Q3 2020 Transcontinental Inc Earnings Call
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Welcome to the PC transcontinental third quarter 2020 results conference call.
During the presentation, all participants will be in listen only mode.
Afterwards, we will consider duck the question answer session and instructions will be provided at that time.
As a reminder, this conference is being recorded today September nine twentytwenty.
I would like to turn the conference over to young the point director of Investor Relations.
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Please go ahead.
Thank you Gabriel and good afternoon, everyone.
Welcome to piece, a topical knockouts third quarter 2020 results conference call.
The press release and yet yeah. They would fragile thickness and really said notes were issued earlier today and are available on our website that's PC.
A replay of this conference call will also be available on our website under Investor Relations section.
We have with US today, our president and Chief Executive Officer, California, <unk>, and our Chief Financial Officer done out of that Kevin.
Before I turn the call over to management I would like to find at this conference call is intended for the financial community.
<unk> are in listen only mode and should contact that's anything.
All right or corporate allocation for more information or interview request.
Please be reminded that some of the financial measure is critical part of course that this conference call our Niobrara.
You can refer to the M.D. and they are complete definition and reconciliation of such measures quite apart.
In addition, this conference call. My also contain forward looking statement.
These statements are based on the current expectation matching and information available today and the off windfall numerous risks and uncertainty.
No no no.
Area.
You can see and other factors that influence excellent results I described in 2019 annual in BMD and into leases annual information form and were up they said in the previous quarter Im getting it.
With that I would now like turn the call over to our president and CEO Housewares Buddy.
Yeah, and good afternoon, everyone I.
I hope all of you are safe and LG and thank you for being with US This afternoon.
First I want to express once again, my sincere appreciation for the commitment and dedication of all of our employees.
I'm, showing courage resilience and agility as we continue to serve our customers safely and a united crude and responsible manner during to score.
Since the onset of the pandemic, we acted swiftly to protect their employees implementing strict safety measures in our facilities to limit the spread of the virus, we were able to adapt to a fast changing environment in order to support our customers.
Looking now at our already like.
We delivered a very strong quarter, demonstrating the relevance of our transformation and the resilience of our businesses and challenging times.
This quarter is the first want to include a full three months of impact.
From the pandemic.
Packaging perform exceptionally well during this quarter, we succeeded and meeting the surge in demand for retail food and other essential to schumer products packaging driven in part by stay at home consumer behavior.
During the quarter and packaging, we recorded solid organic growth was 2% despite lower resin prices, excluding the impact of lower resin prices it would've been close to 4%.
This organic growth comes mainly from our verticals related to food and other essential consumer products. We saw strong volumes from our banana business in Latin America. Following the introduction of a new generation of crop protection films.
Yes.
When we started the year, we expect that modest growth for 2020, we look at the first nine months, excluding the impact of the resin prices and up our paper business sold in January we are close to 1%.
We delivered record profitability for the packaging sector as we continue to drive synergies and operational efficiencies. This was reflected in our adjusted EBITDA margin of 18.6% compared to 13.2 last year.
Our packaging margins also benefited from several additional elements first lower resin prices second a positive product mix third the adoption of the IRS 16, accounting standard and finally from the sales of our paper packaging operations.
In Q4, the lower resin price, we benefited from Q3 will impact us negatively as we will pass through the savings to our customers. In addition, the recent increases and the reason prices will negatively impact Q4 margins because of the usual lack before.
These increases are transferred to our customers.
Print also performed very well despite the impact of the pandemic.
Early on we quickly announced important cost reduction measures. This allowed us to park, partially offset by a lost of revenues up close to $180 million since the beginning of the crisis.
Excluding the amounts received from Canada's wage subsidy program, we recorded a solid adjusted EBITDA margin of close to 18% almost flat to last year. Despite the large reduction in our revenues. This performance on the Lawrence once again, our proven ability to protect the sectors bras.
Stability, regardless of the economic challenges.
We continue to see a gradual recovery in our printing volumes with the reopening of the economy and we now stand at around 80% of last year's volumes.
As a result, we haven't been able to recall approximately a 1000 of the 1600 employees work temporarily laid off in March.
As I said less water. This crisis clearly show that the flyer remains are relevant and effective marketing to.
Volumes from most of our customer are gradually returning for normal as the Flyer continues to help Canadians make purchase decision and save money, especially in these challenging economic environment.
