Exhibit 99.1
| 1004 N. Big Spring, Suite 400 | Contact: | Cindy Thomason | |
| Midland, TX 79701 | (432) 684-3727 | Manager of Investor Relations |
| http://www.plll.com | cindyt@plll.com | |
| | | | | | | |
PARALLEL PETROLEUM ANNOUNCES
THIRD QUARTER 2005 FINANCIAL RESULTS
MIDLAND, Texas, (BUSINESS WIRE), November 7, 2005 – Parallel Petroleum Corporation (NASDAQ: PLLL) today announced its financial results for the third quarter ended September 30, 2005. In a separate press release issued this morning, Parallel announced its operations update.
Third Quarter Results
For the three months ended September 30, 2005, Parallel reported net income of $8.6 million, or $.25 per diluted share. Operating income was $11.0 million, after oil and gas hedge payments of $5.6 million. For the three months ended September 30, 2004, Parallel recorded net income of $1.0 million, or $.04 per diluted share, which included $2.0 million of operating income, after oil and gas hedge payments of $2.5 million.
For the third quarter of 2005, Parallel’s sales were 247 MBbls of oil and 1,109 MMcf of natural gas, or 432 MBOE, a 59% increase when compared to the third quarter of 2004. During this period, the average prices the Company received for its oil and natural gas on an unhedged basis were $58.95 per barrel and $9.88 per Mcf, or $59.09 per BOE ($46.19 per BOE, hedged). For the same period of 2004, oil sales were 168 MBbls at an average unhedged price of $41.30 per barrel and natural gas sales were 619 MMcf at an average unhedged price of $5.24 per Mcf, or 272 MBOE at an average unhedged price of $37.56 per BOE ($28.49 per BOE, hedged).
Net cash provided by operating activities for the three-month period ended September 30, 2005, was $9.3 million, compared to $6.0 million for the three-month period ended June 30, 2005. The increase was primarily related to increased oil and gas prices and production volumes.
Nine Months Results
For the nine months ended September 30, 2005, Parallel reported net income of $9.5 million, or $.28 per diluted share. Included in net income was $17.9 million of operating income, after oil and gas hedge payments of $12.4 million. For the nine months ended September 30, 2004, Parallel recorded net income of $3.6 million, or $.13 per diluted share, which included $6.9 million of operating income, after oil and gas hedge payments of $5.4 million.
For the nine months ended September 30, 2005, Parallel’s sales were 672 MBbls of oil and 2,411 MMcf of natural gas, or 1,074 MBOE, a 30% increase when compared to the nine months ended September 30, 2004. During this period, the average prices the Company received for its oil and natural gas on an unhedged basis were $50.86 per barrel and $8.01 per Mcf, or $49.81 per BOE ($38.24 per BOE, hedged). For the same period of 2004, oil sales were 495 MBbls at an average unhedged price of $36.69 per barrel and natural gas sales were 1,995 MMcf at an average unhedged price of $5.45 per Mcf, or 828 MBOE at an average unhedged price of $35.10 per BOE ($28.58 per BOE, hedged).
Net cash provided by operating activities for the nine-month period ended September 30, 2005, was $19.1 million, compared to $11.7 million for the same period of 2004. The increase was primarily related to increased oil and gas prices and production volumes.
Balance Sheet Review
At September 30, 2005, current assets were $28.0 million, which included $6.1 million of cash. Current liabilities were $28.5 million, including current derivative obligations of $18.8 million, and long-term debt was $68.0 million. The Company’s credit facility as of November 1, 2005 had a borrowing base of $100.0 million. As of September 30, 2005, the Company’s net capitalized costs associated with its oil and gas properties and other equipment were $179.7 million. Its stockholders’ equity was $76.2 million, which includes $32.2 million of accumulated other comprehensive loss that is related to the Company’s hedging activities.
