accesso Technology Group plc (ACSO) Earnings Call Transcript & Summary

Good afternoon, everyone. This is Steve Brown, CEO of accesso. Thank you for joining us for the presentation of our first half year results. It's certainly been a unique year. That's an understatement, to say the least. And so today, we're going to walk you through an overview of the first half of the year, our financial results, as you might expect; and then transition to speaking, again a bit of a refresh and revisit, to our longer-term priorities and where we stand with those; and then wrap up with a summary and, of course, a view on our outlook as we go towards the end of this 2020 year. So as you think about the first half of the year. As you all well know, I returned to the business at the end of January. And just some -- I think, less than 60 days later, we found ourselves facing a fairly significant challenge with the reality of COVID-19 and the pandemic. Sort of mid- to the end of March, we found our end markets rapidly shutting down. And we moved into an immediate mode of action planning and working to reinforce our business for what we're not certain of in terms of the duration or the level of impacts to our business or to our end customers. And we reinforced our balance sheet. We moved into a phase of cost cutting, which we will talk more about in a moment, but then we quickly moved into a period of innovation and looking at how we could adapt our technology to this new normal that we and our customers have found themselves facing. How can we help our customers as they thought about reopening as they faced the new -- a new level of health concerns and a new way of operating their business and uncertainty around their reopening plans? How can we help them? What can we do with our technology that we had in hand and step up to help our partners? And from the very beginning, I earmarked to our team that our success will be measured upon how we supported our customers as they reopen. And we will be measured in the end on how we behaved during this crisis because that's really when you show your true colors. So that's really been a quick summary of the cornerstones of our first half of the year. And as we think about the actions that we've taken: We've had this interesting dynamic of this crisis kind of swirling around us and internally focusing on rebuilding our business at the same time. So first step was we focused on refreshing our leadership team. An absolute key priority to being successful is having the right leadership in place and having the right team structure and talent onboard. We named Fern MacDonald as our Chief Financial Officer, and she's on the call today and will cover our financials. We named a new Chief Commercial Officer, heading our sales and marketing and revenue generation areas, with Andrew Jacobs, who has been a long-term managing director for us of our European business. He relocated to the United States in the middle of the summer to now lead this part of our business. We named a Head of Product for the first time across all of our various solution sets. As you all know, we came together as a group of acquisitions across the last several years, so we had never really fully integrated, and that was a key priority for me returning to the business in January. Edil Hernandez now leads our overall product areas across all of our solutions under one roof and with one united team. And importantly, particularly as we are facing this level of disruption with our staffing, our HR resources and staffing resources were incredibly important. Our Head of HR had -- unfortunately had left the business in December of 2019 just before I returned, but luckily, I was able to convince her to return, starting in August. And we now have Maura Schiefelbein back as our SVP of People, a very important role to us, particularly in this turbulent time as it relates to our staffing. So what does that get us? It gets us to a better place on our financials. We have a new set of eyes, a refreshed view of managing our financials going forward. We've placed new resources and senior resources on our sales and marketing and revenue-generating area with Andrew. With a deal in place, we now have a senior leader looking across all of our products strategy and really focused on improving our return on investment against our development expenditure. And last but not least and probably the most important of all, we have Maura in the seat in her position, helping us during this difficult time with our cultural -- company culture and staff well-being. As we'll talk about later, we've been through a significant level of staffing reductions, furloughs, reduced pay, reduced work weeks; and now as we move into our recovery phase, it's really important that we have a clear focus on our team and retain -- talent retention. The second action was one that was out of necessity. We embarked upon this as an optimization effort when I returned to the business in January, and we quickly found ourselves moving into a crisis that required us to mitigate our near-term