Q2 2022 Trinity Capital Inc Earnings Call
If you need audio isothermal press.
Let's start here.
Yeah.
Good afternoon. My name is racer and I will be your conference operator today at this time I would like to welcome everyone to Trinity Capital Second quarter 2022 earnings Conference call.
Our hosts for todays call are Steve Brown, Chairman and Chief Executive Officer, Kyle Brown, President and Chief Investment Officer, David London, Chief Financial Officer, Michael Tester, Chief Accounting Officer, and Sarah Stanton General Counsel, Jerry harder Chief operating Officer, and Brian Cadets Chief Credit Officer are all.
So present today's call is being recorded and will be made available for replay at eight P. M Eastern time.
Replay of the webcast is available on Trinity capital Investor Relations Web site.
At this time, all participants have been placed in a listen only mode and the floor will open for your questions. Following the presentation, if you'd like to ask a question at that time. Please press the star and one on your telephone keypad. If at any point. Your question has been answered you may remove yourself from the queue by pressing the alky. If you should require operator assistance. Please.
Press Star Zero, we ask that you. Please pick up your handset to allow optimal sound quality. It is now my pleasure to turn the call over to Sarah Stanton. Please go ahead.
Thank you Rachel and welcome everyone to Trinity Capital Earnings Conference call for the second quarter of 2022.
Trinity's second quarter 2022 financial results were released just after today's market close and can be accessed from Trinity's Investor Relations website, IR docs Trinity cap Dot com.
A replay of the call is available in trinity's webpage or by using the telephone number provided in today's earnings release.
Before we begin I would like to remind everyone that certain statements that are not based on historical facts made during this call, including any statements relating to financial guidance, maybe deemed forward looking statements under federal Securities law.
These forward looking statements involve known and unknown risks and uncertainties. There are important factors that could cause actual results to differ materially from those expressed or implied by these forward looking statements.
We encourage you to refer to our most recent I see SEC filings for information on some of these risk factors Trinity capital assumes no obligation or responsibility to update any forward looking statements.
Please note that the information reported on this call only as of today August four 2022. Therefore, you are advised that time sensitive information may no longer be accurate at the time of any replay listening or transcript reading now allow me to introduce Trinity capital Chairman and CEO .
Steve.
Thank you Sarah and thank you to everyone joining us today.
You saw in our earnings release this afternoon, we generated.
We generated solid second quarter results. Despite the recent turmoil in the capital markets.
He has been a public reporting BDC for 10 quarters now and during this time, we continue to build our team our track record and our operations through leveraging the Paas platform. We built over the previous 13 years, we stated before going public in January of 2020, we plan to scale the business by investing in best in class talent.
Growing our revenues and expanding our NII, which will contribute to our dividend. We are now navigating our second market downturn in two and a half years as a publicly reporting company as we continued to deliver on our promises to shareholders in the short time since our first quarter as a public reporting BDC our team has grown.
From 29 to 52 employees are total assets more than doubled from under 500 million to over 1 billion a major milestone for Trinity Our quarterly investment income has more than tripled from $10 9 million to $33 5 million.
NII per share has grown from 24 to.
The 51 cents.
The second quarter and our core dividend has grown from 22 cents to 42 cents with our core dividend increasing now for the sixth consecutive quarter. In addition to our supplemental.
15th dividend that we paid for the last two quarters.
Trinity's estimated spillover income is $2 per share, which will allow us to continue supplementing our growing core dividend or reinvest off the balance sheet to further grow investment income for our shareholders.
As I mentioned, we have weather to economic storms since becoming a public reporting BDC and while still in the midst of a second downturn Trinity has absolutely delivered for our shareholders, we pride ourselves on consistent and thoughtful growth as well as dependable performance and we've done just that.
Turning to some additional key highlights we achieved another strong quarter for commitments and fundings, leading to a record investment portfolio.
