Q2 2020 Urban One Inc Earnings Call

Ladies and gentlemen, thank you for standing by welcome to urban ones Twentytwenty second quarter earnings Conference call.

I've been asked to begin this conference call with the following Safe Harbor statement.

During this conference call urban one we'll be sharing with you certain projections or other forward looking statements regarding future events, where its future performance.

Urban one cautions you that certain factors, including risks and uncertainties referred to in the 10 10 pardon me 10-K's 10-Q's. Another reports it periodically files with the Securities and Exchange Commission could cause the company's actual results to differ materially when those indicated by its projections or forward looking statements.

[music].

This call will present information has of July Thirtyth Twentytwenty.

Please note that urban one disclaims any duty to update any forward looking statements made in the presentation.

In this call urban one may also discuss some non-GAAP financial measures in talking about its performance.

These measures will be <unk> reconciled to GAAP either during the course of this call or in the company's press release, which can be found on its website at www dot urban one dotcom.

A replay of this conference will be made available <unk> available from 12 PM Eastern time, 730, Twentytwenty until midnight eight one twentytwenty.

Callers may access the replay by dialing one eight to six 620 710 or what.

International callers may dial direct four zero to 970 0847.

The replay access code is to 877475.

Access to live audio and a replay of the conference will also be available on urban ones corporate website at Www Dot urban one dotcom. The replay will be made available on the web site for seven days after the call.

No other recordings or copies of this call our authorized or may be realized.

I'll now turn the call over to Alfred C. Liggins, Chief Executive Officer of urban one who is joined by Peter D. Thompson Chief Financial Officer.

Again thank.

Thank you operator and also joining me.

Joe is a journey drove the chief financial officer of TV, one because we need to drill down there Karen Wishart, our chief administrative officer.

And Christopher Simpson, who is our general counsel.

You are.

In the press release as expected Q2.

What the very tough quarter because of co that.

We guided yeah, that's yeah folks know where are our business was pacing down too.

And it came in pretty.

Pretty much as expected I think our EBITDA came in better than we had expected the company got an extraordinary amount of cost to men upon minimize the impact of EBITDA and I just want to take my hat off to the management team and all the employees who have done an amazing job.

Really battening down the hatches as at this virus isn't really ravaging the economy, and Ah and our advertisers and businesses et cetera radio was the most impacted.

We see Q2 as the bottom.

Fortunately and we're starting to see some quick got sequential improvement going into Q3 for sure.

Our cable business is helping us a lot and we'll actually see EBITDA at TV, one grow year over year in 2020 in spite of CRO in spite of cobot.

Given the current climate for social Justice. We're also seeing a lot of new interest and our audience and platform as well I'm going to go into some more detail. After I turn it over to Peter who is going to drill down on the numbers and then he'll hand, it back to me and I'll give you a little more color on.

Okay. Thank you often so net revenue was down 37.5% for the quarter ended June Thirtyth 2020, approximately $76 million.

Alfred said the impact of covert 19 was felt most strongly in our radio segment.

Net revenue was down 58.4% in the second quarter.

National AD sales were down 49.1%, while local advertising sales were down 61.2%.

On a same station basis, which excludes Detroit.

Radio segment net revenue was down 36.6% I think excluding political it was down 7.1%.

The worst effect to categorize.

Entertainment, which was down 19%.

Food and beverage down 83%.

Travel and transportation down 72%.

Auto down 71% until it comes down 68%.

Net revenue for reach media was down by 66.6% in the second quarter.

Which approximately 45% is attributable to the postponement of the Tom Joyner Fantastic voyage cruise.

Adjusted EBITDA.

It was down a region by approximately $1.7 million or 51.6% year over year.

Tom Joyner Fantastic voyage event generated $1.7 million of adjusted EBITDA in the second quarter of 2019 was postponed this year due to the pandemic.

Net revenues for our digital segment decreased by 20.4% Inc. second quarter adjusted EBITDA for the digital segment decreased by approximately $129000.

We recognized approximately $43.8 million of revenue from my cable television segment during the quarter a decrease of 5.7%.

Cable T. ADVATE cable TV advertising revenue.

It was down 4.4% driven by lower demand due to the pandemic.

Leading to an average unit rate decrease of approximately 14%, which was partially offset by higher delivering.

Cable TV affiliate revenue was down by 7.4% when the rate increases of approximately $1.3 million offset by chairman of approximately $3.3 million.