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Parallel Petroleum Announces 3Q 2005 Financial Results
November 7, 2005
Page 2
Third Quarter 2005 Pre-tax, Non-cash Gain on “Ineffective Portion of Oil Hedges”
The Company recorded a pre-tax, non-cash gain of approximately $2.9 million, or 22% of Income before income taxes, on “ineffective portion of oil hedges” during the third quarter of 2005. As described in the “Hedging Information” table within this press release, the Company currently has approximately 1.8 million barrels of oil hedged for the next 39 months (through 2008) at NYMEX prices ranging from $28.46 to $86.50 per barrel. The Company’s composite average differential between the hedged NYMEX price and the realized wellhead price was approximately $4.24 for the third quarter 2005. The Company’s differential was $6.20 and $4.52 for the second and first quarters of 2005, respectively. Parallel is experiencing an increased demand for West Texas Sour crude oil. The majority of the Company’s crude oil is West Texas Sour.
Management Comments
Larry C. Oldham, Parallel’s President, commented, “We are pleased with the Company’s $.25 per-share net earnings of $8.6 million and net cash provided by operating activities of $9.3 million for the three months ended September 30, 2005. These results reflect our 59% increase in production volumes and a 62% increase in realized commodity prices, compared to the third quarter of 2004.”
Oldham further commented, “Production volumes increased 29% and realized commodity prices increased 36%, when comparing third quarter 2005 to second quarter 2005. Net earnings increased 548% and net cash provided by operating activities increased 54%, when comparing third quarter 2005 to second quarter 2005.”
Today’s Earnings Conference Call and Webcast Information
The Company’s management will host a conference call to discuss its financial and operational results for the third quarter ended September 30, 2005, this afternoon, Monday, November 7, 2005, at 2:00 p.m. Eastern time (1:00 p.m. Central time). To participate in the call, dial 866-202-1971 or 617-213-8842, Participant Passcode 47260513, at least five minutes before the scheduled start time. The conference call will also be webcast with slides, and can be accessed live at Parallel’s web site, http://www.plll.com. A replay of the conference call will be available at the Company’s web site or by calling 888-286-8010 or 617-801-6888, Passcode 16998173. A written transcript of the conference call, and the supporting slide presentation, will be available on the Company’s web site Presentation page.
FINANCIAL STATEMENTS AND SCHEDULES FOLLOW
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Parallel Petroleum Announces 3Q 2005 Financial Results
November 7, 2005
Page 3
PARALLEL PETROLEUM CORPORATION | |
Consolidated Balance Sheets | |
(dollars in thousands) | |
| | | | | | | |
| | | September 30, | | | December 31, | |
Assets | | | 2005 | | | 2004 | |
| | | (unaudited) | | | | |
Current assets: | | | | | | | |
Cash and cash equivalents | | $ | 6,135 | | $ | 4,781 | |
Accounts receivable: | | | | | | | |
Oil and gas | | | 14,215 | | | 6,642 | |
Other, net of allowance for doubtful account of $9 | | | 740 | | | 389 | |
Affiliates | | | 10 | | | 7 | |
| | | 14,965 | | | 7,038 | |
Other current assets | | | 437 | | | 179 | |
Deferred tax asset | | | 6,456 | | | 2,531 | |
Total current assets | | | 27,993 | | | 14,529 | |
| | | | | | | |
Property and equipment, at cost: | | | | | | | |
Oil and gas properties, full cost method (including $18,470 and $9,526 not | | | | | | | |
subject to depletion) | | | 264,178 | | | 229,245 | |
Other | | | 2,483 | | | 2,062 | |
| | | 266,661 | | | 231,307 | |
