Q4 2020 Bright Scholar Education Holdings Ltd Earnings Call
[music].
Good morning, and thank you for standing by for <unk>.
Scholars fourth fiscal quarter and fiscal year Twentytwenty earnings conference call.
At this time all participants are in listen only mode should you need assistance. Please signal a conference specialist by pressing Star then zero on your telephone keypad.
After manager.
Entrants prepared remarks, there will be a question and answer session. Please.
Please note this event is being recorded.
I would now like to turn the meeting over to your host Ms. Ruby yen Investor Relations Counsel.
Thank you operator, good morning, and good evening welcome to <unk>.
For the full fiscal quarter ended up at 35 Twentytwenty earnings call. Joining me today are Mr. Johnny here Oh.
Except for the client can now be Chen our co Chief Executive Officer, Tom and we don't always be our Chief financial Officer.
As a reminder, today's conference call is being broadcast like why is it that cost. In addition, a replay will be available on our website. Following the call by now you should have received a copy of our press release that was distributed on November the Lotto Twentytwenty after market close eastern time.
If they have to know if it's available on the IR section of our website.
Before we get started.
Let me remind you that today's call may contain forward looking statements within the meaning of section 21 E of the Securities Exchange Act of 19 cents equal as amended.
Find in the US parse through to litigation Reform Act of 1995. This forward looking statements include without limitation, the company's business plans and development, which can be identified by terminology such as May will expect anticipate.
<unk> estimates in tight plan believe potential continue its unlikely to offer similar expressions.
Such statements are based upon managements current expectations and current markets and operating conditions.
And relate to events that you both know.
On known risks uncertainties and other factors all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results performance or achievements to differ materially from dose in the forward looking statements certain information regarding this and other.
Risks uncertainties or factors is included in the Companys filings with the US Securities and Exchange Commission.
The company does not undertake any obligation to update any forward looking statements as a result of new information future events or otherwise, except as required by the law drink.
During this call.
<unk>.
We'll be referring to GAAP and non-GAAP financial measures, we use certain non-GAAP measures as supplemental measures to review and that's that's all operating performance. This non-GAAP financial measures have limitations as analytical tools and the investors should not consider them my situation.
Or as a substitute for net income attributable to company ought to consolidate the statement of comprehensive income data prepared in accordance with us GAAP. Please.
Note or to numbers are in RMB, and all comparisons refer to year over year comparisons.
Unless otherwise stated.
That I turn the call over to our executive Vice Chairman said Terry.
Okay.
So Rick.
So thank you all for joining us today for our fourth fiscal quarter and the full year 2020 conference call.
We appreciate your interest in our company and we look forward is sharing our results with you on this call.
I would like to start the call today by thanking our leadership team academic and operational teams globally for their extraordinary efforts during fiscal 2020.
This past nine months had been chest.
Thank you for all of Us.
We have been confronted with Cascade in national and global crises, including its unprecedented pandemic and the historic significant a global recession.
Weve pivoted to quickly to accommodate a day operating changes that were necessary in order for us to continue.
Any operation safely and effectively yeah very laws have market.
At the same time, we kept our folks and strategic priorities to stringent our company.
And if you had a global network of schools that embraced latest technologies.
The operational and financial results, we announced.
This morning, as well as our full year results reflect the agility of our team the stress of a culture and the resilience of our diverse business.
On our call today I will go through the prepared remarks on behalf of our senior management team and the private.
Update on our initiatives to address evolving industry dynamics and the concludes with our also go through fiscal 2021.
Oh, well then provide a more detailed our business and the financial performance and our guidance for fiscal 2041.
<unk> wrap up.
And then we will take your questions.
That's just again our earnings report for those who are new to our company, we have including our earnings presentation. A brief corebody introduction from slide five to 11, which you can download it from our IR website again, all numbers are in RMB.
And all comparisons refer to year over year, unless otherwise stated.
Please turn to slide 13 for the highlights of our fourth quarter and the full fiscal year performance. This detailed breakdown by respective business inside of 14 to 15 in.
In fiscal 2000.
Hey, I've Oh, all business performed very well and ahead of our play in the first half of the fiscal year.
However, there are over all you're talking about from Cowen Nike in China, and they in particularly abroad.
Cost a substantial decline in our fourth quarter performance.
Ms.
The revenue for the fourth quarter it was.
