AirAsia X Berhad (AAX) Earnings Call Transcript & Summary

Hi, everyone. Good evening. Welcome to the call. So CEO, Ben will be leading the presentation. Ben, over to you.

Hi, everybody. First of all, welcome this evening to our second quarter results. Thank you very much for joining. So just without further ado, we'll go straight to your results and then we'll leave it for Q&A later as we go on. Okay. On your first page, key takeaways for the quarter, second quarter revenue, MYR 512 -- well, MYR 513 million, a surge of 4x year-on-year, a good recovery rate of around 51% against 2019. Quarterly net profit, MYR 5.5 million from a net loss of MYR 653 million in second Q '22, really driven by very strong operational performance and also which contributes to a positive EBITDA of MYR 100.5 million and net operating profit, which is profit from operations, of about MYR 38.2 million. Average base fare still remains strong at MYR 533, but down from the first quarter. As I said in earlier calls, that second quarter is seasonally a weaker quarter than usual, but remain 22% higher than second Q '19. Ancillary revenue remains strong point at MYR 146.9 million or MYR 236 per pax spent, over 42% hike from second Q '19's ancillary per pax. Operating expense rose to MYR 412 million, in line with higher fleet utilization. Second half '23 remains extremely lean, still 3x lower than first half '19. CASK stood at MYR 0.1175, performing better than MYR 0.1347 recorded in second Q '19. Of course, as we move on every quarter, every month, fleet activation and network recovery still continues. Currently as of this quarter, which is second quarter, we have 11 aircraft that are operational. But of course, ever since then, we already have close to 13 aircraft operational already, the 14 coming in, in the next few days. And this -- and the sector has grew close to 27x since year-on-year from COVID. So I think the ASK has grown quite considerably since then. So this then leads to better FlyThru connections, which goes up to either AirAsia, short haul or even that also the cargo take-up rate has increased as we have more scheduled routes moving forward. Fleet growth, we're on track to have up to 17 operational by 2023, accelerate fleet expansion to support growth and expect to reach 2019 by 2027. Strong cash position, MYR 269 million, up 40% Q-on-Q, especially with the shareholders' equity increase to MYR 90.6 million (sic) [ MYR 96.1 million ] due to the 50% -- MYR 50 million share placement. Associate Thai AirAsia X posted a MYR 352 million revenue, recovering over 91% compared to 2019. The passengers also increased in line with operations, but posted a net loss of MYR 73.6 million. But really, that's only due to unrealized ForEx loss. I think this is not new news, but I think in terms of the PN17 waiver application, that has been submitted to Bursa, while the AirAsia X rehab plan remains at work, and that further announcement will come to that later down the road. And once that rehab plan gets finally sanction, then we expect record share profits from the associate over MYR 300 million in 4Q from Thai -- from TAAX as we speak. Key financial highlights in 2Q '23. Revenue surged 51%, 4x to MYR 513 million, as I said. Scheduled flights revenue is MYR 331 versus MYR 6.7 million in last year same time, while ancillary revenue of MYR 146 million versus MYR 1.3 million. So revenue has recovered over 51% despite having 11 aircraft only operational versus 24 back then. The airlines turnaround is evident with positive EBITDA of MYR 100.5 million and net operating profit of MYR 38.2 million. The net profit is MYR 5.5 million as opposed to position loss of second Q, even second quarter is typically charting low seasonality in addition to foreign exchange loss amounting MYR 32.7 million. Key operating statistics, as I said earlier, the RAS has -- the ASK has grown considerably 25x, 42% recovery rate. This is basically just a surge of scheduled capacity. As I mentioned in previous calls, the key thing is to make sure that we go back to the pre-COVID routes that we we did. We're not there at the capacity level where we operated before, but the key thing is to at least have one foot in into most of our destinations as where we were before. Numbers of sectors as well has grown 27x. Load factor is definitely up 76%, not far off from our pre-COVID levels, which is about 3 points, if I recall. Average fair is MYR 533, much upside from 2019, which is MYR 437. Ancillary performance, 53% of core ancillary revenue, in-flight meals is probably about 5%. Seat fees is 11%, baggage fees is 37%, while other items are 46%. Ancillary grew close to 100%, as more flights reactivated over the past 12 months. As I said, the RPP is sitting MYR 236 due to higher take-up and optimized commercial activities. We do expect RPP to expect to grow over 30% against 2019 levels as a lot of new initiatives are driving dynamic pricing in terms -- and optimizing our products. New product offerings, you can see and if you do fly AirAsia X, we do -- we came out with a new menu with a more robust duty-free F&B and merchandise, which will drive more take ups. Generally, the power of spending on AirAsia X is larger because the affordability on an Australian flight and an Korean flight is quite high. Next slide, review of operating expenses versus 2019. AAX, again, just to recap, we've done quite a lot since hibernation and restructuring and all that. And really, our goal is to rebuild its competitive strengths post-pandemic. And what we've done basically to -- just to keep highlighting and to remind people that what -- why our cost structure has improved is we went through a debt restructuring, the core -- sanctioned debt restructuring. We have revised lease rates, which is sharp, close to about 60%. We renegotiated all our service contracts, internal and external. We cleaned up our balance sheet and did all the punitive provisions. We rationalized our fleet to ensure that it grows in