Q2 2019 Earnings Call

Hello, and welcome to the assured Guaranty limited third quarter 2019 earnings call him up cast.

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Please note. This event is being recorded I would now turn the conference over to Mr., Robert Tucker, Managing director Investor Relations and corporate Communications. Please go ahead Sir.

Thank you operator, and I'd like to thank everyone for joining us.

I assured guaranty's call today, it's our second quarter 2019 financial results Conference call. Today's presentation is made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995. The presentation contains forward looking statements about our new business and credit outlooks market conditions credit spreads financial ratings loss reserves financial results or other items that may affect our future results.

These statements are subject to change due to new information or future events. Therefore, you should not place undue reliance on them as we do not undertake any obligation to publicly update or revise them, except as required by law.

If you're listening to a replay of this call or if you're reading the transcript of the call. Please note that our statements made today may have been updated since this call. Please refer to the Investor information section of our web site for our most recent presentations and SEC filings most current financial filings and for the risk factors. This presentation also includes references to non-GAAP financial measures. We present, the GAAP financial measures most directly comparable to the non-GAAP financial measures referenced in this presentation, along with a reconciliation between GAAP and non-GAAP financial measures in our current financial supplement and equity Investor presentation, which are on our website at assured guaranty dotcom.

Turning to the presentation. Our speakers today are Dominic Frederico, President and Chief Executive Officer of assured Guaranty Limited, Rob Bailenson, our Chief Financial Officer, and Andrew Feldstein, CEO and CIO of Blue Mountain. After their remarks, we'll open the call to your questions as the webcast is not enabled for today.

Please dial into the call if youd like asking questions I will now turn the call over to Dominic.

Thank you Robert and welcome to everyone joining todays call.

The second quarter was very successful for assured guaranty with $141 million in non-GAAP operating income new highs in key shareholder value measures substantial new business production and a milestone in our efforts to diversify our revenue base and intelligently deploy our excess insurance company capital through the execution of one of our strategic objectives.

I'll, let Rob give you the details about our earnings results and our continuing share repurchase program in a few minutes.

I'll start with the news release yesterday, we have taken a significant step forward in our strategic execution by adding and asset management component to our overall business operations. This will diversify our revenue sources with fee based income and provide an additional engine for growth of profits and free cash flow.

We accomplished this by investing some of our trapped excess capital and they seasonal alternative asset management company.

Whose core competencies and credit culture are compatible with ours and with the likelihood for attractive returns is high.

We have agreed to acquire Blue mountain, a highly regarded asset management firm with the scale that can provide meaningful returns to assured guaranty.

Blue Mountain has extensive experience evaluating credited to managing investments and it is recognized as a top tier siloed manager.

We can leverage its sophisticated infrastructure to facilitate future acquisitions, and the asset management sector, and we see credit and capital markets synergies with our existing financial guarantee franchise and a number of areas such as close as it backed finance infrastructure and healthcare.

Blue Mountain top management will join assured guaranty not only to continue running Blue mountain, but also the lead assured guaranty's alternative investment strategy.

Blue Mountain CEO , Andrew Finkelstein, who is also a co founder of Blue Mountain in its current Chief investment Officer will become assured Guaranty's, Chief investment officer, and head of our asset management business, bringing his leadership experience investment acumen and enthusiasm for building the aesynt measured component of our business strategy as well as ever see the management of the overall assured guarantee investment portfolio.

Andrew will join US later in the call and be available in the Q and a.

Under the agreement, we will be purchasing for approximately $160 million all the outstanding equity interest in Blue Mountain capital management, LLC and the associated entities subject to certain customary closing conditions and regulatory approvals.

We will also contributed $60 million in working capital to Blue Mountain at closing, we expect to provide an additional $30 million of working capital within a year after that.

Additionally, we expect to invest $500 million of Blue Mountain funds. So close in separately managed accounts over a three year period, we anticipate a fourth quarter closing.

We intend to fund the acquisition with loans from HCM Mac in Egcs subject to regulatory approval.

This approach allows us to put capital in our insurance companies to work supporting the asset management business without using our dividend capacity or a special dividend.

And we expect that every blue mountain managed $500 million of our investment portfolio will result in higher investment income, which should lead to higher dividend capacity for our insurance subsidiaries in the future.

I should note that S&P recently updated the bond insurers investment portfolio capital charges to the same charges. It applies the property casualty life and other insurance companies.

