Q1 2021 Eagle Bulk Shipping Inc Earnings Call
[music].
Greetings and welcome to the Eagle bulk shipping first quarter 2021 results conference call. At this time all participants are in a listen only mode. Later on we will conduct a question and answer session and instructions will.
At that time to ask a question during the session you will need to press star one on your telephone as a reminder, this conference call is being recorded I would now like to turn the call over to Gary Vogel, Chief Executive Officer, and Frank de Costanzo, Chief Financial Officer of Eagle bulk shipping Mr. Vogel you may begin.
Okay.
Thank you and good.
Good morning, and I'd like to welcome everyone to Eagle Bulks first quarter 2021 earnings call to.
To supplement our remarks today I would encourage participants to access a slide presentation and is available on our website Eagle ships Dot com.
Please note that part of our discussion today will include forward looking statements. These statements are not guaranteed of future performance and are inherently subject to risks and uncertainties.
Should not place undue reliance on these forward looking statements. Please refer to our filings with the Securities and Exchange Commission for a more detailed discussion of the risks and uncertainties that may have a direct bearing on our operating results our performance and our financial condition. Our discussion today also includes certain non-GAAP financial measure.
<unk>, including EBITDA, adjusted EBITDA and TCE, please refer to the appendix and the presentation and our earnings release filed with the Securities and Exchange Commission for more information concerning non-GAAP financial measures and a reconciliation to the most comparable GAAP financial measures. Please turn now to slide five.
Dry bulk rate saw continued and significant upward momentum in Q1 as trade demand continue to increase thanks to both the ongoing reopening of economies and general restocking of inventories as well as the effects of unprecedented amounts of fiscal and monetary stimulus getting put to work around the world.
The Baltic Supermax index averaged 16006 hundred $33 and the first quarter up almost 6000 or 55% as compared to Q4, representing one of the best Historic quarterly increases on both a dollar and percentage basis.
Asset prices and followed suit, whereas an example values for 10 year olds Supermaxilla are up about 35% on the quarter.
This represents the third highest percent quarter on quarter increase and the last 20 years.
First two being in early 2004 at the beginning of the two thousands and dry bulk super cycle.
I think it's important to highlight the values are moving higher on the back of a significant increase and the volumes of sale and purchase transactions as well.
Year to date over 115, Supermac softer Max vessels had been bought and sold implying an annualized run rate of almost 400 ships. If maintained this would be by far the largest amount of shifts transacted within a year.
Notwithstanding the dramatic increase and asset prices over the last few months. The chart on this slide would indicate significant potential upside remains.
Spot rates are around 10 year highs of prices remain well discounted to 2010 levels on spot rates were similar.
Assuming a return to 2010 type levels, we could see further upside and second hand values of around 50%, which would of course translate to increase NAV.
Please turn to slide six.
As mentioned and our last earnings call. We purchased a total of seven vessels between late November and early February.
Acquisitions appear to be well timed with current value is up 35% on average are around $34 million basis recent transactions to date, we've taken delivery of four of these ships with the remaining three expected whoever between late May and June.
Pro forma for pending deliveries our fleet now totals 52 ships, 87% of which are scrubber fitted and overall, averaging eight nine years of age.
Please turn to slide seven per view of the quarter.
Eagle generated a net TCE for the first quarter of 15124, the highest level and more than 10 years as we've discussed in previous calls it's challenging to catch and beat a rapidly rising market as a percentage of days are fixed and advance have on.
Often said I'd love to have to explain why we didn't beat a market that shot up 10000 over a few months and that's exactly what has happened.
Looking ahead, the strong upward momentum and the market has continued into Q2.
Given our short duration exposure and our active management approach to trading on ships, we've been able to successfully capture this move on.
As of today, we have fixed about 71% of our available days for the second quarter had a net TCE of 20100 per day.
Please turn to slide eight.
In terms of operating performance, we generated $31 $5 million of EBITDA, representing a 40% improvement over the prior quarter I believe this increased performance really underscores the significant operating leverage inherent in our business with that I'd now like to turn the call over to Frank who will review.
Our financial performance.
Thank you Gary.
Please turn to slide 10 for a summary of our first quarter financial results.
The.
And improvement in the chartering market and our short duration profile drove our topline growth and Q1 with.
With revenue net of both voyage and charter hire expenses totaling $61 5 million and.
