Q4 2021 Onespaworld Holdings Ltd Earnings Call
You for standing by this is the conference operator, welcome to the one small world fourth quarter and fiscal year 2021 earnings call. As a reminder, all participants are in listen only mode and the conference is being recorded.
After the presentation there'll be an opportunity to ask questions to join the question queue. You May Press Star then one on your telephone keypad should you need assistance during the conference call you May signal, an operator by pressing star Zero I would now like to turn the conference over to Allison Malkin of ICR. Please go ahead.
Thank you good morning, and welcome to one style world fourth quarter and fiscal year 2021 earnings call and webcast before we begin I'd like to remind you that certain statements and information made available on today's call and webcast may be deemed to constitute forward looking statements.
The COVID-19 pandemic continues to have a significant impact on our operations cash flow and financial position.
The uncertain and dynamic nature of current conditions and its ongoing impact could materially alter our outlook. These forward looking statements reflect our judgment and analysis only as of today and actual results may differ materially from current expectations based on a.
Number of factors affecting our business Accordingly, you should not place undue reliance on these forward looking statements.
For a more thorough discussion of the risks and uncertainties associated with the forward looking statements to be made in this conference call and webcast. We refer you to the disclaimer regarding forward looking statements that is included in our fourth quarter and fiscal year 2021 earnings released which.
<unk> was furnished to the SEC today on form 8-K, we do not undertake any obligation to update or alter any forward looking statements whether as a result of new information future events or otherwise. In addition, the company may refer to certain adjusted non-GAAP metrics.
This call explanation of these metrics can be found in our earnings release issued earlier this morning.
Joining me today are Leonard Flaxman, Executive Chairman, and Chief Executive Officer, and Stephen Lazarus, Chief Financial Officer, and Chief Operating Officer, Leonard will begin with a review of our fourth quarter and fiscal year 2021 performance and provide an update on our operations.
Our key priorities then Steven will provide more details on the financials and our liquidity I would now like to turn the call over to Leonard.
Thank you Alison good morning, and welcome to <unk> fourth quarter and fiscal year 2021 results conference call.
We delivered a strong fourth quarter, which represented an excellent finish to the.
The period was highlighted by significant acceleration in our top and bottom line trend.
Total revenue for the fourth quarter nearly doubled from the third quarter and increased significantly year over year.
Key operating metrics compared favorably to the fourth quarter of 2019, representing our most recent comparable periods of normal operations.
We had positive adjusted EBITDA for the first time since the pandemic began.
In Q4 cash burn was better than our initial outlook.
We attribute our strengthened performance to our enhanced business model, which executed a seamless in terms of service even as we faced extraordinary challenges.
Overall, the euro was successfully executed our strategy, which furthered our market leadership.
The operation of health and wellness centers at sea and at destination resorts on land.
I'll return to service protocols and readiness as well as our team's flawless operating execution.
Well further tested with the anticipated emergence of the recon COVID-19 variant in December .
Which resulted in a moderation of that translate in the fourth quarter and at the start of Q1 2022 .
More recently a positive performance trajectory has resumed on the strengths of our business model and staff.
We expect our performance trends to accelerate throughout 2022 and.
And generate sequential growth with our annual performance expected to deliver.
Positive adjusted EBITDA and positive adjusted net income.
I want to thank our entire team for the tireless efforts that have contributed to our improved performance.
Your combined efforts led to another.
And outstanding experience for the guests that visit our health and wellness centers as more voyages regime and occupancy increased at our destination resort spas.
Turning now to the highlights of the quarter.
Total revenues were $85 7 million nearly double third quarter total revenues of $43 6 million.
This growth reflects contributions from health and wellness centers that reopened on 118 ships.
That resumed operations.
The contribution from 48 destination resort spas.
Adjusted EBITDA was positive $4 $8 million with positive contribution from our health and wellness centers onboard cruise ships and in destination resort spas that land and we ended the quarter with total liquidity of $46 million.
We had many accomplishments for the quarter, most notably a flawless returned to service continued as mentioned the cortisol, that's ready and trained staff to ramp up on an additional 40 cruise ships.
At quarter end, we had health and wellness centers on 118 ships.
That had resumed voyages and expect to resume services on 167 ships by the end of the second quarter and all contracted ships by the end of the third quarter.
In 2022 we anticipate operating health and wellness centers on 12 new ships.