costs in a very rapid manner. We typically operate -- about 75% of our operating costs is staffing or payroll, so we're very heavily balanced towards our payroll expenses. While that is a big number, it also means we have some degree of flexibility around how we manage our costs and something as unprecedented as this crisis has proven. Before the crisis started, we began rightsizing the business and eliminated 27 positions, but as the crisis emerged, we reduced a further 62 positions across the business as we looked to reduce our operating costs. We also went into a quick and early process around reducing payroll for our existing staff. We unfortunately had to furlough many of our employees. And those that continued to work were doing so on a 4-day work week and a 20% pay reduction, and many of those have sustained that throughout much of this period. As a result, that allowed us to reduce our operating costs by about $2.2 million per month and also further stepped back down to about $3.8 million from a number that was well over $6 million going into the crisis. As we look forward, we plan to now phase that back up to an average of $4.6 million a month over the 6-month period because we are beginning to return employees to work as our customers have reopened and in many cases to a large extent. And also we need to make sure we're maintaining our talent and we don't continue to lose staffing due to attrition. So we'll be stepping our cost base back up across the coming months now that we have gotten through what seems like the worst part of this crisis, at least financially, for us. The third thing we did was to ensure our financial resilience. As you know, we went to the market and raised just over $46 million through placing an open offer. We also had our $30 million existing credit facility in place, but on top of that, we secured another $9.8 million facility as additional protection and flexibility. In light of all the cost adjustments that we made and doing so early and, I believe, at a very substantial level, we have been able to protect those contingency funds. And they remain untouched as of this date, and we would expect them to remain untouched throughout the remainder of this year. That certainly is going a long way to preserving our flexibility because this crisis is far from over and we don't know what lies ahead for us in the 2021 period in terms of when the recovery will happen and in what order of magnitude. So I believed from the start it was important to reserve those contingency funds and honestly use them only under a worst-case scenario, and we have lived up to that commitment and all those funds remained at our disposal. As we move into the innovation phase and thinking, well, we're sort of dealing with a really bad situation, we have a lot of technology in hand. Our customers are facing a crisis like they've never seen before. How can we leverage our technology? Now we're on Slide 6. How can we leverage our technology to support our customers as they look to operate their business in this new normal? So we looked across our products, and our customers were also reaching out to us with various needs. Our LoQueue products clearly stood out from the start as an opportunity to support social distancing and as our clients looked to reopen and needed to provide more space around their attraction queues. And we've seen several customers expand their model from the typical historical premium model where customers paid or guests paid for the LoQueue service to one where they make that an offering for all of our guests in order to facilitate social distancing. A trend we also saw emerging was across our passport business. And sort of the mid-May time period, we realized that, in order to reopen, venues were going to be required to restrict their capacity. And while that's easy when you're selling a brand-new ticket and you can limit the number of tickets you sell per day, the majority of our customers have an enormous number of season pass holders and members that have the right to visit on any day. And so they needed a process to allow those guests to make their reservations to consume some of that capacity on each day that was available. We quickly adapted our passport ticketing system. We had some reservation functionality that was existing, but we needed to expand that in order to accommodate this new demand that we had across large-scale customers. We did that in a very short time period with a significant effort across our team and deployed that solution early summer. And to date, we've booked over 12 million guest reservations using our date, time and capacity management functionality for accesso Passport across customers like Six Flags, Merlin and Cedar Fair. Siriusware, which -- finds its customer base in the ski market but also cultural areas like museums, for example, but the ski industry in particular is looking forward to the coming winter season and realize that they were, similar to theme parks, going to be faced with capacity restrictions and the need to provide social distancing in