Q1 2020 Earnings Call
[music].
Ladies and gentlemen, thank you for having by and welcome to the priority Technology Holdings first quarter 2020 earnings call.
This time, all participants are they listen only mode. After the speakers presentation that would be a question and answer session to ask a question. During this session you would need to press star and the number one on your telephone.
If you require any further assistance, please press star and zero.
I would now like to turn the conference over to your speaker for today Mr., Chris <unk>.
So you may begin your conference.
Good morning, Thank you for joining us with me today, or Tom Priore, Chairman and Chief Executive Officer, A party technology Holdings, and Mike <unk> Chief Financial Officer.
Before we provide our prepared remarks, I would like to remind all participants that our comments today will include forward looking statements as defined in the private Securities Litigation Reform Act 1995 regarding future expectations about the company's business.
Management's plans for future operations were similar matters, which are subject to certain risks and uncertainties.
The company's actual results could differ materially due to several important factors many of which are beyond the company's control, including those risks and uncertainties described in the current report on form 10-K filed with the Securities and Exchange Commission March Thirtyth 2020.
Any forward looking statements. We make today are only as of today's date and we undertake no obligation to publicly update or review any forward looking statements.
Additionally, we may refer to non-GAAP measures, including EBITDA.
Adjusted EBITDA and are now adjusted EBITDA during the call. Please refer to our public filings and disclosures, including those referenced in our press release announcing this call for definitions of our non-GAAP measures and the reconciliation of these measures to net income.
We've also provided an accompanying presentation with today's call that will help us more clearly articulate our results and go forward strategy.
With that I would now like to turn the call over to our chairman and CEO Tom Priore.
<unk>.
Thank you Chris.
And thanks, everyone for joining us for for first quarter earnings call.
Since we last spoke to you in March on March 31st the Cobot 19 pandemic has intensified across the globe.
No hearts continue to be with those affected by this pandemic.
As well those on the frontline helping to fight.
Due to the current environment, we're going to maintain a similar format to the fourth quarter call I'll provide.
Brief overview of our strong Q1 results, particularly in light of the Colgate related impact in March and then turn it over to Mike who will go into more detail on the performance of each business segment for the quarter.
And cost control initiatives.
Following Mike's commentary I'll review, how koby nineteens impacting our business and the things we're doing to address this challenge.
As you can see in our earnings release route we reported excellent first quarter results, reflecting the continued growth in each of our businesses.
For the first time in a year.
Our strong year over year results were not masked by the pause in our E Commerce subscription business, which began in October 2018 and continued through 2019.
Bringing to the forefront the broad based rental bar business segments.
On that note.
Validated first quarter revenue of 97 million increased 10.6%.
From the prior year quarter, driven by strong results in consumer payments.
Exceptional growth in the integrated partly business.
In steady performance in commercial payments.
Gross profit for the first quarter increased 11% year over year to 30.6 million.
Adjusted EBITDA 15.8 million.
Creased approximately 27%.
Q1 2019.
Total merchant processing dollar volume of 11.5 billion.
Increased 4% over the first quarter 2019.
Volume was trending at 13% plus 13% through February.
And we delivered these strong results despite the negative impact of cold in 19 during the month of March.
With that.
I'd now like to ask Mike Bocamina provide further insights on our first quarter results with particular emphasis on the business segment performance.
Mike.
Thank you Tom and good morning.
As I begin I'd first like express my hope that each of you and your families staying safe and healthy.
I'll briefly review consolidated first quarter results.
Provide commentary on our business segment performance all comparisons will be between first quarter, 2021st quarter 2019, unless I state otherwise.
Consolidated revenue of $96.9 billion increased 10.6% from $87.6 million.
Solidarity gross profit 30.6 million increased 11% from 27.5 million.
Our gross profit is an important metric for priority represents consolidated revenue less cost of services.
Consolidated gross profit margin was 31.5% and 11 basis point increased from 31.4%.
Consolidated income from operations of $3.6 million increased 2.6 million from 1 million in the prior year.
3 million dollar increase in gross profit and a point $9 million decline in salaries, and that's DNA, partially offset by a 1.3 million dollar increase in depreciation and amortization.
Adjusted EBITDA of 15.8 million increased 26.8% from 12.5 million.
Table on page 11 of our press release provides details of adjusted EBITDA.
A description of the details can be found on page two of the press release.
