Q3 2024 Spanish Broadcasting System Inc Earnings Call
To turn the conference over to Brad Edwards of Investor Relations. Please go ahead.
Thank you Wyatt and good morning, everyone. Before we begin please recognize that certain statements on this conference call are not historical fact.
May be deemed therefore to be forward looking statements under the private Securities Litigation Reform Act of 1095.
In particular statements.
Statements about future results expected to be obtained from the Companys current strategic initiatives are forward looking statements. Many important factors may cause the company's actual results to differ materially from those discussed in any such forward looking statements.
Spanish broadcasting system.
Undertakes no obligation to publicly update or revise its forward looking statements.
Please also note that we will be discussing non-GAAP financial measures. The company believes that operating income before depreciation and amortization loss on the disposal of assets impairment charges and other operating expenses.
Excluding noncash stock based compensation or adjusted Oi BDA is useful in evaluating its performance because it reflects a measure of performance for the company stations before considering costs and expenses related to capital structure and dispositions.
This information is not intended to be considered in isolation or as a substitution for operating income net income or loss cash flows from operating activities or any other measure used.
In determining the company's operating performance or liquidity that is calculated in accordance with U S. GAAP.
With the formalities aside I will now turn the conference over to Mr. <unk>.
<unk>: Thank you Brad.
<unk>: Good morning, ladies and gentlemen, thank you for joining me for the Sba's third quarter 2024 earnings call.
<unk>: It is a pleasure to have this opportunity to update you on our company's progress both from a strategic and operational perspective.
<unk>: We are finishing 2024 excited.
<unk>: Having delivered a record year of <unk>.
<unk>: Both for every consecutive quarter, giving with Q4 of last year.
<unk>: Into 2025.
<unk>: RSP is team has worked arduously growing our brands are known.
AD partners and maintaining our overall multimedia Spanish language you chip.
<unk>: While staying laser focused on our efficiency initiatives and as I'll discuss.
Efforts continue to drive impressive results.
<unk>: For example.
<unk>: Adjusted Oi BDA increased a record 73% during the third quarter.
<unk>: And then aggressive 78% year to date, including TV reflected in discontinued operations. Additionally, the company is anticipating comparable adjusted Oi BVA growth in the fourth quarter and for the year.
<unk>: While we are guardedly happy about our progress our work is far from complete.
<unk>: We are doubling down on yet another loan by line cost elimination review.
<unk>: All business units, which as <unk> stated previously we will continue well into 2025.
<unk>: Some of you have asked why continue with the cost cutting why is it taking so long.
<unk>: Why not contract and efficiency consultants and implement across the board percentage cuts at all business units and get it over with.
<unk>: The answer is that we have taken pains to identify where we can reduce expenses without hurting the overall integrity of the business.
<unk>: This includes finding the creative and motivated personnel the consume additional duties without sacrificing effectiveness, while eliminating the sacred cows and methods that have no place in today's challenging competitive environment.
<unk>: And importantly, this must be accomplished without making the mistake of eliminating a particular initiatives strategy or individuals that may represent a future potential that is as yet on the scene.
<unk>: That type of expense.
<unk>: Elimination demands the requisite investment in time to get it right.
While we prudently manage our costs, we will not forfeit our responsibility of serving the Hispanic community as required in order to retain our leadership status in the marketplace for example.
<unk>: We've continued to debut industry, leading talent across many of our brands and introducing innovative formats like the one we'll be launching today in Houston, the nation's third largest Hispanic DMA I'd.
Speaker Change: I'd like to take this opportunity to thank Mr. Liggins of urban one.
<unk>: Personal courtesy in allowing us.
<unk>: Deferred consummation of K R I S.
<unk>: Abused.
<unk>: In addition to driving local sales and future local regional and national revenues and the important state of Texas, Our Houston outlet bolster our Aida sales.
<unk>: Sales in aggregate audience growth that will increase our national revenues and digital impressions and convert Houston into another venue.
Why not contract inefficiency consult and implement across the board percentage cuts at all business units and get it over with.
<unk>: Our entertainment division will be able to deliver thrilling live experiences along with ticket and sponsorship revenues mirroring the successful matrix, we employ at all our <unk> markets.
The answer is that we are taking gains to identify where we can reduce expenses without hurting the overall integrity of the business.
