Exhibit 99.1
![](https://capedge.com/proxy/8-K/0000313395-07-000108/only_logo.gif)
For Immediate Release | Contact Information | |
Monday, November 5, 2007 | Investors: Roberto R. Thomae | |
(210) 496-5300 ext. 214, bthomae@txco.com | ||
Media: Paul Hart | ||
(210) 496-5300 ext. 264, pdhart@txco.com |
TXCO Resources Reports
Financial Results, Updates Operations
SAN ANTONIO -- Nov. 5, 2007 -- TXCO Resources Inc. (Nasdaq:TXCO) today reported financial results for the quarter and nine months ended Sept. 30, 2007, and provided an operations update. Highlights include record:
· | Operating cash flow. |
· | Quarterly and nine-month oil sales. |
· | Total assets. |
· | Drilling activity. |
"We continued to build momentum throughout the third quarter," said CEO James E. Sigmon. "Operational and financial results remain in line with our expectations following TXCO's acquisition of Output Exploration, LLC in the second quarter of this year. Our active drilling program translated into record oil and gas sales and cash flow. I believe 2007 is on its way to being an excellent year for TXCO and its shareholders."
Third Quarter
Third-quarter 2007 Ebitda – earnings before income taxes, interest, depreciation, depletion, amortization, impairment and abandonment expense – was a record $17.5 million compared to $13.3 million in 2006. Ebitdax – Ebitda plus exploration expense – was also a record $17.8 million, a 31 percent increase from $13.6 million recorded a year earlier. See the accompanying table for a reconciliation of non-GAAP financial measures. Net income for the third quarter was $2.4 million, equal to $0.07 per share, compared with $6.4 million, or $0.19 per share, for third-quarter 2006. All per-share amounts are on a diluted basis. Oil and gas sales were higher compared to both the year-earlier and prior quarters, offset by higher lease operating expense and depreciation, consistent with the acquisition of Output Exploration.
Nine-Month Period
For the January-September period, net cash provided by operating activities was a record $27.3 million, up more than 90 percent from $14.0 million in the year-earlier period. Ebitdax rose to a record $33.8 million, a 6 percent increase from $32.0 million in the 2006 nine months. Ebitda also was a record, $32.9 million, and also up 6 percent from $31.1 million a year earlier.
-- More --
For the nine-month period, TXCO reported a net loss of $827,000 or $0.02 per share. A year earlier, net income was $11.6 million, or $0.35 a share. Total revenues were a record $61.8 million, up from $57.2 million for the year-earlier period. Oil and gas sales rose to $52.9 million, a 19 percent increase from the 2006 period, partially offset by lower gas gathering results. TXCO's assets at Sept. 30 stood at a record $326.2 million, more than double the $143.8 million recorded at year-end 2006, consistent with the acquisition.
Operations
TXCO drilled or participated in a record 81 wells this year through Oct. 31, compared with 56 wells through October 2006. Average production for the third quarter was 3,125 bopd and 7,087 mcfd, a 12.6 percent increase over the previous quarter.
A total of 33 of these wells targeted the Maverick Basin's Glen Rose Porosity interval. Oil sales from the Porosity play in the Maverick Basin for the quarter rose to 2,253 bopd, a 27 percent increase from the second quarter. September production topped 2,650 bopd, a significant increase from 2,500 bopd during August.
In the East Texas Fort Trinidad Field, TXCO has spudded and currently is drilling its first Glen Rose shoal well, the Forrest 2H. Plans are to drill the Glen Rose B interval horizontally for approximately 3,000 feet.
Three wells currently target the Maverick Basin's Pearsall gas resource play. The Glass Ranch B 1-77 is currently being completed vertically. The well is flowing 3,000 mcfd on an 8/64-inch choke with flowing tubing pressure of 7,200 psi. Operations continue to clean up 18.2 pound-per-gallon mud left in the open hole. TXCO also is drilling the Cage Ranch 26-2H, which is scheduled to be a horizontal Pearsall well, and has set intermediate casing at the top of the Pearsall. Additionally, the Company has re-entered and is drilling horizontally in an old well, the Burr A 1-68H, that flowed more than 1,000 mcfd from the Pearsall formation in the 1970s.
