Hawaiian Electrical Industries, Inc. (NYSE:HE) Q2 2022 Earnings Convention Name August 8, 2022 4:15 PM ET
Julie Smolinski – VP, IR and Company Sustainability
Scott Seu – President & CEO
Paul Ito – Interim HEI CFO
Shelee Kimura – President & CEO, Hawaiian Electrical
Ann Teranishi – American Financial savings Financial institution President and CEO;
Dane Teruya – EVP & CFO, American Financial savings Financial institution, F.S.B.
Convention Name Contributors
Julien Dumoulin-Smith – Financial institution of America
Paul Patterson – Glenrock Associates
Colton Ching – SVP, Planning & Know-how
Good afternoon. Thanks for attending immediately’s Q2 2022 Hawaiian Electrical Industries Inc. Earnings Convention Name. My identify is Tania and I might be your moderator for immediately. All traces might be muted throughout the presentation portion of the decision with a possibility for questions-and-answers on the finish. [Operator Instructions]
It’s now my pleasure to go the convention over to our host, Julie Smolinski, Vice President, Investor Relations and Company Sustainability. Please proceed?
Thanks, Tania. Welcome everybody to HEI’s second quarter 2022 earnings name. Becoming a member of me immediately are Scott Seu, HEI’s President and CEO; Paul Ito, Interim HEI CFO; Shelee Kimura, Hawaiian Electrical President and CEO; Ann Teranishi, American Financial savings Financial institution President and CEO; and different members of senior administration.
Our press launch and our presentation for this name can be found on the Investor Relations part of our web site. As a reminder, forward-looking statements might be made on immediately’s name. Elements that might trigger precise outcomes to vary materially from expectations could be present in our presentation, our SEC filings, and within the Investor Relations part of our web site.
Now, Scott will start along with his remarks.
Greetings everybody. Thanks for becoming a member of us immediately. We’re happy with our consolidated second quarter earnings of $52.5 million and earnings per share of $0.48. Our earnings replicate stable outcomes on the utility, which continues to carry out properly below the performance-based regulation framework. Whereas we have continued to see the upper O&M bills we talked about on final quarter’s name and which we’ll focus on additional shortly, we count on to stay inside our utility steerage vary for the 12 months, albeit inside the decrease half of the vary.
The financial institution had a superb quarter as properly, benefiting from robust mortgage progress and the upper fee setting. With the financial institution’s mortgage progress, the quarter additionally noticed a return to a extra normalized provision expense following 5 consecutive quarters of detrimental provision. Whereas this diminished the financial institution’s outcomes versus the prior 12 months and linked quarters. This was in step with dynamics anticipated for this 12 months. General, we’re reaffirming our consolidated steerage vary for the 12 months.
Taking a more in-depth take a look at latest utility developments; along with authorities businesses, regulators, builders and different stakeholders, we’re making nice strides in our clear power transition. We’re approaching a serious milestone, the tip of coal in Hawaii, a key motion in our local weather change motion plan. The retirement of state’s final coal plant is on monitor for September 1. The state’s largest photo voltaic plus storage venture got here on-line, July 31. Two extra photo voltaic plus storage tasks are slated to return on-line within the subsequent few months and the fee not too long ago permitted the final Stage 2 Photo voltaic Plus storage PTA [ph] that was awaiting determination.
The Fee additionally requested us to think about including photo voltaic to our proposed battery storage venture on Maui and we’re engaged on a proposal to take action. As well as, the Fee indicated it might rethink our proposed Hawaii Island battery storage venture that it beforehand denied, after we discovered whether or not we have secured Infrastructure Funding and Jobs Act, or IIJA funding for that venture.
Renewable capability permitted by the PUC below Stage 1and Stage 2 RFPs that stay energetic, totals practically 575 megawatts with 2,250 megawatt hours of battery power storage. We’re persevering with to hunt extra clear power assets, issuing our draft Stage Three RFPs for Oahu, Hawaii Island and Maui, totaling 1,600 gigawatt hours yearly of variable, renewable dispatchable power, and between 540 megawatts and 740 megawatts of renewable agency capability. We’re working to develop buyer assets as properly.
Our expanded sensible meter deployment continues with sensible meters now in place for greater than 20% of consumers and we now have better flexibility below our latest fee determination to handle prices inside the price restoration mechanism for that program, in addition to search restoration of extra O&M related to the elevated deployment.
