Q2 2020 Evertec Inc Earnings Call
Good afternoon, everyone and welcome to Evertec second quarter 2020, <unk> earnings Conference call.
This conference.
Being recorded.
I would like to turn the call over the Kay Sharpton, Vice President Investor Relations.
Please go ahead.
Thank you and good afternoon with me today, our Mac Schuessler, our president and Chief Executive Officer, and walking cuts real our Chief Financial Officer.
Before we begin I'd like to remind everyone that this call may contain forward looking statement and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent periodic FCC report.
During today's call management will provide certain information that will constitute non-GAAP financial measures under FCC rules such.
Adjusted EBITDA adjusted net income.
Adjusted earnings per common share reconciliations to GAAP measures and certain additional information are also included in todays earnings release unrelated supplemental slides, which are available in the Investor Relations section of our company website at Www Dot Evertec Inc. Dot com.
I'll now hand, the call over come back.
Okay. Good afternoon, everyone.
Well, we were impacted by the pandemic, we were encouraged to see improvement throughout the quarter in our transaction based business result.
We have continued to execute on both product innovations and our priorities in Latin America.
Beginning on slide four total revenue was $118 million decreased 4% compared to 2019.
Adjusted EBITDA was $50 million or 13% decrease as compared to the prior year and adjusted earnings per share was 38 cents, a decrease of 25% compared to last year.
Despite the headwinds we generate significant operating cash flow year to date.
The $7 million $11 million above prior year due to our results at effective cash management.
We returned approximately $14 million to our shareholders through share repurchases and dividends. Additionally, our liquidity as of June thirtyth.
$234 million.
Moving onto our business update on slide five for Puerto Rico.
Puerto Rico government started to reduce restrictions beginning in early May there was continued improvement in sales volume transaction volumes with significant left after June 16th.
Most businesses were allowed to reopen at that time, including entertainment venues with some restrictions such as required masks and limitations on the maximum capacity.
Merchant acquiring revenue increased from a trough in April to more than a 20% increase year over year engine.
Likely do depend up consumer demand and the benefits from federal programs such as cares.
Other funding from the government Puerto Rico.
We continue to focus on serving our clients needs on innovation and on executing new opportunities for example, and the second quarter. We worked with the department of labor to distribute unemployment benefits there were awarded as part of the cares.
Additionally, we engage and your contract with the department of Education, and which we recently provided new computers and support to public education teachers.
Our innovation related to the H.T.H. network continues to benefit us as we saw significant uptick and our digital payment channels.
Sample, our H. mobile P to P transactions engine were up over 50 per cent compared to last year, and our H. mobile business revenue increased more than 400% over last year.
We are encouraged to see consumers embracing these digital solutions at this trend has the potential to continue to drive additional growth.
The market in Puerto Rico.
Lastly, we are excited about our recently launched contactless functionality through QR codes, where there were 400 businesses now using this feature.
This solution allows the consumer to use their h. mobile app for a contact was payment transaction at the point of sale.
On slide six you can see an example, if the transaction.
The user takes a picture where their phone other QR code and that initiate a payment.
The feedback has been highly positive from both the businesses and the pilot as well as the consumers.
Most of the fast food restaurants on the island have implemented this payment option and we will continue to expand this convenient solution to more of our merchants over the coming months.
On slide seven I'll review, our Latin American business.
Regarding the environment, we are seeing different responses to the cobot 19th endemic in varying levels of restrictions and Reopenings for example in Santiago, Chile. There was an initial limited reopening and Dennis cases, a cobot 19 began to rise again locked down and restrictive measures were reestablish.
Costa Rica, and Panama have also returned to restrictions due to a rise in new cases, Mexico's a lot of construction in tourism to reopen even though cases have continue to rise.
Brazil cases continue to rise and the response measures vary between stage.
Despite the ongoing impact a cover 19 in these geographies we serve we remain focused on executing our lifetime growth initiatives.
As it relates to Santander, Chile, and city Banamex, we continue to make progress with each client throughout the quarter and are targeting to launch both programs before the end of 2020.
Well our results for the quarter were impacted by the effects of dependent make both in Puerto Rico, and Latin America, We believe our unwavering investment in our employees customers and communities. During this time a crisis strengthens our relationship with each of our stakeholders over the long run with that I'll now turn the call over to Lucky.
