Q2 2020 Issuer Direct Corp Earnings Call
Ladies and gentlemen, thank you for standing by welcome to the issuer Direct Corporation second quarter 2020 earnings Conference call.
Today's call will be conducted by the company's founder and Chief Executive Officer, Brian Bell, Bernie and its Chief Financial Officer, Steepener before I turn the call or the Mr., Brian Bell Bernie I'd like to redo the Companys, abbreviated Safe Harbor statement.
I like to remind you that statements made in this conference call concerning future revenues results from operations financial position markets economic conditions product releases partnerships and any other statements that may be construed as a prediction of future performance or events are forward looking statements, which.
Which may involve known and unknown risks uncertainties and other factors, which may cause actual results to differ materially from those expressed or implied by such statements.
Non-GAAP results will also be discussed on the call. The company believes a presentation of non-GAAP information provide useful supplementary data concerning the companys ongoing operation and it's provided for informational purposes, only with that said Mr. Bell Bernie.
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Thank you operator, welcome everyone and thank you for joining US this afternoon to discuss the company's second quarter results.
At the market close we issued a press release announcing our results for the quarter.
During today's call we will be referencing these results as well is talking about the second half the year.
For your convenience a copy of the press release is now available in our Investor Relations section of our website.
And also one or Accesswire newsroom for your reference during today's call.
We are thrilled with the second quarter results in so many ways record revenues, which were up 18% year over year operating income EBITDA and cash flows from operations were also historical records.
Thankfully, we have a great storage.
Story resonates well with into markets that we're serving.
And then I regard customers continue to expand to also record levels this quarter, which allowed us to produce these piano records across the board.
I'll now turn the call to Steve for a review of the second quarter in detail.
After his remarks I will discuss some key metrics retraced tracking for the first half the year and into the remaining part of the here Steve.
Thank you, Brian and good afternoon, everyone as Brian mentioned sure direct had a record quarter in terms of revenue operating income cashless operations EBITDA in customer account. However, this is not a time for us to rest on our laurels, but instead to build on this momentum into the second half of your idea.
Well the curve at night team have done like has been challenging for us starting to work remotely canceling scheduled and person conferences slowing down overall market transactions that activity has also allowed us to bend that some of our products because some of our customer saline more a virtual technology, which helped drive some of our increase in revenue during the quarter something I will now discuss in more detail.
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Total revenue for the second quarter of 2020 was formerly at $884000, an increase of $746000 or 18% compared to 4 billion $138000 to the same period of 2000 Nike.
So the first six months of 2020 revenue totaled 8.9 million increase of 7% or $583000 for the first six months in 2019.
Driving the growth was revenue for our platform and technology revenue stream, which increased $640000 or 24% and $660000 were 12% for the three at six months ended June 32020.
I didn't say periods of the prior year.
Increase for both periods was threefold first we generated increased revenue from our virtual products, including virtual held meetings virtual conferences and an overall increase in demand for webcasting products, resulting primarily from the covered I keep it up.
Second we generated additional revenue from axis.
Which increased 19%, 10%. So the three at six months ended June 32020, compared to the same period of the prior year.
This increase was due to both an increase in customers and an increase in revenue per release as we started the benefit from our digital marketing ecommerce platforms that kicked off during the first quarter, bringing out of the first quarter.
Absent the investment commentary revenues in the first six months to 2019 Accesswire revenue for the first six months of twice what it would have increased 30% compared to the prior year.
Third we generated increased revenue from license or the platform I Didnt cover Nike epidemic has created a headwind in terms of entry into new subscriptions. Its customers are more reluctant to sign in all contracts.
As a result, we signed 35, new contracts with the annual contract value or HCV of $225000 down compared to the second quarter 2019, which totaled 44, new contracts with an 18 year $322000.
However, we continue to that new contracts each quarter, which has increased recurring revenue led to our overall total of 295 contracts with an NPV of just over 2.2 billion.
255 contracts with HCV of approximately 2 million at the beginning of 2020.
As a percentage of overall revenue platform technology revenue increased to 60%, 67% for the three and six months ended June 32020, compared to 64%, let's say periods of 2019.
Services revenue increased $106000 or 7% try to second quarter 2020, as compared to the same period of 2019.
Increases partially due to an increase in revenue from our Britain proxy fulfillment services due to an increase of projects related to annual meetings as well as an increase in revenue from transfer agent services, primarily due to a onetime project that was pushed from Q1 to Q2 as a result to cover Nike pandemic.
