Consolidated revenue –157.0 bln rubles (+5% compared to 1H 2017) EBITDA*– 41.4 bln rubles (+3% compared to 1H 2017) Profit attributable to equity shareholders of Mechel PAO – 4.7 bln rubles
MOSCOW, Aug. 22, 2018 (GLOBE NEWSWIRE) -- Mechel PAO (MOEX: MTLR, NYSE: MTL), a leading Russian mining and steel group, announces financial results for the 1H 2018.
“In the second quarter, the Group improved its financial results quarter-on-quarter. The first half of the year’s results have also improved year-on-year. This was due to the implementation of our strategy of increasing the share of high-margin products in our production and sales structure, as well as a favorable market environment for most of our products.
“In the second quarter, our company managed to stabilize mining volumes. The measures undertaken since mid-last year and aimed at renewing and replenishing our mining fleet, yielded positive results. The only decline in mining we registered was at Yakutugol, which had accumulated sufficient stockpiles for processing and shipping. Yakutugol focused on stripping works, which is preparation for future coal mining. Other mining facilities, including Korshunov Mining Plant, demonstrated increase in mining volumes. We continue to work on restoring our production volumes.
“A minor decrease in our steel division’s pig iron and steel production was due to planned repairs at Chelyabinsk Metallurgical Plant. We also continue to push forward with our investment projects that will enable us to substitute imports and further improve our competitive advantages and profit margin. Practically all our facilities take advantage of favorable market conditions to master production of new product types and expand into new markets.
“Among other positive news I would like to note that the Group has received Gazprombank’s confirmation of adherence to the debt repayment schedule agreed for our credit facilities, which led to the write-off of fines and penalties totaling 7.3 billion rubles.”
Consolidated Results For The 1H2018
Mln rubles
1H’ 18
1H’ 17
%
2Q’ 18
1Q’ 18
%
Revenue from external customers
157,038
149,384
5
%
82,186
74,852
10
%
Operating profit
32,641
30,677
6
%
19,258
13,383
44
%
EBITDA
41,440
40,227
3
%
23,004
18,436
25
%
EBITDA, margin
26
%
27
%
28
%
25
%
Profit attributable to equity shareholders of Mechel PAO
4,693
4,994
-6
%
1,400
3,293
-57
%
___________________________
* EBITDA - Adjusted EBITDA. Please find the calculation of the Adjusted EBITDA and other non-IFRS measures used here and hereafter in Attachment A.
Mining Segment
Mechel Mining Management OOO’s Chief Executive Officer Pavel Shtark noted:
“In 2Q2018, the division demonstrated an improvement in financial results. Revenue from sales of our products to third parties went up by 13% quarter-on-quarter, EBITDA increased by 37%, and EBITDA margin reached 41%. The increase of sales of key products became the main factor that had a positive impact on the dynamics of the division’s results.
“The situation in the global coal market has worsened in 2Q2018 quarter-on-quarter as contract prices for premium hard coking coal slumped from $237 to $197 per tonne and average spot prices went down from $228 to $190 per tonne. Russia’s coal market was more stable, which enabled us to avoid the decrease in ruble prices on FCA basis quarter-on-quarter.
“The situation in China and Australia will traditionally have an impact on coal prices’ further dynamics. In August, Chinese authorities announced that investment into railway infrastructure in 2018 will most likely exceed 800 billion yuan instead of 732 billion planned earlier. China’s growing demand for steel products, combined with limitations on steel production in that country, which likely contribute to an inflated demand for high-quality imported raw materials. It is also possible that China will continue to amalgamate and consolidate coal producers while limiting mining volumes, which should also support prices.
“As for Australia, I should note that the leading producer of Australian coking coal reached record mining volumes, but export of Australian coal is unlikely to beat any records as insufficient funding will force rail freight operator Aurizon to reduce coal shipments by 20 million tonnes in 2018, including 16 million tonnes of coking coal.
