Q4 2024 Quarterhill Inc Earnings Call
Good morning, and welcome to Quarterhill's Q4 and Fiscal 2025 Financial Results Conference call. On this morning's call, we have Chuck Myers, CEO and Morgan Demke, Interim Chief Financial
Speaker Change: At this time, all participants are in the listen only mode. Following management's presentation, we will conduct a question-and-answer session during which analysts are invited to ask questions.
Speaker Change: To ask a question, you will need to press star one on your touchstone phone to register.
Should you require any assistance during the call, please press star zero for the operator.
Speaker Change: Earlier this morning, Quarterhill issued a news release announcing its financial results to the three in 12 months and at December 31st, 2024.
Speaker Change: This news release, along with companies MDNA and financial statements, are available on Quarterhill's website and on Cedar Plus.
Speaker Change: Certain matters discussed during today's conference call or answers that may be given to questions could constitute forward-looking statements.
Speaker Change: Actual results could differ materially from those anticipated. Risk factors that could affect results are detailed in the company's annual information form and other public filings that are available on C-DAR PLUS.
Speaker Change: During the conference call, Quarterhill will refer to adjusted EBITDA.
Speaker Change: Just to keep it out, does not have any standardized meaning prescribed by IFRS.
Speaker Change: Please refer to the company's Q4N fiscal, 2024, MDMA for full cautionary notes regarding their use of forward-looking statements and non-IFIS measures.
Speaker Change: As in, US R and US dollars unless otherwise specified. I will now turn the call over to Mr. Myers. Please go ahead sir.
Myers: Thank you, and good morning, everybody. Thank you for joining us on today's call. In terms of the agenda today, I'll discuss the highlights for the quarter in the year, after which Morgan will take a look at the key financial results and follow Morgan. We'll open it up for questions.
Myers: Overall, we're pleased with 2024 performance, which included significant progress on the turnaround efforts that we began a little over a year ago.
Myers: So the full year revenue grew six and a half percent and we generated positive adjusted EBITDA of .2 million, including 1.2 million in Q4.
Myers: Well, our adjusted EBITOP margins were impacted in 2024 by primarily three legacy towing contracts we made progress resolving these issues.
Myers: One was resolved in 2024 and we're in Vance discussions on the other two. Resolving these issues should have a positive impact on our margins.
Myers: Another important milestone was achieving 6.5 million positive cash from operations in Q4.
Myers: We had also achieved positive cash from operations in Q2, which was the first time in two years we had done so.
Myers: We're very pleased with the recent progress on cash flow front.
Myers: Well, there still will be some fluctuations from quarter to quarter, especially during the seasonal quarters like Q1. We think that our recent progress reflects the early stages of reversing our historical trend of quarterly and annual cash per.
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Myers: Do, in part, to improve cash from operations. Cash on the ballot sheet grew to 31.9 million at the end of the year, up from 23.1 million at the end of Q3.
Myers: Finally, our contracted revenue backlog stood at $495 million at the year's end.
Speaker Change: I joined the company 18 months ago, and after a period of time in the chair, it became evident that we are effectively faced a turnaround situation.
Myers: While we have solid operating assets, personnel, customer relationships, the business required integration, leadership changes, strategic planning, the new technology roadmap, and the renegotiations of certain polling contracts.
Myers: I'm now spending a few minutes discussing our progress on these initiatives.
Myers: During the year, we established and executed on a comprehensive three-year strategic plan with several key focus areas.
Myers: First, we focused on growing our coal tolling and safety and enforcement business units through improved operational efficiency and enhanced customer relationships.
Myers: By strengthening our project management capabilities and integrating our operations more effectively we've been able to deliver better results for customers while laying the foundation to improve our financial performance.
Myers: Second, we took steps to expand in Europe , leveraging our existing footprint and expertise in that region.
Myers: We participated in an inner traffic show in Amsterdam, which gave us valuable opportunities to advance discussions with potential customers, prospects and partners on entering the European Toly Market.
Myers: Our acquisition of Red Fox has further enhanced our capabilities and potential in this geography.
Myers: Third, we substantially increased our focus on software development to support our totaling enforcement business.
and Penetrate into other verticals.
this shift.
Myers: from being primarily an integrator to becoming more of a software focused company is designed to drive higher margins and create more defensible proprietary offerings.
