Q1 2023 Madison Square Garden Entertainment Corp Earnings Call
Good morning, Thank you for standing by and welcome to the Madison Square Garden Entertainment Corp fiscal 2023 first quarter earnings Conference call.
At this time all participants are in a listen only mode. After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question again press the star one.
I'd now like to turn the call over to Ari Danes Senior Vice President Investor Relations Financial Communications and Treasury. Please go ahead.
Thank you good morning, and welcome to MSG Entertainments fiscal 2023 first quarter earnings Conference call.
Dave Burns, our EVP and Chief Financial Officer will begin today's call with an update on the company's proposed spin off transaction as well as a discussion of our entertainment at Tao group segments.
This will be followed by an update from Andrea Greenberg, President and CEO of MSG networks Dave.
Dave will then conclude with a review of our financial results for the period.
After our prepared remarks, we will open up the call for questions.
If you do not have a copy of today's earnings release. It is available on the investors section of our corporate website. Please take note of the following today's.
Today's discussion may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, any such forward looking statements are not guarantees of future performance or results and involve risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements.
Please refer to the company's filings with the SEC for a discussion of risks and uncertainties.
The company disclaims any obligation to update any forward looking statements that may be discussed during this call.
On pages five and six of today's earnings release, we provide consolidated statements of operations and a reconciliation of operating income to adjusted operating income or.
Our non-GAAP financial measure.
And with that I'll now turn the call over to Dave.
Thank you Ari and good morning, everyone.
Since our last call I'm pleased to share that we have made significant progress on the potential separation of our businesses into two publicly traded companies.
As you know in August we announced that our board of directors authorized the exploration of a potential tax free spin off of our traditional live entertainment and media businesses.
Last month, our company's submitted an initial confidential form 10 registration statement with the SEC regarding the proposed transaction.
We are also continuing to make progress in evaluating a number of areas, including potential organizational structure and the division of corporate overhead between the two companies.
Assuming we move forward with the spin off the live Entertainment and media company would take on the named Madison Square Garden Entertainment Corp, while the remaining parent company consisting of our MSG sphere, and Tao group businesses would be renamed MSG sphere Corp.
At this time, we have not set a timetable for completion of this potential transaction, which would be subject to various conditions, including final board approval.
We continue to be confident that this separation would create enhanced flexibility for both companies to pursue their own distinct business and capital allocation strategies, while providing investors with greater visibility into each company's businesses and growth prospects.
This includes the unique opportunity, we have with MSG sphere, where in Las Vegas, we remain on track to.
Opened MSG sphere at the Venetian and the second half of calendar 'twenty three.
Work continues on the exterior of the venue with the installation of the Leds Mega panels on the exosphere, where crews have been progressing from the top of the venue down.
And inside we're continuing to build out the interior spaces, including the atrium and hospitality areas as we prepare for the installation of some of the venues signature immersive technology features.
This includes the interior display plain, which will be the highest resolution Leds screen in the world.
At more than 160000 square feet or bigger than three football fields. This display will wrap up over and behind the audience, creating a fully immersive visual environment at an unparalleled scale.
And the powerful canvas for artists and partners to showcase captivating content and storytelling and new ways.
As we move forward through the final phases of construction, we have adjusted our project cost estimate to approximately $2 $1 $75 billion from our prior estimate of $2 billion.
Which primarily reflects the ongoing impact of inflation and global supply chain pressures as well as the overall complexity of the project.
We continue to expect to fund the remaining construction cost from cash on hand, and cash flow from operations.
This includes the impact of our plans to implement a cost reduction program across our businesses and reduce <unk> defer certain discretionary capital projects.
We also continued to have revolver capacity available to us if needed.
While the project's costs have increased we are drawing closer to the completion of construction and remain as confident as ever in the revenue and AOI opportunity that we have in Las Vegas with MSG sphere.
We will continue to update you on our progress.
Now I'd like to review operational highlights from our first quarter, starting with the entertainment segment.
Fiscal 2023 is expected to be the first full year of events at our venues since fiscal 19.
And we got off to a fast start in our first quarter call.
Hosting over 150 events and more than 1 million guests across our performance venues.
This included a number of multi night runs in the quarter highlighted by Harry styles, 15 night sold out residency, which helped contribute to a record number of first quarter concert at the garden.