Thank you, Matt Oh, good afternoon, everybody.
Turning to slide nine you will see the consolidated second quarter results forever.
Oh revenue for the second quarter was honored and 17.9 million down 4% compared to 122.5 million in the prior year, primarily reflecting the impact of gold they.
Our revenue improved every most of all the quarter. That's business has reopened in Puerto Rico, we benefited from growth in our digital payment solutions as well that's from recent delivered.
We also had a headwind from one thing revenue of 2.5 meters in the prior year.
Total revenue for the six months was 239.9 million and down 1% year over year.
Adjusted EBITDA for the quarter was 50.2 million they decreased 13% from 57.8 million in the prior year adjusted EBITDA margin was 42.6%.
This represents a 460 basis point decrease compared to the prior year.
The decrease in margin primarily reflects the declining from sexual remedy.
The increase makes up the slower merch margin revenue, an increase cost impart driven by cold, but they did.
Yeah adjustments in the quarter for adjusted EBITDA included our normal adjustment for no gosh equity and share based compensation and also included a $2.8 million charge related to transexual fees.
Your do they are just the TV dot 106.5 million a decrease of 8% from 115.4 billion in prior year.
Just a net income for the quarter was 27.8 million a.
A decrease of 25% corporate to a prior year, primarily reflecting the lower I just have you done as well as increased operating depreciation and amortization, partially offset by lower gosh interest expense.
No what cash interest was partially due to a 25 basis point improvement in our interest rate are you sold before debt multiple dropping meet all the 2000 threshold last quarter.
Our adjusted effective tax rate in the quarter was 20.2%, reflecting the impact of Corbin 19 on the mix of business, that's well a discrete tax item and all the taxable items in foreign jurisdictions.
Excluding the unusual items in the quarter, we would expect to continue to see our tax rate for the back half of the year trend higher than last year to a range of 17% to 19% assuming some continuation of revenue mix shifts related to kogan thinking.
Adjusted EPS was 38 cents for the quarter decreased 25% compared to the prior year.
Year to date I just the net income was 61.3 major down 17% and adjusted earnings per common share was 84 cents a decrease of 17% from a dollar one in the prior year.
Moving on to slide Ted I'll cover our segment results starting with merchant required.
The second quarter merchant acquiring <unk> revenue decreased 8% year over year to approximately 24.8 million.
By the impact of lower sales volumes and the interest sexual revenue as a result of course.
The revenue improved each month, well, they low or negative 33% in April two growth of over 20% in June driven primarily by the continued opening a vehicle, Italy and the pent up consumer demand, that's what else extra funding from both local and federal programs, that's how we sold difficult.
The merchant mix during the quarter shifted from unusually high share supermarket pharmacies play more normal mix with most of this instead being opened by the end of June although with some limitations related to social they still think measures.
We also benefited from higher average ticket and higher spread in the quarter.
Most recently on July 16, the Governor returned to some more restrictive measures, which resulted in need to claim from the highs we experienced in June 20, more and more think results compared to last year, albeit pasta weeks.
Given the uncertainty are quoted and the potential impacts the consumer spending behavior. It remains difficult to forecast the impact what our future results.
Adjusted EBITDA for the segment was 30.4 begun.
Well they person.
Adjusted EBITDA margin was 54% or approximately 830 basis points compared to last year.
I think the impact of lower operating expenses, resulting from the lower transaction volume and the higher average ticket.
We would likely see these elevated margins declined as average ticket begins border bodies.
Well the six month period merchant acquiring revenue decreased 5% to 49.9 million primarily due to the same reasons I referenced for the quarter.
Adjusted EBITDA year to date for the segment was 24.7 made Oh.
Oh Super said that adjusted EBITDA margin was 49.4% Athree hundred 60 basis points increase of compared to last year.
Slide 11, you would see the results for the maintenance services Sports Authority and the Guardian segment.
Revenue for the segment in the second quarter was 27.5 million.
Down approximately 10% that's compared to last year, primarily due to lower transaction volumes, mainly for the same quote, but they didn't reasons that impacted our merchant segment.
Sounds like some volumes improved throughout the quarter ending I think I think six person for the month of June from a low of nearly 43% in April.
Even if they see where declined an improvement <unk> ATM transaction volumes. Although these have not come back that's true.