New ship builds that will be introduced into service by cruise line partners.
We saw a record demand by cruise ship guests for our services.
Well capacity on cruise ships remains below historical levels.
We were very pleased to see continued high demand for our services.
Key operating metrics during the quarter for 2021 .
Also compared favorably with our fourth quarter 2019 performance the.
The most recent recent comparable period normalized operations.
For example, we continued to see record penetration rates of overall cruise ships serviced in our health and wellness centers.
Additionally, pre booked statistics and average guest spend handily exceeded 2019 performance.
We saw growth across key operating metrics as compared to fourth quarter of 2019. The most recent recent quarter with operations not impacted by Covid.
To this end the quarter included double digit growth in average service spend per guest and average guest spend with revenue per store per day up in the high single digits.
Pre booking as a percentage of service revenue was another positive story with a 300 basis points increase versus Q4 of 2019.
In keeping with one spa worlds tradition of supporting our onboard staff corporate team, we introduced our traveling sales and revenue support teams commensurate with the increase in volume of ships returning to service.
Ensuing flawless returned to service will continue to be a top priority going forward with the team completing numerous training and service orders while onboard vessels.
We had a tremendous response from prior personnel in new applicants, who have been eager to come back to a health and wellness centers.
At year end, we successfully placed 2200 cruise ship personnel.
Vessels for actual and anticipated voyages.
Becoming the challenges of the pandemic.
Securing visas COVID-19 testing and other travel restrictions.
Despite these hurdles are team numbers are ecstatic to be back at sea.
By the end of the first quarter, we expect to have 2339 stop reimburse on 126 vessels.
As a leader in training and certification. We were also pleased to see our London Wellness Academy reopened during the third quarter.
The Academy is experiencing very strong demand from applicants with nearly 300 students trained since reopening.
Innovation in our service and product offerings continued yeah.
We continue to expand our offering in many spot technologies with tamasha cool sculpting true sculpt and micro needling, among other therapies and now including IV infusions.
And our continued focus on providing recovery services, we began to offer Hyperides service and retail product on board.
As we look ahead, we will continue to invest in our exemplary stops constantly innovate and guest experience service and product offerings and leverage our irreplaceable.
Global operating infrastructure to build upon a pre eminent position.
Clearly, we believe and our unwavering strategy throughout the devastating pandemic positions.
Which positions us to deliver long term revenue and earnings growth across the global expansion of our operations.
We are seeking to enhance value for all our one small world stakeholders.
With that I'll turn the call over to Stephen who will comment on our fourth quarter and fiscal year 'twenty on results and our liquidity position Steven.
Thank you Lynette good morning, ladies and gentlemen.
As Len had mentioned the fourth quarter for sales and operating performance accelerate strongly from the third quarter with all key operating metrics nicely ahead of Q4 2019.
We are very proud of our staff and team for their commitment to one small world and their dedication to providing service excellence is exemplary.
Especially given the extraordinary circumstances created by COVID-19, and its variance.
I will now share a few of the fourth quarter and fiscal year results.
For the fourth quarter total revenues were $85 $7 billion compared to $3.8 million in the fourth quarter of 2020.
And up from $43 $6 million sequentially compared to the third quarter of 'twenty or 'twenty one.
The three months ended December 31st 2021 revenues were derived primarily from our 118 health and wellness centers onboard ships had been assumed wages and all 48 open and operating destination resort health and wellness centers.
Cost of service with $58 $7 million compared to $6 $9 million in the 'twenty 'twenty fourth quarter.
The increase was primarily attributable to the costs associated with increased service revenue of $66 $1 million in the quarter from our operating health and wellness centers at sea and on land and increased cost for that.
Operations at our health and wellness centers at sea and on land.
Cost of products with $15.5 million compared to $6 $8 million in the 'twenty 'twenty fourth quarter. The increase was primarily attributable to costs associated with increased product revenues of $15.8 million in the quarter from our operating health and wellness centers that she and on land.
Together with a $2 million noncash inventory reserve recorded in the current quarter to reflect the write down of inventory.
The fourth quarter of 2020 also included a 4.9 billion dollar noncash inventory charge for the write down of inventory write.
The rock down in both periods as a result of inventory that is expected to expire due to the extended pause of operations caused by the COVID-19 pandemic.
Net loss was $10 $9 million compared to a net loss of $71.4 million in the fourth quarter of 2020.