And increase of 23% from the prior quarter.
Net income came in at $9 8 million for.
For the first quarter, our most profitable quarter and more than 10 years.
Earnings per share or EPS for the first quarter was 84 cents on both the basic and diluted basis.
Adjusted EBITDA improved in Q1 coming in at $31 5 million as compared to $22 million and the prior quarter and $18 8 million for the first quarter of 2020.
Let's now turn to slide 11 for an overview of our balance sheet and liquidity.
Total cash inclusive of $4 5 million and restricted cash was $80 7 million at the end of Q1, representing a decrease of $8 1 million as compared to the year and.
The decrease in cash was primarily a result of the $7 8 million principal payment on the ultra coat debt facility and the repayment of $15 million for the Super senior revolving credit facility.
In addition, we paid $47 7 million for the acquisition of three vessels plus a further $4 7 million for advanced deposits on four vessels expected to be delivered and the second quarter of 2021.
The outlays were offset by cash provided by operating activities of $14 3 million and $55 million drawn from the ultra cold revolving credit facility.
Total liquidity remains strong at $119 7 million at the end of Q1.
Total liquidity is comprised of total cash of $80 7 million and $39 million and undrawn revolving credit facility availability.
<unk> million on chip Coe and $24 million on the Holdco Rcs.
As previously reported we have funded the acquisition of one vessel with restricted cash. In addition, we have secured new debt facilities totaling $51 5 million for six of our newly acquired vessels.
We intend to draw down on these facilities as the vessels are delivered to us and as of the date of this earnings call. We have drawn $29 5 million against three ships.
Total gross debt excluding debt issuance costs at the end of Q1 was $507 7 million and increase of $32 2 million from the prior quarter.
The increase is due to the $55 million, we drew down on the ultra <unk> revolving credit facility offset by principal repayments of $7 8 million.
And on the ultra Kodak facility and the repayment of $15 million on the Super senior revolver.
Please now turn to slide 12 for an overview of our cash flow from operations for the first quarter 2021.
Net cash provided by operating activities was $14 $3 million and Q1.
Cash flow was strong in the quarter on the back of improving charter hire rates.
The chart highlights the timing driven variability that working capital introduces to cash from operations as depicted by the difference between the dark blue bars, which are the reported cash from ops numbers and the light blue bars, which strip out changes in operating assets and liabilities, primarily working capital as the chart demonstrates the volatility.
Caused by working capital largely evens out over time.
Please turn to slide 13 for a Q1 'twenty one cash walk.
This chart lays out the changes and the company's cash balances during the first quarter.
The revenue and operating expenditure bars are a simple look at the operations. The net of these two numbers is positive $33 million, which is close to our adjusted EBITDA number.
Moving to the right, we incurred $5 million of drydock costs and the quarter.
The $53 million for vessel S&P represents the acquisition and three vessels for $47 7 million plus deposits of $4 seven paid for four additional vessels.
And vessel improvements of $300000.
We repaid $15 million drawn from our Super senior revolving credit facility and drew down $55 million from the ultra co debt facility revolver.
And we paid $12 million and debt principal and interest and the quarter.
Let's now review on slide 14 for our cash breakeven per ship per day.
Yeah.
Yes.
Cash breakeven per ship per day came in at 11000 and $101 for the first quarter.
Vessel expenses, excluding certain one time nonrecurring expenses related to vessel acquisition and sales came in at $4894 per ship per day and Q1.
We continued to face higher operating expenses weighted to the COVID-19 pandemic as we are incurring higher lodging and transportation costs related to crew changes.
Drydocking came in at $1148 per ship per day, and Q1 $364 higher than prior quarter on an increase and the number of Drydocks completed and the quarter.
Cash G&A came in at 1006 hundred $26 per ship per day, and Q1 down $198 from Q4.
It is worth noting that our G&A per ship calculation is based on our owned vessels, whereas we operate a larger fleet, including our chartered and tonnage.
If we were to include the chartered in days and our calculation G&A per ship per day would decrease by about $221.
Cash interest expense came in at 1005 hundred $73 per ship per day, and Q1, which was marginally higher on a decrease and ownership days in the quarter.
Cash and debt principal payments came in at $1860 per ship per day, and Q1 $813 lower than prior quarter.
The decrease is attributable to amortization repayments on the Norwegian bond debt, which are only paid semi annually and Q2 and Q4.
