Q4 2020 ATN International Inc Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the a T N International fourth quarter earnings from Duane of 'twenty Conference call and webcast. At this time all participants are in a listen only mode of notice.
Speaker's presentation, there will be a question and answer session. So I asked the question you will need to press the star one on your telephone and if you need any assistance during the Gulf Press Star Zero I would now like to hand, the conference back of your Speaker today, Mr. Justin Benincasa, Chief Financial Officer. Thank you even go ahead Sir.
Thank you operator, good morning, everyone and thank you for joining us on our call to review, our fourth quarter and full year 2020 results with me here is Michael prior Atms, Chief Executive Officer as usual during the call I'll cover the relevant financial information and Michael will provide an update on the business and outlook.
I turn the call over to Michael for his comments.
I'd like to point out that this call and our press release contain forward looking statements concerning our current expectations objectives and underlying assumptions regarding our future operating.
Results and are subject to risks and uncertainties that could cause actual results to differ materially from those described also in an effort to provide useful information to investors of our comments today include non-GAAP financial measures.
For details on these measures and reconciliation reconciliations to comparable GAAP measures and for further information regarding the factors that may affect our future operating results.
I'd refer you to our earnings release on our website at 18, I talked com or to the 8-K filing provided to the SEC and with that I'll turn the call D of Michael.
Thank you Justin good morning, all.
As I typically do at this time of the year.
I will go through the key elements of the most recent quarter as well as of the full year.
We also offer.
<unk> outlook commentary than usual to provide additional insight into our plans, particularly as they relate to the business shifts within our U S Telecom segment.
To summarize Atms telecom businesses delivered good results in 2020, demonstrating significant resilience in a year in which worldwide businesses faced unprecedented challenges.
Our core communications operations produced strong EBITDA results and steady cash flow from operations.
This could not have been accomplished without the hard work and dedication of our employees and the consistent past investments that we have made in our communications infrastructure assets.
There are areas that we still need to address particularly in our U S telecom business, where we need to adapt and work to optimize the changing environment and changing customer needs and to pursue new opportunities.
And in 2020, we demonstrated the discipline to exit businesses like Indian renewable energy that while likely right Directionally as an investment thesis did not turn out to be well suited for our capabilities and detention.
On the other side of the Ledger of this was also the year in which we showed our ability to act quickly to take advantage of the investment opportunities to increase future value.
Such was the case with our creative work to reach a definitive agreement to acquire of Alaska Communications.
This is the type of business and business environment that we know well and we believe we are well placed to partner with the existing team and our co investors to drive greater value.
More on the subjects to come and I would also encourage you to take note of the added detail in our earnings release, and Justin's commentary, which includes the many investments we have made on core infrastructure and the significant capital deployed through equity buybacks at both the subsidiary and parent levels.
Now, let me turn to our individual operating segments, starting with international Telecom.
In the face of continued difficult pandemic related economic conditions, the fourth quarter for the segment showed the same consistent strong and steady performance that we have seen throughout the year.
With good subscriber growth and metrics and very positive EBITDA increases.
As our teams managed very well despite the downturn in certain revenue categories, such as enterprise and wholesale.
Fixed data subscribers increased by a little more than 10% year on year and churn in that base remained quite low.
This is our core service offering in our market. So we were quite happy with this result, which reflects both increased penetration of our higher speed offerings and strong market demand overall.
Mobile subscribers increased by roughly 7% year on year and this was the second the second consecutive quarter of good growth.
Some of that May represent a partial recovery from the early weeks of the pandemic, but our analysis indicates we are picking up share as well, which is of credit to the hard work and improved go to market strategy of our sales and leadership teams.
Video subscribers continue to decline, but voice subscribers remained steady even up slightly.
Looking ahead for this segment, we are continuing to invest in advanced services and clean, including the higher speed fixed and mobile data and the enterprise solutions.
We have some challenges with regulatory changes in several markets, including the potential reduction of subsidies in the Virgin Islands, and the introduction of new licenses in Guyana, but overall, we expect another year of solid EBITDA production for the segment.
In addition, we are hopeful there will be an economic recovery in the tourist dependent island markets as the year moves along and we expect to Guyana as the economy to experience significant growth.
In the U S Telecom EBITDA here declined in the fourth quarter and we expect that to remain the trend as we look ahead to 2021 performance.
