Q1 2022 P10 Inc Earnings Call
Hello, and welcome to the PS 10 first quarter 2022 conference call. My name is Irene and I will be coordinating your call today.
I will now hand, you over to your host Mark Hood Executive Vice President of operations and Investor Relations Mark. Please go ahead.
Good afternoon, and welcome to the <unk> first quarter 2022 conference call. This is Mark Hood EVP of operations and Investor Relations today, we will be joined by Robert <unk>, Chairman and co CEO Clark Web co CEO , Chris <unk>, Chief operating officer, and Amanda cousins.
Chief Financial Officer.
Before we begin I would like to remind everyone that this conference call as well as the presentation slides may constitute forward looking statements within the meaning of section 27 a M.
Of the Securities Act of 1933.
Section 21 E of the Securities Exchange Act of $19 34, and the private Securities Litigation Reform Act of 1095.
Forward looking statements reflect management's current plans estimates and expectations.
Are inherently uncertain.
Actual results for future periods may differ materially from those expressed or implied by these forward looking statements due to a number of risks or other factors that are described in greater detail under risk factors in our annual report on Form 10-K for the year ended December 31, 2021 filed with the SEC.
On March 21, 2022, and in our subsequent reports filed from time to time with the SEC.
The forward looking statements included are made only as of the date hereof, we undertake no obligation to update or revise any forward looking statement as a result of new information or future events, except as otherwise required by law.
You may find a reconciliation of GAAP to non-GAAP financial measures in our earnings release on our website I will now turn the call over to Robert Good afternoon, I'm, Robert Alford, Chairman and co CEO today, we will discuss our first quarter 2022 financial results, what we're seeing in the market what differentiates <unk> from <unk>.
Years, and why we think we build something unique in the alternative asset industry.
I am pleased to report, we delivered solid financial results and met our quarterly objectives across the board key financial metrics reflect strong execution.
We ended the first quarter was $17 6 billion in fee paying assets under management on a year over year basis that is a 34% increase and on a pro forma basis, that's a 27% organic growth rate year over year revenue increased 32% GAAP net income was up.
188% adjusted EBITDA increased 31% and adjusted net income rose by 84%.
All around I think our teams performed well and we continue to see many growth opportunities.
In March of 2022, we provided guidance that we expect to raise approximately $5 billion over the course of 'twenty two and 2023.
And that the cadence of capital raising will likely be more backend loaded in 2022 with momentum extending into 2023 I want to reiterate that guidance as we remain confident in our business model, our unique market position and best of breed solutions and private equity venture capital private credit.
And impact investing.
We believe clients around the world will continue to seek out superior returning strategies with a record of performing through economic cycles. We believe we are well positioned to achieve our targets.
Finally, I am pleased to report the board of Directors has approved the implementation of a regular cash dividend.
Our inaugural quarterly dividend will be in the amount of <unk> <unk> per share.
Flared on May 12, 2022, and paid on June 28, 2022 to all shareholders of record as of May 31, 2022.
The Board has also approved a $20 million stock repurchase program to take advantage of potential dislocations in our public valuation.
We believe that both the dividend and the buyback reflect the beauty of our business model with strong free cash flow and nearly infinite returns on capital. We believe these announcements complement our existing effort to bring additional strategies to the PJM family through M&A on that front the pipeline remains full.
Now I will hand, it over to our Chief operating Officer <unk>.
<unk>. Thanks.
Thanks Robert.
We continue to see momentum in our business and in the first quarter, we launched our fund for our NAV lending solution and <unk> fund to our GP stake solution. We expect both funds will have a first close in the first half of this year.
The fundraising effort is being led by the <unk> marketing team and this really speaks to the collaboration between our various affiliates across the <unk> platform.
We are also preparing to open a Dubai office, where P 10, marketing professional will be added to the team.
We continue to see a lot of opportunities to raise capital outside of the U S and this new office should drive additional global engagement.
We also launched our 12 degrees fund.
Strategy focused on investing in providing capital solutions to leading emerging and first time alternative investment fund managers for.
For 12 degrees, we teamed up with Eaton partners to leverage their global placement network and to lead fundraising.
We expect to continue to innovate with new products to meet demand and look for ways to partner with Premier franchises.
Demands from our Lps is strong and then the deployment environment remains healthy despite the turmoil in the public markets. We believe our focus on the middle and lower middle market is an advantage as our underlying portfolio companies have far less leverage than larger peers and can exploit change of growth and spin.