These were partially offset by age mobile an age old business trips actual growth as well as neutral cycle volumes and incremental gravity recognized from new services, such as the healthcare benefit Garden, We mentioned earlier this year.
Adjusted EBITDA for the second that was 13.3 million.
Decreasing 35% that's compared to last year.
Adjusted EBITDA margin was 48.3%.
Over 18.3 percentage points, that's compared to last year, primarily due to low revenue and operating expenses related to give me. The post implementation cost that's will ask increased operating expenses related to cope.
I'm sorry, Minder. This segment, that's mostly fixed cost related to technology infrastructure.
Your do they revenue for the segment was 57.3 million down approximately 8%.
Yes.
Year to date adjusted EBITDA was 29.4 billion.
Don't approximately 29% and adjusted EBITDA margin was 51.2%.
Don't approximately 15.4 percentage points as compared to last year for the same reasons previously mentioned.
Well, it's like 12, you will see the results for our payments every said let them segment.
Revenue for this segment in the second quarter was 19.8 million.
Approximately 6% compared to last year.
Decline was driven impart by cold gaining back from transactional revenue.
Specific customer initiatives as well the negative effect of anticipated attrition of approximately $1 billion.
FX impact that doesn't mean, they got easily by approximately 1.2 million does that she now based on the Brazilian real on the Colombian peso all declined between plenty of 40% when compared to the prior year.
These negative impacts were partially offset by the acquisition of place to be that's lost progress on projects throughout the quarter.
Adjusted EBITDA for this segment, what 6.1 billion.
Adjusted EBITDA margin was 30.7%.
Don't approximately 610 basis points as compared to last year.
Given by lower revenue described previously.
So the 40 here, we continue to want to see they claim that we shouldn't be 2020 will be between three to 4 million and based on current trends in foreign currency, we will likely continue to see a they are they in fact, one a year over year basis.
You are delayed revenue for this segment, what 41.4 billion down approximately what percent of compared to last year.
Year to date adjusted EBITDA for the segment was 14.3 million, that's adjusted EBITDA margin was 34.6%.
On slide 13, you'll find the results for the business Ocean segment.
Based solutions, rather than the second quarter was up approximately 1% to 55.5 million.
Revenue, increasing the quarter was primarily due to new services for popular that's one of the government afford a regal partially offset by one type project revenue and hardware software sales benefited last year by approximately $2.5 million.
For the quarter.
Adjusted EBITDA was 24 billion that adjusted EBITDA margin was 43.3 person.
Down approximately 70 basis points as compared to last year.
The adjusted EBITDA margin decrease was primarily driven by higher operating expenses related to <unk>.
Your two they'd be the solutions revenue was 111.4 billion.
<unk> five per se and adjusted EBITDA for the segment was 61.5 married with a 46.2% margin.
Moving on to Slide 14, you will see a summary of corporate another.
Our second quarter adjusted EBITDA was a negative 6.6 million.
Decreased 4% compared to prior year, we controlled expenses, such as travel and professional fees, that's what else lower incentive compensation accrual.
Our adjusted EBITDA percentage of total revenue at 5.6%.
Approximately flat with the prior year.
Year to date, our corporate an alert was 13.3, maybe four or 5.6%. That's a percentage of total gravity unfavorable approximately 20 basis points when compared to last year.
Moving on to our year to they got show overview on slide 16.
Beginning gosh bodes well for approximately 131 big.
Including restricted cash of approximately 20 million.
Net cash provided by operating activities with approximately 87 million, an 11 million increase as compared to prior year.
This includes the impact of an improvement in their collections of accounts receivable and to a lesser extent benefit from tax payment deferrals waivers in some countries related to koby 19 that we were able to take a bug digital.
Capital expenditures your two they were approximately 18 million.
Continued lumpy separate approximately 45 million for the full year and some acceleration of capex in the third quarter.
We paid approximately 24 million lumped them that payment premium withholding taxes and share based compensation and 2 million up all the debt pay downs, but as of quarter. In we continue to have 50 million Roadrunner revolver, resulting in a total net debt decreased approximately $30 million subsequent to that.
The quarter, given the increased confidence into cash and liquidity position, we repaid before revolver bottoms.
Year to date, we paid cash dividends up 7 million.
Although we did not repurchase any stock in the quarter total repurchases of common stock year to they were approximately 7 million.
We have approximately 23 million available for future use under the Companys share repurchase program.
