Q2 2023 Green Thumb Industries Inc Earnings Call
Ladies and gentlemen, Green Thumbs conference call will begin shortly we thank you for your patience.
[music].
Good afternoon, and welcome to Green thumb second quarter 20, twenty-three earnings conference call.
At this time all participants are in a listen only mode.
Question and answer session will follow the conclusion a formal remarks.
During the question and answer session.
Asked for a limit of one question per person.
As a reminder, alive audio webcast of the call is available on the Investor Relations section of Green Thumbs website, and it will be archived for replay.
I'd like to remind everyone that today's call is being recorded.
I will now turn the call over to Shannon Weaver, Vice President of Communications. Please go ahead.
Thank you Betsy good afternoon, and welcome to a green thumb second quarter of 2023 earnings call I'm here today, with founder and CEO Bad Cold War.
President Anthony George at at and Chief Financial Officer Faulkner.
Today's discussion of responses to questions May include forward looking statements, which are subject to various risks and uncertainties that could cause our actual results to differ material lead from me statements.
Redfin uncertainties are detailed in the earnings press release issued today, along with the reports filed in the United States Securities and Exchange Commission and comedians Securities regulators, including the 2022 annual report filed on for 10-K.
This report along with today's earnings release can be found on any investors section of our website.
Green thumb assumes no obligation to update a revised any forward looking statements to reflect a banker circumstances that may arise. After the date of this call.
The discussion greenbaum will refer to non-GAAP financial measures, including EBITDA and adjusted EBITDA, a reconciliation of non-GAAP financial measures most directly comparable GAAP measures and included in our earnings press release I C C as you're feeling.
Please note all financial information is provided in U S dollars unless otherwise indicated.
Thanks, everyone and now here.
Thank you Sharon.
Good afternoon, everyone and thank you for joining our second quarter of 2023 conference call.
Oh, you off with an overview of our results some observations on the current state of the industry.
Anthony will discuss our operations.
[noise] will dive into the financial.
Then we'll open the call to questions.
Reflecting on the canvas or was treating the economy as a whole not much has changed since our last call inflation continues to debit consumer spending pricing pressures still with us and there has not been any meaningful action on the federal grant.
So do you have any environment, we feel pretty good about our second quarter performance, we posted $252 million in revenue.
He was up slightly from the first quarter and kept us on page to exceed another $1 billion in revenue for the full year of 2023.
Net income was $13 million or five cents per basic and diluted share in the corner.
Oh, just an EBITDA was $76 million or 30% of revenue.
Or the quarter cash flow from operations was $18 billion after paying uncle, Sam $52 million.
<unk> six months cash flow from operations was $93 million up from $40 billion in the comparable six month period of 2022.
This cash flow gives us the confidence to continue to play offense as we ended the quarter with a strong balance sheet and $149 billion in cash.
We believe our cash flow generation, coupled with a strong balance sheet is one of our most significant competitive advantages.
Now expensive capitals, a problem for most industries, but it is especially desi for the Canada the sector, which is blocked from traditional capital sources and saddled with a punitive tax structure.
Green thumb, we have been able to navigate a path to profitability, while remaining physically strong since our founding are intense focus on generating cash and investing in spending it like it's coming from our own pockets, it's been our team's not so secret secret sauce.
This gives us the ability to X two hour long term growth strategy in a patient and deliberate manner. We.
We not only sleep well at night, but we also wake up early excited about the opportunity in front of us.
And there's a lot to be excited about.
This quarter, we opened six do ride stores in New Hope, Minnesota Grove City in Philadelphia, Pennsylvania, Bristol in Danville in Virginia in Las Vegas, Nevada.
Now we are an even better position to expand our brand awareness in these key markets opening new stores. So challenging process with timelines that are hard to predict and we're proud of our team for their tenacity on this front.
We now have a total of 84 locations supported by 18 manufacturer manufacturing facilities and we planned to open several more stores this year.
This is all part of our long term strategy that continues to unfold, which includes building brands that resonate with Americans.
We see these lifestyle aspirational brands as key to our long term growth.
Over the last 12 months, we have made capital investments of approximately 240 million to position ourselves to grow.
All plays out against our original strategy to enter open and scale with disciplined capital allocation.
We are also excited about the July one commencement of adult your sales in Maryland, where we got four dispensaries and a healthy wholesale business.
