Q2 2020 Earnings Call
Ladies and gentlemen, the operator today's conference is kinda can we get momentarily.
Until that time Airlines will again be placed cold thieffry patients.
[music].
Good morning.
My name is brandy and I'll be your conference operator today.
At this time I would like to everyone could imagine square Garden company fiscal 2022nd quarter earnings Conference call.
All lines have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question answer session.
If you like.
The question during this time she'd like fresh start the number one on your telephone keypad.
If you'd like to start your question, Chris I'm key.
Thank you and I should the college already Dane Senior Vice President Investor Relations for the Madison Square Garden Company. Please go ahead Sir.
Thank you good morning, welcome to the Madison Square Garden companies.
Fiscal 2012, <unk> second quarter earnings conference call.
And he loves garden begin today's call by providing an update on the company's operations after which the Tory and they are even <unk> Chief financial Officer.
Our financial results.
After our prepared remarks, well open up the poll for questions.
We do not have a copy of today's earnings release is available in the Investor section of our corporate website.
We signaled a bone.
Discussion may contain statements that constitute forward looking statements when in the meeting a private Securities Litigation Reform Act 99 Cod.
Investors are cautioned that any such forward looking statements.
They are not guarantees of future performance or results.
Involve risks and uncertainties.
And that actual results developments and events may differ materially slows and look forward looking statements as a result of various factors.
These include financial community perceptions of the company and its business operations financial.
And the industry in which it operates as well as the factors described in the company's filings with the Securities and Exchange Commission.
Including the sections entitled Risk factors, and management's discussion and analysis of financial condition results of operations contained therein.
The company disclaims any obligation to update.
Any forward looking statements that maybe discuss during the school.
Lastly on pages five and six of today's earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income and non-GAAP financial measure.
And with that I'll now turn the call over there.
Andy.
Thank you are and good morning, everyone.
We continue to prepare our company for its next chapter as we move ahead with her propose entertainment spin off and MSC sphere in Las Vegas.
Taken important steps with regard to the spin off and on track to complete this transaction by the end of March.
We filed our initial form 10 for the revised structure in early December and expect to file or second Amendment next week again competent choice.
In addition.
We're just about done with the league approvals needed to execute the transaction.
And we're continuing to fill out our management team for each company and expect to have more.
Sure so.
Of course, the transaction does remain subject to final lead and chemistry Board approvals.
We're moving as quickly as possible to complete this transaction we remain confident.
Got it would better highlight the unique value of the sports teams and the growth opportunities at the Entertainment company.
I'd like to pickup.
A few minutes to provide some additional perspective, starting with MSG sports.
With only 30 and be a 31 NHL teams there was tremendous scarcity value, which is even greater for the large market teams.
This value is reflected in transactions across all professional sports.
The recent NHL expansions he paid in Seattle and the deal for the Brooklyn nuts.
Even small market deals such as the Charlotte Hornets investments have been attractive.
We believe this dynamic will benefit the valuation or Standalone sports company.
In addition, the underlying fundamentals across.
All of our leagues and teams are robust.
And as our teams get better on the court and ice is only upside for our results.
All of this will contribute to sports company that we believe will deliver strong gross and free cash flow.
Meanwhile, the pure play Entertainment company plans to take advantage.
Vantage of the significant opportunities to grow within the changing entertainment landscape.
There has been a generational shift towards value experiences over material items.
We believe our portfolio of top grossing venues Wong with a world class Entertainment and hospitality brands or the White house.
Let's take advantage of this trend.
Additionally, we see atmosphere as a transformational opportunity to capitalize even further on the growing demand for immersive shared experiences.
Our business plan takes into account a number of potentially significant revenue streams.
This includes a variety of content such as.
Actions concert residences, corporate and select sporting events, as well as sponsorship and premium hospitality opportunities.
[noise], we've chosen Las Vegas, and entertainment capital that welcomes more than 42 million visitors a year as our debut market.
And we brought together the white.
And to bring atmosphere to likes.
As you saw in our press release. This morning, we've revised our cost estimate for Las Vegas to approximately $1.66 billion.
Well, we acknowledge that this estimate is higher than we would've liked.
We've been working diligently with our design and construction teams over.
For the past six months on this entire project.
As part of that process, we've identified significant cost savings relative or come to our contractors initial benchmark estimate.
