Q3 2023 Cineplex Inc Earnings Call
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Hello, everyone and welcome to and in fact, Inc. That quota at 'twenty two 'twenty three earnings Conference call. My name is David and I'll be coordinating a cool thing.
If you would like to ask a question. Please press star followed by one on your kind of thing.
I would now like Honda is your highest Mark drove Shao Lee Vice President of corporate development and Investor Relations to begin. So please go ahead.
Good morning, everyone I would like to welcome you to Cineplex's third quarter 2023 earnings release Conference call hosted by Ellis, Jacob President and Chief Executive Officer, and Gordon Wilson, Chief Financial Officer before we begin let me remind you that certain statements being made are forward looking.
And subject to various risks and uncertainties.
Such forward looking statements are based on management's beliefs and assumptions regarding the information currently available.
Actual results may differ materially from those expressed in the forward looking statements.
Information regarding factors that could cause results to vary it can be found in the company's most recently filed annual information form and management's discussion and analysis.
Following today's remarks, we will close the call with our customary question and answer period.
I'll now turn the call over to Ellis Jacob.
Thank you Matt.
Good morning, and welcome to our Q3 'twenty two 'twenty three conference call. It is a pleasure to be with you today to provide details on our first quarter and Cineplex history before I get started I wanted to take the opportunity to share the exciting news of the actors have now joined the writers and reaching.
An agreement to end the strike.
Behalf of exhibitors in the millions of moviegoers. Thank you, let's continue doing what we do best bearing beautiful performances with exceptional experiences best enjoyed in our theaters.
Now back to our best quarter in Cineplex history, we achieved the highest EBITDA ever even surpassing pre pandemic levels and we are extremely proud to see our thoughtful strategies deliver such strong results.
Our adjusted EBITDA margin of 18% was significantly higher than the third quarter of 2019, demonstrating the power of the operational improvements we implemented over the past couple of years over the past two quarters free cash flow generation has enabled us to repay 55.
And bank debt as part of our focus on deleveraging the balance sheet and strengthening our capital base.
Our outstanding third quarter results can be attributed to our record breaking box office, but just as importantly, the success of our diversification strategy.
We achieved third quarter record box office revenue of 188 million, which represents 106% of 2019 levels impressively, our third quarter results outperformed the north American market share by 310 basis points.
Driving guests to premium experiences a PPP reached a third quarter record of $12 and through expanded concession offerings CPP achieved $8 44.
These results clearly indicate the multiplying effect the sustained enthusiasm for our premium theatrical experience.
Our enhanced food and beverage offerings paired with our unique ability to offer guests diverse content personalized experiences in a variety of entertainment options across all venues.
Looking at our theatrical business, we are seeing consumer demand for premium experiences and compelling content continued to hold strong.
July was our highest box office month ever with Barbie generating the highest July attendance at cineplex theaters nationwide Oppenheimer and mission impossible that directly in part one followed in second and third places respectively with strong performances.
Bob and I'm, a phenomena generated two $5 billion in global box office revenues since their respective releases.
We capitalized on this demand by using rich consumer data to personalize outreach and bring guests into more premium experiences and this resulted in 35% of third quarter box office revenue coming from our premium margin accretive experiences like VIP Ultra AVX in IMAX.
Launching new concepts like Cineplex junction enhances the guest experience strong strong per patron spend across box office food beverage and gaming with the aim of maximizing gas revenue per square foot.
There's been excellent progress made on film release volume over the last two quarters and we continue to work closely with our studio partners.
Now with both the writers and accurate strike behind us any slight movement of content will not have a material impact <unk>.
We're excited about the diverse film slate for Q4, and there is something for everyone in the coming months action and adventure abound with the marvels acumen and the last kingdom and acclaimed director Ridley Scott's Napoleon.
Ferrari described as a grouping and masterful drama with the Star studded cast tells the story of legendary sports car magnet Enzo Ferrari during three critical months and $19 57.
<unk> anticipated family features are also coming to our theaters, including migration trolls band together Disney's wish and Warner Brothers Wonka. The original store lift story of Charlie and the Chocolate factory starring Timothy shallow.
Non traditional studios like Amazon and Apple are also building on their commitment to theatrical releases as mentioned previously streamers I expect expressing intentions to scale theatrical film production over the next few years, bringing bringing a wave of new content to our theaters Apple have another big theatrical film really.
