Q1 2021 Cogeco Inc & Cogeco Communications Inc Earnings Call
Good day and welcome to the Cogeco, Inc, and Cogeco Communications, Inc, Q1, 'twenty 'twenty one earnings conference call.
Today's conference is being recorded.
At this time I would like to turn the conference over to Chris we like seniors.
Senior Vice President and Chief Financial Officer of Cogeco, Inc, and Cogeco Communications, Inc. Please go ahead Michelle.
Good morning, everybody and welcome to our first quarter conference call, which instead of Japan I will cover.
Before we begin this call as usual I would like to remind listeners that the company subject to forward looking statements, which can be found in our press releases issued yesterday, so I'll turn the call over to sit on shipping.
I mean, you Patrice and good morning, Thank you for joining us to discuss the financial results of Cogeco Communications and Cogeco, Inc.
Let me first note that we are very pleased with the overall performance of Cogeco for the first quarter of 'twenty 'twenty, one as well.
Both our Canadian and American broadband segments showed strong increases in EBITDA compared to the first quarter of last year.
This is largely explained by unique circumstances that were favorable to our business.
During the quarter, we continued to experience some of the trends from the past quarters.
Higher demand from our residential I speed internet products, and the deferral or a reduction of certain expenses due to a more stable customer base as.
As a result of the COVID-19 pandemic.
In these unusual circumstances.
We have decided to delay certain sales and marketing expenses to the second half of the year in both countries.
As for our radio operations, they continued to be negatively impacted by the pandemic, but to a lesser extent than the previous quarter.
Although we are pleased to report strong results in the current circumstances, we remain cautious in our management.
Cause uncertainties remain under potential of human operating and financial impact of the pandemic.
Starting with Cogeco connexion recent initiatives.
I'm pleased to report that we closed the acquisition of the retail income on December 14.
The acquisition of the third largest cable operator in the province of Quebec.
Tables, cogeco connexion to expand its activities in more than 200 municipalities in Quebec.
And adds approximately 100000 customers to its base.
This key strategic acquisition as increase our foothold in Quebec and is highly complementary in terms of geographic areas.
We expect D. D D. The acquisition of D E will generate superior growth relative to our current Canadian operations.
We will pursue the Reis network expansion and introduce Cogeco connexion product lineup.
During the quarter, we continued to gradually rolled out our IP TV service called apical.
Which is now offered in approximately 85 per cent of our Canadian footprint.
We are planning to launch a marketing campaign next week, which will allow us to attract new customers and up sell a portion of our current customer base.
Ethical provides many benefits such as customization settings for customers.
Access to the Google play store.
Integration with OTT platforms, a Wi Fi connection self.
Self installation capabilities and an overall lower delivery cost.
We have continued to be active in bidding for network expansion projects. That's part the various government sponsored programs.
Aim at providing ice speed internet to Unserved and underserved areas.
Cogeco was awarded a total of 25 projects in Quebec, and Ontario, including four projects, where D retail income.
Since the programs were in launch.
Furthermore, we have submitted more than 100 additional projects, which are currently being reviewed.
With deep roots in regions and rural communities in Ontario, and Quebec Cogeco is at the forefront of solving the connectivity challenges faced by consumers and businesses in on.
Under served and Unserved areas.
With these network expansions, we will continue to help close the gap in digital axis and extend our regional ice speed Internet coverage.
Finally, as we await the CRT sees conclusion on its mobile wireless services review.
We continue to forge ahead with our plan to enter the mobile services market aim at providing more choice to Canadian customers in the regions we serve.
Now turning to the key initiatives at Atlantic broadband.
The main focus in the last quarter has been to put in place a new offer strategy, which is simple transparent and puts broadband at the center of the customer experience.
We expect our new broadband firs off our strategy to increase customer experience and satisfaction.
While improving boat customer lifetime value.
And contribution margins.
The broadband first offer.
He is currently in market and will be fully launch.
The footprint during the second quarter.
The related new pricing strategy resolves around the internet offering.
And put.
Less emphasis on bundling than in the previous construct.
Customers will still have access to the full product lineup, but be incentivize to add more services through modular pricing.
However, the video product, which still face sizable cost increases will.
It will be price in line with the cost of delivery.
And then share that it continues to contribute to earnings in the long term.
