SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 6, 2007
Timberland Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Washington 0-23333 91-1863696
--------------- --------- ------------
State or other jurisdiction Commission (I.R.S. Employer
Of incorporation File Number Identification No.)
624 Simpson Avenue, Hoquiam, Washington 98550
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number (including area code) (360) 533-4747
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions.
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
--------------------------------------------------------
On November 6, 2007, Timberland Bancorp, Inc. issued its earnings release
for the quarter ended September 30, 2007. A copy of the earnings release is
attached hereto as Exhibit 99.1, which is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
--------------------------------------------
(c) Exhibits
99.1 Press Release of Timberland Bancorp, Inc. dated September 30, 2007
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
TIMBERLAND BANCORP,INC.
DATE: November 6, 2007 By: /s/Dean J. Brydon
--------------------
Dean J. Brydon
Chief Financial Officer
Exhibit 99.1
TIMBERLAND BANCORP, INC Contact: Michael R. Sand,
President & CEO
Dean J. Brydon, CFO
(360) 533-4747
www.timberlandbank.com
----------------------
TIMBERLAND BANCORP, INC. EARNINGS PER SHARE INCREASE 10% TO RECORD $0.32
HOQUIAM, WA----November 6, 2007 -- Timberland Bancorp, Inc.
(NASDAQ:TSBK), ("Timberland") the holding company for Timberland Bank,
("Bank") today reported record fourth quarter earnings per share led by strong
loan growth, solid asset quality, improving efficiency and ongoing share
repurchases. Timberland increased its diluted earnings per share 10% to $0.32
compared to $0.29 per share in the fourth quarter one year ago. Timberland also
reported record diluted earnings per share for the fiscal year ended September
30, 2007 of $1.17 compared to $1.12 for the fiscal year ended September 30,
2006. All per share data has been adjusted to reflect the 2-for-1 stock split in
the form of a 100% stock dividend paid on June 5, 2007.
Fiscal Fourth Quarter (September 30, 2007) Highlights -
* Diluted earnings per share increased 10% compared to 4Q06
* Return on equity increased to 11.66%.
* Loan portfolio increased 21% to $515 million during the past 12 months.
* Asset quality remained strong, with non-performing assets at 0.23% of
total assets and a net charge-off of only $2,000 during the quarter.
"We continue to benefit from a strong Northwest economy," stated Michael Sand,
Timberland's President and CEO. "Although markets in the Puget Sound area are
experiencing higher inventory levels and longer sales cycles, housing prices
have risen during the first nine months of this year compared to the same period
last year. While we retain an optimistic view of our region's economic
prospects, recent sales statistics indicate that the sales of new homes slowed
in King and Pierce Counties on a year-to-date basis. Residential sales
transactions decreased by 12% and 31% in King and Pierce Counties respectively
through September of this year as compared to the prior year. We continue to
closely monitor our builders and their inventory levels in this economic
environment. Our loan portfolio is well diversified by geography and by loan
type. We are pleased with the improvement in our earnings per share and in our
return on equity this past quarter," Sand also stated.
Operating Results
Fiscal fourth quarter revenue (net interest income before provision for loan
losses plus non-interest income) increased 5% to $8.3 million from $7.9 million
in the like quarter one year ago. Net interest income before the provision for
loan losses for the fourth quarter of fiscal 2007 increased 8% to $6.7 million
compared to the like quarter one year ago with interest income increasing 21%
and interest expense increasing 47%. For the fiscal year ended September 30,
2007, revenues increased 4% to $32.1 million from $30.9 million the year before.
Net interest income before provision for loan losses increased 6% to $26.2
million, with interest income increasing 18% and interest expenses increasing
46%. Loan growth contributed to the increase in net interest income and offset
increased funding costs.
"As we have seen throughout the banking industry, the relatively flat yield
curve and intense competition for deposits has impacted margins," said Dean
Brydon, Chief Financial Officer. "We have funded some of our loan growth this
year with moderate core deposit growth, supplemented by wholesale funding
sources." Timberland's net interest margin was 4.60% for the fourth quarter
compared to 4.67% for the third quarter of fiscal 2007 and 4.91% for the fourth
quarter one year ago. For the year ended September 30, 2007 the net interest
margin was 4.69% compared to 4.91% for the year ended September 30, 2006.
