Q2 2022 ATN International Inc Earnings Call

answer session. I would now like to hand the conference over to your speaker today, Mr. Justin Benacasa, Chief Financial Officer of the company. Please go ahead, sir. Great. Thank you, operator, and good morning, everyone. Today we'll be reviewing our second quarter 2022 earning results. With me here is Michael Pryor, ATN's Chief Executive Officer. Michael will be providing an update on the business and strategy as well as high-level overview on our quarterly results.

I will cover the relevant financial information and provide additional color where necessary.

As a reminder, we released our second quarter earnings press release last night after market closed.

Investors can find the release in summary slides on this call or on our Investor Relations website. Before I turn the call over to Michael.

I'd like to point out that this call our press release in slides contain forward looking statements concerning our current expectations, objectives, and underlying assumptions regarding our future operating results. These statements are subject to risks and uncertainties that could cause actual results to different surely from those described. Surely from those described. Surely from those described.

Also, in an effort to provide useful information to investors, our comments today include non- GAAP financial measures.

For details on these measures and reconciliation to comparable GAAP measures and for further information regarding the factors that may affect a future operating results, please refer to our earnings release on our website at atinni.com or to the 8K provided to the SEC. And I will now turn the call over to Michael for his prepared remarks.

Thank you, Justin, and welcome everyone to our second quarter 2022 earnings call.

We delivered solid results in the second quarter, driven by strong performances across our business and geography.

In line with our three-year plan, we are making progress in several business areas, the LASA Foundation for our long-term growth and expansion. The LASA Foundation for our long-term growth and expansion.

A few highlights from the quarter health to illustrate this point.

First, we have completed our initial year of operating the last-cut communication. We have now completed our final year of operating the last-cut of operating the last-cut

We are pleased to announce that full integration is complete with the acquisition expanding our overall US footprint and adding roughly 50% to our total segment revenue.

And I am grateful for the work of the ATN and Alaska teens in achieving this milestone. It was a large and complex undertaking and we don't take success or granted. And we don't take success or granted.

Second, we want to grant for approximately $10 million to deliver connectivity to homes and businesses in an area of Northern Arizona.

Third, we invested more in increasing our infrastructure, footprint, and subscriber count, and a number of markets, and in particular Guyana. In a number of markets, and in particular Guyana.

And last, but not least, we announced yesterday that we have entered into an agreement to acquire the largest private broadband provider in New Mexico.

about which I will say more shortly.

noted on prior calls, 2022 marks the first year under our new gross strategy.

The strategy is underpin bar twin pillars of glass and steel and being first to fiber. And being first to fiber. And being first to fiber. And being first to fiber. And being first to fiber. And being first to fiber. And being first to fiber.

Glass and steel represents our goal to build and own modern core digital infrastructure, while being first to fiber expresses our commitment to being the first to bring high-speed connectivity to a market.

Our growth strategy complements and enhances our differentiated approach.

focused on entering and servicing rural and remote markets with high connectivity demand.

Many of these markets are characterized by lower socioeconomic demographics or harsh natural environments, creating a critical need for our solutions.

Our Jeep Experience robust operating platform and preference for partnering with local stakeholders allows us to enter many of these markets and deliver lasting change.

Disapproaches also has positive business implications. By focusing on serving customers first and providing an essential service, we can cultivate sticky relationships with lasting durable cash flows. With lasting durable cash flows.

These cash flows of the lightblood of our business, allowing us to reinvest in other growing markets that meet our criteria, for traditionally underbuilt environments, with low penetration.

As mentioned, we recently won a grant for approximately $10 million in support of our Southern Apache County Fiber to the home project.

This funding will allow us to deliver the promise of fiber to more than 11,000 residents and 4,000 homes and businesses in southern Apache County. The funding will allow us to deliver the promise of fiber to more than 11,000 homes and businesses in southern Apache County.

This is an area of the US that is currently suffering from significantly higher unemployment and poverty than the national average.

And we are hopeful that the dramatic improvement in the availability of high-speed connectivity our projects will deliver will help to alleviate those conditions. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.

High-speed connectivity can have a very positive impact on communities like this today by offering access to life-changing opportunities, such as remote employment, the ability to sell goods or services through e-commerce marketplaces.

distance learning and tell health.

By focusing on what's most important and putting our customers first, we have continued to make solid progress across our key metrics.