For this reason it will generally not longer be offered to new customers as a standalone product.
Except for some bulk contract with higher bundling potential.
With the increasing number of connected devices at home.
It is essential to have a strong Wi Fi customer experience, which means a stable network working well across the home.
And easy to set up and modify.
Atlantic broadband has therefore upgraded its Wi Fi product.
And as announced on January 11th.
The launch of a new and an end Wi Fi solution.
This new solution integrates our leading edge customer facing application.
Including per until controls.
And network optimization.
Facilitating initial installation and providing remote assistance.
In diagnostics.
Proactive network maintenance.
The solution also enables seamless integration of network extenders, which can be added as needed depending.
On the size of the home.
The Wi Fi experience improvement is also planned to be launched at Cogeco connexion shortly.
As for Cogeco media.
It's financial performance was better than expected with a lower decline in revenue.
<unk> to the last quarter.
And improve EBITDA compared to the same quarter.
Last year as we have been maintaining our financial discipline, given the continued impact of the pandemic on the advertising market.
Regarding recent changes to our executive team.
I'm pleased to announce debt zubair months without the.
Has joined the Cogeco group at the end of November.
As senior Vice President and Chief Technology Officer.
Z, where as nearly three decades of experience in the telecommunications industry set.
Several executive positions planning and leading major broadband network expense implementations.
Zubair has years of experience in telecommunications combined with his drive leadership and collaboration skills will be instrumental in furthering cogeco is technology and innovation strategy.
I will now on that.
Discuss our financial results.
Thank you for that.
For the quarter revenue at Cogeco Communications, Inc.
<unk>, 7% and EBITDA at 10, 5% in constant currency.
When compared to the previous year.
This was driven by EBITDA growth of eight 9% at Cogeco, Connexion and 14, 3% at Atlantic broadband.
Consolidated revenue reached $619 million and EBITDA reached 311 million generating a margin of 63%.
Free cash flow has also increased by 36, 9% in constant currency.
The increase is mainly due to higher EBITDA, but also a decline in capital expenditures financial expenses and current income tax.
Capital intensity in the quarter was 18, 8%, which is slightly lower than the 20% target we have for the full year.
Quarterly dividend has been reconfirmed at 64 cents for Cogeco Communications and now I will discuss the components of it.
At Cogeco Connexion in Canada.
Revenue has increased by two 2% relative to the same quarter last year, mainly due to the cumulative effects.
Paint demand for residential high speed Internet since the beginning of the pandemic and better product mix.
On the rate increases implemented for certain services.
Yes.
Costco connections EBITDA increased by eight 9% as a result of increased revenue and the decline in operating expenses.
Now the decline in Opex is due partially to lower sales and marketing activity referred to the second half of the year in the context of the pandemic.
And lower compensation expenses.
<unk> from an operational optimization on program implemented during the fourth quarter of last year.
The broadband customer additions were slightly lower than usual in the quarter, but at higher <unk> due to a better product mix.
The video product losses were in line with historical trends and finally, the phone losses or also in line with historical trends, except that last year had on unusual addition, due to a bundling strategy used other time.
At Atlantic broadband revenue in constant currency increased by nine 8% in the first quarter compared to last year.
EBITDA increased by 14, 3%, if we exclude the Thames Valley acquisition impact revenue and EBITDA would have grown by $8, two and 12, 8% respectively.
Organic revenue growth comes mainly from residential and business Internet service customer additions throughout dependent.
Rate increases implemented for certain services and increased political advertising revenue related to the United States presidential election.
Superior organic EBITDA growth was mainly due to the revenue increasing at a greater pace than operating expenses.
Similar to Cogeco Connexion Atlantic broadband deferred certain sales and marketing expenses for the second half of the year, primarily due to the COVID-19 situation.
Also note that video contract cost increases normally take effect on January one and will be fully reflected in the second quarter results.
Atlantic Broadband has very strong customer addition.
Additions with 12000, new Internet customers and it has continued to modestly grow video and.
Phone customers. This allows for a third quarter in a row, partially thanks to new Florida bulk residential customer activations, which were stronger than usual during the quarter.
Let's now take a look at Cogeco, Inc.
In the first quarter consolidated revenue increased by four 3% and EBITDA by 10, 4% in constant currency.
On the broadband business had strong results the media business continued to be impacted by the pandemic due to certain segments of the retail industry, reducing advertising budgets.