“In the second quarter, the division increased coal sales volumes, as mining at Southern Kuzbass Coal Company and Elgaugol went up by 2% and 12% respectively. Mining at Yakutugol decreased quarter-on-quarter by 20%, which was due to an added focus on stripping works that exceeded the previous quarter’s results by 40%. In addition, in 1Q2018 a certain amount of coal has not been shipped, but remained in storage to be sold in the second quarter, which ensured a quarter-on-quarter increase in coal shipments. Due to large volumes of stripping works done at Yakutugol, production costs of products sold went up, but growth of mining volumes at Southern Kuzbass and Yakutugol led to a decrease in product unit costs and, ultimately, to an improved EBITDA and margin.”
Mln rubles
1H’ 18
1H’ 17
%
2Q’ 18
1Q’ 18
%
Revenue from external customers
48,400
51,519
-6
%
25,676
22,724
13
%
Revenue inter-segment
19,045
23,268
-18
%
9,633
9,412
2
%
EBITDA
24,891
34,563
-28
%
14,408
10,483
37
%
EBITDA, margin
37
%
46
%
41
%
33
%
Steel Segment
Mechel-Steel Management Company OOO’s Chief Executive Officer Andrey Ponomarev noted:
“In this reporting period, the division continued to improve its operational and financial results. There was an improvement of financial results both in 2Q2018 quarter-on-quarter and in 1H2018 year-on-year. Revenue from sales to third parties went up by 13% quarter-on-quarter, EBITDA went up by 33%, and margin reached 16%.
“Though early in 2Q2018 market growth was restrained by high competition and our consumers’ persistently low business activity, by mid-period demand has begun to pick up. Even though in June The 2018 FIFA World Cup put a damper on construction activity and overall demand, the price level for our products was higher quarter-on-quarter, which supported our financial results. Early in 3Q2018 prices in the market for long rolls began to grow, even though the excitement characteristic for the construction season is lacking.
“In this reporting period we increased sales of long products, hardware and stampings. Pig iron and steel production slumped by 4% and 6% accordingly quarter-on-quarter, which was due to planned repairs of Chelyabinsk Metallurgical Plant’s key facilities. In addition, we decreased shipments of rails both quarter-on-quarter and half a year on half a year, for the duration of negotiations on a new annual contract terms with Russian Railways. During this pause, the universal rolling mill was additionally loaded with beam production.”
Mln rubles
1H’ 18
1H’ 17
%
2Q’ 18
1Q’ 18
%
Revenue from external customers
94,382
84,955
11
%
50,144
44,238
13
%
Revenue inter-segment
2,955
3,740
-21
%
1,365
1,590
-14
%
EBITDA
14,484
6,074
138
%
8,280
6,204
33
%
EBITDA, margin
15
%
7
%
16
%
14
%
Power Segment
Mechel-Energo OOO’s Chief Executive Officer Petr Pashnin noted:
“In 2Q2018 the power division demonstrated an expected decline in financial and operational results quarter-on-quarter as the heating season came to a close and the repair campaign aimed at preparing our key heat and electrical equipment for the new season began. At the same time, in 1H2018 the power division demonstrated an improvement in both financial and operational results year-on-year, which was due to a higher load of our facilities in the cold winter season.”
Mln rubles
1H’ 18
1H’ 17
%
2Q’ 18
1Q’ 18
%
Revenue from external customers
14,256
12,910
10
%
6,365
7,891
-19
%
Revenue inter-segment
7,621
8,473
-10
%
3,584
4,037
-11
%
EBITDA
1,200
966
24
%
463
737
-37
%
EBITDA, margin
5
%
5
%
5
%
6
%
The management of Mechel will host a conference call today at 6:00 p.m. Moscow time (4:00 p.m. London time, 11:00 a.m. New York time) to review Mechel’s financial results and comment on current operations. The call may be accessed via the Internet at http://www.mechel.com, under the Investor Relations section.
Please dial the number below approximately 10 minutes prior to the scheduled time of the call.
Alexey Lukashov Director of Investor Relations Mechel PAO Phone: 7-495-221-88-88 Fax: 7-495-221-88-00 alexey.lukashov@mechel.com
Mechel is an international mining and steel company. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.