Our origination team delivered steady deal flow, allowing us to grow our investment portfolio during the quarter, which we expect will lead to earnings growth in the second half of 2022.
This performance positions us to capitalize on market trends, even as we closely monitor recessionary pressures and the volatile macro environment.
Have the right team and strategy in place heading into the second half of 2022, and I am confident in our industry, leading position as we enter into what looks to be a broader challenging credit and rate environment in the coming months.
Credit quality in the portfolio remained strong with 98% of our debt investments at cost performance.
During the quarter, we strengthened our liquidity position by selling $57 5 million of our common stock and we upsized, our keybank credit facility and availability under the facility by 100 billion to a total capacity of $400 million and availability of $300 million.
Subsequent to quarter end, we reopened our 7% bonds and issued an additional $57 5 million of fixed rate long term debt due in January of 2025.
We'll dive deeper into the trends we are seeing in the venture capital landscape, but I can speak for our entire team when I say Trinity is poised to capture opportunities in this environment companies will continue to look for capital providers that can add value beyond the term sheet that is exactly what Trinity team brings.
Trinity's versatile financing solutions to meet the evolving demands of today's challenging market. We have a platform. We have a team and we've got a strategy in place that will accelerate our business through its next phase of growth in the second half of 2022.
We believe our platform is built to deliver strong returns even in the current macro environment I will now turn the call over to Karl Brown, our President and Chief investment Officer for some further thoughts on our progress in more detail on the market.
Great. Thanks, Steve and good afternoon, everyone Trinity continued to build on this momentum in Q2. These efforts have put us on solid footing as we head into the second half of the year.
At Trinity Culture is an important part of our strategy, we built a unique culture of entrepreneurial spirit and attract the best and brightest talent.
We tried ourselves on this we continue to strengthen the roster, which has led us to a healthy increase in deal volume our quality reputation for working with our portfolio companies. When things don't go to plan is helping us navigate more challenging credit rate environment now more than ever.
Turning to our results three of these impressive record of originations continued in Q2 with $302 3 million in new commitments, bringing total commitments for the first half of 2022 to approximately $608 million.
We funded approximately $193 8 million of investments, leaving our portfolio to grow to $1 1 billion on a cost basis, an increase of 15, 8% over Q1 2022.
We set a record of $416 million of total fundings in the first half of the year.
Now Steve noticed noted the billion dollar Mark for our portfolio is a major accomplishment. It encapsulates the incredible work put in by our whole team.
$193 8 million of deployments during the quarter reached 28 portfolio companies, including $117 million in gross deployments to 11 new portfolio companies.
And $76 8 million and gross deployments to 17 existing portfolio of companies gross deployments were partially offset by $44 4 million in principal repayments of which $16 8 million from early repayments and $27 6 million was from normal amortization.
We finished the quarter with 337 or 373 million of unfunded commitments, giving us a strong pipeline through which we can grow our portfolio in subsequent quarters.
All of the outstanding commitments are subject to ongoing diligence and approval by our investment Committee the car.
The position of our portfolio remained relatively consistent with manufacturing once again, making up approximately one quarter of our total portfolio professional scientific and technical services made up 24, 3% followed by information approximately around 8%.
With respect to our exposure in the digital asset sector, we have made equipment loans totaling $69 6 million on a cost basis to three publicly traded digital asset mining and hosting companies representing approximately six 9% of debt portfolio at cost. These loans are secured by a first position lean on.
The underlying digital mining assets, which are mission critical to their operations and they represent contractual obligations with public company borrowers.
As with our other equipment loans. These are not traditional equipment leases and the assets are held on the balance sheets of the borrowers not Trinity.
It is also important to note that these are 36 month fully amortizing facilities, primarily deployed throughout 2021.
We believe that our underwriting thesis on these assets remains intact.
Despite the recent volatility in the sector and we are confident in our position.
