Q4 2020 Greenhill & Co Inc Earnings Call

Okay.

[music].

Good afternoon, and welcome to the Greenhill and company, Inc. Fourth quarter 'twenty 'twenty earnings Conference call.

All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

After todays presentation, there will be an opportunity to ask questions to ask a question Press Star then one on your telephone keypad to withdraw your question Press Star then two please.

Please note. This event is being recorded I would now like to turn the conference over to Patrick simple director of Investor Relations. Please go ahead.

Thank you.

Good afternoon, and thank you all for joining us today for Greenhill fourth quarter 2020 financial results Conference call I'm, Patrick Zone holds greenhill as head of Investor Relations. Joining me on the call today is Scott Bok, our chairman and Chief Executive Officer.

Today's call May include forward looking statements.

These statements are based on our current expectations regarding future events that by their nature are outside of the firm's control and are subject to known and unknown risks uncertainties and assumptions.

<unk> actual results and financial condition may differ possibly materially from what is indicated in those forward looking statements.

For a discussion of some of the risks and factors that could affect the firm's future results. Please see our filings with the Securities and Exchange Commission, including our annual report on form 10-K quarterly reports on form 10-Q, and current reports on form 8-K.

Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward looking statements.

Should not rely upon forward looking statements as predictions of future events. We are under no duty to update any of these forward looking statements. After the date on which they are made.

I would now like to turn the call over to Scott Bok.

Thank you Patrick we reported fourth quarter revenue of $147 million, which was our best quarterly performance ever an operating margin of 57 per cent and that didn't come off $2.71 per share for.

For the year, we had revenue of $311.7 million on operating margin of 18 per cent and that didn't come up dollars 36 per share or quarterly revenue was up 32% on earnings per share was up 158 per cent from the same period last year.

For the full year, our revenue was up 4% and earnings per share was up 202 per cent from the prior year in sum we had a very strong finish to the year, resulting in very respectable pandemic. Your results on the top and bottom line all consistent with our commentary on the past couple of quarterly Investor calls.

Clearly quarterly revenue of the scale, we achieved requires a lot of things to go right. We generated multiple very significant M&A completion fees multiple very significant restructuring completion fees and a long list of smaller piece to go with them. We also benefited more than usual from accounting rules in relation of revenue recognition that came into effect a few years ago and sometimes require revenue.

From completion fees to be book before the transaction triggering that fee is fully completed.

But just to make clear that our very strong quarter was not simply a matter of transaction timing our earnings per share for the quarter was greater than the analyst consensus forecast for the fourth quarter in the next four quarters I had combined in other words, our profit on one quarter exceeded what was expected for five quarters looking.

Looking at our full year results, we benefited from particularly strong results from our European M&A business and our U S. Restructuring business. We also benefited from an expanding array of financing advisory roles that are neither traditional M&A nor traditional restructuring.

Our private capital advisory business made a meaningful contribution as well, albeit considerably less so than on the prior year on.

Revenue for the year was highly concentrated in a few busy areas as many regions and sectors were heavily impacted by the pandemic and related constraints on economic activity and.

And that's produced only modest revenue importantly, we see nearly all of those areas is poised for significant improvement in 'twenty and 'twenty, one given current market conditions and what we can see in our pipeline of assignments.

Turning to our costs our compensation ratio for the year was 62 per cent moderately above our target level as we invested much of our non compensation savings and rewarding our strong performance in what was a challenging year for all.

For the quarter the compensation ratio was unusually low as we worked to achieve a reasonable full year cost level. We did similarly in last year's fourth quarter as noted in the past we will have some quarterly volatility, but aimed to manage annual compensation cost to a target level.

Our non compensation costs were down 18% from the prior year. Despite the fact that we incurred rent.

Rent expense on two New York headquarters locations from much of the year as we built on new space.

Some of those cost savings flowed from reduced travel due to pandemic related restrictions and we believe those cost savings will continue for much of this year, even after that we expect to have considerably lower travel expense than we had historically.

Separate from travel or cost savings resulted from a wide variety of management initiatives and we expect the benefits of those moves to be sustained for the long term.

As a result, we expect our 'twenty 'twenty, one non compensation costs to be materially lower than they were in 2020 when it turned they were substantially below the level in 2019 as.

As one example, the rent expense for our headquarters in 'twenty 'twenty, one should be $7 million less than it was in 2020, given we had both more expensive space in some months of duplication in the year just standard.

