Q4 2020 Cable One Inc Earnings Call
Good day and welcome to the cable one fourth quarter and full year 'twenty 'twenty earnings call. All participants will be in a listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by Seattle. After today's presentation there'll be an opportunity to ask questions.
To ask a question you May press Star then one on the Touchtone phone.
The draw your question. Please press Star then two please note. This event is being recorded.
I would now like to turn the conference over to Steven Cochran. Please go ahead.
Thank you for Xiaomi.
Afternoon, and welcome the cable one fourth quarter from full year 2020 earnings call.
Have you join us as we review our results before we proceed I'd like to remind you that today's discussion may contain forward looking statements relating to future events that involve risks and uncertainties. You can find factors that could cause of cable one's actual results to differ materially from these forward looking statements in today's earnings release and in our recent SEC filings.
Cable one is under no obligation and expressly disclaims any obligation except as required by law to update or alternate its forward looking statements.
As a result of new information future events or otherwise.
Additionally, today's remarks will include the discussion of certain financial measures that are not presented in conformity with U S. Generally accepted accounting principles reckon.
Reconciliations of non-GAAP financial measures discussed on this call and the most directly comparable GAAP measures can be found.
And in our earnings release or on our website at IR Cableone net joining.
Joining me on today's call is our president and CEO Julie loss with that let me turn the call over to Julie.
Thank you Steven and good afternoon, everyone. We appreciate you joining us for today's call.
Each year as we look back and take stock of our accomplishment we are grateful for our Associates Inc.
Hard work and dedication continue to drive our success.
In 2020, and extraordinary year by any measure the commitment that our associates made to keep our customers and communities connected to what matters most the fixed.
Sure.
Whether quickly pivoting to find an innovative needs to care for customers during the pandemic working diligently to restore service during one of the most after the hurricane seasons on record.
Responding to the tremendous increase from customer demand our associates work every occasion with Grace and.
Never lost sight of cable one's values to do right by those we serve drive progress and the line definitely.
I want to thank each and every cable one of associates for their strength.
Passion and resilience over the past year and as we continue to navigate through these challenging times.
Encountered of new adversity with the recent severe winter storms that impacted our Texas market.
Our team worked diligently to restore service to approximately 20000 customers that were affected by commercial power outages and damage from snow and ice.
One also donated $15000 along with food and supplies to local nonprofit agencies, including the Salvation Army to support relief efforts in our Texas market.
I'm also incredibly proud of the results for 15 delivered in 2020 and the relentless effort. They have demonstrated through the start of 2021 well.
I'll share with you some of the highlights from this past year, and then turn it over to Stephen who will provide a full recap of our financial performance and financing activities.
Before getting into performance highlights a quick word about our recently announced agreement to acquire the remaining equity interest of hard great Communications.
Are very excited for the transaction and we are looking forward to our hard great colleagues joining the cable one.
We'll get into more detail on the a bit later in the call.
Looking back now it has been almost one year that we like everyone else have been dealing with the impacts of the COVID-19 pandemic throughout this period, we have adjusted our processes and procedures to safeguard the health and wellbeing of our 30 of our customers and the communities we serve.
We experienced record setting demand for high speed Internet and created new ways to safely install and service customers. So they could stay connected to their loved one work education and entertainment.
And we gave back to our communities with donations of time and money and support of those most impacted by the pandemic.
Some of the highlights of our COVID-19 response include <unk>.
Developing video chat applications that offer technicians additional options to assist customers without having to enter a hump, which not only helped us keep everyone's safe, but also contributed to a meaningful reduction in time of each job.
Providing free public Wi Fi hotspots across our footprint and the launching of 15 Meg service per $10 per month for the first three months to help low income families.
Partnering with HCA connects and education Super Highway for the K to 12, French to broadband initiatives, which help school districts from states provide the internet access for students and low income households.
Donating $300000 to meals on wheels, and local food banks. In addition to the of Numerable ways, our associates supported their community.
Providing care packages supply time and their talent.
And donating more than $50000 to K 12 schools in our markets for back to school supplies.
These efforts are in addition to our support of the FCC's keep Americans connected pledge as well as other relief measures that we've discussed on prior calls.
On top of our Covid response, we also expanded our corporate social responsibility efforts in 2020 with donations to embrace raised a nonprofit organization that supports the parents of raising children, who are afraid informed and thoughtful about price and to the equal Justice initiative.
