Q1 2020 Earnings Call

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Got it.

Good day, everyone and welcome to the Chuys Holdings first quarter 2020 earnings Conference call.

Today's call is being recorded.

Hi, all participants have been placed and I'll listen only mode and the line will be open for your questions. Following the patient.

Today's call, we have stayed Islam, president and Chief Executive Officer.

Jon Howie, Vice President and Chief Financial Officer of Chuys Holdings incorporated.

At this time I'll turn the conference over to Mr. Howie. Please go ahead Sir.

Thank you operator, and good afternoon by now everyone should have access to our first quarter 2020 earnings release, if not it can be found on our website at www Dot com and Investor section before we begin our review a formal remarks I need to remind everyone. That's part of our discussion today will include forward looking.

Statements. These forward looking statements are not guarantees of future performance and therefore, you should not put undue reliance on.

These statements are also subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect we were for all of you to our recent FCC filings for a more detailed discussion of the risks that could impact our future operating results in financial condition, but that all the way I'd like to turn the call over to Steve.

Thank you John Good afternoon, everyone and thank you for joining us on the call today.

Well, we if we will briefly touch on our quarterly results. Our main focus there will be the impact of cover 19 on our business and the actions that we have taken and well be taking in response beginning with the first quarter results. We had a solid start to 2020 as we continued to build upon the success of our key initiatives, including those surrounding Todd.

We're going to marketing investments in technology and opposite off premise sales.

Positive sales trajectory was evident in the 3.3% increase in our comparable restaurant sales for the first 10 weeks up the first quarter. However, as you would imagine we experience that material slowdown during the last three weeks of in March as our company along with the rest of the country has been impacted by the covered non endemic since then.

We have taken several steps to ensure that we can whether they're short term crisis and emerge as a stronger company in a long run.

As many of you know to comply with both state and local mandates. Our team members worked tirelessly to transition 92 of our restaurants to an efficient off premise model during the stay at home or we have offered our guess I focused menu featuring a number of long term favorites as well as a convenient family mail and beverage.

Cats deliberate safely to our guests through enhanced takeout and curbside pickup procedures. We've also provided delivery services through our national delivery partner door data as well as other local delivery services in some markets.

I'm pleased to say that our team's hard work has paid off as our off premise sales at more than tripled from pre cope with love it levels and our comparable sales have improved from a negative 67% right. After that we transition to an off premise only operating model to the low 50% range just prior to the real.

Turning of our dining rooms in certain locations.

Additionally, many of our guess opted to celebrate Cinco de Mayo and mother's day with US earlier in May result in one of the best weekly sales results since the onset of the crisis I believe this is a lasting a testament to the appeal of our made from scratch offerings, even when consumed at home.

I'm extremely proud of what our team members have accomplished during this I'm president and time that commitment and ability to skillfully adapt in the face a cobot 19 crisis has been nothing short of amazing and we're trying to do our part to help ease the impact that this pandemic has had on many of them.

That n., we had been <unk> been providing support to our redfish really fine that was put in place several years ago to provide assistance to employees facing financial hardship. We're also currently paying the full cost of health insurance for all of our employees, including those currently furloughed.

Lastly, in an understatement to say that were eager to welcome our guess back in our restaurants with a number of states recently announcing new guidelines for business operations. We have begun the process of reopening our dining rooms. We have currently reopened the dining rooms of approximately 70, chuys restaurants with varying degrees of capacity as you can imagine.

And our goal is to reopen each restaurant and efficient manner, and also prioritized the safety and well being a both our employees and guest.

In addition to proper social distance thing, we have established procedures for regularly sanitizing, our restaurants and our plays are falling local guidelines with regard to glove and mass wearing.

Early on we're been caught in a very positive response to reopening from our yes I can tell you it's been great to see the renewed energy and our restaurants as we welcome back our employees and guess and clothing, we're fortunate to be facing this current challenges and a solid financial position as John will discuss in a moment. We believe we are equipped to whether this.

<unk> current crisis and remain committed to ensure that our loyal guests can continue enjoy many of our freshly prepared capable Mexican inspired offerings either in a safe environment of our dining rooms are in the comfort of their own homes with that I'll now turn the call overdose CFO, John how are we to discuss financial steps, we've taken and well be.

Taking in the near future.

