Q3 2020 Five Point Holdings LLC Earnings Call
Good day, everyone welcome to <unk>.
Right.
Third quarter.
Currently all participants.
That's right.
Recorded.
Today's conference May include forward.
Looking statements regarding <unk>.
<unk> financial condition operations cash flows strategies and prospects.
Forward looking statements represent only five point estimates on the date.
Oh.
Any assurance that the actual.
Because forward looking statements.
The matters that are not yet occurred.
Statements are inherently subject to risks and uncertainties.
Factors could affect future results caused by.
Actual results to differ materially from the activities and results.
Forward looking statements.
These factors include those described in today's press release and five.
Well actually see filings, including those in the risk factors section of the most recent report on form.
10-K.
<unk> form 10-Q filed.
That's easy.
Please note that five point <unk>.
Excuse me assumes no obligation to update any.
Forward looking statements.
Now I would like to turn the call over to Mr.
Chairman and CEO.
Please go ahead Sir.
Hey, good morning, and welcome everyone.
Thank you and your loved ones are all good.
There's also just want to speak to the maintenance of our strategy of maintaining a strong balance sheet.
Continuing to invest in our communities.
This investment in the infrastructure and the matter teams, that's correct categorize it's like they're going to do the deleveraging.
Got you by creating great places for people in all walks of life.
Yes.
Connect with each other and that makes it.
Well I'd like to go after them the big names that homebuyers are paying.
That's close to state a broad sports and entertainment facilities.
Yeah, that's important as well no.
Actually public school systems.
The benefits you do have to sample steel buildings that they take a campus wide.
A good example of that.
No no commercial real estate as it has all the investment and the overall community.
Today, the great book and no one is being recognized as one of the premier Buzios and becomes it.
Oh, there's a concept could be seen in dementia as families are expected to move into their new homes in Twentytwenty wobbles.
Yeah, Hi, Jean Marc It was doing very well.
Thanks to its got to be low interest rates and higher demand for homes and those type of opportunities.
Oh, my goodness in Los Angeles, and Orange County.
That's great guys appreciate somebody paid 70%.
As for 47% over the last 12 months just doesn't need according to <unk>.
But just to see another 8.1% and 7.4% over the next 12 months.
Did the same source.
Well I leave the floor habits as its way to.
To go over our financial results.
Let me give you an update on the old thinking about them in the best of breed them.
That's why you have the disconnect between the real value of the company.
Oh surplus.
At the end of 2019, you recall.
We will.
What do you think investors meeting.
Great News.
Unfortunately, gobank being disrupted those plans.
We will be able to do an in person meeting next year. So we can show you the communities.
However, if the conditions don't go walkabout.
We plan to sort of what you'll be doing early next year that we hope that you understand the value of the company the way we see it every day.
Now, let me turn the call the genetic would it pulled them. All you keep all mentioned results I will take questions after that.
Thanks Neil.
Our 10-Q as far as long as that mix shifts and a summary of our financial results is included in the earnings release issued earlier today.
Turning to our consolidated results.
I'll address each of our four segments. If you exceed its car that's about a dog see liquidity position.
So the company's consolidated revenues for the third quarter totaled 8.4 million primarily related to the recognition of revenue generated from related parties penetrate services.
We recognized 52.4 million thing earnings similar to a consolidated joint ventures, including earnings of 56.6 million or 75% interest in the gateway commercial venture as a result, and the sole two buildings occupied by block time, that's a five point gateway campus.
Total consolidated costs and expenses were approximately 24.5 million.
Selling general and administrative expenses of 17.7 million for the quarter.
Net income for the quarter was 36.4 million [noise].
Well its 19.5 million was allocated to the non controlling interests, leaving approximately 17 million attributable to the company.
Moving to the segment results.
But once you're setting up its consolidated for accounting purposes. So net loss for the quarter was 3.2 million, which was primarily selling general and administrative expenses.
We collected 13.9 million I guess, the last show, though related to a land sale that occurred earlier in the year.
The second Cisco said, there's also consolidated for Tony purposes.
San Francisco said, it's not loss for the quarter was 1.8 million.
This was primarily Stx census.
The grey card suddenly includes operations are they part answer the owner of the greatest neighborhoods as wealth management services provided by the Magic company truly great potential.
As a reminder, we have 37.5% of the bonds I guess two percentage interest at the Great Park venture, 100% of the management company.