Lastly, our state’s RPS regulation has been up to date and is now based mostly on renewable era as a p.c of complete era, relatively than a p.c of gross sales. In step with our RPS-A Efficiency Incentive Mechanism or PIM. The impact of this system change is that precise outcomes might be decrease whereas the RPS targets stay unchanged. Nonetheless, all of our plans are designed to exceed the RPS-A targets. So we stay assured we’ll meet our RPS targets.
Guaranteeing reliability and resilience for our prospects all through this transition is a key precedence. We have purposely accelerated overhauls and upkeep on our producing models to satisfy electrical energy wants and improve reliability because the coal plant approaches retirement. This together with inflation has impacted our O&M the previous two quarters, and we count on comparable dynamics the remainder of the 12 months.
Strengthening our resilience to the impacts of local weather change can also be important. Final month, we filed a five-year plan with the fee that if permitted, will enable us to harden our grids whereas limiting buyer invoice affect to lower than a $1 a month. Final month, the Fee issued an order within the Efficiency-Based mostly Regulation or PBR docket creating three new efficiency incentives, overlaying era reliability, price administration and well timed completion of interconnection research and increasing the timeframe for the grid companies incentive.
We proposed that the brand new PIMS be efficient January 01, 2023, and our request is pending PUC approval. The result displays the collaborative efforts of the PBR working group, which the fee has designated as a type for refining and growing additional proposed efficiency incentives going ahead.
We all know our prospects are feeling financially challenged as inflation and excessive gas prices proceed to stress family bills. On account of present excessive oil prices, we additionally count on a brief improve in buyer charges Wwen the AEF coal plant retires. We now have complete efforts underway to assist prospects handle their utility payments. This contains providing versatile fee plans, connecting prospects to authorities and non-profit utility help applications, encouraging electrical energy conservation, power effectivity and participation in our DER applications, transitioning away from fossil gas era to utility scale mounted fee photo voltaic and storage, and persevering with to search for methods to enhance our price construction, similar to by way of a price saving worker retirement program redesign, we not too long ago carried out.
Turning to the financial institution; ASB continues to carry out very properly and maintains its top quality place, together with its low threat profile, stable credit score high quality and low price funding base. The financial institution’s outcomes for the second quarter are in step with dynamics we anticipated this 12 months.
Mortgage progress was robust throughout the quarter throughout many of the financial institution’s portfolio. We did see a return to extra normalized provision expense to accommodate that progress, lowering financial institution earnings in comparison with the prior 12 months and linked quarters. We proceed to see wholesome exercise in our mortgage pipeline. The rising fee setting drove margin expense within the second quarter and the Federal Reserve’s extra fee elevated final month is anticipated to spur additional growth. I am sorry, the rising fee setting drove margin growth within the second quarter and the Federal Reserve’s extra fee elevated final month is anticipated to spur additional growth.
Our financial institution’s digital transformation stays on monitor. We not too long ago upgraded to Zelle for person-to-person funds and proceed to put money into our digital transformation, together with in buyer relationship capabilities and knowledge administration.
Now I am going to hand the decision over to Paul who’s serving as our Interim CFO till we full our course of to fill the CFO place.
Thanks, Scott. Hawaiian’s financial system stays wholesome and we imagine it’s properly positioned to develop a few of their financial headwinds we’re seeing. Tourism arrivals have continued to strengthen and in June, we’re near 90% of pre-pandemic ranges. Complete home passenger accounts 12 months to this point by way of July 2022 have been very robust, over 11% increased than the whole home passenger accounts year-to-date by way of July 2019.
Worldwide arrivals, which historically account for over 1 / 4 of our complete are nonetheless properly beneath 2019 ranges. Worldwide tourism is selecting up nevertheless and can function a further tailwind for our financial system. Japan is a key supply of tourism for us and in June we noticed the best degree of Japan arrival since April 2020. Arrivals from Canada are actually approaching pre-pandemic ranges and arrivals from different worldwide markets are additionally increased than final 12 months though nonetheless properly off of pre-levels. Guests are additionally spending extra June on customer expenditures 12% above 2019 ranges?