Less accumulated depreciation, depletion and amortization | | | (86,941 | ) | | (78,782 | ) |
Net property and equipment | | | 179,720 | | | 152,525 | |
Restricted cash | | | 149 | | | 2,287 | |
Equity investment in Westfork Pipeline | | | 2,209 | | | 595 | |
Other assets, net of accumulated amortization of $792 and $581 | | | 828 | | | 735 | |
| | $ | 210,899 | | $ | 170,671 | |
Liabilities and Stockholders' Equity | | | | | | | |
Current liabilities: | | | | | | | |
Accounts payable and accrued liabilities | | $ | 9,556 | | $ | 5,568 | |
Asset retirement obligations | | | 133 | | | 150 | |
Derivative obligations | | | 18,811 | | | 7,965 | |
Total current liabilities | | | 28,500 | | | 13,683 | |
Revolving credit facility | | | 68,000 | | | 79,000 | |
Asset retirement obligations | | | 2,154 | | | 1,982 | |
Derivative obligations | | | 31,861 | | | 9,525 | |
Deferred tax liability | | | 4,233 | | | 6,487 | |
Total long-term liabilities | | | 106,248 | | | 96,994 | |
Commitments and contingencies (Note 10) | | | | | | | |
Stockholders' equity: | | | | | | | |
Series A preferred stock -- par value $0.10 per share, authorized 50,000 shares | | | — | | | — | |
Preferred stock -- 6% convertible preferred stock -- par value of $0.10 per share | | | | | | | |
(liquidation preference of $10 per share), authorized 10,000,000 shares, | | | | | | | |
issued and outstanding 950,000, converted to common stock June, 2005 | | | — | | | 95 | |
Common stock -- par value $0.01 per share, authorized 60,000,000 shares, | | | | | | | |
issued and outstanding 34,140,211 and 25,439,292 | | | 341 | | | 254 | |
Additional paid-in capital | | | 76,747 | | | 48,328 | |
Retained earnings | | | 31,292 | | | 22,073 | |
Accumulated other comprehensive loss | | | (32,229 | ) | | (10,756 | ) |
Total stockholders' equity | | | 76,151 | | | 59,994 | |
| | $ | 210,899 | | $ | 170,671 | |
| | | | | | | |
| | | | | | | |
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Parallel Petroleum Announces 3Q 2005 Financial Results
November 7, 2005
Page 4
PARALLEL PETROLEUM CORPORATION | |
Consolidated Statements of Income | |
(unaudited) | |
(in thousands, except per share data) | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Three Months Ended September 30, | | | Nine Months Ended | |
| | | 2005 | | | 2004 | | | 2005 | | | 2004 | |
Oil and Natural Gas Revenues: | | | | | | | | | | | | | |
Oil and natural gas sales | | $ | 25,501 | | $ | 10,208 | | $ | 53,474 | | $ | 29,066 | |
Loss on hedging and derivatives | | | (5,565 | ) | | (2,463 | ) | | (12,422 | ) | | (5,403 | ) |
Total revenues | | | 19,936 | | | 7,745 | | | 41,052 | | | 23,663 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | |
Lease operating expense | | | 2,663 | | | 1,894 | | | 7,399 | | | 5,437 | |
Production taxes | | | 1,334 | | | 458 | | | 2,615 | | | 1,407 | |
General and administrative | | | 1,796 | | | 1,438 | | | 4,950 | | | 3,881 | |
Depreciation, depletion and amortization | | | 3,104 | | | 1,984 | | | 8,159 | | | 6,030 | |
Total costs and expenses | | | 8,897 | | | 5,774 | | | 23,123 | | | 16,755 | |
Operating income | | | 11,039 | | | 1,971 | | | 17,929 | | | 6,908 | |
| | | | | | | | | | | | | |
Other income (expense), net: | | | | | | | | | | | | | |
Gain (loss) on ineffective portion of hedges | | | 2,864 | | | 57 | | | (647 | ) | | 64 | |
Interest and other income | | | 83 | | | 10 | | | 124 | | | 168 | |
Interest expense | | | (950 | ) | | (509 | ) | | (2,884 | ) | | (1,464 | ) |
Other expense | | | (75 | ) | | (25 | ) | | (77 | ) | | (110 | ) |
Equity in income (loss) of Westfork Pipeline | | | 22 | | | — | | | (72 | ) | | — | |
Total other income (expense), net | | | 1,944 | | | (467 | ) | | (3,556 | ) | | (1,342 | ) |
