Good day, and welcome to the Hawaiian Electric Fourth Quarter 2018 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Julie Smolinski, Director of Investor Relations. Please go ahead.

Thank you, and welcome to Hawaiian Electric Industries Fourth Quarter and Full Year 2018 Earnings Conference Call. Joining me today are Connie Lau, HEI President and Chief Executive Officer and Chairman of the Boards of Hawaiian Electric Company and American Savings Bank; Greg Hazelton, HEI Executive Vice President and Chief Financial Officer; Alan Oshima, Hawaiian Electric Company, President and Chief Executive Officer; Rich Wacker, American Savings Bank's President and Chief Executive Officer; and Scott Valentino, Pacific Current President along with other members of senior management. Connie will provide an overview followed by Greg, who will update you on Hawaii's economy, our results for the fourth quarter and full year, and our outlook for 2019. Then we will conclude with questions-and-answers. During today's call, we will be using non-GAAP financial measures to describe our operating performance. Our press release and webcast presentation are posted on HEI's Investor Relations website and continue reconciliations of these measures to equivalent GAAP measures. Forward -looking statements will also be made on today's call. Factors that could cause actual results to differ materially from expectations can be found in our website webcast slides or filings with the SEC and on the HEI website. I will now ask our CEO, Connie Lau to begin with an overview.

Thank you, Julie and aloha to everyone. 2018 was a year of great accomplishment for our company from financial to operational, to environmental results. We achieved 22% net income and EPS growth compared to 2017 and excluding tax reform impacts in the fourth quarter of 2017, our 2018 core net income and core EPS each grew a healthy 12% over the prior year. Our return on equity strengthened 160 basis points to 9.5% in 2018 from 7.9% in 2017. Normalizing for the fourth quarter 2017 one-time tax reform adjustments that represents a core ROE improvement of 90 basis points. All of our operating companies contributed to this positive income -- outcome. American Savings Bank was our start performer, growing earnings by 23%, stronger than expected and delivering 33% higher dividends to HEI. American hard work to improve efficiency and deliver disciplined growth in our state's continued healthy economy, helped build on the benefits of tax reform which endured to the benefit of shareholders. Our utility also performed well with utility earnings up 11% over the prior year, reflecting new rates at all three utilities with the resumption of our triennial rate case cycle after six years and the first implementation of the major projects interim recovery mechanism for MPIR for our Schofield project. However, utility earnings were not as strong as anticipated. In addition to one-time expenses that we've provided updates on our quarterly call in the fourth quarter, we wrote-off expenses incurred during the merger time period for evaluating the import of LNG. And in the last two weeks of December, we experienced an outage of sufficient scope that combined with the impacts of severe weather events earlier in the year, resulted in unexpected penalties under the reliability performance incentive mechanism, or PIM, which applied to us for the…

Thanks Connie. Overall, Hawaii's economy remains healthy and continues to grow, although the pace of growth is moderating. Hawaii's tourism industry is significant driver of the state's economy, should strength in 2018 with visitors spending more time in making more purchases in our islands than in the prior year. In 2018, visitor arrivals were up 5.9% and expenditures were up 6.8%. We did see a slight dip in the expenditures at the end of the year with a monthly 3.5% decline in December compared to the December in 2017. Hawaii still maintains one of the nation's lowest unemployment rates. Unemployment in December was 2.5%, significantly below the national rate of 3.9%. Hawaii real estate fundamentals remain strong. While sales volumes declined from the prior year by 7.7% for single family homes and 2.5% for condos, median prices continued to rise with increases on Oahu of 4.6% for single family homes and 3.7% for condos. While the economies rate of expansion has slowed as the business cycle has matured, continued growth is still expected. Turning to our financial results, slide six shows HEI's net income for the full year and fourth quarter. As Connie noted earlier in 2018, we had strong consolidated financial performance with both operating companies contributing to our reported results. Going from left to right on this slide consolidated GAAP net income for the full year was $201.8 million in 2018 relative to $165.3 million for 2017, a 22% increase. As you may remember in the fourth quarter of 2017, we had $14.2 million of adjustments across the consolidated companies due to certain one-time impacts from federal tax reform. After adjusting for these non-core impacts, 2017 core net income was 175 -- $179.5 million. There were no non-core adjustments to our 2018 net income. Full year earnings normalized…

