Q1 2024 Algonquin Power & Utilities Corp Earnings Call

Operator: Hello, and welcome to the Algonqn Pwr & Utilities Corp first quarter 2024 earnings conference call. All lights have been placed on mute to prevent any background noise.

Hello, and welcome to the Algonquin Power <unk> Utilities Corp, first quarter 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press star one on your telephone keypad.

Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star 1 on your telephone keypad. I will now turn the conference over to Mr. Brian Chin, Vice President of Investor Relations.

The conference over to Mr. Brian Chin, Vice President of Investor Relations. Please go ahead.

Brian Chin: Thanks and good morning everyone. Thank you for joining us on our first quarter 2024 earnings conference call. Speaking on the call today will be Chris Huskilson, Chief Executive Officer, & Darren Myers, Chief Financial Officer. Also joining us this morning for the question and answer portion of the call is Jeff Norman, Chief Development Officer, and Johnny Johnston, Chief Operating Officer. To accompany today's earnings call, we have a supplemental webcast presentation available on our website, algonqnpwr.com.

Brian Chin: Thanks, and good morning, everyone. Thank you for joining us on our first quarter 2024 earnings conference call.

Brian Chin: Speaking on the call today will be Chris Hustled Chief.

Brian Chin: Chief Executive Officer, and Darren Myers, Chief Financial Officer also joining us. This morning for the question and answer portion of the call is Jeff Norman Chief Development Officer, and Johnny Johnston, Chief operating Officer.

Brian Chin: To accompany today's earnings calls, we have a supplemental webcast presentation available on our website Algonquin power Dot com, our financial statements and management's discussion and analysis are also available on the website as well as on SEDAR and Edgar.

Brian Chin: Our financial statements and management discussion and analysis are also available on the website, as well as on CDER Plus and EdGuard. We'd like to remind you that our discussion during the call will include certain forward-looking information and on-gap measures. Please note and review the related disclaimers located on slide 2 of our earnings call presentation in the investor relations section of our website at www.algonqnpwr.com. Please also refer to our most recent MD&A file on CDERplus and EDGAR, and available on our website, for additional important information on these items.

Brian Chin: We'd like to remind you that our discussion during the call will include certain forward looking information and non-GAAP measures. Please note and review the related disclaimers loaded located on slide two of our earnings call presentation at the Investor Relations section of our website at Www Dot Algonquin power Dot com.

Brian Chin: Please also refer to our most recent MD&A filed on SEDAR and Edgar and available on our website for additional important information on these items on the call.

Brian Chin: On the call this morning, Chris will provide a business update, including brief comments on the company's strategic transition and renewable sale. Then, Darren will review key highlights pertaining to our regulated and renewable business groups and our first quarter financial results. We will then open the lines for a question and answer period. We ask that you kindly restrict your questions to two and then re-queue if you have any additional questions to allow others the opportunity to participate. And with that, I'll turn it over to you.

Brian Chin: This morning, Chris will provide a business update including brief comments on the company's strategic transition and renewable sale then Darren will review key highlights pertaining to our regulated renewable business groups and our first quarter financial results.

Chris Huskilson: We'll then open the lines for a question and answer period, we ask that you kindly restrict your questions to two and then re queue. If you have any additional questions to allow others the opportunity to participate in.

Chris Huskilson: And with that I'll turn it over to Chris.

Chris Huskilson: Thank you, Brian, and good morning, everyone. Before we jump into the quarterly results, let me address the leadership announcement included in our press release. It's an honor to be appointed as the permanent CEO of Algonqn. It's an exciting time to lead the company. After serving as interim CEO for the last nine months, I'm more convinced than ever that we are on the right path. I see opportunity throughout the business to improve our consistency and profitability as we look to successfully execute on the sale of our renewables business and elevate our utility platform. 2024 will no doubt be a year of transition.

Chris: Thank you, Brian and good morning, everyone.

Chris: Before we jump into the quarterly results, let me address our leadership announcements included in our press release.

Chris: It's an honor to be appointed as permanent CEO of Algonquin, It's an exciting time to leave the company.

Chris: After serving as interim CEO for the last nine months I'm more convinced than ever that we are on the right path.

Chris: I see opportunity throughout the business to improve our consistency and profitability as we look to successfully executed on the sale of our renewables business and elevate our utility platform.

Chris: 'twenty 'twenty four will no doubt be a year of transition.

Chris Huskilson: As we execute on the sale of the renewables business, the company will, for the first time, be focused on a single regulated business model to create value. Algonqn is in a unique position to capture cost improvements through simplification and better execution, while continuing to serve our customers. This is a key reason why I've agreed to accept this role.

Chris: As we executed on the sale of the renewables business. The company for the first time will be focused on a single regulated business model to create value.

Chris: Algonquin is in a unique position to capture cost improvements through simplification and better execution.

Chris: While continuing to serve our customers.

Chris: This is a key reason why I've agreed to accept this role.

Chris Huskilson: I'm excited to help Algonqn capture that opportunity, create long-term value, and ultimately become the premier mid-cap regulated utility platform in North America. I'd also like to touch on recent and upcoming changes to our board. We're pleased to welcome Brett Carter, who most recently worked at Xcel Energy as Group President of Utilities and Chief Customer Officer, and nominee Chris Lopez, the outgoing Chief Financial Officer of Hydro One.

Chris: Excited to help Algonquin capture that opportunity create long term value and ultimately become the premier mid cap regulated utility platform in North America.

Chris Huskilson: Each of these individuals brings seasoned regulated utility experience and senior leadership capabilities to the company; their past experiences and insights will complement the strengths of the current Board of Directors and support Algonqn's ongoing strategic transformation to the Pure Play Regulated Utility. These developments reflect our recently signed cooperation agreement with Starboard, in which they propose board nominees. Our board reviewed the nominees and agreed that Brett Carter and Chris Lopez were exceptional additions.

I'd also like to touch on recent and upcoming changes to our board.

Chris: We're pleased to welcome Brett Carter, who most recently worked at.

Brett Carter: Excel energy as group President of utilities, and Chief customer Officer.

Brett Carter: And nominee Chris Lopez.

Brett Carter: The outgoing Chief financial Officer at Hydro one.

Brett Carter: Each of these individuals bring seasons regulated utility experience and senior leadership capabilities to the company.

Brett Carter: Their past experiences and insights.

Brett Carter: <unk> will complement the strikes at the current board of directors and support Algonquin is ongoing strategic transformation.

Brett Carter: Due to the pure play regulated utility.