Attachments to the 1H 2018 Earnings Press Release
Attachment A
Non-IFRS financial measures. This press release includes financial information prepared in accordance with International Financial Reporting Standards, or IFRS, as well as other financial measures referred to as non-IFRS. The non-IFRS financial measures should be considered in addition to, but not as a substitute for the information prepared in accordance with IFRS.
Adjusted EBITDA (EBITDA) represents profit (loss) attributable to equity shareholders of Mechel PAO before Depreciation, depletion and amortization, Foreign exchange loss (gain), net, Finance costs including fines and penalties on overdue loans and borrowings and finance lease payments, Finance income, Net result on the disposal of non-current assets, Impairment of goodwill and other non-current assets, Write-off of accounts receivable, Write-off of inventories to net realisable value, Allowance for expected credit losses on financial assets, Allowance for doubtful accounts, Net result on the disposal of subsidiaries, Profit (loss) attributable to non-controlling interests, Income tax expense (benefit), Pension service cost and actuarial loss, other related expenses, Other fines and penalties, Gain on restructuring and forgiveness of accounts payable and write-off of accounts payable with expired legal term and Other one-off items. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of our Revenue. Our adjusted EBITDA may not be similar to EBITDA measures of other companies. Adjusted EBITDA is not a measurement under IFRS and should be considered in addition to, but not as a substitute for the information contained in our interim condensed consolidated statement of profit (loss) and other comprehensive income. We believe that our adjusted EBITDA provides useful information to investors because it is an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions and other investments and our ability to incur and service debt. While depreciation, depletion, amortisation and impairment of goodwill and other non-current assets are considered operating expenses under IFRS, these expenses primarily represent the non-cash current period allocation of costs associated with non-current assets acquired or constructed in prior periods. Our adjusted EBITDA calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the metals and mining industry.
Our calculations of Net debt, excluding fines and penalties on overdue amounts** and trade working capital are presented below:
Mln rubles
30.06.2018
31.12.2017
Loans and borrowings, excluding interest payable, fines and penalties on overdue amounts
390,520
380,541
Interest payable
18,889
20,420
Non-current loans and borrowings
15,991
17,360
Other non-current financial liabilities
42,516
40,916
Other current financial liabilities
534
734
less Cash and cash equivalents
(2,936
)
(2,452
)
Net debt, excluding finance lease liabilities, fines and penalties on overdue amounts
465,514
457,519
Current finance lease liabilities
6,572
7,476
Non-current finance lease liabilities
2,327
1,878
Net debt, excluding fines and penalties on overdue amounts
474,413
466,873
Mln rubles
30.06.2018
31.12.2017
Trade and other receivables
19,839
18,762
Inventories
41,090
37,990
Other current assets
7,831
7,589
Income tax receivables
168
107
Trade current assets
68,928
64,448
Trade and other payables
33,640
33,469
Advances received
5,430
4,385
Provisions and other current liabilities
2,642
3,428
Taxes and similar charges payable other than income tax
7,162
6,696
Income tax payable
5,325
4,578
Trade current liabilities
54,199
52,556
Trade working capital
14,729
11,892
_____________________________
** Calculations of Net debt could be differ from indicators calculated in accordance with loan agreements upon dependence on definitions in such agreements.
