Q2 2023 PRA Group Inc Earnings Call
Good afternoon, and welcome to the PRA group's second quarter 2023 conference call.
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I would now like to turn the conference over to Mr. Macdonald, Vice President Investor Relations for PRA group.
Please go ahead.
Thank you operator, good evening, everyone and thank you for joining US with me today are Vic Atoll, President and Chief Executive Officer, and Pete Graham Executive Vice President and Chief Financial Officer.
We will make forward looking statements during the call, which are based on management's current beliefs projections assumptions and expectations.
We assume no obligation to revise or update these statements.
We caution listeners that these forward looking statements are subject to risks uncertainties assumptions and other factors that could cause our actual results to differ materially from our expectations.
Please refer to the earnings press release, and our SEC filings for a detailed discussion of these factors.
The earnings release, the slide presentation that we will use during today's call and our SEC filings can all be found in the Investor Relations section of our website at Www Dot PRA group Dotcom.
Additionally, a replay of this call will be available shortly after its conclusion and the replay dial in information is included in the earnings press release.
All comparisons mentioned today will be between Q2 2023 in Q2 2022.
Otherwise noted and our Americas results include Australia.
During our call, we will discuss adjusted EBITDA and debt to adjusted EBITDA for the 12 months ended June 30th 2023, and December 31 2022.
Please refer to today's earnings release, and the appendix of the slide presentation used during this call for a reconciliation of the most directly comparable U S. GAAP financial measures to these non-GAAP financial measures and with that I'd now like to turn the call over to Vic a tall, our president and Chief Executive Officer.
Thank you Jim and thank you everyone for joining us this evening.
It's been a pleasure these past few months connecting with many of you at various conferences and meetings. We attended and I have been looking forward to sharing an update on our recent performance and business outlook.
Having completed the first 100 days of my tenure it is appropriate that I spend a few minutes, reflecting on the perspective I have gathered during this period.
When discussing our financial results for the quarter.
My remarks are grouped into five broad themes.
First off people.
It may be viewed as a cliche it will have an incoming CEO extolled the virtues of this team.
But I do so nonetheless, and infant food sincerity based on my assessment of their capabilities and strengths.
Most of you are familiar with a long standing CFO , Pete Graham and the team that he meets.
However, our talent extends beyond Pete to encompass individuals' in every function and geography and across all levels of the organization.
I believe that the intellect.
Main knowledge and pride in their work are second to none.
And I have full confidence in their ability to drive B R. A success.
Next our European business.
This past month I visited our European operations, and not only has the opportunity to connect with our team.
But also engage with banks and top sellers in meaningful conversations about our business.
Europe now represents over 50% of our ERC.
And while the U K remains our largest market presence in the region.
We have established broad diversification across the continent.
Over the years, we have invested considerable effort to build relationships with sellers and other stakeholders.
Along with our focus on enhancing all capabilities such as digital.
These efforts have paid off with broad investment opportunity across the region and a compelling track record on revenue growth and expense efficiency.
Yeah.
Furthermore, we exercised significant restraint in recent years as pricing became irrational in certain markets.
We believe the diversification provided through our European business is a key differentiator for us versus most industry peers.
And we will be looking to build on the success.
While maintaining operational and pricing discipline.
Cook.
The growing portfolio of supply.
Consistent with the messaging from consumer lenders and credit card industry statistics.
We are seeing increased inventory being made available for sale in the U S.
Global portfolio purchases are up 47% for the six first six months of 2023 versus the year ago period.
While we continue to anticipate seeing increased supply.
We don't expect this level of year over year growth to sustain.
Of note within the U S. We are not only benefiting from the increases in market supply, but are also anticipating opportunities to extend the set of seller relationships to supplement baseline trends.
In contrast to recent trends pricing is also improving across all of our markets as we renew forward flows and enter into spot transactions.
We believe we have now entered an inflection point in the cycle that is translating the portfolio is being purchased at higher returns.
For our.
Our U S business.
It is undeniable that it is not performing to our expectations.
Notwithstanding the references we made in previous quarters of our collection shortfalls on recent vintages.
Record on underwriting purchases extends back over two decades and is excellent.
We have however, under invested in the processes and capabilities required to optimize cash generation from the portfolios we own.
Over time this gap has expanded.
And coupled with the lower volume of available supply in recent years.
