Evertec Inc (EVTC) 2014 Q2 法說會逐字稿

Good afternoon, everyone, and welcome to the EVERTEC Incorporated second-quarter 2014 earnings conference call. Today's conference is being recorded.

At this time I'd like to turn the conference over to Luis Cabrera, Senior Vice President Treasury, Investor Relations and Corporate Development. Please go ahead, sir.

Thank you, Operator. Good afternoon, everyone. Welcome to EVERTEC's second-quarter 2014 earnings call. I'm Luis Cabrera, Senior Vice President, Head of Investor Relations for EVERTEC. With me today is Peter Harrington, our President and CEO, and Juan Jose Rom, Executive Vice President and Chief Financial Officer.

A replay of this call will be available until Wednesday, August 13, 2014. Access information for the replay is listed in today's financial press release which is available on our website under the investor relations tab. As a reminder, this call may not be taped or otherwise reproduced without EVERTEC's prior consent.

Before we begin I would like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These forward-looking statements about our expectations for future performance are subject to known and unknown risk and uncertainties. EVERTEC cautions that these statements are not guarantees of future performance.

All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statement to reflect the events that occur after this call. Please refer to the Company's most recent annual report on Form 10-K filed with the SEC for factors that could cause our actual results to differ materially from any forward-looking statements.

During today's call, Management will provide certain information that will constitute non-GAAP financial measures under SEC rules, such as adjusted EBITDA adjusted net income, adjusted net income per share. Reconciliations to GAAP measures and certain additional information are also included in today's earnings press release. With that we'll begin by turning the call over to Peter Harrington, our President and CEO. Peter?

Thanks, Luis, and good afternoon, everyone. Thanks for joining us on today's call. We had another good quarter highlighted by Merchant Acquiring and Payment Processing revenue growth of 9% year over year. Adjusted EBITDA margin expansion of 130 basis points to 50% and adjusted earnings per share growth of 17% to $0.41.

Revenue growth in our Payments business outside of Puerto Rico remains strong in the second quarter increasing 10% compared with Q2 of last year. We continued to see good growth in all of our and non-Puerto Rican markets driven by demand for our card product and POS processing solutions. Within Puerto Rico, transaction growth was solid, despite the ongoing economic headwinds, as POS processing transactions were up 7% on a year-over-year basis.

As our results for the first half of 2014 indicate, demand for our Payment services remains solid across our entire Latin American footprint. And our new business pipeline continues to build into the second half of the year. Looking forward, our outlook for our Payments businesses remains positive based on our leading market position, our demonstrated ability to gain share in all of our markets and the ongoing secular cash-to-card conversion trend which is driving consistent growth of electronic payments across our entire market footprint.

I want to share with you a few new business developments in Payments, which show that we continue to successfully execute on our growth plan. First we are now in the final steps of acquiring the principal member license for Visa Columbia. This means we can sponsor any financial institution that is not a direct Visa member to issue Visa branded cards or acquire Visa transactions under the EVERTEC license.

While having this license allows us to be a direct acquirer of Visa transactions, as we've stated in the past, this is not our strategy. Instead we're aiming to find one or more partners whose commercial relationships we can leverage and they in turn can leverage our members' license, scale, network and expertise.

Next, I'd like to give you a quick update on the new Puerto Rico value added tax project, which we announced last quarter. As a reminder, we developed and are now hosting an integrated merchant portal for the reporting and payment of the new tax. The new VAT tax will go live in August and we will continue to expect that this service will yield additional Payment Processing revenue as new merchants are included in the portal throughout the year.

Now for Business Solutions. Business Solutions revenue declined 4% year over year in the second quarter to $44.9 million. Growth in this segment continue to be affected by lower levels of hardware and software sales, versus a particularly strong sales we had in the first and second quarters of last year. It's worth mentioning however, that excluding hardware and software sales, Business Solutions revenue grew 2% in the second quarter, in line with the first quarter results excluding hardware and software and also consistent with our expectation of low single-digit growth for the business.

Overall we continue to see solid demand for our recurring Business Solution products and services such as Network Solutions and IT consulting. And we continue to sign new deals. For example in July, we're awarded a contract with the Puerto Rico Police Department to provide a new data protection infrastructure. We were also recently awarded a contract to implement kiosks to provide digital information network throughout the largest mall in the Caribbean.