Terrific verticals.
Not only do we see good demand for our funds, but our separately managed account business continues to thrive in.
In the first quarter gross fee paying assets under management increased by $720 million with about a third of that coming from SMA are originated from our venture capital vertical.
I think that speaks to the outstanding fund performance and a trusted nature of relationships. We've built over many years with both our Lps and GPS.
We're excited about the opportunities we see ahead and confident in our ability to demonstrate solid organic growth in 2022.
I'll now turn it over to Clark for a few comments.
Thanks Fritz.
We believe the volatility in todays market highlights the strength of our business model.
Our revenue stream is primarily composed of management fees generated a long term locked up capital.
We have robust profit margins and excellent visibility into our future cash flows.
With almost no capex, a small amount of interest expense and a $500 million tax asset we are incredibly efficient at converting a dollar of adjusted EBITDA and to a $1 of free cash flow.
This free cash flow could be directed towards enhancing shareholder returns either through M&A dividends or share repurchases.
Given the magnitude of free cash flow, we expect to generate we believe there is plenty of room for all three.
Further unlike our peers carried interest does not flow through our P&L, which means we have added stability and visibility into our earnings stream, regardless of market cycles on additional balanced against volatile markets as our diversification across verticals and strategies today.
Today <unk> is highly diversified with four distinct verticals private equity.
Capital private credit and impact.
Within each of these verticals, we approached the market with multiple fund strategies and.
In Q1 for example, we had approximately a dozen funds in the market.
We believe we have multiple ways to win for <unk> shareholders and because of our focus on the lower middle market. We generally don't compete with our larger or publicly traded peers.
Finally, while cycles come and go we believe we sit at the intersection of certain structural trends in the market.
One such shift is the emergence of impact investing for.
For over 21 years or impact vertical enhanced capital has brought economic opportunity to disadvantaged overlook communities as of 2021 enhanced capital has raised over $2 6 billion.
And impact assets and invested across more than 700 projects in businesses in 38 States, Washington D C and Puerto Rico.
<unk> include renewable energy historic building rehabilitation affordable housing and small business financing.
Many of the investments benefit businesses owned by underrepresented populations, such as women persons of color and veterans in addition to creating jobs and underserved communities.
In March of this year enhanced capital was recognized by impact assets and selected for the IAA 52022 impact fund managers list. This distinction is evidence of the meaningful difference our projects have made in People's lives.
We believe over the medium and longer term ESG minded investors will see <unk> as an attractive place to invest capital.
With that let me hand, the call over to Amanda.
Thank you Clark I'll review the key financial results for the first quarter of 2022 fee paying assets under management were $17 6 billion, a 34% increase on a year over year basis.
In the first quarter $720 million of fundraising and capital deployment offset by $395 million and step downs in exploration.
Step downs and explorations are a normal part of our business and typically take place at the end of the fund's life or when a fund has reduced fees after a period of 14.
That's an additional $684 million and step downs and expirations for the remainder of 2022.
By way of comparison for the trailing 12 months step downs in exploration totaled $897 million.
Revenue in the first quarter with $43 3 million, a 32% increase over the first quarter of 2021 average fee rates were 99 basis points during the quarter. As a reminder, when you look at across the cycle of four quarters, you should see our fee paying assets under management deliver approximately a 100 basis points of revenue and.
For 2021 revenue did in fact average 100 basis points of fee paying assets under management.
Operating expenses in the first quarter were $31 7 million, a 31% increase over the same period, a year ago, primarily attributable to the additional operating expenses associated with the acquisition of <unk> and our continued investment in the business.
Adjusted EBITDA in the first quarter with $22 5 million, a 31% increase over the first quarter of 2021 for the quarter. Our adjusted EBITDA margin was 52% in line with our previous guidance that 2022 would be back end loaded due to the expected cadence of fund closings and revenue associated.
This capital deployment.
Over the course of the full year, we expect to maintain a 55% adjusted EBITDA margin.
For the first quarter GAAP net income increased 188% and adjusted net income Eni was $22 3 million and 84% increase over the $12 1 million reported in the first quarter of 2021.
I believe our results this quarter continue to demonstrate our ability to efficiently convert a dollar of adjusted EBITDA to adjusted net income.