Diving deeper into the portfolio of composition at fair value of approximately 73, 2% of our debt portfolio were $769 7 million is comprised of secured loans.
And 21, 4% or $224 9 million is invested in equipment financings.
As we have said in the past equipment financing deals are generally funded over subsequent periods to the commitment date and will fluctuate quarter to quarter.
There are our portfolio approximately $56 5 million at fair value was comprised of equity and warrants.
While the venture capital ecosystem is still experiencing and anticipate a tightening we are well positioned to navigate this industry correction we.
We saw unprecedented VC investment activity in 2021, and while overall second quarter 2022 year over year quarterly you see deal count was down it still exceeding pre 2021 quarterly totals according to Pittsburgh and VC fundraising in the first half of 2022 already reached nearly 87% of all of 2021 full year total well do you like to.
He remains historically high across all stages valuations are declining as investors refine their investment criteria the focus industry wide will be up.
<unk> existing portfolio companies and supporting them through this environment, while sourcing fundamentally strong investment opportunities in sectors of innovation going forward.
It's an opportunity for Trinity is leading financing platform in the D C ecosystems.
Trinity, We pride ourselves on our established creative approach to investing that lends itself to discovering opportunities opportunities in challenging markets. While we remain vigilant in these times. We're also focused on the future of scaling our business with a rigorous investment approach.
Clear and consistent market demand for financing solutions.
Which become an attractive alternative to dilutive equity and enterprise value of pullback in the current market. We believe we have a platform that is well suited to support management teams as they execute on their next phase of growth.
Our vision remains the same to build the preeminent money lending platform with a suite of solutions for emerging growth stage companies and to be the partner of choice and there's a need for financing.
Well on our way to fulfilling that objective and our disciplined strategy continued leadership team will accelerate our business through these turbulent times positioning us to emerge stronger.
With that I'm going to turn the call over to David Lund to discuss our financial performance in more detail.
Thank you Tom and thank you to everyone listening in today.
I opened my remarks last quarter by noting that our financial discipline and strong balance sheet have been key contributors to our strong financial performance in these volatile markets.
After another quarter of similar macro challenges we have stayed the course.
Ability to combine strong originations with a disciplined investment approach and financial foresight has enabled us to continue growing in this market.
Our debt portfolio continues to be well positioned ahead of future anticipated rate hikes with 64, 4% of our loans at floating rates compared to 59, 6% at the end of Q1 and 49, 3%.
Year ago.
Well on the borrowing side approximately 63% of our outstanding debt at the end of the second quarter was at fixed rates.
As we disclosed in our 10-Q filed today.
100 basis point increase in the prime rate would have the net effect of adding $4 1 million or approximately 13 per share to our annual net investment income.
The steps we've taken to grow our floating rate loan portfolio have positioned us to benefit from the federal reserve's recent rate increases as well as future rate increases while improving our returns.
I will now discuss our second quarter financial and operational results.
We recorded total investment income of $33 5 million or five 3% increase over $31 8 million of total investment income recorded during the first quarter of 2022.
And an increase of 71, 8% compared to the same period of 2021.
This increase from the prior quarter was attributable to higher interest income of $4 $1 million on a larger loan portfolio, coupled with the higher average interest rates on our floating rate investments.
We experienced significantly lower early repayments during Q2.
She led to a decrease of $2 $5 million in fee income compared to Q1.
Our effective yield on the portfolio for Q2 was 13, 8% a decrease from 16, 3% in the first quarter.
Primarily driven by a decrease in nonrecurring fee income, which fluctuates fluctuates based on the investment activity and early repayment activity.
Our core yield, which excludes nonrecurring fee income remained steady with the prior quarter at 12, 9%.
We incurred a total of $7 $8 million of total interest expense and amortization of deferred financing costs on our various debt facilities as compared to $6 $8 million. In Q1. This increase was primarily due to increased borrowings under our keybank facility.