Robust demand from artists and promoters to play our venues.
Has been matched by eagerness from fans, who want to see their favorite shows in person.
Ticket sales remained strong and the significant majority of concerts held at our venues in the first quarter were sold out.
Looking ahead, our bookings calendar for fiscal 'twenty three continues to fill up and we are tracking towards meeting our robust targets for the year.
This includes a busy schedule for our sports bookings business.
Last month, the Knicks and Rangers kicked off their 'twenty two 'twenty three seasons at the garden, while the Hulu Theater and welcome to the league of Legends World Championship.
Which spanned 12 events across three weekends.
And this coming Saturday USA is set to return to the garden for what's projected to be one of the top grossing events in the arena is history.
Turning to productions.
After the Christmas spectacular was cut short last season due to operational challenges from the pandemic. We are excited for this time honored holiday tradition to return on November 18th for its 89th year.
Advance ticket sales for the 181 show run have been performing well and are pacing ahead of last year on a per share basis.
By improving tourism, which at this time last year was significantly impacted by the pandemic.
This years production will feature new immersive elements as we continue to explore in unique ways to integrate technology to ensure their production remains a vibrant asset for our company.
We also look for unique opportunities that showcase the rockettes brand to a wider audience, which this year includes the hallmark channels, all new movie a holiday spectacular.
Premier later this month.
This film will feature the rockettes in various performance numbers on stage at radio City.
We are pleased to be partnering with the hallmark channel to bring together these two iconic holiday brands.
Turning to marketing partnerships.
Our first quarter was highlighted by significant renewals with signature partners Verizon and spectrum.
At the same time, we have expanded our partner roster into new categories, forming multiyear agreements with brands such as hub International a leading global insurance brokerage firm as well as QVC, which is the new presenting partner for the Christmas spectacular.
Our premium hospitality business is also off to a strong start helped by continued improvements in New York City office occupancy.
Just a few months into fiscal 'twenty three we have already exceeded our annual goal for suite renewals and are closing in on our target for sales of new licenses.
The success, we have had in renewing and adding corporate partners. In recent months has placed us firmly on a path for sponsorship and sweep revenue to exceed results for fiscal 19, our last full year before the pandemic.
Turning to Tao group.
Where our first quarter results reflected strong performance in New York and Las Vegas.
This is especially impressive considering the challenging comparison with a year ago quarter, which benefited from enthusiasm around the reopening of live entertainment in our markets.
In addition, this quarter's results included the impact of a number of new venues such as level restaurant in Los Angeles, and San Diego as well as the reopening of Tau Beach Las Vegas after a multiyear renovation.
<unk> has also made progress on its pipeline of new projects remaining on track to open over 10, new branded locations this fiscal year.
In fact last week Tau debuted two new branded locations with two more to follow within the next month at the New Moxie Hotel, New York city's lower east side.
And as we look towards the end of this calendar year and into the next Tao will also be expanding its presence in places such as the Middle East Las Vegas and Miami.
The Las Vegas, and New York markets are models, where Tao group has strategically executed its hub strategy, leveraging our centralized infrastructure to optimize and expand operations across a network of venues.
<unk> remains focused on its growth plans, including projects already underway with this strategy in mind.
For example, towels upcoming restaurant in Miami planned to open during the second half of the fiscal year will be their second of hopefully several locations in this market, which we think is primed to be another hub in <unk> portfolio.
We're also excited that today Tao group and partnership with Unicorp National developments announced plans to open the first ever Tau branded hotel.
That has been a proven leader in the entertainment dining and nightlife space for more than 20 years, including operating more than 40 branded locations inside existing hotels across the world.
This project, which is expected to open in calendar 2025 will complete Tao group's 360 degree approach to full service entertainment experiences and showcase its flagship brand and a whole new way.
So in summary, we are pleased with our strong start to the year and look to continue building off this momentum.
With that I will now turn the call over to Andrea.
Thank you, Dave and good morning.
With the recent start of the NBA and NHL regular season.
Our again poised to deliver unparalleled coverage of the New York Knicks Rangers and Islanders, New Jersey Devils and Buffalo Sabres with hundreds of live games across MSG networks and MSG go this season.
I am proud that last month.
Continued commitment to programming excellence was once again recognized with 10, New York Emmy Awards.