Income before income taxes | | | 12,983 | | | 1,504 | | | 14,373 | | | 5,566 | |
Income tax expense, deferred | | | (4,396 | ) | | (457 | ) | | (4,883 | ) | | (1,934 | ) |
Net income | | | 8,587 | | | 1,047 | | | 9,490 | | | 3,632 | |
Cumulative preferred stock dividend | | | — | | | (142 | ) | | (271 | ) | | (429 | ) |
Net income available to common stockholders | | $ | 8,587 | | $ | 905 | | $ | 9,219 | | $ | 3,203 | |
| | | | | | | | | | | | | |
Net income per common share: | | | | | | | | | | | | | |
Basic | | $ | 0.25 | | $ | 0.04 | | $ | 0.29 | | $ | 0.13 | |
Diluted | | $ | 0.25 | | $ | 0.04 | | $ | 0.28 | | $ | 0.13 | |
| | | | | | | | | | | | | |
Weighted average common share outstanding: | | | | | | | | | | | | | |
Basic | | | 34,033 | | | 25,382 | | | 31,585 | | | 25,284 | |
Diluted | | | 34,951 | | | 28,531 | | | 33,900 | | | 28,342 | |
| | | | | | | | | | | | | |
| | | | | | | |
| |
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Parallel Petroleum Announces 3Q 2005 Financial Results
November 7, 2005
Page 5
PARALLEL PETROLEUM CORPORATION | |
Consolidated Statements of Cash Flows | |
Nine Months Ended September 30, 2005 and 2004 | |
(unaudited) | |
(dollars in thousands) | |
| | 2005 | | 2004 | |
Cash flows from operating activities: | | | | | | | |
Net income | | $ | 9,490 | | $ | 3,632 | |
| | | | | | | |
Adjustments to reconcile net income to net cash | | | | | | | |
provided by operating activities: | | | | | | | |
Depreciation, depletion and amortization | | | 8,159 | | | 6,030 | |
Accretion of asset retirement obligation | | | 82 | | | 73 | |
Deferred income tax expense | | | 4,883 | | | 1,934 | |
(Loss) gain on ineffective portion of hedges | | | 647 | | | (64 | ) |
Common stock issued in lieu of cash for directors fees | | | 99 | | | 99 | |
Stock option expense | | | 119 | | | 127 | |
Equity in loss of Westfork Pipeline | | | 72 | | | — | |
Changes in assets and liabilities: | | | | | | | |
Increase in accounts receivable | | | (7,927 | ) | | (1,190 | ) |
Increase in other current assets | | | (258 | ) | | (10 | ) |
Other, net | | | (93 | ) | | (497 | ) |
Restricted cash | | | (149 | ) | | — | |
Increase in accounts payable and accrued liabilities | | | 3,988 | | | 1,563 | |
Net cash provided by operating activities | | | 19,112 | | | 11,697 | |
| | | | | | | |
Cash flows from investing activities: | | | | | | | |
Additions to oil and gas properties | | | (37,888 | ) | | (41,944 | ) |
Restricted cash | | | 2,287 | | | — | |
Proceeds from disposition of oil and gas properties | | | 3,028 | | | 1,693 | |
Additions to other property and equipment | | | (421 | ) | | (591 | ) |
Investment in Westfork Pipeline | | | (1,686 | ) | | — | |
Net cash used in investing activities | | | (34,680 | ) | | (40,842 | ) |
| | | | | | | |
Cash flows from financing activities: | | | | | | | |
Net borrowings (payments) on revolving credit facility | | | (11,000 | ) | | 15,250 | |
Proceeds (net) from common stock issued | | | 27,743 | | | — | |
Proceeds from exercise of stock options | | | 450 | | | 523 | |
Deferred stock offering costs | | | — | | | (7 | ) |
Payment of preferred stock dividend | | | (271 | ) | | (287 | ) |
Net cash provided by financing activities | | | 16,922 | | | 15,479 | |
| | | | | | | |
Net increase (decrease) in cash and cash equivalents | | | 1,354 | | | (13,666 | ) |
| | | | | | | |
Cash and cash equivalents at beginning of period | | | 4,781 | | | 17,378 | |
| | | | | | | |
Cash and cash equivalents at end of period | | $ | 6,135 | | $ | 3,712 | |
| | | | | | | |
Non-cash financing and investing activities: | | | | | | | |
Oil and gas properties asset retirement obligations, net | | $ | 73 | | $ | 232 | |
Conversion of preferred stock | | $ | 95 | | $ | — | |
