Q3 2019 Earnings Call
Good day and welcome to the Lindblad expeditions anchor reports that of course in 2019 financial results conference call and webcast. All participants will be not listen only mode should you need assistance. Please take a conference specialist by pressing the stocky followed by zero.
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Thank you operator, good morning, everyone and thank you for joining us for Lindblads third quarter 2019 earnings call.
With me on the call today, some in bladder founder and Chief Executive Officer spend will begin to some opening comments and then I will follow with some details on our third quarter results before we open the call for Q1 day, you can find our latest earnings release in the Investor Relations section of our website.
Before we get started let me remind everyone that the company's comments today may include forward looking statements those expectations are subject to risks and uncertainties that may cause actual results and performance to be materially different from these expectations.
But he cannot guarantee the accuracy of any forecasts or estimates and we undertake no obligation to update any such forward looking statements. If he would like more information on the risks involved in forward looking statements. Please see the Companys FCC filings. In addition, our comments made reference non-GAAP financial measures a reconciliation of the most directly comparable GAAP financial.
Measures and other associated disclosures are contained in the company's earnings release and would that out of the way, let me turn the call oversight.
Oh, Thank you Craig and thanks to all joining our call today.
We're all very very pleased by the third quarter. This year was our first full quarter with our for U.S. flagships in Alaska and it was extremely gratifying to see that all of them sale with very high occupancy isn't that yields in fact, the quarter broadly hit on all cylinders, both operationally and financially.
Consolidated revenue was up 16% and.
EBITDA was up 41% over 2018 available guest nights at the Lindblad segment were up 14%.
And occupancy was up two percentage points.
Course, Greg will go into much more detail in a few minutes, but our success. This past quarter is the latest example of our ability to take advantage of the growing demand for adventure travel given our strategic investment and expanding capacity at a proven track record of delivering high quality an authentic experiences.
Given that we have nearly tripled our available inventory in Alaska over the last two years one of the factors that was a great significance to US was the increase in the number of ships operating in the region. Overall. This summer we watch the season very closely because we wanted to see the effects of competition.
But despite increasing our capacity for 124 to 316 burst on three ships. We have four ships, we were able to expand net yields and maintained very high occupancy levels, which certainly highlights the robust demand in the marketplace.
When adding capacity in a region you always want to be sure. The cannibalization does not materialize and that has definitely not then the case with a national geographic quest and the National geographic that's true.
Looking at the company overall, the booking environment remains very strong with bookings made during.
Q3, roughly 13% higher than in 2018 and revenue on the books for 2020 already approximately 25% higher that's the same time last year for 2019.
A big part of that bookings strength is the excitement over our two new ice class vessels. We are now just a few months away from taking delivery of our first blue water below the national geographic insurance. She is clearly going to be a magnificent ship both from a perspective of strengths in order to perform permission and in terms of.
Comfort not against.
The kill was laid for her sister ship earlier this month, and we expect delivery as a national geographic resolution in the fourth quarter of 2021.
Just a quick mention of of the name the HMS resolution was captain Cook second vessel, which circumnavigate it the globe further south and had ever been done before it also set a record crossing of the after Arctic Circle on January 17, 17, 73 and set a record for.
<unk>, how far the south it would stand for 49 years.
Captain Cook, a great hero navigator and explore has always been a beacon to all of us It lindblad expeditions.
These two chefs will because of their ultra high ice class and specialized whole shape be able to go places where literally no human has gone before.
Our diverse audience of loyal and new guests are extremely excited about both the ships and the UK a unique itineraries they will offer from crossing the northeast passage to our ethic Antarctic expeditions.
At the National Geographic endurance is already extremely well sold for 2020.
Well the longest itinerary on the national geographic Endurances, a very high ticket expedition with over 30 days.
<unk> robust deals we also recognize the need to have a diversified platform.
As we launch new ships and venture to new geographies. We've also put a lot of effort into developing short itineraries four to five nights with various new options on land. We branded these wild escape center of rapidly expanded participation in 2019, doubling 2018 results by.
Offering 11 different itineraries, including expeditions through the channel Islands, North coast of Costa Rica.
And we'll focus program in Bauhaus Magdalen I bet.
These wild escapes allow for development of new audiences simply may not have the time for our traditional voyages.
And last an average that last an average of nine nights early analysis suggests that the median age on these itineraries is considerably younger than our traditional voyages and given our repeat rates. This represents significant potential from a lifetime value perspective.
