. S. Dollars. The continued strengthening of the U. S.
Dollar deflates the net sales denominated in currencies other than U. S. Dollar and thus has a negative effect on our consolidated results. In addition to this currency translation exposure, our U. K.
Subsidiary also experiences foreign currency transaction exposure because it conducts businesses in currencies other than its functional currency, the pound sterling. A significant portion of EMEA's net sales are generated outside of the U. K. And transacted in euros and U. S.
Dollars. When these sales are converted into pound sterling, EMEA's reported results are impacted by changes in the currency exchange rates for those two currencies. In 2015, the euro has continually weakened against the pound. This transaction exposure has been most significant to our business. Today, we reported consolidated net sales of $378,200,000 for full fiscal year, which is a 1% decline from last fiscal year.
In the Q4, consolidated net sales were $92,000,000 which is 6% decrease from the Q4 of last year. The impacts of changing foreign currency exchange rates significantly reduced our net sales in fiscal year 2015. When you take both translation and transaction exposure into consideration, changes in foreign currency exchange rates reduced our total net sales by around $16,000,000 for the full year. Consolidated net sales were reduced by about $11,000,000 due to the impact of the strengthening of the U. S.
Dollar against the functional currencies of our subsidiary. This is the translation related exposure. In addition, consolidated net sales were reduced by about 5,000,000 dollars primarily due to the impact of the weakening of the euro. This is the transaction related exposure. However, despite these challenges, we reported full year net income of 44,800,000 dollars and a diluted earnings per share of $3.04 In the 4th quarter, net income was $11,700,000 and diluted earnings per share were $0.80 So what happened?
Let's start with the Eva segment as it is where we experienced the most significant challenges, particularly related to currency headwinds. Net sales in EMEA, which include Europe, Middle East, Africa and India, decreased to 136 $900,000 for the full fiscal year, down 10% versus last year and $33,200,000 in the 4th quarter, down 17% versus last year. EMEA's results in the quarter and full year periods were negatively impacted by foreign currency exchange headwinds as well as the continued political and economic instability in Eastern Europe. We sell into EMA through a combination of direct operations as well as through marketing distributors. Direct market sales accounted for 63% of EMEA's total sales in fiscal year 201570% in the 4th quarter.
Our direct market sales declined 7% in the full year and 12% during the 4th quarter. The declines in both periods were almost direct market sales results in the local currencies in which they are transacted. In the United Kingdom, where we sell in pound sterling, sales increased 9% for the full year and 13% for the Q4. In Europe direct markets, where we sell in euros, sales increased by 6% for the full year and for the Q4. These sales increases in local currency were due to the continuing expanded distribution and growth of our base business in these markets.
So there you have it. Currency headwinds are obscuring the true results and growth in our European direct markets. Now let's turn to the region's distributor markets, which accounted for 37% of EMEA's total fiscal year sales and 30% of sales during the Q4. Distributor market sales decreased 14% in the fiscal year and 26% in the 4th quarter. This is the first time in 10 years that we failed to achieve full fiscal year growth in the EMEA distributor markets.
This was primarily due to three reasons: the continued political and economic instability in Russia, including a massive currency devaluation and accompanying recession. For the 1st full fiscal year of sales in Russia declined about 30% compared to last year. The ongoing political and economic instability in Ukraine, including combat in the Donbas region, which is the industrial heartland of the country for the full year sales in Ukraine declined 77%. Sales declined in the Middle East, primarily due to lower sales of WD-forty multiuse product in Afghanistan. Our marketing distributors in Russia and the Ukraine are actively pursuing strategies to reestablish growth in these countries.
But despite our optimism for economic and political stability, we are unable to predict the immediate future for these markets. We find comfort in the fact that virtually all of the remaining distributor markets continue to see year over year growth. Although sales throughout IMO were challenged throughout the year in this fiscal year, WD-forty Specialist product line sales were strong. Reported sales of the WD-forty Specialist product line in EMEA increased 16% in the full year and 19% during the Q4. So let's now jump back across the pond and discuss our results in the Americas.
