Q3 2022 Wynn Resorts Ltd Earnings Call
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Welcome to the Wynn resorts third quarter 2022 earnings call. All participants are in a listen only until the question and answer session of today's conference to ask a question Press Star one on your Touchtone phone record your name and I will introduce you.
He's limit yourself to one question and one follow up question. This call is being recorded if you have any objections you may disconnect at this time and I will now turn the line over to Julie Cameron Doe Chief Financial Officer. Please go ahead.
Thank you operator, and good afternoon, everyone on the call with me today are Craig Billings and Brian Gilbertson in Las Vegas also on the line of Ian Coughlan, Linda Chen Fredrik, Let me see Charles and Jenny holiday.
I want to remind you that we may make forward looking statements under safe Harbor Federal Securities laws, and those statements may or may not come true.
Turn the call over to Craig Billings.
Thanks Julie.
Afternoon, everyone and thanks for joining us today.
Before I get into the quarter I'd like to thank the cast <unk> crew and producers of awakening, our new show at Wynn, Las Vegas, which successfully opened on Monday.
The show is yet another example of our willingness to innovate and push the envelope to drive the straightforward I'm incredibly.
Proud of the team behind Michelle.
I'll kick off and Las Vegas, where the team turned in a third quarter record with $196 million of EBITDA or approximately $207 million adjusted for lower than normal hold.
We saw broad based strength across casino hotel, food and beverage and retail all well above third quarter 2021 levels, despite the difficult year over year comps.
The comparison to third quarter 2019 is even more impressive with our EBITDA more than doubling on a 36% increase in revenue.
Our investment in people facilities and programming and our teams deep sense of ownership continue to elevate Wynn Las Vegas above our peers. This quarter once again highlights the benefit of that deliberate investment strategy.
Looking ahead, we're encouraged that the strength we have experienced over the past several quarters has continued into the fourth quarter.
In fact, our EBITDA during October was an all time monthly record for the property.
Similarly, our forward looking indicators also remained quite strong despite well known macro concerns as room bookings are pacing at or above pre COVID-19 levels on substantially higher ADR.
Near term, we expect the normal normal seasonal pattern to hold during the remainder of Q4 with some of the usual softness surrounding Thanksgiving followed by a strong close to the year in the latter half of December .
Turning to Boston like Vegas, Encore had a strong quarter generating $61 million of EBITDA.
Saw strength across the casino with record gross gaming revenue and on the non gaming side with record hotel revenue driven by strength in both ADR and occupancy.
These trends have continued into Q4 with EBITDA per day in October consistent with the third quarter levels.
Looking ahead, we remain excited about sports betting and the Commonwealth, which is expected to kick off early next year.
Our retail sports book, there will soon be a significant opportunity for customer acquisition.
Also continue to finalize our plans for our upcoming development projects across the street from the property that will add incremental parking food and beverage and entertainment amenities.
In Macau the market continues to be challenging with market wide <unk> in the third quarter, only reaching approximately 8% in the third quarter of 2019 levels and our results have reflected that.
Our team has done a fantastic job controlling costs in a very challenging operating environment through a combination of decreases in payroll and fixed opex.
As a result, despite the nearly two week closure of casinos in the market in July our overall EBITDA loss in the third quarter was $66 million, which was a meaningful improvement from a loss of $90 million in the second quarter, even after adjusting for a $7 million bad debt credits that benefited the results in the third quarter.
More recently, we did see some encouraging pockets of demand during the October holiday period, particularly in our direct VIP business, where turnover was actually slightly above the comparable 2019 holiday period and in our retail business, where tenants sales reached 74% in 2019 levels.
This once again highlights the strong demand for <unk> unique tourism offerings during periods when the market is accessible.
The authorities in Macau continued to advance the concession process. According to the pre established timeline, we were pleased to submit our concession tender application in September and the government is currently reviewing the proposals with decisions expected to be made by year end.
Long term, we remain excited about the prospects for Macau was so much pent up demand for travel and tourism in Asia.
At Wynn interactive our overall EBITDA burn rate declined to $18 million in Q3 from $21 million in the second quarter of 2022 on the back of strong cost controls can approved improved marketing efficiency.
We're looking forward to the potential for a significant catalyst for win back in Massachusetts.
Lastly, we're advancing quickly on our planning for wind mahjong are integrated resorts in the UAE.
We're in the late stages of programming for the resort.