The loan portfolio continued to perform well during the quarter with net
charge-offs totaling only $2,000. The fourth quarter provision for loan losses
totaled $270,000 compared to no provision made during the fourth quarter of
fiscal 2006. For the full fiscal year, the provision for loan losses totaled
$686,000 compared to no provision for fiscal 2006.
Non-interest income decreased 6% to $1.56 million for the fourth quarter from
$1.65 million for the fourth fiscal quarter of 2006. Non-interest income for
fiscal 2007 decreased 5% to $5.96 million from $6.24 million for fiscal 2006.
Non-interest income decreased primarily due to lower income from loan sales and
a reduction in service charges on deposits accounts. On a linked quarter basis,
non-interest income increased 4%. The increase in non-interest income was
primarily due to an increase in service charges on deposit accounts and an
increase in the gain on sale of loans.
Timberland Q4 Earnings
November 6, 2007
Page 2
"In fiscal 2007, total revenue growth outpaced the growth of operating overhead,
which improved our efficiency ratio," Sand noted. The efficiency ratio for the
fourth quarter was 58.47% compared to 60.03% for the same quarter one year ago.
The efficiency ratio for fiscal 2007 improved to 60.54% from 61.19% for fiscal
2006. Primarily because of increased advertising expenses and increased premises
and equipment expenses, Timberland's total operating (non-interest) expenses
increased 2% to $4.85 million for the current quarter from $4.75 million for the
fourth quarter one year ago. Operating expenses for fiscal 2007 increased 3% to
$19.45 million from $18.90 million for fiscal 2006, primarily due to increased
compensation expenses and higher advertising and ATM expenses.
"Our return on equity continued to improve as profitability increased and we
returned excess capital to shareholders through regular dividends and share
repurchase programs," Sand noted. Timberland's return on equity ("ROE") was
11.66% for the fourth quarter of fiscal 2007, compared to the prior quarter's
11.24% and 10.89% for the fourth quarter of fiscal 2006.
Timberland's return on assets ("ROA") was 1.36% for the fourth quarter of fiscal
2007, compared to the prior quarter's 1.38% and 1.53% for the same period one
year ago. For the fiscal year ended September 30, 2007, ROE was 10.67% compared
to 10.59% for fiscal 2006, and ROA was 1.34% compared to 1.47% one year ago.
Balance Sheet Management
Total assets increased to $645 million at September 30, 2007, compared to $624
million at June 30, 2007 and $577 million one year ago primarily due to strong
loan portfolio growth. Net loans receivable increased 14% on an annualized basis
during the quarter to $515 million at September 30, 2007, and increased 21% from
$425 million one year ago. During the past 12 months the portfolio has increased
by $91 million as construction and land development loans (net of the
undisbursed portion) increased $33 million, land loans increased $31million,
multi-family loans increased $17 million, consumer loans increased $10 million,
and commercial business loans increased $6 million.