After correcting mechanical problems with pumping equipment on its San Miguel tar sand pilot, TXCO is preparing to start steam injection for a fourth cycle this week. Bottomhole temperatures have increased to approximately 365° F. Meanwhile, simulation programs are being fine tuned to expand this cyclic-steam pilot using new, horizontal wells. Additional steam generation equipment for the expansion should be delivered by mid-January 2008.
Work is progressing on the design of a second tar sand pilot. The pilot will contain 8-16 wells that are now anticipated to be drilled in the first and second quarters of 2008 due to the delay in delivery of steam generators. Two additional 50 mmbtu steam generators are scheduled to be on site in April and May 2008 for the second pilot, which will use the fracture-assisted steamflood technology (FAST) recovery method Conoco employed successfully on the San Miguel tar deposit in the early 1980s to recover 50 percent of the tar in place in two pilots.
In the Marfa Basin, the Simpson 1, a vertical re-entry, has been fractured successfully in the Barnett shale interval. The well is still producing fracturing fluids but is flowing back at rates of about 100 bwpd and 140 mcfd. As water production decreases, it is anticipated that gas production will increase.
-- More --
2
Conference Call
TXCO has scheduled a conference call for 10 a.m. CST (11 a.m. EST) Tuesday, Nov. 6, 2007, to discuss its financial results and recent operations. The call will be broadcast live over the Internet at http://www.txco.com/concall.html, or by telephone at (877) 387-9209 in the U.S./Canada or (706) 643-3820 for international callers. Passcode is 20659382. A replay will be available through Thursday, Nov. 8, 2007, at (800) 642-1687 (U.S./Canada) and (706) 645-9291 (International) with passcode 20659382, and for 30 days at http://www.txco.com/concall.html.
About TXCO Resources
TXCO Resources, formerly The Exploration Company, is an independent oil and gas enterprise with interests in the Maverick Basin, the onshore Gulf Coast region and the Marfa Basin of Texas, and the Midcontinent region of western Oklahoma. It has a consistent record of long-term growth in its proved oil and gas reserves, leasehold acreage position, production and cash flow through its established exploration and development programs. TXCO's business strategy is to build shareholder value by acquiring undeveloped mineral interests and internally developing a multi-year drilling inventory through the use of advanced technologies, such as 3-D seismic and horizontal drilling. It accounts for its oil and gas operations under the successful efforts method of accounting and trades its common stock on Nasdaq's Global Select Market under the symbol "TXCO."
Forward-Looking Statements
Statements in this press release that are not historical, including statements regarding TXCO's or management's intentions, hopes, beliefs, expectations, representations, projections, estimations, plans or predictions of the future, are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include those relating to oil and gas prices, capital expenditures, production levels, well test results, drilling plans, including the timing, number and cost of wells to be drilled, projects and expected response, and establishment of reserves. It is important to note that actual results may differ materially from the results predicted in any such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the costs of exploring and developing new oil and natural gas reserves, the price for which such reserves can be sold, environmental concerns affecting the drilling of oil and natural gas wells, as well as general market conditions, competition and pricing. More information about potential factors that could affect the Company's operating and financial results is included in TXCO's annual report on Form 10-K for the year ended Dec. 31, 2006, and its Form 10-Q for the quarter ended June 30, 2007. These and all previously filed documents are on file at the Securities and Exchange Commission and can be viewed on TXCO's Web site at www.txco.com. Copies are available without charge, upon request from the Company.
(Financial Information and Selected Operational Tables Follow)
3
TXCO RESOURCES INC.
Condensed Consolidated Balance Sheets
(Unaudited)
($ in thousands) | September 30, 2007 | December 31, 2006 | ||||
Assets | ||||||
Current Assets | ||||||
Cash and equivalents | $ | 6,798 | $ | 3,882 | ||
Accounts receivable, net | 17,291 | 9,132 | ||||
Federal income tax receivable | 8,903 | 4,468 | ||||
Prepaid expenses and other | 5,143 | 887 | ||||
Accrued derivative asset - short-term | 105 | - | ||||
Total Current Assets | 38,240 | 18,369 | ||||
Property and Equipment, net - successful efforts method of accounting for oil and gas properties | 281,681 | 119,574 | ||||
Other Assets | ||||||
Deferred tax asset | 2,558 | 5,310 | ||||
Deferred financing fees | 2,377 | 60 | ||||
Accrued derivative asset - long-term | 55 | - | ||||
Other assets | 1,286 | 488 | ||||
Total Other Assets | 6,276 | 5,858 | ||||
Total Assets | $ | 326,197 | $ | 143,801 |
4
TXCO RESOURCES INC.