Revenue related to the radio operations decreased by 13% versus last year on the first quarter. However, it is an improvement from the last quarter the previous quarter Q4.
Where we had a decrease of 29% year over year.
We will continue to monitor the situation closely in the coming quarters as uncertainty remains for the economy in general and more specifically for certain categories of advertising with.
Operations being in lockdown at the moment.
Finally, the quarterly dividend has been reconfirmed for Cogeco, Inc. At $54.05 per share.
I will now discuss guidelines.
Communications.
Has revised its guidelines for the full year to reflect the day REIT Telecom acquisition, which closed on December 14th.
The stronger than expected first quarter results, especially at Atlantic broadband.
On a constant currency basis, we do expect mid to high single digit percentage growth in consolidated revenue and EBITDA for fiscal 2021.
The acquisition that day retail economy is expected to have a positive impact of approximately 3% on both revenue and EBITDA.
Now underlying those guidelines.
Cogeco Connexion, we do expect to achieve mid to high single digit growth in revenue and EBITDA for the year, which is a combination of the day acquisition.
And low single digit organic growth.
No debt EBITDA is expected to gradually decline in terms of growth year over year decline.
Over the next three quarters as sales and marketing costs ramp up and the balance of the year.
And certain cost savings related to the pandemic are expected to decline in the second half of the year.
Also note that last years comparative period in 2020 and in the last two quarters of the year was especially strong.
At Atlantic Broadband, we expect mid to high single digit growth in revenue and EBITDA, resulting from strong residential and business sectors and the continued expansion in Florida.
Similar to Cogeco Connexion Atlantic broadband growth should gradually decline over the next three quarters.
As a result of sales and marketing costs or anything.
Internet growth gradually returning to pre pandemic levels.
And having the results of the things about the acquisition and the comparative periods for Q3 and Q4.
On a consolidated basis capital intensity is expected to remain at 20% and free cash flow on a constant currency basis is expected to grow at a low double digit percentage.
As for Cogeco, Inc. We do expect in constant currency mid to high single digit growth in revenue and EBITDA in the high single digit percentage growth in free cash flow.
I will now turn to Phillips for concluding remarks.
Thank you Patrick.
On the basis of our strong first quarter.
Fiscal year 'twenty 'twenty, one looks very promising despite the unfavorable economy impacts related to dependent Mick as we will continue to manage our costs closely.
And pursue profitable growth through various organic initiatives and acquisitions when possible.
Pro forma that theory telecom acquisition.
Our two five times net leverage leaves ample room for other acquisitions and share buybacks.
Through to our commitment to bring new services and competitive choices to our communities.
Especially in underserved regions, we remain engaged in launching a mobile wireless service in the regions we serve.
If the regulatory conditions are conducive to our entry in the market and are meeting our financial return objectives.
Finally, I would like to highlight how proud I am.
And that we achieved or surpassed Sn.
Essentially all of our corporate social responsibilities targets in the last fiscal year.
We have been a trusted and reliable partner for our customers in this challenging environment and we all have contributed to the development of our employees. In addition to surpassing our genders diversity objective.
Furthermore.
We have taken part in developing our communities.
Surpassing our target donations.
And efficiently manage our environmental footprint by reducing more G H D emissions than our target.
Finally, we have maintained a sound culture and a strong corporate governance as we remain in the top tier of family controlled publicly listed Canadian companies.
As ranked by the Globe and Mail Board games.
And now we will be happy to answer your questions.
Okay.
Question. Please press star followed by the number one on your telephone keypad to withdraw your question. Please press the pound key.
Our first question comes from Vince Valentini from TD Securities. Please go ahead. Your line is open.
Yes, thanks, very much and congratulations on me.
Total first quarter results.
First for true probably can you flush out a bit more of the deferred marketing costs that you're talking about.
In terms of watch day, if you can are we talking 5 million or $10 million.
That you expect to catch up on spending in the next three quarters and also in terms of timing I assume it starts from the second quarter. If your your wallet share of IP TV. He goes goes more public starting next week I assume the cost ramp up at that time. So that's question number one.
Number two.
More broadly on on.
The allocation of capital and share buybacks with your free cash flow guidance going up pretty substantially to low double digits from low single digit growth for this year.
