Q3 2021 Ituran Location and Control Ltd Earnings Call
Okay.
Yeah.
[music].
Ladies and gentlemen, thank you for standing by welcome to the two Ron third quarter 'twenty 'twenty. One results conference call. All participants are present in listen only mode. Following management's formal presentation instructions will be given for the question and answer session.
For operator assistance during the conference. Please press Star Zero as a reminder, this conference is being recorded you should have all received by now the Companys press release. If you have not received it please contact <unk> Investor relations team at GK Investor and public relations.
12123788040 or view it in the news section of the company's web site Www dot each run dotcom.
I will now hand over the call to Mr. Ehud Helft GK Investor Relations. Mr. Hal would you like to begin. Please. Thank you operator, good day to all of you and welcome to <unk> conference call to discuss the third quarter of 2021 results.
I would like to thank you to our management for hosting this conference call.
With me today on the call and I'll, Miss Jerry I'll show SKT CFO.
Deputy CEO and VP finance theory come our CFO Joanne.
I will begin with a summary of the quarter results followed by early with a summary of the financials.
We will then open the call for questions and answer session.
I'd like to remind everyone that the safe Harbor in the press release also covers the contents of this conference call.
And now Yeah would you like to begin please thank you I'd like to welcome all of you and thank you for joining us today.
We are very pleased with the results of the third quarter, which were again ahead of our expectations. We grew our subscriber base at the highest rate we have seen for two years with 25000 net adds.
The OEM segment is showing a recovery was 4000 net adds in our after market segment saw above average growth of 21000 net adds this.
This is ahead of our typically expected range of between 15 and 20000.
The growth we experienced in subscribers. It is a positive indication with regard to revenue growth in the quarter ahead.
We continue to see strong aftermarket subscriber growth in many of the geographies in which we operate even any quarter, which is seasonally weaker due to the holiday season than usual.
In particular, we see increasing contribution from one of our growth engine usage based insurance or UBI.
The consumer market is now becoming increasingly educated to the value that they gain by using a usage based insurance plan.
Rather than fixed.
This has led to increased traction and we are now working with all of the seven major insurance companies in Israel.
The Corona slowdown created plenty of new markets and opportunities and over this time new car sales are on the wall window we.
We identified a very strong secondhand car market in many of our geographies in Latin America and.
New Fintech startups as well as the larger banks have come in to provide the financing in these specific markets.
However, they all needed location based and connected car technologies service provider such as each one to monitor all the cause and driver behavior and <unk> reduced the risk of loss against the car.
We therefore initiated an approach to this financing companies and offered our solution.
Following.
On from these efforts we are now working with a number of partners in this area.
And we see great potential in which to expand this business.
While currently we are only in the initial stage received the interest and we therefore believe this has the potential to be significant growth engine for it to run starting from the second half of 2022 and layoffs.
I would like to discuss the electronic component shortage and increasing prices that has been widely reported and has increasingly become an issue for everyone.
To date, we have successfully been managing through the shortages is important to note that as primarily a subscriber service business the impact on it around to date has been low.
Primarily on the product revenue side, which is smaller effect on our bottom line.
There is also a potential indirect impact due to the potential slowing of new car sales simply because of the inability of common infectious to produce cars are they required quantity. However, each one has a number of growth engines, which will increasingly benefit us in the quarters ahead, which will compensate.
Four slows in global.
The new cost.
In summary, we are performing well, but most importantly, we are seeding new growth engines, which will accelerate our growth in the use of it.
I am more excited now than ever with our long term potential over the coming years.
I will now hand, the call over to early for a financial summary.
<unk>.
Thanks.
Yes.
First quarter, 2021 were $65 $7 million, and 9% increase compared with revenue of $63 million in the third quarter of 2020.
Revenue from subscription fees were $48 $3 million up 9% year over year.
The subscriber base amounted to 1.857 million as.
As of September 32021, an increase of 25000 net over that of the end of the period quarter.
And an increase of 85000 since the end of the third quarter of last year.
During the quarter there was both.
An increase of 21000 in the aftermarket subscriber base.
And an increase of 4000 and the OEM subscriber base.
Product revenues were $17 $4 million up 10% year over year.
The geographic breakdown of revenues in the third quarter was as follows.
Israel, 52%, Brazil, 24% rest of world 24%.
Operating income for the quarter was $13 $9 million or 21, 1% of revenues an increase of 32% compared with an operating income of $10 $5 million or 17, 5% of revenue in the third quarter of last year.
Sure.