Notwithstanding those savings, we will have a higher quality space and room for more bankers when we did on our prior headquarters location.

Given the significant opportunities we are fine to reduce non compensation costs, we see increased potential to obtain our goal of a 25 per cent operating margin like we achieve for many years of our history and that is our goal.

Our interest expense for the year was $15 $5 million well below last year's level as we benefited from a lower interest rate premium post our refinancing last year lower market interest rate levels reduce debt outstanding and the absence of a refinancing charge.

For the quarter interest expense was $3 $5 million as we continued to benefit from low market rates and debt reduction in our borrowing costs currently around $3 four per cent I should remain low based on market expectations of continued low interest rates and our interest expense should continue to decline in line with our pay down of debt.

Our income taxes were considerably lower than last year as our income was skewed to lower rate jurisdictions. The opposite of last year. When it was skewed to higher rate jurisdictions. We also benefited to some degree from various tax law changes that were put in place during 2020 as a result of the pandemic going forward. We continue to expect an effective.

Tax rate of around 25%, excluding any charge or benefit relating to the impact of share settlements on investing of restricted stock and assuming no major changes in tax laws from the primary places we operate.

The actual rate could end up somewhat higher or lower in any given year, depending on where we are in most of our income on such here.

We ended the year with $112 $7 million of cash and debt of $326 $9 million, meaning we had net debt of $214 $2 million. During 2020, we made principal payments of $38 $8 million on our term loan, including a discretionary payment of $20 million at year end there were no mandatory principal payments due.

Due until March of 'twenty, 'twenty, two but we intend to continue paying down our debt on an accelerated basis as our cash flow allows.

Given the uncertainty created by the pandemic, we purchased only 489700 and force shares on the open market in 2020, plus another 764529 share equivalents in connection with tax withholding on investing restricted stock units for a total cost of $23 $3 million.

Our board has authorized $50 million on our repurchases of shares on share equivalents for the year ahead through January 2022.

While our principal focus will be on deleveraging, we intend to purchase shares on a prudent manner in an effort to further enhance the upside potential for continuing shareholders.

In that regard and note that our employees on about half of the economics of the firm through stock on restricted stocks. So we are fully aligned with shareholders as we seek to maximize value through the prudent use of the cash that we generate.

We also declared our usual quarterly dividend of five cents per share.

We enter 'twenty 'twenty, one and what feels like a favorable environment for our business with respect to M&A, a positive economic outlook driven by unprecedented fiscal and monetary stimulus combined with high stock prices low borrowing costs very substantial dry powder at private equity funds, a plethora of special purpose acquisition companies looking for deals and abroad.

There are other factors should drive increased deal activity.

In particular, we expect the increased M&A revenue on most of our international offices as well as in certain sectors like industrials, where activity was low in 2020.

At the same time, all restructuring activity has cooled considerably from 2000, Twenty's frenetic pace more debt restructuring should be needed for the many industries and companies adversely affected by the continuing pandemic and.

In addition, we are seeing significant opportunity to advise on various kinds of debt and equity financings and expect those assignments to provide a meaningful part of our near term revenue.

And some we would be very disappointed if we failed to generate meaningful revenue growth in 'twenty and 'twenty one.

And given our expectations of lower costs higher revenue should result in margin expansion and increased earnings.

I'll now make a few comments on our strategy. Our overarching objective is to increase the scale diversity and consistency of our revenue sources, while maintaining appropriate discipline unexpected.

As always we will look to recruit M&A bankers, who bring us incremental industry sector expertise our regional capabilities, we have an active pipeline of good prospects on that regard.

With respect to restructuring advice, we see our strategic initiative of the past few years to significantly expand our team as a major success, but we believe there remains the potential to expand even further in particular, we want to play more advisory roles on debt and equity financing transactions, we've had increasing success on broadening the range of transactions on which we advised and we see.

This is an opportunity that will continue even in periods, where there's much less bankruptcy related activity than we have seen of late.

And our private capital Advisory business, we have strong teams in Europe, and Asia and are on the process of rebuilding in the U S with an increased focus on higher value added transactions.

In terms of the strategic initiatives, we are aiming to enhance our focus on advising financial sponsors on a wide variety of transactions. Historically, we focused heavily on serving public companies and we've enjoyed great success without constituency. However over time, we came to realize that we've had increasing interaction with financial sponsors across our M&A restructuring and private capital advisory.

