Full Year 2023 Global Crossing Airlines Group Inc Earnings Call

Operator: All right, people are being admitted, but we are going to get underway. Thanks to those of you who have signed up today to attend this webinar. Obviously, there are many new faces on this webinar.

People are being admitted but we are going to get underway. Thanks to those of you know we've got a large number of sign ups today for attending this webinar.

Obviously a.

A new face on this webinar I'm Grant Howard President of the Howard Group and number of you are familiar from pass Webinars with Brian Goepel, who is also now president as well as CFO and COO.

Grant Robert Howard: I'm Grant Howard, president of the Howard Group, and a number of you are familiar from past webinars with Ryan Goepel, who is also now president, as well as CFO, and Christopher Jamaraz, who is the new executive chairman of Global Crossing Airlines. As everyone knows, there was a recent management change. So, a good way to start, I think, even though a number of you are familiar with Ryan in particular, is you may not fully appreciate the depth of his experience and certainly his assuming the president role as well for global action, and Chris, who has extensive experience, who is now executive chairman. So I'm going to ask both gentlemen.

Christopher Jammer is who is the new executive chairman of global crossing the airlines as everyone knows there was a recent management change.

So a good way to start I think even though a number of you are familiar with Ryan in particular is you may not fully appreciate the depth of his experience and is certainly is assuming the president role as well for global acts and Chris our extensive experience through this.

Now executive Chairman, so I'm going to ask both gentlemen to kick this off by providing a little bit of bile on themselves just to help out the attendees and there are a number of them here and then we're going to get into the year end financial results presentation and on that point gentlemen, congratulations on another.

Grant Robert Howard: And I'm going to kick this off by providing a little bit of a bio on each of them just to help out the attendees, and there are a number of them here. And then we're going to get into the year-end financial results presentation. And on that point, gentlemen, congratulations on another record revenue year. So with that, Ryan, I am going to hand it over to you and to Chris.

A record revenue year, so with that Ryan I am going to hand, it over to you and to Chris.

Chris Janos: Thank you very much, Grant. Nice to meet everyone and thank you for such an interest and the time you guys are taking to learn more about our story. I'm Chris Janos.

Thank you very much.

Nice to nice to meet you everyone and thank you for.

Such interest in time, you guys taking into learning more about our story I'm, Chris Jonathan <unk>.

Chris Janos: I'm Executive Chairman of Global Crossing, airlines. I am a serial logistics entrepreneur. I've run nine logistics platforms across all modes of the supply chain, including two Part 135 airlines, including the largest one in the country, Comair Flights, as well as Part 121 and 135 USA Jet. I've completed seven successful exits for the shareholder teams and management group over that time of those nine platforms. The remaining two are still under my purview, with Global Crossing being the latest addition to my portfolio.

As chairman of global.

But we're crossing airlines.

I am material logistics into printer I, Brian now nine logistics platforms across all modes of supply chain, including too.

Part 135.

Airlines, including the largest one in the country crime air flights as well.

121, and 135 USA jets.

I've completed seven successful exits for the shareholder teams and management groups over the time of this nine nine platforms. The remaining two are still under my purview with global crossing being the latest edition to Tim.

To my portfolio.

Chris Janos: I'm very excited about the operation. I've led the transformative investments into the airline pre-certification in 2021, which makes me, I think, the person who wrote the biggest equity check to date. I'm not the largest shareholder, but given the valuation that we entered into, I think I wrote the biggest equity check, which makes me a very vested shareholder and a stakeholder in the success of the business.

Very.

But the operation.

Let the transformative investments into the airline pre certification in 2021.

Makes me I think the person who will grow up to biggest equity check too.

To date, I don't I am not the largest shareholder but given the valuation that we entered into I think I wrote the largest equity check, which makes me very vested shareholder and stakeholder and success of the business.

Chris Janos: I'm very excited to be here. I'm going to walk you through, with the help of Ryan, who is president and extremely well-deserved, and I want to take the time to congratulate Ryan because he really has been employee number two of the business, and has become an instrumental force in helping us not only through this certification period but through the startup and fully full rollout operation and otherwise of the business, and that gives us a fantastic foundation for success that we expect to achieve this year and beyond. So I'm going to cede the floor and give the microphone to Ryan, but again, I cannot tell you how excited I am to be here.

I am very very.

Very excited to be here I'm going to walk you through with the help of Ryan who is.

Who's president and extremely well deserved and I want to take time to congratulate Brian because he really has been an employee number two of the business and has become an instrumental.

For us in helping us.

Not only through the certification period, but through startup.

For the full rollout operationally and otherwise of the business and that gives us a fantastic foundation for success that we expect to log in this year and beyond so.

Goodness the Florida.

On to Ryan, but again I cannot tell you how excited I am to be here.

Ryan Goepel: I'm obviously a long-term investor and the board observer and the board member and now executive chairman. And I am very, very grateful for your interest and, Brian. Great, thanks Chris. Again, my name is Ryan Goepel.

Although we see a long term investor in the Board Observer.

Remember now executive Chairman.

I am.

Very very grateful for your interest and time.

Ian.

Alright, Thanks, Chris.

My name is Franco Pal I was one of the first people hired back in February 2020.

Ryan Goepel: I was one of the first people hired back in February 2020, so I was here when it was just an empty shell and basically a PowerPoint presentation. I've had the honor of working with the team that we've gathered here over the last almost 4 years now, growing it to what we've grown it to today. Prior to that, I worked with an airline in Canada doing a kind of similar turnaround, going from charter to scheduled service, so I sort of saw both sides. And then before that, I had experience with the Burger King IPO, working with oil and gas companies growing them from $300 million to $3 billion. I've done multiple fundraising campaigns for some of the larger companies, such as Halliburton and Schlumberger.

So I was here when it was just an empty shell in a basically a powerpoint presentation.

I've had the honor of working through with the team that we have gathered here over the last almost four years now growing it to what we've grown it to today.

Prior to this I'd worked with an airline in Canada doing a kind of a similar Turner.

Turnaround of that billing some charter two scheduled service so I sort of saw both sides and then before that Ive had experience with the Burger King IPO.

Working with our oil and gas companies brought on $309 billion to $3 billion.

I've done multiple fundraisings for some of the larger companies such as Halliburton and Schlumberger.

Ryan Goepel: So, you know, again, I think a lot of those experiences I've had, whether it's been in construction or oilfield services or in other airlines, have served me really, really well during the last 4 years. I'm personally super excited about what we have and what we've created. I'm more excited about the team we have in place and the plans we have going forward for the rest of the year. Thank you, Ryan.

So again I think a lot of those experiences that I've had whether it's been in construction, our oilfield services or at other Airlines has served me really really well during the last four years.