<unk> in October with Martin Scorsese's pillar of the flower move.
Over the past several years, we've been ahead of our peers driving demand for alternative content not tied to Hollywood Studios.
Remaining focused on our content broadening strategy helped us to navigate supply shifts our international content is making a meaningful contribution to our overall box office performance in fact, all of the top 20 films in the third quarter, while international titles films like Geoana carrier <unk> three.
<unk> outperformed north American market share by 28% and 77% respectively.
Through our relationships with international content suppliers, and our ability to understand consumer preferences, we have attracted new audiences and a proven ability to outperform the north American industry. On these titles, we've got an incredible lineup of international firms coming in and our fourth quarter, including <unk>.
Steiger, three animal Denki and Salon part one cease fire.
Furthermore, non traditional content like concerts opera stage performances and sporting events continued to grow in popularity and are performing well at the box office.
<unk> brought a record breaking concepts of Taylor Swift the areas the areas to which generated over $165 million in box office revenue at the domestic level and fast on its heels next month as Renaissance a film by beyond say fans are re imagining their local theater transfers.
Summing it into a venue where they can be front and center with their favorite artists stoping in the concert experience with ultra premium sound and singing and dancing along with their friends.
Finally through our distribution business Cineplex fixtures, we are sourcing feature film content from all over the world, including homegrown Canadian content like the light hearted drama the Queen of my Dreams.
Japanese animated films the boy in the Heron, and as part of our distribution partnership with Lionsgate the much anticipated hunger games, the ballad of songbirds and snakes.
Moving onto our diversified businesses our location based entertainment business had a strong performance in Q3 generating record third quarter revenues of $34 2 million.
<unk> continues to be a growth opportunity for us as we have two new <unk> locations opening in the second half of next year and move to Cup.
Our amusement solutions business <unk> generated record third quarter revenues of $49 million, an increase of seven 7% compared to prior year.
On the media side for Cineplex media Cineplex digital media performed well despite the challenging macroeconomic environment.
Well, while there are some economic headwinds in the advertising sector cinema media continues to outperform other traditional advertising mediums.
Both had a strong third quarter and are displaying significant momentum as we head into a traditionally strong fourth quarter.
The Cineplex digital media team is focused on new client growth to significantly expand its digital out of home network.
As we keep consumer needs at the forefront we're excited to announce the launch of our new Cineplex app, creating a more seamless guest experience greater personalization and improved visibility of other cineplex businesses like the rec room and the Cineplex store.
We're also excited to announce the launch of mobile food all.
While mobile ordering has been available in our VIP theaters for several years, we are expanding it across the entire circuit with the rollout by region over the next few months this new functionality improves and enhances the guest experience and provides upsell and cross sell opportunities throughout the guest journey.
The <unk> plus program is another example of what sets us apart from our peers with over 17 years of data, we are able to drive profitable guest engagement across the cineplex ecosystem.
The program has grown significantly over the past year and seen plus now boasts over 14 million members. The addition of Empire with their grocery banners and home hardware to the program is enabling us to identify and convert non moviegoers into cineplex customers and bring them into our <unk>.
Our system.
For our guests this means broader and more attractive content and personalization and as we think about a complete ecosystem. There is tremendous opportunity to further leverage this data across all our lines of business in the future.
Before I wrap and turn the call over to God I want to provide a brief update on the competition bureaus allegations regarding our online booking fee.
We're currently conducting various preliminary steps necessary to have this hurt by the competition tribunal during the first quarter of 2024.
As I've said before.
Please comply with both the letter and spirit of the law. We believe the competition Bureau's allegations are unfounded and we continue to seek an early determination of this matter.
As we look forward, we are extremely proud of the momentum coming out of a record breaking quarter reinforcing that our strategic initiatives are driving results.
The strength of the third quarter film lineup paired with the strong results of the company's diversified businesses saw cineplex, achieving the highest quarterly EBITDA in our history.
This remarkable quarter proves we have the ability to capture more value, even though attendance levels were at 90% of 2019.
We are also focused on deleveraging and using cash from operations to reduce debt levels.
We remain confident in the strength of both our theatrical and diversified businesses. Our diversification strategy is one of the several compelling factors that will continue to differentiate cineplex from our North American peers.
