Q4 2019 Earnings Call
Welcome to the Hockey Group fourth quarter earnings Conference call. Your lots have been placed all listen only mode until the question answer session. Please be advised the conference is being recorded posting tonight's call and Mr., Ted Fernandez, Chairman and CEO and Mr., Robert Myris, Chief Financial Officer, Mr. Amir's you may begin.
Thank you operator, good afternoon, everyone and thank you for joining us to discuss the Hackett group's fourth quarter results speaking on the call today here to answer your questions or Ted Fernandez, Chairman and Chief Executive Officer impact groups myself, Robins mirrors, Chief Financial Officer.
A press announcement was released over the wires or four or five PM eastern time.
For a copy of the release please visit our website at Www Dot Hackett <unk> Dot com.
We will also placed any additional financial or statistical data discussed on this call that it's not content in the release funding on the Investor Relations page or website.
Before we begin I would like to remind you tend to follow comments and in the question answer session, we'll be making statements about expected future results, which maybe forward looking statements for the purposes, the federal Securities laws.
Estimates and projections are not a guarantee of future performance. They involve risks uncertainties and assumptions that are difficult to predict which may not be accurate actual results may vary. These forward looking statements should we consider oh wait in conjunction with a detailed information, particularly the risk factors contained.
As you Fox.
This point I would like to really take.
Thank you, Rob and welcome everyone to our fourth quarter earnings call as we.
Normally do I will open up the call with some.
Quarterly comments overview and highlights I'll, then turn it over to Robin ask him to provide some detailed comments on our quarterly results.
Cash flow as well as guidance.
Rob will then turn it back over to me to provide market. The strategic overview comments and then we will open it up acuity.
So let me first starting this afternoon, we reported net revenues of 63.7 million and for pro forma earnings per share of 24 cents, which were at the high and midpoint of our guidance respectively.
So I'll, let us performance was unfavorably impacted by weak international results consistent with our guidance, we took immediate steps to rightsize our international operations in an attempt to limited impact on our overall results going forward.
As a result of that review, we also decided to exit or Hackett Institutes analytics program. We wanted to make sure we are focusing our efforts and resources on the offerings in markets that provide us the strongest opportunity to grow.
Total Q4, U.S. revenues were up 8% inspite of the diminishing impact from the Oracle off premise revenue declines more importantly, it now appears at the headwinds from the Oracle on premise decline will be in material by mid year 2020.
The strategy business transformation activities continues to be solid as companies continue to pursue enterprise digital transformation initiatives.
In our E or air.
Pete E M analytics group, we saw strong growth in the Oracle cloud ERP multi tiered deals, which are larger and brought her as well as strong as a P. S. Four Honda activity.
Which continued to build throughout the quarter.
We also saw an emerging contribution from our promising one screen route.
As Rob mentioned these two groups or Eyedrop will mentioned these two groups are expected to grow 10% to 15% in the first quarter.
On the International front Europe continues to be challenging as we mentioned last quarter, the Brexit dispute and uncertainty affected client decision, making accordingly, we took the appropriate actions to adjust our costs to be inline with our current revenue and market demand and as I mentioned protect our overall results into 2020.
With that said recent reelection results should provide the clarity needed to allow business demand to return to more normalized level at the year progresses. However.
We know.
We will have challenging European comps impacting our total growth rate through the second quarter up 2020.
On the investment side, we believe the strategic investments we have made to fully digitize all of our IP. The development of our next generation benchmarking platform quantum leap and the introduction of our proprietary Hackett digital transformation platform or DPP highly differentiate our offerings and continue to be important dry.
Divers of our growth.
Additionally, our investments of smart automation, along with strategic relationships with rapidly growing procurement EM and RPX software providers also continued to be a key over to our of our strategy and digital transformation momentum. Some of these relationships are just starting to impact our revenue growth, but are important future drivers.
Our growth strategy on the balance sheet side, which we continue to generate very strong oh, we generate a strong profitability, but very strong cash flow from operation. This allows us to continue to increase our dividends buyback stock and fund acquisitions, while continuing to invest in our business.
Also comment further on strategy and market conditions, but let me first ask Rob to provide details on our operating results cash flow and also comment on outlook Rob. Thank you Chad. So typically do I'll cover the following the topics. During this portion of the call I'll cover an overview of our 2019 fourth quarter results along.