Additionally, revenue from Webcasting services increased as a result was the increase in demand for virtual webcasting products.
Increases were offset by the continued decline of revenue from our air services.
The first half of two dozen plane services revenue decreased $77000 or 3% compared to the first half of 2019 decreases due to the aforementioned these recent eris revenue will decline in revenue from our transfer agent services due impart to slow down of transaction processing, the Depository Trust company at banks and brokers.
Moving to gross margin our overall gross margin percentage was 72% and 71%. So the three and six months ended June 32020.
Fair to 70%, 69% for the same periods of the prior year.
Increasing gross margin was led by expanded margins at our platform and technology revenue stream, which reported gross margin percentages of 70%, 76% for the quarter. Six months ended June 32020, compared to 73%, 74% trying to say periods of 2019.
Yeah, Clarice was due to scale in our web testing business is a higher revenue on a relatively fixed cost structure at the higher margins.
Gross margin percentage from our services revenue stream were 61% and 59% for the three at six months ended June Thirtyth 2020.
63% and 61% the same periods of the prior year.
Switching to operating income operating income was 1 billion $1000. The second quarter 2000 $21.249 million for the first half 2020 compared to operating income of $130000 and $277000. During the same parents are the part here.
The increase in operating income is due to the higher revenue margins I just spoke about as well as a decrease in operating expenses.
General and administrative expenses decreased $125000 were 9% and $270000 were 10% for the three and six months ended June 32020, compared to the same period of 2019 due to a decrease in bad debt expense related to a large reserve that was taken during the first and second quarters of 2019 as well as a decrease in stock.
Compensation expense.
These decreases were partially offset by increases in rent and personnel expenses.
Product development expenses decreased $178000 were 52% and $321000, 47% for the three and six months ended June 32020, compared to the same period of the prior year due to a decrease in headcount.
Partially offsetting these decreases was an increase in sales and marketing costs, which increased 9% during both the three and six months ended June Thirtyth 2020, due to an increase in personnel costs was an increase in digital marketing as I spoke about earlier.
The GAAP basis net income net income per diluted share of more than tripled as we generated net income of $772000 were 21 cents per diluted share. During Q2 2020 compared to $212000 were five cents per diluted share during Q2 2019.
For the first six months of.
2020, net income was $998000 were 26 cents per diluted share compared to $417000 were 11 cents per diluted share.
Looking at some non-GAAP metrics EBITDA for the second quarter, 2020 increased 146% to $1.354 million, 28% of revenue compared to $550000 were 13% revenue during the second quarter of 2019.
Even after the first half of 2020 increased 78% to $1.976 million or 22% of revenue compared to $1.108 million were 13% of revenue during the first half 2019.
Non-GAAP net income for the second quarter of 2020 increased 104%. So $974000 were 26 cents per diluted share compared to $477000 or 12 cents per diluted share during the second quarter of 2019.
Non-GAAP net income for the first half of 2020 increased 38% to $1.372 million or 36 cents per diluted share compared to $995000 or 26 cents per diluted share during the first half of 2019.
Moving onto the balance sheet cashless payment, we generated record cash flows from operations as we generated an additional $1.477 million during the second quarter 2020 compared to $259000 during the second quarter 2019.
On a year to date basis cash flow from operations was 2 billion $79000 for the first half of 2020 compared to $795000. During the first half of 2019.
On the balance sheet, our deferred revenue balance increased from $1.812 million as of December 31st to 2019 to $2.015 million as of June Thirtyth, 2020, and 11% increase.
Overall as I mentioned, we achieved good results for the quarter definitely motivates us. Furthermore, we believe in our team in our product sets have seen the results of more scale within the platform.
We will continue to enhance our products and work on achieving customer growth, while keeping our eye on the challenging markets. We are currently facing.
I'll hand, it back over to Brian who provide some updates on the business and what we have plans for it in the second half the year Brian.
Well then Steve Thank you and our last call we spoke a bit about how we we're pivoting some of our product platforms to be virtual I guess, you can say that pivot performed well for the quarter, even though we're candidly still learning what the market needs are.
Well, we can provide and most importantly, how it can sustain and create new categories for us.
We will spend more time discussing this in a few minutes, but for now I'd like I think it's prudent to provide some commentary and the results for the quarter that Steve just highlighted.