The $65 million improvement was primarily a result of a $21 million improvement in our loss from operations.
Yes, the $43 million positive change in the fair value of warrants.
The change in the fair value of the warrants is the result of changes in the market prices deriving the value of those financial instruments.
Adjusted EBITA was positive $4 $8 million as compared to an adjusted EBITDA loss of $15 $4 million in the fourth quarter of 2020.
Importantly, this represented the first quarterly period that the company recorded positive EBITDA since the onset of the COVID-19 pandemic.
For the fiscal year.
Total revenues were $144 million compared to $129 million in the 2020 fiscal year.
Results in both 2021 and 'twenty 'twenty, we're substantially driven by the COVID-19, pandemic, which resulted in the cancellation of all crucial wages and closure of all destination resort health and wellness centers during mid March 'twenty 'twenty through December 31st 2020.
<unk> months ended December 31, 21 revenues were derived primarily from the operations of the health and wellness centers onboard ships, having returned to.
Your service and our destination resort health and wellness centers, having resumed operations primarily during the last two quarters of the year.
Cost of service for $108 $9 million compared to $107 3 million in the 2020 fiscal year.
Increase was primarily attributable to the resumption of operations in the last two quarters of 2021 and offset by the impact of COVID-19 pandemic during 2020.
Cost of products were $26 $6 million compared to $32.1 million in the 'twenty 'twenty fiscal year.
The decrease or improvement was attributable to a lower amount required in 2020 , one versus 'twenty 'twenty related to the decrease in the inventory write down for the decline in the net realizable value of inventories principally the result as mentioned all the excess slow moving and exploration of inventory caused by the cessation of a cruise line.
And consequently, our operations due to the COVID-19, pandemic and an improvement in our business mix.
Net loss was $68 $5 million compared to a net loss of $288 million in the 'twenty 'twenty fiscal yeah.
The decrease or improvement in the net loss principally resulted from the nonrecurring $198 million goodwill and trade name intangible asset impairment charge recorded in 2020 offset by the positive impact.
In the last two quarters of 'twenty or 'twenty one.
Adjusted EBIT for the year was a negative $18 $9 million as compared to an improved negative $42.7 million in the 2020 fiscal year.
We ended the year with total liquidity of 45 $8 million.
At year end $10 million remained available under the at the market program.
With projected liquidity continuing to improve we do not intend to utilize the remainder of the ATM program.
The current availability under our line of credit is $13 million the.
The cash burn rate for the quarter of $5 $3 million was better than our expectations of $8 billion to $10 billion.
And that was at the better end of our updated guidance that we provided on January 10th.
We expect cash burn between two and $3 million in the first quarter of the year due to canceled voyages and lower passenger rates driven by the surge in Covid cases due to the Army Corps and variance that said, we expect to achieve positive cash flow beginning in the second quarter and continuing.
Shortly thereafter as well as for the full fiscal year.
As it relates to our outlook for 2022.
If at all.
Akshay uncertainties surrounding the continued impact to our business from the COVID-19 pandemic, we will continue.
Perfect.
Uh huh.
We expect to incur in two.
I need to.
However, we expect.
Adjusted EBITDA and positive adjusted net income for the year.
And with that we will open up the call for questions. Please.
Thank you.
We will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad.
We'll hear atone acknowledging your request please limit yourself to one question and one follow up should you have additional questions. Please rejoin the question queue.
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Our first question comes from Steve <unk> of Stifel. Please go ahead.
Yeah, Hey, guys good morning.
So.
Yes, as we think about this year and you know positive EBITDA.
It can mean a lot of different you know that that can obviously, you're not you don't have a lot of different outcomes I'm, just just kind of staying positive EBITDA and I understand you're not going to give real guidance. At this point. It's just it's just too typical too difficult to do but I guess, maybe if you could help us think about maybe some of your high level assumptions, you know to get you to that positive EBITDA.
A level EBITDA level that might be helpful. I mean, and you know meaning.
Meaning do you assume spend.
The spend levels remain status quo or you know maybe what type of occupancy are you assuming your cruise line partners are running through the year I mean anything now to kind of help us kind of frame the year would be very helpful.
Yeah.
Yeah, Steve Good morning.
The biggest driver of that.
Positive change in EBITDA in the delivery for the obviously is volume right. So it's the ship count levels that.
