Q4 2020 Hci Group Inc Earnings Call
Good afternoon, and welcome to H Ci groups fourth quarter and full year 2020 earnings call. My name is John and I will be your conference. Operator. This afternoon. At this time, all participants will be in a listen only mode. Before we begin today's call I would like to remind everyone.
One that this conference call is being recorded.
And we will be available for replay through April 11th 2021, starting later this evening.
The call is also being broadcast live via webcast and available via webcast replay until March 11 2022.
On the Investor information section of each Ci group's website at Www Dot HCI group Dot com.
I would now like to turn the call over to Rachel <unk> Investor Relations for HCI. Rachel. Please go ahead.
Thank you and good afternoon, welcome to HCI groups fourth quarter and full year 2020 earnings call with me on today's call is Paresh Patel, our chairman and Chief Executive Officer, and Mark Harmsworth, Our Chief Financial Officer. Following Paresh as opening remarks, Mark will review, our financial performance for the fourth quarter and full.
Year of 2020, and then turn the call back to Paris for a look ahead. Finally, we will take your questions.
To access today's webcast. Please visit the Investor information section of our corporate website at Www Dot HCI group Dotcom.
Before we begin I would like to take the opportunity to remind our listeners that todays presentation and responses to questions may contain forward looking statements made pursuant to the private Securities Litigation Reform Act of 1995 words, such as anticipate estimate expect intend plan and project and other similar.
Words and expressions are intended to signify forward looking statements.
Forward looking statements are not guarantees of future results and conditions, but rather are subject to various risks and uncertainties.
Some of these risks and uncertainties are identified in the company's filings with the security and exchange Commission should any risks or uncertainties develop into actual events. These developments could have material adverse effects on the company's business financial conditions and results of operations HCI group disclaims all the obligations to update any forward looking.
Statements now with that I would like to turn the call over to Paresh Patel, our chairman and CEO Paresh.
Thank you Rachel and welcome everyone.
As you can imagine we have a lot to discuss today.
So I'm going to turn it right over to Mark to discuss our financial results for the quarter and for the year.
Afterwards, I will discuss two major transactions, how they benefit ATM on the future on obviously discuss stepped up further mark.
Thanks Paresh too.
2020 was a very active hurricane season, with a record breaking 30 named storms 12 of which made landfall in the United States. Despite.
Despite this level of activity HCI made money in every quarter and delivered a superior rate of return for our shareholders.
In the fourth quarter. After tax net income was $2 7 million and diluted earnings per share were <unk> 35.
For the full year after tax after tax net income was $27 6 million and diluted earnings per share were $3.49.
We started talking about growth a couple of years ago and in 2020 that growth accelerated in.
In Q4 gross written premiums were up 43% from the fourth quarter of last year. This does not include $44 million of premium from the UPC quota share agreement booked in the quarter.
Homeowners choice and tip tap are both growing in Q4 gross written premiums for homeowners choice were up 24% over the same quarter last year again before taking into account the UPC deal.
And tip tap gross written premiums were up 75% driven of course by the tremendous success of our homeowners business for.
For the full year consolidated gross written premiums were up 26% and gross earned premiums were up 22%.
Consolidated premiums enforced at the end of the year are up 20% from the end of last year.
I've mentioned the UPC deal a couple of times. So let me quickly clarify as announced we signed a quota share deal that runs from December 31, 2020 day May 31, 2021, we recorded about $44 million of gross written premiums in 2020, which is all on earned I did not include this in the growth numbers that I mention.
Earlier.
Our real estate Division had a strong year in 2020, our real estate subsidiary Greenleaf has been building a diverse real estate portfolio, which has grown to 10 properties.
While our operating properties have positive cash flow and strong returns and the long term strategy has always been capital appreciation.
This year, we realized the gain of $37 million and we sold our Cypress Commons property and even after selling it on our portfolio and Greenleaf still has a difference between appraised value and book value of over $30 million and that unrealized gain is not included in book value.
Now just a few comments about surplus reserves and capital.
As we've mentioned many times, we have two well capitalized insurance companies owned by a holding company with additional resources if needed.
In 2020 homeowners choice capitalized on its own net strong financial position by taking on two new books of business. The four states in new England from UPC as well as the policies assumed from anchor back in April the strong surplus position of homeowners choice has been a real strategic advantage because it has allowed us to capitalize.
