Q2 2021 iMedia Brands Inc Earnings Call
Greetings and welcome to the I'm media brands second quarter 2021 earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
Please note. This conference is being recorded I would now like to turn the conference over to your host Mr. Monkey Workman, Chief Financial Officer for I Media brands. Please go ahead Sir.
Good morning, everyone and thank you for joining this is Monte Wagman I media brands Chief Financial Officer, We issued our Q2 earnings release earlier. This morning. If you do not have a copy you may access it through the news section of our IR website at IR media brands Dotcom. This release is also an exhibit to the form 8-K filed this morning.
I would also like to remind everyone. This call will be available for replay through September seven 2021 starting today at 11.30, a M. Eastern time, a webcast replay will also be available via the link provided in today's press release as well as on the IR section of our website. Some of the statements made during this call are considered forward.
Looking and are subject to significant risks and uncertainties. These statements reflect our expectations about future operating and financial performance and speak only as of today's date, we undertake no obligation to update or revise these forward looking statements.
We believe the expectations reflected in our forward looking statements are reasonable, but give no assurance such expectations or any of the forward looking statements will prove to be correct for additional information. Please refer to the safe Harbor statement in today's earnings release, and our SEC filings.
Finally, we will make references to non-GAAP measures on this call such as adjusted EBITDA. Please refer to our earnings release for further information about these measures, including reconciliations to the most comparable GAAP measures.
Now I'd like to turn the call over to the CEO of <unk> media brands, Tim Peterman, Tim. Thank you Marty and good morning, everyone. Thank you for joining Q2 was another strong quarter for us we navigated through a logistics challenge related to COVID-19, we ignited three catalysts to accelerate shareholder growth one in each of our three <unk>.
And the strategies television networks consumer brands and digital services, we grew our customer file again in fact July was the 10th month in a row, we improved our gross margin to 42.3% a 510 basis point improvement over the same prior year period.
We significantly strengthened our balance sheet and despite the logistics bumps and bruises we endured in Q2 that challenged our revenue we exceeded our profitability expectations that we communicated to investors during our Q1 earnings call strategically.
Strategically our individual successes within our television networks consumer brand and digital services are collectively accelerating our company's timeline to becoming the leading single source partner to consumer brands and advertisers seeking to entertain and transact with customers using interactive video now.
Now, let's walk through these Q2 highlights in a bit more detail.
Q2, net sales were 113.4 million a decrease of 9% compared to the same prior year period, and about 5 million lower than we'd expected for the quarter as many retailers are enduring for the first time, we experienced material shipping delays for several of our most productive products from our fashion favorites like Kate <unk> Mallory and then.
Go threat to health favorites, like our air Purifiers, and laser paint massagers to our seasonal home favorites like quantum vacuum and Colston Air Fryers inventory receipts were consistently delayed Fortunately our entrepreneurial culture pivoted quickly reprogramming, our calendar with on hand inventory that was often.
Higher margin, but lower productivity. Thus the results you see for the quarter, our gross margin dollar and rate growth. Despite reduction in net sales for example, several of our 34 new product launches during the quarter received more airtime than originally estimated like Dr. Seth the north skincare, which is based on doctors have a north fork.
The years of experience performing plastic surgery.
And as a proprietary collection of quick and easy beauty treatments for women and men to use in the comfort of their own health.
Jules by Jorge Perez, which is a collection that showcases jorge artistic talent for creating colorful and unique designs infused with as vibrant Cuban heritage.
And last but certainly not least our very own Christopher and banks, which debuted in Q2. These shows focus on putting her first providing our customers with style value and service that help her look fabulous and feel amazing for everyday and for life's special moments.
The good news is although we expect continued congestion at the domestic port on a smaller scale going forward, we've already adjusted our programming calendars accordingly.
Also good news our year to date Kpis are strong.
Year to date net sales were 226.6 million, which was a 3% growth compared to the same prior year period, and the strongest year over year net sales growth in the company's first two fiscal quarters and seven years.
And year to date, adjusted EBITDA was $16.4 million, a 7.3 million increase or 80% improvement over the same prior year period, and the highest Q2 year to date adjusted EBITDA in the company's history now, let's talk about our Q2 strategic catalysts first or.
Acquisition of Sin of course portal and advertising business segment, which is the catalyst for our digital services strategy and is truly the foundation of our immediate overall digital strategy.