Accrued preferred stock dividend | | $ | — | | $ | 142 | |
Other Transactions: | | | | | | | |
Interest paid | | $ | 2,986 | | $ | 1,465 | |
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Parallel Petroleum Announces 3Q 2005 Financial Results
November 7, 2005
Page 6
PARALLEL PETROLEUM CORPORATION
SELECTED OPERATING DATA | |
| | | | Three Months Ended | | Nine Months Ended | |
| | | | 9/30/2005 | | 9/30/2004 | | 9/30/2005 | | 9/30/2004 | |
| | | | | (in thousands, except per unit data) | |
Production Volumes: | | | | | | | | | | | | | | | |
Oil (Bbls) | | | | | 247 | | | 168 | | | 672 | | | 495 | |
Natural gas (Mcf) | | | | | 1,109 | | | 619 | | | 2,411 | | | 1,995 | |
BOE (1) | | | | | 432 | | | 272 | | | 1,074 | | | 828 | |
BOE per day | | | | | 4.7 | | | 3.0 | | | 3.9 | | | 3.0 | |
Sales Prices: | | | | | | | | | | | | | | | |
Oil (per Bbl) (2) | | | | $ | 58.95 | | $ | 41.30 | | $ | 50.86 | | $ | 36.69 | |
Natural gas (per Mcf) (2) | | | | $ | 9.88 | | $ | 5.24 | | $ | 8.01 | | $ | 5.45 | |
BOE price (2) | | | | $ | 59.09 | | $ | 37.56 | | $ | 49.81 | | $ | 35.10 | |
BOE price (3) | | | | $ | 46.19 | | $ | 28.49 | | $ | 38.24 | | $ | 28.58 | |
Operating Revenues: | | | | | | | | | | | | | | | |
Oil | | | | $ | 14,550 | | $ | 6,966 | | $ | 34,168 | | $ | 18,184 | |
Oil hedge | | | | | (5,408 | ) | | (2,159 | ) | | (12,064 | ) | | (4,805 | ) |
Natural gas | | | | | 10,951 | | | 3,242 | | | 19,306 | | | 10,882 | |
Natural gas hedge | | | | | (157 | ) | | (304 | ) | | (358 | ) | | (598 | ) |
| | | | $ | 19,936 | | $ | 7,745 | | $ | 41,052 | | $ | 23,663 | |
Operating Expenses: | | | | | | | | | | | | | | | |
Lease operating expense | | | | $ | 2,663 | | $ | 1,894 | | $ | 7,399 | | $ | 5,437 | |
Production taxes | | | | | 1,334 | | | 458 | | | 2,615 | | | 1,407 | |
General and administrative: | | | | | | | | | | | | | | | |
General and administrative | | | | | 1,174 | | | 839 | | | 3,120 | | | 2,379 | |
Public reporting | | | | | 622 | | | 599 | | | 1,830 | | | 1,502 | |
Depreciation, depletion and amortization | | | | | 3,104 | | | 1,984 | | | 8,159 | | | 6,030 | |
| | | | $ | 8,897 | | $ | 5,774 | | $ | 23,123 | | $ | 16,755 | |
Operating income | | | | $ | 11,039 | | $ | 1,971 | | $ | 17,929 | | $ | 6,908 | |
_________________________ | | | | | | | | | | | | | | | |
(1) A BOE means one barrel of oil equivalent using the ratio of six Mcf of gas to one barrel of oil. | |
(2) Excludes hedge transactions. | | | | | | | | | | | | | | | |
(3) Includes hedge transactions. |
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Parallel Petroleum Announces 3Q 2005 Financial Results
November 7, 2005
Page 7
PARALLEL PETROLEUM CORPORATION | |
HEDGING INFORMATION (1) | |
PUTS: | | | | Houston Ship Channel | | | |
| | MMBTU of | | Gas Price | | Fair Market | |
Period of Time | | Natural Gas | | Floor | | Value | |
| | | | | | | ($ in thousands) | |
Apr 1, 2006 thru Oct 31, 2006 | | 642,000 | | | $7.17 | | $(87) | |
| | | | | | | | | | | | | |
COSTLESS COLLARS: | | | | NyMex Oil Prices (2) | | | | Houston Ship Channel Gas Prices | | | |
Period of Time | | Barrels of Oil | | Floor | | | | | | | | | | Fair Market | |
| | | | | | | | | | | | | | | | | | ($ in thousands) | |
Oct. 1 2005 thru Oct 31, 2005 | | — | | $ | — | | $ | — | | 62,000 | | $ | 5.00 | | $ | 7.26 | $ | (226 | ) | |
Oct. 1 2005 thru Dec 31, 2005 | | 18,400 | | $ | 36.00 | | $ | 49.60 | | — | | $ | — | | $ | — | | (307 | ) | |
Jan 1, 2006 thru Dec 31, 2006 | | 180,300 | | $ | 44.11 | | $ | 71.78 | | — | | $ | — | | $ | — | | (1,691 | ) | |
Apr 1, 2006 thru Oct 31, 2006 | | — | | $ | — | | $ | — | | 214,000 | | $ | 6.00 | | $ | 12.40 | | (176 | ) | |
Jan 1, 2007 thru Dec 31, 2007 | | 109,500 | | $ | 50.00 | | $ | 86.50 | | — | | | — | | | — | | (135 | ) | |