This concludes my comments I will now turn the call back to Gary.
Thank you Frank Please turn to slide 16.
As I indicated earlier and the call spot rates are at the highest levels and over 10 years. During Q1, the Atlantic Supermac market average 2300, $98 outperforming the specific by over 35% roughly in line with long term historical averages and strengthening the Atlantic market was broad based.
But in particular and robust grain shipments to China pet Coke from the U S and manganese ore from West Africa helped drive increased demand.
More recently, it's interesting to note that the Pacific market has been outperforming the Atlantic since late March and is now about 25% higher.
Although Pacific outperformance occurs from time to time it tends to be during weaker markets. The fact that we're seeing this phenomenon and a robust rate environment is due to a confluence of events. Firstly, I think and underscores how strong trade volumes within the sub region is with Chinese steam coal imports being a significant contributor.
With coal prices, reaching multi year highs and domestic demand elevated Chinese loosened import quotas in order to bring and seaborne imports and with the Chinese effective ban on Australia, and imports still ongoing exporters, such as Indonesia, and Malaysia have been benefiting which is positive for super Max and ultra Max tonnage, which tend not to participate.
Japan, and the Australia and trades and addition, as a result of the booming containership market to Pacific has been supported by spillover trades typically carried on container ships. For example, we recently carried cargoes such as bagged cement from China to Guatemala, and bagged fertilizer to Peru and Chile.
And while Pacific loading as a front haul market for container ships. These trades represent backhaul routes and the dry bulk world, which has helped to push rates to levels above those in the Atlantic.
These factors notwithstanding we do expect the Atlantic market to strengthen over the next month or so as South American grain export season comes fully on line with robust South American exports forecast it.
Please turn to slide 17.
Fuel prices continue to trend higher on the back of increased demand for oil products.
Higher fuel prices tend to be positive for spot rates as ships slow down to become more efficient effectively taking capacity out of the market. In addition, and as can be seen on the chart is a strong correlation between underlying and crude prices and spreads between high sulfur fuel oil and very low sulfur fuel oil.
Current spreads are around 110 with forwards for Cal 'twenty, two trading around $130 per time as.
As mentioned earlier, 80% of our fleet scrubber fitted so widening fuel spread is particularly beneficial to eagle.
As the global economy continues to recover we expect further upside pressure to both fuel prices and spreads both of which should be beneficial for our business.
Please turn to slide 18.
Net supply growth increased slightly in Q1, a total of 121 dry bulk new building vessels were delivered during the period up about 37% quarter on quarter, but down 8% year on year, partially offsetting this a total of 35 vessels were scrapped during the same period.
In terms of forward supply growth. The overall Drybulk order book now stands at a historic low of just five 6% for 2021 dry bulk net fleet growth is expected to come in at two 8%. This assumes scrapping of roughly 10 million deadweight tons, which would be 33% and less than last year primarily.
Italy as a result of a stronger rate environment.
Total of 47 dry bulk ships were ordered during Q1 down by roughly 28% as compared to the quarterly average for last year.
In addition, two reasons, we have discussed previously such as higher cost of financing and uncertainty of future emissions regulations. Two notable factors I've entered the mix, which should be helpful to limit ordering and future fleet supply.
Firstly, new building prices and increased meaningfully in the past few months with Chinese Ultra Max is now seeking 27% to $29 million per delivery, primarily and starting in mid 2023 and beyond prices and increased due to rising costs for inputs, including steel, but also due to a lack of shipyard capacity that is <unk>.
And quickly due to the pace of ordering and other shipping segments.
As an example orders for large container ships had a record over the past few months with more than 200 ships ordered totaling over 21 million deadweight. This combined with announced orders for other large and complex vessels such as dual fueled vlccs has helped to fill the yards order books with shifts that take considerably longer to construct.
And typically are more attractive for yards to build please turn to slide 19.
Global growth expectations have been revised upwards since our last earnings call, reflecting a normalization and activity. Thanks to the expected impact of vaccines and increased stimulus.
And that is now estimating that global GDP contracted by three 3% and 2020 and is projecting a recovery of 6% and 2021.
Please turn to slide 20.
Dry bulk demand growth has been revised significantly upward as well with 2020 now estimated to have contracted by just one 6% for 2020, one forecasts are indicating trade demand growth of positive three 8% as compared to last year.
