Q3 2021 Lions Gate Entertainment Corp Earnings Call
Performance of future seasons, as well as upcoming installments of the power franchise, raising Kanan and force.
And we've established ourselves as the go to premium service for grown up audiences. Our brand continues to set us apart and a crowded marketplace and we of our biggest and most ambitious starz slate coming and the year ahead.
With of programming and marketing spend informed by the consumer data that we've harvested from our direct to consumer business.
We just completed another quarter of high art too over the top domestic subscriber growth that drove solid revenue gains while we continue to convert our Comcast linear subscribers and to higher value Ala Carte zone.
And of schedule.
Internationally, we've expanded into 55 countries, including our Starz play Arabia joint venture with launches spanning 10 partners and 20 countries in the quarter.
We also continued to bolster consumer data and engagement by rolling out our retail app and another five countries.
Our partnerships with global streaming platforms and top local distributors alike are thriving from ghost to gains of London seduced of Spanish Princess are best of global <unk> content strategy is resonating with consumers, helping to drive our second straight quarter of nearly 30% over the.
<unk> subscriber growth.
We're capitalizing on our early traction by building scale in existing territories, while opportunistically expanding into new ones.
Most recently leveraging the past out of our Indian platform Lions gate play into Indonesia.
Second we continue to accelerate the convergence of our studio and platform businesses to support this growth whether lining of 20 Lionsgate television premium series for Starz, using our library to drive Starz international growth or leveraging our properties and talent relationships across all of our busy.
Mrs.
This afternoon, we announced that our collaboration with <unk> on the surface Queen the story of French Royal Catherine and the Medici from Bohemian Rhapsody is just and Hayes executive produced by Hunger games franchise Director Francis Lawrence and three Arts Erwin staff has been green let at Starz.
The latest example of our ability to Marshal all of the resources within our Lionsgate family to support the growth of Starz.
As everyone scrambled to vertically integrate their legacy businesses behind the growth of new streaming platforms, our ability to continue converging our studio platform and talent businesses is critical.
Third we continue to deepen our content pipelines, while taking advantage of our distribution optionality.
Our strong performance in fiscal 'twenty, one allows us to greatly increase our content and marketing investment and fiscal 'twenty two to be funded with our own cash flow where.
And we're responding to the record imbalance between content supply and demand and the marketplace by expanding our slated starz ramping up our scripted series production at Lionsgate television and readying of robust film slate that anticipates theaters coming back next year, while addressing huge demand for content across.
All platforms.
Our success and generating strong returns from early P bond multi platform and hybrid models for the films that Tal antebellum run and I can only imagine and the secret.
Thanks to our ability to monetize current films, while at the same time working with our theatrical exhibition partners to plan for the future.
One full year into the pandemic, our businesses are doing well and adapting to the changes overcoming the headwinds and delivering a strong financial performance, while creating evergreen value for the future.
We are much of the success to the amazing resilience of our employees and our creative talent family, who have doubled down on their collaborative team spirit innovated, new ways of working and communicating and demonstrated strength and resourcefulness and the face of adversity.
Now I'd like to turn things over to Jimmy.
Thanks, Jon and good afternoon, everyone I'll briefly discuss our fiscal third quarter financial results and provide some color on our outlook and first.
Third quarter, adjusted OIBDA was $134 million up 8% over last year and driven by strong performance and television with total revenue coming in at $836 million reported fully diluted earnings per share was a loss of <unk> <unk> and fully diluted adjusted earnings per share came.
And at 21 per share.
Adjusted free cash flow for the quarter was $111 million.
Now, let me briefly discussed of fiscal third quarter performance of the underlying segments compared to the prior year quarter, you can follow along and our trending schedules have been posted to our website and show greater detail around our global media networks subscribers.
Media networks quarterly revenue was $406 million and segment profit came in at $82 million driven largely by domestic OTT subscriber growth as well as the strong performance of Starz International as we continue to rollout and new markets and platforms.
Globally and clothing Starz play Arabia. The company grew OTT subscribers 900 sequentially or 7% as you can see and our training schedules.
Domestically <unk> subscribers increased 3% sequentially, while international OTT subscribers grew 26%.
Total global media networks, OTT subscribers reached $14 6 million, while MVP day subscribers stayed constant at $13 4 million for a total of 28 million subscribers.