It's Maryland, followed the pattern of a W sales and other states there should be a nice list in that market.
We have made real progress in the corner and executing our growth strategy and have a long runway of opportunity ahead legal use cannabis as sales in the U S isn't always <unk>.
28 billion dollar industry.
I'm going to an estimated $75 billion over the next decade.
Oh, that's a new record with regulated sales accounting for over $7 billion in the second quarter.
But it's very important to note that that number does not include the sizeable gray market untested unregulated products, such as Delta eight and have derived th see if you can.
Curious what I'm talking about take a walk in lower Manhattan.
Despite that are 15 operating states are among the most attractive in the nation and offer access to 50% of the U S population.
So we believe we are in a terrific position to keep growing profitably and sustainably.
While there are very few sectors without looks as compelling as candidates. There's no denying that the industry is going through growing pains right now.
<unk> continues to recede.
For some time now I stop speculating on what government officials, many of whom have passed the expiration dates will do to lift period of taxes and make some headway unsafe banking practices or let us list on a U S exchange.
[noise] stopped trying to predict what some states, notably New York will get their cannabis program in working order.
All I can say is that we stand on our record for clear not wishful thinking and feel good knowing our business is position to withstand old guard politicians, who have failed to facilitate needed action and candidates for corn.
Above all we never lose sight of our mission to provide consumers with safe high quality products that improve their wellbeing and help them with more comfortably give me this ever chaotic world.
Along the same line, we will never stop advocating for justice for the many people who have suffered a failed war on drugs.
You may not be familiar with the case with Alan Russell.
Mister Russell is currently serving a life sentence with no parole in Mississippi for his possession of 1.5 ounces of cannabis.
That's what amount we sell everyday legally in our stores across the country.
He was just one of the estimated 40000 Americans, who today are incarcerated for cannabis offensive.
Even a state after state legalized the juice.
And the damage that this causes extends far beyond the person in prison affects their families and their communities many of which are black and brown.
So our green thumb team will never stop focusing our efforts on this devastating injustice.
Now I'll turn the call over the Anthony for his thoughts on the second quarter Anthony.
Thanks, then and good afternoon, everyone. Thanks for joining us.
Just heard the company had a respectable print in the second quarter.
Even with continued price compression and persistent inflationary pressure generated over $250 million revenue in approximately 76 million and adjusted EBITDA.
In addition, despite making over $52 million tax payments to our state and federal partners, we generated $18 million cash flow from operations.
Cash flow generation balance sheets stability remain the name of the game for Green thumb.
During the quarter, we invested $64 million across our CPG in retail.
<unk> or year to spend to $129 million.
We anticipate spending an additional $90 million to $100 million capex over the third and fourth quarter.
Highlighting our confidence in our team our brands and investment opportunities.
During the quarter. In addition to CPG facility investments in New York, New Jersey, Minnesota in Virginia.
Six new stores and continued setting the foundation the additional six to eight stores in Nevada, Florida, and New York, We anticipate opening before you're at.
Another recent high life with our banks did campaign.
Sarcastic commemoration of Richard Nixon, signing up and controlled substance is that.
1970.
This act effectively initiated the build worn drugs and decades of farm communities of color.
Our goal for the campaign to educate our patients and customers on the impact the failed war on drugs and the state of cannabis today.
We are proud of the campaign successes or team patients and customers.
Really excited to support that's very important awareness project.
Looking ahead of September on September 9th and 10th across the Street from arrived Suspensory, an underlying Illinois.
Greenbaum will host the mirror one month the line.
First of its kind to day cannabis centric music festival.
We have an incredible lineup that includes Cypress Hill, J Red Steven morally, let us action Bronson and other great artists.
We have a number of attendees package is still remaining for those who want to make history with us.
Our store is just a short ride to work from the O'hare Airport and the <unk>.
<unk> will be something extraordinary.
On our last call I highlighted some of our strategic initiatives for the balance of 2023.
They include driving operating efficiencies proper resource allocation micro and macro and a successful, Maryland adult use launch.
I'm excited to report that the teams work in Maryland is off to a strong start.
And rest assured we are continuing to optimize or opportunity within the market.
On another note we want to call out the increased activity, we're seeing an unregulated cannabis in farmville compliant noncompliant canvas products.
Most within the industry know many of these products lab testing basic standards and utilize questionable inputs.
