Red Rock Resorts - Earnings Call - Q3 2021

Transcript

Speaker 0

Good afternoon, and welcome to Red Rock Resorts third quarter twenty twenty one conference call. All participants will be in a listen only mode. Please note that this conference call is being recorded. I would now like to turn the conference over to Stephen Cudi, Executive Vice President, Chief Financial Officer and Treasurer of Red Rock Resorts. Please go ahead.

Speaker 1

Thank you, operator, and good afternoon, everyone. Thanks for joining us on today's Red Rock Resorts third quarter twenty twenty one earnings conference call. Joining me on the call today are Frank and Lorenzo Pertita as well as our executive management team. I'd like to remind everyone that our call today will include forward looking statements under the Safe Harbor provisions of The United States Federal Securities Laws. Developments and results may differ from those projected.

During the call, we will also discuss non GAAP financial measures. For definitions and complete reconciliation of these figures to GAAP, please refer to the financial tables in our earnings press release, Form eight ks and investor deck, which we filed this afternoon prior to the call. Also, please note that this call is being recorded. Now let's take a look at our third quarter results. On a consolidated basis, our third quarter net revenue was $414,800,000 up 17.4% from $353,200,000 in the prior year's third quarter.

Our adjusted EBITDA was $184,500,000 up 14.7% from $160,900,000 in the prior year's third quarter. Our adjusted EBITDA margin was 34.5% for the quarter, a decrease of 107 basis points from the 2020. With respect to our Las Vegas operations, excluding the impact from our foreclosed properties, our third quarter net revenue was $407,400,000 up 28.9% from $316,000,000 from the prior year third quarter. Our adjusted EBITDA was $200,500,000 up 37.2% from $146,100,000 in the prior year third quarter. Our adjusted EBITDA margin was 49.2%, an increase of two ninety six basis points from the 2020.

On a same store basis, we achieved the highest third quarter net revenue, adjusted EBITDA and adjusted EBITDA margin in the history of our company. During the quarter, we continued to prioritize free cash flow, converting 70% of our adjusted EBITDA to operating free cash flow, generating $126,300,000 or $1.1 per share. This brings operating free cash flow generated by the company for the 2021 to approximately $365,000,000 or $3.18 per share with virtually every dollar being returned to our stakeholders. Taking a look behind the numbers, the third quarter saw impressive growth versus the prior third quarter with increased visitation, time on device and spend per visit experienced across our database, which allowed the company to deliver record gaming revenue in the quarter. The reimplementation of the masking data across the state of Nevada on July 30 as well as return to customary third quarter seasonality did have a modest impact on our visitation and time and device metrics in the latter half of the quarter, but we expect those trends to reverse as COVID-nineteen restrictions are eventually lifted.

Turning to the non gaming segment, we saw considerable strength in food and beverage and hotel as both segments built upon their strong second quarter performance to deliver their best third quarter results in the history of the company. As well as the group sales and catering business segments, the lead species lines have been slower to recover post pandemic, you're seeing our lead pipeline grow into the back half of 2022 and into 2023. Finally, as mentioned on prior earnings calls, our financial expense carrying approximately $2,400,000 of COVID-nineteen mitigation costs for the quarter and approximately $2,600,000 in carry costs associated with our closed properties for the quarter. On the expense side, we continue to expect to achieve approximately $200,000,000 per annum of cost savings in terms of our pre pandemic cost structure. We also continue to benefit from the actions we took to streamline our business, optimize our marketing initiatives and renegotiate a number of vendor and third party agreements.

These initiatives, along with maintaining a disciplined operational focus, have enabled the company to achieve and sustain higher profitability and drive more free cash flow. On technology front, we are making substantial progress on several initiatives. With regard to cashless payment, we have entered into a field trial with IGT at our Red Rock and Green Valley branch properties. The initial focus is introducing cashless payments on the soft floor with the eventual goal to allow our customers to play and pay from one mobile digital wallet across all of our amenities at each of our Las Vegas properties. There will be more to come as we proceed with our field trial in this exciting product.