Brett Carter: These developments reflect our recently signed cooperation agreement with starboard in which we play proposed board nominees.

Brett Carter: Our board reviews, the nominees and agreed that Brett Carter and Chris Lopez were exceptional additions.

Chris Huskilson: We believe these developments reflect our appreciation of investor dialogue, our receptivity to stakeholder input, and our decisiveness to make the right decisions. In further news, Ken Moore, the current chair of the board, has announced his intention to retire and not stand for re-election. And as part of the company's Ordinary Course nomination cycle, current board member Masheed Sadie has also indicated that she does not intend to stand for re-election.

Brett Carter: Yeah.

Brett Carter: We believe these developments reflect our appreciation of investor dialogue or receptivity to stakeholder input and our decisiveness.

Brett Carter: And further news Kenmore, the current chair of the board has announced his intention to retire and not stand for reelection.

Brett Carter: And as part of the company's ordinary course nomination cycle current Board member machine safety also indicated she does not intend to stand for reelection.

Chris Huskilson: We thank Ken and Mashid for their commitment, dedication, and leadership during their respective 14 and 10 years of distinguished service to the company. I've personally worked with Mashid since 2005, and Ken since 2009. Mashid and I worked on transmission projects in New England, and Ken and I helped make the Amera-Algonqn relationship a success for both companies. I will miss each of them on this board.

Brett Carter: Thanks, Ken and machine for their commitment dedication and leadership during their respective 14, and 10 years of distinguished service to the company.

Brett Carter: I've personally worked with Rajiv since 2005, and 10 since 2009 machine and I worked on transmission projects in new England, and Ken and I helped to make the Amira Algonquin relationship a success for both companies.

Brett Carter: We'll miss each of them on this board.

Chris Huskilson: Let me now turn to our quarterly update with a few brief comments before handing the call over to... In the first quarter, we continued our efforts to simplify the business and transition towards a pure play regulatory strategy. Our renewables business ended the quarter on target, and we continue to make progress on renewable sales. Our timetable for sale... The search continues as we expect. As I've said in the past, No news is good enough.

Brett Carter: Let me now turn to our quarterly update with a few brief comments before handing the call over to Darren.

Brett Carter: In the first quarter, we continued our efforts to simplify the business and transition towards a pure play regulated strategy. Our renewables business ended the quarter on target and we continue to make progress on the renewable sale are tight timetable for sale continues.

Brett Carter: Continues as as we expected.

Brett Carter: As I've said in the past no news is good news.

Chris Huskilson: Moving to our regulated services group, we're pleased that our regulated net utility sales and divisional operating profit organically grew year over year. That said, one of my initial key priorities has been to focus on the regulated services group as a stand-alone business. We are making strides here, including simplifying how we operate the business, having recently rolled out the last leg of our enterprise IT platform. But we have plenty more work and opportunity as we raise our utilities within Algonqn with the SAP System Rollout.

Brett Carter: Moving to our regulated services group were pleased that our regulated net utility sales and divisional operating profit organically grew year over year.

Brett Carter: That said one of my initial key priorities has been to focus on our regulated services group as a standalone business.

Brett Carter: We are making strides here, including simplifying how we operate the business, having recently rolled out the last leg of our enterprise platform.

Brett Carter: We have plenty more work and opportunity as we raise up our utilities within Algonquin.

Brett Carter: With the SAP system rollout.

Chris Huskilson: We are positioned to focus on the cost structure of the business and continued service to our customers. In the coming quarters, this will become the primary focus for the business. Lastly, it was also a busy quarter on the capital markets front, having closed financings with a value of approximately $2.3 billion. This is the largest non-M&A related quarterly financing in the company's history. We are extremely pleased by the investor interest and confidence in the company and the momentum of our actions to create long-term value for our shareholders. And with that, I'll turn things over to Darren for an update.

Brett Carter: We're positioned to focus on the cost structure of the business and continued service to our customers.

Brett Carter: In the coming quarters. This will become the primary focus for the business.

Brett Carter: Lastly, it was also a busy quarter on the capital markets front, having closed financings with a value of approximately $2 3 billion.

This is the largest non M&A related quarterly financing in the company's history. We are extremely pleased by the investor interest and confidence in the company.

Brett Carter: And the momentum of our actions to create long term value for our shareholders and with that I'll turn things over to Darin for an update on the business.

Darren G. Myers: Thank you, Chris, and good morning, everyone. I'll start with the regulated services group. In the midst of our ongoing transition, we remain steadfast in our commitment to our customers to deliver utility services in a safe and reliable manner. We are pleased to announce Liberty is the recipient of the 2023 American Gas Association's Employee Safety Award for medium-sized combination utilities in the United States. We have now been awarded this honor for the third time in four years.

Darin: Thank you, Chris and good morning, everyone I'll start with the regulated services group.

Darin: In the midst of our ongoing transition we remain steadfast in our commitment to our customers to deliver utility services in a safe and reliable manner. We're pleased to announce Liberty is a recipient of the 2023 American gas Association's employee safety award for medium sized combination utilities in the United States. We have now been awarded this honor.

Darin: For the third time in four years.

Darren G. Myers: Moving to our operations, I'm pleased to say that we've now completed the rollout of our enterprise-wide technology system. This system, called Customer First, will enable us to run the organization on a single integrated platform, provide better service for our customers, and allow us to gain more insight into our business and performance.

Darin: Moving to our operation.

Darin: I'm pleased to say that we've now completed the rollout of our enterprise wide technology system. This system.

Darin: Customer first will enable us to run the organization on a single integrated platform provide better service for our customers and allow us to gain more insight into our business and performance.

Darren G. Myers: Like many others that have gone through major system implementations, it will take time to leverage the capabilities and adjust our organization and process. We're at the normal part of the curve, where we're spending more to run the system, but we are confident we will continue to see improvements and that, over the long term, this will provide a competitive advantage for Algonqn. Turning now to an update on regulatory proceedings, during the first quarter of 2024, new rates became effective at our Empire Electric Utility in Arkansas following an order approving the settlement agreement authorizing a revenue increase of $5.3 million late last year. In the quarter, we also filed $36 million in revenue requirement increases, adding to an already busy regulatory slate. Our regulated services group currently has 15 rate reviews pending.

Darin: Like many others that have gone through major system implementation. It will take time to leverage the capabilities and adjust our organization and processes.

With a normal part of the curve, we're spending more to run the system, but we are confident we will continue to see improvements in that over the long term. This will provide a competitive advantage for Algonquin.

