Q3 2021 Consolidated Communications Holdings Inc Earnings Call
Good morning, My name is Julie and I will be your conference operator today.
At this time I would like to welcome everyone to the consolidated Communications third quarter earnings Conference call.
Please be advised that today's conference is being recorded.
All lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session.
Did you want to ask a question. During this time simply press star followed by the one on it.
Telephone keypad if.
If you want to withdraw your question press the pound key thank you.
I will now turn the call over to Jeff for Saudi Senior Vice President of Investor Relations and corporate Communications, Jennifer you May begin your conference.
Thank you and good morning, I'd like to welcome everyone to consolidated Communications' third quarter 2021 earnings call.
On the call today are Bob Vidal, President and Chief Executive Officer, and Steve Childers, Our Chief Financial Officer.
Bob's comments today will highlight our strategic initiatives and our progress with our fiber builds Steve will provide details on our third quarter financial performance and an update on guidance for 2021.
Following their prepared remarks, we will open the call up for questions.
Before we proceed I'll remind you our earnings release financial statements and earnings presentation are all posted on the Investor Relations section of our website, which can be found at IR dot consolidated dot com.
Please review the Safe Harbor provisions on slide two of our presentation. Today's discussion includes statements about expected future events and financial results that are forward looking and subject to risks and uncertainties. A discussion of factors that may result that may affect future results is contained in consolidated filings with the SEC.
D C. We will file our 10-Q on Friday.
Today's discussion will also include certain non-GAAP financial measures. Our earnings release includes reconciliations of these measures to the nearest GAAP equivalent.
I will now turn the call over to Bob Udell.
Thank you Jennifer and good morning, everyone. The third quarter was another important step in our multiyear value creation fiber expansion plan, we achieved the 10th consecutive quarter of broadband year over year revenue growth.
Upgraded 97000, passing to fiber gig capable service in the recent quarter and completed 219000 upgrades year to date.
We're on track to exceed the aggressive plan, we set a 300000 fiber upgrades for this year.
These network upgrades are the path forward for growth and to pick the first phase of our transformation, which is just beginning to take shape.
Today, I will provide an update on our fiber build plan starting on slide four.
Our five year plan is to upgrade $1 6 million or over 70% of our total passing.
By the end of 2025, you can see the planned progression of this build on slide four and then we plan to upgrade 400000 passes next year in 2022.
More than 1 million passengers will be upgraded in northern new England alone where more than 90% of our markets have single single or no competitor, we have a tremendous cost advantage, especially in the new England, where approximately 80% of our fiber as Ariel and in close proximity to our existing fiber backbone facilities. We're also leveraging our diverse.
This expansion supports each of our three customer channels, including consumer revenue and carrier, giving us three bites of the revenue Apple.
In addition to the high percentage of aerial plant in new England, we have a number of fiber deployment advantages, including our incumbent position our robust near net fiber networks and existing conduit capacity for Berry facilities, we built 700 miles of new fiber in the third quarter and more than 4000 miles so far this year.
We added more than 4000 net one gig subscribers in the third quarter and have increased fiber subscribers by over 20% year to date. We are now hyper focused on implementing our enhanced digital technology to aid the customer experience and ramp our sales and marketing efforts are.
Our fiber cohort penetration targets are outlined on slide five we expect to achieve.
4% cohort penetration 12 months after pass things are upgraded in a quarter, 24%. After 24 months and we expect to approach 33%. After 36 months in the life of an individual cohort.
We've discussed in the past in some markets. We are confident we can achieve duopoly parity with penetration in the low 40% range over a five year horizon.
Our go to market strategy has been well tested and we have exciting news coming in mid November related to our brand launch with our new brand launch we will offer an entirely transform customer experience, which is designed to make broadband easy we're offering superior gig symmetrical speeds. The strong this whole home mesh Wi Fi capabilities.
The industry offers no data caps no contracts and then extremely competitive price point for symmetrical Giga Internet.
We have the capacity to install fiber services within three days of order and we have a dedicated premium customer support channel measured by NPS scores for performance and productivity.
We're significantly enhancing our digital sales engine in the next 30 days and rolling out an enhanced customer installation process. Our strategy is to win subscribers at the neighborhood level and provide a frictionless digital order experience.
We're also connecting with our customers at local events through community meetings, both in person and virtually.