This opens up a broader range of investment options for us with more favorable capital treatment from S&P.

Remember previously address a few rules any investment rate below ebay and incurred 100% capital charge.

As structured we expect the transaction to have no impact on our financial strength ratings and as I mentioned, we plan to continue our current share repurchase program and yesterday, our board approved an incremental $300 million and share repurchases.

Turning to the second quarter production, both the municipal bond industry as a whole and assured guaranty in particular performed well in comparison with last year's second quarter, even though overall conditions in us public finance were extremely challenging.

The total par volume of second quarter municipal bond issuance declined approximately 5%.

And the increased demand for tax exempt bonds caused by tax reform has actually driven rates down in our principal market as investors reportedly poured a record $47 billion in two municipal bond funds during the first half of this year.

The second quarter also saw 30 year, AAA, Texas them yields declined from 2.6% to 2.31% and the spread between the 30 year single, a and AAA geos shrink as low as 37 basis points at quarter end.

Thats spread was never above 43 basis points during the quarter compared with an average of 53 basis points during 2017 and 2018.

The second quarter, so the tightest credit spread environment since the financial crisis, which eliminated some transactions that might have benefited from insurance that rich rates were higher and spreads have been wider.

In spite of this challenging environment municipal bond insurance was still used on 16 on 6.9% of total par and 17.9% of new issues sold of the new issues sold in the second quarter compared with last years second quarter.

The use of insurance increase with the total bar volume of new issues sold with insurance rising, 13% and the number of insured transactions up 38%.

Those increases were driven mainly by assured guaranty's performance with our par volume up 27% to $3.7 billion, representing a 60% share of the insured par volume and our deal count rising 59% to 260 new issues.

Our performance looks even better when you consider the 186% increase in par we insured in the secondary market, where we capitalized on attractively priced opportunities. When you include our secondary market business, our total us public finance par volume exceeded $4 billion in the quarter.

And yesterday by the way, we guaranteed a $700 million portion of an issue by common spirit health, our largest public finance transaction. So far this year.

In the international infrastructure market, we continue to see growing interest in our product.

In the United Kingdom, we executed a 50 million pounds Scottish housing Association transaction during the second quarter and last week, we announced our guarantee of a 124 million pounds student accommodation financing for the University of Leicester, We expect the UK market to continue to provide opportunities, including both new money issues and refinancings and our international strategy also continues to emphasize diversification in a variety of national markets.

During the second quarter, we wrapped the first guaranteed solar energy transaction in Spain, a 207 million euro refinancing of nine solar energy plants.

This is the largest renewable energy transaction that we have guaranteed anywhere, but we are optimistic about additional transactions in the solar sector.

The transaction was privately place, we're both European and South Korean investors.

In the Australia, New Zealand market, we have signed an exclusive cooperation agreement with DTW capital solutions to Sydney based independent arranger and advisor, which we developed a strong working relationship with collaboratively collaborating on last year's Puerto Brisbane transaction.

We believe DTW his experience in relationships in its home market will help us expand the use of our guarantees in a market where there is significant need for long term financial solutions.

In global structured finance the highlight of the quarter was a secondary market guarantee that with $208 million or middle market collateralized bond obligation, which was purchased by European asset manager.

We've been fielding numerous inquiries regarding seo lows and are focusing on educating potential investors about the benefits of holding investments we guarantee.

We view, we believe we have pet only a fraction of the potential business, where we help financial institutions that insurance companies manage their capital efficiently.

We also anticipate more opportunities in the life insurance and aviation sectors during the quarter during the third quarter, we closed a significant insurance reserve transaction.

Across all three financial guarantee product lines for the first half we generated $96 million of Pvp.

And in the third quarter, so far we have added another $65 million.

Ill Pvp with significant contributions from each of the product lines, a strong start to our third quarter.

Central to all of our financial Guaranty business is our financial strength and the rating agencies recently offered additional confirmation of that strength in June S&P affirmed the ratings of all of our insurance units, a double way with a stable outlook.

As MP does not publish a figure for our excess capital under their AAA depression stress model, but we estimated was approximately $3.2 billion as of December 31, 2018 under the criteria used in their June report.

This is $400 million higher than our December 31, 2017 number of 2.8 billion. Despite our capital management program and the continued payment of Puerto Rico debt service claims.