Hawaiian’s housing market has traditionally been robust in comparison with the principle power this 12 months with housing costs hitting data in a number of months and stock remaining tight. Our housing market has carried out properly on a relative foundation by way of downturns. From 2008 by way of 2011, the decline in single household dwelling costs in Hawaii was lower than half the Mainland common. This housing market stability, which is the results of restricted provide and enticing location contributes to our financial institution’s robust credit score high quality as 85% of the financial institution’s portfolio is actual property secured at conservative mortgage to worth ranges with a weighted common mortgage to worth on a residential portfolio of lower than 50% and on our industrial portfolio of lower than 58%.
Hawaii unemployment has additionally fared comparatively properly throughout downturns. Through the nice monetary disaster, Hawaii’s unemployment fee peaked at 7% whereas nationwide unemployment reached 10%. Hawaii, unemployment has trended favorably since its pandemic peak of 24% in April, 2020, and was 4.3% in June down from 5.9% in June of final 12 months.
In abstract, whereas there’s measured optimism for the near-term path of the Hawaii financial system, we proceed to look at inflation and provide chain dynamics in addition to the chance and attainable impacts of a recession very carefully. Nonetheless, on a relative foundation, the Hawaii financial system has fared properly by way of downturns previously, and is presently steady.
Turning to Slide 6, our second quarter outcomes mirrored stable execution throughout the enterprise. The utility continues to carry out properly in its first full 12 months below PBR and earnings have been up 5% versus final 12 months. We’re seeing some pressures on utility OEM, which I am going to focus on shortly.
The banks noticed robust mortgage progress and increasing web curiosity margin though earnings have been impacted by a extra normalized provision expense, given the quarter’s robust mortgage progress. Consolidated final 12 months return on fairness remained wholesome at 10.4%. Utility ROE was in keeping with expectations at 8.2%, regardless of O&M pressures and financial institution ROE remained robust at 13% on a final 12 months foundation.
On Slide 7, we present the main variances throughout our enterprise in comparison with the second quarter of final 12 months. Decrease financial institution web revenue was primarily pushed by a return to a extra normalized provision expense, $2.Eight million this quarter, in comparison with the detrimental provision of $12.2 million recorded within the second quarter of 2021. Recall that we anticipated decrease financial institution earnings in comparison with 2021 as we had sizable provision releases final 12 months, coming off giant provisions taken in 2020 as a result of pandemic. The banks noticed robust mortgage progress within the quarter and though we did have some provision releases resulting from favorable credit score traits, the releases have been greater than offset by provision expense, primarily pushed by mortgage progress.
Web curiosity revenue of $61.Eight million was up $1 million versus the second quarter of final 12 months due primarily to increased common incomes asset balances, partially offset by anticipated decrease payment revenue related to the Paycheck Safety Program or PPP as PPP loans continued to pay down. Non-interest revenue was down in comparison with final 12 months, primarily resulting from decrease financial institution life insurance coverage revenue and decrease mortgage banking revenue as a better rate of interest setting has impacted mortgage manufacturing.
The financial institution noticed barely increased non-interest bills and like most corporations, the financial institution is seeing upward stress on compensation and profit prices as a result of tight labor market. Compensation and profit bills have been additionally impacted by increased efficiency incentives from robust mortgage progress. General, the financial institution continues to handle bills properly, because it invests in its digital transformation.
On the utility facet, the 5% increased web revenue was primarily pushed by increased annual income adjustment or ARA revenues and better main venture, interim restoration revenues from grid modernization. These things have been partially offset by increased O&M bills, which have been primarily pushed by extra producing facility, overhauls and upkeep carried out in addition to increased, unhealthy debt expense.
For those who recall from final quarter, we message the continuation of upper producing facility upkeep all through this 12 months, which is pushed by our efforts to take care of reliability as we strategy the AES coal plant retirement and by elevated upkeep wants as recycle our older producing fleet extra typically to accommodate intermittent renewable power. To make sure ample reserve margins we have wanted to speed up and full our producing unit overhauls upkeep work in shorter durations of time driving up prices. As well as, inflationary price pressures have additionally impacted O&M.
unhealthy debt expense has additionally been increased than anticipated given excessive gas oil costs resulting in increased buyer payments. Final 12 months’s deferral of COVID-related unhealthy debt expense magnifies the year-over-year variance.
