Q3 2022 Triplepoint Venture Growth BDC Corp Earnings Call
Good afternoon, ladies and gentlemen, welcome to the Triple point venture growth BDC Corp, third quarter 2022 earnings conference call at.
At this time all lines are placed in a listen only mode.
The speakers remarks, there will be an opportunity to ask questions and instructions will follow at that time.
This conference is being recorded and a replay of the call will be available on audio webcast on the travel point venture Growth's website.
Management is pleased to share with you the company's results for the third quarter of 2022.
Today, representing the company its Jim Obrien, Chief Executive Officer, Chairman of the Board.
Sean Srivastava, President and Chief Investment Officer, Chris Mathieu, Chief Financial Officer, before I turn the call over to Mr. Woodbury I'd like to direct your attention to the customary safe Harbor disclosure in the company's press release regarding forward looking statements I'll remind you that during this call management will make certain statements that relate to future events.
The company's future performance or financial condition, which are considered forward looking statements under federal Securities law.
You are asked to refer to the comprehensiveness recent filings with the Securities and Exchange Commission for important factors that could cause actual results to differ materially from these statements.
Company does not undertake any obligation to update any forward looking statements or projections unless required by law.
Investors are cautioned not to place undue reliance on any forward looking statements made during the call, which reflect management's opinions only as of today.
Copies of our latest SEC filings. Please visit the company's website at Www Dot <unk> Dot com.
At this point I would now like to turn the conference over to Mr. Leblanc. Please go ahead.
Good afternoon, everyone and thank you for joining <unk> third quarter earnings call.
During the quarter, we further capitalize on the strong demand for our financing while continuing to grow the portfolio in a disciplined manner.
We're pleased to have efficiently invested the capital from our recent accretive $55 million equity offering.
This helped us grow our portfolio to a record fair value of almost $1 billion Jenny.
Generate net investment income or NII of <unk> 51 per share and achieve a weighted average portfolio yield of 13, 8%.
For the third quarter, our NII again exceeded our quarterly distribution.
And we're proud to announce that our board made the decision to increase the regular quarterly distribution to <unk> 37 <unk> per share.
Given our sizable portfolio, coupled with favorable fixed rate financing and increasing portfolio yield. We believe we remain in a strong position to both generate NII that covers our new 37 cents per share dividend.
And to further increase yields and returns to shareholders overtime as we've done the day.
Since going public more than eight years ago, we have now declared $12 60 per share in regular quarterly distributions and in addition, three special dividends for a total distributions to shareholders of $12 95 per share.
Notably our NII has exceeded our distributions on accumulative basis. During this time.
While also maintaining sizeable spillover income.
Turning to yield we have now grown our core portfolio yield to over six task quarters, and expect the positive trends and opportunities to continue.
In seeking to capitalize on the opportunities in the market. We will continue to focus on investing in what we believe are the most attractive venture growth stage companies with the strongest prospects.
Our focus on quality.
We believe there will be increasing opportunities in the many months ahead, especially given favorable market conditions that we expect to last throughout 2023.
Turning to the venture market U S steel investment activity decrease in the quarter, Although I will note that the investment activity remains above all the pre COVID-19 levels and it's already exceeded all previous year, so far except for 2021.
As you know TPG, primarily works with a select group of venture capital investors and the companies in which they invest.
Given today's market Choppiness and uncertainty these venture investors are being more selective with their dollars and they're also being far more cautious and mindful of new investments, which we believe is a positive development.
They deployed far less capital during this past summer and use the pause to continue to focus on existing portfolio companies.
Many whom appropriately revise our plans to more moderate rates of growth and monthly cash burn rate, which again, we view as a positive development in this environment.
Having said all of this.
A select group of leading venture capital investors that we work with have no lack of capital to deploy.
In fact several of them raise substantial funds this year.
As a whole U S centric capital fund raising has already set a new annual high through the first three quarters of this year.
According to pitch book NVCA through the nine months 2022 period U S. Based venture funds have raised 151 billion, surpassing last year's previous record.
And taking the last 21 months fundraising total to more than 298 billion.
Last quarter, 6% of the funds accounted for 62% of the capital that was raised.
And we note that several of our select venture capital investors were in that 6%.