Did they pose ventures, an unconsolidated <unk> with our investing in the venture accounted for under the equity method of accounting.
For segment reporting needs through the full results.
That you're at the various historical cost basis and <unk>.
Did they start indenture is a self funding operation no project level gas.
Great segment revenues were 8.1 million for the third quarter, consisting primarily of revenue recognized under the management agreement.
Third quarter net loss so the great part second totaled 10.2 million.
Consisting of 1.8 million net income related to the management company and a loss of 12 million. So the great part venture operations.
The company recognized a loss of 4.2 million on its investment in the Big picture, which includes our share of the great potential this losses.
Our commercial segment includes operations of the Gateway solution venture and management services provided by the management company to the gateway to wash adventure.
We own 75% of the gateway commercial venture, 100% of the management company.
They gave intellectual venture has also like a consolidated entity with our investment in the venture Tommy for under the equity method of accounting.
The segment reporting we include the full results of the gateway commercial venture at the ventures historical basis of the trading.
So lets suppose 70 to 75.6 million for the quarter, primarily related to the sale of two office buildings occupied by dotcom at the five point Gateway campus here.
These buildings are sold for 355 million.
The JV paid off 245 million and project level debt in connection with the sale and made a cash distribution of 107 million interest members of which five point, we received 80.3 million.
The company recognized approximately 56.6 million have been kind of had some DSIC Johnny gateway commercial venture.
For historical purpose perspective about a 75% invested in the gateway commercial venture.
The company contributed approximately 107 million to the JV in August of 2017 in connection with the benches acquisition and to some degree it's a campus which included four buildings totaling approximately 1 million square feet of office space.
As of today. So I'd point has received 30 I'd say received 136.6 million in cash distributions from the sale of three buildings and approximately 11 acres.
The venture currently owns one four buildings.
Absolutely the 50 acres of commercial land with additional development rights Delta campus.
Well wrap it up with a few comments are you trying to balance sheet and liquidity positions.
Our cash position increased by 55.5 million for the quarter.
The increase was primarily the result of 80.3 million in cash distributions from the gateway to live so.
Gotcha and collected so 2.9 million I guess, the way I'm still no offset by continued inventory expenditures to Philadelphia and S. DNA expenses.
As of September Thirtyth 2020, total liquidity was approximately 395.2 million, what's the what's the price of our cash balance of 270.1 <unk> point Sixmillion.
And borrowing availability.
124.7 million under our 125 million unsecured revolving credit facility.
Our balance sheet is strong with a debt to total capital ratio of 25%.
Let me turn it now back to the operator, who will open up for questions.
[music].
Thank you very much.
Just two questions at this time.
You bet.
If you just make sure that.
This in turn off.
Once again star one for any questions at this time.
Pause for just a moment.
Opportunity to signal for questions.
Yes.
And first we will.
<unk>.
Stephen Kim with Evercore ISI.
Thanks, very much guys.
Honestly a lot has changed over the course of this <unk> interesting year, and probably no one thing that changed more than the attitude. They get perspective on home price appreciation, particularly near term home price appreciation.
Obviously I know your business you don't run it for a quarter or even in one year, but given your unique vantage point in the industry. I was curious if you could comment on the trends, you're seeing and the degree to which what you have seen thus far and the near term outlook I think you talked about that.
They plan on price growth in the neighboring markets near New Hall for example, which I think is very different from what was conceived of maybe six nine months ago. How how those changes are factoring into your thinking as to the stream of cash flows perhaps in the future from new hall or just enjoy.
Well, how you may be approaching the best way what might be the best way to monetize your long term investments in those are enjoying the great part.
With remaining in great part as well as a in your wall.
Hi, Steven nice to hear from you.
Look I think that they asked us to address them as does a very consistent the view that we have them with all of his help on the uniqueness of our communities location wise size wise and I believe you too but in medicine Buybuy baby.
You need as you have seen at the Great Park and create value that way.
Coupled with the fact that we really are the many ways. We're the only game in town and Los Angeles County, as well as in Orange County, just waving Stan.
That gives us a huge advantage in terms of supplying it market that did start toward housing and has been whether use amount of pent up demand.
That hasn't changed if anything I think it does mean, even more activated.
What else change, though is as you highlighted is a I think each of the consumer.
To migrate more to.