Turning now to our full-year 2014 outlook. We continue to look for upper single-digit revenue growth in our Payment businesses driven by the positive market trends that I just discussed. In addition, our adjusted EPS guidance of $1.65 to $1.71 remains unchanged. As our first and second quarter results have shown, lower margin hardware and software sales have very little impact on the profitability growth; and as a result, we have either met or exceeded our EPS expectations in the first half of the year despite the revenue shortfall.

However, based on our current visibility into hardware and software sales for the remainder of 2014, we now believe there is significantly higher risk that we will not achieve our overall growth target for Business Solutions this year. As a result, we are adjusting our 2014 total revenue growth guidance range to 3% to 4% from the 5% to 7% previously indicated.

While we continue to see new business opportunities, this segment is more susceptible to delays in client decision-making and in some cases because of the current economic situation in Puerto Rico. Thus increasing the risk that hardware and software sales will be lower than previously expected.

In summary, our second-quarter results were solid and we've entered the second half of the year with strong momentum in our Payment businesses. The hardware and software components of our Business Solutions unit are creating a drag on our top line results. But because of the strength of our business model, we continue to achieve greater profitability and strong free cash flow.

We continue to take the steps necessary to position EVERTEC for accelerated growth over time. And we are confident in our ability to succeed given our strong market position, best in class network and services, and unmatched track record of delivering value to our customers.

I will now turn the call over to our CFO, Juan Jose, who will take you through our financial results in more detail. Juan?

Thank you and good afternoon, everyone. As Peter mentioned, in the second quarter the Business side of our business performed very well with both Merchant Acquiring and Payment Processing revenue growing 9% year over year. On the Business Solutions side, similar to the first quarter we again have a typical year-over-year comparison due to the particularly high level of hardware and software sales we booked in the second quarter of 2013.

Nevertheless, operating leverage in our Payment related businesses combined with our ongoing focus on managing cost, again enabled us to increase profitability. In the second quarter, we delivered over 100 basis points of adjusted EBITDA margin expansion and strong double-digit adjusted net income and EPS growth.

Let's go through the results in more detail. Total consolidated revenue was $91.1 million, an increase of 2% compared with $89.2 million in the prior-year period. Turning to our segments, Merchant Acquiring net revenue increased 9% to $19.8 million from $18.2 million in the prior-year period. Growth was driven mainly by an increase in transaction volume.

Payment Processing revenue also increased 9% to $26.4 million in the second quarter up from $24.3 million in the prior-year period. Growth was driven mainly by new customer additions and an increase in accounts on file within our card product business, as well as an increase in ATH and POS processing transactions. In addition, as we discussed with you in our Q1 call, in the second quarter we recognized approximately $0.65 million of revenue from the Department of Education program with processing Puerto Rico. We recognized no revenue from this program in the second quarter of 2013. Excluding the Educational program, our Payment Processing revenue would have increased approximately 6% year over year.

Our Payment related businesses outside of Puerto Rico continue to grow at a strong pace in Q2, up 10% versus the prior year driven mainly by card product processing. Additionally, POS volume growth within Puerto Rico was up a solid 7% compared with the prior year.

Our Business Solutions segment revenue decreased 4% to $44.9 million in the second quarter compared with $46.7 million in the prior-year period. Similar to the first quarter, this decrease was due almost entirely to a $2.9 million decline in hardware and software product sales in the quarter, partly offset by increased revenue from other product and services including Network Solutions and IT consulting.

Moving to expenses on a GAAP basis, our second quarter total operating expenses were down by approximately 9% compared with the prior-year period. Cost of revenue excluding depreciation and amortization was $38.8 million, a decrease of $2.9 million or 7% for the corresponding 2013 period. This decline was due primarily to a reduction in cost of sales resulting from lower level of hardware and software product sales.

Selling, general and administrative expenses for the quarter were $10.5 million, down $2.2 million or 17% from the corresponding 2013 period. This decrease was due mainly to a one-time $3.1 million non-cash charge taken in the second quarter of 2013 in connection with the vesting of all our tranche B and C stock options as a result of our IPO. The decrease was partly offset by $1.1 million in professional fees related to our debt offering in the second quarter of 2014 which was withdrawn for reasons I will explain in a few minutes.