With an overview of related key operating statistics.
Review of our cash flow activities during the quarter and I'll, then conclude with the discussion on our financial outlook for the first quarter of 2020.
For purposes of this call I will comment separately regarding the financial results of our strategy and business transformation group or SMB team.
And our E. R. P M analytic solutions group or EPA, and our international group and the total company.
Our SMB group includes the results of our North America IP as a service offerings, which include our executive advisory programs at benchmarking services and our business transformation practices.
He solutions group includes the results of our North American Oracle and they say Pete solutions practices.
Our International group includes the results of our SMB T. In our year groups that are based primarily in Europe.
Please note that this differs from how we've commented in the past when we grouped all international practices within our SMBC group.
We believe providing international results separately enhances our current year reporting given volatility in Europe.
In addition, please note that all references to gross revenues in my discussion represent revenues, including Reimbursable expenses and any references to net revenues represent revenues excluding reimbursable expenses.
As previously discussed we exited our European based Oreo working capital practice at the end of 2018.
Continues to be accounted for as discontinued operations and our financial statements.
Additionally, references to pro forma results exclude noncash stock compensation expense intangible asset amortization expense.
And other nonrecurring adjustments and assumes a normalized long term cash tax rate of 25%.
As detailed on the accompanying tables of our press release.
Acquisition related compensation expense adjustments, our cash and noncash items related to the portion of the purchase consideration for acquisitions, which are reflected as compensation expense under GAAP.
Moving onto our fourth quarter for the fourth quarter of 2019, our net revenues from continuing operations increased by 3.5% to 63.7 million when compared to the prior year.
And was at the high end of our revenue guidance range.
The Q4, 2019, Reimbursable expense ratio and net revenues was 8.4% as compared to 8% for the fourth quarter over the prior year.
Reimbursable expenses are primarily project travel related expenses pass through to our clients have no associated impact for marginal profitability.
Including Reimbursable expenses company gross revenues from continuing operations were 69.1 million in the fourth quarter of 2019.
Net revenues for our SMB T. group were 25.9 million in the fourth quarter, an increase of 5% than a year over year basis, driven by solid results across most of the practices.
Net revenues for Iot solutions group were 30.5 million in the fourth quarter, an increase of 11% on a year over year basis.
This was driven by strong growth from recipe once dream and Oracle ERP practices.
Specific to our US we'll practice will be a our cloud revenue growth was in excess of 30% or year over year basis, resulting in the improved mix of cloud on premise implementation revenue, which is now approximately 75%.
Equally important our remaining on premise implementation revenues continued to stabilize reducing of the unfavorable impact on growth.
Net revenues for International group were 7.4 million in the fourth quarter of 2019.
A decrease of 22.5% on a year over year basis ex expect as we expected and discussed in the previous quarter.
Total company International net revenues accounted for 12% of total company net revenues in the fourth quarter as compared to 16% in the fourth quarter of 2018.
Our recurring revenues, which include our executive a best practice advisory and they invest groups accounted for approximately 20% of our total company net revenues and approximately 29% or total company pretax practiced profitability in the fourth quarter of 2019.
Total company pro forma cost of sales, excluding reimbursable expenses totaled 38.6 million were 60.6% of net revenues in the fourth quarter of 2019.
As compared to 36 million were 58.4% of net revenues for the same period in the prior year.
Total company consult head count was 990 at the end of the fourth quarter as compared to 1036 in the previous quarter and 984 at the end of the fourth quarter of 2018.
Total company pro forma gross margin was 39.4% of net revenues in the fourth quarter as compared to 41.6% in the fourth quarter of 2018.
As an boutique gross margins on net revenues was 49.1% in the fourth quarter as compared to 48.2%.
Fourth quarter of the prior year.
The margin increase was primarily driven by higher revenues during the quarter, partially offset by increased headcount related costs.
He eight gross margins on net revenue was 33.4% in the fourth quarter as compared to 37.6%.
Fourth quarter of the prior year.
The margin decrease was primarily driven by revenue increases that were offset by increased headcount and higher utilization of subcontractors in the quarter as well as decreased revenues from S&P software sales, which carry a higher gross margin.
International gross margins on net revenues was 30.6% in the fourth quarter of 2019 as compared to 36% in the fourth quarter of the prior year, primarily driven by revenue decreases in the group as we've discussed.