Total processing dollar volume was 11.5 billion, an increase of 4% from 11.1 billion.
Of that total merchant bank card processing dollar volume was 10.6 billion, an increase of 2.6% from 10.3 billion.
Now, let's break this down within reportable segments.
Consumer payments revenue was $86 million and 8.9% increase of $7 million.
Merchant Bank card volume in this segment was 10.4 billion, a 1.7% increase from 10.2 billion.
And merchant Bank card transactions, it's a 119.4 million declined 1.2%.
120.9 million.
However, the average ticket V $6, a 97 cents grew 3% from $84.47.
The consumer payments income from operations was $7.2 million compared with 7.7 billion.
Gross profit increased point, Threemillion, depreciation and amortization increased point 8 million and other operating expenses increased $500000.
Gross profit margin was early impacted by a shift in mix.
For the comparable quarter of last year.
Commercial payments revenue was $6.4 million.
The decline of point Threemillion.
This was comprised of revenue from CPX, the 1.6 million, which increased 31.4% and revenue from managed services at 4.8 million, which decreased $700000.
A managed services decline was driven by lower incentive revenues and retirement of a previous program.
Commercial payments income from operations was <unk> point 8 million compared with a loss from operations of point 5 million.
Gross profit increased point Sixmillion.
Well depreciation and amortization was relatively flat.
Other operating expenses decreased $26 million and this first quarter 2020 performance reflects the benefits of operational initiatives administrative cost savings actions that we implement implement that as we were entering 2020.
Integrated partners revenue was 4.5 million, 129% increase of 2.6 million.
Should largely comprised of revenue from Pratt $4 million, 154% increase of 2.4 million.
Hey, right and hospitality grew 14%, it's 254% respectively.
Integrated partners income from operations was point $4 million compared with a loss from operations a point 2 million.
Gross profit increased 2.1 million.
Depreciation and amortization increased point Sixmillion and other operating expenses increased 2.9 million.
The depreciation and amortization is primarily related to the assets acquired from Yap Stone in March of 2019.
Other operating expenses included point Ninemillion temporary transition services for me capstone related to integration of that asset acquisition.
Integrator partners adjusted income from operations in the first quarter of 2020, excluding these temporary transition services was 1.5 $1.3 million compared with a loss from operations <unk> point 2 million in the first quarter of 29 pain.
Corporate expense was 4.7 million compared with 6.1 million in the first quarter of 29 team.
Nonrecurring expenses were <unk> point Fivemillion into first quarter of 2020, and 1.2 million in the first quarter 2019th.
Excluding these non operating expenses corporate expense was 4.2 million and 4.9 million in the first quarter 2019.
2020, and 29 Keane respectively.
Now I'll review, our liquidity position.
At March 31st we had $499.4 million outstanding debt, which included $15 million outstanding under a $25 million revolving credit facility.
We had $2.9 million unrestricted cash on the balance sheet.
This put the March 31st total net leverage ratio at approximately 7.67 to one.
$64.7 million, an annualized consolidated adjusted EBITDA as determined under the definition within the loan agreements.
On April 3rd we repaid 2.5 million of the revolving credit borrowings so.
So we currently have 12.5 million outstanding under that $25 million credit facility.
Mid April we implemented several actions to reduce expenses and preserve cash in order to mitigate financial impact covert 19, including furlough 47 employees.
Production of 21 full time contractors.
Freezing with new hires.
Most common certain capital expenditures.
These actions along with reduced S. DNA spending is expected to reduce planned annual run rate cash.
Cash expenses by $10 million to $11 million.
Also the postponement of certain capital expenditures is expected to save an additional $3 million of cash through year end and you know it's necessary for the postponement could increase the cash savings by an additional $2 million.
No we're confident in our ability to take these actions to reduce cost and save cash without impacting our ability to service our customers or capitalize on new business opportunities.
We successfully navigated the challenging environment in late March and April.
And in a moment, Tom will provide a summary of our April performance.
We are.
Very closely monitoring our daily business trends in May we've seen a positive directional move a shelter on place has begun to list.
However, uncertain economic landscape, resulting from the code at 19 pandemic, it's difficult to predict.
In that regard we're prepared to take further actions if necessary to mitigate any trends that a negative to the range of our current internal forecasts.
Before turning the call back to Tom let to address where we stand on providing 2020 guidance.
