EXHIBIT 99.1
WERNER ENTERPRISES, INC.
14507 Frontier Road
P. O. Box 45308
Omaha, Nebraska 68145
FOR IMMEDIATE RELEASE
- --------------------- Contacts: John J. Steele
Executive Vice President, Treasurer and
Chief Financial Officer
(402) 894-3036
Robert E. Synowicki, Jr.
Executive Vice President and
Chief Information Officer
(402) 894-3000
WERNER ENTERPRISES REPORTS FOURTH QUARTER 2007 AND ANNUAL 2007 REVENUES
AND EARNINGS
Omaha, Nebraska, January 23, 2008:
- ---------------------------------
Werner Enterprises, Inc. (NASDAQ:WERN), one of the nation's largest
truckload transportation and logistics companies, reported revenues and
earnings for the fourth quarter and year ended December 31, 2007.
Revenues increased 1% to $525.7 million in fourth quarter 2007
compared to $518.4 million in fourth quarter 2006. Revenues, excluding
fuel surcharges, decreased 4% to $435.0 million in fourth quarter 2007
compared to $453.8 million in fourth quarter 2006. Earnings per share
declined 30% to $.22 per share in fourth quarter 2007 compared to $.31
per share in fourth quarter 2006. Fourth quarter 2007 earnings per
share included a $.06 per share charge for the anticipated settlement of
an income tax matter, which increased the Company's effective income tax
rate to 55% for fourth quarter 2007. Excluding this item, earnings per
share declined 13% in fourth quarter 2007 compared to fourth quarter
2006.
For the full year, revenues decreased slightly to $2.071 billion in
2007 compared to $2.081 billion in 2006. Revenues, excluding fuel
surcharges, decreased 1% to $1.769 billion in 2007 compared to $1.794
billion in 2006. Earnings per share declined 18% to $1.02 in 2007
compared to $1.25 in 2006.
Continued freight demand softness and the temporary increase in the
supply of trucks caused by the industry truck pre-buy made for extremely
challenging freight market conditions during fourth quarter 2007. Load
counts for our Van Network of non-dedicated fleet trucks were lower
almost every week in October, November, and December of 2007 compared to
the same weeks of the previous four years. So far in January 2008
compared to the same period in January 2007, load counts are
approximately equal to levels a year ago for the Regional and Expedited
fleets, but are weaker, and are continuing to weaken, for the reduced-
sized, medium-to-long-haul Van fleet. Significantly higher fuel prices
had a $.05 per share negative impact on earnings in fourth quarter 2007
compared to fourth quarter 2006 and a $.09 per share negative impact on
earnings in 2007 compared to 2006.
In mid-March 2007 we began reducing our medium-to-long-haul Van
fleet by 250 trucks, or about 8% of total medium-to-long-haul Van solo
driver trucks, to better match freight and trucks and to improve
profitability. By the latter part of April 2007, this initial goal was
achieved, but we had not yet achieved the desired balance of trucks and
freight. As a result, we decided to further reduce our medium-to-long-
haul Van fleet by an additional 400 trucks, which we completed by the
end of June 2007. During second quarter 2007, we were able to transfer
a portion of our medium-to-long-haul Van fleet trucks to other more
profitable fleets. The net impact to our total fleet was an approximate
500-truck reduction from mid-March 2007 to the end of June 2007.
Beginning in the second week of November 2007, we reduced our medium-to-
long-haul Van fleet by an additional 100 trucks due to further weakness
in the Van market. This resulted in a cumulative 750-truck reduction of
our medium-to-long-haul Van fleet from mid-March 2007 to December 2007.
The year 2007 proved to be extremely challenging for the trucking
industry and Werner Enterprises, as the downturn in the housing sector
and the increased truck capacity that resulted from the 2007 truck pre-
buy were among several key factors that contributed to a soft freight
market. As we summarize the impact of these 2007 freight trends on our
business, it is important to note that we do not intend to describe
freight volumes for the industry as a whole, but rather comment on the
trends that Werner Enterprises has experienced within our own various
asset-based divisions.
By far, the most challenged of our asset-based divisions in 2007
was our medium-to-long-haul Van fleet, which is our irregular route, 48-
state, solo driver fleet. While the current weakness in freight volumes
can be attributed to recent trends, freight volumes over the past decade
in the medium-to-long-haul Van fleet have been affected by:
* The continuing decline in length of haul due to the regionalization
of freight by the large box retailers.