Further develop debentures design, making important enhancements.
Well these modifications required us to reinvest a portion of our cost.
We believe the design changes will greatly improve the overall experience.
This substantial progress has also advanced the project from schematic design phase to detailed construction drawings.
Provides a much better foundation for estimating costs.
And.
As we discussed.
Obviously, we have a strong track record with the garden and the forum for delivering attractive returns on work scale Ben you projects.
And our continue expectation is that the sphere in Las Vegas will also generate a robust return on investment for the company.
We've also viewed Las Vegas, then you as a started a new entertainment distribution platform.
And fully expect that we will be able to leverage this initial investment as we continue to grow our spear initiative.
And while the entertainment company plans to self fund Las Vegas, our attention for any future venues is to explore other options, including non recourse debt financing joint.
Sure as an equity partners.
We may also pursue unmanaged venue model, where third party would fund the construction and we would program and operate.
In terms of timing in Las Vegas, we are full speed ahead on construction with the goal of opening in calendar 2021.
In London, we continue to.
Work through the planning application process, but no longer expect to receive a decision in March quarter.
We're using this time to amass from Las Vegas valuable learnings in design construction and procurement, which we plan to leverage in the future.
Turning to our operations.
We're pleased with this quarter's.
Im results, which were only modestly behind last year's record breaking border.
Highlights this quarter included a very successful multi night run a certain distillates towards the night before.
Which sold out 37 up its 45 shows at the who will do in Chicago theaters.
Looking ahead, we expect a solid second half of it.
Fiscal 2020.
Especially our fourth quarter, which positions us well for another Europe growth in our bookings business.
We're also pleased with how group's results as well as the strategic value they provide.
For the fiscal second quarter, the business generated strong growth on a year over year basis due to the performance of tell.
I'll go and Singapore bankers.
I'd also add that last month MSG increased its ownership in town to 77.5% in a transaction that included two of the original principal owners.
And while these two executives will remain at the company this transaction.
The transition to the next generation of tell leadership.
With regard to Boston, calling.
We announced a stellar lineup for this year's festival headlined by the Foo fighters, there were not chili peppers and rage against the machine.
While still early ticket sales to date have been extremely strong.
Look forward to an.
Adding memorial day weekend.
We're also pleased to report that the 87 season Christmas spectacular Mark the highest grossing running the shows history.
As we again sold over 1 million tickets also driving higher average ticket prices and sell through.
We achieved record setting year despite.
11 fewer shows primarily due to the holiday calendar and our decision to limit the maximum number of shows per day to five to improve the customer experience.
Turning to our sport segment.
The Knicks and Rangers consistently ranked in the top three for tickets sales in both the MBA in NHL.
Which.
Stroke study ticket related revenue for the second quarter on a year over year basis.
We also benefited this quarter from the growth of both local and National media rights and on the sponsorship front, we announced two significant renewals and look forward to continuing to work with older partners on creating elevated experiences.
That's showcase their brains and meaningful ways.
In summary.
The underlying fundamentals or sports and entertainment business remains strong.
We've made important progress on two key initiatives are spinoff and our sphere in Las Vegas.
We continue to see fiscal 2020, as a defining moment for our company.
Look forward to an exciting second half of the year.
With that I'll turn the call over to Victoria.
Thank you Andy and good morning, everyone.
As Andy mentioned, we're making significant progress on the entertainment spinoff.
This includes determining the appropriate capital structure for each company.
Yes.
The payments company is expected to start with the vast majority of our current $1.1 billion in cash on hand.
We're also planning to draw on a portion of the existing Knicks and Rangers revolving credit facility to make an additional cash contribution to the entertainment company prior to the spinoff.
This amount will be determined.
And closer to the completion.
Yeah.
MSG sports will initially be focused on paying down debt post separation after which we envision the sports company pivoting to the return of capital story.
On the entertainment side, we're in discussions with our relationship banks to put in place.
Facility company.
So the term loan and revolver, which would further bolstered the company's liquidity as it continues its construction of MSG here in Las Vegas.
I'd note that we do not intend to collateralize the garden as part of that financing.
With regard to cost for MSP.
At the Venetian.
I would add to Andy's earlier update that from December 31st construction costs incurred for Las Vegas, where approximately $248 million.
This amount is net of $37.5 million, we received from Las Vegas Sands in September to help on certain.