This includes finding creative himself motivated personnel the consume additional duties without sacrificing effective.
<unk>: The strength of radio is and will always be its local prominence and we intend to take full advantage of our new Houston flagship as it joins our stable of winning audio brands from around the nation in fact from a local perspective, our content production has surpassed 40.
While eliminating the sacred cows and methods that have no place in today's challenging competitive environment.
And importantly, this must be accomplished without making the mistake of eliminating a particular initiatives strategy. All individuals that may represent a future potential that is as yet unseen.
<unk>: Hours per day over award winning audio offerings. This is driving our strong station ratings performance across the largest Hispanic DMA.
That type of expense elimination demands the requisite investment in time to get it right.
<unk>: There have been many studies published recently that point.
<unk>: Not just the resiliency with the continued growth potential and influence of audio whether in the car on a computer or a smartphone.
While we prudently manage our costs, we will not forfeit all responsibility of serving the Hispanic community as required in order to retain our leadership status in the marketplace. For example, we've continued to debut industry, leading talent across many of our brands and introducing innovative formats like the one we'll be launching today.
<unk>: Wherever and whenever listeners want to connect with Sps.
<unk> will be there for them.
And by pairing a sharp focus on efficiency with leading national brands.
Houston, the nation's food largest in spine DNA.
<unk>: Music a digital platform.
Speaker Change: Like to take this opportunity to thank Mr. Liggins of urban one who is personal courtesan, it, allowing SBS food consummation of K R. I S.
<unk>: Our deep understanding of connection of the rapidly expanding Latino population across the nation. The future for Sps is one of connected expansion and growth.
Houston.
<unk>: We have been a trusted lifestyle and entertainment partner for Latinos nationwide for over 42 years, and we will continue to be that and more while delivering increasing returns to our stakeholders in summary.
Speaker Change: In addition to driving local sales and future local regional and national revenues in the important state of Texas, Our Houston outlet will bolster our Aida network sales and aggregate audience rules that will increase our national revenues and digital integrations and convert Houston into another venue.
<unk>: We appreciate your participating in our journey.
<unk>: As we continue to deliver significant strategic financial and operational progress into 2025 and beyond.
Speaker Change: Where our entertainment division will be able to deliver thrilling live experiences along with ticket.
Speaker Change: Sponsorship revenues mirroring the six.
Speaker Change: And with that I'd like to turn the call over to Brad who has rounded up some common questions from a number of our stakeholders right.
Speaker Change: Sensible matrix, we employ at all our O&M markets.
Speaker Change: The strength of radio is and will always be its local permanent and.
Brad: Thank you Raul so.
We received a number of key.
Speaker Change: And we intend to take full advantage of our new Houston flagship as he joins our stable of winning audio brands from around the nation in fact from a local perspective, our content production has surpassed 40 hours per day of award winning audio offerings. This is driving our strong station.
Speaker Change: Questions regarding a more detailed view of the third quarter performance.
Brad: And does.
Brad: That includes some color on the revenue results for local versus National network and digital.
Political what was core revenues.
Brad: Im throwing a lot at you sorry, but it's really just a breakdown of revenue and.
Speaker Change: Wages performance across the largest Hispanic DMA.
Brad: And our performance versus newer Kaplan reports for your markets.
Speaker Change: There have been many studies published recently that point too.
Speaker Change: Not just the resiliency, but continued growth potential and influence of audio whether in the car on a computer or a smartphone.
Brad: Okay.
Brad: So let's start with the following Q.
Brad: Q3 revenue highlights third quarter network revenues were up 16%.
Speaker Change: Wherever and whenever listeners want to connect with SBS.
And we're expecting to end the year up single digits in network.
Speaker Change: We will be there for them.
Brad: As we've discussed previously national sales have been down for most of the year I believe that's true across the entire industry. However.
Speaker Change: And by building, a sharp focus on efficiency with leading national brands.
Speaker Change: <unk> digital platform and our deep understanding of connection of the rapidly expanding Latino population across the nation. The future for Sps is one of connected expansion and growth.
Brad: We are currently pacing up single digits for Q4 and.
Brad: I would expect to end the year down around 8%.
Brad: Local sales were up local single excuse me up low single digits for the quarter year to date, our local sales are up 12%.
