Q1 2020 Earnings Call

Oh participants please scanbuy your conference it's ready.

Good morning, ladies and gentlemen.

Into the first quarter 2020 conference call for more no Chappelle, Inc. Please note that this conference call will contain forward looking statements, which reflect management's current belief and expectations regarding the corporation future growth.

Of operations.

Results can differ materially from those anticipated.

Oh, you know like to turn the meeting over to Mr. Speed trap, President and Chief Executive Officer of Mortal Chappelle, Inc. Please go ahead, Mr like trap.

Thank you.

Good morning, and thank you for joining us today on the call with me today is Greer culture or Chief Financial Officer.

Yesterday after markets clothes, we release mortal spells financial results for the fourth quarter of 2020.

Like always you can access the news release financial statements and R.M.D.N.A. on her website at mortal Chappelle Dot com.

Later this morning as you know, we're holding our annual shareholder meeting starting at 11 am Eastern time shareholder meeting as being held virtually because of measures designed to limit the spread of cold at 19.

At that time.

You're reporting on how the company performed in 2019, and then turn into our strategy going forward as a power plant in employee wellbeing.

So for those of you not dialing into the annual meeting in the next few minutes I will briefly talk to our strategy after reviewing our first quarter highlights.

Greer will then cover off or financials for the quarter and then as usual we will open a call for questions.

As we noted in earnings release, we're please buy are starting to the year, especially given the economic shutdown that started in March related to cold at 19.

As Greer will cover results were in line with our expectations coming into the year.

We're especially pleased by how our people came together early in the crisis to rapidly activate or business continuity pandemic plan like quarter end almost 100 per cent of our employees were working remotely with all of our business metrics and systems operating a pre pandemic levels.

Economic shut down affected some aspects of our business where services provided in person stopped immediately.

For example in person training.

Children support solutions AD hoc pension consulting and some on site pension administration work.

At the same time other areas expanded rapidly such as adding lies to our employee and family assistance programs or F.T.P. for some clients to cover new employees and or digital I.C.B.T. solutions.

With a vast number of clients in N. users are data shows another view of the impact of covert 19. For example, we have seen a tenfold increase in the use the internet based cognitive behavioral therapy.

Power D.L.E.D.C.B.T.'s solutions with a particular focus on anxiety.

Disability cases of doubled.

Sadly, we've seen a 30% increase in suicide risk as well as a dramatic increase in cause relating to domestic abuse.

Has been at 21% increase in financial stress.

More than a quarter 28 per cent of all calls are related to cope at 19.

To support changing needs, we quickly lunch new products to help our employees and society.

These include a new version.

C. B T solution that we have targeted to mental health issues related to covert 19.

As well, we bumped up a retirement solutions approach by targeting clients, who are concerned that pinch and planning scenarios, which is more pressing with the market volatility we will be living for a while yet.

I thought I'd take a moment to share a few client specific examples of a rapid response to new to the new needs in the market related to cold at 19.

In March the province in Manitoba selected asked to provide our ability C.B.T. program to all residents of Manitoba over the age of 16, who are struggling with anxiety cause they called it 19 pandemic.

This week province of Ontario, and now it is also providing hour hi, C.D.T. service to <unk> over the age of 16.

A fortune 100 construction equipment manufacturer doubled the number of employees covered under their employee assistance program on the life works platform, making R.E.S.A.P. the first global benefit available to all their employees.

Whenever large energy sector E.F.T.P. clients based in Alberta, who traditionally offered a standalone E.S.A.P. two employees in the United States in Canada recently upgraded to the life works platform and decided to also extend this benefit to their employees throughout the Caribbean significantly increasing the number of lives.

Covered two over 22 countries in the region.

By way of note the number of employees on our client base Lifeworks platform increase from 2.2 million to 2.8 million.

Receive really good feedback on the use of the solution to deal with social isolation, you know work from home World.

Finally, one of our larger clients in Ontario responsible for administering the pension plan of the provinces healthcare workers told us at our ability to get our business continuity plan operational. So quickly played a key role in getting there's up and running with close to 100 per cent of their stuff.

Working from home on our systems.

Another notable development was our lunch of or monthly mental health index in April.

The index tracks, a wide range of doctors about our state mental health and wellbeing in Canada.

States.

Kingdom and Australia.

We anticipate the index will become global benchmark for mental health as he authoritative voice on a macro social economic issues much like the consumer price index or P.H.D.P. jobs report.