At the end of the second quarter, we had passed approximately 570,000 homes with our broadband networks and had approximately 9,400 fiber route miles across those markets.

We've also had approximately 205,000 broadband subscribers with 52% of those subscribers utilizing our capable of being connected to our higher speed services. Our capable of being connected to our higher speed services.

And turning briefly to quarterly results.

In the second quarter of 2022, we grew our total revenues by 45% year over year and adjusted eva-dav by 55%. The next quarter of 2022, we grew our total revenues by 55% year over year and adjusted eva-dav by 55%.

This was mainly due to our expansion in the US alongside network upgrades and customer additions across both our domestic and international operations. Welcome to ourlassie State Air Force 2021..

Our international segment remains reliable and highly productive.

We continue to focus on maintaining and improving our market share in more mature markets and leveraging those cash flows to reinvest in other markets.

that are earlier in the growth cycle, such as Alaska, Guyana, and southwestern US.

These cash flows are also providing us with the flexibility to further upgrade our existing network infrastructure in other key areas.

Our international segments mobile business also continued to perform well. At the end of the second quarter, our total segment mobile subscriber base was approximately 349,000.

a 9% increase from a year ago, and with a faster rate of growth in the post date portion of that day.

In the US, Alaska continues to be a steady and solid contributor consistent with what we have seen over the past several quarters.

We're generally happy with the progress made of this when you're a mark of the acquisition.

Having, as I mentioned before, successfully integrated operations.

and that helps achieve greater synergies.

increase market share, upgrade our capabilities, and improve resiliency.

Going forward, we expect to increase the pace of investment and commercial activity as we look to satisfy more unmet demand.

We also have remained strategically active in the US with our recent announcement to require sacred wind.

The largest privately owned broadband company in New Mexico.

We expect Sacred Winds operations to integrate with those of our existing operations in that region.

And this acquisition is aligned with our broader corporate strategy.

It's also in line with our strategy and continued transformation toward becoming a leading provider of broadband fiber and other infrastructure-based services. Add progress to?? land.

to the carrier business, government, and consumer segments in and around our long time operating area in the southwestern and mountain west regions. In the southwestern and mountain west regions.

We expect the combination to expand our footprint, our capabilities, and our development pipeline in the region.

This investment will also further our mission of delivering positive social impact within the communities we serve.

which includes those living in the tribal lands of that region.

We are excited to be working with the team at Sacred Wind and we look forward to providing more customers in New Mexico with affordable and reliable broadband connectivity.

I would also like to congratulate our team in Arizona for their work with rural and remote tribal communities near the Grand Canyon. I would like to congratulate our team in Arizona for their work with rural and remote tribal communities. Thank you.

After completing our middle mile and local fiber build, we began delivering connectivity services.

to these communities in the second quarter.

We are pleased to see the positive impact of our solutions in these communities and, notably, our school systems.

Silence.

So in summary, we have continued to make good progress in both U.S. and international markets.

growing our network footprint with state-of-the-art broadband connectivity, and increasing our overall subscriber count.

Our glass and steel and fiber first strategy are complementing our existing business capabilities well, and we are confident in our long-term success profile.

Overall, we expect the investments that we've made in the first half of 2022 to support our annual and multi-year EBITDA growth protection. And multi-year EBITDA growth protection.

With that, I'll hand over the call to Justin for our financial results.

Great, thanks Michael. In the second quarter of 2022, total consolidated revenues were $479.5 million.

Up 45% year over year.

Operating income was 1.7 million versus 2.9 million last year. An adjusted even though was 39.2 million, up 55% year over year.

The increase in revenue in adjusted EVA was mostly due to the addition of Alaska, while the year-over-year decline in operating income was due to the increases in network operating costs and sales and marketing expenses in our international segment.

and higher depreciation expense related to the acquisition of Alaska.

Now turning to our segment breakdown.

In international, revenues were 88.4 million, increasing 3 percent year over year. Mobile subscriber growth and higher carrier service revenues from increased travel to the U.S. Virgin Islands and Bermuda all contributed to the segment revenue growth.

These revenue increases were partially offset by the scheduled step-down of federal high-cost revenue support subsidies for the U.S. Virgin Islands, which we've noted previously.

The next step down of 1.4 million is scheduled to occur in the third quarter of 2022.