EBITDA for the quarter was $18 5 million or 28, 1% of revenues, an increase of 23% compared with an EBIT EBITDA of $15 million or 20.
Four 9% of revenue in the third quarter of last year.
Financial expenses for the quarter was $2 $7 million compared with a financial income of $2 8 million in the third quarter of last year.
Difference between it.
The difference being primarily due to the change in the.
Save the one market kept utilization during each quarter.
Adjusted net income for the third quarter of 2021, which excludes the noncash financial impacts related to say that one was $9 $6 million or 14, 6% of revenues.
Earnings per share of <unk>.
46 cents, compared with $6 million or 10% of revenues or diluted earnings per share of 29%.
Cash flow from operations for the third quarter of 2021 was $11 $5 million.
Our September 32021, the company had cash, including marketable securities of $67 million and debt of $34 6 million.
And mounting to a net cash of $32 4 million dollar this.
This is compared with cash, including marketable securities of $78 8 million and a depth of $54 $5 million amounting to a net cash of $24 3 million as of December 31st 2020.
For the third quarter of 2020 and want a dividend of $3 million.
Was declared.
During the quarter. It ran purchase 71000 shares for a total of one $9 million until the end of September 32021.
Share repurchases were funded by our valuable cash and repurchases of it whereas ordinary shares would make based on SEC rule that'd be dash 18.
And with that I'd like to open the call for the question and answer session operator.
Thank you ladies and gentlemen at this time, we will begin the question and answer session. If you have a question. Please press star one if you wish to cancel your request. Please press star two if you are using speaker equipment kindly lift the handset before pressing the numbers your questions will be polled.
In the order they are a CFO. Please standby, while we poll for your questions.
The first question is from Tabby Rosner of Barclays. Please go ahead.
Hi, good afternoon, and thank you for the presentation I have three questions.
First one is just maintaining them on my hands, but with regards to sievers one.
What's the accounting treatment here are you a mark to market your.
Your stake on a quarterly basis or you added recorded at a certain value and given the situation.
To record an adjustment.
Actually to a mark to market is like financial assets.
Okay understood.
We set up the way I wanted to talk about the OEM dynamics a little bit.
Correct Z a CTO, adding 1000 increase that's quarter slowed housing.
Is it fair to assume it's coming from Latin America, and I guess can.
Can you remind us all.
In the accounting of those Oh, Yeah, and you add.
Any of these.
Including free trial period.
And I think at some point you used to give out three months it went down to one month.
Hum once news release.
First of all it's include the most of it is a free trial, the only country in which the free trial is a four one months.
Any say very few thousands of customers compared to the rest of the market is Brazil and few hundreds and in Argentina. Because this is kind of the end of the phase out of the business are those markets, but the risk which is the major news.
Hi majority of this OEM subscribers are at least four of 12 months and some of them are even more and I'm talking mainly about Mexico, Colombia, and Ecuador, and the free trial as I said is for 12 months is the minimum.
Okay understood and then lastly talk about the new growth engines that you mentioned you talked about some financial players.
That that might be interested into.
Your solution so.
Would you believe that you would work.
With the agreement you have for UBI and the insurance company, whereby we purchased it from you and then on the cost to the end users.
Okay. So basically as we are following the new segment when we realized in our that we don't want to be depend only on SVR and we developed a state of the art UBI solution, which today by the way I would say, it's close to a market show 100 presenting news.
And by the way most of the insurance companies are running a multi million dollars campaigns in the T V and in the digital most of it it's a white labeled bite one almost all of it. So we are talking today without getting too specific number of thousands and thousands of new subscribers per month.
Growing exponentially.
This is regard to UBI win the Corona time came and we were we've been in a situation that the.
Coal plants were closed specifically in Latin America.
Again, we had to think about how we can expand the markets what segments. We can offer when we realize that a there is I think.
Market, we chase.
It wasn't very clear.
Clearance before the Corona is the secondhand market in the subprime.
Oh boy the subprime customers.
This is something that we do in the U S. Almost fulfilled 15 use which may people know it as a.
By year.
And in some dealers or many dealers in the states when they financed a car they use our systems such as it Ronny in order to recover the car in order to get that out on the payments and on the location and sometimes in order to notify the the people that take the loss.
They miss the or having.
Mr. Some payments, so we decided to enter some.
Banks in Brazil, and in Mexico begin at the beginning and offer this solution in order for them to expand.
Giving them money or financing cause for people the credit lines are R. A N a.
A little.