For Q2, our weighted average cost of debt, including interest and fee amortization was five 6% compared to five 9% in Q1.
Slight decrease was due to borrowings under our Keybank facility, which has a lower cost of capital and sulfur plus 285 basis points.
Our operating expenses, which are comprised of compensation professional expenses.
Administrative expenses and estimated excise taxes were approximately $10 million during Q2 as compared to approximately $9 $4 million during Q1.
The increase of approximately $546000 or five 8% was primarily driven by increased compensation expenses related to higher head count and restricted stock Award expense.
Our strong team and which we continue to prudently invest.
A major driver of our success and they continue to maintain a strong pipeline of investment opportunities.
As a result of this operating activity net investment income for the second quarter was $15 $7 million or 51 cents per basic share as compared to $15 6 million or <unk> 57 per basic share in the preceding quarter.
We recorded net unrealized depreciation of $13 $8 million during the quarter.
We recognized unrealized depreciation of $13 $1 million and our loan portfolio, primarily attributed to marks on three portfolio company due to underperformance.
And $11 $2 million on our equity and warrant portfolio related to mark to market adjustments as a result of general market volatility.
We also recognized unrealized appreciation of $10 $5 million on the slip from unrealized depreciation to realized losses of $9 $6 million, primarily related to one legacy portfolio of companies that had been previously written down on an unrealized basis.
We experienced moderate adjustments to our loans as they are fixed rate instruments, and I would like to point out that the future drawn under these loans are adjusted to current market rates at the time of the draw.
Our variable rate loans did not incur significant adjustment embraced under these loans are adjusted with the change in prime rates.
Our net realized gains for the year to date remains strong at approximately $43 million as we continued to realize investments. Our goal is to capture upside opportunistically as we did earlier this year with our investments and as a matter of port, while making judicious decisions somewhat downside.
Operating activities generated strong returns for our shareholders with our <unk> or NII average over average equity of 13, 5%.
Yeah.
Our NII over average total assets of five 9%.
Net assets increased by approximately 8% to $458 million or <unk>.
$2014 62 per share compared to Q1 net assets of $424 million or any of the $15 15 per share.
Quarter over quarter decrease of 53 per share or three 5% and MTV was primarily as a result of the unrealized depreciation and realized losses I just discussed.
The 15th supplemental distributions to shareholders.
By our investment income, which exceeded our standard dividend by <unk> <unk> per share and are accretive common stock offerings.
Our talented team and disciplined investment process attorneys continues to forge forward.
Growing our portfolio and positioning us to continue this growth as rates rise.
I'll now hand, the call over to Mike <unk>, Our Chief Accounting Officer, who will discuss our credit performance liquidity and capital allocation.
Thanks, Steve starting with the credit quality of our portfolio companies continue to perform well in the second quarter of 2022 with approximately 90% of our portfolio performing at cost.
We currently have four portfolio companies on non accrual with a cost basis of $20 5 million and a fair value of $5 9 million, representing just <unk>, 6% of the fair value of that.
Our investment portfolio.
Our average credit rating for the second quarter stood at 3.0 based on a one to five rating system with five indicating very strong performance.
This remains relatively consistent with the average credit rating of three one in Q1 reflects the favorable performance of our portfolio companies that we continue to closely monitor.
Moving to liquidity and capital resources available liquidity as of June 32022 was approximately $93 2 million, including approximately $13 2 million in higher.
Shifting to cash and cash equivalents.
Borrowing capacity of approximately $80 million under our Keybank credit facility.
The two existing terms and conditions, we continue to be active in the capital markets completing an accretive equity offering in April which generated $50 million in proceeds as well as an additional $7 5 million from exercise of the underwriters over allotment option.
We utilized our ATM offering program during the quarter raising approximately $3 million.
Subject to the end of the second quarter, we announced that we reopened it was 7% unsecured notes due in January 2025.
<unk> $57 5 million, which was used to pay down our keybank facility.
