Currency Exchange International, Corp. (CXI) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by, and welcome to the Currency Exchange International 2020 Q2 Financial Results Conference Call. [Operator Instructions] I would now like to hand the conference over to your first speaker today, Bill Mitoulas. Thank you. Please go ahead, sir.

Thank you, Stephanie, and good morning, everyone. Welcome to the Currency Exchange International second quarter conference call to discuss the financial results for the 3- and 6-month period ended April 30, 2020. With us today are President and CEO, Randolph Pinna; and Chief Financial Officer, Stephen Fitzpatrick. Stephen will begin with his brief comments on the quarter and the year-to-date results, followed by his latest perspective on the company's operations. Randolph will then comment on the bank performance and business activities, after which we'll open it up for your questions. Today's conference call is open to shareholders, prospective shareholders, members of the investment community, including the media. For those of you who may happen to leave our call before its conclusion, please be advised that this conference call will be recorded and then uploaded to CXI's Investor Relations website page, along with the financial statements and MD&A. Please note that this conference call will be -- will include forward-looking information, which is based on a number of assumptions, and actual results could differ materially. Please refer to our financial statements and MD&A reports for more information about the factors that could cause these different results and the assumptions that we have made. With that, I'll turn the call over to Stephen. Stephen, go ahead.

Thanks, Bill, and thank you, everyone, for joining today. So as usual, I'll give you an overview of the results for the most recently completed quarter, which is our second quarter and for the year-to-date. I am going to take a little bit longer than I normally do. It's an understatement to say we're operating in unusual times, even unprecedented times. And so I'd like to take a few minutes longer just to provide you with a little more context and color on the results. So our results are presented in U.S. dollars unless I say otherwise. And as we've stated in the past, the Currency Exchange business is typically seasonal and coincides with the peak spring and summer travel seasons in North America. So usually, the first and second quarters are the slowest and the third and fourth quarters much stronger. However, this is anything but a typical year and like many businesses, we have been significantly impacted by the COVID-19 pandemic. So looking first at Q2 performance, revenue decreased 33% in Q2 2020 to $6.3 million compared to $9.5 million a year ago in the same quarter. Entering the second quarter, we were very pleased with the financial performance of the business. It had continued the trend of improvement in operating leverage that began in late fiscal 2019 and coupled with strong revenue growth, had put us on a trajectory that we had expected would lead to significant improvement and profitability this year. Unfortunately, that path has been delayed because of the unprecedented government-imposed shutdowns that began in mid-March in an effort to contain the pandemic. And those shutdowns included travel restrictions and the closure of nonessential businesses in most of the markets where we operate. While CXI and EBC are deemed in the central business, most of our retail branches reside in shopping malls or in other businesses that had to close. And as a result, on or around March 24, CXI closed all of our retail locations. In addition, many of CXI's and EBC's customers closed or significantly scaled back their operations. The impact of this was most dramatic in the banknote segment of our business, which declined $3.1 million or 36% in Q2 2020 compared to Q2 2019. Payments revenue was relatively flat in Q2, but as a share of revenue, it grew to 12% compared to 8% a year ago. This is indicative of the global payments have been less impacted by the shutdowns and lack of consumer mobility than the banknote segment, which validates our long-term strategic objective of diversifying our business by building the payment set business. One of the key enablers in support of growing this segment has been the introduction of a new product in Q2, FX Forwards through EBC. After a successful pilot, we launched the product in March or March 12. And despite the challenges posed by the pandemic, we closed about 40 contracts in the quarter that were worth approximately CAD 10 million in trading volume. Turning to expenses. Total operating expenses were $8.6 million in Q2 compared with $8.4 million in Q2 2019. However, making a comparison requires an understanding of certain nonrecurring items and the impact of the adoption of IFRS 16. There's one item, obviously, that stands out, which is a bad debt expense of