Adjusted even for the segment with 27.1 million in the quarter, down slightly from 28.4 million a year ago. This is due to higher operating costs, which offset the increase in segment revenues and the impact of the federal support step down previously mentioned. The channel has increased increased from a new previously mentioned.

In addition, we're investing more in sales and marketing and customer support capabilities, as well as network enhancement, as we aim to grow the size and quality of our subscriber base at a more rapid pace.

In our U.S. segment, revenues were 91.1 million in the quarter, more than doubling once again on a year-over-year basis due to the poor consolidation of Alaska's results.

In the US, approximately 70% of our service revenues were derived from business and carrier services.

FirstNet construction contributed $3.3 million to the segment revenues in the quarter. We've completed approximately 65% of the sites and now expect to complete 85% of the cells by the end of 2022, which is down slightly from our prior forecast of 90%.

This is mainly due to the timing of permitting and approvals, which are moving slower than we had originally projected.

Quarterly adjusted even in the segment was 20.6 million versus 4.5 million a year ago, mainly driven by the consolidation Alaska. Mainly driven by the consolidation Alaska.

Net loss to the second quarter was 0.5 million or a loss of 11 cents per share compared with net income of 2 million or 13 cents per diluted share in the same period a year ago. Included in the loss of this quarter was a one time charge of 1.7 million related to dissolving a defined benefit plan.

We reported 40.6 million in capex for the quarter.

which includes 3.7 million of government and grant reimbursal items.

The breakdown between US Telecom and International Telecom CapEx was 21.7 million and 18.7 million respectively.

Now turning to our balance sheet and cash flows, we ended the quarter with total cash and cash equivalents of 71.1 million.

In addition, for the first half of the year, cash provided by operating activities was $50.7 million, up from $27.5 million a year ago.

Over the same period, we utilize approximately 33 million of cash to fund various working capital items, including prepaid circuits and first net construction costs, as well as reducing payables and accrued balances. As well as reducing payables and accrued balances.

At the end of the second quarter, our total debt outstanding was $356 million. This amount includes 214.7 million of Alaska non-recourse debt and excludes $40.6 million related to the first net customer receivable financing facility. The first net customer receivable financing facility.

With a consolidated net debt to even a ratio of 102 times, including non-recourse and parent-level debt, we continue to benefit from our balance sheet strength and resulting flexibility.

In summary, we delivered solid results this quarter while continuing to invest in those areas that support a long-term growth strategy.

This includes expanding our fiber coverage, upgrading our networks, and further penetrating into existing markets such as Guyana. In terms of overall expense profile, we are seeing some increased inflationary pressure in various off-ex categories, including labor, and customer handset and equipment, as well as CAPX increases for cable and wiring costs. As well as CAPX increases for cable and wiring costs.

Nonetheless, we remain confident in our underlying business prospects and we're reiterating our full year guidance for 2022 as well as our 2024 financial objectives.

Thank you everyone. I'll now turn the call back to Michael for his closing comment.

Thank you, Justin. We delivered a strong performance across our businesses and markets in the second quarter, both at home and abroad.

We continue to strengthen our operations with the position ourselves for enduring growth. We continue to strengthen our operations with the position we continue to strengthen our operations with the position we continue to strengthen our operations with the position we continue to strengthen our operations

Additionally, we are pleased to announce the acquisition of sacred wind enterprises.

And we look forward to working with the team to deliver more opportunity through our solutions. And we look forward to working with the team to deliver more solutions.

in the days that had.

And now, operator, we'd like to open it up for questions.

Yes, sir. Ladies and gentlemen, if you have a question or comment at this time, please press star 11 on your telephone keypad. If your question has been...

Again, to ask a question at this time, please press star 1 1. Please stand by while we compile the Q&A roster.

Our first question or comment comes from the line of Hamid Kherson from BWS Financial. Your line is open.

Good morning. Could you just talk about the...

opportunistic approach that you've had with the sacred wind, what made you, what made it so compelling to actually act now, and what your plans are with this acquisition.

Yeah, I think really this is something we call kind of a bolt on acquisition. And the advantage of it is it really helps us accelerate the expansion of the transformation we've talked about in our forward business strategy in the lower 48 and in that region.

So, you know, it's broadband infrastructure assets in an adjacent market. We know well them. We think there's a good mesh of culture and team. And we think it's a great strategic compliment for a city area and that area.