Thanks Greg. We're proud of our accomplishments in 2018 and we're optimistic about our ability to achieve even more going forward. The place based strategy we've pursued at HEI, continues to provide the financial resources needed to invest in the strategic growth of our company and in a sustainable future for Hawaii while also supporting our dividend, which the board increased this quarter by 3.2%. At the utility, we're making strong headway on our transformation initiatives across the company, ensuring affordable, reliable, renewable energy remains a core focus of all of our efforts. We're on track to beat the 2020 goal of 30% of electric sales from renewable sources, and by 2022 we're targeting significant acceleration to 50%. We're focused on delivering O&M savings for customers through implementation of our new enterprise resource system, which enables our one company initiative and other efficiency efforts. And we continue to focus on improving the reliability and resilience of our system and modernizing our grid to enable more renewables, more electric vehicles, and more value for customers. At the bank, we start the year in a very strong financial position and are well-positioned for further earnings growth. American's new campus marks a new stage in its history. Consolidation of its non-branch employees into this innovative space is expected to bring continued efficiency improvement and even more ways to continue making banking easier for customers and building deeper customer relationships. At Pacific Current, our new team will build on the foundation created with our first two projects and lead the company forward through strategy development, asset optimization, relationship building, and pursuit of new opportunities. Across our enterprise, we will continue to build long-term value for our customers, communities, employees and shareholders. Finally, before we get to Q&A, in our release you may have seen that we are nominating three new independent directors to our board at our upcoming annual meeting as part of our plan board succession, all bring extensive experience and track records of success to add to the strength of our talented Board. And with that, we're happy now to take your questions.

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question today will come from Julien Dumoulin-Smith of Bank of America Merrill Lynch. Please go ahead.

This is Eric on for Julien.

Hi, Eric.

Hi, Eric.

Hi. Good afternoon. So, first question, could you comment on the latest staff proposal from staff on PBR specifically on the five-year sale and the list of currently proposed performance metrics? And what are you anticipate this proposal might be significantly changed?

Yes, absolutely, Eric and we actually had anticipated that question. And so we've invited Joe Viola, who is the Head of our Regulatory Department, to be with us today. And so, I'll turn it over to Joe.

Hi. Eric, again this is Joe Viola. The Staff Proposal came out on February 7 continues to be a progression of high quality work product from our commissioned staff. We believe it presents a pretty balanced approach to consideration of our regulatory framework currently. We still kind of that -- we're really kind of still in the middle of PBR process. This is the staff's proposal at the end of Phase I. Now the parties will be providing briefs to comment on those proposals. We'll submit statements of position on March 8. There will be a limited discovery period. The parties will present implied Statements of Position on April 5. And then the commission will issue its decision on Phase 1 after that time. So, we're still a little bit in the middle of the process, a lot of conceptual discussion, I think as commissioned recognized early in the process and we agree with the details on that matter. But right now, very constructive, very professional report and we look forward to providing our comments in March.

Got it. And do you expect – would you read the current proposal as helping on ROE challenges?

There certainly a potential for that. Again, as the details will matter. The concepts in there certainly offer an opportunity for that. We're encouraged by the discussion of opportunities potentially to reduce some regulatory lag. Certainly, the opportunities to potentially earn on some of the services we've been traditionally providing. Really, again a bunch of opportunities, I think that could be very constructive to the utility, but we'll have to see what the actual details are for the development Phase II.

And Eric, I would just add that, I think what's really important about this proposal as Joe said, it's very professionally done well thought through considers all of the different stakeholders in the process and particularly the customer. So, that's really, really important thing.

Got it. And secondly, would you going on to the specific trends side. Could you talk about the earnings contributions from the Solar Plus Storage projects on a stand-alone basis? And could you further talk about the uptick in HoldCo drag for 2019 relative to 2018? Thanks.

Hi. Eric, yes, this is Greg Hazelton. So, yes as we noted the Pacific Current was -- did have contribute earnings to the year. It's modest relative overall. And as you know, we've been investing in the platform through new talent establishing the office and other ongoing work that they have currently. So, it's moving forward. It did contribute to net earnings on a Pacific Current basis over $0.01 per share, but again that's all after investments within -- made internally as well as bringing -- as well as brining -- making the investments to grow the platform of bringing the management team online. The other increases at the holding company were primarily interest expenses and after-tax. After-tax, the holding company realizes a loss and based on tax reform that loss falls to the bottom line at a higher level. So, as you noticed in the fourth quarter, we did term out about $100 million of commercial paper and refunded some term debt at a higher interest rate in the current interest rate environment, which contributed to our higher interest costs at the holding company.