We now expect our previous guidance on global media network OTT subscribers to exceed the top end of the 13 to 15 million subscriber range by the end of the current fiscal year approaching 50% plus growth year over year.
Now turning to our motion picture group revenue declined of limited theatrical releases of 250 million while segment profit of $50 million was in line with the prior year, Despite a tough comp against the prior year quarter, which included ancillary sales of John Wick.
And finally, we had strong performance and television where revenue for the quarter came in at $228 million and segment profit increased to $30 million.
Driven by additional Mad men licensing and episodic deliveries.
On the balance sheet, we continue to reduce leverage ending the quarter at three six times trailing adjusted EBITDA are just under three times, excluding our investment and Starz play International.
We continue to retain significant liquidity with $551 million of cash on hand and of $1 5 billion Undrawn revolver.
We remain committed to strengthening our balance sheet and paying down debt.
Now I'd like to turn the call over to James for Q&A.
Great. Thanks, Jimmy Caroline can we open it up for Q&A.
Absolutely. Thank you and ladies and gentlemen, if you wish to ask a question via the phone you may perhaps one and then zero at this time peer of using a speakerphone. Please pick up the handset before pressing the numbers and.
And once again, if you do have a question over the phone plus one and then zero at this time one moment for our first question.
Our first question comes from the line of Steve <unk> from Wells Fargo. Your line is open. Please go ahead.
Thanks, maybe just to start off I was wondering with just about a month left and the fiscal year could you maybe give us what your outlook is for fiscal 'twenty, One and then Jon and Jamie fiscal 'twenty. Two is probably going to look a lot different flow could you give us any sense of how we think about both the cadence for fiscal 'twenty, two but maybe also.
And as folks are maybe reallocating some budget from and home entertainment to Outhaul out of home Entertainment and you've got a bit more cost coming online. How you think about the margins and a year like fiscal of 'twenty two.
Sure Steve Thanks for the question.
In terms of fiscal 'twenty, one as we said from the beginning of the year that fiscal 'twenty, one was going to be more front end weighted so.
And as we as we look ahead to the segments. We continue to see media networks segment being flattish relative to the prior year for on a full year basis, and Thats as we reinvest excess profits there to de risk the model and position us for future growth and and motion picture group as we said.
Before I think over the remainder of the year of profits will continue to moderate sequentially.
Particularly with P&A spend on chaos walking is that increases and the fourth quarter and then in television and we remain on track for significant growth there profits up 50% for the full year as Jon noted in earlier calls so that kind of rounds out.
And how we would.
Finalize fiscal 'twenty of what we're seeing there and 120.
<unk> 21, and in terms of fiscal 'twenty two looking ahead.
And there we expect the cadence to be more backend loaded. So just the inverse of fiscal 'twenty, one so backend loaded and fiscal 'twenty to look we expect strong operational performance and 'twenty, two we're going to be and that with increased investment and content.
And marketing and as you've heard with regards to the various businesses looking at Starz.
It will reflect the impact and the timing of our content and marketing spend and motion picture group. The P&A spend it's going to be more front end loaded here because of the of.
More front end loaded first half theatrical release slate and then likewise more backend loaded and.
In terms of television in terms of episodic deliveries.
I would say is available and the first quarter of this year fiscal 'twenty two of that is so we've got a strong fiscal 'twenty two and its backend loaded.
I'd Echo, what Jimmy and I think.
All of our core business and it won't look that different them and we're going to of a strong library of year, we're going to continue to sell into a strong demand.
Television business is strong as I mentioned and where we've got 39 shows going on right now.
And we like the trajectory of our Starz business, both domestically and internationally.
I think it is going to be another strong year as Jimmy said.
Thanks have a lot of great color and if I could ask a quick follow up you've done a great job of getting leverage down into the threes and should we expect that to tick up a little bit and fiscal 'twenty two.
Yes, sure Steve look you're right.
We were down one five turns and the first nine months of this year.
So three six as of relatively low point at the moment.
And of favorable way, what I would expect as we go into 'twenty two with the content spend.
And marketing spend rolling through you would expect some increase in margin there to some peak kind of mid <unk>.
Early to mid year leverage ratios, but returning back of around four times leverage by the end of fiscal 'twenty two.
Good place to be relative to our where we are and our investment cycle with content and marketing.
Alright, thank you.