On growth opportunities without capital from the holding company.
Tiptop end in 2020 in a strong surplus position, but we have taken <unk> taken steps to accelerate its growth trajectory.
The growth capital from Centerbridge set to tip tap on its mission of being a separately funded company that will drive profitable growth and share appreciation for HCI.
<unk> focus in the future will be the realization of that plan.
At the holding company level in 2020, we renewed our credit facility with fifth third bank. This is a tremendous vehicle for the company as it gives us access to an inexpensive source of capital that we can deploy at anytime we have $65 million available and as we speak there is nothing drawn on this facility.
As you know stock buybacks have always been on important part of our capital plan.
We bought back more than 5 million shares at an average price of $35. Since the plan began and with the stock price where it is now this has been a tremendous use of capital.
Just one final comment which will be on reserves, it's great to say that we have strong surplus on liquidity positions, but because two of our businesses are insurance companies. It's important to know reserve stand at the end of 2020, our premiums in force are 20% higher than at the end of last year, but our non cat reserves are 35% higher.
Reflecting reflecting our continued conservative approach to reserving.
In summary, 2020 was another good year for US we made money in a difficult environment, we are 20% bigger than a year ago, we've proven our ability to grow organically and through opportunistic acquisition and we have the capital to continue on both fronts and with that I'll turn it back to Paresh.
Thanks Mark.
Obviously 2020 was a very challenging year for most people.
However, as Mark indicated.
Despite an active hurricane season on a year marked by Covid.
Delivered profitable results in all four quarters.
And we have begun 2021 with two important transactions.
First as Mark mentioned earlier, we reached an agreement with UPC better known as United property and casualty insurance company.
Transition to us it's personal lines business.
<unk>, New England States.
And the business in these states represent represents approximately $125 million of annual premiums.
Our plan is to transition approximately $100 million of that business, the tiptop with homeowners choice taking the risk.
Second as many of you know two weeks ago, we announced the Tiptop received $100 million investment from Centerbridge partners.
Centerbridge acquired approximately 11, 75% of tipped up insurance Group Inc.
Which comprises of our tipped up insurance operations and our <unk> software development operations.
Center bridge's investment implies a post money valuation from ticked up of approximately $850 million.
For reference that's greater than the market capitalization of all of HCI today.
And remember that HCI still owns over 80% of Tipton.
If you bring out a calculated based on this valuation you might think that HCI shares undervalued.
We would agree.
Centerbridge announcement.
Tipped up has seen its share of press coverage with tipped up being compared to other interest technology companies.
Now is a good time to talk about the tip tap business opportunity.
Historically reinsurance business has operated on a very thin on very thin margins.
And coupled with that there is a lack of innovation and ongoing market consolidation in the industry.
Tip tap recognized the opportunity to drive a more profitable outcome for the insurance company by leveraging big data analytics and technology.
Our solution to the problem has been quite straightforward.
We gather almost all of the data.
Free gather almost all of the data needed to furnish a quote.
Then we use automation that allows us to evaluate house risk.
Risk to on a per house level.
And finally, we have developed algorithms to help us price each risk adequately.
While allowing us to capture enough margin in each policy for the occasional claims expense.
I will be going to follow.
To drive this point home.
Let's look at what happened yesterday.
Yesterday with fewer than 250 active agents.
Tip tap average quote every 64 seconds and sold the policy every six minutes.
Generating over a $1 million of grocery and premium in a single day.
It proves that our automated underwriting technology can scale to large numbers with little incremental overhead.
Now, let's talk about portfolio.
<unk> gross loss ratio in 2020.
Thank goodness that basis was about 20% below.
That of the Florida industry.
On average.
On the companies struggled with much higher gross gross loss ratio and then attempt to improve.
Improve them to reach the industry average.
Tip tap is already running materially below the industry average.
Now add all of those things together.
We have seven ex organic growth over the last two years proven scalability.
Low customer acquisition costs.
And we are looking at a total U S homeowners addressable market of approximately 105 billion with a b.
And the tipped up model has already been proven successful in Florida, which is one of the toughest markets in the nation.
We have a very high level of confidence that we'll be successfully on the markets as well as we expand nationally.
Finally on that note as we have stated before we are exploring strategic opportunities for tipped up which could include an initial public offering or even us back merger, we will have more on that soon as things progress.