When we convinced them that our solution they can have a better.
Control on those payments on those customers.
And they agreed to start working with us on the same time, if you know the entire.
Our Fintech World is now very growing many digital companies now offering.
Cause was financed finance to cause et cetera on a digital ways. We also approach them and we get a really open their mind from those are big players I must say and today, we are having a.
About.
Three large customers, it's still at the beginning as I said, because we are educating them. They are educating the market and its work in this in the same way as the UBI, meaning are they all of our customers, it's a bit too b market.
Those are again those are big players.
Yeah.
Hi equity and there is no risk it's like insurance companies.
Installed once they are final specific cars they ask us to install these units we installed it they pay for the unit and the baseball three years of the financing contracts for us kind of the monthly fees.
Yeah.
The output today is on the same acreage up with we have or the after market sales in Brazil, and in Argentina, which is a quiet.
A quite impressive quiet margins, but this is only in the beginning is growing exponentially. So I must say that interest will continue this is really going to be very important.
2023, 2024, it can be a very strong leg, because it's a new market.
Up until now when we compete for those customers we won.
We want the customer.
And we are the only supplier in the this is important for me to mention because again, the corona, sometimes bad things create people looking out of the box and that's what we did in this market was a zero players in our Mexico, and Brazil and today, we are growing at where educate.
The market and we're talking about the potential of millions of cars.
In each market I'm, not saying that this is going to be our our market share about D. C is the potential of the market every year in these two markets, Brazil and Mexico.
Great I appreciate the color I'll go back into the queue.
The next question is from David Kelley of Jefferies. Please go ahead.
Hey, good afternoon.
Thanks for taking my questions maybe to start I was hoping you could elaborate on the aftermarket.
Strength in the quarter and specifically the regional dynamics, we were just curious as the momentum in Israel and in Brazil.
There was some some signs of stabilization last quarter or so I was hoping you could provide color on what youre seeing there as well.
Ah Okay. So the main after market grows comes from our traditional business to the aftermarket, which is Israel and Brazil of course, we have some contribution from the rest of the form the other geographies, but the majority aftermarket subscribers are.
Comes from Israel, and Brazil, So I will divide it up I'll talk about these two geographies in Israel.
We have our three.
Maine.
Segment, the stolen vehicle recovery the fleet management in the UBI.
The stolen vehicle recovery and the fleet managers has continued to grow very correlating to the new car sales in Israel CNC say many years of our operation in this segment. We still have you know the churn because we have customers outstanding is eight years and more so the gross the net growth of this segment.
It's not significant but it has continued to grow as it was years, if we were in the <unk>.
In stable in zero, So D C or I must say that even in these segments, we succeed to grow.
But the most.
Gross aging in 2021 for subscribers in Israel was the UBI, because we get more and more customers, we get more and more insurance companies are integrating our system and it's a gross exponentially. So this is the three segments that continue to grow but the UBI now is the main.
Don't forget that it seems that youll be ice quiet, new the churn of customers is still very low so.
The contribution to the net adds in Israel.
Is it is a substantial is important.
This is in Israel now looking at our head we have to understand that.
The cars the importers in Israel.
Our our forecasting for the coming quarters.
Declining in there.
Selling cars.
By the way.
Important thing is that their request for causing Israel the demand is highest ever.
I spoke with some car importers in Israel for example, if in Israel. There was 280000 or 300000, the highest ear, which is D. C are they say that if they could bring a half a million of cause either would sell if no people waiting.
<unk> for car and they're willing to pay.
Wait so it's important because in one day. They request is more important the demand is more important because they show the potential for example in a situation to where he's no demand now the problem is the offering the cars.
Industry, we know the problem. So this is one of the reason that Ken a little bit slowing down our growth in subscribers in Israel.
I must say that the nice thing you need to one and we mentioned at.
At the beginning of this.
Discussion is that AR and we saw it in the Corona most of the churn in the customers of the aftermarket in Israel and also in Brazil by the way is when a person who want to buy a new car. So we sell is car used car is old and the new buyers, sometimes there's no motivation.
Two two renewals to come and be our subscribers. This is the main reason for churn. So what's called a people cannot buy a new car, they're still stay with the old car and that churn is a is not tight so that's what happened in the Corona.
If you look backwards, you'll see we didnt lose many subscribers in the Corona.
And this is the situation in Israel and this is the situation that we forecast for the future. So instead.
In selling outerwear in Israel, probably there will be decline, but the gross profit margins at this point is very low sometimes we lose some.
