Q4 2020 Marcus & Millichap Inc Earnings Call
Thank you good afternoon, and welcome to Marcus and Millichap fourth quarter, and full year, 'twenty and 'twenty earnings Conference call.
With us today are president and Chief Executive Officer, Hassan <unk>, and Chief Financial Officer, Steve D. Janeiro.
Before I turn the call over to management. Please remember that our prepared remarks and responses to questions may contain forward looking statements.
Such words as May will expect believe estimate anticipate goal and variations of these words and similar expressions are intended to identify forward looking statements actual results can differ materially from those implied by such forward looking statements due to a variety of factors, including but not limited to COVID-19.
Pandemic general economic conditions, and commercial real estate market conditions, the company's ability to retain and attract transactional professionals the company's ability to retain its business philosophy and partnership culture and that competitive pressures.
The company's ability to integrate new agents and sustain its growth and.
And other factors discussed and the company's public filings, including its annual report on form 10-K to be filed with the Securities Exchange and Exchange Commission on or about March 1st 2021.
Although the company believes the expectations reflected in such forward looking statements are based upon reasonable assumptions. It can make no assurance that its expectations will be attained the company undertakes no obligation to update any forward looking statement, whether as a result of new information future events or otherwise.
In addition, certain financial information presented on this call represents non-GAAP financial measures. The company's earnings release, which was issued this afternoon and is available on the company's website represents reconciliation and the appropriate GAAP measures and explains why the company believes such non-GAAP measures are useful to investors.
Finally, this conference is being webcast. The webcast link is available on the Investor Relations section of our website at Www Dot Marcus Millichap Dot com along with a slide presentation. You may reference during the prepared remarks with that and it's my pleasure to turn the call over to Hassan <unk>.
Thank you everyone on behalf of the entire Marcus <unk> Millichap team. Good afternoon, and thank you for joining our fourth quarter and year end 2020 earnings call.
I would like to extend our well wishes for everyone's continued health and safety.
And I'm pleased to report and the most challenging year and recent memory with cap with a record fourth quarter with revenue on the $250 million and increase of 5% year over year and 58% from the third quarter.
Swift controllable cost reductions contributed to two and adjusted EBITDA of $37 million during the quarter, 14% above the prior year and 200% above the third quarter of 2020.
After the freezing of credit markets and the initial pandemic shock and the second quarter the market environment showed sequential improvement and the second half of the year, which certainly contributed to our strong quarter.
However, the central drivers of our record quarterly results with the actions we deployed to combat the market disruption starting in March of last year.
This includes 31 webcast, which drew and audience of nearly 140000 investors over 200 research publications and special reports and over 20 special internal training and best practice sharing session featuring 50 of our most experienced professionals.
These measures reinforce the company's position as a leading source of actionable and market intelligence and advisory services.
Most importantly, the results reflect Marcus and Millichap signature ability to help investors rapidly strategize and solve problems and execute on unique opportunities and move capital across markets and product types.
Having the largest investment brokerage sales force and the industry empowered with real time research and NMC six financing specialists.
Brings efficiency and liquidity to our clients.
This has been the company's defining value proposition throw and our 50 year history, which we're celebrating this year.
Let me illustrate my point with numbers.
And then my total fourth quarter transactions grew by just over 6% year over year coming in at nearly 3000 and closings, including 642 financings with 383 separate lenders.
Our financing specialists, not only bring capital markets expertise to our sales force and clients, but they also have access to the most expansive network of active lenders targeted for each property and situation.
The power of this combination was proven through our client results last year.
Nearly 45% of best and final buyers on our transactions and the fourth quarter came from out of state illustrating the value of our market coverage and investor relationships.
These numbers are especially noteworthy given that our team has been operating remotely and is still a disrupted marketplace.
And this further highlights the importance of our technological investments over the past few years and specific tools that were implemented immediately and response to the pandemic.
Our team came together and a cohesive manner to live up to our promise of adding value for clients and protecting the firm's strong financial position at the same time during a challenging and unusual period.
Last year was also on opportunity for us to live up to our founding principle of providing individualized management support for each agent loan on originator and staff members, which we take great pride.
We achieved solid results in all business segments during the quarter with the biggest contributions coming from and our financing division and private client single tenant net lease sales and larger apartment sales, including our IPA division manufactured housing as well as office and industrial sales.