Also in October, we entered into a partnership with GAM Limited to build and deploy the next generation infrastructure stationed in STM Sports online sports platform, mobile applications and retail over the counter and kiosk based sports betting throughout Nevada. While the product launch is subject to regulatory approval, we are excited about the partnership and building upon our leading race and sports franchise. Now let's cover a few balance sheet and capital items. The company's cash and cash equivalents at the end of the third quarter were $89,900,000 and the total principal amount of debt outstanding at quarter end was $2,680,000 In the third quarter, we paid down $37,500,000 in debt, bringing total debt reduction for the 2021 to approximately $265,000,000 Additionally, the company used $85,500,000 during the third quarter to purchase approximately 2,100,000.0 Class A shares at an average price of $41.44 per share under its previously disclosed $150,000,000 share repurchase program, taking total shares repurchased for the 2021 to over 3,200,000.0 Class A shares at an average price of $39.8 thus reducing our share count to approximately 114,700,000.0 Class A and Class B shares combined. Within the quarter, our Board authorized an increase of $150,000,000 to our existing share repurchase program, giving us over $173,000,000 of availability for future share repurchases.

When combined with our debt repayment, we returned $123,000,000 and $391,100,000 to our stakeholders during the third quarter and through the 2021, respectively. As mentioned on our prior call, we are well on our way to having one of the most solid balance sheets in the industry, which gives us the ability to focus on longer term growth opportunities, including the development of six owned strategically located gaming and title properties and the ability to consider additional ways of returning capital to our stakeholders as we move forward. Since the close of the third quarter, the company's consolidated subsidiary Station Casinos issued a notice of redemption, the remaining $280,300,000 5% senior notes due 02/1985. The company used cash on hand and borrowings under its revolving credit facility to pay the redemption premium, accrued and unpaid interest and any fees or expenses related to the redemption. The transaction closed on October 29 and is expected to save the company approximately $14,000,000 per annum to the life of the senior notes, while further deleveraging the balance sheet, increasing our financial flexibility.

Capital spend for the third quarter was $14,700,000 As mentioned in our previous earnings call, we anticipate our 2021 maintenance capital spend to be between $65,000,000 and 75,000,000 Also during the third quarter, we made a tax distribution of approximately $51,100,000 to the LLC unitholders of Station Hopewell, which included distribution of approximately $33,500,000 to Red Rock Resorts. I'll provide a short update on the development pipeline. Starting with our Durango development, we are extremely excited about this project, which is situated on a 71 acre parcel ideally located off the 215 Expressway and Durango Drive in the Southwest Las Vegas Valley. The project is located in one of the fastest growing areas of Las Vegas Valley with a very favorable demographic profile. The project site provides favorable ingress egress off of 215 Expressway, which handles over 160,000 vehicles per day has moved a five mile radius to approximately 350,000 people.

Further, there are no unrestricted savings or credits within the five mile radius of the project site. We are working through the planning and planning phases of this project with a goal and expectation to have a shovel in the ground in the 2022. Once the project is started, we anticipate construction will take approximately eighteen to twenty four months. Once complete, the project will be approximately 533,000 square feet to include over 73,000 square feet of casino space with over 2,000 slots and 46 table games, over 200 hotel rooms and suite product, over 21,000 square feet of convention, meeting and catering space, four full service food and beverage outlets, a state of the art sports book and a resort style pool. While we are still refining the tenant budget, we expect to spend approximately $750,000,000 which includes all design costs, construction hard and soft costs, pre opening expenses and any financing costs associated with the project.

We expect to contribute a guaranteed maximum price contract for approximately 70% of the total project costs. The company expects the return profile of this project to be consistent with gas greenfield projects in our portfolio, while the funding of this project is expected to come from a combination of cash flow from operations and the sale of a portion of current Brangel sites to multi family development projects for approximately $24,000,000 Turning now to North Fork. Since we last spoke, we received a positive opinion from the Federal District Court of the Eastern District of California, which ends all federal court litigation affecting the project. With respect to the California State Courts, while we were disappointed by certain of the results of the California State Courts, we do not believe that any of those state court decisions will ultimately affect Brookfield's track ability to conduct gaming on their trust property. We have continued to progress our efforts with respect to these various active projects, including development and design and initial thoughts with our prospective lending partners.

We will continue to provide updates on our quarterly earnings call. Lastly, and as previously disclosed on our prior earnings call, on May 3, we entered into definitive agreement to sell Palms Casino Resort and Palms Place for an aggregate price of $650,000,000 in cash to an affiliate of the San Manuel Band of Mission Indians. The closing of this transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed before the end of this year. In conclusion, while the third quarter presented some headwinds, our disciplined approach to running our business allowed the company to enjoy record high margin and free cash flow conversion. With our best in class assets and locations, unparalleled distribution and scale and our own pipeline of six strategically located gaming and title properties, we believe that we are uniquely positioned to capitalize on the very favorable long term demographic trends and the high barriers to entry that characterize the Las Vegas logos market.