line with steady growth post-COVID. And of course, a revamped network to ensure that profitability of the routes is key. Against 2019, in 2023, we reduced close to 3x in first half '23 at MYR 600.9 million compared to MYR 1.7 billion, driven by overhauled cost structure. Lower staff costs basically in terms of streamlining manpower, lower lease expenses, as I mentioned earlier, reduced fuel and maintenance expenses on the back of overhauled operations and bolstered the reversal of provisions of doubtful debts, travel vouchers and tax loss in joint venture, et cetera. Just speaking now about TAAX. Revenue is up over 5x around MYR 352 million versus MYR 66 million. Net operating profit of MYR 34 million versus MYR 58 million last the year before -- last year, sorry, and net loss still of MYR 74 million, which is really driven by ForEx losses. Associates ASK capacity. I think the demand has been very strong and achieved a load factor of 78%, mainly the weak routes are mainly China as it started a slow burner there. A number of sectors flown up 36x, while ASK capacity up 44x. Network plan. In terms of us, I think the key thing for us is we're serving now 18 destinations in June 2023 from only 2 last year. Focus again is to build regional dominance in North Asia, Asia Pac to make sure that we remain the main carrier in the organization. Massive potential from China that has yet exploded. Load factor is still fairly strong for China at the moment in terms of FIT travel. But I think once the group gets going, I think you'll see a full explosion of that travel demand. FlyThru traffic surged about 151,000 passengers from 671 in second Q 2022. But really, those are mainly connecting routes where Indonesia, India, Australia, Thailand, Japan, reconnecting with each other. And of course, we were exploring a lot of new routes. We're still in the works. I think it's no shy that we've been mentioning about Istanbul and also Central Asia. That's something that we will come once we get all the process and systems done. Network market updates. Australia, we've [Technical Difficulty] everybody, sorry, we got cut off -- our -- flooding with people coming in, just like our share price. So -- but yes, so I apologize about that. So again, just to recut, I think we were just talking about network really, the share price. The network really in terms of Australia, we're back at pretty much most of the markets that we've flown to Sydney at 22x weekly. Japan, the crowd favorite. Generally, our flights for Japan is quite full now as we speak even during seasonality. Also Tokyo being the crowd's favorite. We're back at 18x. So Seoul being also very strong route and Busan 13 weekly flights. China, as I said, we're back in Hangzhou, Shanghai, the new Daxing Airport in Beijing. And of course, Chengdu also we started a new airport as well, which is great. Of course, India, Delhi has always been one of the first route that we started since COVID. And this Sunday, which is great news, we're going to start our first religious flight to Amritsar. This was something that we started pre-COVID days, but we stopped. But now this is something that is going to drive our Indian expansion, okay. Fleet activation overview. Currently, just for information, as I said, what is disclosed, we have 17 aircrafts in the system. We have 11 activated as of today. As we speak, we have 17 still and 14 flying. The 14 planes will fly on the first. And of course, in December, we will have 18 planes in the system and 17 flying. All these aircraft are already here is just that there are my existing planes that are waiting for MRO services. One is already in, and 2 more will go in a bit later down the road, okay. Okay. I think the key thing is about growth. This is just to tell you where we are in terms of our fleet. Of course, as I said, if you see the graph pre-COVID, we're at 24, reducing it is something that is in line with growth. We really want to be in a position where we have too many aircrafts over short term. And when COVID has happened and we stuck with inherent cost. So we've grown with the capacity now. And I think as we ramp close to about 1 to 2 aircrafts a year, for the meantime, in anticipation of our big orders in 2026, where the Airbus 330neo has come in with the XLR probably down the road. As you can see, the order book is quite considerable up to about 50 planes. Note, on the fleet growth. I think that's something that I think we will be announcing further down. But I think the first two 330neos will be coming down in 2026. Outlook for second half 2023, the key is yield-building and capacity recovery, focus on China. We expect to be close to about 27x growth weekly flights from 8x building capacity costs. The network and activation of our remaining fees that's key for me. Commercial, as I said, driving ancillary continue to do marketing plans and motion together with airasia.com super app while also increasing FlyThru. But I guess the biggest thing as well is we're working closely with our only Teleport cargo company that is driving a lot of our cargos. Cargo revenue is gaining traction, 6.7% total revenue, which is great. Cash and equity. Again, cash position is at MYR 269 million, up approximately 40% compared to the preceding quarter. That puts us in a very healthy position. And again, to highlight, shareholders' equity returned to the positive MYR 40.8 million in 1Q 2023. And of course, that has increased to MYR 96.1 million. Again, just to update the PN17 waiver application status has gone in, just waiting for Bursa as we go through any more queries. TAAX’ rehab plan remains in progress, and I expect it to complete in the next month or so from what I hear. And of course, the share profits we'll make it earlier. So that's pretty much all I have. We can go into Q&A as we speak. If anyone has questions, you can unmute. You can type it in the desk, and we'll try to reply each of it. Sorry, hold on. Jack will reply you on your questions on the chat.

