Q2 2019 Earnings Call
Ladies and gentlemen, please standby your conference call will begin momentarily once again, thank you for your patience and please standby.
Good day, everyone and welcome to the time Airlines Group earnings release Conference call. Just a reminder, this conference is being recorded.
Mhm Airlines group earnings release for the period was distributed on Tuesday August 13th.
If you have not received it you can find it on our website at Www Dot that's on Airlines group Dot net and the Investor Relations section at this time I would like to point out that statements regarding the company's business outlook and anticipated financial and operating results constitute forward looking comments. These expectations are highly dependent on the economy, the airline industry and international markets. Therefore, they are subject to change now it's my pleasure to turn the call over to Mr. Amir often seen chief financial Officer of Latam Airlines group Mr. on some scenes. Please begin.
Thank you Stephanie and good morning, everyone and welcome to Latam Airlines second quarter earnings call.
Joining me today are mr., what a blood work Chief commercial officer Mr. Jerome can do you see your Latam Airlines, Brazil, let me sit under it the larger vice president of corporate finance.
Please join me on slide two where you will find the highlights for the second quarter of 2019.
During the second quarter lot time carried almost 17 million passengers 1.4 million more than in the second quarter of 2018.
Even excluding the Chilean operations.
Passengers carried rose by more than 1 million in the quarter, mainly driven by increases in the domestic operations.
No company in the region grew more than last time in terms of passenger growth during the quarter.
This growth resulted in an increase of 3.2% in passenger revenue.
Domestic operations, excluding foreign exchange revenue spurious gay rose, 3% in the Spanish speaking countries.
And 29% in Brazil.
So we sold off a more balanced demand supply environment.
Increases in domestic segment.
Mostly offset reductions in the international segment.
Mainly influenced by currency devaluations.
And revenue pretty escape, especially from Argentina, and Brazil that continues to be affected by the currency devaluation and overcapacity in routes from Brazil to Europe .
I said resold capacity grew by almost 5%.
Unconsolidated passenger revenues fell by 1.5% U.S. dollars.
In addition cost per escape improved by 3.5% like corporate Gosper escape, excluding fuel improved by 5.2%.
Reductions during this quarter were mainly influenced by currency devaluations.
I said, we sold total operating income amounted to $40 million and the operating margin to 1.7% in the second quarter 2000 [laughter].
[noise] since they said they did in the first quarter result, we completed our merger between Latam Airlines, Brazil and Multiplus at the end of May According to the foreseen schedule.
Regarding the joint business associations, the Supreme Court in Chile ruled against the joint business agreements with American Airlines and I eat.
This certainly whats the surprise for us.
Disagreements where previously approved by all other jurisdictions seem to regions.
We are currently evaluating our next steps to be consistent with the Supreme Court's ruling.
Finally in July the trade things upgraded our corporate rating from B plus to double B minus.
Acknowledging our continuous efforts to strengthen the balance sheet.
Teach recognize the healthy liquidity levels, the financial flexibility and the debt reductions in these past few years.
Now, let Tom holds a double b minus rating by Fitch and it's a beep.
And it'd be a three rating from Moodys with a stable outlook for all of them.
With that I would like to hand, the call to understand about your vice president of corporate finance to see the border in more detail.
Thank you <unk> and good morning, everyone.
Please turn to slide number three you can see the summary of the income statement.
Total revenues for the company, we took a $2.4 billion in the second quarter on the patent side, we carried more than 1.4 million a decent passengers and capacity grew 4.8% in the quarter on revenues for escape and only by 1.5% in dollar terms.
As a result total button revenues rose people and 2% devaluation of the local currencies continue to affect international demand and revenue from domestic operations well measured in dollar terms.
Part of the revenues decreased by 10.2% in line with previous quarter, mainly due to the sale of the former subsidiary in Mexico mother, and lower imports into the region, especially to Brazil and Argentina.
Finally, I'd revenues fell 19.9% to 81 million butters, mainly due to revenue from sale leaseback transactions carried out in 2018.
Total costs increased by 1.1% in the quarter to toupin, keeping them daughters due to a 5.2% increase in crew costs as the company operated almost 5% <unk> case compared to last year.
Excluding fuel total cost declined by soup and 7% on cost for escape declined by 5.2%.
With all of this our operating income for the quarter was $40 million accounting for 1.7% operating margin.
