Q3 2024 Global Partners LP Earnings Call
Operator: Good day everyone, and welcome to the Global Partners 3rd Quarter 2024 Financial Results Conference Call. Today's call is being recorded.
Good day, everyone and welcome to the Global Partners third quarter 2024 financial results Conference call.
Today's call is being recorded.
Operator: If anyone should require operator assistance during the call, please press star zero on your telephone keypad.
If anyone should require operator assistance during the call. Please press star zero on your telephone keypad.
Operator: With us from Global Partners are President and Chief Executive Officer, Mr. Eric Slifka.
Speaker Change: With us from global partners are President and Chief Executive Officer, Mr. Eric Slifka.
Operator: Chief Financial Officer, Mr. Gregory Hanson.
Speaker Change: Chief Financial Officer, Mr. Gregory Hanson.
Operator: Chief Operating Officer, Mr. Mark Romaine.
Chief operating officer, Mr. Mark Romaine.
Operator: and Chief Legal Officer and Secretary, Mr. Sean Geary.
Speaker Change: And Chief legal Officer, and Secretary, Mr. Sean Gary.
Sean Geary: At this time, I would like to turn the call over to Mr. Geary for opening remarks. Please go ahead, sir. Good morning, everyone. Thank you for joining us. Today's call will include forward-looking statements within the meaning of federal securities laws, including projections and expectations concerning the future financial and operational performance of global partners. No assurances can be given that these rejections will be attained or that these expectations Our assumptions and future performance are subject to a wide range of business risks, uncertainties, and factors which could cause actual results to differ materially as described in our filings with the Securities and Exchange Commission.
At this time I would like to turn the call over to Mr. Gary for opening remarks. Please go ahead Sir.
Speaker Change: Good morning, everyone. Thank you for joining US today's call will include forward looking statements within the meaning of federal securities laws, including projections and expectations concerning the future financial and operational performance of global partners. No assurances can be given that these projections will be attained for that these expectations will be met.
Speaker Change: Our assumptions and the future performance are subject to a wide range of business risks uncertainties and factors.
Speaker Change: Cause actual results to differ materially are described in our filings with the Securities and Exchange Commission.
Sean Geary: Global Partners undertakes no obligation to revise or update any forward-looking statements.
Speaker Change: Global partners undertakes no obligation to revise or update any forward looking statements.
Eric Slifka: It is my pleasure to turn the call over to our President and Chief Executive Officer. Good morning, everyone, and thank you for joining us on today's earnings call. At Global Partners, our commitment to providing essential infrastructure and products that communities depend on is rooted in a long history of service, especially in times of recovery and rebuilding.
Speaker Change: Now, it's my pleasure to turn the call over to our President and Chief Executive Officer.
Speaker Change: Good morning, everyone and thank you for joining us on today's earnings call.
Speaker Change: Our global partners, our commitment to providing essential infrastructure in the communities depend on is rooted in our long history of service, especially in times of recovery and rebuilding.
Eric Slifka: Before we review our earnings results, I want to take a moment to commend the exceptional work of our team at our terminal in Tampa during Hurricane Feline and Milton. Their dedication to quickly restoring operations ensured that fuel and critical resources were available to support the community's recovery. This is more than business. It's our role in empowering strength and resilience across the regions we proudly serve.
Speaker Change: Before we review our earnings results I want to take a moment to commend the exceptional work of our team at our terminal in Tampa during hurricane for lean and mill.
Their dedication to quickly restore operations ensures that fuel critical resources were available to support the communities recovered.
Speaker Change: This is more than before.
Speaker Change: It's our role in empowering strength and resilience across the weekend, we proudly serve.
Eric Slifka: Turning to our results, we delivered year-over-year gains across each of our key financial metrics, demonstrating our ability to execute on our strategy to acquire, invest in, and optimize assets that drive returns. In our Gasoline Distribution and Station Operations segment, our retail assets are exceeding expectations. In our wholesale and commercial segments, supply market dynamics enabled us to capitalize on favorable conditions in the quarter. Our integrated business model provides the potential to enhance our market leadership and long-term growth. We are continuing to integrate the 29 liquid energy terminals acquired over the past 11 months from Motiva Enterprises and Gulf Oil.
Speaker Change: Yeah.
