Net Interest Income up 13% with NIM Expansion Year-on-Year
Initiated New $350 Million Expense Savings Program
Better Positioned for CCAR 2019 Due to Balance Sheet Optimization
Full-Year 2018 ROE of 12.2%, up 1.6% Points from Full-Year 2017
BOSTON--(BUSINESS WIRE)--In announcing today's financial results, Ronald O'Hanley, President and Chief Executive Officer, said "Over the course of 2018, I have engaged with State Street’s stakeholders including our investors, clients, employees and regulators. I have also led a reexamination of our Investment Servicing and Investment Management strategies. State Street has strong client relationships, unique assets and is well-positioned in attractive, high-growth markets. While we have made progress on our technology transformation, much remains to be done and we are not satisfied with our recent performance. Structural costs are still too high and our automation efforts have not moved fast enough."
O'Hanley continued, "New business wins remained strong, with a record $1.9 trillion of new asset servicing commitments in 2018, including $140 billion of new mandates in the fourth quarter. Net interest income increased significantly and foreign exchange trading performed well, while weaker equity markets and challenging industry conditions drove underperformance in servicing fees. Amidst challenging market and industry headwinds, we have launched a new expense program designed to reduce costs. As part of that program, we recorded a $223 million pre-tax repositioning charge, the benefits of which we expect to fully realize within 12-15 months. Our newly acquired Charles River Development business performed consistent with our expectations. Charles River Development is driving new activity with existing and new clients and we are making progress towards creating the industry's first fully integrated front-to-back offering."
(a)Results excluding notable items are a non-GAAP presentation. Please refer to the addendum for an explanation and reconciliation of non-GAAP measures.
O'Hanley concluded, "The changes we are making will position us well to realize our three-year strategic vision to be the leading asset servicer, asset manager, and data insight provider to the owners and managers of the world's capital, which I outlined last month. We have already initiated a series of actions and as a result we are highly focused on increasing capital return, revenue growth and margin expansion. I am confident that our strategy represents a significant opportunity to deliver growth, drive innovation and enhance shareholder value."
4Q18 Highlights
AUCA/AUM
New Business
Revenue
Expenses
(b) Annual contract value bookings represent signed annual
recurring revenue contract value.
(c) Underlying expenses exclude
notable items, CRD operating expenses and CRD-related intangible asset
amortization. Underlying expenses are non-GAAP measures. 1Q18 GAAP and
underlying expenses of $2,256 million included seasonal deferred
incentive compensation for retirement-eligible employees of $148
million. 1Q18 underlying expenses excluding these effects were $2,108
million. 2Q18 GAAP expenses of $2,159 million included $77 million of
notable items related to repositioning charges. Excluding these items,
2Q18 underlying expenses were $2,082 million. 3Q18 GAAP and underlying
expenses were $2,079 million. 4Q18 GAAP expenses of $2,474 million
included notable items of $313 million (consisting of $223M of
repositioning charges, $24 million of acquisition and restructuring
charges, $24 million of expenses related to a business exit, and $42
million of legal and related expenses) and CRD-related expense of $57
million (consisting of $39 million of operating expenses and $18 million
of intangible asset amortization). Excluding these items, 4Q18
underlying expenses were $2,104 million. 1H18 underlying expenses
further excluding for the seasonal effects noted above were therefore
$4,190 million, relative to 2H18 underlying expenses of $4,183 million.