In addition to pose in consumer safety risk. We're also monitoring the impact these activities could have on future industry growth prospects and subsequent regulatory response.
In conclusion, while we recognize our industry continues to experience regulatory political and industry related headwinds, we remain incredibly bullish on our business and our team's ability to navigate these turbulent waters.
We said before the star of the team is the team and we have a special one.
With that I'll turn the call over to match review our financial results.
Thanks to Anthony and good afternoon, everyone.
We generated over $252 million in revenue in the second quarter of 2023, a 1% decrease compared to that part of your quarter.
Well I'll tell you and it sold increased during the period total revenue declined due to price compression.
Continued unit growth in key markets as well as the revenue generated from six new stores opened in the second quarter helped offset some of the effects of price compression.
Overall retail revenue decreased two per cent per second quarter of 2002.
Second quarter comparable sales decreased three per cent for the second quarter last year, a base of 76 stores.
Consumer package goods gross revenue increased 13% versus the prior year court.
Gross profit for the second quarter was $125.3 million, 49.6% revenue compared to $125.8 million or 49.5% of revenue for the second quarter last year.
The effective price compression was more than offset by cost of insult management and for the county.
Turning to Opex selling general administrative expense for the second quarter was $84 $2 or 33.4% of revenue.
Hard to $63.5 million or 25 per cent revenue last year.
SG&A, excluding depreciation amortization, one time transaction costs.
Stock-based com, which were to refer to a normalized operating costs approximated 57 million compared to $56 million in Q1 $57 million in the second quarter of 2022.
The sequential increase in total expenses, primarily reflected costs associated with opening new stores.
We continued to carefully manage our car is navigate this challenging environment.
The company generated net income $13.4 million or five cents per basic and diluted sharing during them.
This compares with net income for $24 $4 million or 11 cents per basic 10 cents per diluted share last year.
Second quarter last year benefited from an acquisition related non-cash for valley credit, which did not occur in the current period.
Adjusted EBITDA, which excludes non-cash stock based compensation and other non operating costs was $75.8 million 30 per cent of revenue for the quarter as compared to $78.7 million 31 per cent revenue for the second part of last year.
The end of the second quarter of the strong balance sheets, and floating cash $149 million and working capital of $166 million, all paying more than $52 million in tax payments during the quarter.
In summary, we are pleased with our second quarter performance and execution within the current market environment.
We will continue to focus on execution on our stated goals.
Thank you for your support and confidence as we look forward to update in the next quarter.
With that I'll open the call to your questions operator.
We will now begin the question and answer session.
To ask a question you May press star one on your Touchtone phone.
If you're using a speaker phone please pick up your handset before pressing the keys.
Is it any time your question has been addressed and you would like to withdraw your question. Please press start then too.
We ask that you limit yourself to one question.
At this time, we'll paused momentarily to assemble our roster.
The first question today comes from February with Craig Hallum. Please go ahead.
Great. Thank you for taking my question.
My My question is just on the Capex outlook beyond the end of the year here to the extent that you can provide it I know previously you know you mentioned that you you do expect capex to decline in 2024, but just given the sort of I think it was 92 100 million expectation for the second half.
Just any sort of indication you can give us for 2024, albeit early would be great. Thank you.
Eric Great question Anthony here so.
You know what I'm, saying is this obviously, we've we've invested quite a bit and capex over the last 12 months, we've got a healthy kind of Q3 Q for spend ahead of us.
Tough to say, how much where to spend 24, but it goes without saying, it's gonna, we expect to be materially less than this year.
You know, we're we're near the end of our capital cycle.
And you know the reality is will probably have more visibility on that over the coming quarters, we kind of finish up budgeting exercises for off of 2024.
Thank you.
The next question comes from Aaron Grey with a line. Please go ahead.
[noise] Hi, good evening and thank you for the question.
So I just wanted to touch on the wholesale nice to see that growth no sequentially and you over a year there.
Additionally, you can provide maybe geographically on the states that primarily to contribute to the animal style of growth with more broad based and then also at the brand level, whether or not it was more from your premium brands are some of your value oriented brand. Thank you [noise].
[noise] sure and I'll take that question.
And here again.
So let's start with I guess, the second question was related to kind of brands that we're seeing kind of either strength or lack thereof was that it.
Yeah, just on the wholesale growth ledge, what might've Jiminy geographically and then also my branch, but what drove it geographically different states or and different brands, whether it be rhythm and shine or otherwise.