Thanks, Steve the financial steps, we've taken thus far has primarily been focused on managing our liquidity to ensure that our business as well funded for the long term as of May 17th. We we had approximately 27 million in cash which included the previously announced credit facility dropdown. In addition, we.

The amended our revolving credit facility to extend its maturity to April Thirtyth 2022, and provide additional financial flexibility. During the October 19th endemic by relaxing financial covenants through the new maturity date to give you. Some additional color on our liquidity as of May 17.

We reduced our weekly cash burn rate to approximately 200000 as compared to 500000, a week during April mainly driven by the increase in our off premise business and cost savings initiatives, we announced in recent weeks our burn rate assumes current sales levels spending normalize.

Fred as well as the delay or cancellation of non essential planned capital expenditures, including new restaurant openings during the remainder of for 2020.

That being said we have typically are temporarily suspended our rent payments on operating leases and we're continuing to work with our landlords to negotiate rent concessions abatements indifferent.

We're also expecting approximately 3 million in tax refunds in conjunction with the cares Act as a result of an administrative correction of the depreciation recovery period, Prequalify improvement property as well as the reinstatement of the net operating loss carry back period.

Lastly on makes it we filed a shelf registration statement for up to 100 million to allow us to access the capital markets and further enhance our financial position if necessary. During this uncertain times as a reminder, given the ongoing uncertainty around the magnitude and duration of the cobot 19th endemic we have.

Withdrawn our previously issued guidance for fiscal year 2020.

In summary, we do we believe we have the financial flexibility needed to whether this crisis and we look forward to welcome back our furloughed employees as we are slowly returning to normal restaurant operations.

Thanks, John.

We're pleased with how our company has been able to adapt during this turbulent times involve our business into an off premise business only all while keeping the safety and well being of our guests and employees foremost in our minds, while still serving I choose fans the food they've come to crave and expect I can't say enough about the dedication and hard work.

Entire choose family as shown by being able to rise to the challenges. This pandemic has caused on our industry as well as each of our lives. Thank you to all of you would that we're happy to answer any questions. Thank you.

Thank you you will now be conducting a question and answer session.

I'd like to ask your question. Please press star 100 telephone keypad.

The combination telling will indicate your line of some of the question Q.

You mean starts you know people would like to remove yourself from the Q1 moment. Please what we call for your questions.

Our first question has come from the line of mix of Wedbush. Please proceed with your question.

Thank you, it's great to see the accelerating sales trends week to week, a quick clarification of the nine units.

Our closed on any of those units now open.

No they're not.

Hello can you maybe talk but yeah.

Right well.

We're gonna have continued to get all the ones that have been in doing to go for the last two months' time once we get those opens well well look at reopening in looking at the feasibility of those restaurants.

Got it and could you maybe talk about your experience as the dining rooms are opening relative to the capacity constraints.

Are you seeing coated the Friday night Saturday night crowd add capacity how to shoulder periods are doing weekday lunch versus dinner anything would be very helpful. Yeah again, it's so early I would basically maybe 10 to eight to eight to 10 days into this in a lot of the markets. One thing that I'm really excited by them how fast start.

As mobilized to get in such a short time seven of these restaurants about 70 of these restaurants to open in time.

But we haven't speak too early to say give you a whole bunch of color because a lot other restaurants and like example in an awesome, 25% in Tennessee, it's 50% and it's going by the local local laws and the different markets.

But we wouldn't be too early really to even to comment on that.

Okay Fair enough and then John just the 48.5, Okay in terms of a weekly sales for the weekend in Fyseventeen.

I wouldn't be possible free to tell us what portion of that is dying them versus off premise.

Well I think what we have there that is.

One that is mainly just off premise because as of a if you look through.

I think that's all off premise no no a little bit well a couple in that that we've got a couple in that but for the most part I would say 90% of that is that right Scott Hi, Greg.

Okay. Thank you very much.

Our next question is coming from a line of Chris Ocull of Stifel. Please proceed with your question.

Thanks, Thanks for taking the question John I know the company had to for a large portion of its early work for a string period went down in dining rooms are close but now that dining rooms are reopening in your rehiring people <unk>, what's kind of flow through rate should we expect from the reopened dining.

Im sales.

Well, Chris again, I think it's too early because there's a lot of there's a lot of moving pieces until we can get some trends because as you know when we turned it into it to go only kind of operation we cut a lot of services, we turned off all the lights in the dining rooms, we did.