We are in the midst of of major transition of this business from one driven by roaming based wholesale revenue to a revenue mix consisting of backhaul tower rentals and other carrier services alongside what we expect to be a growing contribution from enterprise and retail.
Toward that end in addition to investments in fiber high capacity wireless solutions towers.
And rural wireless broadband equipment, which Justin will cover Paul in a bit more detail.
We also are committing significant dollars to product development, and expanding our sales and marketing activities and private networks and elsewhere.
We've had some wins in private networks in 2020, including contracts to provide the network platform for two municipalities.
But similar to many early stage businesses. The pandemic took a toll on our business development efforts, thus actual revenue buildout and contract activity was relatively low in the fourth quarter and for the year.
However, we are allocating significant financial resources to accelerate the pace of that activity in 2021 with the particular focus on certain segments, such as municipal networks and state and local education.
Yeah.
We also of pursuing strategic partnerships to expand our product reach and the combined offerings with other participants in this nascent market.
Some of the of S investments in this segment of our relatively low risk such as building out critical network infrastructure under customer contracts or in areas of unmet demand.
Others are higher risk such as the investments in private network solutions.
But the market opportunity is commensurate the large.
We will continue to closely monitor progress and will calibrate our investments to align with market and business prospects.
So the net of all of this is that we expect much lower EBITDA for this segment in 2021 compared to 2020 levels. However, as you might gather we believe that the potential rewards.
Or worth the level of investment and.
And we will provide updates as things develop.
And as of last note on this segment are relevant to the segment is that the spending we had on our <unk> licenses across the country.
The largest portion of that spending was to provide the resources to pursue rural broadband opportunities, particularly in connection with the recently completed rural digital opportunities fund auction.
We expect to retain roughly $20 million in awarded subsidies and related build obligations.
From that reverse auction and while we had hopes of a much higher award we still believe there may be attractive opportunities to utilize the CVR S spectrum to augment local broadband and private network offerings.
Further there are still some questions about the art of process and the follow on funding, which we are following carefully.
Moving to renewable energy, which will be the last time I touch on this.
As noted we closed the sale of two thirds of our equity and vibrant energy.
While structured as a sale and we indeed received initial cash proceeds of around $20 million. We view. This mainly is bringing in a majority partner for this business.
We've had some good sales and development of men momentum there recently some of which is in concert with our new partner, which is blue leaf a part of Macquarie as Green investment group.
So we think the team in the business of good potential from here.
We are no longer driving but we will be along for the ride.
Given the distance business sector and relative size to the rest of our operations. We think that this is a better position for us.
Lastly, I'd like to publicly thank the leadership team at vibrant from managing through some tough developments in the Indian renewables market and putting the business in a position to grow.
Moving to the Alaska Communications transaction. This was one of our major accomplishments in the fourth quarter.
The work leading up to our offer to acquire the Alaska Communications, which was accepted in the final hours of 2020 and officially announced on January 4th.
Ats as an excellent fit for us and we look forward to entering this market with the provider that has a great reputation as a customer centric organization, serving business and carrier customers as well as residential households, we have identified opportunities for revenue synergies coming from combining our capabilities.
Infrastructure expansion and bringing next generation managed services and private networks to market.
ACS shareholders are set to vote on the transaction on March 12.
And assuming they approve the transaction the next step will be to gain regulatory approvals.
I should note that the waiting period for Hart, Scott Rodino approval has expired, but there are additional federal and local approvals.
In addition to the operating and financial benefits of this combination there are two key takeaways that I think are important.
One of this transaction demonstrates the new Atms ability to act quickly and Opportunistically to complete a major strategic transaction.
Which speaks to both our strong financial position and our flat organizational structure.
And to our operating platform track record and expertise make ATM of perfect partner for our financial investors such as freedom to recapitalize and this case seeking to invest in communications infrastructure assets and businesses.
We believe there will be more opportunities like this and with the projected post transaction net leverage ratio of less than two times, we of the financial flexibility to pursue them.
So to sum up ATM demonstrated significant resilience in 2020 with strong positive performance from our communications services businesses.
'twenty, one will be a year of additional spending in compressed margins in our domestic telecom business.
But we are investing in areas that should provide growth and better economics in the medium term.
We are looking ahead to further improvements in our international Telecom business in 2021 and to the completion of the Alaska Communications transaction in the second half of the year.
I'll turn it back to you of Joseph Okay. Thank you Michael.
For the fourth quarter total consolidated reported revenues were $123 7 million up 10% from last year's $112 1 million <unk>.
