Information Services Group Inc (III) 2010 Q4 法說會逐字稿

Good day, everyone, and welcome to the Information Services Group fourth-quarter 2010 and year-end earnings conference call. Today's conference is being recorded, and a replay will be available on ISG's website within 24 hours.

Now for opening remarks and introductions, I would like to turn the conference over to Mr. Barry Holt. Please go ahead, sir.

Thank you, operator, and hello. My name is Barry Holt. I am Senior Communications Executive at ISG. I would like to wish you a good morning, and welcome everyone to ISG's 2010 fourth-quarter and full-year earnings conference call.

I'm joined today by Michael Connors, Chairman and Chief Executive Officer; David Berger, Executive Vice President and Chief Financial Officer; and David Whitmore, CEO of Compass and Vice Chairman of ISG, who is joining us today.

Before we begin, I would like to read a forward-looking statement. It is important to note that this communication may contain forward-looking statements which represent the current expectations and beliefs of the management of ISG concerning future events and their potential effects. These statements are not guarantees of future results and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated. For a more detailed listing of the risks and other factors that could affect future results, please refer to the forward-looking statement contained in our Form 10-K furnished yesterday to the SEC and the Risk Factors section in ISG's Form 10-K covering full-year 2009 results, which was filed with the SEC on March 8 of last year. The 10-K for 2010 will be filed on March 16.

You should also read ISG's Annual Report on Form 10-K for the fiscal year ending December 31, 2009, and any other relevant documents, including any amendments or supplements to these documents filed with the SEC when they become available. You will be able to obtain free copies of any of ISG's SEC filings on the SEC's website, www.SEC.gov.

ISG undertakes no obligation to update or revise any forward-looking statement to reflect subsequent events or circumstances. Non-GAAP measures are provided as additional information and should not be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. For the reconciliation of all non-GAAP measures presented to the most closely applicable GAAP measure, please refer to our current report on Form 8-K submitted yesterday.

You'll have an opportunity at the end of this presentation to ask questions, and now I would like to turn the call over to Michael Connors who will be followed by David Berger and David Whitmore.

Mike?

Thank you, Barry. Today David and I will recap ISG's 2010 results and the progress we have made in shaping our Company for the future. Let me begin by giving you an overview on our fourth-quarter and full-year 2010 results, followed by an update on our acquisitions and a discussion of our outlook for the business environment.

In 2010 we stabilized the business, working our way through a recessionary-like environment achieving $132 million of revenue, essentially flat from a year ago. We achieved a 12% EBITDA margin in 2010, despite the difficult operating environment. We have delivered on what we said we would.

There are three important points to make about our 2010 results. First, we outperformed the industry, gaining market share. Second, while it appears that our second half was weaker than our first half, if we strip out the impact of one large contract that was completed in July, our core business was sequentially flat. And third, despite the operating environment, we made some important changes in the Company's composition, specifically with respect to changes in geographical mix and the contribution of new service lines.

Now let me discuss each of these three points in some detail. First, we gained market share in 2010. Based on our recently issued fourth-quarter 2010 TPI Index, full-year 2010 total contract value for the industry declined 11% year over year to $79 billion. This compares to our essentially flat results. As further evidence, our market leadership was demonstrated this year by being ranked number one in the 2010 Global Outsourcing 100, the world's best outsourcing advisors by the Independent International Association of Outsourcing Professionals, and further recognized in Fortune Magazine.

Second, the fourth-quarter and second-half results appear to show a bit of a sequential deceleration. In reality, our core business was essentially flat through the year if we exclude the impact of one large engagement we previously communicated to you that concluded earlier in the year than we anticipated. The financial impact of this engagement will obviously also make for challenging first-half comparisons, but we look forward to much better comparisons in the second half of this year.

Third, we have made some important developments in our Company's composition, mainly changes in the relative contribution of some key geographies and service lines.

With respect to geographies, our investments in Asia Pacific are clearly paying off as we recorded full-year 35% constant currency growth in the region. The growth in Asia Pacific offset weakness in Europe as revenues declined there 10% as companies continued to defer some sourcing decisions amid the uncertain economic and financial climate. Revenues in the Americas were essentially flat, declining by about 1% from the previous year.

Now with respect to our service lines, during 2010 we continued to expand our annuity-like business and information products and governments services since launching them in 2008.