A lot of things right and so now it's really trying to to the dial in the right amount of labor for the front of the house as we bring in 25% capacity or 50% capacity and then slowly turn on those services. So at this point I really I understand your question, but it's really hard to tick.

Give you an idea of what that is yet until we can get some better trend yeah and as we're moving just in a 25 50, Chris we're bringing back some of the furloughed that would be coming back as you move down. The road you will have some training impact on some labor as we move forward because specifically in the back of House I you know in a a Texas. This they kept construction.

A lot of our kitchen Fellows I work under construction right now so we will have some start up on some employee hiring as we move forward a little bit.

Okay, and then can you John can you guys described the margin for takeout sales compared to dine in sales how do they compare.

As far as just a as far as the margin they're almost comparable now.

Because what we've done is as far as the delivery as well we've increased the prices on those like we said we're going to for the most part so that it would be kind of cash neutral going out the back door or margin neutral and so for the most part we've done that on the delivery on the on the pickup.

What we're finding is.

That it's a little higher check average given some of our kids and then also our Margarita kids as well. So that's not it's not taken up all the 18%, but we are seeing you know into high single digits as far as bar mix, which.

I'm very pleased about and then for the stores that we have opened up a that bar mix is actually coming back quite nicely I'm. So that to go the margins.

A little less but Ah I would say probably not more than 100 basis points less.

Great. Thanks.

<unk>.

Our next question is coming from the liner Andrew Strauss.

No capital.

Yes.

And good afternoon.

My first question can you talk a little going about what the customer experiences like in the stores right now we reopened the dining room some of the stuffs that you've taken and how are you managing weights.

Okay.

Managing weights actually start there are somewhat right now we have everybody usually waiting if we're going to wait there waiting in their cars.

Because obviously the social doesn't say now investor bills wouldn't allow anything else I believe it or not they are pretty much self managing that themselves to be straight up an honest with you as consumers a checking the weight and then then they're going back on to the cars.

Oh, that's as far as operations are going again were opened in 25% that the standards that we've always had are capped obviously the safety nets in the number one thing, making sure were sanitizing everything making sure we have our masking our gloves and making sure we have a sanitizing solutions and all the areas that are expected for us to have them, but well.

That's very very well with that part of the things that the allowing us to do it very very well, especially on a ramp up as we can they do it's been running a I'm very odd.

Oh Baby slimmed down menu at this current time, which is very similar to the menu that we use during all our to go and delivery services. So that's what's in our restaurants color now so our execution is as very very good I, we're pretty excited about the operations and how well they've been able to execute and we're using that technology.

To make sure we're working on the weights in the cloud times, just as we're going but I'm very very pleased with the execution side before was just as I was really <unk> I'm pleased with execution and the increase in our to go volumes throughout the last eight weeks.

Okay. Great. That's helpful. And then you know as overtime, you've grown into new center stage versus kind of your home base can you talk a ball if there's any regional differences will all over to either in the legacy markets are the newer markets I kind of sales have.

Varied across the system.

I mean honestly just like when were open I mean, the Texas, obviously have the the stronger you. These but really no significant trail <unk> or has it and trying to remember that trying to have a similar you know the ones that I know Nashville is very strong also very similar to Texas, but it has been in all categories before.

And after this thing so I think its its they've got their basket like I would've expected them to and they haven't traditionally in the past.

And then my last one how sticky do you think the off premise business will be and is there anything you're thinking of doing in stores.

More operationally to support what could be maybe a higher off promise mix over time.

Sure I mean, I think if we go back to even a year ago, while were on this call probably a <unk> we talked about off premise we were in a 14% to 15% to go out to go premise anyway, and we were looking at a at the Big initiative throughout the rest of the year incident also but the cash catering last year that we're looking at to go areas and all.

Addressed it all our stores to enhance those I think they're going to definitely be enhance as we move forward with what's happened with his pandemic, a and I don't think it's all going to go away I don't expect it to be 45, 50, but I definitely expect it to be well north of why we wear watches that 14% range. So we're going to continue with the thought process of obviously.

Well, we've learned a ton of stopped and just to go only on how to really set it up and how do I had a stage it and we're going to continue that within the parking lot and in our store level operations also but it's here to stay you know as as the industry is looking right. Now you know convenience was always a big.

