Grupo Televisa SAB (TV) 2004 Q4 法說會逐字稿

Good morning everyone and welcome to Grupo Televisa's fourth quarter and full year 2004 teleconference. Before we begin I would like to draw your attention to page 8 of the press release which explains the use of forward looking statements. It applies to everything discussed in this conference call as well as to the earnings release.

Now, I will turn the call over to Mr. Alfonso de Angoitia, Executive Vice President of Grupo Televisa. Please go ahead sir.

Thank you, Elsa. Good morning, we're pleased to have you with us for this discussion of Grupo Televisa's fourth quarter and full year 2004 results. With me today are Jose Baston, Corporate Vice President of Television and Salvi Folch, our Chief Financial Officer.

First, I'll take you through the highlights of our financial results for the quarter and the year and we'll review the outlook for 2005. Then Pepe will proceed to talk about the operating results of our Television segments. After that we'll be glad to take your questions.

Before going over our results I would like to briefly explain the accounting change we made in our Publishing Distribution business. Before this change we have been accounting for the sales generated by the Magazines we distribute and for the cost associated to those magazines separately. However, we recently managed to make some changes to our contracts with publishers that will allow us starting in the fourth quarter to only record a sales to marginal contribution generated by the Magazines we distribute.

We believe this helps to better reflect the size and nature of this business and eliminate the large fluctuations we used to experience in sales and costs. With this change you will see a reduction in both sales and costs of our Publishing Distribution business. However, operating income before depreciation and amortization will not be affected.

Moving on to our results, Televisa delivered outstanding results in 2004 far exceeding our expectations as well as the market consensus for the year. Consolidated net sales increased 18.3% to 29.3b pesos and operating income before depreciation and amortization increased 33.5% reaching MXN10.6b and a 36.3% margin. On a pro forma basis including Sky Mexico and reflecting that accounting change to which I referred to, consolidated sales increased 8.6% and operating income before depreciation and amortization increased 19.7%.

This growth was driven primarily by our Television Broadcasting business where our strong ratings and high quality coverage of special events encourage our customers to increase advertising spending during the year. In fact, without considering 2003's political advertising, sales increased over 10% during 2004 allowing our Television Broadcasting top line to grow 5.7% to MXN17.1b.

As promised and despite the cost associated with the Olympic Games which amounted to MXN177m, we managed to keeps costs and expenses flat in real terms. In fact, costs and expenses have remained almost flat for the past 4 years. The growth in sales coupled with cost discipline allowed us -- our operating income before depreciation and amortization to increase 12.8% to MXN7.7b reaching a record margin for Television Broadcasting of 45.4%.

Our Pay Television network business also delivered strong results. Sales increased 8.8% to MXN800m and operating income before depreciation and amortization expanded 84% to MXN298m reflecting the increased penetration of our channels in Pay Television systems in Mexico and Latin America.

The results of 2TV our 50/50 joint venture with Univision are not fully reflected in these figures since we don't consolidate this venture. However, it's important to highlight that 2TV reported sales of over $5m in 2004 and is already free cash flow positive.

Our Programming Export business also had good results despite the unexpected and very disappointing slow down in Univision royalties during the second half of the year. Sales increased 11.8% to MXN1.9b including the royalty from Univision which amounted to $105m and by higher exports to Latin America. Operating income before depreciation and amortization increased 39.7% to MXN731m, which translated into an 800 basis point margin expansion compared to last year from 30% to 38%.

I'm also pleased to report that the strategies we implemented to turn around our Publishing business are generating positive results. Over the past 2 years sales of our Publishing business have increased at a compounded annual rate of 7% and operating income before depreciation and amortization has expanded on a compounded annual rate of 17%.

In 2004 sales increased 11.3% to MXN2b and operating income before depreciation and amortization experienced double-digit growth reaching MXN424m and a margin that exceeds 20%.

Our Radio division continues to improve. Sales and operating income before depreciation and amortization increased 12.8% and 33.8% respectively during the year driven by sales associated to the transmission of the Olympic Games and by growth in advertising sold during our newscasts. It is also worth noting that in 2004 we affiliated 41 new radio stations expanding our network to 71 stations covering 33 cities. This made our Radio business a much more attractive alternative for national advertisers and provides a better outlook for the future of this business segment.