Now the investments we are making in our digital transformation projects will give us and our customers new intuitive self serve options, making it easy to do business with us and the way customers want.
These tools will also significantly enhance the customer experience throughout our service delivery process.
In the third quarter, we experienced the highest number of online transactions in our history as we enabled new web based order entry tool, specifically for northern New England fiber customers.
This digital flow through delivers end to end automation of all provisioning and order processing functions, including messaging to customers regarding the status of their orders.
Is a powerful combination of neighborhood level dive interaction coupled with the latest digital technology capable of delivering the fastest symmetrical speeds in market, but also a truly differentiated customer experience.
All of this is key to the value proposition of our new fiber services and Theres more to come.
Along with our new digital storefront, we will rollout new brand, representing a superior fiber product and a transformed customer experience, giving customers exactly what they have been asking for from their broadband service provider we.
We are very excited to launch our new brand within the next 30 days and the differentiated customer experience.
Which it represents which will enable us to become the broadband provider of choice.
Now turning to our commercial and carrier channel. This business continues to be important part of our strategy as we leverage our fiber network investments to grow commercial and carrier data transport revenue.
We've continued our long track record of growth in data revenue, which grew one 1% year over year as we edge out our network.
We actually grew on net buildings by roughly 400 or 11% year over year, and we completed nearly 200 on net extensions of our fiber network in the recent quarter.
In fact, 90% of our new sales across.
Our markets are on net which correlates to higher margins increased opportunity to upsell and a greater ability to ensure the best customer experience and this ultimately contribute to customer satisfaction and strong retention.
We see good sales activity around our pro connect unified Communications and SD Wan services as leading business solutions.
Our commercial go to market strategy Leverages, our expansive fiber network and our solutions based sales approach, allowing us to become a trusted adviser to our customers, while providing simple solutions to complex problems.
We leveraged three distinct commercial sales channels, including direct <unk>.
An agent as well as wholesale.
Our carrier team is focused on the emerging <unk> network opportunities across our regions and with all major carriers.
Product mix light commercial is weighted towards Ethernet and we are seeing more interest in carrier grade wave solutions as well.
Our highly experienced sales team continues to capitalize on new Ethernet and backhaul growth opportunities, while proactively managing second generation contracts and price compression in an increasingly competitive landscape.
We continue to be optimistic about business recovery.
From the pandemic and are pleased with the receptiveness for customer in person meetings, and resulting projects our strong balance sheet enables us to support this channel and commit the capital needed to grow the business with the highest return.
I'll now turn the call over to Steve who will provide more insight on our third quarter.
Financial results Steve.
Yeah.
Thanks, Bob and good morning to everyone. The third quarter was another strong quarter of step for our ongoing transformation of our fiber build strategy I'll start by reviewing our overall financial results for the third quarter and will provide an update on our 2021 guidance to begin our third quarter highlights are on slide seven of our presentation.
Operating revenue for the quarter totaled $318 6 million down two 6% compared to a year ago. The decline in revenue was driven by erosion of legacy products for voice video and network access which are trending as expected and were partially offset by continued growth in our strategic revenues for data and transport.
Tumor broadband services.
Adjusted EBITDA was $127 4 million and represents a 40% adjusted EBITDA margin for the quarter.
Turning to our consumer channel total consumer revenue was $125 4 million down two 4% compared to the year ago period and over 75% of the decline coming from our linear video services, which we'll discuss in a moment.
Consumer broadband revenue was $68 6 million up approximately 1% sequentially and up two 1% year over year.
This represents the 10th consecutive quarter of year over year growth in broadband revenue.
Broadband growth stemmed from speed fiber upgrades combined with <unk> gains on our new our new fiber services. This resulted in consumer data, our <unk> being $58 48.
Approximately $4 or 7% over last year.
We provide a new metrics last quarter related to our fiber passing some penetration rates are intended to provide information to measure the progress as we upgraded network to 70% to 70% of our $2 7 million homes to one gig capable fiber services, we have nearly doubled our gig capable coverage in 2021, which is.
Now, 18% compared to 10% at the beginning of the year, our consumer fiber data penetration at the end of 2020 is the starting point as we begin our five year build plan on January one 2021. So far this year, we have increased our gig subscriber base by 20% with approximately <unk> <unk>.
11000, net ads and we've almost doubled our inventory with an 80% increase of gig fiber passes at the end of the quarter into the third quarter. Our total fiber gig plus penetration is 13% and is measured on total inventory, including recently upgraded passing.