Given the pristine beach setting in the somewhat malleable nature of the man made island, we have an incredible canvas with which to work and design something truly unique.
Spectrum will share renderings programming and plants more publicly in early 2023.
I also expect we will be driving piles for the foundation of the property by the middle of next year.
We look forward to sharing more details with you about this exciting project in due course.
With that I'll turn it back to Julian to run through some additional details on the quarter.
Thank you Craig Wynn Las Vegas, we generated a third quarter record of $195 8 million and adjusted property EBITDA on $544 4 million of operating revenue during the quarter lower than normal hold negatively impacted EBITDA by around $12 million in Q3.
Hotel occupancy was 88, 8% in the quarter up 590 basis points year over year, and up 90 basis points versus Q3 2019.
Importantly, we stay true to our luxury brand and continue to compete on quality of product and service experience with our overall ADR, reaching $426. During Q3 2022 up eight 7% versus Q3, 2021, and 39% above Q3 2019 levels are.
Rob and non gaming businesses, so broad based strength across food and beverage and retail which were up nicely year over year, and also well above pre pandemic levels.
In the casinos Q3, 2022 slot handle increased 31, 6% year over year and was $72, 2% above Q3 2019 levels. Similarly, our table drop was up 12, 5% year over year and was 32, 4% above Q3 2019 levels.
Despite still suppressed international play during the quarter due to COVID-19 related travel challenges the.
The team in Vegas has done a great job of controlling costs without negatively impacting the guest experience deliver.
Delivering adjusted property EBITDA margin of 36% in the quarter on a hold normalized basis, our EBITDA margin was up approximately 3800 basis points compared to Q3 2019.
Opex, excluding gaming tax per day with $3 $6 million in Q3, 2022 up 10% compared to Q3 2019 levels, but well below the 36% increase in revenue due to lower head count and broad based cost efficiencies in areas that do not impact the guest experience.
We remain committed to maintaining a cost structure that appropriately balances margins on our exacting service standards.
In Boston, we generated adjusted property EBITDA of $61 1 million in Q3 2022 with EBITDA margin of 28, 9%, we saw broad based strength across casino and non gaming during the quarter and the casino, we generated $194 million of GTR proper.
Record with strength in both tables and slots.
Non gaming revenue grew 33, 33% year over year with particular strength in the hotel driven by 97% occupancy and a $398 ADR.
We stayed very disciplined on the cost side with Opex, excluding gaming tax per day of approximately $1 1 million. In Q3 2022. This was a decrease of over 10% compared to $1 3 million per day in Q4, 2019 and broadly in line with Q2 2022.
As we've discussed on prior calls the year over year, EBITDA and Opex comps were impacted by a combination of contractual labor agreements, which added around $45000 per day to our Opex base beginning late in Q2 2022.
With a one time benefit of $3 million in Q3 of last year.
We are well positioned to drive strong operating leverage as we continue to grow the top line over time.
On the cow operations delivered an EBITDA loss of $65 6 million in the quarter of $115 $6 million of operating revenues as the Covid situation in the region has continued to suppress visitations as Craig noted while the business has remained challenging we experienced some encouraging pockets of demand.
During the October Golden week holiday period.
And our direct VIP and retail businesses.
Our opex, excluding gaming tax was approximately $1 $6 million per day in Q3, a sequential decrease compared to $1 9 million per day in Q2 2022. The team has done a great job remaining disciplined on costs in a difficult operating environment longer term, we are well positioned to drive strong operating leverage as the business recover.
But over time.
Turning to win interactive EBITDA burn rate improved to $17 $7 million in Q3 2022 from $21 million in Q2, 2022, primarily driven by improved marketing efficiency and disciplined opex controls.
Moving onto the balance sheet, our liquidity position remains very strong with global cash and revolver availability of approximately $2 $8 billion as of September 30th.
This was comprised of $997 million of total cash and available liquidity in Macau and $1 $8 billion in the U S.
These numbers exclude the undrawn $500 million intercompany revolving credit facility when results entered into with Wynn Macau.
Our previously announced sale leaseback transaction for the real estate of Encore Boston Harbor remains on track to close before the end of the year.
Pro forma for the transaction, we have approximately $4 $4 billion of consolidated global cash and liquidity.
Importantly, the combination of very strong performance in Las Vegas, and Boston with the properties generating trailing 12 month EBITDA of over $1 billion together with our robust liquidity creates a very healthy pro forma leverage profile in the U S.
