Q2 2020 Earnings Call
Thank you for standing by and welcome to the Meritas second quarter earnings release Conference call.
At this time all participants are in listen only mode. After the speakers presentations will be a question and answer session.
Ask a question during the second Tony to press Star one on your telephone if you require any further system press Star Zero I would now like behind the conference over to your Speaker today, Mike Labelle. Please go ahead.
Hi, good morning.
Morning, and thanks, everyone for joining.
Our call will begin with comments from President and Chief Executive Officer, Tom Harty, followed by local media Group, President, Patrick Mccreery, and Chief Financial Officer, Joe ceramic.
Marks. This morning will include forward looking statements and actual results may differ from our forecast some of the reasons.
Her described at the end of our news release that was issued earlier this morning.
And in some of our FCC filings.
Certain financial measures that were discussing on the call are expressed on a non-GAAP basis and have been adjusted to exclude the impact of special items.
Reconciliations of these non-GAAP measures are included in our earnings.
Release, which is available in the Investor Relations section of Meredith Dot com.
Finally, an archive of the call will be available on our website. Later this afternoon, so I'll turn the call over to Tom.
Thank you very much like and good morning, everyone I hope you've had the opportunity you see our news release issued earlier.
Here. This morning to summarize fiscal 2022nd quarter total company revenues were 811 million compared to 878 million in the prior year period.
Earnings from continuing operations, which included special items in both periods were 62 million.
Compared to 88 million in the prior year period.
Total company adjusted EBITDA was 194 million well above the range communicated on our last earnings call.
There were two all these factors there primarily affected revenue compatibility comparability with the prior year second quarter.
First cyclical decrease and political spot advertising revenues of 61 million in our local media group, which was expected and second the impact of a number of changes to our national media group titles to enhance the experience where consumers provide more effective and efficient platforms.
Our advertising clients and increase the profitability of our portfolio.
Absent these changes comparable advertising revenues were up.
Talk about these changes in more detail in a few moments.
Our two year timing integration process is now largely complete and we have more competence than ever.
The Americas had the strongest competitive position in its history.
For example in the second quarter fiscal 2020, our National Media group delivered results, that's significantly exceeded our expectations, including strong growth in year over year, adjusted EBITDA and related margins driving that performance.
Was our second consecutive quarter of comparable total advertising revenue growth as both print and digital advertising revenue exceeded expectations.
As an aside if you looked at calendar 2019 in its entirety total comparable national Media group advertising was up meaning we achieved.
The inflection point of digital advertising revenue gains more than offsetting print advertising declines.
Meanwhile, the consumer connection to our brands reached record highs readership of our print titles grew 4% from the prior period to a record 186 million.
According to the.
Latest data from M. arrive semex.
Traffic to our digital properties grew to an average of nearly 155 million monthly unique visitors according to comscore.
All recipes dotcom achieved several notable milestones during the quarter posting a record 50 million unique visitors over the.
Thanksgiving holiday delivering 1 million video views for the first time on a single day on Thanksgiving day, and reaching an all time monthly high 60 million average unique visitors in December.
At the same time, our local media group delivered record results for a second quarter and they nonpolitical year.
Nonpolitical spot advertising revenues were up in the low single digits, marking the fourth consecutive quarter of growth.
Consumer related revenues grew 15%.
We successfully completed new multi year retransmission consent agreements with charter communications all piece USA.
Hey, Mediacom communications and Google fiber.
We also successfully completed the renewal of our APC affiliation for W., GGB and Springfield, Massachusetts.
Beyond our operating group performance. We've had several notable recent accomplishments we sold fan sided in January.
We recently reached an agreement on the sale of zoom out and are waiting customary regulatory approvals before we close.
With that we won't sold all of our non core assets acquired in the time Inc. awkward transaction at very attractive multiples. Additionally, we raised our annual dividend last weekend for.
The 27th consecutive year, the new dividend reflects our continued confidence in the very strong cash flow generated by our vibrant brands and businesses.
As we look ahead to our third quarter, we're encouraged by revenue trends in both operating groups and the National media portfolio.
We're currently pacing slightly up year over year in comparable advertising revenues and the local media group, we see stable advertising performance, while it's still early non political spot advertising is currently pacing up slightly in the third quarter compared to the prior year.
We're also.
Beginning to see more meaningful political related advertising dollars for markets in presidential primary states.