Oh, what type of communities will open space its sales with lower density and with or without amenities that did they people are appreciating much more than they would actually be appreciating the both of them I think so that obviously is the fact that that has helped a lot.
Bog and we're seeing now that through the interest from our bill does translate to to Valencia as well and we are expecting that there's going to be a lot of interest from the higher density in Los Angeles to be up there. So that's what we're seeing in terms of the appreciation.
And what are the sort of lumped.
Appreciation as a function of an imbalance of supply demand.
And nothing on the Horizon tells us that there's going to be an increase in the supply.
And if anything you know as I said before they seem to be learned go higher and it's done saving to some of the numbers I gave you in terms of what they're saying that there's today, you're seeing in that area, but there's more than what I think a lot of people are speculating was going to happen in 2017, So still you didnt.
To summarize.
We have always believed that we're going to be in this unique position in these markets now that both up all the assets have reached the maturity of the beach and we can now start monetizing.
It happens to be at the time when interest rates are low there's a high level of interest from the consumers and then if it's only going to accelerate but we don't think it sounds as though what are the question is are we going to be increasing the amount of supply or not of home sites looked to be very careful for three reasons.
One this.
This is the beginning of the large massive back Lindsay as you know there's going to be 21000 homes and it is extremely important for us to allow our first group of builders to make money to go in and not to have to start ups and to create the lost like momentum for the community and to.
You know the infill structure timeline, sometimes dictates how much can we put.
On the market in terms of home sites, it's not though.
This is about flat land, where we can go and do whatever we want to be the simple answer is right now we have the number from.
The bill that is higher than we were projecting several months ago and it would be extremely careful about how much that doesn't want to put on them other than how much you want then hopefully by.
The next time you have this call we'd be able to tell you exactly what happened.
Yeah that would be great and Youre correct me, if I'm wrong, but I I recall that perhaps earlier this year at the end of last year. When there was a rethinking of H.P.A.
Your longer term EPA assumptions I seem to recall, a number around 3.5% or something can you comment on how your thinking around H.P. added you've been investing in your longer term model has changed in the last 20 or last 12 months.
Yeah, I mean look I think that up.
You know, we we don't.
Secondly, do life of the deals glass flow for something that goes you know as long as those as we tend to look more sometimes all you know three years I have to just to be between two to four you will see is that yes, we have not changed what assumptions. There's no reason for us to change our assumption because you know we already have.
For the very healthy margins and you know you change assumptions up with all you're doing is just moving the needle on the margin. So from my perspective, I believe it's going to be higher.
I think it's a dynamic stays the same if the into say stay as low as they are the answer is yes, but there's no reason for us to change those assumptions.
Okay, Great I recall are asking earlier this year when there seemed to be a big change happening in buyer profit and take a whether or not you'd thought that there was a handful that there can be changes.
Particularly as it related to the attractiveness.
Food and beverage and entertainment venues and things like that that at the time you felt like it would be a mistake to presume that some of the changing eat up work elevated concerns and therefore reduce preference for some of those venue would it would be a mistake to assume that that would be a a semi permanent kind of a situation.
More recently I've heard you talk about the important do you think of providing opportunities for conversation relationship and it seems like you're sort of leaning into this idea that as we go forward here, perhaps in the next year or two you will actually see the preference for those venue kinds of venue to if anything increase.
Relative to what they had been before I'm curious if I'm reading, what you what I heard correctly or if you could give any kind of update on what you think about the longer term or the durability of some of the more recent trends that we've seen in a customer behavior and home ownership or homeowners behavior.
Yeah, I mean look here's what I'd be saying boy.
I think I don't want to jump to a quick conclusion that the design of the home is going to have to change because everybody is going to be working out of their home or that you know the office space is obsolete because nobody's going to want to come to an office I said that I still say that we're going to be watching the consumer.
His behavior and how much of the consumer behavior is going to change as a result, all the acceleration of some things that were going to happen anyway in the future.
Well just go with Nike situation and we are doing that.
I can tell you, though that I believe you asked about the shelf doesn't belong to obviously you can sort of.
They are going to be themselves are serving the purpose because I'll be open space and the type of a matter. These lumpy because she was looking for and doesn't bother us long term.
I can tell you we started thinking about or even next I'm waiting and enhancing some of our lifestyle and entertainment venues because I for one believe that once the virus is behind us once people are going to forget about the bias I.