We recently announced another five cent dividend to be paid on September 4th Twentyth way to shareholders of record as of August start.
Our ending cash balance as of June Thirtyth, that's 169 million.
This included approximately 22 million of restricted cash.
Moving to slide 16, you'll find a summary of our debt as of June 30 2020.
Hi, good quarter, ending net debt position was approximately 376 million comprised of approximately 147 made up of unrestricted cash and approximately 523 million total short term borrowings and long term debt.
Our weighted average interest rate was 4.3%.
Our net debt to trailing 12 month adjusted EBITDA was 2.1 place an increase from last quarter, primarily as a result, although reduced trailing 12 month adjusted EBIDA impacted by koby they'd be.
As of June Thirtyth total liquidity was over 234 million.
This bottom exclude restricted gosh and includes the available borrowing capacity under our revolver.
Given the very unique nature of the cold conducting pandemic and continued uncertainty.
Providing that any old guy.
We were encouraged the June was particularly strong but it may not be represent the future results for the longer term in box of this pandemic.
We are pleased with the new Department of Education contract that Mike mentioned, which will provide additional revenue during the third quarter. We continue to look for opportunities in which to help the government. That's what else are all their clients manage through the situation.
In summary, he was a positive to see sequential improvement in the second quarter, well, we continue to whatever they called it 19 situation I mean, something back to our business, we're executing well against our longer term initiatives such as you know, we shouldn't Puerto Rico, New services with the government Oh progress on key project in Latin America, all of which should benefit us.
Over the longer term.
We will know open the call for questions.
Operator, Please go ahead and open the line.
You will now begin the question answer session to ask the question you May Press Star then one on your phone.
Have you are using the speakerphone, please pick up your headsets for personal to keep.
If any time your question has been addressed and you would like to withdraw. Your question. Please press Star then to at this time, we'll pause momentarily to assemble our roster.
<unk>.
My first question comes from John Davis with Raymond James. Please go ahead.
Hi, Good afternoon, guys. Appreciate the commentary on merchant and June and then kind of where we are in July that any commentary on some of the other segments on kind of how they performed well in July to date like last quarter, you gave kind of an update on all the segments for April So just maybe some at least some color.
Commentary for the trial would be helpful.
Sure John This is working.
In terms of Oh payment.
Correlation always need to what we mentioned in merchant acquiring will be there. So we have seen.
Sanctions and come back a strongly going back towards the April on me.
As I mentioned in the prepared remarks, and the was Ah Ah kind of a roll back off some of the more restrictive measures still a lot more flexible down what we originally had here in the month of April and that has slowed down a bit what we saw in the month of June so transactions going to do we move on and we are encouraged by not movement.
In the month of July and what he has slowed down a little bit just compared to what we saw in the month of June.
When we look I'm not I'm very similar us well, although as I mentioned last I'm not I'm, just given the diversity of products and the fact that not all of our revenues are drawn sexually driven and then what I'll do you do that we had we not segment. It did not the same what we have seen transactions a come back from from a trough in the month of April.
May.
I mean, they gave us be that's always Sean as you can see I mean, we still reflected some slight growth for the water we again due to.
Hobbled, we're doing it is with the dollar man, we a mention the department of education contract that we were just awarded done that that should be helpful to Q3, but overall that segment continues to be day, yeah. So John what you'll see as in Puerto Rico like much of the country in the world, there's been a slight pull back and I'm sort of research.
Directions, but business is still operating on the island and then as Joaquin said, you know, we once and new business with the governments and we found ways to continue to help support them.
Through the pandemic and finding new business opportunities.
Okay. No. That's super helpful. And then back appreciate the commentary I'll call Dth revenue up 400% any other stats you can get inside that for us how meaningful that today ill user base no increase in transactions per user and any other type of stats that you could get to help us or whats h. mobile what kind of the progress.
We're seeing there.
Yeah. So let me break it down at a couple of different components, you know as it relates to my opening comments I mean again like the rest of world, We're seeing a big shifts digital transactions and we are doubling down on our investments in that area. So on H.T.H. mobile the P to P. App, we saw a 50% increase in transactions, but more interesting interest.
Thing on Eightyish mobile business, where a small business like a food truck can accept these digital payments from a that the debit accounts, we saw 400% increase engine.
Additionally, we talked about.