As happy as subsidiary come out with new bond insurer rating criteria, which includes the more favorable capital charge treatment of our investment portfolio that I mentioned earlier.

The new S&P criteria will also improve the capital charge treatment of our hospital transactions. We are confident the updated criteria will not have will not affect our ratings out our ratings on our outlook at S&P.

And recently Kroll Bond rating agency affirmed its double a plus rating of Mac, our us only municipal bond insurance platform.

Primarily provides insurance for small and medium sized municipal bond issues the outlook is stable.

Lastly, and best last month affirmed its a plus rating of agro the Bermuda based subsidiary responsible for our aviation residual value insurance business and some of our structured solutions for the insurance industry.

In the quarter, we saw some progress in Puerto Rico, a high to highlight of the second quarter was the restructuring support agreement for the debt of the electric power utility proper, which I discussed on our last call. This can now be the basis for an acceptable plan of adjustment that will allow people to focus on the reforms necessary to develop a 2020 onest century electrical system, one that the people of Puerto Rico can trust.

This is an important opportunity for Puerto Rico, and we look forward to the Rs a receiving the necessary approvals to go forward.

At the same time, we saw that the economic recovery has been coming faster and stronger than the oversight board forecasted.

Even after multiple more optimistic revisions the projections the oversight board use as a basis for its fiscal plans continues to understate the true strength of the Commonwealth revenues.

That should be seen as good news for everyone.

Anyone who follows the news is aware the upward created by the public exposure of the blade and cronyism cynicism and corruption in Puerto Rico's political arena.

In the midst of this political disarray fund the Governor's resignation the title three core it has had the good judgment to send a number of bond disputes backing the mediation.

Which has all the oversight boards attempt to steamroll acceptance of an unfair Geo restructuring agreement negotiated between the board and a small number of Geo creditors that purchased their bonds at deep discounts. This could be a watershed moment, when Puerto Rico's decision makers, including the oversight board as well as Congress ceded the problem in Puerto Rico is not a lack of funds to pay constitutionally protected creditors.

For the lack of recognition that recovery instability, our best and most quickly achieved by respecting and following the rule of law. It is time for thoughtful negotiations that put an end to the ongoing time consuming and expensive legal battles and the returns the rule of law.

Lastly, I want to highlight how weve executed on our four principal strategies so far this year.

In new business production, we have performed well and one of the worst substrate environments, we've had to deal with and we demonstrated the wisdom of our strategy to operate in multiple domestic and international markets and capital management, we continue to increase shareholder value by repurchasing $248 million of common shares through August seven and our acquisition in alternative investment strategy. We came to agreement on our most important alternative investment to date when that should increase the value of our company and diversify our revenue sources.

We furthered our loss mitigation strategy by continuing to recover structured finance losses, and by reaching important restructuring agreements and Puerto Rico, while defending principles and poor in two well functioning financial markets I will now turn the call over to Rob.

Thank you Dominic and good morning to everyone on the call.

First I would like to say that we are very excited to acquire Blue Mountain and welcome Andrew and his team to the short family.

We have a long history of creating shareholder value by executing our strategic initiatives and we expect the Blue Mountain acquisition will be accretive to earnings per share in Norway, beginning in 2020.

In the second quarter of 2019, we posted strong operating results and once again reached record high non-GAAP operating shareholders' equity of $63.48 per share and adjusted book value of $88.67 per share.

non-GAAP operating income in the second quarter of 2019 was $141 million or $1.38 cents per share compared with $74 million or 66 cents per share in the second quarter of 2018.

Operating income increased compared with second quarter 2018, mainly due to lower loss expense and a higher net investment income in the second quarter of 2019.

As well as the commutation loss from this important transaction in the second quarter of last year.

These increases were partially offset by lower net earned premiums and a higher effective tax rate.

Second quarter 2019 loss expense was was a benefit of $1 million compared with an expense of $45 million in the second quarter of 2018.

In the second quarter of 2019, we recorded a benefit in us RMBS and an increase in us public finance reserves, mainly on certain Puerto Rico exposures.

As a reminder loss expense reported income in any given period differs from economic loss development.

It is a consideration of unearned premium reserve in a calculation of loss and alley.

Under GAAP accounting rules as well as the inclusion of economic development related to financial guaranteed VA ease in economic development.