Taking a 652.1 million dropped by 8.4% year over year with gross profit was down 29.5% and the operating loss of <unk> was 71.9 million.
Towards this award mainly due to significant impact of that had dynamic about all of our business, particularly our overseas schools. The oversea consulting business as a result of nationwide lockdown.
And the closure of schools tempers.
Although situation in China was a greatly improved with government.
Success in containing the pandemic.
And eventually a reopening of scores.
There was still a lot of income for our meals and the boardings for our domestic wholesale business that attributed to substantial decrease of operating income.
Amidst a significant a challenge in the disruption price color were.
<unk> delivered a solid a full year full fiscal year with revenue growth of 31.3% and adjusted EBITDA growth of 36.5%.
For fiscal year 2020.
The financial performance once again demonstrates it.
The list of our multi affect growth strategy, and then strength of our portfolio of business.
Let me walk you through the performance of our respective businesses.
Our domestic K 12 business channel.
China, China is encouraging sign of steady economic recovery.
During the pandemic and it's a continuous effort to minimize risk of resurgence provides strong impetus to our businesses recovery.
Our 64000 students have enrolled for the September 2020 score turn you know domesticates all schools for the reporting date.
The average number of students increased by 6.6% for the fourth fiscal quarter and a 9.9% for the fiscal year compared to the same period in the prior fiscal year as show in slide 16.
All of our K 12 canvas in China have reopened with.
With safeguards in all facilities to provide to protect our students death.
Including increased frequency of the cleaning and disinfecting facilities silver dispensing practices and the other mirrors to minimize the potential risk of surges.
Turning to slide 17.
Our on comp comp compromising folders and help allow students to achieve outstanding attendance performance has continued to strengthen our market leadership in Premier education.
Our students achieved remarkable results with 94% of our.
2020, graduating class were admitted to global publicity institutions, and 90, plus 90, 80% or the need to global top 100 institutions, which six from Oxbridge.
And for from the University of Chicago, and solve for you see Brooklyn.
We also are pleased to report that affects Congo score and the kindergarten opened scheduling in September and then we will continue to optimize score expansion diligently and efficiently.
Our our CE school business as mentioned at the start of the call.
So operation was mostly.
Negatively affected amid the ongoing pandemic and locked down in the UK.
As shown in slide 18, the near term actions and initiatives to mitigate the financial impact that we have been executing his campaign COVID-19.
<unk>.
Our overseas business segment, our stronger 14 to write us through the significant that not unprecedented challenges inheriting the global health crises and the new me economic slowdown.
Our global Education network is of strategic importance enrichment step.
Our lives and learning Spears in has extended a performance through global recruitment and training joint R&D collaboration between our oversea and domestic schools as well as across different business units, we seen price color.
Talking about the future growth of Braskem.
For both our complimentary and AD Tech business will be driving our next phase of growth over the long term.
Please turn to slide 19 for our comp inventory education services business.
Despite the impact of the FERC overnight June revenue for fiscal 2000 totally grow by 9.1% as we seize the opportunity.
Obviously in the summer by launching new products and services to strengthen our market position there.
The acquisition of Lucky camp, where.
Further expand our kids.
A capability to include hands on inquiry based learning.
That offers enormous potential and us.
Synergy, which were expanded expenses expect expansion of our outdoor camera business in the post COVID-19 period.
There are enormous market opportunities expanding our portfolio of complementary education services, including after school tutoring for K 12 started tools.
And the Kemper activities.
We plan to further leverage the collaboration with a kindergarten to explore more opportunities in broadening our outdoor camp business within China as well as acquisitions to extend our service offerings.
Moving on to slide 24 hour.
As head of business the Cowen lighting crisis has been a major catalyst driving policymakers service providers and the more parents in the families to explore online learning options.
The increase awareness and acceptance of online resources merger offline activities for optimal.
Educational results.
Bodes well for us to drive extend academic excellence as we continue to expand investment in this space.
Our new education technology business comprise online career counseling alma academic Olympia training and online to nationals.
In the school the three I Global Academy.
The launch of online International School was.
Online versus offline model in June represents a major milestone in utilizing technology to provide access to high quality education for students around the globe.
Sorry, I global accounting at the euro to more than one or 70 pace due to as us and those numbers are sellers.
We recognize that the uncertainties.