Darin: Turning now to an update on our regulatory proceedings during the first quarter of 2024, new rates became effective at our Empire electric utility in Arkansas. Following an order approving the settlement agreement authorizing a revenue increase of $5 $3 million late last year.

Darin: In the quarter, we also filed $36 million in revenue requirement increases, adding to an already busy regulatory slate a.

Darin: Our regulated services group currently has pending 15 rate reviews.

Darren G. Myers: Our Liberty Utilities pending rate requests total $129.4 million at the quarter end. This quarter represents the most active concurrent rate case period in the company's history. While we're not going to provide our overall earned ROE at this moment, we note that our active rate case schedule, combined with the investments we've made on our customers' behalf, has caused our earned ROE lag to increase by roughly 20 to 30 basis points over the same period last year.

Liberty utilities pending rate request totaled $129 4 million.

Darin: At quarter end.

Darin: This quarter represents the most active concurrent rate case period in the company's history.

Darin: Well, we're not going to provide our overall earned ROE at this moment, we note that our active rate case schedule combined with the investments we've made on our customers' behalf as caused our earned ROE lag to increase by roughly 20% to 30 basis points over the same period last year.

Darren G. Myers: Turning now to an update on our renewable energy business, In alignment with our goal of simplifying the business, we wound down our renewables development joint venture and monetized our interest in three small solar development assets in Spain. We also purchased the remaining 50% equity interest in the Sandy Ridge II wind facility, representing an increase of 44 megawatts to our net economic ownership.

Darin: Turning now to an update on our renewable energy group.

Darren G. Myers: As a minor update, we also sold our 100% equity interest in Windsor Locks, a 74.9 MW thermal facility in Connecticut for $17.7 million. The net effect is that at the end of the first quarter, we continue to hold 2.7 gigawatts of net economic ownership in our renewable assets. The next two major projects the construction group continues to develop are Carver's Creek and Clearview Solar, where site preparations and panel installation are well under way.

Darin: With our goal of simplifying the business, we wound down our renewables development joint venture and monetize their interest in three small solar development assets in Spain.

Darin: Also purchased the remaining 50% equity interest in the Sandy Ridge II wind facility, representing an increase of 444 megawatts to our net economic ownership.

Darin: As a minor update we also sold our 100% equity interest in Windsor locks, a $74 nine megawatt thermal facility in Connecticut for $17 7 million.

Darin: The net net effect is that at the end of the first quarter. We continue to hold two seven gigawatts of net economic ownership at our renewable assets.

Darin: Next two major projects. The construction group continues to develop our <unk> Creek in clear view solar where site preparations and panel installation are well underway.

Darren G. Myers: Turning to our financial results, our performance reflects the transition year we are in. On a consolidated basis, our combined Q1 net utility and energy sales were $519.9 million, up 5.7% year-over-year. The adjusted EBITDA was $344.3 million, up slightly from the same period last year. The adjusted net earnings were $95.6 million compared to $119.9 million reported last year, a decrease of 20%. On a per share basis, our first quarter adjusted net earnings per share was $0.14, an 18% decrease year-over-year.

Darin: Turning to our financial results our performance reflects the transition year, we are in.

Darin: On a consolidated basis consolidated basis, our combined Q1, net utility and energy sales were $519 9 million.

Darin: Up five 7% year over year.

Darin: EBITDA was $344 3 million up slightly from the same period last year. Adjusted net earnings were $95 6 million compared to $119 9 million reported last year, a decrease of 20%.

Darin: On a per share level, our first quarter adjusted net earnings per share was <unk> 14, an 18% decrease year over year.

Darren G. Myers: Our adjusted net earnings per share was down 3 cents year over year as continued growth in our regulated business was offset by an expected decline in our renewables business, which was primarily due to our simplification efforts and the winding down of our development joint venture. Breaking it down further, our regulated business grew by 2 cents, primarily due to new rate implementations at several of the company's electric and gas utilities. Renewables declined $0.01, driven primarily by our planned consolidation of development venture activities, as we discussed on our last earnings call this past March.

Darin: Our adjusted net earnings per share was down <unk> <unk> year over year as continued growth in our regulated business was offset by an expected decline in our renewables business, which was primarily primarily due to our simplification efforts and the wind down of our development joint venture.

Darin: Breaking it down further our regulated business grew by <unk> <unk>, primarily due to new rate implementations at several of the company's electric and gas utilities.

Darin: Renewables declined one set.

Darin: Driven primarily by our planned consolidation of development venture activities as we discussed on our last earnings call. This past March.

Darren G. Myers: It's worth highlighting that our renewables business ended the quarter on budget. Rounding out our year-over-year Adjusted Net Earnings Per Share performance, our depreciation increased by our typical run rate, lowering Adjusted Net Earnings Per Share by a penny. Our boring cost-to-fund growth netted against a planned reduction to minority interest expense lowered Adjusted Net Earnings Per Share by two cents year-over-year. And finally, our tax credit recoveries returned to a more normalized level from last year, lowering Adjusted Net Earnings Per Share further by another penny.

Darin: It's worth highlighting that our renewables business ended the quarter on budget.

Darin: Ending out our year over year adjusted net earnings per share performance, our depreciation increased by our typical run rate lowering adjusted net earnings per share by a penny or borrowing cost to fund growth netted against the planned reduction to minority interest expense lowered adjusted net earnings per share by <unk> <unk> year over year, and finally, our tax credit recoveries returned to.

Darin: A more normalized level from last year lowering adjusted net earnings per share further by another penny.

Darren G. Myers: Let me now provide an update on our capital markets activity. We had a very successful quarter on the capital front. We closed financings of $2.3 billion with the issuance of unsecured senior notes and securitized utility tariff bonds, as well as the successful remarketing of our senior notes related to our green equity unit. On average, our financings were four times over-subscribed.

Speaker Change: Let me now provide an update on our capital markets activity, we had a very successful quarter on the capital front, we close financings of $2 3 billion with the issuance of unsecured senior notes and securitize utility tariff bonds as well as the successful remarketing of our senior notes related to our green equity units on average.

Speaker Change: Financings were four times oversubscribed, we see these results as evidenced that in the midst of our transition investors share our view of a bright future for Algonquin.

Darren G. Myers: We see these results as evidence that in the midst of our transition, investors share our view of a bright future for Algonqn. And finally, let me briefly comment on our near-term outlook. As stated before, this is a transition year for Algonquin, and as such, we have not provided guidance for the year. As a quick reminder, for the second quarter last year, we had unfavorable weather across both businesses and a one-time CalPICO net earnings benefit of $11.2 million.