I am personally Super excited about what we've got and what we've created.

More excited about the team we have in place and the plans we have going forward for the rest of the year.

Thank you Ryan so with that I think I can go through the disclosure to then do you want to do the introduction so absolutely.

Grant Robert Howard: So with that, I think I can go through the disclosures and then you want to do the introduction? Absolutely. Standard disclosure language with all public presentations, the disclaimer language for forward-looking statements. I think many people have seen these before.

Our standard disclosure language with all public presentations.

Claimant language for forward looking forward looking statements I think many people have seen this before theres a better than most of our all of our presentations before.

Ryan Goepel: These have been in most of our, all of our presentations before. I think looking through to do you want to just go through in the financial metrics or do you want to sure so Q4 was a transformative quarter for us in the press release you did see the full year numbers but we wanted to kind of highlight Q4 for us if you think about how the year's gone you know in the first quarter I was around is in the 30s second quarter is low 30s Q3 we did 42 million and then Q4 we did 53 million if you look at the EVADAR for the quarter it was 11.4 again we talk about EVADAR a lot is it helps kind of help you compare us to other airlines in the sector we have 100% leased fleet so obviously our EVADAR is very different from our EVADA whereas our EVADAR is very close to our EBIT which is our interest in tax so not as much depreciation, If you look at our progress in Q4, our EBITDA was negative 400,000 compared to the annual EBITDA of negative 15.7 million. So we will harp on the theme and we will continue to emphasize the theme is continued improvement in all financial metrics from one quarter to the next. That's our plan. That's what we're effectively targeting going forward. And I think Q4 was a great example of that for us as far as execution.

I think looking through too.

Do you have it just go through the financial metrics or do you want to sure. So.

Q4, Q4 was a transformative quarter for us.

In the press release, you did see the full year numbers, but we wanted to kind of highlight Q4 for us. If you think about how the year has gone on the first quarter.

<unk> second quarter is low thirties, Q3, we did $42 million and in Q4, we did $53 million.

Looking at the EBITDAR for the quarter. It was 11 four again, when we talk about EBITDA.

Is it helps kind of how can you compare us to other airlines in the sector. We are a 100% leased fleet. So obviously our EBITDAR.

It's very different from our EBITDA, whereas our EBITDA is very close to our EBIT, which is earnings before interest and tax depreciation.

If you look at our progress in Q4.

Our EBITDA was negative 400000.

Compared to the annual EBITDA of negative $13 7 million. So we will harp on the theme that we will continue to emphasize with Dan as continued improvement in all financial metrics from one quarter. The next that's what we're that's our plan. That's what are effectively targeting going forward and then in Q4 was a great example of that for us.

Ryan Goepel: If you want to look at the highlights for 2023 and our financial results, we guided everyone, I think one of what we said in Q3 was we're going to hit $150 million in revenue. We managed to hit $160 million, which is a 64% increase over 2022. Ariba Dar, which was $20 million, was up four times higher than it was in the prior year.

As far as execution.

So when I look at the highlights for 2023 and our financial results.

Guided to everyone I think one of the what we said in Q3 as we're going to have $150 million in revenue, we managed to hit a $160 million.

Which is a 64% increase over 2022, our EBITDAR, which was $20 million was up four times higher than it was in the prior year.

Ryan Goepel: Our block hours almost doubled from the prior year, and aircraft utilization was up 26%, and this is a key metric for us in the sense that not only are we growing our capacity by adding aircraft, which is the fleet size, but we're also using the aircraft we have more frequently and pushing more hours on the aircraft every month, and that's a key metric for us to drive profitability and something that we monitor quite closely going forward. Moving forward, you know, talking about flight block hours and quarterly revenues, and what I really want to highlight on this slide is, you know, we've emphasized in the past. We're not necessarily an airline per se. We're more of a service company, and like many service companies, there are seasons. And I think that it's no different for us.

Our block hours almost doubled from the prior year.

And aircraft utilization was up 26% and this is a key metric for us in the sense of not only are we growing our capacity by adding aircraft, which is the fleet size. We're also using the aircraft we have more frequently.

And pushing more hours on the aircraft on every month and Thats, a key metric for us to drive profitability and something that we monitor quite closely going forward.

Pushing forward and I'm talking about we talked about slight block hours in quarterly revenues and what I really want to highlight on this slide as is.

We've emphasized in the past, we're not necessarily an airline per se. We're more of a service company. Unlike many service companies their seasons and I think thats no different for US I think one of the things we need to highlight the difference between Q3 and Q4 Q3 is what I would refer to as our high utilization low low rates season, and whereas Q4 is our low.

Ryan Goepel: I think 1 of the things we need to highlight is the difference between Q3 and Q4. Q3 is what I would refer to as our high utilization, low rate season, whereas Q4 is our lower utilization, higher rate season. And really that's exemplified by the work we send to Europe. So, for Q3, we'll send our aircraft to Europe operating high hours on a monthly basis. And then on the rate wise, the rate tends to be lower.

Utilization higher rates season, and really thats exemplified by the work we sent to Europe. So for Q3, we will send our aircraft to Europe.

Operating <unk>.

Hi hours on a per monthly basis, and then on the rate wise the rate tends to be lower as an airline comes to us on a customer comes to us and guarantees us more hours in a month.

Ryan Goepel: So, if an airline comes to us and a customer comes to us and guarantees us more hours in a month, we will, in exchange, price that lower. Now, the flip side in Q4, what you've seen is we use, we fly fewer hours per month on a pair of aircraft, but we charge more per hour. And I think 1 of the big things you'll see, there's a bit of seasonality in Q4 compared to last year.

We will then exchange price that lower now on the flip side in Q4, what you've seen is we use we fly fewer hours per month on empower aircrafts, but we charge more for Alan and I think one of the big things Youll see Theres a theres seasonality.

Seasonality in Q4 of last year, you saw a similar kind of increase.

Ryan Goepel: We saw a similar kind of increase. But not only are we growing our capacity quite rapidly, but we're also still pushing through price increases, which we think is, again, another key metric. I think 1 of the emphasises we have going forward is tying everything to metrics, tying everything to what can be measured and holding people accountable for it. So, again, 1 of the things we keep emphasizing is that we are growing our capacity, growing our block hours, we're pushing pricing, and we're going to continue to grow the airline in that way. Moving forward to the next slide, we've talked about this before as our KPIs, and this kind of drives it home again when you look at the block hours per month.

Not only growing our capacity quite large we're also still pushing through price increases, which we think is again another key metric I think one of the emphasis we have going forward is tying everything to metrics tying everything too.

What can be measured and holding people account our team accountable for it so again.

