Q2 2024 Aurora Cannabis Inc Earnings Call
Sure you know that.
I just need Glenn and welcome to Aurora Cannabis, Inc. Second quarter 2024 results conference call.
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A question and answer session will follow the formal presentation.
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I'll now turn the conference over to your host announced Christiane. Please go ahead.
Thank you Chris.
We appreciate you all joining us this afternoon.
On the line with me today are CEO, Miguel Martin and CFO Glenn.
After the market closed <unk> issued a news release announcing our fiscal 2024 second quarter financial results.
This news release accompanying financial statements and MD&A are available on our IR website and can also be accessed via SEDAR and Edgar.
In addition, you will find the supplemental information deck on our IR website.
Listeners are reminded that certain matters discussed on today's conference call could constitute forward looking statements that are subject to risks and uncertainties related to our future financial or business performance actual results could differ materially from those anticipated in these forward looking statements. The risk factors that may affect actual results are detailed in our annual inch.
Formation form and other periodic filings and registration statements.
These documents may similarly be accessed via SEDAR and Edgar.
Following prepared remarks by Magellan glad we will conduct a question and answer session with our covering analysts.
We ask that you limit yourself to one question and then return to the queue.
That I will turn the call over to Miguel. Please go ahead.
Thank you in there.
Glenn and I are hosting this call today from the Sky facility in Edmonton, Alberta, The home province of Aurora, and where our story began we were very pleased to be here at this 800000 square foot facility that is being repurposed my vivo farms for Oregon cultivation was part of their expansion plans.
More importantly, we are here today to discuss our quarterly results, which demonstrate the strength of <unk> business model.
This quarter, we achieved strong revenue growth record positive adjusted EBITDA and maintained our leadership in key markets all of which will help us achieve our target of positive free cash flow in calendar 2024.
Starting with the top line, we grew total net revenue by 30% in Q2, but the real story was the 42% growth in our medical cannabis segment, which included a 122% growth in medical cannabis outside of Canada.
Adjusted gross margin was 51% increase across three of our four business segments, while adjusted EBITDA grew to $3 4 million and $9 6 million improvement year over year.
Highest result on record Q.
Q2 also marked our fourth consecutive quarter generating positive adjusted EBITDA.
Our balance sheet is similarly in great shape, and one of the strongest of Canadian Lps with a cash position of over $200 million. Our convertible senior notes are down to about $5. Three U S million. It will be settled at maturity in February 2024.
Following this repayment Aurora is only remaining debt will be approximately $40 million of nonrecourse financing at vivo.
<unk> balance sheet is going to allow us to play offense going forward without the weight of a heavy debt load.
It is truly an exciting time for Aurora, our shareholders and our employees, let's now take a deeper dive into our business.
In Canada, we're Aurora already has the number one position in the medical market. We grew our medical cannabis net revenue compared to the year ago quarter, due a broad and attractive product assortment positive sales mix and innovation.
With a leadership position in medical we believe we can find opportunities for growth due to the ongoing disruption in the Canadian marketplace.
We view investment in innovation is critical to our long term success, which is why we are committing to launching a steady stream of exciting new products to the Canadian market.
Innovation in Canada provides a roadmap for new product launches in our international markets. We've seen great success launching cultivars in Europe and Australia. The first round success in Canada next generation cultivars launched in Canada in spring 2022 are now available to patients globally.
In Europe, and Australia. These streams provide patients with some of the highest potency and most appealing offerings in those markets.
Domestically our latest launches are now available on our medical channel and set to launch in the Canadian consumer channel in the coming quarters.
We made a conscious decision to focus our production network on indoor EOG M. P. Certified facilities managed by teams who have deep experience in pharmaceutical production.
We view ourselves as a medical company, providing a pharma grade product to a global patients with.
This focus on pharma grade EOG M. P production is a clear competitive advantage in a highly regulated medical markets evolving across the globe.
In September we introduced honor a new cannabis cultivar designed for better in Aurora medical patients by veterans as part of our stream for heroes portfolio.
5% of net profits from the sale of strained for heroes products support veteran organizations across Canada.
Internationally through recent enhancements to our supply chain, we've been able to meet the increased patient demand for our pharma grade medical cannabis across Europe, and Australia, while driving our per Gram in per unit cost lower.