EBITDA can be reconciled to our interim condensed consolidated statement of profit (loss) and other comprehensive income as follows:
Consolidated Results
Mining Segment ***
Steel Segment***
Power Segment***
Mln rubles
6m 2018
6m 2017
6m 2018
6m 2017
6m 2018
6m 2017
6m 2018
6m 2017
Profit (loss) attributable to equity shareholders of Mechel PAO
4,693
4,994
1,284
10,698
1,673
(4,312
)
643
(13
)
Add:
Depreciation, depletion and amortisation
6,991
7,228
3,916
4,077
2,825
2,919
250
232
Foreign exchange loss (gain), net
11,580
(1,804
)
7,792
(1,496
)
3,771
(308
)
17
-
Finance costs including fines and penalties on overdue loans and borrowings and finance leases payments
21,445
24,096
15,867
17,725
6,036
6,975
281
447
Finance income
(7,863
)
(442
)
(6,170
)
(1,042
)
(1,661
)
(421
)
(771
)
(32
)
Net result on the disposal of non-current assets, impairment of goodwill and other non-current assets, write-off of accounts receivable and write-off of inventories to net realisable value, allowance for expected credit losses on financial assets and allowance for doubtful accounts
1,536
1,253
475
495
511
508
553
249
Net result on the disposal of subsidiaries
(310
)
4
(3
)
4
(307
)
-
-
-
Profit (loss) attributable to non-controlling interests
587
688
85
593
393
111
110
(16
)
Income tax expense
2,465
3,627
1,772
3,123
824
473
92
31
Pension service cost and actuarial loss, other related expenses
71
64
59
51
11
11
1
2
Other fines and penalties
309
599
(163
)
372
447
159
26
68
Gain on restructuring and forgiveness of accounts payable and write-off of accounts payable with expired legal term
(64
)
(80
)
(23
)
(37
)
(39
)
(41
)
(2
)
(2
)
EBITDA
41,440
40,227
24,891
34,563
14,484
6,074
1,200
966
EBITDA, margin
26
%
27
%
37
%
46
%
15
%
7
%
5
%
5
%
Mln rubles
2q 2018
1q 2018
2q 2018
1q 2018
2q 2018
1q 2018
2q 2018
1q 2018
Profit (loss) attributable to equity shareholders of Mechel PAO
1,400
3,293
1,013
271
(370
)
2,043
676
(33
)
Add:
Depreciation, depletion and amortisation
3,514
3,477
1,946
1,970
1,452
1,373
116
134
Foreign exchange loss (gain), net
12,088
(508
)
8,289
(497
)
3,783
(12
)
16
1
Finance costs including fines and penalties on overdue loans and borrowings and finance leases payments
10,982
10,463
8,167
7,700
3,057
2,979
123
158
Finance income
(7,770
)
(93
)
(5,822
)
(348
)
(1,553
)
(108
)
(760
)
(11
)
Net result on the disposal of non-current assets, impairment of goodwill and other non-current assets, write-off of accounts receivable and write-off of inventories to net realisable value, allowance for expected credit losses on financial assets and allowance for doubtful accounts
295
1,241
111
364
74
437
113
440
Net result on the disposal of subsidiaries
(310
)
-
(3
)
-
(307
)
-
-
-
Profit attributable to non-controlling interests
349
238
56
29
221
172
73
37
Income tax expense (benefit)
2,455
10
893
879
1,686
(862
)
99
(7
)
Pension service cost and actuarial loss, other related expenses
35
36
30
29
5
6
-
1
Other fines and penalties
(1
)
310
(255
)
92
248
199
7
19
Gain on restructuring and forgiveness of accounts payable and write-off of accounts payable with expired legal term
(33
)
(31
)
(17
)
(6
)
(16
)
(23
)
-
(2
)
EBITDA
23,004
18,436
14,408
10,483
8,280
6,204
463
737
EBITDA, margin
28
%
25
%
41
%
33
%
16
%
14
%
5
%
6
%
*** including inter-segment operations
Attachment B
INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT (LOSS) AND OTHER COMPREHENSIVE INCOME for the six months ended June 30, 2018
(All amounts are in millions of Russian rubles, unless stated otherwise)
Six months ended June 30, 2018
Six months ended June 30, 2017
(unaudited)
(unaudited)
Revenue
157,038
149,384
Cost of sales
(85,384
)
(80,608
)
Gross profit
71,654
68,776
Selling and distribution expenses
(28,851
)
(27,723
)
Loss on write-off of non-current assets
(200
)
(148
)
Allowance for expected credit losses on financial assets
(528
)
(443
)
Taxes other than income taxes
(2,396
)
(2,556
)
Administrative and other operating expenses
(7,685
)
(7,718
)
