Ensign Energy Services Inc. Reports 2013 Second Quarter Results

CALGARY, Aug. 6, 2013 /CNW/ –

Overview

Ensign Energy Services Inc. (“Ensign” or the “Company”) recorded revenue
of $437.9 million for the second quarter of 2013, six percent lower
than revenue of $463.9 million recorded in the second quarter of 2012. 
Revenue for the six months ended June 30, 2013 was $1,019.0 million, 11
percent lower than revenue of $1,141.5 million for the six months ended
June 30, 2012.  Net income for the second quarter of 2013 decreased 82
percent to $3.3 million ($0.02 per common share) compared to net income
of $18.7 million ($0.12 per common share) for the second quarter of
2012.  Net income for the six months ended June 30, 2013 decreased 45
percent to $68.3 million ($0.45 per common share) compared to net
income of $124.2 million ($0.81 per common share) for the first six
months of 2012.  Second quarter earnings were negatively impacted by
$21.8 million of foreign exchange and other charges in the quarter
primarily due to the effect of a weakening AUS dollar on US dollar debt
in the Company’s Australian operations.  Excluding the impact of
share-based compensation expense (recovery) and foreign exchange and
other, adjusted net income for the second quarter of 2013 totaled $14.5
million ($0.09 per common share), 27 percent lower than adjusted net
income of $19.8 million ($0.13 per common share) in the second quarter
of 2012.  For the six months ended June 30, 2013 adjusted net income
was $81.1 million ($0.53 per common share), 36 percent lower than
adjusted net income of $125.9 million ($0.82 per common share) for the
six months ended June 30, 2012.  Adjusted EBITDA, defined as “income
before interest, income taxes, depreciation, share-based compensation
expense (recovery) and foreign exchange and other”, totaled $85.7
million ($0.56 per common share) in the second quarter of 2013, four
percent lower than adjusted EBITDA of $89.6 million ($0.59 per common
share) in the second quarter of 2012.  For the first six months of 2013
adjusted EBITDA was $250.1 million ($1.64 per common share), 18 percent
lower than adjusted EBITDA of $304.5 million ($1.99 per common share)
for the first six months of 2012.  Funds from operations increased two
percent to $88.7 million ($0.58 per common share) in the second quarter
of 2013 from $87.3 million ($0.57 per common share) in the second
quarter of the prior year.  For the six months ended June 30, 2013,
funds from operations decreased 15 percent to $228.5 million ($1.50 per
common share) compared to $268.6 million ($1.76 per common share) for
the six months ended June 30, 2012.

Reduced operating activity in North America weakened operating and
financial results for the three and six months ended June 30, 2013. 
Consistent with prior years, the second quarter reflects the seasonal
impact of spring break-up weather conditions which restricted activity
levels for the Company’s Canadian operations.  Additionally, second
quarter operating and financial results were hampered by weakened
demand for oilfield services and slightly lower revenue rates in the
United States.  As previously mentioned, second quarter financial
results include the negative impact from a strengthening United States
dollar on USD denominated debt in the Company’s Australian operations. 
Increased activity in Latin America and the eastern hemisphere helped
to partially offset these reductions.  A slight increase of
approximately one percent in the average United States dollar foreign
exchange rate against the Canadian dollar during the six months ended
June 30, 2013 compared to the six months ended June 30, 2012,
positively impacted United States and international financial results
on translation to Canadian dollars.

Gross margin decreased to $109.3 million (25.0 percent of revenue) for
the second quarter of 2013 compared with gross margin of $110.2 million
(23.8 percent of revenue) for the second quarter of 2012.  For the six
months ended June 30, 2013 gross margin decreased to $293.2 million
(28.8 percent of revenue) compared to $344.6 million (30.2 percent of
revenue) for the six months ended June 30, 2012.  Margins were
negatively impacted by reduced operating activity in North America for
the three and six months ended June 30, 2013; however, positive
operating and financial results from the Company’s international
operations partially offset weaker North American margins in the
current quarter compared to the second quarter of the prior year.