Turning to Slide 8, utility CapEx by way of the second quarter was roughly $125 million. This 12 months’s CapEx has been lowered than anticipated resulting from headwinds from persevering with provide chain disruptions, allowing delays, and useful resource availability constraints. We now anticipate that CapEx might be on the decrease finish of our $350 million to $400 million vary for the 12 months.
Turning to drivers for the remainder of the 12 months for the utility. Talked about earlier, we count on continued O&M pressures from increased producing station overhaul and upkeep bills to take care of reliability as we transition off coal and cycle our mills extra typically. As well as, we’re experiencing inflationary pressures on prices that exceeded the two.8% inflationary allowance supplied below PBR for 2022. Inflationary adjustment for 2023 might be decided by the forecasted 2023 GDP PI in October of this 12 months. We additionally count on unhealthy debt expense pressures ensuing from increased gas oil costs and better buyer accounts receivable to persist by way of the 12 months.
Though we beforehand anticipated O&M for the 12 months to be inside the ARA allowance, we now count on it to be modestly above that degree. We’re additionally now forecasting a web penalty this 12 months from tenant mechanisms do largely gas price threat sharing mechanism for which we count on to incur the utmost penalty given excessive gas prices. We beforehand anticipated that higher warmth fee efficiency would considerably offset that, however warmth fee efficiency expectations have moderated since final quarter. We additionally count on that rewards from our interconnection PIM might be barely decrease than beforehand forecasted.
Turning to the financial institution, ASP’s web curiosity revenue progress within the quarter, proceed to replicate progress in incomes property and better yields, significantly within the industrial and industrial actual property mortgage portfolios. We have additionally been capable of keep a low price of funds at 5 foundation factors flat versus Q1. A low price of funds has been a sturdy benefit for ASPs, even in rising fee environments. Web curiosity margin expanded to 2.85% versus 2.79% final quarter as the advantages of a better fee setting and better yields have been solely partially offset by decrease PPP charges. We have now acknowledged practically all remaining PPP charges with about $300,000 left.
Turning to drivers of financial institution efficiency for the remainder of the 12 months on Slide 11. The market now expects the fed funds fee to be round 3.5% to 4% by 12 months finish. We count on to proceed seeing web curiosity margin advantages from the upper fee setting; though on a comparative foundation, quarter-over-quarter, we are going to see some offset from decrease PPP charges. We now count on web curiosity margin for the 12 months to be close to the excessive finish of our 2.7% to 2.85% steerage vary. We count on to proceed seeing decrease mortgage banking revenue this 12 months, given decrease mortgage manufacturing resulting from increased rates of interest. We anticipate some continued stress on non-interest expense as we stability price administration with inflationary and labor market circumstances, in addition to prices associated to our digital transformation.
We proceed to see a wholesome pipeline throughout the mortgage portfolio and count on to proceed to redeploy runoff from the funding portfolio to fund mortgage progress.
Now turning to our steerage updates; on the utility slide as point out, we predict CapEx on the decrease finish of our $350 million to $400 million steerage vary. We’re additionally anticipating that PIMs might be a average drag this 12 months, based mostly on the elements famous earlier. We additionally count on utility O&M to be modestly above ARA allowed ranges with continued stress this 12 months from increased producing station overhaul and upkeep bills, increased unhealthy debt expense, and inflationary pressures. General, we count on utility EPS to be on the decrease finish of our $1.68 to $1.78 steerage vary. On a long run foundation, we nonetheless count on 2022 to 2024 earnings progress of roughly 5% with upside from PIMs.
Turning to the financial institution; as talked about, we predict NIM on the increased finish of steerage vary. Given the inflationary setting and pressures on compensation and profit bills, we now count on non-interest expense to be barely above the prior 12 months. We’re reaffirming financial institution EPS steerage within the $0.59 cents to $0.68 vary, potential to be within the higher half of that cause,
We’re nonetheless anticipating a holding firm lack of $0.28 cents to $0.30 for the 12 months, excluding the $0.06 achieve on sale at Pacific present within the first quarter. General, presently we’re reaffirming our consolidated steerage vary for the 12 months of $2 to $2.20.
Now I am going to flip the decision again to Scott.
Mahalo, everybody for becoming a member of us, we stay up for your questions.
[Operator instructions] The primary query comes from Julien Dumoulin-Smith of Financial institution of America. Your line is open.