* The rapid growth of imported products shipped through ports using
ocean containers that carry goods intact into the domestic U.S.
Although a very high percentage of these ocean containers are
currently transported empty back to the ports, this cost structure
is beginning to change as railroad and ocean carrier contracts are
renewed. This change could lead to more transload opportunities
from the ports if freight shifts away from intact container
shipments to truckload trailer shipments.
* Growth within the Intermodal sector.
Because of these longer and shorter-term trends, the relative size
of our medium-to-long-haul Van fleet has changed over the past 10 years.
Our medium-to-long-haul Van fleet was approximately 58% (3,100 trucks)
of our total fleet in December 1997. After the fleet downsizing in
November, our medium-to-long-haul Van fleet has 2,250 trucks, or
approximately 27% of our total fleet.
After taking into account the 2007 fleet reductions, our medium-to-
long-haul Van fleet's pre-book percentages (loads to trucks) during
fourth quarter 2007 tracked at levels comparable to fourth quarter 2006.
While it remains difficult to earn an adequate rate of return on assets
and operating margin measured solely on its own, the value of the
medium-to-long-haul Van fleet to Werner Enterprises is greater than the
sum of its parts.
Our Regional fleets (shorter length of haul van capacity based in
five specific geographic regions) rely on our medium-to-long-haul Van
fleet freight base for additional volumes, equipment maintenance
routing, equipment replacement cycles, and weekend mileage production.
Freight volumes in our Regional fleets gradually improved during 2007,
as we developed business in our regional markets with partner customers
to support the approximately 20% fleet growth that occurred during
fourth quarter 2006. Some of the earlier weakness at the beginning of
2007 can be attributed to that fleet growth. Our Regional fleet's pre-
book percentages generally tracked above fourth quarter 2006 levels
during fourth quarter 2007.
Our Expedited "Team Werner" fleet (longer-haul, time-sensitive,
team driver service) also relies on our medium-to-long-haul Van fleet
for pre-staging of expedited shipments, repositioning team trucks into
critical team lanes, and utilizing our medium-to-long-haul Van freight
base to help smooth their freight volumes. Our Expedited division
experienced 18% growth during 2007. Our Expedited division's pre-book
percentages consistently exceeded 2006 levels during 2007.
Our Dedicated fleet, which can be described as contracted capacity
(assets under contract for the sole purpose and use of the customer),
also relies on our medium-to-long-haul Van fleet for flex trucks and
surge capacity for our dedicated customers. Our medium-to-long-haul Van
fleet has the ability to rapidly place hundreds of trucks in a
geographic region to meet the needs of dedicated customers. Our
Dedicated fleet also relies on our medium-to-long-haul Van freight base
to fill backhaul lanes, thereby limiting empty miles and reducing costs
for our dedicated customers. Our Dedicated fleets are sized to operate
at minimum capacity needs for our dedicated customers and utilize our
medium-to-long-haul Van capacity to meet their freight volume
fluctuations throughout the year. While our Dedicated fleets continue
to operate as they were designed, our Dedicated customers had less need
for flex capacity during 2007.
The driver market remained challenging, but was not as difficult in
fourth quarter 2007 as in fourth quarter 2006. The weakness in the
construction market and the medium-to-long-haul Van fleet reduction
contributed favorably to our driver recruiting and retention efforts in
fourth quarter 2007.
Our wholly-owned subsidiary, Fleet Truck Sales, is one of the
largest equipment sales remarketing companies in the U.S., and has been
in business since 1992. Gains on sales of assets, primarily trucks and
trailers, decreased to $3.6 million in fourth quarter 2007 from $6.9
million in fourth quarter 2006. Due to the weak freight market and high
fuel prices, Fleet Truck Sales demand softened in fourth quarter 2007.
This is expected to continue for at least the first half of 2008, which
will likely have a continued negative impact on the amount of our gains
on sales. In fourth quarter 2007, we continued to sell our oldest van
trailers that are fully depreciated, replacing them with new trailers,
and expect to continue doing so in 2008. Gains on sales are reflected
as a reduction of Other Operating Expenses in the Company's income
statement.