As volumes and vertical like newspapers magazines and commercial printing continue to diminish.
We are now much less exposed to these declining markets on the other area, we are showing growth and several verticals like books pre media and in store marketing.
These growth areas now represent around 28% of print revenues compared to around 11% five years ago.
We are optimistic about the long term growth prospect of these verticals.
Moving to our corporate social responsibility, we continued to build momentum and sustainability.
At the end of June we published our latest CSR report, which I highlighted our progress and we announced that we join the United's United Nations Global compact I'm also very proud that we were awarded for the second year in a row adopt and physician and the prestigious corporate nights 2020.
50 ranking.
And our new recycling grew would in PC packaging is off to a promising start with the purchase of the assets from last in June.
We are developing partnerships to source recycle ryzik resin to be integrated in our production.
In addition, I invite you to visit our new packaging sustainability website, where we highlight the advantage of flexible packaging.
For example, we compare to other formats flexible packaging as better environmental attributes in terms of carbon footprint.
Fossil fuel usage transport water usage product to package ratio as well as material to landfill.
By significantly extending full shelf life flexible packaging plays an essential role and promoting sustainability by reducing food food waste.
We continue to develop our recycle ready compostable, and PCR product portfolio to reduce material ways and to help our industry move toward a circular economy for flexible packaging.
In conclusion I wanted to leave you with three messages first the pandemic as I highlighted the relevance of our transformation in our resilience agility and operational excellence across the board.
Second looking at our sectors, our packaging business, which represents more than half of our revenues led the way and delivering record profitability in the quarter and the long term. This business should continue to grow organically and through M&A.
At the same time print continues to show how well it can navigate through difficult environments. We will continue to adjust our costs in order to protect the business for the long term with volumes gradually recovering and our favorable position in vertical light and store marketing books and pre media.
Confident and the ability of our print sector continued to deliver important cash flows in the future.
Third after generating strong liquidity in the quarter, our leverage ratio is now 1.8 times net debt to adjusted EBITDA.
We exclude the impact of the.
FRS 16.
Despite the pandemic, we are in a solid financial position, allowing us to continue to both pay down our depth and also explore potential acquisitions throughout its history transcontinental has always been able to reinvent itself through innovation.
Its value is deeply embedded in our culture.
As we have done in the past crisis, we will emerge from this spend that mix as a stronger company.
With that I'll turn it over to the now.
Thank you Paul swap and good afternoon.
Just for the solid results for the quarter I like our resilience and strong execution in challenging context.
Looking at consolidated numbers revenues in the quarter were down $142 million year over year more than half is explained by the lower activities linked to the impact of Kogut 19.
Bob evidence is mainly due to the sale of our paper business in January 2020.
Partially offset by organic growth in packaging.
Adjusted EBITDA for the quarter was $139.3 million an increase of 23.4%.
Ill provide more details on how we drove profitability improvement in the review of each sector.
Interest expense declined by $5.3 million as we are reimbursed $375 million a bit earlier in the year.
Interest rates decreased.
Tax rate was 25.1 person in line with our guidance.
This strong EBITDA performance combined with lower interest led to adjusted net earnings of $68.2 million for the quarter or 78 cents per share compared to 60 cents for the same quarter last year.
Our packaging six are clearly led the way we had very strong quarter on both revenue and profitability.
We generated $6.7 million of organic revenue growth.
All right and we have several million dollars from lower resin prices.
As far as will mentioned, excluding the resin price impact organic growth without being close to 4%.
Finally, a stronger us dollar versus last year generated a tailwind of about $11 million in revenues.
In addition, disrupt strong strong topline performance packaging at a record quarterly ended up at $65 million.
This translated to a margin of 18.6% and exceptional performance compared to 13.2% in the same quarter last year.
This since you can improvement is mainly related to the synergies and efficiency gains.
As far as 16, and the sale of our paper operations.
We also benefited from lower resin prices.
We're come back to resin price is.
In the also.
Our print sector also had a strong quarter, giving the context.
Revenue were down 90 $199.1 million organically, mainly as a result of depend indeed.
This represents a decline of 32%, which is an improvement from the 45% we saw in April.
Thanks to the Swift actions, we took early on the to adjust our cost structure and the amount received from the Keane emergency wage subsidy program, we delivered adjusted EBITDA of $69.4 billion.
It is important to note does excluding the subsidy adjusted EBITDA margin was relatively stable around 18%.
