Q1 2025 Cogeco Inc Earnings Call
At this time I would like to turn the conference over to Mr. Ethics, We met Chief Financial Officer of Cogeco, and Cogeco Communications, Inc. Please go ahead Michelle women.
Speaker Change: Thank you good morning, and happy New year, everyone. So welcome to our first quarter results conference call as usual before we begin the call I'd like to remind listeners that today's discussion will include estimates and other forward looking information.
Ask that you review the cautionary language in the press releases issued yesterday and in our annual reports regarding the various risks assumptions and uncertainties that can cause our results to differ and with that I'll now pass the line to ceramic they offer opening remarks. Thank you Pat and good morning, everyone and happy new year on my behalf.
Speaker Change: Well, we're pleased to report our Q1 results. This morning and provide a progress report on several of our initiatives.
Speaker Change: We take great pride in our rational approach to value creation.
Speaker Change: Our goal is to drive superior execution, and enable sustainable growth and optimize our capital deployment in order to progressively increase our cash flow delivery over time.
Speaker Change: Our operational priorities are the same we've been communicating over the past year.
Speaker Change: Drive, Canada U S synergies increased digitization of our sales and service interactions.
Speaker Change: Accelerate advanced analytics.
<unk> disciplined network expansion and cross sell wireless.
Speaker Change: The delivery of those five priorities as orchestrated through our structured three year transformation program with over 150 initiatives.
Speaker Change: Associated financial Kpis.
Speaker Change: We are delighted to report that we're making strong early progress on these priorities.
Speaker Change: Our transformation efforts contributed to an expansion of our EBITDA margins.
Speaker Change: We've now rolled out <unk> mobile and our Canadian wireless effort is well on track to go to market over the coming quarters.
Speaker Change: We're also seeing interesting customer momentum on both sides of the border.
Speaker Change: In Canada, we achieved strong internet subscriber growth again, this quarter and are not seeing any signs of slowing down.
Speaker Change: In the U S customer satisfaction is improving quite nicely.
And we're seeing early signs of improvement in our subscriber metrics.
Speaker Change: In Ohio in particular, we just had our best quarter since we acquired that business.
Speaker Change: We're cautiously optimistic about the potential for continued steady improvement in our U S customer metrics over the coming quarters.
Speaker Change: Now, let's take a look at our Q1 results.
Speaker Change: Our first quarter consolidated results were well aligned with our focus on balancing subscriber growth, which financial performance.
Speaker Change: At Cogeco Connexion, our Canadian telecommunications business, we continue to experience strong internet subscriber growth with our base expanding by 10700 subscribers under both the <unk> and <unk> brands.
Speaker Change: We continue to make progress in our Ontario fiber network expansion in rural areas. This subsidized extension program will continue through fiscal 2025 and in fiscal 2026.
Speaker Change: As a reminder, our Quebec network expansion program was completed in the last fiscal year.
Speaker Change: We have recorded higher than expected customer penetration levels in these greenfield expansion areas.
Speaker Change: And have now increased our number of Canadian homes passed by nearly a 139000 since the beginning of fiscal 2022.
Speaker Change: At Breeze line EBITDA remained stable versus last year as planned due to a combination of efficiency improvements lengthening customer 10 year, resulting from increased satisfaction.
Speaker Change: And a better mix of higher margin services as our Breeze line customers sign up for increasingly fast internet speeds.
Speaker Change: Our U S fiber network expansion program added 3200, new homes passed in the quarter, bringing our total to more than 124000 homes passed since the beginning of fiscal 2022.
Speaker Change: Meanwhile, Internet subscriber metrics in both our legacy and Ohio regions improved in Q1, both on a year over year and quarter over quarter basis.
Speaker Change: With regards to our radio business critical media experienced ongoing challenges in the radio advertising market that contributed to lower than anticipated revenue.
Speaker Change: However, digital advertising solutions revenue showed resilient growth again this quarter and continues to provide an increasingly meaningful contribution to the businesses overall revenue.
Speaker Change: Furthermore, we are pleased to report that Cogeco Media's stations remained at the top of the ratings again in Q1.
Patrick <unk>: Now, let me turn the call over to Patrick <unk>, who will provide more details on our financial performance for the quarter.
Patrick <unk>: Thank you Fred So in Canada, Cogeco Connexion revenue remained stable.
Speaker Change: Driven mainly from a higher proportion of intranet service subscribers under the <unk> brands and the contribution from the <unk> acquisition.