In Germany, we've been operating since 2017 and are one of only three companies with a German production facility. This is our largest European market and we are gratified that the country is moving in the right direction with the potential for these scheduling of cannabis from the narcotics list in the near future.
We're very supportive of this effort and believe that with its passage the German medical markets could expand significantly.
In Poland, our second largest European market, our regulatory expertise sets us apart, allowing us to benefit from high barriers to entry and regulatory challenges to serve our patients.
Aurora held the number one market position by volume in Poland in Q2, and we are confident in our ability to meet increasing demand in the country.
In Australia, which we believe is becoming the largest medical market in the world outside of the U S. We are encouraged by our significantly higher sales volumes as our local partners interested in clinician education and is leveraging <unk> vast product portfolio to provide best in class medicine and support for this rapidly growing patient base.
Yes.
Whereas model Australia's model led primarily by clinician engagement represents a more traditional pharmaceutical approach.
New medication rollouts with clinicians and one we expect will be exported to other new medical cannabis markets globally.
Turning back briefly to Canada, and more specifically Canadian adult use we are benefiting from our historical investment and interest in cultivation and manufacturing and see opportunities for our Canadian adult use business to move to profitability as other market participants exit <unk>.
During Q2, we introduced a bold new brand tasty.
Designed to deliver on taste potency and price to the Canadian adult market.
These launching two primary formats, vapes and infuse pre rolls, which is now ranked second behind the flower category and expected to deliver further growth.
Early interest from cannabis retailers across Canada has been strong and tasty represents a format with crossover appeal between channels leveraging an omnichannel global innovation portfolio with appeal to multiple end user groups is yet another way <unk> model is expected to drive profitability in the cannabis segment.
Finally, our business model is starting to show the financial benefits of diversification as being bodes vegetable and plant propagation business continues to generate steady predictable revenue and earnings, albeit on a seasonal cadence.
Leveraging purpose built but underutilized candidates facilities Beavers team of cultivation experts is undertaking a transformational product line extension moving into the profitable cultivated orchids market, while continuing to grow the geographic reach of their base business <unk>.
By expanding our reach in a controlled environment agricultural industry Aurora shareholders can expect to benefit from the compelling long term value creation attributes of this sector.
Over the next two to three years, we expect the acceleration of <unk> business plan to potentially double their current revenue and EBITDA.
In short our business model focused on global medical cannabis and succeeding across multiple categories and geographies and we're just getting started I'm very proud of our team and what we're accomplishing and look forward to fulfilling our commitments with respect to top line growth cost savings EBIT generation convertible got written.
And importantly positive free cash flow and with that I would now like to turn the call over to Glenn for a detailed financial overview.
Thank you Miguel and good afternoon, everyone. You're obviously very pleased with our Q2 performance and gratified that the substantial progress we have made in executing our business transformation continues to yield tangible results for our company.
Our mission to further improve our financial condition is well on track as highlighted by our commitment to deliver $40 million in annualized savings by the end of this fiscal year.
Today, our total cash balance at over $200 million in cash and equivalents, which is more than sufficient to reach positive free cash flow in calendar 2024.
And I will also highlight our progress in cleaning out debt during Q2, we repurchased approximately $41 million of our convertible senior notes through the issuance of approximately 54 million common shares.
Subsequent to Q2, we repurchased a further approximately $23 million of our convertible senior notes and that was with cash.
Before the end of fiscal Q4 and will pay off the final $53 million of these convertible senior notes.
This is a monumental improvement to our balance sheet, where we have reduced debt by approximately $531 million over the last three years, that's an achievement that we're very proud of.
Now looking to our Q2 revenue line, we delivered growth of 30% over the comparable year ago period, specifically.
Specifically, we generated a sharp increase in sales from our higher margin global medical cannabis segment.
Which coupled with a larger contribution from plant propagation more than offset a slight decrease in consumer cannabis.
Unprofitability consolidated adjusted gross margin held steady at 51% and adjusted EBITDA Rose to $3 4 million reflect reflecting a $9 $6 million improvement from last year and our highest quarterly result in adjusted EBITDA to date.
Let's now go into our Q2 results in greater depth.
Net revenue rose to $63 $4 million up solidly compared to $48 million in the year ago period.
Overall medical cannabis generated $43 8 million in net revenue up 42% from last year.
By segment International Medical revenue was $18 $4 million up 126% from last year.