Very strong performance, considering the lower revenues due to the pandemic.
As we have done in the past, we will continue to optimize the cost structure in the Princess.
Our media business also had a good third quarter and benefited from its normal seasonality.
Despite the sale of specialty media assets toward the end of fiscal 2019.
Profitability slightly increase.
Solid performance for the sector.
Following cost cutting measures at off is corporate expense for the quarter were down year over year, Despite a negative borrowings of $2.1 million related to stock based compensation.
Paired to last year.
Turning to cash flow from operating activities, we had a strong quarter generating 100 into $46.6 million compared with $90 million a year ago.
On a year to date basis, we have generated $325 million, so far which is 19% year than last year.
This allowed us to reduce our net debt inline with our strategy.
We ended the third quarter, our net debt ratio stood at two times.
Excluding the impact of high as far as 16.
Was up 1.8 times.
This is a very significant year to date improvement.
As we were at 2.5 times at the end of last year.
Since our transform Mcconnell acquisition of Cold risk Americas in 28, 40 team, our net debt declined by $635 million or 43%, excluding the impact of our as far as 16.
Furthermore, we have available liquidity of six $631 million at the end of the quarter from our cash balance of $197 million and 100% of our credit facilities a $434 million.
This strong financial position and our ability to generate stable solid cash flow provide us with flexibility in terms of capital allocation, including capturing growth opportunities.
Now for outlook.
In friends as volumes continue to recover for the fourth quarter, we expect to be at around 80% of last year's volume.
With printing volumes gradually recovering and the change in the Canadian wage subsidies program the subsidy amount will be significantly lower in Q4.
As we work through the recovery will continue to focus on onto my optimizing our cost structure to align costs and refuse.
In packaging in terms of revenues, we continue to expect strong demand for food and consumer consumer Staples we.
We will all Arbor face tougher Comparatives next quarters since we had a strong fourth quarter last year.
In terms of profitability lower resin price being positive to margins in the last two quarter. What do we expect this situation to reverse in the fourth quarter.
First we went out the impact of the previous decline that would be passed to our customer early in the fourth quarter.
Second we have recently seen sharp increase in resin price, while we have contractual agreements with most of our customers regarding recent price adjustments theres a lag before we can recover the increase in costs.
Therefore, we expect that resin price movements.
We'll have a double negated impact in packaging profitability reported fourth quarter.
Overall, as we continue to execute on synergies and gain efficiencies EBITDA margin in the fourth quarter should be higher than last year, but lower sequentially.
Or the other segment, we expect a solid fourth quarter in media, which will include the back to school season.
Profitability should more than upset.
<unk> costs for the fourth quarter.
Due to the cost reduction measures and office and the back of the season the disease.
In media.
We expect our quarterly financial expense to be similar to Q3 slightly above $10 million.
Our effective tax rate should be into mid Twentys range.
In terms of the use of cash with the year, you can assume capex coming in around $100 million.
That's for cash tax for the year, you can assume around $55 million.
I am confident that are solid financial position and diversified portfolio, what allowed us to emerge from this crisis as a stronger company.
On that note will not proceed with the question period.
Thank you.
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Ladies and gentlemen, we will now conduct the question answer session.
Do you have a question. Please press star followed by the one on your Touchtone phone you will hear tone acknowledging your request.
Questions will be pulled in the order. They are received please I'm sure you lift the handset if you're using speakerphone before pressing any keys. One moment. Please for your first question first question will come from the line of Mark level of Scotia Bank. Please go ahead.
Hi, good afternoon guys.
First off good quarter in.
Good quarter and great job managing through this.
Maybe just the first question on packaging and just trying to get an understanding of the margin tailwind from resident in the quarter and sort of maybe how much of that you'll need to get back in Q4, and again I sort of understand what's happening and just maybe just trying to quantify it.
I think.
I think Directionally, we gave you at the indication in terms of quantifying it's hard to predict because as we have already incurred some increase in some resin.
Prices and there's a movement.
To to keep going up with the you know hurricane or potential hurricane or subscription in the south of the U.S. So.
It's hard to predict if there will be further a race, but I think we're going to expand its very well.
This quarter, we resin price went down as we have a lagging passing it through so we've benefited from.
Hey, you know from that.
And then we'll lose that in Q4 and then.
We will also anchor lease.
To a price increase that have been announcing pass will impact.
Our results and they might be more so.