Adjusted EBITDA increased by one 6% due to stable revenue lower operating expenses and a gain on sale of assets, partially offset by costs related to subscriber growth initiatives.
Speaker Change: In the U S. <unk> revenue declined by three 4% in constant currency.
Speaker Change: Although subscriber trends started to show improvement the cumulative decline in the subscriber base, especially for entry level services and video cord cutting more than offset the improving product mix.
Speaker Change: Adjusted EBITDA was stable driven by cost reduction initiatives operating efficiencies and shifts to higher margin products.
Speaker Change: Now turning to our consolidated numbers for Cogeco communications at the consolidated level revenue declined by one 6% in constant currency and EBITDA increased by one 4%.
Speaker Change: The decline in revenue was driven by lower revenue in the U S more than offsetting the stable revenue in Canada.
Adjusted EBITDA growth was due to growth in the Canadian segment, and lower spending other corporate level.
Diluted earnings per share increased by 18, 4% due to lower financial expenses.
Speaker Change: Simply due to the debt extinguishment loss, we incurred last year.
Speaker Change: Again relating to a sale and leaseback transaction of a building in Ontario This year.
Speaker Change: Higher adjusted EBITDA and fewer shares outstanding resulting from the share buyback we made last year.
Speaker Change: Capital intensity was 24% compared to 19, 6% last year related to higher spending in the U S.
Speaker Change: Excluding network expansion projects capital intensity was 17, 4%.
Speaker Change: Free cash flow and constant currency increased by seven 8% largely due to proceeds received in connection with the sale and leaseback transaction of a building and higher adjusted EBITDA.
Speaker Change: Our net debt to EBITDA ratio was three four turns at the end of the quarter up.
Speaker Change: One turn from last quarter, mainly due to the exchange rate, which impacts our U S denominated debt.
We continue to target a net debt to EBITDA ratio in the low <unk> range over time.
Speaker Change: And we have declared a quarterly dividend of $92 <unk> per share.
Speaker Change: Our political ink revenue in constant currency decreased by one 8% and adjusted EBITDA grew by 1% as a result of Cogeco Communications performance.
Speaker Change: Media operations revenue decreased by seven 8% due to a challenging competitive market in the radio advertising.
Speaker Change: Market.
Speaker Change: We offset by positive contributions from digital advertising revenue.
Speaker Change: Diluted earnings per share increased to $3 nine from $2 21, a year ago, mainly as a result of the large share buyback conducted in Q2 of last year.
Speaker Change: And the dividend of $92 <unk> per share was also declared for the quarter.
Speaker Change: Now, let's discuss Cogeco communications' financial guidelines for fiscal year of 2025, which we first provided to investors in October.
Speaker Change: With Q1 results generally in line with our expectations, we are maintaining our annual guidelines.
Speaker Change: As it relates to Q2, we expect both consolidated revenue and adjusted EBITDA in constant currency to decrease in the low single digits compared to last year as competitive pressures and investments in the business create more difficult year over year comps.
Speaker Change: Capital intensity is anticipated to be approximately 200 basis points above Q2 of last year.
Speaker Change: At physical connection as we lap the acquisition of <unk> and expect Q2 revenue to decrease in the low single digits due to ongoing.
Speaker Change: Customer growth being offset by competitive pricing pressures and lower video and wireline phone subscriber base.
Speaker Change: Adjusted EBITDA is expected to decrease in the mid single digits, reflecting the lower revenue higher content costs and reinvestments in our transformation.
Speaker Change: At <unk>, we expect in Q2 mid single digit sorry, mid single digit decrease in revenue, reflecting the competitive environment and video cord cutting.
Speaker Change: And also a low single digit decrease in adjusted EBITDA as lower video content costs and Opex discipline, only partially offset the decline in revenue.
Speaker Change: Cost reduction initiatives are anticipated to contribute to EBITDA growth I'd resign in subsequent quarters.
Speaker Change: Below the EBITDA line on the consolidated level, we expect our D&A expense to be slightly above last quarter due to a higher level of capital assets.
Speaker Change: With our restructuring program now behind US, we expect acquisition integration and restructuring costs to be approximately $4 5 million in Q2, and we expect our Q2 financial expense to be in line with Q1.
Speaker Change: At Cogeco, Inc. We have issued the same financial guidelines us Cogeco communication with the exception of capital expenditures and we are maintaining such guidelines and now Fred and I will be happy to take your questions.
Thank you Sir.