Which was top among New York area, RSM and brings MSG networks total to an impressive 299 any in our history.
As to our financial results, we continued to experience a decline in subscribers this quarter.
And as a reminder, this was the last quarter for which year over year comparability was impacted by our non renewal with Comcast.
That said as the NBA and NHL seasons continue we hope to build on the successes, we had last year, which included record advertising revenue for our team and all time high levels of viewership and engagement on our streaming App MSG go.
We expect advertising results this year to be driven by a robust sports gaming category from all five of our sports betting partners right.
Growth from other national brands, including Airbnb, Amazon, Disney plus Netflix and Chipotle and a strong core of returning advertisers.
On the programming front, new and expanded initiatives. This year include 12 that cash across the Knicks and Rangers games. The addition of life Pickle ball.
And over 30 local high school football game.
And we will continue to explore new ways to offer and monetize our content, while working to reach new audiences.
In that regard we are progressing in the design and development of our direct to consumer offering and remain on track to launch in the second half with the current NBA and NHL season.
So while the media landscape is certainly evolving.
Continue to believe in the value of our premium content and our ability to innovate to drive value for partners advertisers and viewers alike.
With that I'd like to turn the call back over to Dave.
Thank you Andrea Let's now review our financial results for the fiscal first quarter.
On a total company basis, we generated revenues of $401 2 million and adjusted operating income of $2 8 million.
The entertainment segment had $147 $1 million in revenue a significant improvement over last year's COVID-19 impacted quarter, primarily reflecting our busy schedule of events.
Adjusted operating loss for the Entertainment segment was $44 $4 million.
This result reflects.
The strength of our bookings calendar.
The seasonality of our business as the Knicks and Rangers regular seasons didn't begin until October and.
And the impact of expenses related to MSG sphere, as we prepare for the opening of MSG sphere at the Venetian.
Turning to MSG networks, the segment generated $122 $5 million in revenue and $32 9 million in Oi.
<unk> decreased on a year over year basis in the quarter, primarily reflecting lower affiliate revenue as well as higher rights fees expense, which reflects the absence of reductions and media rights fees related to the shortened 2000 22021 NHL season.
<unk> in the prior year quarter, and the impact of contractual rate increases in the current year period.
These were partially offset by a decrease in SG&A, primarily due to lower advertising and marketing expenses.
Finally, Tao group generated revenues of $132 $7 million and adjusted operating income of $14 6 million.
The increase in revenues versus the prior year quarter includes the impact of new openings and venues that had been closed in the prior year period due to COVID-19, as well as higher comparable venue revenues.
The decrease in Oi also reflects the impact of increased staffing at the venue and corporate level as the business returns to normal operations as well as higher food and beverage costs, including the impact of inflation, which the team has been working hard to mitigate.
Turning to our balance sheet as of September 30, we had approximately $441 million of cash on hand, and our debt balance was approximately $1 76 billion.
And lastly, with respect to MSG sphere at the Venetian are project to date construction costs through September 30th were approximately $1 $7 8 billion.
Which includes approximately $226 million of accrued costs that were not paid as of September 30th and is net of the $65 million received from the Venetian.
With that I will now turn the call back over to Ari.
Thanks, Dave Operator can we open up the call for questions. Please.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
And your first question comes from the line of Brandon Ross from Light shed partners. Your line is open.
Hey, everyone.
And how youll be able to financially get this project completed.
And then maybe as part of that can you speak to the magnitude in buckets of the cost reductions that you had mentioned and whether or not this is going to impact the spin timing since presumably the MSG and cash flow is helping to fund this project.
Sure. Thanks Brandon.
Look we're confident that we have sufficient liquidity from cash on hand, and cash flow from operations to complete the construction of the sphere at the Venetian in Vegas.
A few items I'd highlight first off.
We're now in the midst of our seasonally strongest point of the fiscal year with the Christmas spectacular the best months coming up for our bookings business and the impact of the Knicks and Rangers seasons.
And we're anticipating that we will generate substantial cash flow from our core operations, which we expect to continue to utilize for MSG sphere.
Second while our plans are still being formulated we do expect as you mentioned to implement a significant cost reduction program across our businesses and are planning to reduce or defer certain discretionary capital projects as well so.