Speaker Change: And finally, let me briefly comment on our near term outlook as stated before this is a transition year for Algonquin and as such we have not provided guidance for the year.

Speaker Change: As a quick reminder, for the second quarter last year, we had unfavorable weather across both businesses and a onetime Cal Pico net earnings benefit of $11 $2 million.

Darren G. Myers: As for more recent activity, we're in the midst of one of the busiest rate case calendars we've ever tackled. This means rising depreciation and funding costs will continue to weigh on the regulatory lag until we reach constructive resolutions to more of our filings.

Speaker Change: As far as for more recent activity. We're in the midst of one of the busiest rate case calendars, we've ever tackled. This means rising depreciation and funding costs will continue to weigh on the regulatory lag until we reached constructive resolutions to more of our filings.

Darren G. Myers: We would like to thank our investors for your continued support as we transition the company and create long-term value for all of our stakeholders. With that, I will now turn the call over to the operator to open the lines for questions. Operator? Thank you.

Speaker Change: We'd like to thank our investors for your continued support as we transition the company and create long term value for all of our stakeholders.

Speaker Change: With that I will now turn the call over to the operator to open the lines for questions operator.

Operator: Thank you. Ladies and gentlemen, we will now begin our question and answer session. At this time, if you would like to ask a question, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. As a friendly reminder, please limit yourselves to one question and one follow-up only. We'll pause for a moment to compile the Q&A list. Thank you. The first question comes from the line of Nelson Ng from RBC Capital Markets. Please go ahead.

Operator: Thank you ladies and gentlemen, we will now begin our question and answer session. At this time, if you would like to ask a question. Please press star followed by the number one on your telephone keypad.

Operator: If you would like to withdraw your question simply press Star one again at.

As a friendly reminder, please limit yourselves to one question and one follow up only.

For a moment to compile the Q&A roster. Thank you.

Operator: Okay.

Speaker Change: The first question comes from the line of Nelson, Inc. From RBC capital markets. Please go ahead.

Nelson Ng: Great, thanks. Hey, Chris, congrats on your permit roll.

Nelson: Great. Thanks, Hey, Chris Congrats on your permit role.

Nelson: So good morning.

Nelson Ng: Yeah, good morning. So on that, I think you previously talked about staying in the CEO role as long as it takes. So I guess it'll be a bit longer for you. But in the press release, it mentions that you'll be working on the board for a kind of longer term. CEO Succession Plan. So, I was wondering whether you can give some color on how the CEO search went and whether the company's waiting until it fully transitions into a utility pure play to potentially start another COC.

Nelson: Yes. Good morning, so on that I think you previously talked about staying on the CEO role as long as it takes so I guess there'll be a bit longer for you.

Nelson: But in the press release it mentions that youll be working on the board for a kind of longer term.

Nelson: Succession plan.

Speaker Change: So I was wondering whether you can give some color on how the CEO search words.

Speaker Change: And whether the companies waiting until it fully transitions into a utility pure play to potentially start another CEO search.

Chris Huskilson: Yeah, well, so I would say we won't be doing another CEO search. When I say succession, I truly mean succession, as in we need to develop successors within and from without if necessary as well. And so it's not our intention to do another CEO search.

Speaker Change: Yeah, well so I.

Speaker Change: I would say we won't be doing another CEO search.

Speaker Change: When I say succession, I truly mean succession as in as in we need to develop successors within and from without if necessary as well and so it's not our intention to do another CEO search so from that perspective.

Chris Huskilson: So from that perspective, you know, that's the way we're looking at it. And, you know, I guess at the end of the day, I think I've said before what the four criteria were. In the end, I think the board just decided that things were going well and that I fulfilled those criteria properly. And so here we are. But, fundamentally, we haven't set any timeline.

Speaker Change: Yes.

Speaker Change: That's the way, we're looking at it and I.

Speaker Change: I guess at the end of the day I think I've said before what the four criteria were.

Speaker Change: In the end.

Speaker Change: I think the board just decided that things were going well.

Speaker Change: I fulfilled those criteria properly and so here we are.

Speaker Change: But fundamentally it's we haven't set any timeline I'm very excited about this opportunity.

Chris Huskilson: I'm very excited about this opportunity and to have the opportunity to continue the work that I was doing as interim CEO. You know, but of course, we do need to develop a proper and appropriate succession plan, which the company doesn't have today. And so that's really going to be, that's what was referred to in the press release. And, you know, I'm fundamentally committed to the business and committed to the success of this business.

Speaker Change: And to have the opportunity to continue the work that I was doing as interim CEO.

Speaker Change: But of course, we do need to develop a proper and appropriate succession plan, which the company doesn't have today and so that's really going to be.

Speaker Change: What was referred to in the press release and I'm, just fundamentally committed to the business and committed to the success of this business.

Nelson Ng: Great, that's good to hear. And then the follow-up question was in terms of some of the asset sales that you guys announced, whether it's some small developments in Atlantica or selling Windsor Locks. Can you just provide a bit more color in terms of, I guess, asset divestment? and whether it is things within the renewable sales process versus potential asset sales or other transactions outside of that process? Can you just clarify, like, should we expect any other potential divestments outside of the renewable sales process?

Speaker Change: Great. That's good to hear and then the follow up question was in terms of.

Speaker Change: Some of the asset sales that you guys announced whether it's SaaS and small developments to Alaska, our selling Windsor locks.

Speaker Change: Can you just provide a bit more color in terms of.

Speaker Change: Yes asset divestments.

Speaker Change: And whether it.

Speaker Change: Things within the renewable sales process versus potential asset sales or other transactions outside of that process can you just clarify like should we expect any other.

Speaker Change: Potential divestments outside of the outside of their renewable sales process well I think first of all Windsor locks was kind of held for sale for some time and it just wasn't fitting in any of the of our futures as the company. So that it's really kind of a unique sale process that we went through there and in <unk>.

Chris Huskilson: Well, I think, first of all, Windsor Locks was kind of held for sale for some time, and it just wasn't fitting in with any of our futures as a company. So it's really kind of a unique sale process that we went through there. And, in fact, I believe that the customer actually had a roofer on that plant anyway.

Speaker Change: I believe that the customer actually had a rover on that on that plant to anyway.