Operator next question please.
And as a reminder, ladies and gentlemen, if you wish to ask a question on today's call you May pass one and then zero on your phone.
Our next question comes from the line of Tim Nolan with Macquarie Securities.
Your line is open. Please go ahead.
Hi, everyone. Thanks very much.
Wanted to ask a question about profitability on the OTT side, if there's any color you could give us.
King.
Hubs outpacing the linear.
Or two ago, and I are saying revenue outpacing.
And the linear and the next quarter or two what are your thoughts on how the profitability profile of the Starz OTT service Standalone looks like.
Hey, Tim it's Jeff. Thanks for the question now if you look back over the last couple of years as we were primarily a linear networks bundled network with low ARPA of subs and we've converted as you said over 50% of of more of our OTT subs than linear subs and that profitability continues to come up you look at <unk> and the last quarter was over.
$6 I think there is some noise and that number is still based on our converting from bundled to other card on Comcast, but we expect longer term that would be somewhere between the $5 75, and $6 and ARPA. So a much more profitable subscribers as we bring them onto the platform and then if you look internationally and what we still think that will end up where we've said publicly somewhere.
Between three and $4 when we get out to 2025, and Thats a little bit more of a.
A steeper line as we accelerate the OTT growth and the international side. So overall, we're moving to where the consumer is but we're also moving to a much more profitable customer.
Okay cool thanks, Jeff can I ask maybe another one.
And probably also for you to Jeff about the.
Increasing competition, we're seeing obviously and OTT.
I believe you've done some some work looking at your data and trying to figure out what content to make available and at what times and how to mitigate churn I wonder if you've got any comments on churn and your ability to sustain growth given how much more crowded the field continues to get.
It's a great question I think if you take a step back and when we look at the industry and how it's unfolding now this is probably the first quarter with the exception of Paramount plus Thats coming at the end of March where all of the players are kind of on the field right now and as we've said before that first big broad based streaming services and Netflix.
And Disney Pluses of the Hulu that are trying to service everybody and the home I think that's where the real competition is going to be and youre going to see and people competing on AD spend people competing on price.
And people competing on bundling and as we announced today you saw now for the bundle and Europe. We think we'll see more of that as we go but we're really.
As a complementary service to all of those big broadband services and so we think with our programming strategy of being very focused on of female audience and underserved audiences and building out that slate as Jon said, it's our it's our most robust slate of yet we think that we've got a really good programming strategy, we've got a great <unk>.
And I'm actually Gonna, let Ali talk about the data and how we use that data to schedule and reduce churn and to what we're seeing and an all time low and the business right now.
Yes, and just to comment on the slate, we've got returning franchises like power I think we've got three installments of power coming next year, we've got outlander coming next year. So in terms of driving the business in terms of subscriber acquisition and and in terms of retention, we've got sort of that nice flow of flowing viewers from one channel into the Max as well.
It's sort of adding and building and.
Viewership and building a subscriber base as we go and we're always and.
Per Jeff note about in terms of the data, we're really always driving to the lowest of subscriber acquisition cost and.
And so that's really how we manage the business we are managing the business.
To have a really good return on our marketing investment and a really strong return on our content and document as well.
Great can I, maybe squeeze one more and please also on a similar topic I know that with Starz internationally, you've got a lot of Reits.
To content from the likes of Paramount and Hulu I Wonder if there's anything that we should think about might change given that we'll get some updates on paramount plus coming and the next couple of weeks or so or indeed anything related to Disney just if there's anything.
On your access to that international content that might change.
And I have to parent answer that question hi, Thanks for the question. So we have not been seeing a problem with securing fantastic content from producers and.
Nor certainly from our own today, and we have incredible content on our own slate, that's very international focused and we think are going to drive a lot of subscribers just as some examples there. We're very excited about separate cleaner and just announced today as well as dangerous liaisons, becoming Elizabeth and the power franchise works incredibly well for us, but net we have not been seeing.
And a slowdown in content and.
Acquisitions either.
Great. Thanks.
Okay.
Darryl next day.
Alright. Our next question comes from the line of Alan Gould from Loop. Your line is open. Please go ahead.
Yes, thanks for taking the question and I'm going to do sort of the flip side of Tims question addressed to.
Kevin Kevin and team sort of traditional television seeing probably change yet, but most of the accelerated rate we've seen in terms of ratings and advertising how does that hasnt of everything.