Your balance sheet, obviously still pretty strong even after paying for dairy is there any consideration to increasing the share buyback program, either the NCI be getting more active or.
Perhaps even a substantial issuer bid thank you.
Good morning, Vince.
Yeah. So on the Opex side. The so if we look this is a story for both countries for different reasons.
What happened there.
The Covid situation has slowed down the number of connections and Disconnections.
And for that reason, we thought it was wiser to defer some of these expenses on the economy gets back to normal in the back end. So you should expect that theres going to be more on Q2, but especially more than that in Q3 and Q4, it would be difficult to quantify what it is.
Actually even though the exact spending by quarter is not fully determined yet and what we would have normally spent this quarter without COVID-19 is undetermined as well. So that's why we prefer.
Referring to our yearly guidance we provided.
We're a bit more precise than usual on a on.
ABB and Ccs.
Our physical connection.
To help you.
With this so difficult to quantify on more than this but I would say our ramp up throughout the year.
You also know that our Q4 ends with the back to school.
So that's normally a carry on the war theres more activity.
On the capital allocation, we are absolutely in favor of buying back shares we have been fairly active I would say over the past year.
Except on the fall given the circumstances that are you know well we were advised to not buy share. So that's why you did not see anything.
But we are planning to be active in the future in terms of buying back shares.
Normally in CIB allows for a significant capacity our program allows for up to 10%.
On the float and given that we haven't bought them a couple of months, we have ample capacity on that program.
Thank you.
Your next question comes from you from delay from day Jonathan. Please go ahead. Your line is open.
Yeah. Thank you very much.
Thanks for taking my question, we've seen that's trying celebration.
U S growth.
Can you please break down the road what proportion of this Oh this growth is due to political ad rates.
Our rates increase and maybe subscriber we can calculate it but with the other two please.
Yes, the political ads are.
This is something we don't control obviously it depends on the on.
The agenda and it.
It did add about 1% to revenue in the quarter versus last year and about 2% to EBITDA.
This goes directly down to the EBITDA line, because theres no cost attached to it.
Now in terms of a price increase of subscriber increases and also a better product mix other than we've been able to sell a higher packages than than usual I would say, it's a mix of all three of those are there's not necessarily one element that that represents 80% of it.
That's a it's a mix.
Thanks, and regarding the acceleration in broadband net additions in the U S.
Just trying to understand this could impact the seasonality of future net adds do you think there's a lot of summer homes, maybe should we expect more season. All these connections going forward.
Well when we bought Metro cast there was the death of adjustments in the Euro would be euro comparison, but we're past that now.
I would not assume anything major you should note, however that Florida was stronger than usual in terms of a new I would say lighting up on bulk carrier contracts. These contracts they take a bit of time between selling building and lighting up the building.
So both in a in a.
Video and HSI.
Florida has the added about three to 4000 psus. So that's for both video and HSI.
And so it's been a bit more spotty than usual, but still very good performance on.
On HSI. Besides this going forward.
We do expect to have a better performance.
In the U S in terms of the PSU additions than usual given the COVID-19 situation.
Thank you.
Your next question comes from Matthew Griffiths from Bank of America. Please go ahead. Your line is open.
Hi, Thanks for taking the question I wanted to ask about the Atlantic broadband and the broadband first strategy, which seems like a little bit of a COVID-19 I think previously.
With a focus on.
On the bundle and I was just wondering what you're seeing in the U S debt.
Made you a shift like this and what you hope the impact.
We will be.
Going forward.
And maybe separately on the integration of dairy.
Lay out some milestones that you are expecting.
And the integration, whether it's on I'm thinking of the realization of cost that you may have to incur upfront.
And maybe the realization of synergies as we go throughout the year or anything you can kind of talk about how the integration is expected to play out. Thanks.
Thank you, Matt you would sleep I will address the broadband first part this will add more on beauty.
Two.
To summarize.
The change or the shift that is happening in the market. It's in part driven by the technology change video was delivered on dedicated video networks as we all know in the past and now video was actually moving as an IP application or a night.
Service over.
Over the top of these broadband faster and more quality broadband networks that we've been building everywhere, so not only broadband.
To connect to the ice speed Internet is.
There's a strong increase there but video consumption on top of broadband.
Is becoming more and more popular so that will certainly.