Given the recent quarterly raises combined with the previous record fundraising years, there's an ample supply of venture capital sitting on the sidelines in the so called dry powder has climbed to new heights last quarter pitch book NVCA now estimating it still at more than 300 billion.
Tpg's portfolio companies are in a strong position to continue to benefit from this over time.
In fact last quarter, our portfolio companies raised more than $270 million of capital in year to date TPG portfolio companies have raised more than $2 billion.
And many continue to raise additional capital attesting to the quality of our companies.
All of this capital raising aside many of our portfolio companies continue to grow somewhere experiencing tailwind in this environment.
Number of others have achieved profitability.
Some are in thriving niche or niche software sectors and still others are in some very high interest sectors, such as microsatellite breakthrough health Tech technologies and other sectors.
The market drivers behind the demand at growth stage companies for venture lending continues to be favorable as well and we believe will be sustained in the months ahead.
Many companies who relied previously on equity alone have continued to turn towards debt and layering it in as part of their go forward plans.
In addition growth stage companies that raised equity over the last year or so at attractive valuations are increasingly turning towards venture lending given today's valuation sensitive market.
Longer timelines for public listings and the need for additional runway between equity rounds serve as another driver.
These days growth stage companies are planning out their timetable and encompassing that in their financing strategies and capitalization plans.
And still other examples some companies are increasingly commencing with drawdowns under their existing credit lines as part of augmenting their financing base.
We've seen each of these scenarios play out in the third quarter and expect the trend to continue in 2023.
These trends combined with a lower risk appetite from commercial banks has helped to create strong and sustained demand for venture lending and provides advantages to us with our deal structures and opportunistic pricing.
To wrap up we've demonstrated the significant earnings power of our sizable and high quality portfolio through growing at now to nearly $1 billion Gen.
Generating record NII and posting an attractive portfolio yield.
We expect conditions to continue into 2023 and beyond allowing us to continue to invest in highly selective and disciplined manner with compelling growth stage companies as well as in the process achieving further portfolio yield and then NII growth.
We're pleased to increase our regular quarterly dividend and are well positioned to continue to provide shareholders with a strong and increasing return over time.
With that I'll now turn the call over to Sergio.
Thank you Jim and good afternoon, Q3 was a strong quarter, where we not only grew and diversified the portfolio, but we also demonstrated both the earnings power of the business and our alignment with shareholders with regards to investment portfolio activity. During Q3 Triple point capital signed $269 million of term sheets with venture.
<unk> growth stage companies, and we closed $103 million of debt commitments to 10 companies at TPG.
Signed term sheets and closed commitments during Q3 reflected not only the seasonality of the third quarter, but also our continued discipline as we seek to capitalize on the exceptional demand in the market, while selecting only the highest quality opportunities given we expect demand to remain strong and continue to grow throughout 'twenty.
'twenty three.
In fact of the 10 companies, we committed debt capital to during the quarter.
Kevin were new portfolio companies and three were existing portfolio companies.
We also received warrants valued at $1 9 million and 16 portfolio companies and made $2 6 million of direct equity investments in six companies.
During the third quarter, we funded $101 7 million in debt investments to 14 portfolio companies in line with our guided range for Q3.
These debt investments carried a weighted average annualized portfolio yield of 14, 5% at origination up from 13, 6% in Q2 dollars 22.
Our core portfolio yield, which again is yield without the impact of prepayments was 13, 8% during the quarter up 100 basis points from last quarter and represented the sixth consecutive quarterly increase.
Regarding prepayments, we had one small prepayment in the quarter that didn't to materially contribute to portfolio yield.
I would like to also point out that our Q3 portfolio yield does not yet fully reflect the 75 basis point increase announced on September 20th which will more meaningfully impact portfolio yield starting in Q4.
For your lights losses, ending the quarter with a fair value of approximately $8.7 million.
Approximately $2.1 million of the net unrealized loss was related to our holdings and forge rock, which announced in October that has agreed to be taken private in a deal that values the company at $2.3 billion.
<unk>, which has been a portfolio company as a platform since 2016 of <unk> since 2019 and went public in September 2021 is an example of the quality of the TB Vg portfolio and the upside potential of our warrant an equity investments.
This transaction is anticipated to close in Q1 2023, and will result in a 2.6 million gain on our equity from our queue three closing value generating a total of $6 $5 million or 13 times our initial cost.