Contributed to the reduced levels of profitability in this portion of our overall business.
Optimizing our U S business is therefore key to our success both in the long.
And the short term.
I shared a slide similar to this at the William Blair Conference earlier this summer and.
And I now wanted to briefly provide an update on this important initiative.
It is essential that we generate more cash from our existing portfolio.
To accomplish this we are examining our end to end core processes with the goal of enhancing efficiencies driving revenues and optimizing does us.
This work is already underway and as examples we are in advanced discussions with select third parties to expand our outsourcing and offshoring capabilities.
We are also beginning to rationalize the capacity of our U S collection sites with the announced closure of one of our sites last month.
These developments in and of themselves are not yet at a scale to impact the business with us.
But I mentioned them sure as an indication of the speed and Decisiveness and open ended approach we are taking to address the underlying issues.
In parallel we are optimizing a range of customer interactions and revenue generating activities.
Including legal processes.
This brings me to the fifth and final team my opening remarks, which is creating shareholder value.
It is important to note that while the changes and initiatives referred to above all being implemented with urgency.
We anticipate that it will take at least several quarters for that effect to flow through and influenced our results.
Ultimately, we believe the steps we are taking today.
Laying the foundation for a stronger profitable and higher performing PRA.
And with that I'd now like to turn things over to Pete to go through investments and the financial results in more detail.
Thanks Vic.
Looking at our investments this quarter, we purchased $328 million of portfolios.
Which represents a record for a second quarter in company history.
And is the highest quarterly investment since the third quarter of 2021.
Up 42% year over year. This level of investment was driven by building flow volumes in a number of large spot transactions in the U S and Europe .
Importantly, this record level of investment was achieved even as pricing improved and I'll talk more about that in a minute.
Okay.
In the Americas, we invested $184 million.
Which represented a sequential increase from purchases for the fifth consecutive quarter.
The underlying U S market is improving steadily.
Volumes and pricing continued to improve during the quarter as we increased our U S investment level for the third consecutive quarter.
The significant driver of this was the increased number and size of spot transactions, we were able to close during the quarter.
While the U S is predominantly a forward flow market, we experienced a higher proportion of spot transactions than usual in the second quarter.
Historically, we've seen this happen when charge off volume is increasing.
And sellers experienced volumes that exceed committed flows they will bring spot transactions to market.
And our existing Ford flows of fresh paper, we once again experienced a sequential increase in volume from the prior quarter.
Looking at publicly available economic data that we regularly share.
Active credit card balances delinquency rates and charge off rates are all continuing to climb.
And based on this data and our experience we believe that these metrics will trend even higher.
Given our seller interactions and the data sources, we track, we expect increasing supply with pricing and returns continuing to improve as we move through the rest of this year and into 2024.
Yeah.
The European market remains robust and continues to provide healthy investment volumes.
During the quarter, we invested $144 million across eight markets with meaningful purchases in northern Europe demonstrating.
Demonstrating the continued strength and diversity of our European operations.
As a reminder, the second and fourth quarters have historically been our strongest purchasing quarters in Europe .
The rising cost of capital is clearly impacting the market.
Pricing has improved and has been more consistent across markets.
And in contrast to last quarter, when sellers were pulling deals for low pricing.
It appears they're now starting to accept the lower prices.
Some European competitors are continuing to struggle with high debt balances and increased funding costs in.
And our reducing portfolio investment and attempting to sell parts of their book in order to Delever.
As supply builds, especially in the U S. We will continue to practice prudent capital deployment with a firm discipline on pricing.
Moving onto the financials.
Total revenues were $209 million for the quarter.
Total portfolio revenue was $205 million.
The portfolio income of $184 million and changes in expected recoveries of $21 million.
During the quarter, we collected $25 million in excess of our expected recoveries.
Exceeding our expectations on a consolidated level by 6%.
With the Americas over performed by 2%.
In Europe over performing by 11%.
The over performance in Europe was mainly due to larger than expected one time payments and a catch up in legal collections.
The resolution of the court strikes in Spain.
Operating expenses for the second quarter were $164 million.
$11 million decrease driven primarily by lower compensation and employee services.
The lower outside fees and services.
The decrease in compensation and employee services was due to lower compensation accruals and health care expenses compared to the prior year.
After normalizing for recent volatility.