Non operating results amounted $207 million or loss in the second quarter compared to 207 to been about a loss in the second quarter of last year.
This is explained by a 24 million 42 skin. During this quarter was in the second quarter of last year, we had a 172 of them that are forming teams loss.
With that net income amounted to $63 million last in the second quarter, an improvement of 245 <unk> versus last year.
If we take a look at the year to date figures on the right hand side of the slide revenues decline, 3.8% well costs remained relatively flat despite an increase in almost 6% in capacity.
Resulting in a decline of 5.3% in customer escape and separate selling costs for escape excluding fuel.
We got operating income for the first half was how does it put a two minute bedrooms and operating margin, 2.5%, while net income amounted to 220, feeling about a loss.
Please turn to slide them before.
Looking at the different business units you can see that the international operations continued being the most affected but showed improvement specialists and last quarter.
International segment represented approximately 57% of the total as case for the company through this quarter and a capacity grew by 3.3%.
Traffic was up 6% on load factor shows 2.2% that points to a very healthy 86.1%.
The increase in load factor was driven by operation from Brazil, as a result of the capacity adjustments announced for the previous quarter.
As a result revenues for his case were bought from four cents that is 12.1% lower than the same quarter of last year.
If you look at the domestic Brazil operations, which represents 26% of the total base case totally capacity increased by 1.2% and traffic grew by 4.8%.
Looks like to reach 80%. This is 2.7 percentage points above second quarter of last year.
If you remember last year's second quarter was affected by the strike of the crackers in Brazil.
At the low comparison base to get it with a continued recovery puts in domestic demand drove revenues pretty skis.
By 29.5% in local currency.
One measure and use daughters terms revenue pro skate rose, 18.7% to 617 cents.
In Spanish speaking countries domestic operations, which altogether, 1%, 17% up until the pattern capacity occupies rose, 16.4%, especially into live they do and Columbia.
Profit grew 15.2%, resulting in 0.8 percentage points declined to 79.5% revenues for escape declined by 7.2% during the quarter, mainly in Argentina, and Colombia due to the devaluation of the Argentinean and Colombian peso.
If we exclude foreign exchange effects revenues for its games would have grown 3% in the Spanish speaking countries domestic operations as a result overall assessment capacity grew by 4.8% year over year, this quarter and bone spring ski declined 1.5% year over year and load factors reached 83.3%.
Lastly, if we exclude the effect of the former Mexican subsidiary, our cargo pretty easily reduce capacity by 1.6%.
Blood clots in both Europe and 8%.
We saw an increase of 1.3% and fall into load factor to 55.8%.
Revenue spray teekay declined by 2.2% in the second quarter, mainly due to lower in parts of the region, especially in Brazil.
If you turn to slide number five you can see the main changes by point of sale of our passenger and cargo revenues over the last 12 months.
Hi group the graph on the left this reflects revenues by point of sale in the second quarter of 2018.
You can see that Brazil represented approximately 33% over told revenues Sealy was 60% on Argentina, 12%.
Once we move to be brought on Rightside, what's reflects revenues by country in the same period in 2019.
We can see a five point increase in Brazil on two points. Please do what Argentina declined by six months to 6%.
All of this shows the flexibility of the company to adjust quickly in order to mitigate the impact it could have in certain markets.
Please turn to slide number six.
On the top of the slide you can see them. The time today continues to expand its appraisals and transport more passengers with a much leaner organization.
We carried almost 17 million passengers in the second quarter and have reduced number of employees per aircraft compared to last year.
Fuel costs increased by 5.2% due to the expansion in our operations. In addition, we recognize a formula that our hedge loss in the second quarter was in the last year. We brought you said again up by $17 million.
Cost associated the wages and benefits decreased 0.8% driven by a reduction of about 2.7% in average head count for the quarter, a depletion of local currencies, especially the eight and 88% an 86% depletion of the Brazilian real and our tenant Argentine peso respectively.
If you look at the fleet costs, which includes maintenance depreciation and amortization expenses those were up 3.2% year over year in the quarter, maybe two to six more operates aercap fleet compared to second quarter of 2018.
Lastly, the other cost from this slide declined 2.9% in line with the previous quarter. Despite the increase in abrasives as part of our efficiency initiatives.
Finally customer escape decreased by 3.5% to six months haven't you sense was a customer a skate ex fuel declined by 5.2% year over year to 4.6, you sense.