Notwithstanding significant challenges in some regions with COVID-19, and lingering uncertainty we remain optimistic for the continued normalization of trade demand and CRM market being a beneficiary from stimulus measures, which are already being put in place around the world with that I'd like to now turn the call back over to the operator and answer any.
<unk> that you may have operator.
Okay.
As a reminder to ask a question you will need to press star one on your telephone and so.
Withdraw your question chip.
Key flow.
And finally compile the Q&A roster.
Our first question on comes from the line of Omar <unk> from Clarksons Plateau, you may begin.
Hey, guys good morning, Frank and Gary.
Good morning.
Good morning, Yes, nice results, obviously for the quarter and definitely looks like some really strong ones coming up here and.
And just wanted to ask maybe about the fleet.
And Eagle here the past several months have been fairly active fine tuning. The fleet you sold some of the older ships, a while ago and you've been replacing them with these sub and newer vessels.
And as you highlight though as it turned out to be very well timed.
And considering what the S&P market has done since.
<unk>.
You spent just under $100 million on those vessels and they're probably worth closer to $1 40 and.
No.
And you were pretty active and the fourth quarter and into February but over the past three months or so at least from our side on the on the outside it looks like you've kind of quieted down.
Acquisitions.
Where are you at the moment in terms of the fleet do you still expect and be busy on the acquisition frontier and the coming months.
Yeah, well thanks for that I mean, it's fine and we don't feel like we've been quiet, but youre right. We haven't we haven't and acquired any more ships since since February and the last few months.
As I said and are in the prepared remarks, we think that asset values are trailing based on on the current market and really the most important thing for that is the forward curve, which continues to push up next year is now trading close to 15 and 2023 is moving up to May 12, So as people get more confident.
And the forward market, we think asset values are.
Potentially considerable upside. So we are we are looking as we always do we're looking at further acquisitions, we feel comfortable where we are with our 52 ships and we only have three ships remaining that are over 15 years old ultimately those are sales candidates as the other older ships have been but really on our mind, it's about it's.
About obtaining fair value based on where we think the cash.
Cash flow generation is for those ships and the forward curve. So we're not there yet, but ultimately those ships likely will be monetize and very likely will continue to acquire ships on a targeted basis.
Thanks, and that makes sense and.
And you brought up the assets states and I think it's interesting given rates overall on the spot market on much stronger assets.
It is a much more liquid and we're seeing a bit more time charter activity, so liquidity, there and as I look at the results.
It looks like you were trading business you had on average charter and cost and say just under 13000, a day, but you earned 15, a little over 15 fleet wide. So call. It day 2000, a day spread and.
And that looks like and compares to something and the $200 per day and several quarters in the past.
And maybe first thing first question just on that is is that a good way to think about the performance of the trading business I'm, just looking at the TC and average rate versus kind of the overall average you've gotten for the fleet.
Yes, I would actually caution that because it's a it's a very dynamic model and <unk>.
It includes.
Derivatives that we use to hedge away market risk and keep optional periods and based on market development, obviously and an upward rising market you tend to declare options and keep ships longer. Conversely, you don't and a falling market I think if I were to be trying to figure out the the premium I would look at the historic and apply.
And some percentage of that that I was comfortable with going forward, but but on a specific number of ships and margin.
There's too many variables that come into play.
Yes.
That makes sense, thanks, and I guess, yes.
Do you think because of all the liquidity that we are seeing and the market do you think that this trading piece is going to start to become a much bigger element.
Our eagle going forward or do you think youll ramp that business up.
For us.
It's always about risk reward every position, we're always looking to arb between a physical shape of cargo potentially using a derivative.
But it's really about risk reward, where we see the value of that trade. So given the volatility and theres more opportunities to trade, but again. It also depends on as I said, you know what the risk profile is of that so on <unk>.
Likely I think we'll get back to levels. We saw in terms of charter and pre COVID-19. We are still not there yet and that was really hampered last year. When it was all about just keep and cargo and keeping your own shifts moving I think I think you will see some growth, but it's not growth for growth's sake.
Just for the benefit of.
I know you know, but for the benefit of others listening, we don't value from our charter and business based on volume at all ultimately it's about a net P&L that gets applied to our own fleet. So we're only doing it not for volume sake, but if we can trade at that around and increase the overall value of our own on tonnage and.