And then, you know, they also have an attractive pipeline in an area that we're interested in pursuing. It's done a good job of developing, you know, fiber growth development. There also as our teams quite adapt at winning, you know, solutions where it's public-private partnerships. So whether or so there's some stuff that you can implement is...

to connect people and communities.

So, you know, it's a nice mesh with what we're trying to do with that business. And we think it's really an acceleration of the organic plant.

Okay, and then on that note is, what are your goals with CAPEX? Will it continue to be basically at the same level of EBITDAF in the next couple of years with all the grant opportunity out there or could the company begin to generate free cash flow again?

Well, I think, you know, we'll stand by that, you know, that broader guidance we've given about, you know, what we're expecting and where that leads us from a balance, she standpoint. And we, you know, we talked a lot about that a couple quarters ago, but one thing I would say that is that the...

With these grants, they're largely not impactful to net capex, right? So there can be sometimes as in this Arizona thing, we have some somewhat something like a 10% match on our part. But the grants themselves, and I think some of them in the future probably will come through is, you know, contract capex.

or something that might actually serve to reduce it.

But it is a critical part of where we want to expand and how we want to expand. And it may be

The sort of higher level answer to your question is, it's just in a number of our markets, we think now is the time. Right now is the time to be first a fiber, to provide the need. There's just really strong demand. So I think we'll continue to invest in that program. So I think we'll continue to invest in that program.

Okay, my last question is, are you able to comment on the media reports that you hired at Goldman Sachs? What are your uh grip's Talkin?

No, we don't, as many companies, we have a long-standing corporate policy not to comment on those types of rumors.

Okay, thank you.

Yep.

Thank you.

Our next question or comment comes from the line of Rick Prentice from Raymond James. If the Prentice your line is open.

Thanks for everybody. Good morning, Greg.

Hey, I'm gonna follow along the lines.

So there's a lot of award and grant process out there. Can you update us on what's happening in Alaska? I think we saw some headlines that they've been moving forward on some funding of projects. Have you been successful there? Any update on the FCC? All the way ripping the place. I think there's been some progress there as far as what the government was thinking about. There's just other states in general. How should we think about where you're at keying up awards and grants? I think there's a lot of work going on. I think there's a lot of work going on. I think there's a lot of work going on.

Sure, I'll do the rip and replace last because that's somewhat complex. In terms of larger grants and your question on Alaska, we have, you know, we've had some success. You know, we've, we've, we've launched service actually on some of the earlier programs there. But I would say that there's more sort of pending and what we think is pretty late stages of approval and review.

and dollar amount of grant, then we have now. And as I'm sure you appreciate but a more tamplicizing for everybody use. But a more tamplicizing for everybody use.

I would be careful at looking at dollar value of grants and translating that on a level basis into economic impact. Some of the programs...

we've applied to do or solutions we've applied to deliver in places like Alaska are very expensive to do and therefore the grant or the subsidy would you know could be very large. That doesn't mean that it's you know larger than...

you know, in any one situation, then say a $10 million grant we just mentioned, you know, to-

run five to 4,000 homes. So we look at these things in terms of the total cost ownership to deliver it over time and what we can expect.

to receive, but I just want to, I just want to emphasize that. The second thing I would add to that is this. The second thing I would add to that is this.

I think we're early in it because as you know, the B-D program, the 42 billion, that really is yet to be, it's just early innings of grants flowing out of that. That's coming through the stage from the federal government through the states and sometimes smaller entities, counties, et cetera, to then green light projects and make awards. So I think there's going to be quite a lot of activity to be met for the next.

in a number of quarters and we're certainly participating in multiple markets.

I'll pause there if you want to have a follow up on that and then otherwise I can answer the rip and replace question. Let's go on to the FCC.

Okay, so as you've probably saw in the news, we were counting all our subsidiaries approved for something like $525 million. $525 million.

of cost estimates.

on replace and remove.

So as we call it and the and the approved

pro-righted allocation for that was about 40% of that amount, so a little over $200 million.

And, um,

And so.

The way it works without getting into too much complexity.

First of all, we're very pleased because the approval was very close to what we submitted.

So we're glad our team did a good job. Now this is a reimbursement program.

and we're ready to step up to the obligations and participate in the program.

In terms of the gap in funding, right now, I believe at least the committee in the House had approved a bill to fill the gap, which would fund all the funding for the

approve approvals at the full amount or more or less. And I think we're hopeful. What we've seen so far is there seems to be strong bipartisan support. This is a program that was championed by both sides of the aisle as important to the country. So.