Yeah. So look I mean, one of the things that we've continued to see is a bit of a trade down by the consumer. So that's led to certainly sizeable strength within the <unk> portfolio, but you know across the board, we feel pretty good about kind of all the brand performance across the board in terms of market. You know the soft is really continues to be felt in those more.
Consider experiencing kind of price compression.
Those markets generally have a lot more competition on the wholesale side of the business.
So to call out places, where it continues to be a.
Challenging you've got Nevada got Massachusetts.
Few others, you know place where their strength.
We feel like we're making solid progress and the number of our important kind of east.
Eastern markets P. A new Jersey.
And then obviously with with Maryland, turning off we feel like we've got some opportunity there as well.
[noise] alright, alright, thanks, so much for the color of that I'm talking about.
The next question comes from and to your personal with people. Please go ahead.
[noise] hi, good evening, Thanks for taking my questions on congrats on the on the good quarter here.
Just wondering if you have this.
You can you, let us know what the.
Same store sales growth is if you exclude new Jersey cause it's kind of an outlier since last year Rec launched.
Not sure if you have that but.
Also I was wondering about production expansions that are expected to come online.
Towards the end of this year beginning of 2024.
And a number of states correct me, if I'm wrong, but New York, New Jersey, Minnesota, Virginia.
Could you talk a little bit about how each market is behaving in and if it can support additional supply you know what are you expecting in terms of you know your inventory levels and and.
And what this this additional supplies it comes online.
How do you think the market can react in terms of volume and price. Thanks.
Sure I'll I'll jump on that thanks, Andrew spend appreciate it let's.
Let's see to two things that I don't think of ourselves. So we're not gonna break out you know X New Jersey, what the same store sales to me, but I wouldn't say New Jersey turned on April 21st So.
Most of the second quarter. So that's not a key driver I don't think into the comp.
Especially with how good that market started so I I wouldn't it's not a huge factor, but obviously will see in the third quarter, where it's laughing a full 90 days during the third quarter.
The second part of the Russian canvas Kenna, new supply coming on your right about the timing, which is 2024 in Canada supported in New York, New Jersey, Virginia, Minnesota, and I think it's you know bottom up answer a lot depends on the rules and what's going on and what gets enacted Gwen, but we have a lot of confidence that people across the country want more rhythm flower.
This is a product and a brand that resonates with people. We know that dog walkers is working we need to make more dog-walker, we get questions everyday including a handful today and when can we get dog walkers in New York.
So we know that we've just got to make the right product that we have the right formulations here and we just gotta go execute against our strategy and we have spots in these markets. We look at total size market total population number of stores our stores the adult turn on the burden County.
Why we spend 50 plus million and several of these markets because we should be able to sell that wholesale products. So yes.
We have product turning on again, it's been a bottom up approach pretty crawl walk run so there's nothing monumental or game changing but it's slow methodical goes against the core strategy just as it has always been so we're pumped about what's ahead.
The next question Uhm, Michael Library, what type of pet.
Go ahead.
Thank you have a good afternoon.
Chemical.
Could you just.
Give us the latest.
Look ahead or kind of where we sit now in terms of price compression are you are you seeing licensing other tunnel, but you know how how much.
It varies obviously state to state, but can you point to places where.
Maybe just a little <unk> and give us a sense of where it's.
Is it improving anywhere he gets at least stabilizing and you know just sort of.
I'll walk around for that.
Sure Michael I'll take that so look I'll tell you a high level price compression continues and in many of the markets we operated.
You know I would say that you know in.
The third quarter, it's not as if we saw material slowdown today the markets that have exhibited then the price the price compression that we felt all year.
You know and have we seen a real stabilization. The reality is is no we haven't you.
Now.
We we did start to see some some stabilizing and call it Maryland with the don't use counting.
But across the board I think you know when we look back on 23.
I think one of the themes of the year, it's just gonna be the price compression that we felt.
But generally speaking we haven't we haven't seen the material slowdown and.
But we do continue to see again is it is a trading down by the consumer where you know in terms of the quality of the product they're purchasing.
And buying greater unit side. So you know that's that's been a recurring theme of queue to see if it continues from Q3 and Q4 but you know and that's one of the reasons why we built the business that we have is we know the brand portfolio that allows us to kind of to service kind of all into the market and so that's really how we're reacting to to the <unk>.