And we did a press release last week, we now are rolling out QR codes. So you now yet as most people know a T. H is the number one payment brand on the island and when they teach mobile now you can actually walk into a Mcdonald's at Burger King.
Many of the fast food restaurants actually most of them take a photograph of the QR code and now pay at the cash registry without a card being present and so we're seeing a big shift to digital some of it as defensive like you know the fast food restaurants are existing customers, but maybe little display some cash with that and some of it is brand new categories of spend like.
Th mobile business, where we're seeing new small business enterprises that used to accept cash that now no longer one x. I want to accept cash.
Okay. Thanks to them all the capital allocation hard yeah, do you guys feel comfortable yet obviously in the second quarter, you're buying stock back given kind of what's going on.
You feel comfortable buying stock back maybe actually doing a deal later this year I'm just kind of how you're thinking obviously the balance sheets in great shape I'm, just trying to figure out how when and if he has to be comfortable doing something with a capital in the near each other.
Yeah, but I would say is again, we everyone I think moved into the pandemic with a in a significant amount of caution.
As a walking stated we did pull down on our revolver and we've now paid all that back so as we move back to normal levels.
You know, we will I'm sort of rebalance our capital allocation.
Sort of work, but again, we still want to be cautious given that the endemic is still you know spreading through through most of the economies, where we do business.
Okay, and then last quick Molly one brought came.
Higher tax rate is that something you see just kind of in the back half of this year, that's something we could it expects kind of going forward and maybe some color on what's what's driving that tax rate higher and I said revenue mix shift, but anything else there to help us.
Thanks, guys.
Sure no the expectation of this higher tax rate is really the second half of blamed Winnie digging into consideration that that we get to a normalized level of kind of business mix by next year. So we don't expect us to be going on a run rate into future years, John but.
It is something that we need to do to monitor on to the extent that live on Danny continues to have a an impact on the mix then we'll come back and kind of realign that rate, but the expectation is that as we go back to what we had pre pandemic that their rig comes back to a normalized 13% hey, there about.
Oh, well have run rating to a future.
Okay, great. Thanks, guys.
Thanks, John.
The next question comes from Bob Napoli with William Blair. Please go ahead [laughter] good afternoon.
Good to talk to you or I guess just.
Do you look at the trends I know, it's very hard when I when they economies opening and closing to forecast.
Your business, but given.
Yeah that April was by far the worst.
Monster and June was by far the bad if the trend stayed like they are now what I mean, I would guess that revenue should be up into third quarter versus the second quarter at a fair assumption.
The way I mean by what I would say is as we all know these are unprecedented times, but the one thing that I think everyone has learned is how to accommodate the the pandemic doing business in going you know about in a business and and going out and getting.
Got you know essential isn't that type of thing so our hope would be that we've learned to adapt and that we won't see the closures to the significant level than we saw in the past we saw in April but again unprecedented times, we can't predict the future at this point, but we do believe that the world is learning to adapt it would depend dynamic.
And so.
You know that should be helpful. I don't know no. The only thing I would add Bobby.
Yet June June what's the best month, but are there are certain factors in there that we're looking at that we know aren't necessarily sustainable at those levels right. We know that there's a lot of of pent up demand one off people just staying in their homes for a long period of time not not doing much of buying and then having.
Just kind of freedom to go out drove some of that volume and then we also have these federal programs. That's lost an old for rounds, putting additional money to people's pockets.
The leaving a really high average do you get which is something that that I've seen any for what we thought for the her game, where all of that funding coming into the island entered into the economy drove off our real high average do you get on the expectation would be that that that will normalize over time, I think one dose programs [noise].
Who is going to expire and knock said people kind of get used to just going back to normal handling the regular purchases are they have they did in the box. So.
As we said definitely a great month on July looks strong as well, but there are certain things in there that we know aren't aren't necessarily sustainable over a longer period of time.
Great I guess, a one thing that maybe it's sustainable was that ramp up in digital payments you happen to have a lot of cash in the market you search. So maybe does this do you think this accelerate your potential growth rate Oh host pandemic given the shift.
We know what we what we found as whether people are going to their phone to check the deposits from their unemployment deposits, whether they're going to use a T.H. mobile because they want to avoid the cash transaction and now they can go buy food basking a QR code, we do they get that it's going to change People's behavior is permanently to wear.