Depreciation and amortization expense decreased $1.5 million, or 8% compared with the prior year. The decrease is related primarily to lower amortization of software packages that became fully depreciated.

Income from operations for the second quarter was $25.4 million, an increase of 60% compared with $16.9 million in the corresponding 2013 period. Total nonoperating expenses were $5.7 million, a decrease of $81.2 million for the corresponding 2013 period. The decrease was driven mainly by two nonrecurring expenses incurred in the second quarter of 2013.

First a $58.5 million loss related to the extinguishment of debt as a result of our debt refinancing in April 2013. And second, a $16.7 million expense associated with the termination of our consulting agreements with Apollo and Popular. In addition, our interest expense declined by $3.2 million as a result of our refinancing last year. GAAP income tax expense in the second quarter was $2 million versus an income tax benefit of $5 million in the prior-year period.

Cash income tax expense was approximately $0.4 million versus approximately $1 million in the prior year. We expect cash taxes to return to a more normalized rate beginning in the third quarter. As of June 30, 2014 we had approximately $58 million of NOLs available to offset future tax payments related to our operations in Puerto Rico.

Adjusted EBITDA for the second quarter was $45.5 million, an increase of $2.1 million or 5% from $43.4 million in the corresponding 2013 period. The increasing adjusted EBITDA was due mostly to revenue growth and operating leverage in our Merchant Acquiring and Payment Processing businesses. Adjusted EBITDA margin was 50%, up 130 basis points from 48.7% in the prior-year period.

Adjusted net income in the second quarter was $32.2 million, up 11% from $28.9 million in the prior year. This increase was due mainly to adjusted EBITDA growth and lower levels of operating depreciation and amortization expense and cash taxes.

Moving to our balance sheet. As of June 30, we reported $27.8 million of unrestricted cash and $698.6 million of total short-term borrowings on long-term debt. During the quarter, we made a mandatory repayment of approximately $4.8 million on borrowings outstanding on our Term A and Term B senior secured credit facilities, paid $17 million on our revolving line of credit, and paid dividends of $7.8 million.

As of June 30, total liquidity which includes unrestricted cash and available borrowing capacity under our revolver, was approximately $104.8 million. For the second quarter, our free cash flow, refinanced adjusted EBITDA minus CapEx, cash interest expense and cash income taxes was $32.2 million, up 10% compared with the prior-year period.

Now I would like to briefly address the $400 million senior note offering which we withdrew from the market in June. Our aim was to opportunistically access the debt capital markets to enhance our already strong balance sheet with longer term low fixed-rate capital. However, as we went through the process, we concluded that it was not the right time to move forward giving the cost of capital achievable was not attractive to the Company.

We do not need to refinance any of our existing debt at this time, our balance sheet is as strong and has no significant maturities over the next four years. And as you know, we generate significant annual free cash flow. All of this means we maintain considerable financial flexibility and if we choose, we can pursue new debt financing alternatives at a time that is beneficial to us and our shareholders.

We remain committed to the prudent return of capital to shareholders. This afternoon we announced that our Board of Directors declared a regular quarterly dividend of $0.10 per common share.

Now onto our guidance. As Peter mentioned, we now expect total revenue growth in 2014 to be between 3% to 4% compared with our prior outlook of 5% to 7% growth. Our updated revenue guidance reflect greater risk to the hardware and software portion of our Business Solutions segment. We continue to expect adjusted EBITDA growth of at least 100 basis points higher than our revenue growth, and fully diluted earnings per share of between $1.65 and $1.71.

We now expect full-year 2014 operating depreciation and amortization expense of approximately $31 million compared with $32 million previously. We continue to expect cash interest expense of approximately $23 million and fully diluted shares of approximately 79.2 million. We expect 2014 cash income tax expense of $2 million compared to $3 million previously. Our 2014 effective tax rate outlook on a GAAP basis remains between 10% and 12%.

With that, Operator, we will now open up the call for questions.

(Operator Instructions)

Jim Schneider with Goldman Sachs.

I understand that the hardware and software is relatively immaterial to your EBITDA contributions keeping your earnings guidance unchanged, but can you give us a little bit of color around the hardware and software bookings in the pipeline? Whether you think that any of that business is pushing out to the back half of the year so you're being conservative of the full-year outlook, or do you think that most of this may not happen at all in 2014 and may just get pushed into 2015 or canceled altogether?