Action costs.
Now turning to results for our fiscal 2022nd quarter.
On a total company basis, we generated $628.8 million in revenue and $126.9 million going adjusted operating income.
Decrease of 1% and.
3%, respectively as compared to the prior year quarter.
The decrease in a wide primarily reflects higher corporate and other costs, primarily due to our MCC or initiative and proposed spin off which more than offset by growth at both the MSG sports and MSG Entertainment segments.
Turning to our segment results.
At MSG entertainment revenues of $312.7 million decreased 1%.
This was primarily due to lower event related revenues from concerts as compared to last year's record breaking quarter.
The wind down with obscures third party.
And the expiration of our bookings agreement with the way theater.
These decreases were mostly offset by a significant increase in event related revenues from other events.
Primarily due to Cirque Du Soleil successful holiday show.
High single digit percentage increase in revenues for.
Our group and our record setting year for the Christmas spectacular.
MSG entertainment ally of $103.6 million increased by $2.5 million, primarily due to higher contribution from other events and growth how group and the Christmas spectacular offset by.
Lower concert related results and the absence of contribution from the Wang Theater.
At MSG sports revenues of $316.5 million was slightly up year over year as growth in lead distributions and local media rights fees along with other net revenue increases was mostly.
Offset by lower revenue from other live sporting events and the decrease in sponsorship and signage revenue.
The increase in league distributions included the impact of growth in National Media rights.
The decrease in revenues from other live sporting events reflect fewer events held at our menus, partially offset by higher per event.
Revenue as compared to the prior year period.
The decrease in sponsorship and signage revenues was primarily a result of the expiration of an agreement with one partner and the timing of a renewal with another.
That said, we feel good about our outlook and expect sponsorship growth on a full year basis.
MSC.
Fourth ally increased $6.7 million to $55.3 million. This was primarily due to lower direct operating expenses, partially offset by higher SG United expenses.
The decrease in direct operating expenses, primarily due to a $23.1 million.
Increase in net provisions for certain team personnel transactions.
Partially offset by higher team personnel compensation revenue sharing expense and be a luxury tax and other team operating expenses.
Lastly, corporate and other adjusted operating loss of $31.9 million.
Increased $12.7 million.
The increase reflects higher personnel content development and technology expenses for MSC here as well as expenses related to the proposed spin off of our entertainment business.
These expenses were partially offset by a decrease employee compensation and other related.
Benefits in corporate.
Turning to our balance sheet.
As of December 31st total unrestricted cash and cash equivalents and short term investments were approximately $1.1 billion.
In addition, there had been no borrowings made under either at a $150 million New York ranges.
Revolving credit facility or our $215 million, New York credit facility.
With respect to Tao group during the quarter, how pay down approximately $16 million on its bank credit facility and as of December 31st at $36.3 million left.
Outstanding.
In addition at the end of December the Ace off company repaid the entire outstanding balance of $58.7 million on its loan from MSG.
And with that I will now turn the call back over to Ari.
Thank you Victoria can we open up the call for questions. Please.
Certainly at this time Truskin audio question. Please press star one on your telephone keypad.
Again that star one Truskin audio question.
Your first question goes line of Brandon Ross Ablation partners.
Hi, Good morning, guys a couple of question from London.
You mentioned I guess.
In the prepared remarks that there was enough or delay there maybe you could.
Eight us in more detail on the development in London since the last call and why there are the continued delays.
In that process and then if London.
We do actually proceed.
The information that you don't intend to finance the venue.
Your self.
Have you had conversations with.
Potential equity partners are ready or.
Or others.
The dance.
Building that you would that you would manage and kind of what your preferences.
And how to finance.
Thanks Brendan.
Let's start with your first question.
So.
The planning application process is always complicated.
No matter what type of venue or building your building we're building a very complicated.
New type of venue that has never been but that's never been built before in London, and we're just working through it.
Theres up the planning application process has slipped out of this quarter and we're continuing to work through local.
Others on with the planning application Tim and.
So, but we're making good progress.
In terms of your second question.
We're always looking for partners right. So it's always rose trying to bring up the right way to drive value and increase our shareholder and create value for shareholders.
Yes.
At this time, it's still early we're still working on getting our planning approval.
Got it thanks.
Your next question I was trying to Frank Goldberg of Bank of America.