As you know our portfolio is very diverse.
It's quite complex to calculate all this but.
Probably half a point to a point.
With me as Directionally, yes, the impact and if there's further increase maybe more.
Okay.
That's very helpful.
Yeah, I think when you were talking about sort of long term margin for this business. Mr. <unk> used to so loosened talk about it was 15%.
Trending well above that sort of even in Q4. It sounds like you will be above that even with the resin impact so.
I guess, it's 15% sort of still the right number to think about are you now certain thank you something a bit better.
Well all flow.
As the objective obviously our objective when we said 15 was for next year, it's clear we got to make it happen this year, but.
With the impact of the IR fair I FRS on our margins, that's kind of adding a little bit. So I think I think.
The.
15 to 16 16 could be could be obtainable, we've we believe.
But oh almost on a long term there basis from quarter to quarter, you'll have some or in some higher like this one but what I think.
Rationally with the platform.
Yeah, we could go higher than 15.
Maybe army two out a mark when we said the 15 was as far as I mentioned, there was no you need to consider already in backlog by far is 16 and also as you know paper business was not very high margin business for us So when you exclude.
Paper business than 15 becomes.
Something that we should achieve but you should increase the target 22 into next year.
Okay.
The on the organic growth of 4% number you quoted sort of X resin.
I guess I'm just curious if.
Those rates of growth.
Sort of the cadence so that's sort of a but he did a bit.
As we sort of.
Move through the summer and sort of.
Waste from sort of I guess, the peak sort of maybe pantry stocking from gold.
I think we see a we see kind of a little bit and some vertical of of easing up the demand or some and venture replay.
And some vertical people that order heavily.
Now there their order our.
Higher.
The food retail is obviously running at a higher rate.
Than ever before but I think we're out of the early pandemics stocking behavior of consumer that spike a huge increase for us. So now I think were stabilizing at a higher rate for for our food customer that are in retail.
So I.
I think in our case, we don't expect to have the same kind of results in Q4 simply by the fact that we had a very strong finish of Q tree and then last year, we had a fantastic October which make for a tougher comparables. So so I don't think I see any drastic change.
The man.
And the demand out there I think it's pretty stable than be pretty good but in terms of transcontinental for Q4, we might be.
Our around the par with last year, maybe a little bit less maybe a little bit better depending on how things play out, but but I think you treat.
In our highest organic growth quarter, but the market is there so that the managed strong. So we believe that next year.
We should we should have organic growth around the two or 3%. That's what we're we're planning for 2021.
Okay, maybe just one last question can seek it and I'm.
I'm not sure I missed it in any the notes, but didn't have you quantified the the weight subsidy benefit in the quarter.
Yes, you can find it.
I'm, sorry, but well have gone out you can find in in our financial statement. It is in our in our financial notes. So we disclose the total amount.
Are there.
And.
So it's so this is where you can find it.
All right. Thanks, guys again, a good job managing through the quarter.
Thank you very much.
Mark.
Your next question will come from the line of Adam Shine of National Bank Financial. Please go ahead.
Thanks, a lot good afternoon, maybe just slightly over a few the prior items just going back to the packaging margin.
Obviously, you know, we elevated quite strongly sequentially off the 16% or so in Q2.
Can you speak can you speak a little bit too.
Any further gains in regard to cool very synergies and efficiencies.
That are driving some of the some of the incremental margin expansion.
And.
On a secondary level looking at Q4, specifically.
Let's say that.
Redsun sort of boosted you buy a per center, so into Q3, and you're talking double whammy sort of into Q4. So you sort of dialed that back go by arguably at about 2% or so.
Obviously, the gap that you're sort of guiding two is 13.8 of last year end the 18 six.
Of the Q3, but.
I think last quarter, you sort of suggested you know a reasonable run rate for the margin given the synergies and efficiencies I sort of elevated you into that sort of 16% itself. So is that still reasonably the more likely level for Q4 packaging merger acknowledging the resin and some of.
The incremental obviously efficiency gains you're achieving.
Yes in terms of the the synergies.
Relating to over us we're.
Were towards the end of that the last part of the synergy was the.
Extrusion capacity, we have installed to internalize some some of our found that you're buying on the outside.
Thats been strongly contributing to our margin he will contribute in Q4, but not as much because one of that extreme winter at started last year. If I recall over so you will have a positive impact from that.
Having said that we're doing other capital investment in the network and they're also helping.