We expect our $30 million outstanding loan to prepay at closing, which generate close to $2 million of additional income.
Moving onto credit quality as Jim mentioned, our portfolio companies not only raised almost $300 million in new capital last quarter, and 2 billion since the start of the year, but have also reduced operating spend to extend runway consistent with last quarter, 90% of our portfolio is ranked that our two best credit scores.
Which means that they are performing at or above expectations during.
During the quarter, one company with $14 million, a principal balance was upgraded from category to to category, one and one portfolio company with $25 million a principal balance was upgraded from category three to category to do to improve performance.
I should note that <unk> announcement was after quarter and so we expect to upgrade the loan to category one here in Q4.
We downgraded one portfolio company medley health and online digital pharmacy with a total principal balance of $34.3 million from category to to category three due to reductions in its operating plan changes in its senior team and the overall liquidity position on.
Ah November 1st we were made aware of recent preliminary negative developments and mentally which we believe may result in a future downgrade over their outstanding loans here in Q4.
Regarding other category three companies all demonstrated stable performance during the third quarter are only category for portfolio company Luminary Rowley raised additional capital in Q3. It represents 1% of our total investment portfolio on a fair value basis.
During the quarter, we also remove portfolio company pencil and pixel from category five as a result of selling its assets consistent with our queue to valuation mark on the loans.
Turning now to the topic of alignment with our shareholders. During the quarter, we rate successfully raised common stock at a premium to Navy and quickly put the proceeds to work with no drag on NII.
Given our best in class fee structure with a look back feature of our incentive fee measured from our IPO in 2014 or incentive fees were reduced by $3.3 million due to unrealized changes in our portfolio value. This resulted in an additional 10 cents a NII for the benefit of shareholders.
During the quarter, we put in place a $50 million ATM program in order to balance and bring down our blended cost of equity capital as well as supplement and potentially smooth out our equity capital raising activity.
Of note the ATM program can only operate when we traded above net asset value.
Our board also increased a regular dividend from 36 to 37, bringing.
Bringing our annualized dividend yield based on <unk> to 11.7% at 13.6% based on our 930 closing price.
This represents our first dividend increase since Q4 2014.
We and our board will continue to monitor performance and outlook over the next couple of quarters as we consider potential additional increases.
Finally, as Chris will cover in more detail. We're also mindful of the fact that we have 52 cents a spillover income as of the end of Q3 and will continue to work with our board to determine how to thoughtfully and officially use those proceeds as we approach year end.
Nevertheless, we continue to be heads down focused on growing and managing our portfolio and a patient and disciplined manner, maintaining our target leverage and increasing our NII and navvy all while working with some of the most exciting venture growth stage companies backed by some of the industry's best venture capital funds with that I'll now turn the call.
Over to Chris.
Great. Thank you such a land Hello, everybody during the third quarter, we continued to experience growing Corey interest income from our bond portfolio and once again, sorry efficient and stable utilization rates on new deck commitments we.
We deployed capital using our attractive sources of leverage which consists of our fixed rate longterm investment grade notes in a revolving credit facility and resulting in an increased diversification within the portfolio wiess.
We successfully completed an overnight common stock equity offering and put in place are first at the market equity purchase program.
I'd like to take you through our detailed financial results for the third quarter.
Total investment income was $29.7 million with a portfolio yield at 13.8% on total debt investments for the third quarter as compared to $21 $2 million.
12.3% for the prior year period.
Total investment income reflects a higher average that investment balance as well as increased yields so.
So far this year, we have seen prime rate increase from 3.25% to 6.25% as of September quarter, and and further given the news today from the Federal Reserve, we expect to see revenue expansion from higher yields on our existing floating rate loan portfolio.
[noise] operating expenses were $12.8 million as compared to 11.3 million for the third quarter of 2021 <unk>.
Operating expenses for the quarter consisted of $7 million of interest expense $3.9 million of management fees $100000 of incentive fees and.
And $1.6 million of G&A expenses.
The increase in overall operating expenses, primarily driven by an increase in the use of attractive leverage as we increase total portfolio assets, while offset by lower incentive fees.
We are net investment income of $16.9 million or 51 per share compared to just $9.9 million or 32 cents per share in the same period in 2021.
During the third quarter the company recognized net realized losses on investments of $13.2 million, resulting primarily from the sale of pencil and pixel.