During our call in March we said, we would take a wait and see approach with regard to providing financial expectations for the year.
Well, we have been proactive throughout the pandemic to limit risk and capitalize on opportunities that continues to be considerable uncertainty regarding the impact of the virus on the economy as a whole.
It's more stay at home owners are lifted lifted and states opened up we expect the gain further insight into the new normal.
As well as the depth of the damage colder 19 has inflicted on the overall U.S. economy.
So with this in mind, we are not yet prepared to provide 2020 guidance on this call. However, we we currently expect to provide full your expectations.
During our second quarter earnings call.
So with that I'd like to turn the call back over to Tom.
Thanks, Mike.
I'd now like to share more detail about the most recent trends we've been seeing in the business, particularly as the cobot 19 pandemic ranges on.
Continuing the positive first quarter momentum, but also reflective of the impact of cold in the month of April we processed roughly 2.7 billion.
In volume, which was down 34% from April 2019, and roughly 27% from marches volume tool.
Despite the drop in volume.
New merchant boards in April were solid with 4486 approved newly boarded merchant merchants is largely in line with our historic trend.
4500.
The 5000 per month.
The drop in volume was meaningfully offset by the outstanding performance in our higher margin products subscription segments.
In a positive shift in our consumer segment vertical mix.
Leading to a small or 12.7% decline in consolidated revenue.
In a 9.8% decline in consolidated gross profit in April 2020, as compared to April 2019.
Well, we were able to further mitigate the impact of volume declines.
By reducing operating expenses by 16.9%.
Resulting in anticipated 500000 dollar EBITDA increase in April versus the comparable April 2019 period.
This consistency reflects the strength of our diverse sales channel, which added 20, new reselling partner since January one.
And the value of our integrated part are offering excuse me integrated product offerings, namely tab or order ahead curbside pickup platform.
That enables contact list E commerce for hospitality and a host of new industry segments.
Prior to pay right digital health care payments offering.
Rent payments dot com and landlord stations serving property managers.
And our MX b to B and CPX automated payable solutions.
I will speak to each of these segments in more detail shortly.
There are number of key operating considerations that have helped us maintain or one bentem. Since Q1 ended despite the consistent headwinds presented by the Corona buyers.
As you May recall priorities infrastructure is fully virtualized on our vortex cloud and has been.
In previously put to the test under Oh conditions.
Following shelter in place orders in mid March this technology.
An exceptional know how all of our people out each of our employees work remotely.
As if they were at their desks, ensuring their health and safety along with a seamless processing experience for our customers.
Furthermore.
Or shared services operating model has enabled us to position client service implementation risk in underwriting personnel to their greatest utility.
To advance the business schools of our partners.
Since the pandemic took hold we moved quickly to accelerate the delivery of our solutions to merchants that needed digital storefront and payment platforms.
Staying their business.
In the new normal.
In a country in which most people have been order to stay at home. There's no one available to process check or collections that rental properties landscaping construction another field services businesses.
Hospitality venues liquor stores and convenience stores and a host of other business types.
Our only able to fulfill picked up for contactless delivery orders.
I can quickly overwhelmed staff trying to operate by phone.
And in these circumstances, we were able to step in and fill the void by providing easy to implement solutions.
Within a safe and scalable transaction environment that is low friction for both buyer and seller.
We believe that the conditions influencing behavior in the current environment.
Likely signal a significant change in how businesses will need to prepare to operate in future.
Increased use of technology to support contactless E Commerce.
Integrated software with digital collection tools to support.
Healthcare revenue cycle rent collections.
In accounts payables for businesses of all types is likely to flourish as these businesses adapt to be prepared.
Burton and unpredictable circumstances like.
Like those today.
Right.
Well the pandemic has been a catalyst to accelerate this evolution.
Well be hard pressed to imagine a world that fully reverts to a pre coven environment for SMB payment solutions.
Now with regards to the specific performance metrics.
Since the beginning of the year through the end of April priorities rent payments business has seen 27, new property management companies enroll.
Representing over 37000, new units to our platform.
The highlight the opportunity that comes from this group at an average rents at $1000 per month every 25000 units represent 300 million an annualized crossing bond.
The combination of.
These new account sales.
Additional units added from existing property management companies.
And tenant that he should do to cope with.
Has already resulted in an increase of over 144000.
Net new active users.