And anticipating an increase in variable costs associated with higher investment levels.
We expect the compensation expense in the third quarter to be in the mid $70 million range.
Our legal collection costs were $22 million for the quarter.
With the year over year increase being driven by a higher volume of accounts placed into the legal channel.
As a reminder, there's a timing lag when we invest in our legal channel.
Typically there is an upfront cost paid to the courts from the lawsuit is filed.
Which was then followed several months later by cash collections starting to build.
We expect legal collection costs for the third quarter to remain consistent with the second quarter.
And approach the mid $20 million range by Q4.
Outside fees and services were down $9 million for the quarter.
Primarily due to the higher corporate legal expenses in the second quarter of last year.
Net interest expense for the second quarter was $43 million, an increase of $11 million, primarily reflecting increased interest rates and higher debt balances.
It should be noted that our net interest expense in the quarter was reduced by $4 million in interest income.
The majority of which came from investments in cash shell to retire our convertible notes on June one, which will not recur in the future.
For the third quarter, we expect our interest expense will approach $50 million.
Our effective tax rate for the quarter was 58%.
With the increase primarily due to the timing of discrete items. However, looking at the full year, we expect an effective tax rate in the mid 20% range.
Net loss attributable to PRA was $4 million for negative 10 cents and diluted earnings per share.
Yeah.
Cash collections for the quarter were $419 million compared to $444 million from the second quarter of 2022.
Lower collections in the Americas were partially offset by higher collections in Europe .
For the six months ended June 30 were 1% above our ERC projections made last December .
With 5% over performance in Europe , and 2% underperformance in the Americas.
For the quarter.
Americas cash collections were $247 million, a decrease of $31 million.
We're $30 million on a currency adjusted basis.
Driven primarily by the impact of lower levels of portfolio purchasing in the U S over the last few years.
Despite this collections in the Americas modestly exceeded our internal expectations for the quarter.
European cash collections for the quarter increased 4% or 5% on a currency adjusted basis.
This represents over performance of approximately 11% compared to our internal expectations.
Our cash efficiency ratio was 61, 2% for the second quarter.
Which is consistent with the prior year period.
The second quarter generally has a higher cash efficiency ratio because of favorable cash collection seasonality in European countries, where we have a lower cost to collect.
We still expect to achieve a cash efficiency ratio approaching 60% on a quarterly run rate basis by the fourth quarter of 2023.
Yeah.
Okay.
E. R. C. At June 30 was $5 $9 billion.
With 54% in Europe and.
36% in the U S.
This represents an increase of more than $200 million compared to the prior quarter as our strong purchasing in the quarter helped us grow ERC.
We expect to collect $1 $5 billion of our ear see balance during the next 12 months.
It's important to note that this number only reflects the amount we expect to collect on our existing portfolio.
That does not include the cash we expect to collect from new purchases made.
Yeah.
Based on the average purchase price multiples. We've recorded in 2023, we would need to invest approximately $843 million globally over the same timeframe.
Replace this runoff and maintain current year C levels.
With the continued build in U S supply and improved pricing, we anticipate we will exceed this level of investment and growth <unk> further as we close this year and move into 2024.
We have a strong and conservative capital structure with ample capacity in the markets, where we invest.
At the end of the quarter, we had $1 4 billion of Undrawn capacity committed under our credit facilities.
$332 million of which was available to borrow after considering borrowing base restrictions.
Additionally, in the last 12 months, we generated $1 billion of adjusted EBITDA.
Now I'll turn things back to there.
Thanks Pete.
Quarter, two was an important and positive step in the right direction as we look to return to profitability and further capitalize on the consumer credit cycle.
I am, especially encouraged to see strong purchasing and UFC growing again, but.
But I also recognize that our work has just begun.
We have plenty of opportunities to build on our strong foundation.
And we remain focused on our strategic objectives and initiatives I shared earlier.
Especially as it relates to optimizing business processes, and our cash generation potential.
The early signs of progress here, and we look forward to driving organic growth stronger returns and increasing shareholder value overtime.
It won't happen overnight and it may not always unfold in a straight line.
But I am more than encouraged by where we are heading and the opportunities that lie ahead.
Thank you again for joining us and for your continued support of PRA.
Later, we are now ready for questions.
We will now begin the question and answer session.
To ask a question you May Press Star then one on your Touchtone phone.