approximately USD 1 million. A bad debt is really an anomaly for us, and our customer base is predominantly comprised of financial institutions and money service businesses with whom our credit risk is low. That's really limited to bulk currency trades with a settlement cycle of 24 to 48 hours. However, one of our wholesale customers filed for bankruptcy on April 29 without having settled an outstanding trade balance of $1 million with us. We have filed a claim. There's a reasonable possibility we feel that we will recover a portion of the receivable. But due to the uncertainty, we chose to record a provision for the entire amount at this time. The matter is before the court. So we're not at liberty to comment any further on it at this point. Secondly, in addition to that loss, there was approximately $0.2 million -- $200,000 in incremental foreign exchange gains compared to the prior year. This was the result of significant volatility during the quarter on foreign currency balances that were translated at end-of-period rates. Lastly, the appearance of a reduction in rent expense as a result of the adoption of IFRS 16 on November 1 using a modified retrospective approach, which is accounting language for we didn't restate the prior year figures. Had we not adopted IFRS 16, rent expense would have been relatively flat compared to the prior year. So normalizing for the nonrecurring bad debt expense and the foreign exchange gains as well as the IFRS 16 adoption, adjusted operating expenses for Q2 2020 are $8.5 million, which is a 1.3% increase compared to a year ago. As a result of the sharp decline in revenue, management initiated a number of cost reduction actions that included eliminating 10 full-time and 9 part-time positions in operations and in our retail division, in addition to furloughing 167 of our employees, primarily in retail. Subsequent to April 30, we've eliminated an additional 22 positions. Outside of personnel-related costs, there were several categories in which we experienced a year-over-year decline in the quarter. Those included professional fees as we continue to manage that area tightly; travel and entertainment; and shipping costs, which are consistent with the reduction in revenue. In contrast, there are categories in which we've increased -- experienced increases such as bank charges, which is reflective of incremental transaction volume in our payments business and in software, which reflects additional tools that we've procured in the past year to support business functions, including treasury, compliance, communications and collaboration as well as the platform we acquired from eZforex in September of 2019. The organization -- we've also increased our investment in technology to safeguard data and cyber breaches. So the net operating loss or EBITDA for the quarter was $2.3 million as a result of the decline in revenue, primarily associated with COVID 19, and it compares to an operating profit of $1.1 million in Q2 last year. Interest on lease liabilities, coupled with depreciation of right-of-use assets, totaling $600,000, which is related to the adoption of IFRS 16, that led to a loss before income tax of $3.4 million for the quarter compared to a profit before tax of $700,000 a year ago. The net loss for the quarter ending April 3, 2020, after tax, was $2.9 million compared to $0.5 million in Q2 a year ago. It would have been $2.5 million, the loss would have been, but we chose not to record a $400,000 income tax benefit that's associated with current losses in our Canadian Bank subsidiary. Given the uncertainty in the current economic environment, we chose to defer recognition until we have a clearer view of the horizon for recovery. On a basic and fully diluted basis, these earnings translated into a loss of $0.46 per share in Q2 2020 versus earnings of $0.08 in the prior year. I'll turn briefly to the year-to-date performance. Revenue for the 6 months ended April 30, 2020, was $16.2 million, a decrease of 9.6% from the same period of last year. Strong growth in the first 4 quarters of fiscal 2020 was not enough to offset the declines in March and April related to the COVID-19 shutdowns. Our core banknote and retail business declined 12% in the first 6 months of fiscal 2020 compared to the prior year. On the other hand, payments revenue increased 25% and a strong growth in Q1 2020 more than offset the weakness in the second quarter. Payments increased to 10% of our total revenue compared to 7% in the first half of 2019. Operating expenses in the 6 months -- first 6 months of the year were $17.4 million, increase -- an increase of 5% over the same period last year, adjusted to remove the impact of the IFRS 16 adoption as well as debt expense and foreign exchange gains, operating expenses were $17.7 million, an increase of $1.1 million or 7% on a comparable basis. The biggest driver of that increase year-over-year was personnel-related costs. Salaries and benefits