Notable Items
(Dollars in millions, except EPS amounts) | Pre-tax | EPS Impact | ||||||||
Diluted EPS as reported | $ | 1.04 | ||||||||
Compensation and employee benefits | $ | 198 | ||||||||
Occupancy | 25 | |||||||||
Total repositioning charges | 223 | 0.43 | ||||||||
Acquisition and restructuring costs | 24 | 0.04 | ||||||||
Business exit: Channel Islands | 24 | 0.05 | ||||||||
Legal and related | 50 | 0.12 | ||||||||
Total notable items | $ | 321 | $ | 0.64 | ||||||
Diluted EPS, excluding notable items | $ | 1.68 | ||||||||
Capital
Financial Results
(Table presents summary results, dollars in millions, except per share amounts, or where otherwise noted) |
|
4Q18 | 3Q18 | Increase (Decrease) | 4Q17 | Increase (Decrease) | |||||||||||||||||||||
Total fee revenue(1) |
$ |
2,289 |
$ |
2,280 |
0.4 | % |
$ |
2,230 |
2.6 | % | |||||||||||||||||
Net interest income | 697 | 672 | 3.7 | 616 | 13.1 | ||||||||||||||||||||||
Total revenue | 2,986 | 2,951 | 1.2 | 2,846 | 4.9 | ||||||||||||||||||||||
Provision for loan losses | 8 | 5 | 60.0 | (2 | ) | (500.0 | ) | ||||||||||||||||||||
Total expenses(1) | 2,474 | 2,079 | 19.0 | 2,131 | 16.1 | ||||||||||||||||||||||
Net income available to common shareholders | 398 | 709 | (43.9 | ) | 334 | 19.2 | |||||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||
Diluted earnings per share | 1.04 | 1.87 | (44.4 | ) | .89 | 16.9 | |||||||||||||||||||||
Financial ratios and other metrics: | |||||||||||||||||||||||||||
Effective tax rate |
12.7 |
% |
11.8 |
% |
90 | bps | 48.4 |
% |
(3,570 | ) | bps | ||||||||||||||||
Average total assets |
$ |
221,350 |
$ |
221,313 |
— |
$ |
216,348 |
2.3 | |||||||||||||||||||
Fee operating leverage(2) | (18.61 | )% | (13.45 | )% | |||||||||||||||||||||||
Operating leverage(2) | (17.81 | ) | (11.18 | ) | |||||||||||||||||||||||
Return on average common equity | 7.5 | % | 14.0 | % | (650 | ) | bps | 6.9 | % | 60 | bps | ||||||||||||||||
Return on tangible common equity(3) | 20.5 | 19.4 | 110 | 16.7 | 380 | ||||||||||||||||||||||
Pre-tax margin (GAAP-basis) | 16.9 | 29.4 | (1,250 | ) | 25.2 | (830 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
(1) |
Effects of the new revenue recognition standard (ASU 2014-09): The newly effective revenue recognition standard increased 4Q18 total fee revenue and total expenses by $67 million each relative to 4Q17. In 4Q18 relative to 4Q17, the revenue impact was $50 million in management fees, $11 million in trading services revenue, and $6 million in other line items. The expense impact was $11 million in transaction processing, $48 million in other expenses, and $8 million across other expense line items. |
|
(2) |
The financial ratio represents the rate of growth of total revenue (or fee revenue) less the rate of growth of expenses relative to the preceding or prior year period, as applicable. |
|
(3) |
Return on tangible common equity is calculated by dividing year-to-date annualized net income available to common shareholders (GAAP-basis) by tangible common equity. For additional information on the Reconciliation of Tangible Common Equity Ratio refer to the addendum included with this News Release. |
|
Selected Financial Information and Metrics
The tables below provide a summary of selected financial information and key ratios for the indicated periods.
The following table presents AUCA, AUM, market indices and foreign exchange rates for the periods indicated.