Our road ahead at entails.
Please turn to slide 21, where we detailed the major challenges as well as opportunities to.
Our business for fiscal 2021.
Our domestic K 12 segment were faced challenges to expand our network with increasingly tysons regulations on kindergartens bilingual and international schools.
Our overseas score operations, including K 12 schools language centers and the camp of business.
We're continuing to.
Suffer.
Disruptions information, while locked down and there is surgeons have a pandemic prices.
Our overseas confident business English language centers in the overseas at Kemper business will be affected by the adverse operating environment in the UK.
And the U.S.
Notwithstanding the challenges mentioned us throughout the call. We are excited by the combination of growth drivers coming into alignment of our fiscal 2021. This growth drivers include a steady economic recovery from the pandemic in China the improved.
It's a mix of our portfolio and the new exciting opportunities.
In complimentary business and education technologies.
Our outlook is indicative of the momentum we are carrying into the year underpinned by the relevance of our growth strategy the strength of our.
Business is evidence of our team our operational rigor and discipline.
Our ability to evolve rapidly to meet the fast changing needs of our students.
We are confident that our strategic initiatives will enable us to emerge from the crisis as a stronger company Delaware.
Sure well positioned for long term growth and success.
Furthermore to underscore the confidence in the Companys prospects. The board has approved a new share repurchase plan of up to $50 million on November 11 2020.
Please note our term.
Paul to Dar.
Thank you Terry.
Lets turn back to our financials. Please be reminded that all numbers are in RMB and all comparisons refer to year over year comparisons unless otherwise stated.
Please also refer to our earnings press release.
For the full detailed information of our comparative financial performance on a year over year basis.
Please turn to slide 23.
Topline results for fiscal year, 2020 remains solid with revenue up 31.2% to 3360.
$6.5 million for the fiscal year for the quarter revenue was down 8.4% to 652.1 million.
Domestic K 12 schools, including international schools bilingual schools and the kindergarten revenue was up 5.8% for the quarter and.
4.1 on whole year basis.
For International School revenue for the quarter up 15%, primarily due to 11% increase of student enrollment.
On a yearly basis revenue was up 17.2% due to 13.
0.2% increase in student enrollment.
Bilingual schools revenue for the quarter up 14% due to a 10% increase in student enrollment.
On a yearly basis revenue up 11.1%, mainly attributed to 11 point.
The increase in student enrollment.
Kindergartens revenue for the quarter and fiscal year was down, 17.3% and 24.6%, respectively, primarily due to decrease in tuition fees meals and boarding fees and.
As a result of mandatory school closures.
Revenue from overseas schools.
An important part of our global strategy was $69.1 million for the quarter down 53.4%, primarily due to closure of language learning centers under.
Colin My team.
On a yearly basis revenue was $835.9 million.
Grow 359.9% year over year and accounted for 24.8% of total group revenue there.
The year over year growth in revenue was primarily due.
Inclusion of the acquired overseas schools during the comparable period.
Revenue from Education Technology segment was up 14% for the quarter and up 47.7% on a yearly basis, primarily due to inclusion of.
Acquired online economic Olympia training business in the fourth quarter.
Revenue from complementary education was down 4.7% for the quarter due to pandemic impact on overseas study complement business and study tour account business.
Okay.
On a yearly basis revenue was up 9.1%.
Slide 24 half of revenue for the quarter was 77.1% of total revenue compared to 70.2% in the same quarter of last fiscal year.
On a yearly basis.
Cost of revenue was 63.7% of total revenue compared to 61.9 last fiscal year.
Teaching staff cost the primary cost contributor accounted for 43.8% of total revenue up from.
It will be 7.8% four quarters.
On a yearly basis.
Paul was 34.9% down from 38.2%.
Our domestic K 12 schools average student teacher ratio for the fiscal year.
8.9 compared to 8.8.
On slide 25.
Our gross profit and margins.
Gross profit was down 29.5% for the quarter and up 25% on a whole year basis, though.
Gross margin was down six point.
Slide nine percentage points to 22.9% for the quarter and on a yearly basis gross margin was down 1.8 percentage points to 33.3%.
Continuing on slide 26.
For the fourth fiscal quarter.
Adjusted EPS in a.
As a percentage of total revenue.
Was 44.1% up from 35.6% in the same quarter last fiscal year.