increased $700,000 on a year-over-year basis, and stock-based compensation was up by $200,000. The overall employment base year-over-year grew almost 10% entering Q2 2020. And I mentioned earlier that we made -- we had terminations and furloughs in -- at -- toward the end of the quarter. Those terminations and furloughs came too late in the period to have a meaningful impact on the results for the second quarter, but those results will be reflected in the third quarter, those effects. Software was up by $200,000 in the 6 months compared to the same period a year ago for the same reasons that I mentioned a few minutes ago. So outside of these items, most other variances offset each other. Reductions in shipping cost due to lower banknote revenue, for example, was offset by increased bank charges associated with payment volume. So for the first 6 months, the net operating loss was $1.2 million compared with a profit of $1.4 million a year ago. After interest expense and depreciation of right-of-use assets of $1.2 million in the first half compared to 0 in the same period of 2019, the net loss before tax for the 6 months ended April 30 was $3.4 million, and the net loss after tax was $2.8 million compares to a profit before tax of $0.4 million or $400,000 a year ago and a net profit of $300,000. On a per share basis, the loss for the 6 months ended April 30 is $0.43 per share on both the basic and fully diluted basis versus earnings of $0.05 per share a year ago. In terms of our balance sheet, we continue -- we remain very solid and well-capitalized with $63 million in equity at April 30, down from $66 million at year-end due to the impact of the loss in the first half for the year. Total assets were $99 million versus $83 million at year-end, a 19% increase. Liquidity is strong as cash comprises 80% of our assets with just under $80 million in cash at April 30, up from $63 million at October 31, 2019. Accounts receivable decreased by $8 million as there were fewer trades associated with the reduced volumes around the quarter end. Total liabilities increased by approximately $20 million because of -- for 3 reasons. The write-up of lease liabilities due to the adoption of IFRS 16, which accounted for $6 million; increase in the line of credit by approximately $18 million as we drew it down at the beginning of the onset of the pandemic in March to ensure sufficient liquidity during this period of uncertainty; and we applied for and received a loan of $2.4 million from the small business administration in the U.S. government. Giveable loan, or as referred to as the Paycheck Protection Program under the CARES Act, which I'm sure you're all familiar with, we met all of the eligibility criteria, and we were approved for the loan. However, subsequent to the receipt of the loan, the SBA provided additional information and guidance that public companies will be measured against a different standard for forgiveness compared to that of private corporations. So while we did everything in good faith and with the best of intentions and consistent with the criteria for the loan, we decided that we would repay it in full, and we did that on May 14, which extinguished loan from our balance sheet. So that will be gone in the next quarter when you see the financials. In Canada, though, we do qualify for the Canada Emergency Wage Subsidy, or CEWS, and we estimate that we'll receive approximately CAD 700,000 in fiscal 2020, assuming it stops in August. One thing I do want to draw your attention to that in March and April when the shutdown took full effect in North America, we undertook an initiative to significantly reduce our inventories and build our cash reserves. Our total cash balances increased from $71.3 million on January 31 to $79.6 million on April 30. However, cash and bank accounts increased from $9.7 to $54.3 million. So we've placed the company in a very strong position liquidity wise, and with its capital base, we feel the company is very well positioned to buffer itself against the effects, not only the effects of the pandemic for the foreseeable future, but also to seek growth opportunities as they arise. In conclusion, I'd just like to say that it's very difficult, it's not possible really, to reliably estimate the duration and severity of the pandemic as well as its impact on the financial position of our business and the results in future periods. We are taking a very cautious view around the economic recovery and particularly its impact on the travel and tourism sector. And we're in the process of developing a new 3-year plan that will have multiple scenarios that will help and that will support our planning. But our objective is to ensure that the long-term sustainability of the organization is in place. And at the same time, as I mentioned a minute ago, we will be seeking growth opportunities. So that concludes my remarks. And at this point, I'll turn it over to Randolph for further comments.