For 2021, he will continue our partnership with embrace race and we are also bolstering our social responsibility efforts with the launch of the cable one charitable giving fund, which will provide grants to nonprofit organizations throughout our markets concentrating on the areas of education and digital literacy hunger.
Relief and community development.
We're also looking forward to expanding our chromebooks for kids initiative. This year by increasing the number of chromebooks, we donate to title one schools in our markets to date, we have donated more than 1500 chromebooks under this program.
Lastly, we were gratified to see that our associates recognize these efforts over the past year as evidenced by our recent recognition of the Forbes list of America's Best Midsized employers as well as in the results of our annual associate satisfaction survey.
Our associates gave highest marks for one taking a 30 of safety seriously and to the statement I am proud to work for cable one.
Those responses, coupled with a record high satisfaction rate illustrate that our associates are connected and engaged even in the virtual world. We all find ourselves in.
With that as the backdrop, let me turn to our performance. We're pleased to have delivered another strong quarter and year with 2020 full year results producing a 13, 5% increase in total revenues and $18 five per cent increase in adjusted EBITDA and an adjusted EBITDA margin of 50.
9%, which improved 220 basis points year over year.
We believe that our 2020 results reflect the continued success of our data centric strategy and disciplined approach to operations, our proven track record of executing well integrating reinforces the strategic value of deploying cash to grow the business through broadband related acquisition and investment as well as capital.
Projects that drive long term growth.
In 2020, we spent more on capex for organic Newbuild projects any single year in the past decade, highlighting the fact that we are seeing meaningful growth opportunities in the rural communities that we serve.
In the fourth quarter of 2020, although our reported residential HFC customer count shows the decline on a sequential quarterly basis. If you take into account. The 19000 customers contributed the hard gray as part of the Anniston exchange in October 2020, we would've shown a gain of more than 11000 residential HST cut.
<unk> the.
This figure would have been two and a half times the organic customer growth we saw in the fourth quarter of 2019.
Our strong growth has continued so far in the first quarter of 2021 as we have already added more of residential HFC customers than we added in the entire first quarter of 2019.
Over the course of the year, we added a record 82000 residential high speed Internet customers that figure excludes a net of roughly 14000 residential data customers. When we tally those we contributed to hard gray against the value net customers. We acquired on July one.
To give some perspective on that growth number if we exclude the customers added at the time of closing of each of the our various acquisitions. Since 2015, we have organically added over 50% more customers in 2020 than we did over the total four and a half years between our spin off and the <unk>.
End of 2019.
In addition, the businesses in which we have minority investments grew by approximately 13000 residential and business data customers in the fourth quarter. While these customers are not reported in our results. These results highlight the value and shared commitment of our strategic partners.
Overall, the flexibility of our pricing and packaging approach has enabled customers to easily identify the plan that best fits their evolving needs in the fourth quarter, even though the number of customers, we connected increased by 30% year over year of.
70% of these new customers self selected into a package with a download speed greater than 100 megs of red.
The <unk> data <unk>, thus grew five 5% quarter over quarter to $75 from 65 cents.
From a technology standpoint, we continued our DOCSIS three one deployment and CMT S upgrades to further enhance network speed and reliability. So we can maintain capacity to stay ahead of the demand curve during the fourth quarter, even as we saw average residential data usage grow by 37% year over year to nearly five.
500 gigabytes per month, our network utilization of peak remained low with an average of 23% for downstream traffic of 19% per upstream traffic.
On the business services front revenue grew by three 4% quarter over quarter and by 14, 7% year over year.
I noted on our last earnings call. We've continued to work with our small business and enterprise customers and providing product and service solutions to support them. During this critical time.
After the start of the new year relaunched internet backup services for small to medium sized businesses and optical wavelength services for fiber customers.
Backup services provide the wireless solution that keeps customers of internet operating in the event of the services disruption such as the storm related power outage wave.
Wavelength services, obviously secure delivery method for businesses that must move large amounts of sensitive data quickly securely and reliably reliably by leveraging our fiber backbone to delivery of dedicated point of point high capacity data network services to larger businesses and carrier customers.
We anticipate products, such as Internet backups, and wavelength services will create opportunities to attract new customers as well as upgrade existing one.