Which is best explained in my mind with a simple formula.
And of course video advertising platform plus I immediate first party purchasing data from shop, HQ plus float left best in class OTT App equals a truly differentiated video advertising platform.
A good example of a competitor to our strategy would be Walmart advertising platform, while mark connect that utilizes its first party purchasing data to help it better serve its advertisers seeking to reach better targeted audiences.
We have renamed our advertising business I media digital services or I M. D. S and are proud to announce it is already a leading video advertising platform that monetize as over 200 million monthly users for its online publishers by utilizing its proprietary technologies and an interactive video services to drive engagement.
Traffic and conversion, we expect I M. D S will generate at least $45 million and profitable revenues over these next 12 months.
Very soon our plan is that I N D. S will also offer our advertisers tailored first party customer shopping data from retail catalog and E. Commerce that will enable us to efficiently deliver publishers targeted demographics and conversion at real scale today major advertisers use I M D S as comprehensive suite.
A video header bidding display technology, and search and mobile and desktop to eliminate cost maximize yield and create exposure to new demand sources, our advertising products names R. S. Two S bidder reflects and search.
We also offer our advertisers and publishers and optional best in class value added engagement platform, which is a managed online and O T. T. Digital star page that enables our advertisers and publishers to provide their end users a compelling video centric website slash portal slash app.
Depending on the platform for original content news and entertainment email identity management identity protection and TV everywhere.
I M. D. S creates an host these fully managed interactive video experiences across all technology platforms specializing in desktop mobile OTT and CTV apps.
Our next catalyst Christopher <unk> banks, our CDK is a central driver in our consumer brand strategy and is the first real example of how our media is being positioned in the marketplace already as being the best single source partner to drive growth using interactive video.
In this case Hilco was our partner and I'd like to give more context on this opportunity that hilco and our media are so excited about capturing C.
CDK was a publicly held specialty retailer featuring exclusively designed privately branded apparel targeting plus size women, who were 55 plus years old C. BK operated 450 retail stores in 44 states as well as its website.
However, see BK filed for chapter 11 bankruptcy on January 14th 2021, and its primary lender Hilco purchased it.
To really size the opportunity, let's look at its history for 2019, CDK posted about $350 million in revenue of which about 80 million was ecommerce sales for 2020, CDK posted about $200 million in revenue and about $100 million of that was ecommerce sales. So that was the opportunity that hilco was.
Thinking about hill.
Hilco carefully evaluated its best path of doing it itself to partnering with other folks and it concluded that I'm media with its national television promotional platforms expertise in fashion merchandising proprietary e-commerce capabilities, including web and mobile customer service three P L capabilities and financing products.
<unk> was the best choice for them for a single source partner to relaunch it see BK brand.
I mean, he is growth strategy for CDK centers on its ability to create lives. He BK branded TV experiences on shop HQ to engage CDK customers, who may Miss the live demonstration that they used to enjoy within the bricks and mortar experience. Our short term goal is clear and that is to recapture quickly.
The $100 million in digital sales from prior year and I am pleased to report that our progress to date has been meaningful.
Our second catalysts are in and new 20 million HD homes that launched on June 28 is a central driver in our television network strategy.
As you May recall these were 20 plus million high definition homes across New York City, Los Angeles, San Francisco, Philadelphia, Dallas, Washington, D C, Houston, and Boston, which will help us level, the playing field against our competition in these markets that matter most to date our revenue lift in these markets is consistent with.
Our already communicated expectations and we are very pleased now back to walking through our Q2 Kpis. Our operating expenses in Q2 were $50 million, an increase of 15% or 6.5 million driven primarily by new merchandising and marketing related costs and additional transaction and integration costs for CDK.
And an increase in amortization related to our broadcast distribution rates.
Regarding our balance sheet total unrestricted cash was $20.9 million compared to $15.5 million at prior year year end.
On June 14th we closed on a common stock equity raise generating proceeds of 40.3 million net of discounts commissions and other offering costs.
Then on July 13th we closed on an expanded 100, an 8.5 million debt refinancing facility to replace our previous facility with P&C re.
Regarding capital expenditures during the quarter, we spent approximately $3.1 million on capital projects, primarily reflecting investments and upgrades to our web site infrastructure and facilities rigor.