And aside from cash on hand, and cash generated from our businesses. We also if needed to have availability under our revolvers.
And again as a reminder, post spin.
Fear would have the one third retained interest in the spin co sphere call I should say our remain co would have the one third retained interest in spin co.
Which would be available in a tax free exchange offer but also to raise capital for general corporate purposes, if needed so thats.
The first part of the question Brandon as far as.
Our cost reduction efforts.
We're still in the middle of this now and I can't get into details on this call specifically, but what I'll say is we're going to look holistically across all of our businesses to ensure all areas continue to be positioned for success in the future and other than that it's just premature to comment further at this time.
And then lastly, the third part of your question was on with regard to the spin.
What I what I can say is we're we're hard at work on it at this time, we're making great progress.
As I just mentioned we've made our initial form 10 submission at the end of last month.
And we're going to keep moving the process forward.
That's where we are spin was.
Okay.
Okay. Thank you.
And your next question comes from the line of David Katz from Jefferies. Your line is open.
Hi, good morning, everyone.
Thanks for taking my question I wanted to delve a little deeper into the sphere.
The enthusiasm, Florida has obviously been through a few months ago.
Im excited for it to open for two reasons, one because it's exciting and two once it's open the budget can start going up.
Can you just give us a little.
Greater detail around how much of that is spent or contracted at this point versus how much of that budget may still remain and some variable state.
Sure David.
Just regarding the construction project and in general.
And given the recent announcements, we're continuing to deal with the impacts of inflation as well as global supply pressures chain pressures across many areas of the project.
As a reminder, we've talked to this before we have numerous packages of work that were competitively bid to contractors many months ago with all of the actual costs being determined on a time and materials basis.
On the backend and Thats, how the project is being managed.
At a time and materials basis.
As those materials are delivered as the work gets completed we're continuing to see certain costs go up across across certain work streams.
And again, it's an incredibly complex project, which which has never been done before.
So.
And as we've as we've made progress there are instances, where we've had to refine.
<unk> of our design plans or adjust our overall approach to certain aspects of the construction given its complexity, which also adds cost to it.
In the recent weeks and months and for some of the reasons I've just outlined we've seen higher costs in areas, including the build out of the venues interior spaces.
The installation of the immersive technologies, including the interior display plane as well as the install of the XO sphere and and again. Another reminder, we are building the largest led screen in the world on the exterior it's 580000 square feet.
And the highest resolution led screen in the world on the interior is the size of three football fields.
So in a lot of these first of their kind construction areas. We are we are learning and adjusting as we go.
What I can say on your on your question regarding where we are and where we're headed.
After after a detailed review of our project cost to date and what we estimate through completion.
We adjusted our construction estimates of the $2 175 and at this stage, we have approximately eight to nine months to go on primary construction and and.
We're within the end.
It's within our sites and we're going to continue to manage every aspect of the construction as aggressively as possible.
Thank you that's helpful and I guess as my follow up if I may.
With respect to Tao margins I think those came in just a bit different from what.
What we were looking for can you just talk about some of the puts and takes.
With Tau profitability in <unk>.
In the quarter and what we can expect please.
Sure.
Es margins for this quarter were down year over year and this reflected the impact of increased staffing at the venue.
Coming out of coming out of Covid and the pandemic last year. They are continuing to ramp up their venues. So the increased staffing at the venue and the corporate level.
Business has started to return to normal operations as well as.
Continued impact of inflation on food and beverage costs.
Our team is proactively managing the business to mitigate the impact of inflation in a number of ways, including menu engineering.
Looking forward our current expectation is that from a margin standpoint for Tao, our first quarter will be the toughest year over year comparison.
And as the year progresses, we expect that margin headwind.
CES and I guess I'll just add as we've mentioned before we expect house average long term margins to settle in the mid teens on a percentage basis.
With with some protection potential fluctuation within the quarters.
Perfect. Thank you.
Youre welcome.
Your next question comes from the line of David Karnofsky from Jpmorgan. Your line is open.
Oh, Hey, Thank you I wanted to ask about the Tao hotel in Orlando.
Is this a licensing deal or are you taking a more active management role and then what other opportunities do you see to expand extend the brand to kind of these adjacent hospitality areas.
Sure.
Sure.
First off we're excited about today's announcement and we think this is a natural evolution for <unk> growth strategy.