their queue areas, so we've had an uptick in demand for our e-commerce solution alongside our Siriusware customer base and sort of a cross-sell success opportunity for us, as our accesso Sirusware customers reached out, asking if they could utilize the accesso Passport solution to help them with their ski business this coming season. So we've had a number of wins in that area. ShoWare, accesso ShoWare, is the next main product we'll talk about. It is primarily a live event and live entertainment focused product, theaters, concerts, large arenas, performing art centers, those types of venues. This area of our business, for the most part, remains dark. Theaters have not reopened due to the challenge of the social distancing, and we expect those to be one of the later areas to recover. However, our customers, and we have many events that are accesso ShoWare customers, have been focused on revising their seat maps and also system enhancements to allow them to, I will say, scatter to crowds when ever they do reopen and provide that appropriate distancing. And so we've had to adjust our algorithms in terms of how we sit people in the theaters as we prepare our customers for their eventual reopenings. We've also seen customers in this space realize that the e-commerce system they have currently available was just simply not adequate, so we've had some new customer wins across this area as they look to prepare for their eventual reopening as well. In TE2, we've had some increased level of conversations around our guest interaction platform and how we can help our customers improve their guest engagement as they emerge through this crisis and they look for new and more efficient ways of engaging with our customers, but importantly, in TE2 we have a contactless food and beverage solution that allows you to order your hamburger at a theme park from your mobile phone. And we've received -- realized a new level of demand for that product. And actually, across the ski industry, we have a new customer -- or I'm sorry. We have an existing TE2 customer that's expanding their services to include the contactless food and beverage across 100 of their restaurants when they reopen their 14 ski resorts this coming ski season. So you would think that during this time period things became suddenly quiet and there was loss of activity, but despite the crisis, what we found is that our technology is actually a right fit in many circumstances and that we can actually adapt our core platforms to help our customers in a unique way that is somewhat off label from its initial objectives. On Slide 7, highlighting some of the customer successes that I just mentioned. We've been -- we've seen a clear opportunity with social distancing, with online bookings; and we're doing things to help our customers drive revenue. Clearly, revenue is important for every business right now, and it's certainly no different across the end markets that we serve. With the range of technologies that we have to support those areas, we've expanded our virtual queuing at Walibi Holland, so now every customer, every visitor walking into Walibi Holland's now has access to virtual queuing. We signed Parc Astérix, which is in Paris, a large theme park in France, under a similar program where every guest walking into their front gate has access to a virtual queue versus waiting in line [ sort of packed in ] with other visitors. Village Roadshow Theme Parks in Australia has 4 large theme parks as part of our portfolio that we serve there. They're following a similar model as well. Every customer has access to the virtual queue. And of course, Holiday World, which we announced early on, is following a similar model. So it's certainly, I would say, not a widespread adoption of our 100% virtual queuing, but what we're seeing is a continued adoption across various geographies and various customers. And I believe that's an important benchmark for the rest of the industry. And we continue to remain focused on being successful with these implementations because we know the world is watching us and seeing how the guests are reacting and how [ that certainly meets ] particular operators. In terms of cross-sell wins, as I mentioned earlier, we have had some success in the ski industry. We signed 8 of our Siriusware customers to now adopt the accesso Passport e-commerce solution, alongside 1 new customer that also utilizes Siriusware that will also now use accesso Passport. In addition, in the live entertainment area we've signed 12 new ShoWare agreements year-to-date across that industry. So where does that lead us in terms of our financials? We kind of have a mixed bag on the things I walked through there, the items I walked through in terms of what was exactly on the borderline of the first half of the year, what's crossed over from the midpoint of the year until now, but in terms of our financials, Fern will now -- I'll hand it over to Fern MacDonald, who will give us an update on our financial results. So we're now going to start up actually on Page 9, just to [ set everyone along ].