Businesses, we're now aiming to organize those efforts on a more systematic way designed to generate more revenue and we have already put significant resources into this initiative. We are hopeful that it will be at least as successful as the restructuring advisory team expansion that was our primary strategic focus over the last couple of years.

In closing I want to mention two landmark events on the life of our firm first this week, we are opening our new headquarters from the newly renovated Rockefeller Center building on sixth Avenue that is known to many as the old time life building, we look forward to welcoming clients. There once the pandemic has subsided second a couple of weeks ago, we passed the 25 year Mark in the life of our firm. It is obviously not the time per.

Celebrations of any kind, but it is worth noting the fact that our firm has proven resilient through numerous challenges over that quarter of a century. The dotcom bubble bursting September 11 terrorist attacks the financial crisis of 2008, and now a major pandemic. Our strong culture is the source of our resilience on both our global team and our brand will emerge from the pandemic stronger than ever.

With that I'm happy to take any questions.

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.

To withdraw your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.

Our first question comes from Devin Ryan with JMP Securities.

Please go ahead.

Great. Good afternoon, Scott and Patrick how are you doing very well how about you.

Great.

Maybe to start obviously terrific quarter I'd love to just get a little bit more perspective on kind of how the tone of business evolved and if you can.

Can you give some perspective around the various businesses the greenhill as and really what I'm trying to just think about is the commentary around expectations for improved productivity and.

I know, it's probably hard to give you an exact target of where you guys would like to be on productivity, but if there's anything you can share around how you think about whether its managing director productivity or employee productivity kind of what what's a range that you feel like is.

Both are achievable, but it kind of reasonable for the business today.

Okay. There's a lot there's a lot in that question a lot of elements to it in the you know starting with 'twenty 'twenty was a year I mean people talk about cycles. The last three years. So I think we had cycles that lasted for months.

So the first court on the first 10 weeks maybe of the year. It seemed like it was gonna be a good year on M&A of Goodyear and capital advisory kind of a normal to quiet year on restructuring obviously, when the pandemic sort of shut things down in mid March you had a a few months period, where are you know certainly things in the economy on the markets look pretty grim.

There was an explosion of restructuring opportunities, we won a tremendous amount of business. Obviously many of our peers did as well there were a lot of opportunities out there M&A really slowed down and and capital advisory essentially stopped because you know that's very closely tied to markets and people didn't want to transact when markets, where we're moving around on frankly falling so so.

<unk> dramatically.

That hasn't changed and in turn again really very quickly by time, you got to the third and fourth quarter, you know suddenly M&A started coming back to life, especially in the sectors that were less impacted consumer health care technology telecom infrastructure or things like that stayed quiet of course and in some of the areas that are that are more impacted.

Capital Advisory came back to life actually had a decent fourth quarter for us and restructuring, while theres still plenty to sort of work through the pipeline and finish.

They the that's sort of the rising of new opportunity has certainly slowed a lot as we got to the later parts of the year. So so it really was kind of a year with kind of three completely different pieces to it as we go into 'twenty 'twenty, one and I think you know what what gives us probably the greatest you know our enthusiasm with lots of potential.

For for increased productivity. It's just it's there's much more broad based opportunity I mean, we had many parts of our firm that really did not have good years at all last year. I mean, there were some parts of the world and there were some sectors like I would note industrial is probably our biggest sector in terms of number of M. DS where there just was very little activity and I think in some of those parts of the world.

Canada, Australia some of those sectors like industrials are you know, we think it's gonna be a very different year certainly it looks like that right now so I think the biggest factor in getting to a higher productivity is just a more broad based participation and the revenue production in any given year and.

Last year was very very skewed and kind of shifted a few different times, whereas in 'twenty 'twenty one it feels like a more broad based positive.

Environment for you now for frankly, almost every business that we're in you know, including I would say that and I've highlighted a couple of times on my my written remarks, the financing advisory and I do think theres going to be considerably less you know bankruptcy in bankruptcy like transactions for the for the near term, but we think we can offset a lot of that and find new opportunity.

And helping companies with financing, we obviously don't underwrite, we're not gonna do somebody's leveraged loan offering but increasingly the nonbank banks the shadow banks, whatever you want to call them that the new form of of lenders or many of which you cover in your research I know are very active in lending and companies don't have the same access to those that they do.