Now recall that this investment was already written down fully in queue too and so this realized loss had no impact to N. A V in the current quarter.
Net changing unrealized loss on investments for the third quarter was $3.2 million consisting of $4 million of net unrealized losses on our warrant an equity portfolio, resulting from fair value and mark to market adjustments as well as $5 million of net unrealized losses from foreign currency adjustments.
[noise] offset favorably by $6 million of net unrealized gains on our debt investment portfolio of which $13 million or.
Was unrealized gains related to the reversal of their previous lost on pencil and pixel that central mentioned.
We believe that a portion of this unrealized amount to be temporary in nature and expect that we will see a pull to par for those loans that have a market rate adjustment such as the fixed rate loans in the portfolio as a prepay and repay under their contractual maturities.
Further we have already seen some market recovery and the non U S. Dollar currencies since the end of the quarter, we have seen the pound sterling up over 3% and the euro is over up over 1%.
The company's total net asset value is $448 million or $12.69 per share as the quarter and compared to $404 million or $13 and a penny per share as of the prior quarter ended June 30th.
On October 28, the board of directors declared and increase the regular quarterly distribution to 37 per share.
This distribution is from ordinary income to stockholders of record as of December 15th which will be paid it be paid on December 30th.
We over earned the distribution again this quarter, increasing spillover income, which now total is $18.5 million or 52 per share at the end of the quarter supporting additional regular and special supplemental distributions in the future.
Let me move to our investment commitments.
We continued to experienced strong utilization on our new commitments during the quarter given are robust pipeline, we ended the quarter with $331 million of unfunded investment commitments.
Of which $128 million was dependent upon the portfolio company, reaching certain milestones.
Of these amounts $50 million of this total will expire in 2022.
79% of these unfunded commitments have contractual floating interest rates all of which have a prime rate set at least three and a quarter or higher this.
This compares favorably to the outstanding loan portfolio at quarter in which had 62% contractual floating interest rates again up from the prior quarter, which was 59 per cent.
Now just a quick update on our term notes or credit facility and overall liquidity.
As of September 30th there was an aggregate of $516 million of debt outstanding three.
395 million outstanding under our fixed rate investment grade notes and 121 million outstanding on our revolving credit facility.
In July we successfully amended our revolving credit facility, which included extending the revolving period to may of 2002, I'm, sorry may of 2004, and the scheduled maturity date to November of 25.
Total commitment onto the line are $350 million and all of the syndicate lenders continued with this long standing relationship.
The revolving credit facility allows us to efficiently manage our interest expense.
Duesing are outstandings when loan prepayments occur.
We ended the quarter at 8115 times leverage ratio, which is right within our target leverage range.
As a quarter and the company had total liquidity of $244 million consisting.
Consisting of cash and availability under our credit facility we.
We expect to draw under the facility one needed to grow their portfolio with accretive debt financing, which will benefit our shareholders.
The company completed and underwritten offering of 4.1 million shares of common stock at a public offering price of $13.75 per share and we receive net proceeds of $55 million from the sale of their shares.
This was a NAV accretive offering that added three pennies per share to Nab as of Q3.
The net net proceeds were initially used to pay down our revolving credit facility and we deployed those proceeds during the rest of the quarter into high yielding that investments despite.
Despite having increased our outstanding common shares during the quarter by 13.5% as a result of the race, we were able to generate NII in excess of the declared distributions. Thanks to a high yielding portfolio inefficient deployment of the additional equity we raised.
On September 30th we also announced our first ATM or at the market stock issuance program no shares have been issued as of today.
But we do look to issue shares over the next year. The total size is just 11% of our current nev.
In addition to this current liquidity the existing season portfolio of diversified portfolio provides stable cash flows, which bodes well for sustained liquidity throughout 2023 and beyond.
So this completes our prepared remarks, and operator, we'd be happy to take questions. At this time. So if you could please open the line.
Mmm no I'll be getting my question and answer session to ask a question Press Star then one on your telephone keypad periods.
<unk> and a speaker phone please pick up your handset before pressing the cheese.
For charter your question. Please <unk>.
Criminal policy momentarily with similar roster.
Our first question comes from from him or Shave Wells Fargo. Please go ahead.
Hi, everyone. Good afternoon.
First.
Sort of a high level Margaret question, Jim I was.
