Q1 2021 Jones Lang LaSalle Inc Earnings Call
Transcript of this conference call will also be posted on our website and.
The statements May.
<unk> about future results and performance plans expectations and objectives are forward looking statements.
Actual results and performance may differ from those forward looking statements as a result of factors discussed and the annual report on form 10-K of the fiscal year ended December 31, 2020, and and the other reports filed with the SEC.
The company disclaims any undertaking to publicly update or revise any forward looking statements.
I will now turn the call over to Christian Ulbrich, our President and Chief Executive Officer for opening remarks.
Thank you Chris.
Hello, and welcome to all of you joining us today as we report our first quarter results.
As discussed in our last earnings call, we entered 2021, where the cautious yet optimistic outlook on the ability to take advantage of the expected global recovery.
And are pleased to start the year with the strong first quarter.
Our strong results were yet again, driven by the continued hard work and dedication of the entire day Ll team and I.
I remain impressed by their ability to execute against ongoing rapidly changing and trying circumstances.
The continued to realize the benefit of our one channel L philosophy of bringing the best of <unk> line for all our services and products across geographies.
Turning to the market environment.
The global economy had modest growth and the first quarter.
Although highly concentrated and the small number of large economy.
And the macroeconomic outlook has improved meaningfully as the rollout of the vaccination and expand.
And ongoing global government stimulus programs outpaced initial expectations.
Setting the stage for more robust growth expected in the rest of the year.
Our research indicates global office leasing activity has remained subdued with global leasing volumes down, 31% compared with Q1, 2020.
EMEA showed relative resilience of the decline of 8% of the quarter by the APAC and the U S sort of a significantly larger declines of 26% and 45% respectively.
In comparison to the fourth quarter of 2020, which saw global leasing volumes down 43% per the quarter. It is clear that the trajectory is trending and the right direction.
The investment sales also continued to show signs of recovery.
And with global volume down 13% versus the same period last year following of 21% decline and the fourth quarter and 44% of and the theft.
And this reflects the steady improvement of liquidity and capital flows.
The signs so far lend credence to the belief that 2020, one will be the yield sustained recovery and expansion as the world begins to adjust to new normal.
Despite certain countries continuing to witness the devastating effects of the pandemic.
We expect the exploration of vaccination programs across the world.
It should lead to increased transaction activity and the second half of the year for many geographies.
Our first quarter results built upon and the momentum we closed 2020.
We believe these results reflect strong diversification across the business with exposure to a high growth areas like data centers lifestyle, and industrial and yet of increasing value proposition from Klein the <unk>.
The around technology and the sustainability.
And local currency consolidated revenue fell 4% to $4 billion and fee revenue declined 7% to $1 4 billion.
Adjusted EBITDA of one of them 90 million represented an increase of 96% from the prior year with adjusted EBITDA margin, increasing 700 basis points of 13, 4% and local currency.
And by discreet items of approximately 50 million and ongoing cost mitigation initiatives and a better than expected performance and all of our transaction based service line.
Our adjusted net income totaled $109 7 million for the quarter, resulting in adjusted diluted earnings per share of $2 10.
Our transaction based service lines continue to face broad based pressure as the result of the pandemic and our strong results of the quarter were buoyed by resilience and it slowly improving market conditions for capital markets and leasing.
Our property and facility management business also continues to demonstrate the strength, particularly in the Americas.
Our advisory consulting and other service line reflect the considerable growth from strong valuation of result, with Asia Pacific recording substantial gains of our Q1 and 2020.
Overall, we are encouraged by our strong first quarter results and are increasingly optimistic about the road ahead.
This quarter demonstrated the continued growth of all of our gel technology platform.
A key pillar of our strategy.
<unk> represents our ability to broaden the client access to leading edge technology and transform the real estate industry through innovation.
And you will continue to expand upon our portfolio of investment.
Focusing on strategic investments such as the low defect of the group's stock transaction and believe that the value of our portfolio will continue to yield considerable upside from J L. L. As demonstrated in the first quarter.
I will now turn the call over to count Brendan who will provide further detail of the results for the quarter.
Thank you Christian.
They're all I'm encouraged with the start of the year.
First quarter top and bottom line results exceeded our expectations and demonstrated continued momentum and the pace of the recovery. We saw in the latter part of 2020.
The outperformance versus our expectations was relatively broad based both by geography and business line within real estate services and also due to several discrete items and I will discuss in more detail later in my remarks.