For example, last quarter we informed you about a new two-year governance services agreement valued at over $4 million with a major transportation company to provide managed services for their service provider contracts with an additional option to extend the contract two years. And earlier we informed you that we signed a five-year multimillion dollar agreement with a major drug chain to govern their outsourcing contracts. We have now surpassed the $1 billion mark of total contract value that we managed in just over two years.

In summary, 2010 was challenging, but we are pleased with how we performed given the environment and in light of the industry dynamics. Our investments to drive organic growth in new geographies, industry verticals and service lines are beginning to show favorable returns. In addition, our investments in time and energy exploring acquisition candidates over the last 18 months resulted in the closing of two important transactions in 2011, and I would like to spend a little time discussing the implications of those.

We continue to believe, as we have discussed for several quarters, an acquisition strategy to expand our product and service offering is in the best interests of building long-term value. Along those lines, we made two major announcements over the last two months, the acquisition of Compass and the acquisition of STA Consulting. Both acquisitions are consistent with our strategic direction, and both will add long-term value to shareholders.

These accretive acquisitions provide proprietary data and new capabilities at strong brands and are well-known to our team. And importantly, these companies share a common set of values with ISG.

On January 4, we announced the acquisition of Compass, who is the UK-based premier independent global provider of business and IT benchmarking, performance improvement, and data and analytics services. Compass immediately enhances the data analytics and advisory capabilities we can deliver to our clients. By combining an approach grounded in real-time data collection and fact-based analysis, TPI and Compass can together take advantage of the robust demand for insight and operational expertise required by our clients around performance improvement and transformational change.

We have already seen success in the market. In less than two months, we already have six combined Compass TPI client victories, including National Grid, National Bank of Canada, and the Australian Government Information Management Office, totaling over $1 million in sales, more evidence we believe in the power of this combination.

On February 10 we announced the acquisition of STA Consulting, a premier independent IT advisor serving the public sector. STA Consulting advises clients on information technology strategic planning and the acquisition and implementation of new enterprise resource planning and other enterprise administrative and management systems. We are pleased to welcome STA Consulting to ISG. They immediately expand our recurring revenue stream with multiyear engagements, strengthening our public sector vertical and increasing our expertise in IT strategic planning, ERP and other enterprise administrative systems. As with the acquisition of Compass, this combination demonstrates we are executing on our strategy of building ISG into an industry-leading global information-based services company for the private and public sectors.

The public sector is under pressure to become more cost efficient and effective in a difficult environment highlighted by a declining revenue base, outdated IT systems and an aging workforce. We are increasing our capabilities with this acquisition to assist clients further in that effort. The combination of our three brands -- TPI, Compass and STA Consulting -- is strategically powerful, timely and capable of creating substantial growth opportunities we believe over the near- and long-term.

We continue to build ISG into a leading technology insights, market intelligence and advisory services company. ISG is shaping our portfolio of services to focus on the growth engines we expect to emerge as the markets and the sourcing industry turn up. We support private and public sector clients in transforming and optimizing their operational environments. And we are now able to do that through strategic consulting, benchmarking and analytics, managed services and research with a focus on IT, business process transformation, and now enterprise resource planning.

We are positioning ourselves for growth as these conditions improve. Evidence of the strength of our market position includes the share gains and expanded client base, new recurring revenue streams, industry verticals and emerging markets expansions. We are confident that revenue growth will follow as the economy and industry improves in the second half of 2011. We are targeting revenues in 2011 of approximately $180 million with margins in the 12% plus range.

Now let me turn the call over to David Berger who will summarize for you ISG's financial results.

Thanks, Mike, and good morning, everyone. Before I discuss our financial results, I would like to reiterate that ISG has presented GAAP financial results, as well as certain non-GAAP information in our earnings release.

During this call I will discuss certain non-GAAP financial measures, which ISG believes improves the comparability of the Company's financial results between periods and provides for greater transparency of key measures used to evaluate the Company's performance. The non-GAAP measures I will touch on today include adjusted EBITDA, adjusted net earnings, and the presentation of selected financial data on a constant currency basis.