On a yearly basis adjusted EPS, Jim a percentage of total revenue was 26 point.
My part time.
Air to 25% last fiscal year.
The increase in SGN eight cents for the fiscal year fourth quarter migrating to oceans or.
All acquired business.
Let's just assume a as percentage of revenue for our domestic to 12.
Tools for the quarter were 13.5% up.
Up from 12.6%.
Yearly basis.
Adjusted as Jean a accrual as a percentage of revenue for the domestic hospitals was.
8.8% some from 11.2%.
Yes.
As competitive it of course revenue adjusted and allocated corporate expenses.
Mainly headquarter expenses for the quarter was 8.1% down from 10.1%.
On a yearly basis.
Hey, George.
4.5% down from 7%.
Adjusted UN allocated corporate expenses for the quarter was $52.3 million compared to 71.1 million last year.
Well the whole year, it will Uh huh.
51.2 million compared to 178.1 million.
Oh to elaborate more for the adjusted SDN expenses, we looked into the detailed on slide 27.
Continue to slide 28 I.
Adjusted.
EBITDA for the quarter was $1.4 million compared to 4 million.
Adjusted EBITDA margin was <unk>, 0.2% compared to 2.6%.
On the whole year basis adjusted EBITDA.
36.5% to 670 point.
A million but.
Adjusted EBITDA margins were 19.9 up from 19 point you.
Adjusted net loss for the quarter was.
Austin to 72.9% to 59 million adjusted net margin was negative 9.1.
Percent compared to 94.8%.
The whole year adjusted net income was 267.7 million compared to 322.6 million.
Adjusted EBITDA margin was 8% compared to 12.6%.
On slide 29.
Our backbone.
As of August 30 for 2020, our cash and cash equivalent and restricted cash totaled 4423 point ninemillion or.
646 million U.S. dollar compared to 2000 and unlikely to Neely May 31 2020.
We also have a short term investment of $13.7 million at October 31 on one.
[noise].
Moving to slide three loan.
The board has approved a new share repurchase program of up to 50 million U.S. dollar within the next 12 month revenue. This.
This is the third share repurchase program across the company.
Company.
Turning to slide 32 [noise].
For the fiscal year ending August 31, 2021, we expect our total revenue in the range of 3.77 billion and three point.
7 billion, representing a growth of 12%.
We need to 50% based on the existing business and without potential acquisitions.
We also expect average student enrollment enrollment in our domestic and overseas school to be between approximately 56050 cents.
10000, representing an increase of 8% to 10%.
We also expect to open my teaching the garden for physical 2021.
Yes.
Fiscal 2021, we have seven schools and.
So can I keep the garden contracted for operation.
Please refer to the table in slide six for little pie overcome that income payment.
Slide 36 showed record reconciliations for SDN, eight EBITDA and net income.
GAAP to non-GAAP without.
Slide 37 shows our balance.
She's and cash flow statement.
We ended August 31st plenty plenty the company Petrobras expenditure was approximately 149.8 million RMB down 3.5% compared to last fiscal year.
And on Slide 38 shows our average store than we run.
Institutions be across our network.
This concludes my financial update now I will tend to turn the call back to Jerry for his closing remarks.
[noise] $70.
We have a strong back to pursue organic and acquisitive growth opportunities a terrific portfolio of assets that drive long term growth.
We are very confident that the strategic initiative, where it enables us to emerge from the crisis as a stronger company that is well positioned for long term growth.
In a success.
I would particularly like to sign off best with their strengths and the commitment doing is really difficult year.
And I would also like to express our gratitude to our students parents.
Business partner and the registers for their ongoing trust did putting brown butter.
Got it.
This concludes our prepared remarks.
And so we would like to open the call to the questions operator. Please.
We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.
If you are using a speakerphone.
Please pick up your handset before pressing the keys.
If at any time your question has been addressed.
And you would like to withdraw your question. Please.
Please press Star then too.
At this time.
We will pause momentarily to assemble our roster.
The first question comes from L.C. Smith of Morgan Stanley. Please go ahead.
Oh, that's not I had two questions. So first one is about your.
All right at 21 guidance I Wonder can you break down these uptrend wrong I feel cadence into Oh, what is the assumptions behind this guidance like how much recovery from the Covidien to assumed and Oh what is current.