Alright, adjusted EBITDA margin improved 700 basis points year over year.
Driven primarily by the discrete items and cost reduction measures that we instituted over the past several quarters.
Given the trends and our pipeline improving macro indicators and our view of the evolving market.
We remain cautiously optimistic on the outlook for the year, particularly the second half.
However, the global economic recovery remains uneven with continued uncertainty.
We intend to use our strong financial and competitive position to invest for growth and create value for all stakeholders.
Moving to a detailed review of our operating performance I'll remind everyone that variances are against the prior year period and local currency unless otherwise noted.
Our overall real estate services fee revenue declined 6% and the first corner and improvement from the 17% decline and the fourthquarter.
This was driven by a return to growth and Asia Pacific and of moderation and the pace of decline and both EMEA and the Americas.
The real estate services adjusted EBITDA margin was 12, 7%, which compares with eight 5% of your earlier.
Absent discrete items, which include $35 million of noncash valuation increases to investment by channel and all technologies and early stage prop tech companies and.
As well as and $8 million multifamily loan loss reserve release, this year and the $31 million increase to the corresponding reserve a year ago.
The real estate services, adjusted EBITDA margin would have been and relatively flat year over year.
Benefits from our cost reduction actions, largely offset the impact from lower transaction based revenues and investments and growth initiatives, including channel and all technologies.
Turning to the Americas the.
And the revenue decline and showed steady improvement on a sequential basis, primarily due to performance and leasing continued robust growth and property and facility management and of returned to growth and advisory and consulting.
But the Americas leasing a few large transactions pulled forward into the first quarter.
Our leasing platform is benefiting from diversification across asset classes, including the higher growth areas, such as industrial life Sciences and data centers.
In addition, our data driven and experiential technology platform is leading to increased client engagements and we believe and is a key differentiator.
Based on our leasing pipeline.
Client activity and our overall view of the market, we expect leasing activity to accelerate slightly more than a typical seasonality and the second half of the year the.
We emphasize closing rates and timing remain highly uncertain.
The Americas the office sector continues to be soft. So there are some early indications on improvement such as an increase from property tours.
According to javelin research the decline in net effective rents and offices across the major U S cities stabilized and the first quarter.
And approximately 13% since the beginning of the pandemic also after four consecutive quarters of declines.
Average lease terms increased albeit slightly from seven one years from six seven years.
The Americas capital markets growth trajectory was slightly impacted by the pull forward of some transactions from 2021 and two fourth quarter of 2020.
But we are encouraged by the underlying business fundamentals and signs of signing and the hardest hit sectors.
The Americas industrial sector remains strong and our multifamily debt origination and loan servicing businesses have done and resilient.
Encouragingly, our Americas capital markets pipeline continues to build.
From a profitability standpoint, the Americas adjusted EBITDA margin increased approximately 700 basis points.
Non cash valuation increases within our channel all technology investments and movement and the multifamily loan loss reserve were the primary drivers of the expansion.
Our cost mitigation actions taken over the past several quarters were mostly offset by the impacts from lower fee revenues and capital markets and leasing.
And EMEA fee revenue remains down year over year, though the rate of decline has moderated meaningfully from prior quarters and part due to partially lapping pandemic headwinds.
Gross and valuations advisory along with the relatively resilient leasing fee revenue continues to be more than offset by lower activity and project and development services and argue K mobile engineering business.
Continued robust industrial sector leasing growth was offset by softness and most other sectors.
We are encouraged by early indications of improving activity.
Material moderation and the EMEA capital markets the rate of decline was driven by improvement in the office sector, mainly due to a few large transactions and Switzerland.
In terms of EMEA profitability, the cost savings from actions taken over the past several quarters were more than offset by the lower fee revenue as well as the contract loss and the U K timing of expenses and investments and global growth initiatives driving of decline in the adjusted EBITDA margin.
Asia Pacific generated robust double digit fee revenue growth as activity picked up across most business lines and key markets with the region lapping pandemic headwinds.
Growth was particularly strong and capital markets due to the timing of several large transactions and the office life Sciences and data center sectors.
In addition, our evaluation the advisory business grew year over year.
Leasing activities are picking up and some markets, particularly in greater China, but the pandemic resurgence continues to weigh and momentum across the region.
On a global basis, our property and facility management service line continues to grow.
Led by new business wins and contract expansions and the Americas.
Including an uptick and reentry work.