Speaker Change: Turning to our results, we delivered year over year gains across each of our key financial metrics, demonstrating our ability to execute on our strategy to acquire invest in and optimize assets that drive returns.
Speaker Change: Gasoline distribution and station operations segment, our retail assets are exceeding expectations and our.
Speaker Change: Our wholesale and commercial segments supplied market dynamics enabled us to capitalize on favorable conditions in the quarter.
Our integrated business model provides the potential to enhance our market leadership and long term growth.
We are continuing to integrate the 'twenty nine liquid energy terminals acquired over the past 11 months from Motiva enterprises and Gulf oil.
Eric Slifka: The terminals offer a platform for new strategic projects that align with our long-term goals, expanding product offerings, enhancing our operational efficiency, and market reach. We're excited about the opportunity to unlock the full value these assets bring to our network.
Speaker Change: The terminals offer a platform for new strategic projects that align with our long term goals.
Speaker Change: Expanding product offerings, enhancing our operational efficiency and market reach.
We are excited about the opportunity to unlock the full value of these assets.
Eric Slifka: Last week, we completed the acquisition of a 738-acre liquid energy terminal in East Providence, Rhode Island, from the ExxonMobil Oil Corporation. The Terminal, which serves as a strategic hub for storing products including gasoline, additives, distillates, and renewable fuels, features 10 product canes with a total shelf capacity of 959,000 barrels and deep water dock access. Additional non-fuel use acreage allows for the potential further diversification of our real estate portfolio.
Speaker Change: These assets bring to our network.
Speaker Change: Last week, we completed the acquisition of the 738 acre liquid energy terminal in East Providence, Rhode Island from the Exxonmobil Oil Corporation.
Speaker Change: The terminal, which serves as a strategic hub for storing products, including gasoline additives distillates renewable fuels features 10 product teams with a total shut capacity of 959000 barrels and deepwater dock access.
Speaker Change: Additional non fuel use acreage allows for the pension for the potential further diversification of our real estate portfolio.
Eric Slifka: In our retail business, we are one of three companies selected to work alongside the Massachusetts Department of Transportation to deploy MassDOT's $63 million allocation of the National Electric Vehicle Infrastructure Program, or NEVI, over the next five years. This is a unique opportunity for Global to accelerate our own plans to install DC fast EV charging stations at strategic retail locations across our network and to provide a safe, reliable, and enjoyable charging experience for the EV customer.
In our retail business. We wanted to we are one of three companies selected to work alongside the Massachusetts Department of transportation to deploy 63 million allocation of the National Electric vehicle infrastructure program are netting over the next five years. This is a unique opportunity for <unk>.
Speaker Change: To accelerate our own plans to install DC fast EV charging stations at strategic retail locations across our network and to provide a safe reliable and enjoyable charging experience for the customers.
Eric Slifka: We're finalizing the list of our first tranche of sites to be included for development, and we are proud to partner with MassDOT on this important initiative to increase the number of reliable DC fast-charging locations in the Turning to our distribution, in October the board declared a quarterly cash distribution on our common units of $0.73 or $2.92 on an annualized basis. This distribution represents a 6.6% increase over the prior year and is payable on November 14th to unit holders of record as of the close of business on November 8th.
Speaker Change: We are finalizing the list of our first tranche of sites to be included for developed.
We are proud to partner with NAFTA on this important initiative to increase the number of reliable DC fast charging locations in the Commonwealth.
Speaker Change: Turning to our distribution in October the board declared a quarterly cash distributions on our common units of <unk> 73 cents or <unk> 92 on an annual.
Speaker Change: Annualized basis.
Speaker Change: This distribution represents a six six increase over the prior year and is payable on November 14th to unitholders of record as of the close of business on November eight.
Gregory Hanson: Let me turn the call over to Greg for his financial review. Greg? Thanks, Eric, and good morning, everyone. As we review the numbers, please note that unless otherwise noted, all comparisons will be with the third quarter of 2023. Adjusted EBITDA was $114 million in the third quarter of 2024, compared with $77.7 million, and net income was $45.9 million, compared with $26.8 million in the previous year. Distributable cash flow was $71.1 million in the third quarter of 2004, compared with $42.2 million. And adjusted DCF was $72.6 million, compared with $43.3 million. Our last 12-month distribution coverage as of September 30 was 1.97 times, or 1.87 times after factoring in distributions to our preferred units.