Thank you I've got a question on the revised boss Vegas budget.
It's up about 38% or so from the 1.2 billion you disclose in August. So first question is.
You know what gives you confidence 1.66 billions right figure now and what are the biggest budgetary swing factors, we should be mindful of as the build progress is from here and then I've got to follow.
Yup.
Good morning, Brian.
So.
Take a step back over the past six months you know as Andy said, we've been working very closely with our design and construction teams to examine all of the underlying assumptions for both construction and the design of the venue.
And as a.
Most of that process, we identified significant savings relative to a comp initial benchmark estimate for hard construction costs.
But at the same time, we further develop the design of the venue and it included some various structural improvements.
We made enhancements to elements of the venues immersive technologies.
For example.
Expanding the display plane in the interior the bold and we make them other changes that we thought we are important for the inside on the exterior. This fear that we believe will greatly enhance the guest experience.
So while our overall design changes expanded our scope of work and.
Worried us to reinvest a portion of the savings we identified we believe they also greatly improve the venue and most importantly, as I said the you know the experience for our guests.
So.
And also just as a reminder, our initial estimate was based on schematic design and very different from our current estimate which is now almost in.
Hi, early based on detailed construction drawings and were and therefore reflects subsea reflects a substantial amount of work that has taken place.
And provide a much better foundation for estimating costs.
You know and while every construction project is complex we remain laser focused on managing every.
Aspect of the buildings costs.
Yes, I would also note we remain confident in the revenue an ally opportunities in Vegas.
Okay. That's helpful. And then my second question is on London.
Certainly appreciate that you're sort of mid stream with.
The London Legacy Development Corporation.
And in terms of getting the approvals in place.
From what we can tell you know the most recent revise set a plan.
Set forth you know a number modification.
To this fear in London.
Off like maybe it looks like a.
Mild throttling of some of the digital signage at the base the venue.
Among many other things and I'm just curious you know there's still seem to be some local objections and we'll just hoping you could frame for us.
How much more flexible can you be on the London design before you materially I guess alter the fear opportunity for that market.
So.
Okay.
We'll start actually the highest level, there's never been a venue that's ever been built that hasn't had local up objection anywhere in the world.
Okay. So start start with that as a basis. So of course, we're having objection because we're trying to do something slightly different.
Largely we find the it's been very very well supported by the local residents.
And.
So yes, we've made much milder modifications, but the truth is it will not affect our base business and not affect the revenue opportunities for the plant. We're very focused on what the sphere is and how we're going to drive our business, our sponsorship business or attractions business.
Driving utilization.
It was or what were focused on and if we can have those you will not builder.
Yes.
Great. Thank you very much.
Your next question comes the line of Michael Morris with Guggenheim Securities.
Hi, Good morning. Thank you I have a couple of questions on the post spin structure of the businesses.
And thanks for the incremental capital structure information that's helpful.
Can you share anything on the venue license agreement between the two new companies.
And any other intercompany agreements that may not be it's apparent but just how.
All of those payments might be structured going.
Forward and then also to be clear is that correct that sporting events hosted at the garden that aren't related to the owned teams.
The end suitably tournament for example that those types of events will be booked at the entertainment company not at the sports company in the future. Thank you.
Okay.
My pleasure I'm going to us over Lawrence Burian, Our general counsel, who has been closer on the agreements problem will take you through us.
Sure good morning.
As we've been finalizing all the key intercompany agreements for the Stan just stepping back for a moment a very important goal for us has been to structure them in a manner that.
Allows us to maximize the efficiency and the revenue opportunity for each company.
And to your specific question, we are largely following our current financials with just a couple of exceptions. The first as you noted is that the sports bookings business will be moving over to the entertainment.
Company those are just essentially a bookings of another type whether it be college basketball or otherwise.
The teams will be paying rent to the entertainment company, but will no longer be receiving an overhead allocation related to the atmosphere arena facility.
I'd like to note at the arena license agreements will be.
On an arm's length basis.
And.
Our just about completed and they've been determined through our discussions with the leagues, which have been very collaborative.
So to provide a little bit more detail.
We will have to arena license agreements, one each with the Knicks and Rangers and each agreement.
We'll have a term of 35 years with annual rent escalators, which for the sports company will ensure that the teams continue to play their home games that the garden and for the Entertainment company creates a significant and growing revenue stream.