And with that we're ready to open the call to your questions.
Operator, please provide the appropriate instructions.
Thank you ladies and gentlemen, the floor is now open for questions. If you have any questions or comments. Please indicate so now by pressing star one on your Touchtone phone.
<unk> Star two will remove you from the queue should your question to be answered and lastly, posing your question. Please pickup your handset listening on speaker phone to provide optimum sound quality.
Please hold while we poll for questions. Once again Thats Star one if you have a question or comment on.
And your first question is coming from Matt <unk> from JMP, Matt Your line is live.
Hey, thanks.
Good afternoon, good evening.
Paresh I wanted to ask a I guess a high level question to start and really.
Yes, I, just kind of asking you to put yourself on center, but just use a little bit but the cost per the question is.
Why did they bet a $100 million under attack.
And as you get into the evaluation and so forth.
Can you can you Peel back the onion, a little bit and kind of the discussions you had with them around kind of on how you guys got to that number and what I mean by that is in terms of it.
That's our horizon by which they're looking at that as more of a near term kind of into 'twenty, one maybe 'twenty two number or kind of how your senses at least how theyre thinking of it and obviously you were on the other side of the table.
Yes.
Matt from a reference I think Centerbridge is a very large organization on either like $28 billion under management.
I don't want to speak for them, but my sense is 100 million might be the minimum investment.
Fair enough.
But.
The other side of that.
I think in our conversations I think they would tell you that.
Why tipped up why now.
On the number that just.
Growing seven X.
And in a world, where everybody struggles to reduce their loss ratio and maybe get it to the industry average you have a company here that's growing rapidly.
And.
Knowledge is obviously scalable and the results both in 2019 and in 2020.
Or something like 20 points below the below the peer group right when you're doing that you're onto something and I think that's fundamentally what they were.
Grasp it yeah.
They are very good thank you.
I got a couple of other much more boring questions and probably probably more so from mark just.
Kind of where you guys peg book value per share at the at the end of the quarter as well as the tip.
Tip tap surplus at 12 31 before the Centerbridge investment.
So.
Hey, Matt it's Mark So so first question I think it was book value per share.
$25 83.
Okay.
And December and your other question was.
The tip tap tap third plots December 31, the net.
That wouldnt include Centerbridge right that was after that yes, so so $38 5 million at the end of the.
At the end of the year.
Okay wonderful thank you very much and.
Congrats again on a on a really nice.
Deal with Centerbridge.
Thank you thank you Matt.
Okay. Your next question is coming from Mark Hughes from Joost Mark Your line is live.
Yes. Thank you good afternoon.
Good afternoon Mark.
Hello, virtual homework and thing.
About the $850 million value per cap, how should we think about the value of the warrants.
It's mark.
Yes.
So obviously, we've got an idea of what we think those warrants are worth.
But.
For accounting and auditing purposes, we've got to get those valued by a professional and then we have to get we have to get that.
Get that audited as well, sometimes those those things don't work out as.
As quickly as you'd want to have to be a little careful what I say because we're in that process now.
But I think a value in the sort of 10 to $15 per warrant.
Is it is about the right range and so if you pick the midpoint there that's about that's about $10 million for all of the warrants together.
A couple of just a couple of just to add a little bit of color to that though.
That's as of February 26th which.
Was that is the closing date of the deal obviously, we entered into an LOI and earlier than that in January sometime.
And the stock was a little bit lower so that so that the value of the warrants at that point would have been less than that.
And the other thing too is and in order for them to execute on those warrants they've got to write a check for $40 million.
Which will come in as equity and of the company and if we were at about raise that kind of money it would probably cost us $2 million to $3 million.
So when you put it all together.
The value of those warrants some somewhere between.
5% and 10% of the total package the total amount of the investment does that does that help.
Thank you.
What was the surplus at homeowners choice.
And.
Just give me one second it was.
101 hundred $20 million.
And then your.
The.
Our gross loss ratio of 20 points better than the industry. What would you suggest is the industry.
The loss ratio.
For 2020.
Yeah.
Mark the way we calculate this just so that everybody does the same thing.
Most of the industries.
All of the industry.
Yellow books, which is the stat accounting for each insurance company private or public.
At the end of February so when you sort of get that across the industry and then in there. They do everybody sort of puts down the gross losses that can do very easily figure out gross loss ratio.