Speaker Change: Ladies and gentlemen, if you would like to ask a question. Please press star followed by one on your Touchtone phone.
Speaker Change: A prompt got your hand has been raised.
Speaker Change: Should you wish to decline from the calling process. Please.
Speaker Change: Bye.
Speaker Change: Using a speaker phone please lift the handset first before pressing.
Speaker Change: <unk>.
Speaker Change: And your first question will be from Stephanie price at CIBC. Please go ahead.
Stephanie Price: Good morning, and happy new year.
Speaker Change: Thank you.
Speaker Change: Thank you Matt.
Speaker Change: A decline in the subscriber base, especially for entry level services.
Speaker Change: Talk a little bit more about that are you still seeing a headwind from ACP or is it a more sustained change in customer buying behavior, you're seeing in the U S.
Fred: Hi, Stephanie it's Fred.
Fred: <unk> impact is over.
Fred: The phenomenon that we're seeing is the same essentially as the previous quarter, which is the impact of <unk>.
Fred: And entry level customers going to <unk>. So those customers, who do go to have to be they tend to have a lower <unk>.
Fred: Then the average as it relates to the competitive environment in the U S. More generally I would say its relatively stable Steph.
Fred: Stephanie.
Fred: And the good news that we're seeing is some of the players building fibers are actually taking steps recently to differentiate on service and other features other than price.
Fred: So that we saw as a good news, but overall U S competitive environment still elevated but stable.
Speaker Change: Okay. Thank you.
Speaker Change: Just one more on the U S. It does seem like some cable.
Speaker Change: Focused on switching customers to <unk>.
Speaker Change: Plus plans.
Speaker Change: Is that a strategy that Coca Cola is thinking about it in the U S and how should we think about one gig speeds in your footprint in the U S.
Speaker Change: Yeah. So one gig speed is available pretty much everywhere in our U S footprint.
Speaker Change: And it's a significant share of the new sales that we generate.
Speaker Change: More than that of course, we wont disclose for competitive reasons.
Speaker Change: Okay. Thank you very much.
Speaker Change: Thank you.
Speaker Change: Next question will be from drew Mcreynolds RBC. Please go ahead.
Thanks, very much good morning.
Speaker Change: Excuse me two for me.
Speaker Change: Just shifting gears to competitive environment in Canada.
Speaker Change: I was wondering if you can just update whether you've seen or what you've seen out there.
Speaker Change: With respect to competition.
Speaker Change: And if you can kind of give us any color on.
Speaker Change: Kind of fiber.
Speaker Change: Versus non fiber footprints and maybe any differences between Quebec and Ontario.
Speaker Change: And then second one just drilling down a little bit into the residential and commercial breakdown that you provide on revenue.
Speaker Change: In Canada.
Speaker Change: If you can give us kind of an update on your ability to kind of sustain that high single digit year over year growth on the commercial side, obviously seems to be.
Speaker Change: A continued important kind of drove the growth driver in Canada.
Speaker Change: Then related to that on the U S side on the commercial side just noticed.
Speaker Change: Somewhat of a flat revenue trajectory, obviously, not incorporating FX changes, but just what's the outlook on the commercial segment in the U S from your perspective. Thank you.
Speaker Change: Hi, Andrew its Fred I'll take the first part of your question and I'll, let Patrick take the commercial one.
Speaker Change: As it relates to the competitive environment in Canada, it's similar to what I was saying to Stephanie above the U S.
Speaker Change: The sense that it's elevated but also stable.
Speaker Change: As previous quarters.
On the wireline side of course, we've seen a little bit of a shift in promotional activity from Quebec to Ontario.
Speaker Change: But that's more at the tactical level not enough to call. It a trend. So again, it's been relatively stable overall.
Speaker Change: On your question about fiber, we havent felt or seen.
Speaker Change: Much of an increase in fiber upgrades by our competitors. They have already reached quite a high level a while ago.
Speaker Change: We have more we're competing more with fiber in Quebec than we do in Ontario, but theres, a fair amount of fiber in Ontario, as well and as it relates to our own performance.
Similar as what we've seen in previous quarters, where we hold our own and we tend to hold our market share in areas, where we do compete with fiber and we tend to grow market share in areas, where we're competing with other technologies.
Speaker Change: So on the revenue obviously, it can change from quarter to another.
Speaker Change: I would say there is different products that we offer.
The key one being the internet product, we have a lot of small and medium sized businesses. So if you look at Canada. The expansions we've been doing in Quebec were doing in Ontario opens up new markets on the commercial front.