He's agreements will also provide that each.
Our team will have 100% of the revenue and control of its ticket sales and that the entertainment company will be responsible for suites premium hospitality and shared enter into sponsorship and signage, but with the team is receiving a revenue share similar to our current financials.
Similar.
To our approach with the MSG networks, and we believe that having a centralized sales organization that sells across multiple assets for marketing partnerships and sponsorships maximizes the revenue opportunity for all businesses and minimizes the costs of redundant teams.
As a result, our plans structure is for the entertainment company to enter into an exclusive 10 years sales representation agreement with each of the Knicks and Rangers to sell those teams standalone sponsorship assets for a commission.
And of course.
There will be a transition services agreement for the entertainment company to provide at cost certain corporate services to the sports company.
So in summary, we.
We are pretty much done with all these agreements.
It will be summarized in our form 10 filings and we're very comfortable that.
These arrangements will be in the best interests of each company.
That's very helpful and just to be clear it sounds like.
The existing arrangement with the networks business, obviously independent but that will be similar post spin as well.
Yeah, the we're not anticipating any.
He change to the sale sponsorship.
Representation agreement of networks and the benefit is that you have one sales group that is able to sell across all those platforms and we believe that the the whole is greater than the some of the parts by selling it that way.
Okay, great. Thank you very much for that.
Your next question comes sign of Cowen know of Jefferies.
Hi, good morning, Thanks for taking my question.
If we can just go back to the Las Vegas fear for one second we certainly understand that construction budgets of this size could be always evolving, but maybe if you can just quite a little bit more detail on the revenue side and the AOL.
Side like.
You said to you.
Increased investments within the design phase can you just free just to your newer or new expectations for that type of return.
So qualitatively is fine too.
That's great.
Thank you.
Let me start we expect to very robust return on investment. We think this is going to change the entertainment landscape.
Building venue that's.
Never been built before.
It'll be the most highly utilized in our portfolio from a been count perspective.
Look there will be held strong focus on our traction business.
As part of the model because that will be able to allow us to drive utilization and have multiple shows a day, depending on the data the weak.
And the flow of tourism in Vegas.
We'll also be very focused on our concert residency business and our corporate events business, which we believe will be a very strong part of the portfolio given the loss.
Yes.
Appeal towards corporations.
And events during the week.
Our sponsorship business will be.
Unlike anything else in Las Vegas.
Both between what we could do in the venue and the ability to reach the type of consumer we expect to show up at or better.
And Las Vegas is a unique market with 42 million people.
24000 comp conventions with over six and a half million attendees.
We're extremely excited.
And we have an amazing partner next store at the Venetian what the Las Vegas Sands.
Who.
He has over 7 million people come every year to their resort and they're building more towers, we think we're in a great location to drive.
Very strong return.
Thanks very much.
Your next question going fine have been Swinburn of Morgan Stanley.
Thanks, Good morning.
Two questions I want to come back. Thank you for all the color on thinking about the two companies financials.
There was a lot of detail it sounded like if I heard you raise it the overhead will be entirely allocated to entertainment and that will the offset by rental payments from the teams to entertainment. So it sort of a push it if I Miss.
I heard you, but probably to clarify.
Just to clarify with the overhead I was referring to was the venue operations overheads. So the the entertainment company as the owner of the facility will be responsible for maintaining an operating the facility while the teams will be paying rent and consistent with our current.
Track. This the teams will continue to pay there Dave the game console to variable costs of the Dave game and that's already in arrangement I'm not going to comment at this time on whether it's exactly a push but our overall goal was not too.
With both to make sure that this was operationally ideal from a revenue and growth.
And operations perspective, and also not to do damage to the to the financials of the two companies.
Okay.
And then.
Maybe for Victoria Theres, a common in the release about.
The significant capitalize an expense content creation, an internal labor labor cost for sphere.
I think are not in the 166 I know, there's any way for you to help us think about sizing that or at least how much is being incurred today.
And for what the ramped it's just should we think about the entire project costs make sure we've got at all.
Roughly pin down.
Sure Ben happy too so.
Well, we provided you with Sofia.
As far as part of the cost estimates are really the bulk of the construction costs you know the hard construction costs, which would include things like basic things concrete steel plumbing AIDS factor systems. All of those things are included in the construction costs.
We've also included our what we're calling our core.