Cineplex has an innovative exhibitor when it comes to guest experiences from premium formats and enhanced gaming in our venues to new entertainment destinations like junction.
Content broadening strategy reinforces our leading market position in international cinema and alternative content.
We are using our theaters for non theatrical events to maximize our return on the real estate footprint footprint, we have across the country.
The consumer data, we collect is utilized across the cineplex ecosystem to drive additional revenue and create efficiencies within our business operations overall.
Overall, cineplex is well positioned to achieve great success, and we will build on these industry leading results I'd like to thank and congratulate our team for their tremendous work this past quarter with that I'll turn things over to Bob.
Thanks, Alex I am pleased to present, a condensed summary of the third quarter results for Cineplex, Inc. For further reference our financial statements and MD&A have been filed on SEDAR plus and are also available on our Investor Relations website at Cineplex Dot com.
Our MD&A and earnings press release includes a complete narrative on the operational results.
So I will focus on highlighting select items and providing commentary on our liquidity balance sheet and outlook.
As Alex mentioned, our Q3 results were spectacular total revenue increased 36, 4% to $463 6 million and our adjusted EBITDA was $83 $1 million.
Which represents our highest quarterly EBITDA ever.
We had record third quarter results and substantially all of our key metrics and rather than repeating these again I would refer you to our earnings press release and MD&A.
We continue to focus on revenue opportunities and cost management and are extremely pleased with our Q3 EBITDA margin of 17, 9%.
And a combined Q2 and Q3 EBITDA margin of 16, 2%.
This combined total is higher than any quarter in 2019, and the full year 2019 total of 13, 8%.
Let's take a closer look at our segments and see this optimization focus in action as we compare Q3 2023 to the pre pandemic Q3 2019.
In the film exhibition and content segment for Q3, 2023 attendance was 90% of 2019 levels, but total revenue and adjusted EBITDA were both higher than 2019 level at 113% of 2019 and 130.
5% of 2019, respectively.
In addition, despite the attendance volume decline our segment adjusted EBITDA margin increased to 19, 2% in 2023 as compared to 16, 1% in 2019.
In the media segment as we have previewed as we've mentioned previously.
Cinema media business model post pandemic has shifted to a CPM based model and as such cinema advertising revenues are more dependent on absolute attendance levels.
Decrease in attendance levels, coupled with the current advertising climate as compared to 2019 hazards.
As a resulted in segment adjusted EBITDA coming in at approximately 79% of 2019 level.
Effective cost management has resulted in the segment adjusted EBITDA margin improving to 55, 8% from 46, 9% in 2019.
Turning to our amusement solutions segment.
<unk> has continued to perform strongly with segment revenues coming in at 110% of 2019 level and adjusted EBITDA coming in at 133% of 2019 levels.
As a result of strong cost control and additional integration synergies segment. Adjusted EBITDA margin has increased to 17, 2% from 14, 2% in 2019.
And lastly, our <unk> segment has benefited from additional locations and strong cost management.
Segment revenues came in at 175% of 2019 levels and segment adjusted EBITDA came in at 427% of 2019 levels.
With segment adjusted EBITDA margin, increasing to 25, 4% in 2023 from 10, 4% in 2019.
The above are concrete examples of this focus on revenue opportunities and cost management.
And looking at the last 12 months or LTM EBITDA was closing in on $200 million at $195 million.
With the last two quarters alone contributing $143 million of the $195 million total.
As Alex mentioned previously it was only in April 2023 that we returned to regular product supply with multiple releases on a weekly basis.
Finally, net income is relatively flat to the prior year as the $63 million improvement in adjusted EBITDA was offset by the inclusion of a gain of $50 million on the reorganization of <unk> in the prior year and.
And the inclusion of noncash deferred taxes of $11 million in the current year.
I would like to now move on and speak to our balance sheet and in particular, our liquidity position.
As a result of the past two strong quarters, we were able to pay down approximately $55 million under our credit facilities.
This left us with $301 million drawn and approximately $232 million available under our credit facilities.
At September 32023.
As at September 32023, we reported a senior leverage ratio of 148 times as compared to a covenant of two five times.
Although not tested our total debt ratio was 263 times well within our two and a half to three times target range and demonstrates our commitment to deleveraging.
In addition to deleveraging through operating results, we will continue to evaluate value, creating liquidity events, which could include asset sales.
Now I'd like to take a few minutes to look forward.