With that overview I'll turn now to the review of our operating group performances, beginning with our National Media group.
Fiscal 2020 National Media group second quarter operating.
It was 101 million excluding special items operating profit was 92 million and adjusted EBITDA was 141 million all records.
Total 2020 National Media group second quarter revenues were 597 million compared to 616.
In the prior year period.
As I mentioned, we made several changes to our portfolio that affected comparability with prior year results, particularly as it relates to advertising and subscription revenues.
The portfolio rationalization is a key piece of our ongoing strategy to increase.
Yes, the profitability of our magazine business since the time make acquisition, we've made a number of portfolio changes, including selling non core assets at attractive multiples investing in key brands through redesign increase editorial in sales resources and higher quality paper introducing new products.
Yes, such as reveal the magazine from the property brothers drew and Jonathan Scott.
Transitioning marginally profitable titles to quarterly consumer driven products with higher subscription and newsstand prices.
Emerging competing titles to create more profitable brand with a broader reach and closing down brands with very limited.
Good growth potential.
Specific portfolio changes affecting fiscal 2022nd quarter results were transitioning coastal living attritional home to premium newsstand titles merging cooking light intermarriage popular eatingwell title and closing the family Circle money and Martha Stewart Weddings magazine.
Looking more closely at fiscal 2022nd quarter advertising performance compared to the prior year period.
Total advertising related revenues declined slightly.
Due primarily to the portfolio changes comparable advertising related revenues grew.
Many of our magazines delivered.
Advertising revenue growth, including people, our largest Brad which was up double digits.
Digital advertising revenue grew in the high single digits driven by growth in traffic impressions per visit.
Right along with strong video performance.
We're pleased to be delivered.
Delivering on the promise of our portfolio of industry, leading brands, our performance a significantly stronger than the industry as a whole as leading to strong market share gains and print advertising.
Independent research continues to confirm the strength of our National Media group portfolio across all media platforms for example.
And majority of advertisers identify narrow it as a must buy or a complimentary by across all of our key content categories of home food parenting Entertainment and health. This is according to the most recent brand tracks tracking study performed last month by the highly respected.
Ties in perceptions.
Importantly, we continue to serve more than 115 million American women with trusted content and provide advertisers with a safer environment in which to deliver their marketing messages.
Turning to fiscal 2022nd quarter National Media group consumer performance compared to prior year period.
Total consumer related revenues declined 10% the change in revenue is due primarily due primarily to the portfolio changes, which impacted subscription and newsstand revenues.
Affinity marketing licensing in digital and other consumer related revenues rose, 13%, we're particularly pleased to leverage.
We did our long running and successful brand licensing agreement with Walmart during the second quarter fiscal 2020 through the end of our fiscal 2024.
In addition to the portfolio changes discussed a few moments ago, we've also completed or announced additional innovations in our national.
Group in fiscal 2020 to position it for revenue and profit growth overtime foremost is our newest brand launch reveal a new lifestyle magazine done in partnership with globally recognized home renovation and interior design experts through and Jonathan Scott four stars.
As of the popular property brothers television show.
Reveal is just one example of the way we are evolving the magazine model for some of our brands with the individual consumer in mine just last month, we announced the launch of New quarterly magazine in partnership with bestselling author restaurant Tour and television hosts are you sure.
Curry. We've also recently re imagined several of our brands, including cooking light coastal living and Rachael Ray in season as consumer driven titles, what's common with all these titles is immersive photography compelling content and high quality and beautiful paper that delivers a unique experience and media.
We are aggressively innovating, our digital products and services to this includes making strong progress on the investment initiatives highlighted in early September.
As a reminder, these are building an integrated digital platform and strengthening our data and audience targeting tools the new platform brings.
Together, the legacy Meredith and timing digital assets to a common content management system front end templates and our proprietary data insights platform. We expect the migration to this platform to be largely complete by the end of fiscal 2020, we expect this new platform will offer a more personalized.
Variants that drives engagement for our consumers at scale richer audience insights and contextual targeting for our advertising partners and faster speeds and greater efficiency for us across our digital network.
Creating more video the market for Diddy digital video related advertising is expected to.
30% faster the non video display advertising and account for more than half of the total digital display AD spending in 2020. According to E. Marketer. We are seeing early and strong results from our video production work with video views and revenues across our owned and operated sites.
It's up in the double digits in our fiscal second quarter.