Property and facility management has grown throughout the pandemic as corporate occupiers and investors CCAR services not only for higher building management standards, but also our broad view and best practices and reopening and the workplace.
Our corporate solutions business, the revenue grew 2% and strong growth and the Americas was mostly offset the ongoing EMEA of headwinds.
We continue to be encouraged by the secular outsourcing trend, especially as clients increasingly seek our extensive knowledge and breadth of services, including sustainability offered under our one channel of philosophy.
Turning to Lasalle fee revenue declined 17%, primarily on lower transaction fees and the expected absence of incentive fees.
We expect the lower level of transaction activity caused by the pandemic should continue and the near term.
We continue to forecast full year 2021 incentive fees of approximately $25 million with about a quarter of those heading into the second quarter.
The 8% decline and advisory fees was primarily attributable to the pandemic driven and AUM valuation declines.
Lasalle and assets under management grew about $2 billion or 3% from the prior quarter to total of $71 billion.
Lasalle and equity earnings reflect the $13 million of non cash valuation increases and our co investment portfolio.
Which compares with a $40 million decrease and estimated fair value of your earlier at the onset of the pandemic.
As discussed on our last earnings call, we allocate capital by adhering to our framework.
Maintaining an investment grade balance sheet.
Driving future growth through organic and inorganic investments and the business and returning 20% of free cash flow to shareholders over the long term.
And the first quarter, and we prioritized internal cash needs and investments in areas, where clients have increasing demand, which serves to enhance the attractiveness of our products and solutions.
We did not repurchase any shares during the quarter.
Shifting now to an update on our balance sheet and cash flow.
At the end of March reported leverage with 0.7 times within our targeted range and seasonally up from 0.2 times at the end of December.
Our liquidity stood at $2 $9 billion with 87% available on our $2 75 billion revolving credit facility.
We recently renewed the credit facility under essentially the same terms, while extending the maturity date three years to April of 2026.
And the renewal also included incentives linked to achieving certain sustainability goals.
The lower incentive compensation payouts from prior year performance and our ongoing focus on improving capital efficiency helped drive and nearly $100 million improvement and the free cash flow deficit compared to the prior year.
Looking ahead to the full year 2021, the pipeline and business trends I discussed paint a picture of the gradually accelerating recovery as we move through the year.
We continue to expect to operate within our 14% to 16% long term adjusted EBITDA margin target range for the full year.
We remain confident and our ability to meet our 2025 beyond targets are.
Our investments and near term and longer term growth initiatives, along with our continued focus on providing our leading data driven and technology enabled platform position us well to deliver for our clients and all stakeholders.
I'll turn it back to Christian for further remarks.
Thank you Karen.
As we look ahead the.
Outlook for the global economy is beginning to provide me with particularly of the optimism for the second half of the year.
He will be uneven and stagger the across geography.
The Europe and U K of progressing well with their vaccination of effort of.
The news out of India, and Brazil, instead of the state.
And we are taking concrete steps to support our employees and their families. During this difficult time.
We are also leveraging our global organization to ensure business continuity.
Overall, we see promising economic indicators of signs of pent up demand that could benefit general economic activity.
However share of research predicts that by Labor day.
The physical occupancy levels will top at least 50%.
Up significantly from the levels observed through the first quarter of approximately 15%.
We expect this year will see continued recovery and expansion even while the pandemic causes brought the waves of disruption.
Before we close I would like to provide and update on advancements and our efforts to create value for all of our stakeholders school of continued focus on environmental sustainability practices.
Central to our stated purpose of shaping the future of real estate poll that of world.
He is our commitment to sustainability.
Which we believe benefits not only our clients, but our communities and society as well.
And of the real estate industry impact of the environment and we continue to play a leading role in advancing of the focus on sustainability within the quarter of business landscape.
As the company, we are successfully ensured that our goals and targets for greenhouse gas reduction.
Safety and diversity and remain at the center of all the strategic decisions.
And the integrating our long term sustainable growth objectives throughout our business.
Regarding environmental sustainability, I would like to share a number of development.
And signing the climate pledge, we announced our aim to achieve net zero carbon emissions by 2040.
Across all areas of our operations, including the client side, we manage globally.
We are continuing to partner with Bloomberg Green for a second here to address critical issues related to climate and sustainability.
First of all of the strategic partnership with the World Economic Forum and a member of the CEO of lives of plug of meter we.
We have committed to publicly disclose performance against sustainability goals.