The second quarter was likely the most interesting quarter in our history.
Virtually our entire virtually our entire team was remote.
We continue to learn how to recruit higher develop sell and deliver and this distributed way.
With what now illustrates great success.
That alone is an accomplishment, but to do and achieve record revenues of 4.9 million is something our employees should be all products.
It's nice to have this energy moving into the back half of the year. Our teams are excited as they come out of this quarter learning a lot about our customers their needs and how to continue to adapt improve and evolve ourselves in this world something we're all focused on achieving again here in the third quarter.
If you can tell I'm really proud of our team and the commitment. They have had an every lifecycle of the customer journey.
Last quarter, we talked about record customer numbers again on a year over year basis, our customer accounts continued to struggle show strong signs of growth in combination.
Our private company business continues to outperform our expectations, where customers were up 39% from 997 to 1300 90 year over year.
Our public company customers also grew during the quarter a couple of percent to 1400 77.
Fourteenforty last year.
In combination a record number of customers totaling 2867 or 18% over last year.
I don't think I need to comment anymore on customer accounts, except to repeat one thing that I have continued to stay over the last several quarters, both internally and externally and that is the most important important thing that we can do is when new customers, we do that and the rest takes care of itself.
We have done just that and revenue revenues show margins improved a couple of percent and our platform and technology business continues to grow as an overall percentage of our business like we've spoken about.
And I will add one thing to this critical keeping an eye of new logos and that is something that we are maturing into and that is to be a market leader and communications company. The company focused on our newswire events business and recurring communication technologies that we license to our customers.
When you look at that business. It tells us everything about where we're headed it has 30 plus percent year over year growth it drives higher gross margins and generate as good or better cash flows and the rest of our business. So point Dean. Please understand we intend to align our reporting styles with this strategy to ensure our shareholders and prospective shareholders understand the.
Your drivers of our business.
The more legacy and seasonal types solutions, we have today will not go away entirely.
I will become essentially compliance and other revenues we are working to try to get this done by year end and this presentation of new financial information.
We are excited about simplifying this both for investment community, but also for our refined strategy in the market.
This refinement comes with added investment into our digital marketing strategy something we've had success in the second quarter.
But no we will see an even more even more customers subscribing to our communications operation in the future because of the strategy.
Today, we're seeing is heavily weighted towards accesswire, which were more than happy to take at this point, but our goal is to ensure that we broaden your communications offerings to our customers.
And the second quarter, we continue to learn more about how our platform could help our customers in a virtual.
We talked about this basically in the last quarter call Little do we know.
What and how impactful it would be for the results for the quarter.
During the quarter, we benefited from new product offerings that we spoken about in our prior call Steve touched on these just slightly a minute ago.
Our virtual product lineup consisted of our virtual annual meeting non deal Roadshow in deal Roadshow solutions analyst day in Investor Day products, all 100% virtual and delivered by our webcasting solutions that we acquired from Onstream at the beginning in 2019.
In addition, we began to see our Investor Conference business go virtual but the lion's share that will come to us here in the back half of the year.
Most of these virtual products, where new out of the gate and the last quarter and will become a permanent part of our product lineup in the future.
Our news businesses continuing to stroke show strong signs of growth since inception.
Just a little over five years ago, and then meantime, and that time, we've taken a handful of distribution points to thousands revenues from a couple hundred thousand into several million customers from a couple of hundred also into the thousands and sustain gross margins in the high 70 percents since albeit great. This is honestly small compared to where we believe.
Of this business can go.
When we look at the total addressable market, we see over $600 million newswire spend each year globally.
Today, we have approximately 1% of that and honestly believe that we can get to 3% to 5% by the end to 2020 to.
This happens in two ways, the first pure sales and marketing push.
And second product innovation via both organic and inorganic means.
These private innovations will have two effects of the market first it will drive down spends for decidedly PR firms and to create a virtuous force of customers seeking an entire storytelling platform beyond just PR.
We believe these coupled effects over the next 18 to 24 months will yield.
These market share goals.
Obviously, we have to innovate be successful and our sales and marketing strategy and continue to push the envelope in our brand.
This likely is a good time to talk about some of those these planned product innovations coming in the second half of the year.
And our events business, we continue to learn from what we've done as an example, we launched a virtual annual meeting product in mid March hi, aspirations given that there are only two real companies that provide an enterprise product in the space Broadridge and looming.
Issuer direct being the third and late to the game.