LOAN PORTFOLIO
($ in thousands)
Sept. 30, 2007 June 30, 2007 Sept. 30, 2006
Amount Percent Amount Percent Amount Percent
-------- ---- -------- ---- -------- ----
Mortgage Loans:
One-to-four family (1) $102,434 17% $103,883 18% $ 98,709 20%
Multi family 35,157 6 31,719 6 17,689 4
Commercial 127,866 22 128,118 22 137,609 28
Construction and land
development 186,261 32 181,157 32 146,855 30
Land 60,706 10 53,794 9 29,598 6
-------- ---- -------- ---- -------- ----
Total mortgage loans 512,424 87 498,671 87 430,460 88
Consumer Loans:
Home equity and second
mortgage 47,269 8 44,347 8 37,435 8
Other 10,922 2 11,735 2 11,127 2
-------- ---- -------- ---- -------- ----
58,191 10 56,082 10 48,562 10
Commercial business loans 18,164 3 16,625 3 11,803 2
-------- ---- -------- ---- -------- ----
Total loans $588,779 100% $571,378 100% $490,825 100%
Less:
Undisbursed portion of
construction loans in
process (65,673) (66,598) (59,260)
Unearned income (2,968) (2,921) (2,798)
Allowance for loan losses (4,797) (4,529) (4,122)
-------- -------- --------
Total loans receivable, net $515,341 $497,330 $424,645
======== ======== ========
__________
(1) Includes loans held for sale
Timberland Q4 Earnings
November 6, 2007
Page 3
CONSTRUCTION LOAN COMPOSITION
($ in thousands)
Sept. 30, 2007 June 30, 2007 Sept. 30, 2006
Amount Percent Amount Percent Amount Percent
-------- ---- -------- ---- -------- ----
Custom and owner / builder $ 52,375 28% $ 48,894 27% $ 46,346 32%
Speculative 43,012 23 43,655 24 34,363 23
Commercial real estate 50,518 27 50,729 28 42,398 29
Multi-family 18,064 10 19,801 11 7,662 5
Land development 22,292 12 18,078 10 16,086 11
-------- ---- -------- ---- -------- ----
Total construction loans $186,261 100% $181,157 100% $146,855 100%
Loan originations of $66.3 million for the quarter were nearly identical to the
$66.4 million in loan originations for the quarter ended June 30, 2007. Loan
originations decreased 23% to $66.3 million for the quarter ended September 30,
2007 compared to $86.5 million for the same quarter one year ago. In fiscal 2007
loan originations increased 17% to $299.7 million from $256.3 million for fiscal
2006. The Bank also continued to sell fixed rate one-to-four family mortgage
loans into the secondary market for asset-liability management purposes. Fixed
rate one-to-four family mortgage loan sales totaled $8.3 million for the fourth
quarter of fiscal 2007 compared to $8.8 million for the same period one year
ago. In fiscal 2007 loan sales increased by 13% to $29.9 million from $26.4
million for fiscal 2006.
Total deposits increased $33.2 million to $466.7 million at September 30, 2007
from $433.5 million at June 30, 2007 primarily due to the addition of $24.1
million in brokered deposits which were used to help fund loan portfolio growth.
Balances in money market accounts and certificates of deposit accounts showed
strong increases during the quarter and year-over-year.
DEPOSIT BREAKDOWN
($ in thousands)
Sept. 30, 2007 June 30, 2007 Sept. 30, 2006
Amount Percent Amount Percent Amount Percent
-------- ---- -------- ---- -------- ----
Non-interest bearing $ 54,962 12% $ 50,580 12% $ 57,905 13%
N.O.W. checking 80,372 17 80,290 18 89,509 21
Savings 56,412 12 59,558 14 60,235 14
Money market accounts 48,068 10 46,446 11 42,378 10
Certificates of deposit
under $100 135,528 29 131,803 30 128,183 30
Certificates of deposit $100
and over 67,316 15 64,837 15 52,851 12
Certificates of deposit -
brokered 24,077 5 -- -- -- --
-------- ---- -------- ---- -------- ----
Total deposits $466,735 100% $433,514 100% $431,061 100%
======== ==== ======== ==== ======== ====
Total shareholders' equity increased $555,000 to $74.5 million at September 30,
2007 from $74.0 million at June 30, 2007. Timberland continued to manage its
capital ratio through asset growth, stock repurchases and dividends. During the
quarter Timberland repurchased 72,000 shares for $1.2 million (an average price
of $16.56 per share). There are 144,950 shares remaining to be repurchased in
the current stock repurchase plan. Cumulatively, Timberland has repurchased 7.6
million shares at an average price of $8.89 per share. The share repurchases
equal approximately 58% of the 13.2 million shares that were issued in
Timberland's initial public offering in January 1998. A cash dividend of $0.10
per share was paid during the quarter, which represented the 38th consecutive
quarter a cash dividend was paid to shareholders. On October 30, 2007 the
Company announced a quarterly cash dividend of $0.10 per share, payable on
November 27, 2007 to shareholders of record on November 13, 2007.