And then we can maintain Oh gosh, let me see schools and a team that I didn't understand 'em comes from Nissan that Bakken lesion and am I can't predict you are calculating I am not sure it longer can management share.
Shale what is your view on this I'm always going out thank you.
Okay.
Hi, This is Dora I O O for your first question regarding the guidance as we mentioned in the core no. We still you know because of the locked down and the researches off the coast of the pandemic a wage heavily still have the impact.
But you know all of this business. So the current projections reflected a you know the impact of 12 or was it is it.
I don't know if it's ever get back to normal you know, we we probably will have no more than.
Oh.
Pity the impact or forward. This season is close to Oh 300 million RMB at car off our best estimate due to its higher.
Oh this is Jerry I, just kind of add on to that it was kind of steer as sue.
The UK.
Lockdown continue yes locked down and continue because if we already have our September numbers Youve element, which is a significant down from last year, especially for the new students stay it continues to be the most and actually continue either online or some of the hot on campus, but a new a new student.
Son of then defer to the.
January semester.
We we've modeled it as a they because of the yeah. The new cases in the UK is it going to I think three or four times that it wasn't a pick up in May and April so we kind of this.
To that would go away, even though we did defer but I don't we are still they're probably not going to become when.
When January comps.
We do it that's the guy that's very much a pet's massacres view the projection of course very recent development the Betsy.
In front of either into other companies, we have not a factor that in because the volumes maybe it's too soon to to be very optimistic about that but I get it for fiscal 2021, but are you investing because they don't rule to let's say most of these.
Sure.
People, who want to travel then hopefully backing.
But this year, we'll be back in September of the 2021, but that it wouldn't be the next piece that's right.
Since September fiscal September 2020, why would it be Cisco 22 preferred for fixed 21, we stared.
I assume they're not going to come back.
And a domestic Alaska, so I'm pretty excited because everything is back at mostly back to normal and there wasn't students our backhaul school is open.
Are you trying to sell we kind of assume that that's actually the back two or three covert an idea as to you. We are we talking about earlier.
Earlier that we actually have seen student enrollment up a year over year of a of a.
For the fiscal 2000 resources first of.
Months of the fiscal is over 99% I believe so so that's the assumption.
For domestic domestic is back to normal most of the impact overseas, but we do expect that comes inventory and as you can take them. All you would have continued to grow.
And the second question is about the regulation.
Something does just come up this morning.
And it was very different from what it came out.
I think about a month ago.
But today, if you are reading into that is really about a.
Kind of explanation or or comments from the ministry of education.
I don't know honestly, how much debt later Kerry.
Yeah. This is a law, which he we just started drafting backing the summer because on the 18, but it gets finalized yet so but it sounds like the tone was a tough the last month and now is a softer just less.
Well that we still remain conservative in our expansion plan.
Until we are we get a more clear picture.
That.
Okay. Thank you very much.
The next question thinking comes from currency.
Gal of Goldman Sachs. Please go ahead.
[laughter].
Hi, Jerry had alright, thank you for the Fantasia two questions from my side.
First of all you mentioned independent agent attacking a complementary indication it will be a key driver going forward just wondering how.
You should think about synergies between the two new business that that attack and called inventory on occasion, and your own domestic and our schools is there any potential.
Energy sell cross sell opportunity is there.
The second one is to have all the guidance.
Can you expect clear data.
We've gotten a bit conservative in the overseas and so just to be clear within your guidance how much of the growth is organic versus acquisition going forward and also you mentioned that you already have like a few 4000 students in the domestic schools at the moment.
Share some color on the new.
New student enrollment into the international schools in China, How do you see the.
The international studied the mountain view and Oh Kobe situation right now thank you.
Sure.
First question is about the this.
Is that the synergy between Cat AD Tech educated service.
Regardless, because a we have taking a very conservative and.
View the score regulations. So that's you know a if you look at keeps you are accomplishing the score version how to produce very steady gross cash flow. So we believe that a continued to grow.
Every deal, but we are more tons ever about or opening new schools. So you can imagine that outrage attrition take the last thing can you talk a little bit more focus on the quality of education or so the operating efficiency.
But ill add to that as we all see that is their growth.
The area North so it is certainly complement education services is also a growth area that are left to regulate it particularly after the or kind of the tightening of the oh through as a complement to our education in and have a 2018 and beginning of 2019 now we see the opportunity.