As a reminder, the 7% notes, including the recent addition are callable by Trinity beginning in January 2023.
Traded on NASDAQ under the trading symbol P. R. I M L.
Our leverage increased approximately 108% from 120% from the prior quarter.
This remains within our long term target leverage ratio of between 115% and 135% depending on the timing of investment activity.
We are actively managing our liquidity and continue to explore all capital options that will be accretive to our shareholders such as investments are made.
Once approved.
With regards to progress the review process is still within our expected timeline, we continue to work with the FCC to complete their review of our application.
On June 15, 2022, our board declared a cash dividend of <unk> <unk> per share for the second quarter of 2022, representing a 5% increase from Q1.
This is the sixth quarter in a row that we have increased our core dividend.
Additionally, the board approved a <unk> 15 per share supplemental dividend.
Dividends were paid on July 15, 2022.
Our GAAP NOI generated coverage of approximately 121% of our quad core dividend for the quarter.
We anticipate declaring a dividend for the third quarter of 2020 in September subject to our board's approval.
Cumulated undistributed earnings spillover at the end of Q2 of approximately $67 million or $2 15 per share continues to afford us the opportunity to invest the capital for the benefit of our investors and maintain a consistent and meaningful distribution threshold.
Moving into the second half of 2022 training continues to be upfront in front footed on its approach to portfolio growth.
Talking to the changing market positioning our portfolio in borrowings to capitalize on rising rates and to build a team that will enable us to power through market headwinds.
That concludes our prepared remarks, I will now open the line up for questions operator.
At this time, if you would like to ask a question. Please press the star and one on your telephone keypad.
If you're finding a question has been answered you may remove yourself from the queue by pressing the patchy.
Once again that is star and wanted to ask a question.
And we'll take our first question from Finian O'shea with Wells Fargo. Your line is open.
Hi, everyone. Good afternoon. Thank you I appreciate the color on the crypto mining exposure just one question there.
How do you assess the risk.
Risk of it.
Depreciation or obsolescence as as newer and more productive machines come out is there an.
And impact.
Perhaps.
With newer machines that use less electricity or produce more.
Taking share.
And lowering the profitability of more legacy companies or are you.
Isolated from those sorts of impacts thank you.
And this is Jerry harder.
Yeah.
That's a great question so.
I'll say a couple of things so.
Our equipment financings to the three publicly traded portfolio companies those are.
<unk>.
The latest most recent equipment as of the time of those financings and so what we see is that.
Typical lifetime of these miners deployed in the field.
Is five years.
Financing is at 36 months.
We do keep our eye on having events for the bitcoin mining specifically the next having event is 2024, that's why newer models tend to come out.
In conjunction with those inflection points and crypto so yeah.
The other thing I would say is you know.
Minor plugged in and deployed and actively mining.
Is far greater than the value of a minor sitting on a pallet loading dock, but even if we look to those market prices.
We're still well below a 100% LTV were under 90% LTV.
Even with the depressed prices today.
And one other point there.
Any of the companies. We have you know we have these latest generation machines out with they are still utilizing older machines. If they are profitable to continue running them and our miners are profitable somewhere around $8000 per bitcoin and so to the extent new machines do come out of 'twenty 'twenty four we have already underwritten to be it's really off risk at that point.
We assumed the companies will continue to utilize machines, if they are profitable.
Very helpful. I appreciate that.
Just a small follow up for me.
If I.
I missed this can you give us some color on what youre seeing for new origination yields.
You know given lower received at least equity valuations.
The venture market. Thank you.
Sure.
So we are I think and I'll speak to the question for me I think from a credit standpoint, and what we're seeing and.
We are we are seeing more opportunities.
We're seeing companies get revalued.
B the marker for kind of what fits for venture capital firms right now in terms of valuation that the lowered and again that doesn't necessarily impact us even with our portfolio.