Speaker Change: And just on the legacy footprint, we keep.
Speaker Change: Pushing.
Speaker Change: <unk> products is normally small businesses will want to use faster products.
Speaker Change: I would say so so the idea is to keep keep growing this business and hopefully in the high single digit, which we've been able to do over time.
Generally in the U S.
Speaker Change: It's a similar story, but that being said, we have a bit more video in there and.
Speaker Change: Places like.
Speaker Change: Florida in different places on the coast and.
Speaker Change: Selling video only is not something that we focus on anymore.
Speaker Change: So we are losing some of these contracts, which are not very attractive financially for us and Thats a choice, we're making so I would say that.
Speaker Change: Against the growth in the in the Internet sales so going forward in the us it's difficult to say.
Speaker Change: Where the revenue will be on the commercial front, but.
The profitability of that product is improving over time.
Speaker Change: That's great color. Thank you very much.
Speaker Change: Thank you.
Speaker Change: Next question will be from Vince Valentini at BBB Cowen. Please go ahead.
Speaker Change: Thanks, very much first your free cash flow guidance for the year.
That includes the $16 $5 million proceeds from the sale leaseback transaction.
Speaker Change: Yes, it did but because by the time, we issued our guidance we knew that.
Speaker Change: We were very close to actually selling this building. So we did include it.
Speaker Change: Okay.
Speaker Change: Even with this pretty big number in the first quarter versus where the street estimates you don't think youre trending.
Speaker Change: To the high end or above your free cash flow guidance for the year.
Speaker Change: We're still comfortable with the range, we're fairly busy right now in Ontario building.
Speaker Change: This region as you know.
These are mainly subsidized areas. So that's that's where we have more capital than usual this year.
Speaker Change: Okay.
Speaker Change: Can you give us any detail on that sale leaseback, what kind of building was it and what kind of ongoing lease costs will you have grown corona.
Speaker Change: So it's not a traditional sale leaseback or where we keep the asset long term. It is a leaseback because we need it in the short term for two years.
Speaker Change: But it's really the way you ought to think about it is we are actually selling the building.
Speaker Change: It's a building it's a technical building basically and we will be moving equipment to a new area. So so the lease cost is not meaningful the sale proceeds.
Speaker Change: A bit more than $16 million, there was one building in Ontario and the.
Speaker Change: The lease cost is not a material amount for two years. Eventually this equipment will move to another location.
Speaker Change: Okay, and sorry, just a couple more on the.
Speaker Change: EBIT outlook for Q2 in Canada.
Speaker Change: In the first quarter Youre up.
One 6% year over year.
Speaker Change: Youre, saying its going to be down.
Speaker Change: Low single digit low to make sure I got that right.
Speaker Change: So what youre, saying is going to be down mid.
Speaker Change: Mid single digits in the second quarter. That's that's a heck of an inflection is there I mean, we see the sub numbers, there's nothing that seems to indicate from the sub subscriber numbers flowing through that there'd be that much of a change.
Speaker Change: Can we assume this is all just timing of spending on transformation initiatives.
Speaker Change: It's a mix of things there is some of that for sure.
Speaker Change: There is we are also seeing some pressure on revenue so first of all.
Speaker Change: We bought <unk> last year in the middle of the quarter.
Speaker Change: So there will be some.
Speaker Change: No benefit at the end of the quarter coming from from an RVO.
Speaker Change: There is still some pressure in the market. So it's a competitive market.
Speaker Change: We have an increase in content costs versus last year last year had some adjustments in the content costs with regularly happens when the as the situation evolves. So we're not planning to see some of them this year.
Speaker Change: So I would say, it's a mix of these things.
Speaker Change: Content cost as these new channels that Rogers is launching courses rebranded or is it just regular renewals with with all your suppliers.
Speaker Change: It's regular renewals.
Speaker Change: We make adjustments on a regular basis to the accruals, we take as well.
Speaker Change: There was a bit of a distant signal last year as well, where we have to make an accrual. This is always a difficult one to estimate.
Speaker Change: So there was a bit of a.
Speaker Change: An upside on this last year, which were not getting this year. So it's a mix of things.
Speaker Change: Okay. Good color. Thanks, Patricia last one sorry for the long list.
Speaker Change: In terms of pricing and rate increases in Canada only.
Speaker Change: We've seen some indications Rogers putting through.
Speaker Change: Pretty significant price increase were internet on April 1st.