One of the biggest opportunities we are exploring it's a moment is developing the optimal balance between our for U.S. flagships outside of Alaska and the Pacific Northwest.
Historically traditional accessible geographies have provided more than enough interest for the national Geographic C line and National geographic see burden the shoulder season, given the increase in the U.S. fleet, we are working aggressively to build new programs and itineraries like wild escapes to maximize the opportunity during this time period.
With particular emphasis on developing new audiences that will become a bigger part of our growth in the future.
As a reminder, our U.S. ships do deliver the majority of their earnings in Alaska, and the Pacific Northwest, where we do view the optimization of shoulder seasons as an additional growth prospects moving forward.
As many of you know as we focus on strategically finding a expanding our fleet and developing new itineraries, we have committed to a significant increase in marketing and technology investment.
To efficiently support our expanding enterprise.
Our increased marketing efforts are focused on four components drives short and long term growth test and learn further scale. The most effective tactics and reduce overall media waste.
First of our new media efforts were implemented in May and June and were initially concentrated on increasing our engagement of audiences that were likely end market for expedition type travel.
And have expanded sense to include exposing entirely new audiences of qualified prospects to the lindblad experience.
Although only the tip of the iceberg early results have been promising visits from media impacted channels are up over 145% and our new to file names are up 72% and we are beginning to see some real transactions from this newly acquired group with new to brand transactions up 14% to date after.
Early in September up 39%.
At the same time, we continue to make critical progress on the technology from our new CRM platform went live during the third quarter, providing us with the technology platform to deliver a more seamless and enhance guest servicing experience, while also improving our ability to follow up on broker proactive and reactive sales leads.
We also continue to make significant progress on our new reservation system as well as our new marketing cloud and website.
Once fully online, which we anticipate in Q1 next year. We expect these new capabilities will provide a complete 360 degree view of the guest allowing us to create personalized an automated multichannel journeys improving our engagement and conversion rates. Additionally, our new reservation system will allow us to provide.
A more frictionless reservations experience and enable more seamless yield management, including dynamic pricing capabilities.
The significant investment this year on both in marketing and technology from is a planned effect on our 2019 results as most of the benefits will develop in the out years. However, we continue to deliver very strong financial results as we strategically invest and without question, we will be better off over the long term.
Having committed to this increased investment.
In summation, it's been a really good year to date, both in terms of results and preparing the organization for increased growth clearly the appetite for expedition travel is continuing to exponentially grow people want experiences above all else and we will continue to lead the way going where the awesome as and.
Fulfilling the aspirations of our ever growing number of guests.
Thank you again for your time this morning, and now let me turn the call back to Craig.
Thanks, then.
The strong financial results Lindblad generated during the third quarter preferably demonstrates the opportunity we have by combining expanding capacity with a growing audience for high quality adventure travel the targeted strategic investments that lindblad has made over the last several years is delivering strong financial results today, while we continue to invest in additional capacity.
Upgrading our technology infrastructure, and expanding our sales and marketing capabilities to provide us the ability to sustain this momentum for years to come.
Turning to the third quarter of 2019 total company revenue increased 16% versus the third quarter, a year ago led by 19% growth at the Lindblad segment and 7% growth at natural habitat. The strong growth contributed to a 41% increase in total company adjusted EBITDA led by 40% growth at the Lindblad segment and 43% growth.
Natural habitat.
Looking at the individual segments. The Lindblad segment generated revenue of 76.6 million as compared with 64.5 million during the third quarter of 2018, 19% year on year growth was primarily driven by a 14% increase in available guest nights, mostly from the launch of the National geographic venture in December 2000.
As an 18 on top of the capacity expansion. We were also able to increase occupancy to 94% this past quarter, well growing net yield 7% to $1054 per night predominantly due to higher ticket prices across the fleet and from the impact of being just a certain itineraries, most notably from transitioning some of our inventory on an.
Additional geographical Ryan from the South Pacific to the Russian far East.
Turning to the cost side of the business Lindblad segment operating expenses increased 14% on a reported basis, primarily driven by an 11% increase in cost of tours led by the addition of the National geographic venture to the fleet in December 2018.
Fuel cost in the quarter increased 4% versus prior year due to this fleet expansion.
Fuel was 2.9% of revenue as compared to 3.4% of revenue in the third quarter of 2018, reflecting lower fuel prices across the fleet and the impact of these changes and itineraries.