Yes. Just to clarify. I'm referring to the five Solar Plus Storage project announcement to second acquisition for 2019? The expectations around the earnings contribution standalone for those, if you would be able to provide any further color there?

So, those are in the process of being completed. And I know Scott and his team have been actively managing that on a day-to-day basis. So, I think we have expectations about those -- the timing of bringing those online. So, while they're under construction, most of the costs are being capitalized and you will see earnings contribution as those are brought online. Scott, do you have anything to add?

Yes, those projects will come online starting sometime late spring, early summer, though the remainder of the year. The relative contribution for 2019 will be very small if not nil, on a relative basis, just due to the timing. All five projects come online sort of sequentially with the first one, targeting probably early summer.

Got it, that's helpful. And then, one last question before I see to the queue. Would you be able to discuss potential for a tax free spin of the bank? And any openness to potential sale of telco? And could a forthcoming LEI report change any variables around the co-op effort? Thanks.

So, Eric, we really don't comment on speculative proposals. But I think as we've always told investors, this management team has always been open to evaluating all proposals that might have the potential to increase shareholder value. So, we've never shied away from those kinds of analysis, but I can't really comment on anything that is speculative.

Got it, understood. I'll see to the queue. Thank you.

The next question will come from Paul Patterson of Glenrock Associates. Please go ahead.

Hey, how's it going?

Hi Paul.

Hi Paul.

So, potentially, you said, which I think was $5 million, what is the impact on 2019 and beyond of the reset?

You mean the reset, so under the rate cases we have recovery now at the current net periodic pension costs that we're incurring. As you know, we've been out for a number of years and actually in the interest rate environment we were, with our old rate cases we were not fully collecting on a cash basis the actual cost, cash costs of those programs and the requirement to contribute to the external trust on a cash basis. So we see that as -- so that has been cured. Relative to go-forward basis, our costs are being collected relative. And on an earnings basis, we really don't see an impact because the rate cases have aligned the costs of those programs with what we're reporting. Is -- does that address your question?

I think it does. So, I mean, so you -- okay. So, -- and then on the slide 23 which seems like a new slide for you guys maybe not maybe I missed it before. Is that what you're -- what exactly does that represent?

Okay. Those are what we've talked about in terms of the customer benefit adjustments. And maybe I'll -- look those were concessions that were made to settle the recent rate cases that we've been through that had now a scheduled reduction over time, but I'll have Tayne to speak to that directly.

Yes. So, Paul, this is Tayne on the line. As Greg mentioned, as part of our revenue requirements and what we agreed to in the rate cases as they were being worked on for Hawaiian Electric and Maui Electric these are the customer benefit adjustments. And on this particular slide we did schedule it out. You will notice that over time, it's reduced. And what we will do as the management team is we're going to manage through these amounts and attempt to find offsets to cope with these lower revenues that we got to the rate case.

Okay, great.

We wanted to provide clarity around these challenges. As you think about 2019 and our ability to improve our achieved ROE recognizing that we do have this -- that we will have to find ways to offset this to capture those. But I think as importantly as you look out over time, you see that these are reduced over time and will naturally then allow us to achieve better results all things being equal.

Okay. And then following up on Eric's PBR questions, it seemed to me that there were two things that sort of caught my eye. It is to what Eric brought up, which is the idea of having Day one savings. Could you elaborate a little bit more on what the thought process is with that or what that actually might entail with Day one savings? And the second term that comes up is financial integrity of the utility. Do they -- have you gotten a sense when you speak with them what that actually stands for?