Adjusting for construction revenue related to the first net build revenue was up slightly from last year adjusted EBITDA for the quarter was $30 5 million an increase of 7% over 2019 of adjusted EBITDA of $28 5 million.
Looking at the segments and starting with international Telecom fourth quarter fourth quarter revenues were up slightly to $83 8 million from last year and adjusted EBIT increased 6% to 28 to $28 1 million.
The pandemic caused us to quickly pivot to accelerate implementation of new digital solutions and processes within our businesses, including the rollout of electric electronic bill payment and other automated services across our markets. Thus, we're able to quickly gain operating efficiencies in many of our international markets during the year.
<unk>.
This quarters net income also reflects an increase of our ownership in one communications, our Bermuda and Cayman Islands company to approximately 70% of from 51% following the original transaction.
Capital expenditures in the segment totaled 38 point.
$9 million for the full year coming in lower than originally expected of some of our planned capital spending was delayed or slow due to the pandemic.
With adjusted EBITDA for the year totaling $114 3 million and reduced capital expenditures, we saw significant free cash flow generation. In this segment in 2020, we expect most of the 2020 delayed capital spending to occur in 2021 and segment capital expenditures to be in the range of 45.
The $55 million per the year.
Okay.
In the U S Telecom segment fourth quarter revenues totaled $38 7 million up from 27 up from $27 8 million a year ago, mostly due to the $10 5 million of first net construction revenue I noted earlier.
Currently we expect to complete an additional 50% of the $85 million construction project. This year from first net.
Adjusting adjusted EBITDA for the segment was $7 2 million down from $8 3 million in the fourth quarter of 2019.
This included net additional operating costs of $1 5 million for the quarter and approximately $6 million for the year associated with our early stage private network business.
Looking into 2021, we expect full year investment spending on private network to increase the roughly $12 million as we expand the product development and sales effort that Michael noted earlier.
In addition, as first net sites come online and revenue shifts from wholesale roaming to maintenance and rental income there'll be increased operating expenses associated with the new sites.
This increase in operating cost will be somewhat mitigated by lower net work capital costs is the wholesale roaming traffic comes off the network.
We were also pleased to be awarded 18 million under the cares Act to build an additional 85 wireless broadband sites in partnership with the Navajo tribal utility authority.
And we completed most of this build late in the fourth quarter.
These 85 sites should be a good addition to our rural broadband going forward.
As we look to add more subscribers, but together with the first net site costs. These increased network footprint will negatively impact EBIT of next year with increased network operating costs of $10 million to $12 million.
Yes.
We reported $30 million of capital expenditures for this for.
For the year in this segment of substantial majority of the spend was on network infrastructure expansion, primarily wireless base station, serving fixed broadband and retail customers fiber and other backhaul in towers over $15 million of that was reimbursed mostly through the cares Act.
We expect to increase our capital expenditures in 2021 for the segment of $40 million to $50 million, which includes additional investments of approximately $25 million to $30 million for tower and backhaul construction.
Okay.
As noted in the release, we completed the sale of 67% of our equity interest in vibrant energy business in the first quarter of 2021.
With consideration of approximately $21 million and the potential earn out on an additional $6 3 million occur.
Accordingly, we showed the assets and liabilities as held for sale and will no longer consolidate the operations going forward.
For the quarter, we reported total net loss of $25 million of one $1 29 per share inclusive of the $21 $5 million loss on the sale of fiber and energy and $1 5 million in related transaction costs.
The effective tax rate for the year reflects a mix of our country operations and benefits from the cares Act offset by no tax benefit from the vibrant loss.
We expect the tax rate to revert more to normalized levels in 2021 of.
Also included in the operating results for the quarter was $1 3 million of noncash stock based compensation expense.
Yeah.
Looking at the balance sheet and cash flows we ended the quarter with total cash and short term investments of $104 million in total debt outstanding of $72 8 million as we accelerated debt payments in the international segment by $10 million in the fourth quarter.
In addition to $11 million of shareholder dividends. The company used approximately $37 million to increase our majority ownership and subsidiaries and to buy back ATM stock.
As Michael mentioned, we expect our net leverage ratio to be under two times. After the completion of the Alaska Communications acquisition, which gives us substantial flexibility to invest in additional organic and inorganic growth initiatives.
And with that operator, we'd like to open the call up for questions.