Cable subscribers as measured by Nielsen finished Q2.

51.4 million down from 51.8 million at the end of Q1.

We recorded approximately $40000 of cost method income less administrative expense for our investment in the MGM National Harbor property for the quarter compared to $1.7 million last year.

The decrease is as a direct result of the casino closure do should Corona Cobot 19, Maryland State mandates casino is now reopened a 50% capacity with enhanced health and safety protocols.

To a later date.

2019, Tom join a fantastic voyage generated.

Expenses of approximately eight $7 million.

Other reach media events generated expenses of $600000 and radio station events general expensive approximately $2.9 million during the second quarter of 2019.

We saved approximately seven $1 million, an employee compensation expense reductions.

Combination of layoffs fellows contemporary pay cuts.

We've also.

Savings of approximately for $1 million and reduced or delayed marketing spend.

Two $3 million and lower programming content amortization, one $8 million and contract labor on talent cost savings.

One $4 million and reduce travel and office expenses.

In addition that will lower variable expenses, such as commissions and rep fees traffic acquisition costs of music license fees.

<unk> three $2 million.

Radio operating expenses were down 34, 7% radio S. G&A expenses line was down 37, 7%.

From lower revenue variable expenses, such a sales commissions and Nash national Rep fees cancellation of station events employee compensation and discretionary marketing promotions.

Productions.

Radio programming and technical expenses were down 28, 9%, mainly from lower employee and talent compensation and lower music royalties.

Reach operating expenses were down 68, 5%.

Program in in technical expenses were down 26, 1% driven by lower talent, an employee compensation expense.

Reached SG&A expenses were down 87, 9%, mainly Judy cancellation of the cruise another events.

Corporate SG&A expenses, it reached down 15, 3% due to staff compensation savings.

Operating expenses and the digital segment were down 20%.

Mm bye lower trying to an acquisition cost reduced sales, an adult add operations costs and lower editorial content costs.

Cable T V expenses were down 32, 7% year over year sales and marketing expenses was down by for $1 million programming content expense decreased by approximately two $3 million.

Compensation and benefits were down by $1.1 million T and he was down by $400000.

Operating expenses.

Corporate an elimination segment down by 12%.

And a favorable variants of $800000.

Or just wants to the company's employee agreement award liability and severance which are excluded from adjusted EBITDA, none of those adjustments corporate SG&A expenses by approximately $130000 with lower employee compensation offset by high legal fees and higher operating lease expense.

The second quota consolidated broadcasting digital operating income was approximately $32 million down 33, 1%.

Holiday to Indigested EBITA.

$24.5 million, a decrease 38, 1% year to year.

Interest expense was approximately $18.4 million for the second quarter pair to approximately $26 million for the same period in 2019 decrease at 10.6%.

Make cash interest payments, a approximately $22.4 million on it's outstanding debt and the quarter.

Senior secure MGM National Harbor term loan balance increased by pick interest of approximately $525000 Underdraw three $6 million.

Proceeds from this draw we used to pay down the senior unsecured term owned by the same amount.

So include enamel translation.

One was paying download approximately eight $4 million.

The term lumpy was paid down by approximately $824000.

Provision for income taxes was approximately $465000 in the quarter and there were no cash taxes paid.

Net income approximately $1.4 million.

<unk> per share compared to net income of approximately six $6 million or 15 cents per share for the same sort of 2019.

For the same quota capital expenditures were approximately one $2 million compared to $1.4 million last year.

The company repurchased 3 million 208288 chairs a class D common stop and the amount of approximately $2.4 million and executed Stock-based tax re purchase of 155771 chairs plasty common stock and the amount of 140.

Thousand dollars.

The covenant purposes L T M EBIT.

I'm only $129 million net senior leverage was 487 times against the covenant.

Five eight.

Five times.

That was approximately eight $834 million compared to $123 million of LTM reported adjusted EBITDA for total net leverage ratio of 675 times.

And with that I'll handbags out [noise].

Thank you Peter cells.

Like the the.

Recoveries really for us gonna be.

All about.

Radio and.

And what that trajectory is gonna be that's really.

The wildcard for US we had to make some.

Assumptions of how we thought things that we're going to bounce back.

After after the recovery I think the first assumption is that <unk> excuse me. After reopening first assumption was that things were going to bounce back.

And and that's the good news they have it's still too early for us.