Speaker Change: We have been a trusted lifestyle and entertainment partner for Latinos nationwide for over 42 years, and we will continue to be that and more while delivering increasing returns to our stakeholders and summary.
And total cash radio sales were flat for the quarter.
Brad: Political sales were negligible for the quarter around $500000 in total.
Speaker Change: We appreciate your participating in our journey as we continue to deliver significant strategic financial and operational progress into 2025 and beyond.
Brad: They were split more or less evenly between radio and TV.
Brad: Regarding Miller Kaplan nearly all Sps stations outperformed their respective markets overall Miller Kaplan showed those markets up slightly at one 3%, while the Sps stations outperformed with an average growth of four 9% through October.
Speaker Change: And with that I'd like to turn the call over to Brett Maas rounded up some common questions from a number of our stakeholders right.
Speaker Change: Thank you Raul so.
Speaker Change: We received a number of questions regarding a more detailed view of the third quarter performance.
Okay.
Great. Thanks hurdle at next question.
Brad: Can you comment on the pre election pacing versus post election pacing in Q4.
And.
Does that include some color on the revenue results for local versus National network and digital pool.
Brad: Yes, certainly we have we had a few questions regarding that and yes as expected we saw a slight lift in the post election Q4 pacings.
Speaker Change: Political what was core revenues I know I'm throwing a lot at you sorry, but it's really just a break revenue and.
Speaker Change: And our performance versus nowhere Kaplan.
Brad: About 3%.
Speaker Change: Ports for your markets.
Speaker Change: Yeah.
Great and then moving on to.
Okay.
So let's start with the following Q3 revenue highlights third quarter network revenues were up 16%.
Brad: Can you comment on the continued cost cutting initiatives is the current level of expenses in Q3.
And we're expecting to end the year up single digits.
Brad: Is that the right run rate looking forward into 2025.
Mark.
As we've discussed previously national sales have been down for most of the year I believe that's true across the entire industry. However.
Brad: As I mentioned in my opening remarks, we are.
Brad: Still in the midst of our line by line review of all company costs and expenses, we expect continued savings as well as.
Speaker Change: We are currently pacing up single digits for Q4 and.
Speaker Change: I would expect to end the year down around 8%.
Brad: Continued sequential decreases decreases in expenses as any new savings on layered into the expense reductions that have already taken place. So in reality, we are not at a current run rate just yet there are more savings to be wrung out of the operation.
Local sales were up local single excuse me up low single digits for the quarter year to date, our local sales are up 5%.
Speaker Change: And total cash radio sales was flat for the quarter.
Brad: Let me take a moment to clarify that we're not shooting for a specific targeted dollar amount of savings we will continue to implement reductive cost initiatives as we see fit.
Political sales were negligible for the quarter around $500000 in total.
Speaker Change: Split more or less evenly between radio and TV.
Speaker Change: Regarding Miller Kaplan nearly all Sps stations outperformed their respective markets overall Miller Kaplan showed those markets up slightly at one 3%, while the U S. P. S stations outperformed with an average growth of four 1% in October.
Brad: Until we feel we've reached an operational paradigm.
Brad: It will establish a significantly lower cost threshold for the companys ongoing operations without sacrificing the quality of our content, we are not there yet ladies and gentlemen.
Speaker Change: Okay.
And thank you for that color.
Speaker Change: Great. Thanks Hurdle next question.
Brad: We.
Brad: Also got questions so turning to <unk>.
Speaker Change: Can you comment on the pre election pacing versus post election pacing in Q4.
Capital structure can you can you comment on any update regarding the companys.
Speaker Change: Yes, certainly we have we had a few questions regarding that and yes as expected we saw a slight lift in the post election Q4 pacings.
Brad: Sps's revolving credit facility are you planning to extend it.
Brad: Yeah, we do expect to extend the company's revolver facility and our.
Speaker Change: About 3%.
Brad: Right now in the process of documenting its extension well past its current maturity date of February 2025.
Speaker Change: Great and then moving on to.
Speaker Change: Can you comment on the continued cost cutting initiatives is the current level of expenses in Q3.
Alright, so I'm moving now to <unk>.
Speaker Change: Is that the right run rate looking forward into 2025.
Brad: Houston.
Brad: Can you comment on the investment plans.
Brad: For the Houston station.