I would say that we probably see at this point that more of that will get pushed to 2015 from 2014. We do have opportunities that we will execute on in the second half of the year, but given some of the projects that we expected in 2014, that clearly won't happen until 2015.

But I think you need to understand that a lot of this hardware and software comes from current customers where we are ready have a recurring revenue stream and maybe where we've had a contract and they are now upgrading to newer versions of hardware and software. And so we will continue to generate the recurring revenue, it's just that refresh that has now been probably been pushed to 2015.

Okay that's helpful, thanks. And then I was wondering if you could give us any update on your partnerships for processing in Colombia in terms of the two customers that you've already signed up. When should we expect to start to see revenue materialize from those customers?

Nothing's changed there. We are implementing and we expect to see the first revenue by year end in the fourth quarter. So we are very much in the midst of going through the implementation process, but nothing has changed from the last quarter. We expect to bring that first customer on line by end of year.

That's helpful. Thanks so much.

(Operator Instructions)

Tien-tsin Huang.

Following up on that on the hardware, software sales. Is it broad based or is it really Popular that's driving some of that? And I'm curious on Popular how their spend is tracking versus plan. I noticed they paid back TARP, so wanted to get an update there.

I would say the hardware shortfall is less Popular and more the government. When you look at -- what we had expected in 2014. Popular's revenue give or take is roughly flat and in line with where we expected it.

Okay, so no big change there. Fair enough, that's good to know. And then Peter, from the -- I think in the past you've talked a little bit about new deals and bookings and backlog. I know you don't give us hard numbers there but can you compare for us year to date how bookings, backlog compares to this year versus last year?

I would say its right in line. We signed a couple of new customers in the second quarter. So right now based on what I'm seeing we should have a year that looks a lot like 2013 as far as new customer sales on the Payment side. We don't really track, because of the nature of the Business Solutions side, some of all the smaller deals that we do in the network and BPO business. But on the Payment side we're in line with where we were last year.

Okay, that's good to know. And last one for me, sounds like Puerto Rico is pretty stable, that's good, but there's been a lot of rumblings of different changes regulatory wise in different parts of Latin America. I know you're not big in Mexico, I know the VAT tax change there, but anything to call out that may be good or bad relative to when we last got together with respect to the regulation situation around Payments? Thanks.

I don't see anything around the Payment side. I think clearly there's been again a considerable amount of noise related to Puerto Rico. And I think that what we're seeing is probably some of the impact of that is the pushing out of some of these projects to refresh the hardware and software.

But as you saw in the numbers, we don't see it on the Payment side of the business. We're still seeing consumption just as we have, as I've been telling you every quarter, we've been running at 7% to 8% year-over-year growth and that continues. And to be honest with you, we're seeing the same thing already in the beginning of this third quarter. So that trend I don't see any impact to it.

Now that's good, that's consistent. Ironically actually a little better than the ISO performance sounds like this quarter in the US. So that is ironic. Anyway, appreciate that.

Georgios Mihalos from Credit Suisse.

To build on the prior question from Tien-tsin. Peter, any update with regard to signing another merchant alliance obviously outside of Colombia? I thought there was perhaps something else in the pipeline that could be imminent.

Yes it is, I don't have any news for you Georgios, we're still -- it is out there. I think we've gotten to a point where we're waiting on them. I think they've got probably some stuff they're working through internally. But we still be feel good about it. I don't have any real update for you, we're still there. (multiple speakers)

Now what I think is a positive of the Columbia thing is now as I told you before I had to wait to get this before I can actually go have conversations. So now I'm in a position where we can start focusing on that to find our partner in Columbia.

Okay, great. And did that -- is your sense that that's not at this point going to materially weigh on how you're thinking about 2015 growth, the push out of the merchant alliance?

No.

Okay, great. And last question for me I think you had mentioned that revenue growth outside of Puerto Rico was low double digit, call it about 10%. Did that decelerate a bit from what you saw in Q2?

No, no. I think -- well it did from on a real basis of -- we grew 16% in the first quarter.

Okay.