These trends reinforce the strength of our private client foundation, and the benefits of enhancing and growing MCC over the past few years, and our strategy to diversify and expand coverage by property type and market.
Momentum grew significantly late in the quarter as many previously delayed or cancelled deals and listings were revised and investors rushed to close deals by year end.
Key factors behind the heightened investor motivation to transact and range from sector specific improvement and price discovery to optimism from good news on vaccine development.
And record low interest rates of course.
And in many cases the acceleration of closing deals ahead of the change in administration was also a factor based on our and.
And formal surveys.
Echoed concerns about possible tax law changes and the future.
For 2020 total revenue was $717 million down just 11% from 2019, while adjusted EBITDA was 76 million or 34, 5% lower our earnings were impacted by the unexpected revenue decline and increased costs related to strategic investments and technology.
<unk> and talent.
The company completed four acquisitions during the year, bringing the total to nine transactions since 2018.
And we were highly successful and attracting experienced professionals throughout the year.
Our increased visibility and strength during the market dislocation, where pivotal and making this happen.
While absorbing the costs associated with these strategic moves and a declining market or a short term challenge. We strongly believe they will create significant value and the long run.
Notwithstanding these challenges last year.
And then my stayed the course on long term investments, while modestly growing our cash position at the same time.
Financing fees rose, 43% on the fourth quarter year over year, and six 4% for all of 2020, setting a new record.
These results reflect the expertise of our existing MCC team their collaboration with our investment sales force as well as the successful integration of the many accomplished individuals and companies added to the MCC platform over the past few years.
On the head count from last year, we added 76 total professionals to our sales force for a growth rate of nearly 4%.
This was accomplished with heavy reliance on virtual recruiting and video based career fairs as the main vehicles for attracting and assessing new candidates.
And that number was impacted by elevated dropout rates of newer professionals and a challenging market environment.
And accounts for our shift to experienced financing professionals on the MCC from.
Net hiring numbers and we'll continue to reflect these factors for the foreseeable future. However, we are encouraged by the amount of interest.
Seeing from several experienced professionals and groups that were currently in discussions with.
Okay.
We managed to keep transaction and volume declines for the year to 8% and 12, 7% respectively.
In contrast, real capital analytics reported year over year transaction decline of an estimated 30% for the market highlighting our ability to outperform by a wide margin during this unusual disruption.
Looking forward, we are excited to build on last year's platform improvements and opportunities for long term productivity gains well beyond recovery from the pandemic.
And new suite of technology upgrades and advancements are planned for this year as well as continued emphasis on internal training sharing of best practices and adapting our elevated investor outreach initiatives to the evolving market dynamics.
Our persistent focus on strategic acquisitions, and attracting experienced talent continues unabated to augment the company's traditional organic growth model.
From a market perspective, we expect the continuation of the recovery that began in the third quarter of last year. However, the market recovery pattern is likely to be somewhat choppy with a slower sequential improvement and the first quarter and building momentum as the year progresses.
The delay last year and the follow up round of stimulus, which was finally approved and December created a pause and a macroeconomic recovery.
Additional stimulus already underway and prospects of yet another round of assistance combined with still low interest rates should begin to recharge the recovery over the next several months.
For Us a short term challenge is replenishing and pipelines and listing inventory and the aftermath of a record fourth quarter and Q1 contrast to our record pre Covid first quarter last year as.
As we have experienced before and during times of business acceleration. Our sales force is focused on transaction closings reduces bandwidth for new business development rebuilding inventory and pipelines. After a record quarter is it temporary and natural part of the ebb and flow of our business and highlights the importance.
Viewing our results over the long term.
To this point, we believe our current efforts to replenish our pipeline of deals under contract and grown and listings and combined with a positive economic factors I outlined earlier bode well for the second half of the year and and overall strong outlook for 2021.
In addition, the eventual release of pent up demand and unprecedented liquidity injected and the system should also be noted as likely key factors that support this outlook.
To put this in perspective consumer savings increased by an estimated two and a half a trillion dollars during the pandemic due to consumers and ability to engage and normal activities.
Total federal stimulus to date, excluding any additional measures is over 40% of GDP compared to just 6% and our reaction to the 2008 2009 financial crisis.
We added a couple of slides to our earnings presentation to help illustrate these trends.
There is no shortage of capital chasing real estate and we are seeing multiple examples of pre COVID-19 pricing and certain property segments and markets.