Thats, how branded hotel in Orlando, It will be a multifaceted property.
Including Italian bistro restaurant rooftop pool experiences various other hospitality spaces and it'll serve as the anchor for <unk>, Oh town West, which is a $1 billion 350 acre mixed use community development in Orlando.
With regard to the terms of the deal some things to note Tao will not be responsible for any of the capital funding, including Preopening expenses.
Tao will operate its flagship restaurant with economics similar to the company's typical managed deals where Tao will receive a share of revenue.
<unk> revenue and profit.
Tom will also manage the food and beverage at the hotel for a share of revenue and profit.
And Tom we will receive a licensing fee in exchange for the use of the Tau brand and related IP.
So this particular hotels expected to open in the calendar 2025.
And then.
Obviously, we're really excited about looking at looking looking forward to would come together over these next few years.
And to your question.
The second part of your question.
While the hotel in Orlando as our only planned hotel concept at this time, we are in I would say very early stage conversations with other developers for additional <unk> branded hotels.
Other markets so that is a possibility.
Okay and then just.
Separately on the sphere wondering if at this point you can maybe talk through how you see the sponsorship model for the venue.
Assuming the LCD display theres, no kind of shortage of inventory to sell.
And maybe you could speak to kind of early demand trends what interest looks like at this point. Thanks.
Sure. Thanks.
Yes.
You are right. The sphere will have a tremendous amount of sponsorship opportunities and inventory capacity just given its physical size scale and the digital XO sphere.
We are already speaking with potential corporate partners.
All major industries, and seeing healthy interest for suites and sponsorship opportunities.
What's even more encouraging is that several of these sphere sponsorship conversations, it's probably not a surprise or with existing major sponsors at MSG entertainment venues. So clearly companies recognize the value of event sponsorship for sphere.
Similar to the garden, the sphere will have a variety of sponsorship tiers.
Ranging from lucrative founding partnerships to official partners all the way to transactional campaigns that will tend to be shorter in duration.
The inventory is meaningful Jud I was just thinking about the brand inclusion opportunities for the largest LCD screen in the world.
And there are a lot more from traditional suites to our our atrium, which is going to be incredible to.
So the immersive gallery spaces.
Yes, we keep saying I'll say it again the XO sphere.
It will ultimately be covered with 580000 square feet, a fully programmable led panel LCD panels.
Which which will be seen by.
Not only the millions of people visit Las Vegas or come to our events, but.
It really is an iconic landmark that offers tremendous opportunities for social content that reaches far beyond Las Vegas.
It'll be a unique and powerful platform for brands and we expect major sponsorship partner agreements to include Exosphere inventory for sure.
I realize some of this is hard to visualize without either having seen the sphere in person.
Or an experienced experiencing it but.
We anticipate strong demand for all of the sponsorship and inventory opportunities and just like our other venues, we will be creative in finding new and impactful inventory to utilize.
We do feel very good about the sponsorship sponsorship opportunities, especially in Vegas, it's the number one destination for entertainment.
And in our opinion sphere will be the number one immersive experience in that city offers.
And companies and brands are going to want to be associated with with this experience.
Okay.
Your next question comes from the line of Devin Briscoe Wil Research Your line is open.
Thanks for the question could you update us on how Youre thinking about the long term return on capital for this year based on the higher budget it'd be great to hear your thoughts on opportunities across revenue streams, given the higher capex.
Any color on costs that are flowing through now.
Long term margin potential would be helpful.
Sure. Thanks.
First we remain confident in MSG sphere in the Vegas that it'll generate substantial revenues NOI and at attractive margins once we open.
We're focused on three key categories for content that will drive.
Hi venue utilization first one being original transactions, which will run multiple times, a day and take full advantage of the venues technologies performances, such as concerts in resident fees marquee sporting events corporate events expose.
We already just talked about.
The opportunities that sphere will provide for companies to showcase their brands the XO sphere.
Premium hospitality spaces in club spaces, obviously will create additional revenue opportunities for us and will remain we remain energized and enthused by the ongoing discussions, we're having with potential partners, including leading filmmakers global artists further for the <unk>.
NCS and potential corporate partners.
We remain on track to open the venue in the second half of calendar 'twenty three.
And now that were within that timeframe, we do expect to start sharing.