(Dollars in billions, except market indices and foreign exchange rates) | 4Q18 | 3Q18 |
Increase |
4Q17 |
Increase |
||||||||||||||||||
Assets under custody and administration(1)(2) | $ | 31,620 | $ | 33,996 | (7.0 | )% | $ | 33,119 | (4.5 | )% | |||||||||||||
Assets under management(2) | 2,511 | 2,810 | (10.6 | ) | 2,782 | (9.7 | ) | ||||||||||||||||
Market Indices (3) : | |||||||||||||||||||||||
S&P 500® daily average | 2,699 | 2,850 | (5.3 | ) | 2,603 | 3.7 | |||||||||||||||||
MSCI EAFE® daily average | 1,809 | 1,964 | (7.9 | ) | 2,005 | (9.8 | ) | ||||||||||||||||
MSCI® Emerging Markets daily average | 978 | 1,054 | (7.2 | ) | 1,125 | (13.1 | ) | ||||||||||||||||
HFRI Asset Weighted Composite® monthly average | 1,389 | 1,413 | (1.7 | ) | 1,387 | 0.1 | |||||||||||||||||
Barclays Capital Global Aggregate Bond Index® period-end | 479 | 473 | 1.3 | 485 | (1.2 | ) | |||||||||||||||||
Average Foreign Exchange Rate (Euro vs. USD) | 1.141 | 1.163 | (1.9 | ) | 1.178 | (3.1 | ) | ||||||||||||||||
Average Foreign Exchange Rate (GBP vs. USD) | 1.286 | 1.303 | (1.3 | ) | 1.328 | (3.2 | ) | ||||||||||||||||
(1) |
Includes assets under custody of $23,248 billion, $25,300 billion, and $25,020 billion, as of 4Q18, 3Q18, and 4Q17, respectively. |
|
(2) |
As of period-end. |
|
(3) |
The index names listed in the table are service marks of their respective owners. |
|
Industry Flow Data
(Dollars in billions) | Quarters | |||||||||||||||||||||||||||||
1Q18 | 2Q18 | 3Q18 |
Three Months |
YTD |
YTD |
|||||||||||||||||||||||||
North America - ICI Market Data(1)(2) | ||||||||||||||||||||||||||||||
Long Term Funds(5) | $ | 38.0 | $ | (28.3 | ) | $ | (50.4 | ) | $ | (148.6 | ) | $ | 66.8 | $ | (195.3 | ) | ||||||||||||||
Money Market | (52.2 | ) | (51.7 | ) | 35.8 | 50.2 | 81.2 | 20.5 | ||||||||||||||||||||||
ETF | 62.8 | 55.8 | 87.2 |
89.2 |
470.8 | 314.3 | ||||||||||||||||||||||||
Total ICI Flows | $ | 48.6 | $ | (24.2 | ) | $ | 72.6 | $ |
(9.2 |
) | $ | 618.8 | $ | 139.5 | ||||||||||||||||
Europe - Broadridge Market Data(1)(3) | ||||||||||||||||||||||||||||||
Long Term Funds(5) | $ | 160.5 | $ | (24.9 | ) | $ | (16.2 | ) | $ |
(126.9 |
) | $ | 713.5 | $ | 57.6 | |||||||||||||||
Money Market | (10.3 | ) | (17.8 | ) | (21.9 | ) | 2.0 | 75.7 | (39.5 | ) | ||||||||||||||||||||
Total Broadridge Flows | $ | 150.2 | $ | (42.7 | ) | $ | (38.1 | ) | $ |
(124.9 |
) | $ | 789.2 | $ | 18.1 | |||||||||||||||
(1) |
Industry data is provided for illustrative purposes only and is not intended to reflect the Company's or its clients' activity. |
|
(2) |
Source: Investment Company Institute. |
|
(3) |
Source: © Copyright 2018, Broadridge Financial Solutions, Inc. |
|
(4) |
4Q18 data is through November 30, 2018 on a rolling 3 month basis and includes September, October and November 2018 market data. FY 2018 represents the rolling twelve month period from December 2017 through November 2018, the last date for which information is available. Flows for FY 2018 will not equal the sum of the four quarters. |
|
(5) |
The long term fund flows reported by ICI are composed of North America Market flows mainly in Equities, Hybrids and Fixed Income Asset Classes. The long term fund flows reported by Broadridge are composed of EMEA Market flows mainly in Equities, Fixed Income, and Multi Asset Classes. |
|
Assets Under Management
The following table presents 4Q18 activity in AUM by product category.