Yes. So question one, why is other operating expenses positive in 2Q and in 1Q. Technically in 1Q itself, there is some provision reversal. One is for the IAAX, our succeeder -- our associate. Second is on our joint venture, which is TAAX provisions one. I think if you see back last quarter, there is a reversal of about MYR 200-odd-million. This quarter itself, you will see it's positive technically because we have done some reassessment on our travel vouchers, whereby we have based on the utilization on the issued travel vouchers. So based on that, there is some reversal of the provisions from our -- that's why because of that provision, this quarter 2 is also a positive balance for operating expenses and the reversal is about MYR 90 million. Then next question is, I understand that part of the restructuring reflect, of course, a profit sharing agreement with the air slots. Can you remind us again what exactly it is? That one is actually on the restructuring one -- that one is actually -- we will only have that calculated provided that based on our full year audited results, which will be next year is provided at our EBITDAR -- E-B-I-T-D-A-R is actually more than -- anything more than MYR 300 million. It's not really applicable to lessors, but it's actually applicable to all our creditors -- for the skin creditors at that time. So for now, this is not confirmed yet technically because we have to start to reassess and monitor. Provisions are not made yet in the book side. Then third is 2Q '19 versus 2Q '23, how is operating expenses, reducing 118% means it was positive to negative. Next, it can reduce by 100% to 0% -- correct me if I'm wrong here. This one, are you referring to the outside -- besides at least 6 months year-to-date, first half of the year. So if you were to see that first half of 2019, your total operating expense before depreciation and finance income and cost should be about MYR 1.7 billion versus current first half of 2023 is only about MYR 600 million depends on the percentage-wise, if you see on the drop, it will be more than 100%. This is mainly because of reduce in number of fleet sizes. If you look at maintenance, it's already by half. Yes. In first half 2019 is actually about MYR 300-odd-million versus current first half is actually about MYR 179 million.

Are you okay, Ahmed?

Then your next question is, sorry, remind us also how the MYR 300 million workings is done for TAAX, that is on the share of profits. So currently, what happens is that it the notes to the Bursa announcement. Currently, we are not sharing any profits on TAAX mainly because we have previously recognized -- sort of like debt losses, accumulated losses is currently about MYR 500-odd-million. So until unless TAAX share of profit percentages increased more than MYR 500 million, then in that case, we will be able to share our 49% profit. After restructuring our AirAsia X, there will be approximately about MYR 11 billion tieback reversal. And because of that 49% sharing will actually lead us to about MYR 300 million share of profits in quarter 4 estimated, yes.

The next question is from Sam, Maybank.

Thanks, Jean. Can you say the reversal of the travel vouchers in the current quarter, that's MYR 90 million, is it?