Speaker Change: As I mentioned in my opening remarks, we are still in the midst of all of it.
Brad: And provide any kind of update on your expected path to profitability.
Brad: Yes, sure certainly let me just say at the outset that Sps has proven again and again.
Speaker Change: By line review of all company cost and expenses, we expect continued savings as well as continue.
Brad: Over the course of four decades to be an expert operator of successful startup radio stations in multiple formats and markets throughout the nation as well as overseas.
Speaker Change: Continued sequential decreases decreases in expenses as any new savings are layered into the expense reductions that have already taken place. So in reality, we are not at a current run rate just yet there are more savings to be wrung out of the operation let.
Brad: That's an experience that's been glean for many years of heated competition.
Brad: With some of the most entrenched radio operators and is one of our company's signature calling cards.
Let me take a moment to clarify that we are not shooting for a specific targeted dollar amount of savings we will continue to implement.
Brad: Which we are.
Brad: Justifiably proud.
Brad: As an example allow me to point out that our recent market entries into Orlando and Tampa.
Speaker Change: Cost initiatives as we see fit.
Speaker Change: Until we feel we've reached an operational pay down debt.
Brad: Required us to debut two new startups Spanish language formats in two distinct markets simultaneously and with great success.
Speaker Change: We'll establish a significantly lower cost threshold for the Companys ongoing operations without sacrificing the quality of our content, we are not there yet ladies and gentlemen.
Brad: Houston is no different we plan an aggressive entry into the market with a keen eye on keeping a tight lid on expenses, but with an overall goal of staking a strong claim on that cities Latino population.
Speaker Change: And thank you for that color.
Speaker Change: We.
Speaker Change: Also got questions so turning to.
Speaker Change: Capital structure can you can you comment on any update regarding the companys.
Brad: And it's just one example, I am happy to announce that we have secured the on air participation of road bring these.
Speaker Change: Sps's revolving credit facility are you planning to extend it.
Houston is most beloved Hispanic morning drive personality during the last two decades.
Speaker Change: Yeah, we do expect to extend the company's revolver facility and our.
Brad: So without getting into any specific forward looking numbers I will say that.
Speaker Change: Right now in the process of documenting its extension well past its current maturity date.
We expect the station to reach profitability during its second year of operation obviously.
Speaker Change: February 2025.
Brad: Obviously as you can see we're very excited about our Houston opportunity.
Speaker Change: Great. So I'm moving now to <unk>.
Houston.
Brad: Thank you our ROA and we.
Speaker Change: Can you comment on the investment plans.
We should be excited.
Speaker Change: For the Houston station.
Brad: On a similar note because obviously Houston station versus an acquisition is there any update on M&A opportunities, whether it's an acquisition or divestiture.
Speaker Change: And provide any kind of update on your expected path to profitability.
Speaker Change: Yes, sure certainly let me just say at the outset that U S.
Speaker Change: There's proven again it again.
Brad: Yes, Brad we remain committed.
Speaker Change: Over the course of four decades to be an expert operator of successful startup radio stations in multiple formats and markets throughout the nation as well as overseas.
Brad: Integrating our recent station acquisitions as well as examining options to build out our audio and digital footprint.
Brad: <unk>, David initiative, which will join up audio video components.
Speaker Change: That's an experience that's been glean from many years of heated competition with some of the most entrenched radio operators and is one of our company's signature colon College of which we are you know justifiable.
Brad: Our successful on air and on demand content.
Brad: The Latino population across the country is growing rapidly.
Speaker Change: Just a viable route.
Brad: And as many know its annual purchasing power.
Speaker Change: As an example allow me to point out that our recent market entries into Orlando and Tampa.
Brad: <unk> three six trillion dollars and it's now the fifth largest economy in the world.
Speaker Change: Required us to debut two new startups Spanish language formats in two distinct markets simultaneously and with great success.
Brad: We have been a trusted partner of the Latino community for over four decades.
Always strong to deepen our connection with our listeners and deliver a highly engaged and valuable demographic to our advertising partners if opportunities arise that make sense, we will certainly consider them, but in the near term. Our primary focus is on continuing to work with many combinations.
Speaker Change: Houston is no different we plan an aggressive entry into the market with a keen eye on keeping a tight lid on expenses, but with an overall goal of staking a strong claim on that cities Latino population.