(Dollars in billions) | Equity |
Fixed-
|
Cash (2) |
Multi-Asset-
|
Alternative
|
Total | ||||||||||||||||||||||||
Balance as of September 30, 2018 | $ | 1,789 | $ | 423 | $ | 317 | $ | 145 | $ | 136 | $ | 2,810 | ||||||||||||||||||
Long-term institutional inflows(1) | 94 | 37 | — | 29 | 2 | 162 | ||||||||||||||||||||||||
Long-term institutional outflows(1) | (100 | ) | (41 | ) | — | (31 | ) | (3 | ) | (175 | ) | |||||||||||||||||||
Long-term institutional flows, net | (6 | ) | (4 | ) | — | (2 | ) | (1 | ) | (13 | ) | |||||||||||||||||||
ETF flows, net | (5 | ) | (1 | ) | 5 | — | 2 | 1 | ||||||||||||||||||||||
Cash fund flows, net | — | — | (35 | ) | — | — | (35 | ) | ||||||||||||||||||||||
Total flows, net | (11 | ) | (5 | ) | (30 | ) | (2 | ) | 1 | (47 | ) | |||||||||||||||||||
Market appreciation / (depreciation) | (234 | ) | 4 | 1 | (10 | ) | (9 | ) | (248 | ) | ||||||||||||||||||||
Foreign exchange impact | — | — | (1 | ) | (1 | ) | (2 | ) | (4 | ) | ||||||||||||||||||||
Total market/foreign exchange impact | (234 | ) | 4 | — | (11 | ) | (11 | ) | (252 | ) | ||||||||||||||||||||
Balance as of December 31, 2018 | $ | 1,544 | $ | 422 | $ | 287 | $ | 132 | $ | 126 | $ | 2,511 | ||||||||||||||||||
(1) |
Amounts represent long-term portfolios, excluding ETFs. |
|
(2) |
Includes both floating and constant-net-asset-value portfolios held in commingled structures or separate accounts. |
|
(3) |
Includes real estate investment trusts, currency and commodities, including SPDR® Gold Shares ETF and SPDR® Long Dollar Gold Trust ETF. State Street is not the investment manager for the SPDR® Gold Shares ETF and the SPDR® Long Dollar Gold Trust ETF, but acts as the marketing agent. |
|
Revenue
(Dollars in millions) | 4Q18 | 3Q18 |
Increase |
4Q17 |
Increase |
||||||||||||||||||||
Servicing fees | $ | 1,286 | $ | 1,333 | (3.5 | )% | $ | 1,379 | (6.7 | )% | |||||||||||||||
Management fees | 440 | 474 | (7.2 | ) | 418 | 5.3 | |||||||||||||||||||
Foreign exchange trading services | 294 | 288 | 2.1 | 248 | 18.5 | ||||||||||||||||||||
Securities finance revenue | 120 | 128 | (6.3 | ) | 147 | (18.4 | ) | ||||||||||||||||||
Processing fees and other revenue | 149 | 57 | 161.4 | 38 | 292.1 | ||||||||||||||||||||
Total fee revenue(1) | 2,289 | 2,280 | 0.4 | 2,230 | 2.6 | ||||||||||||||||||||
Net interest income | 697 | 672 | 3.7 | 616 | 13.1 | ||||||||||||||||||||
Gains (losses) related to investment securities, net | — | (1 | ) |
nm |
— | nm | |||||||||||||||||||
Total Revenue | $ | 2,986 | $ | 2,951 | 1.2 | $ | 2,846 | 4.9 | |||||||||||||||||
Net interest margin | 1.55 | % | 1.48 | % | 7 | bps | 1.38 | % | 17 | bps | |||||||||||||||
(1) |
The newly effective revenue recognition standard increased 4Q18 total fee revenue by $67 million relative to 4Q17. For 4Q18 relative to 4Q17, the fee revenue impact was $50 million in management fees, $11 million in trading services revenue, and $6 million in other line items. |
|
nm |
Not meaningful |
|
Servicing fees decreased from 4Q17, reflecting weaker equity markets and challenging industry conditions, a previously announced client transition, and the unfavorable impact of currency translation, partially offset by new business wins. Compared to 3Q18, servicing fees decreased, primarily due to lower equity market levels and challenging industry conditions, as well as the unfavorable impact of currency translation, partially offset by higher client activity.
Management fees increased from 4Q17, due to $50 million related to the new revenue recognition standard, partially offset by lower equity market levels. Management fees decreased from 3Q18, primarily due to lower equity market levels and net outflows.
FX Trading Services revenue (2) increased from 4Q17, reflecting higher FX client volumes and volatility. The new revenue recognition standard contributed $11 million to 4Q18 trading services relative to 4Q17. Compared to 3Q18, trading services revenue increased, reflecting higher FX volatility.
Securities finance revenue decreased from 4Q17, reflecting balance sheet optimization efforts. Compared to 3Q18, securities finance revenue decreased due to lower assets on loan and lower spreads.
Processing fees and other revenue increased from 4Q17 and 3Q18. The increase over both periods is primarily due to the contribution of the recently acquired CRD.
Net interest income increased from 4Q17, driven by higher market interest rates in the U.S. and disciplined liability pricing, partially offset by a mix shift to HQLA. Compared to 3Q18, net interest income increased primarily due to higher U.S. interest rates and disciplined liability pricing. Net interest margin on a fully taxable-equivalent basis increased 17 and 7 basis points, respectively, compared to 4Q17 and 3Q18, driven by higher U.S. interest rates, disciplined liability pricing and a smaller interest earning balance sheet.