And we do think that people on Eagle, because where we're and owner of Super Max on Ultra Max vessels, and then we try and build on that on that.
Net earnings over and above index returns, but we're not going to build a separate.
Operating arm.
That's becomes call it outsized to our owning.
Owning possession.
Got it.
Pretty clear.
Thanks for that and I'll turn it over great. Thank you.
Yes.
Our next question on comes from the line of Randy Givins from Jefferies. You may begin.
Howdy gentlemen has gone.
And Randy Randy.
And so I guess following up on that with the forward curve being pretty robust and obviously, you've given pretty strong quarter to date rate guidance at a 10 11 plus year high for that 71% for <unk> were there any.
Short term or medium term time charter is locked in and then obviously with the forward curve still elevated will you look to do any of those six two and maybe 12 months time charters.
Yes, so we don't we don't typically disclose our our chartering book.
Book and charter out its all part of our mix.
As I've said before you know we prefer to operate our own vessels on voyage basis, and what have you having said that if we're paid fair value for rewriting a ship on time charter for a short period versus selling and FFA to lock and a revenue stream. Then we'll do that I mean, as an example, I'll give you one we fixed one of our one of our ship.
<unk> recently, Singapore Eagle for minimum six to about eight months to try and limit the re delivery window to a minimum six instead of about at <unk>.
24000, but if it re delivers in the Pacific at that 27000, and so just to give you. An example, we do revert our ships.
As part of our portfolio approach.
But it's not our go to move so it's a combination of a voyage business time charter, mostly short <unk> and.
And the mix of all of those but we're definitely with and elevated forward curve we are.
Managing the book going forward and walking and certain cash flows but at this point beyond that I'll leave it to the quarterly guidance within the quarter that we've provided.
Got it okay and.
And then obviously on the balance sheet front continuing to improve you've added some new debt you've closed on that and think is $35 million credit facility. So as that building liquidity solely for more kind of acquisitions or at this point are you looking to further delever the balance sheets or paying down debt and if the latter do you have any kind of on.
Net debt to alone kind of leverage ratio target.
Yeah, well I mean, the answer is we come in everyday asking ourselves, what's the best allocation of capital and as you mentioned given the guidance you know there's significant deposit positive cash flow is at the moment. So I mean, one thing is definitely Delevering. We were we were positive going into <unk>.
And in 'twenty, and and then and then we had COVID-19. Unfortunately, having a stance with undrawn revolvers and on unencumbered assets couple of ultra matches that we put bank debt on enabled us to go through the pandemic without taking extraordinary measures or anything that was <unk>.
Expensive detrimental we put we put leverage on at LIBOR plus $2 50 on to that was all from axis. We wanted to get back to that kind of defensive stance and I say defensive and a sense that having that dry powder against what I think is what we've deemed to be and appropriate measure of leverage but as we go forward. We're looking at opportunities as I said, we think there is.
Upside and asset values, and we look to Opportunistically continue to renew and now grow the fleet, but delevering is definitely something we want to do you will note on the last three ultra matches.
On the debt that we brought on as a revolver and and so I think long term you would see we're not long term, but I think aside from our our traditional revolver. We had I think you'd see us look to pay that down and once we did that on those three ships you would end up with unencumbered assets, which is something that and my experience and dry bulk its always good to.
And have unencumbered access there they are essentially a performing proxy for cash in many respects and I think that's a good thing to have and a business that sometimes surprises to the downside.
Yes.
And it makes sense time, well that's it for me. Thank you.
Thank you.
Our next question on comes from the line of Liam Burke from B Riley you may begin.
And good morning, Gary Good morning, Frank good.
Morning, Liam.
Gary you mentioned on your prepared comments that there had been some offsets positive offsets.
And taking some container cargo on the on the dry bulk.
Is that a meaningful shift and is that sustainable.
Sure.
Well I'll start with the bladder part it's a good question and I think I would defer to the comments from the container.
Karen like Maris, saying they believe that this will continue I believe into the fourth quarter was a statement and other other players and that's not our that's not on arena, having said that it's definitely meaningful I mean, when you see ships' fixing from the far east into the Atlantic at $25000 and our size.
And that those are numbers that historically traded at.
Sometimes call it 40% of the market even less so so youre seeing on total shift and that the positive is it's not to the detriment of Atlantic and simply at the Pacific market is elevated and I gave some examples of those so I think it's sustainable as long as we see this dislocation and the container market and but.
