Q1 2023 Emerald Holding Inc Earnings Call

[music].

Okay.

Yeah.

Good morning, and welcome to the Emerald holding Inc. First quarter 2023 earnings conference call.

At this time all lines are in listen only mode.

A presentation, we'll conduct a question and answer session. If at any time. During this call you require immediate assistance. Please press star zero for the operator before we begin let me remind everyone that this call will include certain statements that constitute forward looking statements within the meaning of the private securities.

<unk> Reform Act up 1995.

These include remarks about future expectations beliefs estimates plans and prospects in particular, the company's statements about projected results of 2023 are forward looking statements such statements are subject to a variety of risks uncertainties and other factors that could cause actual results to differ materially.

Really from those indicated.

Implied by such statements such risks and other factors are set forth in the company's most recently filed.

Periodically.

Reports on form.

10-K and form.

10-Q, and subsequent filings.

The company does not undertake any duty.

Any duty to update such forward looking statements.

Additionally, during today's call management will discuss non-GAAP measurements measures, which it believes can be useful in evaluating the company's performance. The presentation of the additional information should not be considered in isolation or as a substitute for results.

<unk> prepared in accordance with U S.

U S. GAAP a reconciliation of these non-GAAP measures to the most comparable GAAP measure can be found in the company's earnings release as a reminder, this conference is being recorded and.

A replay of this call will be available on the investors section of the company website through 11 59 PM Eastern time on May 10, I would now like to turn the call over to Mr. Herve.

<unk>, President and Chief Executive Officer, Sir Please go ahead.

Well, thank you Collin and good morning, everyone. It's great to be with all of you today to discuss our first quarter results I will start with an overview of the trends we're seeing so far this year and then give an update on our growth strategy focused on customer Centricity 365 day engagement and portfolio optimization.

Then our CFO , David <unk> will provide more detail on the financials.

Extremely pleased with Emerald start to the year each quarter, we see more encouraging signs that the post COVID-19 recovery in live events is progressing at a rapid pace, putting us on track for another year of significant revenue and EBITDA growth.

More importantly, this recovery still has plenty of room to play out so we expect to see higher than historical growth into 'twenty 'twenty four and beyond as we benefit from the return of international attendees and improvements in our customers' supply chain.

Lead times in addition to the benefits of our strategic initiatives and investments.

When you look at our business today versus pre Covid days on an apples to apples basis, we are approaching pre pandemic levels of event revenues. However, that's only part of the story the bigger picture is that we've grown emerald meaningfully since 2019, both through strategic investments in our.

Abilities as well as acquisitions that have substantially contributed to our revenue. This means that we're a much larger company than we were pre pandemic with a stronger growth trajectory.

Despite these positive achievements, we don't believe this value is reflected in our stock price today, which is why during the first quarter, we repurchased approximately five 1 million shares or seven 5% of our common stock outstanding.

At these levels, we firmly believe buying back shares is highly attractive vehicle for us to deliver greater per share value to our shareholders.

Over time, we think that the market will recognize the valuation gap between where our business is now.

It was valued pre COVID-19 and where the market is valuing other trade show platforms. We believe the reality is at the trade show industry is stronger than ever evidenced by the record attendance and revenue at many of our shows last year and into the first quarter. The trade show industry has always been a stable.

<unk> growing industry with excellent cash flow generating characteristics and we think our current revenue trajectory combined with the near term margin improvements as we scale will enable the market to begin to see the full value and potential of the business you have already seen signs of this in recent M&A transactions.

Actions within our industry, where peers were acquired for attractive multiples and we believe our shareholders will be rewarded for their patients.

As a reminder, our long term growth plan post full recovery is to deliver run rate organic growth in the mid to high single digits combined with growth from acquisitions in the mid to high single digits contributing to double digit annual revenue growth overall.

In the near term, we expect to see even higher growth rates given the recovery tailwind.

Moving on to our first quarter results. We saw another significant step forward in attendance, which increased 24% year over year as we cycled past the omni kron impacts of the first quarter of 2022 during that same period square footage at our events in the quarter grew eight.

18% and exhibiting companies increased 19%. This led to overall revenue growth of 24% year over year on the M&A fronts, we acquired lodestone and its overland Expo consumer events in Q1, extending our action sports franchise and expanding our <unk>.

Sumer offering in addition to our core <unk> focus.