As a company that takes his community responsibility seriously. We're pleased to launch well can I unique initiative, leading Canadian businesses and organizations to support Canadians through this unprecedented crisis.

Well can website immobile AP offers every Canadian access to a broad range or free resources to support their mental health and wellbeing.

More than 50, leading partners community and corporate have come together to support this initiative paint sharing the message of support makes his way to all Canadians.

We're hopeful well can we make a difference in the lives of Canadians do otherwise might have fallen through the cracks.

Well, there I know ones about the economy, we have confidence in our resilience as a business today and tomorrow.

At this point in the year, despite coping 19 or businesses are performing solidly.

And our sales funnel continues to be strong.

Arguably our technology enabled H.R. solutions have never been more relevant in today's workplace.

Organizations everywhere today are struggling to support the wellbeing up their people and they're meant to haul.

Moving forward, we're focused on three grow strategies to be the clear leader in our businesses to own the well being space.

To accelerate grow through U.S. in global expansion.

And to drive World class delivery through people and technology.

On that note Greer Coulter, we'll reviews of financials.

Thanks to even on good morning, everyone.

For the reasons Stephen mentioned, it was a solid quarter financially and in line with management's expectations.

We delivered strong revenue growth of 38.4 million to 243 million.

0.7% increase over last year.

The growth is primarily due to revenue from the Mercer acquisition, none of the death divestiture of our benefits consulting business with strong organic growth in the U.S.

Overall organic growth for the quarter was about 2% and slightly under our expectations.

Adjusted EBITDA increased by 5.8% to 47.3 million.

Versus 44.7 million last year.

That was also primarily due to the Mercer acquisition.

Are adjusted Avatar margin was 19.5% versus 21.8% last year.

This margin percentages in line with what we have experiences Mercer acquisition and in line with our expectations, which reflects the sale of the health benefit consulting business, which was higher margin.

Adjusted EBITDA opera share 68 cents.

System with the same period in prior year.

Regenerated higher Abbott, but how to hire share account due to the conversion of a convertible the ventures.

Profit for the period was 38.9 million.

8.7 million last year.

Increases mainly due to the gain on a disposition of our benefits consulting business. So hub international for 70 million and earnings per share for Q1 was 56 cents compared to 13 cents per share and Q1 2019 as a result.

Normalized free cash flow for the period was 27.4 million.

Pair to 24 million Q1, 2019, after adjusting for cutbacks related to the Mercer integration.

Subsequent to court ran the company entered into an amended credit facility agreement.

We obtain an incremental hundred million of committed capacity for one year and improved our debt habit or financial covenant.

Germane at four to one until maturity of the credit agreement.

[noise], we proactively drew down our credit facility at the beginning of the covert 19 crisis to give us time to assess various scenarios and increase the size of our facility and improve covenants.

Accordingly, it was fully drawn a quarter and.

And we have sense repaid.

Excess amounts down.

[noise] overall and strong quarter in view of the economic shut down that occurred beginning in early March.

And we are very pleased with the corridor.

Thank you and I'll hand, it back to Stephen.

<unk>.

I'd like to think everyone on the call for your time, so far today, we'd be pleased to now answer your questions. Atlanta. Please go ahead and open the line.

Thank you.

Star why.

If you have a question there will be a brief possible dispensed register thank you for your patience.

The first question it's from Nick.

The M.L. capital markets.

Okay. Thanks money.

That's when it started the question on the organic growth in the quarter I think we're in your comments you alluded to it being approximately 2% sounds like it was a little bit stronger in the U.S. in Canada.

The baseline or geography that really stood out to you is significantly above or below average in terms of your every year organic growth.

Yeah, Steven here I'll start and they grew might want to weigh in on I think the easiest way to think about this is we had very strong organic growth in the U.S.

We were obviously much lower than that in Canada, and that really was related to a lot of the services that stopped immediately would have all been in Canada. So when you think about I consultants in retirement solutions going on site and providing some of those services you think about our children support solutions.

You think about our in person training all of those services take place in Canada.

Whereas the growth areas that we've been focused in in the U.S. has more per employee per month and those type of growth areas.

Okay, Okay, very good and then.

A little bit of color there was some language in in your disclosure a new year P. system implementation I could ask is very they're plant budget for that project and how long would we expect to see those that could be a little bit elevated here.

Yeah, I know it gets greer so.

This is a a work day implementation and the combination of refuse to work day and consultants that will help us implemented in total it'll be about 20 million.

This'll take us we originally kind of thinking 18 months, we're still pushing for without plan, but I think we need to be realistic you know been maybe kind of 18 to 24 months and try to keep it to 18. So total total 20 million think of it spread over.

2020, and 2021 and 50 per cent of that spend we think will be caught box and 50 per cent of it will be <unk>. So I think when you look at the amounts going through that you know and adjusted out it'll be anywhere between a million and a million and a half per quarter.

Okay got it got it that's helpful. And then one final and for me before I passed line. There were some further integration costs and a little bit of elevated cap x. associated with the Mercer integration that was recognized the quarter. When when you click those expect to start to taper off because there's still some investment that you think would be required for the balance of the year.

<unk>.

Yeah. So if I look at the the to the on the life work side. We would expect these these will be coming to an end really the the last couple of things are just coordinating some some day to day operating systems. There was always part of the plan and we should see that kind of come to an end at the end the queue to Mercer will continue throughout the year, but I'd say.

Heavier on the front end and it's really just you know taking not business and you're removing it from the large organization and getting it up and running but.

You know continue through the year, but it'll be heavier in the front end.

Okay got it alright, thanks very much.

Yeah.

Thank you.

The next question is from Stephanie price with C.I.D.C. Please go ahead.

<unk>.

It's just following on the last question around cap X., just wondering how you're thinking more broadly about cat back in the current environments as any plans to reduce any cutbacks and maybe related how the enhanced wellbeing pot for <unk>, it's progressing and whether it's still on tracks just given the coverage impact.

Quarter potentially.

Hi, Stephanie screw, maybe I'll start with the first part of that and then pass it over to Stephen So our view has been you know we're we're fully operational you know, we're we're continuing to air suppliers on time or continuing to pay or or people in full we've made no cuts on that front.

And you know, we're continuing to invest in cutbacks as planned for the future. So we've made no changed our Catholics plan and we continue to to go full on those those investments for the future maybe I'll Passover Stephen for the second part of that yeah. When we think about the well being platform Stephanie were quite pleased that in the quarter.

We're on transitioning people over to the court platform. You know we moved from the ended last quarter, where we out of the 2.2 million sitting on the court platform up to 2.8 million and participants we are tending to see that 10% of that number sitting on the total wellbeing platform, we've pivoted a little bit in the quarter, where we.

We are rather than selling the total wellbeing platform, we're allowing organizations to pick up different modules and we'll charge. It differently for those modules. For example, a lot of organizations are very interested in the recognition module related to people being at home and feeling social isolation and things like that so I continued.

To move forward and I can tell you for our own employees. It has been an absolute a wonderful tool to be able to communicate during the crisis and get people engaged in feeling part of the community.

Great. Thank you and and thanks to the color as well in the client side conversations on a different business lines based on the clutter gets wondering if you've seen any change in quite complications in April and how how clients are kind of thinking about the environment hearing whether some distant fines or staying with the puts and takes between.

Yeah, I think a couple of things are interesting is I think about it. So I would describe it you know marketing and and number of things as I mentioned stopping immediately again you'd think about the in person training thinking about the children support you think of that are actuaries, who were going on site about to do meet with companies and create.

Plans around how to look at pension plans and you think about some of the pension administration work and literally overnight all those things stopped.

I think our folks got really creative and said there are a lot of societal issues starting to hit we need to figure out how we deal with employees facing stress and anxiety relating to the pandemic, which is why we live C.I.T.V.T. solution for anxiety.

Provinces and different governments or figuring out how to help and consumers and people in society, which is why <unk> was so early around our solution in Ontario has since followed and there's a lot of other conversations going on and then on the other side.

No not all but a number of our pension administration clients I got up and running in April and said Hey, that's working remotely thing works and we should be able to continue development are in our retirement solutions business. We had a number apply and say okay. We know we stopped.

I'm talking to focus on immediately consulting in March. However, we are seen a lot of market volatility that's got a lot of impacts to our pension plan I, let set up an arrangement on a remote basis. So I I would say March a whole bunch of things stopped we got creative created to new stuff April where.

Seeing people getting back to normal in terms of how they're working.

Great. Thank you very much.

Thank you.

Next question is from team with National Bank Financial Please go ahead.

Yeah, Thank you and good morning.

<unk>.

I was just hold off on that a lot conversation them around the work ethic route is there.

Given that this was just one <unk> March or shut down then it sounds like sound that's coming back online is there any risks that there is.

There's enough of a headway to hear that would drag organic growth either fly to our negative where there are other offsets coming in that.

In the pipe from that shifting and pay the day now that have client demands.

Yeah. It's a really good question Jaman, one that we're very close to and gives you can imagine you know we spend time on our business metrics every single week and we look at those things you know I will start by saying over the long term.

We don't see a change to you know mid single digit growth in Canada, and slightly higher than that in the U.S. and global.

We are U.S. organic growth was very strong in the first quarter in in line with what we've seen before which is really good.

As I mentioned, the things that slowed down or stopped in March for US I think we'll come back to some extent there would probably it will be last in person training, but we're we've ramped up and we're starting to deliver more virtual training.

Admin solutions, you know, we will do a number of projects I remotely, we'll there'd be one or two that maybe slowed down highly possible on the other side, though.

We're very excited about rolling I.C.B.T. demanded tell her rolling out I.C.B.T. to Ontario, and and number of other conversations. So at this point in time, and where we stand I put all of those together and say, it's probably a consistent with what we were expecting as we moved into the year.

Okay. Thanks in terms of the growth strategy is to own wellbeing to grow.

I mean these have been in place for.

For a couple of years now it seems like I'm wondering if that anything related to the to the cold Big crisis. Here has has changed how you're thinking about that medium term long-term growth strategy either to pull back on a strategy or to amplify another one.

Yeah, you know as anything it to me it just really reinforces our strategy. When you think about our strategy around owning total wellbeing and you get into either a financial crisis or a pandemic and you just look at what happens to people's well being and how that impacts their productivity you think about mental health.

Think about financial health, when we rolled out the mental health index people side, 21% decrease in their financial health related to a lot of worry obviously about jobs and things like that so I think our strategy around focusing on total wellbeing makes tremendous sense second part of our strategy due to our.

Significant market share in Canada is really broadening that footprint.

And I think that has panned out very well for us as well as you can see we had very strong growth in the U.S. and a quarter and very strong organic growth, particularly in the U.S. and those numbers globally are very similar as well. So I think there's just an opportunity to continue to.

To drive those strategies around the world and the third part of our strategy is leveraging our people in technology and.

You know that has worked out well internally, where we were within a week being able to move 95% people to home within a week and today, we're close to 100%.

So that's the internal part and then for clients just the fact that we're able to deliver our administration platform and you hear back from clients that they would not be able to be up and running without that platform or that we're able to develop and roll out well being solution. So that people are able to talk to their employees and engage them no matter where they are.

You can take a look on glass door, but one of our employees posted like last or posting about the fact that we were able to run a step challenge on me wellbeing platform in the fact that they were able to feel part of a community even though they're isolating at home. So if anything I think it just reinforces our strategy and gives us an opportunity to really.

Continue to push that.

Great. Thank you for that color.

Mm.

Because I think about other other well financial institution, specifically, providing relief baggers into their to their customers, whether it's you know differed mortgage payments or rebates on not on certain policies and service as it is is more no offering any.

A similar type of.

Relief to their customers and what are you hearing from your customers in terms of their struggles and how they're managing through this covert crisis and that any potential impacts about flying through in in the second quarter or be on.

Yeah, Let me start Janus Stephen here, and then I'll pass it already Greer in terms, you know doing something for society, because we think that's really important to us and doing something for clients. It really is why we chose this point in time to launch the mental health index and the fact that we decided to do that in Canada. The U.S.U.K. in Australia and it was a bad.

Data to organizations Society and government, so that we're able to <unk>. So that we can understand what's happening in society and we could make good policy decisions going for.

The second part of that was launching well cat and when you think about a free mental health hub for every single person in Canada. You go to so that no one slip through the cracks and they get the need in the support they need.

You know our team stand a number of hours over a basically a weekend and a bit putting all their development of resources in making that happen because we just thought that was really important and you'll see some other things move roulette. Another geography is so that really is how we've decided to come back and give back to society.

The middle of Us running the business and I know girl talk a little bit it to your question specifically on clients.

Yeah. So so Jane what I would say is you know a couple of things firstly.

Looking at the client base and solve the vast majority or whether you know what I would call investment grade or government type clients right. So the.

Yeah. The the sensitivity to you know well relaxing terms, you know I was a little bit different they've.

Got different ways to to manage and you know not have morning Chappelle be you know their bank I'd say the second thing we've made it very clear.

<unk>, we're up and running we're serving our clients I'm not all businesses are fortunate enough to be in our place, but we're able to help out in a time of Ah Ah need and you know without you know again, we're we're paying our people were paying our suppliers and we're continuing to invest in caught box and.

You know the other side about as but we we very clear directive here that we expect or our customers to pay.

You know, we're obviously washing it very closely and just because you tell your customers they need to pay I mean, we'd need to watch the credit side at us and we've seen no degradation.

In that regard and I will continue to watch it very closely but it's a great question I can tell you have something that we discussed here quite a lot, but you know I think we're just fortunate to be in a position here, where we are up and running and we're very relevant and in today's world and as a result.

You know I think our customers are more willing to pay for the products.

Okay, great and all alternative <unk>.

Thank you.

Once again, please press star one.

If you have a question.

The next question is from the grant writing. Please go ahead.

Hi, good good morning.

And.

Just can you speak to historical you've had some seasonality in your you've done margins getting into European stronger than the the second half is that not the case anymore now with Mercer in the next or can we get some color and what you expect it.

In terms of Ah you know the evolution of your margins this year and he's still committed to.

Previous guidance and just below 20.5% 2020.

Yeah, Hi, Graham It's Greer all start you know be so we we were kind of originally if you go back a couple of quarters, we are kind of thinking that emergence be pretty similar from year to year.

And so we were thinking I would be originally we were saying kind of 20.5% and then we announced the hub divestiture.

<unk> and so that.

Pretty high margin business and.

What we are I guess trying to get across on the last cause but this would probably be better part of a half a point. So if you think of what the the full year would look like for 2020 think about as a as a 20 number you know give or take it's very close to that.

And then what we were saying is there would probably be some increase through the year to get to that because if you think about after Mercer, we were kind of running pretty consistently around 19.5% last quarter was 19 point for this quarter. We were in 19.5 says actually right, where we thought we would be <unk> and also considering where we we're facing a little bit of headwind in the last month I'll just quarter with.

Divestiture of health benefit consulting business and.

So ultimately what you'll see I think is something quite different than in prior years. You know certainly if you look at last year. The margins are really high in the first two quarters.

I was because it was before we had Mercer [noise].

This your look quite different this year, you know expect the first part of the year be very similar to the last two quarters of last year and then we'll you know gradually increase it as we execute on some varnished as an overall for the total year I'll be around 20, I don't know Stephen has any anything data.

I think that's exactly right I think you know I think we were expecting beginning of this year to be similar to last year and you've got to remember that's actually a slight improvement because of the pick up on the hub that s. or your church Hot and then we've got a number of projects were moving through the year that could potentially be some.

<unk> can be some technology and that will drive improvements as we moved through the years I think are is exactly right.

Okay God No 20 is lower than the 20, that's about all related to make sure. There's some other expenses that or.

That down to 20%.

The way I look out to grandma's, the the difference between 20 and a half and 20 is really the this divestiture to hub.

Yeah, I started that's I'm sorry, that's true.

Yeah. So yeah, that's that's what that is.

Okay, <unk> and then on the debt side, Mr call that you know you'd obviously chose to increase the facility. This quarter and then the money. This was sitting in cash and then if we paid it can you tell school, while you're doing that.

Yeah for sure so.

When we looked at what was going on.

<unk>.

Early to mid March with colder than just trying to get our our heads around it I think we really kind of pause and.

And just thought, let's let's draw and and do some work here I think it allowed us to do three three things perform a bunch of scenario analysis.

Just looking at various things in terms of credit and what would happen in the in the different businesses, because we all kind of have different lovers and play around with that and how to look at what all the impacts where I, which takes time as you know it also gave us some time to watch the bank markets and overall capital markets absorb this information, which as you know was it was moved.

And all over the place and I think for US we just thought let's let's draw this amount, let's see what happens I mean, there are some crazy scenarios I think there were flying around People's heads at the time and so that would suck and reason and then you know when we went through that we figured. It was just you know why is at the time.

To be in a you know we were in a good position to and we've got a very strong in support of bank group to ask for another 100 million and capacity not that we needed. It but you know it was a good time to do that and then or.

I have a dot com and I'm not sure how familiar are but it's been running out four to one vote on the anniversary date of material acquisition, it screws and by half a turn on I said did so we corrected that and just said so it's now four to one there is no.