Please turn to slide number seven.
Here, we can see that our customers continue recognizing the efforts to provide the best customer experience.
We were recognized as the best earnings in South America by Skytrax earned awards. We were also recognized the best business class Best business, 'cause lounge, and best economy class.
Our commitment to provide the best experience is reflected in the investment of five forums and daughters. During 2013, and 2022 I printed copies of most costs of our fleet.
We are receiving Arthur with a new cabins, which will help us to maintain the preference for our purposes on a competitive product.
In addition to the first eight to 20 and Boeing 7672 in July we have received the first fund triple seven for long haul operations out of Brazil.
Furthermore, Latam Airlines, what's most punctual airline in the World in April June and July we at the second place in May I called into five sets on time performance. It's one of the dimensions of our operations, where we have been focusing in the past quarters and those efforts have been recognized by different organizations, such as flights as or or GE at the beginning of the year.
Finally in line with their commitment with such as the sustainability. We have launched the campaign recycling you journey and domestic flights into live to recycling waste funded by inboard service and this will be gradually introduced two attempts operations in the region.
We have been recognized among the three most sustainable earnings in the world, but the Dow Jones sustainability index and initiatives such as respect to the journey will help us to maintain our leadership in terms of assessing stability.
Please turn to slide number eight.
If you look at the financial metrics on slide eight gross debt reached $7.7 billion and the leverage 4.5 times.
We continue having a very good liquidity position with a 1.4 bundled us off cash on hand, plus a balding credit facility that has been increased back to $600 million in the second quarter with this latimes liquidity position, which 19.5% of last 12 months' revenues.
If you look at the debt maturity profile, let be up UTI and less capital markets activities of lifetime.
During June and July we further adjusted our profile with the first public bond issuance of the TV market for roughly two of them in and daughters would have turned off about 10 years.
In addition, we opened in the last time 22 to six month issued earlier in February .
At 7% and added $200 billion at a rate slightly below 6%.
Using the proceeds plus a portion of the cash on hand in a tender offer for $238 million of color Tom 2010, the bond.
Reducing the maturities for 2020 .
Moving on to our hedges at the bottom left you can find our updated fuel hedge position us up to date.
For the second quarter of 2019, we hedged approximately 65% of the estimated fuel consumption.
For 2019, we have a good portion of the estimated fuel consumption hedged with 60% hedges for the third quarter and 53% for the fourth quarter.
For next year, we started to hedge and occurred position is 45% for the first quarter and 32% from second quarter.
Finally, we got to the guidance please move to slide number nine.
We are not changing the guidance provided in the previous quarter, we expect total capacity to grow between 3% to 5% this year.
This is composed by zero to 2% target for international business, 5% to 7% growth for domestic Brazil, an 8% to 10% for domestic Spanish speaking countries for patients.
We're also expecting cargo capacity to fees between zero to 2% this year.
As a result, we expect our operating margin to be between 7% to 9%. This year first half first half of the year, but some don't need very challenging end markets. This has very tough however strategy remains intact. Our plans are delivering results.
That concludes our presentation for today, we would be happy to open the line for questions. Thank you.
Thank you ladies and gentlemen at this time if you have a question. Please press the star followed by the number one key on your Touchtone telephone. If your question has been answered or you wish to remove yourself from the queue. Please press the pound key.
And to prevent any background noise. We ask that you. Please place your line IMMU. Once your question has been stated.
Our first question comes from Matt Fallon with Deutsche Bank. Please proceed.
Hey, guys just had a couple of quick questions here first.
A quick update on the JV you had planned with American Airlines and AG. Following the Supreme Court's ruling against the JV is there any alternative that you might plan to pursue.
Or is there some appeals process by which you might be able to get a different verdict or should we assume that you know that it's not a viable business case and the current regulatory environment, how should we be thinking about this.
Yes, Hi, Mike This is Robert Bardawil sold the Supreme Court ruling in two days or weeks or refused the approval of the JV is final we cannot appeal to dive in Chile.
And that's on there that given circumstances.
And now we're working with both the American AG in looking into how make operational the JV, we've the carve out of the Chilean.
Geography, so that's where the focus is at this point in time, and we're working hard, but we both our partners and making sure that we can implement this in the right. We've got to focus at this point.
Got it so if you cut out the Chilean part there may still be a viable business case for this.