Myers: We're developing a new architecture that will expand our revenue opportunities from software applications and should significantly improve our ability to maintain software.
Myers: With AI already a part of our business and we are poised to become a much, it's poised to become a much greater component moving forward.
Myers: Fourth, we began our entry into niche markets in the logistics industry.
focusing initially on intermodal terminals, ports, borders, and asset management.
We launched a pilot project in the real logistics sector.
Myers: which has provided valuable insights and a foundation for expanding our mandate with that customer.
Myers: It has also provided a basis for replicating our approach with other businesses in that large market.
Myers: The significant portion of our efforts throughout 2024 was dedicated to integrating and optimizing the business.
Myers: We launched a unified branding effort that brings together our entire portfolio under the Quarterhill brand. And we sold certain non-correct sets to focus on our higher growth opportunities.
Myers: This included selling our position in the China Joint Venture in the fourth quarter and our Chilean Enforcement Business which was sold at the end of 2023.
Myers: We also substantially enhanced and integrated our tech leadership and development capabilities.
Myers: Our technological advancements are centered around new architecture design and expanded revenue opportunities from software applications.
Myers: and recognition of this growing importance we form the Technical Advisory Committee with two renowned AI software leaders, Bobby Perique and Vanette Cosla.
Myers: who have extensive experience in developing transportation related technologies that companies such as Uber, Google and Apple. This committee is guiding our efforts as we further integrate AI capabilities who are offering and develop next-generation solutions.
Myers: In our Tolling Business Unit, we made significant progress resolving some of the inherited contracts that had challenging implementations and economics.
We had positive developments with E470, CPRMA and ACTC.
Myers: General Reading Expansion Opportunities and or moving the projects into the operations phase.
Myers: As I mentioned earlier, while a couple of challenging contracts remain in negotiation, we're still in active discussions to resolve them.
Myers: On the new business front, we secure a significant win with the ACTC's Alameda Contract expansion to start this year.
which further expands our footprint in California.
Myers: That contract is valued at $40 million with options to extend it another four years for an additional 15 million.
Implementation on that project will begin shortly.
Myers: The acquisition of Red Fox has further enhanced our value proposition and technical capabilities in the toll and space. Their quantum software platform offers unique capabilities and vehicle protection and classification.
Myers: and was recognized for excellence with two King's awards for Enterprise in the UK, one for innovation and another for excellence in international trade. We're actively integrating their quantum software into our bids and solutions.
Myers: Our Safety and Enforcement Unit had another strong year with steady top line growth in the liable margins.
Myers: Throughout 2024, we secured multiple wins in multiple jurisdictions with new contracts in Washington, DC, New Jersey, our first in Tennessee, South Dakota, California and several others.
Myers: We also expanded internationally with new agreements in Thailand and South Korea.
Myers: A particularly exciting development has been growing adoption of our AI vehicle classification system for traffic monitoring.
Myers: This system uses AI, video, automatic traffic recorders to count and classify vehicles which is essentially the central for highway planning, design, maintenance and management.
Myers: We secured multiple contracts for this technology including in North Dakota and Minnesota and have now deployed over 50 systems.
Myers: This success demonstrates our leadership in applying AI to the transportation challenges and creates a foundation for further AI-driven innovations across our business units.
Myers: Our vision is to become number one or number two player in the segments we operate in.
Myers: Underpinning this, our goal is to achieve growth when generating reliable cash lose.
Myers: This will help us build a healthy and sustainable balance sheet capable of supporting both organic and acquisitive growth strategies.
Myers: We believe our industry is right for consolidation, which provides opportunities to accelerate growth through M&A.
Myers: For 2025, we expect to drive organic growth revenue with adjusted EBITDA margin expense.
Myers: Of note, Q1 is traditionally our seasonally slower quarter, which means we expect to see a sequential dip in revenue in just a deba-dance, and then resume growth during the remainder of the season.
Myers: here. Much of that, by the way, is occurs due to weather issues. Regarding the broader economic environment at this time, we believe our business is not likely to significantly impact by tariffs. We expect the underlying activity in our industry to remain strong.
Myers: Nonetheless, we are actively monitoring the situation and proactively exploring options to mitigate any potential impacts.
Myers: Finally, in the past few months we've added two new board members.
Pat Dion, Senior, and Robin Saunders [inaudible]
Myers: Pat and Robin strengthen our leadership capabilities with complementary expertise critical to our growth.