During the fourth quarter, we modified our adjusted EBITDA, adjusted net income and adjusted earnings per share definition to include the add-back of gains and losses from foreign currency translation to provide better measurement of Company performance, as well as to be more consistent with our peer companies. A complete reconciliation of non-GAAP financial measures is included in our earnings release, which was furnished to the SEC on Form 8-K yesterday. We provided a quarterly reconciliation of these non-GAAP measures for 2010 and 2009 as well.

Non-GAAP measures are provided as additional information and should not be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

ISG reported total revenues of $31.6 million during the fourth quarter of 2010, a decrease of 8% from the fourth quarter of 2009. Excluding the impact of foreign exchange, revenues were down 7%. Fee revenues, revenues before client reimbursable expenses, totaled $29.4 million during the fourth quarter of 2010, a decrease of 8% year over year and down 7% before the impact of currency translations.

Revenues in the Americas were down 19% for the quarter. As we informed you on prior calls, the fourth quarter's performance was impacted by the early success we had on advising one of our major clients on a new $2 billion IT contract in the first half of the year. Revenues from EMEA were down 3%, excluding the impact of currency translation, and the decreases in the Americas and EMEA were partially offset by the strong fourth quarter in Asia-Pacific with revenues up 49% in the quarter, excluding the impact of currency translation.

ISG reported revenues totaling $132 million during full-year 2010, 1% lower than 2009 results and down 1% on a constant currency basis. Full-year 2010 fee revenues totaled $122.4 million, a decrease of 1% year over year on a reported and constant currency basis. Revenues in the Americas decreased 1%, and EMEA was down 10% in constant currency versus the prior year. These declines were partially offset by the 35% constant currency increase in Asia-Pacific revenues.

Our 20 largest clients accounted for 45% of revenue in 2010, about the same as 2009. The bright spot in the industry verticals were financial services, the energy healthcare and pharmaceuticals, and travel and transportation verticals were all up versus the prior year. By service line, governance services was up year over year.

During 2010 we added significant value to more than 300 unique clients across 11 industries of which more than a quarter were new clients. We have now served 70 of the top 100 companies on the Forbes Global 2000. Our penetration of key verticals is just as impressive. We have now advised eight of the world's top 10 food, drink and tobacco companies, eight of the top aerospace defense companies, and all of the top 10 drug and biotechnology companies.

Our research shows that our typical relationship with a client lasts four to five years. This is the result of continually providing clients with the objective advice and unparalleled insights when they need it. Over the last five years, over 75% of our annual revenue has come from existing clients, and over 75% of our engagements come to be repeat business or referrals. And 8% of our clients in 2010 were existing clients that brought us back after two or more years of inactivity.

ISG reported an operating loss of $2.5 million for the fourth quarter of 2010. This was impacted by the $2.3 million in acquisition-related costs associated with the two acquisitions that we closed in the first quarter of 2011. These costs were consistent with our expectations given the complexity of the Compass transaction, which incurred the bulk of the $2.3 million in nonrecurring costs.

This compares to the $1.6 million operating income reported in the fourth quarter of 2009 with the lower income being driven by lower revenue for the quarter.

ISG reported an operating loss of $51.7 million for the 12 months ended December 31, 2010, compared to $800,000 of operating income for the same period in 2009. Excluding the non-cash impairment charges and acquisition-related costs in 2010, operating income for 2010 of $3.3 million was $4.4 million below the same period of 2009.

Fourth-quarter 2010 adjusted EBITDA totaled $1 million compared with fourth-quarter 2009 adjusted EBITDA of $5 million. Excluding the $2.3 million of acquisition-related costs, adjusted EBITDA was $3.3 million.

The utilization for the quarter was approximately 65% versus 67% in the prior year.

Adjusted EBITDA for 2010 was $13.7 million. Excluding $2.4 million in acquisition-related costs, 2010 full-year adjusted EBITDA was $16.1 million. This was down $3.9 million from an adjusted EBITDA of $20 million in 2009. The utilization rate for the year was approximately 69%, up versus 66% in the prior year.

Diluted earnings per share for the fourth quarter of 2010, excluding acquisition-related costs, was $0.04, down $0.02 from the $0.06 diluted earnings per share for the fourth quarter of 2009. Diluted adjusted earnings per share for 2010 aggregated $0.18, excluding acquisition-related costs, compare with 2009 diluted adjusted earnings per share of $0.26 for the comparable 2009 period.