We've referred to we ended Q4 with 118 is a significant increase to the end of Q1 226, and then an even more significant increase to Q2 of 167 with all vessels sailing by the end of Q3 and ending the year on 178.
So as we've seen before.
Because of the increases in spend on board, even at below 50% occupancy levels, we've been able to generate positive EBITDA on a four wall basis and with the increased number of vessels that is now translating into generating positive EBITDA on an enterprise basis. So we don't expect for that.
Occupancies till later in the year Q3, but more than likely Q4, even without that though we do believe that we will achieve positive EBITDA, starting perhaps this quarter, but certainly next quarter and continuing for the year.
Okay understood and you're assuming you know from a spend level perspective, I mean, I assume you haven't seen any kind of material changes in spend levels.
Over the past couple of months and Youre, just kind of assuming that spend levels remain pretty much status quo through the full year.
We have not seen any changes in the first quarter remained strong despite the fact that particularly in January and.
But in the beginning of February there was certainly some impact from Amit <unk> with regards to occupancy levels, but the folks that were coming in with those.
Yeah.
Even without that incremental spend level, we're confident that our EBITDA numbers will be positive for 2022.
Okay understood and then a.
Second question.
Current liquidity position I mean, it seems like you guys are that would have a pretty good spot assuming your now your cruise partners continue to roll out their entire fleets, which looks like they're doing a pretty good pace at this point, but I guess moving forward as you know your free cash flow base starts to grow can you maybe help us just remind us what the priorities for that cash flow generation are going to be.
Yeah of course so.
As we've thought about it more you know and as we've said and consistent with what you've said in the past.
We want to do both a little bit of cash on the balance sheet and alternative to doing that and the way the path that we will go down most likely is the first thing. We will do is we will pay off the $6 million that is drawn on our revolver because that de facto gives you that increased flexibility if you need to redraw that.
The second thing, we will likely do is turn our attention to paying down $25 million second lien, which carries interest at LIBOR plus 7.5%. So are we.
We think that it would be good and it's certainly accretive to take that out of the mix.
Thereafter, and so now we're starting to look into 2023, we would revisit again all of the things we've talked about in the past with regards to you know, perhaps paying down some of the first lien and ore and it doesn't have to be mutually exclusive returning cash to shareholders in the form of stock repurchases and dividends.
Yeah.
Okay got you great color. Thanks, guys appreciate it.
Our next question comes from Sharon Zackfia William Blair. Please go ahead.
Hi, good morning.
So I guess a few questions on the Oh Micron impact are you kind of back to where you were pre omicron is that kind of that positive trajectory, you're referring to and then.
I'm curious on the I believe some of the cruise ships are starting to relax the Max mask mandates.
I'm wondering what you're doing in your spas in and kind of how impactful or not that might be for your business.
Yeah, So Sharon I mean, let me just.
Can you just repeat the first part of the question again I'll address the second part first.
The the cruise lines, it's all three of the big brands have pretty much set.
You know, we know they've all signed up for the voluntary guidance and oversight of C. D C.
<unk> recently, so they're all on board with that but what's interesting is from March onwards that game to relax I'm wearing.
Well the Mas mandates that they had particularly in indoor areas.
It remains to be seen exactly where they might still require but at least for now it looks like masks are going to be somewhat thought here. If you went away one way I Wonder if you don't want away one that's fine too, which I think is going to allow for our guests to feel so much more relaxed and subtle.
The indoor areas that they previously had to them. All so I think that's that's a big change in terms of the guest experience and I think that's that's certainly going to help confidence filled back in in the total experience of cruising as it used to be.
So your first question was.
Yeah sure so on the positive trajectory that you sided.
Does that does that mean, you're back to like pre omicron trends.
Yeah, I would look at as I look at the fourth quarter. I mean, we were really you know November was really really a good months.
Going into December we still continue to pick up speed.
And then right at Christmas you know went on recon kind of hit hit US badly we saw a fall off.
Not necessarily in the number of people cruising because the load factors out of Christmas and new year, Obviously high people that book does cruises and went on board, but I think Christmas day, because suddenly you know and everybody saw Wow.
Contagious on Recon was we suddenly saw a falloff in participation on board, but then it picked up again of a knee so new year was decent.
Not I would say as decent as we had hoped but it was certainly.
You know much better than Christmas then you know January as Steven mentioned, we saw some fall off we saw cruise lines.