Great. Thank you. Thank you, Stephen. Thank you, everybody, for joining, especially those out West who are up early. Thank you. As I usually do, I'd like to start with Exchange Bank of Canada. As you saw, it was a very challenging quarter. We did have a transaction that went sour, and that's a big disappointment. We are on top of this. And as Stephen said, the courts are involved. And so that's all, really, what we can say at this stage. The positive developments is that we are having a Senior Vice President of Sales start on Monday. He's a very experienced banker in foreign exchange with his focus on payments -- corporate payments for small- to medium-sized corporations. And so while it's unfortunate to see that over the last few months we've let go about 40 people and furloughed a whole slew, we are still making positive strategic choices for the long-term for the business and us shareholders. And one of those developments is this, that the bank definitely needed assistance with sales and marketing and leadership in Exchange Bank of Canada, and this is a focus of the Board and myself. And so this individual will be beginning next week. The bank is also making great progress with the Federal Reserve. While we're not in any position to say it's coming this soon, but it is making good progress. We have regular communications with them, and we're very pleased with our -- the relationship we've started already with them. Also, I know everybody has on their mind about what's happening in Montréal. We are working. We're meeting regularly with -- frequently with the people that need to be involved to eventually get an approval. And so while I still don't have a time, we do -- are feeling positive. The business -- bank has ensured the proper structure, the proper systems and so we are optimistic on this. And we will continue to work forward until this transaction is completed ideally. So moving on to CXI. We have a lot to talk about. One, the retail area is a big part of our business, as you know. I'm happy to report that, I think of -- as of yesterday, there was probably 17 of our stores opened. I also do need to say that we used to have 46. We are intending not to open 5 or 6 for sure. And our landlords have been very accommodating and understanding. So like at Sawgrass Mills Mall and Florida Mall where we had 2 booths because the mall is that big, we are just shrinking down to 1 booth. And then there's some other noncore markets that, while they were profitable pre-virus, we do anticipate that travel will take a long time to get back to levels of where they kind of were. And so with that being said, we are erring on the side of caution to reduce costs and reshape our business so that we're ready to take advantage of the opportunities that are presenting themselves. Because as you may have heard, in the marketplace, there has been a lot of changes, people going out of business, filing bankruptcy. One of the largest in the world, if not the largest nonbank foreign exchange provider, has been having serious financial trouble, their owner is having serious financial trouble and this is causing a lot of waves with their established clients and the stability of CXI with its reputation has got our pipeline at CXI extremely full. While a lot of the implementations have slowed because bank branches have been closed, just like our own stores were closed, there are still some implementations in the next quarter. We are excited to see that the summer is here, that the lockdown is being lifted where I am here at head office in Orlando. Walt -- the Universal Studios has already opened, SeaWorld opens next week and Walt Disney World opens on July 11. And we are starting to see all the hotels reopen and believe it or not, tourists are outcoming. Unfortunately, the international tourists are still lockdown in Canada, in London, which U.K. and Canada are 2 biggest incoming customers. So we're looking forward to them being allowed to leave. And so with retail, one product that we have added was called Currency Price Protection that launched on June 1. And CPP was something that we inherited eZforex. eZforex, while I mentioned it is trending above the estimation that we have pre-virus, but even with the virus, it still is doing some good volume, and we're very pleased with that acquisition. But one asset that was part of that transaction was the knowledge that the proprietor, who's still working for us, had developed which was this Currency Price Protection, which is basically similar to an insurance, but it's not an insurance. So you don’t get 100% of your money back if you change your ticket or you can't fly. What you do is you basically get something like spot. So it's almost, most of your money back. But by doing it this way, it eliminated any hedging risks around honoring an exchange rate. So it -- by them paying a $5 fee, it allows them the safety of not having to pay a big retail premium if they need to return their currencies. This had a very positive effect on the average transaction size. So at eZforex, who has a very similar model, they service financial institutions, credit unions, their transaction size, it was normally near $900. And our CXI retail, it's closer to around $400. In the retail bank branches, it's a little closer to $500, but it's almost double with CPP being offered because a lot of people are always not sure how much to take. So for an extra $5 fee, they can buy a little extra and be sure that if they don't use it all, they come back and they're not going to get dinged on the buy rate on the backs coming back. So that usually allows them to buy larger transactions. And what we've seen in the past was people ended up spending it. And so the return rate was less than 10%. Obviously, in this year, we would anticipate -- our forecast anticipates that it could be 20% people returning, even still it's profitable as a stand-alone fee as well as the fact that if we see an increase from our average of $400 to $500 or $600 company-wide, this could have a very positive effect. It is only right now available in our own retail stores. We are piloting it there for the summer. And based on that success, we do intend to offer this to our financial institutions just as eZforex does. And the eZforex still does offer it through its relationships. As you know, that subsidiary is operating as a wholly owned subsidiary and is managed separately, although it is integrated into the CXI system. The eZforex customers are being migrated over to CXI software, CEIFX, although we are not being aggressive with that because we -- customer satisfaction has always been a core trait of the CXI Group. And so there are a few customers, especially 1 or 2 very long-standing significant customers, that prefer to just maintain the relationship as they had. And so we are not going to use any baseball bat or anything to get people to migrate over. But we do have a goal to migrate everybody, or at least almost everybody, within the year, and that migration is slowly occurring each month. Again, we're taking priority over new customers that we are winning from our competitors. And those implementations do take first stage before a switching of an easy to CEIFX. The wholesale business, as I've told you, is doing well in normal times. It is down as you know. But again, it is starting to pick back up. We are looking at other products that we can maybe offer to have a wider offering in the retail environment as well as possibly eventually in the wholesale environment. The other focus is -- that we're doing at CXI is cybersecurity. We have recognized increased efforts since the crisis started of phishing mails and attempts on our system. So we continue to monitor, we continue to have accelerated trainings with all our staff and most importantly, the systems that Paul [ leads ] our IT team and his -- and Thomas in the hardware area, they've been working on all kinds of improvements in firewalls and other investments as you've seen because this is a top focus to ensure that our own business as well as our customers are not impacted by any cybersecurity events through the CEIFX software. I think I've covered everything that I had on my list here. So I'm very happy to open up the floor to any questions. Stephanie?