Including acquisition-related costs, diluted adjusted earnings per share for 2010 was $0.14.

ISG continues to maintain a strong liquidity position to support the implementations of our business plans. Cash, restricted cash and cash equivalents aggregated $46.1 million at December 31, 2010, an increase of $5.2 million from September 30, 2010, and $3.3 million greater than at December 31, 2009. The increase in cash balances from year-end 2009 was principally attributable by cash provided by operating activities, partially offset by $2 million in debt repayments.

Total outstanding debt at December 31, 2010, was $69.8 million compared with $71.8 million at December 31, 2009. We are targeting revenue of approximately $180 million in 2011 with margins in the 12% plus range. We estimate taking a restructuring charge of approximately $2 million in 2011, primarily associated with integrating the shared service functions and the acquisitions. Most of the costs will be reflected in the first quarter, and we will incur an additional $500,000 in acquisition-related costs in the first quarter.

As Mike mentioned earlier, ISG remains focused on investing for future profitable revenue growth and in transforming our cost base into a more flexible and leveraged model with higher utilization rates, enhanced price realization, and tight management of SG&A spending. We have proactively driven significantly higher cost efficiencies and productivity into the business while maintaining our liquidity levels. The continuing execution of our strategic business plan remains our number one priority.

Mike will now share concluding remarks before we go to Q&A.

Okay. Thanks very much. What I would like to do now is I would like to ask David Whitmore, our CEO of Compass and Vice Chairman of ISG, to take a moment to comment on the progress we have made in integrating Compass with ISG. David is leading our integration work in addition to leading the Compass brand, and we are glad to have you part of the team, David, so over to you.

Thanks, Mike, and good morning to everybody. The first thing I would like to say is the combination has been extremely well received across the ISG organization by all our personnel and very importantly by our clients. The deal has made sense to everybody that has understood it.

Back in January, we did two very important things, which ensured we got the combination off to the right start. Firstly, we invested in getting all our senior people together for a global meeting through the weekend following the announcement of the deal. This was tremendously successful in generating excitement and a feeling of immediate collaboration across the ISG businesses.

We also rapidly developed training for all our personnel, which we had been rolling out throughout the first quarter. This has enabled us to ensure Compass and TPI people quickly understand the new range of services we offer, and even more importantly they are able to explain them fully to our clients. We will also quickly be adding STA to that mix.

Now those activities have already started to pay dividends. We are now working together well at all levels. That is our leadership teams and wide collaboration across the business in all our geographies. We have generated great excitement with our people immediately seeing the new opportunities and wanting to be part of integrated client activity.

Mike mentioned some early joint client successes, including the National Grid in the UK, National Bank in Canada, and that has certainly helped improving the sense of the combination.

We also believe that it is only the start because in every country in which our businesses operate, we have already generated an impressive list of new joint opportunities, and we hope and expect that that pipeline will only grow further over the next few quarters.

So, in summary, I feel we have made a great start to the combination, which makes us optimistic of increasing joint success in all our markets.

Thanks, David. We enter, I think, 2011 a much stronger Company than 2010, having made further progress in shaping ISG into a leading technology, insights, market intelligence and advisory company.

As we reported to you previously, during the last few years, we continue to look at potential acquisition candidates. We remain selective in our search, seeking enhanced shareholder value over the long term. Compass and STA Consulting fit that criteria. These acquisitions provide us with proprietary data and new capabilities, have strong brands, and are well known by our teams.

Growth in ISG will come from growing and integrating our recently closed acquisitions with TPI. Growth will also come from the sourcing industry returning to growth in the second half of this year. The overall combination of our three key brands -- TPI, Compass and STA Consulting -- will increase our vertical and horizontal expansion and share of wallet within our blue-chip client base, and we continue to evaluate additional acquisition opportunities.

One of the strengths of ISG is our geographical reach, and we will continue to invest to expand in that area with the success evidenced by the 35% revenue growth in Asia Pacific in 2010. And growth will continue to come through new products such as governance services where we have nearly $10 million in recurring revenues entering 2011 and in cloud computing where we created a new division late last year. We look forward to an improved economic environment in the second half of 2011.

Thanks very much for calling in this morning, and now let me turn the session over to the operator for any questions that you may have.

(Operator Instructions). [Devin Krager], Deutsche Bank.