But as we've said before, it's not really deceleration. It's that if you look at what we published in the third and fourth quarter of last year, it goes up and down a little bit because as you can imagine, it has to do with the size of the customers I put on. And so if I put on big customers last year and smaller customers this year in the quarter, than obviously the number is affected. But I wouldn't read anything more than that, this is how it's going. You'll see some quarters that will be in the low teens, some quarters it will be in the mid teens, I think that's what you'll see. We still think it will run around, somewhere around 15% give or take year over year.

Okay, thank you.

Bryan Keane with Deutsche Bank.

Wanted to follow-up on that, on the international growth, is there areas of strength versus areas of weakness that you can talk about that you saw in the quarter?

No, not really. We don't give it out -- we don't give the market by market. I would just tell you that we continue to sign business in a number of the markets we're in. So we're seeing growth in sales in all of our markets like we did last year and we're seeing the growth -- its driven again, a lot of this is driven by two things. The sales we had last year and the cash to card conversion, and we're seeing that pretty uniform across the market.

Okay. And then to follow up on Business Solutions, what does the revenue guidance for year now come out to be for Business Solutions? And then do we expect a rebound in the first quarter 2015 or is the visibility still unclear when that rebound will be in Business Solutions?

For the rest of the year, Business Solutions maybe the second half will be around 4% growth versus last year. Yes -- well we still have not look into 2015, but the reality is it should -- we expect to be better than 2014 mostly because of the impact early this year, hardware and software will be lower, so we expect to be more a normalized year starting Q1 of next year.

Okay, all right, that's helpful. Thanks, that's all I had.

[Fatome Bigoli] from Bank of America Merrill Lynch.

Most of them have been answered already, but once again, so what -- the current Puerto Rico situation, how is that affecting EVERTEC specifically and what are you hearing from clients? Thanks.

Well again, if you look at it from an EVERTEC perspective, let's separate it, like we said, on the Payment side, we've seen really no impact in that we continue to see growth in the Payment transactions and again we have probably more visibility to this than anybody. And we're seeing very consistent growth year over year on the Payment side of the business and you see that in the numbers.

On the Business Solutions side, we have seen no impact Popular at this point. So Popular is behaving exactly from a revenue perspective for EVERTEC as we had expected really to behave and in line with what's done last year. So we don't see any negative impact to Popular, it makes up the majority of the revenue in Business Solutions.

We do think there is a lot of uncertainty in the government side and I think you're seeing that in some of these projects that are not being upgraded as quickly as we had expected them to be. I'll be honest, we think its just timing, we think -- they're going to have to upgrade at some point. It's with -- they're trying to balance the budget for the first time in 22 years. I think that probably has more play in it than anything else.

I see, thank you. So to clarify again, Business Solutions weakness was mainly due to government, is that right or -- ?

It was mainly due to hardware and software. But in the hardware and software, is was predominately government contracts.

I see, okay. And then for Merchant Acquiring and Payment Processing is it okay to assume they're expecting high single-digit growth for the second half?

Yes.

Okay, that's all had, thank you.

Chris Brendler with Stifel.

I wanted to ask a follow up on the international expansion firm, the strategy and the plans to find an acquiring partner. You're in Columbia, other markets like Costa Rica, Panama. No real update sounds like from you guys at this point. I wanted to know, take your temperature on how you feel about the multi year look -- outlook. It's something you're starting to get discouraged about, or it's simply that it continues to take (multiple speakers). And maybe by market, how are things trending a sample of potentially getting something done in calendar 2014?

Yes, I think as we have said before, this is a new experience for the partners that we're talking to. This is not a common practice in our footprint. We're the ones trying to lead this in the market. So yes we clearly have learned that it will take longer than we had originally expected. But I am not anymore -- no more confident that I was before.

Columbia is a different story, we really couldn't move in Columbia until we had access to license it. And now we feel very good about Columbia because we have finally gotten the visa license which gives us the ability now to actually go into the market. Now as we've said in the script, we could go in as EVERTEC, but that's not the strategy that we have been pursuing or will pursue. We want to partner with the financial institution.

Okay, great. And then for Puerto Rico for a second, it sounds like it's remarkably stable. And inflection in terms of consumer spending and spending on card? Is this hear of 7% rate (inaudible) very consistent to the last several quarters, any movement either away on that front?