Finally, our capex in the quarter was $87 million.
Primarily related to the awakening.
Wynn Las Vegas, and normal course maintenance.
With that we will now open up the call to Q&A.
Thank you.
At this time, if you would like to ask a question.
Please press star one on your Touchtone phone on mute your phone record your name clearly after the problem and I will introduce you for your question. Please limit yourself to one question and one follow up question to withdraw your question Press Star two.
Our first question comes from Carlo Santarelli with Deutsche Bank You May go ahead.
Hey, Craig Hey, Julien Thanks, everyone for your comments.
Guys I just wanted to kind of talk a little bit about what both of you mentioned as it pertained to the uptick that you're seeing in Macau, how much of that at this point do you think you could perhaps and I understand it's kind of direct VIP.
While our number of players can really move the needle, but how much of a change have you seen since the visa policies were tweaked a little bit and.
With respect to the comments you made on non gaming is it is there potentially something that's kind of brewing that's that's.
Swift thing the pace, a little bit of the return of customers.
Hey, Carla sure I'll start and then I'll ask I'll ask Ian to comment I think on.
The latter portion of your question.
With Hong Kong being inaccessible I think you've seen.
Pretty reasonable retail sales in Macau, given it's more accessible than in Hong Kong and I think Thats just a natural.
Thats just a natural outcome of accessibility with respect to your to the former part of your question I mean.
Like squeezing air in the balloon right. The demand has to go somewhere and so we weren't surprised to see.
An uptick in direct VIP growth in light of.
In light of the market having.
Having no junkets.
So I don't think either one of them was surprising to us we've seen it before we've received over the course of the past year. When there have been pockets of demand and would you add anything to that.
I'd just like to clarify that four <unk>, they haven't really gotten moving yes.
Reopened on the first of November so they wouldn't have had an effect on October activity. So all the activities that we saw in our VIP area on premium mass is linked to a certain extent to returning former chocolate players. We also saw other Chinese new year. So we believe the top premium positioning in the market.
The facility and services that we offer make us attractive to those players and there will be a return of them in the future.
Great.
While you're there is it possible.
That we will hear something I know you guys certainly said by year end as it pertains to the granting of the concessions is it possible that that between here and there seven eight weeks away.
We will hear some contingent licenses being handed out.
Anything is possible.
So sorry, anything anything's possible carload, but.
The pre established timeline has been year end.
Great and then Craig while I have you I know you mentioned a little bit of development on the UAE and obviously some groundbreaking next year with some more color in the first quarter of 13, but could you talk a little bit about the progress in your learnings maybe.
At this stage anything incremental you could share on that front.
Yes sure.
I think I've mentioned on previous call date.
More time, we spend over there and I was just over there recently the more we believe in the non gaming elements of that market, it's a tremendous non gaming leisure and luxury market.
And as I mentioned in my prepared remarks, we're in pretty late stages now as programming so.
Essentially determining what we're going to build not how it is going to look per se and given that it's a man made island without any existing development. It's an incredibly flexible location on which to plan. For example, if you want to move a beach you move a beach.
It's a really exciting really exciting projects and we've sought to maximize the relationship of the facility to its surroundings, particularly in the non gaming amenities like food and beverage wellness really take advantage of such a unique location.
Meanwhile.
The casino component, where at least for some period of time, we will be operating on our own which makes it quite exciting is shaping up to be somewhat larger than Wynn Las Vegas, but with numerous pockets of energy and compression and so striking that balance is important when you think about a market like that where you see where you for some period of time.
We'll be the only operator.
Certainly don't want to under build the casino, but you want to maintain that sense of energy.
So I think the property is going to be a stunner and we look forward to sharing more in in early 2023.
Great. Thank you both.
Thanks, Thank you.
The next question is from Joe Greff with J P. Morgan you May go ahead.
Good afternoon, everyone.
I was hoping you can talk about Las Vegas, Craig in a way that to be.
A little bit different than how you and your peers have talked about trends up until recently specifically about programming.
Can you discuss maybe in this way that would be helpful. As we try to ascertain the sustainability of currently strong trends.
Can you talk about how many programming events do you have for the first half of next year versus the first half of this year if visibility stretches out for the full year next year and can you compare that to the full year of 'twenty. Two is there a general rule of thumb relating.
Incremental revenues of an average programming of it.
Sure.
Look I think this.