Can you confirm one blockade as our new UK flagship offers a free presents an opportunity to achieve one of the low sustainable the and technologically advanced workplaces and the U K.
Lastly building on Karen's comments.
Product formalized our commitment to environmental sustainability as we successfully extended the maturity of our revolving credit facility.
Living within our industry by integrating select the incentives to be achievement of certain sustainability goals.
And we'll continue to proactively execute against our environmental sustainability strategic roadmap and raise the bar and acting as a responsible corporate citizen throughout our communities.
As we emerge into the next normal we remain focused on our employee safety and supporting our communities and serving our clients.
Our first quarter results, a testament of the benefits of our global and scale platform.
And they are emerging from this period of stronger company with more integrated services and expertise, allowing us to capitalize on new opportunities because of our continued investment and our technology and platform.
While it's clear that the post pandemic growth will look much different and we are in car.
Average by the fact that clients are seeking the high quality services meaningful insights and global connectivity and consistency of gel and is uniquely positioned to offer.
And so if our clients with best in class services, and the body, while simultaneously bolstering our strong financial position and continuing to make intelligent investment aimed at enhancing long term value for all stakeholders.
Operator, please explain the Q&A process.
At this time I'd like to remind everyone and mayor to ask the question Press Star then the number one on your telephone keypad well pause for just the moment to compile the Q&A roster.
Your first question comes from Stephen Sheldon with William Blair. Your line is open.
Hey, good morning.
And I guess first year and Americas leasing Karen I think you said, you expect and leasing activity and two two.
And to accelerate slightly more than the typical seasonality is that comment about the normal sequential improvement and absolute revenue of just wanted to make sure I understood that comment is I think leasing revenue. If you go back 2017 of the 2019 and the Americas increased about 30% to 40% sequentially from the first quarter to the second quarter. So can you just give some more detail on that kind of.
And then and then how we should interpret it.
Yeah, good morning, and Thats really a.
Kind of unrelated to the second half of the year and the seasonality and the second half of the year.
Okay got it.
And then.
And I guess it would be great to get some more detail on the restock investment and kind of how you envision this fitting in with the other solutions I guess, how will you be leveraging kind of that platform. When you think about your interest.
And the internal operations going forward.
It's Christian here good morning.
Well pretty much all of our investments in all of them say lot of technology.
Technologies are directly connected to.
And our opportunity to bring that product to our clients.
And the same is true for the roof stock.
Our work, we are doing well, we see an opportunity to help.
Help accelerate the product within our client base and within the Americas, but Eaton.
All of the popped up to bring it over to Europe and so on.
That is a very attractive from both sides of the rooftop and for US that we can really accelerate this great product into a much product line base.
Yeah.
Okay, great. Thank you.
Your next question comes from Rick Skidmore with Goldman Sachs. Your line is open.
Good morning. Thank you Christian can you just talk about how youre thinking about the long term impact of working from home on office demand and.
And and how that might impact the leasing business over zone. Thank you.
Sure.
One of the most asked questions and.
And the path of I've always said it.
And quite early to the final comment I think we're kind of now close to get much more clarity around that topic and and for many of those who kind of expressed views and the path that the belief that they will be and absolutely fundamental shifts the.
Post COVID-19.
I think most of the retreat and perhaps from that statement.
And speaking I think the changes will be much less than people are expecting.
We have older on how hard of us to constantly work from home and so.
Most of the employees would like to come back to the office and do like the flexibility of working once and the wild from home, but directly they wanted to get back into the office and so the the materially impact on space usage as we said before will be relative lineup.
Because if you are thinking from the space because you need network that you need much more collaboration space and other ways of making the office.
So I think place where people are able to get kind of the best.
All of them and all that creativity and the experience the brand and so.
This is something where we are pretty optimistic the numbers are coming close to what we saw before the pandemic.
Great. Thank you and then maybe just a question for Karen.
Excuse me.
Can you talk to the amount of cost reduction and you expect to be.
Permanently in place as you go forward and how we should think about sort of the operating leverage.
As we go forward. Thank you Sir.
Sure Good morning, Rick and.
Good question. So first just to take a step back.
To remind everyone of the two different buckets of our cost optimization programs that we had last year. The first was the $135 million of fixed compensation and benefits.
Reductions on an annual run rate basis, and the second was the category of non permanent expense savings that we realized $330 million and 2020 and first of all talk about the the fixed compensation and benefits and a reduction of that $135 million.