Cash and cash equivalents at the end of the first quarter were $23 $7 million with a strong operating cash flows we have options for how to allocate our excess cash which includes funding acquisition paying dividends repurchasing stock or paying down debt.
In the first quarter, we made an additional $25 million debt payment further reducing our debt balance and subsequently our interest expense at the end of the first quarter, we had $125 million outstanding on the term portion of our loans and $65 $9 million outstanding on the revolver, we have $59 $1 million available on the <unk>.
$125 million available as an accordion feature on our credit facility.
We also signed an agreement at the end of the quarter to buy out $1 1 million option from a former employee of active power for $12 5 million, which we paid in the beginning of the second quarter.
Finally at March 31, 2022, there were $35 million 686073 class a shares outstanding and 81 million 506670 for class B shares outstanding now lets turn it over to the operator for a few questions.
Ladies and gentlemen, if you would like to ask a question. Please do not hesitate to press star followed by the number one on your telephone keypad now.
You changed your mind. Please press star followed by the number two for those who have joined online. Please press the flag icon on your web browser also when preparing to ask a question. Please make sure.
That your phone is on mute locally.
Our first question.
Comes from Michael <unk> from Morgan Stanley .
Michael Please go ahead.
Great. Thank you and good afternoon. Thanks for taking the question, maybe just coming back to some of the commentary around the fundraising goals that you've set out the 5 billion. It sounds like you guys are very comfortable with the prior guidance here reiterating that here this afternoon.
We've been hearing from some others across the industry around some congested and crowdedness in the fundraising.
Backdrop, right here as well as denominator effect impacting Lps with the markets coming down but private portfolio is not just curious what sort of impact you're seeing in the marketplace. How to what extent is just coming up in conversations what is it out there that you see that gives you the confidence in that 5 billion fund.
Raising call just curious your perspectives on that sort of commentary that we're hearing from peers and to what extent, you're seeing it or not and if youre not why is it that what's different here that youre not seeing that.
Yeah.
Yes, Michael This is Clark. Thank you for the question I would say a couple of things and then I'll pass it over to Fritz for additional commentary.
The first is I think it's really important to recognize the <unk>.
Verticals that we're in they are not the verticals that the peers that you referenced are in whether it's in private equity being in that lower middle market space, obviously being an impact being in venture capital EBIT in our private credit being in something like Nat lending, we feel like we do have a protected niche in that way and folks are coming to us for something.
<unk> then they might be going to some of our peers. That's the first thing. The second I'd say is I think it's also instructive to remember the scale. So we've talked about $5 billion that we intend to raise over the next 18 months many of our public peers raise that on a weekly basis.
And so I think we're able to find those themes of growth.
In a market that may be a little different today than it was even six months ago Chris.
Chris anything you want to add to that.
Yes, I might just add what gives us comfort is that we are in front of Lps on a global basis.
Every day.
We have about a dozen funds that are currently in the market.
Few new strategies that are out there.
Our guidance and our belief in that number is really based on discussions that we have with not only current Lps that maybe cross selling between units.
Also with new Lps that are interested in and joining the one of the P 10 verticals for the first time so.
Most confidence.
Discussions.
So that being said Michael it's a good question and as you.
As we look out we were confident now and things seem to be going well the world changes all the time, but right now we're still confident.
Great and if I could just a follow up question on M&A just curious how you see the current volatile unless certain market backdrop here impacting the potential for P tend to perhaps transact on the M&A side, just given this volatility to what extent is that impacting the number of deals the types of deals that are crossing.
Your desk.
As the interest from sellers are evolving and how have multiples adjusted if at all in the private side.
Yes, it's a great question one of the things that we highlighted when we went public was our.
Our M&A is much more of a marriage then it is a buy sell discussion.
Historically have not engaged much in banker led processes.
These are conversations that take years in some cases to come to fruition, because we're not buying a firm from somebody we are marrying that firm into the <unk> family.
The reason that folks that have very successful 20 year strategies want to join us as really multifold number one they think we can accelerate there.
AUM growth I think we're getting better at that and we have much more of a track record doing that today than we certainly did at any point in the last five years. The second is because of how deep we are in the markets in which we play we actually can accelerate capital deployment. If you think about one of the reasons why our GP Stakes business, where our NAV lending business decides.
To join US and could have joined a lot of different folks was their belief that not only can we help them raise capital, but also accelerate deployment given the relationships we have in these verticals.