Net sales in the Americas, which include the United States, Latin America and Canada increased to 187 point $3,000,000 for the full fiscal year and $48,100,000 in the 4th quarter, both periods were up 4%. The percentage sales growth in the Americas segment was even higher if we look only at our maintenance products. Maintenance products in the Americas increased 5% in the full year and 6% in the 4th quarter. For both periods, this growth was due to higher maintenance product sales in the U. S.
And Latin America, driven by new distribution and successful promotional programs. These increases were partially offset by sales declines in Canada, which was significantly impacted by unfavorable changes in foreign currency exchange rates. Looking a little closer at the U. S, sales were up 4% in the full year and 6% during the Q4, driven by higher maintenance product sales. In the U.
S, sales of WD-forty multi use product were up 3% in both periods and sales of WD-forty Specialist were up 25% for the full year and 49% in the 4th quarter. The sales increases for WD-forty Specialist for both periods was due to new distribution and increased promotional activity. Total sales in Canada were down 8% for the full year and 20% during the quarter. In its functional currency, the Canadian dollar, sales were up 3% for the full fiscal year, but down 7% for the 4th quarter. The declines in the 4th quarter were driven by the timing of our promotional activities.
Total Latin American sales were up 7% for the full year and 8% in the 4th quarter. The sales increases in Latin America for both periods were due to higher sales of WD-forty multiuse product, primarily due to high level of promotional programs and increased distribution, particularly in Brazil and Mexico. As a reminder, our maintenance products exclude our home care and cleaning products. We can consider our home care and cleaning products, particularly those in the U. S.
As harvest brands that continue to generate meaningful contributions and cash flow, but are generally expected to become a smaller part of our business over time. Now let's take a look at Asia Pacific. Net sales in Asia Pacific, which includes Australia, China and other countries in the Asian region, increased 6% to $54,000,000 in the first in the full fiscal year and decreased 5% to $10,600,000 in the 4th quarter. Changes in foreign currency exchange rates had an unfavorable impact on sales. On a constant currency basis, sales in Asia Pacific would have increased 10% for the full year and 4% for the 4th quarter.
In Australia, reported net sales were down 3% for the full year and 8% in the 4th quarter. Changes in foreign currency exchange rates had a negative impact on these results. In its functional currency, the Australian dollar, sales were up 10% in the full year and up 13% in the 4th quarter. This growth was due to increased distribution and promotional activities in both periods. Sales in China increased 10% for the full year and 7% in the Q4 due to new distribution, much of which came from Southern China and ongoing promotional activities throughout the country.
We continue to be optimistic about the long term opportunities in this region, although we expect
a lot
of volatility along the way due to the timing of promotional programs, the building of distribution, shifting economic patterns and the varying industrial activities. Sales to our Asian distributor markets increased 11% for the full fiscal year and they decreased 12% during the Q4. Increased sales in the full fiscal year were driven by higher sales volume of WD-forty Multi Use Products in markets particularly of South Korea, the Philippines and Indonesia. The decline in sales in the 4th quarter was driven primarily by the high level of purchases made by our customers in the 4th quarter of fiscal 2004 in advance of price increases implemented in the region in the Q1 of fiscal 2,005. Now I'm going to take a break and hand over to Jay, who will continue on with a review of the financials.
Thank you, Gary. In addition to the information presented on this call, I suggest that you review our press release, which is issued earlier today, as well as our 10 ks report for the fiscal year 2015, which we'll expect to file on October 22. Let's start with a discussion about how we performed against our most recent fiscal year guidance. We've projected our fiscal year net sales results to be in the range of $383,000,000 to $390,000,000 which meant flat to growth of 2%. Today, we reported fiscal year revenue of $378,200,000 reflecting a decline in sales of about 1%.