Hi, this is Joe Viola. First question, the Day one savings in the commission staff report that's where that term exists. Several parties in the proceeding had proposed some type of adjustment to the multiyear rate plan and the consumer advocate and I believe maybe Blue Planet in addition proposed a kind of immediate dividend they call it a customer dividend. Really, what that would represent is a revenue requirement reduction from the start of any new PBR plan to represent immediate savings to customers. The question earlier was on the customer benefit. It's similar to that. I think the commission staff report describes that as essentially a stretch goal to ensure productivity improvements above what might be represented otherwise by our productivity factor in the multiyear rate case revenue plan requirement. So, that's a proposal that's in the staff report and the parties including the utilities will be commenting on that in a briefing. As far as the second question on the financial integrity, we were certainly appreciative of the commission stands recognition of the importance of utility's financial integrity. That's been the discussion in the docket since the beginning. And I think what that represents is acknowledgment that actually not only did we continue to financial integrity and the help of utility is very important to achieving the state energy goals. It's important to a lot of our third-party power providers. They rely on our financial integrity our credit rating to finance their projects. So, it's an express recognition of that. We're certainly very appreciative of the fact that, that is a recognition and has been defined as one of the guiding -- one of the many guiding principles to development of PBR in Phase 2.

Okay. But I guess when we're looking at these two items, it seems that one -- I guess when we're talking about the day one savings. It sounds like there could be a situation where -- do you think there is potential risk of how that sort of might actually impact earnings at such a -- if that was sort of the plan? Do you follow what I am saying?

There is -- well to give a simple answer that there's always risk. But that's just one factor that commission staff -- there are other factors. So we will have to see how this plays out. We mentioned before the details will matter. Is it day one savings that customer dividend proposal on the table. But what's also in the commission staff report are some elements of change the regulatory mechanisms that could reduce regulatory lag from us, could also provide other opportunities for us to increase revenue opportunities. So, it’s a package proposal as we considered in context and we will be briefing that.

Okay. And then just on the premium amortization that you guys mentioned for -- at the bank. If I heard that correctly that would've gotten you -- that would have lowered the net interest margin to 3.87, did I hear that correctly?

Yes, this is Rich. That's correct.

Okay. And going forward, what should we think about that?

We think that quarter was lower than it would be on a run rate basis. We think it'll -- the amortization will bounce back up and we don't know how much quarter-to-quarter, but on average for the year, it would be comparable to what we saw in 2018.

Okay. And then just finally on the earning guidance slide, you called out the onetime $0.03 to $0.05 associated with the bank with the moving to the campus sale. But is that the only one time we should be thinking about in new guidance?

Yes, there's -- we have no other -- we've scheduled out the customer benefit adjustments and the headwinds that are there that we’ve provided full detail. No other known onetime adjustments included in our forecast at this time.

Okay. Well, thanks so much. Enjoy, I hear you guys had some snow. That was -- sounds pretty amazing, but -- good talking to you. And have a great weekend.

Thanks Paul.

Our next question will come from Charles Fishman of Morningstar Research. Please go ahead.

And I don’t thank you guys. I know what snow is, it's snowing where I am right now.

That’s true Charles.

There is a footnote on your CapEx slide 16. Those projects grid mod plus the two big battery projects are waiting for commission approval. When do you think that will occur? What's the meeting date or what exactly was pending?

Yes. So, on the grid modernization, I think the procedural steps of the docket have been completed and now it's under commission review. We expect we'd anticipate something pretty fairly relatively soon. On the battery storage applications, there have been -- I think we're relatively close to completing a procedural process in that case as well, filing our current reply statements of position. So, those will soon be ready for commission decision-making.

Okay. So, in the third quarter you had a slide and that slide has changed a little bit. You were showing CapEx for 2019 of $400 million to $500 million and now you're at $400 million. Is that the timing of those two battery projects?

Yes. We progressed our CapEx planning on a -- and it gets more granular. It gets down to approvals, scheduling, permits and pretty detailed as well as prioritization. I think you will see some movement in between years and periods. The way we've been thinking about it is the $400 million on a -- the $400 million level at a baseline is consistent with our grid mod power supply and our long-term planning in which you see that kind of in the green level. And we have potential upside to that based upon certain major projects and how those are scheduled and sequenced. You may see at times that if a project gets delayed and pushed into a different period or year as it crosses a year or so forth, but our -- we have a pretty consistent to achieve the requirements that we need to transform our grid to make the investments needed to integrate all of the new renewable. There is a lot of base -- there is a lot of consistent expenditures that needs to be put through that. Of course, all of those expenditures are subject to commission approval prior to our initiation of any other major projects included in the forecast. So, again, over time you may see projects shift slightly. New project added as they become ready for filing and approval. But generally, we're comfortable with our level and level of CapEx spend and the potential for upside to that -- to the $400 million level over time.