Content to commerce, where we are integrating relevant commerce experiences into our brands to drive affiliate and consumer revenue.
We work with more than 400 retailers to drive premium high quality leads and buyers to their online stores.
Other areas that drive digital engagement one of these is through the recent acquisition of swear by a small but interesting word of mouth recommendation engine that lets our consumers recommend products and experiences.
We also acquired stop we think it digital subscription driven business and the fast growing mine.
From a space, whose guided meditation program was named one of the Amazon Elecsys top 10 skills of 2019.
Finally, we know that an increasing number of our consumers want hands free convenience for daily tasks.
So we're expanding our audience offerings in the fast growing audio space.
Base, including ladies first a new podcast from in style that will highlight women were providing hope and inspiration to other women. It takes a village and new podcast from parents that will shine a light on the beauty and diversity of family life today, and people, which we'll be launching a new Delhi weekday podcast.
Featuring the most compelling stories of the day across celebrity News entertainment and human interest.
To summarize the National Media group discussion it was a strong second quarter in first half with progress on many fronts and rich directing a solid second half as well.
Now I'll turn it over to local media group.
President Patrick Mccreery for an update on our television business. Thank you Tom.
Fiscal 2020 local media group second quarter operating profit was 55 million and adjusted EBITDA was 67 million revenues were 214 million all were records for a nonpolitical second quarter looking.
We are closely at fiscal 2022nd quarter performance compared to the prior year period nonpolitical spot advertising revenues grew 2% to $90 million, our fourth consecutive quarter of growth performance was led by growth in our Las Vegas, and Phoenix markets from a category standpoint, the professional services pharmaceutical.
And home services categories were stronger partially offset by softer results in the automotive category.
Digital advertising revenues across our local media group portfolio increased 23%.
Third party sales declined 5%.
As expected in a non political year political advertising revenues were.
Million compared to 66 million in the prior year period.
Consumer related revenues increased 15% to 85 million due to growth in retransmission fees from cable and satellite operators. These increases were partially offset by higher payments to affiliated networks.
We continue to pursue initiatives to strengthen expand our local brands.
Our weekly television show based on the strength of the people brand continues to perform well with audiences and advertisers across our station group.
We have committed to launching the show in daily syndication in the fall 2020, beginning with distribution across all 12 of our local markets. We are actively engaged in discussions with other broadcast television owners to carry the.
A show as well.
We're also seeing strong viewership for our whole higher for holiday specials, we aired in the second quarter based on the southern living brand.
We plan to begin airing the southern living show a weekly show starting in April it will run across the entire geographically diverse station portfolio.
We're also pleased at the strength of our.
News gathering and creative teams as evidenced by the nine regional Edward R. Murrow Awards as well as the 60 regional empties recently earned by our colleagues.
These efforts are helping our local media group maintained a strong connection to viewers as demonstrated by our performance in the November ratings period when stations in nine of our 12 markets rank.
The number one or two for sign on to sign off.
Now I'll turn it over to Joe ceramic to conclude our call. This morning, with a look at companywide financial highlights and our third quarter outlook.
Thanks, Patrick and good morning, everybody.
May recall that when we began fiscal 2020.
We expected to generate 70.
5 million in proceeds from the last of the noncore assets that we put up for sale.
As Tom mentioned, we sold fan cited last month and I'm pleased to tell you that once we receive HSR approval and close on the sale of Zummo, we will have exceeded that initial target and we.
Continue to expect to pay down a total of $150 million to $175 million of debt in fiscal 2020.
We raised our dividend by 3.5% to $2.38 on an annualized basis earlier, this week, which marked the 27th straight year of dividend increases.
And 70 threerd consecutive year that Meredith has paid dividends.
Now turning to our outlook for full year fiscal 2020, we expect total company revenues to range from 3 billion to 3.2 billion, which is unchanged from our original guidance communicated.
Last September.
We expect earnings from continuing operations to range from 177 million to 192 million and from $2.14 to $2.45 on a per share basis, including a net after tax charge per special items of 20 million.
Million.
Actual results May include additional spend special items that have not yet occurred and are difficult to predict with reasonable certainty.
We expect full year fiscal 2020, adjusted EBITDA to range from 640 to 675 million and adjusted earnings.
Per share to range from $5.75 to $6.20 also unchanged from our original guidance communicated last September.
These ranges include approximately 50 million previously announced planned strategic investments.