<unk> exactly what that percentage down.

Q3, yeah.

Is going to be yeah are are July is kind of finishing down.

And the low forties and that's down from.

Kind of high fifties that we were seeing in Q too. So that's that's good progress.

Q4.

Is going to be important we've got.

Political.

Add spending that's gonna be coming into play <unk>.

<unk> started.

Our conversations.

The deep conversations with the Buyten campaign.

And are very encouraged now and hopeful about their need to reach our audience. When we look to our other businesses.

We feel we feel pretty good about the rich media, which is national radio not local.

Depending.

Right now we're forecasting that they're EBIT that should be about flat to 2019 at about 7 million Bucks.

T V. One T V. One has been a great bright spot.

We did 80 $283 million of EBITDA 2019, and we should probably get.

To $90 million of.

EBITDA this year at T V. One.

They just had.

Some really good news T V. One got there first.

Virtual in bpd over the top lunch.

The service phyllo.

Launches T V. One at the end of July two 700000.

<unk> and getting incremental carriage.

T V. One which is an established networks been around a long time.

Very good.

Very good thing.

<unk>.

Our first.

<unk> M D V D.

OTT.

Deal for that network ratings had been strong yeah.

At T V. One people the good thing about the yet.

There's nothing good about the pandemic the good thing about our business.

In the midst all this is that with people that have been watching.

A lot more television.

MGM National Harbor is not a huge part of our business, but it is a meaningful.

Part of our business and they and they were closed.

For for most of.

Q too.

Opened up at the very end of June.

July is almost.

Over.

They are open up at 50% capacity I actually have been out there yep multiple times.

And.

Talking with the folks out there and.

And they're opening up to it very strong activity.

Great.

Social distancing.

Health.

Health and safety protocols.

Even at 50% capacity, they're going to do some decent numbers I believe.

Something I'm still learning that business. Yeah. Every every business a lot of businesses have these 80 20 rules, where you get 80% of your revenue for 20% of.

Of your customers and.

And I think the regional casino model.

Is very similar to that so what you're seeing as you're seeing very loyal hardcore customers.

Come out and and doing business. So we're going to start to see revenue from that.

This month.

Now at a respectable level.

Mentioned earlier.

That there has been.

New advertiser demand.

An interest in our platform Proctor and Gamble has come out and made a big commitment to using.

African American owned media <unk>.

We've got some initial.

Additional business from them.

In June we're having a great conversations with them about growing that relationship.

There are.

Number one advertiser in the World and then a leader that other advertisers.

Look too and.

Two.

Conversation.

Round.

Social Justice.

Israel and.

And they are investing in it as well we've had.

Great and continue to have great and better.

Conversations in further along than we ever have been with companies like.

<unk> capital one bank of America.

And target.

We've also seem broader interest from pharmaceutical companies do to cope it and also the disproportionate to the fact that it has on on African American communities and and also lastly.

As part of our <unk>, we have a marketing agreement.

With them that.

They were to invest a certain level of marketing over a five year period and.

Marketing agreement is 12 31 21, so what I also expect is that there'll be coming back online.

To to fulfill that marketing agreement, which actually still has.

Close to half of the original 5 million dollar commitment left on it so that's going to be.

Some wind in our sales going into.

The back half of this year and into next year.

So yeah, I would say net net we feel that we're fortunate that.

We weren't a restaurant or some other businesses or even casinos that we're closed down.

Yeah totally even though the radio business has gotten hit hard at least there was.

A significant amount of revenue still running through.

The business and then our diversification.

Has.

Left us with other business divisions that.

Have.

Stood the downturn in the pandemic.

Much better than the radio Division has.

Which is put us in a position.

Work our way through.

The current current state of affairs.

Hopefully things improve.

Sooner than we expected, but certainly these rollbacks.

I have not been helpful.

Houston is a big market for us. It's also a hot spot we definitely seen.

The rollback effect revenue.

And a market like Houston.

Other places are are doing better and.

And moving up quite nicely.

So with that operate I'd like to turn it over to.

Q&A section so we can.

Take some questions from folks that or online.

Thank you, ladies and gentlemen, if you would like to ask a question. Please press one zero on your Touchtone phone.

You'll hear an indication you've been placed into the Q and you may remove yourself from the cube by repeating the one that's zero command.

If you're using a speakerphone, we ask you to please pick up your handset and please makes it from your phone is and muted before pressing any buttons.