The pace of the build will influence our fiber penetration as we start taking fiber broadband market share as our sales machine scales and our new brand private product offerings are fully launched.
Our cost per passing details are outlined on slide five our year to date average cost per passing is $550 to 600, which.
Which includes edge access equipment labor and fibrotic components the cost per passing the northern New England is around the $450 range based on the high amount of aerial fiber.
The average cost of connect which includes CPE labor and the drop is approximately $700. The biggest variable the cost cost of this drop is the trop link which varies by market and region and I'll provide an update on our capex guidance in just a moment.
Consumer voice revenue was down five 1% or $2 2 million, we continue to improve the attrition rate in consumer voice and while we continue to experience. Some erosion. We are doing a good job managing the rate of decline in this area.
Video video revenue was down $2 3 million or 12, 4% on a standalone basis, and does account for 75% to 75% of the client and consumer revenue our transition to over the top video services has enabled us to cap linear video deployments far from optimal Tvs video strategy and it is actually accretive.
Margins and free cash flow.
Now turning to commercial and carrier revenue totaled $144 3 million in the third quarter down $2 1 million or one 4%.
Data and transport revenue was 91 1 million up approximately one 1% year over year. We are one of the few companies in our peer group to continue to show growth in data and transport catalyst for this growth are dedicated internet bandwidth SD Wan and our commercial Voip solution, which we call broking at <unk>.
Commercial voice revenues declined $2 7 million or 6% due to access declines and the migration of customers to Voip solutions, which we recorded data transport.
Network access revenues totaled $29 9 million down just over $2 million year over year special access declines were offset by increased Universal service fund revenue.
<unk> revenue was $17 3 million down four 4% from a year ago due to a band data reduction in state funding from the Texas high cost funds.
Or are part of an appeal, which was filed with the Texas Telephone Association on the recent ruling in an effort to restore funding to prior levels.
Operating expenses were $206 6 million down one 4% from a year ago primary drivers of the change were network cost efficiencies lower cost of video programming and a recognition of some property tax rebates.
In September we announced the sale of our noncore, Ohio assets for approximately $26 million.
In the third quarter, we recorded a noncash pre tax loss of $5 7 million on assets held for sale, which includes approximately $22 million of allocated goodwill. We now expect to close on this transaction in the first quarter of 2022.
Additionally, we will continue to review our portfolio of assets for additional investment or monetization to ensure all assets have a long term strategic fit.
At September 30, we recognized a noncash loss of $2 2 billion related to the increase in the fair value of the contingent payment right to searchlight.
Net interest expense for the third quarter was $43 2 million, an increase of $11 5 million from a year ago. The increase reflects a recapitalized balance sheet enabled with the initial searchlight investment in the global refinancing we completed last October which allowed us to extend maturities increase liquidity and reduce leverage.
<unk>.
For the quarter noncash interest in the search like note combined with the amortization of deferred financing costs and the related discount totaled $10 9 million, we are benefiting from lower annualized cash costs. As a result of our April bond offering banchory pricing of approximately $18 million and also we're able to eliminate.
That 1% annual amortization on the term loan, resulting in another $14 million in cash savings.
<unk> as you can see from the capital structure summary on slide nine we have no debt maturities until 2027 R. R.
Our net debt leverage is 364 at September 30 up slightly from Q2 at the end of the third quarter, we had over $500 million.
Liquidity and we believe we have a fully funded plan build plans to return to growth.
We are on track to secure the FCC approval and the final searchlight investment by the end of the year. This will trigger searchlight second investment of $75 million in the second stage closing of the searchlight partnership at this in state they will hold 35% of our common equity instrument $395 million in perpetual preferred.
Stock plus accrued interest.
Pro forma at close we will have approximately $114 million outstanding total company common shares.
Cash distributions from the company's wireless partnerships totaled $11 1 million in the third quarter in our $33 2 million year to date compared to $32 million a year ago Caf.
Capital expenditures totaled $144 3 million in the third quarter and $339 $5 million year to date.
Our capex spend was the proxy our Q3 Capex spend was approximately $30 million higher than our plan as we proactively secured fiber materials and broadband CPE given the supply chain supply chain challenges facing the industry and the broader.
Economy over 40% of our total cap ex year to date is supporting our TTP build projects and our digital transformation technology.