In the future.
Yes.
Okay and then the second question. We had was could you just give us an update on the international side of the business. I think you mentioned there were some capacity pressures and markets between Brazil and Europe . So what are you seeing as we look at the international side of the business. Thus far in the current quarter is the overcapacity a trend that you see persisting or are there some offsets which might benefit your international RASK as we look into the back half of the year.
Yes, I think that from South America to the U.S. The market has rebalanced and we're seeing positive trends going forward ER and ER and we feel confident of gradual improvements.
In that regard the consideration of Argentina. After the election poses a question mark on that specific market, but Fortunately, we have been able to adjust up due to the prior crisis and we believe that the impact will be minor in the case of the U.S. at these puts in fact Europe . These under more stress and pressure with respect to capacity pick up but it's still growing significantly vis a vis last year in both Spanish speaking countries and and Brazil.
But we are seeing also a gradual improvement and a slowdown in India growth a French operator, just a announced as weak cancellation of surprise between France, or Lee and a global so I think that we are starting to see a little bit of a rebalancing there, but it's a it's a it's dry wells is not as sharp and then in the regional markets, which is within South America.
Persistent weakness on Argentina, because of the situation in Argentina of course, a significant improvement I would say in other markets in the regional side, but do not touch Argentina. So in general I would say that a positive trends in the last few weeks, we are more optimistic as we approach the second half and a question Mark at this point in time, it's I guess in the short term the reaction of the Argentine economy, given the news.
And I'm just monitoring the rebalancing that we think is necessary in the case of Europe to settlement.
Great. Thanks, a lot guys.
Thank you and our next question comes from Savvy Smith with Raymond James Your line is open.
Hey, Good morning, you know little definitely not all three last AMCOL and I feel that you are taking advantage of the can I thought 10 aircraft made available by I've, yet to Brazil, I Wonder if you could kind of take characterize what you are seeing in terms of schedules, our bookings and domestic brookdale here in the second half and if you're seeing some of that discipline that was demonstrated so far can be maintained.
So, yes, we well remember that the process of the snow that location is still a half to two different alternatives what are not Steve with relocating the slots into three airports, but also their view judicial reorganization process, which moves in foreign and has a different.
Our location of those lots on the on Thats still an open process from a legal perspective.
Having said that.
We were very happy with what we have been able to achieve in terms of lot views on the locationing, what do north and Central Tomorrow.
And we are increasing servicing key corporate markets out of those two.
Our airports and our leadership in wellness is very clear at this point in time, we've we've just launched that we gained out of that process in a way that we then act with respect to capacity.
I guess, we feel see.
Capacity.
In the second semester that resembles more or less the capacity we had in the second semester of last year and it will be less.
Weve, what's been published today by the three carriers and that means that I would say that a relatively important amount of the capacity.
Out of the anchor was flying second semester of last year has been you know way or another.
We recovered or put to work now recovered I guess by the three carriers, we still see I would say a very balanced situation in the market for the second semester.
That's helpful. Thank you and if I might ask one last question just on the US domestic Colombia expansion. The first phase we're still I think a pretty early on in there I Wonder if you can provide an update on how that is going.
Yes, the expansion starting July 1st So we are just a few weeks into into our project here at this point in time activity, we're satisfied with what we're seeing a devaluation of the Colombian peso of course affect yields when you see them in us dollars, but we have a product that we believe is a genuine I pointed out before the corporate passenger in the most important routes in Colombia, and so far we are satisfied with what we have.
Hi, Thank you.
Thank you and our next question comes from Matthew with Sninsky with Barclays. Please proceed.
Hi, good morning.
Just wanted to quickly come back to the operating margin guidance you know if we look at just the year in two parts you know margins were down for the first half of the year and then the guidance implies really strong performance in the back half year correct me. If my wrong I think margins well ahead and are ahead of what has been achieved in the past, but could you quickly talk about some of the kind of the main drivers are underlying assumptions, even from a high level, what's really kind of driving that that operating margin guidance.
Hi, Matthew this is Ramadan, yes of course, we can comment I think we're confident on what we're seeing on the on the second semester as as you mentioned, we had a difficult first quarter and this quarter. The second quarter is more in line with the previous year. The main points is that we have had the margins that we expect for the second half in the past.
Traditionally the second quarter is how were weaker quarter.