Pro forma EPS Gionee was 14.8 million in fourth quarter as compared to 14.4 million in the previous year and represented 23% of net revenues in both years.
Pro forma EBITDA in the fourth quarter of 2019 was 11.2 million as compared to 11.9 million in the same period of the prior year.
Represented 18%, 19% net revenues respectively.
Total company pro forma net income for the fourth quarter of 2018 totaled 7.7 million or 24 cents per diluted share, which was at the midpoint of our fourth quarters guidance. This compares to pro forma net income of 8.4 million or 26 cents per diluted share in the fourth quarter of the previous year.
Our pro forma return on equity was 25% for the fourth quarter of 2019.
GAAP diluted earnings per share was seven cents for the fourth quarter of 2019 as compared to no cap or in the fourth quarter.
This year.
GAAP results for the fourth quarter of 2019 include a three point Threemillion, we're nonsense restructuring expense primarily related to severance costs related to the reduction of staff in Europe, and Australia and include 1.2 million worth three cents expense related to the right kind of assets and our investment in there.
Hackett Institute's enterprise analytics program.
There were no GAAP earnings in the fourth quarter of 2018.
As a result of losses recorded from discontinued operations and the write down of assets relating to HPV that we recorded last year.
The company's cash balances was 26 million at the end of the fourth quarter of 2019 as compared to 16.4 million at the end of the previous quarter.
The increase in the fourth quarter was primarily attributable to strong cash flow from operations.
Which was partially offset by debt repayments stock repurchases ergo settlements and capital expenditures.
Net cash generated by operating activities in the fourth quarter of 2019 was 15.8 million.
Which was primarily driven by net income adjusted for noncash items and decreases in accounts receivables.
Our DSO or days sales outstanding at the end fourth quarter of 2019 was 66 days as compared to 72 days at the end of the previous quarter.
During the quarter the company fully repaid the outstanding balance of 2.5 billion on credit facility.
During the quarter the company repurchased approximately 148000 shares of the company stock.
Total cost of two point Threemillion.
Or an average cost of $15.34 per share.
Subsequent to the end of the fourth quarter and his most recent meeting the board of directors authorized a 5 million dollar increase to the share repurchase program.
Additionally at his most recent meeting the company's board of directors approved an increase of the company's annual dividend from 36 cents per per share to 38 cents per year to be paid semi annually.
I will now turn to our guidance for the first quarter of 20.
Before I do that I would like to remind everyone of the seasonality for business relative to cost as we move sequentially from Q4 to Q1.
Specifically consistent with first quarter guidance provided in previous years, our first quarter guidance of 2020.
The sequential increase in us payroll related taxes, and the sequential buildup of our vacation accruals.
The company estimates total net revenues for the first quarter of 2020 to be in the range of 65 to 66.5 million.
On a year over year basis, we expect North America.
Actually we tend to be up 10% to 50%.
As it benefits, 3% from S&P software sales.
We expect international be down approximately 25% to 30%.
As we expect the impact from Brexit to continue until the second quarter due to unfavorable 2019 comps.
The company estimated gross revenue to be the range of 70.5 million to 72 million.
Gross revenue guidance includes an estimated 8.5% reimbursable expenses.
We expect our pro forma diluted earnings per share. The first quarter of 20 22 billion range of 20 325 cents.
Behind the this range.
At the high end of this range just would represent a year over year increase in pro forma earnings per share or approximately 14%.
We expect pro forma gross margin on net revenues for the first quarter to be approximately 38% to 39%.
Gross margins for the first quarter or somewhat tempered due to the ramp up of headcount and utilization of subcontractors associated with revenue increases in North America.
We expect pro forma as Gionee and interest expense for the first quarter to be approximately 15 million.
We expect first quarter pro forma EBITDA on net revenues to be in the range of approximately 16% to 18%.
We expect cash balances, excluding the impact of share buyback activity to be done on a sequential basis due to the payment of 2019 performance related bonuses.
Payment of the fourth quarter dividend Declaration that was paid early in the first quarter. When 20 in the payment of employee income tax withholding triggered by net vesting of restricted shares at this point I would like to turn it back over to Ted.
You are market outlook and strategic priorities for the coming months.
Thank you Rob.
As we look forward the investments we have made in quantum leap our digital benchmark as a service platform has allowed us to further differentiate hackett as the global enterprise benchmarking leader.