Shifting to our Pay Television business, Sky Mexico continues to grow at a very fast pace. In 2004 Sky Mexico subscriber base increased 17% reaching 1m gross active subscribers at the year end. As a result sales increased 18.7% to MXN4.7b and operating income before depreciation and amortization increased 38.8% to MXN1.7b reaching a 36.5% margin.

On top of these excellent results the Company recently refinanced $88m in its bond maturing in 2007 with a 7 year peso denominated bank loan further reducing the Company's annual interest expense and foreign exchange risk. In addition, last year we switched 35,000 Direct T.V. subscribers to Sky and we expect to complete this process in 2005.

Shifting now to Cable Vision, Cable Vision had a bad year. We lost 9,000 subscribers compared to 2003 closing the year with 355,000 active subscribers. However, on a positive note we added 14,000 subscribers during the fourth quarter and we have now completed the first of the 3 years of the digitalization process. We're confident that the digitalization will allow us to expand our subscriber base and to offer value added services.

During 2004 Cable Vision added 18,000 broadband customers reaching over 26,000 broadband users by year end. The Company sales increased 8.7% to MXN1.1b driven primarily by the elimination of the Excise Tax on Telecommunication Services as well as higher broadband subscription fees and advertising sales. In addition, operating income before depreciation and amortization increased 12.5% to MXN356m. We are committed to improve our operations and financial results of the Cable business and we continue to believe that this is a great asset, which in the future will generate more value to our shareholders.

I would also like to deliver very good news regarding our Internet business. In the third quarter we launched our Short Messaging Service, SMS, and it has had great results. Our content and our media assets have proven to be a key factor and we have become a dominant player in this new emerging industry. SMS generated over MXN75m in sales in less than 6 months of operation allowing our Internet business to make, for the first time in its history, a positive contribution to our operating income before depreciation and amortization.

Net income for Grupo Televisa increased 14% to MXN4.3b. In 2004 we generated over MXN6b of free cash flow after maintenance CapEx. We returned to our shareholders over MXN4.2b in cash through dividends and stock repurchases while maintaining a very strong balance sheet. S&P recently acknowledged our solid financial profile and business outlook by upgrading Televisa's long term foreign currency rating to Triple B.

Moving on to the outlook for 2005, we expect our Television Broadcasting revenue to increase 4 to 4.5% in 2005 and we will continue to maintain costs and expenses basically flat. Therefore, we expect our Television Broadcasting operating income before depreciation and amortization margin to reach 47%. However, it is important to mention that we will face a tough comparison in the first quarter given the presence of Holy Week during this quarter and that February has 1 day less than last year. Therefore we are expecting first quarter sales to be flat compared to last year.

In 2005 our CapEx will amount to $210m including a $110m for Sky Mexico, $35m for Cable Vision and $65m for property, plant and equipment.

Finally, in terms of use of cash I am very glad to inform that yesterday our Board of Directors agreed to submit to the Shareholders Meeting a proposal to pay an extraordinary dividend of 1 peso per CPO in addition to our ordinary dividend of 35 cents of peso per CPO for a total of 1.35 peso per CPO. The total amount of the dividend is approximately MXN4.25b and if approved by the Shareholders Meetings would be paid during the second quarter of this year. This represents a 10% increase over last year's dividend and is equivalent to a dividend yield of about 4% based on yesterday's closing price.

Now, I would like to turn the call over to Pepe.

Thank you Alfonso and good morning to everyone. Our track record of the past few years is a reflection of our commitment to produce high quality content while maintaining a strict control over cost and expenses. In the past 3 years our strong ratings and successful sales strategies have allowed our T.V. sales to out pace the Mexican economy growing at a compounded annual rate of 5.2%. On top of that, over the past 3 years our operating income before depreciation and amortization has expanded twice as fast at a compounded annual rate of 11.7%.

In 2004 we continue with this trend delivering double-digit growth and taking our operating income before depreciation and amortization margin above 45%. This is an outstanding margin and a significant improvement when compared to the 33% margin we reported in 1997. This track record is above all a result of our ability to produce content that appeals to the wide variety of audiences that our customers are trying to reach.

For this reason I am very pleased to report that in 2004 we captured 71.3% of the sign on to sign off audience share and we are 91 of the top 100 programs in the country including the top 20. We continue to deliver in every genre including news, comedy, reality shows, game shows, movies and children's programming.