We expect it to get done, but but we're still evaluating that and we're also. There's also plenty of discussions with between us and other participants. And the on exactly how all the timing works.

for application, for when you start replacing, when you're reimbursed, and so on. And so we're still working through those details and getting clarification.

Roughly any idea of the timeframe of the replacement ahead of the reimbursement?

No, you mean in terms of cash flow? Are you talking about cash flow, cash out? Would it be like a six month lag, a one year lag, a quarter lag?

Yeah, I don't know, but that's obviously something we're really actively trying to manage that Rick because these are big numbers, right? So the timing of the ins and outs is critical and something we're working through right now.

And every participant is doing the same. The other thing I should say though is some of our vendors, you know, some of the bigger vendors, bigger names that would participate in this week, you know, we are putting in place or have put in place. And you know, I hope you have had a good time today. And we will be doing that. And I hope you have a good time today. And I hope you have had a good time today. I have them.

in the contracts.

a sort of pass through, which is when we get paid, you get paid.

So we can alleviate that with those sorts of agreements as well.

That makes sense. Okay. On another line, um...

Operation things came in kind of where we were looking for, but the corporate other category did come in a little higher on an EBITDA loss standpoint. How should we think about what happened in the quarter? What's the right run rate as we think about that kind of corporate other line item and what all goes into there?

Yeah, I mean, the biggest drivers in that line item are the shared service organizations and corporate. And I would say Q1 was lower than we, lower, a lower quarter, Q2 is a higher quarter. And that was some of the non-cash comp charges. But what I would think about going forward is we'll be a little bit, a little bit under the $8 million run rate, I think in the back half of the year, a quarter.

Okay, sorry. Thank you. I, Q1 was lower and so, like I said, a little under the eight, under eight or so, a little under eight going forward.

And as you guys calculate towards adjusted evita, do you take out all the non-cash items anyway and when you get adjusted evita?

No, not on the comp, we don't take out. We take out, you know, transaction-related charges.

Gotcha, gotcha. So if we wanted to get to a cashier, but we'd have to make some adjustments. Yes, and that was the non-cash charge, it would be the non-cash.

pump charges.

Yeah, yeah, okay.

Last one for me, actually, is too, sorry. There's a lot of companies that are obviously pursuing a first-of-fiber strategy, so very important to stay aware of your marketplaces, make sure there's not multiple people trying to be first-of-lucket. How are you guys monitoring the market you're in?

And then as you think about some of these other companies that are involved in a first of fiber strategy, a lot of those are private companies.

What are the advantages to being a public company versus the advantages of being a private company going after these investment pursuits?

I'm not sure from an operational standpoint, I'm not sure there's any.

And for some of the smaller ones…

There might be some disadvantages if you're trying to work with the government.

Programs.

But yeah, but just that the difference typically is, you know, we have more sort of current.

explaining and updating to do of our long-term plans and what the value is we see than a private company that's received financing to do just that. So that's the main difference. But in terms of your broader question of, how do we keep an eye on it, we take very carefully, right? We've always been very sensitive to...

the sort of risk of oversupply of infrastructure to a market. Right? So we've largely gone after places with undersupply and we continue to...

you know, watch very carefully what else might be done. In most of our markets, we've been there for a long time. We have a very good understanding of what's going on and who the players are.

It's a little more tricky if you read the headlines in some of the mainland US. The story by me is...

markets to ascertain. But when you drill down, again, we pretty much know the local players and we see the announcements by both larger players and small.

But we'll be very vigilant. It's always a key part of our thought process. We, you know, green light projects are not. We, you know, green light projects are not.

Okay, the last one for me that was on the New Mexico deal with Sacred Wind.

The purchase price looks like what, about a 5.7 multiple, if there's $57 million of cash and assumed debt in about 10 million of a estimated annual ebit, which seems a bit low for a cable property. There's rumors in the marketplace of alt-Easts, maybe selling seven weeks for some pretty high multiples. How should we think about the multiple you paid? What's the growth you expect out of that project? And is there a need them for some significant gap-ex investment?

Sure, so, you know, one thing I can say, right, so if you looked at the information we provided earlier, you know, that the cash and the debt, 25 million in cash and roughly 32 million in debt assumed, there's also some, the sellers are also gonna take a small minority stake in the combined debt to be.