Apr 1, 2007 thru Oct 31, 2007 | | — | | $ | — | | $ | — | | 214,000 | | $ | 6.00 | | $ | 11.05 | | (151 | ) | |
Total Fair Market Value | | | | | | | | | | | | | | | | | $ | (2,686 | ) | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | Volume | | NYMEX | | | |
SWAPS: | | Hedged | | Oil | | Fair Market | |
Period of Time | | Bbl Oil | | Swap Price | | Value | |
| | | | | | ($ in thousands) | |
Oct 1, 2005 thru Dec 31, 2005 | | 156,400 | | | $30.16 | | $ | (5,641 | ) |
Jan 1, 2006 thru Dec 20, 2006 | | 448,000 | | | $28.46 | | | (16,813 | ) |
Jan 1, 2007 thru Dec 31, 2007 | | 474,500 | | | $34.36 | | | (13,753 | ) |
Jan 1, 2008 thru Dec 31, 2008 | | 439,200 | | | $33.37 | | | (12,035 | ) |
Total Fair Market Value | | | | | | | $ | (48,242 | ) |
INTEREST RATE SWAPS:
| | | | Fixed | | | |
Period of Time | | Notional Amounts | | Interest Rates | | Fair Market Value | |
| | ($ in millions) | | | | ($ in thousands) | |
Oct 1, 2005 thru Dec 31, 2005 | | | $50 | | 3.36% | | $ | 81 | |
Jan 1, 2006 thru Dec 31, 2006 | | | $50 | | 3.82% | | | 313 | |
Jan 1, 2007 thru Dec 31, 2007 | | | $50 | | 4.30% | | | 73 | |
Jan 1, 2008 thru Dec 30, 2008 | | | $50 | | 4.74% | | | (124 | ) |
Total Fair Market Value | | | | | | | $ | 343 | |
_______________ | |
(1) | BNP Paribas is the counterparty in Parallel’s derivative instruments. | |
(2) | Excludes approximately 496,000 barrels hedged with our October 17, 2005 announced acquisition in Andrews and |
| | | |
Gaines Counties, Texas, with floors of $55.00 and caps from $82.50 to $71.00 for years 2006 thru October, 2010.
_____________________________________________________________________________________________________
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Parallel Petroleum Announces 3Q 2005 Financial Results
November 7, 2005
Page 8
The Company
Parallel Petroleum is an independent energy company headquartered in Midland, Texas, engaged in the acquisition, exploration, development and production of oil and gas using 3-D seismic technology and advanced drilling, completion and recovery techniques. Parallel’s primary areas of operation are the Permian Basin of West Texas and New Mexico, North Texas Barnett Shale, Onshore Gulf Coast of South Texas, East Texas and Utah/Colorado. Additional information on Parallel Petroleum Corporation is available at http://www.plll.com.
This release contains forward-looking statements subject to various risks and uncertainties that could cause the Company’s future plans, objectives and performance to differ materially from those in the forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “plan,” “subject to,” “anticipate,” “estimate,” “continue,” “present value,” “future,” “reserves”, “appears,” “prospective,” or other variations thereof or comparable terminology. Factors that could cause or contribute to such differences could include, but are not limited to, those relating to the results of exploratory drilling activity, the Company’s growth strategy, changes in oil and natural gas prices, operating risks, availability of drilling equipment, outstanding indebtedness, changes in interest rates, dependence on weather conditions, seasonality, expansion and other activities of competitors, changes in federal or state environmental laws and the administration of such laws, and the general condition of the economy and its effect on the securities market. While we believe our forward-looking statements are based upon reasonable assumptions, these are factors that are difficult to predict and that are influenced by economic and other conditions beyond our control. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission.
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