In addition, our Novelas continues to dominate prime time. For example, our La Ninadela Mochi achieved an audience share of 38.6% and our AP Novela Ruby achieve an average audience share of 36.5%. And we continue to captivate the younger audiences with our incredibly popular Novela Riveldi which is growing in popularity and therefore we continue to be on the air for the rest of the year.

In addition, we prove again to be the best alternative in sports. Our coverage of the Mexican soccer championships games played in June and December were among the highest rate and most profitable programs in the year. In addition, our coverage of the Cup America, El Locopa and our transmission of the Olympic Games in the third quarter were the most popular in the country.

These results reflect once again our strategy of maintaining the optimal balance between revenues, ratings and costs. Looking ahead our 2004 up front deposits increased 4.3% in real terms to MXN13.6b, which puts us on track to achieve our goals for the year.

Shifting now to our Programming Export business, our Programming has never been more popular among the U.S. Hispanic community.

The ambitious primetime Novela block which is produced entirely by Televisa saw an increase of 37% in the Hispanic adult 18 to 34 audience over the course of the fourth quarter. Amoreal runs as the most watched Novela of all times among U.S. Hispanic audiences with an average of nearly 5m Hispanic viewers every night. And Ruby continue to charm audiences increasing its adult 18 to 34 demo viewership by 47% over the course of the quarter. In addition, our game show [CeMexicano Vecheron] continued to boost ratings in Telefotura] In exchange for our content in 2004 we received $105m in royalties from Univision.

Our Pay Television Networks reached more than 10m Paid T.V. subscribers throughout Mexico, Latin America and Europe. In addition, our Pay T.V. channel reach over 1m Hispanic Paid T.V. subscribers in the United States through Ecostar and Cox.

As Alfonso mentioned, TotalPay reported sales of over $5m in 2004 and it's already free flow cash positive and has a great growth perspective ahead.

We will now be glad to take your questions.

Thank you. [OPERATOR INSTRUCTIONS]. Our first question is coming from Vera Rossi from Morgan Stanley. Please go ahead.

Good morning. My question is on local sales, how much do you expect for '05 and '06 in terms of a percentage of revenues or in absolute terms in pesos?

And the second question is on the -- it's sporst betting and bingos. When should -- when we should start to see revenues from this new business segment? Thank you.

To your second question that has to do there with sports betting and bingos. I think, as you know, the Mexican Government issued new regulations. However, Mexican Congress went to the Supreme Court and said that those regulations were unconstitutional so they're -- 1 power this is Congress going against the Executive branch of power to ask for the Supreme Court to render those new regulations unconstitutional. So, it will all depend on what happens there. It will take, I think, some months to -- for us to see whether those regulations will be deemed valid by the Supreme Court or not. So, it's very difficult to say at this moment.

To your first question, we see in 2005 a similar percentage as 2004 which is around 14%. We have to take in event that in 2000 it used to be 9.6% of our total sales. So, we see that's improved. Growth is going to come nationally and we also see growth locally but we see it around 14%.

In '05?

In '05 yes.

And do you have any estimate for '06 as well?

Well, I think that because -- we're going to see -- we're going to keep seeing growth in local sales but it will not be something material in percentage basically because we're also going to see growth in the national sales.

Yes. Yes, this is correct. Okay. Thank you.

Thank you. Our next question is coming from Whitney Johnson from Merrill Lynch. Please go ahead.

Yes, a couple of questions. First of all with regard to Sky, can you give us some idea of how large you think the addressable market is? So we can get an idea of the upside going forward. And also, just a little bit more granular around the CapEx for Sky Mexico.

And then second, has -- second set of questions has to do with your free cash flow. You are generating quite a bit. We know that longer term you do have aspirations to be a pan regional media company or pan Hispanic media company. Do you have any intentions to buy more Univision stock in either '05 or '06? Thank you.

Yes, your first question, Whitney, I think the total PayTV market in Mexico is about 4m subscribers. So Sky, of course, would like to capture all those subscribers. So, the main -- the market is 4m people and growing every year.

The more normalized CapEx for Sky not considering the migration of the DirecTV subscribers would be around $60m.

6 zero, you said?

6 zero, yes.

Okay.

Of course, this year we'll have the migration and that requires CapEx.