(2) FX trading services includes brokerage and other.
Expenses
(Dollars in millions) | 4Q18 | 3Q18 |
Increase |
4Q17 |
Increase |
||||||||||||||||||
Compensation and employee benefits | $ | 1,303 | $ | 1,103 | 18.1 | % | $ | 1,067 | 22.1 | % | |||||||||||||
Information systems and communications | 356 | 332 | 7.2 | 301 | 18.3 | ||||||||||||||||||
Transaction processing services | 214 | 236 | (9.3 | ) | 219 | (2.3 | ) | ||||||||||||||||
Occupancy | 146 | 110 | 32.7 | 117 | 24.8 | ||||||||||||||||||
Acquisition and restructuring costs | 24 | — | — | 133 | (82.0 | ) | |||||||||||||||||
Amortization of other intangible assets | 81 | 47 | 72.3 | 54 | 50.0 | ||||||||||||||||||
Other | 350 | 251 | 39.4 | 240 | 45.8 | ||||||||||||||||||
Total Expenses (1) | $ | 2,474 | $ | 2,079 | 19.0 | $ | 2,131 | 16.1 | |||||||||||||||
(1) |
The newly effective revenue recognition standard increased 4Q18 total expenses by $67 million relative to 4Q17. For 4Q18 relative to 4Q17, the expense impact was $11 million in transaction processing, $48 million in other expenses, and $8 million across other expense line items. |
|
nm |
Not meaningful |
|
Compensation and employee benefits expenses increased from 4Q17, primarily reflecting a repositioning charge of $198 million, CRD related compensation and employee benefit expenses of $28 million, higher investments to support new business and annual merit increases, partially offset by net Beacon savings and lower performance based incentive compensation. Compared to 3Q18, compensation and employee benefits expenses increased primarily due to the repositioning charge, the contribution from CRD, and one additional payroll day in 4Q18, partially offset by net Beacon savings and lower performance based incentive compensation.
Information systems and communications expenses increased from 4Q17 and 3Q18. The increase from both periods reflects technology infrastructure enhancements.
Transaction processing services expenses decreased from both 4Q17 and 3Q18, reflecting lower market data and sub-custody costs. The 4Q18 transaction processing services expenses includes $11 million related to the new revenue recognition standard.
Occupancy expenses increased from 4Q17, primarily due to $25 million related to the 4Q18 repositioning charge. Compared to 3Q18, occupancy expenses increased, primarily due to the 4Q18 repositioning charge and the optimization of our global footprint strategy.
Other expenses and intangible asset amortization increased from 4Q17, primarily due to $48 million related to the new revenue recognition standard, higher legal and related expenses of $42 million, CRD related intangible asset amortization of $18 million, and business exit costs. Compared to 3Q18, other expenses increased primarily due to higher legal and related expenses, higher professional fees, CRD related intangible asset amortization, and business exit costs.
The 4Q18 effective tax rate was 12.7% compared to 48.4% in 4Q17 and 11.8% in 3Q18. The 4Q18 tax rate includes the impact of the notable adjustments referenced earlier in this announcement. The 4Q17 tax rate included a one-time estimated net tax cost of $270 million as a result of the enactment of the Tax Cuts and Jobs Act ("TCJA"), while the 3Q18 tax rate included a reduction related to the 2017 tax legislation changes.
Capital
The following table presents regulatory capital ratios for State Street Corporation. The lower of capital ratios calculated under the Basel III advanced approaches and under the Basel III standardized approach are applied in the assessment of our capital adequacy for regulatory purposes. Lower quarter-end capital ratios versus 3Q18 reflect the closing of the Charles River Development acquisition on October 1, 2018, partially offset by lower balance sheet levels and a reduction of risk weighted assets.