Asset Quality
Asset quality remained strong as the non-performing assets to total assets ratio
was 0.23% at September 30, 2007, with a net charge-off of only $2,000 during the
quarter. The allowance for loan losses totaled $4.8 million at September 30,
2007, or 0.92% of loans receivable and 322% of non-performing loans. The
allowance for loan losses was $4.5 million, or 0.90% of loans receivable at June
30, 2007. The Bank's non-performing loans totaled $1.49 million at September 30,
2007 and were
Timberland Q4 Earnings
November 6, 2007
Page 4
comprised of a $159,000 single family loan, a $28,000 land loan and $1.30
million in loans to a construction company. The $1.30 million in loans to the
construction entity were secured by two single family homes and a land parcel in
Pierce County.
About Timberland Bancorp, Inc.
Timberland Bancorp, Inc. stock trades on the NASDAQ global market under the
symbol "TSBK." The Bank operates 21 branches in the state of Washington in
Hoquiam, Aberdeen, Ocean Shores, Montesano, Elma, Olympia, Lacey, Tumwater,
Yelm, Puyallup, Edgewood, Tacoma, Spanaway (Bethel Station), Gig Harbor,
Poulsbo, Silverdale, Auburn, Winlock, and Toledo.
Timberland Q4 Earnings
November 6, 2007
Page 5
TIMBERLAND BANCORP INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT Three Months Ended
($ in thousands, except per share) Sept. 30, June 30, Sept. 30,
(unaudited) 2007 2007 2006
---------- ---------- ----------
Interest and dividend income
Loans receivable $ 10,335 $ 9,981 $ 8,252
Investments and mortgage-backed
securities 344 350 510
Dividends 433 426 401
Federal funds sold 69 49 97
Interest bearing deposits in banks 16 8 23
---------- ---------- ----------
Total interest and dividend income 11,197 10,814 9,283
Interest expense
Deposits 3,180 2,866 2,351
Federal Home Loan Bank ("FHLB") advances 1,262 1,278 659
Other borrowings 11 12 13
---------- ---------- ----------
Total interest expense 4,453 4,156 3,023
---------- ---------- ----------
Net interest income 6,744 6,658 6,260
Provision for loan losses 270 260 --
---------- ---------- ----------
Net interest income after provision
for loan losses 6,474 6,398 6,260
Non-interest income
Service charges on deposits 715 692 755
Gain on sale of loans, net 106 79 122
BOLI net earnings 120 116 116
Escrow fees 14 22 33
Servicing income on loans sold 133 127 160
ATM transaction fees 307 295 284
Other 162 170 183
---------- ---------- ----------
Total non-interest income 1,557 1,501 1,653
Non-interest expense
Salaries and employee benefits 2,624 2,752 2,650
Premises and equipment 625 557 590
Advertising 274 190 187
Loss (gain) from other real estate
operations 1 1 (77)
ATM expenses 143 128 129
Postage and courier 131 113 116
Amortization of core deposit intangible 71 71 82
State and local taxes 152 148 138
Professional fees 125 175 265
Other 708 626 670
---------- ---------- ----------
Total non-interest expense 4,854 4,761 4,750
Income before federal income taxes 3,177 3,138 3,163
Federal income taxes 1,022 1,000 1,019
---------- ---------- ----------
Net income $ 2,155 $ 2,138 $ 2,144
========== ========== ==========
Earnings per common share:
Basic $ 0.33 $ 0.32 $ 0.30
Diluted $ 0.32 $ 0.31 $ 0.29
Weighted average shares outstanding:
Basic 6,516,381 6,713,777 7,034,754
Diluted 6,690,048 6,910,165 7,290,954
Timberland Q4 Earnings
November 6, 2007
Page 6
TIMBERLAND BANCORP INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT Year Ended
($ in thousands, except per share) September 30, September 30,
(unaudited) 2007 2006
------------ ------------
Interest and dividend income
Loans receivable $ 38,386 $ 31,397
Investments and mortgage-backed securities 1,529 2,152
Dividends 1,692 1,436
Federal funds sold 260 389