Given the timing of Lodestone event calendar it generated no revenue for Emerald in the quarter, while we absorbed its run rate overhead costs in our results. Nevertheless, adjusted EBITDA, excluding insurance proceeds grew even faster than revenue at over 42% year over year as we.

<unk>, our existing cost structure to drive margins higher.

Strategically we continue to remain focused on our three pillars of value creation customer Centricity 365 day engagements and portfolio optimization.

And customer Centricity, we're continuing our efforts to enhance the customer experience with a roadmap that calls for reducing friction in our attendee and exhibitor interactions as a result of leveraging data and technology. Our progress on the data front is key to this in addition to our efforts to increase the actual.

And perceived value of emerald's offerings in all of our products across events content and commerce.

The goal is to provide emerald's customers with a clearer picture of the return on investment they received from the marketing dollars that they put to work across Emerald's platform.

This improves our stickiness with customers incentivize them to deploy more marketing dollars with Emerald and ultimately should help drive higher revenue per customer.

Our second pillar 365 day engagement is geared toward providing multiple entry avenues to the engagement customer engagement cycle through trade shows conferences, Webinars media content and our E Commerce platform.

Tradeshows and conferences offer valuable in person meeting.

To make connections build our sales pipeline and stay on the cutting edge of industry changes through media content and Webinars. Our platform allows advertisers to reach our audiences in 20 different industry sectors, where we have events to share knowledge industry innovations and new products outside of the trade.

Environments, our e-commerce platform gives buyers and sellers a technology platform for year round selling.

Our third pillar of value creation is portfolio optimization, which includes both new show launches and acquisitions, our Emerald accelerator division is dedicated to launching new shows in high growth industries, where we believe there is an opportunity for emerald to establish an industry flagship.

Events and scale it up in a cost effective manner.

In September of this year, we will be launching the first edition of casino Sabrosa, Latin food and beverage Expo, serving the BW restaurants grocery and supplier industry within the growing Latin food business segments.

Emerald has also recently entered a partnership with a major U S professional sports League to launch New fan based initiatives as we built on our efforts to expand into business to consumer offerings. Further details will be forthcoming in the weeks and months ahead.

We've also remained active on the acquisition funds acquiring lodestone events in their overland Expo series in January we continue to evaluate a large pool of potential acquisitions within the highly fragmented <unk> events and media industry, leveraging our scale and expertise to compete for deals and <unk>.

Drive returns by implementing go to market best practices and operational efficiencies, while we face an uncertain economic environment. We have seen how trade show industry has been economically resilience over the decades, our shows represent a central elements of customers marketing budgets with the demand.

Answerable return on investments.

To keep delivering substantial year over year revenue and profit growth as we work our way towards surpassing are pre pandemic levels. This combined with our favorable working capital dynamic of our business as we continued to scale up positions us well for powerful free cash flow generation into the future.

<unk> with that let me turn the call over to David Daft.

Thank you have a good morning.

Our first quarter revenue with $122.3 million compared to $98.5 million in the prior year quarter. The increase was primarily due to 17% organic revenue growth as events continuing to rebound.

Organic revenue, which takes into account the impact of acquisitions in scheduling adjustments was $122.1 million for the first quarter 2023, compared to $104 $4 million in the prior year quarter.

First quarter, adjusted EBITDA was $36 $5 million compared to $25.6 million, excluding insurance proceeds in the prior year quarter. The increase in adjusted EBITDA was primarily driven by flow through of organic revenue as we leveraged the fixed costs of running events as well as prior investments.

First quarter free cash flow was $5.2 million compared to $6.1 million, excluding insurance proceeds in the prior year quarter last year's first quarter meaningfully benefited from the ramp up of deposits. Following the pandemic shutdown. Historically Q1, that's been a cash outflow quarter due to the timing of cash collections at the end of the <unk>.

Prior year, an outflow of tables as the seasonally busy Q1 events take place. This year. However, the first quarter was the beneficiary of the delayed collections from the fourth quarter, which we highlighted on the last call. This puts us firmly on track for a full year free cash flow expectations.

Turning to expenses, we continued to effectively manage our cost structure in this inflationary environment first quarter, SG&A was $48.8 million versus $46 $6 million in the prior year quarter, an increase of less than 5%. Despite the three acquisitions, we've closed since that time.