Yes, it's approximately MYR 90 million.

9-0?

Yes.

Okay. 9-0. so actually, we...

No, actually Sam, we shouldn't actually treat that as one-off adjustments because why, if you were to look at the travel vouchers, right, it's actually tricky in nature. Last time, we have actually fully written off the vouchers because at that time it was considered to be sales in advance. So technically now what we have done is that we have refunded all of these so-called sales in advance to our passengers. So it became somewhat like our sales in advance because technically how it goes is that last time due to us not flying, right, we write-off all the payables to call our liabilities, to the passengers and also to the travel agents, yes. So now every quarter, and last year itself, we have actually fully provided the write-off which is MYR 569 million. So technically, now what will happen is that on a quarterly basis, we will reassess that on the utilization of these vouchers. So technically, they are not exceptional non-tricky in nature. They are part of our operating expenses or income, if at any time it's not being utilized by the passengers.

Right. Okay. Can we ask for the excitement during the third quarter or fourth quarter, what are the fares that we are seeing?

Well, I mean, I think I can't give you much of a head. I know what you're doing, but I think what I can say is third quarter and fourth quarter is trending higher than Corona.

No question. We do have one question from Denny. Do we foresee any ForEx losses in the coming quarters?

There will be ForEx losses undeniably US dollar, if there were to be going up. Then in that case, there will be some unrealized ForEx gain or losses. But it will be slightly mitigated by our realized ForEx reason being because most of the things now currently, we are making prepayment, right? So in that case, our realized ForEx is actually usually a gain, which we will then use it to actually net off against the unrealized. So technically, if you look at this quarter itself, the MYR 32 million is actually net of realized and unrealized. So there's something that we kind of...

No question for -- yes. Daniel.

Hi, can you guys hear me?

Yes, yes, we can hear you.

Okay, good. First thing, maybe on the percentage of cargo revenue, what is the ideal percentage? Just now you mentioned is increased to 6-odd percent. And what is the ideal revenue percentage from cargo?

Well, I think we're still short of second Q -- I mean, pre-COVID levels. I mean the goal is to reach there. So let me see what I have the numbers here. So in terms of Q '19, we're actually higher in terms of percentage of cargo revenue. But I think in terms of total revenue, we're still not there yet. So we just want to grow. I don't have a number for that one.

Okay. And then I just want to make clear something else. For PN17, you guys submitted to Bursa for approval. And now it's waiting for Bursa to make further clarification. And then after that, it will be done already, is it?

We hope so. That's the idea -- we -- as I said, I think the key thing is we've already done the first round of queries that is submitted back already to Bursa. So on paper and on the technical -- on the ruling of PN17, if you look at it, we have met all the criteria of removal of us out of PN17. So it is up to Bursa to decide and come back to us. So -- but in terms of all the clarifications they want that we have provided, it's done already.

Okay. This exiting on PN17 is nothing to do with AirAsia...

No. At the moment, we are just focused on the waiver. As we come to the waiver, then once the waiver is done, we will look into what's next for AirAsia X.

Focus on the waiver, okay. And then on the TAAX, it's a whole corporate restructuring or financial restructuring that result this MYR 11 billion reversal.

It is similar. It's a financial restructuring. I don't know what you mean by financial and corporate, but the key thing is the same that we did, the cost-driven exercise, where they go for a percentage haircut. And basically, then they have to write back the numbers.

Okay, I see. Back on this, okay, I notice MYR 50-odd-million reversal in other expenses in this quarter, MYR 50-odd-million. But this time you guided MYR 90 million reversal of this travel vouchers adjustment. So does it 'mean that the other expenses on the reversal, it will be roughly MYR 40 million loss expenses, I mean.

Yes. If you were to actually take away this reversal, then in that case, the operating expenses will be about MYR 40-odd-million.

I see. Again, how much was this reversal in the first quarter, again?

This reversal in first quarter. No, first quarter is mainly -- first quarter reversal was mainly on the reversal of provision of doubtful debts from TAAX and also reversal of -- provision for additional loss of IAAX. That total is about 200 -- yes, MYR 250 million.

I mean this reversal in order has only happened this quarter. You guys...

As we mentioned just now for the vouchers, there will be -- every quarter will be -- it will be of tricky nature.