If you are using a speakerphone please pick up your handset before pressing the keys.
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At this time, we will pause momentarily to assemble our roster.
The first question today comes from David Scharf with JMP Securities. Please go ahead.
Hi, good afternoon. Thanks, Thanks for taking my questions.
I'll, let others kind of dig into the numbers say numbers.
Questions about the collection environment.
But I was curious I wanted to ask you to follow up a little bit in a couple of things you mentioned in your opening remarks.
And the first related to expanding seller relationships.
Or are you primarily.
Talking about.
Adding more.
Card issuing banks in the U S or banks in Europe or are you.
For credit card receivables or are you envisioning expanding the number of asset classes.
The PRA is involved in.
At this point in time, David we are focused on our app.
Our core business and with expanding or looking to expand.
Our.
Our market access within our pulp business without expanding into new asset classes.
Got it and within the U S. I know I know, it's been over a decade now since some of the largest card issuers.
Exited the test sale market is in playa by that comment that.
Your understanding is that they may be looking to reenter.
And this is Noah.
My sense is that those that have that are.
<unk> stayed away from the market for a decade.
On unlikely to be reentering the market in the in the near term. That's that's our sense of the market, but it's I'm not I'm not in a position to know what their thoughts might be on that topic.
Got it yes, no our understanding as well so it sounds like your comments about expanding seller relationships relate to two other existing issuers.
And then as a follow up.
Can you just clarify I know you've mentioned it in the past.
I apologize for asking again.
Your references to outsourcing and off shoring.
Or is that a reference to actual collection.
Collection activities working with collection agencies third party agencies or is this a broad commentary about.
No.
Expenses throughout the organization.
It is.
Don't want to get ahead of myself, because we are in discussions with a lot of different bodies, David on different pluses you, but it's a broad commentary as I mentioned and I just wanted to reemphasize, we're looking at and.
End to end processes, and I've defined processes broadly.
To explore what opportunities across the entire envelope there would be for us too.
To leverage capabilities flexibility, including costs right.
Got it.
Great. Thanks very much.
Thank you.
The next question comes from Bob Napoli with William Blair. Please go ahead.
Hi, Thank you good afternoon.
Pete.
So.
I guess.
Yes.
Not to dig into one the numbers.
Just the change in expected recoveries at 2021 pool is like where there's a lot of focus.
Obviously.
Yep that year's underperforming not just for you, but for others as well that maybe more so far for PRA the change and expected to be comprehensive change was a negative $15 million. This quarter a negative 37 last quarter is that pause is it to the point where.
You are turning the corner on that book of business, If you would.
Such that and I think maybe a bigger picture what do you expect.
To be able to return to profitability on a sustained basis.
In the back half of this year.
Yeah, I would say with regard to 2020 one vintage.
We've implemented some additional strategies around the underperformance, we've seen in that vintage, but things like legal will take.
Some period of time before they start to manifest themselves. So I'd say, we're kind of early early in the cycle on on clawing back cash on the 'twenty one vintage.
Yeah.
And on that can you.
Turning to profitability.
Yeah again, we're on a glide path here, we took some pretty significant adjustments to the curves in the first quarter.
Less so this quarter and are well, we'll see where we go from here.
We do our best each quarter to get the curves right.
And.
That's about all I can say at this point in terms of forward looking guidance.
Okay, and then just maybe for Vikram. This is like a big picture question as well what should be the right REIT.
Churn levels for I don't know, if you think about it and return on equity.
You know that over the long term, where should this company be earning money would you want to get into.
I don't I don't believe Bob that we've sort of discussed a shared that information.
With.
With the street rates.
Wanted to be claimed their own on this conversation right.
Clearly clearly, we're not where we need to be when we're not delivering.
Profitability. So that's that's that's my primary focus at this point in time is to get us back to do.
To a profitable situation.
Thank you and maybe just last question you talked about European <unk>.
Competitors looking to sell books, I mean, I would imagine that you are looking at those is there are there opportunities that you expect to execute on in Europe in the back half of this year as it relates to other companies selling their car.
Current portfolios.
Yes that wasn't necessarily intended to signal any pending transactions the playoffs, but just more an indication of stress in the marketplace in Europe .
And that's having more of an impact on you.
Pricing of deals less aggressive behavior by some competitors.