Yes, and quick casual convenience is gonna be a big plus it's going to be a major uptick and just casual also convenience of the guest whether it be how they do to go how we do delivery, but also how we do the checks and do we have handheld and all that stuff is going to become more and more important as we move down the right.

Road.

Great. Thank you very much.

Welcome.

Our next question is how can the line of Dayrate, David Tarantino Baird. Please proceed with your questions.

Hi, Good afternoon, I hope you're both are doing well I had a couple more questions. The first one.

To your plan.

Drive traffic as the dining room.

Okay.

Yes.

A little bit about kind of what the marketing plan or what what you're doing to try to drive.

Awareness and traffic as a things reopen.

Sure Yeah. The basic thing in the one thing that's great for US is we're very always been a strong local store marketing company on how we do things from a grassroots emphasis and obviously that's what we've been doing the last two months just doing to go and you're going to see us continue that probably through the rest of this quarter into the third as we find out how big are I I.

Our areas, they're gonna be allowed to get inside our dining rooms, whether it's 50% do they go to a 75% I'm. We're also doing organic as far as social media talking about our special days, whether be saying go our we have no to kill a day coming up here in the next month and those type of things, but as we get back end, you'll see us go back in probably.

Things that Transco, similar you'll see us get back into our marketing plan that we.

Like 2019, and you'll see us definitely focused on social digital ads, we were and all of 2019 and that was having a great results first I believe and we'll do that you will see us maybe change some messages a tiny bit on some of our postings and some of our our our digital and social.

Spend and you'll see us definitely talking about the convenience of what we do obviously that the ghosts area and the convenience side, you'll Taco, you'll definitely hear us talk about value than our menu.

Which is as it kind of be so important as you move through a with all the things that's happened to our communities over the last two months.

And you're also going to see US talk a lot about safety and how we take care of our employees and how we take care of our guests, but you'll see probably in the fourth quarter very similar to the plans that we were executed and all 2019.

Got it and then.

I guess the second question I have is a bit more qualitative and it relates to some of the actions taken to reduce costs, which seemed necessary at this point, but you know in Furloughing a lot of employees I'm just wondering what your thoughts are on the.

Impacts that will have either on the culture of the company or your ability to.

To pull them back in one once you're able to.

Yes, overall, how much that disruption might might affect the outlook and then next year or so.

Yeah, you know one thing and you know about us a little back you know we ever in constant contact with and all our hourly Oh for a lot and specifically all the anybody and management and specifically home office as well, where we're talking with them, we'd like John mentioned very early in that we've had a pay and benefits for all those people throughout this time, but.

We're in constant contact with them talking about and I think we've done and communicated the right things on what our role is to be safe and cautious and to make sure. We come out of this at the end of it better than when we even went into it and offer them and our group and our company a long term strategy for success not only for the company but for them.

Personally and professionally also so what we're in constant contact were excited about how we dealt with this in a lot when I'm very personal way out with all our employees.

And and we're getting most of our our Ollie's Army Navy said, we just started on the at least two weeks ago, bringing them back we're pretty pleased how they have reacted a and then of all come back a and and the same thing is in the home office, we haven't really started bringing folks back from a home office perspective, yet well continue to look at that and see how the sales continue to.

Ramp up and the level of work, but we're looking forward to getting our folks out back working and <unk> and just add on and constantly evolve the culture as we move forward.

Great. Thanks for that and then the last question I had is.

What are the sequence of events for the factors that you're looking at that.

Dictate when you.

Start putting capital to work and growing units again, I guess, what should we be looking forward.

It's a gauge when you might be ready to resume growth.

Yeah, you know as it is again I'd like to see you know I wish I had a real real crystal ball that would tell me everything that's going to happen in no one's going to go backwards or any of that type of stuff, but as we move forward. Obviously I think we're comfortable with our cash position as John mentioned to your earlier, whether with our burn rate and so forth, but as we go through.

You'll probably see us where we have a couple stores that were pretty close to being complete a end tend to be opened in 2000 Ah. So that we put a halt to you'll see us probably open those two to three possibly for depending on where it is a and 2000 a 21, if everything goes as per.

Plant and you probably see us the following year would be very very similar to that over the next two years is what I'd say.

Great very helpful. Thank you.

Yeah. Thanks.

Your next question sorry, if he would like to ask your question. Please press star one on your telephone keypad.

Our next question, it's come from the line or Andy Barish of Jefferies. Please proceed with your question.