As the other two two providers have spent years trying to commercialize this product offerings.
We generated subscriptions and service revenues of approximately $250000 in the quarter from this product found brand new customers Upsold. Some new some current customers, which is now set forth in a new product on our platform for years to cut.
Made that there are approximately 6000 plus annual meetings in North America.
George you were already planned as set forth by the time, we came to market. So we're excited to see what this product does for US next year, we are laser focused on doubling or tripling, there's business next year and being even more competitive option and the incumbents.
Our physical event business, many referred to as an investor conferences is easier to ascertain no. One is traveling anywhere and as we said in the past quarter in the pipeline evaporated entirely.
Thankfully, we're starting to see momentum here virtual as I believe it just took time for customers to come to grips with no physical events and exhausting all possible delays and to what is now a healthy Q3 and booked events for us.
We believe that a virtual component is going to be a president way thing to conduct meetings in the financial space at least until Q2 of next year and perhaps even hybrid options beyond.
Regardless, we're working on ways.
With our bank organization customers conference in event managers to now take our virtual and or physical combinations of events. We just care about being the platform that they have chosen and our thankful for the opportunity to grow and adapt with them.
I'd like to go back to Accesswire permanent when we think about product innovations, we think about the storytelling process. This is at the heart of every company when telling this story you begin to use essential applications to draft. This message like Google Docs, Microsoft word or Apple pages, we're compatible with these drafting tools, but so it's so.
It was every other newswire in order to be different we need to push the boundaries, we need to give our customers the ability to collaborate track changes ask each other questions in real time creative platform when they don't want to leave agencies and customers can collaborate as what IR practitioners and executives.
This add to our done this AD is called our dynamic distribution and delivery system, where customers can select from hundreds of different combinations of distribution globally, and lastly extend the story to all mediums wire website, social and journalists, we intend to roll most all of this out by the ended the year further driving value to our custom.
Yes.
I think many of you know.
That many of the incumbents have not innovated in decades, well some of done so two small advancements acquisition and brand changes we're committed to this innovation the process and our plan. This innovation is key to our growth strategy and will help us retainer customers continue to add new and further disrupting industry.
Moving along I think it's important to discuss the company's capital allocation strategy. Obviously, there are essentially five areas in which the company could contemplate or formulate their strategy M&A investment and best inorganic growth repurchase shares pay down debt and pay dividends, we're committed to three distinct portions of this capital allocation.
And we feel we will provide a prudent past two ongoing operational growth long term shareholder value and sustainable earnings power.
In order to achieve these three things we need to do the following.
Leverage your balance sheet to do acquisitions, when they present themselves, it's important to be prudent and we feel optimistic about the opportunities that we're doing work on.
Secondly, invest in our business our people our technology, especially our sales and marketing to tell our story in a bigger way and grow our overall business.
And thirdly buyback or on stock, where and when possible buyback utilize the cash from operations to do do so unabated and when the repurchase plan authorized has been completed consider adding to it.
That being said as you will read in the quarterly filings here before 530, we have approximately $450000 remaining in our repurchase plan of $2 million. The board allocated sometime back we're committed to fulfilling our commitment here and we'll consider adding to it in the coming quarters to accomplish this we've adjusted some elements in the plan.
Extensively in the market buying back our stock.
To touch on M&A, because I know many of you were focused on this possibility as we are we had been busy doing work on several stories that we feel can add to our platform of becoming a market leader in the communication space I think it is fair dimension that this is as transparent as we can be giving our obligations for material non public disclosure, but there is no secrets we're.
Optimistic to do something that complement our communications business. These opportunities will round out our offerings provide for a stick your experience for our customers with an eye toward building this value to increase the average spend per customer.
Not because we raise prices, but because we integrated and innovate.
Unlike our peers.
In closing I want to thank everyone for listening to today's call. Although we had a great second quarter, whereas motivated as ever to keep this up and the back half of the here.
This is the risk known by all of US like last quarter I will say the same thing to you I feel good about our platform our ability to pivot and stay agile I'd love to great behalf and the battle for every customer that we win a good percentage of the time and if we're going to lose will make the competitor feel our presence by pricing them down.
We have a leading newswire the gains customers virtually every day.
We have a web webcast platform and conference product that is plentiful demand and opportunities. These are the here in the now and I forgotten is our entire ecosystem for when issuers can once again focused on strategic decisions our platform I'd product offerings will be there for them.