But maybe the bulge bracket banks that they typically have a revolving credit facility with so we are finding increasing opportunities to help them do that so that's a long winded answer, but hopefully answers a good part of your question.

Yeah. Thanks, Scott appreciate all the color there and then maybe just one follow up here.

And on some of the operating margin commentary.

Just trying to think about going from the call. It 18% in 2020 to call. It the mid Twenty's or let's just say, 25% you highlighted some of the kind of expense levers and then clearly you know the revenue assumption in there as well, but in a reasonable revenue environment, maybe say a healthy revenue environment, where you have a full year.

Europe book.

Healthy revenues is that enough to get there or where is that more of a an aspirational you're kind of moving towards that you're investing in the business and you feel like that is the firm scales and productivity improves that that ultimately kind of where you get back I'm just trying to think about is that something that the business kind of <unk>.

<unk> two relatively quickly if some of these expense savings.

First revenues get back to something maybe a little bit more normalized growth.

Or or are there other kind of factors in there as well I'd say, where you know where it looked last year shifted so many times one hates to make long term predictions, but even for even for a full year ahead, but oh no. We're we're more optimistic about getting back to the 25% margin. We had them for a lot of yours are a history not even that many years ago you know we.

Is it you certainly need a certain level of rebate revenue productivity to get there, but I do think the reduction in non comp expense is kind of a game changer.

And you know clearly we're getting a lot of savings right now with with travel and entertainment and other things like that but but we do think a lot of that is going to continue post pandemic and some of the other savings. We've just on a lot of little things that add up to a fair amount and clearly things like our New York headquarters, that's a fairly meaningful number for us So I think the the.

Adoption and non comp gives us increasing confidence that even with paying out a higher comp ratio than we did for many years of our history. When we had very very high margins. I mean today I think you'd have to have higher comp ratio to be competitive in terms of talent, but.

But we think we were you know we're getting closer to the point, where we can do both and get back toward those those high margins in the past.

Yeah.

Okay terrific. Thank you so much Scott and I'll hop back in the queue. Thank you.

Yeah.

The next question is from James <unk> with Goldman Sachs. Please go ahead.

Hey, Scott how are you doing good how are you.

Doing well so I guess my first one is I'm trying to tie together to your point that the restructuring business has cooled relative to 'twenty 'twenty, but also the fact that you expect the.

To be able to grow the business further in 'twenty and 'twenty. One maybe you can help contextualize, how you expect the full year 'twenty and 'twenty, one restructuring revenue too to sort of perform relative to 2020, and then as a corollary. You know maybe you could just talk about whether you're targeting more of the creditor side assignments or debtor side.

And maybe the split across those if you're able to do.

I think like most of our competitors, we do quite a mix. These days of debtor and creditor and also a kind of more plain vanilla financing along with.

You know more bankruptcy oriented type stuff.

I think like most of our peers are now, saying is well there there's going to be less bankruptcy activity real near term, but there's still a fair amount working its way through the pipeline. So that's going to happen.

We think there'll be and today is very robust financing environment more kind of alternative capital source of financing transactions that we can get involved in but my comment about really getting bigger on restructuring as it's more of a medium term comment I mean conceivably will will grow our you know the team further this year, but certainly I think over time, we will.

We this was a really a landmark year for us in 2020, we've always had our restructuring team very high quality, but not very big and we took a big step up in terms of size and I think now you know 'twenty 'twenty. It was great to add a lot of really a you know.

High margin revenue in and restructuring transactions, but I think equally important we added a lot of great credentials. So now on almost any relevant sector. We have far more credentials than we once did I think were much more on the gain much more on the flow.

And yet we're not at the very top tier of restructuring advisers on any sort of a league tables and so I think there is potential to grow further there whether we actually see revenue growth in 'twenty and 'twenty, one I'd, probably say that 'twenty 'twenty one feels to me right now like it's much more of a on M&A oriented environment on restructuring so.

If you ask which business I'm sort of most optimistic on in terms of growth. It would certainly be a b M&A, just given high stock prices low borrowing costs etcetera.

But you know, but we feel pretty good about both actually.

Okay and then.

Thinking about the capital advisory business.

Some peers have talked about that being an area of strength heading into 'twenty 'twenty, one as well maybe you could help us think about that one relative to you know in that matrix of restructure.