Chris Huskilson: When it comes to the rest of it, it's no different than what we've been saying all along. We're focused on renewable energy sales. That's what we're focused on, and we're also focused on making decisions and moving along with our investment in AY. So those are the two things that you can expect that we will move on over the next period. When it comes to the rest of the business, it's just too early to think about the status of the rest of the business, and so on.

Speaker Change: When it comes to the rest of it it's no different than what we've been saying all along we are focused on the renewable sale. That's what we're focused on and we're also focused on.

Speaker Change: Making decisions and moving along with our investment in AI. So those are the two things that you can expect that we will we will move on over the next period when it comes to the rest of the business. It's just too early to think about the status of the rest of the business and so on we're really just focused on getting it up.

Chris Huskilson: We're really just focused on getting it up and running as a stand-alone retail business. And as I've said in my comments, and I've said many times before, I see tremendous opportunity to make that business run better, to reduce the cost of that business, and to make it more profitable, and to continue serving our customers very well.

Speaker Change: Up and running as a stand alone <unk> business and as I've said in my comments and I have said many times before I see tremendous opportunity to make that business run better to reduce the cost of that business and to make it more profitable and to serve our customers continue serving our customers very well and Nelson just as a reminder.

Chris Huskilson: And Nelson, just as a reminder, the hydro assets as part of the renewable sale are something that we're selling separately, focusing on the rest of the sale first and then the hydro.

Speaker Change: The hydro assets as part of the renewable sale is something that we are selling separately to focus on the rest of the sales first and then the hydro assets Darren always needs to say that because I always forget.

Nelson Ng: Thanks for the clarification.

Nelson Ng: All right, thanks for the clarification. I'll leave it there and come back in the queue. Thanks, Bill.

Speaker Change: Alright. Thanks, Thanks for the clarification I'll leave it there and come back to the here.

Speaker Change: Thanks Nelson.

Operator: The next question comes from the line of Rupert Merer from the National Bank. Please go ahead.

Speaker Change: The next question comes from the line of appropriate <unk> from National Bank. Please go ahead.

Rupert M. Merer: Hello, good morning, everyone, and congratulations, Chris.

National Bank: Hello, Good morning, everyone and congratulations Chris.

Rupert M. Merer: Thank you very much, and good morning.

Speaker Change: You very much and good morning.

Rupert M. Merer: So recently, we've seen strong interest in power markets with anticipated demand growth across North America, and part of that is from data demand. Are you seeing this interest show up in your asset sales process or in your renewable development pipeline as a change of dynamic? in those processes over the last couple of months. Well, at the end of the day, you know, I think, as I said earlier, no news is good news on

Speaker Change: So recently, we've seen strong interest in power markets with anticipated demand growth across North America, and part of that is from data demand.

National Bank: Are you seeing the Cintra show up in your asset sales process or in your renewable development pipeline has it changed the dynamic.

National Bank: And those processes over the last couple of months.

Chris Huskilson: Well, at the end of the day, you know, I think, as I said earlier, no news is good news on the process itself. But as it relates to the development pipeline, certainly, we're continuing to see strong demand. And in fact, you know, we do have over 8 gigawatts of development pipeline in operation now, and it continues to be very successful. And so, you know, we're excited about how that is unfolding, and we're excited about how others will look at it as they evaluate our assets. Jeff, is there anything you want to add to that?

National Bank: Well.

National Bank: At the end of the day.

National Bank: I think.

National Bank: As I said earlier no news is good news on the process itself.

National Bank: But as it relates to the development pipeline certainly we're continuing to see strong demand and in fact, we do have over eight gigawatts of development pipeline in operation now and.

National Bank: It continues to be very successful and so.

National Bank: We're excited about the about how that is unfolding and we're excited about how how others will look at that as they evaluate our assets and our Jeff is there anything you want to add to that.

Jeffery Norman: No I think I would just reinforce Chris that.

Jeffery Norman: Over the last couple of months as you pointed out Robert things continue to be strong.

Jeffery Norman: So we continue to make progress on the projects within the pipeline, particularly those later stages in the pipeline.

Chris Huskilson: So if you look at that same dynamic, and now maybe focus on the regulated utilities, so if I look at the market, power demand is broadly expected to grow by 5% per year or thereabouts. Are you looking at your regulated jurisdictions as having a similar rate of growth? Is that rate of growth going to keep pace with what we see in North America? And where is that growth coming from? Is data a main driver for you and your regulated utilities, or is growth going to come from reshoring or any other driver? Well, I think so.

Jeffery Norman: So if you look at that same dynamic in now may be a.

Jeffery Norman: Our focus on on the regulated utilities, so if I look at the market.

Jeffery Norman: The power demand is broadly expected to grow by 5% per year or thereabouts or are you. If youre looking at your regulated jurisdictions is having a similar rate of growth is that.

Jeffery Norman: We had a growth can keep pace with what we've seen in North America and <unk>.

Jeffery Norman: Where is that growth coming from is as data. The main driver for you in your regulated utilities or is the growth going to come from re shoring or or any other any other drivers.

Chris Huskilson: Well, I think it's all of the above. I mean, the whole electrification process that's going on is really what's driving growth. And, you know, we are beginning to see traction on the growth side. For the first time in a long time, we've actually seen growth in our regulated kilowatt hour numbers. And so, you know, and the other thing that we're seeing is people moving to some of the territories where we are as they move out of, you know, concentrated areas like cities and so on. So there's a number of factors that are going into growth. And, as I say, we're beginning to see growth for the first time in quite a long time.

Speaker Change: I think it's all of the above I mean, the whole electrification.

Speaker Change: Process Thats going on is really what's driving growth.

Speaker Change: We are beginning to see traction on the growth side.

Speaker Change: For the first time.

Speaker Change: In a long time, we've actually put growth in our in our regulated.

Speaker Change: Kilowatt hour numbers.

Speaker Change: So and the other thing that we're seeing is we're also seeing people moving to some of the territories, where we are.

Speaker Change: As they move out of <unk>.

Speaker Change: Concentrated areas like cities and so on so so there is there is a number of factors that are going into growth and as I say, we're beginning to see growth for the first time in quite a long time.

Chris Huskilson: So do you think you can keep up with the growth rates in North America?

Speaker Change: So do you think you can keep pace with the growth rates in North America.

Chris Huskilson: Well, we're hopeful. How about that?

Speaker Change: Well were hopeful about that right at the end of the day as I said, we're just starting to see it materialize and so we're hopeful that it will materialize as as it is everywhere, but electrification is going to be a long term trend and that long term trend is going to drive growth in all.