Thanks, Steve. As Steve mentioned, this first half of the year has been incredibly challenging for us, and that's certainly reflected in our financial results for this period. We started incredibly strong. January and February, we had revenues of about $15 million, which was close to 13% higher than the same period in the prior year. And the beginning of March saw the start of coronavirus and the subsequent shutting down of parks throughout the globe begin to have a significant impact on our revenues as we generated revenues of $10 million over the subsequent 4 months, bringing us to just under $25 million for the year, which is a little under half where we were last year. It's certainly a disappointing number in comparison to the prior year, but we were a little bit ahead of where we thought we were going to be as we set out our expectations when we -- the coronavirus pandemic began. We've been hit hardest in our transactional revenue. Our transactional business lines, our ticketing and our virtual queuing, are dependent on parks being open and guests walking through the door. Those have fallen from 72% of our total revenue in 2019 to 49% in the period so far. Other repeatable revenue has remained relatively stable in absolute terms, increasing as a percentage of our total revenue due to the lower overall revenue number. And our nonrepeatable has fallen a little bit in absolute terms but again has increased as a percentage. We did a fund raise in May of 2020 and successfully raised $46 million. Our goal at the time was to ensure that we had the financial flexibilities to ride this pandemic through 2020 and through the end of 2021. As of the end of June, our net cash is just over $30 million with $55.8 million in cash; and we have drawings on our original credit facility of $25 million. We do have an additional facility of $10 million, which we drew down through the CLBILS program. And that is untouched as of June 30, and we expect that to continue through the end of the year. Overall, we ended the 6 months with a cash EBITDA loss of $10 million. That's down approximately $11.5 million from the prior year period. Moving on to Slide 10. Our revenue, as we just went through, was a little under half where we were in the prior year, but our mix has changed. And we've been lucky that our more profitable lines of business are those that are coming through. And our least-profitable business, which is our distribution business, has all but disappeared in the second half with -- the first half with the closure of the West End theater business. So our gross profit percentage was up, and we're at just under 82% for the first half compared to 75% for the first half last year. And that's a trend that we expect to continue through the remainder of this year. Our costs were also decreasing. Before the beginning of COVID-19, we had already begun to reduce our cost base and focus on becoming more financially efficient. We had removed a number of positions in February and continued to cut costs aggressively as soon as this crisis started. We eliminated several more positions on a long-term basis in the first quarter. We pushed a number of our staff on furlough. We have the majority of the remainder on our staff on a 4-day week, and we continued that through the rest of the first half and into the second half of the year. So our admin expenses have dropped a little over $3 million. Our operating loss was $18.7 million for the first half, certainly not a number that we ever thought that we would see, but given the conditions that we've traded through in the first 6 months, we're reasonably happy with where we've ended up. Finance income is a new addition to our income statement and a significant number. The fundraising proceeds came in, in GBP. As for our ] U.S.-denominated business, we did enter into some forward contracts to hedge our financial statement exposure [ on what the ] mark to market on those forwards. So moving on to Slide 11. Again prior to COVID-19, we had changed the focus of our APMs from an adjusted EBITDA model to a cash EBITDA model. Internally, we were very focused on efficiency and on our financial performance. Focusing on cash EBITDA allowed every dollar to be assessed equally. There was no longer the distinction between what was capitalized and what wasn't capitalized. We were equally stringent on all spends across the business, and I think that served us particularly well as we've moved through this crisis. We are very much focused on cash preservation and cost management as we move through here. Certainly the number is negative. We're $11 million behind where we were in the prior year, but it is a number that we're very focused on. The drop in capitalized internal development costs is twofold. We've had a number of people on furlough and we've had a number of people on 4-day weeks, but we've also become more efficient in how we manage our capitalized process. We're not looking at every single 5-minute increment, which is an enormous strain on the business in terms of tracking it up and reporting