Las Vegas has done programming for years in some form or fashion and I think as we emerge from Covid.
Yes, we were in in many cases.
A better location.
In terms of accessibility openness masks et cetera, et cetera than some of our adjacent markets, particularly California, I think the trend towards programming and the willingness of a higher value customer to pop over to Las Vegas for a particular event.
Increased meaningfully.
And so what I think and by the way at the same time, you obviously had a number of.
A number of sports teams that had emerged in Las Vegas, most notably the Raiders, who drive a tremendous amount of visitation.
And so I think in general the town has become quite good at really looking at every weekend or every two weeks is an opportunity to program something.
The journey for US I think is slightly different right. We don't think of programming is purely transactional who are we going to plug into a particular theater on a particular day.
For us it's more holistic how can we leverage all of the assets that we have in this building, including the golf course, which we've used to great success.
With the match with the recent Concorde elegance.
Car show that we that we drummed up an originated here.
And so how do we use the property is the stage, we think about that all the time now so I don't have a heuristic for you where I can quote to you X number of events per year, because really we're focused on it every every single week.
Certainly.
And there is more than just revenue to the property in an earth.
It makes you the CNBC spot.
And Thats important because marketing is no longer about billboards and about television commercials, it's about content.
And so we've been incredibly good at creating content and it doesn't hurt that during the pandemic. We continue to invest in this property and invest in our people and so we're firing on every single cylinder here and I think it shows in the numbers and programming is a piece of it.
Great. Thank you and then.
Great My second question.
Rates to a topic that you might be limited in fully answering.
We all saw almonds for.
Filing <unk> filing last week.
So my questions are one have you had any conversations with him obviously, you talk with investors and prospective.
Prospective shareholders all the time.
Two what did he communicated to you as the reason for his sizeable speak in wind and three can you share that.
Yes.
Well when I, what I guess, what I can say is kudos to him because he has done quite well since he appears to have started acquiring in the second quarter. When the stock was excessively cheap it's actually.
It's actually right around when we were buying back some stock as well that we reported in our in our second quarter Q.
Based on what we've seen watching our share register as we do constantly sometime in Q2, we began seeing accumulations.
By certain banks that have traditionally been associated with derivative transactions like total return swaps and things like that.
And we watch those banks established positions in our stock and we were well aware of them.
All in all I think it's just a great recognition of the value in our equity, but theres not much more to say beyond that.
Thank you.
Thanks, Joe.
Thank you. The next question is from Shaun Kelley with Bank of America. You May go ahead.
Hi, good afternoon, and thank you for taking my questions.
Craig just wanted to go a little deeper on Las Vegas, we talked about sort of the topline side a little bit the outlook. There can we talk about sort of labor and Opex trends I think.
Notwithstanding in the quarter operating expenses were up a little bit can you just help us think about the puts and takes here as some of the non gaming mix continues to come back some of the group in banquet and catering stuff. The show comes in and has a bigger contribution can you help us think about sort of the balance of those.
As we move into next year, and we're starting to lap really strong margin and rate average daily rate performance in 'twenty two I'm sure there's different it back for dollars then for margins. So maybe help us think about some of that as we look out next year.
Yes sure.
I'll turn that one over to Brian sure. Thanks, Sean.
Our team has really been incredibly disciplined over this last year.
For that coming out of the pandemic with respect to Opex.
Driven real strong revenues EBITDA and EBITDA margin as you can see has been quite strong and in comparison to.
Q3 19.
Amazing performance. So I think this has all been done by us really balancing the revenue and our cost base and most importantly, our brand and really being conscious of that there is an impact from the seasonality of where we were at our homes, obviously was a little down this last quarter.
Labor.
Being very well controlled by the team and I think that we can continue to see margin expansion versus 19 at almost any given revenue level.
The team has really been about balanced on focusing on the revenue or the cost base on our brand and we've seen great great growth as far as ADR.
We've seen very little resistance, if youre following our rates, which I'm sure you are.
We've leveraged as much as we pushed as hard as we can and kudos to our revenue team and sales team there.
They are absolutely crushing it we're seeing incredible records on our side for <unk> and that's not just on the transient side, we're seeing that in group across.
Across every segment and I would just add to that as you know Sean we don't target margin in any particular quarter right, we target prudent management of our.
Of our resources in order to deliver an experience that is consistent with the brand we learned a lot during COVID-19 a lot where we are more nimble than we have ever been with respect to.