And Canadian medical cannabis was $25 $4 million up 11% year over year.
The performance of our high margin medical channels was largely due to the positive market reaction to the launch of our new Canadian grown high potency cultivars in our key European markets and to the continued growth of the Australian medical market.
Adjusted gross margin for medical cannabis was 63% compared to 61% sequentially and 68% in the year ago quarter.
The change from last year as a result of higher revenue from our exports to Australia, where are we.
We sell in bulk to our distributor partner as opposed to Europe, where we own the sales and distribution chain and pick up that margin as well.
As usual driven by our focus and leadership in global medical markets Medical cannabis represented about 85% of our total cannabis adjusted gross profit.
And increased 31% at $27 $4 million in Q2 compared to $29 million in the year ago period.
Consumer net consumer cannabis net revenue was $12 million down 8% from a year ago. The changes partially due to our exit from the U S CBD business, but predominantly driven by the timing of new innovation launches.
Adjusted gross margin for consumer cannabis was 27% compared to 25% in the prior year period.
With the increasing margin due to higher cultivar yields and continued efficiency improvements in production that are driving unit cost lower.
And plant propagation you may recall from our last earnings call that the revenue in Q2, and Q3 would decrease relative to Q1 due to the seasonality of this business.
Normally vivo earns about 25% to 35% of annual revenues in the second half of the calendar year.
So with this in mind net revenue for vivo in Q2 was $7 2 million, that's up from $3 $3 million last year at this time, but note that the year ago period is not a perfect comparison as we acquired <unk> in August 2022, so it did not capturing the entire quarter of revenue last year, but vivo performed as we expected in Q2.
Sure.
Plant propagation adjusted gross margins were 22% up from 16% last year. The increase was due to product mix between vegetable and ornamental plant sales.
Our consolidated adjusted SG&A was well controlled at approximately $27 $7 million down from $29 8 million in the year ago period, and reflecting our ongoing commitment to keeping SG&A below $30 million.
So taken together the solid Q2 revenue performance and well controlled costs combined to deliver an adjusted EBITDA of $3 4 million.
That's a record for Aurora and is our fourth consecutive quarter of positive adjusted EBITDA.
Yeah.
Turning now to cash flow, we made progress in fiscal Q2 towards our goal of positive free cash flow as our operations excluding changes in working capital used a net $13 million. This is down modestly sequentially and well down from the $37 $3 million used in the year ago period.
Fiscal Q2 met our expectations and keeps us on track to achieving the goal of generating positive free cash flow in calendar 2024.
This is an important topic, so let me dive in a bit deeper.
In our fiscal Q1 results, we explained that our target of $40 million in annualized expense reductions is expected to be realized mainly in fiscal Q3 and Q4.
The efficiency initiatives in operations, including the shutdown of our Nordic production site and the sale of our Dutch assets are now complete and we expect to see these actions benefit us in fiscal Q3.
In SG&A, we have already achieved some initial reductions year to date.
And many actions affecting corporate costs, which we've already taken are expected to be fully realized in the second half of this fiscal year.
We remain firmly on track to achieve the cost savings, we've committed to and that support our drive to positive free cash flow.
And we are focused on balancing the working capital needs of both investing in growth and executing disciplined financial management.
We had a net working capital investment in fiscal Q2, due mainly to a payment of a number of annual and one time cash items in the quarter annual payments totaled over $10 million for health, Canada fees insurance expenses and employee incentive bonuses. We also paid one time costs of approximately $3 4 million.
For severance and restructuring activities.
Inventory and biological assets are quite stable with demand and supply aligned and they contributed a net $2 5 million in fiscal Q2.
Accounts receivable are in very good shape, but in line with the strong growth we're seeing in international markets. We made the decision to invest about $7 million in Q2 accounts receivable.
Looking forward, we expect working capital investment to improve significantly compared to fiscal Q2 as inventory remains in check and our investment is thoughtful and annualized payments are normalized.
For Capex, we invested approximately $4 million this quarter split evenly between maintenance and growth initiatives.
Looking forward to our next quarter fiscal Q3, 2024, we expect cannabis net revenue to be largely similar similar to fiscal Q2 with the geographic mix weighted slight.
Slightly further towards the international medical segment for plant propagation, we expect to see seasonally reduced revenues and gross profit in Q3 that will be consistent with Q2 and in line with historical performance.