and so forth. We're focused on capitalizing the large important products, and we are not focused on making sure that every dollar that we can capitalize is capitalized. And that focuses the business on the [ total store ]. Other key points in our APM movements are amortization of acquired intangibles was significantly lower than it was in the prior period. And that's a result of the adjustments that we made in the prior year to impair both TE2 and Ingresso, and those were all processed in our December 2019 financial statements. We also have an additional impairment in relation to Ingresso. As we mentioned previously, the West End theater market is completely dark at the moment, with indications that, that will continue into the beginning of 2021, so with no clear line of sight to a return to normal profitability, we took the prudent approach of writing off the remainder of the intangible assets. So moving on to Slide 12. Well, this has been a global pandemic for us and all of our geographies have been impacted. The extent of that impact has been a little bit different. The lowest-impacted areas have been Australia and the South Pacific, and a lot of that is related to the seasonality of their business. So while in the U.K. and the U.S. our main busy period is the summer months, in Australia it's the winter months. So we're starting to come into the beginning of their busiest period, so we're hopeful for a reopening of those markets as we get into that season. The U.S. has had the benefit of being the primary recipient of a lot of our nonrepeatable revenue, which has remained broadly intact, our professional services, our license fees and our maintenance and support. A lot of that is focused on our U.S. business, which has reduced the impact in that geography. The U.S. also opened a little bit earlier than the U.K., so we started to see some trading trickle in a little bit earlier. And the United Kingdom and Europe have been the worst hit. They certainly have the largest proportion of our transactional business. And the closures lasted a little bit longer in the U.K. Post the end of this period, as things begins to open up, we are seeing good performance where places are opened. And we are seeing the return of that pent-up demand from those periods of closure. So moving on to Slide 13. As we saw on Slide 9, our transactional business has definitely been hardest hit. Our virtual queuing and our ticketing and e-commerce are down significantly, a direct result of the fact that our parks [ were opened ] for a number of months covered by this period. Our maintenance and support has remained broadly intact. And our platform fees have actually increased a little bit, as we have increased adoption of our TE2 platform across our customer base. Our license revenue have -- has fallen. That is due to some one-off items in 2019 that were no longer repeated in 2020. That's a trend that we've had in our license revenue over the last couple of years, and I think we're now at our baseline revenues level that we expect to continue. Our professional services have remained broadly intact. We've certainly had some customers who've been a little bit careful with the amounts that they have spent, but we give good value to our customers. And I think that's been clear on the fact that they've continued to work with us on ongoing products even as we work through this crisis. So Slide 14. For the last number of years, we've classified our business in 2 distinct segments: our Ticketing and Distribution and our Guest Experience. Our Ticketing and Distribution is down 53% over the same period last year. A significant piece of that is coming from the Ingresso business. The theaters have been shut for a number of months now. In addition, we have had a number of cancellations of shows going through all the end of 2020 and into 2021, resulting in the reversal of some previously recognized revenue, further depressing that revenue number for the first half of 2020. Our Guest Experience business has fared a little better. Our queuing business is still down, a significant component of that coming from transactional revenues. Guest Experience is predominantly professional services based, so that's remained stronger than the other areas of our business. So finally, on to the cash flow on Page 15. I think the main number that have -- that sticks out on our cash flow [ is the close of ] successful fund raise back in May. So net of costs, we've raised $46.1 million. And we certainly achieved our goal of shoring up our balance sheet and giving us the flexibility to operate knowing that we could make it through this year and through next year. Other key movements to point out is our underlying free cash flow. So despite the closures, despite the reduction in our revenue, our underlying free cash flow was only $1 million worse than it was in the period before. So it's a reflection of our strict control of costs, our focus on accounts receivable and collections and really managing that cash number as we go through the process. Back to you, Steve.