Myers: Robin brings over three decades of financial innovation, M&A experience, and infrastructure investment experience, having lead transactions, exceeding $30 billion across 15 countries.
Speaker Change: Pat brings specific industry knowledge from his leadership roles at CEPTA and the Pennsylvania Turnpike Commission, along with his multiple entrepreneurial successes.
Speaker Change: Their combined experience in transportation, infrastructure financing and business development enhances our ability to capitalize on growth opportunities in the ITS industry.
Speaker Change: In closing, 2024 was a year of continued transformation and progress for Quarterhill.
Speaker Change: We've established a solid foundation for growth, improved our operational efficiency, enhanced our technological capabilities, and strengthened our financial outlook. While we still have work to do in our turnaround, we're confident in our strategy and our ability to execute our growth plans.
Speaker Change: I want to thank our talented team for their hard work and dedication during this phase. We're excited about the opportunities ahead and remain committed to delivering value to our shareholders, customers and employees.
Speaker Change: With that, I'll turn it over to Morgan to discuss her financial results in more detail. Morgan?
Morgan Demke: Thank you, Chuck, and good morning, everyone. Before we get into the financials, please note that discussion pertaining to the 2023 financials reflect only the results of our ITS business.
Morgan Demke: Well, Islands Financial Results for the 3 and 12 months ended December 31, 2023 are reflected in the discontinued operations line items on our PNL in cash flow statement.
Is that business resolved in June 2023?
Morgan Demke: With that, I'll start with a look at revenue in the quarter. Two four revenue was 38.9 million and 153.3 million for the year. The increase for the full year revenue was due to growth in both our enforcent and toloy business.
Morgan Demke: The decrease for the quarter was primarily due to the timing of revenue received from certain ongoing projects.
which in general leads to some quarterly fluctuation.
Morgan Demke: Of note, the Chilean business was sold at the end of Q4 2020-23, so there's no revenue from that business in 2024.
Morgan Demke: This truck touched on in his section. At the end of the year, we had a significant backlog of US $495 million, providing good visibility into revenue for 2025 in the next several years.
Morgan Demke: More specifically, so we have visibility into approximately 80% of our target 2025 revenue from our backlogs.
Morgan Demke: Also a note, a large portion of the backlog is higher margin contracted maintenance revenue versus implementation revenue, which we expect will drive better margins in 2025 and beyond.
Morgan Demke: Gross margin percentage in Q4 was 20% compared to 20% in Q4 last year in 18% for the full year compared to 21% in 2023.
Morgan Demke: The full year of decrease was primarily due to the reserves taken for certain toll and project in Q3 2024 which were partially offset by continued strung large and performance from our enforcement unit.
Morgan Demke: Total operating expenses for Q4 2024 were 11.2 million compared to 15.8 million for Q4 2023.
Morgan Demke: 2024 OPEX was $43.7 million compared to $47.9 million in 2023.
Morgan Demke: The year-over-year decreases were primarily due to lower R&D expenses and other costs. As primarily meant, as previously mentioned, SG&A increased in 2024, driven by investments in leadership and resources for our project, bid and development teams.
Morgan Demke: which were offset in part by steps we took to further optimize our workforce during the year.
Morgan Demke: Q4-adjusted EBRA was 1.2 million before the full year was 0.29. This compares to 2.3 million and Q4-last year and 2.9 million for 2023.
Morgan Demke: Adjusted EBITDA for 2024 with impacted by the $4 million due to reserves taken in Q3 which was discussed on our last call. Excluding the impact of those reserves, adjusted EBITDA for 2024 would have increased over 2023.
Morgan Demke: As Chuck mentioned, driven by continued steady results from the enforcement unit and stronger revenue performance from the toll and unit, we expect a just to be able to grow in 2025. We expect a seasonal impact in Q1 is mentioned earlier and then for margins to be stronger and growing in subsequent quarters.
Morgan Demke: Turning now to the zone sheet. At year end we had adjusted working capital of 66.2 million compared to 78.9 million at the end of 2023. This stated previously, we use adjusted working capital and non-IonFress measure to highlight the strong working capital position that we have.
Morgan Demke: Adjustive Working Capital is to find this working capital adjusted for convertible adventures in the
Morgan Demke: We ended the year with cash and cash equivalent of 31.9 million, which was a significant increase from 23.1 million at the end of Q3 2024.