And everything play into your job as a producer of content.
Or all of television traditional streaming et cetera.
Thank you that's a great question, it's actually never been more of us Jon touched on.
Our production slate, which includes.
13th theories for Star and Santa doesn't more and development 14, or 15 across television landscape outside of the Starz Lionsgate family and the demand is at an all time high one of our strengths as a very diverse portfolio of producers writers.
Generators of both from within our own company.
And the brands.
And like John Wick, which.
We're developing and series with Jeff and his team and small and movies that have become and.
Important mainstays for series like Dear White people were and production on blind spot, Inc. For Starz right now.
We have a fantastic partnership with the BBC that's yielded.
And two pilots of season and one series of order. So the demand is high and everyone wants premium high high and scripted programming. It's what we've been doing for 20 plus years at Lionsgate as our own special Lane and now that lane, everyone wants to crowd or expand into a fall of entry way, but very easy for us to do so.
Okay. If I could just follow up for either John or Jeff was reading trade article from Starz play International.
Talking about possibly doing an IPO and the next few years and.
And that's the plan on Starz play International.
Quoting the CEO and and and.
Yes, Eric News article.
Yes look we feel really great about our starz.
Starz play.
Arabia.
32% wherever we're controlling shareholder with approval rights.
And there continue to be the market leader, we feel good about what they've built they've secured.
Our local loan Korea, which is really a validation of how great. They are doing and the marketplace. We.
We do have obviously, the Reits to consolidate and we will continue to look at the business and when we think it's the right thing to do and the right time, and we'll we'll look at that as an option.
Thanks, Jeff.
And ladies and gentlemen, if you wish to ask a question on today's call you May press, one and then zero on your phone and our next question comes from the line of Thomas <unk> from Morgan Stanley. Please go ahead.
Alright. Thanks, a quick question for Jeff You mentioned that there is some of our food trend impact as we move through the Comcast subscriber transition and lapped one year anniversary of their more broadly it looks like theres been some continued stabilization of traditional linear starz sub trends is there anything you would call out there about underlying drivers.
<unk> uptake despite broader cord cutting at the industry level.
It's a great question I would say two things I'd remind everybody that we're not a fully distributed AD supported network and so we have a lot of penetration room on our traditional Mvpds partners.
And so we think that theres, great again, great opportunity for us to grow on the traditional side with our audiences as well as of on the OTT side.
I'll also remind everybody that by the end of this fiscal will be at 80% of all of the cart on the traditional side. So that's really derisked. The traditional business is put the incentives are aligned with our partners to grow the business together and as our content slate continues to outperform on their platforms, we're going together and I think they are really great thing about that and those are.
Customers, who are actually seeking out starz and choosing starz so much.
Much stickier customer and sort of churns of also coming down. So I think we have an opportunity both to grow and the fast and more profitable side on the OTT side, but also on the traditional business with our traditional partners.
Okay, Great and then quickly on the film strategy I'm wondering if you could update us on and your views of taking film through their premium Vod window is there a right sized film or any puts and takes that helps determine what path of film might take in terms of monetization monetization going forward.
Yes sure. This is Joe and thanks for the question.
I guess, what I would say to you is that we have we talked a lot about it adopted what we're calling of platform agnostic approach to distributing film we're looking at the theater business and we do think that theaters will get open by this summer and maybe earlier and we're prime for that and at the same time.
We've had a number of experiences now and the <unk> space and what I would say is that we are seeing mulch.
Multiple.
And multiple opportunities and multiple options for distribution of each title. That's the way we green light of titles now we look at that we looked at the <unk> philosophy and you look at <unk>.
And other models theatrical the peapod.
And green light on that basis, and we're just seeing more opportunity than ever before so I don't think it's a I.
I don't think its a right sized film for that model I think it just has to do with.
Film what customers, you're trying to reach where are those customers what's available and the marketplace at the time we have.
We reorganized our.
Our.
Our overall structure internally to really bring all of those groups together and what I can tell you is that.
Our distribution and marketing teams are working and like never before.
Cross every model and.
And unlock and a ton of value.
Okay, great. Thank you.
Next question.
Our next question comes from the line of Jim Goss from Barrington Research. Your line is open. Please go ahead.
Okay. Thanks.
Thanks.