Chris Huskilson: At the end of the day, as I said, we're just starting to see it materialize. And so, you know, we're hopeful that it will materialize everywhere. But electrification is going to be a long-term trend. And that long-term trend is going to drive growth in all of the businesses.

Speaker Change: Of the businesses.

Chris Huskilson: Some investors are really looking for exposure to data centers. Do you have any data center movement in your areas?

Speaker Change: And some investors are really looking for exposure to Datacenters you do you have any any data center movement in your areas.

Chris Huskilson: I would say at this stage, that's not a major source of our growth, but we're seeing growth primarily from normalized electrification. Okay, very good.

Speaker Change: I would say at this stage.

Speaker Change: Not a major source of our growth but.

Speaker Change: Okay.

Speaker Change: We're seeing just primarily from normal normalized electrification.

Rupert M. Merer: Very good. Thank you very much.

Speaker Change: Okay very good. Thank you very much okay. Thank you.

Operator: The next question comes from the line of Rob Hope from Scotiabank. Please go ahead.

Speaker Change: The next question comes from the line of Rob Hope from Scotiabank. Please go ahead.

Robert Hope: Morning, everyone, and congratulations, Chris. I want to follow up on the commentary in the prepared remarks just about cost containment and really focusing on, you know, normalizing or reducing costs at the operating utilities. You know, as you look through kind of your plan there, do you have a timeline of when we could start to see some results there? And are there any goals you could share with us, whether that'd be on a, you know, million-dollar basis, or not?

Robert Hope: Good morning, everyone and congrats Chris.

Robert Hope: I wanted to follow up on the commentary in the prepared remarks, just to bear with cost containment and really focusing on.

Robert Hope: Normalized reducing costs at the operating utilities.

Robert Hope: As you look through kind of your your plan there do you have a timeline of when.

Chris: We could start to see some some resource there and are there any any goals you could share with us whether that would be on a million dollars basis.

Chris: ROE of bps.

Chris Huskilson: Yeah, I mean, our concentration up to this point has really been twofold, making sure that we had the organization in the right position to be able to go after its costs and restructure the cost structure of the business, and secondly, to get the platform in place that will allow us to do that better. So, you know, it's a multi-year process.

Chris: Yes.

Chris: Our concentration up to this point has really been.

Chris: Twofold, making sure that we had the organization in the right position to be able to go after its costs.

Chris: And to restructure the cost the cost structure of the business and secondly to get the platform in place that will allow us to do that better. So it's a it's a multiyear process and.

Chris Huskilson: As you can imagine, our focus has been on the renewable energy sale. It's been on ensuring that we are ready for that sale and that we're ready to separate the business and those kinds of things. But as we go into H2, you're going to start to see us focus on cost structure and using the system that we've now installed to create more efficiency and effectiveness in our business. So it's really just too early to quantify, but at the end of the day, just based on my experience and looking at it through those eyes, there's lots of opportunity there.

Chris: As you can imagine our focus has been on the renewable sale.

Chris: It's been on ensuring that we are ready for that sale and that we are ready to to separate the business and those kinds of things.

Chris: But as we go into <unk>, you're going to start to see us focus on cost structure and using the system that we have now installed to create more efficiency and effectiveness in our business. So it's really just too early to quantify but.

Chris: At the end of the day just based on <unk>.

Chris: My experience in looking at it through those eyes, there's lots of opportunity there for us.

Chris Huskilson: Thanks for that. And then maybe moving over to the structure and the simplification, is that now largely behind us, and everything is ready for a sale? And I guess maybe an integrated follow-up there would be, you know, is that six million dollars of corporate admin costs that were allocated to renewables? Is that a go forward run rate?

Speaker Change: Thanks for that and then just maybe moving over to the structure and the simplification is that now largely behind us.

Speaker Change: He is ready for sale and I guess, maybe it's an integrated follow up there would be is that.

Speaker Change: $6 million of corporate admin costs.

Speaker Change: Were allocated to renewables is that a go forward run rate.

Yes.

Chris Huskilson: Well, so yes, we're ready. We're ready for the sale, you know, we've, we've I mean, the business is running as a business, and we've allocated employees to that business. Yeah, so maybe and also just to follow on that simplification is really at the company level, it doesn't impact the sales process. We are trying to take steps to continue to simplify and make our results easier to understand. And we will continue to do that. I don't think there's anything, you know, nothing like the development JV that we're looking at right now.

Speaker Change: Well, so yes, we're ready we're ready for the sale.

Speaker Change: We've.

Speaker Change: We've Alex specifically I mean, the business is running as a business and we've and we've allocated employees to that business and created a perimeter around that business and so yes from that perspective, we're absolutely ready for the sale I don't know did you want to touch on the E.

Speaker Change: Yes, so maybe and also just a follow on on that simplification is really at the company level. It doesn't impact the sales process. We are trying to take steps to continue to simplify and make our results easier to understand and we will continue to do that I don't think theres anything.

Speaker Change: Nothing like the development JV.

Speaker Change: We're looking at right now.

Chris Huskilson: But and then in terms of the cost, yeah, that's a reasonable run rate. This is what we've had as admin charges before. So we've also, in the disclosure, tried to make sure you understand it's not a new cost for the business. It is the allocation of the corporate cost to it.

Speaker Change: And then in terms of the costs you have that as a reasonable run rate. This is this is what we had as admin charges before so we are also in the disclosure to try to make sure you understand it's not a new cost for the business.

Speaker Change: It is the allocation of the corporate cost of it.

Speaker Change: Thank you.

Operator: The next question comes from the line of Ben Pham from BMO Capital.

Speaker Change: The next question comes from the line of Ben Pham from BMO capital.

Speaker Change: Okay.

Benjamin Pham: Hi, good morning. This first question is for Chris. I'm wondering now with your appointment. Was there anything on your desk or file cabinet that... Now that you, uh... A bit quicker and obviously the renewable stuff is front and center, but was there anything there that you could push or focus more on?

Benjamin Pham: Hi, good morning.

Benjamin Pham: First question is for Chris.

Benjamin Pham: I'm wondering now with your appointment.

Benjamin Pham: Was there anything on your desk.

Benjamin Pham: Robin at that.

Benjamin Pham: Now that you are.

Speaker Change: Alright, your permanent CEO that you can advance that.

Speaker Change: A bit quicker obviously, the renewable stuff is front and center, but was there anything there that you can push or focus more on it over the near term.