Condensed Consolidated Balance Sheets
(Unaudited)
($ in thousands) | September 30, 2007 | December 31, 2006 | ||||
Liabilities and Stockholders' Equity | ||||||
Current Liabilities | ||||||
Accounts payable, trade | $ | 16,829 | $ | 7,969 | ||
Undistributed revenue | 1,698 | 1,035 | ||||
Notes payable | 190 | 267 | ||||
Derivative settlements payable | 111 | 70 | ||||
Accrued derivative obligation - short-term | 1,131 | 321 | ||||
Other payables and accrued liabilities | 12,259 | 6,433 | ||||
Total Current Liabilities | 32,218 | 16,095 | ||||
Long-Term Liabilities | ||||||
Long-term debt | 144,250 | 2,351 | ||||
Accrued derivative obligation - long-term | 1,404 | - | ||||
Deferred income taxes - long-term | 16,532 | - | ||||
Asset retirement obligation | 4,177 | 1,703 | ||||
Total Long-Term Liabilities | 166,363 | 4,054 | ||||
Stockholders' Equity | ||||||
Preferred stock, Series A & Series B; authorized 10,000,000 shares; issued and outstanding -0- shares | - | - | ||||
Common stock, par value $.01 per share; authorized 100,000,000 shares; issued 34,281,038 and 33,290,698 shares, outstanding 34,162,619 and 33,190,898 shares | 343 | 333 | ||||
Additional paid-in capital | 127,443 | 122,108 | ||||
Retained earnings | 1,791 | 2,619 | ||||
Accumulated other comprehensive loss, net of tax | (1,496 | ) | (1,162 | ) | ||
Less treasury stock, at cost, 118,419 and 99,800 shares | (465 | ) | (246 | ) | ||
Total Stockholders' Equity | 127,616 | 123,652 | ||||
Total Liabilities and Stockholders' Equity | $ | 326,197 | $ | 143,801 |
5
TXCO RESOURCES INC.
Condensed Consolidated Statements Of Operations
(Unaudited)
Three Months Ended | Three Months Ended | |||||||
(in thousands, except earnings per share data) | September 30, 2007 | September 30, 2006 | ||||||
Revenues | ||||||||
Oil and gas sales | $ | 25,012 | $ | 18,067 | ||||
Gas gathering operations | 3,227 | 3,511 | ||||||
Other operating income | 34 | 5 | ||||||
Total Revenues | 28,273 | 21,583 | ||||||
Costs and Expenses | ||||||||
Lease operations | 3,137 | 1,816 | ||||||
Production taxes | 1,418 | 879 | ||||||
Exploration expenses, including dry hole costs | 269 | 320 | ||||||
Impairment and abandonments | (1,092 | ) | - | |||||
Gas gathering operations | 3,432 | 3,555 | ||||||
Depreciation, depletion and amortization | 11,632 | 4,539 | ||||||
General and administrative | 3,110 | 2,105 | ||||||
Total Costs and Expenses | 21,906 | 13,214 | ||||||
Income from Operations | 6,367 | 8,369 | ||||||
Other Income (Expense) | ||||||||
Derivative mark-to-market gain | - | 1,319 | ||||||
Derivative settlements loss | - | (949 | ) | |||||
Interest expense | (3,227 | ) | (73 | ) | ||||
Interest income | 135 | 258 | ||||||
Loan fee amortization | (175 | ) | (52 | ) | ||||
Total Other Income (Expense) | (3,267 | ) | 503 | |||||
Income before income taxes | 3,100 | 8,872 | ||||||
Income tax (benefit) expense -- current | (50 | ) | 3,603 | |||||
deferred | 771 | (1,119 | ) | |||||
Net Income | $ | 2,379 | $ | 6,388 | ||||
Earnings Per Share | ||||||||
Basic earnings per share | $ | 0.07 | $ | 0.20 | ||||
Diluted earnings per share | $ | 0.07 | $ | 0.19 |
6
TXCO RESOURCES INC.