To conclude my remarks, <unk> strong financial condition is directly related to all the hard work. This team has done over the past several years and we're pleased that our efforts are bearing fruit, we are leveraging our diversified global cannabis business with a plan to deliver dependable revenue growth and leading gross profit.
Stand to benefit from a burgeoning plant propagation business and we remain committed to well controlled SG&A.
Even as we pursue M&A opportunities, we will thoroughly protect our balance sheet and continue to work towards our target of delivering positive free cash flow.
Thanks, very much for your interest I'll now turn the call back to Miguel.
Thanks Glenn.
Back over the last three years Aurora has delivered 400 million in cost efficiencies executed on our key priority of positive adjusted EBITDA and we stood the challenges and headwinds that faced our industry.
Our World Class diversified company is on a stronger footing than ever before we are on track to deliver positive free cash flow and we will build on this foundation over the coming quarters and year to come.
Operator, please open the lines for questions.
Thank you Sir.
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Okay.
First question is from Vivian Xu of TD Com. Please go ahead.
Hi, Thank you good evening.
Good evening.
So Miguel since you and Glen.
At the site facility I think I'd get appropriate the F&B Bo question good to hear you reiterate.
The target.
<unk> revenue and cash flow from that business last quarter, you said two to three years given that you are on site.
And the conversion is.
It is clearly underway.
The opportunity to kind of refine that timing or talk about kind of the pullback.
Pullback that.
That operation of a double thank you.
Yes, well. Thank you I think we're not going to give any forward looking guidance on this but you know having been here and having seen this planned conversion and where it's at for this 800000 square foot facility. We definitely think that <unk> can expand that early conversations with customers and large big box customers that youre well familiar with.
<unk> have been encouraging and the market size and pricing is also encouraging and the percentage of orchids that this facility could put online and the pricing that we're seeing in North America versus traditional southeast Asia all.
Give us a lot of confidence what I'd like to do is have a couple more months of the early read of these products in the market and see what those early selling it as once we have that I think will provide some more guidance I don't want to get over my skis in terms of what this may mean, but we're very bullish on it and if you look at other outcomes.
<unk> for the Sky facility, particularly this is really a good one so I'd ask you to wait a little bit as we try not to over promise on what this is but once we have.
Clarity on it we definitely will provide it.
Thank you.
Next question is from Michael <unk> of Piper Sandler. Please go ahead.
Thank you good evening.
Michael.
I just wanted to.
<unk>.
The taste these launch a little bit more and.
Yes.
Forget the exact wording, but you characterized it as a I think a value to the consumer.
Yes.
Clearly medical is your focus to higher margin and some of that.
Other attractive elements of that but can you explain how this fits strategically just a little bit more.
Why the launch and kind.
Kind of what you expect going forward.
Yes, it's a great question. There is a company that is innately focused on medical and Unapologetically as what we're leaning into we are seeing a lot of benefits of having both systems be healthy and you know in my prepared remarks, I talked about our focus on EU GMP flower.
Which is an incredibly important resource if you look globally.
Whether that's product going into Europe are going to Australia. So the question then becomes on rack, where we have roughly about a one seven share what assets do we have that can not only help with the fixed costs of the medical system, but also give us insight and be relevant to the consumer and be able to find spot.
That's where we can make some money so instead of focusing on premium GMP flower in the very challenged margins in the rack business, we focused on high potency infused pre rolls then leverage our genetics, our science, our execution and our extraction capabilities and allow us to put product in the market.
It doesn't take any resources away from those significantly higher margin businesses. The other aspect of <unk> is on the vape side, which obviously, we have a lot of experience with and we have found what we believe to be a nice niche on vapor and again the resources to make those products and to achieve those mark.
<unk> doesn't take anything away from what we're doing so we're trying to learn how to maximize all the fixed infrastructure that we have and produce the best companywide margins, while allowing products to live between both segments, which is really where we maximize our overall profitability. So we haven't given up on rack I mean rack is a challenge in Canada right now.
<unk> and certain geographies, but there are definitely our spots and pre rolls are the fastest growing segment once again second.
Second behind only.
Flower at this point and so where we can find those spots, we will and in a lot of cases as those rack consumers see value in it. We can also bring some of those products to the medical channel as well.
Thank you.