As we outlined on our last call we've made significant improvements to our cost structure at the corporate level, including by rationalizing our real estate footprint in opening an offshore hub in Manila to ramp support for a number of functions, including telemarketing self supporting data management.

As for the balance sheet, we had $217 million of cash and marketable securities as of March 31, 2000, twenty-three versus $239 million as of December 31st 2022 or.

Total liquidity is $327 million, including full availability on our $110 million credit facility.

Quarter and cash balance accounted for the free cash flow I, just discussed offset by the $9.5 million initial consideration paid for the Lodestone acquisition [noise].

And the $16.9 million, we spent the buyback stock in the corner.

As Herve mentioned the Tradeshow industry has historically performed relatively well through economic cycles, given the long lead times in customer deposits for booking shows as.

As markets face widespread uncertainty we are fortunate to be in a beta be segment that is considered essential to companies marketing budgets and where we are making progress on more explicitly outlining the return on investment that Emerald offers to customers.

We believe that as we progress beyond the feds current rate hike cycle.

Some of the economic and market uncertainty may begin to abate and companies will get more comfortable with making larger and longer term dollar commitments to marketing, providing another boost to the ongoing recovery and Y B b events.

Our balance sheet strength and cash flow generation support our ability to opportunistically invest in and grow the business. We plan to continue to balance capital allocation between acquisitions investments in our own business opportunistic share buybacks and debt reduction to execute on opportunities, where we see the grey.

<unk> value for shareholders to that end is herve mentioned in Q1 [noise].

We repurchased 5.1 million shares of common stock at an average price of $3.34 per share or a total cost of approximately $17 million, we have $3 million remaining on our share repurchase authorization.

As of March 31st we had gross debt of $415 million in net debt of $198 million. This leads to a net leverage ratio as defined in our credit agreement of 1.9 times are trailing 12 month consolidated EBITDA of $102.9 million.

Briefly an overview of our capital structure can be found on slide 11 of our earnings presentation.

Factoring in 62.8 million [noise].

Common shares outstanding at March 31, and then an additional 137.5 million common shares represented by the convertible preferred shares as of March 31, or total share count on and as converted basis would be 200.3 million chairs.

Based on yesterday's closing price this equates to a market cap of $729 million.

Adding in our net debt estimated contingent consideration on our balance sheet for acquisitions and deferred tax asset worth approximately 70 $70 million. This leads to an enterprise value of $1.0 billion.

And our full year guidance for 2023, as we stated on our last earnings call. We continue to expect in excess of $400 million in revenue in over $100 million of adjusted EBITDA. This guidance reflects them more than 76% increase over 2022 EBITDA. Excluding insurance proceeds are got into implies.

Adjusted EBITDA margin of approximately 25% and we believe we have considerable runway to continue improving on this number as we work our way back to 35 per cent plus margins. We saw prior to Covid. We also continue to expect free cash flow in 2023 of over $60 million before accounting for the benefits of working capital inflow.

<unk>.

This would bring our net debt to adjusted EBITDA ratio closer to one times, assuming no incremental M&A.

Thank you very much for your time and with that will now open the lines for questions.

Thank you, ladies and gentlemen will now begin the question and answer session. There should you wish to answer a question. Please press star followed by one if you'd like to withdraw your question. Please press star full by two.

Your first question comes from <unk> from Maxim Group Alan Please go ahead.

Yes, Hello, congratulations on strong momentum then well all the actions that you're taking too grow the business.

Okay.

Sure. My my first question, if we'd look at like what you're doing with the accelerator to to add new trade shows and acquisitions Huh, how should we think about like how that will impact seasonality as we go through the year.

Sure So let's start with the acquisitions.

Over the last couple of years, a number of the acquisitions. We've made have events that are in the fourth quarter or at least have their primary revenue generating events in the fourth quarter, which has definitely changed the seasonality of our business and so going forward, we expect four Q to be almost as.

Large is one Q, which has historically been the largest quarter in the company in terms of seasonality well four Q historically was the smallest and so that's quite a big change for us in our seasonality on the new one side, it's a little hard to predict because it it does depend on those lunches as they come up and.

And where are we determine the right time and the calendar is to serve that industry properly I would say that it's likely it'll shift the waiting a little bit more towards Q2 Q3, just from what I see in the launches that we have coming up but they started out very small so wouldn't meaningfully.