Hey, guys. Good good to hear your voice just a couple of couple of quick.

Following conversation follow up conversations on the.

To go and delivery mix has there been any significant change you know in the last eight weeks or so what the ramp up of a bump premise.

Yeah, I mean, what we've seen which which we've been try and as a goal.

Is to increase our digital sales than what we've seen as our digital sales has far exceeded.

Obviously delivery and the call and if they start that way. So that was no <unk>. So I mean, its surpassed that so our digital cells are probably about 45% right now.

Our delivery.

Capital our delivery is still around 20% so its state.

It's increase but stay as a percentage of total off premise has stayed somewhat consistent.

At about 20%.

Okay and then on the.

On the mix of off off premise you gave us the alcohol number.

How much or other items like that family family meals and things like that just that kind of get a sense of what what the core menu is driving right now.

Yeah, I don't I don't have that at that next report with the Andy but I wouldn't tell you that it's it's a it's pretty strong in those family kit Yeah family gets a I would I'd like to say, it's you know in the in the Twentys, 30%, Yeah. It's still not obviously the majority obviously the core menu still driving it but.

So the family meals in the convenience of those are doing very very well and and like the Margarita kits is done very very well I can follow up with the day ran Andy on that.

Okay, No problem and then.

Do you have a sense you can share with us on the next so next 20 stores or or so as you go go from the current openings to you get back up to 92.

Yeah, I'll tell you by the end of this month will probably be opened in all of them, except five that I still have a to be determined on the last five based on the local municipality and that that's Colorado Yeah.

Yeah, but pretty much by the end of this month.

Okay. Thank you very much thanks, Andy.

Our next question was coming from the line of Brian Vaccaro of Raymond James. Please proceed with your question.

Hi, Thanks, and good evening wanted to circle back to the family meal kits and personally a big fan, but I'm curious if you think does have attracted a new customer or cage and even in some ways. During this period and as you gradually reopened the dining rooms are you planning on keeping those on the menu.

Absolutely absolutely and we're going to keep the alcohol kits on the menu too because I do believe that's the new the new way of the markets right. Now so we're going to keep all doesn't have those as a part of our to go and delivery options, except not though not the alcohol obviously.

Oh that has to be a pickup but yeah. It's it's definitely going to be part as we move forward and also a as far as a new customer maybe a little bit.

But again, a long time will bear that out one thing that it is as we definitely in this value conscious world that were obviously and now and how it's going to continue definitely throughout the rest of this year. There is a lot there isn't a little about a huge discount, but they're very very well priced very very well priced in all areas.

So, but again my plan is to keep that price point on all those things as we move forward through the rest of the year I'm really looking at it at the time frame of our February price increase that we usually do every year. So we're going to be a little bit I've ever even more value conscious as we move forward for the rest of this year.

All right that's great and then I know, it's very early but I wanted to circle back and asks about the recent sales trends I guess, the down 45% and the weekend in Fyseventeen.

Your break that down or help us frame kind of what the units at reopen the dining rooms look like versus those that were still off premise only and also I wanted to clarify what are those 50 units that you mentioned that were partially reopened where they reopen for the entire week all seven days.

Yeah.

So if you're looking at that Oh, Brian are probably the average unit they'd be take the total that started to weaken ended week. The total units opened were about 35 stores and I do have that next that that Nick asked earlier so of that 48.

Thousand 495.

Or 500 about 34% of that figure was dine in sales.

So.

That's an anomaly, but it's pretty close to 35 average stores and 30, 34% dine in Ah, Okay, what makes sense.

Yes, and what we're seeing.

And there are there there obviously you know you don't open everything up on one day, they've all been at different days a week.

And then Rob and I kind of so a couple of them have opened a couple of days a week one was up into full week. So it's all shuffle, then a little bit.

<unk>, Okay. That's great and then just last one John where the circle back on the weekly burn rate I just wanted to clarify that 200000 that that assumes you are paying full rent, but currently you're not paying rent if I heard that correctly and then also what does it embedded in terms of Evogene a run rate.

Well right now, it's basically our cash DNA burn rate not not a gap, but that DNA burn rate. It runs right around a a million 110 million to right now period. So four week period. So let me see its yeah, so three or 300000.

50.

[noise] Yep, Okay, and I was I was interpreting your comments correctly. It it's fully burdened with with rent, but yeah. That's we're just wondering if some of it yeah. Its normalized rent a because as we obviously defer some of those payments will have some extra payments as we go in the future.