Speaker Change: There's directionally similar magnitude coming from Bell and May for Internet sales already raised some video in component pricing.
Taro in February.
In Ontario, and Quebec in January and February.
Speaker Change: With that as a backdrop everybody seems to be moving up on price can you remind us.
Speaker Change: Youre sort of thinking about rates in Canada.
Speaker Change: The timing of when we could see some some rate increases cycle through for Cogeco connections.
Speaker Change: Sure. So in Canada. The last price increase we did was in September on video.
But we do have one coming up in March on the Internet.
So this will affect Q3.
And.
Speaker Change: In the U S. As you are asking.
Speaker Change: We have a.
Speaker Change: Price increase that's coming up in February.
Speaker Change: Each will impact both internet and video.
Speaker Change: That's.
Speaker Change: That's.
Speaker Change: Are most of the Q3, a bit of Q2, but mostly Q3 impact.
Speaker Change: March.
Speaker Change: Increase in Canada can you quantify that one.
Speaker Change: It is.
Speaker Change: It depends on the packages so so.
Speaker Change: So I don't have a simple answer to two.
Speaker Change: To give you, but it's only for internet, yes, it will be similar ish Vince to what we've done in the past.
Speaker Change: Okay.
Bob: Thank you Bob.
Speaker Change: Thank you. Thank you.
Speaker Change: Next question will be from Vishal Dubai at Boucher. Please go ahead.
Speaker Change: <unk>. Thanks for taking my questions just as a follow up to one of <unk> question with regards to the mid single digit decline in Canada on EBITDA next quarter.
Speaker Change: Is there also a part of the launch of wireless that's in this quarter and the items you have been mentioning having an impact on Q2, so far.
Speaker Change: Seems to be items that will be true going forward.
Speaker Change: So also wondering if there is some some items that might be.
Speaker Change: More near term impact.
Speaker Change: I wouldn't say in Q2.
Speaker Change: The wireless investments are going to make.
Speaker Change: Not much of a difference so it's more related to the items I mentioned before.
Speaker Change: Okay. Thank you.
Speaker Change: Also another one I was wondering.
Speaker Change: Rural deployment of networks that are subsidized has been one of the items of the of the new strategy of the company has been a source of growth.
Speaker Change: Front of the company for a while now were seeing government being maybe a bit more interested in satellite delivery with the recent Ontario contract for the new FCC.
Speaker Change: <unk>.
Speaker Change: Is this something that we should be thinking about in terms of future rural deployment being.
Speaker Change: Being maybe more and more difficult to achieve or is there other source of growth may be offsetting this thank you.
Speaker Change: Hi development Fred.
Speaker Change: I would say less so for.
Speaker Change: <unk>, Canada, one to keep in mind for the U S. So in Canada, we haven't seen any negative impact from satellite technologies and our Quebec, We will build on our Ontario, where we'll build so far and all signs point to the fact that Ontario will be.
Speaker Change: As successful as Quebecois and as you know penetration rates have exceeded our expectations in Quebec, turning over to the U S and the bead program.
Speaker Change: What we're seeing is the.
Speaker Change: The topography of homes and the bead program is even more rural and even more remote at least in our areas and then the Canadian programs were.
Speaker Change: And with everything that you know in the political environment in the U S and the evolution of the <unk> program I would say generally we're going to be very careful about that one.
Speaker Change: And the more time goes by the less.
Speaker Change: The more cautious in the less interested frankly, we are about different aspects of that program.
Speaker Change: But we will keep an eye on it anyways.
Speaker Change: And last one for me.
Speaker Change: You've been talking about potentially pruning some assets in the U S.
Speaker Change: We haven't been seeing many cable deal there.
Speaker Change: The last little while do you need to be seeing at least one significant cable deal south of the border before before you make up your mind on Europe potential asset pruning, there or are you're comfortable with the current market.
Speaker Change: Yeah. So this is one where we don't provide too much comments, you'll understand why but just to basically mentioned with I, probably I have said before.
Speaker Change: We are reviewing our portfolio of assets and to the extent some assets would make sense.
Speaker Change: Operationally strategically and financially.
Speaker Change: The financial portion is whats youre, referring to.
Speaker Change: This is something we could do.
Speaker Change: And it's something we're taking a look at it doesn't necessarily mean, we would need to point to a particular recent transaction to do something.
Speaker Change: I think thats pretty much what we could say at this point.