Packed the overall seasonality of the company and unless there was a breakaway success in there and we'd update you in the future about that.

That's great and one of your strategic Tillers is.

Customer centricity more engagement could.

Could you go into a little bit more of the strategy of combining load all the different things that you offer and how that's adding should add more value to.

Exhibitors and customers.

Absolutely Allan so around customer Centricity, our focus is to better leverage technology platforms as well as the data assets and data capabilities that we built over the last couple of years through the single data hub that we that we have to really as I mentioned earlier remove the friction that exists and.

Make it so much easier for our customers to for instance get leads so much easier for customers to not only get leads what they're at trade shows but get leads throughout the entire journey as the interact with different emerald products, such as content and and R. E Commerce marketplace.

So our customer was transfer city, while it has a number of different capabilities that also include things like pricing. We wanted to do business on our customers terms offer choice for our customers. So that they can participate and activate in a way that makes sense for them. We we're making some really good progress around what we call the vendor the future shrunk pricing initiative.

<unk> as well as leveraging data and technology to create a significantly enhance experience for the customers.

Alright. Thank you you guys you reiterated your free cash flow guidance for 23 of at least 60 million would you say that's prior to working capital improvements what could you just explain what you mean by the what the working capital improvements could be.

So what in that number we're assuming neutral working capital however, one of the.

Great things about the economic model of the trade show business is our our customers are signing contracts and paying deposits up to a year in advance of an event and we are collecting full payment 30, 60 days or more ahead of the staging of the event and yet we pay our vendors.

Mostly closer to the event or after the event and so uhm as our business grows the increase in deposits, we'd to a larger negative working capital balanced us a cash inflow to the company.

The pandemic reversed all of that which if you look at our financials over 2020 and 2021, they're a significant amount of customer refunds paid that led to a flush out of cash, which we had to plug through financing and helped me through the insurance recoveries, we had but as the business comes back those that deposit balance bill.

Back up again, so so that's what we're referring to it is a little hard to predict the exact timing of all of that which admittedly we tried to do last year and weren't so accurate on it and so we've decided this year will make the neutral assumption and then updated throughout the year, how that's tracking and so in the prepared comments.

I made I talked about how pleased we were with the first quarter working capital swing, where if you look back to 2017 2018 2019 first quarter was typically a very significant outflow of cash from working capital where this year was a much more moderate outflow and.

The business overall is able to generate a nice amount of free cash flow relative to the seasonality of the past.

That's great you also mentioned S. G I only get increasing 5% and you had done some.

<unk> exited some offices and.

Leases and moved into.

Utilizing Manila for for some things could could you go to.

The actions you've done was that all reflected in this quarter or is there more to be expected from that I'm trying to understand as of yesterday run ready to a pretty good one from one to wear and maybe talk a little about.

Kind of what you expect it from the benefit from the lease abandonments and and from your opening operations in Manila. Thank you sure. So so this was all implied in our full year guidance a lot of this took place in the latter part of 2022 the setup.

The facility in Manila was about nine months ago at this point and we've been slowly ramping and we're beginning to accelerate some of the opportunity to leverage that to invest in the business, but doing so at a at a more reasonable cost in terms of real estate in the fourth quarter, we close six offices out of.

Out of 10, and so we only have four remaining physical offices, our workforce is largely remote and in a few a few hybrid folks in the offices that we have and it seems to be working really well for our business you know given our our live events that we run there's plenty of opportunity for us to <unk>.

Get our teams together at the events that we run and we were able to drive some efficiency on that front in terms of SG&A run right throughout the year, there will likely be a small billed as we move through the year based on.

General kind of wage inflation that we're always managing hopefully offset a bit by managing the offshore resource hub as well as continued investment plan that we have in the business around some of our initiatives, but overall, we don't expect a meaningful.

Increase borrowing incremental acquisitions that could change that.

That's great do you do you have the numbers for the exhibitors and the attendees that's.

There were during the quarter.

I don't have that handy, we can follow up with you Island.

Okay, that's fine on some of that.

On the one.

<unk> <unk> <unk>, it's very encouraging to see.

Would there be a time that you would consider kind.

Kind of re re upping it.

The amount that you could continue to do for the buyback.

I think philosophically as a as a use of capital as we indicated in the prepared remarks, we do think share buyback is is a good way at the right price is to create per share value for the remaining shareholders from time to time.