Economic loss development was a benefit of $37 million in the second quarter of 2019.

Principally consisting of $118 million benefit on us RMBS and increased losses on us public finance exposures, primarily Puerto Rico.

The economic benefit in the first lien RMBS of $19 million was primarily attributable to higher excess spread while the economic benefit in second lien RMBS was $99 million, mainly driven by higher projected recoveries from previously charged off loans improved performance.

And loss mitigation efforts.

The effective changes in discount rates and economic development was a benefit of $1 million in the second quarter of 2019.

Net earned premiums were $112 million in the second quarter of 2019, compared with $136 million in the second quarter of 2018.

As expected after the passage of the 2017 tax act and consistent with the reduction in our insured portfolio that is subject to call acceleration is due to refundings and terminations have decreased to $20 million in the second quarter of 2019.

Compared with $39 billion in the second quarter of 2018.

Net investment income was $110 million in the second quarter of 2019, compared with $90 million in the second quarter of 2018.

In second quarter, 2019, and insured triple X. obligation in our loss mitigation investment portfolio was settled resulting in the acceleration of Accretable net investment income.

The effective tax rate on operating income in second quarter, 2019 was 21% for 7% in the second quarter of 2018.

The effective tax rate fluctuates from period to period based on the proportion of income in different tax jurisdictions.

In terms of strategic initiatives, we have continued to repurchase shares in order to efficiently manage our capital.

During the second quarter of 2019, we repurchased 2.5 million shares for $111 million at an average average price of $43.09 per share.

Bringing our cumulative repurchases since the beginning of 2013.

And through the end of the second quarter.

To 99 million shares.

This represents more than half of the shares that were outstanding at the start of the program.

The cumulative effect of these repurchases was a benefit of approximately $16.86 per share and operating shareholders equity.

And approximately $29 or 33 cents and adjusted book value per share.

Since the ended the quarter, we've repurchased an additional 1.3 million shares at an average price of $43.59 for a total of approximately $58 million.

Bringing the current year to date share repurchases to approximately $248 million or 5.7 million shares.

This week the board authorized an additional $300 million of share repurchases, which brings our share repurchase authorization.

Up to $450 million.

We expect to achieve our goal of $500 million and the share repurchases this year.

We currently have approximately $235 million in cash and investments at the holding company.

Looking to the future that Blue Mountain acquisition will diversify our earnings stream into fee based revenues. In addition, we will transfer $500 million of insurance company funds.

Into Blue Man funds, which we expect full enhance our investment returns.

I'll now turn the call over to Andrew.

Thanks, Rob.

Dominic Thank you for the opportunity to introduce Blue mountain to assured guaranty's stakeholders.

Thank you for the confidence Youve shown in Blue Mountain and our people.

In our investment processes and in our long term prospects.

Our companies reinforce and complement each other's strengths.

It's exciting to think about the value that we can create together.

New mountain has been managing clients assets for 16 years.

We have assembled a superb experienced team of investment and business professionals.

Currently we manage over $19 billion of assets and we operate in three general investment categories.

We are especially prominent in CLL goes with $12 billion of Cibolo assets. We are the 16th largest siloed manager globally.

We expect that to grow to $14 billion by mid next year.

We managed a number of opportunities funds. These long duration funds invest in corporate credit asset backed finance infrastructure and health care.

And we managed for relative value hedge funds.

Many companies were interested in acquiring or partnering with us.

Our should guarantee stood out as the one with the strategic strategic vision that most aligned with our own.

We were attracted by a strong commitment to building a successful alternative asset management platform.

By its experience judgment and long track record in credit.

And most importantly, because the firms are a great cultural fit.

Our relationship goes as far back as 2005.

When assured guaranty wrapped our very first COO.

Asset management represents a valuable source of fee based income for the company.

It will diversify revenue sources and complement the risk premiums received from financial guarantee policies.

I'm also excited by the opportunity to enhance returns on assured guaranty's investment portfolios.

Always within an appropriate level of portfolio risk.

We are acutely aware of the importance of protecting the financial strength of the company's insurance subsidiaries.

I commit to give all my efforts and energies to add value for our shared guarantees shareholders.

And I am excited and proud to be aligned with shareholders through my own significant stake in the stock.

Now I will turn the call over to the operator for Q and a.

Yes. Thank you we will now begin the question and answer session.