As I've mentioned previously this new platform allows us to deliver more information with significantly less client effort. It also allows clients to leverage our IP to frame and track transformation initiatives over the life of that we expected.
Respective effort.
We believe that there is no comparable platform in the market.
We also released our digital transformation platform or DTP to further differentiate our unique IP and related capabilities DTP allowed us to fully digitized our best practice IP and aligned proven software configuration and organization solutions to help clients drive transformational change.
He has been instrumental in many of our recent business transformation as well as cloud implementation wins.
These investments along with our Oracle ERP and our PVA investments to name a few have allowed us to position ourselves for the digital transformation era with that said with that as a backdrop. We're excited about our prospects for 2020, So let me share some of the reasons why.
The I'm trying to win headwind should be substantially gone by the end of the second quarter and we have now address the volatility in Europe. We believe both the 10 BT and EE businesses in the U.S. should continue to grow throughout the year. Additionally, as the Europe impact fully subsides.
Midyear, so should our total company revenues grow at our 5% to 10% long term revenue growth rate.
Within the strategy and business transformation, the benchmark that benchmarking and executive advisory practice strengthened by quantum leap and DTP are considered our wedge offerings and they are good indicators of the momentum of the business in 2019, both of these practices in the U.S. had revenue or.
CV or on an annual contract value growth in excess of 10%, which we believe bodes well for the rest of the businesses and 2020.
Within our EA group, our Oracle ERP acquisition on the West Coast to coast has been fully integrated and grew strongly in 2019 led and let the momentum of larger and broader Oracle deals. Given this success were aggressively looking for ways to expand our Oracle ERP capabilities on the east coast.
Our S&P business also finished the year strong and has great momentum into Q1 of this year.
Also last year, we launched a one screen EPM practice it within the first 12 months, we've already achieved platinum status consistent with our growing market success.
Relative to Europe, we believed that the election in the UK and the phase one trade deal with China should provide the stability for increased business demand, which should begin to be accretive in the in the back half of the year.
On a long term basis and as you've heard me repeatedly mentioned the rapid development and digital transformation, along with emerging enterprise cloud applications workflow automation process mining and artificial intelligence is dramatically influence in the wake businesses compete and deliver their services traditional sequential.
And linear based business models are changing to fully digital and dynamic automated workflows and events with enhanced intelligence digital transformation is redefining entire industry at an accelerated pace, forcing organization the fundamentally change and adopt these new capabilities in order to remain.
And competitive.
Strategically our focus is to continue to build our brand with our new offerings and capabilities focused on digital transformation around our fully digitized an unmatched benchmarking and best practices intellectual capital. This should allow us to serve clients strategically and whenever continuously.
Given the success of our existing partner initiatives and the improved functionality, we continue to add to our quantum leap in digital transformation platforms. We believe we will attract other strategic partners to similar programs, we continue to launch paid.
Pilots initiatives, when new partners and will that will further demonstrate our unique capabilities that unmatched credibility that our brand brand brings to our digital transformation business case assessments.
We now have nearly 1000 clients with access to our IP platforms across our executive advisory and other IP as a service offerings.
Lastly, even though we believe we ask the client base and the offerings to grow our business. We continue to look for acquisitions and alliances that strategically leverage our IP.
And at scope scale and capability with our accelerated growth.
As I've mentioned, expanding our Oracle ERP capability and some of the other technology.
Areas, which we've been aggressive with our prime targets for us in summary, even though the weakness the weakness in Europe unfavorably impacted our quarterly results, we took the necessary steps to address its impact on on our continuing results. We continue to build our momentum in the U.S., which has allowed us to resume our growth not only.
In this quarter, but more aggressively into Q1 this progress demonstrates the investments we've been making.
Around digital transformation and expanded cloud smart automation.
And our IP as a service offerings continue to provide us with highly differentiated offerings and strategic access to most of the leading global companies as always let me close by thanking our associates for their tireless efforts and always urge them to stay highly focused on our clients our people and the exciting opportunities available to our organization.
Yes.
Does conclude my comments, let me turn it over to the operator, and let us move onto that Q and a section of our call operator.
So let's now open for questions. If you would like to ask a question over the phone. Please press star one and record your name if you'd like to withdraw your question press star to thank you.