Operator could we could be please begin the Q and a portion of the call.
Absolutely.
This time will be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.
Information told indicate your line is in the question in queue. You May press star to if you'd like to remove your question from the Q.
For participants uses speaker equipment, it may be necessary to pick up your handset before pressing the star Keith one moment, while we poll for questions.
Our first question comes from Brock, our one with clever investing. Please proceed with your question.
Hey, guys great job on the virtual annual meeting product that you guys get out this quarter.
I know your team put in a lot of work to get that thing out the door and I think it really speaks the nimbleness of your team and also the ability to pivot quick quickly.
When an opportunity presents itself, so anyways getting to my question.
I was a bit surprised to see a decrease in.
Expenses related to product as head count, but can you just talked about the reasons for that and.
Is that just a onetime thing or do you expect that to continue going forward.
Thank you become has brought great. Appreciate it nice to talk to you as always it's a great question why we leave.
I think if you look at the last couple of quarters, we've seen a up and down in our product depth spend categories, we look to outside consultants to help come in.
To get through bigger lifts and some of our projects and tend to scale back down.
We've made.
New investments in that platform again and that team that you'll may see that come back up again here in Q3, as we ramp up for some of the items, we talked about in the back half of the year.
A lot of our platforms are really front end driven changes backend architecture and infrastructure is built so the heavy lift there are done and then wonderful shape. So a lot of the things that we're doing today.
Our very front end focused that we can tend to bring staff in and out as needed.
Okay, great that that that helps thanks for answering that question just one more question.
So last quarter, you talked about new E Commerce self service platform that you're working on I think primarily for private.
How many customers can you just give us an update on how that's going and what kind of things are you learning from your customers, maybe compare and contrast, how like what their needs are with your public company customers. Thanks.
Yeah, that's a great yeah. The second quarter, we saw a significant increase and the majority of our private company customers came to US from this E Commerce initiative and digital strategy, we want to continue to learn they're figuring out from first touch to first release.
The total cost and round trip times that it takes and really what the right recipe is for us to crank that along and move it faster.
So I think in quarters past, we would see.
14 to a 30 day sales cycle, sometimes in a private company, we're seeing come down to the sub four to five days now.
We can continue that trend will continue to spend it increase it obviously increased headcount to support that and helps of enlarging some of those clients. What we're learning a lot about today is what are the additional needs beyond that story right. What's that first item that they came to market with and what are the additional products that they may.
Need to help them tell that story or engage a journalist and those are some of the products that we're looking at innovating here as well as.
You know inorganically as well right on the M&A side is there are things that can bolt in that helps keep this customer using our platform are often perhaps than maybe every quarter, just telling a story, but conceivably be involved and using the system every month. So eventually it ends up being more of an EMR type of engagement to some of these folks and that's where we're.
Headed and where we're focused there.
Okay, great. Thanks.
Thank you bye.
Our next question comes from Micron Dahl with Norland Securities.
Use me. Please proceed with your question.
Hi, guys. This is blue court non per Mike today.
Congrats on the record second quarter.
Sounds like you guys killed it.
So for progress on Accesswire, how soon after the TD Ameritrade transaction can you be integrated Schwab and then how is the activity with the others currently using accesswire.
[laughter].
Hey look yes that I appreciate the comments, yes, the catalyst for TD Ameritrade.
Was really our public company clients right. We began to see you know the the answer if the question do you go to all these trading platforms and brokerage terminals and we were able to answer that would TD.
Last quarter, we did do that with Schwab and their professional trading platform, which also also further helped us and keep our customers consistent with our platform and use on our newswire system. So I think that we're answering these questions now meaning in other words can you pick up distribution like USA today.
And do that can you pick up specialty circuits. We continued to do those every month and not that they're not important distribution points, we tend to not talk about them on calls like this but we're getting to the point now where the public company engagement sales process doesn't have some of these coast objections anymore about not using our platform because.
You don't go to a single point of interest.
It really is now down to we view you as a viable competitor.
And solution option for us to consider so now as you move upstream into the enterprise style accounts are more mid cap to large cap it becomes contracts and pipeline management to be able to move the sales process through that so we refined our sales teams to have a little more SDR account executive behaviors, along with our strategic account teams to be able.
To accomplish that.
Thankfully on the private company side.
We don't see distribution as an obstacle there.
