Greetings, and welcome to the Weyerhaeuser Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Beth Baum, Vice President of Investor Relations and Enterprise Planning. Thank you, Ms. Baum. You may begin.

Thank you, Rob. Good morning, everyone. Thank you for joining us today to discuss Weyerhaeuser's fourth quarter 2020 earnings. This call is being webcast at www.weyerhaeuser.com. Our earnings release and presentation materials can also be found on our website. Please review the warning statements in our press release and on the presentation slides concerning the risks associated with forward-looking statements, as forward-looking statements will be made during this conference call. We will discuss non-GAAP financial measures, and a reconciliation of GAAP can be found in the earnings materials on our website. On the call this morning are Devin Stockfish, Chief Executive Officer; and Russell Hagen, Chief Financial Officer. I will now turn the call over to Devin Stockfish.

Thanks, Beth. Good morning, everyone, and thank you for joining us today. This morning, Weyerhaeuser reported full year GAAP earnings of $797 million or $1.07 per diluted share, on net sales of $7.5 billion. Excluding special items, our full year 2020 earnings totaled $962 million or $1.29 per diluted share. Adjusted EBITDA was $2.2 billion, more than 70% increase over full year 2019 and the highest EBITDA performance in nearly 15 years. For the fourth quarter, we reported GAAP earnings of $292 million or $0.39 per diluted share, on net sales of $2.1 billion. Excluding net after-tax charges of $69 million for special items, we earned $361 million or $0.48 per diluted share for the quarter. Adjusted EBITDA was $657 million, or more than 150% higher than fourth quarter 2019. I'd like to open this morning by expressing my sincere gratitude to our employees for their exceptional performance, dedication, resiliency and flexibility in 2020. Our people maintained a safety focus, continued to serve our customers and delivered strong results in the face of unprecedented operating and market challenges. All of our businesses executed exceptionally well, further strengthening our unrivaled portfolio of assets, improving our industry-leading operating performance and positioning the company to drive superior long-term value for shareholders. I'm extremely proud of our accomplishments in 2020, which included: delivering a record-breaking $1.5 billion of adjusted EBITDA from our Wood Products segment, a more than $1 billion increase over 2019; capturing approximately $100 million of company-wide operational excellence improvements, significantly exceeding our annual target; achieving record low controllable manufacturing costs in our lumber operations; strategically upgrading our Oregon Timberland Holdings; reducing gross debt by more than $900 million; introducing a new dividend framework that is sustainable across market cycles; reducing employee and contractor serious injuries by over 50%; and launching a…

Thanks, Devin, and good morning, everyone. I'll begin our key financial items, which are summarized on pages 15 and 16. Cash from operations totaled $444 million for the fourth quarter and over $1.5 billion for the full year. This is our highest fourth quarter operating cash flow since 2007, and our strongest full year operating cash flow since 2005. We invested a portion of this cash back into our Timberlands and Wood Products businesses through capital expenditures, which totaled $281 million for the full year. Adjusted funds available for distribution, or FAD, for 2020, totaled $1.24 billion, as highlighted on Page 16. We used a significant portion of this year's adjusted FAD to reduce our debt outstanding. During the fourth quarter, we redeemed our $500 million 4 5/8% notes that were due September 2023. We incurred a $58 million pretax charge on the early extinguishment, which is included in our results as a special item. We ended the year with just under $5.5 billion of total debt outstanding, which is a reduction of approximately $900 million in 2020. This activity, in addition to strong 2020 EBITDA performance, has substantially improved our net debt to adjusted EBITDA leverage ratio, which, at the end of 2020, was 2.3x compared to a high of 4.9x at the end of 2019. With this reduction, our leverage ratio is comfortably below our target of 3.5x net debt to adjusted EBITDA over the cycle. We also have cash earmark to repay our $150 million, 9% note when it matures in the fourth quarter of 2021. After repayment of this note, we will have no additional debt maturities until late 2023. In addition to improving our leverage, we returned over $380 million to shareholders during the year, which included reinitiating the dividend with a $0.17 per share…