As Gary discussed in detail, the stronger than anticipated impact of foreign currency exchange rates, as well as the economic and political challenges in some of our European markets made it difficult for us to forecast top line sales results. We had projected gross margin to be better than 52% and today we reported gross margin of 52.9%. We expected our global advertising and promotion investment to be in the range of 6% to 7% of net sales and today we reported our A and P investment of 6% of sales. We expected net income to achieved a diluted earnings per share of between $3.03 $3.09 assuming 14,700,000 weighted average shares outstanding. Today, we reported net income of $44,800,000 and a diluted earnings per share of $3.04 based on 14,600,000 weighted average shares outstanding.
Now on to our fifty-thirty-twenty rule. For many years, we've run our business by what we call our fifty-thirty-twenty rule. We use this rule to guide and measure the performance of our business. Under the fifty-thirty-twenty rule, 50 represents gross margin, which we target to be above 50% of net sales. 30 represents our cost of doing business, which is our operating expenses excluding depreciation and amortization.
Our target is to be at 30% of net sales. And finally, 20 represents EBITDA. If our gross margin is above 50% and our cost of doing business is 30%, we'll generate EBITDA above 20%. The descriptions and reconciliations of these non GAAP measures are available in our SEC filings and in our investor presentation, which is available on our Investor Relations website. Beginning this year in fiscal 2016, we are changing to a new fifty fivethirtytwenty five rule.
This means we'll be targeting gross margin of 55%, cost of doing business at 30% and EBITDA of 25%. By aligning the organization behind these stretch targets, we will continue to improve the financial performance of our business. Now let's take a look at our fiscal 2015 results for the last time under our fiftythirtytwenty rule. 1st, gross margin. In the 4th quarter, our gross margin was 54.3% compared to the 52.7% last year, driven primarily by the net favorable impact of 2 30 basis points from major input costs.
This was primarily due to decreases in the cost of crude oil, one of the primary feedstocks of our petroleum based specialty chemicals. These improvements to gross margin were partially offset by changing foreign currency exchange rates. In the 4th quarter, foreign currency exchange rates adversely impacted our gross margin by 70 basis points. This is because in EVA our cost of goods are sourced almost entirely in pound sterling, while approximately 45% of our revenues are generated in euros, 30% in pound sterling and the remaining 25% in U. S.
Dollars. The euro deterioration against the pound more than offset any benefit from the strengthening U. S. Dollar. As a result, revenues in total were worth less in pound sterling, thus decreasing our gross margin.
Although there were several other items that impacted gross margin, they were individually insignificant. The themes that we just discussed for the Q4 for gross margin also apply to the full fiscal year. Gross margin was 52.9% compared to the 51.9% in the prior year. Major input costs had a net favorable impact of 160 basis points. Foreign currency exchange rates adversely impacted gross margin by 50 basis points in the 4th quarter.
All other items combined had an unfavorable impact on gross margin of 10 basis points. If the cost of crude oil goes up significantly in the future, we will surely see some impact to our gross margin. But the new gross margin goal of 55% that we are targeting is not contingent on oil staying at any particular price point. We cannot control the global market dynamics such as the price of crude, but we will continue to be focused and deliberate in managing the rest of our business for continued growth in our gross margin toward that target of 55%. Now I'll address our cost of doing business.
In the Q4, our cost of doing business was 35% compared to the 34% last year. For the full fiscal year, our cost of doing business was 34%, flat to last year. The revenue decline for the fiscal year negatively impacted our cost of doing business percentage. We expect to move closer to our target of 30% over time as revenues grow. While our target is to have our cost of doing business at 30% of net sales, we plan to continue the investments we make in research and development, brand protection, as well as regulatory and quality assurance.
For the full fiscal year, 76% of the cost of doing business came from 3 areas. Our people costs or the investments we make in our tribe, our marketing investments and the cost to get our product to our customers. For the Q4, SG and A expense decreased to $27,400,000 down from $28,300,000 last year. The decrease was primarily due to lower earned incentive compensation, lower professional service costs and changes in foreign currency exchange rates. These decreases were partially offset by higher costs associated with new product development.