Interested in some of your earlier comments on how robust the venture capital fund raising environment continues to be.
Seemingly in the face of.
Private markets or alternative asset markets broadly and a very challenged environment, how do you think that.
What is holding up so well and do you think it is sustainable.
Well, it's hard to predict the future in terms of sustainability, but certainly it would spin.
Something over a number of years and I attributed to the attractiveness of the asset class in the long term. These are 10 year funds that are raising an <unk>.
Typically.
Returns have been pretty attractive with the select group of venture investors and hasn't been an exact function of macroeconomics cycle. So.
At least for the better V C's and the 6% that I mentioned that we're able to raise its track record in the long term outlook in it.
The valuations and three and five and seven years as the the targets not next quarter.
Kind of thing.
Okay. So.
Helpful. Thank you and follow up on the dividend.
No I have to calibrate my words here a bit because it <unk>.
It seems like the the fed may have just pushed.
Pushed the dot product up further.
But I wanted to ask.
What if the if the base rates go back down.
Are you comfortable with earning <unk>.
37.
It looks like 11.5% to 12% of an Avi.
R O E.
Yes. This is <unk> I'll I'll take it. So so I think you bring up a very great point of listen I think when it comes to the dividend. We're always mindful of not just current short term market conditions, but longer term outlook and so I would say the factors that gives us confidence with regards to our ability to cover.
And potentially more is the fact that we look at the core asset yield without.
Without the benefit of prepayment activity being particularly strong and then setting our floors are prime rate fluor's on new transactions at the current prime rate so protecting ourselves in an environment where rates base rates would come down I think the second element of it is blocking in low cost.
Fixed rate that was also another benefit to us and to gives us confidence in terms of coverage and.
And then I would say the third piece is <unk>.
Running at in maintaining target leverage and so I think that's from our perspective.
Something of most important but we have the least control over and I think we're pleased to although we had only a small prepay and and Q3, obviously to have three already in queue for as you know those generate nice gains as we mentioned in the quarter they occur, but they also delevered the business and so for us.
Continuing to have line of sight on fundings as important as we look to long term dividend distribution coverage.
Great. Thanks, so much.
And as a reminder, if you have a question. Please press our <unk>. Our next question will come from Paul Johnson K W.
<unk>.
[noise] yeah good evening.
Thanks for taking my questions.
As far as <unk>.
Companies have raised equity more recently or through the summer in the middle of the year I'm. Just curious how those conversations is gone I mean have have you noticed any change I guess and and.
Yeah.
The source of.
Where are those races are coming from any sort of commentary I guess on.
Support for companies from your sponsors.
Just curious you know.
[noise] again, where the where companies have raised equity what has been the nature of those fundraising events.
Gibbons.
I'll take a first stab again, given some of the uncertainties out there in the market.
There has been some.
A lot of attention being paid to valuations, there's some resetting and.
Probably I would call it a little bit more return to reasonable Mrs. As part of it and what in large part is happening is at least with the most of our deals and slicked investors, who said they continue to.
Remain supportive and.
Demonstrate their support.
Somewhere elm sizes tend to be a little bit more convertibles.
Capital to support the dead.
Some of the round faces with little smaller, but definitely those investors support on a go forward basis, yeah essential here I would I would only add that I think one of the benefits of partnering up with such top tier V. C's is seeing continued strong support from them in other existing.
Investors and so I think that shows commitment to the existing portfolio companies as Jim mentioned, there is a fair amount of dry powder.
Feels like a lot of the new money is sitting on the sidelines right now waiting for early next year, which is kind of consistent what we're expecting with continued demand growing next year as new money kind of comes back to market early next year, while existing investors are really leading into supporting their.
Existing portfolio companies here in 2002.
Great. Thanks, I appreciate that.
Healthful answer there.
I guess on your.
Just talking about your leverage capacity and your your target leverage for the BBC a.
A little bit.
I'm just curious are so you're you're kind of I guess.
More or less a range of one point O 1.2 times or so.
How comfortable are you I guess running it up towards the upper end of that do you have any level in your mind, I guess, where there would be kind of a hard stop it where you would probably prefer to limit I guess leveraged growth within the BDC I guess, taking all this into account to what your comments were as far as seeing.
Seeing a fairly active market more attractive deals.
In the market.
Yeah, a lot of fundraising.
Out there as well.