During the second quarter the Company expanded its existing oilfield
rental business when it acquired rental equipment assets through the
acquisition of substantially all of the assets of EGOC Enviro Group of
Companies (“EGOC”).  Additionally, the Company expanded its directional
drilling business in Canada during the second quarter through the
acquisition of substantially all of the assets of Departure Energy
Services Inc. (“Departure”).  Both of these acquisitions closed during
the second quarter of 2013 and were completed utilizing the Company’s
existing cash balances.  The use of funds for these acquisitions,
combined with an active new build program that has delivered three new
ADR^® drilling rigs and three new well servicing rigs in the first six months
of the year, resulted in a working capital deficit at June 30, 2013, of
$38.4 million compared to positive working capital of $13.9 million at
December 31, 2012.  The Company’s ongoing new build program is expected
to deliver an additional six new ADR^® drilling rigs and four new well servicing rigs throughout the remainder
of 2013 and into 2014. In addition to the above new builds, the Company
is refurbishing and upgrading three drilling rigs into ADR^®-style drilling rigs.

FINANCIAL AND OPERATING HIGHLIGHTS

($ thousands, except per share data and operating information)

Second Quarter Highlights

• Revenue for the three months ended June 30, 2013 was $437.9 million,
  down six percent from revenue for the three months ended June 30,
  2012.  The reduction in revenue in the current quarter over the prior
  year second quarter is mainly due to reduced operating activity in
  North America, partially offset by stronger revenues from the Company’s
  international segment.
• One new ADR^® drilling rig was added to the Company’s United States drilling fleet in
  the second quarter of 2013. The new build program also added one new
  well servicing rig in Canada in the second quarter.
• Second quarter revenue by segment:
• Canada – 20 percent;
• United States – 50 percent; and
• International – 30 percent.
• Adjusted EBITDA for the second quarter of 2013 was $85.7 million, a four
  percent decrease from adjusted EBITDA of $89.6 million for the second
  quarter of 2012.  Funds from operations for the second quarter of 2013
  increased two percent to $88.7 million from $87.3 million in the second
  quarter of the prior year.
• Canadian drilling recorded 1,598 operating days in the second quarter of
  2013, a 30 percent decrease from 2,281 operating days in the second
  quarter of 2012.  Canadian well servicing hours decreased by 17 percent
  in the second quarter of 2013 compared to the second quarter of 2012.
• United States drilling recorded 5,712 operating days in the second
  quarter of 2013, an eight percent decrease from 6,188 operating days in
  the second quarter of 2012.  United States well servicing hours
  decreased by 18 percent in the second quarter of 2013 compared to the
  second quarter of 2012.
• International drilling recorded 2,805 operating days in the second
  quarter of 2013, a one percent decrease from 2,845 operating days
  recorded in the second quarter of 2012.
• The Company completed two acquisitions during the second quarter. 
  Rental equipment assets were added through the acquisition of
  substantially all of the assets of EGOC Enviro Group of Companies
  (“EGOC”) and directional drilling equipment was added through the
  acquisition of substantially all of the assets of Departure Energy
  Services Inc. (“Departure”).  Both acquisitions were paid for in cash.

Revenue and Oilfield Services Expense

Revenue for the three months ended June 30, 2013 decreased six percent
to $437.9 million compared to $463.9 million for the comparable period
in 2012.  Revenue for the six months ended June 30, 2013 decreased 11
percent to $1,019.0 million from revenue of $1,141.5 million recorded
for the six months ended June 30, 2012.  As a percentage of revenue,
gross margin for the second quarter of 2013 increased to 25.0 percent
(2012 – 23.8 percent) but decreased to 28.8 percent for the six months
ended June 30, 2013 (2012 – 30.2 percent).

Revenue for the three and six months ended June 30, 2013 decreased
compared to the corresponding periods of the prior year due to reduced
demand for North American oilfield services.  Ongoing concerns
regarding the economics of oil and natural gas projects within North
America, along with continuing general uncertainty in global economic
conditions, had caused many operators to delay or reduce their capital
programs, reducing demand for oilfield services.  The Company’s
established global diversification has helped to somewhat mitigate
these negative impacts to financial results as the Company’s
international operations continue to grow and improve.

Canadian Oilfield Services

Revenue decreased 21 percent to $85.5 million for the three months ended
June 30, 2013, from $108.8 million for the three months ended June 30,
2012. For the six months ended June 30, 2013, revenue decreased 21
percent to $341.4 million compared to $433.7 million for the same
period in 2012. Canadian revenues accounted for 20 percent of the
Company’s total revenue in the second quarter of 2013, compared with 23
percent in the second quarter of 2012, and during the six months ended
June 30, 2013, Canadian revenues were 34 percent of total revenue (2012
– 38 percent).