Restructuring versus M&A is that sort of in between those two or are closer to one versus the other.

I think that business is probably more a restructuring are sized to maybe maybe even a little smaller than that today, but we're in the process of building that up. So I think we you know we'd like to see capital advisory probably be more in line with our with restructuring in terms of sort of size of the biz.

I mean restructuring, it's going to be much more volatile you'll have some real booms and busts of course, whereas capital advisory should be probably a little bit steadier, but.

But we do think there's quite a lot of potential on that business. You know we we've we've got you know good pipelines in Europe and Asia. We've got some you know.

Expansion ideas are in the U S. Two to rebuild the team and really focus.

On higher value added transactions more work for private equity sponsors as opposed to you know just the the limited partner sale transactions from one institutional investor to another but that's good business too and we want to do that but it's not as complex large or high margin as is the general.

General partner restructuring oriented transactions. So that's how we were you know we're excited about that business as well, but again I'd highlight I think what what what really looks like it's in an extraordinary environment is is the M&A business and and you know we're going to really focus on taking a lot of advantage of that while we continue to build out restructuring.

In capital Advisory.

Got it and then the last one is just maybe you could touch on the hiring environment at this point for senior bankers and how it compares to maybe three to six months ago. And then you know what are your aspirations for growing that business I know a few years ago, you did sort of target growth rate for the M. DS over the course of the year, but may.

If you could update us on on how Youre thinking about that yeah, I'd still like to aim and obviously a pandemic appeal your ear, but I think apart in a more normal years I'd still like to see sort of 10%, our managing director head count growth.

Now I would say, it's a pretty interesting environment for recruiting you know it is it seems that always is the case on wall Street. There is a fair amount of movement around you know, we're we're having people reach out to us were having headhunters reach out to us were having.

Deal are the dialogues that we're initiating and in quite a few different areas around the world and you know I'd say, particularly in the U S with in a particularly probably more M&A oriented people, although clearly capital advisory as well.

And some selected on international opportunities as well so.

I'm pretty optimistic this will be a significant M D recruiting year for us.

Okay. Thanks, a lot and congrats on the record quarter.

Yeah.

Last question comes from Michael Brown with K B W.

Go ahead.

Great. Thanks, Scott.

Scott how are you I am very well by you.

Wow.

Yeah, So I thought I would start with the fourth quarter I, just wanted to kind of parse out the revenues there.

Could you just share how much of the revenues were associated with deals that were you know pre COVID-19 nurses transactions that were part of kind of the M&A recovery that started in the summer time and then.

The second part of that question is what proportion of the revenues were from restructuring or kind of liability management related transactions.

Okay for a few different questions. There I would say look a lot on our revenue and in the fourth quarter. It was a mix of really two things. It was I mean, there. There certainly were M&A transactions that are that arose and had very short kind of timelines.

Got done very quickly, but I would say a lot of the revenue was from our M&A transactions that we're certainly well in process before the pandemic and then from restructuring assignments that were new to us in sort of March April may you know what when there was the big Russia of opportunity we have.

<unk> seen a significant pickup in M&A dialogues I would say starting in the fall and then ramping up through the <unk>.

Through the winter, but you know a lot of those of course haven't even reached the announcement stage yet some of those will get announced and then closed very quickly others will have a little bit longer timeframe to close but.

I think you know that that's a good way to describe.

24th quarter, 2000, Twenty's, a revenue as far as how much of our revenue was sort of restructuring related and you know if you said, it's a you know putting aside what teams worked on on what parts of the firm and all that but what really related to sort of a bankruptcy or a bankruptcy type or maybe a financing advisory a debt financing advisory type role.

I'd say it was about.

Probably a third of our revenue for for the year I'm not typically quantify that all that much but look this was a big year in that space. So it's worth highlighting I don't think.

Most investors have had seen us as a firm that has that kind of scale to our our restructuring business. So clearly it's grown a lot over the last couple of years as we've invested in I would say you know in rough terms, it's very hard of course to you know to parse out in and at the margin what is the kind of on M&A transaction versus a restructure.

On transaction in many cases, but I'd say, if you said roughly a third of our revenue in 2020 came from something related to debt restructuring that would be a fair estimate.

Yeah.

Yeah.

Yeah I appreciate the candor.

Candidly there I know it's always.