Our efficiency and performance. So I think that a you know we might as.
As a strong of a push on synergy in Q4 as in Q3, but that's certainly will be there and I think you're in the zones.
I think we should.
And in terms of the plan, we built a when we have to paper in Hawaii offer as we said, we'll bring it from 13 to 14 to 15.
I think a if we factor out the paper and the and then ferrous 16, I think weren't there a year earlier. So now if you add back the IRS and and the paper, yes, the 16% number or is there is a good indication of what we could be.
We're out right now having said that this business, there's a little bit of volatility from one quarter, because the other resin and ER and with the inventory movement of our customers.
Most funnel.
Activities on the products of our customer at retail but.
I think your assumptions are a write off in those dollars where they should be.
Okay, and just get Glee over packaging that it would have belabor you were pretty clear that.
Organic.
In Q4 in terms of packaging growth.
Give or take.
Around breakeven.
Having said that can you speak at all to maybe a bit more color in terms of the packaging trend from Q3 into Q4 in regards to.
Any particular segments that either might be standing out or where performance is sort of surprising you to the upside.
Where arguably perhaps there is a bit more work to be done.
Particular area of the business.
Yeah anything that is related to to food.
And consumer essential as has been very very strong and and we don't see any change there.
Things than you normally Aldo.
It's a and all the verticals that we operate in as a as that increase of revenue a lot of the food.
Moved from a foodservice you know from restaurant in hotel consumption to at home and all of our customer were able to move some of their filling lines that used to be into dedicated to foodservice through to retail and and we've been enjoying some some growth. There. So we don't see a lot at change right now.
As long as the economy or depend dynamic.
Don't allow people to freebie travel I think these verticals of food and consumer essential will remain that way it is.
On the other end there as part of our portfolio in terms of industrial product that we do packaging for a that we had hoped for a faster recovery.
Called it very very gradual.
And I think you'll take time for it to come back so.
Not a whole lot a lot of change but.
Personally and in terms of PC.
We got some customer pushing up their order at the end of our Q3. So we expect them to eat up to that venture be in Q4, and then again last year, we had a fantastic October which is a very tough.
Comparables. So thats why were saying Q4 is not going to be as good in terms of organic growth out of no change to the fundamentals.
Okay. Okay. Thank you very much.
Your next question will come from line of drew Mcreynolds of RBC. Please go ahead.
Yes, thanks, very much and good afternoon, I don't know for for you first just housekeeping question, the 35.9 million in subsidies in Q3.
Obviously the majority of that is in printing can you just given a precise split or can we assume all of its in printing.
Not all of it I was a large part of it is to printing.
And the rest is will be split with this is the program 14 universe patients. So we have operation across Canada, including Montreal that office.
So the rest will be split, but we don't want to disclose too much detail. One of the reason is that we also have costs too you know extra costs in the operation to phase coded 19. So.
It might be a small impact for the other division so whether you see that the large part was for printing.
Okay Fair.
Fair enough and.
Maybe shifting to France or can you give an update on.
Your discussions you did a little bit and your preliminary remarks, just discussions with retailers on use of Flyers.
We do see.
The general headlines out there on given.
Stay at home or work from home.
And then transition to digital that that's increasingly part in the marketing mix I'm, just wondering what you've seen over the last three or four months from your perspective.
What we're dealing with more with our customer is trying to.
Predict their their supply chain of out of our.
Retail customer.
Supply chain challenges or are there or not.
For sense secure with their supply chains. So obviously the up to make promotion decision way ahead of them receiving the product and.
Thats the supply chain challenges and some of the retail vertical here in Canada of.
Force retailers there also.
We're doing flyers, but.
For the most part of the advertise a little bit less product not because they don't want to was because of their supply chain.
Challenges as they resolve these challenges I would say that the going back to their normal behavior as most retailer in Canada wants to make sure that Canadian population feel that they are there to support them and that was tough time and offer good value for them on piece. So I think promotion is up.
The heart of a lot of retailers strategies and the number one to to make sure that Canadian 'cause consumer understand is still the printed flyer. So.
Hi, we've been impacted by lower page down and some customers.
You know there as their business resume and come back to normal.
You know the flyer is coming back obviously, if the operate.
At a reduced rate or their store or not fully open oh.
Obviously, they don't advertise as much but we see a gradual recovery, but I believe that we will not have the same.