[Operator Instructions]

Robin Cornwell.

Your first question comes from Robin.

Well, I guess I have a few questions, but I think what would be on the minds of most investors right now is what we would call in some emerging businesses burn rate. Because of the lost potential revenue right now, is there some kind of number that you can give us as to -- I know this is difficult, but going forward a month or 2 or -- sorry, a quarter or 2, what kind of burn rate -- obviously, you had the loss -- the bad debt this quarter. Hopefully, there's no more of that. But can you give us an idea of what the impact will be of your further cuts and that as to what might -- we might be looking at if the revenues stay at current levels?

Do you mean in terms of cash? [indiscernible] you mean in terms of cash?

No, in terms -- I know you can't forecast earnings, but for example, the burn rate net of bad debt would be maybe $2 million per quarter, but it was only for half the quarter. So -- that your revenue volumes were lower, severely lower. So if they stay severely lower, does your burn rate -- do you have contingencies to reduce that burn rate?

Yes. So it's currently about $800,000 a month. That's where it is currently. And that's without us taking any further mitigation. We're in the process of those steps. Our ability to impact 2020 at this point, just given the severity of what's happened, is somewhat limited, but we're really focusing on positioning ourselves for 2021 and beyond. So the current burn rate is around $800,000. That would be roughly what it was in April, but it's lower than that now. [ So as a con, ] that's what it was in April.

Okay. And it's lower than that now. Okay. That's extremely...

There may be in the third quarter -- this next quarter coming, there may be some onetime charges associated with the reduction of the workforce because in states like California or places like Canada, there is -- it can be expensive to exit a relationship. But with that -- without that being there, I'm comfortable with what Stephen has said.

Okay. That's extremely helpful. And so one more question before I get into a different vein. The payments -- quarter-over-quarter, the payments were down a little bit, but the payments -- how sensitive are the payments -- your payments business and the -- your Forwards business now to this COVID pandemic? Is it -- can you increase revenues? Or is it -- are customers sort of just laying low?

Do you want me to answer that first, Randolph?

You can. Go ahead.

Yes. So we really -- what's interesting between the 2 businesses, Robin, is that the banknote business is really driven by travel, international travel to be specific, and the payments business is driven by economic factors. And what makes this pandemic situation unique is that really both are at play. But the impact on global trade, I guess, is significantly lower than it is on global travel. So we do actually feel like there is potential for that revenue -- for the payments business to be stable and to grow. As Randolph mentioned, we're hiring, it's about to start on Monday, a new SVP of sales whose background is payments, expertise is in payments. So we -- what this has all -- has pointed out to us is that payments revenues a good source of diversification in a scenario like this because they're less sensitive, less volatile than the banknote business is in this sort of circumstances. So there may be a bit of a falloff in payments, but not anything to the degree that we've seen in banknotes, and our expectation is that we should be able to keep it stable.

Okay. On the same note, the potential Montréal acquisition, payments business. Has there been any deterioration of the acquisition? Have they had any material deterioration in their business?

Overall, no.

Actually, when I talked to the...

Yes, go ahead.

When I talked to the -- sorry, when I talked to the CEO just recently, he actually reported a record March in his whole career and others in the industry had said the same. And now that was March, not April. March was actually increased activity due to people needing to send money to support other people. April, he did say is a little softer. Some of his clients are in the restaurant business. They import, let's say, Italian wines or French wines. And so there is a section of that customer book that will be depressed because, obviously, the restaurants in Montréal area and Québec area were -- have been closed for a couple of months and so there is a short-term cut. But overall, some of these bigger customers that are more commercial are -- have not seen any impact whatsoever. So I think that will be the case for the entire payment business. The majority of the payments are usually obligations that need to be paid every month, regardless of how many consumers walk through that business' store and so that business will stay more stable. And we are anticipating growth because we are very focused as we have been before and now more than ever on growing our payments business and taking advantage of the opportunities because there was a large foreign exchange provider for corporations that went bankrupt out in D.C. and that has caused -- opened up a lot of that -- those customers looking for a more stable vendor that was not any service business. And so we do anticipate that our payment business will continue to grow. And as our cash businesses as our customers are starting to come back online in the U.S., and we finally heard one of our bigger customers in Ontario, Canada is also going to be opening a few of their stores at the end of the month because the malls are opening again in Canada. And so we're actually starting to see activity where people are buying currencies or restock their tills. And so we remain optimistic for an okay summer. I won't say it will never be a great summer, but it -- we are hopeful for a stronger summer, but payments is less cyclical than the cash.