Okay. On the dividend guidance since this is a new thing, leverage guide. Just to make sure I understand how the Board will look at it, Connie or Greg. Do you think like next year at this time, let's say, the end of the year beginning of 2020, the Board will look at what your projected core net income is or core EPS is for 2020 and use a payout ratio of 60% to 65%. Is that the process that you envision?

Yes, Charles. And also, of course, they'll look at the results for the year for this 2019 year. And they'll also be looking at in the forecast of course will be views on what potential investments we might be making, including like in Pacific Current going forward. So, all of that will be the factors that they will consider at the time.

We do -- as management; we do view a dividend as a core part of our value proposition to our shareholders to ensure competitive access to capital overtime. So we take it very seriously. And as Connie said, we evaluated as we achieve performance. Fortunately we have the strength of the bank, dividend and cash flow, and strong performance as well as the improving profile of the utility that can underwrite a stable dividend over time.

Okay. Thank you. That’s it.

Thanks Charles.

Our next question will come from Jonathan Reeder of Wells Fargo. Please go ahead.

So, just following quickly on Charles' CapEx question. If the battery storage approvals are delayed or even denied, do you have the opportunity, Greg to backfill that spend such that CapEx doesn't dip below the $400 million in 2019?

We have -- we do have abilities to shift and reprioritize and increase levels modestly over time. But let me hand that over to Tayne because she's very close to the capital planning process.

Yes, so other things we're looking at -- we can look at is to look at our baseline CapEx and these are the types of projects we have in there that will contribute to our reliability and resilience of our system. So, we have that ability to look at spend there and what can be done, so other levers to fill that void if we have changes in our CapEx from those major projects.

Okay. So Tayne, it sounds like we should kind of think of the $400 million as really the floor then or pretty close to it?

It's pretty close to roughly the $400 million range.

There's a lot of planning in projects that are in queue that may not have been ready relative to 2019 as they manage to prioritization and the ability to manage things. If something is pushed, they certainly have other projects that can be looked at. Again it's also relative to demands for the system, increasing reliability and doing the right things. So, we're comfortable with the $400 million level. If something happened late in the process, we may not be able to shift gears and bring in a new project or -- and accelerate things late in the year if something unexpected were to happen that delayed one of our key major projects. But generally we're comfortable at the $400 million level.

Okay, great. And Greg, I wasn't entirely clear on I think it was maybe the first question about the HoldCo drag increasing like $0.07 in 2019 versus 2018. Is that exclusively to some financing some higher interest expense that you did at the end of this year, or at the end of 2018, I'm sorry?

Yes. We did -- as you saw, we issued another -- we issued $100 million of debt in the fourth quarter, which is incremental, which also was repriced at higher levels versus our commercial paper facility. So, we see -- and we see some natural growth in our overall balance sheet year-over-year as the balance sheet of the consolidated company increases as well. And so -- and then the after-tax expense now, we don't see the benefit of higher tax rate relative to losses. So, you see that increase there as well. So it's a combination -- and then it's a combination of some natural growth in compensation and other elements at the holding company, but nothing significantly above the trend or above inflation in and of itself.

Okay, great. Thanks.

Our next question will come from Andrew Levi of ExodusPoint. Please go ahead.

Andy? Are you there?

Mr. Levi, your line is open.

Sorry, sorry, I was muted.

That's unusual.

Very good. Touché. How you guys doing? I didn’t realize it snowed there, Oh! My God. It snowed in the mountains or like--?

Yes, yes, up in the tops of the volcano.

That happens -- does that happen every year?

No, not every year.

Okay. Well, anyway, Paul asked all my questions, but I do actually have one last. So, just -- and someone else had brought it up. Just on the bank and I know we've discussed this before, but can we just talk about the tax implications of either spinning or selling the bank and also the cash implications of the company as well if you don't mind, if you can't. But if you can, that will be great.