So let me sum up our third quarter results and and the opportunity ahead operationally, we are making excellent progress on our fiber build and are placed on pace to exceed our upgrade target of 300000 fiber passing this year. We continued to achieve key strategic revenue growth in broadband and data transport services, which continues.
Price stable business results and cash flow.
We are changing the revenue and subscriber mix as we're becoming a leading fiber provider and begin our transformation and returned to revenue growth in 2023.
Ill close my comments out with an update on our full year guidance, which is outlined on slide 12.
Capital expenditures for the full year 2021 are now expected to be in the range of $440 million to $460 million, an increase to the previous range of $400 million to $420 million as I mentioned, we took proactive steps to secure CPE fiber materials to support our build plan.
Our affirming all other guidance measures with no changes with that I'll now turn the call back to Bob.
Thank you Steve.
Let me say this if this were a race and make no mistake. It is were in the first stage of it there will be twists and turns and pit stops along the way, but we have an experienced team executing and delivering on this bold growth plan I want to express my gratitude to our consolidated team for their dedication and resiliency their excitement is ebb.
And our latest employee satisfaction survey and our positive results are a product of their hard work.
Our focus right now is launching a superior fiber product with a differentiated customer experience, we have a large opportunity in numerous competitive advantages to becoming the broadband leader in the markets we serve.
This business it is.
<unk> and <unk> sport, a proven team in it to win our strategy is clear as outlined on slide 10, we are accelerating our fiber builds extending fiber to over 70% of our addressable locations and I think we'll exceed that we're leveraging that fiber to grow broadband revenue across three customer groups, giving us three chances to win.
And we're redefining the broadband experience with new friendly ways to serve our customers under a new brand.
Our path forward is all about building long term sustainability and value for our investors our customers and our employees and our five year plan is fully funded and we have the support from an experienced strategic partner in search like.
This is a fantastic time to be in our industry.
With that Julie will now take questions.
At this time I want to remind everyone in order to ask a question Press Star then the number one on your telephone keypad with.
We'll pause for just a moment to compile the Q&A roster.
Your first question comes from the line of Jason Kim with Goldman Sachs. Your line is open.
Thank you and good morning.
What's the customer mix in terms of the net adds coming from your existing DSL customers versus new customer relationships.
And regarding consumer broadband revenue is nice to see the continued year over year growth.
But the rate of growth sequentially was a little bit slower in third quarter versus what you saw.
Sequentially the sequential growth in second quarter anything to note there.
Yes, I'll take the first part of that and Steve will take the second.
The mix started out.
Early with more upgrades as we were iterating on our go to market strategy.
Installation process. So that's been.
A good process for us.
First using upgrades to get experience with with.
With the development of of all the tools that were.
That are coming together with the launch of our new brand. So I would say initially it was 60 40, 60% new 40% upgrades and we're now in the $8 20 range as we exit the third quarter.
Dave you want talk about.
<unk> revenue.
So Jason on the on the revenue growth, which I think was your question you're right. We were probably are.
<unk>.
Gives me about three 5% Q2 to Q2.
Last year and were $2 one no I think thats, just a reflection of how aggressive or it's kind of the.
The buildup for our brand launch we're not we're kind of muted on marketing dollars for new adds and things like that so I think.
Just kind of a play where we're at and how aggressive we're being on the market and probably the timing is maybe some price increases in Q2 as well.
That's helpful. And then we're seeing a lot more companies.
Spending their fiber expansion plans.
Not just within their existing footprint, but filling out nearby towns. If the economics are attractive is that something you would consider and if so how would you frame the opportunity for consolidated and as well as how to pay for it.
Yes look the way that we look at that.
As.
Like we do any any other build plan.
We look at the return and if it's low to mid teens.
Remember our core network is closer to subscribers already.
As we went through the <unk> analysis. For example, we found towns that we could build without hard off that were attractive and so we're doing some of that thats in the 600 that we added.
Over the last two.
Months start plan.
But I would say a small percentage of it. So at this stage, we're being opportunistic were looking at our return models on an area by area basis, working with communities on public private partnerships to offset when the build.
It is an attractive from a private funding perspective.
And extending our edging out so we're maintaining some capacity.
In.
In our plan to to embrace those opportunities as they become available we are obvious to us.
Okay.
Great. Thank you very much.
Your next.
Comes from the line of Greg Williams with Cowen <unk> Company. Your line is open.