I think you're going to see something very similar to early twenties because of the amount of pent up.
Demand for no novelty socialize and everything else and then as you remember before the covered 90 and a lot of what we are focusing on well either healthcare related underpin myself. It's we are still doing that as well as Betty unique lifestyle.
Food beverage and the same that we're going to be building.
As Ive basically our hub of our community I think that's a long time I think that's going to be even more focused on.
The one area that I think we don't have a lot off and we will have to watch is the office space because there's a big itself with the office space itself is going to start.
Changing and configurations.
Yeah sure Okay, great. Thanks, very much and appreciate it.
Sure.
All right moving on from JP Morgan, we have Michael Rehaut.
Hi, This is a lot at home and on for Mike. Thanks for taking my question.
So first I was wondering if you could comment on what you saw from home builder on the stronger monthly sales trends that great art during the quarter and also whether you saw any seasonal slowing in October.
Yeah, I'm, sorry, I didn't hear the second part the first part what you're asking about the rate of sales looking at the Great Park and we have seen an increase from the first quarter. So the way I look at the bottom yet as I look at the first quarter, which was before the court would not be a lot down yeah.
Done we're running about 10 sales a week I can tell you in the laws or the <unk> you know over the last 90 days.
I would be more like well so we've got an increase.
I think that's all.
Ah that's really what's driving us that there's a high demand we gear up from the other builders as well yeah.
And it's across the board so I'm sorry, what was the second part of your question I didn't catch it.
I was wondering about October whether that's continued that strength has continued into October.
Yes, Yeah, we really were seeing its all too well before the which was last week.
Great that's very helpful.
And then secondly, just following up there are you seeing builders more engaged.
In the market in the sense that there may be willing to pay.
More for your home sites.
Okay, Great Park in Valencia versus last quarter, and and then also have you started to re ramp any development activities for your home sites, a great Park and the like yeah.
Yes of course it is all we indicate Paul let me start with that we don't intend to go to say a little another round of home sites until later next year and therefore, we haven't priced older older land.
Yeah, we still see a based on everything we're seeing in the market that'd be a price for them is moving up but I can't tell you what we're going to be because we're not going to be in that position until middle of next year sometime in terms of Valencia, we have not changed that asking prices.
As I said before we will just want to make sure.
That's all the builders are comfortable that they're going to be able to.
So the sales program and and have success because the last thing we want is to not that black momentum was the first Google phone size. However, I can tell you that in the last probably.
Probably 60 days, we've had a lot of more engagement them because a lot of more interest on both of those are in Valencia, and I think it does or by the end of this year, hopefully, we'll be able to share with you all.
Some of these deals are being done.
Okay, great. Thank you.
Yes.
Yes.
Once again folks at Star one if you have any questions.
Next to Alan Ratner with Zelman and associates.
Hey, guys, good afternoon, and glad to hear of phones doing well on your end.
Neil just on that last point of Valencia, I, just want to yeah, hopefully make sure I'm interpreting that right because I believe last quarter. You updated that you had about 250 standing finished lots still left to sell and Valencia and I think another yeah hundred 150, or so that maybe were partially developed so is that what you're referring to.
You can see we're talking to builders about lately and potentially could could announce sell there before the end of the year or.
Am I thinking about that wrong.
No you're not you're.
You're right we had about 250.
Standing inventory and those are already in negotiating with the vendors cousins I also.
You mentioned that there was a higher demand than before because in some land development in support of this in the home sites and the expectation is that you know those will be old or hopefully conclude that either by the end of the year well shortly after the end of the year with you know as much as we are focusing on that yet and we also want to make sure that we have done.
Post the closing of the EM.
That might not be the right valuation or by my creates a situation that is not the right business decision. So but I would tell you because I think that our goes off mall and every indication shows us that we're going to get that it does we're going there we're going to get to a to somewhere between <unk> and 400.
Home sites.
Great. That's very helpful. Second question little bit just housekeeping I think you made a comment that your your development activities is resuming again, so from a cash flow perspective should we think about you know kind of a quarterly increase in inventory that you were seeing Chris Kobe to as you are realistic.
Guide going forward I think it was roughly 70 $80 million or so a quarter or is the run rate you were running at previously.