Thanks, Russell. In closing, I want to, again, thank our employees for their dedication, flexibility and adherence to our company values in 2020, despite being tested personally and professionally in ways that, frankly, weren't imaginable at this time last year. Notwithstanding these challenges, we achieved remarkable operating results, and I'm very pleased with the progress we made on numerous strategic initiatives. Looking forward, I'm excited by the opportunities in front of us this year. U.S. housing market has accelerated sharply, and we believe that strong macroeconomic and demand fundamentals will continue to support a favorable backdrop for our products. The potential for a federal stimulus package from the new administration could also drive incremental demand for our products. Our manufacturing facilities are operating with unprecedented reliability and an industry-leading cost structure. We have a strong balance sheet and a dividend framework that enables us to return meaningful cash to shareholders across market conditions. In mass timber and climate Solutions, including potential opportunities relating to carbon, present exciting new sources of future demand. Entering 2021, we're well positioned, and we remain steadfast in our pursuit to serve customers and create value for our shareholders through an unmatched portfolio of assets, industry-leading performance and disciplined capital allocation. And now I'd like to open up the floor for questions.

[Operator Instructions]. Our first question comes from Anthony Pettinari with Citi.

Devin, your southern log prices have been fairly flat over the past year, which kind of corresponds to the South-wide averages that we see from Timbermart-South. I'm just wondering, there seems to be some subregions of the South that are seeing real price tension and maybe some regions where prices seem challenged in the long term. I guess my question is, when we look sort of underneath the hood of that flat average price, is there any color you can give us on sort of the regional differences between what you're seeing maybe in your strongest submarket and weakest submarket? And then you upgraded the Oregon footprint last year. With your balance sheet where it is, is there maybe a kind of a parallel opportunity or a bigger opportunity to upgrade sort of the regional footprint in the south?

Yes. Maybe I'll take that in a few different pieces. Just, at a high level, Anthony, you're right. We are still seeing issues in the south that really -- it goes back to the Great Recession with the oversupply that we've seen in a number of markets. As you note, that, obviously, differs somewhat by market. And it's always important to remember that supply and demand are very wood basket specific. Now as I would say, the good news is that we've seen a fair amount of new capacity coming into the South, about 6.5 billion board feet of new capacity over the last several years, some recent announcements on some new capacity. A couple of those are in wood baskets that should be very favorable to us, the [indiscernible] mill, Idaho Forest products mill in Mississippi. And we're expecting continued new capacity coming into the south in the coming years. When we think about the submarkets, a thing to remember is that our business has scale across all major markets. And this really allows us to take advantage of stronger markets, such as the Atlantic region, really from Florida up through North Carolina. We have about 1.2 million acres in total across those regions. We're also starting to see some improvements in certain markets and other regions, Southern Arkansas, Central Mississippi, North Central Louisiana, some areas of Georgia and Alabama. We're starting to see a little bit of tension in there that, I think, could continue to grow here over time. And then the other thing I would just mention is just the export markets in the South. As you know, back in 2018, we really had started ramping up our export programs primarily to China. With the tariff situation that came into play, we backed that off, but now the tariffs have come off. We've reaccelerated our export programs into China, picking up some India opportunities as well. So that's another area, frankly, for those regions that have proximity to a port, to tension that up over time. With respect to the optimization work that we did in Oregon, that's work that is ongoing all the time. That's true in the West. It's true in the South. We've been doing that for quite a while, frankly, with Russell's new role and some of the work they're doing. I would expect that, that work will continue and perhaps even accelerate going forward. But again, we're going to continue to look for ways to drive value across our portfolio, and that will include optimization work for sure, both in the South and the West.

Okay. That's very helpful. And then just switching gears. I mean, with Biden taking office, there have been kind of a flurry of announcements on the first-time homebuyer credit and environmental plan, stimulus, maybe more moderate approach to China. Of what you've seen, what could be the most meaningful for Weyerhaeuser near term? Is there anything that can really move the needle in 2021? And then maybe any thoughts kind of on the long term?