Discussed at the board level.

Uhm I would imagine if the share price stays down around here, we'd probably have that discussion again.

Okay, Great and then my last question would be more just one kind of.

Your trade shows overall I'm, just I mean, it sounds very positive everything that's that's going on.

I'm just trying to add anything else you could add of.

And in terms of the metrics of of for the for the same same.

Apples to apples trade shows of how you're thinking about kind of the benefits from <unk>.

Increase exhibitors relative to maybe and and attendees relative to.

Potential pricing.

As we discussed in the past you know one of the initiatives that.

We've taken and have benefited from is more focused and putting more science around pricing our products and services for the value that they delivered.

And so a coupla years ago, we centralize pricing into a dedicated department here it used to be decentralized within our brands, we hired pricing experts in order to build models and help us better understand where the opportunity was frankly upward down and optimizing price.

With that we have been able to improve our yields per square foot of our tradeshow space pricing.

This year, we would expect to be up kind of high single digits relative to 2022, and 2022 was up and the low double digits from 2019 from pre pandemic and so if you do the math.

20 per cent plus up in pricing versus four or five years ago, and so there's a tremendous amount of leverage here as net square footage.

Ramps back up in our events to drive meaningfully higher revenue, we believe than what we had in 2019.

And that just add is tied to your earlier comment of customers <unk> Centricity the way that we were able to and.

And the reason, we're able to increase pricing is because we're maniacally focus on adding customer value and so through the initiatives that we've put in place or on leveraging our data through the technology and because we are able to deliver more leads to customers more qualified leads to customers match the customers more intelligently.

<unk> and more frequently driving that level of value allows us the opportunity to to get compensated for the value that we're creating for our customers.

Okay. That's great. One one other question could you maybe highlight for for for two Q.

Some of the trade shows coming up and kind of.

Your strategy of like kind of a building scale uncertain verticals and how how we can look look for what what the opportunities are there.

Thank you so much and congrats on the great results.

<unk> so.

So our our some of the larger events in the second quarter, our hospitality design, which is actually taking place right now in Las Vegas.

Couture, which is a luxury jewelry event in Las Vegas later in the quarter and I see F F, which is a furniture and design show here in New York as well as outdoor retailer in June in Salt Lake City are full van calendar is on our website. So you can see.

See you know every single.

One of our 100 3000, fortyish events and when they are throughout the year up there.

Okay. That's great. Thank you so much.

Thank you.

Your next question comes from Burton Crockett from Rosenblatt Barton. Please go ahead.

Okay great.

It's I'm very interested in what the how to think about kind of the the unreached potential revenues at this point.

You know tied to some metrics. So you gave us 20 per cent up in pricing versus four to five years ago.

How 'bout shopping square footage are you versus four to five years ago with the acquisitions, you've done what you're saying.

Well because of the impact of the pandemic and the <unk> and the length of time, it's taken for things to fully recover we're behind on square footage versus what we were.

Before I'd say I'm, an apples to apples basis.

You know for this year, we're looking at.

70, 580% of square footage volume those 2019 implied in our numbers. So there's still a ways to go in and it's just as a reminder, I know we've talked about this for a few earnings calls, but they're still they're still are lingering impact of the pandemic.

On our business international travel for business purposes does not fully back uhm.

Recall only last summer cause the U S really we open to travelers only at the end of the year of the China. We open from its Lockdowns Uhm. There are lingering impacts of that there is still a massive delay in getting visas to come to the United States and we're hearing stories of customers who.

Can't get a visa appointment for over a year.

During the pandemic the state department cut back on employees and they're having trouble ramping backed up to service the volume of people, who want to come here and so it's really hard to get someone to commit to buying a booth at a trade show if they don't know if they can even get here and so.

That is impacting us supply chain issues, while getting better continue to impact some industries. Some of the manufacturing base industries. We serve if they don't know if they can get product to market. So there are differing for another year that are attendant had a trade show and so those things we expect will play out over the next one to two years.

And help us get back towards the pre pandemic square footage and when it does with our efforts around pricing to value and driving incremental value to our customers.

We're pretty excited about what that could mean for the revenue growth of this company.

Okay I appreciate the answer and and I appreciate that the way. It first the question Uhm wasn't exactly what I was trying to get to you, but you know I think what you. What you said that was very helpful. But what I'm trying to get you is with the acquisitions what is.