December 31, 2018(1) |
Basel III |
Basel III |
Fully |
|||||||||
Common equity tier 1 ratio | 12.1 | % | 11.5 | % | ||||||||
Tier 1 capital ratio | 16.0 | 15.1 | ||||||||||
Total capital ratio | 16.8 | 16.0 | ||||||||||
Tier 1 leverage ratio | 7.2 | 7.2 | ||||||||||
Supplementary Leverage Ratio | 6.3 | % | ||||||||||
September 30, 2018 | ||||||||||||
Common equity tier 1 ratio | 14.1 | % | 13.0 | % | ||||||||
Tier 1 capital ratio | 17.9 | 16.4 | ||||||||||
Total capital ratio | 18.7 | 17.2 | ||||||||||
Tier 1 leverage ratio | 8.1 | 8.1 | ||||||||||
Supplementary Leverage Ratio | 7.1 | % | ||||||||||
(1) |
December 31, 2018 capital ratios are preliminary estimates. |
|
(2) |
The advanced approaches-based ratios (actual and estimated) included in this presentation reflect calculations and determinations with respect to our capital and related matters, based on State Street and external data, quantitative formulae, statistical models, historical correlations and assumptions, collectively referred to as “advanced systems.” Refer to the addendum included with this News Release for a description of the advanced approaches and a discussion of related risks. Effective January 1, 2018, the applicable final rules are in effect and the ratios presented are calculated based on fully phased-in CET1, tier 1 and total capital numbers. |
|
(3) |
Estimated pro-forma fully phased-in ratios as of December 31, 2018 reflect capital and total risk-weighted assets calculated under the Basel III final rule. Refer to the addendum included with this News Release for reconciliations of these estimated pro-forma fully phased-in ratios to our capital ratios calculated under the then applicable regulatory requirements. Effective January 1, 2018, the applicable final rules are in effect and the ratios presented are calculated based on fully phased-in CET1, tier 1 and total capital numbers. |
|
Investor Conference Call and Quarterly Website Disclosures
State Street will webcast an investor conference call today, Friday, January 18, 2019, at 10:00 a.m. EST, available at http://investors.statestreet.com/ . The conference call will also be available via telephone, at +1 877-423-4013 inside the U.S. or at +1 706-679-5594 outside of the U.S. The Conference ID is # 9476965.
Recorded replays of the conference call will be available on the website, and by telephone at +1 855-859-2056 inside the U.S. or at +1 404-537-3406 outside the U.S. beginning approximately two hours after the call's completion. The Conference ID is # 9476965.
The telephone replay will be available for approximately two weeks following the conference call. This News Release, presentation materials referred to on the conference call and additional financial information are available on State Street's website, at http://investors.statestreet.com/ under “Investor Relations--Investor News & Events" and under the title “Events and Presentations.”
State Street intends to publish updates to its public disclosure regarding regulatory capital, as required by the Basel III final rule, and the liquidity coverage ratio, on a quarterly basis on its website at http://investors.statestreet.com/ , under "Filings & Reports." Those updates will be published each quarter, during the period beginning after State Street's public announcement of its quarterly results of operations and ending on or prior to the due date under applicable bank regulatory requirements (i.e., ordinarily, ending no later than 60 days following year-end or 45 days following each other quarter-end, as applicable). For 4Q18, State Street expects to publish its updates during the period beginning today and ending on or about February 14, 2019.
State Street Corporation (NYSE: STT) is the world's leading provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $31,620 billion in assets under custody and administration and $2,511 billion* in assets under management as of December 31, 2018, State Street operates globally in more than 100 geographic markets and employs over 40,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
* Assets under management include the assets of the SPDR® Gold ETF and the SPDR® Long Dollar Gold Trust ETF (approximately $32 billion as of December 31, 2018), for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.
In this News Release:
Forward-Looking Statements
This News Release (and the conference call referenced herein) contains forward-looking statements within the meaning of United States securities laws, including statements about our goals and expectations regarding our business, financial and capital condition, results of operations, strategies, the financial and market outlook, dividend and stock purchase programs, governmental and regulatory initiatives and developments, and the business environment. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “outlook,” “expect,” "priority," “objective,” “intend,” “plan,” “forecast,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” “strategy” and “goal,” or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any date subsequent to January 18, 2019.
Important factors that may affect future results and outcomes include, but are not limited to:
Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in our 2017 Annual Report on Form 10-K and our subsequent SEC filings. We encourage investors to read these filings, particularly the sections on risk factors, for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this News Release should not by relied on as representing our expectations or beliefs as of any time subsequent to the time this News Release is first issued, and we do not undertake efforts to revise those forward-looking statements to reflect events after that time.