Sales and marketing costs increased 28% versus a year ago due to higher commission expense associated with the revenue growth as well as from the planned marketing investments we have discussed previously including costs associated with the rollout of our new CRM and reservation system, an increase marketing spend as we look to further capitalize honoring.
I'd and the growing demand for expedition travel.
Gina expenses increased 1%, primarily due to higher personnel costs and transaction costs associated with our warrant exchange, partially offset by lower VAT taxes in Ecuador.
The third quarter of 2019 also included 1.2 million of increased depreciation and amortization, mostly related to the addition of national geographic venture to the fleet.
Excluding stock based compensation, depreciation and amortization and transaction costs Lindblad segment operating expenses increased 12% versus the third quarter year ago. Overall, adjusted net cruise costs on a per night basis increased only 1% to $729, primarily as a result of the increased marketing and technology costs as well.
From some additional cost on the national geographic Orion in conjunction with its new Russian far East itineraries.
Overall, the Lindblad segment generated strong operating leverage this past quarter with a 19% revenue growth driving a 40% increase in adjusted EBITDA to 20.6 million. Despite the investments in future growth initiatives. Please note that the third quarter did also include the unexpected government shutdown of the Bonneville lock on the Columbia River for.
Parents during September of 2019, this impacted several voyages and slightly reduced our overall results for the quarter.
The natural habitat segment also generated real operating leverage this past quarter with revenue growth of 7% to 24.4 million due to additional departures and higher pricing driving a 43% increase in adjusted EBITDA to 3.5 million.
The revenue growth was partially offset by 3% increase in operating expenses from cost associated with additional departures as wells from the timing of marketing and personal spend it to drive additional future growth.
I should also note that we continue to see real benefits of combining the lindblad natural habitat businesses with cross selling expanding further in 2019, including a 40% plus increase year to date natural habitat sales led itineraries.
Total company net loss available to common stockholders in the quarter was 493000 or one cents per diluted share versus net income available to common stockholders of 5.1 million or 11 cents per diluted share reported in the third quarter a year ago. The 5.6 million dollar year on year increase decrease rather.
As the result of increased operating results being more than offset by higher taxes, a 4.7 million a 2.7 million deemed dividend related to the warrant exchange 2.3 million a foreign currency losses due in large part to forwards associated with the second installment payment on our second blue water vessel and 1.2 million of hired to.
Appreciate often associated with the launch of the venture. Please note that the weighted average diluted share count also increased during the quarter by 1.2 million shares predominantly due to the issuance of 3.9 billion shares in conjunction with retiring all the outstanding warrants of the company.
Turning to our balance sheet, we remain extremely well positioned to invest in future growth opportunities. We ended the quarter with 104 million in unrestricted cash free cash flow for the nine month year to date was a use of 35 million primarily reflects 64 million spent on the newbuilds, including only maintenance capex free cash flow.
It was 30 million year to date.
During the quarter, we also borrowed 30.5 million under our export credit agreement and use the proceeds for the second installment payment for the National Geographic resolution. This loan will bear floating interest rate equal to LIBOR, plus a margin of 3%.
The next contracted installment payment of approximately $31 million for the resolution is anticipated to be paid in the second quarter of next year.
Turning now to the full year 2019, Lindblad segment ticket revenue is currently pacing, 11% ahead. The same point a year ago, and we are already at 100% of our full year projected ticket revenues for the current year, while we continue to see very strong bookings each month at this point the vast majority of these reservations relate to 2020.
In 2021, so we do not anticipate bookings significant additional net ticket revenue for 2019.
Given that the strong current reservation trends are concentrated in future years for both lindblad, a natural habitat and given some of the inventory utilization, we are still balancing outside of Alaska and the Pacific North West with the U.S. Fleet. We expect total company tour revenue between 341, and 346 million or 10% to 11% growth versus 2000.
Team.
Our adjusted EBITDA guidance of 67 to 70 million or 22% to 28% versus 2018 remains unchanged our ability to maintain adjusted EBITDA expectations. Despite a slight reduction in our revenue forecast reflects the margin profile and some of our shoulder season revenue and our ability to control our variable costs.
We will provide further financial guidance for 2020 on a yearend call in March. The please note that bookings for a future traveled remain very strong and we already have over $45 million more booked for 2020 at this point than we did for 2019 at the same point a year ago.
Thank you very much for your time this morning, and US then I would be happy to answer any questions that you may have.