In terms of buying additional shares of Univision. We're definitely not interested in buying more shares at this time. We believe that Televisa shares are a much better investment. Just take a look at our numbers and the multiple disparity and I think it's clear for me that it's a better investment to buy back stock of Televisa than to buy shares of Univision.

Does that mean then you're planning on increasing your buy back program this year of your own stock?

As we have said always we are opportunistic about purchase of shares. We have been buying shares this year. So, in addition to the payment of the dividend we announced yesterday we will continue opportunistically to buy stock.

Okay. And just 1 final question in terms of your CapEx then should we consider in going forward a steady CapEx for the Company as a whole around $200m, or do you see that coming down or going up at some point?

No, it should be -- considering that Sky is $60m, it should be around $170m.

Okay. Alright, thank you very much.

Okay.

Thank you. Our next question is coming from Jean-Charles from J P Morgan. Please go ahead.

Yes, good morning. First on Univision there were quite a few press reports recently about some conflict over the nomination of the new CEO. Could you comment on the status of your relationship with Univision?

And then the second point is going forward how do you see your new pricing plan being adopted by your clients? And I know it's a little bit early in the process but how do you plan to going along with price increases for next year given the expected increasing demand coming from the politics?

Hello Jean-Charles. I think as to Univision what happened and what's reported by the press in some articles it was not reported properly. For example, the Miami Herald reported that I personally own 9% of Univision and I'm sorry to tell you that I don't own a single share. I would love to own 9% but I don't a single share.

So, there have been many reports and most of those reports have not said the truth about the whole situation. All we want in connection with Univision, which is a great company, is that it improves its corporate governance. And when it was introduced to the Board of Directors that Mr. [Perancho] designate a new President and Chief Operating Officer, all we wanted was to suggest a process and to suggest a process where we could have an outside and in-house candidate, because we wanted to make sure that we had both the best person for the job. It's a very important company. It has grown a lot.

And to be the President and CEO of that company is a very important position especially important for the growth of the company. So, all we mentioned was that we wanted to establish a process, a more institutional process and not only to look at 1 candidate but to be able to look at many others. And to be sure where the benefit of all the shareholders of Univision that we were selecting the best guy for the job.

So, we believe and we hope that Univision will improve its corporate governance in the future and we'll continue to have discussions both at the Board level and with management of that company. There's also a discussion in terms of succession. I think an institution of the size of Univision should have a succession plan, which it doesn't. And I think it's not responsible for us at the Board and for a company not to have a succession plan. So, all these have to do with improving corporate governance.

Okay. And there were reports about maybe Televisa having ordered -- ceasing some corporation efforts and co-productions maybe with Univision. So, is that incorrect?

Well, there's a lot of gossip because people love to talk about the stars and what -- the Televisa's going to comply with all its agreements with Univision.

Okay.

And it's going to stay at that.

Okay.

Going to your sales strategy question. As you know last year we offer our long term customers the option of choosing between our traditional fixed price per time slot system or CPM pricing system. These were designed to be equal under both pricing plans assuming that we were going to deliver the same ratings we have generated over the past 18 months.

Most of our customers decided to buy advertising under our traditional pricing system, which can only mean that our customers are very confident of our ability to continue delivering strong ratings. In addition to this, we're presenting -- we're presenting our rates on a CPN basis allowing our customers to make a [mix] comparison between our rates and also there of other media alternatives in the country, which clearly worked in our favor during the up front negotiations.

On the rate -- and the rate growth for 2005, we're going to see another -- it's between 8 to 10% rate growth and we expect to continue increasing prices to the extent that we can consider that they could be possible for 2006.

Okay. Thank you very much.

Thank you. Our next question is coming from Rene Pimentel of Deutsche IXE. Please go ahead.

Thank you. Good morning gentlemen, a couple of questions. First of all, how sustainable do you think the margins or programming for PayTV and Programming Licensing are? And is there a positive effect this quarter because of the reduction in doubtful accounts?

Yes, I think as to PayTV you see -- you saw a dramatic increase in terms of EBITDA. I don't think you'll see -- this year it will be excellent for them because as you report as a result of the negotiation we did with DirecTV they're going to have access to all the subscribers in Latin America. So, this is going to be a pretty good year for that segment.