Speaker Change: Let me turn the call over to Greg for his financial review and Craig.
Greg: Thanks, Eric and good morning, everyone.
Greg: Through the numbers. Please note that unless otherwise noted all comparisons will be with the third quarter 2023.
Greg: Adjusted EBITDA was $114 million in the third quarter of 24, compared with $77 7 million.
Greg: Net income was $45 9 million compared with $26 8 million in the previous year.
Greg: Distributable cash flow was $71 1 million in the third quarter of 24, compared with $42 2 million and adjusted DCF of $76 6 million compared with $43 3 million.
Greg: Our last 12 month distribution coverage as of September 30th was 197 times or 187 times after factoring in distributions to our preferred unit holders.
Gregory Hanson: Turning to our segment details, GDSO product margin increased $31.2 million in the quarter to $237.7 million. Product margin from gasoline distribution increased $32.1 million to $164.1 million. primarily reflecting higher fuel margins year-over-year. On a cents-per-gallon basis, fuel margins increased $0.09 to $0.40 in Q3'24, from $0.31 in Q3'23.
Greg: Turning to our segment details GSL product margin increased $31 2 million in the quarter to $237 7 million.
Greg: Margin from gasoline distribution increased $32 1 million to $164 1 million, primarily reflecting higher fuel margins year over year.
Greg: Per gallon basis fuel margins increased nine to <unk> 40 in Q3 24 from 31 in Q3 23.
Gregory Hanson: Station operations product margin, which includes convenience store and prepared food sales, sundries, and rental income, decreased 0.9 million to 73.6 million in third quarter of 24, in part due to the divestiture and conversions of certain company-operated sites. At Corridor End, our portfolio of fueling stations and C-store sites total 1,589. In addition, we operate 64 sites under our Spring Partners Retail Joint Venture. Looking at the wholesale segment, third quarter 24 product margin increased $33.9 million to $71.1 million. Product margin from gasoline and gasoline blend stocks increased $22.6 million to $43 million, primarily due to the acquisition of the Motiva terminals and to more favorable market conditions.
Greg: Asian operations product margin, which includes convenience store in prepared food sales sundries and rental income decreased <unk> 9 million to $73 6 million in the third quarter of 24 in part due to the divestiture and conversions of certain company operated sites.
Greg: At quarter end, our portfolio fueling stations and C store sites totaled 1589, and Additionally operates 64 sites under our spring partners retail joint venture.
Greg: Looking at the wholesale segment third quarter 'twenty four product margin increased $33 9 million to $71 1 million.
Greg: March from gasoline and gasoline blend stocks increased $22 6 million to $43 million, primarily due to the acquisition of the motiva terminals and to more favorable market conditions. Our product margin also benefited from the acquisition of the Gulf terminals in April.
Gregory Hanson: Our product margin also benefited from the acquisition of the Gulf terminals in April. Product margin from distillates and other oils increased $11.3 million to $28.1 million, primarily due to more favorable market conditions in distillates and residual oils. Commercial segment product margin increased $1.1 million to $9.5 million, in part due to more fair market conditions and bumping.
Greg: Product margin from distillate than other oils increased $11 3 million to $28 1 million, primarily due to more favorable market conditions and distillates and residual oil.
Greg: Commercial segment product margin increased $1 1 million to $9 $5 million in part due to more favorable market conditions and bunkering.
Gregory Hanson: Turning to expenses, our operating expenses increased $21.2 million to $137.1 million in the third quarter, largely related to the terminal acquisitions from Motega and Garner. SG&A expense increased $7 million in Q3'24 to $70.5 million, primarily due to increases in long-term incentive compensation, wages and benefits, and other expenses. Interest expense increased $14 million to $35.1 million in Q3-Q4, primarily due to interest expense related to the 8 ¼ senior notes issued this past January, which were used to facilitate the Motiva acquisition, and higher average balances on our credit facilities as a result of the recent Gulf Thermal Acquisition.
Greg: Turning to expenses, our operating expenses increased $21 2 million to $137 1 million in the third quarter largely related to the terminal acquisitions from monkey the Gulf.