To Opex and so we're running the business with with less people, we're delivering on the brand promise as well as or better than we than we have historically and that's how we that's how we manage the business.
Great. Thanks.
And for my follow up maybe for Ian.
Yeah.
Obviously, the Evs the channel did open I believe on November <unk> has there been any notable change or anything you could just say about traffic levels, because that's obviously a material area there.
Has been shut down for a very long period of time at this point.
If not are there some counterbalancing forces, we need to be aware of I know there'd been a decent number of Lockdowns and Covid outbreaks that also could have some impact here. So just what are you seeing on the ground.
So do you want to take the helm.
We were very impressed with the government's reaction to the recent outbreak in Macau when we get an outbreak in the summer and we go to casino closures. There was a six week cycle of closure and recovery.
And the government have managed to turn it around in two weeks. This time. So we are starting to see a build up in occupancy.
And see this coming weekend, so we're coming out of our recent outbreak and I believe we will see the visas.
<unk> in the next couple of weeks and then pick up pace in the coming months.
Thank you very much.
Thanks, Sean.
The next question is from David Katz with Jefferies. You May go ahead.
Hi, This is Cassandra on behalf of David. Thank you for taking my question.
Can we talk about digital wagering, making some operators.
Talk about October being close to breakeven or even EBITDA positive can.
Can you provide any update or incremental clarity on when do you think the business My turn.
Profit.
Sure.
So looking at the in the long term, we think about this business as I've said on prior calls we think about it really over the longer term.
And in particular high casino, where we've had a.
Pretty reasonable success in our brand has real currency.
As we've said before what we arent been I think we were the first to say so we well we aren't willing to do is burn billions of dollars between now and then and we've done that.
If you look at our results for Q3 year over year, we had almost the same total handle in both Q3 2022 in Q3 2021 on a 90% reduction in marketing spend and an 80% reduction in burn.
Because our initial customer cohorts continue to play with us generating revenue and we're being very thoughtful with respect to user acquisition and promos.
With Massachusetts, coming up I would expect a modest uptick in UA, but nothing earth shattering because we have a sizable database there and we're highly likely to have retail sports betting without mobile for a while so the goal. The goal is at this point are to launch, Massachusetts, and as you said achieve breakeven and.
And grow as the market does particularly in gaming where again our brand has currency.
And we can ultimately drive the best digital customers to Wynn Las Vegas, and Encore Boston Harbor, So we're not calling the.
Calling the EBITDA breakeven point, yet, but I mean, if you look at our numbers, where we're getting pretty close.
Great. Thank you.
And for the follow up.
Has there been any updated thoughts on the excess land do you have in Las Vegas.
Now what are some kind of strategies that can activate the value there.
Look we're focused the.
Type of design and development that we do.
You can't spread yourself too.
So we're very focused right now on the UAE and getting that right. Its tremendous very high return opportunity for us we expect.
And so thats really the sign of law, that's really the focus of our design and development efforts at the moment.
Got it thank you for taking my question.
Yes.
Thank you. The next question is from Dan <unk> with Wells Fargo. You May go ahead.
Hey, good afternoon, everyone.
So in Las Vegas.
You talked a little bit about the programming benefits going forward, how should we should be thinking about that as you think about along with that.
The group and convention business coming back in into 2023, and the occupancy uplift is this fair to give you guys that full five credits going forward starting next year or is that something that's going to be phased in more gradually.
We don't again.
Again, we don't really talk about forward guidance, so I can't translate it into.
Basis points, what I would say in general is that Youre right. The group and convention business. During the earlier portion of this year was a little bit sooner or certainly concentrated in very specific pockets.
And over the course of really the past month month, and a half or so we've seen we've seen the business come back more fully so that certainly is is an occupancy tailwind, but quantifying it at this point, we're not we don't do that.
Understood and then in terms of capital allocation, you're set to receive the proceeds from the encore Boston sale leaseback in the fourth quarter.
Does that change your thinking.
In terms of allocating capital or are you now in terms of how bout you're buying back stock or maybe even a special dividend.
Well.
The recurring dividend is really the cornerstone of our strategy and it always has been and certainly was pre COVID-19.
Our U S business is generating.
Very very healthy cash flow and our high ROIC development projects UAE.
The development, we're doing adjacent to Boston.
The press has reported that were interested in New York those are well funded given particularly the cash infusion that you just referenced the resumption of that recurring dividend really hinges on.