Lastly, we'd like to recognize and extend our thanks to all of our team members for their hard work and to our guests for their support throughout this pandemic. And with respect to our team members, special note of thanks for voting us a top casino employer in the Las Vegas Valley. Operator, this concludes our prepared remarks today, we are now ready to take questions from participants on the call.

Speaker 0

Thank you. We will now begin the question and answer session. Please go ahead.

Speaker 2

Good afternoon, everybody. I have a question, I think, probably more for Frank Lorenzo on strategic issues in terms of how your thoughts and views on monetizing casino real estate have evolved, particularly given where valuations multiples are for real estate EBITDA streams. You have $740,000,000 run rate of EBITDA, mid teens on half of that mid teens multiple on half of that EBITDA is like 80% of your float. That kind of does a lot of interesting things for you. How do you think about those things?

Speaker 1

Well, I think the value should be an implied end to the fact that we own all of our real estate, whether we have a propco or an opco. I mean, I think we've said in the perfect position by controlling all the real estate, owning all of the real estate, owning the growth pipeline, we kind of like it, but we also like looking at what people are willing to pay for that kind of two times coverage on the rent stream. There's no reason that that shouldn't be implied into our stock price as well. I mean that's how we look at it. Yes.

Mean, we looking at the Cosmos Falls transaction I think that was excited about a 20 times multiple ish. Certainly that's we like that valuation. I think right now as you can see we're kind of in the development mode. We've got six undeveloped pieces of property that we think are very attractive. And based on our historical returns we've been able to generate, we really like the idea of doubling the size of our essentially doubling the size of our current operating platform here in Las Vegas by developing those properties.

And we've always got that option down the road. Once we build that out to consider an off road property structure, if we think it makes sense at the time, we're going to be focused on what's the best way to maximize shareholder value. So we're always going look at the options.

Speaker 2

Okay. And then Steve's SG and A was up 10% quarter over quarter and that drove an EBITDA variance versus consensus. Was there anything onetime in there? Or and then if you could explain that sort of sequential trend? And then how do you think SG and A and corporate expenses trend from here?

Speaker 1

Yes. We can start with corporate. Corporate mainly I mean, in corporate and SG and A, the majority of that is payroll and bonus expense. We've performed really well. We've accrued higher bonuses so we can pay our employees.

There's also a lot of IT there's IT expense mainly related to the cashless initiatives that we've taken place. But there's nothing unusual or onetime in the SG and A or corporate.

Speaker 2

Great. Thank you very much.

Speaker 0

Next question comes from Carlo Santarelli with Deutsche Bank. Please go ahead.

Speaker 2

Hey, guys. Good afternoon. Thank you. If you could follow-up on Joe's question, talking more about just kind

Speaker 1

of Las Vegas specifically. It looks like if you just kind

Speaker 2

of do the simple net revenue, I think, and trying to get your implied OpEx in there. It looks like that's up about five percent. Could you comment at all about maybe the exit rate coming out of the quarter? Was it pretty consistent throughout the quarter in terms of staffing and expense run rates? Or do we or should we perhaps expect that to keep up

Speaker 1

a little bit more as we move forward? I think from an operational expense, we were pretty consistent throughout the quarter. As we talked about, were we fully staffed up in June. So we have all of our amenities open. We are completely staffed.

What you're seeing quarter over quarter is really it is a tale of two halves. The first half of the quarter was very consistent with the second half of the quarter. And then upon the mass mandate, we did see some degradation in volume. And we expect that to reverse once those COVID mitigation restrictions get reversed. That being said, the Las Vegas operations margins were higher this Q3 than they were a year ago.

We were able to increase margin by about 300 basis points versus Q3 of 'twenty. But like Steve said, it was really more of a revenue issue relative to the margins.