Greg: SG&A expense increased $7 million in Q3 $24 million to $75 million, primarily due to increases in long term incentive compensation wages and benefits and other expenses.
Interest expense increased 14 to $35 1 million in the third quarter of 24, primarily due to interest expense related to the eight quarter Senior notes issued this past January which were used to facilitate the motiva acquisition and higher average balances on our credit facility as a result of the recent Gulf terminal acquisition.
Gregory Hanson: CapEx in the third quarter was $24.3 million, consisting of $11.2 million of maintenance CapEx and $13.1 million of expansion CapEx, primarily related to investments in our gasoline station and term line business. For the full year of 2024, we currently expect maintenance capex in the range of $50 to $60 million. Based on our anticipated projects to the end of the year related to investments in our gasoline stations and terminals, we are revising our planned expansion capex for 24 to a range of $40 to $50 million from our previous expectation of $60 to $70 million. These current estimates depend in part on the timing of project completion, availability of equipment and workforce, weather and unanticipated events, or opportunities requiring additional maintenance or investment.
Capex in the third quarter was $24 3 million consisting of $11 2 million of maintenance Capex and $13 1 million of expansion Capex, primarily to investments in our gasoline station and terminals businesses.
Greg: For the full year of 2024, we currently expect maintenance capex in the range of $50 million to $60 million.
Based on our anticipated projects to the end of the year related to investments in our gasoline stations and terminals. We are revising our planned expansion capex for 'twenty four to a range of $40 million to $50 million from our previous expectation of $60 million to $70 million.
Speaker Change: He is trying to estimates dependent part on the timing of project completion availability of equipment, and workforce, whether and anticipated events or opportunities requiring additional maintenance or investments.
Gregory Hanson: Our balance sheet remains strong at September 30th, with leverage as defined in our credit agreement as funded debt EBITDA at 3.27 times. And we have ample excess capacity in our credit facilities. As of September 30th, we have 219.2 million borrowings outstanding on our working capital revolver and 177 million outstanding on our revolving credit facility.
Speaker Change: Our balance sheet remains strong at September 30th.
Speaker Change: With leverage as defined in our credit agreement.
Speaker Change: As funded debt to EBITDA of $3, two seven times, and we have ample excess capacity and aircraft facilities as of September 30, we had $219 2 million borrowings outstanding on our working capital revolver and $177 million outstanding on our revolving credit facility.
Gregory Hanson: Turning to our upcoming investor relations calendar. In the coming weeks, we will be participating in the TD Securities Energy Conference, the B of A Leveraged Finance Conference, and the Wells Fargo Midstream and Energy Utilities Symposium. Please contact our investment relations team if you'd like to schedule a meeting during the And let me turn the call back to Eric for closing comments.
Turning to our upcoming Investor relations calendar in the coming weeks, we will be participating in the TD Securities Energy Conference. The Bofa leveraged Finance conference and the Wells Fargo Midstream and energy utilities suppose in.
Speaker Change: To contact our investor relation team, if you'd like to schedule a meeting during the conference.
Eric Slifka: Thank you, Greg. I want to express my thanks to the entire global team for your hard work and commitment to driving our success. We look forward to continuing this momentum and pursuing further opportunities for growth in the quarters ahead.
Eric Slifka: Now, let me turn the call back to Eric for closing comments.
Eric Slifka: Thank you Greg I want to express my thanks to the entire global team for their hard work and commitment to driving our success.
Eric Slifka: We look forward to continuing this momentum in pursuing further opportunities for growth in the quarters ahead.
Eric Slifka: With that, Mark, Greg, and I will be happy to take your questions.
Operator: Operator, please open the line for Q&A. Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tome will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Once again, if you would like to ask a question, press star 1 on your telephone keypad. One moment please while we poll for questions.
Speaker Change: With that Mark Greg and I will be happy to take your questions. Operator. Please open the line for Q&A.
Speaker Change: Thank you we will now be conducting a question and answer session.
Speaker Change: He would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: A confirmation tone will indicate your line is my question queue you.
Speaker Change: You May press star two if he would like to remove your questions on the queue.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: Once again, if you would like to ask a question press star one on your telephone keypad.
Operator: Thank you.
Selman Akyol: Our first question comes from the line of Selman Akyol with Staple. Please proceed with your question. Thank you. Good morning. Congrats on a nice quarter. Let me just start at the top.