Average fuel cost per gallon (excluding fuel taxes) in fourth
quarter 2007 increased 72 cents, or 37%, compared to fourth quarter
2006. The average price per gallon was 62 cents higher in October 2007
than October 2006, was 84 cents higher in November 2007 than November
2006, and was 70 cents higher in December 2007 than December 2006. On a
sequential basis, average fuel prices increased 33 cents per gallon from
third quarter 2007 to fourth quarter 2007 while fuel prices decreased 32
cents per gallon from third quarter 2006 to fourth quarter 2006. For
the first 22 days of January 2008 compared to the same period in January
2007, average fuel cost increased 89 cents per gallon.
Assuming 5 billable miles per gallon, the fuel cost increase in
fourth quarter 2007 compared to fourth quarter 2006 was 14 cents per
mile. We have historically been successful recouping approximately 80%
of fuel cost increases through our fuel surcharge program. The
remaining 20% difference is caused by the impact of operational costs
such as truck idling, empty miles, out-of-route miles, and the
government mandated conversion to ultra-low sulfur diesel fuel. In the
past, we met with our customers to obtain recovery for this shortfall in
base rates per mile. However, with the current weaker freight market,
we have been unable to recover this shortfall in base rates. As a
result, increases in the cost of fuel are expected to continue to impact
our earnings per share until such time as freight market conditions
allow us to recover this shortfall from customers. We are continuing to
take actions to aggressively manage the controllable aspects of our fuel
costs.
The ongoing diversification of our service offerings to Dedicated
(35% of revenues), Mexico and Canada international truckload revenues
(9% of revenues) and logistics through our Value Added Services division
(11% of revenues) helped soften the impact of a less favorable freight
market in fourth quarter 2007, while providing increased service
offerings to our customers. We intend to continue to diversify and grow
Dedicated, International truckload and Value Added Services.
To provide shippers with additional sources of managed capacity and
network analysis, we are growing our non-asset based Value Added
Services (VAS) division. VAS includes brokerage, freight transportation
management, intermodal, and Werner Global Logistics.
Value Added Services (amounts in 000's) 4Q07 4Q06
- --------------------------------------- ---------------- ----------------
Revenues $58,190 100.0% $69,585 100.0%
Rent and purchased transportation
expense 49,467 85.0 62,832 90.3
------- -------
Gross margin 8,723 15.0 6,753 9.7
Other operating expenses 5,883 10.1 5,058 7.3
------- -------
Operating income $2,840 4.9 $1,695 2.4
======= =======
2007 2006
----------------- -----------------
Revenues $258,433 100.0% $265,968 100.0%
Rent and purchased transportation
expense 224,667 86.9 240,800 90.5
-------- --------
Gross margin 33,766 13.1 25,168 9.5
Other operating expenses 21,348 8.3 17,747 6.7
-------- --------
Operating income $12,418 4.8 $7,421 2.8
======== ========
VAS had a 16% decline in reported revenues (as explained below),
29% gross margin growth, and 68% operating income growth in fourth
quarter 2007 compared to fourth quarter 2006. Beginning in third
quarter 2007, we negotiated with a large VAS customer a structural
change to their continuing arrangement that resulted in a reduction in
VAS revenues and VAS rent and purchased transportation expense of $20.0
million from third quarter 2006 to third quarter 2007 and $18.5 million
from fourth quarter 2006 to fourth quarter 2007. This change had no
impact on the dollar amount of VAS gross margin or operating income.
Excluding the affected revenues for this customer, VAS revenues grew 14%
in fourth quarter 2007 compared to fourth quarter 2006 and grew 13% in
2007 compared to 2006.
Brokerage continued to produce strong results with 25% revenue
growth and improved gross margins from fourth quarter 2006 to fourth
quarter 2007. Freight Management, our single source logistics solution,
successfully distributed freight to other operating divisions and
continues to secure new customer business awards that are generating
additional freight opportunities across all company business units.
Both the Brokerage and Freight Management divisions benefit from the
medium-to-long-haul Van fleet as (1) their customer relationships help
generate freight brokerage opportunities and (2) since we are an asset-
backed logistics provider, our medium-to-long-haul Van fleet is a truck
capacity resource that is used by Brokerage and Freight Management if
they are unable to obtain a qualified third party carrier to handle a
committed shipment. Intermodal revenues declined by design, but
continued to produce significant operating income improvement as we
benefited from intermodal strategy changes that we began implementing
during the latter part of 2006. In November 2007, Werner Dedicated
Services and Werner Value Added Services were recognized by Logistics
Quarterly as one of "North America's Top Third Party Logistics
Providers."