Interest bearing deposits in banks 77 78
------------ ------------
Total interest and dividend income 41,944 35,452
Interest expense
Deposits 11,292 7,905
Federal Home Loan Bank ("FHLB") advances 4,436 2,860
Other borrowings 50 49
------------ ------------
Total interest expense 15,778 10,814
------------ ------------
Net interest income 26,166 24,638
Provision for loan losses 686 --
------------ ------------
Net interest income after provision
for loan losses 25,480 24,638
Non-interest income
Service charges on deposits 2,776 2,981
Gain on sale of loans, net 356 386
BOLI net earnings 464 449
Escrow fees 92 120
Servicing income on loans sold 505 425
ATM transaction fees 1,138 1,026
Other 631 857
------------ ------------
Total non-interest income 5,962 6,244
Non-interest expense
Salaries and employee benefits 10,928 10,744
Premises and equipment 2,452 2,403
Advertising 843 688
Loss (gain) from other real estate operations (13) (156)
ATM expenses 497 428
Postage and courier 478 486
Amortization of core deposit intangible 285 328
State and local taxes 571 564
Professional fees 650 876
Other 2,760 2,535
------------ ------------
Total non-interest expense 19,451 18,896
Income before federal income taxes 11,991 11,986
Federal income taxes 3,828 3,829
------------ ------------
Net income $ 8,163 $ 8,157
============ ============
Earnings per common share:
Basic $ 1.20 $ 1.16
Diluted $ 1.17 $ 1.12
Weighted average shares outstanding:
Basic 6,775,822 7,032,662
Diluted 6,982,107 7,281,896
Timberland Q4 Earnings
November 6, 2007
Page 7
TIMBERLAND BANCORP, INC.
CONSOLIDATED BALANCE SHEET
($ in thousands) (unaudited) Sept. 30, June 30, Sept. 30,
Assets 2007 2007 2006
-------- -------- --------
Cash and due from financial institutions
Non-interest bearing $ 10,813 $ 11,798 $ 14,870
Interest-bearing deposits in banks 2,082 1,188 2,519
Federal funds sold 3,775 205 5,400
-------- -------- --------
16,670 13,191 22,789
Certificate of deposit held for investment -- -- 100
Investments and mortgage-backed securities:
Held to maturity 71 72 75
Available for sale 63,898 64,911 81,408
FHLB Stock 5,705 5,705 5,705
-------- -------- --------
69,674 70,688 87,288
Loans receivable 519,381 500,694 426,318
Loans held for sale 757 1,165 2,449
Less: Allowance for loan losses (4,797) (4,529) (4,122)
-------- -------- --------
Net loans receivable 515,341 497,330 424,645
Accrued interest receivable 3,424 3,177 2,806
Premises and equipment 16,575 16,557 16,730
Other Real estate owned ("OREO") and other
repossessed items -- 68 15
Bank owned life insurance ("BOLI") 12,415 12,294 11,951
Goodwill 5,650 5,650 5,650
Core deposit intangible 1,221 1,292 1,506
Mortgage servicing rights 1,051 1,018 932
Other assets 2,827 2,881 2,775
-------- -------- --------
Total Assets $644,848 $624,146 $577,087
======== ======== ========
Liabilities and Shareholders' Equity
Non-interest-bearing deposits $ 54,962 $ 50,580 $ 57,905
Interest-bearing deposits 411,773 382,934 373,156
-------- -------- --------
Total deposits 466,735 433,514 431,061
FHLB advances 99,697 112,463 62,761
Other borrowings: repurchase agreements 595 775 947
Other liabilities and accrued expenses 3,274 3,402 2,953
-------- -------- --------
Total Liabilities 570,301 550,154 497,722
-------- -------- --------
Shareholders' Equity
Common stock- $.01 par value; 50,000,000
shares authorized; September 30, 2007 -
6,953,360 shares issued and outstanding
June 30, 2007 - 7,025,360 shares issued
and outstanding September 30, 2006 -
3,757,676 shares issued and outstanding
on a pre-split basis 70 70 38
Additional paid in capital 10,315 11,425 20,888
Unearned shares- Employee Stock Ownership Plan (3,040) (3,106) (3,305)
Unearned shares- Management Recognition and