Speaker Change: Please while we poll for questions.
Speaker Change: Thank you. Our first question comes from the line of Selman <unk> with Stifel. Please proceed with your question.
Speaker Change: Thank you good morning, congrats on a nice quarter.
Eric Slifka: Any impact from the elections at all? you guys are anticipating. I mean, we, you know, we've got to see how everything plays itself out. I mean, you know, we have a very durable business. Scales Business with long-term commitments in many parts of it. And so, you know, whatever may come our way, I think we're in a solid position to continue. Got it.
Speaker Change:
Speaker Change: Let me just start at the top.
Speaker Change: Any impact from the election at all that you guys are anticipating.
I mean, we've got to see how everything plays itself out I mean, we have a very durable business.
Speaker Change: <unk> business.
With long term commitments in many parts of it and so.
Whatever whatever may come our way I think we're in a solid position to continue to execute.
Eric Slifka: And then you alluded to this in your comments in the most recent terminal acquisition, but 730 acres, awful large footprint. What do you plan on doing with all this? I think there's opportunity there, right? And I'm not saying that we're doing anything tomorrow with it, but I think the bottom line is we bought a great asset, it's got great access, a good deep water dock, it's got good tankage and good racks, and then, oh, there's some land there too, and if there's other opportunities, we're going to do our darnedest to take advantage of those opportunities for real estate as well.
Speaker Change: Got it.
Speaker Change: And then you alluded to this in your comments and in the.
Speaker Change: The most recent terminal acquisition, but 730 acres awful large footprint.
Speaker Change: Hmm.
Speaker Change: What do you plan on doing with all of them.
Speaker Change: So those acres.
Speaker Change: Opportunity, there right and I'm, not saying that we're doing anything tomorrow with it but I think the bottom line is we bought a great asset.
Speaker Change: It's got great access of the deepwater Dockets got good tankage and good racks and.
And then Theres some land there too and if theres other opportunities.
Selman Akyol: Got it.
Speaker Change: We're going to do are going to take advantage of those opportunities for real estate as well.
Eric Slifka: Maybe you could talk a little bit about the outlook for acquisitions. whether it's terminals or GDSO. Yeah, I mean, it's been busy, right? Continues to be busy. We're very selective. Valuations are still relatively high. But we've got to find the right deals that fit the company that we think we can make accretive to global and we're going to try to maintain that discipline and deliver on those returns. Got it.
Got it maybe you could talk a little bit about the outlook for acquisitions.
Speaker Change: Whether it's terminals or two DSO.
Speaker Change: Yeah, I mean, it's been busy rate continues to be busy we're very selective.
Speaker Change: Valuations are.
Speaker Change: Are still relatively high.
But we've got to find the right deals that fit the company that we think we can make.
Speaker Change: Oh.
Speaker Change: Accretive to global and we're going to try to maintain that discipline and deliver on those returns.
Eric Slifka: And then, um... Just along those lines, thinking about your partnership down in Houston, I guess it's been fairly static since you've done it. Is there any update there? Is there anything to talk about in terms of is it just a more competitive market than you thought? Just any comments that are around that. Yeah, I mean, we haven't had it that long, I would say that we continue to tweak and drive value, and make sure that we're organized down there in the most efficient way. You know, I think there's a positive outlook on that partnership.
Speaker Change: Got it and then.
Speaker Change: Just along those lines thinking about your partnership down in Houston.
Speaker Change: I guess, it's been fairly static since you've done or is there any update there or is it totally.
Anything you can talk about in terms of is it just a more competitive market than you thought.
Speaker Change: Just any commentary around that.
Speaker Change: Yeah, I mean, we haven't had it that long I would say that we continue to tweak and drive value.
Speaker Change: And make sure that we're organized down there in the most efficient.
Eric Slifka: And we're really looking to see if we can do more in You talked about EV chargers and you're trying to finalize your first tranche, but I guess Can you talk about maybe a number of... of EV chargers you could see across your system. Anything from a high level? Yeah, I mean, you know, in terms of thought, it's a huge scale. But we're going to try to be financially disciplined around what we do to limit the risk. and and so making sure that we're partnering with government to try and build out a network in place. that are desirable for our customers is really important, but making sure that we do it in a disciplined way is really critical, right?