However, the bid ask spread and unrealistic expectations are still limiting further improvement and sales velocity and favorite asset classes, such as apartments and single tenant industrial and self storage.
The office sector is showing a wide range of buyer seller expectation gaps as they post pandemic picture and the long term impact of virtual execution across countless industries is still unclear.
The hardest hit sectors, including hotels older shopping centers and seniors housing still need time for repricing addressing loan performance and in many cases reuse strategies to emerge.
MMA is poised to facilitate solutions and all of these sectors as well as the migration of capital to suburbs and secondary and tertiary metros, which are sustainable trends boosted by the pandemic.
As we take on the next phase of growth opportunity for Ni, our experienced management team and proven ability to create value for investors will be leveraged internally and externally.
We gained invaluable experience and executed platform improvements last year that will deliver value for years to come and we're.
We're here to see to it that this materializes as fast as possible.
Our balance sheet remains a source of strength, allowing us to pursue strategic investments and tools technology and complementary businesses.
In closing, we're proud of our team's performance and such a volatile year and we look forward to continuing to deliver best in class services to our clients and a return to earnings growth for our shareholders and 2021 and beyond.
And Steve Vision Arrow, and I will now discuss our financial results in further detail Steve.
Thanks, Tom we're pleased with our financial and operating performance in the fourth quarter in many regards our sequential results highlight the significant progress we have made since the start of the pandemic and the second quarter last year.
Total revenues and the fourth quarter rose five 2% year over year to a record $250 million and improved 58% on a sequential quarter basis.
This was driven by the continued rebound and transaction activity across all business lines as financing was more readily available interest rates remained at historically low levels and key investor motivations created more urgency to transact as Assam outlined.
Total revenues for the full year declined 11% year over year to $717 million as a result of the market disruption and the second and third quarters.
And retrospect, our full year results were significantly better than expected back in early summer, which is a testament to our clients' trust and their commitment and hard work of all our agents loan originators and employees.
Revenue from brokerage commissions for the fourth quarter accounted for approximately 87% of our total revenues and were up modestly year over year and up 54% on a sequential quarter basis to $217 million.
Sequential strength is indicative of the continued recovery from the effects of the pandemic as well as the seasonal nature of our business, which typically sees an increase and the fourth quarter.
The increase also reflects resurrection of previously canceled or delayed deals a significant catch up factor from many investors who had gone to the sidelines and Q2 and Q3 of last year and the macro factors outlined earlier.
Our private client business accounted for 64% of our real estate brokerage revenue for the quarter or $139 million a.
A decline of 2% year over year, but an increase of nearly 42% on a sequential quarter basis.
Brokerage revenue from our middle market and larger transactions for the fourth quarter was up 6% year over year and surged, 92% on a sequential quarter basis.
For the year brokerage commissions accounted for 88% of our total revenues were $633 million.
Private client revenues accounted for approximately 67% of our real estate brokerage revenues with the balance coming from our middle and larger markets transactions.
And the contribution from the private client market is consistent with historical patterns underscoring the importance of this segment to our overall performance.
Moving on to MMC financing fees, and the fourth quarter rose, 43% year over year, and 72% sequentially as investors took advantage of record low rates with more lenders active and the market.
The growth and the quarter was primarily driven by a 28, 4% increase and average transaction size combined with a 10, 3% increase and the number of transactions.
Purchase financing represented 48% of our production and the quarter as compared to 40% and the third quarter.
Further highlighting incremental improvement and the investment sales market and progress on the integration of MCC with our investment sales force.
For the full year financing fees increased six 4% to $71 million, reflecting a major comeback from the frozen credit markets during much of Q2 and the benefit of our ongoing efforts to improve MMC productivity as well as contributions from acquired companies.
Other revenues comprised primarily of consulting and advisory fees, along with referral fees from other real estate brokers were $6 2 million for the quarter up 75% from a year ago and up nearly threefold from the third quarter.
For the year other revenues rose 22, 5% to $13 $2 million as.
As a reminder, much of the revenue and this category is generated from our brokerage clients, who utilize our team's expertise as advisors.
During the fourth quarter, we generated record total sales volume of $15 6 billion.
Comprising 2978 transactions representing year on year growth of 5% and 6% respectively.
Sequentially sales volume and the number of transactions increased 72% and 39% respectively from the third quarter.
And the outsized sequential growth and sales volume was the result of the increase and our larger transaction business during the fourth quarter.