[noise] well now begin to question answer session to ask a question you made press Star then one on your Touchtone phone.
If you're using a speakerphone please pick up your handset before pressing the key.
If at any time. The question has been addressed and you would like to withdraw your question. Please press Star then too.
At this time, we will pause momentarily to assemble alrosa.
Okay.
[noise] first question comes from the line of Steve Wieczynski with Stifel. Please go ahead.
Hey, good morning, guys.
So so Craig I hope I Miss as an I. I think you did talk about it right at the end, but when you look at your your tore revenue.
You know guidance I think it's down about 3% relative to where it was backend back in July can you just go into a little bit more detail about what what drove that down.
From where you know from from from now where it is.
Sure. So so I would say it's really.
Three distinct items. The first is we did have a some minor impact due to the there was this close the other is locked in on the Columbia River, which did lower.
The ability to deliver on the revenue expectations for those itineraries. So that was a short term third quarter impact, but obviously translates to the full year. The second aspect is we are seeing more bookings now for 2020, rather than 2019, so the booking.
I would say volume has shifted.
A little earlier than we anticipated to next year.
The bookings for next year, a very very positive. It does have a slight impact in this year and the last piece is we are still in the process really rebalancing our inventory in the shoulder season for having four vessels.
Outside of Alaska, and when we do that we've had some some very strong success with the layering in our inventory, but we are still working through some of the what I would say is demand curves associated with each of those itineraries well certainly improve upon that every given the parents van can talk about how we build itineraries over time.
But those would be the three primary drivers importantly, when you look at all of those things there were relatively low margin pieces of our business, which is why we're able to keep our overall EBITDA guidance right, where we expected to be sent you want talk a little bit about building out centers.
Yes, I mean so.
We really look upon the shoulder season very differently now than we used to.
That would cause before we only had two U.S. ships and we so the shoulder seasons, where we're not something that we had to get particularly creative around where the demand exceeded a capacity now weve added capacity.
And that creates an opportunity, but it also requires creativity so.
And the main opportunities we've created a whole massive well when I say passive it's all relative in relationship to our size, but expansion of the short entry level programs.
These are four and five nights as I mentioned previously.
And they it's all up and down the West coast and the Pacific Northwest.
Alaska as well in Costa Rica.
And Baja California.
And we found that that first of all there's a there's there's there's a very just generally speaking the high demand for short.
Itineraries, we've as Weve label them escapes.
And we believe that this will be a feeder program. The average age. The average median age is about 10 years lower.
And that's really really meaningful for us from the perspective, how these.
Guess that come in the door first on these programs can be transition to the longer programs overtime.
So.
Whenever you start something absolutely new.
You don't hit it out of a park necessarily day one.
But we believe this is going to be an absolute home run.
In the long term.
Okay, Great. That's really good color, thanks, guys and suddenly you talked about.
For next year, you guys are 25% higher books at this point and obviously that incorporate some of the.
Or that incorporates endurance, which you didnt have this year so.
I guess the question is if you if you stripped out endurance is there any way to give us a little bit of color of how you're like for like bookings are trying to get us point for next year should.
Sure. So let me provide you a little bit of color.
I will answer your question before I do I think it's important to note that it's a hard question to answer mostly because a lot of the focus for us that would have booked the endurance will have booked other things with us if they hadnt book the endurance. So it's not the same as stripping out the same store sales that you would see an in another business, but that being said, we feel pretty good about next year and that if you stripped out the endurance when I look.
The year on year performance of the rest of our fleet, it's very much in line with where it was a year ago. So all in all we're seeing nice increases across the fleet in totality. The traditional business is oh traditional ships are not being cannibalized in any real way and we're seeing an additive boost from obviously booking the endurance for 2020 and frankly 2002.
Anyone.
Okay got you and then last question again, probably for you Craig but.
So you don't want to give quantitative guidance for being over 2020. This point, but are there are there any things we should be we should be thinking about for nextshares, we kind of go through and really kind of build to build out our models you know whether that is from a.
From a from a timing perspective, or a cost perspective anything like that would be pretty helpful.
Yeah, Yeah, we'll give a lot more color.
In late February March when we do our our earnings call for year end, but let's say is when you look overall next year, assuming that everything goes. According to plan, we expect to have certainly inventory growth somewhere in that mid teens range, because we're going to have.