First question the cues from Andrew Nicolas with William Blair. Your line is now open.
Hi, good afternoon.
The European cost cutting initiatives in their view mirror and what sounds like a very strong demand backdrop for the US businesses I was hoping you could talk little bit about how you're thinking about headcount growth.
Both from the first quarter and through the rest of 2020.
An excellent question if you if you look at.
Some of the comments that Rob mentioned as when he provided guidance.
We grew head count a pretty aggressively.
As the year ended you may not see that because some of those increases in the us were offset by the decreases in Europe.
They continue into Q1, so of we're placing of we're placing a significant bet that the increased.
If you want to call it headcount costs that were incurring in Q1.
We'll continue to pay off.
Through the balance of the year, though no. It's a very important part of what we're doing and even though we had to take those reductions in Europe.
We've been equally aggressive.
Add headcount in the U.S. across both groups.
Great and then just with respect to the European business and kind of a post Brexit.
Marketing environment can you speak a little bit more about the client conversations you're having client behavior general demand trends I know it sounds like.
Do you expect some of those headwinds to kind of dissipate over the first half of the year. So you can grow into the back half. So I'm just curious what gives you confidence in that.
Acceleration overtime.
Well part of the confidence that we have is the fact that historically we've had so much success in that market and that we believe that some of the disruption that we felt specifically we do so much transformation or an organizational work, we really believe that some of that aereo is probably hurt most by some of the indecision.
Of what Rex that would mean relative to organizing a whether it was across an entire.
Of company versus having unilateral agreements, which we'll see how it plays out here very quickly what lower I guess pleased I don't want to say happy about we're pleased to see it that there appears to be a clear direction as to the outcome and therefore it allows these companies to start planning.
On off if you want to call out on a current market basis.
We believe that declined conversations are improving and at the that activity is improving our consistent with the clarity and direction. So we as I mentioned, we would expect a European results.
To benefit us in the second half of which.
There are clearly hurting us in the first half of the year.
Great. Thank you.
And once again, if you would like to ask a question over the phone. Please press star one and record your name. The next question the cues from George Sutton with Craig Hallum. Your line is now open.
Thank you Ted I wondered if you could give us a current breakdown of where we are.
With respect to Oracle on the cloud versus premise.
What kind of growth rates are we seeing in the cloud what kind of declines we've seen in the premise you mentioned that we should see that had been headwind abates.
By the end of Q2, just if you can give us a little more detailed or that'd be helpful. No. It's very important question, George, especially given a exactly the the impact of the transition were experiencing.
Not only slightly in Q4, but we're experiencing in Q1.
The Oracle cloud growth continued to be in excess of 30% in the quarter.
Which we were happy to see and the on premise decline in the quarter in the fourth quarter was still pretty significant on a year over year basis, but when you look at the changes in the on Prem.
Revenues from Q1, all the way through Q4, the changes were really very nominal so what happens as we moved from Q4 to Q1.
We've seen that.
For example in Q4 the on Prem decline on total results was still in the 3% to 4% range and in Q1, we believe that percent will be about half of 1%, which means that we're asked that a critical juncture, where not only cloud revenue growth is benefiting but the stability the prime what remains in the.
The on Prime which as you know is.
Significantly lower than it was last year in the year before in the year before that.
We will no longer continued to be a headwind so the headwind is.
Probably not even worth mentioning on our Q1 guidance. So we didnt, we actually say that we we actually said that into all the way for Q2, just because we know we have some oracle on Prem amex activity, which.
Which runs out in June so we make the midyear comment about beyond Q2, the amount being.
Totally and material, it's only because we know that there's some things that are still playing out in Q1 in Q2, but the relative.
Impact on our total consolidated results boy that that when both from three to four negative to help our percent in Q1.
We believe that will be virtually little to none in Q2 and then it's.
Just totally gone are fully immaterial beyond Q2 is great to note and as as you can imagine it allows than the growth not only an oracle to play out which is important but it's also being.
As they further supported by the growth in our S. Four Honda S&P business and our margin one screen business. So.
Look.
Very good trend for us and obviously delighted to see that on prime and ample as I referred to at Jochen Lee for Awhile.
Really become virtually have no way.
Thank you you called out two things in your other highlights in your press release and I just wanted to see if we get a little more clarity.