One of the things we keep emphasizing is we're growing our capacity garner block hours or pushing pricing and we're going to continue to grow the airline in that way.

Moving forward to the next slide we've talked about this before is our Kpis. This kind of drives and home again when you look at the block hours per month, and I think if you look on the top left corner you can sort of see how youll see a big spike in the total block hours per month.

Ryan Goepel: And I think if you look in the top left corner, you can sort of see how you see a big spike in the total block hours per month in July and August. You will see that again in Q3 as we deploy assets to Europe. You know, with the growing capacity in Q4, again, the block hours aren't as high as in the summer, but the rate per hour is. Also, most importantly, as you can sort of see how we're managing the block hours per month per tail, that's your utilization. As it was always pushing that higher.

July and August you will see that again, this Q3 as well as.

As we deploy assets to Europe.

With the growing capacity in Q4 again, the block hours aren't as high as in the summer, but the rate per hour is.

Also most importantly, as you can sort of see how we're managing the block hours per month per tail, and thats, where utilization is always pushing that higher.

Ryan Goepel: We talked about the pilot pool. As you can see, from January 23, 43 active pilots to 100 by December 23, 36 in training to 46 in training. We have made a significant investment in 2023 as it relates to pilots and pilot training and pilot hiring, and we've really done our best to prepare ourselves for the delivery of aircraft, which we're now starting to take delivery of. I think, objectively, we were probably ahead of the curve on that, but at the mark that we were in, and given the need for the difficulty of recruiting pilots, you kind of took the pilots as you could get

Talked about pilot pool.

As you can see from January 23, 43 active pilots to 100 by the December 23.

<unk> 36 in training to <unk> 46, and training we have made a significant investment in 2023 as it relates to pilots and pilot training and pilot hiring and we've really done our best to prepare ourselves for the delivery of aircraft, which are now starting to take delivery on.

I think objectively we were probably ahead of the curve on that but in the market. We are in and the need for the difficulty of heart recruiting pilots you kind of took the pilots as you can get them.

Ryan Goepel: What you'll see going forward, I think for 24, is we'll be a little more measured in that growth of the pilot pool as we would have that closer tied to the deliveries as the aircraft come in. And again, the bottom right just shows the increased capacity of net aircraft days per month. So, again, we'd love to see everything go up to the right.

What youll see going forward I think for 'twenty four it will be a little more measured in that growth of pilot pool as we would have that closer tied to the deliveries as the aircraft come in.

And again the bottom right just shows the increased capacity of net aircraft days per month. So again, we'd love to see everything go up into the right, we'd like to see growing trends and we believe this is these are kind of the key metrics that we've been measuring and I'm looking forward to.

Ryan Goepel: We like to see growing trends, and we believe these are kind of the key metrics that we've been measuring and working forward to. If you look towards our vision going forward, and Chris, at any time you want to jump in on these, please let me know, what we want to really emphasize is what are we saying? We're trying to simplify the story for not only our investors but our employees. And what are we going to target? And these are kind of the four kinds of mantras that we're targeting.

If you look towards our vision going forward and Chris and anytime you want to jump in on these please let me know.

What we want to really emphasize is what do we say we're trying to simplify the story for not only our investors, but our employees and what are we going to target and these are kind of the four kind of mantras that we're targeting continual improvement in all financial metrics. So.

Ryan Goepel: Continuous improvement in all financial metrics. So, you know, a lot of people are looking for outlooks and then forecasts. I think what we're just simplifying it is that we want to be better every day.

A lot of people are looking for.

Outlooks and forecast I think what we're just a simplified as we want to be better every day, we want to be better on margin. We wanted to be better in profit we want to be better a revenue we want to be better on cost management and that's really the path, we think to improvement and the path to getting to the numbers, but everyone's hoping for us to capture.

Ryan Goepel: We want to be better at margin. We want to be better at profit. We want to be better at revenue. We want to be better at cost management. And that's really the path we think to improvement and the path to getting to the numbers that everyone's hoping for us to capture. You can't, you know, boil the ocean, but you can fix one thing every day.

You cant boil the ocean, but you cant fix one thing everyday are.

Ryan Goepel: A great example is today we renegotiated a courier rate to save 88% on courier, an 88% discount where before we were getting a 10% discount. If I do a hundred contracts like that, our cost structure will get better every day. And so really empowering the team to go find all the different areas where they can either find efficiencies or take advantage of our improved scale, which will result in an improvement of all financial metrics. The second thing we're talking about is setting the industry high standard for on-time performance, reliability, and profitability. We talk about on-time performance for a very simple reason: if you leave on time as an airline, that means everybody has done their job. Everyone from dispatch, from maintenance, from the pilots, from finance, from everywhere. If you want to, if you leave on time, that's the ultimate measure that you've left, that you've done everything right.

A great example is today, we renegotiated a courier rates if you take the 88% on courier and 88% discount where before we're getting a 10% discount to a 100 contracts like that our cost structure will get better every day and so really empowering the team to go find all the different areas, where they can either find efficiencies take advantage of our increased scale, which will result in improvement of our financial metrics.

<unk>.

The second thing we're talking about is setting the industry high standard for on time performance reliability and profitability.

How about on time performance for very simple reason that the few leave on time as an airline I mean, everybody has done their job everyone from dispatch from maintenance from the pilots to from finance from everywhere. If you want to if you leave on time, that's the ultimate measure that you've left that you've done everything right. So by simplifying the message to the team.

Ryan Goepel: So by simplifying the message to the team that on-time performance matters and on-time performance is critical, that's what the expectations are of our customers, and that's what we're creating for our team. What that does feed is if you leave on time, you become more reliable. If you're more reliable, you become more profitable. And it's really those stepping stones and building that infrastructure and that into our DNA going forward as we scale and get larger. When we started, you know, in August of 21, we had two or three flights a day. And it was the ability of a couple, you know, superhuman efforts as people in the company can make sure everything happens on time. We're now doing 40 to 50 flights a day. You can't rely on any one person to make it work.

That on time performance matters and on time performance is critical.

That's what the expectations are of our customer and Thats the expectations, we're creating for our team.

It does feed as you believe on Tom you become more reliable and more reliable you become more profitable and it's really those stepping stones and building that infrastructure in that into our DNA going forward as we scale and get larger when we started.

In August of 'twenty, one we would have two or three flights a day and it was the ability of a couple superhuman efforts as people in the company can make sure everything happens on time, we're now doing $40 to $50. Today, you can't rely on any one person to make that work. So you got to have the team team driving that.