Wanted to revisit the World was described during our past analyst calls.
This was a world, where we could potentially achieve pre pandemic adjusted EBITDA levels.
75% to 80% of pre pandemic attendance levels due to our diversified business models and use free cash flow to delever.
With the return of product on a regular cadence for the second and third quarter combined when comparing to 2019, we achieved 100% of 2019 to EBIT, an 83% of the attendance and de Levered by $55 million.
This continues to give us confidence that this world is real and here today.
We may have a few bumps ahead of us because of the release date changes due to the various strikes.
Our long term view is solid.
Yes.
Our business is typically traded at a premium given our market share and diversified businesses. However, with the positive results of our business our momentum in the industry. We have not seen the same valuation return that our peers in the U S have experience.
As of yesterday, we were trading at an approximate 30% discount to our target price.
We understand that our Canadian listing means we are subject to more of a show me view, but.
But we would expect that our Q2 and Q3 results should give you. Some some confidence that we are continuing to show you.
Let's talk about our balance sheet at the end of Q3, 2023, we had approximately $867 million face value of debt, including $363 million in convertible debentures, which have a conversion price of $10 94.
All of our equity research analysts have a one year target price in excess of the conversion price.
The 75% to 80% of tenants World, We believe that the convertible debentures would convert to equity and as mentioned earlier, we would be within our target leverage ratio range of two five to three times and on the path to consider the reintroduction of a dividend.
Now, let's talk about initiatives to capital optimize our capital structure as I said last quarter I want to make it clear that we are primarily talking about the composition and maturity of our debt stack.
Including items, such as ratings strategies mix of bank versus private versus public debt U S versus Canada, and not Dieter measures such as issuing common equity to reduce debt.
The strong return of our business in Q2, Q3, you will see us moving forward with these initiatives, including extending maturities, removing restrictions and financial covenants and ultimately reintroducing a dividend.
With our recent record breaking operating results and our commitment to strengthening the balance sheet. There is a lot to be excited about and with that I would like to turn things over to the conference operator for questions.
Thank you as a reminder, anyone would like to register a question. Please press star followed by one on your Pat Thank you Pat.
When preparing to ask your questions. Please ensure you Amit.
And if you'd like to withdraw your question. Please.
So that sounds glib I wanted to know if you've had much sir question.
Okay.
Our first question today comes from Adam Shine from National Bank financial.
Adam. Please go ahead your line is open.
Thanks, a lot good morning, obviously, good results and great news out of Hollywood.
Alex can you talk a little bit about I mean, you touched on Q4 can you talk a little bit about the.
'twenty 'twenty four film slate and obviously there is more to come as we get a sense as to how production reboots, but how do you characterize the slate and.
Additional information that you might be aware of in terms of further strengthening.
Yeah.
Yes, Adam and they were real concerns as to how.
The slate would roll forward and we saw a number of movies like dune and.
Ghostbusters move but.
We still feel quite strongly I think the only two films.
Look at it as far as moving out of 2024 was.
Snow White and.
And mission impossible closer to the two big ones, but.
Now we are doing in the first quarter and <unk> customers in the first quarter that should help and I don't know if you saw but.
The Hollywood.
Group are ready to get back and Deadpool Gladiator.
Pedal juice are all starting production very very shortly.
So that should help as we move forward.
That's not to say Adam that there aren't going to be a minor disruptions, but.
Still feel good moving forward.
Okay. Thanks for that.
You referenced the Taylor Swift movie in <unk> beyond <unk> culture movie coming up as well.
Number of questions. We've had is relate to <unk>.
The film cost profile.
Don't know if youre able to talk to it whether there's something unique about it or whether sort of just comes in as a similar average to the usual film cost splits with the studios.
Well in the case of the concerts, we basically the Canadian distributor for them, so, it's a little bit different than what.
We would do on a regular film.
So it's part of the whole process, but there given it takes between us and.
The AMC distribution company.
Okay, and just maybe one for gourd.
Obviously, we've seen tremendous strength out of <unk>.
AG in recent quarters and still very strong results, but just curious.
Anything in particular in the Q3 in regards to.
A bit of a step down we saw from the trend in Q2, which was exceptionally strong and just the context of margins as well yes.
Year over year, but maybe moving a little bit lower within the usual range that you talk about.
Yes, so look it Adam and it was a record third quarter results for the <unk> business, which is for continued to kind of.