The duty-free stores progress, is it continuing? Or is it on hold?

Well, unfortunately, yes, it's on the hold. As you know, the border is closed. So unfortunately, most of their stores closed also, they -- the [ Buffalo store, ] there's 2 or 3 that are reopening as we speak. But they did the Phase 2 and Phase 3, it was paused, not because of any problem with our relationship, it's just that they've been hit, I think, even harder than us because their customers are all foreigners. And then the fact that they're on the border, and the border is closed, they are really impacted. And so the CEO and their senior management team had paused, but we were just talking to them last week, and it looks as if Phase 3 will come before Phase 2, which is the Mexican border and then the Phase 2 is with the other locations they have and that is less -- that's not a priority. The Mexican border is still open, and so that is likely to start happening this summer.

Okay. So the Canadian tourist -- once that Canadian border gets open, it's quite possible there's a lot of pent-up demand to get across the border into the U.S. And vice versa, I would assume that Americans would be interested in taking advantage of the Canadian dollar being weak and getting out driving around. So I guess that's a possibility.

Absolute -- I know there's a lot in Canada that are really enjoying being locked up at home. But I, personally, and a lot of people I know are anxious. I haven't been to Canada for 3 months because right now it's a mandatory lockdown in my condo, and I can't do that. So I'm unfortunately, just staying put here at head office in Orlando, and I am not at my home. I'm in the office because I work better at my office, and we are deemed essential, and right now we're -- Central Florida is open, and so we are trying to drive the ship forward. And yes, we absolutely look forward to the border opening. We're very hopeful that the 2 governments have the courage to stick to that date that they're saying, I think it's next week that they're going to make a decision.

Okay. And I only have -- sorry for dominating, but I only have one more question, which I think is rather important. That is with some of your competitors weakening in their status. So 2 parts of the question is, one is you talked about repositioning your business strategy and the second part is how you would take advantage of competitors either going out of business, you either acquiring the competitor or to acquiring their business. So it's kind of a 2-part question.

So we're -- we -- while the mergers and acquisitions have always been a part of the long-term strategy of the business, we have put our pens down for any acquisition at this stage because to pay a premium for a business in this environment is not wise. We are actually talking about just taking over opportunities at a reduced price. Luckily, we have -- the big competitor that we have, we have shared landlords. And we've been very good with our landlord in letting them know our plan, how we went and told them that we're not paying for rent for the month that the mall is closed, and we've worked through that. And so while some of them we just instead agreed to tack on 2 more months at the end where we can stay still 2 more months. So we still got the free rent. So -- but we came with a very clear plan. And the fact that we have a clear plan and that the plan means that we're going to reopen and be in the law for years, this has been well received. And so as part of that, since the other businesses look -- needing to get out of locations, we may -- you may -- while you see us shutting some retail down, you may see us actually opening some other retail. So for example, down in South Florida, we closed one of our stores, but there's another jewel of that competitor that is likely to be available. And so we wouldn't pay any premium. We would move in and just take over the rent. But again, we're telling the landlord that the rents of the past, at least for the next 6 to 8 months, have to get out of their heads because this is a new time and we're in currency exchange. So we'll see how that goes. But that's -- did that give you the color that -- what I meant? We are -- there are some very good opportunities. We do believe the world, by '21, or at least by '22 what the Canadian government thinks, sooner or later will rebound, and these are key opportunities that are truly valuable. And so we will go through these opportunities very carefully and take advantage of those that we think are long -- are valuable long-term for us.

[Operator instructions] There are no additional questions at this time.

Great. Okay. Well, thank you, everybody, for your support. If you have a question that comes afterwards, as you know, just reach out to Bill, Stephen or myself. If we can, we'll give you an answer. And again, thank you for being on the call and for all of your support. Have a good day.

Thank you. This concludes today's conference call. You may now disconnect.