Over the course of 2020, we also pressed forward with our integration efforts, we completed the rebranding of our newwave properties, just the Barclays, which included migrating customers to current spark light packages.
And our fidelity integration continues on a successful trajectory last year, we invested nearly $14 million and plant upgrades that enhanced network reliability and support of high speed Internet growth. Additionally, our associates are working closely to learn from each other and leverage best practices for example.
Our technician video chat functionality wasn't innovation originally designed by our Fidelity associates, which was rapidly implemented across the entire company. While there are more integration opportunities on the horizon I'm pleased to announce the fidelity has already exceeded our original run rate cost synergy estimate.
Congratulations and thanks to this group for all of their hard work.
On the acquisition and investment front, it's been a busy time of cable one in addition to closing on our acquisition of value net in the third quarter of 2020, we have completed five strategic investments over the past 13 months with the cumulative book value of nearly $750 million. This includes our partnership with them.
Mega broadband investments that closed during the fourth quarter.
Each of our investments and acquisition has furthered our vision to deliver the very best broadband services to small cities and large towns throughout Rural America.
Last week, we announced that we have entered into an agreement to acquire the remaining equity interest of hard grade as you may recall, we currently own about 15 per cent of the company on a fully diluted basis from the contribution of our Anniston system.
This is a truly exciting opportunity for us because we are confident the car gray represents an excellent strategic and cultural fit.
Her great had the rich history of being a leader in residential HST and business services across the markets. It serves and Alabama, Florida, Georgia, and South Carolina are two companies are similarly committed to the success of well being of our associates customers and communities.
I look forward to officially welcoming our future her great colleagues to the cable one family later this year and in the meantime, I'd like to thank all of those who have worked diligently thus far to help create this exciting opportunity.
All of them will provide more detail on her great in the transaction in his remarks.
As we look to 2021 I'm excited about the opportunities the year will bring and I am confident that our pledge to care for our customers serve our communities and pursue operational excellence will keep us on track for long term sustainable growth and now Stephen Thank you Julie.
Before I begin I'd like to remind everyone. The because of the contribution of our Anniston, Alabama systems to heart rate on October one.
And it's in operations are not included in our fourth quarter 2020 results for context. These operations, representing approximately 19000 residential HSV customers and produce third quarter 2020 revenues of $9 $4 million.
The fourth quarter of 2020 generated solid financial results revenue for the fourth quarters were $337 million compared to $319 million in the prior year quarter of five 7% increase.
This increase was fueled by residential <unk> revenue increase of 17, 1% and the business services revenue increase of three 4%.
Our fourth quarter results include $1 $2 billion of credits for customers, who experienced outages during our most active hurricane season in the recent history.
To give a sense of our year over year organic growth when we exclude the fourth quarter 2019, Amazon the results in the fourth quarter 2020 value net results, we would've seen a fourth quarter total revenue increased by 8% residential HFC revenue increased by 19, 3%.
And business services revenue increased by five 1%.
Residential HST customers grew by more than 82000, or 11, 8% year over year, which is net of approximately 14000 from the Anniston systems that were contributed to hard Greg and acquired from value net.
Operating expenses were $99 4 million or 29, 5% of revenues in the fourth quarter compared to $103 4 million or 32 five per cent of revenues in the prior year quarter of 300 basis point improvement.
Selling general and administrative expenses were $64 7 million for both the fourth quarter of 2020 and 2019 Vuzix.
<unk> expenses were 19, 2% of revenues in the fourth quarter of 2020 compared to 23% of revenues in the prior year quarter of 110 basis points of improvement.
Net income for the fourth quarter was $106 2 million, which included an $82 $6 million pretax non cash gain from the Anniston contribution net.
Net income also included a $17 5 million dollar non cash loss from a value of fair value adjustment associated with the MBIA call and put options as.
As part of our investment in India, We acquired a call option to purchase the remaining 55 per cent of equity interest that we don't already one between the first quarter of 2023, and the second quarter of 2024.
Meanwhile, if we elect not to exercise our call option certain investors in N V. I have a put option to sell us all of those remaining equity interest in the third quarter of 2025.
These options are subject to mark to market accounting on a quarterly basis until these options are exercised or expire any changes in the assumptions used to determine the fair values could increase or decrease the resulting valuation which in turn could cause significant non operating fluctuations in our GAAP financial results from one quarter to another.