To ask a question you May Press Star then one on your Touchtone phone.

If you are using a speakerphone. Please pick up your handset before pressing the keys. So you time. Your question has been addressed and Youd like to withdraw. Please press Star then too.

At this time, we will pause momentarily to assemble the roster.

And the first question will come from Bose George with KBW.

Yes. Good morning, congratulations on the Blue Mountain transaction just wanted to ask you noted it will be accretive in 2020, but can you just talk about how we should think about the accretion from that over time.

Which is was there some sort of hurdle rate on the capital or do you just kind of the best way to think about it.

Thanks Bose so as we look at the opportunity obviously, we have.

A range of of outcomes for next year.

Contingent on a how fast we can implement the growth and further investment strategy in the organization into where we can achieve relative to the integration.

We have a blue mountain proposal and we have an assured guaranty proposal and on both cases ours being the more conservative its accretive and as we expect we do anticipate growth going forward and the continued expansion of our management fee revenue and therefore, you know the accretion should only grow obviously, we look at this investment in light of other investments and opportunity that we have and believe that this was the best course of action relative to what we can do for the assured company net bottom line and shareholders.

And just in terms of big the growth is that it could there be other acquisitions to bolt on to this or is it more organic when you think about them.

But bose as you know our history has been very acquisitive, and we think there's going to be tremendous opportunity in both aspects of both organic growth as we launch new funds and provide additional support by our own invested balances into where we think there will be further opportunity to consolidate the industry.

Okay, great. Thanks, and then actually one just on the portfolio given the tighter spreads in the market can you just give you an update on when you think timing on portfolio stabilization is there any change there. Thanks.

Provide stabilization news.

The just the in terms of your guarantee portfolio in terms of when that run off kind of stabilizes Oh, okay. The total volume of new business right and as we said we actually are optimistic that we kind of bottom out at the end of this year and therefore next year, we expect to see bar over par growth and obviously further increases in our PDP production recorded so we're probably equate.

Expecting because of the severity of the run up primarily due the accelerator refundings than now most of that is working through the company and remember.

Our acquisitions created a size of portfolio that was not representative of new business opportunities for a single company versus buying foreign if other companies. So that also have the kind of work its way through the system. So we're reasonably optimistic that 2020 will be a year of growth.

Okay, great. Thanks.

Welcome.

Thank you and the next question comes from Geoffrey Dunn with Dowling and partners.

Thank you good morning.

Hey, John .

Rob can you give a little bit more detail in terms of the financing of the deal you said, it's going to be funded by loans out of the three subsidiaries, but how exactly is that going to work and ultimately be repaid.

And the loans as Dominic said are going to be.

Funded added.

HTC ATM and Mac.

There will be an appropriate interest rate associated with that.

And then the.

Fee income generated from Blue Mountain.

We'll we'll generate fee income up to the holding company repay the debt.

And they will be excess funds available after we paid as we're paying naphtha note that we expect excess funds available at the holding company.

And our expectation is that note would be paid off within 10 years.

The holding company reverses AG us holding so agios UIL holdings, we will make the purchase we will borrow the funds from the three operating company basically utilizing their trapped capital. So there is no real impact on dividend a dividend capacity use that balance to buy the company hold that in USA holdings. So the UIL holdings, which is going to be an unregulated entity will then receive the future cash flows.

Okay, so really the.

The.

The holding company liquidity accretion is going to be the fee income net of the interest payment on the loan and Princeton RASM principle.

Okay, Thats, great and whether it's with respect to the capital.

Of the operating subsidiaries.

There is no impact on the.

The assess surplus from the loan or anything like that it can affect dividend capacity.

These loans.

No. We expect these loans to be admitted assets and we structured such that they will be.

Okay.

And then I know Dominic mentioned, the secondary part, but Rob what was the secondary par and Pvp in the quarter.

Okay got that for you.

In the quarter.

The secondary par was.

I think other secondary PDP was $25 million.

And the secondary acquire was 327 million.

Okay, and then lastly, just on the Blue Mountain can you elaborate a little bit more about.

How you can use their expertise in your insurance wrap business.

And how your expertise can be extended into there and I want to understand a bit more about the.

The expertise synergies of bringing the two operations together.

Well I mean, the synergies are more than just that so number one.

The first thing is we believe we have a common credit culture.