Through our Werner Global Logistics (WGL) affiliates and
subsidiaries, we are actively assisting customers with innovative global
supply chain solutions. Customer development efforts are progressing.
WGL continues to produce several new and meaningful customer business
awards. Werner, through its subsidiaries and affiliates, is a licensed
U.S. NVOCC, U.S. Customs Broker, licensed Freight Forwarder in China,
licensed China NVOCC, a TSA approved Indirect Air Carrier, and an IATA
Accredited Cargo Agent.
A comparison of our truckload operating ratio, net of fuel
surcharge revenues, and VAS operating ratio for fourth quarters 2007 and
2006 is shown below.
Operating Ratios 4Q07 4Q06 Difference
- ---------------- -------- ------- ------------
Truckload Transportation Services 91.9% 89.9% 2.0%
Value Added Services 95.1 97.6 (2.5)
2007 2006 Difference
-------- ------- ------------
Truckload Transportation Services 91.9% 89.7% 2.2%
Value Added Services 95.2 97.2 (2.0)
Higher fuel prices and higher fuel surcharge collections have the
effect of increasing the total company operating ratio and the Truckload
Transportation Services segment's operating ratio. The year-over-year
change in the Company's reported consolidated operating ratio was 20
basis points higher in third quarter 2007 compared to third quarter 2006
and 140 basis points higher in fourth quarter 2007 compared to fourth
quarter 2006. Two-thirds of the 120 basis point increase from third
quarter to fourth quarter, or 80 basis points, was due to higher fuel
prices. Eliminating this sometimes volatile source of revenue provides
a more consistent basis for comparing the results of operations from
period to period. The Truckload Transportation Services segment's
operating ratios for fourth quarter 2007 and fourth quarter 2006 are
93.5% and 91.3%, respectively, and for 2007 and 2006 are 93.2% and
91.3%, respectively, if fuel surcharge revenues are included in revenues
and not netted against operating expenses.
During fourth quarter 2007, we reached an anticipated settlement
agreement with an Internal Revenue Service appeals officer, regarding a
significant timing difference between financial reporting and tax
reporting for our 2000 to 2004 federal income tax returns. This matter
was previously disclosed in our quarterly and annual filings with the
Securities and Exchange Commission. During fourth quarter 2007, we
accrued in Income Taxes Expense in the Company's income statement the
estimated cumulative interest charges, net of income taxes, for the
anticipated settlement of this matter, which amounts to $4.0 million, or
$.06 per share.
Our financial position remains strong. We have no debt outstanding
at December 31, 2007, after repaying our last $10.0 million of debt in
fourth quarter 2007. During fourth quarter 2007, we purchased 1.5
million shares of our stock at an average share price of $17.85 for a
total cost of $26.8 million.
INCOME STATEMENT DATA
(Unaudited)
(In thousands, except per share amounts)
Quarter % of Quarter % of
Ended Operating Ended Operating
12/31/07 Revenues 12/31/06 Revenues
---------- --------- ---------- ---------
Operating revenues $525,728 100.0 $518,447 100.0
---------- --------- ---------- ---------
Operating expenses:
Salaries, wages and
benefits 147,192 28.0 148,961 28.7
Fuel 117,548 22.4 90,306 17.4
Supplies and maintenance 39,477 7.5 37,103 7.2
Taxes and licenses 28,894 5.5 30,127 5.8
Insurance and claims 23,641 4.5 27,693 5.4
Depreciation 41,721 7.9 42,720 8.3
Rent and purchased
transportation 90,909 17.3 101,156 19.5
Communications and
utilities 4,846 0.9 4,812 0.9
Other (2,301) (0.4) (5,073) (1.0)
---------- --------- ---------- ---------
Total operating
expenses 491,927 93.6 477,805 92.2
---------- --------- ---------- ---------
Operating income 33,801 6.4 40,642 7.8
---------- --------- ---------- ---------
Other expense (income):
Interest expense 57 0.0 854 0.2
Interest income (1,000) (0.2) (1,112) (0.2)
Other 75 0.0 134 0.0
---------- --------- ---------- ---------
Total other expense
(income) (868) (0.2) (124) (0.0)
---------- --------- ---------- ---------
Income before income taxes 34,669 6.6 40,766 7.8
Income taxes 19,084 3.6 16,724 3.2
---------- --------- ---------- ---------
Net income $15,585 3.0 $24,042 4.6