Ryan Goepel: So you got to have a team driving that. And driving it, for example, is the scale. You know, we want to be the largest 121 narrowbody operator, targeting 35 aircraft by the end of 2026. We think that's a realistic growth target. We think that's the target that not only the DOT will allow, the FAA will allow, and our sales team can address by going forward. If you think about where we are today with 15 aircraft, we have three aircraft flying for a subservice because we've actually oversold. And I think that kind of goes in where you talk about the passenger market versus cargo, that there are two very different kinds of markets for us.

And driving this for example is the scale, we want to be the largest 121 narrow body Audi operator targeting 35 aircraft by the end of 2020.

We think that's a realistic growth target, we think that split target to get not only the DLT will allow the FAA to allow and our sales team can address by going forward. If you think about where we are today with 15 aircrafts. We have three aircraft flying for a sub service because we've actually oversold.

That kind of goes into where you talk about the passenger market versus cargo.

There are two very different kind of markets for us we've been in the passenger business. Since August of 2021, there's a lot of incredibly positive market dynamics going on in passenger market, which is seeing incredible demand, which is one of the reasons. We're so oversold. So when you're thinking about what we're focusing on the passenger business is really managing our capacity sounds like a big game of Tetris, how can we make sure.

Ryan Goepel: We've been in the passenger business since August of 2021. There are a lot of incredibly positive market dynamics going on in the passenger market, which is seeing incredible demand, which is one of the reasons we're so oversold. So when you think about what we're focusing on in the passenger business, it's really managing our capacity. It's almost like a big game of Tetris.

Ryan Goepel: How can we make sure every aircraft is flying every day for the best possible rate at the best possible time? And that's a real exercise that we're doing in passenger transport. On the cargo side, you know, we've only been in the cargo business for a year, and we are developing that business. You know, we're coming to the market with a brand new piece of equipment that no one else in North America has seen before. If you think about the cargo market in the US, it's all Boeing based.

For every aircraft defying everyday for the best possible right at the best possible time, and Thats, a real exercise that were doing in pasture on the cargo side, we've only been in the cargo business for a year.

We are developing that business, we're coming to the market with a brand new piece of equipment that no one else in North America has seen before if you think about the cargo market in the U S. It's all Boeing based where the first Airbus platform, that's really effectively in the narrow body space.

Ryan Goepel: We're the first Airbus platform that's really effective in the narrow body space selling cargo. So, we've really tried to refocus the cargo team on doing what they can to grow the demand to match the deliveries that we have of the aircraft that have been coming. And so, and really, like I said, we see an incredibly strong pasture market, we see high demand, we see supply shortages, a lack of capacity in the business, which is allowing us to grow, not only rates, but expand our customer base. And then on the cargo side, we believe there's a long, we believe long term, this is with the metal we have, we're in a very good place to not only grow that And I think going through to that, you know, I think Chris, I don't know if you wanted to cover some parting words, but those, And keep the story simple and really focus the company on this is how we're going to grow to be a profitable entity as quickly as possible. That's where the focus is. Thank you, Ryan.

<unk> cargo. So we've really tried to refocus the cargo team on doing what they can to grow the demand to match the deliveries that we have of the aircraft that have been coming.

And so and really like I said, we see incredibly strong passenger market.

C. A high demand, we see our supply shortages of lack of capacity in the business, which were allowing us to grow not only rates, but <unk>.

Expand our customer base and then on the cargo side. We believe there is a long we believe long term. This is with the metal we have.

We're in a very good place to not only grow that business, but make it very successful.

And I think going through to that.

Chris I don't know if you wanted to person party warrants with those.

To keep the story simple and really focused the company on this is that we're going to grow to be a possible Eddie as quickly as possible.

That's why the focuses.

Thank you, Brian I think there would be a good time to open the floor to any questions from my house.

Operator: I think it would be a good time to open the floor to any questions you may have, and that could contextualize the rest of the time we have dedicated to this exercise. Okay, then we will do that. Just a reminder to the attendees: at the bottom of your screen, there's a Q&A button. If you would submit your questions to that, please.

That could contextualize the rest of the time we have.

<unk>.

Two <unk>.

Okay. Then we will do that just a reminder to the attendees at the bottom of your screen. There is a Q&A button. If you would submit your questions through that please.

Operator: And just in case we haven't got to all of them, I anticipate we may not get to them all. And if we don't get to your question, would you please email it to Jeff at Howard Group, Inc., dot com, Chris and Ryan.

And just in case, we have.

A lot of guidance.

I anticipate we may not get to the mall and if we don't get to your question would you. Please E mail it to Jeff.

Howard Group, Inc.

<unk> com.

Chris.

Chris Janos: I think we'll defer to Chris on this one. If you could, could you please provide a bit more color on the reasons behind the recent management transition? It's very simple.

Brian I think we will defer to Chris on this one.

You could could you provide a bit more color on the reasons behind the recent management transition.

Chris Janos: First of all, I want to open up and thank, I want to thank the former executive Ed Wegel for his Herculean efforts, in getting this airline from a stage of an idea through all the necessary certifications for navigating through the very complex. Challenging Federal Landscape of Regulatory Requirements, and the thresholds for satisfying those is very high. He's done that in record time, and we are very pleased and very thankful to him for his leadership through that formative stage of the airline. As we're going through the exercise today, we're obviously looking at our performance, looking at share price changes is good, changes welcome, and then the environment is tough, particularly when you're parting ways with people who have done so much for the operation, but we're shifting our attention in a very focused and very disciplined and concerted way towards sustaining profitability and effectively delivering returns to the equity shareholders that one of your largest shareholders here is definitely looking to see.

It's very simple.

First of all I want to open up and things.

The former executive and we go for his herculean efforts in getting this airline from a stage of an idea through.

All of the necessary certifications are navigating through the complex and challenging federal <unk>.

Regulatory requirements into thresholds for subprime dose is very high.

Got it in record time, and we are very pleased and very thankful to to him for his leadership.

Through that formative stage of the airline as we going through as we're going through.

The exercise today, we're obviously looking at.

Our performance looking at share price changes.

As good changes well come in and then the environment is tough, particularly when you parting ways with people have done.

So much for the for the operation.

Shifting our attention and are very focused and very disciplined and concerted way towards sustain.

Sustained profitability and effectively delivering.

Living returns to the equity shareholders.

One of your largest shareholder here is definitely looking too.

Chris Janos: So with huge thanks to Ed for his leadership, we're just turning the page, and we can look at turning our focus to operational excellence and sustainability going forward. And on the growth plans going forward, $7 million investment in pilot firing and training are mentioned. This is a production of NASA's Jet Propulsion Laboratory, California Institute of Technology; Roughly what is to be expected going forward.

To see so with huge thanks to Ed for his leadership, which is turning the page and we can look at turning our focus to operational excellence and sustained profitability going forward.

On the growth plans going forward $7 million investment in pilot hiring and training our mentioned.