Next question is from John <unk> of CIBC. Please go ahead.
Thanks, Good evening I.
I Wonder if you could go across the Atlantic and I Wonder what brought about the exit in the Netherlands and can you give us an update on the France market. Please.
Sure I'd be happy too so the Netherlands as many of these markets are you have to make some early bats on what is the regulatory framework going to be I think one of the most important developments that we've seen is consistently international markets are allowing to imports.
EOG M. P flower now, it's very challenging and many times because you test in their labs, you have to have a lot of precision, but first and foremost from a production standpoint, when you compare the production costs and the leverage and efficiencies we have in ramping up Canadian production versus production in that market.
Place it just it didn't make sense from a production standpoint secondarily. The evolution of what was going to be this pilot test in that market really has not transpired and so given the incredible strength that we're seeing in other markets not only ones, we talk a lot about say, Germany and Poland, but.
Also Australia and the UK with limited resources it made sense to focus there in terms of France. It's a very topical question. We've just recently learned a little bit more about their pilot.
So we've been in it from the beginning there were nine tenders so to speak of different products three of them are flower, we had all of those and recently what they have announced importantly, as an extension of that system for about five years, and we expect that that's going to dovetail into the medical cannabis regime.
Game day.
<unk> said no inhalable as they define as both flower and vape and so the other formats will take the lead we have pivoted off of flower and we'll be doing abstracts there.
As with all regs things evolve and that doesn't mean forever now on <unk>, but that's the current situation, but it's a big market with a lot of adjacent population. It's obviously very close to great markets, such as the UK and Germany. So we'll see how it evolves, but right now.
The latest data John.
Thank you. The next question is from Doug <unk> of RBC capital markets. Please go ahead.
Hey, good evening.
My question has to do with the international side of things as well and one of the things that you mentioned in the gallon was just that.
You anticipated outside of the U S.
Australia could become the largest medical cannabis market could you.
Maybe a little bit of detail as to why you think that's going to be the case, especially given the.
The size of the German population relative to Australia.
Yeah, It's a great question, so first and foremost.
Syndicated data and the modeling of these markets is in its infancy, and so I would tell you you know the caveat to much of this is based on the data that we have and nothing that we see today in cannabis possible exception of some aspects of Canada will replicate the modeling that you would see in say Nielsen or <unk>.
IRI or the other data systems that you used to so as it pertains to Australia that market is very nascent there is a.
Data set there called no steroid data and no mystery data works with pharmacies that have signed up and it's a retail takeaway data and they model the dollar size of that market and market share. They do above from a total standpoint, and an S. K U.
You can get Directionally, what that looks like secondarily, the lead regulatory agency in that market, which is the PGA has a market size projection based on the number of prescriptions and prescribers and we'd be happy to provide that if anyone wants to take a look at it that is public from the <unk>.
<unk> it looks like Directionally that Australia is roughly around $440 million to $50 million.
Madian dollars, a year and growing rapidly and what that percentage is I wouldn't say and that is at or a little bit bigger than the Canadian medical system and is bigger than the German system now just the other sort of points of how you.
Triangulate that given the size of the German population, we believe that the percentage of adults in the German medical system is <unk>, 1%.
And in Canada, It's 1% now I don't have those percentage usage numbers for Australia, but that I think directionally. It's a good way to get to how do you get the size of market.
Thank you.
Question is from <unk> Chen of BMO capital markets. Please go ahead.
Hi, Good evening this is Emily for Tammy.
So just sticking with the German markets, there seems to be some pro.
In the German Parliament to watch.
Maybe relaxation so.
How are you thinking about their medical program platform and rec opportunity over there at this point.
Thanks for the question So I would tell you we.
Have a quite a bit of infrastructure and people in the German market as I mentioned, we are one of three production facilities. We have an office in Berlin, we have what we believe to be a really strong GR Gia organization there so our read.
Read on Germany, We think is quite strong and we are.
Optimistic about the planned legislation to D schedule cannabis in Germany, and that will have a significant impact on patients clinicians and importantly, pharmacies accessing medical cannabis and we've seen significant changes in markets when that these scheduling happens and we've seen that.
In other places.
By the way it closely there are some important votes coming up.
In the legislature in December and January and I think importantly, we believe this will expand the overall medical component of it now as I mentioned that 0.1% of the adult population in the system versus 1% of Canada. There is a lot of upsides. The other part that maybe gets lost a little.