Create a world where legacy video will remain for a long time as it winds down it will take time, but the new video markets are mostly broadband driven so that's why we're shifting.
Two a broadband versus making sure we can install.
Fast and high quality networks as well as Wi Fi inside the home to make sure that every device every laptop every.
IPad.
Every.
Connected devices inside the home, including the video devices benefit from a strong Wifi platform.
So that's that's the shift that is happening and that's where.
Staying ahead of now for duty.
Further he actually we we closed about a month ago and things are going well.
Obviously, when we make acquisitions like this there's on the integration of the teams.
Our reporting lines. So that's been done already.
There is also.
Integration on the systems of which takes a bit more time, so that's going to be a bit later in the year.
And are we are we do expect to generate additional revenues from bringing the cogeco product lineup to D V, including on the business side.
So this will start soon and are those cost synergies on procurement.
That is already in motion, so I would say.
I would expect that.
On that all these things will fall into place throughout the year that was the that was the plan initially.
And starting next year, we're going to be normal mode of operation.
Thanks.
As a reminder to ask a question. Please press star followed by the number one. Your next question comes from Jeff Fan from Scotiabank. Please go ahead. Your line is open.
Thanks, Good morning, I Hope you guys are all well.
Oh, one other follow up on the U S. A broadband only.
I understand the rationale.
And I'm wondering.
What do you think that.
Move we'll have all the impact on margins.
Because we've seen other.
Cable companies smaller ones.
Secondary to secondary markets that are focused on broadband only strategy and we've seen pretty significant margin expansion on your ABB segment.
<unk> 45 per cent.
50% margins are not unreasonable to think about so I'm wondering if you can comment there.
In terms of the medium longer term impact. The second question is on Canada.
Just a follow up on Felipe.
Felipe your comments about entering the wireless market.
Leaving spectrum and leaving regulatory aside.
From an operational perspective, I just wanted to hear your thoughts or your take on the readiness of cogeco to enter the market.
Specifically, when we talk about things like billing systems.
Handle wireless customers.
Whether you plan to investing your old core.
Till location I was wondering if you can just touch on that maybe in a general sense about that.
Potential cost impact.
When and if you do decide to enter the wireless player.
Okay, well I'll just touch briefly.
Lee on a video broadband margins patch pump his getting compliment and I will answer your wireless question. So on the shift to broadband.
There's definitely an increase in our margins there we all know the contribution margins of broadband is good.
And we as customers will shift from a legacy video network delivery and legacy C. P ease as well that are very costly.
Do the new ones.
Based.
On the broadband fiber optic networks that we're building are there will be an improvement over time there. So that's a that's a game.
Now on the wireless side.
It's still too soon.
With absence of.
Decisions from the CRT C and other decisions that are industry, Canada could.
Who couldn't make it and announce in the near term future too.
To disclose our go to market strategy, but let me say this the.
The on the.
Adding a wireless mobile and wireless layer to our networks and the operating areas. The current operating areas, we have ample capacity.
On the transport of all of these.
Of all the singles can be can be made very easily we simply have to add the radio access network.
Core in terms of transport is already built it is our it is feeding our broadband strategy today.
We have a number of systems that were upgraded in recent years debt could handle easily things like commissioning and billing.
There is a small very small addition, due to the core network that we need to make we know exactly what to do.
And how to do it now as to the models for the go to market that we will choose I've said it many times.
We will bring more competition to the market place with a a.
Leading edge.
Market in terms of go to market, so I won't expand more for obvious competitive reasons at this point, but we are first and foremost expecting to see our T C and I said too.
To address the barriers to entry for regional players like Cogeco.
True, Canada, so back to margins.
Yeah. So.
Basically what.
Our strategy in the U S as more an evolution rather than a break from what we've been doing in the past obviously overtime.
We've been migrating towards like the whole industry.
Having the broadband is the key product.
But the way we're restructuring our go to market approach, it's really going to be focus it's going to be more visible than it used to so it's more of an evolution than that's Phillips said with new tools as well know better devices in the home to provide a better service from a broadband standpoint.
<unk> said, we are we did generate about 45% on margin last year, we would expect margin to increase a little bit this year.
It's our goal is to remain profitable and generate free cash flow on video, which we're doing today.
And as we move into the 19 mold eventually went on.