Regarding our outlook for Q3, we anticipate reporting at least $9 million of adjusted EBITDA and approximately $127 million in net sales, which is roughly a 17% growth in net sales compared to the same prior year period.
For the full year 2021, we anticipate reporting full year adjusted EBITDA between 37, and $40 million, which is an increase from our previous guidance of between $72 million.
In addition, we anticipate reporting full year net sales of at least 502 million, which is an approximate 11% full year net sales growth compared to 2020.
As a reminder, from a tax perspective, the company has approximately $397 million in federal Nols that are available to us to offset future taxable income.
In closing I would like to say that these are important times here at <unk> media as we accelerate our growth and building shareholder value.
Thank you for your time this morning, I will turn the call back over to the operator for Q&A operator.
Thank you at this time well be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is into question. Kim you May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star.
Our keys.
Our first question comes from the line of Tom Forte with D. A Davidson. Please proceed with your question.
Great Tim money, So I had one.
One short term question and one long term question I'll start with a short term one.
When you and I have been following the industry for a long time right.
How can you put it in historical context.
Supply chain challenges is it the toughest has been realized 24 months.
However, how do you think about it and what gives you confidence you can navigate the challenges over the next 12 months and then after that I have a longer term question.
Thanks, Tom.
<unk>.
It's a great question right, if I had a crystal ball I could say that for sure the.
It's probably the most challenging I've seen in <unk> and EVAR right because it is just the way. It is just cresting now right. So it's been building.
People talked about the logistics challenges and so did we last year as the pandemic slowed virtually all areas, but that was just a little ripple.
The way it was heading to shore and it was really focused or contained within the consumer.
Products and some of it more yellow.
Ordinary consumer products that you would think would be affected by these types of logistics issues. However, now the as we move into Q1 and Q2, it's a combination of container shortages.
For these direct imports as well as.
Big backups at the Port the local port, whether that's east or West coast now the container shortage. It has lightened up a bit and the ports are getting a little bit better on the congestion, but it's still there now so I would say that if you ask my view today and then I'll give you that view every quarter I would say that I.
Q2 was the crest and then we're going to start to see that dissipate in Q3, and Q4 and so the there will be some challenges, but it won't be as acute as broadly speaking it from a product category. We looked at it was in fashion. It was in beauty. It was virtually in every category.
So that's what I think will dissipate and.
And moved behind Us, but it's here it's here for at least a year in my view it will take it took a year to build it'll take a year to get back to normal and so from an organizational perspective from a programming perspective, we've implemented.
Several different countermeasures from making sure that the product is in house at least three weeks.
In dock before and even getting to port which used to be a point of reference for.
Or product being available to calendar is no longer a reliable because of the congestion so.
Just different programming policy that we've put in place has health.
Helped alleviate the short term pressure and that's how we're planning Q3 and Q4.
Alright, Thank you for that I put in the longer term question and then I'll get back in the queue for maybe a couple more follow ups is that you do a wonderful job explaining your advertising efforts.
How should we think about how that could potentially positively impact your long term gross margin and then therefore your long term EBITDA margin.
Great question again, I think Theres two catalysts to our gross margin as you know we worked hard throughout 2020 to improve our gross margin by 500 basis points and as I talked about getting to the 37, 38% was where we could scale revenue and that's for TV retailing it.
It has.
Demonstrated that but as you point out certainly in the consumer brands with CDK and certainly with our new advertising video advertising platform. Our acquisition of set of course portal and advertising business. Those margins are higher so as those businesses scale, you will see our gross margin move and you're seeing some evidence of it.
In Q1, and Q2, but I think it's going to move into more of the from a from a modeling perspective, if you want to think about our enterprise margin it would be in the.
39, 39% to 40% by next year is our view.
Excellent I'm going to get back in the queue for a couple more follow ups. Thanks.
Thanks, Tom.
Thank you. Our next question comes from the line of Eric Wold with B Riley Securities. Please proceed with your question.
Thanks, Good morning.
Couple of questions I guess, one first of all kind of following up on the last question is around.
The port issues it sounds like obviously youre, making some programming changes basically the inventories on hand.
Cetera.
With gross margins in the in the shop HQ segment, well above target levels for now that you have a second consecutive quarter does it make sense at all to try to expedite are afraid to do some things around that to get the desired product in the hands of drive further customer growth or is that just not an option at this point.