Yes. As with the new administration, there are going to be some puts and takes, and we're watching that closely. Tax, regulatory policy, those are things that we look for really in any administration to see how that's going to impact our business. But I do think, as you noted, there are some real opportunities for us with the Biden Administration. You mentioned a couple of them. A more normalized trade environment where we can avoid tariffs into China will help us continue to accelerate our export programs into that market, which should be a positive. I think, on the immigration side, a little bit different policy, perhaps, could allow some additional labor, both into the homebuilder market, which is downstream for us, but also even in the forestry side. And I think that could be a benefit. The infrastructure plan, we'll see how that progresses. But to the extent that we got a significant infrastructure plan through Congress, that's something that could spur some additional demand for our products. And then I think the big thing is really just around the environmental policies that come out of the administration around global warming and climate change. And that's certainly something that, I think, will find its way into every aspect of policy under the new administration. And I think that's something that could have some incrementally positive benefits for us. Since that falls squarely within Russell's new responsibilities, maybe I'll ask Russell, anything you want to mention specifically on the carbon side?

Sure. I mean, clearly, the Biden Administration is going to focus on climate change, and we're seeing some of the policy specific to carbon, starting to get framed up and discussed. The early actions that they've taken demonstrates that this is going to be a focal point for them. So I would say at a federal level, I don't -- I'd be surprised if we saw a carbon tax or cap and trade type structure. I just don't think the political will is there to pull something off like that. But I do think we'll see policies supporting climate change mitigation across all the federal agencies. And that could come in the form of purchasing preferences for wood-based building because of the environmental benefits of that, solutions aimed at forest health and then recognizing the benefits of carbon stored in wood. And so I think those are all very positive, not only for Weyerhaeuser, but for the industry as a whole. So again, as they continue to focus on this area, we'll see more innovation, and we'll see markets continue to mature. And I think that's beneficial, again, for the industry and for Weyerhaeuser, in particular.

Our next question comes from George Staphos with Bank of America.

Congratulations on the results. I wanted to start with a top-down question for you related to housing and kind of the ultimate impact on demand. So you enumerated a number of things, demographics, the move towards larger single-family homes and these sorts of things. I would also imagine a benefit to housing would be hopefully improved employment and wages for that matter, too. That said, some of our contacts are beginning to get a little bit worried about affordability based on rates moving higher and home prices moving up even more quickly. So I acknowledge that the answer is probably going to be all of the above, but of the things that you talked about in your opening comments, what gives you the most confidence that housing can continue to move higher? What gives your customers that confidence, given what's been a little bit of a spike in the wrong way in terms of affordability?

Yes. And I think you note the affordability piece is going to be a headwind. There's no question about that. In terms of just the confidence, though, around the building environment right now, it just -- it starts with overwhelming demand for homes. There is virtually no existing home inventory for sale at present. The new home inventory for sale is pretty low. And I think we've just hit a point where, whether it's specific to COVID or whether it's just the demographic trends have finally reached that inflection point, there's just a significant amount of demand in really all markets that we participate for more housing. And the builders are really -- they're confident that they're going to have a lot of building activity this year. Certainly, I think to the extent that interest rates can stay relatively low in the near term, which seems to be the federal policy at present, that will be supportive. But in any event, it goes back to some of the things we've been talking about for years, which is, we've been massively underbuilding in the United States for over a decade. We need to build millions of homes over and above just kind of keeping pace with normal demand just to get back to even. So I think there are a lot of tailwinds to support that, but you're exactly right. The affordability piece is the one that is going to have to be solved. But, in the near term, at least for 2021, we're feeling pretty positive about the construction setup for this year.

You had mentioned, switching gears a bit, this new sawmill project in Louisiana where you're rebuilding the mill much as you did with dirks and the other project, and you're adding about 100 billion board feet of capacity by '23. What else can you do across panels, across lumber to improve your ability to produce given, I imagine, in a lot of places you're more or less sold out. And as we just talked, demand looks like it's not stopping its growth anytime soon. What can you crank out of your mills, either with additional projects like Louisiana project or through productivity or additional shifts to get more capacity? And what kind of number would you put on that in terms of new capacity or creep?