Some money to sell the hardware.
God subscribers this is because of the.
Operator.
The operation leverage I think that the problem of selling cars in Israel Robyn.
Probably we'll have very little four hour grows into subscribers if at all but it will affect some.
Brazil the market is different we are selling are mainly.
Hey, Bill.
B to C.
We choose the Ics at one can see Google.
Now this contribute.
The highest in the last two years for our subscriber base that we show in the quarter.
During the Corona, we saw a negative churn than.
And then we get to a point, which it was about.
And now we have back after a more than to use towards positive net says few thousands of subscribers per months in Brazil.
We are less affected by the new car sales in Brazil.
Most all the segment that we are a I would say the signal that we are very dominate.
In the Brazilian market is the ease of secondhand cars old cars most of the people in Brazil.
Ensure only a brand new cost for one or two use then to decide to quit and sometimes they don't even should cause sometimes they lucas solution such as we are.
Offered so I believe that in Brazil, we will continue to grow our subscribers and add to this is something that is still in a very low contribution is a fleet management or the b to b market, which in Brazil, I wouldn't say it was neglected, but we were very <unk>.
Focus only on the B to C, but again during the Corona, we had enough time and we have Ah.
A situation that we add.
Add some resources to approach the segments of the B to B and we add more fleets and we are adding more.
Said more financial.
Let's call it financial partners or financial banks that needs our services to generate more way more.
Lenders for people that will use this financial services. So this is another segment, which is now contributing.
A little bit but.
As I see it now for the coming years this can provide.
Provide a very high a push to the net new subscribers of the aftermarket in Brazil. So overall I mean I am expecting.
Although there is a problem with the car sales the new car sales I am expecting that we will continue to grow our net subscribers specifically in the aftermarket.
Okay got it that's helpful. Thank you and then maybe last one for me on operating expenses.
Or are we starting to see general and administrative cost pick up again in the quarter. So how are you thinking about the opex trajectory.
This assuming that the post COVID-19 normalization continues here.
Okay. So there is two.
Two things they seem that's relevant to do first of all is this a specific water I think it will be a represent a number for opex.
Before that there was some items that still wearing.
In the we're not execute I would say, we still have some salary.
Salary cuts.
Cut down because of the Corona and it said on the Q2 and are almost full and full of it came through Q3 since we grow. So we had some budget for advertisements in Brazil et cetera, but I think that this is a representative quarter of of Opex second we have to understand that in some division.
<unk> around the world.
The main segment, it's a it's the R&D people, which say we found that it's more difficult specifically in Israel, but also in other countries to recruit people.
Because the world probably feel that.
Everything is now a high price and it's very difficult to recruit people so I am expecting.
Some additional cost in some salaries, but I think that it will not be material and we can continue to look on the opex of this quarter is a I would say is.
Is that right.
The right number.
Okay, great. Thanks, so much.
The next question is from Sasha Karim of Ipi. Please go ahead.
Hi al.
Your statement, you mentioned the potential for and buy.
Buy here pay here in Latam to generate a significant acceleration in subscriber growth in second half of 2022 and then just now you also mentioned the RFP when those subs is similar to your Latam aftermarket business. So.
Yeah that sounds.
Like it should accelerate surface revenue growth as well over that period.
It does sound different in the U S scrap buy here pay here subs are low <unk> and low margin. So could you tell us is there a reason for that difference to persist between the last time in the U S.
Or do you expect the op who buy.
Buy here pay here in Latam to also have declined significantly over time.
No.
The U S market is totally different and I would say.
Not to say emerging market or Latino Latin America is totally different business in the U S. First of all the competitive landscape.
Second is the way that the dealers are many time, our financing their customers and they have other offers.
Such as the extended warranties and things like diesel.
And it's a different market the way we sell it in the U S for 15 years, its totally different which of course its influence on our output in the states specifically in Latin America, It's a different model the model is more.
I would say more similar to as I said with the UBI today B to B business, where we are actually leasing the hardware by the way in the states, we sell the hardware to the dealers and they have some margins here. It's different we sell it's we call it Docomo ductile.
How very stay on our balance sheet. So it's different and we get the modestly returns together with the monthly services, along with two or three or five years and this allow us by this model and.
To show higher first Io ALPA and second it's a different mentality of.
The business model.
I would not expect it will drop of course, if we get too many too large volume for a specific customer is no doubt that we.
We will have some.
Different grades of price there.
Per customer.