Thank you and as a reminder, the ask a question you will need the press star one on your telephone again, the restart on the number one task of question and please standby of well look the 0.1 of the compile the coupon of animals. There. Thank you.
Our first question is from the line of Mr. Ric Prentiss from Raymond James Your line is now open.
Thanks, Good morning, guys.
Okay.
Okay.
One of the start with the with the Alaska.
The purchase price.
As the.
Obviously, the cash for stock and assume the debt, but how do we think about the how the funding actually is going to work between yourself and <unk>.
The.
The funding is basically roughly one half of each on the equity equity capital needed.
And if I'm right was that like the $193 million that you're paying in cash to take out the equity's portion.
It should be a little less than that because we will probably bring the debt level up.
Well, that's all I was wondering so I'm trying to think so like the debt level, maybe goes up so I'm just trying to of what the the cash out the door for you guys would be and then how much of it gets contributed to the complicated with the partnership I guess.
I would plan the cash out the door for ATM and the <unk>.
70% of $75 million range.
Okay.
And.
How about how should we think about Alaska had given guidance.
For revenues and EBITDA, you said you'd think of it could be some revenue synergies.
When you put the companies together how about also on the Capex side, how much capex.
We will be spent with the Alaska coming onboard and you mentioned it could be private networks and the other stuff.
Sure.
I think it will be case, but we don't have specifics on that now Rick.
We will be planning and.
We're ongoing planning on that we're looking at that.
They are focused on completing their fiscal year, having a shareholder vote approvals. So I don't think we have a pencil sharpened up on that but we of ideas and I think it.
It's largely opportunistic.
There is continuation of their existing strategy of building out fiber a number of areas.
And they've done that with the sort of an anchor tenant.
Funded model and we see opportunities to continue to do that so that's that's one area of capital expenditure, but the.
The private networks and some of the maybe the <unk>.
Spansion of acceleration of some some fiber will we will have to.
Revert once we've done more work on it.
Okay.
And.
The Navajo nation.
Good project, obviously, the cares Act helps.
Population will use that how should we think about what the opportunity is to then grow the revenues all of that you mentioned, you'll have some additional costs coming from how do we think about.
The revenues and how are you going to report it.
It's actually the.
That that partnership is in our numbers already right. So that's part of our U S business that we've already have that partnership so that the expansion of of the of the network within that partnership.
So it would flow through any any subscriber gains.
Which we certainly expect as part of this will flow through our revenue.
But we're kind of coming out of the gate late.
With all of the cost of it but not all not all will need some running time to kind of get the get the revenues from subscriber growth over the cost level.
In 2000.
In 'twenty one.
'twenty one.
Yes.
How fast do you expect that to lease up is there a community commitment of just trying to think of how fast the the revenues pace up to to having put all the sites in place.
No there is no.
Contractual commitment, but this is too to provide.
Broadband too.
Two people, who don't have it right and by and large they all want it so we expect to sign of people.
Pretty rapidly provision them and then I'll also add debt there are.
There are tribal subsidies and further and further subsidies and envisioned in the plan just released by the by the New administration for.
A lot of communities like this that would subsidize their purchase of broadband services. So.
The net of all of that is we certainly expect.
Two.
Add customers to the network quickly that's the whole purpose of building it out for them.
<unk>.
That will include both residential customers and the.
Potentially some enterprise and education.
Alright.
Okay.
And.
You bought out some more of the one comp stuff, what's the best way for us to think about all of the different investment levels you guys have as far as your own X percent of the Bermuda, but you on.
What percent of.
The different operations.
We bring the Alaska and at $50 50, just trying to think of what's the best way for us to look at all of the various assets you have in your ownership Stakes.
Piece by piece.
Okay.
Well I think Theres two things right. There is the math of sort of proportionate.
EBITDA and debt.
So you can do that but I think the value to us is the little bit better than the proportion of that because we.
We get some benefit from the scale overall of all of those operations and obviously, we're in a control position.
In all cases.
So so I think so.
I think it would be.
Proportionate plus right and.
And it also presents us with opportunities I mean, I think of it was an interesting.
The illustration in the Bermuda situation. Those if you look at how HCN is valued even now.
Those were while we are not disclosing the prices they were.
Highly accretive they were you know we acquired stakes at values below the implied.
Value of the market puts an ATM as a whole and we think from risk rewards standpoint, that's certainly a good good trade.
So.
As Justin pointed out we.