For the full fiscal year, our SG and A expense increased slightly to $108,900,000 up from $108,600,000 last year. We continued our investment in innovation and renovation and invested $3,500,000 during the 4th quarter and a record $9,000,000,000 for the full fiscal year. This investment is associated with our maintenance products and directly supports our strategic initiatives. Our innovation team engages in consumer research, product development, product improvement and a variety of testing activities. Today, our organization has more resources in place to manage product innovation, product renovation, product quality, regulatory and consumer safety than ever before in the company's history.
Advertising and sales promotion expense increased by 2% to $6,000,000 in the 4th quarter. The increase in advertising and sales promotion expense was primarily due to higher level of activities and programs in the Americas. For the full fiscal year, our A and P expense decreased by 4% to $22,900,000 As a percentage, our A and P investment decreased from 6.2% to 6% for the full year. The decrease for the full year was primarily due to lower level of promotional programs and marketing support in EMEA. And that brings us to EBITDA, the last of our fifty-thirty-twenty measures.
EBITDA was 19% of net sales for both the Q4 and the full fiscal year. Looking at the amortization, the amortization of intangibles remained constant at approximately $700,000 in the Q4 as compared to the prior year quarter. For the full year, such expense increased by $400,000 from $2,600,000 to $3,000,000 primarily due to the intangibles acquired in the GT85 acquisition completed at the beginning of the fiscal year. Total operating income in the 4th quarter was $15,800,000 versus $16,600,000 in the same period last year. Operating income in the fiscal year was $65,400,000 compared to $63,700,000 in the prior year.
Net income for the Q4 was $11,700,000 versus $11,500,000 in the prior year quarter. Changes in foreign currency exchange rates had an unfavorable impact of $800,000 on the translation of our consolidated results for the quarter. Our diluted earnings per common share were $0.80 in the quarter compared to $0.77 in the prior year period. Diluted weighted average shares outstanding decreased to 14,500,000 shares from 14,900,000 shares in last year's quarter. And now net income for the full year at $44,800,000 versus $43,700,000 in the prior year.
Changes in foreign currency exchange rates impacted our results $1,700,000 for the full fiscal year. Now diluted earnings per common share were $3.04 for the fiscal year compared to $2.87 in the prior year and our diluted weighted average shares last year. A word about our capital allocation, we continue to return capital to shareholders through regular dividends and share repurchases. On October 2, the Board of Directors declared a regular quarterly cash dividend of $0.38 a share payable October 30, 2015 to shareholders of record at the close of business tomorrow. Based on today's closing share price of $93.39 the annualized dividend yield is 1.6%.
During the Q4, we repurchased 50,000 shares of our stock at a total cost of $4,400,000 under our share repurchase plan. And during the full fiscal year, we repurchased 386 1,000 shares at a total cost of $30,000,000 Our latest share repurchase plan became effective March 1, 2015 and it provides the authorization to acquire up to $75,000,000 of the company's outstanding shares through the plan's expiration date in August of 2016. In addition to growing our earnings, our solid balance sheet and strong cash flow, we also focus on another metric, return on invested capital. For the fiscal year 2015, our return on invested capital was an exceptional 27.2%. And that provides our financial overview.
Now I'll turn it back to Gary. Thanks, Jay. Take a
moment now to review how we're making progress on our strategic drivers. The strategic drivers for this year, number 1 or for the company number 1 is to grow WD-forty Multi Use Product. Our goal under this initiative is to take WD-forty Multi Use Product, that little blue and yellow cam with a red top, to more places for more people with more uses. In the Q4, we launched our newest product, WD-forty EASReach, which is a 14.4 ounce can of WD-forty multi use product featuring an innovative flexible straw. Though it's still early, we've seen encouraging point of sale results and so far, the end user results have been reviews have been positive.