Great. Thank you for taking my questions I have two questions. One is just on the increased Capex Guide you mentioned that.
You are seeing.
Are you anticipating supply chain concerns and maybe you're building fiber components and buying CPE equipment can you just help me understand the situation are you seeing supply constraints or are you anticipating it and does that essentially mean that your warehousing CPE equipment that can essentially youre pulling forward 2022 cap.
So they get the warehouses in 2021.
And then the second question is on margin trajectory.
I'll get back to the 40% Mark even with the investments in the business and it sounds like you're expecting exciting stuff and a couple of weeks.
<unk> should help margins due to automation and simplification.
So how should I think about the margin through 2022, I know, you're not giving guidance but.
We're gonna take Caf II drop off in the first quarter I imagine that's where.
The bottom of your margin percent, and then sort of running back at the way the right way to think about it. Thank.
Thank you.
Yes, I'll take the first part of that Greg and good morning, Steve.
Again, I will take the second I think.
And with regards to the supply chain.
You are reading that right.
The accelerated fiber acquisition.
And we're putting it up.
Fast.
Mark Hart, our places unfolds and the and in the ground. So we want to be first to upgrade any markets that we think.
Long term might get attention from the cable competitor or anyone else.
So.
We're doing well on the physical plant side and with the change and upgrade and our customer experience. We found ourselves in that inflection point between Wifi five in Wifi six and so we've been.
Somewhat.
Cautious and concerned about chip shortages and working closely with our suppliers on Wi Fi six gear and buying additional Wifi five gear to hedge.
Production.
<unk> slipped and delivery slip so I would say, yes, youre seeing inventory grow probably in the $30 million to $40 million range.
And Youre seeing.
Let's accelerate some of that that would have been in 2022, but I think we will be doing.
For 2023, because I don't see the supply chain issue on the chipset side.
Being resolved worldwide.
In the near term future.
Steve you want to take the second part of that.
Yeah sure. Thanks. Thanks for the question, yes, So I think the way you framed your question on margins in 'twenty, two with the Caf drop off being the low point.
Youre exactly right and just to be clear I know we've said this on every earnings call and it's very public that we to.
To your point, we will be taking a step down in Caf II revenue starting January 1st as we transition to <unk>.
<unk> had $48 million run rate basis. This year, we stepped down to about $6 million that decline 42, if you think about us being at the midpoint of the guidance for this year and maybe that's your starting point going into 2022, assuming how well we manage the rest of the rest of the business and execute on the fire.
<unk> gross plan across the rest of the customer channels, but I do agree and the drop off in R&R.
And the subsidy money.
What about terminal values on funding.
Funding right.
We're building this for the future.
The build plan reflects what we needed to do to step up to make up on our Bakken I think Bob talked about the increase of 600000 homes since we announced the search like partnership.
On the build out so that's what we're trying to make that up but to your point I think 'twenty. Two we will take a step down on revenue and margins and then over and we will expect to start showing sequential growth sometime in 'twenty to get full year growth of 23, and we will see margin expansion to the high <unk> low <unk> in the five year build plan.
Great color. Thank you.
Your next question comes from the line of Michael Rollins with Citi. Your line is open.
Thanks, and good morning.
Just a follow up.
In addition to the comments on Caf two or are there some other tailwind or headwind that investors should be mindful of in terms of the outlook for 2020, EBIT that and then just.
Yes.
Okay and on the searchlight transaction on slide 15.
It refers to the 395 million.
Is that the balance.
At the close or has that been picking.
To some degree over the past number of months just wanted to.
Appreciate what that.
Entry number once everything is closed.
Final tranche.
So Michael I'll take the second question and Bob can take the.
The first one on the Caf II and tailwind, yes, so with respect to the note.
I guess the way to think about it as they originally contracted.
$3 million.
The ultimate balance or kind of discounted from 425 based on cost of capital is the 395. So the 395, we will have we have been picking assets.
Since inception.
Back amount is doing the math at a 9%.
Coupon to get the 395 plus.
Yes.
Year of picked interest on top of it.
That makes sense.
Yes, so it's another way that hasnt picking over roughly the past years.
The 395, plus whatever that amount is over that period correct.
That's helpful. Thank you.
Okay, and the second part related to.
Tailwind I think the infrastructure funding.
On the margin some really great tailwind.
We've got a great engine for <unk>.
<unk> the.