This compression that we continue to feel.
Initially there was released in some states.
Scarcity from the limited license.
Environment that that drove supported pricing and drove value.
Historically CPG it's.
Primarily been brand driven.
It's still so early for brands in the category, but but you you you.
I've got the Apple brands.
And put resources behind them right are you seeing.
Some loyalty developing how how does it look as far as kind of evolution of branding in your portfolio.
Yeah, I I think your characterization is correct. It's early stages, we're pleased with where we're at and we look out and played out three to five years and we think we have a chance to really build.
Resonating brands with Americans, who consume this product we understand that experience, we understand the consumer and we're playing the medium long game on that.
And we have tons of great American brands of Great American companies have done it before and it's entirely the exact thesis we've had at the business. We talk to you and everybody about his history doesn't repeat arrived so we can look towards arrive with history to understand how to build quality American companies that okay capital that can survive cycle.
And build brands that resonate with American consumers. So it's early but we're excited about what's going on and it gives us just continued increased confidence, especially going into dicier market should have unregulated you know sloppy regulations or illegal markets like New York.
Okay, great. Thanks, so much.
Sure.
Oh, It's a reminder, me with aspirin limit up one question per person.
Your next question comes from Sunny ran how 'bout, let's be important. Please go ahead.
Thanks for taking my question I, just wanted to get an update on you know the early weeks in Maryland. Some of your peers are.
Sales of tracking at two to two and a half times medical volumes.
I wanted to see if you guys are seeing similar results.
Maryland and in New Orleans.
Sure somebody this is Anthony.
You know look at that as I mentioned in my prepared remarks.
We're off to a we're off to a good start.
Really good about about the execution kind of but really commenced on July one.
Obviously outperformance is.
With what others are kind of indicated.
We have four stores four stores within the state we've got a healthy wholesale business and the reality, though is that we're we're less than 45 days into this thing and it's still very very early so you know as we think about as the as the business of Maryland starts to Normalise dust settles.
And casually ask where consumers are aware that they cannot purchase this product.
You know it really remains to be seen where that where that really settles out, but so far we're encouraged and we're.
We're excited about our position in the market.
Great I'll turn it back.
The next question comes from Bottomley with Kenacort.
Please go ahead.
Yeah. Good evening, everyone. Just wanted to focus my question more on Illinois, and maybe just some of the macro level comments that you were you were you were giving at the beginning of the call about price compression and inflation, how it relates to that whole market, where I know you guys are are have are are competing for the leading sure.
What are you seeing in terms of trends in that market and more specifically on the retail front can you just remind us how many stores have opened in the first six months or I guess first eight months of the year and what your anticipation is for further distribution on the retail side in 2023.
Sure, Matt I will take that I'll take that as well yeah, there's a lot happening in Illinois.
In terms of the number of stores that have opened believe the numbers approximately 20 to 30 up at this point what I'll tell you is that you know that's a much smaller number than anyone would have anticipated you know come August of 2023. So.
So you know the situation. There is you've got you know have a price compression that's happening within the market is additional supplies kind of come on line certainly anticipated greater retail demand.
You know, but what I'll also say is that you know.
What we're seeing in the market.
It it's not as if it's been a stair step it's been kind of a slow and steady in terms of the compression that we've seen so it's allowed us and probably others to kind of just react accordingly to it.
But the reality is the next six months six to nine months, you're probably gonna tell us a lot and it's really going to be driven by the number of stores that are able to open.
For us with our tends to report portfolio.
There has been competition, that's opened up around us it certainly has impacted our retail business and.
And it's something we just continue to watch.
Okay. Thanks for that.
The next question comes from Scott, Firstly with sauce and please go ahead.
Good afternoon, and thanks for the questions I appreciate the color on obviously, the ongoing price compression and kind of around the civilization, but can you focus more on your side on the cost environment and improvements that you can continue to make their the continued flow into the margins.
Let me take you guys are still expected 50.
Three per cent EBITDA margin for but.
Palin cost efficiencies are are you able to.
Drive further full for the model here and then just on top of that and <unk> SG&A. How have we look at that kind of continuing increase as new chores kind of added throughout this I can help you.
Sure Scott I'll take I'll take that one as well.
You know look as as we felt price compression yeah. There's a couple of levers and the business that we have you know I've talked about this on previous calls one of those is is operating efficiency and I'll tell you that you know that's an area that we're very focused on.