We are currently distributing the product at 3 U. S. Retailers, and we expect to add several more by the end of fiscal year 2016. Strategic initiative number 2 is to grow the WD-forty Specialist product line, which celebrated its 4th birthday this year. Our goal under this initiative is to leverage the power of the shield to develop new products and categories within identified geographies and platforms.
Despite all the macroeconomic events that we encountered this year, WD-forty Specialist still achieved a global growth rate of 24% for the full fiscal year and 36% during the Q4. For the full fiscal year, WD-forty Specialist global sales generated about 6% of the revenue that we saw from the WD-forty Multi Use Product. Over the next 10 years, we believe we can grow that number to 25%. When we report Q1 fiscal year 2016 earnings, we will begin to provide additional information for investors about the performance of the WD-forty Specialist product line. Strategic initiative number 3 is to broaden our product and revenue base.
Our goal under this initiative is to leverage the strengths within our company to generate revenue from new sources outside of our flagship WD-forty brand. We continue to broaden our revenues with products like WD-forty bike and new products within our 3 in-one brand. At the end of fiscal year 2015, we started a plan for the transition of WD-forty bike business in the U. S. From 1 with distribution limited to independent bike dealers to one which will now also include the same multiple trade channel distribution network and customers which currently are in place for our other maintenance products in the Americas segment.
We will continue to develop or acquire maintenance products that fit well within our unique multiple trade channel distribution network. Strategic driver number 4 is to attract, develop and retain outstanding tribe members. Our goal under this initiative is to attract, develop and retain talented tribe members. This year, we this quarter, we welcomed 9 new members. And this year, we welcomed 57 new tribe members in the full year, the most ever in a single year.
This included a mix of both new and backfill positions, which grew our global tribe to 433 people around the world. While we do not expect to continue to add headcount at this rate, this investment in our most valuable resource positions us well for future growth. Strategic driver number 5 is operational excellence. This initiative includes the continuous improvement of resources, systems and processes in order to help us offset rising costs and protect our operating margin. We made great progress on several initiatives in fiscal year 2015.
We made enhancements to our supply chain in both the Americas and EMEA. We continue our preparations for the 50 U. S. State transition to the lower BOC formula we launched in California during 2014. We continued our focus on category leadership, which has totally transformed the way we talk to our customers about our products and we made additional progress on the implementation of the upgraded ERP system in EMEA.
So let's look at what 2016 has to hold. In 2016, our guidance is that net sales will grow between 6% 8 percent with net sales expected to be between $400,000,000 $408,000,000 Gross margin for the full year is expected to be near 50 3%. Advertising and promotional expenses are projected to be between 6% 7%. Net income is projected to be between $47,000,000 $48,000,000 and diluted earnings per share is expected to be between $3.26
$3.33
based on an estimated 14,400,000 weighted average shares outstanding. As a reminder, this guidance does not include any future acquisitions or divestitures and assumes that foreign currency exchange rates will remain close to the current levels. Now let me repeat that last part because it's important. This guidance assumes that foreign currency exchange rates will remain close to current level. In closing, despite the decline in our top line consolidated rosa salt, our business continues to perform well.
Foreign currency exchange rate headwinds may continue to impact our reported results, but our strategy for growth is one for the long term. I believe the vision crushing ritual of the pressure of quarterly earnings is not the measure of success. A company must have a clear and compelling vision, a set of core values that drive the culture, values must be clearly acted upon. A clear set of strategic drivers must determine how our time, talent, treasure and technology are invested to achieve our stated outcomes. Looking ahead, we see the opportunity to double the sales of our multi use product and grow WD-forty Specialist to about 25% of that amount, essentially doubling the size of our business over the next 10 years.
How? By doing exactly the same things we've been doing for the last decade and bringing it to a bigger, broader global audience. Ultimately, we believe our top line growth combined with disciplines of our business model will continue to increase stockholder value. So in summary, what did you hear from us on the call today? You heard that currency exchange rates continue to challenge our reported results, particularly in the EMEA segment and thus we suffered a decline in full year reported sales for the first time in 5 years.