Sure a into 2021, where some we've negotiated deferring those payments into 21, but on a normalized rent basis, that's what that's based on.

Perfect. Thank you very much HM.

As a reminder, if he would like to ask a question. Please press star one on your telephone keypad.

Our next question is coming from the line of top Brooks of C.L. King and Associates. Please proceed with your questions.

Hey, good evening, everyone I hope you're well.

Thank you couple of questions Yeah.

Couple of questions one on the the whole not paying rent and negotiating with the landlords I guess, where do we stand on how much of the base you've you reworked maybe with landlords and what has been.

The top ask has it been for abatement or is it Ben for more of a change to.

Our percentage sales type of model from the lease what what's your number one goal when you're talking to these landlords Oh, yes, that's a really it's all [laughter] zillow John never to start obviously, we talked about everything on that on Oh under the Sun on all that Fred you know our priorities at the beginning was a and at a April May June abatement.

And I'll be honest, we're pretty pleased on at least partial abatements on.

On a full abatements partial basements and about 15% of Oh, So we're proud and pleased with that.

And I've never to priority wasn't really a two to.

For the for them and a and that's probably a good number of those where you're starting to pay back to add some at some a little bit in 21, a lot of in 22 and beyond so that's been in its been a couple that are we definitely have talked about percentage rent and so forth on but overall, it's been a little bit of all but the main too I mean, one is deferment too low.

Later years.

Okay, Great and the second question, just coming back to capacity I know with Texas being it.

25% I guess early openings and just what you've seen traffic wise.

What do you think you're missing with 25% capacity and do you think that going to a 50% capacity in the Texas market will allow you to capture all the demand that you're seeing it the stores in that market now.

I think 50% you're going to capture all the demand, but at 25% you're not captain hardly any what you're doing there is really getting ready to get the 50% because I wouldn't know restaurants at 25% long term company wide not same store specific company wide as really who might be a little bit of a cash strain on your when you're trying to do that so our goal.

It was always to get ready to be set up test some stores at 25 to make sure that we're ready to go when it actually goes 50, you. An example in Texas is 50% is going to go 50% tomorrow. So that's how we have a few that we get opened up and got ready for brought some people back that a little extra training on the menu to really get up but the key for us was at 50%.

We we feel we can have some some some good sales that we can have some leverage with the other thing Todd to remember one of our advantages has always been our patios I'm not an extreme advantage when there's when it's raining, but during this time for for the most part most of these municipalities.

Include that in your capacity limitations, they just want social distancing out there. So we've been able to spread those tables up until fill or patios up beyond those capacity limit. So that's that's been helpful. In a lotta areas to help combat the 25% or 50%.

Okay, great. Thank you bye now.

Yep.

Our next question comes from the line of Andy Barish of Jefferies. Please proceed with your questions.

Hey, guys just circling back I know, it's early and this is still a bobbing, but you know the the operating.

You guys have shown during this process or there are they're learning kind of coming out of the last eight weeks, you know on on staffing and efficiencies and.

Running.

Running obviously, a very very lean back of the house in front of the house that that may be can apply going forward with restarts and things like that.

Yeah, absolutely right Andy will live obviously became very very quick very good.

At being able to do to go making their proper adjustments to our menu mix in our menu itself.

To wherever we can execute to go and these are these basically kits I I quit basis, we're going to take all those learnings as we go back into our reopening and how our menu might evolve through the rest of this year, but specifically more important into next year and has also our to go service levels and also service steps have also would be amended as well.

We move forward.

And and all that stuff and obviously part of that as you're really looking at you know all your European out like our guys are really good it looks in cash right now [laughter] had a really good at looking at cash. So obviously, there's going to be a best practices that will start and really where you know what talking about kilowatt hours and all that type of stuff now so.

It's a lot of all things, but we're expecting the come out of this better then we went into it.

Thank you.

Welcome.

There are no further questions at this time I'll now hand, the call back over the management for any closing remarks, okay, guys I hope everybody safe out there I hope everybody is doing well thanks for asking about us were both doing well in our groups doing pretty pretty well, but thank you. So much John I. Appreciate your continued interest in June.

We will always be available to answer any and all questions again, Thank you and have a good evening.

This does conclude todays conference you may disconnect. Your lines at this time. Thank you for your participation have a great either.