========== ========= ========== =========
Diluted shares outstanding 71,988 77,253
========== ==========
Diluted earnings per share $.22 $.31
========== ==========
OPERATING STATISTICS
Quarter Ended Quarter Ended
12/31/07 % Change 12/31/06
------------- ---------- -------------
Trucking revenues, net of
fuel surcharge (1) $369,943 -2.0% $377,566
Trucking fuel surcharge
revenues (1) 90,717 40.3% 64,654
Non-trucking revenues,
including VAS (1) 60,528 -16.1% 72,113
Other operating revenues (1) 4,540 10.4% 4,114
------------- -------------
Operating revenues (1) $525,728 1.4% $518,447
============= =============
Average monthly miles per
tractor (3) 10,018 5.2% 9,519
Average revenues per total
mile (2) $1.476 -0.1% $1.477
Average revenues per loaded
mile (2) $1.707 -0.1% $1.708
Average percentage of empty
miles 13.53% 0.2% 13.50%
Average trip length in
miles (loaded) 550 -4.2% 574
Total miles (loaded and
empty) (1)(3) 250,637 -2.0% 255,631
Average tractors in service 8,339 -6.8% 8,951
Average revenues per
tractor per week (2)(3) $3,412 5.1% $3,245
Capital expenditures, net (1) ($1,210) $113,522
Cash flow from operations (1) $40,799 $57,276
Return on assets (annualized) 4.6% 6.7%
Total tractors (at quarter end)
Company 7,470 8,180
Owner-operator 780 820
------------- -------------
Total tractors 8,250 9,000
Total trailers (truck and
intermodal, quarter end) 24,855 25,200
(1) Amounts in thousands.
(2) Net of fuel surcharge revenues.
(3) Note: 1 more business day in 4Q07 (64) than 4Q06 (63).
INCOME STATEMENT DATA
(In thousands, except per share amounts)
Year % of Year % of
Ended Operating Ended Operating
12/31/07 Revenues 12/31/06 Revenues
---------- --------- ---------- ---------
Operating revenues $2,071,187 100.0 $2,080,555 100.0
---------- --------- ---------- ---------
Operating expenses:
Salaries, wages and
benefits 598,837 28.9 594,783 28.6
Fuel 408,410 19.7 388,710 18.7
Supplies and maintenance 159,843 7.7 155,304 7.5
Taxes and licenses 117,170 5.7 117,570 5.7
Insurance and claims 93,769 4.5 92,580 4.4
Depreciation 166,994 8.1 167,516 8.1
Rent and purchased
transportation 387,564 18.7 395,660 19.0
Communications and
utilities 20,098 1.0 19,651 0.9
Other (18,015) (0.9) (15,720) (0.8)
---------- --------- ---------- ---------
Total operating
expenses 1,934,670 93.4 1,916,054 92.1
---------- --------- ---------- ---------
Operating income 136,517 6.6 164,501 7.9
---------- --------- ---------- ---------
Other expense (income):
Interest expense 2,977 0.2 1,196 0.1
Interest income (3,989) (0.2) (4,407) (0.2)
Other 247 0.0 319 0.0
---------- --------- ---------- ---------
Total other expense
(income) (765) 0.0 (2,892) (0.1)
---------- --------- ---------- ---------
Income before income taxes 137,282 6.6 167,393 8.0
Income taxes 61,925 3.0 68,750 3.3
---------- --------- ---------- ---------
Net income $75,357 3.6 $98,643 4.7
========== ========= ========== =========
Diluted shares outstanding 74,114 79,101
========== ==========
Diluted earnings per share $1.02 $1.25
========== ==========
OPERATING STATISTICS
Year Ended Year Ended
12/31/07 % Change 12/31/06
------------- ---------- -------------
Trucking revenues, net of
fuel surcharge (1) $1,483,164 -1.3% $1,502,827
Trucking fuel surcharge
revenues (1) 301,789 5.2% 286,843
Non-trucking revenues,
including VAS (1) 268,388 -3.2% 277,181
Other operating revenues (1) 17,846 30.2% 13,704
------------- -------------
Operating revenues (1) $2,071,187 -0.5% $2,080,555
============= =============
Average monthly miles per
tractor 9,888 1.4% 9,756
Average revenues per total
mile (2) $1.464 -0.1% $1.466
Average revenues per loaded
mile (2) $1.692 0.4% $1.686
Average percentage of empty
miles 13.48% 3.2% 13.06%
Average trip length in
miles (loaded) 558 -4.0% 581
Total miles (loaded and
empty) (1) 1,012,964 -1.2% 1,025,129
Average tractors in service 8,537 -2.5% 8,757
Average revenues per
tractor per week (2) $3,341 1.2% $3,300
Capital expenditures, net (1) $26,068 $241,821
Cash flow from operations (1) $227,985 $284,065
Return on assets (annualized) 5.4% 7.1%
Total tractors (at quarter end)
Company 7,470 8,180
Owner-operator 780 820
------------- -------------
Total tractors 8,250 9,000
Total trailers (truck and
intermodal, quarter end) 24,855 25,200
(1) Amounts in thousands.