Speaker 2

So that kind of takes me to my next question. As you guys look out to 2022 and 2023, how much of the ability to keep margins kind of in these high 40s band that you've kind of been in since the start of this year and obviously north of that in

Speaker 1

the 2Q, north of 50 in

Speaker 2

the 2Q. How much of that boils down to the revenue run rate that we're currently looking at remaining where it

Speaker 1

is or even perhaps growing versus being able to continue to control cost as you

Speaker 2

think about maybe some of the things that are out there that could perhaps impact kind of the expense line as we move forward?

Speaker 1

Karl, I mean, question gets asked every quarter of our margin sustainable. So let's just let's go back and we just take a history lesson. Going back to Q3 twenty twenty moving forward, right? Same store margins of 46.2%, 45.5%, 48.9%, 53.4% and then this quarter was 49.2%. So what I'm seeing is a seismic change in the way we're running the business from an operational focus.

And we see a lot of these cost savings that we've put in place and a lot of the processes put in place are permanent. And while we have no crystal ball in terms of a revenue standpoint, we do expect several high margin lines of business to come back in 'twenty two and 'twenty three to help grow the top line in catering sales in the theater business. So yes, we do expect we're going gain these margins.

Speaker 0

Next question comes from Kelley with Bank of America.

Speaker 2

Hey, good afternoon, everyone. Steve, maybe just want to follow-up on that last point about some of the non gaming amenities coming back on board. I think when we look at your sort of non gaming revenues, we're almost virtually the same in the third quarter between the second. We were expecting that maybe ramp up a little bit just as some of the restrictions were lifted, obviously, there were restrictions that were put back in place. But can you talk about the non gaming amenity openings?

And I think I heard in the prepared remarks something about picking out a little later in 2023 for, I think, some of the banquet and catering side. But can you just talk about how you expect maybe the non gaming piece to ramp up over the next couple of quarters?

Speaker 1

Sure. Mean right now, mean, you've seen we've had we've had quite a successful quarter in Q3 from a non gaming perspective. Hotel, food and beverage also all returned built off of second quarter growth, all returned record growth. And as you think, we continue to expect the hotels to deliver that performance as we get sales and group coming back. And with the restrictions going on in June, July 30, we did see a slowdown in bookings throughout 2021 and the 2022.

But as I mentioned in our remarks, from a lead generation perspective, we're starting to see return of that corporate business in like the back 2022 and into 2023. So we expect good things from there. And then on the theater side, which is also non gaming, the slate continues to get better and it continues sequentially trend each month tends to be better than the last month. So we expect good things from there. And again, the hotel, what the team is doing, not only are we record occupancy and record ADR, yielding the hotel in a much better way.

So there are more casino guests in the hotel, so much more profitable holistically, and they're less wholesale business, which is a change that we put in place at the beginning of this year, we're starting to see the fruits of that labor.

Speaker 2

Great. And I'm not sure we're exactly here in Las Vegas and recovery yet, but we did see, you know, three years ago when the strip was kind of as hot as it is now, we did see some spillover into global mortgage destination oriented property like a DVR or Red Rock. Do you guys have seen that yet or how would you characterize, know, again a little bit of a crossover from maybe the strip customer, you know, kind of pulling down of the local properties as as the Scripps own occupancy and pricing continue to push higher.

Speaker 1

Yes. We are starting to see that regional out of town. That's gonna push over to the high higher end properties.

Speaker 0

Thank you very much. The next question comes from Stephen Brandling with Goldman Sachs.

Speaker 1

Realizing you're still in the early stage for development

Speaker 2

for Durango. But in your initial conversation, have you seen any color on procurement pressures given some of the supply chain concerns we've heard out there? Have you been able to figure out ways to control construction costs between now and when you put your roof down?

Speaker 1

Yes. I think the planning process for this has been quite extensive. You've probably heard in some of the calls, we've delayed giving the budget until just now. And so through that, we've identified all the strongly procurement items that need

Speaker 2

to be done and bought prior to us breaking ground in Q1 and

Speaker 1

we procured them or we've at least put those under contract. We feel pretty good from a pricing perspective. And frankly, construction costs have risen, so we feel we've captured that in the $750,000,000 number.

Speaker 2

That's helpful. And then secondly, maybe I missed the queue, but how do you think about capturing the value from the still undeveloped land you still have that you want to utilize?

Speaker 0

Well,

Speaker 1

we're planning on monetizing the back 23 acres of the Durango site. So we're taking the front 50 acres to develop. We'll monetize the back. It's probably resulting in multifamily residential behind the property, which will be good for the property. And we're going to continue to look at each one of the development sites here in Vegas as we roll forward, try to build out the portfolio, double the footprint here in Las Vegas.