To date, we have realized $93 million of that number over the last few quarters and the remaining 42 million and will primarily flow through and the second and third quarter of this year and then moving to the second bucket of expenses the non permanent reductions of that $330 million you might recall.
And I described roughly half of that would not recur and any way and 2021, because they were due to discrete actions taken through both government and programs as well as temporary reductions and our fixed compensation and benefits of the other half of comprises items more such.
And as T and E and marketing expenses, and we continue to expect those to recur and gradually as the business activities resumed to normal and for reference and the first quarter, we still had approximately $46 million of savings.
And from items and that category again, primarily P and the marketing.
Okay. Thank you.
Your next question comes from Tony of Pony and with the Jpmorgan Securities. Your line is open.
Alright, thank you.
I guess sticking on the question for Karen around margins and EBITDA you'd mentioned, the 14% to 16% range and just wondering if you can give a little bit more color on puts and takes given the strength and Warren and Q because it would seem alright.
What would keep you our desk from being at the top end of of that of that range given again the strong warning here.
Sure and Marine Kony, Great Great question, and it's good perhaps we take a step back given the different puts and takes that you mentioned.
And.
Take everyone through.
The margin walk.
First just to really highlight that the.
For the real estate services business absent the noncash items and both the current quarter and the prior year, our margins are flat on lower revenue and.
And two key points I want to highlight behind that headline the.
First of as I, just talked about is that our cost optimization actions are delivering as planned and the second thing to highlight is that we are making purposeful investment in our business.
We talked about the last several quarters.
And <unk>.
Through into more detail given the various puts and takes you referenced I suggest we turn to slide 10 of the supplemental slide deck that we released this morning.
And we can talk through those and a little bit more detail.
And I'll go from right to left and the way I describe these.
So starting all of the late to the right we've isolated.
And the noncash items bar.
And the specific cash.
COVID-19 related items that we took in the first quarter of last year and and this quarter was that represents a partial reversal of those items.
Moving next to the Alaska The channel all technologies bar of 90 basis points.
And includes the noncash valuation increases associated with the Jay and all the technologies investment, partially offset by our investments and the tail of technologies platform.
And again to the left now Lasalle the 40 basis point decline.
It represents the anticipated absence of incentive fees in the quarter compared to prior year as well as the decline and.
Transaction volumes, which flow through to the reduction and transaction based fees.
And then finally to the left we have our real estate services margin at 100 basis points of improvement.
Year over year, where we had the cost mitigation actions more than offsetting the revenue decline. So that's kind of more detailed attribution analysis of the overall enterprise level and.
And behind my comments earlier, so hopefully that's helpful and understanding that there's a lot going on and the first quarter clearly.
To break that out of and a bit more detail.
Okay.
Thank you for that.
And just a couple of other ones.
Can you talk about India.
And the profitability, there and whether you think the mobile engineering.
Just rebound post COVID-19 and that will be back to a better level of profitability or is that of business that you have to revisit.
And for long term profitability.
All of it.
Hi, It's Christian good morning.
And.
The mobile engineering and business in the UK, where that's where we have that business is super dependent on the op and buildings and in general the open sites.
And that happened in the case of the Pos So frankly speaking.
And you can kind of across the the numbers, but we are still impressed how well we are able to hold up to that business. It was all kinds of actions to mitigate all of it.
The cost of impacts we have but as the UK is now at the point of opening up again, we are expecting a relative quick rebound in that mobile engineering business. As we stated in an earlier quarterly calls we invested heavily into the technology and the <unk>.
The oil productivity of the business is now at a very different level than it was call and so all of them and the bouquet is planning to be fully open the Kim.
From the June onwards, and there will be a lot of kind of pent.
Pent up demand and EBIT.
And from our COBOL Engineering services, So you won't see that and the second quarter that the people there.
And you see the shipping and the third and the fourth quarter of this year.
Okay.
And then Christian can you give us a view of of.
And your thoughts on co working and flexible.
Space and and J O L. How you C J O L and that space going forward.
Well I think flex space and it's one of the book with Us.
The COVID-19 crisis.
You were pretty optimistic about the area.
And for because the chip.
The survey and.
And then.
Which clients like the soul to have the flexibility and.
And that need has only become strong the during the COVID-19 experience and the lockdown experience. So.
And we see it.
Going forward to Athens and.
Nature building, having a couple of.
Flex spaces in the building of co working spaces, and the building and and.