And so with all that said, we absolutely have a lot of discussions going on in the pipeline is full we.
We feel like there are some products that we would love to bring into the mix and we do feel like we're going to be able to deploy capital into that arena in the next couple of quarters obviously.
Won't know until it's signed and closed but we are certainly busy in the M&A Department.
Great if I could just sneak one more in there just on the pipeline since you referenced that on the M&A side, just any color you could share just around how would you characterize that pipeline today versus 12 months ago. What are some of the types of strategies or distribution regions and channels sort of embedded within there or that could make sense to add them. However, you want to answer that.
Yes for us I mean, we really stick to our knitting. There are three different types of acquisitions, we'd like to make number one within our existing verticals within North America, adding a strategy or a capability that we don't have number two doing exactly what we're doing today in the four verticals, but doing it in Europe and Asia.
And then number three adding a fifth vertical there's.
Theres activity across all three.
And I would say is as busy as its ever been.
Okay.
Great. Thank you.
Our next question comes from Ken Worthington from JP Morgan Ken.
Your line is open.
Hi, good afternoon. So maybe another question on sort of market environment, I'm curious to see how the conversation or the dialogue, you're having with your investors in.
In venture capital is changing at all it seems like gross growth investing.
It seems to be particularly focused I'm, sorry, VC investing tends to be most focused on emerging growth companies and.
Those seem to have been under particular pressure.
This year in this quarter.
To what extent is that impacting your dialogue and.
Your V C.
Yes.
Yes, it's a great question. There obviously is a lot out there in the public markets I would say we operate much earlier stage and we really focus our capital in the top.
8% to 10, GPS that we all know about and who have been.
Very reticent to add new Lps for a long period of time, so from our standpoint, we really don't see a change in either our ability to raise capital or to deploy capital our performance remains quite strong.
So while the screen on things publicly traded May look one way I do think our funds look a bit different we're much more focused on an early stage. Robert you. Once that you want to add something there but to your point, Ken Yes, it's certainly with the market.
With the NASDAQ and high growth companies coming under pressure, it's certainly a bigger it's certainly a topic of conversation with all of our Lps and potential Lps.
Whereas.
Two quarters ago that was almost nonexistent.
And so there is certainly.
Just like all of US looking at what's going on in the marketplace. There is lots of conversation about it.
Is not translated one way or the other into it certainly had an accelerated capital raising but.
As we said earlier it hasnt slowed it down either we're still we still believe we should be able to raise capital in our venture strategy.
Okay great.
And maybe just turning to expenses.
I think there might have been a re class maybe last quarter between G&A and professional fees. So if I just think about those two lines together in the December quarter. The expenses I think were about $5 5 million this quarter about $6 7 million.
So like a decent jump is this a good star.
The starting point for thinking about the rest of the year or was there anything unusual in the numbers this quarter.
I'm, sorry can I just can.
From your question.
<unk>.
Can you can you repeat that part of the question, Yes, I think it's the combination of professional fees and G&A.
So if I look at those things like the combination if I look at those two lines together.
Right Okay.
We did have a.
We did have I would say onetime costs.
And created with then.
Our adjusted EBITDA number of about $1 million.
I think as you.
As you think about it moving forward.
The combination of the two less $1 million.
Thats a good run rate.
Okay brilliant thank you very much.
Our next question comes from Robert Lee.
K B W.
Your line is open.
Great. Thanks.
Afternoon, Thanks for taking my questions.
Maybe a couple of thoughts on capital management, so the new dividend.
The dividend of <unk> <unk>.
If we look forward or should we think of you in the future kind of targeting a payout range with growth.
25% or is there anything that we.
Think of it as.
We look ahead.
It's kind of pegged that too and then maybe the second part of that is with the.
<unk>.
Repurchase of the options in does that flow through to this.
Warrant charges that flowed through to the share count so all else being equal like a million a million shares.
Sure Susan to come out of the adjusted share Count next quarter.
You wanted to and so on.
On the dividend.
We have.
We don't have a target of payout ratio moving forward as we look at our opportunities being able to pay out the <unk> every quarter looking forward, we have great visibility on that in no way impacts.
Our ability to execute on any M&A strategy, given our cash flow and if you think about our acquisitions, we're certainly buying cash flow as well so.
It doesn't impact it doesn't hurt us in any way like that so right now I think we would just continue to.