Deliver record results in significant increases over prior year, there is a little bit of a seasonality to the business.
Yes, so in Q2.
We saw some of the benefits of that seasonality.
The business, we're extremely pleased with hitting those targets.
Ranges of 15% to 17%, which we've always.
Which would kind of.
Highlighted since.
At some point in time last year. So it continues to perform exceptionally well and we're really excited on the outlook as you look forward in this business given sort of the explosion of new FCC concepts across North America.
Okay Super Thanks, I'll leave it there and queue up again I appreciate it.
Thank you.
Thank you.
Next question.
Hi, Yaghi from Deutsche Bank. Please go ahead your line is open.
Great. Thank you corporate taking my questions and great great quarter guys.
Wanted to maybe start with the most pressing and questions. We got we get on on Cineplex and that is.
Dealing with the leverage situation I'm happy Gordon you said youre not contemplating any equity issuances.
This point in time, which is good to hear however, I just wanted to maybe touch base on the upcoming refinancings that you have coming up and.
How you are going to handle these refinancings are you mentioned youre looking to.
Our refinance some of these maturities can you maybe just elaborate a little bit on that I think a lot of our investor base.
Hoping to get more.
Clarity on that thank you.
Sure and good morning, and thank you for your comments.
As I mentioned in the call script is.
Our focus is looking at extending the maturities, we will look at the composition and the mix between bank debt public debt private debt.
And our focus will be on extending the maturities so.
We do have.
And as I've said.
I wouldn't be surprised if you see us go out and get a credit rating to provide optionality on what we may do.
Also have said historically I wouldn't be surprised if you saw us.
<unk>.
Our bank group to asked to extend the maturity of existing credit facility to give us additional flexibility as we move sort of through these.
Turbulent economic times and ensure that we have flexibility on when we want to choose and execute on us and our strategy related to the debt. So our focus will be.
Starting very soon.
To some point in time in early 'twenty 'twenty four to look at.
Extending maturities.
Changing the composition of mix.
And as part of my comments were that the.
The.
The converts.
We believe well, but in essence solve themselves.
Given the strong results and the outlook on the business.
Additionally, as I mentioned in my prepared comments too is we've.
We have deleveraged from the strong operating results by $55 million over the last two quarters.
My comments will continue to.
Delevering.
Yes.
Consider potentially any asset sales to the extent that we thought they were accretive.
Yes.
Okay, Great maybe just a follow up on on the results when you look at 2024.
Assuming a steady slate of movies coming out from.
Production.
I'm hitting theaters.
Anything you want to highlight that you had in Q3 that would be.
Normal or nonrecurring that is affecting either up or down your free cash flow just trying to.
Make sure we have we have the right pace for free cash flow production going into 2024.
Yes, Sameer I think look I think one thing that you are seeing in the business as we have focused over the last three years on optimizing the cost structure.
I highlighted.
Some of some of the results of the work what I provided.
The EBITDA margins of each of the segments and how we're significantly improve those EBITDA margins.
As compared to the pre pandemic period.
In the third quarter results is really the.
Material operating leverage of the business once the attendance is there.
The incremental flow through to free cash flow is massive.
So this is the world that we believe we operate.
Thank you.
Our next question.
Alright.
Sorry go ahead.
So just wrapping up here so sorry.
As <unk> mentioned $150 million of EBITDA in the last two quarters $55 million of debt Paydown. So.
That regular cadence.
We're very confident about our ability to de lever off of the strong free cash flow.
This business will generate going forward.
I think we can go to the next question.
Thank you.
Our next question is from Derek Lessard from TD Cohen.
Please go ahead your line is open.
Yeah, Good morning, Alex Gordon and Matt first of all congrats on an awesome quarter and happy to see labor peak for the next three years.
Maybe on that topic.
I think some of the concessions at the studio.
I think they were saying could be worth up to $1 billion, just wondering or do you think that studios try to maybe recoup your cost some of that back through movie cost to exhibitors.
A lot of the.
Concessions that they gave had to do with streaming and post theatrical so.
We feel at this point in time I haven't had anything.
As far as significant discussions as it relates to this but.
We've been great partners with the studios and we'll do our best to get the maximum box office that we can derive and thats something that we work together with them to deliver and that to me is really important.
Okay, that's helpful and I think.