Speaker Change:

Benjamin Pham: Ben, I'm not really sure I understood the question. Ben, from working with Chris, I don't think he's been holding back.

Speaker Change: Ben I'm, not really sure I understood. The question, but I'd say from working with Chris I don't think <unk> been holding back the tide.

Benjamin Pham: I don't think the title change is going to make a difference, but... Oh, well. So, I mean, what I've said, I understand now. What I said all along, Ben, was that I was not going to be a caretaker and that we were going to act, you know, with pace. And so, you know, that doesn't change.

Speaker Change: Sure.

Speaker Change: Make a difference but.

Speaker Change: So I mean, I understand that what I've said all along band.

Speaker Change: I was not going to be a caretaker and and that we were going to act.

Speaker Change: With pace and so.

Speaker Change: That doesn't change.

Chris Huskilson: At the end of the day, I think a little more certainty for the company as a whole, as in knowing who the leader is going to be, is something that I think helps everybody because, you know, less uncertainty is better than more uncertainty, that's for sure. And you know, the fact that we are going to move into developing a complete succession plan for the entire company, so not just CEO succession, but succession across the company, as we begin, when you think about it.

Speaker Change: At the end of the day.

Speaker Change: Think a little more certainty for the company as a whole.

Speaker Change: Knowing who the leaders going to be is something that I think helps everybody.

Speaker Change: <unk>.

Speaker Change: The.

Speaker Change: Less uncertainty is better than more uncertainty that's for sure.

Speaker Change: And the fact that we are going to move into developing a complete succession plan for the entire company. So not just the CEO succession, but succession across the company as we begin.

Speaker Change: When you think about it.

Chris Huskilson: The way that the company has run up to this point is that we've essentially done the business of the company centrally, and the utilities have operated. What we're doing now is we're actually moving to a model where the utilities are the business, and we're raising them up in the business. And so the skills and capabilities that will be developed and will exist in the field are going to be a lot stronger.

Speaker Change: The way that the company has run up to this point is that is that we've essentially done the business of the company centrally and the utilities have have operated what we're doing now is we're actually moving to a model where the utilities are the businesses and we are raising them up in the <unk>.

Speaker Change: And so and so the skills and capabilities that will be developed and will exist in the field is going to be a lot stronger and so we need to develop a succession plan across the entire company to facilitate that development and to continue to be more and more successful as a business and being run there.

Chris Huskilson: And so we need to develop a succession plan across the entire company. And so, you know, that's the story. So yes, I will be doing more of that, I would say, because we will have time to do that as the renewables process unfolds, but the pace won't be the same.

Speaker Change: Wei and so when I talk about succession Thats not just this role it's the role that are critical to really running this company better in the future and so that's that's the story. So yes, I will be doing more of that I would say because we will have time to do that as renewables process.

Speaker Change: Unfolds.

But the pace won't change.

Benjamin Pham: Okay, understood. And I know you.

Speaker Change: Okay understood.

Speaker Change: I know you.

Chris Huskilson: You mentioned with the renewable sale process, no news is good news. Can you share? I think last quarter you had a specific timeline. End of Q2, I think you mentioned. Is that also still intact in the overall messaging?

Speaker Change: Mentioned with the <unk> sale process No news is good news.

Speaker Change: How can you can you share I think last quarter you had.

Quick timeline.

Speaker Change: End of Q2, I think you mentioned.

Speaker Change: Is that also still fantastic.

Chris Huskilson: Yeah, we don't see any change in the timeline as we sit here.

Speaker Change: Problem asset sharing.

Speaker Change: Yes, we don't we don't see any change in the timeline as we said.

Chris Huskilson: And that's to sign something and then target foreclosure by the end of the year. That's the original timeline.

Speaker Change: That's to sign something and then targeting for closure by the end of the year. The original time line and then.

Chris Huskilson: And then the comments we were making were roughly mid-year for that, and then the latter portion of 2024 or year-end thereabouts, so we did not give a hard deadline. But nothing has changed, I think.

Speaker Change: The comments were making were roughly mid year.

Speaker Change: For that and then latter portion of 2024 or year end or thereabouts. So we did not give a hard deadline of Q2.

Chris Huskilson: But nothing has changed. I think that's the primary point.

Speaker Change: But nothing has changed I think that's the primary point.

Speaker Change: Okay. Thank you.

Thanks, Matt.

Operator: The next question comes from the line of Mark Jarvi from CIBC. Please go ahead.

Speaker Change: The next question comes from the line of Mark Jarvi from CIBC. Please go ahead.

Mark Jarvi: Yeah, thanks. Good morning, everyone. Chris.

Mark Jarvi: Yes, thanks, good morning, everyone aggressive Chris.

Mark Jarvi: We talked about.

Mark Jarvi: Talk about succession planning and building up the organizational strength talked about need for improvements on the utility side do you need to make some hires there and build that up and if so what type of people would you be looking to bring in.

Mark Jarvi: You talked about succession planning and building up organizational strength and the need for improvements on the utility side. Do you need to make some hires there to build that up? And if so, what type of people would you be looking to bring in?

Mark Jarvi: So at this point I think we're actually pretty well positioned to do what we're planning to do and.

Chris Huskilson: So, at this point, I think we're actually pretty well positioned to do what we're planning to do. And so, you know, at the end of the day, we will work with the team that we have.

Mark Jarvi: And so at.

Mark Jarvi: At the end of the day.

Mark Jarvi: We will work with the team that we have and I think there's lots of good experience on the water side, there's lots of great experience on the gas side, there's lots of great experience on the electricity side out there and it's more a matter of surfacing those people in the organization and giving them more more autonomy and authority to act and I think that is.

Chris Huskilson: And I think, you know, there's lots of good experience on the water side. There's lots of great experience on the gas side. There's lots of great experience on the electricity side out there. And it's more a matter of surfacing those people in the organization and giving them more autonomy and authority to act. And I think that's really what we're focused on right now. So, it's not about hiring. It's about

Mark Jarvi: Really what we're what we're focused on right now so it's not a boat hiring it's about it's about enabling.

Chris Huskilson: And you haven't seen any churn just given some interviews to the company, and you brought up the point that now the permanent CEO brings probably some stability there and is good for culture. Has that been a drag on on the business in terms of churn? http://TheBusinessProfessor.com

Mark Jarvi: And you Havent seen any churn just given some integrate the company and you brought up the point that now the permanent CEO brings probably some stability there and good for culture has.

Mark Jarvi: Has that been a drag on the business in terms of churn.