And you know the way, we kind of look at it as we look at it on a on a facility by facility basis in a store by store basis.
You know when something we watch very closely we're encouraged by the progress I'll tell you that you know I think we we continue to have plenty of opportunity there, particularly as we continue to grow into the CPG capacity that we've already built.
On the kind of SG&A side, you know I was gonna kick it over to Matt, but I can just like it stands for it.
<unk>.
We've been sitting around and call. It the 50 657 billion normalized operating cost and yes, we open up stores. We're gonna continue to see additional SG&A I mean, there's just there's.
There's really no way around it so one of the things that we're doing is we're constantly looking at in fact, we did yes, the normalized SG&A expenses as a percent of our revenue and that's kind of how we hold ourselves accountable.
And we like where it is in our Goldman our plan is to keep it.
That are around that level on a go forward basis.
I'll just jump in Scott's good question, but zooming out a little let's just look at the whole income statement, you've got gross margin above yesterday, but really below the SG&A I think is a key area, especially in cannabis. He would talk about adjusted EBITDA. It includes a lot of mercury kinds of adjustments, but just below EBITDA. So we're all on the same page and we.
Go through a real basic around here, just a cash flow lesson, but EBITDA minus taxes minus interest because you pay taxes and cash if you pay taxes you pay interest in cash most of it usually and then your Capex and what's left is the cash balance there's really not much else and so for greenbelt most.
Basic back of the envelope with a 300 ish run right just taking this quarter times or take $120 million of taxes that current your cash taxes on the current EBITDA, a pretty simple story minus.
Minus our interest cash payment due annually, which is $17 million just as a reminder, if we have a mortgage on a on a retail property. It shows up in SG&A is ranked if we have a mortgage on a.
Cannabis production facility it'll show up as Cogs and rent. So that's all above the line. However, the interest is not and.
And what's left there from our perspective as you know some number over 150. The number you can do the math yourself and then minus Capex and there's two kinds of Capex is maintenance capex essentially keep the lights on and then grows capex and we've been able to really control that dial and understand our position that cash flow generation. After all of that for US is what puts us in a position to continue to invest with yesterday matinee Anthony.
Done an amazing job, we got it very tight we understand it percentage of revenue Anthony is right, but it is gross profit is the taxes. It's the interest in the Capex also that makes the whole formula at work and that's what gives us a cash producing machine and enterprise here that we're building for the long term on behalf of shareholders I guess, that's pretty excited thanks for the question.
I appreciate it thanks.
The next question comes from my Creggan with Excelsior equity. Please go ahead.
Hi, Thanks for taking my question and that's a pretty good corner can you help us understand or the nature of this 50 565 incremental kind of spending in the second half is it sort of incremental spending versus what was guy who than may or is this a pull forward from 2024, and there's a double standard sort of understand what change purse.
Yeah versus made to to make this incremental investment thanks.
Yes, it's a good question and you're right.
It's a little here a little they're a little bit of everything we were able to see the results of the business with them make decisions of what's going on so we see the $90 million cash flow from operations, which gives us the cash to continue to invest so some of it's discretionary. So it's finishing out we're looking at each project and doing it I do not thinking is Anthony mentioned in one of the other questions. If that's indicative that 24.
He's going to all of a sudden looked like twenty-three.
We continue to sort of double underline that we're at the end of the Capex cycle and that's not an indication of what's happening, it's not even really necessarily a pull forward.
There'll be a couple of things in 2004 at the moment, we have the ability to play a ton of offence and do lots of different things we've talked about.
I already have that cash will be one capex and here. We are at the end to that and start talking about the dead and then three potentially buyback or some advantage for shareholders. So it's really confidence in the operations of the business, finishing out the projects, we have four or five very large scale projects that we wanted a bit of shock and continued retail expansion is.
Making it happen a little bit of Hustler, Maryland to get those stores opened it up and running for July one that we didn't quite know what's going to happen. When we gave that first guidance, but little here a little there is the core answer.
Great. Thanks, a lot as long as the next person.
Thanks, Mike.
This concludes that question and answer session I would like to turn the conference back over to management for any closing remark.
Thanks, everybody for joining us look forward to talking to you again at about 90 days have great Sir Paul.
The contact with that concluded. Thank you for attending today's presentation you may now disconnect.
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