(2) Net of fuel surcharge revenues.
BALANCE SHEET DATA
(In thousands, except share amounts)
12/31/07 12/31/06
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $25,090 $31,613
Accounts receivable, trade, less
allowance of $9,765 and $9,417,
respectively 213,496 232,794
Other receivables 14,587 17,933
Inventories and supplies 10,747 10,850
Prepaid taxes, licenses and permits 17,045 18,457
Current deferred income taxes 26,702 25,251
Other current assets 21,500 24,143
------------ ------------
Total current assets 329,167 361,041
------------ ------------
Property and equipment 1,605,445 1,687,220
Less - accumulated depreciation 633,504 590,880
------------ ------------
Property and equipment, net 971,941 1,096,340
------------ ------------
Other non-current assets 20,300 20,792
------------ ------------
$1,321,408 $1,478,173
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $49,652 $75,821
Insurance and claims accruals 76,189 73,782
Accrued payroll 21,753 21,344
Other current liabilities 19,395 19,963
------------ ------------
Total current liabilities 166,989 190,910
------------ ------------
Long-term debt - 100,000
Other long-term liabilities 14,165 999
Insurance and claims accruals, net of
current portion 110,500 99,500
Deferred income taxes 196,966 216,413
Stockholders' equity:
Common stock, $.01 par value,
200,000,000 shares authorized;
80,533,536 shares issued; 70,373,189
and 75,339,297 shares outstanding,
respectively 805 805
Paid-in capital 101,024 105,193
Retained earnings 923,411 862,403
Accumulated other comprehensive loss (169) (207)
Treasury stock, at cost;
10,160,347 and 5,194,239 shares,
respectively (192,283) (97,843)
------------ ------------
Total stockholders' equity 832,788 870,351
------------ ------------
$1,321,408 $1,478,173
============ ============
Werner Enterprises, Inc. was founded in 1956 and is a premier
transportation and logistics company, with coverage throughout the
United States, Canada, Mexico, Asia, Europe, and South America. Werner
maintains its global headquarters in Omaha, Nebraska with offices
throughout North America and China. Werner is among the five largest
truckload carriers in the United States, with a diversified portfolio of
transportation services that includes dedicated, medium-to-long-haul,
regional and local van capacity, expedited, temperature-controlled, and
flatbed. Werner's Value Added Services portfolio includes freight
management, truck brokerage, intermodal, load/mode and network
optimization and freight forwarding. Werner, through its subsidiary
companies, is a licensed U.S. NVOCC, U.S. Customs Broker, licensed
Freight Forwarder in China, licensed China NVOCC, a TSA approved
Indirect Air Carrier, and an IATA Accredited Cargo Agent.
Werner Enterprises' common stock trades on The NASDAQ Global Select
MarketSM under the symbol WERN. The Werner website address is
www.werner.com.
Note: This press release contains forward-looking statements,
which are based on information currently available. Actual results
could differ materially from those anticipated as a result of a number
of factors, including, but not limited to, those discussed in Item 1A of
the Company's Annual Report on Form 10-K for the year ended December 31,
2006. The Company assumes no obligation to update any forward-looking
statement to the extent it becomes aware that it will not be achieved
for any reason.