Okay, a second question it was some news this morning that it was voted in the Lower House of Congress that [anomolade] and all these type of companies selling miracle products will not be able to sell them again and advertise on television. How much does this industry represent in terms of revenues for you and will it have an impact on your guidance for next year?

You know I don't -- I have not in that news Rene and -- however, they're not very important clients. Most of them buy parts of our unsold inventory. So, it's nothing material.

Okay. And 1 last question Alfonso. Could you please give us an update on the discussions being held today in the Sub Commission of the Senate regarding the proposal for this new television and radio law?

Which law?

The proposal for the new television and radio law.

Yes, I was saying which law because they have not agreed on the basic scheme of the law and the basic model for the law. Some of the Senators and Members of the House of Representatives have talked about having a television and radio law. And some others are talking about an amendment to the current law. And others are talking about an amendment to the Telecommunications Law to add television and radio.

So, at this point it's very difficult to talk about a law because they have not concluded what they want to do. They have been working for, I think, quite a long time. And they're still discussing what type of format or what type of model they want to follow. And what type of authority they want regulating radio and television.

So, a long time has passed and nothing has happened. So, we are following this in detail. But as far as we know there's not even a preliminary draft of a law because they have not concluded on the model they want to follow.

Okay, so they had reached an agreement that by the end of the month they would have something in writing. You don't think that they'll have something by the end of this month then?

Well, let's see because they have been saying that for the past years.

Okay, thank you very much.

Thank you. Our next question is coming Andrew Campbell from CSFB. Please go ahead.

Yes, Alfonso. I was wondering if you had completed the wage negotiations for this year, which I think normally take place about this time?

Yes, we have. We have. I think we were very successful in those negotiations. And the total salary increase for Unionized personnel was 4.7%.

Okay, so that's -- are they considered within your guidance for operating costs for this year?

That is correct. With this 4.7% we plan to maintain cost and expenses flattish.

Okay, perfect. And do you have any more visibility on the timings for when you'll have the cash outflow associated with the Liberty Media stake in Sky Mexico? And when you had recognized the gain on the exit from Sky multi-country?

It depends on the migration process. I think we're having an orderly process which has been very successful, as I reported. In the last quarter of '04 we migrated 35,000 subscribers and we believe that it's been a success. However, it might take a little longer than we expected. So, at this point we cannot say when we're going to buy the Liberty Media stock or when this process is going to finish. So, we'll continue reporting in the following quarters.

Okay, thanks so much.

Thank you.

Thank you. Our next question is coming from Patrick Grenham from Citigroup Smith Barney. Please go ahead.

Yes, hello. Could you give us a little bit more detail on the CPM? What clients actually moved to CPM? You mentioned that the signs are that the existing customers are very happy with the old model, but still a percentage of those customers went to the CPM. Do you have any idea as to why they did it? And who were they? What type of customers were they?

I have a second question under legal. A follow-up on the legal questions, could you just give us an idea are you happy with the current legal framework you have in Mexico? Do you think it needs to change over the next 2 years? And if it does, it seems to me the Mexican market is very unprepared for any sort of a digital environment and how can that change unless the laws change? And is that something you're in favor of?

Well, the -- often clients that sign up with us, about 15% of those went to the CPN. Out of this 15% came from different industries, so it was -- it is not like 1 industry decided to go to the CPN and not another 1. We think that did, like I said in the question a little bit ago, I think that the clients feel very, very confident to -- well actually they feel that we are going to deliver the ratings that we have been delivering in the years before. And they were not very happy with the targets that we were offering probably.

We think that the offer was very wide. What we have heard from them is that they didn't feel comfortable to close on a CPN basis and that the deals that we close with them on the regular sale, if you want to call it that way, made them feel better. And probably what we think is going to happen is that in the next year the CPN clients are going to grow, but that this will be a learning process year.

So --

But why do they want to choose CPN? What is the advantage they gave you for going to CPN?

Why there's a disadvantage?

Well, they -- I don't see any disadvantage. Actually I see a big advantage, that's why we offer this because, as you know, you're going to be charging based on the rivals that are going to be watching your shows. What we have heard from the clients is that they wanted to go this way this year and to be seeing how the year goes to decide on a more solid basis the plan for 2006.