Morgan Demke: The 8.8 million increase in cash from Q3 was primarily due to stronger margin and operating performance, as well as the collection of proceeds from the sale of our share of our Chinese joint venture.
Morgan Demke: The sale of that non-corner asset generated net proceeds of $4.4 million.
Morgan Demke: Improving our cash position remains a top priority. One of our main focuses has been the progress billing and collecting on some of our longer standing on build revenue balances. With work still to be done on this front, that should help our cash balances in future periods.
Morgan Demke: In 2025, we expect positive cash from operations for the year due to the nature of our business operating cash flows may very significantly between periods due to changes in time and working capital balances, namely with collections and payments.
Speaker Change: This concludes my review of the financial results, and I'll turn the call over to the operator for Q&A.
Thank you sir.
Speaker Change: Ladies and gentlemen, if you would like to ask a question, please press star followed by one on your touch on phone. It will then hear a prompt that your hand has been raised.
Speaker Change: And should you wish to decline from the polling process, please press star followed by two. And if you're using your speakerphone, you will need to lift the handsets first before pressing any keys. Please go ahead, press star one now, if you have any questions.
Speaker Change: First, we will hear from Gavin Fairweather at Core Mark Securities. Please go ahead, Gavin.
Oh, hey, good morning. Thanks for taking my questions.
Speaker Change: Sixty Millions. So can you just discuss the mix of bookings that you saw in Q4 where these new contracts versus renewals and how did it shake out in tolling versus enforcement?
Speaker Change: Okay, and then I'll split out, I'll split out the enforcement because of businesses run a little bit differently.
Speaker Change: The tolling contracts are reliant, and by the way, good morning, Gavin.
Speaker Change: Those businesses rely, the totally one relies on these big, long, long term contracts.
Speaker Change: So that was significantly boosted, the totally one is primarily by the $40 million base contract.
Speaker Change: of ACTC, which was a negotiated add-on to our insisting contract and I'd like to say that recognizes a very good relationship with a customer in a good solid performing system.
Speaker Change: and that will continue to grow. We continue to see good progress on our other contracts. And we want to...
Speaker Change: You know, all of our contracts, we look for, you know, those long-term relationships. I mean, these contracts typically don't quote me on this, but you know that I would say the average contracts at least 10 years and they usually come with significant add-ons.
Speaker Change: as you know, I had held back the company, excuse me, from bidding a lot of contracts last year and we got a better handle on where we were going in the future. But at this point, we're bidding a significant number of contracts.
Speaker Change: and so we see a lot of potential going into 2025, and we think we should have a pretty decent year going into this year. I hope that answers the question.
Speaker Change: Yeah, that's that's very helpful and it kind of led into my next question, which is just kind of the level of bidding activity and in total. And I'm curious if you've seen any kind of positive or negative change from the change in US federal administration, like I'm curious if, you know, states, which
Speaker Change: Or partly reliant on government funding might be more interested in tolling projects as a new revenue source given that some of their funding might be reduced.
Speaker Change: Yeah, I haven't seen that at all and I think that they're still in.
Um.
Speaker Change: I mean, there's still a lot of pent up dollars from the previous administration to be spent on infrastructure. We don't see this administration taking any different approach on infrastructure.
to the contrary, may be more.
Speaker Change: So we don't view that as a significant impact at all, and nor have we heard any such from any customer that I've talked to.
Speaker Change: So we think that's going to continue to be a big positive and I don't think it's really had any impact state by state either.
Speaker Change: Okay, that's good to hear. And then just on the existing kind of tolling projects, the couple of the ones that you've had some challenges, it sounds like you're you're still working to get kind of final.
Speaker Change: Acceptance, and then also, you know, working on renegotiating those contracts with the clients. So maybe you can provide a bit more of a false update on exactly where you are on those two items.
Yeah, I can say.
Speaker Change: Some of those discussions are confidential, so I have to be careful about them, but it's really
Speaker Change: All about, you know, making sure that we a lot of it's, you know, we have to make sure we deliver and the other one is making sure that the a lot of these those contracts are a lot of leaders to they were also impacted by.
Speaker Change: by the cost of living increase, which across the board's been higher than 20%.