Thanks for the question, Eric and yes, that's the that's the age old question right. If I had to if I could look back 2020, I would say that.
I could have taken less margin and perfectly brought those in it it's a it's a.
Constant question, we wrestle with a particularly for jewelry, we can do that and we do do that for some of the bigger items like fashion. The they were there.
They were stuck in containers and they were stuck in a route where we didn't really have that option. So where we were it wasn't caught up and route we took advantage of it and then the other side of that is that when we put the existing products. We had on hand, as we talked about or as I talked about in my prepared remarks, some of it was already higher margin and.
We knew would be less productive and so that balance is something that we're used to doing you know as we did all last year. So when we looked at the overall impact. We wanted it was a balance of what do we know we have in house, what do we know that will resonate with the customers have a strong margin what can we are in and from a category perspective.
In the quarter and then again, what do we have to then brace for impact on in terms of what we won't get in fashion, what we won't get in home, what we won't get in.
In some cases watches so it was a blended rate that at the end of the day, you know allowed us to to make sure from a from a.
E T S net income and in margin perspective, we delivered on what we what we promised and we feel good about it I mean, we feel.
It wasn't like it happened all at once it was like one of those things that get really it happened again really on that and so as we as we move through it we reacted pretty quickly.
Got it okay.
And then second question John.
Mentioned, obviously good for banks.
Going along well maybe give us some.
Okay.
Details around kind of what you've done so far how have you exploited or targeted their customer list that came along with that kind of what's next on my calendar.
Yes.
What would you be disappointed at.
If that didn't generate X amount of revenue this year and how much could that grow next year.
Great question, Eric the so when we think about T V. K. The first and foremost is the customers called over 1.5 million 12 months customers. When we began the journey and what we've been doing to re engage those customers and it's a multi pronged effort first and foremost where we're reaching.
[noise] out from a from an email perspective, and re engaging them to bring them back with new products discounts because.
As you might recall in the last six months.
Last year, they werent really introducing new products, so making sure that we have the new products to engage them when they come to us first and foremost and the first step in the spring was making sure. We kept all the vendors that some of them were hurt in the bankruptcy and engaged with them and they've been.
Together with our team created an amazing fall season and.
And some good for the spring to help us with this reengagement process, we're talking about so first and foremost there was an email we've also.
You think about a retailer have many of our customers that don't have email addresses and so we old fashion re engage them with postcards and that has been tremendously successful. So a week we bring them.
We nailed them a postcard, we say that we miss them and we do it by strata within the customer file and we do it monthly and those have been very productive and then on the TV side. So you think about email you think about the the postcards and then you think about our TV or TV began the monthly rotation is what.
We're doing for this brand so in fashion you can have static programming that happens every week, but then when you have a distinct brand like one world for example, Christopher banks, we rotate them in monthly and what our brand start to start to call. It three to four hours and the first rotation for CDK was.
In April and it was you know.
There were some learnings.
Sizing was different there were all these different things that we wanted to try to make sure we were doing right by the customer and we and some of them are retailing, we didn't pay enough attention to so in May and June the on air presentation was with much improved the new products that we bought were much improved and it's really taken off on.
The television side and it's something that we're very excited about in the fall to rebuild that customer file.
So you have those three pieces and then we have stood up the two of the other bigger more productive retail stores because we do believe in omni channel. It's just we don't believe in retail.
Retail brick and mortar retail driving the bus we believe television and digital drives the bus, but it's a complement on the physical retail side. So in Branson, Missouri and here in Minnesota at both of those stores were up and engaged and you know the customers are on the social platform are very happy to have that store back and so.
Yeah, that's really the fourth side and then as we think about engaging customers in digital.
We've talked about sale of floor Dot com, which is a way for us to virtually style out different customers as they as they think about what they want to buy from us and that's something that is planned for the fall. So it's a it's a multi pronged approach to get back.
One 5 million into the 12 month file and I would be disappointed if we didn't reach that $100 million next year and I would be.
Disappointed in digital sales that'd be disappointed if if you think about it we should have in the first full year reached half of that.
So we started in March so you can do the math. It is a it is a meaningful growth catalyst for us and it's something that we're already seeing.
Great.
Success with.
That's perfect.
Yeah. Thanks, Eric.
Thank you. Our next question comes from the line of Mark Argento with Lake Street Capital markets. Please proceed with your question.