There yet in the U S. This law, how decreased cost as well and make sure that we have are valuable.
And profitable video products so.
Difficult to say, where we will be in the future.
But we would rather have a gradual increase in margins over a good revenue base.
And then accelerate margin on declining revenue based on video so that's.
That's the goal at this point.
Okay. Thanks for the color.
Well, maybe we could just simply other as well as the C. P. R. R costing far less with IP on IP in broadband networks. The Capex savings. There will also be reuse for network expansion. So we will grow these broadband networks and the video expenditures will decline.
Great. Thank you.
Your last question comes from Tim Casey from BMO. Please go ahead. Your line is open.
Yeah, Hi, Thanks, I'm wondering if you could.
Give us given.
As you say, it's on the evolution into broadband wood.
Would you be willing to share.
Any numbers on what the RP levels Youre getting out of broadband in both territories.
And second just a point of clarification Patrice.
You said prices start to come in in January I believe in the U S could you just.
Review for us the magnitude of price increases I guess on both sides of the border and when they would kick in thank you.
Okay.
Let me start with the last one so on the video price increases we normally signed multiyear contracts. So usually there are two or three year contracts.
There are some years other than more lumpy than others.
This year, there's a bit more than last year, starting in January 1st it's not all the contracts that's a portion of them.
And then Canada is a bit more normal.
Overall in both countries.
On a per customer basis, we expect mid single digit increase in the video cost it used to be higher than this in the U S that used to be the low double digits. That's one point.
And so that's why we're managing this closely.
Sometimes we have to make choices also on the on the video programming that we carry to make sure that the channel as we carry are possible and we can generate the revenue on so that's what you have.
So you should not expect on a.
Great increase.
But.
Even last year a number of programs.
Kicking on on Jack's first.
No we don't segregate our revenue by our pool by product so.
That's not really something I could comment on that at this point however.
However, with the new strategy, which is early days, we had it in market right now and we've had it.
And.
And the non promote non promoted fashion. So it's a it's small scale just to test the water, it's going well and we've been able to increase our pool, especially on the broadband side.
So far for with what we have so we will be able to talk more to that once were.
At a larger scale in market and a comment on what we're seeing.
Thank you.
And we do have a follow up from Vince Valentini from TD Securities. Please go ahead. Your line is open.
Yeah, Thanks for getting me back in.
A couple of things we haven't addressed countries the two.
Any of your own rate increases to customers as opposed to the.
On the programming cost increases that you're absorbing I think some of that stuff.
On the delayed because of the pandemic over the past 12 months can you just level set us remind us when the last price increases were and what the most likely schedule is for the next round.
And then the other.
Just a per.
For 50 bps, if you want.
The outlook for acquisitions in the U S. Any update there on how the pipeline looks of targets that could become available is that sort of thing. That's true is there much for sale price is still pretty high do you have any hopes something might get that on the next six to 12 months that'd be great. Thanks.
Okay. So on the price increases we did the.
We have some price increases on some products in Ontario in June.
And we had some in Quebec in starting in November.
Overall, if you take the two of them, it's about 3% on annual basis and that does include video as well so.
So we need to obviously increased prices on our products to match inflation in and then we need to be able to maintain margins on on video so that about 3%.
In the U S. It.
It was about 4%.
And the price increases were done in September.
As to the future.
Something we generally don't comment on because we prefer announcing it to our customers at the same time.
And these decisions are very during the year, especially during COVID-19 as you pointed out we did.
Slow down the price increases by a number of months to help our customers.
So we'll see how we'll have to see how this plays out on the future but.
I would not necessarily assume anything unusual going forward.
For M&A in the U S. We continue to view the a sizable potential in the U S market, there's a number of companies still between.
30 to 40, maybe a little bit more but dependent because certainly they are in effect. There are conversations are taking place, but our negotiations have been slowed down. So we continue to be optimistic.
We continue to work very hard on acquisitions.
And you've seen that we've closed three and in the past year, we would like to do more than debt, but we.
We have to be we are good partners, but we need to to take the time it takes to do it well and do it right.
Yeah.
I would now like to turn the call over to the presenters for any closing remarks.
Okay, well thanks for participating today, we're gonna be back with the second quarter results in April that feel free to call us. If you have any questions on that in the meantime, thank you.
Have a good day.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.
Good day.
Yes.
Okay.
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