Chris Huskilson: Yeah, in large part, we've been very fortunate. And I think, you know, obviously, the people in the renewables group are probably the ones that see the most uncertainty right now, but I think they've been very excited by the opportunity. The opportunity to be able to continue to develop and grow their business, which, you know, we were holding them back. And so, you know, we've been very fortunate that we've been able to keep a very good and active staff through this whole time of uncertainty. I don't know, Jeff, is there anything you want to add to that? No, I think you nailed it, Chris.

Mark Jarvi: In large part we've been very fortunate.

Mark Jarvi: And I think obviously the people in the renewables group are probably the ones that see the most uncertainty right now, but but I think they've been very excited by the opportunity the opportunity to be able to continue to develop and grow their business.

Mark Jarvi: <unk>, which we were holding them back and so so we've been very fortunate that we've been able to keep a very very good and active staff through this whole time of uncertainty I know, Jeff is there anything you want to add to that or no.

Jeffery Norman: Christmas that's bang on.

Mark Jarvi: That's good to hear. And my last question for you is, just given where you are in your liquidity, balance sheet, the financing year to date, and the power scale progressing largely as expected, do you think you'll be in a position to buy back shares within the next 6 to 12 months?

Jeffery Norman: That's good to hear and just last question for me is just given where you are in your liquidity balance sheet, the financing year to date and the power sale progressing largely as expected do you think you'll be in a position to buy back shares in the next six to 12 months.

Mark Jarvi: Mark, that's obviously all dependent on, you know, our goal, our target, and everything we're doing is to make sure we're maintaining that solid triple B balance sheet. And so as the sale process concludes, and depending on that price, we'll be looking at, you know, how much we need to invest in the business. Is there excess for buyback? So all that will be determined over the next little while.

Jeffery Norman: Well Mark Thats, obviously, all dependent on on.

Jeffery Norman: Our goal our target and everything we're doing is to make sure we're maintaining the solid triple b balance sheet.

Jeffery Norman: So as the sale process concludes and depending on that price will be looking at how much can we do we need to invest in the business is there excess for buybacks. So all of that will be determined over the next little while.

Chris Huskilson: It's all about proceeds and whether AY sells. I think those are the two primary drivers of this.

Jeffery Norman: It's all about proceeds and whether a way itself I mean, I think those are the two primary.

Jeffery Norman: Rivers' to this.

Chris Huskilson: If and when you announce a transaction, would you then be in a position to tell the market whether or not you have buyback capacity relative to your, you know, organic investment needs?

Jeffery Norman: If and when you announce a transaction would you be in a position.

Jeffery Norman: To tell the market, whether or not you did buyback capacity relative to your <unk>.

Jeffery Norman: Organic investment needs.

Mark Jarvi: Yeah, we definitely plan to come to the market with a proper investor update towards the end of the year or early next year. That is, we want to make sure we're being transparent and giving everybody, you know, the direction that we're going as a company. Sounds good. Thanks.

Speaker Change: Yes, we definitely would plan to come to the market with a with a proper investor update towards the end of the year. Early next year that is we want to make sure we're being transparent in giving everybody.

Speaker Change: The direction that we're going as a company.

Mark Jarvi: Sounds good. Thanks for your time this morning.

Sounds good thanks for the time this morning.

Speaker Change: Okay. Thank you Mark.

Operator: The next question comes from the line of Sean Steuart from TD Cabin. Please go ahead.

Speaker Change: The next question comes from the line of Sean Stewart from TD, Kevin. Please go ahead.

Sean Steuart: Thanks. Good morning, everyone, and congratulations, Chris.

Sean Steuart: Thanks, Good morning, everyone and congratulations Chris.

Sean Steuart: Just one question, when you're now able to really focus on long-term plans for the regulated platform, do you have any incremental thoughts on the platform you have now? You're spread across electricity, gas, and water. Are there opportunities for valuation and optimization by potentially divesting chunks of that portfolio? I appreciate you're going to want to ramp up investment in the organic rate-based growth, but any broader thoughts on the current structure across the regulatory platform

Sean Steuart: Thank you very much.

Sean Steuart: Just one question. When you are now able to really focus on long term plans for the regulated platform.

Sean Steuart: You have any incremental thoughts on.

Speaker Change: This the platform you have now you're spread across electricity gas water.

Speaker Change: Are there opportunities for valuation.

Speaker Change: Optimization by potentially divesting chunks of that portfolio.

Speaker Change: I appreciate youre going to want to ramp up investment in the organic rate base growth, but any broader thoughts on.

Speaker Change: The current structure across the regulated platform.

Chris Huskilson: Our focus right now is on the renewable sale, and, as Darren keeps pointing out to me, and the hydro sale a little bit later. So those are really where our focus points are. At some point in the future, we'll continue to look at the evolution of the business overall, but it's just too early to have any kind of conclusion.

Speaker Change: Our focus right now is on the renewable sale and.

Speaker Change: As Darren keeps pointing out to me in the hydro sale a little bit later. So so those are those are really where our focus points are and.

Speaker Change: At some point in the future we will continue to look at the evolution of the business overall, but.

Speaker Change: It's just too early to have any kind of conversation about that.

Sean Steuart: Okay, that's all I have for the rest of my question and answer. Focus, focus, focus. We've got to stay focused on what we're trying to get done. System Messaging. Okay, thanks very much, guys.

Speaker Change: Okay. That's all I had the rest of my question Dana answered David focus focus focus we've got to stay focused on what we are trying to get done here.

Speaker Change: Consistent messaging, okay. Thanks, very much guys.

Speaker Change: Okay. Thank you.

Chris Huskilson: As there are no further questions in the queue at this time, we will now conclude our question and answer session. I would like to turn the call over to Mr. Chris Huskilson for brief closing remarks.

There are no further questions yet the key at this time, we will now conclude our question and answer session I.

Speaker Change: I would like to turn the call over back to Mr. Chris Hodgson for brief closing remarks.

Chris Huskilson: Okay, well, as I said in my opening remarks, I'm very excited about taking on this opportunity for the longer term, and I also appreciate the support of all our shareholders and also appreciate the questions from analysts today. So, thank you very much for participating and listening today, and we'll see you next quarter.

Chris Hodgson: Okay, well as I said in my opening remarks, I am very excited about.

Chris Hodgson: Taking on this opportunity for the longer term and I also appreciate the support of all our shareholders and also appreciate the questions from from analysts today. So thank you very much for participating and listening today.

Chris Hodgson: We will see you next quarter.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker Change: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.

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