Is this roughly to be expected going forward, how are the plans to reduce the cash outflow and when will the company accrued cash instead of burn cash.

Ryan Goepel: How are the plans to reduce the cash outflow, and when will the company accrue cash instead of burn cash? You know, as it relates to hiring and training, I think we're at a really good level. We do still continue to have classes, as we know the opportunities are picking up really high-quality pilots. But I think the growth that we saw in 22 to 23, you won't see in 23 to 24.

As it relates to the pirate hiring hiring and training I think we're at a really good level of we do still continue to have classes.

As we Opportunistically are picking up really high quality pilots, but I think the growth that we saw in 'twenty two to 'twenty three.

Don't see in 'twenty three to 'twenty four I think we have the crews and pilots we need for effectively post to 18 to 20 aircraft and so until we get those on the certificate delivered an operating youll, probably see that slowed down. So you can see the impact of that would be pretty immediate too as it relates to cash.

Ryan Goepel: I think we have the crews and pilots we need for effectively close to 18 to 20 aircraft. And so until we get those on the certificate delivered and operating, you'll probably see that slow down. So you can see, you know, the impact of that would be pretty immediate as it relates to cash. Concerning customer deposits on the balance sheet, are these like bank deposits that have to be paid back to customers?

Concerning customer deposits on our balance sheet are these like bank deposits have to be paid back to customers.

Ryan Goepel: or How are they different from deferred revenue? So the difference between a customer deposit and deferred revenue is that deferred revenue is payments made for the flight, say a flight's flying in 30 days, and they pay for it in advance. Some customers, we require deposits, and you know, this will be for customers that, to reserve the plane or to hold the plane, they would generally be reconciled at the end of the contract. So they'd either be netted against the last payment, or they'd be refunded when the contract expires, or some of them are there for a considerable amount of time as the contracts kind of just kind of keep going. In the presentation, it was noted that the objective by the end of 26 is to grow the fleet to 35.

How are they different to deferred revenue.

So the difference between our customer deposits and deferred revenue as deferred revenue as payments made.

For the flight.

Say, a flight flying in 30 days and they pay for it in advance some customers we required deposits this will be for customers.

That to reserve the plan on a hold the plane they would generally be reconciled at the end of the contract so they'd either be netted against the last payment or they would be refunded when the contract expires or some of them are there for a considerable amount of time as the contracts kind of just kind of keep going.

In the presentation. It was noted that the objective by the end of 2006 is to grow the fleet to 35. The question is how many of those are expected to be the narrow body freighters.

Ryan Goepel: The question is, how many of those are expected to be narrow-body freighters? I think as we look at what the mix would be between the two aircraft, I think we'll let the market tell us what makes sense, right? So we have the ability to acquire both passenger and freighters. We are growing, you know. The potential market for freighters in North America is quite massive. You know, we do still believe it's the replacement aircraft for the 757. There are 350 757s operating in the United States.

I think as we look at what the mix would be between the two aircrafts I think we will let the market tell us what makes sense right. So we have the ability to acquire both passenger and freighter. We are growing the potential market for freighters in North America is quite massive we do still believe it's the replacement aircraft for the 757. This 350 750 <unk>.

Operating in the United States, We believe those will start to be phased out no create a huge opportunity for us going forward.

Ryan Goepel: We believe those will start to be phased out, and it will create a huge opportunity for us going forward. To predict the mix now would be probably disingenuous, but we do believe we have the ability to take that on, and I think we'll let the market dictate the mix going forward. But to be super clear, all of them will be within the narrow body airframe.

To predict the mix now would be.

Let me just in January but we do believe we have the ability to take that on and I think we will let the market dictate the next going forward.

But to be Super clear.

All of them will be within the narrow body.

Ryan Goepel: This is our singular focus as an airline. We do not anticipate expanding beyond that format. Question here about the fleet size would be at the year end. 24 and 25, So I think right now we're not projecting right now. We have 15 aircraft on the certificate. I have another one coming in the next week.

This is our singular focus as an airline we do not anticipate expanding beyond that format.

Still on the topic of the fleet.

The question here.

The fleet size would be the year end.

Four and 'twenty five.

So I think right now we're not checking right now we have 15 aircrafts on a certificate of another one coming in the next week in San Antonio its just waiting to be de registered on reregistered.

Ryan Goepel: It's in San Antonio. It's just waiting to be deregistered and re-registered. We have LOIs or leases in place for at least three more. And I think, you know, in the past, we've been trying to predict the exact date when these will show up. And I'm reminded of kind of a Rex Tillerson story from when he worked at Exxon. They asked him, what did he think the price of oil would be. He said it was somewhere between $1 and $200.

We have lois or leases in place for at least three more.

And I think in the past we've been trying to predict exact date. These will show up in.

And I'm reminded of kind of in our Rex Tillerson story when he worked at Exxon. They asked them. What do you think the price of oil will be you said somewhere between $1 $200.

Ryan Goepel: And I don't think it's that varied as it goes to deliveries, but we don't want to set false expectations as to when the deliveries will come. We are actively taking aircraft as fast as we can. We're very comfortable in our ability to put these to work.

And I think I don't think it's that varied as it goes to deliveries, but we don't want to set false expectation as to when the deliveries will town. We are actively taking aircraft to SaaS as we can we're very comfortable in our ability to put these to work and so I think we're going to be more of it our module.

Ryan Goepel: And so I think we're going to be more of a module of when it's on the ground and I see it outside my window and it's like a week away, we'll tell you it's coming. And I think that's probably a more constructive way to go forward. That being said, we are constantly in the market for adding aircraft. We have several aircraft we have committed to be delivered, and we're continually looking for additional aircraft. I'm going to throw a question in regarding the presentation.

When it's on the ground in Ics outside my window, and it's like a week away. We will tell you its comment and I think.

That's probably a more constructive way to go forward that being said we are constantly in the market for adding aircraft.

Several of our aircraft, we have committed to be delivered.

And we're continually looking for additional aircrafts.

I'm going to throw a question.

The rest of the presentation.

Operator: You were talking about being oversold, and you and I have talked about this in the past, where, based on the number of contracts and clients that your team is securing, you don't have enough aircraft on the passenger charter side, so maybe a little color on why you folks are so successful. I don't want to be too much of a softball question here, but when you look at the metrics, if you're having to go to other carriers to actually service the contracts that you're nailing.................................................................................

You were talking about being oversold, and you and I have talked about this in the past.

Based on the number of contracts and clients that your team is securing you don't have enough aircraft on the passenger charter side. So maybe a little color on why you folks are being so successful I don't want to be too much of a softball question here, but when you look at the metrics if youre.

Having to go to other carriers to actually service the contracts that Youre nailing.