Again for questions press, one zero at this time.

We do have questions queuing up one moment, while we got their their names.

Our first question will be from Aaron What's go ahead. Please.

Hi, guys. Thanks traveling me on the color.

Just trying to think about the overall radio AD environment do you feel that your AD performance in Hastings relatively in line with the overall marketplace or your station.

Performing or lagging a little bit and any reason you might think that to be.

I like I don't know for sure yeah, because I haven't seen anybody else's numbers.

I think you're going to find that we're going to.

Better yeah.

I'd like I'd been channel checking it'd be talking to other people.

And.

And the folks that I've checked with we definitely have been outperforming.

Those pacing numbers and so.

Yeah, I'm going to wait and see how things Rowland, but if I had the bed I think you're going to see us.

Outperform yeah.

Figured out for Q2, we got the milk cap data in on on a total spot basis.

We'd be the molecule by about four percentage points Yep. That's so.

We got.

We got a number of things going in our favor.

And not the least of which is some some renewed interest in our platform R stations yell are still performing pretty well.

Ratings wise, even though overall ratings went down but yeah, I think you're going to see our radio business outperformed.

Alcohol.

Yeah.

Yeah.

And your comments around some of your advertisers, having an increased focus on African American owned and operated focus businesses. Do you think those offers will benefit across your platforms or you think it's gonna be more focused on T V or radio specifically.

They've been cross platform conversations.

Proctor and Gamble conversation was.

Digital radio and.

T V.

Okay got it.

And last one for me, it's it seems as though traffic volume.

Had.

Increased or recovered a lot over the last few months and I know, there's some ebbs and flows to that.

As Cove, it kind of dovetails or improves in some areas, but traffic improving seems to be a theme.

You still seeing some pretty steep down pacing for third quarter down 40% give or take what do you think it'll take for the advertising to come back and follow those sort of traffic volume improvements that we're seeing out there.

I mean, you got it you need a stabilization on the way we live right I mean, it's.

You got you got businesses that are operating at.

50% capacity, 25% capacity.

You can only.

So many people in.

Store at any given time, you gotta be six feet away everybody's got to wear masks that puts a damper on some of the experiences that.

You've had zoomy right now, we're all focused on being safe and trying not to get sick and and people are dying, but in order for business to really come back you're going to have to see a.

You're gonna have to see a handle being put around this virus I think you're gonna have to.

See more certainty around.

The slow a infection that things.

Cases are dropping and then.

And then what's the.

Trajectory of a vaccine I had a conversation last night.

Somebody who.

Yes, hi up in one of the major pharmaceutical companies.

And and they were really bullish about.

Vaccines, making it to the market.

At the end of the year.

And this was this was a very well placed person at a very big pharma company. That's participating in all of that so yeah I. Yeah. I think that's what has to happen. That's why you don't know what whether or not.

Q3 is going to be down 40 or down 30, because you just you know.

Houston was Texas opened up first you really like okay, great. We're off to the races were in Houston in Dallas, but then.

You start to see.

Those infection rates in Houston, explode and hospitalizations and.

And then it slows and I mean, and we definitely saw money get cancelled.

From that so and then I'm starting to read that things are flattening out the curves flattening and if that starts to happen and if you do get your arms around it then I think you'll see.

Another bumper would definitely been seeing an increase of local advertiser activity, but we got to get out of this choppiness people are still very scared and very cautious.

The back to school issue is problematic.

Because at least a large portion of our workforces.

R. R women, who will also care.

Four.

Children and is there a difficult to school from home and.

And work at the same time and business is that going to have to.

Adjust to that.

And so.

Like I'm, starting to ramble as that by like you know really know something that that's just my viewpoint of what has to happen is if you just gotta get back to more of a normalization I think people I don't think no people want to be normal I mean, this really taken a toll on folks about.

Wow.

Mental health and how they feel in their day to day lives. So people people are going to want to go back to doing what they have done before.

Just got to get the safety.

Alright.

Operator can we.

Next question.

From the line of been Briggs go ahead.

Morning, guys. Thanks for checking the questions I just have a quick one here are you still I heard you give guidance on.

For EBITDA at T V. One and 2020 of about $90 million, that's up call at 10% or so.

2019, EBITDA looks like it was 80 283.

A T V. One reach you said it'd be about flat did you give guidance that I missed for for the radio EBITA or is it.

Thank you.