A couple of questions one regarding the.
The film slate and the.
You made an interest and plan about.
And sort of downward maybe perhaps being powder for a series.
Do you see more and more opportunity for increasing.
Interplay between the film and television production, especially since Starz has been.
Proving its <unk>.
Presence.
Absolutely look we you've heard us talk about Lions gate <unk> 60, a lot over the last couple of years we are.
We are very very integrated across this entire company and so whether it's when we're making a movie and television is by and are buying rights with television series. We have a regular group that meets and looks at each piece of content and terms of how we can maximize it across every every piece of our platform.
Thank John Wick and the Continental series is a great example of that but there is there are a number of properties 16 19 is of Great example of that where we're working together.
To make sure your line of modeling margin.
Blind spot and yes. So there is it's a it's sort of a regular part of our business and I think something that we do better.
And then any of anybody out there because we are so integrated and we work and a way that I think that well I think you find silos and other and other places I think this organization has really reaping the benefits of that level of integration and collaboration.
Okay, and then with regard to Starz.
<unk> been able to increase its profile of globally as well as domestically.
Can you talk about the consistency of the programming and.
And domestic markets versus the various international markets are you able to leverage a lot of other programming and do you have to have a lot of unique content and each one to make that work.
<unk>.
And.
And also you mentioned that Starz.
I think you had a lot of complementary positioning and relative to some of the other services does that do you feel that creates a better runway or are you starting to get starz as of first buy and Mark Casey as you.
Developed of better identity, and then you had originally.
Good question, So I think first and foremost of the international expansion and it was really predicated on leaning on the domestic business.
A foundational element and so the slate as we continue to increase the marketing and the spending on the on the domestic content. It has to work globally and so if you look at girlfriend experience is a perfect example.
And it had been of domestic show, we had moved the storylines of London and with a very international cash with a very international storyline and that should work all over the world.
The power of franchise is one of the best performing shows and the UK and in France, and in some markets and Latam and so as we look at putting shows on the domestic network. We're always looking at how does that play internationally, but we also know that some of those shows won't play internationally. So we are augmenting those shows with third party purchases from other partners domestically.
And I would say also I think the really unique industrial logic about putting the companies together is the ability to lean into the weather Joe just talked about the motion picture of IP to put content on the air in terms of series, whether it's buying spot and the continental leaning and with Kevin on some of the library or original is that we're producing out of Spain.
And out of India out of Latam to really supplement our global content and footprint and so I feel like the slate is really going to work around the world and augment and where we need to.
Okay. Thanks I appreciate it.
Great. Thanks, Jim.
And ladies and gentlemen, if you wish to ask a question on today's call you May press, one and then zero at this time.
Our next question comes from the line of Kotkin Morrow from RBC capital markets. Your line is open. Please go ahead.
Great. Thank you two if I could first in terms of the increased investment and content and marketing you expect across the core business and 2022 can you provide more color on where you see the greatest opportunity to lean into in terms of Starz television or and motion Pictures and then.
Could kind of help frame the magnitude of the increase you are thinking about I guess since fiscal 'twenty. One has been so disrupted with COVID-19. How do we think about the path ahead relative to maybe fiscal 19 or pre pandemic fiscal 2020 levels and then I have a follow up on Starz.
Sure. Thanks.
Absolutely I mean speaking of pre pandemic levels.
Or do you expect the content marketing spend as a percentage of revenues to be pretty much in line with.
And with what we incurred in fiscal 'twenty as an example.
Cross all of our businesses, we're finding motion picture television and Starz.
Great opportunities to drive revenue and secure our future.
With investments across all three of the business units.
No.
Overall, that's driving increased revenue so I would expect the overall impact on net profits to be modest.
Understood. Okay. That's very helpful. Thanks, and then if I could on Starz domestic OTT in the quarter and net adds of I think about 300000 seems to be a bit of of deceleration versus the earlier days of Covid. When you had of course, the very robust trends from the pull forward of demand I guess up until this.
Point, you've grown that subscriber base, so impressively going forward.
Is this quarter's pace, what you see as maybe the new normal range of Starz domestic OTT net adds that we should expect going forward.
And it's a <unk>.
Great question, when we had a really big quarter.