Now looking.
More closely at the third quarter fiscal 2020, we expect National Media group revenues to range from 515 million to 535 million.
Local media group revenues to range from 205 million to $215 million and earnings from continuing operations.
To range from 38 million to 45 million and from 39 cents to 55 cents on a per share basis, we expect third quarter fiscal 2020, adjusted EBITDA to range from 145 million to 155 million and adjusted earnings per share to range from one dollar.
24 to $1.40.
Now just to note as we previously disclosed in last year's third quarter. It included a one time out of period favorable adjustment to operating expenses of 10 million. The result of incorrect coating of certain magazine subscriptions by pre.
Acquisition time Inc. absent this item, our adjusted EBITDA guidance for Q3, as essentially even with our prior year period.
Now having delivered a very strong second quarter, we feel very good about our position as we head in to the second half of the year that.
Ed.
Very early in the new calendar year, and we have limited visibility into 2020 national print and digital advertising budgets and in our local media group, we're seeing strength and political advertising demand. Although again, it's very early in the election process.
As a result.
We're taking a cautiously optimistic approach and not adjusting our annual guidance at this time.
With that I'll turn it back to Tom to close and lead into Q in Asia.
Thank you very much Joe as you know, we manage our business over the long term, we continue to have confidence that we will deliver for.
Performance well within our stated EBITDA range for the full year.
While it's still early in calendar 2020, and we do not have clear visibility into advertising demand across both of our business businesses. There are encouraging trends first we expect continued momentum in print advertising as we.
Assessed calendar 2020 budgets with our powerful portfolio of brands.
Second while we experienced quarterly swings, we expect to deliver at least mid single digit growth and National Media group digital advertising revenues driven in part by strong video related performance.
And our local media.
Group, we're seeing a pickup and political primary advertising dollars.
In the back half of our fiscal 2020, and finally, we expect to renew and bpd contracts, representing approximately 30% of our subscriber base in the second half of fiscal 2020.
Now.
We'd be happy to answer any questions you might have for us This morning.
At this time I'd like to remind everyone in order to ask a question. Please press star and the number 100 telephone keypad. Your first question comes from the line of Dan Kurnos from from Benchmark. Your line is open.
Great. Thanks, good morning.
And.
Good to see a good print here guys couple of questions, maybe for Patrick and Tom starting off on the on the local side.
First on political is there any way, obviously presidentials not huge for you guys as part of your footprint, but is there anyway to quantify the impact of Bloomberg is having.
And what kind of variability there is in terms of your political forecast and then on the Retrans side numbers, a little bit better than anticipated I think you've got 18 tea in the back half of this year, which has been a little noisy and obviously Comcast had a bit of a soft sub guide. So just kind of your thoughts on rate versus subs.
And how kind of the markets shaping up in the back half of the year.
Thanks, Dan Good morning, I would say that on the political side, we booked 7 million in the first half of fiscal 20, and that's double the comparable quarter from 16, So I think things that shows very.
Variability as positive.
Bloomberg is certainly having an impact across most of our footprint as you mentioned presidential is light for us typically.
If the headlines are to be believed he is going to double is spending and that will be beneficial certainly.
So that's another cautiously optimistic opportunity for us.
With regard to retransmission you're right, we you're exactly right. We have HGTV in the back half of this fiscal there has been some noise around that.
We are confident that we'll be able to reach an agreement with them.
And as far as the sub base I think we've all adjusted to the reality of subs are declining at about 3%.
Early and Weve accounted for that in our calculations and our negotiations. So we're confident that we can continue to grow net profit contribution from retransmission through that process.
Perfect Super helpful and then on the National side.
Just Thomas.
You talked about portfolio rationalization.
In addition for a while now.
You're obviously I think it's probably pulled off maybe a point and a half of margin upside in the quarter.
I'm just curious if you can kind of outlay sort of your thoughts on the delta here or at least break it down between what came from margin improvement from portfolio rationalization versus say better.
Cost controls overall on your side versus kind of the upside and then the impact of the new platform that you're rolling out if there's any way to sort of quantify sort of the combination of those things as you see it in the back half of the year contributing to margin upside.
At least directionally that would be kind of helpful. Yes, I think Dan I think it's a.
Difficult question, the kind of break out the all the detail of the margin gain but it's a combination of a lot of different things right. So there's some actually there is some great mix changes in our digital business, where we're starting to see that video investment kick in and video Cpms are the.