If for example, if a bank will commit for a 100000 or 200000 or 300000, if you will get different prices, but this is a regular commercial life, but currently when we talk about numbers with no specific commitment.
This is they are.
But I prefer to have a commitment for a large number and reducing the output because in the end.
Large numbers, because it's an operating leverage more of the large numbers is.
Very important to increase the profits even if we pay.
Even if we hit a little bit.
Yes, that's a.
Good problem to have.
Can I also just ask you about this industry in general and this applies to the U S. As well how sustainable is the growth the recent growth in buy here pay here.
Do you think that the industry.
The gross may unwind somewhat once the pandemic truly and perhaps because people were buying costs. This way to avoid using public transport and they had no other way of getting a car.
First of all I don't know to tell you about D with the U S. We do it 50 news we are now increase because we increased our market share I'm not sure. If the market grows. This is we got the U S.
Again, I must be honest in the U S. Our market share is quite low we're not dominant the market.
In Latin America, what will started recently I think that we will dominate the market. Currently we are the main player I assume that the competition always people see success and they will join like FM in Brasilia as the Ics, but today, we are still dominating the market.
The player I think is way way behind Us I hope I hope that.
He will succeed to do it also in the financing.
Segment in Brazil, and Mexico now.
Yeah.
I don't think it's a something that happened because of the Corona I think that we had to think what we do when a new car says is declining and we identified it but it was there always once we realize for example, without giving names one of the.
One of the largest commercial banking Latin America, which provide loans to buy cars for tens of millions of cars when we approach them.
He made.
Made a survey and you get it to.
The results that there are few millions of car that he gave up only because of this reason now we allow them.
To come back and.
And get those few millions launched its interest.
From interest you can increase the interest you reduces risk. So we can extend the potential customer base for those banks, it's not happened because of the Corona we.
Unfortunately, we didn't do it before the Corona because we were very very busy with stolen vehicle recovery and with the fleet management et cetera, but when we had two new core solution, sometimes when you feel pressure, that's what actually happened, but I think that the payer.
Bayou in Latin America, specifically, because its emerging markets because people salaries are low because people securities. Although I think that Oh, we identified through the Corona, but this market is existing these market will do we will continue the question what will be our market share. This.
He is a question Mark I don't want to be arrogant, but I really believe in our state of the art technology I believe.
We have the best services I believe that we as we have to trust from all insurance companies, we will lift trucks from all financial institutions and we lead this market and if we lead this market in a in a year or two it will be very substantial.
Substantial number that will contribute to our results that we showed no.
I'm, saying it again, it's taking time, we increase now with a subscriber base of this segment. Once we have a substantial number it will be dramatically influence on our profits.
Thanks for that that sounds very encouraging my my last one if I could could you just give us an update on two segments I don't think we've touched upon.
It's around <unk> in Mexico, how that's going any improvement there and then and then fleet management, which she said last quarter. It was going to experience very strong growth just want to check if that's still coming through.
Okay regarding Ics in Mexico as I said, there was a delay at the beginning because of the Corona because we had to find the right timing to launch it. So we launch at the numbers today are growing and growing even exponentially, but again when we have one 8 million subscribers.
Sure.
Still hundreds per months.
It's not material. So we are not provide too much data and information about it. It's now under kind of a soft launch I would say yet.
I don't know, we see a very good attraction.
And interest and people are getting to two bites through the websites, but again I cant and I don't know yet to say where that is going to be a material number.
The time that its operate is quite low.
So we started only beginning of this year and for a new segment educating market, it's a bit to see don't forget distributor C. B to B you have to convince three or four or five big players B to C. You have to convince and educating our millions of people in order to attract few thousands per months.
It will take more time, but it looks good and it looks promising.
This is regarded as regards fleet management, So fleet management I think that they touch it when I talk car before fleet management, mainly in Brazil is now growing together with the finance.
A customer will put it on the same by the way it's under the same the same let's say the same.
I call it fleet management, because it could be to be divided to each device to the.
To the finance, we see still a low number and secondly, as we used to be to sell it to commercial.
Hey.
Cole praised it use it for a control and manage and get data from their fleets.
And this is a growing and this is now I think one of the main growth engines in Brazil.
It's a 2022 and now I think it's very promising and it will contribute as I say to the 2022 numbers it will be.
The important contribution.
Very good thank you.
The next question is from Abba Horwitz of OSP. Please go ahead, hi, good afternoon, I was running if you mentioned it all brink and.
And if you didn't could you speak about it.
Yes.
<unk>.
A company that we have.