And market pricing.
Adjusting to reflect our increased cost of funds for everybody.
Okay. Thank you.
The next question comes from Mark Hughes Sure. Please go ahead.
Yeah, Thank you and good afternoon.
Yeah.
Does the forward curve assumes some improvement in.
Your U S processes, you need to know.
Some.
Some outsourcing offshoring.
In order to hit the curves or will that be upside.
We're successful.
In terms of the offshoring outsourcing commentary, that's really more costs thing at this point than than our overall cash generation.
We do have.
Some assumption in our curves of the initiatives that we've taken to start.
Recouping value in that that particular vintage occur in the future.
How much was the 11% over performance in Europe can you say how much of that was the court system in Spain and is that kind of a one time thing or is that will that flow through subsequent quarters.
Ah I think largely the Spanish thing was a was a catch up is probably the smaller piece of the over performance versus has some seasonality and one time large payments and.
In the Nordics and in Poland.
Yes.
I think Vic you had alluded to the fact that we're not going to see this level of increase in coming quarters on purchasing.
Would it make sense to hold off and wait till balances.
The supply demand imbalance, because presumably even more favorable in subsequent quarters, but what was the thinking in terms of.
Pushing ahead this quarter when the it sounds like you think things should be getting better.
We're we're evaluate we see a lot of transactions, we're evaluating you know.
Transactions almost on a daily basis with the volume of <unk> now and we're being very disciplined.
About you know what pricing would be acceptable to us to ensure that oh.
It covers all of our costs in the ports.
Potential increases in interest rates et cetera. So we'll keep looking at it we do it just trying to signal in that in that commentary not to not to do the simple math to necessarily assume that we're going to be up.
Around 50% from last year, but time will tell as to exactly where the business ends up for this year.
I'd say also Mark you you've covered us for a long time, you know that.
Pricing and price discovery is important for us. So we will continue to use the same discipline that we always do to to sort of test into.
Pricing is as the market continues to evolve.
We're doing that on on bids.
You know every week every every month as we move through this part of the cycle.
I guess you discovered you're winning more than we might have thought perhaps yeah. We don't we don't win every we don't want to win every bid, but that's that's for certain in this type of an environment.
Yeah, and the final question.
Europe and the core it looks like the.
Collections multiple for the six months.
Down a little bit.
65% I think it was down.
At this point sequentially.
Anything going on there.
It's just mix of.
Different different price price multiple or gross purchase price multiples and <unk>.
Different countries and different cost to collect of the business. There that's a normal sort of dynamic in Europe .
Would you say that pricing is better in <unk> than in <unk>.
Yes.
Okay. Thank you very much.
Yep.
As a reminder, if you would like to ask a question. Please press star one to enter the question queue.
The next question comes from Robert Dodd with Raymond James. Please go ahead.
Hi, everybody.
Only outsourcing and offshoring again, I think you mentioned is more.
That's it from cost and efficiency, but.
Obviously with some of the bank relationships in the past there's been some resistance.
Offshore in particular.
Some relationships that somebody else.
Hi.
The approach.
Any of your bigger clients and had any preliminary discussions about whether they would actually be open to off shoring.
Component that collection process, rather than just the efficiency process.
Is that.
Just not something that.
You got to live up to them.
<unk> discussed with them.
And anything we are doing is you know.
Obviously any action we are taking is.
Completely conform it in conformity with our existing.
Contractual processes and connections with them and I think just to reiterate.
Whole notion of offshoring and outsourcing is not just on collections and boys, but we have enormous amount of.
And as a company right and almost a month of data management that we need to do at every level of our processes from the starting of the relationship to executing it. So we're looking at and as I. Just we're looking at it voice for looking at data. We're looking at all of the Optionality that we have.
And over the next several months, we hope to be able to make.
Decisions around that that would be helpful. But all of it would be in conformity with our contracts and we don't we don't believe at this time that we need to open up conversations with.
Seller relationships to get.
To get.
Any variance from them on that existing protocols.
Got it thank you.
Scribble something that would be on the.
The comp for Q.
Q3 did you say.
Kind of mid seventies.
<unk> could you.
Did I write that down at all and if that is the case can you.
Kind of give us any color on the big driver, obviously mid Seventy's isn't particularly high compared to last year, but it would be a big change from Q2.
Yeah again.
You heard me right I signaled that a mid seventy's for compensation for the third quarter.
Again, where we've had some volatility in that line item or last quarter and this quarter.
Some one time things in terms of timing of different accruals and the like.
And as well as.
Health care.
Our expenses, which can move.
Move around from.
Quarter to quarter based on a claim experience so.
That 70 mid Seventy's is our best our best view of what third quarter is going to look like.
Got it thank you.
Mhm.
Yeah.
The next question comes from Bob Napoli with William Blair. Please go ahead.
Thank you for the follow up just can.
Can you give some color on the mix of forward flows.
It may be it.
Its historical higher prices versus a better pricing.
The higher IRR is that youre getting in today's market.
Okay.
Just broadly.
We as.
As we go through this year.
Because of this the way that forward flows are staggered in terms of their renewal dates we will gradually blend into the more current pricing environment and the older.
Low bids will will roll off.
We've also begun to look at.
Optionality on some of those <unk>.
Existing flows where where returns might not be commensurate with current.
Market pricing and evaluating options for what to do there as well.
Great. Thank.
Thank you and then just from an operating perspective.
I know you've talked about areas of under investment and I know that we've talked about that before it can maybe just give an update on <unk>.
No.
Versus you know not just insourcing outsourcing, but just overall, where the underinvestment has been and where you see the biggest opportunities to make improvements.
Look I think I look at it similar to what we've all experienced as consumers vault, where the where the world has changed over the last 10 or 15 years in terms of the infrastructure the capabilities that exist outside.
How do we bring that level of a pinkie.
Thinking and.
Investment into the company right. So we're looking at our core operating platforms are looking at the supporting infrastructure, we're looking at the efficient management of data.
Looking at.
Policies and procedures that are updated to reflect.
Both customer needs and customer expectations and this is a sort of.
Our broad exercise that.
For a variety of reasons.
The company.
Did not fully do over there over the last several years of running a lot of other things really well like I mentioned on our underwriting processes are terrific right really exceptional.
But there are other things that might have been done in the past it would not and so we're looking at all of that and.
We will over time time will will determine the value that we can create from that but we're encouraged by the early start.
Thank you.
The next question comes from David Scharf with JMP Securities. Please go ahead.
Hi, Thanks for.
Allowing the follow ups.
Taking a step back up I'm wondering you know, let last quarter there seem to be.
More discussion about just the state of the U S consumer the macro backdrop.
A week or tax refund season, and so forth I mean setting aside.
The variance is that forecast.
Or are you are you telegraphing any any different.
Near term outlook on Collectability, and the collection environment or the comments from last quarter pretty much all.
<unk> steady.
No I think.
The.
We had done a lot of.
Communication around our interpretation of the various date.
Data publications by the fed and others just trying to.
Broadcast is kind of where we thought we were in the cycle I think.
That data.
Nothing has really changed there and I think we continue to see the migration in and.
<unk> and charge off metrics.
And on balance that's a good thing for us in terms of <unk>.
Increased supply and more favorable pricing dynamics so the.
The fact that we didn't go into lots of detail on that on the more economic statistics isn't an indicator of anything other than we thought.
We had we had made that point than in prior quarters and didn't need to keep beating that drum.
Got it got it I appreciate it and maybe one last question and this isn't meant to pin you down on any kind of.
Forward guidance, but.
Within the content trying to understand sort of.
The margin structure that ultimately you you hope to achieve with a lot of the cost efficiencies outsourcing rationalization I mean, if we think about you.
Your guidance of <unk>.
Existing the year at about a 60% cash efficiency ratio.
And then looking at the abnormal 2021 you know pandemic stimulus driven 65% ratio is maybe a ceiling.
I mean do you ultimately after all of these operational moves do you think that this is a business that can operate closer to that 65%.
In a normal environment or is this all kind of meant to sort of stabilize things at a predictable 60, 61% level.
No I think our goal is to be 65% and potentially beyond that in years to come.
And I think given the focus that we have on on efficiency and and the impact that some of these.
Opportunities could present for us I think that's that's eminently doable.
Got it.
Helpful. Thanks, Pete.
Okay.
This.
A question and answer session I would like to turn the conference back over to Victor <unk> for any closing remarks.
Thank you everybody for joining us today and really truly appreciate your support of PRA. Thank you.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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