First you mentioned the you were doing a lot of research in the smart automation technologies area, including our PPA and others can you just give us a sense of how significant that is to your total offering or how is that being integrated into your deals and then you also called out one stream and I just wondered if you can give us a sense of the scale or.
Scope of that.
Opportunity.
Well on the first as you know the RFP a capability on a pure standalone basis, we don't we still don't consider material to our total result, but the integration of that capability in our virtually.
Every.
Strategy and business transformation initiative is that requirement. So it's a critical must have the understanding in the influence so strategically critical.
Revenue scale wise on a separate basis are still not material.
The one screen business is a different story I mean this is a group that we started less than a year ago.
As you know and.
We've had as I mentioned on and I'll stick to my transcript.
We've had enough market success for for us to reach the platinum status and I can tell you that in the Q1 growth that we're reporting which is meaningful.
That one screen.
Growth that growth grocery revenue.
As meaningful to that total revenue growth rate and I'll leave it at that.
Thanks, guys.
Next question in the queue is from Jeff Martin from Roth Capital Partners. Your line is now open.
Thanks, Good afternoon guys.
Hi, Jeff.
But I don't if you could elaborate on the 10% contract value growth, you're seeing is that an uptick acceleration and what do you think is gardner.
Well, what's what's driving it is it's not only in improved focus and performance of our team, but I I really believe and as you know I've been signaling.
Appropriate for quite awhile.
That by digitizing and being able to deliver IP, our IP more efficiently either a through the utilization of quantum leap, which means we have more data capture and more insight to share also facilitating the way we share IP through the our digital transformation platform those investments.
As we go to market with clients even in the research Advisory group are becoming really the way we fully to lever those executive advisory offerings. So we're going to continue to rely more strongly on our clients being able to access Hackett insight through those.
Platforms I believe that that's having an impact and obviously if I didn't give credit to our team's execution and focus and performance at just would simply be wrong.
Okay, Great and then on the prepared remark surrounding Oracle ERP, you mentioned in larger and broader deals is that in cloud is it across the board and does that if its cloud does that imply we could see some acceleration of growth there and plenty plenty but.
It.
It's clearly the mid the overwhelming majority of the pipeline is cloud.
So I will say.
Substantially cloud.
And.
Yes, I mean look Oracle made a decision they didn't want it to lead with its ERP offerings and then allow all of the other capabilities like M&A HCM.
And CX to then be sold along with or through an ERP relationship. So we've seen that as we followed their strategy and that investment in the West Coast acquisition that you know we made a couple of years ago.
Has become increasingly important to to our wins, especially the larger wins and and then more importantly.
That boy, if we could replicate that capability to the east I take it would really.
The strength and accelerate our ability to grow our revenues broadly and in that clearly a primary focus of ours.
So over the next couple of quarters to see how we do that.
Because where were disproportionately successful in the west coast and is clearly attributed to the combination of our ERP EPM bundle and.
We'd like to replicate that as closely as we can't have the east coast.
That was my final question.
Planning capabilities on the coast has that gone through acquisition are you able to to leverage leadership.
And yeah accelerate more greenfield base the answer it so probably be Paul we're pushing on both heart.
Okay. Good thank you very much.
Next question is from Vincent Colicchio with Barrington Research. Your line is now open.
Yeah, Ted and your prepared remarks, you said.
Regarding net EA that these two should grow 10% to 15% Q1, I wasn't sure what you're referring to.
That's correct the our US group, which includes both our strategy and business transformation as well as our E groups will grow somewhere in the 10% to 15% range in Q1.
Okay.
And then.
Did the IP business meet expectations in the Q4 and could you characterize the type of growth we could see into 2020.
You know that will be dependent on the same comments I shared on the.
On the call we have.
An increased number of pilots have paid pilots going on across.
Multiple industries and users.
Somewhat surprising in terms of.
Where the where this capability has gone so.
Any any of those any of those pilots.
Driving into a broader long term relationship with significantly.
Increase the IP as a service growth in 2020 so.
We're sure working hard to make that happen.
And Rob just.
Housekeeping, so to speak of capital spending what was that in the quarter.
849000.
Thanks, that's it from me thank you.
At this time I show no further questions I would now like to turn the call back over to Mr. Fernandez.
Thank you operator, well those are conclude our comments and questions. We look forward to updating everyone. When we report again, when we report our first quarter results.
Thanks again.
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