Speaker Change: Yes fair enough message.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen, if you would like to ask a question. Please press star followed by one on your Touchtone phone.
Next is Matthew Crawford.
Think of America. Please go ahead.
Speaker Change: Hi, good morning, Thanks for taking the question.
Speaker Change: The first just on the.
Speaker Change: On costs related to the transformation initiatives.
I guess as a starting point I would have anticipated this type of program to be a little.
Speaker Change: Unbalanced front end loaded with cost and backend loaded with benefit.
Speaker Change: But given that you have.
Speaker Change: We said 150 initiatives I mean should we think about the cost that you're going to incur being spread out more kind of ratably over the three years, rather than being front end loaded on the cost and backend loaded on the benefits or perhaps.
Speaker Change: It is that way some color would be helpful. If you could if you are able to provide it.
Speaker Change: Sure. So there are a few elements. So one is the reorganization that we did to operate the business as one operation. So we did achieve these benefits already.
Speaker Change: I'd say most of the other benefits, whether it's cost or related to additional revenue in the way. We are operating will come over time, and we will be more towards the answer.
Speaker Change: Limited this year.
Speaker Change: More in fiscal 'twenty, six, but especially in the 27% 28 is where we're going to see the normally the full benefits.
Speaker Change: On the cost side.
Speaker Change: There are some costs that we're incurring on a regular basis.
Speaker Change: Because we started working on it so.
Speaker Change: So with limited benefits right now.
Speaker Change: Being said over time I would say.
Speaker Change: As we talked about.
Speaker Change: Certain of the investments, we're making in the <unk>.
Digital technologies, and they're not major but.
Speaker Change: These will ramp up a little bit.
Speaker Change: Over time, but I would say a bit more steady on the costs and the benefits definitely more skewing towards the later portion of the program.
Speaker Change: Okay, Great. That's helpful and then just on <unk>.
Speaker Change: In the U S on pricing.
Speaker Change: It sounds from your previous answers.
Speaker Change: This is the correct interpretation that you're experiencing kind of competitive pressures at the low end.
Speaker Change: You're planning to do a price increase so I'm, assuming that the kind of pricing pressure that you're experiencing it sounds like it's limited to the entry level plans and its not having kind of a larger impact on your ability to price those mid range and higher plan.
Speaker Change: Or is it.
Speaker Change: Curious if you didn't have any color on that.
Speaker Change: You are correct, Matt Hi, It's Fred you are correct, we're still able to execute rate increases.
Speaker Change: In the U S and the pressure is mostly at the low end in fact, we've announced we're starting to announce our future rate increase now to customers as we speak and we're getting very little negative reaction. So our ability to monetize that is still in place.
Speaker Change: Okay. So if we were able to see kind of an internet arb, who that would still be trending positively.
Speaker Change: Yes, yes exactly.
Speaker Change: What we've been doing over the years.
Speaker Change: Yeah, So we've been able the base.
Speaker Change: Normally we will over time get more speeds as well and there are it's normal I guess there are some price increases that we put through.
Speaker Change: So that's normally what we see obviously what you see.
Speaker Change: You see the blended number that includes a video as well as you know theres cord cutting we do increase prices on video as well, but there is cord cutting as well.
Speaker Change: Going on.
Speaker Change: And just one more if I may and I may have missed it.
Speaker Change: Others were asking about the free cash flow guidance, but are there additional kind of one offs.
Speaker Change: Sales of <unk> that.
Speaker Change: Are contemplated in the guidance or was that Q1 sale that you had visibility into when you issued guidance. The only one in 2020 fiscal 2025.
Speaker Change: Yes, it's the only material one.
Speaker Change: Every quarter every quarter, we have a small.
Speaker Change: We have sometimes small write offs and small asset sales, which we don't call out separately.
Speaker Change: So that's normal practice, but.
Speaker Change: Yes that would be the only one.
Speaker Change: I would say overall, if we look in the future when theres opportunities to shrink our base or our do these kinds of things.
Speaker Change: We are looking at it but I would say there's not another one currently.
Speaker Change: On the horizon.
Speaker Change: Okay, great. Thank you so much.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: And at this time, we have no further questions registered please proceed.
Speaker Change: Okay.
Okay, great well, thanks, everyone for joining us today and feel free to reach out if you have.
Speaker Change: A discussion thank you.
Thank you, Sir ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending and at this time, we ask that you. Please disconnect your lines.
Okay.
Speaker Change: Yes.
Speaker Change: Okay.