Well they have a proven track record of performance in sort of way and it touches some very common areas like healthcare like CLL as like structured finance. So theres a lot of duplication of that effort and I think there'll be a lot of information shared back in forth number two they are going to see opportunities in their shop that for fit more into an insurance scenario and we'll see how the gains in our shop that good morning on investments in areas I think theres feedback there and number three in the most important thing as we went down this path of diversification asset management. We believe we touched the same markets are the same customer base. There for what was a assured guaranty relationship can become a blue mountain relationship. It was a blue mountain relationship can also become an assured guaranty relation we are predominantly domestic say, 75% just off the top of my head. They are predominately international 75%. So there are synergies as well in terms of marketplaces, So credit culture commonality of the title.

Business, we look at them from investment us from a credit but both at the same basis. When you look at of investment or credits credit at the end of the day and then as I said then we also have the commonality of operations as well in terms of we can achieve relative to synergies.

Okay helpful. Thank you.

You're welcome.

Thank you and the next question comes on Julianna Banyard from BTI Jay.

Good morning, and congratulations on the table non transaction.

Just to follow up.

Question Julianna June 10 trouble hearing you.

Could you get closer than having to pick up your handset.

Yep.

Do you have to fund both the acquisition price and the working capital from loans or are you do you intend to separate that overtime.

Net the loans would be funded the loan distress there it will be loans that come out of insurance company, but the investments will be admitted will be assets from the insurance company.

That makes sense and from a cost perspective will that be around the same cost of the investment portfolio there potentially higher.

Cost.

What do you mean by costs.

The interest costs on loans that you'd be taking out from the operating the interest of the it fast and alone will be a market rate interest.

Cost based upon what an expected tenure with Dave.

That makes sense and just touching on a one to one item from the quarter. It looks like your investment income jumped up in the quarter is there anything that ran through that that was a onetime.

Yes, there was a I said in my in my commentary there was a onetime item with respect to our triple X. Ballantine transaction, which was commuted and settled and we owned it in our loss mitigation portfolio and once that was settled cash flow was released and the accretion of income was accelerating.

And that was about.

Perfect. Thank you very much and thank you for taking my questions.

Thanks.

Thank you and the next question comes from Christian Little along with our mobile Ridge capital.

Hi, guys. Good morning, Thanks for taking my questions.

Just curious Tom how do you think about your appetite to participate in the most recent deal proposing Puerto Rico deal with the GE on PVA debt.

[laughter].

The deal that was proposed by the control board.

Yes, correct.

Yes, we have no appetite.

And it doesn't respect grew a while does respect constitutional priorities doesn't respect our contractual obligations on behalf of the Commonwealth We have no interest whatsoever.

Got it is it something where they are in negotiations ongoing or that complete nonstarter for for you guys at this point.

Well as you know the judge has now rule that we have to go into a four month mandatory mediation I believe the judge obviously looked at the landscape and realize how far apart the given entities arent felt that if you try to move through with the plan the amount of litigation that would ensue basically tied it up so therefore, there will be no value to it.

I think the judge did a very smart call year by saying, it's time to get these legal principles closer for us closer means paying attention and actually adhering to the rule of law. So obviously, we'll look forward to the mediation, we're more than happy to work collectively to get to a common resolution that we believe is fair and respects our rights and moves the.

Commonwell forward to allow it to start to take the necessary business its face.

Got it makes sense. Thanks, and then just one more from me.

No Suncor is one of the obvious kind of current opportunities in the market.

Does this mountain deal take your ability to potentially participate in that process carpet table.

Yeah, obviously, we look at the two shops kind of separately, even though they're they come from a common pool, we look at the opportunities to buy legacy model lines, obviously, thats typically a net positive capital structure, we typically get the capital to discount obviously in Blue Mountains case, we actually put capital to work, which we need to do because were very unlevered relative to the capital we have in your innovation in the business opportunities, we see strictly in the furniture guarantees space. We gave you the excess capital number from S&P that in spite of all of our efforts to manage it down continues to increase so we've got to work harder to put that capital to work.

Okay, great. Thanks, I appreciate it.

You're welcome.

Thank you and this sense. Thank you and I assume so I would like to return the Florida, Robert Tucker for any closing comments.

Thank you operator, I'd like to thank everyone for joining us on todays call. If you have additional questions. Please feel free to give us a call. Thank you very much.

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

Yeah.