There's some urn out mechanisms or opportunities for the sellers as well. But what I can say to give you a value sense, and then we'll talk about the opportunity. From a value standpoint, the way we look at it in the Mexican situation, it's pretty consistent with where we are trading today, and that's before synergies. And that's before synergies.

And the growth is really part of the synergy. So I think there's two layers of that. There definitely are some cost synergies available, but this is more about revenue. It's about developing their pipeline. Now they have a track record of doing that pretty much with organic cash flow. And a lot of it, we think can be done with that, but there may be some opportunities as we integrate.

to accelerate or to broaden the footprint and that might require additional capex but we're not sort of updating any of that at this point in time.

And kind of the growth rate you see in those markets.

I think there's a good one. So they are, you know, they're not a cable provider. They were, they were, they were, their origins were as a small lack.

And so they had some copper plant and then they started building out fiber in both existing and new communities.

So there is some copper fiber conversion potential that we will examine, but we're probably more focused on the expansion.

and new fiber builds.

And so, you know, for the size of the business, I think, again, it's going to be integrated with our ComNet subsidiary, but we, you know, we think it could be a significant contributor to Grub.

Okay, thanks for the color. Mexican stars. Bye bye.

Thank you. Arnet, next question to comment. Comes from a line of Greg Burns from Sedoti. Mr. Burns, your line is open.

Thank.

Good morning.

Just let me think about your your private investments, the penetration on the number of homes passed.

Is the focus now just on...

expanding the network and then you'll print the, you'll kind of increase penetration. Like how should we think about the trajectory of, um,

Broadband penetration in the markets that you're covering and where do you think you can get that to? It looks like about 35% or so now, how high do you think that could go over time?

Yeah, I think we will continue to, first of all, we will continue to add. We will continue to add.

to total number of broadband customers we expect. Most of what we add really will be what we got, the high-speed data. And we say that 100 megabit downloads enough. And most cases, well above that. As far asooky fireworks are concerned, only one normal tellers respond. None makes discourtha-????ping. No matter what, some of everyoneIl bodily?? me then shady etiquette you

So we have two things that we're doing that you appreciate. One, we are taking our existing broadband customers at lower speed and converting them to a higher speed.

networks and higher speed services.

And there's plenty of that left to do in the markets, and that's why we provide those.

those metrics. And then on top of that, there'll be the new markets add on new areas, new communities that will pretty much come straight into the high-speed data portion of it.

I'm not going to give you a target penetration rate. We expect to continue to grow that number and it's a key metric for us.

Okay.

And then is there any update on Guyana and any changes in the trajectory of that market? Anything you could provide there?

by way of, you know, update.

Yeah, I think I would say on the positive side and it's largely as positive the...

continue growth and build out of fiber. That's going well, the costs are in line with our expectation on the actual builds. The take rates continue to be strong. The arpus, they come in at, continue to be strong. That's all positive. And on the mobile side.

We, you know, we continue to grow mobile subscribers in that market, and we think we have more room to run both because of macroeconomic.

growth and population growth that we expect to see and market share. There's one thing to say there's two on the other side of that, but more minor is costs are running high, and some of that is having both the legacy. And some of that is having both the legacy.

and the new or stuff, you know, overlapping each other. So there's opportunity in the future to optimize that. And it's also, you know, as you build in new communities and so on, you have the higher fixed cost to start. You have the marketing and sales initiatives that go, you know, rapidly load people onto the new services. And it's the beginning that, you know, those that's not.

great for margins, but as you grow, every new sub, every new customer comes in as a higher incremental margin, so that will write itself in our expectation. So that will write itself in our expectation.

And then the last thing to notice is that our poos are a little low still and we're a little lower on the mobile side. Again, we expect those to grow over time.

In fact, we've checked them to grow significantly over the next few years, but there is some

You know, probably economic work going on down, you know, for in the time being. In terms of.

people producing that.

Yep. Okay, great. Thank you. Sure.

Thank you. I'm not going to shoot any more questions in the meantime. I'll turn this back over to Michael for any closing remarks.

All right, thank you, operator, appreciate that. And thank you all for joining us this morning. We genuinely appreciate your time and interest in AT&T. We genuinely appreciate your time and interest in AT&T.

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. I speak or stand by.

The conference will begin shortly. To raise your hand during Q&A, you can dial star 11. The conference will begin shortly. To raise your hand during Q&A, you can dial star 11.

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