Other operating income
647
489
Total selling, distribution and operating income and (expenses), net
(39,013
)
(38,099
)
Operating profit
32,641
30,677
Finance income
7,863
442
Finance costs including fines and penalties on overdue loans and borrowings and finance leases payments of RUB 734 million and RUB 699 million for the six months ended June 30, 2018 and 2017, respectively
(21,445
)
(24,096
)
Foreign exchange (loss) gain, net
(11,580
)
1,804
Share of profit of associates, net
36
11
Other income
401
541
Other expenses
(171
)
(70
)
Total other income and (expense), net
(24,896
)
(21,368
)
Profit before tax
7,745
9,309
Income tax expense
(2,465
)
(3,627
)
Profit for the period
5,280
5,682
Attributable to:
Equity shareholders of Mechel PAO
4,693
4,994
Non-controlling interests
587
688
Other comprehensive income
Other comprehensive (loss) income to be reclassified to profit or loss in subsequent periods, net of income tax:
(321
)
28
Exchange differences on translation of foreign operations
(321
)
28
Other comprehensive income not to be reclassified to profit or loss in subsequent periods, net of income tax:
6
-
Re-measurement of defined benefit plans
6
-
Other comprehensive (loss) income for the period, net of tax
(315
)
28
Total comprehensive income for the period, net of tax
4,965
5,710
Attributable to:
Equity shareholders of Mechel PAO
4,378
5,022
Non-controlling interests
587
688
Earnings per share
Weighted average number of common shares
416,270,745
416,270,745
Basic and diluted profit for the period attributable to common equity shareholders of Mechel PAO (Russian rubles per share)
11,27
12,00
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION as of June 30, 2018
(All amounts are in millions of Russian rubles)
June 30, 2018
December 31, 2017
(unaudited)
Assets
Non-current assets
Property, plant and equipment
195,635
197,875
Mineral licenses
32,626
33,240
Goodwill and other intangible assets
19,234
19,211
Investments in associates
291
283
Deferred tax assets
148
96
Other non-current assets
733
758
Non-current financial assets
199
202
Total non-current assets
248,866
251,665
Current assets
Inventories
41,090
37,990
Income tax receivables
168
107
Trade and other receivables
19,839
18,762
Other current assets
7,831
7,589
Other current financial assets
546
562
Cash and cash equivalents
2,936
2,452
Total current assets
72,410
67,462
Total assets
321,276
319,127
Equity and liabilities
Equity
Common shares
4,163
4,163
Preferred shares
833
833
Additional paid-in capital
24,378
24,378
Accumulated other comprehensive income
988
1,303
Accumulated deficit
(282,121
)
(283,743
)
Equity attributable to equity shareholders of Mechel PAO
(251,759
)
(253,066
)
Non-controlling interests
9,515
8,933
Total equity
(242,244
)
(244,133
)
Non-current liabilities
Loans and borrowings
15,991
17,360
Finance lease liabilities
2,327
1,878
Other non-current financial liabilities
42,516
40,916
Other non-current liabilities
128
138
Pension obligations
3,530
3,512
Provisions
3,847
3,814
Deferred tax liabilities
10,025
11,494
Total non-current liabilities
78,364
79,112
Current liabilities
Loans and borrowings, including interest payable, fines and penalties on overdue amounts of RUB 32,451 million and RUB 41,992 million as of June 30, 2018 and December 31, 2017, respectively
422,971
422,533
Trade and other payables
33,640
33,469
Finance lease liabilities
6,572
7,476
Income tax payable
5,325
4,578
Taxes and similar charges payable other than income tax
7,162
6,696
Advances received
5,430
4,385
Other current financial liabilities
534
734
Other current liabilities
75
69
Pension obligations
880
849
Provisions
2,567
3,359
Total current liabilities
485,156
484,148
Total liabilities
563,520
563,260
Total equity and liabilities
321,276
319,127
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS for the six months ended June 30, 2018
(All amounts are in millions of Russian rubles unless stated otherwise)
Six months ended June 30, 2018
Six months ended June 30, 2017