That's a tremendous amount of cancellations of cruises people deferred that cruise bookings out but from everything that we have seen we have certainly seen the trajectory of demand pick up again here in February .
And from what I'm seeing right now based upon all the metrics we saw it yesterday.
The ending of February we're starting to pick up steam again so.
I'm very optimistic at all it's going into spring break with most mandates coming off of record definitely falling in terms of cases, even deaths. It looks hopefully like you know.
Will it be on this thing and I think the confidence in guests coming onboard is suddenly getting back to pre COVID-19 levels.
Great that I can't wait for spring break as well and then last question just on the 12 New ships you have come in in this year I mean, any kind of new innovation or design changes, we should think about.
So we are going to definitely expand you know we as I mentioned, we are looking at what we can do with hyper is sort of the.
Yes.
Centers, where we can do extended services as well as retail we introduced that in December and actually have pretty decent retail attachment along with us.
Covering services and they have an array of different services and products that we intend to expand in 2022.
We're also going to have more drip loud noise out there and do much more of the IV infusions, maybe immunity shots.
We have a host of new innovation ideas coming through the pipeline right now that would be presented to the board and were adopted in December and we continue to work on that.
All of those projects.
So we're very excited about.
Only seeing the demand for our service continued at a high level of penetration continue at better than historical levels, even with the lower occupancy that was actually seeing spend obviously, it's high single digits I think with all the newness that we're doing some of the design features that we will introduce them to some of the ships.
We're pretty excited about what the back half of 2022, starting to look like.
Okay, great. Thank you.
Yep.
Our next question comes from Steph Wissink of Jefferies. Please go ahead.
Thank you good morning, everyone I just had a couple of follow up questions to that the prior set of questions from.
The analysts I wanted to ask a little bit about the pricing and what you're seeing kind of real time in terms of your ticket values. It does seem like the you'd be more comfortable cruisers are back spending a bit higher how should we think about that as the next wave of ships comes online do you expect that average transaction to moderate or do you think you can maintain a elevated level of spend per pack.
Sure.
Yeah.
Yeah, that's a great question Steph I mean, obviously, we've seen great success with the rollout of our new pricing strategy and pricing architecture.
And moving people more out of the 15 minutes slots into the 75 minute slots at higher prices, while not falling off in terms of the frequency of services that we are seeing end demand is high.
I would say listen onboard spend across.
Most of the cruise lines.
Vanities is solid, including ALS, which we suddenly have reported here in our fourth quarter and continue to see now in February again, once we got past the sort of little blip.
From a recon so.
I think it's going to be very interesting to see if we can sustain it suddenly the demand is very strong and you know people are coming in and they spending and continue to look at some of the longer services and suddenly they priced accordingly.
Okay. That's helpful. And then just on the model the salary and payroll taxes line you have been building back and I wanted to just make sure. We're clear about how to model that line item. If you can give us any direction on.
As you staff back up as you build back here at corporate structure.
You should be thinking about that as a percentage of the.
Go forward revenue.
So we've been very very disciplined with regards to bringing back positions at corporates.
And quite frankly with with Omicron, we actually took a bit of a pause in some of our proposed hirings just to make sure and see how that actually played out well.
We will continue however have the necessity to start bringing additional folks back as new ships are introduced to service. They were trying to measure the cadence, we're bringing them back to try in alignment with when those ships are reintroduced into service. So you should expect to continue to see that number increase all the way through the year.
Up until the end of the.
Likely back to where we've been at before although we may have some.
Productivity improvements at this point in time I think it's the safest bet to assume we get back to the same types of head count to the corporate level.
Okay very helpful I'm not sure one more out just because it's topical in the headlines with respect to eastern Europe . Some.
Some of the geopolitical unrest there any.
Reason to think changes in your ability to source labor.
Or any of those kind of Mediterranean corridor places that would have been occurring that might see some.
Impact.
No we don't expect to see.
Any I mean, we have we have a lot of Ukrainians onboard maybe one or two Russians I think most of them had left clearly before.
The last six days of war.
We don't have that big a contingent from that area and certainly all the other areas that were impacted by on recon.
Now opening up including Australia, So I don't foresee a shortfall if indeed, we see a continuation of the war.
For a for a longer period than that than may be expected. So it's not going to impact the way in which we recruit train I don't know.
See any impact to our labor pool.
We do have two smaller yeah, we do have two smaller land based hotels destination spas.