The majority of our games are on rates and fee, we're not looking for substantial upside via equity or warrants to hit the returns we have over the years and so now we are seeing a revaluation, we're seeing kind of multiples of.
Revenue go down across sectors, and we're seeing a lot of opportunities for companies looking for less dilutive capital.
The debt instrument and so and then from an underwriting perspective, we're obviously hyper focused on companies, having adequate runway 18, 24, plus months of runway and that's something we're really focused on from a credit perspective.
Okay.
Okay.
Once again to ask a question that is star and one well take our next question from Paul Johnson with <unk>. Your line is open.
Hey, good evening guys. Thanks for taking my questions around for Brian . This afternoon. This evening.
I'm just curious.
In this embarrassing since questions to higher demand for venture capital debt.
Are you guys securing higher.
Being able to carry the higher prepayment fee income spread.
So we could potentially expect.
Lower prepayment fee income this quarter, just potentially higher prepayment fee quarters of that kind of.
Back half of most of these loans the SUNFISH.
Thanks for the question. Paul This is kind of we are seeing.
We are seeing a higher priced facilities rates.
Our rates have increased.
Some of that as rates have gone up overall as the fed increases rates that we're seeing on tire pricing, there's a little bit more demand, maybe a little bit less capital available. So.
We expect to see some slight increases.
Over subsequent quarters on pricing.
But overall not significant shifts one way or the other.
Got it I appreciate that.
I'm just curious in some cases, you don't have this but if you have any sort of observation.
And Rob just in terms of our liquidity.
Your portfolio companies and your various venture capital partners do you guys have any statistics there to share at all of that.
Kind of give an idea of what sort of cash some of your companies are holding out there at the moment.
Yes, I mean, we are misteri. Thanks for the question. So we're obviously tracking cash life of our portfolio companies very closely to.
A significant factor in our in our credit rating system.
Our weighted average basis across our portfolio.
<unk> life's around 15 months.
So the majority of our portfolio companies have at least 12 months of cash life at this point.
We are definitely seeing a trend within the portfolio as you know companies face.
Or are concerned about.
Either valuations or a scarcity of equity capital and so they are definitely in.
In a mode of trying to increase their profitability and move more quickly to cash flow positive state.
As opposed to you know the.
The spend for growth mentality that we sometimes see.
Got it appreciate that.
I'm just curious I mean, do you track or do you disclose it all what percentage or airlines essentially have any sort of additional debt or bank debt.
Actually I guess, the senior to any of your loans within those companies is there any color you can.
Yeah, I mean, we most certainly do right the vast majority.
Of our portfolio is first lien.
Either enterprise or equipment.
But with that said this.
This question, we get a lot about 27% of our deck before the debt portfolio has a blanket second lien.
We will work with certain senior lenders well known in the industry Silicon Valley Bank Western Alliance Bank Pacific West Bank and it was just a small handful of companies that we will work with typically.
You know because we've got experience with them overtime, but we are well aware of total debt.
Helped by our portfolio of companies.
To give you some comfort considering senior and Trinity that the median loan to value of our portfolio was about 14%.
We do mark our assets to market.
Every quarter, so as we get.
Third party valuation marks for our portfolio of companies, we're adjusting that real time. So we think we're still in it.
Good good territory from a loan to value standpoint.
Yeah and further Paul we are generally those are generally deals where its a spirits, it's very strong company.
And we're comfortable with the senior piece in there.
So we would be comfortable doing ourselves, but that much lower cost of capital creates a blended cost that gives the company additional runway. So that's we think of those as typically strong strong deals.
Yeah.
Once again to ask a question that is star in Atlanta.
Our next question from Christopher Nolan with Ladenburg Thalmann. Please go ahead.
Hey, guys most of the driver of the realized loss again I missed it.
Yeah, the realized loss was primarily.
One company.
But we have had in the portfolio since 2016.
Do you want to name the company.
Sure.
More intelligently.