Net income per share on a fully diluted basis was $17 54 per share include.
Inclusive of the noncash gain and the noncash loss I just mentioned.
Adjusted EBITDA was $178 9 million for the fourth quarter and increased 13% from the prior year quarter, Alright, adjusted EBITDA margin increased 340 basis points year over year going from 49, 7% to 53, 1%.
Capital expenditures totaled $75 $2 million for the fourth quarter of 2020, which equates to 42, one percentage of adjusted EBITDA.
During the quarter, we invested $13 $8 million of Capex for network expansion and $4 1 billion for the integration activities, bringing our total for the year to $36 7 million and $13 7 billion respectively.
In the fourth quarter of 2020, we paid $15 1 billion in dividends to shareholders.
At the end of October we amended our credit agreement to upside of certain of our term loans by $300 million and a revolving credit facility capacity by $150 million.
And the the maturities of our term loans due 2025% to 2027 as well as our revolver credit revolving credit facility to 2025, we used the net proceeds from the term loan upsizing from cash on hand to repay the $483 $8 million outstanding principal under our term loan B one.
We also completed a private offering of $650 million of 4% 10 year senior notes in early November.
And we use the portion of the net proceeds to acquire 45% equity interest in <unk> for $574 $9 million in cash.
From a liquidity standpoint, we had approximately $575 million of cash and cash equivalents on hand as of December 31, and we continue to generate significant free cash flow.
And our debt balance was approximately $2 $2 billion, consisting of approximately $1 five $1 billion in term loans.
$150 million in unsecured notes and finance lease liabilities.
We also had $474 million available for additional borrowing under our revolver revolver at December 31.
Overall, our debt the last quarter annualized adjusted EBITDA after netting cash on hand against the debt was two three times.
The jewelry as Julie already mentioned last week, we announced that we'll be purchasing the remaining equity interest in hard grade that we don't already own.
That represents approximately 85% of hard great on a fully diluted basis. The transaction implies of $2 2 billion total enterprise value for 100% of the equity interest of hard great on a debt free cash free basis.
As of regional communications provider, serving approximately 125000 customers in South Carolina, Georgia, Northern Florida, and Alabama with last quarter annualized revenue and adjusted EBITDA as of December 31, 2020 of two.
$295 million of $128 million, respectively. The true.
Transaction is expected to close during the second quarter of this year.
There is additional information on hard great in the Investor presentation filed with our press release earlier today.
We have received $900 million of bridge loan commitments to finance a portion of the purchase price.
Last week target amended its credit agreement to provide us with the option to assume approximately $689 million of hardware as outstanding debt. Upon the closing of the acquisition, which we did reduce the cash purchase price we must pay of closing on the dollar for dollar basis.
The combination of our cash resources revolving credit facility of capacity bridge loan commitment and hard grade portable credit facility provides us with plenty of ways to finance this transaction, but we intend to keep our options open and we will look to opportunistically strengthen our balance sheet and replace the bridge loan commitments with other capital depending upon the of.
Availability of the markets.
The snobby, we're now ready for questions.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone, if you're using a speakerphone. Please pick up your handset before pressing the keys if at any time of your question has been interest and you would like to withdraw your question. Please press Star then two.
At this time of people pause momentarily to assemble the roster.
The first question comes from Phil Cusick with J P. Morgan. Please go ahead.
So are you and there is your line muted.
Okay. It looks like his line is muted or he's not able to hear.
I'm going to more of the next question is from Greg Williams with Cowen. Please go ahead.
Great. Thanks for taking my question, Steve all of them pick up right, where you left off on financing the hard great deal in the past do you typically said.
You would.
The comfortable going up to about three five times leverage.
Is that sort of range still an area, where you'd be comfortable going or would you consider maybe going higher considering the credit markets.
And second question.
Just looking at slide seven years of Super helpful. On the hardware acquisition and the $45 million and run rate synergies can you unpack some of those synergies and how much of it is the tax NPV versus Opex and Capex.
Sure. So on the first question on the financing I think.
We definitely we've always said that we're comfortable living in the three five times range comfortable going higher if we felt we could delever quickly clear.
Clearly I think we have the ability to delever quickly on this both from our own growth and the growth of the the businesses we've been acquiring.
That being said.
More importantly, what we have also.
As part of our strategy is to have the strong balance sheet and we're going to Opportunistically look for chances to great and have a strong balance sheet, because that's been a huge part of the.