The highest that we have and as we've mentioned before we just don't have enough inventory and that's why we've been leaning in and and investing in that area. So for the first half of our fiscal year.
Total video impressions are up.
Hi, 20% gains year over year and revenue is up.
Over 30% year over year to give you an example.
On the magazine side, we and we again for you guys Theres a lot of.
Comparability issues when we do things like this but it's the right thing that we do going forward. We have brands that we think are actually losing money and not going to be a growth back.
Factor going forward, we've actually shut them down an example that would be family circle or where weve taken.
Two brands and combine them in the cooking light eatingwell, so all of that improves our margins.
Over year over year.
And then again when we look at costs, we are still.
Being somewhat in the first half of the year from some synergy capture that we've had thats going to start running out now after we've been through this for two full years, but we did have some some synergy capture on the cost side and the first half of the year in the National Media group.
Alright Super helpful color, and it's nice to see an old.
Print thanks, guys.
Your next question comes from the line of Kyle Evans from Stephens. Your line is open.
Hey, good morning, Thanks for taking my questions.
First one.
A couple of your on on the LNG side.
How should we phase that 30% renewal.
Quarters in the.
Second half 20.
The 30% as ATM, Kyle and that is going to be in the fourth quarter I think it's in may.
Yes.
It is.
Okay.
I am hearing.
Kind of growing excitement around the friction thats.
Coming out of National cores. There's some industry efforts is that is it possible that that piece of the business, which is kind of been a drag for several years now on core that that could turn into growth going forward and then I've got another follow up their TV.
No it could.
If you look at the second quarter, our national advertising was up eight.
So I think we're seeing positive pace for this quarter in national as well so it's nice to see it come back.
Im not going to bet the farm on it but we're cautiously optimistic that it will continue.
Yes, we're we're currently pacing Kyle up a little bit in Q3.
Got you Patrick while I've got you.
Kind of an updated contribution number for auto and maybe.
Not necessarily like a pacing for Threeq you give me.
Kind of a longer term, maybe 12 24 month.
Yes, I mean in second quarter automotive was down eight.
And I think thats the trend that we've seen for the last six or so quarters.
We don't look for Thats, a reverse anytime soon.
You look at the if you look at Automotives sales numbers, they've been about 17 million flat for the last three years.
In Q3, as a little bit better it's currently pacing minus six.
So we're seeing some steady improvement and that's why on the local side as the manufacturer money tends to disappear and the deal the tier two dealer money density disappear where actually.
Really chasing the local AD dollars for automotive, because we think they're going to need to spend more.
As a reminder.
Professional services in this quarter outperformed automotive.
As a total of 25% of our take and automotive was 23. So that again has been a three quarter trend and we don't look for that to change.
Great moving onto the NMG piece of the business.
I'm trying to reconcile the readership.
Percent.
The consumer down 10% I know, we've talked a little bit in the past about some potential subscriber issues in the time base.
Maybe just help reconciling those two numbers and an update on on the progress you're making their with those subscribers.
Yes, so the audience number is a syndicated audience number that's.
In the print world, it's called MRI, it's kind of like Nielsen television ratings. So.
Thats a syndicated audience. They go out they measure brands that have a panel of people that they go out and they ask if you're reading the readership yet.
Pass along readership and things like that so never kind of matches, what we deliver from the number of copies of the number of subscribers that we have so theres, a little offset between that being actually up verse.
What we're quoting as the the actual revenue over subscribers being down so when we actually in the example.
We'll have family circle.
You have and Joe might have.
The revenue associated with family Circle on an annual basis, but that's that's a brand portfolio that was decreasing over time. We've had other brands that are that are stronger from both the consumer and from an advertising perspective, so we make the difficult decision to close it down because it's a it's.
It's an EBITDA drag on us, but it does have not insignificant consumer revenue associated with that so thats, what actually costs to decrease when we do that.
It was about 2 million and.
A follow up in your question Kyle the biggest change in sub revenue is again due to the portfolio changes. So for example, as Tom mentioned.
Family Circle.
Was down about 2 million in Q2 from a sub perspective.
And we expect the revenue to be down about 6 million in Q3 at about 6 million in Q4 due to the reduction or due to the shutdown of the.
Magazine, but when we when we look at consumer demand for magazines and we've always said, we're we're in the the we're not in.