We.
Got to card parties basically the.
The gross loss ratio across the whole industry and it comes out to be about 68% for 2020.
Tip taps number is something like 47% I believe.
On a stat basis on a stat basis and again this is a tip type insurance company on a stat basis, so that.
As you know there's multiple ways of measuring this but thats the measure we're talking about.
Yes.
You may not want to share this level of detail, but I'll, let 47 points how much is the cat losses.
In 2020.
It would have been about.
Maybe.
7% of that.
Yeah, not not not a big number but.
Right.
We included that on did it on a gross basis, because one presumes, a 68% had some cat losses in it as well right. So to make it a fair comparison, yet within a mall and so that math I did it would have been about 42%. If you take out the cat. So 47 versus 42, I think I said.
So about 5% of it.
Yes, okay.
Again.
Understood.
Earnings pattern.
<unk> got the on earned premium.
Does that change the earnings pattern or do we just use the COVID-19.
25 million on.
U S growth, presumably are in that ratably over the quarters.
Yeah. It does it does.
The way you would do it for the quota share if youre if youre looking at the quota share or if you're looking at the renewal rates.
The better way to look at it is that.
I think we said on the 8-K $130 million I think it's about 100 Paresh mentioned on at 25, I think that's about the right number. So you would just look at that ratably over the period.
That's the best way to look at it to be pedantic about it the quota share Thats enforced right. Now is 69, 5% of the $125 million and Thats. What you are five months.
So thats what you would do from January through May starting in June you would be doing.
You will be advertising $125 million on an annualized basis, yes.
Okay. Good that's helpful. So again to be clear the.
The quota share a 60 day in the half Oh, the $125 million January through May and June it goes to 100% on $125 million is that right.
Yes.
Okay.
Yeah Yeah.
Hold on margin I know with the anchor there was.
As patients on some initial dilution.
And I don't know with UPC, what what your thoughts are but when you take those two books of business.
Combined.
Does that.
Due to the loss ratio and then what's the trajectory from.
From here.
Presumably you refine those books.
So if you.
A couple of questions on there if you think about the anchor book just as an example, we had talked about that when we when we did that deal.
Obviously, the premiums were lower there wasn't as much margin. There. If you look at it at the end of the year, we've got about 66% of the policies, but about 83% of the premiums.
So over time that that margin is starting to that is that starting to improve so.
As in the initial stages of the anchor deal the loss ratios were obviously, a little bit higher we talked about that I think in earlier calls, but as those policies are starting to renew on to homeowners choice paper.
Youre getting to similar loss ratios.
Homeowners choice has so if you if you sort of look if you look forward.
Blend those things together and I will take the UPC out just for a second.
If you look at anchor on homeowners choice together that blended loss ratio looking forward is probably in that still in that 25% to 27% range, maybe a little bit towards the high end of that when you include anchor.
<unk>.
So does that help.
It does and then would you include UPC.
Net.
Yes, I mean the <unk>.
<unk> loss ratio is going to be a little bit higher.
But it's only about 25 per cent of the if you look at the overall impact on the book I don't think its going to have a material impact on it.
But.
It might get us closer to 29% on a consolidated basis.
Somewhere in that range.
Yes.
Helpful. You.
You mentioned, the IPO, where spec merger.
With this process you were certainly.
Good day or word of say youre exploring your options and come up with day.
A pretty striking transaction here.
You mentioned the IPO respect merger or is that something you're working on in the near term is that.
Something that is conceivably in process or is that.
Expiration will.
More than.
'twenty two 'twenty three time frame.
Simple way to answer that.
We will see that a lot of inbound phone calls.
The Centerbridge announcement.
And.
One thing that you've known about us over the years.
As we have always been opportunistic.
And when we were offered a.
And appropriately youre fairly price deal that makes sense for us we don't say no.
Right.
The.
Such a opportunity and that of course, we will do that.
Clearly the markets are.
Or looking to these kinds of businesses at the moment.
And.
When you sort of see the number the tipped up is putting up.
It has to be very very desirable partner.
For a number of specs yet.
Understood.
I'll ask it in the quarter. This is a small matter, but the low G&A was.
Look lower this quarter than we might have expected.
Can't remember whether there is.
Seasonality that might influence that.
But was it.
Anything unusual there.
Yes, it's mark just throughout the year, we make assumptions about.