I think that the only reason why they didn't close the deal on CPN is because they didn't feel 100% sure that they were making the right decision because it's a big change as you know for the sale that Televisa has always offered. So, I think that the client that did not go ahead, the ones that were not part of those 15% are going to be checking this year through their media buyers what is the -- what is going to be happening in the year. So, they are going to feel more solid when they make the decision for next year. I cannot tell you if they thought that the CPN was good or bad. I just think that they didn't go for it because they were not 100% sure that they were making the right decision.

We have a lot of meetings. We sat down with all of our marketing and media buyer team and we tried to let them know that what we were offering in our plans were basically all the different demographics that are available in any market. So, we don't know. We just think that it's going to be a process and this process will grow to in 2005 to go up 2006.

When you offer the CPN does 1 customer, like for instance Proctor & Gamble or Coca Cola, do they have to either go 100% towards the old system or 100% toward CPN?

No, they could decide in advance. They could go in like the company that do your summation, as you know, they have different kind of products and they could decide on a per product basis.

And have you found that customers did a little bit of 1 and a bit of the other? Or was it just customers who went 100% towards the CPN.

Yes. No, there were some that went on a -- but they didn't have a -- accept clients. I cannot answer you all of the details on that right now. But I can tell you that some of them went with some products.

Okay.

As to your question that has to do with new law, I think, in Mexico we have a great radio and television industry. It's 1 of the few industries where you see growth. We produce, I think, great content and that content is very popular in many countries of the world. It's a profitable industry.

So, I think it's not Televisa's position but a unified position of the Radio and the Television industry in Mexico. We believe as part of that industry, as part of the segment that the law has to suffer some changes because it's a new -- it's an old law, I'm sorry. And there have been many technological changes. However, we have to make sure that any new legislation strengthens the industry. And it's a unified position as I was saying, the whole Television and Radio industry in Mexico.

Because 1 of the issues is, I believe, it's 2021 is when you need to be fully digitalized on the transmission. I imagine that would have to be brought forward do you think, or?

No, if you compare it to the United States where they have postponed that date several times, I think -- I don't think that date should be postponed.

Not postponed at all for digital?

Yes, brought forward.

You still think it should be that far away?

Yes, because of the investments and also because of the equipment that the Mexican population have to buy.

Right.

So, you have to consider the -- of course, how much a Mexican family would be willing to spend in buying the new television set and equipment.

Right. Do you think that should be digital before that even though the law says 2021?

I think it will but I don't think we should bring that date forward.

Okay. Alright. Thank you. And also the changes, you say it needs changes but in what area do you think it needs changes?

In technological. I mean things that have changed technologically wise.

So, Cable T.V.?

And convergence.

So, it's really the Cable T.V. laws?

Yes. However, it has to -- all this has to do with strengthening the industry and it depends on the model they want to follow if it's amending the Telecommunications Act in order to include radio and television, or changing the current law or issuing a new television and radio law.

So, it all depends. They haven't concluded on which model they want to follow.

Right. Okay, thanks a lot.

Thank you. Our next question is coming from Jose Jimenez of Imbursa. Please go ahead.

Good morning everyone. I have 2 questions for you. Are you considering some advertising political pre-campaign census in your 2005 results guidance?

And the second question is that you just have announced the full coverage for the next soccer World Cup in '06. Could you tell us something about the costs or the conditions of the agreement of this?

Yes, we are expecting political revenues for the guidance of 2005.

How much?

I just have to tell you number but we see a good revenue from the political campaigns this year.

Okay.

And to the World Cup the rights are going to cost us $16m.

$16m?

$16m, 1 6.

Okay. Thanks. And you just have announced too that may be some of the gains it will be on the Sky format or not?

Yes, 30 games will be played on -- over their television and 34 games will be sold to Sky for Sky to transmit on an exclusive basis.

Okay. Perfect. Thank you, Alfonso.

Thank you. [OPERATOR INSTRUCTIONS]. Thank you our next question is a follow up coming from Rene Pimentel of Deutsche IXE. Please go ahead.

Hello, Alfonso, just 1 last question in terms of free cash flow guidance for 2005, is it still 6.5b pesos?

Our guidance is that the free cash flow will be in excess of 6b pesos.

6b, okay. Thank you.

Thanks.

Thank you. There appears to be no further questions at this time. I'll turn the floor over to you for any further closing remarks.

Well, thank you very much and we'll see you next quarter.

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time and have a wonderful day.