Speaker Change: As just one example, I am happy to announce that we have secured the on air participation of road bring these.
We're highly rated Spanish language stations across the.
Speaker Change: Houston was most beloved Hispanic morning drive personality during the last two decades.
Brad: The largest Hispanic DMA in the country.
So without getting into any specific forward looking numbers I will say that.
Brad: Great. Thank you for that color and then.
Brad: On a on a similar note.
Speaker Change: That we expect the station to reach profitability during its second year of operation obviously.
Brad: Investors are looking for maybe some insights into your outlook for the SBS. This outlook for the much needed consolidation within the media industry.
Obviously as you can see we're very excited about our Houston opportunity.
Speaker Change: Thank you our ROA and we.
Brad: Yes.
Speaker Change: We should be excited.
Brad: We will look closely.
On a similar note because obviously Houston station versus an acquisition is there any update on M&A opportunities, whether it's an acquisition or divestiture.
Brad: Consolidation opportunities.
Brad: That can provide real synergistic benefits that is to say the beta.
Brad: Our increase in EBITDA.
Yeah.
Speaker Change: Yes, Brad we remain committed.
Brad: To the bottom line with that said, we're thrilled about our collection of assets legacy audio stations, including one new to the family our digital platform, our Michigan as well as the strength of our entertainment platform, but we will look at interesting consolidation opportunities.
Speaker Change: Integrating our recent station acquisitions as well as examining options to build all our audio and digital footprint.
Speaker Change: Through our announced David initiative, which will join up audio video components.
Speaker Change: If successful on an on demand content.
Brad: As they arise.
The Latino population across the country is growing rapidly.
Brad: Alright, Thanks, Charl and then shifting to the entertainment business SBS eight can you provide.
Speaker Change: And as many know its annual purchasing power.
Speaker Change: 3.6.
Speaker Change: And it's now the <unk>.
The summary of the number of special events or expect a hole in Q4.
Speaker Change: Fifth largest economy in the world.
Speaker Change: We have been a trusted partner of the Latino community for over four decades.
And are you expecting special event revenues for full year 2024 to be in line with 2023.
Speaker Change: Always strong to deepen our connection with our listeners and deliver a highly engaged and vulnerable demographic to our advertising partners if opportunities arise that make sense, we'll certainly consider them, but in the near term. Our primary focus is on continuing to work many combinations.
Brad: We produced three major successful events in Q4.
Brad: New York City, and Miami revenues generated from the three events were up single digits versus the events held during Q4 to 2023.
Speaker Change: It was highly rated Spanish language stations of course.
Brad: Three events.
Speaker Change: Profitable so yes.
Speaker Change: The largest Hispanic DMA in the country.
Speaker Change: We expect our results for the year to mirror.
Speaker Change: And in some cases exceed.
Speaker Change: Great. Thank you for that color and then.
Speaker Change: Our revenue generation.
Speaker Change: On a on a similar note.
Speaker Change: Through special events and concerts.
Speaker Change: Investors, who are looking for maybe some insights into your outlook for the SBS. This outlook for the much needed consolidation within the media industry.
Speaker Change: In 2023.
Speaker Change: Great and then moving.
Speaker Change: Shifting back to audio movement onto the Orlando and Tampa stations, how have those stations performed year to date from a revenue and or BVA perspective.
Yes.
Speaker Change: We will look closely.
Speaker Change: Consolidation opportunities.
Speaker Change: That can provide real synergistic benefits that is to say a bit.
Speaker Change: On a year to date, our revenues at our Orlando Tampa Metroplex.
Speaker Change: The increase in EBITDA.
Speaker Change: To the bottom line with that said, we're thrilled about our collection of assets legacy audio stations, including one is new to the family our digital platform, our Michigan as well as the strength of our entertainment plant, but we will look at interesting consolidation opportunities.
Speaker Change: Were up 17%.
Speaker Change: And or BVA was also up $1 2 million.
Great and then moving back to capital structure.
Speaker Change: The companies how are you planning to address the 2026 notes.
Speaker Change: As they arise.
Speaker Change: Alright, Thanks, Carlo and then shifting to the entertainment business SBS eight can you provide.
Well.
Speaker Change: With the proceeds from our anticipated asset sales and home.