Page count as of last year, mainly for.
Business related decision more than substitution for paper at the digital as many.
Studies were issued in the last two three months.
The relevance of sprint Flyer and was happy to see that the readership and the consumer preference for paper remain remains solid and remain though and where it was a prior.
To dependent me.
Okay. Thank you for that you cut out a little bit, but I think they're going to manage to get most of it one one last one from me on the book printing side, we've seen some.
I guess, some supply chain and a bottleneck side of the U.S. and.
And I think you've talked about it publicly before it was this an opportunity for transcontinental, okay to get more business through there and maybe this is ongoing if you can comment on that that'd be great.
And what vertical are you referring to drew.
Book.
Book, our yes, yes for sure.
And book I think we are.
I know certainly one of the top four player in North America, I would say that were the most stable to one us.
Number one as filed for bankruptcy and and they're selling process is still underway. So customer I'm not sure whats I was going to happen with those assets and number two as also announce started sell instant book assets.
So obviously this is the.
Market environment.
We're we're.
I think one of the largest more stable player and we have made last year.
Capital investment without about 30 million dollar in capacity to our book.
Yes, if you because we were kind of sold out.
This capacities coming online as we speak and.
We think in the next year, we'll be able to fill it up.
So yeah, which were up for sure book because of that.
Competitive landscape situation is is a growth area for us, but book also printed books as a medium.
Last year, and especially in the pandemic.
Is actually growing.
Digital readership flat or whatever at around 20%.
Printed books are still.
Very popular in the area were in which is more a school textbook in Fourq other textbook.
Feel that we have the ability.
In 2021 in 2022 to fill that capacity that we've created.
And enjoy some growth in the book segment.
Okay. Thank you.
Thanks drew.
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If it's you're seeing that folks tell me if you'd be a question offensive Tri band piece, what day to ladies and gentlemen, if there any additional questions. At this time. Please press star followed by the one and as a reminder, if you're using speakerphone. Please lift the handset before using before pressing the keys. Your next question will come from a line of David Mcfadgen of Cormark Securities. Please go ahead.
Hi, Thanks, a couple of questions on.
First of all just on printing give us an indication that we expect Q4 revenues were down about 20% I don't know much visibility beyond Q4 in this kind of money.
Your thoughts on terms that getting it back to sort of a normal ray where it might be declined low single digits like how long will take you got there when you might get there and then secondly, you talked about the emergency Wade wage subsidy do lot nor for the fourth quarter. Two can you give us an idea and sort of what yet.
To realize in cross border.
Yep.
Yeah, Alright, well, we us basically we we expect a August September and October two two to.
To be better each quarter.
This will end up at minus 20, but we feel that out over we should be at around minus 15. So we'll start the year at about minus 15.
We we are forecasting.
The pandemic to still have an impact on our revenue in 2020 ones. So I guess you call. It that we feel that he would have accelerated or increase the number the usual decrease of revenue that we are.
And print, having said that the tree verticals that are growing which is book highest salmon pre media I think we will have more unfortunately to increase faster there, but having said that we are forecasting.
He a much better year next year than the last couple of months with a pandemic, but not as good as it would be no called it.
But we have a very strong.
Platform cost reduction plan in place.
No we don't control the volume we control our cost.
We.
Plan, where we feel that we could.
Protect a large part of the profitability.
We drove and in 2020 in print going forward to 2021.
As far as the wage subsidy. This is a program that is it going slowly going to disappear. So every month is going down the rapidly and also as transcontinental is.
His business is gaining revenue or the amount of money that we are.
Entitled to receive is diminishing very very fast. So I think we would receive no more than 15% to 20% of what we have received in Q3.
For those.
Where we believe this is going to be so.
Yes, typically lower.
So when you when you say 15 or 20% in Q3 and six bargaining combined or we should just look at Q3 were you would see no more than 15 or 20% of what you're thinking Q3.
What what I'm, saying is we will receive no more than 15% to 20% of what we receive in Q3.
Okay. All right. Thank you for the classification.
Okay. That's it from me thank you.
Thanks, David.
It's not because of our ticket sale.
There are no further questions at this time.
Thank you everyone for joining us on the call today, and we look forward speaking with you soon.
I mean, there was it just doesn't mean that they've got their homes bushels, now sit up, especially young female cushy, ladies and gentlemen. This concludes the conference call for today. Thank you for participating please disconnect your lines.
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