Yes, it will be every quarter, but -- every quarter, but you only recognize this in the second quarter, not in the first quarter.

Yes. Second quarter, we have -- first quarter is not definitely good. First quarter is of -- for our assessment because technically it's really 1 year past since we have issued these vouchers. So we have done that on a quarterly basis. So quarter 1 figure...

Okay. Just now you mentioned that the full reversal, the full amount of the voucher was MYR 169 million, is it?

No, I think you misunderstood it. So initially, in 2022, when the vouchers was initially so-called issued, we did a provision for travel vouchers of about MYR 569 million.

MYR 169 million -- MYR 569 million...

MYR 569 million.

Yes, MYR 569 million, of which then after that because it's already 1 year. So we start to then reassess whether these MYR 569 million technically, they are somewhat like still in advance, whereby passengers are allowed to actually utilize them now since we are fully operational, right? That's why it's tricky in nature and not one-off exceptional items, technically because now we were based on whatever that is issued and then make the provision. And on top of that, we will now reassess whether what we have issued, does the passengers apply and use it or not. So if you start using it, yes, the utilization rates will actually then determine the sufficiency of our provision on a quarterly basis. So technically in quarter 2 itself we will reverse that.

This travel voucher's validity is, how many years, 3 years?

5 Years...

5 years from...

Yes, 5 years from '22.

Until 2027, then?

Yes.

End of 2027.

Yes. Quarter 2 of 2027.

2Q 2027. Okay. And then I think if I compare your first quarter and second quarter, I noticed that there is some drastic increase in lease charges and also on the maintenance charges and can you...

The lease charges basically, as we pick more planes in, there is increase of those leases. So -- and the other one is basically.

The maintenance is also there.

The maintenance as well and we had to pay for the RTS and all that as such.

Maintenance...

Because the increase in the fee in that case, the maintenance and overhauled also increase.

Yes, maintenance of that from MYR 60-odd million and MYR 150 million, MYR 160 million. The fleet only increased by about 3 aircraft, right, is that mistaken?

Yes. Because this time around, we did a reassessment on the maintenance and accruals to see whether a sufficiency of the provisions. And also these 3 aircraft were actually then we have to add on is that one is deposits, right? We have to start making the provisions. And 2 is also on the engines. That's why in that case, you will see the costs actually going up. Also, based on the flight.

Okay. So am I supposed to use the MYR 116 million per quarter as running right now or are we expecting even higher going forward?

We used about MYR 90 million.

MYR 90 million?

Yes.

So you are expecting this quarter to drop to MYR 90 million from MYR 116 million?

If we don't have any additional aircraft currently, then yes. But with this now, you'll see the fleet growth from 17 to 18. With 18, then will be not be MYR 90 million.

Okay. So we are roughly looking at MYR 110 million then with this additional aircraft.

Yes.

Okay. How about your aircraft lease expenses?

Aircraft lease expenses technically, it will be about -- based on utilization costs per month. I mean per quarter it will be about 12.

Per quarter about 12. But this quarter, you recorded 21.5

There's some clawback.

Clawback from first quarter you mean?

Yes.

I see. So quarterly basis, we are looking at 12 and then maintenance changes, we are looking at MYR 110 million.

MYR 90 million.

MYR 90 million, but you mentioned...

Yes. Quarter 3 will be MYR 90 million. If there's an additional fleet, then it will be approximately MYR 114 million, MYR 115 million.

And then, okay, these user charges drop from MYR 66 to MYR 40, technically, you have an increasing number of flights audience, your user charges are supposed to be higher on Q-on-Q basis.

Technically, there is some adjustments that we have made this quarter. So if you were to see based on user charges quarter-to-quarter basis as long as there is increase in number of passengers, then user charges are supposed to go up. But this one, there are some reversals that we have made here. These are mainly for the FI charges. We've actually started to recovery seen, yes, for this quarter, over charge.

From the provider.

Yes, we have seen some recovery.

What was it from the previous one -- Previous period?

Last year, previous periods.

So going, we should be expecting the user charges on a use basis, which should be even higher than this MYR 65 million.

Yes. It should be about the same as quarter 1.

I see. Ben, can I talk with you. I saw someone last night mentioned that you guys want to relook into a stock short haul, is it?