The Company’s Canadian operations recorded 1,598 drilling days in the
second quarter of 2013, compared to 2,281 drilling days for the second
quarter of 2012, a decrease of 30 percent.  For the six months ended
June 30, 2013, the Company recorded 6,927 drilling days compared to
9,712 drilling days for the six months ended June 30, 2012, a decrease
of 29 percent.  Canadian well servicing hours decreased by 17 percent
to 25,343 operating hours in the second quarter of 2013 compared with
30,691 operating hours in the corresponding period of 2012.  For the
six months ended June 30, 2013, well servicing hours decreased by 15
percent to 60,480 operating hours compared with 70,826 operating hours
for the six months ended June 30, 2012.

Reduced revenue and operating activity in Canada in the three and six
months ended June 30, 2013, compared to the prior year was primarily a
result of a particularly wet spring break-up in 2013, restricting
operating activity in Canada and overall reduced demand for Canadian
oilfield services in 2013 compared to 2012.

During the six months ended June 30, 2013, the Company added one newly
constructed ADR^® to its Canadian drilling rig fleet and three new well servicing rigs. 
Five inactive drilling rigs and 10 inactive well servicing rigs were
decommissioned, all in the first quarter.  The Company also disposed of
its non-rig manufacturing facility located in Calgary, Alberta.

United States Oilfield Services

The Company’s United States operations recorded revenue of $219.9
million in the second quarter of 2013, a 10 percent decrease from the
$244.4 million recorded in the corresponding period of the prior year.
During the six months ended June 30, 2013, revenue of $420.3 million
was recorded, a decrease of 15 percent from the $493.8 million recorded
for the six months ended June 30, 2012. The Company’s United States
operations accounted for 50 percent of the Company’s revenue in the
second quarter of 2013 (2012 – 53 percent) and 41 percent of total
revenue in the six months ended June 30, 2013 (2012 – 43 percent). 
Drilling rig operating days decreased by eight percent to 5,712
drilling days in the second quarter of 2013 from 6,188 drilling days in
the second quarter of 2012.  For the six months ended June 30, 2013,
drilling days decreased by 10 percent to 11,216 drilling days from
12,501 drilling days in the six months ended June 30, 2012.  Well
servicing activity decreased by 18 percent in the second quarter of
2013 to 24,897 operating hours from 30,491 operating hours in the
second quarter of 2012.  For the six months ended June 30, 2013 well
servicing activity decreased 21 percent to 47,674 operating hours from
60,640 operating hours in the first six months of 2012.

Similar to Canada, United States operating and financial results reflect
reduced demand for United States oilfield services in the three and six
months ended June 30, 2013, when compared to the same periods of 2012. 
In addition the decreased demand put downward pressure on revenue rates
and margins in the current quarter compared to the second quarter of
the prior year.

During the six months ended June 30, 2013 the Company added two new ADR^® drilling rigs to its United States fleet, decommissioned six inactive
drilling rigs and disposed of two well servicing rigs.

A strengthening United States dollar against the Canadian dollar in the
first six months of 2013 had a positive impact on the translation of
the Company’s United States financial results to Canadian dollars.  In
the first six months of 2013 the average United States dollar exchange
rate increased by approximately one percent to 1.02 when compared to
the same period of the prior year.

International Oilfield Services

The Company’s international operations recorded revenue of $132.6
million in the second quarter of 2013, a 20 percent increase over the
$110.7 million recorded in the corresponding period of the prior year.
Similarly, international revenues for the six months ended June 30,
2013, increased by 20 percent to $257.3 million from $214.1 million
recorded for the six months ended June 30, 2012. International
operations contributed 30 percent of the Company’s revenue in the
second quarter of 2013 (2012 – 24 percent) and 25 percent of the
Company’s revenue in the first half of 2013 (2012 – 19 percent).
International operating days for the three months ended June 30, 2013
totaled 2,805 drilling days compared with 2,845 drilling days in 2012,
a decrease of one percent.  For the six months ended June 30, 2013,
international operating days totaled 5,517 drilling days compared with
5,642 drilling days for the six months ended June 30, 2012, a decrease
of two percent.