Hey, Good morning, guys. Just a couple of quick ones I'm just wanted to get to.
Set of core a little bit and better understand.
The integration process and you know you do.
You watch the whole.
Our media digital services, but maybe just talk about how.
Of course, you're going to start.
Core assets together with some of the other digital assets that you currently have in Europe.
Thank you Matt.
Thanks, Mark Great question, Yeah. It is when you think about the team and the culture that we acquired with with this business, which I know well since I used to be there call. It five six more like eight 910 years ago, but let me first just by saying the team that is.
Our new business call. It immediate digital services that what is the construct and of course portal and advertising business is very strong. So you have.
I'll mention them by name Ron Matt Dolan Gabor as the leadership team there and they've been there for quite some time and so when you think about what they've done so far and what the ambition is.
There's not really a stitching together of this.
This immediate digital services with our other digital I would say that this video asset platform that we have today is the foundation of our immediate digital strategy. So they are driving forward with a platform that will utilize.
Our really our what we call our first party customer data as you think about the ecosystem of <unk>.
Digital advertising and the third party cookies going away and the tracking going away the idea of this.
This video asset platform, having real first party data for them is a distinguished.
Differentiation for them in the in the marketplace and so we're gonna take their skills and their culture of.
Bridie entrepreneurial development and we're going to provide them with a couple of our assets.
And those assets being float left which is our OTT app business that we bought back in 2019. If you think about the value added services that <unk> provides today, Eric or an advertising platform, primarily an interactive video, but they provide their clients, particularly the mvpds and the Isps what we call.
Video engagement portals or web site and the online world and that's really what that does on the OTT side. So.
Complementing the video asset platform today, with our first party customer data and the FERC and the float left OTT App is a way of of better equipping them to grow faster in this marketplace and so integration isn't really the right way to think about it we're enabling them with.
The two key pieces of technology and data to make them grow faster as a standalone. So it's an exciting time I think that we're just getting started here and you'll hear more about our efforts each and every quarter.
It's foundational for us.
Great and then just in terms of the guidance.
Yeah. The old guide for 90 on the top line growing the Fargo too So and I think you said 45 million in revenue kind of next 12 months and sorry to just straight line it.
40% of that this year, maybe 45% whatever the math works out to be.
You know, it's probably another $16.17 million contribution this year.
It could be in the overall, our media business, you expect to be down a little bit just given the.
Relative to kind of where it was before or is that kind of a put and take there.
Just building on that a little bit on the guide.
Yeah, absolutely great.
Great question and it's.
Like the duck on the phone as well.
Swimming under there so.
I think about it this way we are we guided to a full year $4.90 at the end of Q1, and then now we're guiding to a full year of 502 and as we talked about the guidance. We were short on the revenue side of guidance call. It $4 million and so if you think about our increase of $12 million in the back half of the year Q3 and Q.
Four primarily driven by <unk> you can think about that as 16 being added because we're making up the GAAP and the logistics, we're starting to get all of that product and now in Q3. So we do think that productivity from the receipts that were coming in from Q. It didn't come in in Q2.
Coming into Q3 will drive obviously productivity and then the acquisition of the portal that team will will drive revenue as well. So that combined 16 million is how you should think about what we're adding to the forecast for Q3 and Q4.
Great. That's helpful. Thanks, guys. Good luck.
Thanks Mark.
Thank you. Our next question comes from the line of Alex Fuhrman with Craig Hallum Capital Group. Please proceed with your question.
Hey, Thanks, guys at Tims. He do you mind just building on what you were just talking about your outlook for the third and the fourth quarter Covid can you give us a sense of what's kind of baked into the forecast in terms of availability of inventory as you get closer to the holiday season, I mean, it sounds like from what you were just describing.
You're not anticipating any sort of hiccups or anything and in the third or the fourth quarter can you just give us a sense of how much visibility you have at this point into your ability to be well stocked for the holidays.
Hi, Eric Great question.
I'll have to pick up my right I'm, sorry, Alex and I had to pick up my.
Crystal ball here so.
So what do we know and what do we think right. We know what we can control and what do we think about the logistics situation I'd call that the.
The unknown is the headwind is really this logistics and until we know we've taken care of it from a programming perspective, and an inventory on hand perspective.
We think that from from that perspective, it's baked in as a.