No. Basically, our focus has always been medium-haul routes. But basically on some of the routes that is high density, short haul and AirAsia cannot get slots anymore and the airports are only accepting wide bodies, we fly those. So basically, the only 2 routes that we fly short haul is Bali. As you know, AirAsia load factor for Bali is close to 100%, while in Bangkok as well, the load factor is very high. But for Bangkok because Don Mueang is full, we fly to Suvarnabhumi and link up with TAAX. TAAX is flying out to Suvarnabhumi as well. So basically, the key focus is to bring extra traffic into Bangkok. Secondly, as well is to bring palletized cargo on the wide body to wide body as TAAX goes out to other destinations.

We have a question from Zingling of Tribune Capital. Based on AAX previous experience, is second quarter usually softer season.

Yes. So I mean I think this is quite clear. I think we've indicated in the first quarter that second quarter will be a softer season, and third quarter will be slightly stronger. But generally, the seasonality works as first and fourth, it's always the strongest. And then second, being the -- probably the weakest and we see a slight improvement. That's always been the case. The fare, no, really. I think it's just more due to driving load factors up, as you know, people are very price sensitive in this region. So by offering lower fares, you stimulate people to fly during nonpeak, which is what we've seen, there's no irrational price competition out there. So far, it's been okay. Any more questions guys, I'll give a few more seconds for you to put your hands up or unmute. Not seconds, a minute? We're good.

Daniel. just want to check [indiscernible] prepayment and then that's how you have a realized ForEx gain. Can you define one? Is this how the...

Some of the stations and some of the other operations because we were going back into the markets and the credit was strong, we had to prepay in upfront. So therefore, once you go back to the quarter, this ones, basically, we actually paid when the currency was very strong. And now as it got weaker, there's a ForEx gain for us.

I see. If it was not prepayment for all these expenses.

Correct. For example, airports, we have to prepay ground handling, we have to prepay fuel, we have to prepay -- so all this, actually, it's a blessing in disguise there.

Any update on Indonesia operations, Indonesia AirAsia X?

Closed already. We're basically just slowly winding it up.

And what about the TAAX issue?

That's ongoing. So I mean, of course, they will review it. As I said, I think we provided it in our accounts as advised by the auditors, which we are -- we don't feel it's a strong case. But the key thing is, if there has never been a history in Indonesian law where the tax man comes after foreign entity. So but whatever it is, we have to leave it there until whatever. But so far, it's just in the process of winding down. What's the outlook and average fare currently? The average fare is currently is disclosed in your quarterly number second Q, which if I recall, is MYR 533. So as I said earlier, we are trending higher for third and fourth. So to answer your question, moving forward, yes, it would be above MYR 500.

We have a question from Peter.

I just got one question on one of the comments during this presentation just now. I think you mentioned that in some of those high demand slots, it is strategy to sort of put your foot in right now, like even though capacity is not ramping up so far. So maybe could you give us some color...

No. That's not what I meant. That's not what I meant. What I meant is rather than focus on individual markets and minimizing your network, I'll rather put in one footing into a destination and actually have our network already going everywhere. For example, Sydney, pre-COVID, we used to fly twice a day, 14 times a week. I don't need to do that. And first, so I did basically fly 7 times firstly, same as well as Japan. We didn't go as aggressive as where we used to be. China we never grew it. So basically, I just want to make sure that we fly in now so that at least I don't have to wait 1 or 2 years and potentially by then, I worry that potentially the slots may go away. So that's the whole idea of it. But as more planes come in, we will grow that market back to pre-COVID levels.

Okay. Got it. Yes. So right now, the constraint on the bottleneck, is it the availability of slots or actually, it is the fleet...

It's the availability of fleets. That's a tough one. I think slots so far, we haven't seen any issues. Some markets may be. But so far, on the D7 side, we haven't had any issues gaining slots. So fingers-crossed.

And I don't think we have any more questions.

Okay. So guys, I think thanks a lot for this. As you can see, I think we're trending in the right way. Don't worry too much. I mean, second quarter is still fairly strong, loaded strong, fare is slightly down. But I think the good thing is third quarter and fourth quarter, we will see a much better position as it is. So hopefully, in the second -- in the third quarter, when we have the next call, we have good news about PN17. But even that -- even before that, you'll see that on announcements. But again, thanks for all your support and your faith. We're riding in the right direction. So thanks again for all your support, and we'll catch up soon. All right. Take care.