Yeah, I'll I'll start and then Chris please jump into so again.
Clarify Paul our our target range is 1213, and so I would say that so we're comfortable going up a little bit higher and I think we have an prior quarters and then.
Based on the sustainability of again the good news is our portfolio is amortizing our portfolio companies prepay us repay us I mean, you could we already have visibility on the we already have $34 million back here in Q4, and then another 30 with visibility when <unk> closes it take private so thats part.
The balance of I think one of the great aspects of of our portfolio is that they do prepay. They do repairs. So that allows us to have peak periods, where we may be at the higher end or exceed our our higher end, but we're not yet ready to pull the trigger on a public offering because of that visibility on liquidity I also think.
At the ATM again also helps complimenting maintaining leveraged and not getting over our ski tips on on the higher end of it. So I think they've takeaways, we have lots of levers to maintain health.
Healthy leverage both at the base level with our fixed rate debt and then at the higher level with prepaid and repays.
But I think the other point of yes <unk>.
Ensuring we have fire or.
<unk> thesis right now is the deals are just getting better every quarter. So so we're in no rush necessarily to deploy our capital Sharon Q for our core thesis without revealing too much of our strategy to our competitors as listen there's the benefit of being patient and disciplined because just as we see some of that equity capital coming off the <unk>.
Sidelines next year, that's when we really wanted to lean in and soon as we see that that growth and so I'd say preserving firepower for next year in anticipation of that is important for us.
Got it appreciate it <unk>. Thank you for that last question.
<unk> just on Bentley health, obviously because of the dimension of negative events post quarter and I haven't seen where it was marked for this quarter if it.
Potentially reflected any of that or if it had been marked down for two Q, but I was wondering if you could potentially provide any other details on the company size of the company nature just decline in the performance. If it was something more exogenous to the company or if it was driven internally with management change that you.
Mentioned.
Any information that would be helpful. Yeah, I'll start so I'd say this was a company we did downgrade in Q3 for the criteria that I mentioned in terms of kind of the business pivot and focus this change in team and kind of liquidity and so 30, roughly $30 million loan position that we have marked down here.
Sure.
Two three the developments that we mentioned today. This is something we just recently learned so.
Our team is actively monitoring the situation and so given that we were just only recently made aware of this information we're actively monitoring it.
For any further developments, but I would say that it's it's.
It's still in development.
Got it appreciate it those are all my questions. Thanks for having me.
Our next question comes from Christopher Nolan and <unk>. Please go ahead.
Hey, guys I'm, sorry July when you mentioned the leveraged target one to 1.3.
It's a thinking to keep it keep leverage on the low side, just because of the unpredictability of direction in this economy.
I think the keeping it on the lower end is really for the anticipated kind of continued growth in demand So I'd say.
I would say, it's more of a focus of having that dry powder I think the other practical element to his again given the the prepaid and repays are already locked in both from portfolio amortization maturity dates and again, the prepayment activity, where where naturally delevering a bit each quarter. So I'd say, it's it's more.
Of being.
Being disciplined Chris and timing when we.
Go back to in a meaningful way into it to take advantage of market conditions, but we want to make sure it's timed appropriately with.
Kind of strong equity conviction.
Great and I guess I only follow up would be.
Sort of a general question would you consider.
And dry Horowitz I think did a major real estate investment with the Guy who could do we work.
And yeah, it's real estate commercial real estate turns out to be a place for.
Entrepreneurs like that it's not an area that you would go in or a such a sort of <unk> outside your reservation.
So for me if I can.
Yeah, I would just say again, our model is to work with some of the brightest and breast best venture capital funds and so.
So to the extent that they are excited and deploying capital in promising sectors, we want to be thoughtful and mindful and obviously do our own sanity check as well and so I can't necessarily comment.
Unreal estate per se, but I would say fundamentally our our model is to to go in those sectors that are attracting.
Equity capital investment from Premier venture capital sponsors that we think are sustainable for the long term.
Perfect.
Oh no further questions at this time.
This concludes our question and answer session I'll now turn on confidence back over to Mister General Barry Franklin his remarks.
Thanks, as always I'd like to thank everyone for listening and participating in today's call. We look forward to talking with you all again next quarter and thanks again have a nice day.
Goodbye.
The conference is not glittered. Thank you for turning today's presentation you may now disconnect.
[music].