17% and we are the largest market share and we have the higher our board.
Board representative.
<unk> is a company that develop a solution for the last mining for the deliveries.
And.
The last round was done.
In the quarter between the last quarter, and we had and we discuss it in our last conference call, but I will repeat.
The round was on evaluation the company raised $100 million on evaluation of billion dollar companies typical SaaS company, which are growing which is a very a unique offer to enterprise groups.
And also to.
Small and medium businesses.
Most of their customers are in the U S.
Recently, thanks to the around they're open.
Opening accounts in Europe, and in Latin America, which.
Okay.
Okay.
It allowed the company to expand its growth and I believe that the money.
Money that the company has.
And the gross debt at show will allow the company to a first of all not to go for another one soon.
At least expect hope.
And believe that the next time it will be.
Be well.
Or an IPO or an M&A, but again this is something that nobody can forecast, but this is the goal of the company.
The value is actually high then you need to run the balance sheet, because indifferent and save it one here, it's because we have.
I would say major portion or did the counting.
Regulation.
Yeah.
Luke's on this investment is kind.
Kind of an equity investment so it zero on our balance sheet, because we already had two.
Take part of the losses during the last five years, which actually.
But as the investment to zero, so once we will realize value by.
<unk> shares so it will be a full 100%.
Profit of course.
Without the taxes, so the value of our holdings no.
Total value is about.
Based on the last round about $170 million.
Okay. So first of all that's an off balance sheet asset that I. My understanding is it's a very good asset do you have any sense.
What the timeframe means for them to I P. O I I've heard that they want to IPO, you know better than me I'm, just telling you what I've heard.
Or you said M&A potentially.
Is there a sense when when this could happen as I say 2022 event is it a.
Later than that do you believe whatever will happen will happen in 'twenty two.
First of all if there will be actual things they wouldn't.
Be able to to disclose it but but being.
Moral and this there is no plan today any actual things taking place to make an IPO. So with my experience, it's not taking place now which will not happen in six to eight months. Because this is a time always needed in those startup is even maybe need more so I'm not expecting it will happen in 2022 I can't.
<unk> forecast, whether it's happened in 2023 in 2024, because all of US know that IP always sometimes it depends on the market conditions are not always on the company condition.
And M&A is something that I mentioned, not as a goal, but I think that.
Always a company that touch in a market where there are large.
The larger enterprise companies.
Need solution for deliveries for last mile et cetera.
I'm, not saying that it's something impossible that one of those giant will need this solution.
No I don't think that without any reason salesforce and <unk>.
<unk>.
One of the remaining vessels in the in the in brings so I said it only because of my salts in the least but nothing is based on any actual things I believe that if it's a good company. It will continue to grow it has a unique technology.
We know what happens in the world.
Hope that this will be the next stage, whether it will be one or two years from now I have no really any any something specific.
If they can count on but just final question on that is I mean, when we look at this it's about 88 and a half dollars of of real value asset value based on the evaluation that it's given right now and it is all in off balance sheet asset, meaning that it's zero on your books and that's substantial that's not often companies.
Two this is eight to eight and a half dollars of real value that's not being recognized in the stock at all and and I'm wondering a is there a way to do that or was that really just requires some sort of event such as an IPO or M&A.
And if I may add I remember when your asset it was worth under $50 million.
We can do two things one to talk about it because it's real and second by shares.
There is not depend on us.
And this is actually exactly how you described it.
Until the moment that we will realize this value to manual too.
Public shares is something that on the accounting regulation will not appear in our I would say our direct.
Our financial statements.
But you're right. This is a value everybody can know about it and can decide whether they are.
Included in there are evaluations, but you're right.
Alright. Thanks, this should be our biggest problem right. So okay.
Thank you.
If there are any additional questions. Please press star one.
If you wish to cancel your request. Please press star two please standby, while we poll for more questions.
There are no further questions at this time.
Before I ask Mr. <unk> to go ahead with his closing statement I would like to remind participants that a replay of this call will be available tomorrow on each runs website www dot <unk> dot com Mr. Shao Roski would you like to make your concluding statement.
On behalf of the management of it Ron I would like to thank you our shareholders for your continued interest and long term support of our business I do look forward to speaking with you next quarter and hope that we will all see better times by day have a good day.
Thank you this.
This concludes the <unk> third quarter 2021 results conference call. Thank you for your participation you May go ahead and disconnect.
Yeah.
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Peter.
Yes.
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Okay.
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Peter.
Sure.
Okay.
Sure.
Yeah.
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