That is how difficult it is to be successful in Germany, and how few companies are doing that you have less than 10 companies in Germany that account for roughly 90% of medical sales. If you were to look at Canada say just rack as an example, you would have to get you know probably the 90 companies to get to the same per.
<unk> now as it pertains to your question on rack we.
We believe this is further off and I know there was a lot of optimism about what that may look like but the reality is that that has to work through the <unk> system and that's going to take a little bit longer. There has been some discussion about initial steps about social clubs home growing possession limits that would sort of expand it but I would tell you.
It's our belief that most of the progress that youll see in Germany will be on the medical side. The other part of Germany is it has a lot of influence on Poland, which is very quickly becoming a significant market on that we're comforted by the fact that while not every country is going to have the same regulations. There is a coalescing.
Around commonalities in testing labeling manufacturing standards and as I mentioned before on the medical side. There has been no prohibition of importing EU GMP products out of Canada.
As an example, I know you can have a huge E&P in other countries, but that creates a lot of efficiencies and really makes the list of winners in a market like Germany would be a short one we won't be the only one but will definitely be one of them.
Thank you Sir.
Ladies and gentlemen reminder, if you do wish to ask a question you May Press Star then one to join the queue.
Our next question is from Eric the tricks of ATB capital markets. Please go ahead.
Hi, This is Eric Lucas and for Frederico Gomez. So I'm, just wondering you've seen quite a nice improvement in gross margins this quarter.
Is that largely a function of just the higher medical mix or are there kind of other efficiency I'm right here. Thank you.
Yes. Thanks for the question so I'll take that up and then Miguel can add if needed.
Got kind of all the leaders of our company and moving in the right direction, we have invested significantly in centralization and efficiencies in the production assets in Canada as you know over the last two or three years, we've gone through a significant transformation, but a big part of that was to gain the efficiencies of scale in production.
And really focus on those on driving costs out of the systems. Our unit costs. In particular same time, we've been realizing the benefits of the investments in science and genetics and so the yields coming on.
Out of out of the system right now on the flower side continue to impressive producer.
Producing quality flower.
With desirable attributes III, whether its high potency or interesting terpene profiles and doing that with the yields increasing point.
<unk>.
60% or better over some of our legacy cultivars means we get much more out of our facility in our unit cost of game going down so that fundamentally underpins an improvement in our in our.
Margins of course, Youre right as we get more and more into the medical sales and become a bigger and bigger part of our business.
They will definitely.
A high average selling prices are definitely contribute to the increasing margin. So we do expect to see that continue to move in that direction.
As we said we finished the Nordic.
Closure and Thats, a big piece of bringing that production back to Canada.
Supply in Europe from Canada, you think.
See our margins in Europe continued to improve over the next while as well. We go yes, I guess the other thing is we focus on the margins and so as we've stated our goal is to be free cash flow positive and then continue to grow that you cant do that just on the top line growth. We've seen that be attempted you really have to.
Make money and what you do so we walk away from unprofitable categories, we walk away from unprofitable geographies and we focus on those geographies, where we can make money. The other aspect of medical cannabis is those margins are no no pun intended a very sticky because the taxes and the economics for the wholesaler and the pharmacy.
It's come off that wholesale list price and much of this business isn't a reimbursed model. There is not the compression that you would see say in traditional rack businesses and so we've seen very steady margins throughout that overall system and if you look at traditional pharmaceutical businesses, while we like our $62 65 margin Thats.
White low.
There so I think it's.
It takes a lot of work and some of them are focused on and we think it's a key cornerstone that differentiates <unk> from our competitors is that focus on profitable high margin business.
Okay.
Thank you, Sir ladies and gentlemen, we have reached the end of the question answer session and I would like to turn the call back to Miguel Moore for closing remarks.
Well listen I want to thank everybody for their time and their interest in Aurora. This has been an incredible three years to get us where we are and we're nowhere near where we think we can get and so we're proud of what we've done this quarter. We know it's just one of many quarters to go and we look forward to sharing that story with all of you I hope everybody is safe and.
Good evening, Thanks, a lot.
Thank you very much.
Ladies and gentlemen that concludes today's conference you may disconnect. Your lines at this time and thank you for your participation.
Okay.
Okay.
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Yes.
Okay.
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