More directly positive news on items like original content sponsorships corporate partnerships like the one we announced with Formula one and announcing music residencies at MSG sphere in the near term.
With regard to specific financial guidance that is something that the management team and I continue to think through and evaluate.
But at this time, we don't have anything more to share for this call.
Okay. My second question is related to the busy calendar of events that youre seeing from.
From here is there is still capacity to host more events at the garden and your other venues or is the growth opportunity, primarily going to be driven by pricing power and mix of events going forward.
Sure.
You are right. We're looking forward to what really should be an outstanding bookings year.
Throughout the course of fiscal 'twenty three it's been great. So far.
As we think about growing our bookings business, where we're focused on two areas of increasing utilization and.
And growing per event profitability.
So first on utilization as a reminder, the gardens, obviously home to the Knicks and the Rangers Radio City Music Hall is our only other venue with an anchor tenant which is the Christmas spectacular and which occupies that space for only a couple of months of the year. So our performance venues generally have large a large slate of available data to work from.
We are increasing and we're increasing utilization in several ways.
This includes more recurring programming such as longer residencies and multi night runs like you saw recently with with Harry styles.
We're also exploring new events and additional event categories like shows and expose theatrical opportunities and so on.
We're also creative in the ways that we look to maximize utilization, particularly at the garden, including hosting multiple events.
Then types per day, while always win and of course, we're weighing which events make the most strategic and financial sense for the company and then when it comes to event profitability.
We're focused on continuing to maximize the guest experience at our at our venues from the way customers buy food beverage merchandise.
How we market and process tickets, which helps drive increases in our already high sell through levels, we strive to give our customers the best experience in the industry.
And we believe this approach will help drive improvements in <unk> profitability and continue repeat visitors to our venues.
Hopefully thats helpful.
Yes.
Youre welcome.
Operator, we have time for one last caller.
And your last question comes from the line of Paul Golding from Macquarie. Your line is open.
Thanks, so much.
I wanted to ask maybe not <unk>.
Specific, but tao and the live events.
Part of the business it sounds like at least from the Tau perspective.
There are marginal headwinds in the near term. So I wanted to ask maybe more holistically for the business, how you see labor and F&B.
Inflationary pressure at this point is it transitory.
In the near to medium term or do you see this now is more structural going forward and then I have a quick follow up on sphere.
Sure Paul.
We talked to the Tau pieces as you mentioned.
With respect to the core live entertainment business, we did have some staffing issues coming out of the pandemic.
I really like the rest of the industry.
But those have largely subsided at this point in time I wouldn't say, we're seeing anything structural across our core entertainment business.
Tayo, we already talked to so I don't I don't have a whole lot to add to to the Tau answer.
And really nothing specific or or alarming that we're seeing on our and our live entertainment space at all.
Great and then looking at fear.
Any info you can give around how you plan to market.
The studio or the uniqueness of this format to potential promoters and tours given how specific that is to your venue given the state of the art design. Thanks.
Sure.
We've talked about that the sphere is going to introduce an entirely new entertainment medium.
It'll be the first large scale venue to deliver immersive experiences for up to 20000 people at once with with full of multi sensory technologies.
And this includes the original transactions, which attractions I should say, which would be we're going to run multiple times, a day and drive utilization of the venue as well as concert residencies.
Which will help drive our base of events and to great and to your point to create and produce this content. We are hard at work at our studio in Burbank with creators and artists currently to.
To bring in these immersive experiences to life as sphere.
Studio itself features and ultra high resolution led interior screen, it's a quarter of the scale of the of the full resolution tight.
<unk> that's at the sphere in Vegas.
As well as.
It demonstrates the sphere immersive sound.
And so on at the studio. So we're not only are we energized by the possibilities, but these things are happening right now theres tourists constantly running through not only the studio.
But the sphere in Vegas.
And we're currently working with with obviously artist.
And global performers.
On the development of what we feel is going to be amazing content for the sphere in Vegas.
Great. Thanks.
Youre welcome.
And this ends our question and answer session I will now turn the call back over to Ari Danes for some final closing remarks.
Thank you and thank you all for joining US we'll speak with you on our next earnings call have a good day goodbye.
This concludes today's conference call. Thank you for your participation you may now disconnect.
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Yes.
Okay.
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