I don't want to give any forward guidance in terms of what we want to expect that you'll hold me too. So I think we'll stick with <unk> and then as we grow and continue to grow and there is the ability.
Sure.
Really to grow the dividend, we will do that at the appropriate time.
And then on the buyback.
I think it's instructive, we are in the business of deploying capital and one thing that I think is unique about our model at least historically.
Our free cash flow really doesn't have a targeted internal use we don't have a balance sheet heavy business model like some of our peers and the GP commit as you. All know is funded by the individuals we think that bolsters alignment. So this free cash flow really is free cash flow as Robert said, we think giving some of it back to our owners in the form of a <unk>.
Evidently it makes sense, we obviously are cognizant of the public markets and the opportunity that the public markets is serving up with our share price.
And then the last thing is.
We do believe that we can expand the franchise through M&A, but by buying back stock, we're basically buying back more of <unk>. We know the valuation we know the business hopefully as well as anyone and we think we think it's a good use of capital.
Okay, Great and then maybe a follow up for Amanda.
Just a refresh on the adjusted EBITDA margin guidance of.
Q freshwater memory, 65% kind of exiting the year or youre thinking of 55% average for the full year, which would imply obviously.
Big margin step up.
Over the next couple of quarters and given the fund raising goals you have in clinical data may be more backend loaded this year and into next year.
You have.
Any.
Any range you think we should be thinking about for EBITDA margin as we model ahead to 2023 and beyond.
Yes, I think so for 2022 I would say.
That average of 55% adjusted EBITDA margin.
Correct.
2023.
So in your implied math is correct that the margins need to be higher in the back half of the year that also corresponds with our fundraising so it very much averages to 55%, but given where we started it's not where we finished.
And then on the out years, it really is a balance for us reinvesting into our business expanding our sales force we mentioned in opening an office in the middle East.
Versus.
Generating a higher margin and paying that cash flow out we feel like 55% to 60% is the right range.
And in investment years, it's probably 55 in a more of a harvest year, maybe it is upward pressure, but we do feel like the guidance, we set out a couple of quarters ago I should hold.
Okay.
Great those are my questions. Thanks, so much.
The next question comes from Chris Kankowski from Oppenheimer and company.
Your line is open.
Good afternoon, and thanks for taking my question I'm going to ask you about my favorite pages of the press release pages eight and nine.
The money pages and.
Just kind of looking at the cadence of the fund raising.
It looked like.
RCP 16 still attracted more than 200 million this quarter.
And you see even some of the like.
2021 dated funds still seem to add on nicely.
The.
The co investment fund and so on and so generally how long how many quarters should we expected or in those kind of.
Historic flagship vintages funds is it is it all kind of done by the second quarter.
Well, so we made those changes because of the questioning that you gave us last quarter. So we want to make it.
Suddenly more transparent for you.
So when you think about our fund series it really depends by vertical.
In our private equity vertical we really always have a primary fund of funds in the market. There may be two or three days and the entire year. When we don't our Lps really see us as a programmatic solution.
So as soon as fund 16 closes I think we give the team a day or two often 117 quickly launches. So that is always in the market and Youll just see it go from one to the next.
Other funds in our private equity vertical are more episodic.
And so as we have a final close.
And our direct fund for example that will stop taking capital we're busy deploying those funds and then we hope to be in the market.
With those follow ons.
Across our other vehicles impact is essentially evergreen private credit.
Is also in many ways evergreen because a lot of our capital charges fees on deployed.
And then with.
With our GP Stakes business that is episodic I think we highlighted that we expect to be in the market very soon with fun too.
So that is something that we'll be talking about on a go forward basis, and then finally adventure while we don't always have a primary fund open youll see we did reach a hard cap on fund seven.
We do have ancillary funds that are in the market and there is also an SMA component that actually showed up nicely in Q1, so with <unk>, we are in many ways.
Mirroring the private equity playbook, we want to always have product in the market providing solutions, both the GPS and lp's alike, and so I think youll see some creativity in the R&D lab, there with some new products coming out.
And with <unk> I think you mentioned the first close was.
Due in the second quarter is that going to be one of those things thats.
Are those funds is going to be open for a couple of quarters and we will see it move up or is it going to be a first close and then a couple of quarters later there'll be a second close and that'll be it for two or three years.
Yes.