How long that goes like I said, not really our area but.
And interested and a reader of everything that comes out of the container world in that regard because it is having a profound effect on both our rates, but also our trading patterns.
Great and on the operating expenses I think Frank mentioned that there was some COVID-19 related increases do you see once those correct I know it's difficult to continue to drive down operating costs, but do you think and you can take continued to manage down on those operating expenses.
Well the answer is yes, I mean, unfortunately, the COVID-19 expenses are they continue and in fact I would say some of it is not most of it but some of the incremental <unk>.
Expense on that is self imposed when the ships now are our roughly $1000 an hour to run a ship having off hire because the crew has an issue in terms of our crew change and holding a ship back for a day day and a half is really meaningful and much more meaningful and the incremental cost of a couple of days of of being our OE and <unk>.
Making sure the crew is tested and ready to go so we're taking steps to ensure that the ships keep moving.
Especially now because they're they are generating significantly more which means off higher cost significantly more as well. So going forward. Yes, we are taking initiatives to cut opex and and that's that's an imperative and I've said before opex ease and output its not a target we can get to a target number very quickly, but the most important thing.
To run ships that are safe and compliant and.
And also reliable so, but we absolutely are looking to improve on the opex numbers.
But I'll leave it at that.
Thank you Gary.
Thank you.
Okay.
And.
And once again Thats Star one quick questions. Our next question comes from the line of Greg Lewis from <unk> you may begin.
Thank you and good morning, and good afternoon everybody.
Gary I was kind of curious.
And I think you've touched a little bit on it and your prepared remarks.
Around the coal trade.
Clearly, we're reading a lot of headwinds around it and.
In terms of some of the slowdown.
And that they're having issues around COVID-19.
Is that what does that has that been creating any kind of disruptions dislocations and the coal trade and that and that.
In Southeast Asia.
Yes, I mean, while the answer is yes.
Getting a little feedback here can you hear me.
Yeah.
So Q1 not at all in fact, India coal was back to pre COVID-19 levels, having said that with obviously the humanitarian crisis.
That's going on and they're now we absolutely expect that there'll be a reduction and and coal consumption and coal trades, but we haven't we haven't seen it and a measurable way yet, but we expect Q2 will be will be impacted to some extent.
The one thing about the coal trade and the Pacific is it's a short haul trade price. So it doesn't have the same impact all of the volumes in terms of numbers for us.
It's about 14% and while we carry colon and general majority of that being to China, but it's but it's shorter charter hall. So it doesn't have the same impact on ton mile. One interesting thing I mentioned in the prepared remarks that we don't participate in the Australia and coal trades, but we have seen an example, where we're actually.
Finalizing terms on a trade at the moment for met coal from from the U S Gulf to China on.
On a and ultra Max basketball that is definitely not a trade. We typically would see that we're benefiting from and clearly that is a long haul trades.
So so there are dislocations in the market at the moment and not on.
For the first time on a Y on dry bulk theyre not all negative we're seeing some positive offsets to those negatives.
And that's absolutely and then just and just real quick I mean.
And we're tracking.
And as everybody there.
And the fuel differentials.
Just as as economies.
And the aside have started to open up has that created any.
Any problems around sourcing.
Back per <unk>. It was always there going to be is there going to be high sulfur fuel available is it going to be low sulfur fuel available at this stage now that economies are starting to reopen.
You noticed any any potential sourcing issues on the fuel side.
Absolutely and the answer is no we have not and I think the fuel spread.
And has continued to widen and we believe as air travel and particularly long haul International travel comes back then and aside from crude pricing overall and that spreadsheet.
We'll likely widen which is why we reversed our 2021 hedges.
Earlier at the end of last year. So we're we're comfortable where we are today. It's around 110 next year around 130, but we think there's upside to that.
Thanks.
Open up but from an operational standpoint fuel availability and no issue whatsoever.
Okay. Thank you. Thank you all for the time and have a great day. Thank you too.
And again the star on for questions one more for questions.
And I'm not showing any further questions and the queue I'd like to turn the call back over to the speakers for any closing remarks.
Thank you operator, we don't have anything further today, so I'd just like to thank everyone for joining us and wish everybody a good day.
Yes.
This concludes today's conference call. Thank you for participating you may now disconnect.
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