You didn't miss it [laughter].

Yeah, Yeah, okay.

Yeah.

It's just too I mean, I would really I, just don't know yet.

Yeah.

No better and another month right after going to see how.

Q3 starts to play out where a month into Q3.

Already I can tell you this.

For July I mean, we added money pretty much.

Every day.

One of those were.

Money added.

Was more positive than cancellations pretty much every day and that was the first month that we've had that yeah and.

And look and there wasn't great news throughout July right. It was.

It was choppy, but so we were seeing that so I'm hopeful.

But this is.

To me this is not whether or not things were returned to some level of normalcy, it's just win and weather and who can and who can withstand who can withstand the elongated pain.

Yes.

Yeah, so and kind of actually.

I know you ended the quarter with a pretty strong liquidity position you had $70 million cash just in that vein of.

But when I know liquidity is at the top of People's minds right now.

Can you could you give it a cash balance as of today or even though more general you guys feel comfortable with your what's your current liquidity position.

And your liquidity position looking forward.

We do I think as of this morning.

Around $76 million.

Assuming all.

Two checks clear so.

Pink.

Actually liquidity is held up very well.

So we feel we feel comfortable with that at some point I think we look to to pay down some if not all of the <unk> for right now will leave the outstanding.

Just out of an abundance of caution, but liquidity generally been pretty robust.

Sure. Okay, and then last thing are there any talks on the I know.

Capital structure is always at the forefront of your minds are you, having any thoughts related to be capital structure kind of take a backseat. Let you guys manage through the Cove at 19 crisis or are there any are there any talks you're having a capital structure right.

Capital structure maturities all of that stuff is front and center for us and we were deepened conversations about different solutions.

Different solutions to drive additional liquidity.

Different solutions.

Four.

With dealing with maturity's, ranging talking to our existing debtholders.

Stay in constant contact with the major debtholders.

For the.

For the company and.

And so we're looking at.

We got a lot of items in the fire and I would say that it is probably.

I'd say sure.

The number one goal was to make sure that we were covenant compliant. So we didn't have any sort of.

And a default.

Issue and.

We've been doing that until great about that.

And then tracking where the business is going in and managing that and then the secondarily.

It's capital structure and.

What are what are the options for.

Resolving our upcoming maturities and also taken some of the pressure off so.

Okay, Alright, well, hi, very of our hyper hyperfocus.

Okay, Great. That's all that's very helpful. I appreciate the questions.

Very much.

Thanks Man.

We'll go next to line of Kirk Lucky go ahead.

Good morning, Thank you for taking my question.

Of course.

Very impressive on the cost reduction side.

I think you've mentioned in the past that summer temporary summer longer term.

Is there a.

Can you.

Give us a range of what a normalized.

Run right might be some of these line items like programming SG&A corporate.

Yeah.

It's tough to do that because it's just so many variables.

Obviously, we've got a pretty strong handle on the Q3 cost space.

That's.

Going to come out.

I mean, the employee piece of that.

Is probably around $6 million.

Compared to the $7 million that we saved.

Q too.

The programming pace Q3.

Is about $2.8 million.

Last year over year so.

Slightly more savings.

Can content amortization.

The masked and spend is about a million dollars five of savings in Q3.

Contract labors about 900 ground traveling one office expenses about a half a million dollars.

Variable expenses projected to be about two $6 million down.

And events about $1 million and a half.

Down at the radio stations in about $3.1 million down right. So if you're taught all that.

Q3, that's about $20 million, a savings and Q3 that are embedded in our current projections.

And I can't really annualize or run right at the moment because things are so kind of fluid.

Particularly around events and that kind of thing, but hopefully that gives you a sense of the of the scale of what we're doing.

Well that would look like.

Rolling it forward another quarter.

No. That's that's very helpful.

Thank you.

A couple a couple revenue related questions I'm curious.

With respect to events is there a way to pivot from.

And then the traditional in person events to virtual events and do you have any.

Anything on the horizon.

Alright might January yeah.

Lucky.

The answer is sure you can do that but it's not I mean are events.

Any of them are reliant on people's showing up and buying tickets.

Or women's empowerment, and then in Raleigh, North Carolina, we probably sell 12 15000 tickets.

To that thing so you.

You could do a virtual event and have your seminars and the whole bit but.

If somebody going to pay to see that online.

You certainly can't generate enough advertising dollars too.

Match the profitability.