Probably the whole lobster occupy us will want to flex parts of that space and they can do that in house.
And they can do that with the in house with external provide us.
Just and in the states of external providers. So there is room for many variations.
And we have particularly the standard so far but we are focusing on providing the services.
Services to our clients and so there are a lot of flex space services offered by us as the white labeled service to all of our players.
We are not planning.
To start of our own brand and label.
Around the space.
Yeah.
Okay.
And the help.
And again to ask a question. Please press Star then the number one on your telephone keypad and your next question comes from of Jade Rahmani with keeping the beat your line is open.
And.
Thank you very much I'm just looking at the 2021 comments you made and the macroeconomic outlook you provided and the slide is it reasonable given the comparables of the year ago period two project.
You know mid to high teens growth and fee revenue.
For the rest of the year.
In the morning, <unk>, and we're not going to provide that level of specific guidance at this time.
Okay. Thank.
Thank you very much.
One of your peers introduced and metric called net revenue, which they believe is is the more accurate representation of revenue the fever since there is some.
And portion.
The pass through that has a modest margin I was wondering if you think.
That metric and useful and then that's something <unk> considered this thing just to be more comparable.
With that Peter.
Yeah, we just learned of that last I think it was Thursday, when that was released and we're performing our internal analysis on it and trying to understand the differences there and.
And you know, what we'll do and complete that analysis before we share of you on that.
Okay. Thank you very much.
And the J O L technology side I was wondering if there was an accounting change or something.
And the methodology of that caused the about the increases.
And if the values were to change and decline in that sector could we expect.
The negative fair value marks going forward.
Yeah sure.
And no accounting changes and.
This was the first quarter, where we started to realize the benefit of the strategic investments. We've made over the last couple of years and yes. They are they are fair value marks of that they can move both up and down based on valuation.
Okay. Thank you.
And the capital market side, I know that HFF.
Didn't do very much business and the GSE multifamily space with Fannie Mae and I believe that Oak Grove had a Fannie Mae license historically, the margins with Fannie Mae of very strong because of risk sharing is that in the area of the business and which.
Hff's brokers have been gaining traction with the combination of the platform of jello husband, gaining traction.
On the Fannie Mae side.
Yeah, absolutely I mean, this was one of our.
The benefits of that and I'll show that we could use our existing on EMEA I mean net.
Our business and not stuck with the HFF, one where they have to use another provider who was carrying the license. So we have moved that business over.
And that part of our business is growing very very fast and also the.
The ongoing service of seats, which are coming from that business, which are fully annuity.
Doing very nicely.
Thank you and then and lastly, I wonder if it's possible to quantify either of the historical percentage of office within capital markets and leasing or perhaps in the.
The most recent quarter.
And what office was a share of the total transaction.
And it's very easy.
We have on the on the overall global business.
On the leasing side of office. It is about 50% on the leasing side and about 25% on the office of site and the and the first quarter and.
And and the U S. We of slightly less exposed to offices, because we have a much larger and.
Industrial sales.
Yes.
And with and in APAC, we are much more focused on offices.
And and less on the other asset classes of all what we have seen is that.
And our tendons offices.
Yes.
The reduced over the last couple of years as we have built.
Very strong and <unk>.
Just real business and then on the capital market side of Super Super strong residential business, which is now globally now more than one third of our capital markets revenues is coming from the residential side.
Meaning meaning of the multifamily side.
Yeah, you would call it into the U S multifamily, but theres also residential business, which is non multifamily.
Multifamily, we have in and Europe and Asia also.
And this is around single of partners.
And so if the variety of book, so which are falling and the residential.
And so at least.
Spoke earlier about our room stock.
All of that but also then.
The leasing business.
Thank you very much.
Yes.
And there are no further questions can I part of time I'll turn the call back over to management for closing remarks.
Yeah.
Oh, that's a very thought no more questions that's great [laughter].
And that means that our number of seem to be very very clear.
No.
We will thank you very much for participating.
Participating in todays call again before we close I'd like to take a moment to announce that we will be hosting a wet cough for analysts and investors with many of them really our global Chief Executive officer of corporate solutions that will take place on May 20 years.
So and and about two and a half weeks from now.
And two weeks from now.
The details of the event will be provided over the coming.
Day, so altogether on behalf of the entirety of the LTE and we thank you all for participating on the call. This morning, and counting and I look forward to speaking with you again following the second quarter.
Okay.
This concludes today's conference call you may now disconnect.
Okay.