(unaudited)
(unaudited)
Cash flows from operating activities
Profit for the period
5,280
5,682
Adjustments to reconcile profit to net cash provided by operating activities
Depreciation of property, plant and equipment
6,250
6,334
Depletion of mineral licenses and amortisation of intangible assets
741
894
Foreign exchange loss (gain), net
11,580
(1,804
)
Deferred tax (benefit) expense
(678
)
646
Allowance for expected credit losses on financial assets
528
443
Write-off of accounts receivable
67
18
Write-off of inventories to net realisable value
710
631
Loss on write-off of non-current assets
200
148
Loss on disposal of non-current assets
52
134
Gain on restructuring and forgiveness of accounts payable and write-off of accounts payable with expired legal term
(64
)
(80
)
Pension service cost and actuarial loss, other related expenses
71
64
Finance income
(7,863
)
(442
)
Finance costs including fines and penalties on overdue loans and borrowings and finance lease payments of RUB 734 million and RUB 699 million for the six months ended June 30, 2018 and 2017, respectively
21,445
24,096
Income associated with disposal of Bluestone
(3
)
(462
)
Provisions for legal claims, on taxes other than income tax and other provisions
(606
)
(3
)
Other
(45
)
40
Changes in working capital items
Trade and other receivables
(1,023
)
(334
)
Inventories
(4,221
)
(2,474
)
Trade and other payables
736
(2,247
)
Advances received
932
597
Taxes payable and other liabilities
3,355
2,528
Other current assets
(139
)
(424
)
Income tax paid
(2,501
)
(2,360
)
Net cash provided by operating activities
34,804
31,625
Cash flows from investing activities
Loans issued and other investments
-
(5
)
Interest received
37
123
Proceeds from royalty and other proceeds associated with disposal of Bluestone
3
462
Proceeds from disposal of subsidiaries, net of cash disposed
-
82
Proceeds from loans issued and other investments
5
142
Proceeds from disposals of property, plant and equipment
64
58
Purchases of property, plant and equipment
(2,155
)
(3,102
)
Purchases of intangible assets
(150
)
-
Interest paid, capitalised
(267
)
(188
)
Net cash used in investing activities
(2,463
)
(2,428
)
Cash flows from financing activities
Proceeds from loans and borrowings, including proceeds from factoring arrangement of RUB 3,193 million and nil for the six months ended June 30, 2018 and 2017, respectively
4,054
6,179
Repayment of loans and borrowings, including payments from factoring arrangement of nil and RUB 2,670 million for the six months ended June 30, 2018 and 2017, respectively
(15,256
)
(15,984
)
Dividends paid to non-controlling interests
(5
)
-
Interest paid, including fines and penalties
(16,818
)
(15,869
)
Repayment of obligations under finance lease
(1,474
)
(1,983
)
Deferred payments for acquisition of assets
(406
)
(108
)
Deferred consideration paid for the acquisition of subsidiaries in prior periods
(2,393
)
(1,545
)
Net cash used in financing activities
(32,298
)
(29,310
)
Effect of exchange rate changes on cash and cash equivalents
37
(268
)
Allowance for expected credit losses on cash and cash equivalents
(32
)
-
Net increase (decrease) in cash and cash equivalents
48
(381
)
Cash and cash equivalents at beginning of period
2,452
1,689
Cash and cash equivalents, net of overdrafts at beginning of period
1,223
1,453
Cash and cash equivalents at end of period
2,936
2,951
Cash and cash equivalents, net of overdrafts at end of period
1,271
1,072
These interim condensed consolidated financial statements were prepared by Mechel PAO in accordance with IFRS and have not been audited by the independent auditor. If these interim condensed consolidated financial statements are audited in the future, the audit could reveal differences in our consolidated financial results and we cannot assure that any such differences would not be material. There were certain reclassifications to conform with the current period presentation.
Source: GlobeNewswire
(August 22, 2018 - 6:00 AM EDT)