Certainly. Thank you, Fern. So we're going to move on now to Slide 17. And I want to revisit the strategic pillars that we set out at the beginning of the year, the time I returned, and there were really 3 key areas. And despite, as I said earlier, this crisis swirling around us, we have remained squarely focused on these pillars. And with the business and our balance sheet insulated and really preparing ourselves for the longer term, we've maintained our focus on these key items. As I said before, our product road map is the absolute foundation of our success. It's what our customers are buying from us. It's what we're spending our resources and investing our resources in. And it really is the absolute bedrock of success, if you will, for this company in the longer term. We've resorted our organization, as I mentioned earlier, and our product team is now fully aligned across all of our different solutions. As this company was built through a series of acquisitions, we didn't have the most organized structure possible. We now do. If you work in e-commerce, whether you work on TE2 or accesso Passport or accesso ShoWare or you work on LoQueue e-commerce, everyone is in the same team for e-commerce. If you work on our [ back-of-top ] system, it's the same thing. If you work in security, it's the same thing. We have now aligned across the business fully by function and our operational team by area. Theme park operators -- theme park -- our team that services theme parks works together. Our team that services ski resorts works together. And so we have a much more integrated and -- organization that -- to communicate and work together on the same priorities. When I came back to the business, there were a wide range of things that were in flight. We've sifted and sorted through that list. We've prioritized. We've eliminated and made a lot of progress this year in terms of getting our priorities in order. That's now leading into our longer-term road map, which we will continue to work on in the coming months. And as we go into 2021, we have a very squared view on exactly what our resources will be working on and exactly what results we expect to get from that investments of our development efforts. Both by our option as well as not our option, we focused on operational efficiency. The pandemic has forced our hand certainly to some degrees and accelerated our need to re-baseline our costs. And overall, we have made good progress or a good down payment on that prior to the pandemic, but since then we've gone much further across the business in terms of both our staffing levels and our other expenses. And now as we move forward into what I believe is the first portion of I'm not sure how many recovery phases but at least phase 1, we'll be looking at our costs from a 0 base. And if we survive with that and during the pandemic, we'll be looking very hard at how we did it when we come back in our recovery phase. And each item that we use, whether it's marketing and sales, whether it's for system or technology, we'll be evaluating those very closely as we build our budget for 2021 and beyond. So despite the disruption, and certainly this has not been a pleasant experience, it's also really driven us to be very focused on our business and look at things much quicker and in much more level of depth than we might have otherwise. Cash EBITDA, as Fern mentioned earlier, is an absolute priority. And with the reorganization that we now have and our product team in place and our organizational leaders all in place, we have the entire group as really focused on cash EBITDA as our metric of success. All of that doesn't happen unless we have customer success, and from the outset, this is the -- a #1 priority really for me was making sure that our customers were happy and that our relationships were strong. And as we went into this crisis, I -- what I saw and what I witnessed was that, during a crisis, you become closer together. You're in this together. They're in a challenging environment. We're in a challenging environment. We need them. They need us. And we've really focused on that being a priority. And when a customer needed something morning, noon or night, we have rallied our team to get that done for them. And we have not sort of said, "Oh, thanks. That was 1 hour of work. Here's the bill for the work." We've done this from a partnership perspective, and I believe in the long term that will pay us back in dividends for many years to come. As part of that and part of the effort around our products and our operations, we've also laid the groundwork for an improved level of product innovation, which is an absolute important factor for our customers as they think about continuing to do business with us, so I feel like overall we're in a very good place in terms of customer success. We can always do better. There's never enough. There's never enough customer success, but I do believe we've made significant strides in the past few months in light of this crisis that we've all been dealing with. So how do we think about things going forward? There are a range of underlying dynamics that are working in our favor. It's clear across every industry, and I'm sure you all -- you look at this every day. The push towards digital, whether it's grocery shopping or whether it's online buying, anything and everything, is accelerating. And in the industries we serve, I believe that it's particularly accelerated. First of all, they have a need for social distancing and they have a need for online ticketing. That's very clear, but the overall leisure industry, from my view, tends to lag a bit behind the mainstream industry in terms of technology. And from my own observation, I believe this is going to move them forward because, as each of them look at their business and how they can operate more efficiently on the other side of this, they'll be