We'll take basically the the heart of each of the properties and sell off the remaining real estate surrounding the development.

Speaker 2

Any sense for where some of that land value kind of sits from your standpoint at this point?

Speaker 1

Do you have for the value on the back 23 acres? Well, we just talked about in release, the back half, we have under contract about $23,000,000 So about a little bit over point $1,000,000 an acre.

Speaker 2

And we do think some of the other land that you have undeveloped, would you characterize that as equal, more or less valuable?

Speaker 1

Demand prices in Las Vegas are trending up. They really have been trending up. I think you're seeing a real supply demand dynamic there. There's a lot of demand from multifamily builders, industrial, I mean a lot of different users. The trends seem to be in our favor as a big landowner in the selling.

Speaker 2

Great. Thanks so much.

Speaker 0

The next question comes from Steve Weissman with Stifel. Please go ahead.

Speaker 2

Yeah. Hey, guys. Good afternoon. So it sounds like from Steve's remarks in the I think in prepared remarks, the promotional environment in the local market still seems unrational to read your comments. So I guess, question is, Tom's deal does close and and do you see a new competitor come to a market and operate the comms?

Do you think there's any risk that any competitor comes in and tries to steal some share initially? And if so, how would you guys react in that situation?

Speaker 1

I think you can see a complete pivot in basically our approach to the market. It's relying on our A plus locations, A class buildings, class employees, relationship marketing. We basically pretty much gotten out of the promotional business of the mass market here, and we're relying on personal relationships. And our intent is to stick to that strategy even if you're going to get a one off player or someone maybe come in and wanna be promotional and spend money. I mean, you have a couple of them on the market right now.

But at the end of the day, we are the leader in the market. We have the a locations and the suburban locations, and we just really don't see the need to return to where things were.

Speaker 2

Okay. That's it. Second question would be around the you mentioned the past mandate in your remarks. And But I guess the question is, you know, what what conversations have you had with, you know, with with your customer base in terms of, you know, folks that weren't coming back in? Is it is it something where they're just sitting on the sidelines waiting for that to

Speaker 1

be removed? Or is there

Speaker 2

is there something else going on in the other question is, Have you heard anything in terms of potential timing around removal of that mandate?

Speaker 1

Look, I think a very tight age group on how people react to the new cycle delta variant, mask mandates. And I think the older the segmentation of the population, the more adverse they are to deal with mask and react to the new cycle. So I think the younger demographic is not as impacted by mass mandates, but I don't know if you guys have anything you want to add. I think the other area where we're seeing a little bit of dialogue is in groups that are looking to book. There's conventions meeting, social events.

I think that the mask mandate definitely impacts that line of business. As Steve had mentioned, we're starting to see that pipeline kind of come back into, say, 2022, 2023. I think as people are presuming that Nashville by then will be a thing of the past. We don't have really any updates from the governor of the state relative to exactly what they're thinking on the mask mandate. We know tracking the numbers.

They seem to be going in the right direction. So we're hopeful that sometime in the near future that, that can be lifted. I think we're one of six states that still have a mask mandate in place. So certainly, we think when the mask mandate hopefully ends, it should be relatively positive from a psychological and just an overall for our business. The

Speaker 0

next question comes from Chad Beynon with Macquarie. Please go ahead.

Speaker 2

Hi. Thanks for taking my question. Regarding the four properties that remain closed, can you help us think

Speaker 1

about what you need

Speaker 2

to see in the existing business or the market to allow you to open up one or all these properties going forward? Well,

Speaker 1

the Palms are going to be sold, so it's down to three properties. And I think what we have to look at is that those three properties represented less than 10% of the cash flow, even though they were one third of the casinos. And we've been very successful at moving a lot of the business at those closed properties to the six open properties, which has resulted in the higher margins that we're seeing at 49% for Las Vegas operations before allocation. I don't know if you have anything to add, Steve. And until we're confident that we can deliver incremental absolute profitability, we're not going to go and open something and cannibalize our other properties and end up making us money.

Yes. And I think just to add to Frank's points with the you nailed them all with SB $3.86 in place, it really makes it administratively hard to open up a brand new property. And

Speaker 2

then regarding your comment around Durango, your goal of generating returns that are similar to prior projects, obviously, with the cost of capital down at this point, you can certainly get a positive IRR at a lower return. When you talk about consistent with prior projects, do you think somewhere in the ballpark between kind of the 1020% whole post depending on, you know, what happens between now and '23? Or or is there a more finite number that you're willing to provide?