Yes. So just a few comments there. Just really briefly a comment on hold in. This is a project that we're really excited about. This mill is very strategically located. It's situated very well in terms of serving some key customers. It's surrounded by a significant amount of our fee timberlands. This new mill configuration. It's going to allow us to improve the product mix from the mill. We've got a great employee base there. So we're really excited about this. I think this is going to be along the lines of our Dierks and Millport mill in terms of just really a very low-cost, highly efficient mill that's going to make some great lumber over time. In terms of the ability to flex up for additional volume in the near term, we are very focused on improving mill reliability across our footprint. And that comes into play in a number of different instances. And a good example of that, right? Is on the OSB side, where we hit a production volume record in 2020, notwithstanding the fact that we took a fair amount of downtime in the spring. And so those reliability improvements will provide extra volume across the system. And that's equally true from a lumber and an EWP standpoint. So there's going to be some volume creep that comes through that. And we're continuing to invest back in our mills across the system as part of our CapEx program. But what I would note is that those capital programs are largely focused on reducing costs, improving reliability and driving efficiencies in the system as opposed to being directly focused at increasing our volumes. And so that's a long-winded way of saying, we are adding another 100 million of volume from our holding project, continuing to ramp up Millport, so maybe another 50 million to 60 million board feet coming off of Millport this year. And then just some additional flex from continuing to run our mills well, at least that's the answer here in the short term.

No, that's good color, Devin. A last one, if I could ask, what was the effect of the maintenance outage activity in the fourth quarter in Wood Products? If you could give us some sort of guardrail on what that might have impacted your numbers by?

Yes. And so that was in our OSB business. And that really drove unit manufacturing costs up by $10 million to $15 million for the quarter.

Our next question is from Mark Wilde with Bank of Montreal.

Thanks. Devin, it's hard to imagine where we were just 9 months ago.

Well, that is an understatement, Mark. I think, for sure. It's been a wild ride in 2020.

Yes. Probably something good for all of us to keep in mind. Just following on George's question. Can you give us some sense then of, beyond that $10 million to $15 million of maintenance in the fourth quarter, what we have that's kind of helping you from just operations and throughput standpoint in wood in the first quarter?

Yes. So really, if you think about for Wood Products, Q4 to Q1, that's around $35 million net of any increases in OSB or lumber pricing. The majority of that, a little over half, is going to be on reduced manufacturing costs, and then the rest is going to be some incremental volume and a little bit of price as we recognize the increases in EWP.

Okay. That's helpful. And then if we continue on the current trajectory for the next 6 to 9 months, you're going to generate a lot, a lot of cash. Could you just give us some thoughts on how you would prioritize the use of tariff? Whether you might pull at supplement a dividend forward, whether you might be in the market repurchasing stock, whether you just would accumulate cash, what the priorities might look like?

Well, we're optimistic that we are going to see strong markets over the course of 2021. And if that plays out, like you say, we're going to generate some very strong cash flow. As we've indicated with our new dividend framework, the plan is to return 75% to 80% of our 2021 FAD back to shareholders, both through the base dividend and then, ultimately, the supplemental dividend. And any cash flow over and above that 75% to 80% of FAD would be available for growth, further debt paydown or, under the right circumstances, share repurchase. And so we'll continue to look at those opportunistically and allocate the cash to those opportunities that create the most long-term value for shareholders. And I would say Timberland's growth opportunities are an area that I would expect we'll continue to look closely at, both from just an optimization standpoint and growth more generally. But obviously, that's something that's dependent on finding the right deals that are accretive and strategic. And so we're going to continue to be very disciplined in that respect. In terms of a potential interim supplemental dividend this year, as we mentioned, the new framework really anticipates that supplemental dividend is going to pay -- be paid out annually in Q1 for the prior year. And really, the reason for that is just to make sure that we're matching our variable dividend component to the cash flow that we're generating for the year. So generally, we're anticipating that, that first supplemental dividend would be paid in the first quarter of 2022 based on the 2021 cash flow. Now look, if things go really well, could there be a situation where we would consider some sort of interim supplemental dividend later in the year? Certainly, that's conceivable. I wouldn't shut the door on that definitively. But again, we're expecting that to be paid out annually in Q1 under most circumstances.

Okay. All right. And then the last one for me is just, we are more consolidation taking place in both wood products manufacturing with this West Fraser-Norbord deal. We're also seeing consolidation taking place in the building products distribution business. Can you help us think about the impact or implications of that for Weyerhaeuser's businesses?