And the third quarter is generally a positive quarter and the point of comparison for the previous year since the devaluation of the currencies has started on the second half of 2018 is more benign. So we do expect to reach the.
The percentage of course, as we mentioned in our previous call. We will be on the lower end of our guidance, but we do expect to be in that frame.
Okay.
Alright, and then I'm just thinking about unit costs, you had pretty strong unit cost declines in the first half of the year, but as capacity starts to slow in the back half of the year should we expect that cost could potentially kind of inflect positively.
Yes, I think that what do we have targeted for the overall years to maintain the cost ex fuel similar to 2019, we're still maintaining that view, although in the second half as we will have a little bit less capacity in terms of base case depends very much on what the currencies do but maybe we will be in line or slightly above what got kasperski with <unk> would have been in 2018.
But very slightly above okay great.
Okay very helpful. Thank you.
That's right.
Thank you and our next question comes from real Harry <unk>.
So with you yes. Your line is open.
Yes, hi, good morning, So I have a follow up question.
Q with these extra competition, if I'm not mistaking youre mentioning there really is that that was a positive.
RASK in local currencies in the Spanish speaking countries, if you could.
Just confirm that and see a little bit how these is b, how RASK is behaving in Chile and Peru.
And what is the perspective for over the coming months. So when I look at the data on that would be great. Thank you.
Yes, they are higher rent, Oregon.
Thanks for the question, we are extremely happy I would say with our performance in both Chile and Peru in the last month, we've been not only able to grow and increase our passenger base.
The wrath, if you were to measure them in local currencies in both markets are increasing even despite the very important increasing capacity that we're seeing from us in the case of the rule, particularly and from the low cost carriers, we have relatively good load factors, but we believe we can improve them significantly and just as a matter of adding a lot of capacity in the short term because slots were released in Lima, We haven't reached in the second quarter, particularly but.
We are very confident on that and we're competing effectively we just launched basic economy into late last week, it's been nine days in the market and the results are extremely satisfying we believe we have the tools to compete in both Chile, Peru and in the case of Columbia at this point in time, we have we think a good presence in the in the leisure markets on our focus is to try to become a general alternative to the corporate passenger and we're working on that.
So very very good results from our perspective.
Sounds good very very good color, thanks very much.
Thank you.
Our next question comes from Duane Pfennigwerth with Evercore. Please proceed.
Hey, Thanks, just to follow up on some of the questions on domestic Brazil.
As you think about the trajectory of unit revenue growth for the balance of the year in the fourth quarter in particular, what are the odds that we see declining year over year unit revenue in the fourth quarter versus the 23% I think that you just posted in local currency.
We posted 29.5% from the second quarter.
And we are I would say quite confident in the second semester and we see strong double digit growth for the second semester when seen in local currency.
And you'd you'd see that outlook for the fourth quarter as well.
Yes.
[laughter].
Okay and then just on your joint business agreement I think you had a line in there if you implemented it according to the courts ruling what would you not be allowed to do versus how you intended to implement it is it is it specific markets or what specifically is is restricted.
What is restricted the Chile and geography.
So what we would not be able to do is to implement emitter neutral.
Full cooperation.
Partnership.
On flights.
That touch or flows that touch Chile.
That's not the only car.
Great and then just lastly, Argentina was already a very weak market for you for some time, you've been making some capacity adjustments.
How do we think about the incremental impact to earnings from this latest devaluation, whether margin points or RASM points versus when this first started to devalue is it just just if you could give us with the relative order of magnitude and thank you for taking the questions.
Yeah, that's I would love to have an answer for that question is just too early to make any assessment, we have only been selling for 48 hours. After this.
What is true, though is that our exposure to Argentina has decreased significantly we both got capacity and also we director of flows.
In a way to try to not be dependent on Argentina to the extend we were in the past we're looking now into the receptive market in Argentina as an opportunity it will not be immediate but Argentina now is very cheap for people that want to fly to Argentina. So the impact is it likely they're hard to say at this point in time, but is much much more subdued than the impact we saw last year when the big devaluations started on the whole process I guess of economic hardness start and I think you know so it's much less relevant to US today. We are I think also more protected.
Thank you.
Thank you Caroline.
And our next question comes from Marcos Barretto with Citi. Please proceed.
Hi, everyone. My questions have been answered thank you.
Thank you Marcus.
And our next question comes from Fernando <unk> dollar with JP Morgan. Please proceed.