looking very closely at how technology can help. How can it reduce labor? How can it improve customer acquisition efficiency? How can it improve customer engagement? Everyone has had a chance to pause and look at their business, accesso as well as our clients. And what I'm hearing loud and clear is all of them see the need for digital and the need for technology is emerging as a higher priority on their strategic road maps. I believe that works in our favor. We clearly have mission-critical technology, social distancing, online ticketing, revised seat maps, you name it, across our portfolio. Our customers need the technologies that we have in order for them to reopen and to operate under this new normal. Whether it's government regulations, whether it's customer preferences, whether it's a need for more cost efficiency, our -- the technologies that we can provide and that we do provide are absolutely important to their business. I believe we're also positioned for any upswing. And I'm very cautious about being overly optimistic, but I do believe that we've realigned our cost base to be a much leaner business, a much more focused business on revenues and profitability. But also we positioned ourselves through this crisis as a key enabler for our operators both in managing these new circumstances but also finding new ways and new paths with -- paths for revenue growth. Overall, this has certainly been a challenging environment. I don't think anyone of us would have ever imagined we'd be facing what we're facing now, but I do believe there are some underlying -- an undercurrent or underlying dynamics that will work in our favor as we go into this recovery phase in the coming months. Our customer base remains intact. I know that originally there were a lot of concerns about our customers. And certainly, every one of them is challenged in their own unique way, whether it be their balance sheet or government restrictions or coronavirus outbreaks in their particular geographies. Every one of them will have their own unique circumstance and we've tried to support them in whatever way possible. And across our portfolio, our customer base remains intact and in fact, as you saw earlier from the wins we've had, is actually growing. So summary and our outlook. Where do we go from here? Well, I hope it's clear that we've confronted this challenge quite head-on. We didn't bury our head in the sand and hoped it would pass. We met it head-on from the beginning of March, middle of March; and took aggressive actions to reduce our costs and insulate our balance sheet. The -- our performance, so far, is certainly ahead of our revised expectations internally. And we've been encouraged each week as we see the results coming through. And we find new ways to help our customers, which in turn helps us from a revenue perspective. There's clearly pent-up demand as we see attractions reopening. It does tend to vary by geography. It's clearly correlated to the level of virus outbreak with a particular community. If you look across Europe, the theme parks and attractions are actually quite busy. If you look across the U.S., it's more temperate. It's more tempered. So it really does kind of ebb and flow based upon what's happening from the health -- with the health situation in that particular area, but overall, because the customers are booking reservations in advance, we're seeing transaction volume ahead of perhaps what the actual attendance volume is because every customer coming through the venue is likely booking something through us, where in prior years they might have only been booking 40% or 50% of those transactions through us. Even though they're on reduced attendance, every customer coming through is now booking something. So this has given us more clarity on 2020. We know, when a venue opens, roughly how they're going to perform. At this point in the year, we have a good idea of which venues are going to be open for the balance of the year and which ones will remain closed. That's allowed us to put a perspective out that we don't believe our revenue -- we're confident, I should say, that our revenue will not be less than $48 million; and that our operating cost average will run $4.6 million a month for the rest of 2020, so across that 6 months time period. The opportunity remains intact for our business, and in fact, I believe it's perhaps stronger than it was before this crisis emerged. Our technology has proven to be valuable and there's trends that are emerging in our favor, and we've underscored that with the strength of our client relationships. We've also continued to [ clarify ] our strategy and work that through our organization. Despite the fact that we had a significant number of team members on furlough, we had much of our staff working on 4-day weeks. We reduced our staffing. We continued to focus on our reorganization and getting our leadership team in place and working on the future, so overall I believe that we're in a good position. It's certainly not where any of us would like to be at this point, but as far as things can be imagined, I believe we've managed this with strength and with certainty and decisiveness and protected our cash, very importantly. As I said earlier on, that has been an absolute priority for me. It was that we continued to respect the funds that we raised from our investors and our shareholders and that we respect the fact that, that money was raised for contingency and to give us that financial flexibility. And we have absolutely operated with that in mind and will continue to do so. So with that, I think we'll wrap up here. And I just want to say thank you, everyone, for joining us. And of course, if you have questions, feel free to reach out to us directly. We're always happy to assist in any way possible. And I look forward to speaking to you again after the full year is complete.