And you could use more planes right now can you add some color to all of that situation, yes, I would say that in the first two months of this quarter. We had two airlines who provided a sub service from March we have four aircrafts that are going to be working for us and what I would call sub service.

Operator: Yeah, I would say that in the first two months of this quarter, we had two airlines who provided a subservice. For March, we have four aircraft that are going to be working for us in what I would call subservice operating contracts that we have secured that had we had our own metal on the tarmac, we could have serviced ourselves, but it also allows us to not have our sales guys can't say no in the sense that if they can close And then we will figure it out.

Operating contracts that we've secured that had we had our own metal on the tarmac, we could've serviced ourselves.

But it also allows us to.

Our sales guys can say now.

In the sense of let's say if they can close a contract they're going to close it and then we figure it out and and what it is is it's establishing relationships with more and more vendor customers.

Ryan Goepel: And what it is, is it's establishing relationships with more and more vendors and customers, it's providing, you know, working through our partners to provide the service. So as our aircraft do get delivered, we have, you know, ready-made customers we can rotate our metal into. So I think it's indicative of how strong the demand is, and I think how effective our sales group has been at securing the work. And I think we're going to continue to use that as a tool for us to kind of be the leading indicator of growth. Because the last thing we want to do is say no to a customer who's willing to pay for a flight. So on the topic of aircraft, how many are in service now? What have you got on the line and maintenance, et cetera?

Providing working through our partners to provide the service so as our aircraft you get delivered we have already made customers, we can rotate our metal into subtle.

It's indicative of how strong the demand is I think how effective our sales group has been at a securing the work.

And I think we're going to use that as a tool for us to kind of be the leading indicator of growth because the last thing we wanted to say no to a customer who's willing to pay for a flight.

Still on the topic of aircraft how many are in service now would it be got on the line and maintenance et cetera.

Ryan Goepel: So we have 15 aircraft on our certificate as of yesterday; we have one aircraft that's currently going through a six-wide check, which is a check you do every six years. We've had an aircraft in heavy, what we call heavy check, since January. We've had multiple.

We have 15 aircraft on our certificate as of yesterday, we have one aircraft that is currently going through a supply of which has a.

Check you to every six years.

We've had an aircraft in heavy what we call heavy checks since January we've had multiple so we have one right now which should be coming out hopefully in the next five to 10 days and then we have one more going in in April for 30 days.

Ryan Goepel: So we have one right now, which should be coming out, hopefully in the next five to 10 days. And then we have one more going in in April for 30 days. But right now, it's 15.

Operator: Change of topic, in regards to the Archer partnership, if I'm correct, wasn't that the electric taxi partnership? We had an agreement, it wasn't with Archer, it was with EVE, and I think if you think about what the company is focusing on, the company is focusing on projects and initiatives that will generate profit today. That was a very long term play, that's a longer term play, and so as of right now, the focus of the management team is 100% on near-term profitability and narrow-body charters, which is our core business. Speaking of profitability, a question here about when are you anticipating to get to profitability or sustained profitability and some net positive income? I think we will, you know, one of the things we're trying to get away from is overpromising and underdelivering. I think we've made a lot of statements about that in the past. Let us try it, and we'll tell you.

But right now it's 15.

Grainger topic regards to the Archer partnership if I'm correct wasn't that the electric taxi partnership.

We had an agreement wasn't with Archer it was with <unk>.

And I think if you think about what the company is focusing on the company is focusing on projects and initiatives that will generate profit today.

That was a very longer that's a longer term play.

So as of right now the focus of the management teams are 100% on near term profitability and narrow body charters, which is our core business.

Speaking of profitability question here about when are you anticipating to get to profitability or sustained profitability and some net positive income.

I think we will.

One of the things, we're trying to get away from this over promising and under delivering I think we've made a lot of kind of statements about that in the past.

Let us execute and we'll tell you.

Ryan Goepel: An individual is here asking for an update on the status of the new head office and the hangar facilities at Fort Lauderdale. As of right now, we're kind of focusing on the core business, which is flying narrowbody charters, and if it's not an activity that generates revenue or profit for that, then it's not being focused on right now. Question: What is the status of N1438? It has been repaired, fixed, and it's going through what we call a six-month maintenance check because it's been parked for two months having a door repair on it. It should be flying in revenue service this week or early next. And sorry, was that a passenger or was that one of the freighters? That's one of the freighters.

Individual here asking for an update on the status of the new head office in the hangar facility is at Fort Lauderdale.

As of right now again, we're kind of focusing on the core business, which is flying.

Flying narrow body charters and if it is not an activity that generates revenue or profit towards that and it's not being focused on right now.

Question on what is the status of <unk> 438.

It is been repaired fixed and it's going through what we call a six month <unk>.

Going through a series of maintenance techs, because it's been parked for two months coming out of door repair on it.

Should be flying in revenue service this week or early next.

Sorry was that it was a passenger or was that one of the creators that's one of the freighters. Okay. Thank you.

Ryan Goepel: Thank you. We've got somebody asking for a crystal ball here, but you probably won't go near this, but can you give us an idea of how cash generation unfolds across the year? And what does a 35-aircraft revenue and cash flow business look like? Yeah, you're right. I'm not going to go near it.

Somebody asking for a crystal ball here, but you probably won't go near this but can you give us an idea of how cash generation unfolds across the year.

What does a 35 aircraft revenue and cash flow business look like.

Yes, you are right now.

Ryan Goepel: I appreciate the question. But I think if you kind of look at what our revenue consists of and, and, and kind of how, if you go through, the answers are in our financials, and you can extrapolate that, as you see, we definitely feel we're getting to that point, and you can see, we talked about gradual improvement quarter over quarter, and all financial metrics, and a big driver that is adding capacity and revenue. And as you do that, you achieve scale.

I'm not going to go near it I appreciate the question.

But I think if you kind of look at what our revenue per tail end.

And kind of how if you go through the answers are in our financials and then you can extrapolate that as you see.

We definitely feel we're getting to that point and you can see we talked about gradual improvement quarter over quarter, and our financial metrics and a big driver that is adding capacity and revenue and as you do that you achieve scale.

Ryan Goepel: A forecast of 50 aircraft by the end of 2026 has been the target for a number of years. You're now forecasting 35, which is a significant drop. What comfort can you provide shareholders that you will meet these new targets, and how does this impact your plans to obtain a U.S. update? I don't actually think whether we hit 35 or 50, it doesn't make a difference on an uplist.

Our forecast of 50 aircraft by the end of 2026 has been the target for a number of years. You are now forecasting 35, which is a significant drop what comfort can you provide shareholders that you will meet these new targets and how does this impact your plans to obtain.