Our new ship the endurance launch in April , which will certainly add to the overall capacity of the of the company. We do we would anticipate startup costs associated with that vessel in the first quarter will run hotter than it will the rest of the year because you'll have cost before you launched the ship a in April but other than that I'm going to steer clear of giving any.
Additional colored until we.
Finalized in 2018 results.
Okay, great. Thanks, guys appreciate it.
Our next question comes from the line of Greg Badishkanian with Citi. Please go ahead.
Hi, guys. Good morning, it spread widely known for Greg could you just give us the revenue where EBITDA impact. However, you want to phrase it for the Columbia River itinerary disruptions I think it'd be helpful. Just getting to sort of the underlying changes.
Hello.
Yeah, I don't want to I don't want to portray this is being a massive impact for us over the course of the year certainly it's it was a it.
Reduced our growth slightly during the quarter. So it has a nominal impact on overall the course of the year that was not the big driver of the revenue change year on year. The biggest driver was that really the timing of bookings for 2020, and 21 versus 2019 and certainly.
As we build up these us wages in the fourth quarter to bigger and broader opportunities.
This is the first year that building as lower occupancy in the fourth quarter than probably originally anticipated.
Okay. That's that's fair that's really helpful. Can you just sort of give us a degree for some feedback on the Alaskan market in Threeq you, how that's trended versus your expectations. I know you said that yields were up it doesn't sound like you're seeing.
Any cannibalization, but as we look out to next year I mean, there's still a decent amount of capacity growth at an industry level I know that you guys don't necessarily compete with everybody who's growing capacity, there, but anything that you're sort of planning to change as we look into next year versus this year.
Spend here not really.
The only thing Weve changes would change one of our at Tinder is on one of our shifts there was a 10 day itinerary into.
Two more five day itineraries that could be blended together into a 10 should people wish us. So that's just a little bit of itinerary tweaking, but.
Aside from that we're not anticipating.
Any changes I guess, we've been in Alaska since 1981 consistently every year and so we know this place.
Really really well and we always tweak in relationship to you know.
New opportunities and what we've learned from one year to the next.
But that's about it and we feel very very positive about the Alaska Mark I mean is such an enormous demand and and we are so differentiated from from other ships in terms of what we can do there.
So we feel very very confident I mean think about what happened in the third quarter for us. It really is the but I would say that the first big proving point of our expanded capacity theory, which is that we were going to add shifts to hide demand destinations and we were going to do that because we knew we had excess demand out there in the marketplace versus the capacity that we had and.
Did that this past quarter and we feel that at a spend mentioned really high occupancy rates in line with where we had been historically and frankly higher yields that we've been at historically, so I think as a stepping stone for the future growth. This company, it's a great data point for us moving forward.
Yeah totally totally agree and then just could you touch on sort of what you're seeing from a new ship premium perspective, I mean, how is pricing holding up or how are you thinking about pricing some of the newer hardware that you guys have like the venture and the class just given that we do have the inherent in the resolution coming online I mean is the pricing and those newer ships holding up are you seeing.
So to your legacy repeat customers looking to swap out some of the future heart.
Yes sure. So thanks for the question Fred So.
Yeah, when we look at the pricing across our fleet one of the things that we've been pretty consistent with for many years now is that the ship is part of the opportunity. The geography is a large part of the opportunity and end the places that were selling in the experiences that we're delivering is really what I guess are coming to us for we have some of our highest yields and some of our older inventory because the.
Variances are still fantastic so.
So when we look at the new hardware it will raise the overall price point of our of our yields predominantly because the cabin categories on those shifts is at a higher cabin category, but when you compare ships at the same cabin category level, they're gonna be very similar price points, because the geography. There. So special so we will see yields raise overtime certainly as we add new.
Inventory, but it's a byproduct of the cabin category mix more than anything else versus the age of the hardware.
Great. Thanks, so much.
Thank you.
The next question comes from the line of Greg Pendy with Sidoti. Please go ahead.
Hey, guys. Thanks for taking my question can you just kind of remind us I guess.
As your EBITDA guidance, I guess holding that for the year kind of implies a bit of a bump in the fourth quarter, you implied remind us if some of that I guess onetime costs associated with the venture last year in the fourth quarter that we won't anniversary this year.
Yeah. Thanks, Thanks, Greg I will note again to the specifics cost for any individual vessel because we try to avoid that but I think I'm glad you asked the question because that is an opportunity for us when you look at this current year fourth quarter last year as a reminder, the venture launched in December So she had operating costs.