The only obstacle candidly there is is that learning that private company business at a quicker pace than we have so that we can continue that ramp up in our aspirations of I've, increasing our market share the where it is but.
Rob is scheduled to get back to the latter part of your question to complete the full roll out by the end of this quarter. So I.
I think thats pretty much it when it comes to that distribution element that we can close the door on it and really roll up really roll up our sleeves and get to work there.
Awesome.
So for or sales and marketing sounds like it's fitting with enough capacity right now so what about the tech and product development as far as are there any new hires needed here.
Yeah, we made one critical one here right at the end of the quarter I project manager and scrum leader, a very senior individual to help drive some of these projects. We do have some open rules coming in the back half of the year. There. We've got a probably an additional three to five had sales counts as well planned for the back half of the year. So as we talk to.
Right one of the areas of spend an investment for US is is going to be continuing to push our sales and marketing.
Product innovation team.
To be able to keep up and put the company in the best positioned possible.
Awesome. Thanks, guys. Congrats again on a quarter open with you.
Thank you very much.
As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad one moment. Please what we poll for questions.
There are no further questions at this time excuse me someone jumped into the Q.
Our next question comes in to sell with Microcapclub. Please proceed with your question.
Hi, Brian Thanks for taking my question.
My question is about Accesswire I saw that it grew around 19, 20% year over year Im just curious yeah. The company or is that the type of 20% growth is that how investors should be thinking about accesswire into the future or do you hope to accelerate that number. Thank you.
Yeah, It's a good question and.
No one should be satisfied with that but I think that shareholders and no lost or not.
Candidly, thank the number needs to be about 30% to 35% to get to the growth numbers that we want to get too.
As we were talking about and some of the comments and previous questions areas of spend an investment definitely have to be there in order for that to happen.
Sales strategy as well as investing in head count there to make that happen I feel confident that.
That product brand as it sits can achieve that and we can get to those percentage growth numbers and then with the add ons of additional products can even accelerate that further in the future.
Excellent. Thank you.
Thank you.
Our next question is from Eric Weinstein with Chancellor capital. Please proceed with your question.
Well thanks.
Fantastic quarter.
In terms of.
That's where I'm guessing that that normalized growth was actually better than reported growth because.
Probably still some headwinds from investment and Vectra commentary from last year, maybe a couple of percent better what do you have the number for what investment commentary was.
Last year second quarter.
Yes, we didnt actually even even talk about that that's a good point, but it was negligible Erica sub $50000 right.
It wasn't that significant as one of the thought the materiality really fell off after Q1.
Great.
Then in terms of increasing market share.
During the story out.
How do you plan to do that in terms of investing in growth is it a is it direct sale.
More spending on marketing and digital advertising or are there.
Distribution partners in the works.
What's the plan for for growth.
Yes, it's kind of a bifurcated process than the first is not to continue to stay the same thing, but digital sales and digital AD spend is a big part of how you achieve and find private companies, that's where the we've experienced success.
To a second point.
Our agency business, we have a director of agency sales that is entirely focused on newswire distribution to agencies across North America. We are beginning to build traction there starting to see some revenues come that that are meaningful to our business and so we're going to invest in additional headcount there to help that direct channel and build that agency probably.
And we we candidly believe at the 600 plus million spent a news that 20% to 25% directed and controlled by agencies and absent up until the last couple.
A couple of quarters, we really havent been focused on agency side of the business.
So having additional headcount there and content marketing being driven to those folks.
Thats going to be a second part.
And I third part I think candidly is still not ignoring our public company practice, we still do well there and we believe our communication subscription led by Newswire, we'll continue to find ways of value into the you know the small and mid cap space as we continue to to make headway with so I think it's a it's a little bit of all three.
But.
Not definitely just one.
Great. Thanks, a lot.
Thank you Eric.
As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad one moment, please while we pull for questions.
Ladies and gentleman Weve reached the end of the question answer session. At this time I'd like to turn the call back over to your host Brian fell Bernie.
Rob. Thank you. We appreciate very much you in the team to a fantastic job for us and especially during this time of year, where you're also terribly busy. So I appreciate that I just wanted to close with one final comment I begin to see several people talking about these tropical island that are enticing remote workers to come stay for.
A year, although very tempting I'm sure it would benefit our entire staff and they'd love it but not to worry it's not something that we're going to spend money on there but for those of you. The do please enjoy it stay safe and well talk to you said.
This concludes todays conference call you may disconnect your lines and have a great day.