Condensed Consolidated Statements Of Operations
(Unaudited)
Nine Months Ended | Nine Months Ended | |||||||
(in thousands, except earnings per share data) | September 30, 2007 | September 30, 2006 | ||||||
Revenues | ||||||||
Oil and gas sales | $ | 52,873 | $ | 44,389 | ||||
Gas gathering operations | 8,872 | 12,730 | ||||||
Other operating income | 84 | 40 | ||||||
Total Revenues | 61,829 | 57,159 | ||||||
Costs and Expenses | ||||||||
Lease operations | 10,035 | 5,328 | ||||||
Production taxes | 3,014 | 2,170 | ||||||
Exploration expenses, including dry hole costs | 923 | 960 | ||||||
Impairment and abandonments | 289 | 1,094 | ||||||
Gas gathering operations | 9,670 | 12,930 | ||||||
Depreciation, depletion and amortization | 25,217 | 10,892 | ||||||
General and administrative | 7,996 | 5,666 | ||||||
Total Costs and Expenses | 57,144 | 39,040 | ||||||
Income from Operations | 4,685 | 18,119 | ||||||
Other Income (Expense) | ||||||||
Derivative mark-to-market gain | - | 1,787 | ||||||
Derivative settlements loss | - | (2,540 | ) | |||||
Interest expense | (6,367 | ) | (209 | ) | ||||
Interest income | 238 | 471 | ||||||
Loan fee amortization | (344 | ) | (174 | ) | ||||
Loss on sale of assets | - | (11 | ) | |||||
Total Other Income (Expense) | (6,473 | ) | (676 | ) | ||||
(Loss) income before income taxes | (1,788 | ) | 17,443 | |||||
Income tax (benefit) expense -- current | (5,301 | ) | 7,318 | |||||
deferred | 4,340 | (1,519 | ) | |||||
Net (Loss) Income | $ | (827 | ) | $ | 11,644 | |||
(Loss) Earnings Per Share | ||||||||
Basic (loss) earnings per share | $ | (0.02 | ) | $ | 0.37 | |||
Diluted (loss) earnings per share | $ | (0.02 | ) | $ | 0.35 |
7
TXCO RESOURCES INC.
Condensed Consolidated Statements Of Cash Flows
(Unaudited)
Nine Months Ended | Nine Months Ended | |||||||
(in thousands, except earnings per share data) | September 30, 2007 | September 30, 2006 | ||||||
Operating Activities | ||||||||
Net (loss) income | $ | (827 | ) | $ | 11,644 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, depletion and amortization | 25,562 | 11,066 | ||||||
Impairment, abandonments and dry hole costs | 743 | 1,094 | ||||||
Deferred tax expense (benefit) | 4,340 | (1,519 | ) | |||||
Loss on sale of asset | - | 11 | ||||||
Non-cash stock compensation expense | 1,184 | 974 | ||||||
Non-cash derivative mark-to-market loss | - | (1,787 | ) | |||||
Non-cash change in components of Other Comprehensive Income | 1,524 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Receivables | (8,160 | ) | (229 | ) | ||||
Prepaid expenses and other | (7,714 | ) | (1,251 | ) | ||||
Accounts payable and accrued expenses | 15,431 | (3,191 | ) | |||||
Current income taxes (receivable) payable | (4,747 | ) | (2,862 | ) | ||||
Net cash provided by operating activities | 27,336 | 13,950 | ||||||
Investing Activities | ||||||||
Development and purchases of oil and gas properties | (68,141 | ) | (38,395 | ) | ||||
Purchase of other equipment | (2,317 | ) | (5,762 | ) | ||||
Purchase of subsidiary | (95,994 | ) | - | |||||
Proceeds from sale of assets | - | 19 | ||||||
Net cash used by investing activities | (166,452 | ) | (44,138 | ) | ||||
Financing Activities | ||||||||
Proceeds from issuance of common stock, net of expenses | 429 | 30,272 | ||||||
Purchase of treasury shares | (219 | ) | - | |||||