Growth of the Company’s international revenue in the first half of the
year was the result of two new ADR’s being added to the Company’s
international fleet and the relocation of an existing drilling rig from
the United States to the international market late in 2012.  These
additions more than offset the expected reduction in 2013 drilling days
due to the impact from the completion of the Company’s drilling
contracts in Mexico in 2012.  Similar to the Company’s United States
operations, international operations benefited from the strengthening
of the United States dollar relative to the Canadian dollar when
translating financial results into Canadian dollars for reporting
purposes in the first six months of 2013 compared to the first six
months of the prior year.

During the six months ended June 30, 2013 the Company decommissioned one
inactive drilling rig from its international fleet.

Depreciation

The Company uses the unit of production method of calculating
depreciation for the majority of its property and equipment. 
Depreciation expense totalled $55.4 million for the second quarter of
2013 compared with $50.4 million for the second quarter of 2012, an
increase of 10 percent.  Depreciation expense for the first six months
of 2013 was $112.6 million, an increase of four percent over the $108.6
million recorded for the first six months of 2012.  Increased
depreciation reflects higher-valued equipment being added to the
Company’s global fleet throughout the latter half of 2012 and into the
first six months of 2013.

General and Administrative Expense

General and administrative expense increased 14 percent to $23.6 million
(5.4 percent of revenue) for the second quarter of 2013 compared with
$20.7 million (4.5 percent of revenue) for the second quarter of 2012.
For the six months ended June 30, 2013, general and administrative
expense totaled $43.1 million (4.2 percent of revenue) compared with
$40.1 million (3.5 percent of revenue) recorded for the six months
ended June 30, 2012, an increase of eight percent. The overall increase
in general and administrative expense in the current periods reflects
the negative translational impact of a stronger United States dollar on
United States and international administrative expenses and increased
costs to support growing international operations.

Share-Based Compensation (Recovery) Expense

Share-based compensation (recovery) expense arises from the
Black-Scholes valuation accounting associated with the Company’s
share-based compensation plans, whereby the liability associated with
share-based compensation is adjusted for the effect of granting and
vesting of employee stock options and changes in the underlying price
of the Company’s common shares.

For the three months ended June 30, 2013, share-based compensation
(recovery) expense was a recovery of $4.6 million compared with a
recovery of $3.3 million recorded in the second quarter of 2012. For
the six months ended June 30, 2013, share-based compensation was an
expense of $1.8 million compared with a recovery of $6.2 million for
the six months ended June 30, 2012.   The change in share-based
compensation expense in the three and six months ended June 30, 2013,
compared to the same periods of 2012 was a result of the change in the
fair value of share-based compensation liability primarily resulting
from movements in the price of the Company’s common shares.  The
closing price of the Company’s common shares was $16.28 at June 30,
2013 ($14.00 at June 30, 2012), compared with $17.32 at March 31, 2013
($14.91 at March 31, 2012) and $15.37 at December 31, 2012 ($16.25 at
December 31, 2011).

Interest Expense

Interest is incurred on the Company’s $10.0 million Canadian-based
revolving credit facility, the $400.0 million global revolving credit
facility and the USD $300.0 million senior unsecured notes issued in
February 2012.  The amortization of deferred financing costs associated
with the issuance of the Company’s long-term debt was included in
interest expense in both quarters.

The decrease in interest expense in the three and six months ended June
30, 2013, compared to the same periods of the prior year is due to
interest incurred in the prior year on the USD $100.0 million remaining
balance of the short-term acquisition loan which was repaid in full
during the second quarter of 2012.

Foreign Exchange and Other

Included in this amount is the impact of the conversion of the
Australian operations from Australian dollars to United States
dollars.  The increase in foreign exchange loss in the three and six
months ended June 30, 2013, compared to the same periods of 2012 is
mainly due to the Australian currency weakening by approximately 12
percent against the United States dollar in the first six months of
2013 causing a foreign currency loss on translation of the Company’s
USD denominated debt into Australian dollars.

Income Taxes

The effective income tax rate for the three months ended June 30, 2013
was 63.9 percent compared with 41.4 percent for the three months ended
June 30, 2012. The effective income tax rate for the six months ended
June 30, 2013 was 37.8 percent compared with 32.4 percent for the six
months ended June 30, 2012.  The increase in the effective income tax
rate in the current quarter and first half of 2013 is due to a higher
proportion of taxable income earned in high tax rate jurisdictions
outside of Canada, further increased by the impact of foreign exchange
translation losses for which the effective tax rate varies from
statutory rates.

