Reddy Ice Holdings, Inc. (
Q3 2010 Earnings Conference Call
November 4, 2010 10:00 AM ET
Hala Elsherbini – COO, Halliburton Investor Relations
Gil Cassagne – Chairman, President and CEO
Steve Janusek – EVP, Chief Accounting Officer, CFO and Secretary
Previous Statements by FRZ
» Reddy Ice Holdings, Inc. Q2 2010 Earnings Call Transcript
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» Reddy Ice Holdings Inc. Q2 2008 Earnings Call Transcript
Hello, everyone and welcome to the Reddy Ice Holdings Incorporated Fiscal Year 2010 Third Quarter Earnings Results Conference Call. Your host for today’s call is Gil Cassagne, Reddy Ice’s Chief Executive Officer. (Operator Instructions)
I would like to turn the call over to Hala Elsherbini, Halliburton Investor Relations, who will begin the call. Please go ahead.
Thank you. Good morning. Thanks for joining us today for the Reddy Ice Holdings conference call to discuss the company’s third quarter 2010 financial results. Before I turn the call over to management, I would like to review a few items.
The company issued its third quarter earnings release this morning. And if you did not receive a copy, the release can be found on the Reddy Ice website at www.reddyice.com. Additionally, if you would like to be placed on the company’s e-mail or fax distribution for future announcements, please e-mail your request to email@example.com or call the offices at Halliburton Investor Relations at 972-458-8000.
You may also register to receive announcements through the investor relations portion of the company’s website at www.reddyice.com. A telephone replay will be available through November 11that approximately 1 PM Eastern Time and can be accessed by dialing 1-877-344-7529, and entering passcode number 445562, and the webcast will be available for approximately 90 days.
Before we begin, I would like to remind you that during the course of this conference call, management may make statements concerning the company’s future prospects, business strategies, and industry trends that are based on management’s beliefs, as well as, assumptions made by and information currently available to management.
Such statements are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995 and are subject to certain risks, uncertainties, and assumptions, including known events and developments, which could cause actual results to differ materially from those that management might be describing during today’s discussion. Please refer to the company’s filings with the Securities and Exchange Commission for more information on those risk factors.
Please note that time-sensitive information reported on this call is current as of today, November 4th, 2010, that may no longer be accurate at the time of any subsequent replay. Additionally, the company undertakes no obligation to publicly update or revise any forward-looking statements.
I would now like to turn the call over to Mr. Gil Cassagne, Chief Executive Officer of Reddy Ice.
Thanks, Hala. Good morning and thank you to everyone for joining us today. The purpose of our call is to discuss our 2010 third quarter results, as well as, other items related to our business. Before I report on our results, I’d like to briefly comment on the DoJ investigation and related matters.
On October 29
, 2010, we were notified by the Anti-Trust position of the Department of Justice that it will take no action against the company or any of its present or past employees in connection with its investigation of the package ice industry. On that same date, we were informed by the SEC that it has closed its informal inquiry regarding the company and again no action will be taken against the company. We’re obviously very pleased with these developments.
In regards to the other ongoing government investigations specifically the multi-state civil investigations and the DoJ Civil Fraud investigation, there haven’t been any significant developments at this time.
Moving to the civil litigation for a moment, several months ago, we filed motions to dismiss direct purchaser and indirect purchaser claims in the multi-district antitrust litigation. The motion to dismiss relating to the direct purchaser claims was denied by the court on July 1, 2010. That portion of the litigation is now moving into the discovery phase. The motion related to the indirect purchaser claims has been fully briefed by the parties and is awaiting consideration by the judge.
In March of this year, two punitive class action statements of claims were filed against us in two different courts in Canada. A status conference has been held in the matter pending in Ontario and a schedule was set for proceedings related to the plaintiff’s motion for certification of the class. We have not been served with the third statement of claim, which is pending in Alberta.
Moving to the shareowner class action, we filed a motion to dismiss those claims several months ago. A hearing was held on that motion on October 22nd, 2010 and we’re awaiting a ruling. Also, the shareholder derivative litigation in Texas State Court is now set for trial on August 2, 2011.
And finally, the McNulty case continues to proceed with discovery in the normal course. As we’ve said in the past, the company continues to vigorously defend all of these cases. The decision of the Anti-trust position is obviously recent and it’s our understanding that neither the state, attorney’s general nor the Department of Justice’s Civil Fraud Division has at this time made any determination regarding those investigations as a result of the decision by the Anti-trust Division.
Based on advice of our counsel, we will not conduct a question and answer session on this conference call. However, we look forward to and anticipate the opportunity to resume Q&A sessions on conference calls commencing with our fourth quarter earnings.