Glorious. Hey, good afternoon workforce. Thanks a lot for the chance right here. Recognize it. So thanks. Possibly simply to kick us off right here, you noticed a second in the past to cite you proper, you count on utility earnings to decrease finish of the vary with upside from PIMs. Are you able to focus on the PIMs upside potential right here, simply contemplating the commentary from earlier within the remarks with respect to the gas price and the way these probably affect your PIMs expectations together with the rewards from interconnect. I simply wish to perceive precisely what’s mirrored in steerage and the way that upside from PIMs may materialize at this level. For those who can communicate to it a little bit bit, some places and takes.
Yeah. I am going to begin off after which I am going to pitch it over to Shelee and workforce on the utility. However that assertion, as you recall, we’re referencing the ’22 by way of ’24 earnings develop and whereas we’re positively seeing some PIMs headwinds this 12 months, we’re nonetheless a probably strong RPSA PIM within the years, ’23 and ’24 after which so far as the sector price sharing PIM, sure, we’re particularly being challenged this 12 months due to the excessive gas oil costs, however like everyone, we predict that to average as we go ahead. However let me ask Shelee and workforce in the event that they wish to add onto that.
Sure, you bought that proper, Scott. Hello, Julian. That is Shelee Kimura from Hawaiian Electrical. So sorry, simply taking off my masks right here whereas nonetheless in COVID world. So the touch upon the upside for PIMs actually is speaking about the long term outlook, as Scott indicated for 2022, we’re actually not anticipating to have the ability to hit the PIM for RPSA. And that is the place we get the best potential, however going ahead and that is due to, the entire delays we have had due to provide chain and tariff impacts all of the issues that you just most likely learn about very properly.
We have should push again the in-service states for a lot of of our renewable tasks. In order that’s additionally pushing again our RPSA incomes potential and that is the place we see the upside going ahead.
Obtained it. And may you guys remind us simply how that resets right here with respect to the gas year-over-year past ’22 and the ’23, ’24 interval.
Yeah. Are you able to simply make clear your query whenever you mentioned gas?
Simply how ought to we take into consideration the elevated gas price cascading into ’23, ’24, once more, web of those different elements that you just simply described? If we are able to attempt to quantify a little bit bit extra, clearly it has been a headwind this 12 months, however how do you concentrate on it within the subsequent 12 months, even when it is moderating, if you’ll.
Yeah, properly, a number of elements; gas goes to be considerably unpredictable. We’re anticipating the affect for our prospects to be up proper now. However we do — we’re hopeful that it will come down in 2023, however after all, no one has that crystal ball. The opposite factor is that our gas ranges will get reset and that’s in January. After which I am going to ask workforce so as to add to that.
Hello Paul, that is Dane. Only a fast abstract of how the gas price threat sharing mechanism works. In every January, a base index worth is about for that gas price threat sharing mechanism, and relying on the place costs go throughout the 12 months up or down, it determines how a lot we’d have by way of a penalty or reward. So actually the costs are going to be set. In 2023, January 2023, would be the base index. Does that make — does that make sense, Paul?
Yeah, completely. Proper. What’s a decrement this 12 months may contribute to upside in subsequent durations, particularly contemplating the reset interval with the order right here for the PIMs interval ’23. In some respects, what I used to be attempting to get at earlier about, what the places and takes right here in future durations as properly, proper? The extent of moderation could possibly be a optimistic contributor subsequent 12 months.
Sorry. What I used to be going so as to add was that so basically as Dane was describing in January, is when will probably be reset, proper by way of the gas worth index after which as we’d count on to see if area costs are capable of decline as we get into 2023, then that truly is a profit for us. So it has gone — relying on the 12 months and relying on what the January area costs are, that is going to find out whether or not or not that is a optimistic upside for us or a detrimental.
Proper. And possibly to carry every part collectively tremendous rapidly right here, as you concentrate on that ’24 interval, you have acquired a 5% quantity on the market by way of progress. What’s the hypothetical upside from PIM’s contemplating this new order and simply the outlook immediately, if I may tie all of it collectively right here.
Yeah. Julien, that is Dane. Yeah. I am going to take that query. We do have some steerage on the RPS-A PIM within the supplies that gives the most important alternative there. So you’ll be able to see the ranges we’ve got for 2023, between $2 million and $6 million, after which in 2024 between $5.2 million and $Eight million. However along with that, we even have a abstract of our PIM and there are PIMs because the grid companies PIM the interconnection PIM, which, all present some upside there. And, the opposite factor that we additionally did not discuss right here is, there are some new PIMs that probably could possibly be efficient in 2023, awaiting a PUC, a choice on the efficient date of these new cams PIM however, there are some upsides there for the collective shared financial savings mechanism for example.