That you would've had so yeah, there's some things that were doing.

But.

It's.

But they won't be the same.

We we may do a virtual event for our urban one honors award show that.

We had last year that.

That's in Q4.

The BT awards were done virtually and they actually did it.

Really good get job, but generally attached to the <unk> awards as a whole <unk> experience.

Concerts in three days, a week and stuff.

Point is and.

That.

You just won't be able to make up the revenue scale.

Four events in person, but can you actually execute something yeah, I don't know what the profitability looks like but it's not even close to a replacement.

Okay. Thank you that question.

Yeah that's helpful.

National Harbor can you get to.

Two year old revenue sharing number even though the casinos only open 50.

I don't know, but.

Yeah I look at the answer is no you're not going to get to we did $7 million yeah.

Last year, you're not going to get to that same number.

But it's gonna be it's going to.

It's going to be better than we thought it was gonna be at 50% capacity.

I don't I don't know.

I'll know what those numbers are in six days when they get released like everybody else does because they released the numbers to the state of Maryland.

Usually during the first week of the of the following month.

But I can tell you.

They did.

The very first week day, we're open.

That they did.

Close to $10 million I think it was $888 million to $10 million.

Very first week.

At the end of June and.

July has been very strong so.

Yeah.

Yeah, I think we'll be happy where it is I'm not expecting us to get to any sort of.

Normalized revenue level.

For any of our businesses and by the way.

When I gave you those EBITDA guidance number some of them they're pretty positive.

I didn't even mentioned or digital business, but our digital business did about $1 million, a EBITDA last year and it will probably get two double that this year too.

A lot of that is on the on on the back of holding revenue down minimally and being able to take a lot of cost out of those businesses raped. So it's not like those EBITDA numbers are going up because revenues up year over year, just F y I.

No I don't expect us to.

Do last year's revenue.

Across any of our units, but it's really about can we ultimately.

Get more cash flow out.

And the good thing about the casino is that.

Every dollar is cash flow to us so.

Got it. Thank you and then one last question if I may on the capital structure.

You mentioned you bought some sure is during the quarter.

The stock.

When crazy.

Do you have any do you have any.

Perspective on.

On on the stock market activity other than I would think of it's pretty bullish sign that you think you can get this <unk>.

<unk>.

I.

We.

We bought those shares we bought.

Brigade.

The hedge fund it also happens to be our largest debtholder and they were the second largest.

Equity holder after the family and.

We stay in close contact with them.

We made that deal.

With them.

A couple of reasons one.

We didn't want to a big hunk of depth stock.

Hitting the market and.

From our perspective, it was really kind of that that we're going to make it through this and and stock was trading.

Hello.

One dollar.

When we did it and we also did it with one of our not one of our with our largest debtholder. So we were kind of in sync with that and it wasn't.

A lotta money.

Four.

For the purchase given where the stock was trained plus we it also gives us the ability to continue to fuel.

<unk> incentives and things.

Of that nature.

During this period of time.

I had no idea that.

The stock was going to.

Rocket like it did.

I originally thought maybe there was a short squeezed, but there wasn't a very big short position.

I really think that it was just pure coincidence, because you have a large shareholder themselves and it was just pure coincidence that at the same time.

There was a lot of retail interest.

To develop and our company and some other African American owned companies Coupla banks, one Broadway financial another Carver.

Carver Bank at the same time.

And.

And I think it was just pure coincidence that happened at the same time the level of trading that's continued even though the stock.

Is is come down.

The level of trading and activity is still been very very robust.

So I.

Retail trading.

Thing is unbelievable I saw something on CNBC, where.

A guy was saying that with financial information in the Internet.

Out of folks that or.

Trading have just as good information as people, who do it for a living.

At hedge funds.

And.

And so.

That's what I think has happened.

With us.

And I think certainly the.

Interest in our audience and social Justice.

It has been.

Been helpful to that.

So yeah.

That's great to hear it.

Thank you very much.

Yeah.

And is there any additional questions. Please take this opportunity to know the press one zero on your Touchtone phone.

We have no one else queuing up for questions. At this time you May proceed.

Well. Thank you operator, and thank you everybody per tune in N. I N. As always we are available offline for any questions.

You very much.

Ladies and gentleman that will conclude your conference for today. Thank you for your participation N for using AT&T Teleconferencing you may know just.

[noise].

We're sorry your conference is ending now please hang up.