Financial Position

The following chart outlines significant changes in the consolidated
statement of financial position from December 31, 2012 to June 30,
2013:

Funds from Operations and Working Capital

During the three months ended June 30, 2013, the Company generated funds
from operations of $88.7 million ($0.58 per common share) compared with
funds from operations of $87.3 million ($0.57 per common share) for the
three months ended June 30, 2012, an increase of two percent. For the
six months ended June 30, 2013, the Company generated funds from
operations of $228.5 million ($1.50 per common share), a decrease of 15
percent from funds from operations of $268.6 million ($1.76 per common
share) generated in the first half of 2012. This decrease reflects
lower activity levels in the Company’s North American operations in the
current year versus the comparable period in 2012.

At June 30, 2013, the Company had a working capital deficit of $38.4
million, compared to positive working capital of $13.9 million at
December 31, 2012.  The Company’s working capital resources were used
in the current quarter to fund the acquisitions of the assets of EGOC
and Departure, as well as the ongoing new build program.  The Company
expects funds generated by operations, combined with current and future
credit facilities, to fully support current operating and capital
requirements.  Existing revolving credit facilities provide for total
borrowing of $410.0 million, of which $70.0 million was available at
June 30, 2013.

Investing Activities

Purchases of property and equipment during the second quarter of 2013
totaled $83.6 million (2012 – $76.1 million).  Purchases of property
and equipment during the first half of 2013 totaled $146.4 million
(2012 – $156.6 million).  The purchase of property and equipment for
the three and six months ended June 30, 2013 relate predominantly to
expenditures made pursuant to the Company’s ongoing new build program.

During the second quarter of 2013 the Company acquired the rental assets
of EGOC and the directional drilling assets of Departure. These
acquisitions increase the Company’s presence in the rental and
directional drilling markets in Western Canada.

Financing Activities

The Company’s available operating lines of credit consist of a $400.0
million global revolving credit facility (the “Global Facility”) and a
$10.0 million Canadian based revolving credit facility (the “Canadian
Facility”). The Global Facility is available to the Company and certain
of its wholly-owned subsidiaries, and may be drawn in Canadian, United
States or Australian dollars, up to the equivalent value of $400.0
million Canadian dollars. The amount available under the Canadian
Facility is $10.0 million or the equivalent United States dollars.

Net draws of the operating lines of credit were mainly used to fund the
ongoing new build program, which added three new ADR^® drilling rigs to the Company’s fleet in the first half of 2013; one in
Canada and two in the United States as well as three new well servicing
rigs, all in Canada.  As of June 30, 2013, the operating lines of
credit are primarily being used to fund the completion of the most
recent new build program and to support international operations.

In February 2012, the Company completed the private placement of USD
$300.0 million of senior unsecured notes, with the proceeds from the
issuance being used to repay a portion of the USD $400.0 million
unsecured term loan with the remaining balance repaid in full in the
second quarter of 2012.

On June 21, 2013 the Company received approval from the Toronto Stock
Exchange to acquire for cancellation up to three percent of the
Company’s issued and outstanding common shares under a Normal Course
Issuer Bid (the “Bid”).  The Company may purchase up to 4,599,367
common shares for cancellation.  The Bid commenced on June 25, 2013,
and will terminate on June 24, 2014, or such earlier time as the Bid is
completed or terminated at the option of the Company.  As at June 30,
2013, no common shares have been purchased and cancelled pursuant to
the Bid.

The Company previously had a Bid that commenced on June 18, 2012, and
terminated on June 17, 2013, under which no common shares were
purchased and cancelled.

The Board of Directors of the Company has declared a third quarter
dividend of $0.11 per common share to be payable October 4, 2013, to
all Common Shareholders of record as of September 20, 2013.  The
dividend is pursuant to the quarterly dividend policy adopted by the
Company.  Pursuant to subsection 89(1) of the Canadian Income Tax Act
(“ITA”), the dividend being paid is designated as an eligible dividend,
as defined in subsection 89(1) of the ITA.