Speaker Change: We will be looking to meet with our bondholders prior to the maturity date of our bonds with an eye towards either extending the maturity or refinancing them in their entirety.
Speaker Change: Summary, the number of special events, we expect a hole in Q4.
Speaker Change: And are you expecting special event revenues for full year 2024 to be in line with 2023.
Speaker Change: In a matter acceptable.
Speaker Change: To all parties.
Speaker Change: We produced three major successful events in Q4.
Speaker Change: We firmly believe that the outstanding growth in EBITDA Judy.
In New York City, and Miami revenues generated from the three events were up single digits versus the events held during Q4 to 2023.
Speaker Change: Judy this intervening period.
Speaker Change: We will prove instrumental in providing.
Speaker Change: Seamless beneficial recasting.
Speaker Change: The company's capital structure.
Speaker Change: All three events were comfortable so yes.
Speaker Change: Moving forward.
We expect our results for the year to mirror.
Speaker Change: Great and then staying on that.
Speaker Change: Staying on this subject.
Speaker Change: Paul.
Speaker Change: Finally can you.
Speaker Change: In some cases exceed.
Speaker Change: Last question can you comment on the status of the.
Speaker Change: Our revenue generation.
Speaker Change: Through special events and concerts.
Speaker Change: Sps's asset sales.
Speaker Change: Yes, we've had with great good fortune of being in a market environment, where the prices of these premier assets has actually increased over time now obviously.
Speaker Change: In 2023.
Great and then moving.
Speaker Change: Shifting back to audio movement onto the Orlando and Tampa stations, how have those stations performed year to date from a revenue and BVA perspective.
Speaker Change: That has complicated the selling process is our ultimate goal.
Speaker Change: It is bringing to lock in top dollar prices for these assets.
On a year to date, our revenues at our Orlando Tampa Metroplex were up 17%.
We are confident that we'll be announcing the conclusion of our sales processes.
Speaker Change: These ounces in the very near future.
Speaker Change: And Oi BBA was also up.
Speaker Change: Great. Thanks for your thanks role and that covers the western questions submitted by the company stakeholders.
Speaker Change: One $2 million.
Speaker Change: Great and then moving back to capital structure.
Speaker Change:
Speaker Change: Raul.
Speaker Change: And I will turn it back to you for any closing remarks.
The companies how are you planning to address the 2026 notes.
Speaker Change: Well, thank you, Brad and with that ladies and gentlemen, I'd like to thank all of you on the call for your time. This morning. Your continued support is greatly appreciated by all of us on SBS.
Speaker Change: Ah well.
Speaker Change: With the proceeds for more anticipated asset sales and home.
Speaker Change: We will be looking to meet with our bondholders prior to the maturity date of our bonds with an eye towards either extending the maturity.
Speaker Change: Look forward to updating you on the Companys progress again.
Speaker Change: In the near future. Thank you and good morning to all.
Speaker Change: Financing them in their entirety.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: In a manner acceptable.
To all parties.
Judy: We firmly believe that the outstanding growth in EBITDA Judy.
Speaker Change: Yeah.
Speaker Change: During this intervening period.
Speaker Change: We will prove instrumental in providing.
Seamless beneficial recasting.
Speaker Change: Of the company's capital structure.
Speaker Change: Moving forward.
Speaker Change: Great and then staying on that.
Speaker Change: Staying on this subject finally can you.
Speaker Change: Last question can you comment on the status of the U.
Speaker Change: Sps's asset sales.
Yes, we've had a great good fortune of being in a market environment, where the prices of these premier assets has actually increased over time now obviously.
Dan: Dan has complicated the selling process is our ultimate goal.
Dan: I was just going to lock in top dollar prices for these assets.
We are confident that we'll be announcing the conclusion of our sales processes.
Dan: These assets in the very near future.
Dan: Great. Thanks for your thanks role and that covers the western questions submitted by the company stakeholders.
Dan:
Raul: Thank you Raul.
And I'll turn it back to you for any closing remarks.
Raul: Well, thank you, Brad and with that ladies and gentlemen, I would like to thank all of you on the call for your time this morning.
Raul: Continued support is greatly appreciated by all of us at Sps.
Raul: Look forward to updating you on the company's progress again.
Raul: In the near future. Thank you and good morning to all.
Raul: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
[music].
Raul: Okay.
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