I don't have the numbers will follow me and I I hesitate to give up in bottoms up a burn rate just because you know as you know land development is not as though that's consistent quarter to quarter in terms of spending but I don't think you should expect the same amount, but we were incurring.
As we were getting up for the first as far as the phase of sales.
First two years of land development in a in Valencia was they had big heavy list and was very costly. So I don't think its going to be that much but the answer. Your question is we are starting to to.
Yeah, It up for <unk> land development for that he is the addition of home sites, we're talking about and as we see how the bogos or.
Do we will start thinking about you know how many more at home says we want them and the types of but just on the margin note yeah, well actually has not the subdivision unless you look at it because there's always that you're going in I'll, just simply going to develop home sites, we have a lot of major infrastructure.
We are we're doing because it basically building a city and that will probably have less to do with how many onsites I'm gonna be online and how many homes, that's not going to be online. They its obligations were going to do but I don't think you should expect the same amount of birds.
Okay. That's very helpful. I have two more quick ones if I if I could on first on Great Park. Thank you for that that timeline as far as the next trying to block itself.
We think about that also coinciding with when when you guys would expect to receive your first distribution from the joint venture.
Well I mean, I think that the distribution. There's a decision that still is is neither to satisfy the legacy and then Ah, but we're expecting a that that they'd be enough sales.
Sales of home sites next year not revenue. So we will start seeing the severe since come to five point pass the ball satisfying the legacy which I'll put it in perspective I mean, that's that's a major statement.
To to be able to say that's over the last two years would be they are able to satisfy the legacy distribution, which was about 500 plus million dollar so, but oh, what expectations like no other ones that we will see a distribution from the Great Park next year and we will monitor.
The rate of sales.
And as of April sales keep on going as well as they're going.
That's what we decide that it was determined when we go to market with a there's some lumpiness because that's how we look at these things we dovetail running communities budding up so when they have a basement comes in.
Understood. That's helpful and finally, you obviously your credibly a connected you from a political landscape throughout your markets of operation in California. So now with election day behind US just curious if you can give us a little bit of an update on if anything's kind of changed locally on on the.
The political landscape that would affect your business one way or another you know cross either Orange County, L., a county or or even up in San Francisco.
Well its locally all of the results of the elections or make us feel very comfortable that we're not going to see anything here that there is going to mean anything different or the good news for US is we used to worry about these things much more few years ago, when we wouldn't be it doesn't imply.
So as as you know weve crossed that totally alone we have dialed in but we still have to deal with a lot of issues at the local level and we're very very comfortable that our partnership with the city of Atlanta, Austin said, what that it comes you know us at the San Francisco is very much on solid ground. So at the local level.
All the results are a good result, none of them are results that are making us a rethink anything obviously at the state level. Today, you know, California has a even a more prominent position at the federal level with the Vice President and who the speaker of the house. She went nothing changes that.
And you know we have great relationships with both sides of the alive and case whenever becomes even much more of a focus as it has all the villages selection Weve really.
Great I appreciate that and good luck.
Sure.
All right moving on from Wells Fargo, We have Truman Patterson.
Hey, good afternoon, everyone last quarter you all discussed in my Great Park of being a feed builder I believe it was kind of a partnership with a new home to prove the market feasibility of some of the higher price points, but could you just give an update there I believe it was supposed to start in.
One Q, but just give an update there and do you still see the need given the rebound in the market.
Well look I mean, they they first of all the new home company is under construction, but moving forward I don't have a maybe for the sales yeah, but they're moving forward and and I think even in that on an earnings.
Earnings call date up and so that opportunity and how.
They say they do that that's a very positive relationship.
Just want make sure that I, didnt say something that might that be must miss understood. The the relationship with the new home company wasn't because we couldn't sell something or because the market was weak.
We basically said that there are certain products. When you develop 15 to 20 different product lines, there might be one thought like that might be unique product and as you know we designed the products that might not be a product that is a very comfortable for your big builders to build because it's much more.
It's a niche, though that a product and and.
And as such.
Rather than changing the product and and duplicating somebody that's already exists. We will then go down to about 50 build with somebody like the new home company a company that actually is done very well in this type of niche building. So this is not a because we couldn't sell the product.
No because the market. This week, it's just because we did not want to do compromise the integrity of the product segmentation and mix by taking that product out that might not be as comfortable sort of production does have to be embarking on.