Proceeds from bank credit facility | 164,750 | 9,300 | ||||||
Payments on bank credit facility | (22,851 | ) | (9,300 | ) | ||||
Proceeds from installment and other obligations | 341 | 178 | ||||||
Payments on installment and other obligations | (418 | ) | (316 | ) | ||||
Net cash provided by financing activities | 142,032 | 30,134 | ||||||
Change in Cash and Equivalents | 2,916 | (54 | ) | |||||
Cash and equivalents at beginning of period | 3,882 | 6,083 | ||||||
Cash and Equivalents at End of Period | $ | 6,798 | $ | 6,029 |
8
TXCO RESOURCES INC. SELECTED OPERATING DATA | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
($'s in thousands, except average prices) | June 30, 2007 | Sept. 30, 2007 | Sept. 30, 2006 | Sept. 30, 2007 | Sept. 30, 2006 | ||||||
Net cash provided in operating activities | $ | 6,193 | $ | 19,850 | $ | 4,050 | $ | 27,336 | $ | 13,950 | |
Ebitdax * | 11,284 | 17,789 | 13,586 | 33,823 | 32,038 | ||||||
Ebitda * | 11,006 | 17,520 | 13,265 | 32,900 | 31,078 | ||||||
Current ratio | 1.66 | 1.19 | 1.09 | 1.19 | 1.09 | ||||||
Debt to asset ratio | 44.5% | 49.3% | 0.1% | 49.3% | 0.1% | ||||||
Sales | |||||||||||
Oil: | |||||||||||
Sales, in mBbl | 241 | 288 | 242 | 680 | 588 | ||||||
Average realized sales price per barrel, excluding hedging impact | $ | 61.58 | $ | 71.59 | $ | 66.51 | $ | 64.34 | $ | 64.68 | |
Natural Gas: | |||||||||||
Sales, in mmcf | 644 | 652 | 278 | 1,517 | 864 | ||||||
Average realized sales price per mcf, excluding hedging impact | $ | 7.44 | $ | 6.77 | $ | 7.02 | $ | 7.13 | $ | 7.38 | |
Equivalent Basis: | |||||||||||
Sales in mBOE | 348 | 396 | 289 | 932 | 732 | ||||||
Average realized sales price per BOE, excluding hedging impact | $ | 56.35 | $ | 63.10 | $ | 62.59 | $ | 58.49 | $ | 60.66 | |
Sales in mmcfe | 2,088 | 2,377 | 1,732 | 5,595 | 4,390 | ||||||
Average realized sales price per mcfe, excluding hedging impact | $ | 9.39 | $ | 10.52 | $ | 10.43 | $ | 9.75 | $ | 10.11 | |
Other Operating Data | |||||||||||
Total lifting costs | $ | 5,347 | $ | 4,576 | $ | 2,696 | $ | 13,039 | $ | 7,498 | |
Total lifting costs per BOE | $ | 15.36 | $ | 11.55 | $ | 9.34 | $ | 13.98 | $ | 10.25 | |
Total lifting costs per mcfe | $ | 2.63 | $ | 1.92 | $ | 1.56 | $ | 2.33 | $ | 1.71 | |
Sales volume -oil properties -mBbl | 229 | 291 | 240 | 669 | 582 | ||||||
Oil prop. lifting costs-oil (Incl Prod & Sev Tax) | $ | 4,192 | $ | 2,617 | $ | 2,169 | $ | 9,325 | $ | 5,920 | |
Oil prop. lifting costs per barrel | $ | 18.27 | $ | 9.01 | $ | 9.02 | $ | 13.94 | $ | 10.17 | |
Glen Rose Porosity sales volume -mBbl | 162 | 207 | 215 | 492 | 506 | ||||||
Glen Rose Porosity lifting costs per barrel | $ | 9.12 | $ | 7.17 | $ | 6.57 | $ | 9.16 | $ | 6.53 | |
Sales volume -gas properties -mmcf | 605 | 703 | 252 | 1,518 | 796 | ||||||
Gas prop. lifting costs-gas (Incl Prod & Sev Tax) | $ | 1,990 | $ | 3,182 | $ | 548 | $ | 5,716 | $ | 1,600 | |
Gas prop. lifting costs per mcf | $ | 3.29 | $ | 4.52 | $ | 2.18 | $ | 3.77 | $ | 2.01 | |
Total depletion cost per BOE | $ | 24.62 | $ | 29.38 | $ | 15.57 | $ | 26.75 | $ | 14.70 | |
Total depletion cost per mcfe | $ | 4.10 | $ | 4.90 | $ | 2.60 | $ | 4.46 | $ | 2.45 | |
* Please see the last page of this press release for a reconciliation of these non-GAAP financial measures. |
9
TXCO RESOURCES INC.