The U S uplift.

Okay.

And actually whether we hit 35% or 50, I don't think it makes a difference on an uplift I think were a substantial organization at significantly lower than 30 aircraft.

Ryan Goepel: I think we're a substantial organization at significantly less than 30 aircraft going forward. I think what we want to emphasize for the company and for the investors is what's the number we can grow to 50 really fast, but you'll sort of see what we saw last year, where you have to make huge upfront investments. I would rather invest; I'd rather grow through our own cash flow and use positive cash flow versus outside money. And we think getting to 35 is a much more measured and much more achievable growth target. And if you think about what we've done, you know, from last year to this year, growing 60% through to growing 60% a year for the next three or four years, we should be able to hit that target quite easily. First, congratulations on a spectacular quarter. I noticed that travel expenses were up significantly in Q4. I expect this was the result of the additional ice hours.

Going forward I think what we want to emphasize for the company and for the investors.

What's the number we can.

You could grow to 50 really fast, but you'll start to see what we saw last year, where you have to make huge upfront investments I would rather invest I'd, rather grow through our own cash flow and use positive cash flow versus outside money and we think getting to 35 is a much more measured and much more achievable growth target and if you think about what we've done from.

From last year to this year growing 60% beer to grow 60% a year for the next three or four years, we should be able to hit that target quite easy.

First congratulations on a spectacular quarter I noticed the travel expenses were up significantly in Q4 I expect this was the result of the additional <unk> is there a plan to open a new hub in order to minimize travel expenses, yes, we've actually started the process of opening three.

Ryan Goepel: Is there a plan to open a new hub in order to minimize travel expenses? Yeah, we've actually started the process of opening three hubs where a lot of those flights are coming from, which significantly curtails travel expenses. And that's been in process now for a couple weeks, and we're looking forward to seeing the end result. You'll also probably see a drop in travel expenses in the third quarter because we send a lot of our crews to Europe, and those travel expenses under those contracts are covered by the customers. Next question is specifically for Chris: what will you do differently to attract institutional investors and grow the retail investor pool? I think people want to play on a winning team.

<unk> for a lot of those flying is coming from which should significantly curtail the travel expenses.

And thats been in process now for a couple of weeks and we're looking forward to seeing that end result, Youll also see probably a drop in travel expenses in the third quarter, because we spent a lot of our crews to Europe and those travel expenses per those contracts are covered.

By the by the customers.

This question is specifically for Chris what will you do differently to attract institutional investors and grow the retail investor pool.

People want to play on the winning team some of the key objective towards this to become a winning team which means you have to get to this point.

Chris Janos: So the key objective for us is to become a winning team, which means you have to get to this point of sustained profitability. Airlines who do not produce cash and positive returns do not tend to be in business for very long. We take stewardship of our money and your money very seriously, as you probably sense from the discipline that we introduced over the last five weeks, the change in stewardship at the top, and we expect to attract interest through performance. Stay tuned. It's an extremely good question, but we will focus on running the business to the point that we achieve our objective. Thank you. So the employees, there are around 700 employees now, from, you know, zero in 2020. Crews per aircraft are around four, which is probably a little heavy for low utilization flying. But when you go to Europe, you need five crew members per aircraft.

A sustained profitability airlines, who do not produce cash.

Positive returns do not tend to be in business for very long, we take stewardship of our money and your money to grow seriously as you probably sense from a discipline that we introduced over the last five weeks since the changeover.

Stewardship of the chart, we expect to attract interest through performance.

Stay tuned.

It's extremely great question, but we will focus on.

On running the business to the point that we achieved our objectives.

Thank you how many employees are you now and how many crews per aircraft are you using.

So the employees printing to around 700 employees now up from zero in 2020 on crews per aircraft.

Around four which is probably a little heavy for low utilization flying but when you go to Europe do you need to unify <unk> aircrafts. So.

Ryan Goepel: So we're close to four active crews per aircraft right now. How many crews have been trained for $7 million? From that perspective, it would be, I'm trying to think off the top of my head, about 30.

We're close to four active crews per aircraft right now.

Being a cruise how many crews have been trained for $7 million.

From that perspective, it would be sort of trying to think off the top of my head of 30.

Ryan Goepel: Why is the aircraft fuel cost so substantial? Doesn't the charter customer pay for everything? Yes, and so while you'll see fuel on our income statement, you'll also see a corresponding increase on the revenue side. So when you look at our K, we talk about our charter rates per hour and our ACMI rates per hour. So ACMI does not include fuel, and you'll see that rate is closer to around $5,000. On average, I think in the quarter, when you look at the average charter rate, it's around $13,000 or $14,000, and that's where the fuel comes from.

Why is aircraft fuel cost so substantial doesn't the charter customer pay for everything.

Yes, and so while you'll see fuel on our income statement Youll also see a corresponding increase in the revenue side. So when you look at our K, we talk about our charter rates per hour and our <unk> rates per hour. So ACI does not include fuel and youll see that rate is closer to around 5000.

On average I think in the quarter. When you look at the average charter rate its around 13 or 14000.

Ryan Goepel: So from a P&L standpoint, there's a slight bit of margin in there, but when you see fuel go up, you'll see a corresponding increase in revenue. Do you plan to issue 2024 guidance at some point? Yes. Thank you. Just not today.

And Thats, where the fuel comes from so from a P&L standpoint, there is a slight bit of margin in there, but when you see fuel go up you will see a corresponding increase in revenue.

Alright, do you plan to issue 2024 guidance at some point this year, yes.

Ryan Goepel: Great, or the Global Crossing. Thank you. Thank you for having us. Thank you for joining us. Thank you. Have a great day.

Okay.

It does not today.

Great.

General question again about NASDAQ, but what is the vision of the new management team about uplifting.

Operator: Thank you. Thank you. Thank you. Thank you.

Ryan Goepel: General question again about NASDAQ, but what is the vision of the new management team about? I think from our perspective, you know, with the size we aspire to be and the operation we aspire to be, needing to be on a larger net, whether it's NASDAQ or NYC or CVOE, exchange is, I think, a key part of our growth profile and a key part of our long-term plan. Again, as we talk about timing, as Chris said, you need to demonstrate sustainable profitability for institutional investors to be interested. It does you no benefit to just move to the exchange and hope they'll be interested.

I think from our perspective.

With the size, we aspire to be in the operation, we aspire to be.

Im needing to be on a larger Netherlands, Nasdaq or NYSE at CBOE.

Change is I think a key part of our growth profile and key part of our long term plan.

Again, as we talked about timing as per said you.

You need to be you need to demonstrate sustainable profitability for the institutional investors to be interested it does you know as you know benefit to just move to the exchange and hope there'll be interested.