With both of those funds I would expect multiple closes and fundraising could extend beyond.
Three or four quarters.
It depends on market conditions, but it's a big amount of capital being raised in those two funds and we certainly want to give everybody the opportunity to do their diligence and sign up.
Okay, Great. That's it for me thank you.
Our next question comes from John Campbell from Stephens incorporated John Your line is open now.
Hey, guys. Good afternoon, thanks for taking our questions.
So two questions first.
First just kind of bigger picture I don't know how comprehensive accurate that the industry stats around this but I'm sure you guys track at some in some shape form or fashion, but the question here is.
As far as like dry powder on deployed capital.
What is that looking right now and that can be across larger fund sponsors or maybe just kind of zeroing in on the middle to lower middle market. What does that look like now today versus kind of last few years.
You mean for the industry or for us for.
For the industry.
We do.
It has a T in front of it if you add up all the different verticals we're in.
We read the same reports you do in terms of a trillion dollars in private equity and $800 million in private credit I will say that the big Big numbers don't impact us all that much. We really are focused on some niche year market smaller end of the market.
And where we actually feel like the heavyweight in many ways. So the big numbers come and go we actually don't spend as much time thinking about some of those big industries.
Makes sense and I am just curious I mean, obviously a lot of volatility in the equity markets.
A lot of outflows I'm just I'm just curious just how impactful.
And that increase of the dry powder might look like for you guys.
Yes so.
Let me, let me say a couple of things and then obviously folks jump in.
The equity markets are very volatile the debt markets are volatile too.
We certainly think that may.
In order to our benefit given we do have 20, plus year track records and folks have seen how our funds perform.
The financial crisis, and the tech wreck and Covid, they've kind of seen how we perform through the cycle. We certainly think we are a safe pair of hands.
So we do think it's possible.
That folks would like to get out of a daily traded.
Up and down 3% type of security and into something else with that said when market sell off everybody freezes for a minute and then decides how to go forward. So what we're doing is we're focusing on staying in front of the Lps, making sure. We get I mean, we do have 2500, Lps, which for a firm our size.
Is quite a large number we think theres a great opportunity for cross sell we're seeing that in the numbers I know, we talked about it a couple of quarters ago. We're now seeing the cross sell show up in our numbers and we feel like it's early days.
Yes, that's great color and then second question here, obviously I think some of this could be helped by the new 1% dividend yield.
Congrats you guys forgetting that.
<unk> instituted and then also the buyback authorization I think that probably helps but relative to your valuation I've I've personally been surprisingly the stock still trading a couple of turns below your peers I think one of the pushback. We get is around the lower tax rate now and views. It that is not sustainable over time, you guys had talked to them several times, but I think it bears repeating.
Repeating if you guys can kind of run through your take on that and how or maybe why you should be a structurally lower taxpayer overtime.
Yes so.
Thank you for the question and we'd love for that yield not to be 1% wed love for it to be 50 or 25 basis points.
The fun way.
The market can figure that out over the long term in terms of the tax assets today, we've got about 525 million of tax assets Theres a slide in our earnings deck I think it's slide 21, and it shows that about $200 million of Federal Nols, and then 300 million plus are from amortization. So we do feel like at least $500 million.
Our earnings are going to be tax free, but then it raises the question on as we do additional M&A, we fully expect to get the benefit of additional amortization and step up as we expand the platform and so <unk>.
Commensurate with additional deals that we that we do you should see that.
The amortization balance actually grow.
And there is a virtuous cycle. There. So we think we should have a structurally lower tax rate because of that.
Now if for some reason, we don't find additional ways to deploy our capital to expand the franchise through M&A. It just means that the owners are going to end up getting a lot of dividends and a lot of share repurchase because we do have our free cash flow is truly free cash flow. There really are no internal reinvestment needs for the business.
Okay. That's all very helpful. Yes.
Currently we have no further questions. Therefore, I would like to hand back to Robert <unk> for any other remarks Robert.
Just wanted to thank everyone for their interest in <unk> and thanks for joining us today, and we look forward to.
It will be.
Out in about at conferences and visiting investors over the next quarter. So we look forward to meeting are seeing anyone and everyone. There and if not we look forward to.
Touching base with you.
At our next quarterly conference call, Thanks, very much.
Thank you ladies and gentlemen. This concludes today's conference call. Thank you for being with US today have a lovely day ahead you may disconnect your lines.