In terms of the current laid out I was curious on whether exhibitors get any sort of heads up from the studio bond potential movements or shifts.
Well there was the big eyes, I mentioned earlier, there was a big article on deadlines that talked about them restarting a staff and they've named about six different movies that theyre starting right away.
And that to me is a good sign that the.
Moving back to full production of these films.
Okay.
And maybe you can help them anytime soon.
Sorry go ahead.
Hello, well continue out Sir.
But as I've said many times is.
With the situation we're in it's not that the films basically disappearing just moving so it's a positive positioning for us going forward.
Okay, and Gordon might be just a few for you obviously I think you've touched on some of it but super strong year to date results.
Maybe Q4, maybe a little bit less so just given the late but you look well placed for covenant testing to resume in Q4 by my math, just curious how you're thinking about the upcoming test and looking ahead to next year.
Okay.
Yes, and look at we gave you.
I disclosed the total leverage number which would be well within the compliance range and.
As you recall.
And Thats, an LTM ratio so.
The Q4 Q4 last year was not a particularly strong quarter. So.
That will fall off and get replaced with this one yes.
Yes.
Feel very strongly that.
Where we are with respect to the covenants going forward.
Okay, and then just maybe on a bit of housekeeping on the working capital side. There was a usage on what looks like the accounts payable just maybe some color there would be helpful.
Yes.
Okay, what's the ebbs and flows and a strong.
We typically try and match the.
Working capital position to the strength of the business so with.
With a strong business.
<unk>.
We looked at.
Sort of accelerating some of the payments to our suppliers.
From where they had been historically.
Awesome, Thanks for answering my questions and congrats again great quarter.
Thank you very much.
Thank you.
Before we take our next question I'd, just like to remind everyone to register a question. Please press star one on your telephone keypad.
Our next question is from drew Mcreynolds from RBC. Please go ahead. Your line is open.
Yes, thanks, very much just echo a fantastic quarter for us.
Were you guys Gordon health.
Okay.
I missed the first part of the call from my apologies for any duplication here.
Maybe for you or just on the asset sales that you had.
You could explore.
Is there anything you can give us in terms of.
Whether those would be non core or perhaps something.
A little bit more core so to speak but.
And how you kind of size up.
And accretion potential.
What youre, what youre lenses there.
And then secondly.
Maybe for you Ellis on the film supply and specifically from the streaming platform. So I think we're all aware of that.
The theatrical window is increasingly a window that.
Movies from streaming platforms are using it.
Has anything changed in terms of that pipeline.
Over the last few quarters.
Obviously, notwithstanding the delay due to strikes.
It does still feel theres strong commitment there to.
And the theaters. Thank you.
Thank you Bruce.
And thanks for your comments I will take the first question and then with respect to asset sales. So throughout the pandemic as we would obviously looked at certain noncore assets, our head office building.
We sold a an equity interest.
Sorry.
Decreased.
Interest in our holdings and seen so as we look forward and contemplate what are the other options is.
Probably be in noncore assets.
The extent that there is an interest in sale and and.
Our businesses, we have a very.
Complementary set of strong assets that theres always been ongoing interest and so to the extent that there is something that that was accretive it made sense for us is as we would we would obviously.
Execute on on something.
Okay.
Okay.
To your question about the streamers.
Looking at Apple and Amazon as you know Apple released a big movie in October.
Hello.
Moon, the movie did quite well and they've got another movie Napoleon coming out shortly so they are very committed and we're also working closely with them in Canada as it relates to that.
Movies are ongoing through larger studios to distribute for them.
In addition to that Amazon as you know with the acquisition of MGM, they've got a good slate of films that are coming out over the next number of months now there has been a bit of a delay in looking into 2024 because of the.
The strike situation.
They are both committed and they are looking to continue to release strong theatrical product through the next number of years.
Okay Super Thanks, very much.
Thank you.
Yeah.
Thank you.
As a final reminder, if anyone would like to register a question. Please press star one on your telephone keypad.
We have no further questions. So I'd like to hand back to Ellis Jacob to claims.
Thank you all again for joining us. This morning, we look forward to speaking with you in February for our fourth quarter and fiscal year 2023 results have a great day and enjoy a movie.
Thank you.
Thank you everyone for joining today's call you may now disconnect your lines and have a lovely day.
Yeah.
[music].
Okay.