It has been so consistent that there is nothing that we see that tells us that that's going to change. Now we have gone through a lot of noise as you know here over the last give or take what six, nine months, it hasn't changed. So the consumer confidence in the market hasn't -- if anything has had absolutely no impact.

I think this is very isolated. There's been a lot of noise but it's not about the consumer, it's about the government. It's not really about -- and because we would see it, believe me, we would see it before anybody else saw it.

Okay, great, thanks so much.

Bob Napoli from William Blair.

Any chance we could get hardware and software sales number for 2013? I think I asked last quarter, it's such a huge difference in margin that it would be great if you broke that out. What did you have in full year 2013? And what you have year to date in 2014?

Let us look at that, I don't have that in front of me. But me or Juan will get back to on that, Bob.

Again I want to remind -- last year was around 3%, 3.5%, give and take percent. This year obviously would run even lower than that. So at least give you a good sense of what the number is, it's really not --

3% of total revenue, Juan?

Of total revenue.

Okay.

Like 3.5%, around that.

Okay, thank you. And then in the non- Puerto Rico growth, where -- as you look at expecting that to continue in mid double digits, what markets are you getting -- are the most and where are you getting the majority of that growth today and where do you expect to be getting it over the next couple of years?

Obviously it comes from the bigger markets that we operate in today.

Panama or --?

What I'm saying is the market -- if you look at our footprint today, Bob, so our bigger markets would be Panama, it would be Costa Rica, it would be the Dominican Republic, those are our bigger markets in our current footprint. And that's where obviously the bigger banks are and we're seeing the majority of the transactions. But we're seeing growth in El Salvador, we're seeing growth in Guatemala, and Curacao, and a number of other markets. They're just -- if you look in the grand scheme, those are fairly small markets. The future obviously, the growth will come from places like Columbia. That's where the growth -- the majority of the growth will come from as we go forward.

Okay.

That story really hasn't changed much, Bob.

Any different thoughts on return of capital and share buybacks? You're generating a lot of capital, paying down debt, how much longer do you want to pay down debt? I know you'd love to do an acquisition or to buy a portfolio, but it doesn't some like you're that close to anything material on that front. So what are your thoughts as far as share repurchases?

We have no change, we continue focusing on investing in the Company. In term of our debt repayment as I said today, we continue paying down our revolver, you should expect that that will continue. So we expect to pay all of it during this year. And we'll continue doing the mandatory debt repayment, right?

After that yes, we will have the discussion with our Board to evaluate what other alternatives we will do including the buyback. As we said, we buyback last year was very positive for our shareholders, so it's a consideration for us to discuss with our Board. But short term as I said, you will see us paying down fully our revolver.

And then from an M&A perspective, Peter, you're not really seeing any material opportunities at this point?

Not for 2014, no.

Okay. Great, thank you very much.

(Operator Instructions)

Smitti Srethapramote from Morgan Stanley.

A follow-up question on the international expansion plans especially on the Merchant Acquiring alliance front. Wondering would it -- do you think it would be possible to accelerate the timeframe of signing some of these alliances if you were to contribute some of your own capital to start a JV?

No, I don't think so because I would be happy to do that today. It's not -- it isn't that we're reluctant to commit capital, as we just said, that would be my first use of capital before I would even pay down the revolver and do a buyback. My first use of capital would always be to invest in the business and now it's not -- that isn't going to help the process. We're more than happy to do that today.

Maybe a follow up on the international front. A while back you guys talked about introducing new products like dynamic currency conversion and such. Can you give us an update in terms of what's in the pipeline for new products and new geographies that you are likely to enter outside of the Merchant Acquiring alliance front?

There is no substantial product offering that I would highlight to you today. We're always adding functionality to the platform but there's nothing that stands out like dynamic currency conversion, or ATH, the person-to-person payment product that we launched. There isn't anything today that I would -- that's imminent that I would bring to the -- that I would put on the table to you.

Okay, thank you.

And it appears there are no further questions at this time. Mr. Harrington, I'd like to turn the conference back to you for any additional or closing remarks.

Thank you, Operator. In summary, we had a solid second quarter. We continue to add business from new and existing customers. We continue to invest to support long-term growth, and we're driving greater profitability by leveraging our attractive business model. I want to thank you for your support and I look forward to speaking with you again on our third-quarter earnings call. Operator, you may now end the call.

This does conclude today's conference. Thank you for your participation.