On the rent payments platform.
We're optimistic that this trend can grow further as we continue to pursue enterprise clients.
And our direct sales and reseller community extends landlord station to Midmarket and smaller local landlords.
Our order ahead technology Tad suite is seeing a similar growth trajectory as order ahead, and curbside pickup becomes part of the normal course operations for many businesses.
Following Q4, 29 teens, 252% year over year increase in boarding activity and 55% increase in property in a processing volumes.
Q1, 2020 experience, even more growth in adoption as the rate of Newport boarding improved by 125%.
And volume grew an additional 35% versus Q4 2019.
This trend extended through April.
Where volume increased 135% from March.
We believe this growth will continue.
In fact, thus far in the first six weeks of Q2.
Total volume is up 75%.
Transaction count is up 40%.
In light of accounts are up 43%.
Versus the entirety of Q1.
As new venues have been added in May further increasing sales volumes and building a healthy pipeline of businesses in implementation to go a lot.
Interestingly eat tabs order ahead technology continues to be used to meet customer needs for curbside pickup by businesses outside the hospitality sector.
Samples include boot wholesalers country clubs liquor and convenience stores.
Similarly.
On the health care front, we're working with many doctors offices that are inundated with patients.
And are looking for ways to serve them in unique ways, while mitigating disruption in the operation of their practice.
Already pay right has been meeting this need.
Building on its growth over the past several quarters.
Consistent with our integrated verticals, Hey, right crossing volumes increased 33%.
In Q1 2020.
Posting 156% increase.
Versus the prior year period.
This growth trend has continued with April volumes, improving by 83%.
Since April 2019.
Well, we see an impressive performance from our commercial payments assets.
Be to be acquiring it yeah.
In Q1.
Total gross card volume grew by 57.9% versus Q1 2019.
CPX issuing volumes grew 303% in Q1 2020 over the comparable 2019 period.
And just like the Q1 headwinds from the cold it pandemic.
Continued its upward trajectory, increasing 6.8% versus Q4 29.
Meanwhile.
Q1, 2020, b to B acquiring volumes posted a resilient, 4% improvement versus the comparable 2019 period.
In fact, b to B acquiring volumes continue to accelerate in April.
Looking at 12.4% increase over March.
Right the deepening shelter in place conditions.
Importantly.
The commercial payments division renewed contracts with Mastercard and mineral tree during the quarter.
In Citibank has agreed to implement a special interchange program with priority CPX powering their network, a b to b supplier payments beginning in Q2 2020.
Simply stated Q1 in April processing volumes and sale successes are certainly encouraging, particularly when viewed through the lens of president.
Economic environment.
It's our belief that they represent the resilience of our operations.
The value of our MX platform and product offerings and importantly, the unique construct of our distribution partnerships.
Patiently monetize merchant networks.
As an advocate of the independent resellers and vertically focused Ais b business that works throughout the U.S.
We have largely been lumped in with market averages.
Going forward, we expected the very cost structure of our distribution channels and its geographic and industry diversification.
And our defensively position high growth B to B and vertical payments software businesses will continue to be a differentiator.
Positioning us as a leading consolidation platform.
Evolving payments landscape in the years ahead.
Before wrapping up I thought would be helpful to read back you some commentary from our second quarter earnings call back in August of 2019.
At the time, we said the federal reserves recent interest rate reduction for the first time in 10 years is obviously intended to counteract and anticipated slowdown.
We've been preparing for this eventual slowdown and future ones like.
By adding depends of assets to our portfolio, including health care and real estate, where the trend chronic payments is still in the early stages.
And volumes will continue to grow fast regardless of the macroeconomic environment.
We have and will continue to target growth in counter cyclical assets.
Such as our commercial payments initiatives.
We're businesses look for revenue sources in down markets.
Cash acceleration has greater value.
If I leave you with one key takeaway from this call.
It is a priority is managing its business.
Several quarters ahead.
By building a platform to maintain impeccable stability and long term compound growth.
True varying economic cycles.
While we obviously could not have predicted that a global pandemic would be the catalyst for an economic slowdown.
We believe our preparation for such an outcome underscores our attention generating long term shareholder value.
Despite 33 million layoffs since mid March.
Small businesses shutting down.
In many areas of economic activity grounding to halt.
We've continued to perform and generate positive results.
More importantly.