<unk> two to split that out.

And then a follow up there you had talked about some of the accounting nuance from the revenue recognition rule changes from Covid.

Years ago.

It sounded like that had them more outsize impact this quarter can you quantify that and was that associated with kind of one transaction or was it a few few deals.

I'm just trying to make sure that we think about this correctly when we look at the public data and what's on your website. When we think about you know 2021 sure.

You know, we've never really quantified that caught on that kind of issue. So I'm. So I'd hesitate to do that now, but I'll I'll say this look I think I mean this this this change which we had nothing to do with of course, no one else on our industry does as well it just sort of was handed to us.

<unk> occurred a number of years ago. So everything is apples to apples now we had the same thing in the fourth quarter of the prior year and when we do on every quarter. You have you know just just like we have some you know you'll know that reimbursed expenses didn't used to count as an offset against the cost now it causes a piece of revenue and our accounts as a piece of revenue on that that that that's a piece.

That was missing in 'twenty 'twenty, obviously, because there weren't many expenses to get reimbursed and then likewise there are some nuances in terms of how how revenue gets booked on completed transactions and also some deferral really of our revenue on certain kinds of retainers, where you'll have to wait until there was kind of a completed transaction to book retainers, even if you've been paid on them.

So there's pluses and minuses in every given quarter. The pluses were a little higher this time around so I wanted to make that clear to people. Just so there's no no confusion than it was a more material thing, but but again, that's why I wanted to highlight also that you know this is not some sort of you know pulling a little revenue out of one quarter on putting in.

On another I mean at the EPS was <unk> was more than what analysts were forecasting for five quarters and as you've heard. We're you know we're pretty excited about what 'twenty 'twenty, one can bring as well. So we're hopeful for them to build on on 2000 Twenty's results rather than see 2020 is something that's been diminished by by the way 2020 ended for us.

Yeah.

Okay and it.

I just had kind of segue into maybe one more question for me.

You saw that you guys closed a large.

Lucrative transaction earlier this week and then when I can see from your public pipeline is that.

That kind of depleted a lot of.

On the expected revenues, we can see obviously every day it changes.

But you certainly mentioned some very constructive and bullish comments about the M&A outlook.

And so what I was hoping could you just share maybe a little more color about what you are seeing in the nonpublic pipeline or for Greenhill, specifically just to give us a glimpse of what could be coming.

The term as we think about.

The first quarter and then maybe the second quarter here.

And then and then you think about the cadence of revenues in 2021 do you expect it to be kind of a normal year, where.

It kind of builds into the second half of the year and fourth quarter typically being our strongest thanks, Okay again, a number of things tucked in into that one I see 'twenty 'twenty, one if I had to you know guests.

<unk> today is looking more normal than the last two years. The last two years for whatever reason, we had a very strong finish to the year and it sort of got us to a good outcome in the fourth quarter was really on a lopsided positive results on the fourth quarter I'd see 'twenty 'twenty, one as being a little more normal in terms of revenue sort of spread across the.

A year.

Secondly, I would say that.

I think it's gonna be a much more normal year in the sense of sort of a more higher granularity to the to the revenue.

Not as dependent on as few businesses like our European M&A and in UK, I, remember, sorry, and and U S restructuring as I said were really strong in 2020 and many other areas very quiet I think we're gonna see much broader participation and so when I look at our pipeline sort of our internal pipeline of assignments you know I see law.

What's more our M&A deals I see different kinds of deals like financings I see us obviously, finishing up a lot of restructurings, where most of the work was done last year, but they will end up closing and you know and call. It. The first half of this year in most cases, just given the time line those normally take.

And you know many of those M&A transactions, we're working on will have because they're not all you know he.

Huge blockbuster deals they they will have shorter approval timelines from a regulatory and shareholder point of view and and therefore have a pretty quick move from sort of announcement to to close so if I add up all of that is just a year of broader participation higher granularity at least as it looks right now.

And I think that will lead to what is probably a bit more normal looking year than than the last couple of war.

Okay. Thank you for taking my question Scott Okay. Thank you.

Yeah.

This concludes our question and answer session I would like to turn the conference back over to Scott <unk>, Chairman and CEO for any closing remarks, Okay. I'll just close by saying. Thank you everybody for your time and I wish everybody. Good health as we work our way through the pandemic and look forward to speaking to you again on our next call.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.