You mentioned that you're looking forward to an improved economic environment in the second half of 2011. And my question is, does the majority of your clients tell you that they are feeling a little bit better about the outlook, and if so, are there particular verticals or geographies that might have a little bit higher confidence in the outlook and, therefore, might be willing to move forward on sourcing deals?

Yes, thanks for the question. What our clients are saying to us is that they are gearing up, and let me just kind of backtrack a little bit in 2010 to enter why we are feeling that the second half can be stronger.

Toward the end of last year 2010, what our CIOs were saying is that they were beginning to get back on track for major transformation projects. Not incremental projects, but the major transformational projects to move away from the kind of short-term hits that a lot of clients worked through in 2009 and during the first half or so of 2010. So what we are seeing is that area we think is going to increase in terms of their spending.

And in terms of specific verticals, we see it in the financial services area. We think manufacturing is coming back in the areas of energy, healthcare and the public sector. Those are the areas that we believe we will begin to see an uptick in as we move toward the second half of this year.

What we are doing now is kind of gearing up, if you will, whereas our assessment levels are increasing. Those usually lead to much larger transformational projects, but they usually take a number of months to work their way through the system. So that is where our optimism comes from.

Okay. Sure. That makes sense. And then my second question is just, do you have any reaction to the EquaTerra acquisition and what impact that might have on the competitive dynamics for the industry if anything?

Sure. I think as we have stated to you before in the past, we have discussed with the principles of EquaTerra in very early 2010 whether to do a combination and we passed, and we passed because we felt that we had the number one market position in the business. We think we have that position by a factor of at least 2 to 1. And I think our view of this acquisition by KPMG is that more than anything else the acquisition is an affirmation, I think, of the vitality of the sector to come.

We rarely ever competed with KPMG, and when we competed with EquaTerra, we won nearly 75% of the time. We felt that our focus on building out a technology insights, analytics and advisory company would be better served if we expanded our capabilities and our toolbox, and we think that we were able to do that with smart choices in deploying our capital with Compass and STA Consulting. So that is how our view is of the EquaTerra situation.

(Operator Instructions). Robert Riggs, William Blair & Co.

I just wanted to dig into the integration efforts, specifically around the salesforce. How are you selling the combined offerings going forward? Are the Compass salespeople focusing on Compass? Is it combining everybody? And a follow-up on that is, how is everybody compensated? Is it similar comp structures or any changes to that going forward?

I'm going to have David answer that. David? (multiple speakers)

Thanks for the question. It is an area that we have obviously spent quite a lot of time talking about and acting upon. And the model that we are trying to develop is making sure that the right people are facing the right clients. And, therefore, obviously as you combine two organizations, you will see that we have a different level of relationship in certain countries from a TPI perspective and from a Compass perspective. And what we are trying to do is ensure that we leverage those relationships by -- when we recognize an opportunity for a joint project adding to, for example, a TPI sales process Compass people to support that sale and hopefully enhance in terms of the range of service that we can offer.

Now, in terms of the incentivization point that you made, that is something that is still evolving, and we will look to harmonize further over the coming year. But, at the moment, it is something that is still in the evolutionary stage.

David Parker, Lazard Capital Markets.

Just building off of that question on the integration, thank you for the additional color. But in terms of STA, when do you feel like the integration is going to be completed?

So we are on -- we have one of our senior partners working with the team at STA Consulting, that, again, being different than Compass. So STA Consulting is more about how we can take our current infrastructure and help STAT grow. On the Compass side, as you know, we were combining some infrastructure to take out some costs side.

But we are very active and fully engaged with the integration process with STA. We have already launched the whole proposal support group to help with the proposals to certain state governments. We have already started on the marketing side of things, and we're beginning the process on recruiting. So about 30 days into it, we, I think, have made some good strides on the integration and expect that to be done fully within the first 100 days of the combination. So we are making very good progress with STA Consulting as well.

Okay. And it sounds like you are going to keep the brands, that you feel like there is enough value there in keeping all three brands going forward.

Yes, I think right now our view is that if you take each of them, that STA's brand in the state and local government is very strong. It represents independence and significant strength, especially in ERP and project management, and we don't clearly want to lose that equity and the value we have there.