Yes. So comment on West Fraser-Norbord and the BFS-BMC deals. On West Fraser-Norbord, we have a lot of respect for both of those companies. Both Ray and Peter have solid teams. They're both very well-run companies. I'm sure the combined company will be very well run. These companies are both customers and competitors for us. And so we're going to continue to do everything we can to be good suppliers for them on the log side. And then, obviously, we'll compete with them in the lumber and OSB markets. The BFS-BMC merger, both of those businesses have been long-standing customers of Weyerhaeuser. We've had really good working relationships with both of these firms. Dave Flitman has put together a strong team from the combined firm. And I anticipate we'll continue to have a great relationship with BFS going forward. And we'll work with them as we always have, to help find ways to create value in their supply chain and for their customers. I think, just on consolidation, generally, I'm sure that there are still some opportunities out there in the market for companies to create value for their stakeholders through consolidation. Timing specifics, those things are always hard to predict, but I wouldn't be surprised if there's continued consolidation in the markets.

But do you see any implication for you in those businesses or not?

Well, I mean, so we're always looking for opportunities to create value as well. And so I wouldn't comment specifically on any deals, but we're always looking for opportunities to improve the value of our portfolio. If you're asking specifically about the West Fraser-Norbord or BFS-BMC deals, I don't think those are going to have a materially -- material impact on any of our businesses. We'll continue to work with them as we always have and compete with them as we always have.

Our next question comes from Mark Weintraub with Seaport Global.

Devin, one question, kind of following up on actually both George and Mark. So if you were to ballpark what production in lumber and OSB for you guys in 2021 might be, how much of a pickup? And kind of as a part of that, was there much in the way of COVID disruptions, labor force disruptions that affected your production levels during the year?

Yes. With respect to the second part of the question, the answer is yes. We did take some downtime in the spring really across all 3 of our businesses. And so that did have an impact on our overall volumes for the year. As we think about 2021 relative to 2020, I think it's safe to assume we'll have a few percentage points of increased volumes across those businesses really as a result of both continued focus on reliability, but also just with the 2020 comp being down a little bit due to that market-related downtime in the spring.

Okay. And then shifting gears to 1 area where you used to make a lot more money and the question being, can that be happening again sooner rather than later? And that's in kind of the western timberlands, where, obviously, your export markets used to be a terrific driver. Given that 1.45 million housing start forecast you're anticipating, what does -- does it appear that, that basket might get more tension, and we might see some real price action there? Or what would be your thoughts at this juncture?

Yes. So I think the short answer is, yes. With this level of housing activity, just as a general statement, the western market is, by far, the most tension market in the United States. And a big driver of what kept log pricing down for really all of 2019 and a portion of 2020 was depressed lumber prices. And so what we've historically seen, at least in the recent past, is much of the benefit of lumber prices increasing will go back to the woods in the form of log pricing. But obviously, people are not going to pay more for logs that caused them to be cash flow negative. And so when you have low lumber prices, that does put some restrictions on your ability to increase log prices. But as we continue to see lumber prices stay at healthy levels, the tension in the market will remain. Certainly, we've seen strong export markets. Coming out of Q4 into Q1, we expect that to continue. That's a japan statement. That's a China statement. So the market tension is there. It's really just a function of what lumber prices are doing. The only caveat to that, Mark, is just, there will be a dynamic going on in portions of Oregon this year as landowners work through their salvage volumes. And so one of the things that we're seeing here, probably in the near term, is that, as all of the landowners, ourselves included, are working through salvage activity, what that typically means is that you're harvesting some stands that are younger than you would normally harvest. And so as we're out and we're harvesting stands that are in the low 30s as opposed to 40 to 45, we are going to see more chip and saw really going into that market. So that may have a little bit of a depressive effect here for a portion of 2021. But overall, the wood basket in Washington and Oregon remains fairly tensioned.

Our next question comes from Mark Connelly with Stephens, Inc.

This is one of the first calls we've listened to where we haven't heard a lot of warnings about transportation and logistics. So I was wondering if you could just give us a sense of how that is playing out now? And what do you think that's going to become a bigger issue for you?

Yes. I'd say we didn't mention it specifically, but that does not mean that there aren't issues around transportation. Trucking availability in the south, in particular, is pretty tight and so a lot of companies are having some challenges finding trucking capacity in the South. The rail issues haven't been as significant this year as they have, in some years in the past, some tightness in certain geographies. But overall, not seeing the same magnitude of issue with rail. But again, I would say trucking capacity is a bit tight, particularly in the South, and folks are struggling somewhat with that.

That's still a pretty good situation to be in. And as you respond to the short-term market conditions in pulpwood, have you made or are you contemplating any substantial longer-term harvest plan changes? Or is it just too early way and see how much that goes back?