On the recovery of Macau.
So I think it's a little too early to be talking about significant changes in capital allocation policy.
Pending the pending the return of Macau, which hopefully is.
As over the next the next several quarters.
So stay tuned.
Alright, thanks, so much.
Yes.
Thank you. The next question is from Robin Farley with UBS you May go ahead.
Great. Thanks can you kind of remind us what your interest level is in potential New York side at this point.
Yeah.
Sure Robin So we are all about gateway cities Mark key developments.
Battleship assets and so yes, we're always interested in locations like New York the Devil's in the details of course, when it comes down to.
To what the upfront license payment ends up being what the tax rate ends up being what the detailed regulations end up being but yes of course, we're interested in New York as has been reported in the press.
But you wouldn't necessarily give any more detail in terms of.
Like potential location.
Timing.
Okay.
It's been reported that we are working with related.
Hudson yards.
Okay.
And anything in terms of your timing expectations.
Scott, it's really dependent on the process the RFP has yet to drop.
Yeah Okay.
Okay. Thank you.
Sure.
Okay. Thank you operator, we'll take one last question.
Thank you. Our final question is from Brent <unk> with Barclays. You May go ahead.
Hey, good afternoon, everybody. Thanks for taking my questions. So.
Your margin story was really really good here this quarter and you gave a stat on Opex per day growth from 19 are up 10% and I was curious if we could look at that number on a CAGR basis and sort of get any comfort ability around your ability to manage to that growth.
Right or if and I guess, what I'm getting at is is inflation picking up.
Sort of impact that going forward.
Well look ill.
Take this one Julie so.
First you have to think back to our experienced during COVID-19 and kind of work forward. So as we emerge from Covid.
We.
We're forced actually to become much more disciplined in terms of how we looked at looked at cost now we have always delivered the best guest experience in the business and the challenge that we had was making sure that we continue to do that but frankly on a lower FTE count and we've carried that on so we're down ftes relative to 19 even.
In this quarter and even in last quarter, when we printed nearly $240 million in EBITDA.
So when you look at when you look at our Opex per day now a lot of it is variable and directly related to directly related to revenue to your point on inflation.
Inflation works two ways in our business the price of a hotel room can be adjusted every minute of every day.
And.
And that's one of the benefits of a business like ours.
So we feel good about our ability to manage labor costs now we have a portion of our business with Union and that's true of everybody all the major players other than one up and down the strip.
And so that's an important consideration, but we're not.
Staying up at night Stewing about.
About the cost of labor.
And in fact, the vast majority or a large number of positions in our building or tips and folks that are tips, where else do they want to work.
I won't be here so.
We feel great about our margins again, we don't manage quarter to quarter to a particular margin, we manage our ftes with discipline and we try to maximize revenue and maximize the delivery on the brand promise.
Excellent. Thanks for that and then just as a quick follow up when you talk to your internal sales folks who are on the phone every day with the planners at large core at large corporate clients.
Do you get the sense that there's any unevenness across different corporate sectors E Tech where people over there are sort of looking at 'twenty, three gatherings and things that we're thinking about planning and potentially hitting the pause button just given the macro.
Brian you want to take that sure. Thanks, Greg Brent I think something that's real telling.
From an industry standpoint is to really just look at the large city wides.
Yes back in 2020 did over 170000 and in 'twenty. Two it did 44000. So certainly that is the international component of strong international component to that business as well as in the tech industry, but then when you look at Sema that just happened. This last month, a couple of weeks ago.
<unk> had over 130000, so we're having the most solid year, we've ever had we're going to have our best year ever in group in both room nights and revenue and we're pacing ahead of that $4 23, and that's despite.
January and February having a real soft January and February with Amazon. So I think we're well positioned.
There are certain industries that are performing better than others, and we're seeing that both at Wynn and across the city I would assume we've been more than able to fade any any minor fallout that we've seen from tech mortgage et cetera et cetera.
A couple of cancellations, but it's nothing out of the norm in fact, it's kind of below what we would normally see so I think we're quite comfortable with where we're pacing. We're pacing ahead of where we should be.
And we are very encouraged by what we're seeing for 'twenty three.
Okay, great color. Thanks, so much.
With that we will now close the call. Thank you operator, and thank you everyone for your interest and we look forward to talking to you again next quarter.
Thank you that does conclude today's conference.
You may disconnect at this time.
Okay.