And then, on the Compass side, clearly the Compass brand is very well-known. It has been around for 30 years, and it is a brand that clients, especially CIOs and CFOs, know very well, and our sense is that that is a brand that we want to continue to build as equity.

So, at this stage, we are always continuing to evolve those, but, at this stage, we have three kind of go-to-market brands. Not three infrastructures or three sets of cost structures, but three real go-to-market brands that we are going to operate under.

Okay. And then we were anticipating about $35 million in revenue from Compass. It sounds like you have had some great early success with joint clients, just with the Compass and TPI products. But that incremental $1 million that you talked about, is that incremental to that revenue base, or is that included in what we were expecting for 2011?

I don't think we want to -- since it is too early, I would like to thank it is incremental, but I think we would like to see another quarter or two pass before we would put a definitive stake in the ground on that one, David.

Okay, fair enough. And then, you've made some important changes. You've added some services lines, some geographic diversification. You've talked about that there are still some acquisitions in the pipeline. What other services lines are you looking to add or other geographies that you feel that are missing right now?

Well, in terms of capabilities, our sense is that anything more that we can add from a data, analytics, or recurring revenue stream that fills in the channels that we operate in, the C-suite, it can be an expensive. We are looking at it and talking with companies. Where there are specific expertise in certain of the industry verticals that we are targeting for growth like energy and health care as an example, if we feel like there are some strengths in those areas, we would also pursue that path. So those are a couple of the areas that we are continuing to look at, David.

Great. And then my final question is -- thank you for some of the full-year color in terms of guidance. You have about three weeks remaining in this quarter, so a lot of it is behind you. I mean any type of -- and you've already mentioned that the first half is going to be down just based off of prior year performance and that large customer that you had last year, but any sense of how this quarter is tracking or how we should be modeling that for 1Q? Thanks.

Thanks, David. The first quarter will be down versus the prior year because of that comp. We did point out that General Motors was -- one client was stronger in the first half than the second half. So we have a difficult comp. I mean if you pull that one out, we actually saw some growth. But the first quarter was strong. And I think we pointed out previously that Compass is cyclical, so the first quarter is their weakest quarter and the fourth quarter is the strongest. And the restructuring actions will take -- you'll start seeing the impact of that in the second half of the year. So we will be down in the first quarter.

Again, that 12%-plus margin we feel comfortable at this point, but it's going to grow each quarter over 2011.

Great. Thank you, guys.

(Operator Instructions). Devin Krager.

Just to get one more question in. On the cloud computing with the new division, can you maybe just elaborate on what you see as the long-term potential there and maybe what ISG's niche is going to be within that broader opportunity?

Thanks, Devin. What we are finding, what we started to see last year was the first staff, which was a lot of education process around the CIOs in terms of how is cloud, how should they think about it in terms of their overall IT strategy as they think about their sourcing strategy or their optimization strategies, how do they factor cloud computing into that.

What we are now beginning to see as we move into 2011 is that we are now beginning to see clients that want to act on that. So we have a very significant client in the Northeast, a manufacturing client, that brought us in. We're on the ground today, expect to be there for a number of months, working with them on their overall IT strategy and assessment of the situation, which includes the whole area of cloud computing, what they can do, what they can move into the cloud from a private cloud, if you will, standpoint.

So what we see is our role as really being at the front end of our workaround strategy assessment that the cloud computing will be now an element of that, not just a conversation piece, but will actually be factored into the overall strategic roadmap that the CIOs are looking at.

So it's just evolving with a lot of the large companies. The mid-market companies tend to act a little quicker, but they tend to do basic stuff around the clouds. But the more complex work, I think, is beginning now with some of our largest clients. So we see that evolving in 2011 and 2012 from that perspective, Devin.

That is helpful. Thank you.

And gentlemen, with that, we'll conclude today's question and answer session. I'll turn the conference back to you for any additional or closing remarks.

Thanks very much, Laura. Let me just close by thanking all of our ISG's nearly 700 professionals worldwide for their continued passion and dedication with our client base. It is really through their efforts that we think we are poised to build on our market leadership in the months and the quarters ahead.

And I would like to thank each of you for your continued support and confidence as we build out an information-based leading company for all of you.

So, with that, have a great afternoon and a terrific weekend. Thanks very much.

That would conclude today's conference. Thank you, everyone, for joining us today.