What bonus expense will be.
And then the actual bonus expense gets chewed up in Q4 and the bonus expense was less than what we've been accruing to so there is a reversal there in Q4, so that that's a little bit unusual.
Very good thank you.
Yes.
Okay. Your next question is coming from Bill Broomall from Dowling and partners Bill Your line's life.
Great. Thank you. My first question is on tip tap and how you think about that business when we compare.
Two what we hear from a lot of other.
Ensure tax.
A lot of discussion is centered around contribution margin, which is pretty favorable but once you get down to the bottom line a lot of companies reported a big loss.
Coming through but it sounds like you're thinking about your model a little differently.
In terms of matching.
Trying to write at a profit could you maybe talk about how you're thinking about running tip tap versus what we might expect from other ensure techs that are out there from a profitability standpoint.
Sure Bill.
The best way of thinking about this.
Look at the U S homeowners.
Business that's there.
Got it on a national basis.
It's a $105 billion would be as I said earlier, but it's if you look at the collective.
Profit margins on that 105 billion is basically.
Our breakeven or very slight one or 2% profitability kind of business.
No.
If you just.
<unk> ended up with 10% market share of that youre, not going to get very far.
So that's just the nature of that business, if you're going to.
You take on a big chunk of that business.
You should figure out a way that you can say I have a material.
<unk> outcome and with the current players from having.
And.
Basically you come down to.
Two numbers that make all the difference in an insurance company.
Loss ratio unexpected ratio.
The expense ratio is corporate overhead and agent commissions and all those kinds of things.
That obviously the company controls.
On the much tougher one is the loss ratio.
And what you sort of talked about contribution margin and everything else as people generally.
We're not paying a whole lot of attention to the loss ratio, but anybody who has run on insurance company free and length of time will tell you that as of the toughest thing to improve over time.
And.
The amazing thing about what tipped up as Dewey.
Book is underwritten by computers.
And the loss ratio is an industry average.
<unk> points below industry average.
So you can imagine the industry at breakeven.
What tips have can do.
Is compete on the same space and have a 20 point advantage.
Most businesses if you had given a 20 point advantage over most of your competition.
And leads to some very favorable outcomes.
A lot of other people talking about disrupting the choice.
<unk> business.
Yeah.
Nobody has articulated or shown to your question.
That they can actually outperformed.
On the.
The loss ratio side, which is really the key thing you have to do.
And tip tap has done this not only in 2019, but in 2020 and pretty good scale.
That's the.
Uh huh.
Thats the Wow.
It's what everybody else is trying to get to <unk> already has.
As my General Counsel tends to tell me everybody else is talking about sending a man to the moon.
We have set a man to the Moon and brought on black safely on here's a picture.
Yes.
Perfect. Thank you that's helpful and maybe my <unk>.
Last one in.
Your prepared remarks, you talked about customer acquisition costs.
Where do you think that stance.
Could you give us a sense of.
Where your advantage might be on on that side.
Of the business.
Again, we've taken things that Luke.
<unk>.
If you could explain in very simple terms, if I've got a 20% advantage.
In the loss ratio category.
We do is we take some of those savings.
Some of that we share with the with the policyholder by charging rates that are lower than the competition, which is good.
And we take some of the other savings and we share it with our.
Our agency partners and people, who placed the business with our agents and we pay them materially above market commissions, replacing that business with us. So at the end of this because of this technology.
The <unk>.
<unk> is winning because we have better numbers.
But we share the wealth with our agents will get better commissions, and our policyholders, who get lower rates right.
We make it very simple, but it's a.
It's a win win win for all people involved with.
With tipped up and I'll build on that and one other item. There is also talk about being asset light or asset heavy as an insurance company.
We buy reinsurance.
We earned a.
State, Florida, which has to do that.
And.
But I will tell you that tipped up is five years old at this point if tip tap had never bought any reinsurance tipped.
Tip that would actually have made from a profit putting it differently we don't.
Offset losses.
Our reinsurers, we actually send on premiums.
On the fraction of which we get back to cover any cat losses, So EBIT, our reinsurers benefit from being associated with Tiptop.
That's what you call revolutionary.
Great. Thank you that's helpful.
And my last question just from Mark was there any development reserve development on.
In Q4.
No.
Great. Thank you very much.
Okay. The next question is coming from Ron Bodman from capital returns from please go ahead.