Our ability to transact over the last several years and so with that in mind you know.
We will look for those opportunities I think first and foremost we are focused on getting certainty and we were able to accomplish that both because it moves we have made in the past to create the cash and revolver capacity we had.
To get the <unk>.
Bridge financing that we put in place, but also does it didn't move and get the hard great debt lined up so we feel great about certainty to be able to close the transaction and be comfortable with that as a starting point and now we will look to the opportunistic and improve the balance sheet, where we get the chance.
From the synergy standpoint, there's not a lot of tax benefit there is a little bit of a tax benefit of.
The majority of it really is both.
<unk> expense and revenue synergies.
Debt look very similar to types of synergies, we realized historically, whether you go to new wave of fidelity.
This is sort of similar type transaction part of it is.
Putting in the cable one playbook and are taking advantage of what hardware. He does well apply that across our company and then go and look and things that have worked really well for cable one and apply our business model to that and Thats why we put three years out there you know we don't ever want the synergies to drive the decisions, we want to make sure of.
The the right business moves are the reason we make the decisions we do but we feel very comfortable that we will realize that kind of synergy over a three year time period.
Got it thank you.
The next question comes from Craig Moffett with Moffett Nathanson. Please go ahead alright.
Alright, thank you.
Stephen Julie to two questions if I could first.
You're obviously.
The always looking at acquisitions I guess.
The the headline price and even the post synergy price for heart rate is.
As a an awfully high price relative to public cable multiples I'm wondering if you could just talk about one.
What youre seeing from potential acquisition candidates in terms of their expectations and does that make it harder to get deals done.
Obviously difficult size and then second I guess, the the issue that debt. All your larger peers are struggling with is how to think about broadband growth for 2021 in the absence of.
Of the work at home and and pledged.
Pledged dynamics in the sort of thing of 2020 can you just talk about how you think growth.
What what are the puts and takes the growth this year and how you see you think that 2021 will compare to say 2019.
Sure so on the on the.
On the deal multiple side of it I mean, clearly you know we have seen multiples move up and we've also seen our own multiple move up and we think justifiably. So we think the.
Businesses that are just the focus at our HST led.
Has the competitive environment like we do that.
You know how the growth profile of what we do we think that drives a multiple that looks much more infrastructure like and that's what we've seen on both things we looked at and not either participated in or looked at and transacted on you know Fortunately we've been able to.
Find the number of transactions, where you know there were other things other than just price that matter of day, they really cared about where there are people lander, who was going to be serving their communities those kinds of things that allowed us and we were still able to.
To be fair in transacting, but also getting deals done that were outside of processes and so you know I think we feel very comfortable that the multiples we're paying.
<unk> asked us to look similar to what we are that we're going to be able to apply our business model two and should have the same trading characteristics that we've had because of the dynamic of the business model. The you know the we're operating and maybe compared to some of the the larger peers on the customer growth out of like Julie take the sure. Thanks Steven.
You know.
We are proud to have built our infrastructure that is focused on customers, particularly serving those customers that are the least served.
Until we showed up in those markets and I think that we have the belief that there was going to be a tipping point, where what we had built would be.
The needed by our customers, we had thought that likely it would be applications and services that would be riding on our networks. We have no idea of it it would be a pandemic and <unk>.
But it came in our in our network wins, there for our customers and we grew as our peers clue.
And that growth continues as you know Craig we have room on the penetration side to grow and now that there is a true need for the type of network that we provide for the type of reliability and service that we provide it.
It continues to grow and we feel confident that we have the dual levers of you.
The net growth penetration growth as well as ARPA growth as customers elect to take them higher speed higher data packages.
If the.
The pandemic has taught us anything it's that we can't predict or control things the way, we would like but for right now we're feeling really good about the business that we're in.
Thank you.
The next question comes from Brandon the spill with Keybanc capital markets. Please go ahead.
Okay, great. Thanks for taking the questions maybe.
Maybe both for Stephen but Steven EBITDA margins are clearly pretty strong for this business.
Over 50 per cent for the year one.
When you look at sort of the acquired cable systems versus the legacy cable one footprint.
Could you sort of frame for us the spread between the more mature systems and in the newer assets for you in terms of the EBITDA margins.
Then Julie you're obviously you made some comments on the organic agent.