So, Andy we do -- as we've discussed previously, this is analysis we do regularly, we talk with our Board. We look at all potential alternatives and how to increase shareholder value on a sustained basis overtime. Obviously, the -- you have a view of the value of the bank, but if you put a current multiple to its earnings, it's over $1 billion or $1.2 billion area. Our tax basis in the bank is relatively -- our tax basis in the bank is relatively low. I don't know that we provided that number publicly, but it would be significantly inefficient from a tax perspective to do an outright sale of the bank. And so we don't see -- as you do that -- and you know a separation of the bank from the consolidated company, we would lose the benefits of an investment-grade and high performing bank with a growing dividend on a consolidated basis which adds materially to the value of the overall consolidated company and the lack of the need to go for external equity on a regular basis as you see with many of our peers, so it helps drive earnings growth, material part of our credit quality and strength, and the cash flow of HEI. So, we see meaningful value there. And as you separate, there are other implications outside of tax consequences as we separate and have to now look at a recapitalization of the remaining company and our ability to fund ourselves as efficiently as we do on a consolidated basis. So, it's also -- the consolidated enterprise has also helped -- and the strength of that enterprise has also helped us pursue new investment opportunities including the creation of Pacific Current. So, there's a lot of -- we view it as significant and adds to our ability to execute and capture strategic value as well. There's not been a point in time since I've been in this seat and as we've look backed overtime where separation makes sense or would increase shareholder value meaningfully on a sustained basis outside of what we considered during the merger process.

Got it. that was really said Greg. Have a great weekend.

Thanks Andy.

Thanks Andy.

[Operator Instructions] The next question is a follow-up from Julien Dumoulin-Smith from Bank of America Merrill Lynch. Please go ahead.

Hi. This is Eric on again. I just have two short follow-up questions. One, could you discuss the drivers behind three new board appointments? And specifically could you confirm if this is a replacement or an expansion of the current Board?

So, Eric, our Nominating and Corporate Governance Committee has actually been focusing on both board and management succession since coming out of the NextEra merger. And so, we have been, on a continual basis, been sourcing and interviewing potential directors. And so, we have now settled on the three whose names have been in our release. We're really excited about the kinds of talent and knowledge and skill sets that each one of them bring to the mix of the directors on our board. And so, I'm happy to go through each one of them. But I think if you look at the folks that we've selected, it's a wonderful combination of people who have policy experience in the whole energy area, looking forward towards how does this entire industry prepare for things like climate change, also in the area of sustainability, which, as you know, with the start of our new Pacific Current strategy, we've been focused on that as well. Particularly here in Hawaii, it isn't only about greening the electric sector. We've been highlighted as one of the states that actually has the opportunity to help green another sector and of course that's transportation. And there are very interesting nexuses between energy and ag and water and a number of areas that could be really important to helping our overall state achieve its goals. And then finally, we always, and I think almost all companies, look for great financial expertise. And so, that's included in this round of directors. And we have not yet -- we'll be seeing more of that as we get closer to actually issuing our proxy, but we did want to signal that these three will be joining us and as well as the fact that Admiral Tom Fargo will also be also appointed as the Vice Chair of our Board. And finally, the changeover as a part of the normal Board succession to a new Non-Gov Chair.

Got it. And just to confirm this is an expansion of the Board, right, from nine to 12 directors?

We have not actually disclosed what the specific number will be on the Board as of yet.

Okay, got it. And as a final question on my end are you still expecting to file HECO rate case with the triennial cycle in June 2019?

Yes, we are.

Got it, thank you. Have a good weekend.

Eric that will actually be July 1.

Got it, July 1. Got it. Appreciate it.

Thanks Eric.

Our next question is a follow-up from Charles Fishman of Morningstar Research. Please go ahead.

Real quick. Is Scott still the only full-time employee on Pacific Current?

No, no.

We can't tell you.

No. We've actually brought on two additional employees, so now Pacific Current is a team of three. And the -- one is more focused on Strategy and Business Development and the other is more Asset Management and Business Development.

I read that as a positive sign.

Yes. Very talented team and qualified in their taking over asset management. The engagement is pretty active. It's very promising.

You can hear in Greg's voice that he and the holding company staff are really happy that Scott and his team has been built up and could take Pacific Current forward.

Absolutely.

Got it, okay. Thank you very much. Have a good weekend.

Yes, thanks Chuck.

Thanks.

Ladies and gentlemen, this will conclude our question-and-answer session. At this time, I'd like to turn the conference back over to Julie Smolinski for any closing remarks.

Thank you everyone for your questions and for joining us today. We hope you have an excellent weekend.

This conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.