Last quarter, but that was I think driven more from the content that we had on the air We had two monster hits with P Valley and the Premier of Ghost and last quarter, and we saw great subscriber growth. There. If you go back and history and you look at every time, we put the power franchise and we can see these really spikes of big quarters. This quarter, we had some of our smaller shows.
And so you saw the growth slow a bit.
We expect fourth quarter globally to look much more of like second quarter in terms of the cadence of subscriber gains and then as Jon said in his prepared remarks were coming and <unk>.
Most robust and fully complete slate that we've ever had and the business with three power shows P Valley coming back high kind of coming back.
<unk> of new content that we're about to announce and so it's our best and most complete slate and so youll see acceleration and growth, but also we've schedule of this analogy can talk about in a minute reschedule it to help reduce churn and so as we fill out.
Two shows on the Air every week 52 weeks of year, we should continue to see churn come down to an all time low and accelerate the business even more on the front end and Aon and add anything on that and then we will be consistently on the air with shows for women and underrepresented audiences and next year and just to repeat what Jeff said, he and his three installments of the power.
<unk> franchise and also outlander happening next year in addition to its slate of.
Other new series that we really have and.
Great expectations for.
Thank you so much.
Okay.
And our next question comes from the line of Alexia <unk> from Jpmorgan. Your line is open. Please go ahead.
Alright, Thank you I wanted to find a restaurant here.
And there how are you guys doing.
And I wanted to follow up on your earlier comments about distribution of theatrical vs streaming and just dig inside of a little bit further.
Ultimately I guess when the pandemic is behind US I'm curious to how you see the distribution and sort of platform has how much has it changed in terms of the decision of how much kind of Q traditional box office versus streaming and and and.
And also if you have any color on how maybe the economics of the various outlets impact your business and that of a follow up.
Sure.
So.
What I would say to you is that much like Starz, we're moving we've leaned heavily into content.
We will have over 40 films across all of our various distribution platforms that will be released and into 'twenty, two and that should grow again into 'twenty three and that's a reflection of one.
Our expectation that the theatrical market is going to come back but that these opportunities that we're taking advantage of now these new windows and these new ways of distributing consumers consuming and a different way and platform appetite downstream. We think what we have is an environment, where there's actually added opportunity.
It's not one versus the other.
And so we.
We leaned into content and accordingly, we have structured the business accordingly, as it relates to the metrics certainly what we've seen and the last year is that.
When you are able to co op. Some of these windows you move quickly from theatrical.
And the people out of directly into <unk> and of <unk>.
And then move up some of your other windows, depending on the particular film what you do and you can also give.
Our marketing spending differently, we've been able to be more efficient and certain cases with our marketing spend we've been able to accelerate.
Cash turn.
And some of these new models and so it's actually improved our metrics.
On our films and better released and these alternative model we've also.
Along with that the team we call it segment to our home entertainment team because of this business.
And has actually.
Accelerated.
And they've increased the volume of content because they are seeing a ton of opportunity. So.
It's the metrics and some of these new models are really compelling.
And yet we still believe very strongly and the value of of theatrical release of kind of really set up of long term value.
For our titles and ultimately help drive library.
The only thing I would add to that Alexia I'd add one more thing, which is every single piece of content that we play with us of bespoke model.
A few people of mentioned early of this communication between all of our divisions that happens 10 times and every single day and so when there is a picture of Joe is looking at every one of our distribution channels, including Starz and saying how can we add value to what would be and a normal model here.
And.
As I say, it's of kind of a unique culture that we have at our company.
Thank you and then just a quick follow up on the share price stacks and pretty much doubled.
I was in recent weeks I think largely at least in March and tactical and what we're seeing and then of cross selling these value names and media I'm, just curious and how you view the share price now.
The drivers behind the moves that we might be missing outside of that and any color there.
Hey, Alexia.
It's certainly nice to see investors beginning to recognize our improving fundamentals.
And those fundamentals the rapidly increasing our asset base and building real value across all of our core businesses every day.
And we obviously appreciate the attention and the equity is starting now to garner.
Thank you.
And ladies and gentlemen, if you wish to ask a question on today's call you May press, one and then zero at this time.
There are no further questions and the question queue.
Great. Thank you Carolyn and I will just spoke of closing statement here I'd like everyone to please refer to the press release and events tab under the Investor Relations section of the company's website for a discussion of certain non-GAAP forward looking measures discussed and the call today.
Pretty much.
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