We continue to focus on attracting retaining and improving the productivity of investment sales and financing professionals for the year, we increased the combined team by three 8% to 2097.
While this is below our stated target it does not reflect a slowdown and our overall hiring efforts in fact, we continue to target new and experienced talent.
Total operating expenses for the quarter were $220 million up four 4% year over year, primarily due to an increase in cost of services that accompanies higher year over year revenues.
On a sequential quarter basis, we saw a 45% increase and total operating expenses, primarily due to a 61% increase and cost of services driven by the surge and transactions in the fourth quarter.
For the year total operating expenses were lower by six 6%, primarily reflecting lower cost of services in line with total revenues for the year.
Cost of services was $161 million for the quarter or <unk> 64, 2% of total revenues 100 basis points lower than the fourth quarter of 2019, and 130 basis points above the third quarter of 2020.
The decrease as a percentage of revenue compared to the prior year reflects lower commission rates in line with lower annual production levels and broader contribution from less experienced professionals.
The increase sequentially reflects seasonal escalation and commission split based on cumulative annual production for.
For the full year cost of services was $448 million.
And were 62, 5% of total revenues and increased 60 basis points year over year due to a higher mix of revenue close by senior agents and the first half of the year.
SG&A and the fourth quarter increased five 9% year over year, and 13, 5% on a sequential quarter basis, primarily due to higher performance based incentive compensation and marketing and other support costs for our sales force.
It also includes transaction and operating costs related to the acquisition of two businesses during the quarter.
These increases were largely tied to our strong revenue growth and the fourth quarter and were partially offset by reductions in controllable expenses.
We continue to contain costs in balance with sufficiently supporting our platform.
For the full year SG&A Rose just 69 basis points, despite absorbing transaction related and operating costs of four businesses, we acquired during the year, which demonstrates the effectiveness of our cost containment efforts.
As expected these acquisitions are going through and enculturation and revenue ramp up period. However, every one of the businesses has already added value through referrals and client synergies.
We are confident they will be highly valuable and both financial and nonfinancial ways.
For the quarter, we generated 59 earnings per diluted share as compared to <unk> 52 last year.
For the year earnings per diluted share was $1 eight as compared to $1 95, a year ago, reflecting the significant disruption and that the pandemic had on our business and continued long term investments on our part.
Our tax rate for the quarter was 26, 8% as compared to 31, 3% and the fourth quarter of last year, primarily due to a shift and the blended state tax rate to lower tax jurisdictions for.
For the year, our tax rate was 27, 8% as compared to 28, 4% in 2019.
Adjusted EBITDA for the quarter improved to $37 million or 14, 8% of revenue and increase of 13, 6% over the fourth quarter of 2019 and more than triple the $12 million, we delivered in the third quarter.
For the full year adjusted EBITDA declined 34, 5% year over year.
Moving on to the balance sheet, we finished the year and a strong cash position with approximately $449 million of cash cash equivalents and marketable securities.
This equated to $11 30 per diluted share.
Our cash position and stellar balance sheet provides stability in times of extreme market dislocation and at the same time gives us the flexibility to pursue acquisitions like before we made in 2020, including mission capital and LMI capital, which both closed and the fourth quarter.
As we have shared previously selective and and accretive acquisitions, our primary focus for capital allocation.
Given our strong financial and market presence, we are well positioned to scale our acquisitions.
We are in active dialogue with potential targets and remains sensitive to underwriting economics and valuations given the market environment.
Turning now to the outlook for 2021.
Looking back at last year, the overall market saw a gradual improvement from the lows and the second quarter, where transactions were down approximately 55% year over year. According to third party sources Act.
Activity improved in the third and fourth quarters with transactions down an estimated 40% and 30% respectively.
And each of those quarters, we significantly outperformed the overall market.
Looking forward to Q1, we believe the overall market will continue its recovery, but at a lower pace given is still hampered economic and transactional environment and a tough comparison to Q1 of 2020 during which the market environment was robust pre COVID-19 and MSI at a record first quarter.
Our record performance and the fourth quarter and the corresponding depletion of inventory and pipeline, which will take time to rebuild will be somewhat of an added short term challenge for us.
Positive vaccine news and additional stimulus funding should lead to good news for the economy and bodes well for the second half of the year.