Modification related to acquisitions is just four to one and so it'll stay I thought it might also.

So that's why we did we you know drew it we looked at those three things I think you know you look at where we are now we've got those changes in the facility in place. We've performed all a scenario analysis when we've got a much better idea I won't be think all the put some takes are and I I think it's fair to say that there's more normalcy in the bank and overall capitalmark.

And accordingly, we have now a repaid those amounts as you know it's a revolving credit facility. So we can always redrawn is committed capital, but that's the story ground.

Okay.

Okay, that's understandable <unk>.

With all the time for shirt and how about just on the.

Free cash flow side, it sounds like you're committed to cap x.

Spend for for the year.

Ratio is quite elevated relative to your feet <unk> is that when you're comfortable there any expected it to to remain at this l. they'd level.

So yeah I would see this week. So we are committed to Capitol, we're going to continue to a investment companies futures a bunch of initiatives that we have that you know they don't materialize. So we need to make these investments to make sure that you know we're in a good place for 2021 on 2022 and so on I will continue to do not I will say this.

Box and results for rate in line with what we thought they would be for the first quarter. So.

We're very pleased about that I mean, there was some puts and takes organic growth as we mentioned was a little bit lower than were we thought but overall I ran in line ratios exactly where we thought we would be <unk> a little have you on the front I know as I said right. So on the Mercer side, we'll see that kinda tail off some of these kind of one time.

[noise] expenses and contacts which has some impact on on up you know ratio as well so it will improve a little bit but I'll say this is ready to mine with where we thought we would be [noise].

Okay. So you're a lot I mean, what your Catholics outlook is for the year.

Total at 65 for the year.

<unk>.

Thank you.

Yeah.

Thank you.

Question is found that Jane.

National Bank penalties go ahead.

Yeah. Thanks, I I I actually was trying to come back on the the U.S. growth.

You mentioned really solid this quarter or can you give us a little bit more in terms of how how you're seeing that girl here early in April has there been any adjustments from the in terms that the pipeline in the final in a maybe a little bit more color around which.

Which business lines were driving gross and Q. wanting where you're seeing that in the queue to progress.

Yeah, Damon Steven I think all three business lines that are in the last saw very nice growth in the U.S.. So I'll give you a little bit of color behind that our health and productivity business continue to see growth you I would have commented about the increase in disability cases.

And you think about people being off and needing to have tools to manage a work which of their employees are working in which are off so I always thought good growth in our disability management business in the U.S., which we have under health and productivity into life works business. We saw a number of large U.S. clients whatever described there is.

Maybe a little bit last around adding new clients in a little bit more around adding lives to current clients in March and then April little to pick up on some new clients, but life works had a very solid quarter in the U.S. and we see that continuing in April.

And our admin business you know good talk a little bit about we're a bit disappointed on the organic site in total not B.U.S.

But we are very pleased with the Mercer acquisition, so that actually delivered in excess of what we are expecting so I know, we don't count that as organic the the teams down a really nice job on a driving some additional business to help our clients. So we're really happy about all three of those businesses within the U.S.

And again you know it's I know, we're just through April but anecdotally at least we continue to have good conversations with clients.

Or pipeline continues to be strong, but I do expected just seeing dragged on for a long period of time, there'd, probably be less R.S.P.'s and a little bit less on the sales standpoint, I bet, we've not seen that yeah.

That's great. Thank you very much.

Yeah.

No further questions registered at this time.

Meeting back over to mention a trap.

Thank you very much Atlanta, I'd like to end by expressing my thanks to everybody on the call. We continue to appreciate your interest in our company and we look forward to other opportunities in the future, including these calls enter annual shareholder meeting to keep you up to date on what we're doing to drive or growth and success as a business. Thank you.

Thank you.

<unk>.

<unk>.

Thank you for your participation.

Yeah.

Hmm.

Disconnect.

Thank you for your participation.

This conference is no longer being recorded.

[laughter] Thisconference is no longer being recorded.

[laughter].

[music].

55.

Note that this conference call has ended please disconnect Caroline at this time. Thank you.

Okay.

Okay.

See.

[noise] Oh.

[music].

Yeah.

55.

That this conference call has ended.

Airline at this time thank you.

Okay.

Okay.

Yeah cause she would painting.

[music].

Yeah.

Hmm.

<unk>.

Please note at this conference call has ended.

This time thank you.