Not a material distraction from the revenue performance that you see in the guidance. So there is some hesitancy that we baked into the guidance because of the congestion, but it's not it's not meaningful. So we are with the view that the Q2 logistics was the crest and it would be moved.
Down along with our remediation that we've done internally, we're not going to face.
The kind of come out on the revenue side that we did in Q2.
So that's the first issue then when you think about the tailwind as you move into Q3 and Q4 there's.
Several there's really three that are new that really weren't there last year. So the first obviously is the the RNA in HD carriage that we have in Q3 and Q4 that we've recently launched as that matures that growth that incremental growth will get higher and so as we move into Q2.
Three in Q4, that's a tailwind and we baked some of that in obviously very conservatively in our in our revenue numbers. The second catalyst is Christopher <unk> banks, obviously not here last.
Fall and even in the spring from a performance perspective.
We didn't have new inventory, we didn't really have inventory.
The first day. So we've developed a great fall season, we've also introduced accessories to the balance of the product, which will be we think even more engaging for the customers. So that's a tailwind moving into Q3, and Q4 and the air or.
New acquisition, which is the immediate digital services there that that is a tailwind for sure.
She's not here last fall so when you think about.
On balance our guidance for the back half we have.
<unk>.
Some optimism from the tailwind I've just described and some concern.
During the logistics issue. So it's a balance we feel good about it as we've always talked about my Michael with all IR communication is too.
The expectations. So we think about that too when we provide guidance.
Great. That's really helpful. Thank you Tim.
Thank you Alex.
Thank you, ladies and gentlemen, as a reminder, if you'd like to join the question queue. Please press star one on your telephone keypad. Our next question is a follow up from Tom Forte with D. A Davidson. Please proceed with your question.
Great. Thanks, Tim Thanks, so much.
So short term long term again, but on the short term basis to a historically.
Historically the Olympics are often challenging for TV retail.
How if any do you think it impacted you this year.
Great question, Tom I don't know if it really is going to be impactful to us. It certainly is a distraction.
Think world events.
And things like that or a bigger distraction I think the NFL football kickoff is a bigger distraction, where we'd have to deploy counter programming, but that are our strategy is the same and probably the same in most cases is how good can you counter program against those so for example on the NFL Sunday kickoff, we have great.
And Victor NFL watch is a big deal for US right and you would think naturally wait let's put that on a Sunday NFL right and we put it on Monday, because it's gonna everybody. All our fans are going to be watching the football. So it's a and then on that Sunday, we would have great beauty brands.
Isomers or consult we'd have jewelry any any of the really female dominated categories is where we would go so would the olympics it isn't that cut and dry right because its very mixed in terms of demographics and who watches it but that's that's our strategy. That's how we would approach it but looking at historically.
It Hasnt.
Unless there's some acute events on the Olympics it hasnt been.
As painful as some of them examples I just said.
Excellent all right. So then last one long term so with the adjustments you've made to your asset portfolio.
Do you think you have everything in place.
Ask you your full vision or are there more you know potentially complementary or other assets you'd like to add.
Great question again, Thomas it's always the.
I like to think about it this way we have three primary strategies, we have television networks or television networks, we have consumer brands and we have digital services that has been our offensive plan since I came back in the middle of 19 and that will and that is all we need to execute our strategy to become the leading single.
Partner to advertisers and consumer brands, who are seeking to use interactive video to drive growth and that's really what I want to make sure I'm clear on the river that runs through it is the interactive video. So as you think about examples of single source providers out there today.
Similar to what where were moving you can think of a shopify you can think of a square space and they're an E com based.
Self serve single source provider to consumers, we are still be to be in providing advertisers and consumer brand and again the differentiating quality here with US is that interactive video is something that we really think we do well and that is the central driver.
Supported by a thriving television networks, a thriving consumer brands and a thriving digital services just accelerates our path, but you won't see anything outside of those three strategies from us going forward. We have we have our offense on the field and that's what we're executing against.
Wonderful. Thank you tend to take the money.
Thanks, Tom.
Thank you ladies and gentlemen, this concludes our question and answer session I'll turn the floor back to Mr. Peterman for any final comments.
Thank you and just again, thank everybody for their time and their trust, we appreciated as I like to and it is these are exciting times at <unk> media and we look forward to talking again soon.
Yeah.
Thank you. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.