Knowledge, you costs that were procuring directly with the some of the very unique immersive features.
And a lot of soft all of really the soft costs associated with the construction are included design professional services project administration and management permits insurance fees.
So it's really they can.
The bulk of of all of the construction costs and yes. As you noted we do anticipate some significant additional cost is for example related to furniture and equipment, but when we plan, but we'll have more clarity on those types of costs once were a little further along in the construction process.
Regarding our.
Sense as we talked about previously we're building a venue that we believe will deliver this next generation of immersive experiences and a significant component of that will be original attractions.
We brought on team award winning creative who are currently developing our first attraction for Las Vegas.
One of the great advantages of Las Vegas, as Andy had just said, yes welcomes is 42 million visitors a year.
And for that reason, we believe our.
Planning for that Dave you transaction to have a long life.
We also believe that the show, which will utilize the Ben cutting edge technology to create this.
The new experience in live entertainment will become a must see event and that venue itself will be an attraction.
That's very helpful. Maybe just one follow for Andy on the bookings business any you mentioned a strong second half a particularly the fourth quarter, just if you step back and thinking about the industry, what's the sort of state of.
Both supply and demand for the concert business as you look out through the remaining of 22 remainder of 2020 at this point.
Are you talking on in our portfolio across the whole industry.
Mainly your portfolio.
Right, Okay, well as we said look we feel good about this quarter. This this year.
There was certain events that were supposed to be in the first part of the year that were shifted to later in the year.
I will say across the industry the touring business a little later this year than its couple of the big OXXO get on the road or on the road last year and next year will be a very strong year in terms of suppose a touring acts.
But as I said, we feel very good about our year this year.
Thanks, a lot.
Thanks, Ben operator, we have time for one last caller. Thank.
Thank you. Your last question comes line of John Belton of Evercore.
Hi, Thanks, everyone.
Talk a little bit more about Tao.
No.
Sounds like it's been performing pretty well over the last few quarters. So.
You can share on maybe future venue expansion plans from here and maybe how organic growth has been trending.
Correct me if I'm wrong.
Thank you you use the managed venue model for some time.
Locations before so what do you like about model.
What makes you think that that could be a good model for sphere venues down the road. Thanks.
So talk about growth there. The the team is incredibly growth focused but are always focused on finding the right location in the right markets.
And.
Do receive an incredible amount in inbound interest so it's about more about selecting where is the right place to go and what's the right deal rather than how can we just simply grow grow grow.
And we're very focused on having leveraging our infrastructure. So we're not.
Somebody uses a bone term book shotgun approach across.
The country, where you need to then bounce around the managed smaller venues that there's not that's not their philosophy im not our philosophy.
[music].
We think bigger bigger in White places is better.
In terms of loop today.
One of the other said a little bit to that May you you're right on that we.
I'm pleased with town performance.
You know the telco delivered strong overall growth in our second quarter, including high single digit percentage increase in revenues year over year and and their expenses were only slightly higher.
As other expense increases were offset by the absence of the preopening expenses related to tell.
The last year, when we think about the performance is how overall and.
[music].
We are very happy that the group revenues were up about 4.2 million year over year in this quarter and that's mostly due to the impacted the new venues that primarily how Chicago and the venues in Singapore, and we're really pleased with their performance.
So little partially offset by some lower revenues that at our other venues, including that we did close one venue in New York in January of last year. After a successful 15 year Ron.
But as Andy said, what's expected new venues and how group is always evaluating each opportunity on a case by case basis related.
The structure and our expectation is over the next several years open both managed and leased and U.S domestic and international markets.
And I will take a lot for your question about the town management, new model and how it.
So you know what similarities to what we're thinking about in.
Future for sphere.
I think it's we think incident.
Excellent example of a way to structure. A managed then you approach we verified.
Content, we provide expertise in terms of management and operations, we provide our IP.
Around brand around technology around how to actually build a sphere, that's never been done before.
And we'll find partners no we could find partners to fully funded or partially funded and we're evaluating all types of structures with one focus and one focus on that.
Drive shareholder value.
Got it thanks for the time.
Thank you at this time I'd like to turn the floor back over to our gains for any closing comments.
Thank you all for joining US we look forward to speaking with you on our next earnings call how the good day.
Good.
Bye.
Thank you that does conclude today's conference call you may now disconnect.