The news business, we're not in content that that has to be produced and consumed immediately we're in the inspiration business and when you look at women are consumer demand for.
For our magazines has been basically flat for a long period of time, and we're actually looking for that to the future.
Got it.
Lastly on EMG, maybe just a quick update on where you are in terms of allocating the $50 million and strategic investments any kind of early returns you're seeing there and then thank you for the impressions in the revenue.
The new growth.
Video could you size that for us.
So when looking out into the future.
Would you think the contribution.
Can be on it.
I think I know the video example that I gave was listen a big part of what we said from the beginning was that we're going to be investing in video.
And more video content and as I said, it's great to see roughly 30% growth.
Growth in the first half of the fiscal year.
You want to make sure that you're doing it profitably and creating content that will generate a lot of impressions.
Other big area of investment as I mentioned was getting us onto one.
Platform and Thats really capital for engineers to actually get US all program than onto the out for the same platform and that that will be were about 60% today of our of our brands and traffic on this unified platform and again by June will be one.
Hundred percent on and again from when I look at total impressions. So just give you. An example of total impressions on our digital for the first half the fiscal year total impressions were up 16% and total sessions were up about 4%. So.
Very very strong growth and when we can get that.
Traffic than that single unified platform allows us to take that data and drive higher cpms and be more efficient to do that so we're very excited about getting that done but thats been the vast majority of our investments Ben the digital platform and also video.
Great. Thank you so much.
Again it does good question. Please press star and the number one on your telephone keypad. Your next question comes from the line of Davis Herbert from Wells Fargo. Your line is open.
Good morning, everyone. Thanks for taking the questions just a couple from me first.
What is your leverage at quarter end and if you could talk about forward.
Looking leverage given the political inflow, we should see later this year.
Yes, Dave is hey, it's Joe.
Our leverage at the end of.
Number I believe was around three and a half times.
As we look to the ended the year at June Thirtyth, we expect that to be down.
Own about three to.
Three two at June Thirtyth 2020.
Correct, yes, okay.
Would you expect.
To give a number but would you expect that number to migrate lower.
Yes, with political dollars for the calendar year 2020, as well, yes for sure.
The focus is continuing to pay down debt.
And with political coming in in the first half of 2021.
We'll continue to aggressively pay down debt and we do expect in 2021 with political.
That would help that EBITDA side of the equation as well.
Got it.
Okay and then second question for me is.
Now that the time integration is largely through as you as you said.
How do you think about visibility.
For that segment going forward I know, you've already talked a bit about a lot of the investments you're making in video.
But do you think the visibility piece will.
Proof in the next 12 months.
What do you want to I'm, sorry, what do you mean by visibility.
Segment as well.
On the National Media segment, sorry for especially for on the advertising side now that youve.
Close some of it.
Some of the publishing titles.
How do you think about.
About visibility.
Well I think.
The as we work through these changes I mean, the first year.
We had allowed these brands that we were treating as held for sale that have sold on that really affected the visibility in over the last year now with the portfolio changes again, which was.
Part of the plan.
That is APAC affecting the visibility is as we look going forward when things were looking at doing is doing some more reconciliation on a like for like or same stores sales to help maybe bring.
The word comparability and into a little more focus on.
To help you guys.
We know we've talked about from the at the variable on advertising our longer term hypothesis and thesis has been print on a comparable basis down in the mid single digit range and digital growth up mid single digit. So if you look that when I mentioned.
Again on a comparable basis, if you look at the trailing prior four quarters or calendar year 19, as a whole we were actually up slightly in total advertising on just slightly over $1 billion in advertising and print was down just a hair short of minus 5%.
And digital was plus 8% so again right in what we had talking about and then as we look out you have quarter swings, we actually in Q4.
Print advertising was actually up on a comparable basis.
And then as we look out the Q3 were back looking at kind of down mid single.
It's in print and up mid single digits in digital but longer term kind of year over year.
Thats kind of our look at and we're going to do our job is kind of explain that variability as we've kind of manage the portfolio and make sure that you can get into the financials and see the comparability.
Great that's very helpful. Thank.
So much and best of luck, Joe and non retirement thanks.
Sure. Thank you.
Great. So that concludes our call today, we appreciate everyone's time this morning, and we look forward to talking to again next quarter. Thank you very much.
This concludes today's conference call you may now disconnect.
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