Development Plan (392) (415) (188)
Retained earnings 68,378 66,915 62,933
Accumulated other comprehensive loss (784) (897) (1,001)
-------- -------- --------
Total Shareholders' Equity 74,547 73,992 79,365
-------- -------- --------
Total Liabilities and Shareholders' Equity $644,848 $624,146 $577,087
======== ======== ========
Timberland Q4 Earnings
November 6, 2007
Page 8
KEY FINANCIAL RATIOS AND DATA
($ in thousands, except per share) Three Months Ended
(unaudited) Sept. 30, June 30, Sept. 30,
2007 2007 2006
--------- --------- ---------
PERFORMANCE RATIOS:
Return on average assets (a) 1.36% 1.38% 1.53%
Return on average equity (a) 11.66% 11.24% 10.89%
Net interest margin (a) 4.60% 4.67% 4.91%
Efficiency ratio 58.47% 58.35% 60.03%
Year Ended
Sept. 30, Sept. 30,
2007 2006
--------- ---------
Return on average assets 1.34% 1.47%
Return on average equity 10.67% 10.59%
Net interest margin 4.69% 4.91%
Efficiency ratio 60.54% 61.19%
Sept. 30, June 30, Sept. 30,
2007 2007 2006
--------- --------- ---------
ASSET QUALITY RATIOS:
Non-performing loans $ 1,490 $ 982 $ 80
OREO and other repossessed assets -- 68 15
--------- --------- ---------
Total non-performing assets $ 1,490 $ 1,050 $ 95
Non-performing assets to total assets 0.23% 0.17% 0.02%
Allowance for loan losses to
non-performing loans 322% 461% 5,153%
Book value per share (b) $ 10.72 $ 10.53 $ 10.56
Book value per share (c) $ 11.39 $ 11.19 $ 11.22
Tangible book value per share (b) (d) $ 9.73 $ 9.54 $ 9.61
Tangible book value per share (c) (d) $ 10.34 $ 10.14 $ 10.21
(a) Annualized
(b) Calculation includes ESOP shares not committed to be released
(c) Calculation excludes ESOP shares not committed to be released
(d) Calculation subtracts goodwill and core deposit intangible from the
equity component
AVERAGE BALANCE SHEET Three Months Ended
Sept. 30, June 30, Sept. 30,
2007 2007 2006
--------- --------- ---------
Average total loans $ 509,166 $ 494,137 $ 411,012
Average total interest earning assets 586,056 570,597 510,180
Average total assets 634,762 619,120 560,941
Average total interest bearing deposits 405,078 388,610 372,371
Average FHLB advances and other borrowings 96,442 98,467 48,518
Average shareholders' equity 73,916 76,087 78,724
Year Ended
Sept. 30, Sept. 30,
2007 2006
--------- ---------
Average total loans $ 477,029 $ 399,811
Average total interest earning assets 558,298 502,194
Average total assets 607,781 554,231
Average total interest bearing deposits 387,505 365,544
Average FHLB advances and other borrowings 85,599 55,773
Average shareholders' equity 76,497 77,044
Timberland Q4 Earnings
November 6, 2007
Page 9
Disclaimer
This report contains certain "forward-looking statements." The Company desires
to take advantage of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995 and is including this statement for the express
purpose of availing itself of the protection of such safe harbor with forward
looking statements. These forward-looking statements may describe future plans
or strategies and include the Company's expectations of future financial
results. Forward-looking statements are subject to a number of risks and
uncertainties that might cause actual results to differ materially from stated
objectives. These risk factors include but are not limited to the effect of
interest rate changes, competition in the financial services market for both
deposits and loans as well as regional and general economic conditions. The
words "believe," "expect," "anticipate," "estimate," "project," and similar
expressions identify forward-looking statements. The Company's ability to
predict results or the effect of future plans or strategies is inherently
uncertain and undue reliance should not be placed on such statements.