In Russia.
And those two assume won't be impacted here in the near term, although they they are not material to revenue last year from both facilities was less than $150000. So we do expect just a very minimal impact specific yesterday relates to that.
Thank you.
Once again, if you have a question. Please press Star then one.
Our next question comes from ACS Georgieva of Infiniti Research. Please go ahead.
Good morning, guys congratulation to Atlanta, and Stephen on the great execution, and a dozen offerings such great results on an EBITDA and a cash flow basis.
I wonder whether.
Given the metrics you provided.
Deep penetration rate and the occupancy of the spas can compare it to Q4 2019 are given that chips, we're scaling in some cases, well below 50% occupancy.
Yeah.
Yeah Okay.
As I said I'm sorry, thank you for.
So your comments I appreciate it.
All we really did not.
I'll get off the pot in terms of you know every single part of the execution the team was fantastic.
Onboard staff are performing well and it's been difficult it has been difficult.
But as I mentioned before.
Penetration of board is better than it was in 2019.
So it will remain to be seen as we introduce more and more ships if that level can continue to stay as high as it is which is mid double digits, which is certainly an improvement over the historical 11%.
We do believe that with all of our initiatives that we've put in place our ability our diagnostic tools that we're using now to watch the first 48 hours of a cruise the loss of 48 to troubleshoot really not doing well that we are on top of that business day to day more so than we were ever able to do.
So in 2019, and that's a function of all the work that we did during the COVID-19 period to improve diagnostic capabilities with data et cetera. So.
I have never seen a team more in charge of the data and able to impact the data.
Not on a historical basis, but on a on a prospective basis. So that's a good thing.
And I think you know we will suddenly see.
You know pre booking continue to be a major focus of ours. We have one major brand that will come on at the beginning of the second quarter, that's going to improve our ability to pre book and as you know pre booking has been important part of guests spend pre booking guests spend 35% more.
Any thoughts on the first day of a vacation so all in all I would say you know given.
Low load factors compared with 2019.
Our performance has been exemplary.
So you've been able to capture them the same.
You have had the same occupancies in the Spa Ah is if the ships are full well that would be.
Just touch on my part.
It'd be a big stretch because we haven't got there yet I mean these ships are still carrying less than 60% on average and on either Christmas cruises were above.
And.
Across the different banners I do believe that.
Now that we're getting to the tail end of them recon, we hate to see load factors continue to improve post spring break and into summer.
Certainly I think Europe is looking good despite what's going on in the Baltics suddenly those ports that are impacted will be avoided by the cruise lines.
But the rest of them it looks to be healthy so far as well as Alaska. So.
Oh, I think load factors as Stephen mentioned will improve certainly in.
The second quarter get back to normalized levels, probably at the beginning of the fourth quarter and continued to stabilize thereafter.
Well I think you're.
You're uniquely insulated from the impacts of the war and so that is helpful. Bye.
Basically the cruise ships deal with this problem as opposed to you having to work with the logistics of that in terms of bookings I think you mentioned, a 300 basis point increase can we compare that to what the base would that was previously.
Can you just repeat that compared to what.
Hum.
300 basis point increase in our pre booked service.
Yeah, we are working off of what number if I could ask.
So pre bookings were sort of high mid.
Double digits, there now closer to 20%. So that's certainly moved up.
Oh, so that's a very large increase then.
It's a it's not one of them.
So it's a very good increase yes.
There's more to be done it's definitely an improvement in you know we've been speaking about pre booking for a long time.
But I think with the adoption by a lot of the cruise lines and one more big cruise line to come on board, we're expecting to move the needle on that.
Time.
And you just gave me a great Segway Ah you mentioned that the at the end of Q2, you expect a major cruise line to come on board, we'll just shared the name.
I Dunno I expect you know the answer to that.
No no no we're not expecting new market share, we're expecting a new.
Major brand or should I say, an existing major brand to adopt a pre booking platform.
Oh, I understand and as of Tomorrow is part of the portfolio at this point is that right here.
We have asthma.
Yes. Thank you so much Leonard that and again great job guys. Thank you. Thanks.
Yeah.
This concludes the question and answer session I would like to turn the conference back over to Mr. Flaxman for any closing remarks.
Thanks again, everybody for joining us today, we look forward to speaking with you when we report our first quarter results.
Thank you.
Okay.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
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