<unk> sub growth during the first quarter, what type of level of growth do you expect.
In 'twenty, one and maybe what would be helpful. If you could frame for us what level of organic HFC net adds you had in 2020 in 2019 just for point of reference.
So Brandon.
On the first question is on the EBITDA margins, So I think.
I think a couple of things on that first I would say.
There's obviously a lot of conversation around what the pull forward and what's not a pull forward what I would say we've seen because we've continued to see accelerated growth.
As Julie mentioned, both in the fourth quarter and as it so far in the first quarter.
So it maybe isn't of pool, what there is is it an acceleration of our business model. We've always talked about what was going to happen. When you know the business kept going and we added more data customers and had less video customers and because of our approach on video we've seen accelerated video losses and vastly accelerated.
Just the of games and because of that.
Our margins just moved more quickly to where we thought they would move to and Theyre going to continue to move to.
As it relates to the actual acquisitions themselves.
We don't truly go down to EBITDA of four of them, but if you looked at kind of flow system cash flow type that we would evaluate on a market by market basis.
Uh huh.
They're all getting really close them you know clearly the legacy Cabo stuff, just because of where it was in the plan is further along.
The new wave of us close the gap significantly and fidelity actually unbelievably closed partly because of what we talked about with the certainly the G realization piece that the that we've had on that but they're actually running.
The very hot on that as well so.
You know and that's part of the that's clearly part of the M&A strategy I mean part of what we tried to do is make sure that we have opportunities to deploy our capital in the most effective ways. We think that's through either network expansion of our M&A and then when we buy things we've execute in but our business model on it and we generate more free cash flow and then the goal is to go and find other things to invest that in because we think that's the Butte.
The other model it it's great. If you can have a business that generates a lot of free cash flow, but if you can actually redeploy that into business that similar we think thats kind of what is the secret sauce of who's worked so well of cable one to this point.
Yeah, and I think Brandon the but Steven just answered your second question to really the best of our ability and then again, we can't you can't predict and we can't control, but we can tell you that you know we had growth. We've continued accelerated growth in the fourth quarter and it's still going strong now we've got room to grow.
And we're doing it.
Thanks for taking the questions.
Yeah.
As a reminder, if you have a question. Please press star then one to be joined into the queue.
The next question comes from Frank Louthan with Raymond James. Please go ahead.
Hey, guys. This is Rob one for Frank Thanks for taking my question.
So can you talk about the outlook for you guys under a potential title II net neutrality scenario and how much do you think you'd have to raise pricing of data caps weren't allowed hypothetically. Thank you.
Thanks, Rob, it's Julie I'll start Stephen feel free to jump in.
First you know, where we're strong believers in and net neutrality, we don't throttle we don't have fast lanes. We believe in an open internet, we don't believe that it needs to be legislated. However.
When you talk about that.
Possible regulation and raising prices.
A couple of thoughts come to mind.
One is that the actual amount of opportunity that comes from the usage based billing has gotten relatively.
The relatively small under our new pricing and packaging scenarios of what what's driving our options growth on the on the residential HST side well over.
Over 70% of people elect to go into a package that is higher than 100 megs.
And those carry higher prices right. They also elect to take unlimited data packages, which drives the RPM, we also which kind of I just think of really smart we don't discount any package other than that 100 Meg package. So when people have left and it's by far.
The way the majority of its higher price packages. There they are buying them at full price we are not deeply discounting them.
So those are the things that are driving <unk> for us our 100 Meg service is an incredible all of our services, but if you really look at our 100 Meg service. It is of tremendous value at $55 and by the way. It has been $55. Since the fall of 2015, we have not raised the prices on our first of all.
Residential HFC services. It is the sell in and the lack of discounting and a little bit of UBB that allow the value price to be available to the majority of the customers and those that want more of our use more they pay more we think data really beautiful value proposition for customers.
Yeah.
Great. Thank you.
Okay.
This concludes our question and answer session I would like to turn the conference back over to Julia Lawler for any closing remarks.
Thank you vision Avi.
I want to thank our associates for all they have done and continue to do during an incredibly uncertain and challenging time. This team continues to be the driving force behind our success and I feel especially privileged to work alongside of them each and every day. We appreciate everyone joining us for today's call and look forward to speaking with you again.
The next quarter. Thanks all.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Okay.
[music].
Yeah.