Yes. Good morning, everyone I have a question on capacity growth for actually when you look to the level of margin that you delivered this quarter versus what are your peers grow winners who delivered it was a huge gap or even when you look to the full year margin guidance. There is a huge gap I would imagine your operation in Brazil has been delivering similar profitability ratios at least when we look to the RASK. For example, you grew almost 30% in realize which was even greater than what does zoo and go reported. So you are having a much lower margin. It leads me to conclude that your international and domestic Spanish speaking countries operations have been dragging a lot of your profitability. So if that is the case and then the question on capacity why are still growing 8% to 10% in Spanish speaking, it's still growing zero, 2% on international and not the opposite eventually reducing capacity on those markets and growing more in Brazil.
Thanks.
Yes, Fernando so.
Let me separate into yes, we're seeing a zero to 2% increase in capacity international but you have to distinguish first semester from second summit.
And our first semester will much more so you will see negative capacity growth for the international in the second semester I think it's important to to separate the average from the two semesters as we've got capacity in the first half of the year and that would be reflected in the second half and we have been adjusting to the situation in international we.
Canceled Rome, we decided not to launch for the time being Munich, and we took out approximately 20% of the capacity we have in international over Argentina. So we've made the adjustment and of course, we monitor this very closely all the time in the case of Spanish speaking countries.
When you see the results in local currency actually they are very encouraging and I would say that the biggest impact is evaluation of the currencies more than the performance of the company and what we see we are really happy in both children per which are long biggest Spanish speaking markets with our results.
We took the opportunity of plasticine very relevant and important slots in Lima. After the exit of two cars. There. So we're growing at strong double digits. There on their revenues are are proving that that was the right strategy. So I would I would separate the two things and I would say that indicates a Spanish speaking it relates much more so the currency down to the performance of our operation itself.
Perfect. Thanks.
Thank you and our next question comes from Paula guns with Bradesco BPCI. Please proceed.
Hi, it's actually a follow up question on the Argentina. So thanks. Thanks for taking my question and I would like to know how much of the 6% of revenue share Hi, Betty Argentina is international and how much is from David is domestic.
Yes, approximately 30% is domestic or a third and the remainder is international.
Approximately I'm sorry.
So.
Oh, one third the ones or even a international.
No one third of that 6% is domestic.
The remainder of the Internet.
China and a strong nine cashel par how much is like Oh can you give the number or the share that is from Chile, and Brazil, our passengers coming up from two in Brazil to Argentina.
Passengers coming from Chile, and Brazil to Argentina inflow, we have traffic for me.
Oh.
I don't have that figure bowed out in my mind and I don't think it's a it's a number we would disclose.
Okay. Okay. Thank you. Thank you very much for taking my question.
Thank you Paula.
As a reminder, ladies and gentlemen, if you do have a question. Please hit Star then one now our next question is a follow up from savvy sits with Raymond James. Please proceed.
Well, thanks for the follow up.
Could you remind me now that you know Multiplus and lastly attempt asset both in house you know what your plans are for the loyalty program.
So yes, we've completed the acquisition of multi blues and therefore, it's fully into the company we will.
In the <unk> in this quarter the third quarter of the year, we will complete the integration from a most perspective and the only thing I would say that would be remainder for the rest of it will be this some systems.
That are still different.
But from an operational perspective, we were working since day one.
Our fully owned entity.
And.
And so that's it so.
Not sure what was the rest of the question no I guess savvy that.
We can confirm that the synergies, we anticipated and the timeline that we.
We committed to the market has been delivered and the synergies are proven to be there and were obtained in them and basically what we want to achieve is to to to provide our program members a better value proposition for redeeming their points in Brazil and abroad.
And to increase the preference for our services.
That all makes sense. Thank you and if I might just one quick in a strategic question. Just wondering if the you know the LR are the XLR has any kind of a good fit within a lot lactam network.
Of course, we watch we see and evaluate all the alternatives and.
And we are we are looking into that as just as much as we're looking into all the other accounts that have that are being produced and will be produced.
And if we make a decision regarding this and other program of course, we will disclose publicly at the time.
All right helpful. Thank you.
Thank you sorry.
And this concludes our kinase session for today. Thank you again for joining US today, please feel free to contact our Investor Relations Department. If you have any additional questions. We look forward to speaking with you again soon.