Your square footage potential now versus pre pandemic.

<unk> has the potential you know 10 20 per cent, how would you kind of.

How would you.

Assess that.

Give me one second I'm doing some math in my head.

Okay, I'd say, it's an incremental.

10% to 12%.

Of potential NSF.

Okay.

Right now you know, you're you're kind of that pre pandemic and revenue levels, even with these headwinds what can you quantify for us a little bit.

How much down or you and exhibitors from China now versus pre pandemic, where are we now versus not based on what you're saying.

So in 2022, it was essentially down 100 per cent because none came.

In 2021, we're starting to see a trickle I'd say, we're still down 80% sorry 2023.

Yeah, sorry about that I I think we're still down at least 80% on on China and Uhm.

<unk> probably 50.

<unk> 50 ish percent overall in international.

And what would you say pre pandemic was China and international as a percent of your exhibitor base.

International was about 10% of our of our business pre pandemic.

One other thing that I'd like to add around around that and David mentioned that the visa processing times and other challenges that we've had in bringing back international. The reality is also we haven't had a focus on international sales. So just in the last <unk>.

Less than a year I would say nine months or so we've built an international sales team. So we now have dedicated resources inside of Emerald that are <unk> hunting international opportunities working directly with customers, but also working with agents.

Cross you know a dozen countries around the world to really build a very very targeted strategy in an initiative around driving international so that the combination and that's why we're bullish on the return of international the combination of the post pandemic recovery and easing of visa <unk>.

Passing an international borders opening <unk>.

Plus our own efforts and initiatives to drive international sales, we'll make international a bigger part of our diet.

In the future than it was even pre pandemic.

Okay. Thank you herve.

You know I I was curious you know talking about China is China.

Give us some sense of how large that wasn't in the international mix.

So.

It is not as simple answer <unk>, well, there's a simple entering theirs or not so simple answer the simple answer as in in 2019. It was 3% to 4% of revenue. The the not so simple answer was uhm it used to be more but Ah during the Trump administration with the trade War with China. There was a there was a hit too Chinese.

Business is coming to the U S and so there was a hidden 18 19 from those policies them more protectionist trade policies under the Trump administration that we we believe.

And this is under the current administration.

We could potentially see a bounce back beyond that that three or 4% based on.

Based on those policies so.

I didn't really say that so well, but hopefully you get the gist of it.

Okay.

And then you know Herve you you kind of.

Cheese. This thing that sounds very interesting about pro sports League and consumer facing effort that we're going to get more info on later.

So you know maybe I just have to just sit with what you said, but is there any.

Then you can add to that you know why why strategically is consumer facing you know a fit for you guys and anything else you can say, you're hopeless kind of get prepared for this more information to come on this opportunity.

Of course, I can add a little bit more and what I'd like to share is more strategically why consumers importance for two reasons, one and very importantly, it is part of our revenue diversification strategy. So we're diversifying in high growth sectors, but we also believe that there is an opportunity to diversify and the types of business that we're in and be to see <unk>.

Is one segment that we were not in that we believe will drive significant growth for US. We are very focused on in sports and sports related categories sports culture and in related fields, and we think they are underserved or not well served in that we can play a role there.

The second reason is that as you know many companies have developed of late business to consumer direct strategies. So while we want to continue to serve them in a business to business environment. They're also looking for ways to talk to consumers directly and to market and target consumers directly so for us it's so.

Way to continue to serve our customers were really focused on on customer centricity on doing the things that makes sense for our customers on serving our customers on being where they are in on it continuously providing new products new offerings that make us even more relevant to the customer. So it's in the live events business, but also in the content business and and the commerce business.

As in terms of the specific agreement that we signed I'm not at Liberty to share more today, but we're working very closely.

Closely with the sports League and and promised to announce things in the weeks ahead.

Okay. That's all very helpful. Thank you guys very much I appreciate it.

Thank you <unk>.

There are no further questions at this time I'll turn it back for closing remarks.

Very very good call and thank you all very much for joining us today as I mentioned I'm extremely pleased with Emerald started the year, our continued quarter over quarter improvement putting us on track for another year of significant revenue and EBITDA growth. Thank you very much for your participation and engagement today and look forward.

Speaking to next quarter take care.

Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines.