Q2 2023 Boxlight Corporation Earnings Call
Ladies and gentlemen, thank you for your patience This conference will begin momentarily.
Once again, thank you for your patience on this conference will begin momentarily.
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Sure.
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Thank you.
Welcome to the box late second quarter 2023 earnings conference call.
By now everyone should have access to the press release issued this afternoon.
This call is being webcast and is available for replay.
Remarks today will include statements that are considered forward looking within the meanings of securities laws.
Including forward looking statements about future results of operations business strategies and plans.
Customer relationships market trends and potential growth opportunities. In addition management may make additional forward looking statements in response to your questions.
Forward looking statements are based on management's current knowledge and expectations as of today and are subject to certain risks and uncertainties and may cause the actual results to differ materially from the forward looking statements.
A detailed discussion of such risks and uncertainties are contained in the company's most recent Form 10-K Form 10-Q, and other reports filed with the SEC.
The company undertakes no obligation to update any forward looking statements.
On this call management will refer to non-GAAP measures that when used in combination with GAAP results provide additional analytical tools to understand the company's operations the.
The company has provided reconciliations to the most directly comparable GAAP financial measures in the earnings press release.
It will be posted on the Investor Relations section of the Companys website, a box like dotcom.
With that I'll hand, the call over to <unk>, Chairman and Chief Executive Officer, Michael Pope.
Hello, everyone and thank you for joining our Q2 earnings call. After my remarks, you will also hear from Mark <unk>, Our President and Greg Wiggins, Our Chief Financial Officer.
For the second quarter, we delivered $47 million in revenue $18 million in gross profit and $5 $4 million and adjusted EBITDA.
With softer demand across the industry, our revenues declined by 21% over Q2, 2022, However, our gross profit improved by 6% and adjusted EBITDA grew by 4% our strong profitability was largely a result of our record gross profit margin.
For the second quarter, we reported 38% and gross margin an increase of 970 basis points over Q2 2022.
Our balance sheet also improved during the quarter as of June 30, we reported $65 million in working capital, including $60 million in cash and $38 million in inventory.
Our debt balance at quarter end was $52 million.
Subsequent to quarter end, we paid down our debt facility by an additional 3 million, resulting in a current debt balance of approximately $49 million.
We are revising our revenue guidance for the second half of 2023, and now expect to deliver $60 million for the FERC for the third quarter and $110 million in revenue for the second half of the year.
Despite the lower revenue guidance, we expect adjusted EBITDA for the second half of 2023 to be in line with 2022.
We continue to innovate and expand our product line and have recently introduced several new solutions, including our my bought recruit robot with a large format display my front row apps or interactive displays power line and low voltage easy to install power supply and Google E D.
Interactive panels bundle with training and support.
U S education, our professional development Division earned the education services partner specialization and Google Cloud partner advantage and will be bundling, Google training with our Google E D. L. A interactive panels.
We are committed to both the education and enterprise verticals and serve both markets with the most comprehensive integrated solution suite available complete with hardware software and service components.
We're seeing a substantial increase in industry recognition for our innovation and market leading solutions during the second quarter. The annual Ed Tech Breakthrough awards recognized our front row attention solution as the best technology solution for students safety student safety is an area of significant concern in our schools and one where we can add value.
Pension is an integrated solution that combines our front row conductor Campuswide bells, paging, Entercom and emergency communication platform with clever alive, our cloud management platform, providing a comprehensive audio visual messaging and alerting system with attention administrators can broadcast.
Simultaneous audio and video communication are crossing the entire campus, including in the event of an emergency.
In 2022 and took break you also recognize box light as the overall AD Tech company of the year.
Our menu and clever test brands received seven best of show Awards at Info Com 2023 from three different journals, Avi technology digital signage and tech and learning for our clever alive digital signage platform clever hub wireless presentation system clever touch <unk> pro to interactive displays and then.
Non interactive displays.
<unk> was also honored with five S. D lives best of show awards by check and learning recognizing the excellence of our innovation solutions for many of wall, maybe you would yes impact Lux clever lives and Lynx whiteboard.
Although customer demand has slowed in recent quarters. We are now seeing growth in our sales pipeline and market data suggest the industry will rebound by end of year. We are optimistic that we will return to meaningful revenue growth in 2024.
We are better positioned as a company today than ever before with our expanded solution suite global sales channel and talented employees over the next several quarters, we will deliver growth as industry demand increases and through capturing meaningful market share from our competitors with that I will now turn the time over to our president Mark Starkey.
Thank you Michael and good evening from here in Europe as I mentioned on our last earnings call. We are seeing the world to alumina to normality with supply chains restored.
As a result, we continue to see slower order intake and revenues as end users and partners normalized inventory levels.
Our expectation is that during Q3, we will likely see this rebalancing process completes and order intake will return to growth mode in the third quarter with revenue lagging by a quarter or two.
The good news here is that we believe we have exited the pandemic with a much stronger and healthier business with substantially higher profit margins and significant developments in our product portfolio, particularly with regards to the integration of our audio solutions into our interactive panels.
In terms of Q2 order intake was $51 $2 million down 77% year on year with 54% being derived from the U S 41% from EMEA.
Central Asia Pac.
Interestingly, despite order intake being down 37%.
Market shifts the interactive displays remains relatively consistent with our EMEA market share increasing marginally from quad with Bud light.
And our U S market share increasing from five 8%.
Six 4% during a 12.
According to data from future source.
Bottom line is that we continue to make modest gains in market share. Despite the significant drop in order intake and revenues across the periods.
Some of our key orders in the U S included $7 $2 million from Blue $6 $7 million from <unk> U S distribution partner.
$2.8 million from data protections in Texas, and $1 $3 million from digital age technologies.
Overseas, we have some extra orders, including $2 $6 billion in ASI in Australia.
We think there is some kind of illuminate a potluck plus week.
Bye bye.
Basically in the UK to name a few.
Our new generation of Google accredited screens will start shipping this quarter and orders have already exceeded expectations.
We've had some great wins in Germany, where <unk> been officially awarded tender for 2600, <unk> lock screens, including hubs.
This is one of the first large scale deployment of the new Google search blood screening in Europe .
In the U K clearly touch one the Welsh TPS tender with Oems for approximately 3000 screens to be deployed over the next 12 months.
In the U S. We had some fantastic audio wins in Texas alone, we booked more than $1 $7 million of audio deals featuring easy room solution working closely with our partner Sirona consulting.
We had a fantastic weighted 100 bps School district in Washington State with our partner ICT we.
We also received orders for our Google search, but Eli panels with various partners, including data protections and early orders for our new digital signage displays the DS series from various partners, including <unk>.
Students safety continues to be a huge issue, particularly in the U S. Our attention solution, which integrates our preliminary campus solution without <unk> and <unk> panels is a game changer and.
And is the first student based audio solution capable of this level of integration.
And officials, who both interactive and low touch panels.
Continuously across the campus.
The solution is gaining traction and we hope to announce some significant wins for attention in the next quarterly call.
In summary, Q2 order intake and revenues were down but profits.
Profitability in terms of gross profit percentage of adjusted EBITDA continues to improve.
Our expectation is that we will return to growth in order intake during Q3 and revenue growth in Q4 as there remains significant funds available education establishments to invest in technology.
With that I'll now turn the call over to our CFO Greg Williams.
Thanks, Mark and good afternoon, everyone I will now review our second quarter results.
Taking a closer look at our sales break out for the year EMEA revenues totaled $36 6 million or 41% of our total revenues America's revenues totaled $48 8 million or 54% of our total revenues while revenues from other markets totaled $2 8 million or 5% of our total revenues.
Our top 10 customers represented approximately 41% of total sales with the single largest customer at approximately 15% and our based across a number of markets, namely the U S U K and other European countries.
<unk>, 60% of total sales are covered by the top 20 customers.
Hardware comprised the largest proportion of total revenues at approximately 92% of which approximately 69% related to our flat panel displays with the balance related to classroom audio solutions and device accessories.
The balance of our total revenues are comprised of software professional services and stem solutions.
Gross profit for the three months ended June 32023 was $17 8 million as compared to $16 8 million for the three months ended June 32022.
Gross profit margin for Q2, 2023 was 37, 9%, which is an increase of 970 basis points over the comparable 2022 quarter.
Gross profit margin adjusted for the net effect of acquisition related purchase accounting was 39, 1% as compared to 32% as adjusted for the three months ended June 32022.
The improvement in gross profit margin in Q2 2023 compared to the prior year quarter is primarily due to lower manufacturing costs and continued reductions in trade costs over the prior year period.
Total operating expenses for Q2, 2023 decreased slightly to $15 8 million compared to 16.0 a million in Q2 2022.
Other expense for the three months ended June 32023 was a net expense of $2 6 million as compared to net expense 0.8 million for the three months ended June 32020 to the.
The increase in other expense was primarily due to gains recognized from the change in fair value of derivative liabilities of 184000 in Q2 2023 compared to gains of $1 5 million in the prior year quarter, coupled with an increase in interest expense of approximately 0.3 million quarter over quarter.
The company reported a net loss of 811000 for three months ended June 32023, as compared to net income of 26000 for the three months ended June 32022.
Net loss attributable to common shareholders was approximately $1 1 million and <unk> 3 million for Q2, 2023, and 2022, respectively. After deducting the fixed dividends two series D preferred shareholders of 317000 in both 2023 and 2022.
Total comprehensive income for the three months ended June 32023 was <unk> 9 million compared to total comprehensive loss of $4 6 million for the three months ended June 32022, reflecting the effect of foreign currency translation adjustments on consolidation with the net effect in the quarter of approximately $1 7 million gain.
And $4 6 million loss for the three months ended June 32023, and 2022, respectively.
EPS loss per basic and diluted share was <unk> 12 cents for Q2 2023 enforcement for Q2 2022.
EBITDA for the quarter ended June 32023 was $4 5 million as compared to $4 8 million EBITDA for the quarter ended June 32022.
Adjusted EBITDA for Q2, 2023 was $5 4 million as compared to $5 2 million for Q2 2022.
Adjustments to EBITDA include stock based compensation expense gains losses from the re measurement of derivative liabilities gains losses recognized upon the settlement of certain debt instruments and the effects of purchase accounting adjustments in connection with recent acquisitions.
EBITDA for the six months ended June 32023, with $6 4 million as compared to $4 4 million for the six months ended June 32022.
Adjusted EBITDA for the six months ended June 32023 was $8 7 million as compared to $6 4 million for the six months ended June 32022.
Turning to the balance sheet at June 32023 box light had $15 6 million in cash $64 8 million and working capital $37 8 million in inventory $182 3 million in total assets $47 2 million in debt net of debt issuance costs of $4 5 million.
And $50 9 million in stockholders equity.
On June 14th 2023, we completed our eight for one reverse stock split, which reduced our class a common shares authorized to $815 75 million and class a common shares outstanding to approximately $9 5 million shares.
To maintain compliance with the $1 minimum purchase requirement by NASDAQ.
At June 32023 box light had $9 5 million common shares issued and outstanding and $3 1 million preferred shares issued in outstanding we continue to strategically review, our capital structure and use of free cash, including but not limited to paying down debt executing on our share repurchase program and finding more attractive financing.
Arrangements to replace our current facilities, we believe that cash flow from operations will continue to support our ongoing operations without the need for additional equity or debt financing with that we'll open up the call for questions.
Okay.
Thank you at this time, we will be conducting a question and answer session.
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One moment, please while we poll for questions.
Yeah.
Thank you.
Our first question is coming from Brian Kingston singer with Alliance Global Partners. Your line is life.
Hi, Good evening guys. Thanks for taking my questions and solid gross margin and EBITDA.
My question is after the solid EBITDA results during the first six months, you've generated roughly 8 million plus or minus.
What are the puts and takes that resulted in that six month timeframe of having $3 million more of debt and about the same cash over that time, almost 20 million less of inventory I'm just curious what when we can expect to see greater cash conversion from these results.
Yeah. So this is this is Greg. Thanks for the question. So you know I think some of the some of what you see in the first six months of the year is is timing related so typically from a cash perspective, the company sees a greater amount of cash rolling in the second half of the year as we get past our busier.
Months of the year Collyn that Q2, Q3 time frame so as those sales.
The cash comes in related to those are typically see a lot more cash inflow in the second half of the year are early in the year call. It in the late Q1 early Q2 and frame is seasonally our lower cash months of the year as we are coming off of course.
Lower typically lower.
Lower quarters from a sales perspective, but also ramping up for four inventory for the busier summer months. So that is by and large as is typically where you see a lot of the cash fluctuations come in now with respect to inventory specifically in our levels are.
You say that you know our inventory levels did decrease significantly even from year end and that's really due to a couple of factors one it's.
It's really maintaining optimal inventory levels are consistent with the sales that we were seeing you know as the year progressed, which were a little lower than they were in the prior year, but also optimizing our inventory levels. Following a you know kind of the supply chain.
Issues that were that were had in the immediate aftermath. Following the pandemic. So you know as as there were delays in the you know in the past in the supply chain. You know there was more of a you know more of that demand too to want to increase you know and have appropriate inventory levels to meet sales as they were generated but as we've seen a lot of that subside.
And then again normalizing.
Normalizing our inventory you know to kind of.
Mirrored our current sales demands that's kind of a roots, reflecting the inventory decrease that you're seeing.
Hey, Brian I would just add I would add one quick thing if youre looking at cash and Youre looking inventory, but really you'll see working capital improve right working capital at quarter end was 65 million do you have to look at the rest of kind of current assets current liabilities and one item. For example, if you look at accounts payable from December 31 22.
<unk> was $37 million versus at quarter end June 30 was 21 million right. So if you look I think you're better off rather than just looking at you know cherry picking cash and inventory. For example, you have to look at that whole working capital bucket, because it's all interrelated AR AP inventory cash all interrelated.
So assuming a to your comments on the second half of the year cash flow is better.
Or are there any restrictions from you paying down debt companies micro caps right now with lots of debt clearly aren't.
Instead of having any meaningful valuation of our equity is that something that is a high priority for you.
Yes.
Brian .
I was just gonna make a quick comment.
So we paid down 3 million post quarter end right. So we paid down another 3 million of our debt and so we're moving in the right direction. Currently our current facility amortize, 5% down for a year or so at a minimum we're paying just that that regular debt amortization print amortization of 5% per year, but that's absolutely something we're looking at but.
I would point out one additional thing in addition to the debt going down, but all our profitability is going up and so you know that ratio is quite important and if you look at our debt leverage our EBITDA.
You know debt to EBITDA ratio, that's been improving pretty dramatically with a quarter end, we're about $2 four.
Versus we were almost four if you just go back a couple of quarters and <unk> and we think that will improve as the debt goes down but also as profitability increases.
Absolutely also are more property, even if it were a smaller firm and then last quarter you talked about year end budget flushes debut comprehensive orders would be up year over year in the second half of the year. This gene how orders and revenue played out during the second quarter, giving you slightly less confidence in order growth and that it will recover in the second half of the year.
And then maybe you can help us understand how things had begun to trend in July and August .
Do you want to start maybe I'll say a couple of things.
Yeah, Let me start you can jump in and out of more color. Yes. So first off clearly order intake lagged quite a bit more than we expected starting with the second half of last year and so a lagging orders in the second half of last year resulted in lower revenue. Both you know say Q3 Q4, but also rolling into Q1 Q2.
But the reason we're optimistic for the future. There's a couple of things that make us optimistic.
The first is that we're seeing our internal pipeline grow and of course that that improves your optimism, but also we're seeing the order intake ramp we're starting to get more and more orders and we're seeing that now that revenue doesn't show up until later right. Once we receive the orders, but we believe you know based on what we're seeing now the Q3, we will see a growth in order intake.
As Mark shared in his part of the beginning of the earnings call. So expect order intake increase Q3, which will result in we think growth in Q4, leading us into next year, but beyond just our internal metrics. We're looking at you know also we get external data and that includes that that's included from industry.
Data, which industry data is showing that they think that there is a bounce back and we're going to see growth.
End of this year into next year, but then also talking to our large resellers, which many of which are much larger than we are they're saying the same thing where they're seeing pipeline growth order intake growth in our large manufacturers, who supply us and potentially supply others in this space, they're saying the same thing so I think across the board.
And what we're seeing internally also were hearing about externally does support that we're gonna start to see that and we're seeing the beginnings of that internally right now.
Thank you two more questions and then I'll get back in the queue with more first the demand environment can you speak to them.
Forward looking on U S versus Europe , which do you see driving that or grows over the next six months is it a clear cut winter one over the other.
That's a very good question actually Brian It's Barry.
Hard to say I think typically we've you know we've.
We've historically seen some really good growth in the U S. But there's some big tenders outlet as well in the next six months in Europe , particularly in Spain, and in Germany and parts of Eastern Europe . So I don't think it's click up it's all coming from the U S. So it's all coming from EMEA.
I think it depends on the specifics.
Well, we just recently won a very large deal in the U S and a very large deal in EMEA. So that's that kind of balance each other out so.
So overall I'd say, it's a good mix.
Great last question for me.
The gross margin.
You know I've been covering you for a long time doing.
You've done a great job of getting where it is there's no doubt.
Last quarter, you talked about some kind of pricing pressures long term can you help with near term expectations for the next 12 to 18 months versus what you think sustainable long term can you sustain these for the next several quarters before pricing pressure eat sooner or do you think that it is not feasible.
Yeah.
Yeah, I think that I mean 12 to 18 months is it's hard to say looking out that far I do think we're going to see some erosion of gross profit margin definitely over 12 to 18 months I think we have a couple of quarters of holding it relatively steady we may see it go down a couple of points, especially if we win some of these larger tenders generally the larger tender.
There are a lot more price competitive and that for us to win those tenders and in large quantities and for us to win those tenders, we have to come down on pricing. So if we're successful on some of these large tenders both in the U S and internationally that will erode the margin itself. So I think we were forecasting out a couple of quarters. We think we may lose a couple of percentage points, but.
If you're going out much further than that you know I do think that longer term on our core solutions, we are going to erode back down to around 30 points is what we would've expected. If you went back a few quarters, we thought we'd be around three points a day and we benefited from a lot of different factors, but I think that is closer to a run rate with our core products.
Today that we're selling but we've talked about in the past and we'll continue to talk about it that long term, we think that that gross profit margin can improve as we sell high margin products, which were you know we're working on and we're pushing they make some I'll make up a smaller percentage of our total business today, but we think out a couple of years those those other solutions that are high.
Margin, including software and professional services and some of the accessories, we show that our high margin extend solutions as we do better with those solutions.
Gonna see the margin potentially start to creep up and then the other thing we've talked about which will continue to talk about it is the enterprise vertical the enterprise market is less price sensitive and that is higher margin and today, it's a small piece of our business less than 5%, but we think in the future. It could be much more substantial we've been investing in enterprise vertical and that's going to allow us to.
To be able to improve that gross profit margins. So again I think in short you know over the next couple of quarters, we're going to probably erode a couple of points, we will see and then looking out maybe a year or so that you know maybe come down a little bit more but if youre looking out multiple years I think we can improve on where we are today.
Thank you so much.
Thanks, Brian .
Yeah.
Thank you. Our next question is coming from Jack Vander <unk> with Maxim Group Your line is life.
Okay, great. Thanks for the update guys can solid gross margin and EBITDA results for sure.
Couple of questions, maybe just to just because I missed it just to reiterate the guidance I heard the third quarter revenue and EBITDA of $60 million and 10 million in the second half 'twenty three revenue guide of $110 million.
Did you mentioned second half adjusted EBITDA.
I think we did not guide to second half adjusted EBITDA, Yeah, We just guided only Q3, but you know I think.
You could probably extrapolate you know roughly what what you know assuming we come in at the Q4 revenue then we will be up on adjusted EBITDA year over year, given the higher gross profit margin.
Okay, Great and then just one more thing to reiterate or.
Just because I missed it what's your market share gains I think I heard in EMEA for the first half of the year that increased to five 8% and I missed what you said about the U S to the U S market share increased again into what percent. It did we looked at it across the hall, we will look at the numbers across the hall. So in the U S. We went from five eight to $6 four.
So each one we went up to the half year numbers for both EMEA and the U S.
Okay, great fantastic.
Jack that that that is an interactive displays right, which make up about 70% of our business. So so we're only providing market data really on that segment of our product line.
Yep understood understood I appreciate the clarity there.
But nonetheless, good good work and good momentum there.
And then just in terms of maybe if I, if I circle back to the overall revenue slowdown.
You mentioned lower sales volume across all markets, but just are there any more specific factors you can point to that cause maybe a slower top line and the pace of new order intake than you were previously expecting.
Would that be by G O or corporate versus education any of your subsidiary businesses need set Roe versus the.
Harold just whatever else you can provide or was it really indeed, a and overall just general slower slowing of volume orders.
Jack My overall view on this is genuinely that there was a kind of a hangover from the.
The issue has to do with Covid and the fact that you know the supply chains with so we're impacted so much.
So many customers end users partners, whereby you know like Oh.
Okay. We will let you know there's problems with the supply chain, let's make sure we all the country.
I think we've got the hang over from that and it starts in Q3 started this time last year, starting in Q3 last year.
And it's kind of worked through I definitely see it as a much more normalized environment.
So it's been it's kind of a big deal.
Decrease in order intake and yet our market share is increasing slightly because as you know, it's it's definitely across the board.
Yes.
Yep understood understood. Okay. That's helpful.
And then maybe just you know I want to emphasize the point, it's probably the most important is that you expect.
Order intake to return to growth in the third quarter revenue to rebound in the fourth quarter and then you expect meaningful growth in 2024.
One question to the drivers of 'twenty 'twenty four growth and your confidence in that how does how does the government funding those programs how do they play a role in that is that a factor. They expect to help drive a return to growth in 2024, and what's the status of the government funds.
Yeah, absolutely that's part of the driver I think that the biggest reason for the growth will just be to Mark's point, the return to normality and buying cycles.
There's been this lull that mark talked about and once that mostly behind us and we're back to regular buying we expect steady growth in Ed Tech spending as we've seen in the past and keep in mind you can go back post 2000, and post 2008, and there were no wells after that and then once that buying returned it was steady growth again, and so and before I talk.
About special money, which you know there were a lot of special funding that came into education, but you just run rate education budgets have generally not declined across the board, including in the U S. Now if you look at public school budgets in the U S about half of that funding comes from property taxes you know.
Pretty taxes property values are still quite robust in fact, they went up substantially right post COVID-19 and then in the balance of the budget comes from state and federal funds and those generally have not decreased either so schools have funding theres still allocating that funding to technology spend and that allocation is not declining. So the money is absolutely there and that is true.
If you talk about met most of Western Europe and in other countries as well now beyond that there has been a lot of special funding would talk about that as your funds in the U S, which was which was nearly $200 billion allocated to education. There is still a large chunk of that that hasn't been spend and that those funds that have not been spent are going to expire end of 'twenty 'twenty four and.
So we do think there's going to be a little bit of a jump in spending there, but other countries are also allocated substantial spending.
Germany is a good example, where they allocated substantial spending with their digital pack, there's others as well, but I would say that yes. There is federal monies both in the U S and the other government monies are going to help drive, but I think the bigger thing that's going to drive growth is back to normality.
And regular spending of technology budgets on a go forward basis, you know barring barring another disaster or something else that happened stuff.
Yeah. That's helpful color and then maybe just one more one more question kind of.
Given that your cash balance can you provide an update just on the share repurchase program and any thoughts you can provide share price where.
Where the share prices at relative to the cash you have on hand and liquidity.
Yes.
Any update there.
Yeah, Yeah, yeah. So so really we're in the same place we were last quarter and that we we actually what we plan on utilizing the stock repurchase program something we're definitely looking at we mentioned are after last quarter was something we're gonna evaluate second half of the year. So there's going to be something we're gonna be evaluating in the next few months and it's really a function of.
<unk> of cash flow you know as we generate more cash from operations and we can look at how do we utilize that cash to drive shareholder value. Some of that will be we'll look at growth in the business and we will look at reducing our debt potentially as Brian canceling or brought up but then also we will look at that share repurchase program, you'll notice that cash from operations for Q2 was.
Slightly positive and so we're starting to go in the right direction, but also you'll note that last year, we generated I believe it was $7 million in cash from operations in the second half of the year, which is typical that we're going to see that heavier cash from operations and that that second half. The same thing will be the second half of this year, we're gonna see larger flooded.
Cash coming in Q3, Q4, and as that comes in we're going to evaluate that as a management team and of course, it's a board of directors, but how do we best utilize those funds to drive value and one of the questions that will be on the board every time would be is it time to utilize the cash repurchase program or the stock repurchase program.
Yeah.
Okay, Great I appreciate the color guys great to see the momentum building in the return to growth on the horizon. Thanks, guys.
Yeah I appreciate it.
Thank you.
We currently have no further questions at.
This time, so I'll hand, it back to Mr. Pope for any closing comments you may have.
Well. Thank you everyone for your support and for joining US today on our second quarter 2023 Conference call. We look forward to speaking to you again in November when we report our Q3 2020 results.
Yeah.
Thank you. This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.