Let's start talking about yet.
And that had been written down on an unrealized basis.
So we had a full recovery on.
Fair value basis from the first quarter.
Got it and I think in the Q store intelligence I think that's an equity piece still there.
That's correct.
Great I guess.
The increase in the dividend came as surprise given that the.
Market overall seems to be weakening.
Is it driven by exploration of the spillover or anything along those lines.
Thanks, Dave.
The dividend is driven by our operational performance.
And our forward looking expectations in terms of performance as well.
Knowing that we have to distribute 90, 890% of our earnings we tried to make sure that we're doing.
Doing that sort of you know.
In a position where we've got a huge spillover that creates problems for us in the future.
Great and then I noticed that I think your leverage target went up a little bit shall we expect the leverage to be at sort of the higher end of that range or to drift lower going forward.
Clearly, we're trying to manage leverage down we are expecting some.
Payments from what we've been told from investors.
One advantage that it's around 125.
Clearly when we're taking actions to address that that funding capability.
Great. Okay. Thank you.
But as far as to ask a question that is star Antoine will pause a moment to allow further questions to queue.
Our next question is a follow up from Paul Johnson with <unk>. Your line is open.
Hey, guys, sorry about that.
Call got dropped earlier.
I think I heard most of your answers I appreciate that's a very helpful answers.
One more question if I may.
Just curious like in this environment.
What are you seeing or how do you feel that most of your D. C partners are sort of playing this downturn. So far is it yeah.
Majority is kind of cutting back on expenses getting ready you know potentially for a recession and you know.
And then Tara mine, just kind of VC fund raising kind of in preparation for that or do you find that guys are.
That's fine.
Potentially very good opportunities, just obviously with valuations down a mountain most high growth companies are pretty significantly as any any kind of chronic therapy.
And that's all for me.
Yeah. This is Kyle I think we've seen a couple of things you have groups with capital.
<unk>, who has really kind of you know.
They have two different things are really tune on right now which is.
One we need great deals and this fund is probably gonna be defined by the investments made out of it over the next 18 months to 24 months.
Bind with making sure. They they are still able to get opportunities I think this market probably is a little bit different than other downturns and that you have really mature companies with a sound business model is real technology.
And.
Most of these leases are teetering between being very careful and opportunistic and also making sure that they.
So we're able to get into deals and deploy capital. During this time, we're seeing that our new opportunities we're seeing it within the portfolio its much less about not giving in deploying money. It's much more about what valuation right and I think we'll continue to see that.
I think we all agree with Trinity that technology is a great place to continue to be investing and we're glad to be servicing that sector.
Got it appreciate it.
Thanks, That's all for me and.
Congratulations on a.
Good quarter.
Thanks, Paul.
It appears we have no further questions at this time. This does conclude today's program. Thank you for your participation and you may disconnect at any time.
Yeah.
[noise].
Yeah.
Yeah.
Yeah.
Yeah.
Yeah.
Right.
Okay.
Yeah.
Okay.
Uh huh.
Yeah.
Yeah.
Yeah.
Hum.
Uh huh.
Yeah.
Yeah.
Okay.
Yes.
Okay.
Okay.
Yeah.
Yeah.
Okay.
Sure.
Uh huh.
Uh huh.
Okay.
Uh huh.
Yeah.
[noise].
Alright.
Uh huh.
Sure.
Uh huh.
Uh huh.
Okay.
Uh huh.
Yeah.
Hum.
Alright.
[music].
Yeah.
Uh huh.
Okay.
Okay.
Uh huh.
Okay.
Okay.
Okay.
[noise].
[noise] [noise].
Yeah.
Uh huh.
[noise].
Yes.
Okay.
Yes.
[noise].
Okay.
Uh huh.
Okay.
Okay.
Yeah.
Uh huh.
[noise].
Sure.
[music].
Yes.
Yeah.
Okay.
[noise] [noise].