Cost of services was exceptionally high during the first half of 2020 due to the initial challenges brought on by the pandemic. However, we believe that cost of services and the first quarter of 2021 will be impacted less and be closer to long term historical trends and the range of 59% to 60%.
The quarterly cadence of SG&A throughout 2021 should be similar to the fourth quarter of 2020. The exception is the first quarter, where expenses will be approximately 5% to 7% lower than the fourth quarter due to the postponement of key events due to the pandemic.
Lastly, we expect our tax rate to be approximately 29% to 31%.
With that we can now open up the call for Q&A operator.
At this time, we'll be conducting with <unk>.
Question and answer session.
I would like to ask a question. Please press star one on your telephone keypad, a confirmation from will indicate the line is and the question queue. You May Press Star two from move your question from the queue for participants using speaker equipment, and maybe market share for you to pick up your handset before pressing the star keen on moment.
While we poll for questions.
Our first question comes from the line of Blaine Heck with Wells Fargo and they proceed with your question.
Great. Thanks, good afternoon.
And I'm interested in the pretty significant increase you guys saw on the average size of deals bolt on the brokerage and finance sides of the business.
Is that just reflective of maybe some of the segments of the market being more active than others. At this point, just seeing more volume and and kind of that mid and large sized deal segment and then in the private client market segment or is it more indicative of kind of a shift towards larger deals for MMR and future.
Hi, Blaine its Tom I'll take that one and.
It reflects the catch up that we observe in the fourth quarter from larger clients, especially and a lot of our institutional clients that our IPA Division and works with who had gone on the sideline and the second and third quarters and came back into the market and much more aggressively and the fourth quarter. So there was certainly a.
And the pandemic related 22 related factor and that having said that as you know we are hiring more experienced brokers, we've definitely shifted toward attracting more experienced loan originators and with the additional experience that we are.
Bring it on to the firm those individuals tend to do larger deals. So there is a.
Very gradual structural moving towards larger deals as our sales force matures and.
And outside talent joins the company.
As well as this a cyclical factor we saw last year because of the pandemic.
Okay, Great that's helpful.
And then can you just talk about the opportunity set you guys see in front of view with respect to acquisitions I mean, clearly you guys got a large one pass to the finish line this quarter with mission capital and then also tacked on LMI does that kind of gives you enough to digest for now or are you continuing to pursue and other acquisitions and if so you know.
Any color you guys can give on kind of the size of potential acquisitions or are they going to be similar to Michigan and large or kind of smaller like the other ones you've done over the past few years.
Sure Brian first of all let me give you a follow on thought on your first question you and I have talked about this before but I just want to reiterate it and that the shift toward attracting and acquiring more experienced talent and doing larger deals and does not overshadowing, our private client dominance the importance of that business.
And our commitment to that business and the growth opportunity left and that business is significant. So we're not really shifting strategies are doing one in favor of the other we're just pursuing all of our growth opportunities, including in our core private client business, which has ample runway ahead of us and just about every <unk>.
<unk>. So I just wanted to emphasize that point and thats related to acquisitions and certainly.
The integration and successful enculturation of the companies. We have acquired is a very high priority and it takes time and and bandwidth as you can imagine, but just like my previous comment about and dual strategy.
That process doesn't keep us out of the market from sourcing and approaching and targeting additional targets we're actively doing both.
We've shown that we can target very quality affirms and groups bring them on board and help them improve their game, while adding to that on my platform, we're going to build on that and we're actively doing that the advantage that we have is and management team that is out there and the field. They are very familiar with the basket the basket.
And their local markets and where they have capacity deficits or holes that we can fill through these acquisition, they're the best source of that ground up.
Ras route kind of targeting and Theyre doing a great job of pointing out really good acquisition targets. We're actively talking to a number of them and of course, we are now set up better as a company you haven't done a number of deals having brought in M&A experienced executives Steve of course right here on the call with MAGE <unk>.
<unk>, who has an extensive M&A experience and capital markets experience now heading up our MCC Division, which is a big focus for acquisition and Mark Hotel and ahead.
And of our legal and all of our legal activities, who comes to us with extensive M&A experience from outside of real estate. This talent and this intellectual capital is now on board part of the strategy behind that was to be able to scale and improve our efficiencies and the way that we acquire additional firms into the future having said.
And that we're not targeting large firms instead of small firms are small firms instead of large firms.
And out there looking at strategic fit of all sizes that will benefit and a LIFO to long term and.
So youre going to see us be active and.