Speaker Change: and so a lot of those contracts when they were negotiated long before I got here.
Speaker Change: They didn't have the necessarily escalators and things of those contracts, so that also significantly impacted best. So part of the negotiations is renegotiating those.
Speaker Change: and it just takes time and patience. We're dealing with government contracts.
that require a lot of approvals.
Speaker Change: and I know I've been here. I think this is my, I think my last quarter I'd.
I think this is my fourth quarter giving this talk.
Speaker Change: You know, they just take time and but we feel like we're making progress and I think we should have more to report next quarter.
Speaker Change: Okay, good to hear. And then maybe shifting gears, maybe I don't.
Speaker Change: I don't think we talked about enforcement enough. I mean, it sounds like they had a steady year in 2024 in terms of all the growth.
Speaker Change: and Profitability. Maybe we can just discuss kind of the outlook for that business and
in 2025, and how you're thinking about-
You know, have that business for...
progress over the course of the day.
Fairweather
Mm-hmm.
Speaker Change: I think that business is progressed nicely, more will be able to.
Speaker Change: Correct me on this one, but I think that we actually disposed of about four or five million of revenues.
Speaker Change: once when we disposed of the Chilean contract in that business so...
Speaker Change: You know, where we finished the year, we were pretty happy about. And if you'll notice, you could determine that, that the growth margins increased quite nicely in that business.
Speaker Change: As people may or may not know, Morgan, who's now acting as our interim CFO , is running that business as well.
Speaker Change: and has done quite a nice job. It's an interesting business that...
Speaker Change: Approximately 50% of it at the beginning of the year is essentially reoccurring business and so as we go through the year we're able and we have a pretty good handle going forward and have over the years.
Speaker Change: and Morgan's done a good job the last couple of years on that of understanding where we are in the market so we continue to see steady growth in it.
Morgan Demke: and we hope to see continued gross margins. I mean Morgan, do you want to make a quick comment on where we are on gross margins on their business, but they're getting getting quite nice?
Speaker Change: Yeah, Jacken, and thank you, your comments on Chile are accurate, it was approximately three and a half to four and a half millions, depending on the year with Chilean operations per revenue.
Speaker Change: and part of our success has been we've been out in the field more, Gavin, as far as business development during COVID. It was a little bit harder for everyone to travel, but part of our growth in the last couple of years has been being back in front of the customer.
Speaker Change: We have seen great margin improvement over the past couple of years as well, just from managing the efficiencies in the business as best as we can. We continue to see a pathway for those to continue.
Gavin Fairweather: That's great, and maybe I'll sneak in one more, maybe also for Morgan. Just on the working capital, nice to see the inflow, this quarter looks like that mostly came out of account
1-800-425-7000
Gavin Fairweather: As a resource, I think we, you know, Gavin, we see some seasonality happening at Q1 as far as, you know, cash improves, but as we look to the rest of the years as far as cash improvements and working capital improvements. As we, it's track and mentioned the two contracts where we negotiate and will drive a lot of progress as far as improvements to working capital to the balance of the years those contracts are renegotiated.
Gavin Fairweather: Um, Chuck, is there anything else you want to add to working capital or does that summarize most of it? No, I think that as we get here. Yeah.
Speaker Change: Yeah, I think that that affects the unbilled AR quite a bit.
Speaker Change: when the contracts get the situation they are. I would like to say the other thing you know before I got here. [inaudible]
Speaker Change: These contracts were almost all of the tolling contracts anywhere we bid with negative cash flow with big implementation. One of the things I implemented while here is we are only bidding contracts with positive cash flow.
Speaker Change: and that was not the habit of the company in the last few years. So when we, when we've been and we're, we're very focused on making sure we don't get in the situation again where we get upside down on these kinds.
Speaker Change: Tracks. And so you do not only do you see a reduction in unbuilt ARS, these things recover, you should see a positive impact on EBITDA as well.
Great. I'll have fun. Thank you.
Speaker Change: Thanks, Gavin. Thank you. A reminder to please press star one. Should you have any further questions? Next, we will hear from Steven Li at Raymond James. Please go ahead, Steven.
Stephen Lee: Thank you. The couple of challenging contracts, projects that you're currently working to resolve. Would you expect you'll need to take some reserves on those?
Stephen Lee: It's a good question. I sure as heck hope not. I think we'll have a very good indication early in the quarter.