He's actually opening more up so we can certainly leverage they did it actually decent the accountant.
For an hour K 12 schools for example, the tutoring we already have the cooking and where I have the teachers leveraging data to our for example, three I Global Academy, which is online school of course.
Actually because after doing that we can use our school teachers leveraging the expertise in that and then the staff and.
Manpower for our schools to to be teachers versus our online schools because there are certainly it certainly between that and we are so.
We can leverage this.
Good teachers, the teachers, and a and a curriculum and the confidence we have our overseas school as well.
That's going to drive I think it is so if you look at the market isn't it was more the domestic or is it going to be the cash cow, we see improving efficiencies and margin, but but they did.
<unk> expenses are more under attack Anda Anda and education services and then in terms of the guidance that we gave again, while it has been our would have been very.
Conserve due to further their restart of being a public company. So the guidance that we gave.
He did not include any up a good amount of factory any potential additional acquisitions, that's all I got it.
And also that for the phone I have a question about the okay to have sorry International schools. We do we are we see.
Kind.
The view us China trade and also pandemic, we have things some parents.
Our hesitating, whether or not they want to send a student to to school overseas. For example, the two hour UK score score even if they want to do it we can't do that this year because many.
If they can't even get a visa.
Or or clearance to go to overseas. So some of them are are going to any kind of watching to see and also if it plays and watching the U.S. election, hopefully is going to be clear out who is going to be for the next time and for the next four years.
So people are hesitant.
So we just have things on shaved a petri of above that from you as to.
UK and Hong Kong.
After the pandemic and of course, the UK and then kind of can really go anywhere. So so so those are more a spin as they are.
In China.
So going to the international school in China. So, we thats kind of trying to we are seeing but but we believe at least that's our our.
Our thinking going forward or once the.
Probably is opening up and and a restriction on lifted.
I think and I think it is.
Trying to well go back to what it was.
Okay. Thank you.
Once again, if you have a question. Please press Star then one already touched home phone.
The next question comes from.
Leonard law.
Lucrative Analytica. Please go ahead.
Hi, Manish.
A bond tender list and I have three questions.
Our first question is I see that you had 1 billion most restricted cash.
And I understand what is the nature of the restricted cash.
The second question is to get an understanding of management's thinking behind.
900 million short term loans, because the company already has a lot of cash on the balance sheet.
And that.
Well, you'll be able to close the acquisition involved for dispute and Lacey 10, because I think I did see that numbers in our press release.
Thank you.
[laughter], Oh said restricted cash on our balance sheet is a sort of like a bank saving.
Because.
We used our overseas.
Overseas cash we see during the time of year when not have too much in acquisition activities.
So we see we save the overseas cash in with with a local bank and then.
Long from RMB within China introduced on what you know about.
Financial up principal principal guarantee the financial a investments to to earn a higher return. So that's the restricted cash is still cash or cash savings deposit.
It always local bank.
[noise]. So the second question is you know short term though.
Absolutely domestic unknown there. So you don't have to go well.
Oh sure.
[noise].
We burnt.
And.
Sure Yeah.
Bill Trimble, yes, that's right yeah. The shot among the shots on goal is.
It is the same or is it pretty much the same in nature and as we mentioned on the six attached.
So basically we borrowed the lowering interest.
No, but a made to you last Monday and short term investments at a higher high return.
We made this decision to make us Brad.
They are they are on the yield.
Justin just like a we have just like the first question. They ask we have overseas.
U.S. dollars that I mean, not much. So we used the U.S. dollar to guarantee and known for on domestic back and then that the bank to earn your hair how are.
The same thing with the short turn on basically the same idea.
Caroline.
[music].
They're all day long.
The acquisition amount.
Well I mean I know.
So we just well before for commercial reasons.
Have now disclose they did their dollar amount for that position.
So we're not going to discuss on the call due to summer arrangement between and targeting the company. So we we we cannot disclose that publicly.
Yeah.
Okay sure I understand this off thank you.
Okay.
Again, if you have a question. Please press Star then one on a touchtone phone.
This concludes our question and answer session.
I would like to turn the conference back over to Gerry he for any closing remarks.
[noise]. Thank you very much for joining the conference call. Please feel free to contact US is writing any further questions. We wish everybody a great day.
Yeah.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
[noise].