EBITDA and EBITDAX RECONCILIATION to NET INCOME and NET CASH PROVIDED
PERIODS INDICATED
($ Thousands) | 1Q07 | 2Q07 | 3Q07 | YTD | 1Q06 | 2Q06 | 3Q06 | YTD | |
Net cash provided by operating | |||||||||
activities per CF Stmt | 1,000 | 6,486 | 19,850 | 27,336 | (402) | 10,303 | 4,050 | 13,950 | |
Change in operating assets and liabilities | (8,669) | (1,893) | 5,373 | (5,189) | (5,211) | 2,527 | (4,849) | (7,533) | |
Operating CF before change in | |||||||||
operating assets & liabilities | 9,670 | 8,379 | 14,477 | 32,525 | 4,809 | 7,776 | 8,898 | 21,483 | |
Deferred income taxes | (4,301) | 733 | (771) | (4,340) | - | 400 | 1,119 | 1,519 | |
Cash portion of net interest expense | 251 | 2,786 | 3,092 | 6,129 | 50 | (127) | (185) | (262) | |
Derivative settlements loss | 1,143 | 381 | - | 1,524 | 633 | 958 | 949 | 2,540 | |
Income tax expense, net | (965) | (717) | 721 | (961) | 763 | 2,552 | 2,484 | 5,799 | |
Exploration costs | 375 | 278 | 269 | 923 | 444 | 196 | 320 | 960 | |
Dry hole costs | (280) | (175) | 1 | (454) | - | - | - | - | |
Change in components of other | |||||||||
comprehensive income | (1,143) | (381) | - | (1,524) | - | - | - | - | |
Ebitdax | 4,750 | 11,284 | 17,789 | 33,823 | 6,698 | 11,755 | 13,586 | 32,038 | |
Less: Exploration costs | 375 | 278 | 269 | 923 | 444 | 196 | 320 | 960 | |
Ebitda | 4,375 | 11,006 | 17,520 | 32,900 | 6,254 | 11,559 | 13,265 | 31,078 | |
Less: | |||||||||
Loss on sale of assets | - | - | - | - | - | 11 | - | 11 | |
Income tax expense, net | (965) | (717) | 721 | (961) | 763 | 2,552 | 2,484 | 5,799 | |
Impairment & abandonments | 686 | 696 | (1,092) | 289 | 476 | 618 | - | 1,094 | |
Derivative Loss (Gain) | 1,143 | 381 | - | 1,524 | 639 | 485 | (370) | 753 | |
Interest, net | 251 | 2,786 | 3,092 | 6,129 | 50 | (127) | 358 | (262) | |
Non cash stock compensation | 226 | 345 | 613 | 1,184 | 252 | 364 | (185) | 974 | |
DD&A | 4,926 | 8,829 | 11,807 | 25,562 | 2,800 | 3,675 | 4,591 | 11,066 | |
Net Income (Loss) | (1,892) | (1,314) | 2,379 | (827) | 1,275 | 3,981 | 6,388 | 11,644 |
EBITDAX is earnings before income taxes, interest, depreciation, depletion, amortization, impairment, abandonment and exploration expense. EBITDA equals EBITDAX less exploration expense. We believe EBITDA and EBITDAX provide a more complete analysis of TXCO's operating performance and debt servicing ability relative to other companies, and of our ability to fund capital expenditure and working capital requirements.
These measures are widely used by investors and rating agencies. EBITDA, with certain negotiated adjustments, is referenced in TXCO's financial covenants and required in reporting under our credit facility. EBITDA and EBITDAX are not measures of financial performance under GAAP. Accordingly, they should not be considered as substitutes for net income, income from operations, or cash flow provided by operating activities prepared in accordance with GAAP.
Columns/rows may not foot/cross-foot due to rounding.
10