The actions, we took to build defensive and counter cyclical payment operating assets.
Have positioned the business for success over the long term.
Our April performance proved this point.
As each business segment outside of consumer payments had improved EBITDA performance in April 2020, as compared to April 2019.
In recent pre coke periods.
In conclusion.
We're pleased with our first quarter results, especially when considering the impact of cobot 19.
We're encouraged by the resiliency.
We've seen thus far in Q2.
He will remain laser focused on our cost structure.
And capitalizing on tactical organic.
And transactional growth opportunities as the impact of the Corona viruses felt.
Operator.
We now like open the line for questions.
As a reminder, if you like to ask a question first our than the number one on your telephone.
Your first question comes from Brian.
Kinstlinger.
Hi, guys.
Hey, Brian a couple of questions.
And you guys highlighted the order hasn't curbside pickup demand, increasing which I think we all recognize the value and need for that.
How are you as a company attacking the market to attracting onboard new customers in light of this trend.
Well.
So we have both the a direct sales initiative that is focused on this segment.
And we could Bob.
We.
We put marketing dollars behind it to.
To attack markets, where we you know we think we can be particularly successful.
They tend to be secondary markets.
In the U.S. that yeah. This this I'll just say haven't been picked over by some of the you know kind of the larger aggregators in that space like you seamless isn't grubhubs.
And then you know that the the.
We have a very diverse reseller network that is working closely with our product team our internal product team.
The move that product out to our existing.
Hospitality venues and and really frankly, a host of businesses that are in our portfolio that need the functionality.
So the comedy.
Sales initiatives and working with our with our existing resellers has been a.
Has been focused.
And you know that that diverse reselling network across the country, where we have no 800 active resellers is you know is a powerful one that you know we can move on quickly.
So you know, it's certainly not only help you know love to drive the product results, but.
As you might imagine as the reselling partner to have a you know someone like priority in your corner.
To help sustain you work.
You know your business and attract new.
New merchants and also provide solutions to your existing merchant base.
You know that only strengthens our relationship.
One of the reasons why we've had success with.
New resellers, you know coming our way during this period as well.
Because our peer group just you know really doesn't have that type.
Great and then with consumer purchasing transitioning to E. Commerce certainly in place of hard lines can you talk about how your business is positioned to benefit from this trend and then if it's relevant would you be able to share what percentage of your processing volumes our card not present.
Maybe you during 2019 or first quarter 20.
[noise] Yeah sure. So you know if I look at let's just say the pre cobot period, because you know obviously, given the impact, particularly in the hospitality space on on premise payments, it's probably not a great gauge.
We are roughly 65% card present, 35% card not present.
Let's say going into the or during the pre coded.
Period.
On an annualized basis.
Obviously, we've we've seen a lift on a on a percentage basis.
But.
You know we had a.
We had a concerted strategy for 2020.
Two.
Build our E.
E Commerce.
Does the stack up as well so we would expect that mix continue to shift towards more card not present.
Not only by virtue of.
The recent you know just the current realities of.
You know more purchases moving online or in App.
But also just by the fact that.
No we have turned on our.
E Commerce subscription business, which.
Right you know has been accelerating.
At an increasing rate.
Of those.
4000.
400 in Haiti, New boards I noted in April.
Nearly 600 of those.
We're just.
Purely focused on E commerce.
So that's a pretty meaningful increase in the boarding trends.
That you know we had seen in let's say Q4 of.
Have a 2019, which you know would've been around 150 to 200 neighborhood.
Great. Thank you so much.
Your next question comes from the line of Claire Galbo.
Hi, good morning, guys.
Thanks for taking my question.
Just to start.
I was wondering if you could talk a little bit more about the contract renewals with Mastercard and mineral tree.
Maybe just what kind of opportunity that represents.
Yes, sure. So you know Mastercard has been a a longstanding partner on the commercial payments side.
And.
We've maintained a contract that them for you know a number of years you know they recently.
Renewed it we provide supplier enrollment functionality to their.
Issuing banks.
And.
No that that's.
That contract will.
Be north of a million dollars and EBITDA contribution.
That's an increase of about 25% that doesn't include potential incentives that could add another.
Three to $400000 to that contract.
The you know that the mineral tree is there an automated payables.
Ah technology that.
You know we've been integrated.
To for a for a year or so.
And.
Oh actually now two years so.