Speaker 1

I think that's the right range. And typically, we've been able to get into the 20 type return on a stable basis. If you look at just kind of where we sit today, you look at our trailing 12 EBITDA at $730 ish million being generated by six properties. That kind of comes out to an average for properties about $102 $122,000,000 of property. And looking at the demographics, we actually posted some information on the investor deck on our website.

When you look at the demographics, the traffic flows, everything else, we certainly expect this to be an above average property relative to the rest of the portfolio. I mean, if you compare the adult population on a five mile radius per gaming position to Red Rock and Green Valley to Wrangler, it's two times the amount of adults per gaming position. So we feel pretty good about it. Thanks for the additional color. Appreciate it.

Speaker 0

Next question comes from Gary John with Truist Securities. Please go ahead.

Speaker 2

Thank you. I just wanted to know if you're now seeing any impact from higher cash prices. And I guess, I'd extend that to any thoughts on the wider inflation we're seeing either from the revenue or the cost perspective?

Speaker 1

On the cost side, you're definitely seeing in cost of goods sold, that's up year over year, about 12% on a per cover basis, particularly on a food standpoint. But on the revenue side, it really haven't seen that impact. It's been more it's been it's tough to see because you're seeing you have the mask mandate in place.

Speaker 2

Got it. Got it. And can you give any color? I'm not sure if you've talked about what you're seeing across the database. Any any color you can give on any segments or demographics, if anything's performing better than others?

Speaker 1

The higher end segments continue to perform outperform, no question. And then the other areas, the growth we've seen in the younger demographics, we were just looking at kind of where we sat in 2021 to 30 '5 demo prior to COVID and now coming out of post COVID. I think their theoretical win is up about seventy five percent versus pre COVID. So we've been successful in driving that incremental kind of younger term loan into our properties, which we think is super healthy and good long term for the business. Great.

If I could just

Speaker 2

sneak one more in. It's been a few years since you you guys have issued a dividend. I'm just curious where assumption the dividend would rank in terms of your capital allocation strategies.

Speaker 1

Yeah. I think the the good thing is we're starting from a great place. We've got probably the strongest balance sheet in the industry. In the March, we're gonna get about $650,000,000 from the Palms closing. The good thing is the board considering is you get a balance return of capital versus also the six you know, the six strategically located properties that we can start developing.

So we're going to consider all we have all options options are on the table.

Speaker 2

Helpful. Thanks so much, Scott.

Speaker 0

From Dan Polisar with Wells Fargo. So

Speaker 2

most of them answered, but

Speaker 1

on the 55

Speaker 2

customer, core customer, what inning are we at that customer base returning? And as broader reopening has occurred, have you seen any declines at all in that unrated fair margin player?

Speaker 1

Definitely have some room to go. I mean, they're not all back yet. I don't know necessarily what inning we're in. I think that The inning changes depending on go for during international. Yes.

Yes. They're definitely the most affected by kind of what's going on with COVID. We're hopeful that if the mask mandate comes off sometime in the near future that, that segment will really start to come kind of come back and forth. But the older portions of our database is definitely where we're seeing that we have room to grow. Do you have what was the

Speaker 2

second part of this question?

Speaker 1

I think it was on the unrated, which we haven't really seen some change in unrated play during post pandemic.

Speaker 2

Got it. And then just in terms of the three properties that you guys have set to open, I mean, is

Speaker 1

there any change in your

Speaker 2

opening decision in your decision making process there? Have you had any conversations with with potentially interested parties?

Speaker 1

I mean, there's all there's all sorts of inbound calls, you know, kinda getting for those three properties. But I think I can pretty say simply, you know, if we could never sell a prop a gain title property, those three, you know, gain titles. So really no decision has been made whether we're open or potentially scrape or sell.

Speaker 2

Alright. Understood. Thank you so much. I

Speaker 0

would like to turn the conference back over to Stephen King for any closing remarks.

Speaker 1

Well, thank you, everyone, for joining the call, we look forward to seeing you again in the next few days. Take care.

Speaker 0

The conference is now concluded. Thank you for your time and great communication. You may now disconnect.