Thanks, and congrats again on a tremendous milestone with.
Net.
Progress.
In the financing.
Yes.
Paresh I think you've.
Sorry, I think you've mentioned in the past our 90% target combined.
For tip tap is my recollection, right and is that a sort of reasonable.
Target.
And sort of expectation weather.
Whether complying for the.
The next 12 months or so I think of it is aspirational.
Okay.
Hey, Ryan it's Mark I think I think.
9% is a is probably about right.
Sure.
The issue is just sort of where exactly we are in the growth because the policy acquisition expense or the customer acquisition is a little bit higher in the first year of a policy. So if you're in a year where.
We are that is higher than the combined ratio is likely to be a little bit less than that but as that normalizes out.
90%.
And possibly lower than that.
Brian Let me give you that same answer a slightly different fashion.
We can from what we're seeing on the business, we could already achieve 90% combined very easily.
We are doing is saying if that's what we haven't given.
The numbers, we're putting up.
Basically made a calculated decision to reinvest that additional 10% back.
Back into the business through rapid to grow more rapidly. So we are trying to maximize the rate of growth of tip tap while keeping it at a breakeven basis. So we are reinvesting that 10% to accelerate growth whenever we take our foot off the gas that 90%.
Pop right out.
Okay got you.
Yes tested $42 million in top line premiums in Q4.
I would think that.
That there is not real seasonality to it and that we should just keep seeing hopefully sequential growth is that is that a that's a good assumption isn't it.
Okay.
It is except you know we are we live in Florida and Hurricane season is from June to November.
So we are aware of that and we we had some seasonality to the book as to when we take on more business when we take on less business right because ultimately.
We do have to make good underwriting decisions yet.
It sounds like the.
You know you did UPC.
Assumption deal the quota share and how it runs off and how you mentioned in the.
Prepared remarks Paresh.
That.
100 of the 120 is really.
Earmarked for tip tap.
That.
It seems to me that youre going to meaningfully surpassed the $200 million premium number.
At tip tap this calendar year, when you incorporate sort of organic growth plus.
<unk> premiums that come over.
From those policies.
Am I right about that.
Absolutely yes.
We.
We continue to get opportunities advantages so.
We are always sort of tried to double tip tap size every year and I'd like to think that the 2021 target.
Is easily easily not only obtainable, but so passable and by a meaningful way.
Just because of the transaction the UPC transaction yeah.
Yes, it's a giant step forward.
Okay, and then lastly could you just talk a little bit about the operational.
Steep of tip tap because I know you've mentioned I think on the deal call couple of weeks ago about how you've done everything just sort of set it up separate could you describe a little bit more about that that's it from me as far as questions. Thanks.
Yes sure absolutely.
To really market alluded earlier in his comments about.
Tip tap being separately capitalized.
Almost running independently.
So really what we've done.
As part of the centerpiece transaction.
And people have probably seen the 8-K filing group have done in the last two weeks.
Effectively.
Every person.
Employed by the HCI group.
Either made a member of the tipped up insurance group are stayed with HCI group.
The only person who spans both groups is myself.
Everybody else is on one side or the other and really the reason for that is the insurance group is now being built up.
Yes.
You run and operate and we manage like a separate public publicly traded independent company with its own audited financials.
It's on balance sheet and everything else. So we are actively walking down that path.
And we're doing that because.
Having already come from a public company background. It's good governance tipped up insurance group already has a wonderful things like Sarbanes Oxley.
Financial controls quarterly.
And closings all built into it so we're trying to make sure we know.
To continue that.
Sure.
That's fundamentally what's going on we've taken it to the extreme of even separating board. So tipped up insurance group has its own board.
And.
HCI group has its own.
Ed.
In doing so the only come on board members across the two companies.
Self.
HCI and <unk>.
Chairman.
<unk>.
Generally by the name of Eric Hoffman, who represent Centerbridge on both boards right.
Okay. Thanks.
Again, congrats on tremendous thank you.
At this time this concludes our question and answer session.
I would now like to turn the call back over to ratio Swan singer who has a few closing remarks.
On behalf of the entire management team I would like to thank our shareholders employees agents and most importantly, our policyholders for their continued support and we look forward to updating you on our progress on the near future.
Thank you for joining us today for our presentation. This concludes today's call you may now disconnect.