Okay. Okay fair enough and then let's see I believe the home builders were supposed to be Grand opening and in January but I know a lot of times prior to a you know real hard Grand opening a lot of trailers and you know open up sales or a few months at a time could you give us.
Update there how the homebuilder sales are trended and once you have so far if they've actually been you know kind of pre selling out of trailers.
They have not and the Grand opening was scheduled to be sort of March and right. Now we are on a better path all.
Also a physical grand opening as we are building right now boxing amenities and things like that to do enable.
The bulk of them enable ourselves to have the typical grand opening that we have knowing that we probably would have still some new basins, even though it's a so I wouldn't read at least dining for something physical.
At the same time, we're running a battle of old strategy or virtual a grand opening and we're we're making a big investment to help all the builders in terms of any virtual type of selling you know from our perspective, we need to make sure that the build as having the ability to sell the potential buyers on the amended these and all.
The different things that they're gonna got which typically do they see it physically up but the Grand opening was always scheduled for March builders on could start the selling and selling safi in January but nobody has started selling okay.
Okay. Okay, No fair enough and then I believe you put some numbers around the ones here, but I'm just hoping for a little bit of clarity you know as we look out over the.
The next year or so 21, what would you consider you know a successful year regarding a lot sale that you know you can developing close at both the great Park in Valencia.
Well look I mean, I think we said last year. When we started we said if we can go out with the post Scott group of home size of 500, and then follow up with another subject to 50 or so for the first yeah 750 was going to be a good number for us because that would have put us in.
The position to say, we have enough product segmentation and not enough activity.
Lets not oversupply the market.
We went from the 500 to seven eight you won and we're talking about potentially you know another two.
200 to 400, so we obviously had exceeding what we thought were going to do and we're doing it not because we need to or because we wanted to supply the market. It's really more driven by the demand from the builders and the and it's really diversified build those so that's what's driving that so if you're asking me I've always said.
In the first year or two or three even Valencia, if we can do a thousand yeah that'd be a good start things off up to about 1500.
It looks like more like we're gonna might be even more than that.
That's very exciting for us, but it's not surprising because there's no supply.
Yeah.
All right. Thank you for that I appreciate it.
Once again star one for any questions.
Scott feel back.
[noise] Hi, I was wondering if you guys calculate a like a book value, but market value base like but the actual rough price. So the the building and so on back of the envelope type of calculation or another way of asking.
Do you think the share price range is that the fair value you mentioned earlier in the call, but clearly.
Clearly undervalued.
Well look.
We had to book value.
About $2 billion.
And that translates to 14, but was there a shift and that's the book value that came about as a result of a combination of different entities that had very sophisticated investors and oh in each of the assets and because at the time that we did the company.
Before the IPO.
We wanted to make sure that we don't trigger.
Property tax the adjustments because capex when it has that unique situation.
You haul.
Was deemed to be the acquired and that combination and you all had a very low it's part of book value because it was it came out of the restructuring in a chapter 11. So we.
We basically our view when we went public that although always stated book value is $14 per share.
We believe that based on if you want to adjust well then see a hub to markets like the other houses when adjusted we believe that that time that we could be more in the range of about you know.
17, and $18. So that's that's what we said at that time, the book value, obviously hasn't changed.
And all and we are we still stand behind that and if anything.
Over the last two years based on.
Home price appreciation as well as value creation with all the things that we've put in as I mentioned before you.
You know we have I don't believe that we are understated by.
By a lot.
Yeah, he has to add to it.
Sure. It's just that I agree thank you.
Well, we have to ship out thank you.
[laughter].
[noise] folks it looks like we have no further questions in the queue I'd like to turn the floor back to management team just for any additional or closing remarks that they have.
Well I'm.
Just in conclusion, thank you very much for dialing in.
Hopefully by the time, we have the school next next time, we will be able to report more on on the activities in Valencia, and and as I said, yeah from where we sit we look at 2021 as a great year, hopefully assuming that the backdrop in terms of the Codell novartis is behind us.
Because we would be in decent production and selling homes and moving families into Valencia, which is something that we've been waiting for for many many years.
And in the Meanwhile.
Just stay healthy and thanks for your interest of the company and.
And look forward to talking to you again, thank you very much.
[noise] can folks that does conclude our copper.
Conference for today, we appreciate your dialing in you may now disconnect.
HM.
Oh.