New Builds

During the six months ended June 30, 2013, the Company commissioned two
new ADR^® drilling rigs in the United States; and one new ADR^® drilling rig and three new well servicing rigs in Canada.

The remaining new build estimated delivery schedule, by geographic area,
is as follows:

In addition to the above new builds, the Company is refurbishing and
upgrading three drilling rigs into ADR^®-style drilling rigs.  One drilling rig is being refurbished for the
Canadian market, with an estimated delivery date in the first quarter
of 2014.  The two remaining drilling rigs are being refurbished for the
international market, one of the drilling rigs is scheduled for
delivery in the third quarter of 2013 and the other drilling rig is
scheduled for delivery in the fourth quarter of 2013.  All of the major
refurbishments are supported by long-term contracts.

Outlook

The North American economy continues to show signs of improvement which
should improve the prospects for crude oil and natural gas, and lead to
higher development activity levels in the coming years.  While North
American and international crude oil pricing differentials have
recently narrowed, North America is still in need of additional
transportation infrastructure to efficiently move crude oil and natural
gas to established markets.  Until North American infrastructure needs
are effectively addressed and the global economy strengthens, commodity
prices will remain volatile and result in uncertain levels of demand
for oilfield services, particularly in Canada and the United States.

Seasonal factors had an unusually negative impact on the Company’s
Canadian operations in the second quarter of 2013, representing the
lowest activity level in several years. Consistent with the upward
revision in the recent well forecast by the Canadian Association of
Oilwell Drilling Contractors, prospects for increased activity in the
Company’s Canadian operations in the second half of 2013 are
encouraging; activity levels are expected to rebound to levels similar
with those experienced in the second half of 2012.  Additionally, the
rental equipment and directional drilling assets acquired during the
second quarter will begin contributing in the second half of 2013.  One
new ADR^® drilling rig and three new well servicing rigs were added during the
first half of the year; and three additional ADR^® drilling rigs and four well servicing rigs are currently being
refurbished or under construction by the Company for the Canadian
market.

The Company’s United States operations continued to be negatively
impacted by industry adjustments to new resource plays and related
technology, regional shifts between natural gas and crude oil drilling,
and transportation constraints.  Current expectations call for improved
demand for oilfield services in the United States in the second half of
2013, a reversal from the year-over-year decrease in first half
activity levels.  Plans for new equipment in the Company’s United
States operations include two new ADR^® drilling rigs under term contracts for delivery later this year. Two
new ADR^® drilling rigs were added during the first half of 2013.

The Company’s international operations experienced continued growth
during the second quarter. Latin American operations continue to face
the usual political and currency challenges; and eastern hemisphere
operations continue to develop. Prospects remain positive for future
growth in the Company’s international operations, despite some regional
uncertainties. The ongoing new build program includes four ADR^® drilling rigs currently being refurbished or under construction for the
international market.

Risks and Uncertainties

This document contains forward-looking statements based upon current
expectations that involve a number of business risks and
uncertainties.  The factors that could cause results to differ
materially include, but are not limited to, political and economic
conditions, crude oil and natural gas prices, foreign currency
fluctuations, weather conditions and the ability of oil and natural gas
companies to raise capital or other unforeseen conditions which could
impact on the use of the services supplied by the Company.

Conference Call

A conference call will be held to discuss the Company’s second quarter
2013 results at 2:00 p.m. MST (4:00 p.m. EST) on Tuesday, August 6,
2013.  The conference call number is (647) 427-7450 (in Toronto) or
1-888-231-8191 (outside Toronto).  A taped recording will be available
until August 13, 2013 by dialing 1-416-849-0833 (in Toronto) or
1-855-859-2056 (outside Toronto) and entering the reservation number
20553551.  A live broadcast may be accessed through the Company’s web
site at www.ensignenergy.com.

Ensign Energy Services Inc. is an international oilfield services
contractor and is listed on the Toronto Stock Exchange under the
trading symbol ESI.

Ensign Energy Services Inc.
Consolidated Statements of Financial Position
As at

Ensign Energy Services Inc.
Consolidated Statements of Income
For the three and six months ended June 30

.

Ensign Energy Services Inc.
Consolidated Statements of Cash Flows
For the three and six months ended June 30

SOURCE: Ensign Energy Services Inc.

Glenn Dagenais, Executive Vice President Finance and Chief Financial Officer, (403) 262-1361.