Proper. Quite a few items transferring right here. Thanks guys very a lot in your persistence. Recognize you guys strolling by way of this. I do know there are numerous items.
Thanks. Our subsequent query comes from Paul Patterson, Glenrock Associates. Please proceed.
Okay. So I apologize if I missed this, however the Inflation Discount Act. Might you guys, and I apologize, I did not hear a lot about it. I am afraid. What do you guys give it some thought typically talking?
Yeah. So, typically talking, and I am certain you are listening to from different utilities alongside the identical traces, we see numerous potential upside, particularly with respect to the tax credit score provisions, very, very supportive of our renewable power methods and tasks and finally that can profit our prospects as properly. So good laws. The extra tax provisions truly don’t appear to be they’d affect us simply because we’d fall beneath the brink however general it appears like a optimistic piece of laws. However let me ask if Paul or anyone else needs to offer some extra coloration.
So yeah, as Scott talked about, we’re more than happy by the progress that’s being made to sort out local weather change with the Senate approval yesterday. Clearly we’re nonetheless evaluating the invoice. We’re not on the end line but, however as Scott talked about, we’re more than happy with the Clear Vitality incentives that can additional incentivize Hawaii’s transition to 100% renewable, which is able to once more, as Scott talked about, decrease price for our prospects, but in addition speed up the utilities progress in attaining its aggressive local weather motion plan.
The one provision as Scott talked about that numerous utilities, we’re centered on exterior of the incentives, after all, was this minimal tax, and since we’re properly beneath the, the brink, we can’t be affected by it, however there are numerous provisions on the tax credit score facet that, we’re hoping that can profit the broader neighborhood, but in addition the low to average revenue section of our inhabitants. So clearly there’s so much there for us to undergo, however we really feel superb about this new invoice.
That is Shelee. How are you? I used to be simply going so as to add that as you heard, we’ve got lots of of megawatts that we’re searching for and RFPs which are arising of renewable power and so this may actually assist decrease price for our prospects as we undergo this procurement course of. And that is what we’re eager for. It actually will depend on the timing of when that is available in and the timing of our RFPs and the bids that come by way of.
Okay, nice. There, was one of many PIMs that you just talked about one of many newer PIMs is that this era reliability one, is that just for firm owned era, I’d assume, or does that additionally contain PPAs?
That’s just for era, proper? I am sorry, go forward, Shele. Go forward Shelee, you’ll be able to make clear.
I am going to let, Colton reply that.
Good morning, Paul, that is Colton Ching from Hawaiian Electrical. Yeah. So the era PIM reliability PIM encompasses each utility owned in addition to third get together IPP era efficiency in complete. However as Scott talked about, it’s for era precipitated occasions separate from the prevailing or the, the earlier transmission and distribution PIM that we presently have.
Okay. So the reliability of third events, you may be incentivized to, I suppose, guarantee that they’re performing. Is that the thought? I suppose slight concern could be, is that begin utterly in your management I’d assume. Or how ought to we take into consideration that?
Yeah. So, Paul, it’s a completely different method, proper? By which we’ll must handle the efficiency and reliability of impartial energy producers. However, due to Hawaii scenario the place our IPPs are long run companions with us, we’ve got for a few years now have had contracts with fairly important efficiency necessities in how we handle the reliability and operation of these amenities in addition to having the fitting sorts of partnerships with our IPP, in order that they too perceive the position that they’ve in preserving Hawaii’s grids, dependable.
The reliability additionally comes from how our system operators dispatches the complete fleet of era, the mix of impartial energy producers, in addition to our models as properly.
Okay. Nicely thanks a lot for the data and have an awesome one.
[Operator instructions] As there are not any additional questions within the queue, I want to go it again to the administration workforce for any closing remarks.
Thanks everybody for becoming a member of us immediately. And please do tell us if any additional questions come up afterward. Have an awesome week. Thanks.
This concludes the queue 2022 Hawaiian Electrical Industries, Inc. incomes convention name. Thanks in your participation. You might now disconnect your line.