And the full spectrum of size, but really driven by what our needs are which specialty we need help and where and how we can grow on MCC much faster of course and low.
The pipeline is active and that's all I can say about that in terms of the <unk>.
Imminent deals around the corner. It just takes time as you know and we're in discussions with many players.
Great. That's very helpful. That's it from me a nice quarter.
Thanks, a lot line.
As a reminder, if you would like to ask a question. Please press star one on your telephone keypad and malware.
And I always call for questions.
Our next question comes from the line of Stephen Sheldon with William Blair. You May proceed with your question.
Hey, Thanks for taking my questions on the outperformance relative to industry trends the last few quarters.
And the market share gains I guess is there a way to frame what you've talked a lot about some of the internal initiatives.
What has been more impactful than others and really helps you drive those market share gains and how has that influenced what you plan to do if we think about 2021 and 2022.
Hi, Steve.
Thanks for your question.
The interesting thing that we've observed is the success, we've had and diversifying our platform over the past few years. The fact that we are now a bigger participant and larger transactions.
Through our IPA Division certainly is noteworthy and answering your question. The fact that we have successfully built and are now exporting the best practices of a number of industrial teams around major metros that have had great success.
Part of the answer to your question.
We have done a better job of attracting office specialists that have joined the firm and the last 18 months that are bringing that.
Added expertise and bandwidth to the firm so it's a gradual process, but you can kind of feel their contribution.
Help us and the kind of results that you saw last year and now face and the markets and of course on the apartment side on the single tenant net lease side as it relates to retail or.
Historical dominance plays a very important role and especially in times of market dislocation not only as a.
And somewhat of a safety net because theres always.
Steady level of training and that private client apartment and single tenant retail and small <unk>.
<unk> center or shopping center and retail because of death divorce partnership break ups and all of that personal drivers that dominate the private client world, but it also helps us as the market recovers because we have such a.
Strong brand and such strong presence.
And we're able to capitalize that and take share. So it's a combination of all of those factors.
Got it that's helpful. And then I guess, just given what youre seeing and the business right now and the expectations for trends to pick up in.
And the second half of 2021.
How are you thinking about your recruiting efforts are you going to focus even more than you maybe have historically on trying to grow producer head count above the normal range is and you've discussed and you've kind of ahead of that expected improvement demand I guess, how are you thinking about adding here.
Well, we've been very excited and focused on.
Attracting and and adding experienced agents and teams and loan originators for the past couple of years.
That goes on unabated.
We've never slowed it down we have no intention of slowing it down and we've made some progress there is more progress to be made and I do think.
And this strategy is helping us and will pay off even more.
When the eventual relief of pent up demand both on the economic side, and then drill and investment side really materializes, we haven't really seen that yet.
And we do expect that to start to show up and the second half of the year, assuming the vaccine and successful and so on.
So the strategy isn't really changing and it's been a high priority, it's going to stay a high priority, but I think what's important to message is that our visibility has increased the fact that and we're a very stable and focused platform during the worst of the pandemic last year and.
And.
And we're proactive and rolling out new technology Rolling out the new website and being out there in front of and a record number of clients really helped solidify the advantage of Marcus and Millichap two a lot of folks we've been talking with who werent quite convinced now.
And that they wanted to come on board, yet who pulled the trigger because they saw were made up and I really think that tailwind is going to help us not just in 2021, but in general and we're certainly out there capitalizing on it but let me make sure I also emphasized the importance of of the productivity retention and the care of our existing.
Listing sales force and again, we're a story of multiple simultaneous strategy focusing on hiring talent from outside the company does not discount or diminish our focus on our current talent. We've had a lot on oil people who've been here for a long time and a lot of the newer people that are struggling who were obligated to support and help and.
So I just want to make sure that the emphasis isn't only placed on the external growth factors, but also the retention and the caring and support and productivity of our existing sales force and they're really both important strategies.
Makes sense, thanks for taking my questions and congrats on the results.
Thanks, Steve.
Ladies and gentlemen, we have reached the end of today's question and answer session I would like to turn this call back over to Mr. Hassan <unk> for closing remarks.
Thank you operator, and thank you everyone for joining our call and.
For the questions that came through.
We're excited about 2021 and look forward to having you on our next earnings call. Thanks, a lot this adjourns our session.
Thank you for joining US today. This concludes today's conference you may disconnect your lines at this time.
Yes.
[music].