Yes. As we think about -- this is primarily a southern statement because we have a much higher percentage of our logs that go into the pulp market in the South. As we think about our harvesting activity generally, we're looking at that on a regular basis because the point of how we manage our harvest is, obviously, we want to keep the growth in the harvest in balance over time. But on a year-to-year basis, we're looking at what's going on in the markets, and we're really trying to maximize the value of our timberlands over time. And so as we think about 2021, as Russell mentioned, we are a little heavier to fiber in the South, and that's really catching up on some thinning backlog, which is really important from a silvicultural perspective, and we need to do that. But obviously, that does put a little bit more pulpwood into the market, and you don't get as many tons from thinning as you do from clear cutting. But the high-level answer is, we continue to look at that really on a year-to-year basis, looking at what's going on in the markets, what the different opportunities are for that wood.

Our next question comes from Kurt Yinger with D.A. Davidson.

Two quick ones. First in Wood Products, you talked about the drag from higher log costs in the quarter. Is there any way to maybe quantify what that looked like versus either Q3 or fourth quarter '19?

Yes. And that -- when we talk about the higher log costs, that's, obviously, primarily, in the West and in Canada. And the impact, for example, for lumber from the higher log cost in Q4 relative to Q3, within that $25 million to $30 million range. And so that's -- obviously, that benefits us as well. So we sell a lot of logs in the west. And so we get it in one pocket, but certainly, that was a little bit of a drag from a cost standpoint for the lumber business.

Right. Okay. Makes sense. And then just lastly on engineered wood. Could you talk about how long you would expect to kind of fully get the August price increase in due realizations? And then I believe Russell noted an additional increase during January. I just wanted to make sure I heard that right and whether that was kind of a similar amount as the one in August as well?

Yes. The January increase was 8% to 15%, and that varies by product and geography. And so we're in the process of rolling that through as a general matter with price protections that are building to contracts, et cetera, you usually get most of that within a year, the vast majority of it within 3 quarters and then just a little trailing, last a little bit within a year. But you'll get most of it within 6 months.

Our last question comes from Paul Quinn with RBC Capital Markets.

I guess, just an easy question. Devin, you're trading at quite a discount to your peers, Polo, Rainier, Mark, just wondering how you're going to make up that difference?

Yes. So I think, obviously, a couple of things go into that. Number one, 2020 was an interesting year for us. We did take some action with respect to the dividend, putting a new dividend framework in place. And so I think there's -- some of that is people getting their minds around that. As you can imagine, we've had a lot of conversations with our investors since we rolled out that new dividend framework. Overall, I'd say the response has been pretty positive and supportive. I think people get the rationale and how it fits in with the business and the cash flows. But we still have to prove that out. And so I think that's a part of it. And we'll continue to look forward to delivering on the commitments that we made as part of rolling that new framework out. So I think that's a piece of it. And certainly, we are in a position where we feel like the markets are pretty strong. They're going to be a tailwind for us. Our businesses are running really, really well. And so we're very well positioned to take advantage of that opportunity and generate a lot of cash, and we'll be giving most of that back to shareholders. And so, I think, as we deliver on that commitment, you should see that gap continue to close.

Okay. And just as a follow-up, any changes that you're anticipating on the portfolio side? And I just note that West Fraser-Norbord transaction over did put themselves up for sale in 2018, whether you looked at that asset?

Yes. So for us, I would say, we're always looking on the Timberland side to continue to optimize and grow that timber portfolio. That's something we do year in and year out, and something we will continue to do going forward. And I'm really excited about some of the work Russell is going to be doing in that space. And so that's probably the most likely portfolio moves that we're going to make would be on the Timberland side. On the Wood Products side, I think we like the assets that we have. And so I wouldn't anticipate big portfolio changes necessarily on the Wood Products' side. If we found a mill here or there, sort of a small bolt-on acquisition in the Wood Products space, we would look at that if the price is right and it's in the right locale. But in terms of large acquisitions on the Wood Products' side, I'd say that's not currently our focus. Well, I think that was the final question. So again, thanks, everyone, for joining us this morning, and thank you for your continued interest in Weyerhaeuser. Stay safe, everyone.

This concludes today's teleconference. You may disconnect your lines at this time, and we thank you for your participation.