Speaker Change: I think is a positive outlook on that partnership and.
Speaker Change: Really looking to see if we can do more in that market.
Speaker Change: Got it and then last one for me.
Speaker Change: You talked about.
Speaker Change: <unk> charges and you're trying to finalize your first tranche, but.
Speaker Change: Yes.
Can you talk about maybe a number of.
Speaker Change: Of EV Chargers, you could see across your system.
Speaker Change: Anything from a high level.
Speaker Change: Yeah, I mean it.
Speaker Change: In terms of it's a huge scale.
Speaker Change: But.
Speaker Change: We're going to try to be financially disciplined around what we do to limit the risk.
Speaker Change: And so making sure that we're partnering with government to try and build out our network in places.
Speaker Change: That are desirable for for our.
Eric Slifka: It's still early innings. in that business. And we want to make sure that that we really keep a lid on any risks that we may have. Got it.
Speaker Change: Customers is really important but making sure that we do it in a disciplined way is really critical right. It's still early innings.
Speaker Change: In that business and we want to make sure that we really keep a lid on any risk that we may have.
Eric Slifka: And I lied. I did have one more. So on your CPG, you showed a very nice increase year over year. Anything to say in there? How durable that is? Anything we should be thinking about just moving higher? Yeah, I mean, I'll give my two cents to Selman, that's Greg and Mark can weigh in too. I mean, I think, you know, we saw some good volatility over the summer. You know, if you look at our buff, wholesale, our buff prices were down 57 cents from 630 to 930 period. So that's some opportunity for us to. We've seen some margin from the difference in the wholesale prices versus the street and the movement in both of those prices.
We developed a network out.
Speaker Change: Got it and I lied.
Speaker Change: I did have one more so on your CPG you showed a very nice increase year over year.
Speaker Change: Anything to say in there how durable that is anything we should be thinking about it just as you know are moving higher.
Speaker Change: Yeah, I mean, I'll give my two cents on that as Greg and Mark.
Speaker Change: And went into I mean, I think we saw some good volatility over the summer if you look at our wholesale our box prices were down 50.
Speaker Change: <unk> 57 tenths from from 630 to 930 period. So it has some opportunity for us to see some margin from the the difference in the wholesale prices versus the street and the movement of prices I think what others have said and what we continue to believe two is that.
Eric Slifka: You know, I think what others have said and what we continue to believe, too, is that the market has changed from a consolidation standpoint. It continues to consolidate. Although it's highly fragmented still, it continues to consolidate. And you've got higher break-even costs that smaller-scale operators need to have on the fuel margins, and that's the biggest lever for them to pull. So I think volatility is typically good for our fuel margins, so less volatility, you could see it creeping down in tightness again. I do think structurally you're going to have higher fuel margins. I don't know what level those are going to be at, and we're not betting on them for our business, but I think we do have seen favorable margins over the last couple of years.
Speaker Change: The market has changed from a consolidation standpoint continues to consolidate although it's highly fragmented astellas continues to consolidate and you've got higher breakeven costs that smaller scale operators need to need to add on the fuel margin and that's the biggest lever for them to fall. So I think.
Speaker Change: Thank you all.
Volatility is typically good for our fuel margin so less volatility you could see it creeping down and tightness again.
Speaker Change: Structurally you're going to have higher fuel margins I don't know what levels those are going to be yet and we're not betting on them for our business, but I think we do have seen favorable margins over the last couple of years.
Selman Akyol: Got it. Thank you.
Operator: We have reached the end of the question and answer session.
Speaker Change: Yeah.
Eric Slifka: I'd now like to turn the floor back over to Mr. Slifka for closing comments. Thank you for joining us this morning. We look forward to keeping you updated on our progress and I hope everybody has a wonderful Thanksgiving. Thanks, everyone.
Speaker Change: Got it thank you.
Speaker Change: Thank you we have reached the end of the question and answer session I'd now like to turn the floor back over to Mr. Slifka for closing comments.
Speaker Change: Thank you for joining us. This morning, we look forward to keeping you updated on our progress and I hope everybody has a wonderful Thanksgiving. Thank you.
Operator: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.
Speaker Change: Yeah.
Speaker Change: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.