We started that deal we didnt, we had a combination of merged this is Bermuda, we merged our existing operations, we put some additional cash and for new equity to result in this business combination give us control.
And then over time, we increased our level of equity ownership and so that debt structures.
Quite a good one it allows us to spread our money over multiple.
The investments and but still improve that as as opportunities.
On a go deeper within the investments as opportunities manifest.
So I think it's the.
We like that model.
Okay speaking of opportunities last one from me you mentioned the leverage will be under two turns after the Alaska, some sort of financial flexibility. It sounds like Theres a lot of financial partners out there looking at opportunities.
Should we think about the pacing.
Of the ability to put the balance sheet. The work is this.
The year 'twenty ones, we're looking into 'twenty two that the more you know a lot.
The investment going on right now, but it is just some thoughts of cause even more to come.
Yes, I think there could be.
No we don't control of that entirely what we do control, we've talked a bit about right which is.
Building out our existing platforms, which we've said before we find.
Attractive with the high asset values in auctions, we find it more attractive to build out the same assets.
Ourselves and so we've got a fair amount of spending on that.
Sort of core network infrastructure in and also advancing.
Some new businesses, so that that's significant.
As to doing transactions more in the vein of elastic in the larger.
The platform additions I think that that will partly depend on partners and opportunities.
This one was an unusual one and thats why we moved so quickly on it.
But we do we do think we can offer a lot of value to the financial investors, we see some of them going direct in down in buying.
Into assets that are.
Maybe have more operational.
Complexity and risk then then they're valuing.
And we think we could bring something to the table plus plus some of the synergies with our.
Our core operating capabilities. So we're looking to do it but we can't we don't.
<unk>.
Control the pacing entirely other than our willingness to continue to do it.
The other thing I want to note, though is when we talk about the leverage.
Keep in mind that we're expecting the.
The acquisition debt, if you will the debt debt goes in part with the Alaska transaction to be.
Recourse only two that Alaska asset.
So the the capacity and ATM level is is a bit higher than might be implied by that consolidated leverage ratio.
Alright, thanks, guys.
Yes, Thanks, Michael.
Kind of our next question is from the line of Greg Burns from Sidoti. Your line is now open.
Good morning.
The morning, the 10th the $10 million to $12 million of.
Incremental.
Operating expenses you expect next year for the U S Telecom segment, what's the split of that between.
The transition from the AT&T contract in the day.
Yes.
Navajo nation sites.
I would say the bulk of its more the.
Related to the the first net sites, but.
So that's it.
Oh, okay.
<unk>.
And.
Does that I guess youre not going to of the full first net network.
Constructed next year.
So I guess.
Will there be further.
Incremental cost on top of that or will the will the will the.
<unk> expenses continue to grow as you complete that network.
It's a good question.
I think you could you could.
<unk> expenses continuing to grow the completed but we do.
We're kind of ahead on some of the expenses to where we are in the actual.
On the delivery of the site.
But then theres probably other costs within the existing wholesale that we could start to rationalize as well. So it's hard to it's hard to predict right now today, but the.
It probably would be an increase in some of in some of the costs.
Okay, and then in terms of the the remaining carrier services revenue their debt.
I guess, the non AT&T business, what do you what is the trajectory of that business.
The.
That the contract has been renegotiated recently or.
Should we expect what pace of decline do you expect from the remaining portion of that business.
I think overall over the long term, we expect the decline, which might which wouldn't be significant in this year, but in future years, we do if we don't transition the business.
And we do think there's opportunity to fill that buy.
Some of that decline with within the wholesale side.
But if we just took existing contracts and we didn't assume any other.
Successful actions on our part.
Then it would that it would decline.
Okay.
Sure.
And.
On the fixed side of the.
In the U S telecom, it's pretty good growth year over year, what what's driving that growth.
On the broadband basically.
Okay. I think you had mentioned maybe in the prepared remarks government subsidy subsidized government Brooklyn is the specific projects that we should be aware of.
Well, it's a combination it's it's.
It's retail broadband growth is enterprise growth.
And it includes the government program things like.
Like E rate so education.
Area, and we expect more of that in.
In 2021, where we're building out of new subsidized fiber route.
Of which will offer new opportunities in all of those buckets.
As well as some.
We expect to improve penetration.
And some of the residential broadband.
Okay, and then in terms of the the FCC support in the Virgin Islands.
I think it's $16 million annually what happens debt.
This year and next year.
The way. It works is once the program is approved the other application is approved it goes for the first year.