Ryan Goepel: And so I think we can control our operation, we can control our focus, and focusing on all the activities that will drive profitability will get us there quicker. You know, I think there's a general consensus, I think Chris can agree, from the shareholders here, which I am, and Chris is one, that ultimately that's where we want to get to. And I think it's a clear target or goal, but we also need to do it in a thoughtful way. I like the fact that the business strategy will be focused on passenger transportation. What will happen to the ongoing projects? Ed Wegel was leading, for example, eVTOL in Miami, the flight sharing app, etc.

And so I think we can control our operation, we can control our focus and focusing on all the activities that will drive profitability will get us there quicker I think there's a general consensus I think Chris can agree.

Shareholders here, one of which I'm one Chris is one that.

And that ultimately, that's where we want to get too.

And I think it's clear target our goal, but we also need to do it in a thoughtful way.

I like the fact that the business strategy will be focused on passenger transportation what will happen to the ongoing projects at wiggle was leading for example, EV tall in Miami, the flight sharing app et cetera.

Ryan Goepel: Well, I think, as we said, the focus is, is it going to make us money this year? And if the answer is no, then we're not funding it. You know, there's no need to; there's nothing really to shut down or stop doing.

Well I think as we said the focus on is it going to make us money this year and if the answer is no.

We're not funding it.

There's no need to there's nothing really to shut down or just stopped doing I think those projects for <unk>.

Ryan Goepel: I think those projects are for or are much further along down the road. They're not part of our near-term plan because there is no revenue to be made from them. So it's a matter of attention.

Are much further along down the road they are not part of our near term plan.

Because there is no revenue to be made from now so it's a matter of attention. There's only so many hours in the day for our team to focus on and the mantra. We've kind of said is does that generate is that focus on narrow body charter work does it generate near term profit. If the answer is no do not do it.

Ryan Goepel: There are only so many hours in the day for our team to focus on. And the mantra we've kind of said is, does that generate does that focus on narrow body charter work? Does it generate near-term profit? If the answer is no, do not do it.

Ryan Goepel: I believe you have not met certain covenants in 2023. Have these been renegotiated with LEND? I believe we have. Any updates on contracts with the government, TUI, ICE, teams, and others? I think, you know, for TUI. We'll be flying for them this summer. That is, it's a part of our three-year arrangement we have with TUI. We're looking at several different options for other European operators for the summer. I think from the government side, we have between six and eight aircraft working on government work, and then you can track that through the flying that we're continuing to do. Sports teams, we've had a really good sports season.

Okay.

I believe you have not met certain covenants in 2023 have these been renegotiated with lenders.

I believe we have.

Any updates on contracts with government T Y ice teams and others.

I think for TUI will be flying for them. This summer that is.

That's a part of our three year arrangement, we had with <unk>. We're looking at several different options for other European operators for the summer I think from the government side.

Having between six to eight aircraft working on government work and then you can track that through the flying.

And that we're continuing to do.

Our sports teams, we've had a really good sports season.

Ryan Goepel: We'll talk about that when we talk about our Q1 results on who we've worked with and what we've done on that front. We're just continuing to grow our customer base and help grow our reputation and address the growing, again, demand. When we talk about demand, this is where it's coming from. It's coming from the government. It's coming from TUI. It's coming from European carriers.

About that when we talk about our Q1 results on who we've worked with and what we've done on that on that front.

We're just continuing to grow our customer base and help.

So our reputation and address.

The growing again demand when you talk about the demand. These are where they are coming from it's coming from government is coming from Julian it's coming from European carriers, it's coming from sports teams and Thats where were working.

Ryan Goepel: It's coming from sports teams, and that's where we're working. We're going to take a couple more, and then we have to wrap it. I have global experience of an increase in lease rates due to the growing demand for A321 aircraft. Yeah, we have seen the lease rates increase for narrow body charter aircraft. We've been disciplined in about what leases we're willing to sign, and what we don't want to do is commit to a very long lease at a high lease rate.

We're going to take a couple more and then we have to wrap has global experience an increase in lease rates due to the growing demand for a three to one aircraft.

Yes, we have seen lease rates increased four four narrow body charter aircraft and we've been disciplined in and what leases were willing to sign on which what we don't want to do.

As commit to a very long lease on a high lease rate. So we've been disciplined on where we're at but Fortunately, we've been able to pass a lot of those costs there on the pricing.

Ryan Goepel: So we've been disciplined on where we're at, but fortunately, we've been able to pass a lot of those costs through in the pricing. Thank you. Last one, sounds like the hangar build-out is on hold to focus on profitable core business. Was it not fully funded by the building company, correct? Yes, but it still takes time and attention.

Yeah.

The glass.

It sounds like the hangar build out is on pause to focus on profitable core business was it not fully funded by the building company question Mark.

Yes, but it's still time and attention.

Ryan Goepel: So I think if you look at what we're focusing on again, profitable businesses that will generate revenue and profit today, and the hangar is not one of those. With that, I think the message is pretty clear. Focus on profitability and streamlining operations.

I think if you look at what we're focusing on again is.

Profitable business that will generate.

Revenue and profit today in the hanger is not one of us.

With that I think the message is pretty clear focus profitability.

And streamlining operations.

Operator: Who is that? We're about ready to wrap up here. Chris, welcome to your first webinar. And Ryan, would the gentleman have any closing comments? No, thank you very much. I understand the record attendance for the webinar. So we thank you for the interest. We obviously take matters of performance very seriously and continue with a very conservative discipline focused on bringing this very rapidly, very rapidly growing.

With that because we are about ready to wrap up here Chris.

Welcome to your first webinar.

And Ryan gentlemen have any closing comments.

No. Thank you very much so I understand the record attempt.

The account for the webinar.

<unk>.

Thank you for the interest we obviously take that model as a performer grocers.

And to continue with a very conservative disciplined focus on bringing this very rapidly very rapidly growing.

Chris Janos: Thank you very much. Thank you very much, Ryan. Thank you, Grant, and your team. And that concludes our webinar. Thanks for joining us. So again, if we didn't get to your question, please email it to jeff at howardgroupinc.com. On behalf of the whole Global X team, thank you for attending and keep watching for more profitability. Thank you.

Operationally she has been very high demand through something that cannot be very proud of on a sustained profitability basis from them.

We will earn our right to grow and expand to traders.

Disappointed we shifting pause on so thank you very much to everybody. Thank you very much Brian and thank you grant and your team.

That concludes our remarks today.

Hey, Ryan.

Yes, Chris Thanks.

So again, if we didn't get to your question. Please email them, Jeff at Howard Group, Inc. Dot com on behalf of the whole Global X team. Thank you for attending and keep watching for more profitability. Thank you.