So you know the great vote of confidence that they continue to you know to to build out their platform on our payments engines.
The one we're probably most excited about candidly is is the citibank.
You know supplier network.
That's a.
You know that that represents billions of volume we've not included that in any of our projections.
But as we get our arms around you know the.
The growth within that will start adding to our you know to our expectations as as I think everyone can appreciate being one of the largest money center banks and in the World that you know that supplier network is massive and extends.
Globally.
Okay, great. Thank you.
Just wanted to ask how active you expect to be maybe on the acquisition front. This year, you know, especially in light of that cobot 19 situation.
Have you been a seeing valuations come down at all.
We we have a.
Active pipeline you know that that's up.
Yeah that we had been working in 2019 that remains in place.
You know right now I think you know that's gonna be a a minute to to sort out.
You know what the impact of.
Cove. It is on some of the the businesses that you know we had in our pipeline. So I don't know that I would have a a comment generally about you know valuation.
I would I would submit that you know we feel.
Very constructive about.
You know our business and its performance relative to the broader peer group of payments. So.
He also Hana on a relative basis, you know we.
We feel like we should be in a good position.
And then you know how we.
Now we can potentially capitalize on that you know from a from a transaction standpoint.
He's going to be you know is gonna be situational.
And you know is probably.
You know a month or two out of why would I would feel comfortable kind of making further.
Conclusive comments on that.
Okay. Thanks, and just one last question maybe could you just talk a little bit about the consumer consumer finance business you launched in the integrated partner segment.
Oh, Yeah, Yeah sure I mean look this is this is new so you know we're not looking at as a as a meaningful contributor you know in sort of the coming quarters.
But you know we think this is up.
Very meaningful opportunity in the conversion of non electronic payments to.
To electronic.
The.
This is gonna be focused on on segments, you know like auto loans are large ticket purchases by consumers.
You know that it finance those we have a partnership with a company that we're you know we really like their technology quite a bit called the pets.
And the thing that we find unique about it is.
Most of the platforms out there consumer payments.
Or are really you know they there.
They provide I'll call. It out you know an online payment portal is a bit different and that you know, it's an application that consumers can use to not only make payment but also.
Interact with the loan servicer through chat functions on their phone.
You know, particularly when you know the biggest.
Challenge in in a.
Consumer finances.
It's not the folks that are paying regulates the folks that maybe you don't need a you know a couple of weeks to permanent or no need to pay a weekly or what have you.
The particularly in this environment that chat function allows the service or to interact on a regular basis to do so in a you know a less invasive way you know attracting people down over the phone. Most people. You know we are research has shown will will engage on tax.
And then look everybody they don't want to be under under pressure there you're looking to pay you know for their auto loan or whatever that cars important.
So it's a it's a way to interact that you know he's very efficient for collection number one.
We think it's the more modern you know way the market's headed.
So you know, we're we're excited about getting that product out to market and start to distribute to you know a broader audience in lending.
The only then the last comments I would make is you know where these.
Are you know the risk off it is in in these segments with regulators is how aggressive collection well you know when you're able to track and all of that activity you know over you know chat.
It allows you to enter the early if you see.
Folks that it may be taking aggressive tactic and you know correct that behavior or.
In light of let's say complaints.
It allows them.
It tracks all that dialogue. So you know you're able to go back to.
You know the FTC or the CFPB would evident that hey that these aren't aggressive.
Collection technique, so no we really like that technology, not only as a compliance and chat.
So that we can manage risk in that portfolio, which.
You know frankly on the regulatory side is the more meaningful then and financial risk.
And Ah and do it in a really modern way that we think will drive large scale adoption on consumers.
I know that's a little down in the weeds, but you know we spent a lot of time thinking about this segment because we think it can be you know a substantial one going forward in the years at and we want to get it right.
Alright, great I think sort of color.
As a reminder, if you like to ask a question Press Star then the number one on your telephone keypad.
You have a question from Brian <unk>.
I'm sorry his he.
Because question.
You have no further questions at this time.
Well, thank you operator with that.
Certainly want to thank everyone for their oh for their attendance this morning and.
Just want to to express that that we hope everyone. Just continues to say safe in this environment.
And.
Well look forward to two.
Sharing further details of our performance in the second quarter, you know as that continues to evolve. So thank you everyone very much have a great day.
This concludes todays conference you may now disconnect.