Both the October and November with regards to crew with regards to you're getting the ship ready to sale that we will not have again this year.
Which is one of the reasons that we expect to be able to that have really high margins in Q4. The other opportunity for us in Q4 is that we had one of our ships the endeavor to which was in dry dock last year in the fourth quarter was in dry dock. This year in the third quarter. So a lot of that had to do a timing. So those two items together give us a lot of.
For it that we'll be able to deliver on our EBITDA expectations for the year and we also have the ability to control some of our variable cost might look out to the fourth quarter things on the guards a certain expenses that we spend from an office perspective, as well certain expenses that we spend throughout our dry docks and the rest of our ships. So we feel very confident with our full your expectations.
Got it that's helpful. Thanks, a lot.
My next question comments on the line of George Kelly with Imperial Capital. Please go ahead.
Hi, guys. Thanks for taking my questions.
Hi, George.
So just a couple of for your first.
Wondering if you could give us an update on the competitive dynamics versus maybe a year ago.
Have you seen any major changes in your key geographies.
Yes, so I I think we all know that we all know that there are plenty of ships being built summer.
Fewer coming out on time Muslim are coming out late.
We've been watching this very very keenly obviously because.
We we have this theory and its to it still has a theory that.
But this is going to the advent of these ships is going to increase interest in this niche so to speak or this category.
And that's one of the reasons, we elected to increase our spend significantly in marketing because we wanted to.
We want it to capture that increased interest.
And we do believe that with all the research we've done we know that guests potential guest.
They they hear about one company one idea them. They go to the web they do there they do their own research and we feel very very confident that as a consequence of that research we have a.
A really really good chance of capturing their interest.
So.
We're not underplaying. The you know the specter of competition, but we've been watching it very very closely and we have not seen any appreciable effect as a consequence of that.
Except possibly although we can't prove this yet.
That that that the notion of increasing demand as in fact.
Helped us despite the fact that there are more competitors out there.
The amount of increased activity in Alaska. The summer was very very significant.
And we didn't we didnt lose an an inch of ground.
And it is possible that that that noise of that increased activity in fact did.
Help us.
We can't prove it.
But we believe it's highly likely that it did.
And if that in fact gets borne out.
That would.
That would be very very meaningful as we go forward.
Does that make any sense I you know, it's a it's a nuanced it's a nuanced answer but its.
But it's something we're very very very very.
Closely paying attention to.
Okay. Thanks, and then second question for me.
Spend you mentioned in your prepared remarks.
Oh, the tech initiatives for next year and one thing you mentioned was the reservation process is going to become more frictionless.
I was just wondering if you could you sort of compare and contrast, what.
The current.
Reservation experiences where their pain points that you are hoping.
Well I think above all else it gives us the capacity to.
To really have a better understanding of the people that have already transacted with us.
We know we'll know more seamlessly what they've done what their likes our when they tend to want to travel what the you know there will be a lot of information that can be very very helpful to our reservations people.
In in that regard and so now it's it's a bit more primitive than that so if you for example, the travel. This before there are some steps that have to be taken now which are not necessary, which are a waste of your time and waste of our time and <unk> and all of that will be improved.
Rather dramatically we can also.
With the CRM system, we can also.
Provide people with if you think about a traveler there are three.
Three points or three different experiences. This the pre there's the during and then is the after and what we want to be is much more relevant to people in the pre and the after.
So for example, if you booked a trip to Antarctica nine months in advance we would want to be able to seamlessly send you things that would be of interest in that.
Period, leading up to.
To your departure and can be anything from camera information to an interesting article that.
Appeared a national geographic or the Smithsonian two to two some film that that is just coming out that maybe of interest to people. So that we just you know that the relationship starts much earlier and then after which we want to have the same opportunity and particularly at that point lead them in the direction of some some some subs.
Excellent idea with US you know what I mean.
Okay. That's helpful. Thank you.
It it's really it's really wanting to have a more personalized connection here, which is not easy when you're dealing with.
Tens of thousands of people but.
The best of our ability, we want to make ourselves really really relevant to our guests.
At all three stages of the engagement.
Okay understood. Thanks.
Again, if you have a question. Please press Star then one.
[laughter].
This concludes our question and answer session I would like to turn the conference back over to Mr. financing for any closing remarks.
Thank you everybody for joining us. This morning, we appreciate your time and if you have additional questions. Please let me know I'm happy to answer them. Once this call is concluded. Thank you.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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