They are able to use a teach mobile and the need for a T.H. levels greater so I think it's going to be great for that business and also placed to pay you know we bought the gateway out of Columbia.
And we are localizing that as well, but we do believe the shift to digital is because it's it's force people to change their behavior and once they change it we think it'll be difficult to go back.
Hey agreed last question and I'll turn it over a city banamex in Santander Chile.
Both an expected launch booked for the had to 2020 do you have any thoughts on what the size of those businesses could be over the next couple of years.
Just sometimes I think revenue contribution in.
My hope is that when we launch and by the end of this year they'll be in next year's guidance.
Okay and it'd be in next year's guidance. It would have to be at least a couple of percent of revenue were.
Well, what we had that is that yeah, I'm fascinated shelly will be meaningful to that and the combination of the two in particular will be meaning to meaningful to the lab town segment and overtime, Bob as you and I've discussed our plan is to have multiple clients in countries like Chile with multiple products. So we'll have cross sell opportunity. So.
Again, we are on track and very focused on both of those projects and we still plan on launch. It goes by the end of 2020 and it will be material for that segment and 2020 and beyond the end and not just the the revenue in those deals themselves, but the reputation that it builds for.
US throughout the region to land you business.
Okay. Then your balance sheet looks awful made it pretty strong right now Oh. Yeah are you are there opportunities cropping up that you're comfortable taking a you know investing in a M&A wise or other it.
At least I mean, M&A has been an important part of the company, particularly as we grow outside of Puerto Rico to acquire the right products and to expand a role attacks I would tell you. It is there is still a little bit of dislocation and what are the you know valuations and it is a bit more complicated to due diligence virtually but it is.
Something we're very focused on a and if we find the right thing I'm you know we will we will look at it very very closely.
Thank you appreciate it.
Uh huh.
Again, if you have a question. Please press star and then one.
Our next question can come from James specialty.
With Morgan Stanley. Please go ahead.
Hi, this is still on for Jason.
A follow up on the sand and there on July timeline that you set out happens you mentioned you want to watch by end of year I, just wanted to hear whether or not everything is going out do you expect Daddy you know how its product flash collaboration going on there given the yeah. The restrictions that we've seen in different Latin American markets.
Sure So what am I well they said it previously we as we process all the all of the major brands already process the transaction and we are.
On schedule. The thing that has slowed us down are just the closures of business the move up Santander, Chile to a virtual environments or just the disruption of the pain.
But we Oh.
I'm very confident that you know given our current plans we'll launch this before they ended the year.
Great and then on catch Moselle I.
I believe you mentioned on it and this isn't something that does not could you.
Yes, the or you know given some sense as to what portion of that strength is it's not being driven by yeah stimulus flash unemployment funds that are going through versus I am more recurring permanent shift towards that you know.
So there's been an ongoing shift to digital even before the pandemic. We saw you know significant increases in IDH movable no will being used for PDP transactions. We were when we rolled out the donation feature when we rolled out the business feature for small businesses well, we see now is it.
Significant acceleration or acceleration and not adoption and some of it is potentially unemployment funds that people now have in their pocket or or social programs, but it's just become a general trend for all sources of income regardless of the source of income the preferred way to spend now it's there's some type of digital applications.
Perfect. That's good to hear on just one last one on you know you mentioned some of the new.
Work that you're doing for the government in Puerto Rico can you give us some color as to what present stuff that at least a portion of it weighs on more transitory related to you did this allocation different then that's fine for says you know some potentially more permanent relationships from here.
So we have a large relationship with a with the government of Puerto Rico across multiple agencies. The one that we did when do we announced on this call with the department of Education is actually deploy a and help maintain Pcs.
In the public school system. So there will be immediate impact to 2024. The the initial transaction and then there'll be an ongoing benefit for a few years on the maintenance piece as well. So that is that'll have an impact across multiple years, but as we.
You talked to the hurricane when we were able to to do more business with local commercial clients as well as the government. We're fine now with a pandemic we are becoming the partner of choice on the island when they look for technical partners, given our commitment to the island and the size and scale.
Its stability that we can provide.
Perfect. Thank you very much.
Thank you.
This concludes the question answer session I would now like turn the conference back over the next schuessler for any closing remarks.
Thank you I want to thank each of you on the phone for your support of Evertec, a we hope that you stay safe and look forward to speaking with you in the future. Thank you.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.