You heard that if you remove the impacts of those currency exchange rates, we are growing in almost all of our markets. You heard that the Americas segment is performing well and in line with our expectations with a 4% growth rate for the full fiscal year. You heard that our Asia Pacific area continues to grow despite some currency headwinds with a 6% growth in the full fiscal year. You heard that WD-forty Specialist product line is performing above expectations with global growth rate of 24% in the fiscal year. And you heard that we launched the WD-forty EASE REACH and we have seen encouraging point of sale results so far.
You heard that beginning this fiscal year, we are committing to a new rule, the fifty fivethirtytwenty 5 rule. You heard that crude oil costs going down continue to be a tailwind and we're seeing positive impact from lower input costs. And you heard that we continue to return capital to our stockholders and that for fiscal year 20 15, our return on invested capital was 27.2%. In closing, I'd like to share a quote with you from Charles Dickens. For our path in life is stony and rugged now and it rests with us to smooth it out.
We must fight our way onward. We must be brave. There are obstacles to be met, and we must meet and crush them. Thank you for joining us for the call today. We'd be pleased now to open the conference call for your questions.
Back to the operator.
Your first question comes from the line of Linda Bolton Weiser from B. Riley and Company. Please proceed with your question.
Hi, this is Zach Cummins. I'm in for Linda right now. But my first question is, we did a little research and we found about a 34% retail price premium at Home Depot for your Easy Reach product in comparison to just your regular multi use product. Does that sound about right to you? And then how much of an effect will Easy Reach have on the U.
S. Sales mix?
That sounds right. I think it's $7.88 in Home Depot. And I'm not quite sure how I'd answer your second question on sales mix.
Okay. Thank you. And then, if I remember correctly, I think you said the EasyReach is with 3 distributors at this point. And I was wondering how long do you think it will take to reach full distribution? And then do you think are there still supply constraints for the product?
We are currently shipping product to Home Depot, Lowe's and AutoZone. We expect by March next year to be shipping to a number of other customers. Depending on demand, we feel that by the middle of next fiscal year, we should have reasonably good wide distribution in the United States. Then after that, it will be what we need to
Our next question comes from the line of Liam Burke from Wunderlich. Please proceed with your question.
Thank you. Good afternoon, Gary.
Hi, Liam.
Gary, could you give us could you give us a sense as to specialist sales, how they trend in emerging markets versus the more developed markets? Looks like the U. S. Is hitting its stride, but I mean how does that compare to the ramp up in a market like China?
Specialist is very limited in China, Liam. The first thing we need to do is to make the Shield famous and then take specialists in after. And as you may have heard on the call, specialists is now at about 6% of our MAP sales and we're pretty happy with that. But most of those are coming originally a big portion from the U. S.
And then from EMA, the more mature markets and Australia. We have some business in some of our distributors, but that's a longer term build. Our goal at the moment is to get to our 25% of MAP number in the more developed markets like the U. S, the U. K, Australia, France, Germany, those sort of areas.
And then later we'll continue on building it in the more of the emerging markets as we build the awareness of the core brand of
the Blue and Yellow can.
Okay. So just sticking with China for just a second. Your growth rates in China are reflective of probably primarily multiuse product sales? Correct.
Yes, we have.
Have. Okay. Jay, do you have any in the efforts to step up or what you've done is moved up gross margins, do you have any capital projects? Is there any capital investment that needs to be made for you to achieve your objectives on the gross margin front?
We have a few initiatives around some machinery for line speeds and line efficiencies. And EZ Reach. And certainly EZ Reach has an opportunity to improve margin as well when we get volumes up.
All right. Well, thank you very much.
Thanks, Liam.
Ladies and gentlemen, that does conclude our allotted time for questions. We thank you for your participation on today's conference call and ask that you please disconnect your line.