Stephen Lee: But I would I think whether we message that or not, but you know I think we you know as you know we took reserves in the third corner. [inaudible]
Stephen Lee: based on where we were. So, provided that things go as we see, you know, I don't want to overspeculate, but
Stephen Lee: You know, maybe Morgan will have a thought on that, but I'd say right now, you know, we're looking at getting these things settled down, so that's my plan and that's the strategy.
More than you have time in them.
Speaker Change: No, I think, Chuck, you know that we're digging in deep into the contract and working through them. You know, day by day to make sure that we don't have any further impact. So I think you've summed it up.
Speaker Change: and maybe I can ask Morgan, when you look at the backlog, when you think maintenance versus implementation, is it spade 5050 when you look at that backlog?
Morgan Demke: No, I think it's more 80% maintenance, or maybe that might be a little high, but it is more predominantly maintenance of their long-term contracts in the backlog.
Morgan Demke: Got it, that's great. And Chuck, maybe back to you, you touch on Europe a little bit. Any color on how the European pipeline is building, can we expect to see some conversion this year? Thanks.
Chuck Myers: I would say yes, we're actively pursuing a couple of bids right now. They're still in the early stages. We've done some some pre-work and some some pre-bid work for qualifications and things on bids.
Speaker Change: but we expect to see those RFPs being issued and awarded before the end of the year. I think one of the other things that both Morgan and I have worked on.
the company owned.
Speaker Change: Three or four small businesses in Europe and we work very hard through 2024 to get those
They were negative and we were hard to get those.
Speaker Change: Company's profitable and cash flow positive so we've seen some better impact there and we're really using that as a baseline to give us a to give us a [inaudible]
Speaker Change: a beachhead to gain the credibility with the European customer so we were able to present ourselves.
Speaker Change: with a pretty strong European presence. Even those are small businesses, I think, between the businesses that we own over there, the customers, or they like the fact that we come across as a European company when we're over there.
Gary, that's helpful. Thank you.
Thanks, Steven.
Thank you.
Speaker Change: Next question will be from Valerie Hekel at CMC World Markets. Please go ahead Valerie.
Valerie Heckle: Hi, good morning. This is Valerie on for Todd Coupland. Thank you for taking my question.
Speaker Change: Chuck, in your prepared remarks you discuss the potential of inorganic growth and I'm wondering if you can elaborate on that strategy a little bit more particularly as your cash position improved markedly over the last year.
Valerie Heckle: Are there any technologies or geographies you're eyeing and is emanating something you expect to pursue in the near term or is it more of a longer term opportunity?
Chuck Myers: Yeah, hey, thanks, Valerie. Sorry, Todd couldn't make it. I think that we're really we're we're actively looking at deals right now.
Chuck Myers: We said it's part of our strategy. We feel like we're getting the business settled down. Obviously we still got a couple of these things lurking out there. But the reality is if you set aside really those two contracts, the strength in the business looks pretty good right now.
Chuck Myers: So we think that timing, just because of the length of time it takes for...
for acquisitions and inorganic activity.
Chuck Myers: Whatever it may be, it's important to start pursuing that. We have a very active pipeline in potential targets.
Chuck Myers: and we actively talk to companies all the time without getting too much into it, but it is definitely on the radar screen.
Speaker Change: Okay, that's very helpful. Thanks very much and I'll pass the line.
Thank you, Gallery.
Speaker Change: As we have no further questions at this time, I will turn the call over to Mr Myers for closing comments.
Chuck Myers: Thank you, Operator. You know, with that, I always like to close our quarterly call. I want to give a particular thanks out to Morgan who stepped in.
When Kyle
Chuck Myers: Step down to go to another opportunity and I want to think Kyle by the way.
Chuck Myers: Kyle stayed and helped us finish out the year end and that was much appreciated. Morgan's done a great job. He's wearing two hats at the time. We're actively interviewing for CFO candidates now.
Chuck Myers: and I want to thank all of the hard work that's been put in by our management.
and our employees.
Chuck Myers: and our board and thrilled that we have two new board members and hopefully we'll be building out the board as we go into the year.
Chuck Myers: and as always, I have to thank our investors. You guys have been great, you always have good advice, and so look forward to working with you in the new year and look forward to a strong 2025.
Speaker Change: 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 do ask that you please disconnect your lines.
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