Public private partnerships that are possible and we have been close to secretary Romano.
Rimando who has.
Working through the NTIA process for allocating 40 billion of the infrastructure plan, assuming it gets voted into law and we're assuming that that's likely to happen.
At some stage.
In the states.
We're getting very close to all the major states that we offer.
Servicing from Washington State through.
Northern New England, and Texas, Illinois.
Soda on their broadband offices to ensure we are best positioned to maximize that opportunity. So I think youll see us announce some some more of those partnerships in 2022 some.
Some more significant than others and.
And that will accelerate or increase.
Our penetration because those those are like building marketing engines. When you have the town the city or the county.
Pitching.
The broadband uplift that debt.
Effort will provide for the economy and the local.
Value of.
Quality of life.
Thanks.
One other question I was just noticing in your commentary and the growth of on net buildings I think it was from about 13200 to about 14600 <unk>.
Past quarter.
And I'm just curious can you help us conceptualize what the total addressable market for buildings are in your territory and how this growth are building can relate to an expanded addressable market for commercial revenue.
I can't give you a specific number top of mind I'm looking at my notes, but I would tell you that in in competitive markets.
We're getting more than our fair share.
By all assessment that we have done historically.
And that's usually in the 20% share range across what we call our metals.
Divided by size of customer. So we've got a very good channel management strategy and we only go into a building when we see it goes through a capital committee process that Steve chairs, our CFO chairs and.
And so it's quite disciplined theres more addressable market.
<unk>.
That then we've tapped and Thats why we show perpetual growth on data and transport across commercial and carrier. So we can maybe size that for you in the future, but top of mind I don't think I can.
Thanks.
Again, if you would like to ask a question Press Star then the number one on your telephone keypad.
Your next question comes from the line of Eric <unk> with Wells Fargo. Your line is open.
Hey, Thanks for taking the question.
Just wanted to go back to some of the supply chain commentary.
It's good to see your build costs have remained in line right. Now have you seen any changes in the labor market in terms of either labor availability or labor cost and maybe you could just talk through how you are managing those items.
Keep the build on time and on budget.
Yes, that's a great question Eric.
What we're seeing is some tension around fiber slices and engineers.
And some on the door to door.
Direct sales front.
And some of it's been Covid related on the sales front I think.
But.
The other has been just demand for fiber engineers in spices, and so with our most recent contract in northern New England, which was really a partnership with the union.
We're adding.
Roughly 80 to 100 technicians.
<unk>, many of which will be fiber spacers.
And where do we have our own training school that we've set up.
And so we're able to have a predictable cost because of.
It being an employee base.
And yet we have.
Very good.
Unit pricing arrangement with our contractors and so we're watching carefully those those agreements, making sure that where we have to we supplement them with some additional.
For closeout of projects, it's not moving the needle significantly at this stage, but it is a couple of points of cost increase on the capital side.
But it hasnt taken us out of our range of.
Unit at this stage, but it's on our watch list. So I'd say, it's it's engineers and.
And spices.
Spicer is on the build side and.
On the go to market side, some tension on direct sales resources.
Got it thanks for that just one more for me.
The small asset sale you did in Ohio, So just given the amount of private capital, where we've seen looking to get into the space. Today, maybe you could talk about other geographies. Other products that you would consider non core and would be willing to monetize it.
Circumstances warranted.
Yes.
Like in the past I'm hesitant to give specifics on that because.
The more we evaluate the more willing to build it.
If it fits.
Reasonable return so we're still in conversation with people on other geographies and if it's remote and not <unk>.
Necessarily in close proximity with with some of the larger states that we've already announced we're building in.
Then it's probably.
Potential for a spin off if somebody can service it faster than we're going to get to it.
And those discussions continue but theres, a certain cadence necessary when we have so much focus on the build plan on the go to market strategy on executing with the with the new service experience that we're only going to process those things. So so fast.
So many at one time.
So theres, probably some good queued up interest and we're going to work through them in a systematic way.
And probably have more to announce in 2022.
Great. Thanks for the question.
And again, if you would like to ask a question Press Star then the number one on your telephone keypad.
Okay. There are no further questions at this time I would like to turn the call back over to Mr. Bob <unk>.
Thanks, Julie and thank you all for your interest in our company and for joining our call. Today, we look forward to updating you on Q4 at our next call have a great day.
This concludes today's conference call you may now disconnect.
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