For us down to two thirds of that and.
For one year and then for the second year, it's one third.
And then it would and.
I would note, though that there we are challenging that.
<unk>.
And we think it's possible theres a different outcome, but if you just take the the.
The outcome to date of the award that's the way it would work.
So that that could happen.
Really any months this year it could start that process.
Okay.
And then just lastly on the on the wireless internationally.
What's your market share.
Currently and you know what's what's.
And I guess, how much more opportunities there for you there on the wireless side. Thanks.
Yes, I think.
It depends it depends on markets, but we.
We don't break out the individual markets, but we think.
When we look at the shares in some of the areas. We think there is significant opportunity to increase share.
In some cases, it's because we've launched new capabilities.
And in other cases, it's we had to basically refresh of our approach from a sales and distribution standpoint, and so far we've seen.
Some early.
Couple of quarters.
Finally, seeing.
Real results from those efforts and I think our expectation is we will continue that direction and we will continue to gain share.
But I don't want to quantify it and it wouldnt it wouldnt make sense of the whole because.
Share is only one piece of it.
There's different <unk> between the different markets.
Okay, great. Thank you.
Sure.
And as a reminder to ask the question you will need the press star one on your hands on the phone again that is start on the number one to ask the question. Thank you.
And we have one more question from the line of handmade Whoreson from <unk> financial Your line is now open.
Hi, good morning good.
Good morning, gentlemen.
So just wanted to ask you one.
And of the activities and sales and marketing are you doing on the private LTE from.
What are you seeing as far as the revenue.
Bucket is concerned.
Yes.
Kind of activities. We're doing is we're building out the sales force, we're getting we're getting out there we're building out sales support sales engineers.
And Thats ongoing we're still we're still adding.
Resources.
And we have we have both direct and indirect channels, we have direct.
In certain areas.
And we have Theres a lot of as I mentioned Theres a lot of partnerships there as some of these.
Things like the municipalities or the.
State local education area really all of the areas there are different partners and partners can be.
There.
Pieces of the solution, which can which can include.
The system integrators.
Kind of on the ground too.
The infrastructure owners or funders too technical.
Technical solutions, so technical technical partners.
And delivering a full solution. So we're.
We're pursuing both of those direct and indirect channels and ramping up the activities activities were slow for us and from what we gather for other participants in the market last year. Its as you can imagine.
A bunch of the segments.
The market.
Some of the early interest within the areas like hospitality.
Commercial real estate and you can see why that probably didn't grow but it's also it's early stage so getting around.
Getting people to come in for product demonstrations those kinds of things are.
Much has been much more difficult, but we're we're driving forward without it and.
And we think that will start to get a little bit easier in terms of the activity this year.
And so we just want to make sure we have the resources.
To really go after it.
So are the costs pretty much fixed and at this point sort of.
The scale.
Okay No there now we're adding it as we go.
The we're adding it on a monthly basis now of course, they'll get a time, where you. If you don't see the sales activity you've stopped adding resources right. So you've got to have the contract wins.
But right now we're still in the.
Cost buildup stage, which is which is why we pointed it out as.
As part of our remarks.
And as far as your remarks about the backhaul for U S Telecom.
Are you seeing any.
The other traction with the customers other than the current first net contract.
Yes.
Now in the in.
Not on a site by site basis, just book broadly we've been building in capability backhaul capability.
In the region and our operating region in the near and we.
We have been seeing some but we're we're expecting to ramp that because we're still we're still building a lot.
But in the past on a smaller level when we have added capabilities. There we've had a good track record of adding.
Different revenue streams from wholesale to enterprise on on new routes and capabilities and these communities. These rural communities really really need that.
So.
If you're referring to carrier backhaul, we think there will be that opportunity as well.
Okay.
And my last question was just on Alaska were.
Once this deal closes how old the reporting look like.
In our U.
Since you're consolidating as it kind of be.
All of the EBITDA will be associated with you or.
How are you going to be reporting all of this.
So it will be consolidated operations and so yes, all of the EBITDA would be shown and then there's the minority interest back out.
Okay great.
Thank you.
Youre welcome.
And there are no questions at this time, Sir I am learning and Matthew of Mr. <unk>. Thank you.
Okay. Thank you everybody for listening in and we look forward to updating you more after the first quarter take care.
And this concludes today's conference call. Thank you for participating you may now disconnect.
Yes.
[music].
Yeah.
Yes.
Sure.