Global Crossing Airlines Group Inc. (JET) Earnings Call Transcript & Summary

All right. People are being admitted, but we are going to get underway. Thanks to those of you, and we've got a large number of sign-ups today for attending this webinar. Obviously, a new face on this webinar, I'm Grant Howard, President of the Howard Group. And a number of you are familiar from past webinars with Ryan Goepel, who is also now President as well as CFO and Christopher Jamroz, who is the new Executive Chairman of Global Crossing Airlines. As everyone knows, there was a recent management change. So a good way to start. I think even though a number of you are familiar with Ryan, in particular, is you may not fully appreciate the depth of his experience and certainly is assuming the President role as well for Global X. And Chris' extensive experience, who is now Executive Chairman, so I'm going to ask both gentlemen to kick this off by providing a little bit of bio on themselves just to help out the attendees, and there are a number of them here. And then we're going to get into the year-end financial results presentation. And on that point gentlemen. Congratulations on another record revenue year. So with that, Ryan, I am going to hand it over to you and to Chris.

Thank you very much, Grant. Nice to meet everyone, and thank you for such interest and the time you guys taking into learning more about our story. I'm Chris Jamroz, I'm Executive Chairman of Global Crossing Airlines. I am a serial logistics entrepreneur. I run now nine logistics platforms across all modes of supply chain, including two Part 135 airlines, including the largest one in the country, [indiscernible] as well as Part 121 and 135 USA jets. I've completed 7 successful exits for the shareholder teams and management groups over that time of those 9 platforms. The remaining 2 are still under my purview with the Global Crossing being the latest addition to my portfolio. I'm very excited about the operation. I've led the transformative investment into the airline precertification in 2021 which makes me, I think, the person who wrote the biggest equity check to date. I don't -- I'm not the largest shareholder, but given the valuation that we entered into, I think I wrote the largest equity check, which makes me a very vested shareholder and a stakeholder in success of the business. I'm very excited to walk you through with the help of Ryan, who is President and extremely well deserved, and I want to take the time to congratulate Ryan because he already has been employee #2 of the business and has become an instrumental force in helping us not only through the certification period, but through start-up and a full rollout operational and otherwise, of the business, and that gives us a fantastic foundation for success that we expect to log in, in this year and beyond. So I'm going to seek the floor and give the microphone to Ryan, but again, I cannot tell you how excited I am to be here. I've obviously a long-term investor and the Board observer and a board member and now Executive Chairman, and I am very, very greatful for your interest and time. Ryan?

Right. Thanks, Chris. Again, my name is Ryan Goepel. I was one of the first people hired back in February 2020. So I was here when I was just an empty shell and basically a Power Point presentation. I've had the honor of working through with the team that we've gathered here over the last almost 4 years now, growing it to what we've grown it to today. Prior to this, I had worked with an airline in Canada, doing a kind of a similar turnaround, a turnaround of that going from charter 2 scheduled service for a sort of both sides. And then before that, I've had experience with the Burger King IPO, working with oil and gas companies growing down from $300 million to $3 billion. I have done multiple fundraisings for some of the larger companies such as Halliburton and Schlumberger. So again, I think a lot of those experiences have had, whether it's been in construction or oilfield services or in other airlines, has served me really, really well during the last 4 years. I'm personally super excited about what we've got and what we've created, more excited about the team we have in place and the plans we have going forward for the rest of the year. So with that, I think I can go through the disclosure, and then do you want to do the introduction.

Absolutely.

Standard disclosure language with all public presentations, the disclaimer language for forward-looking statements. I think many people have seen these before, these have been in most of our -- all of our presentations before. I think looking through to -- do you want to just go through in the financial metrics? Or do you want to...

Yes please.

Sure. So Q4. Q4 was a transformative quarter for us. In the press release, you did see the full year numbers, but we wanted to kind of highlight Q4 for us. If you think about how the year has gone in the first quarter, it was around -- is in the 30s. Second quarter is low 30s. Q3, we did $42 million and then Q4, we did $53 million. If you look at the EBITDAR for the quarter, it was $11.4. Again, we talk about EBITDAR a lot as it helps kind of help you compare us to other airlines in the sector. We have a 100% leased fleet. So obviously, our EBITDAR is very different from our EBITDA, whereas our EBITDAR is very close to our EBIT, which is our earnings before interest and tax, we have as much depreciation. If you look at our progress in Q4, our EBITDAR was negative $400,000, compared to the annual EBITDAR of negative $13.7 million. So we will harp on the theme, and we will continue to emphasize the same as continued improvement in all financial metrics from one quarter to the next. That's what we're -- that's our plan. That's what we're effectively targeting going forward. And I think Q4 was a great example of that for us and as far as execution. If you want to look at the highlights for 2023 and our financial results. We guided to everyone. I think one of the -- what we said in Q3 is we're going to hit $150 million in revenue. We managed to hit $160 million which is a 64% increase over 2022. Our EBITDAR, which was $20 million, was up 4x higher than it was in the prior year. Our block hours almost doubled from the prior year. An aircraft utilization was up 26%, and this is a key metric for us in the sense of -- not only are we growing our capacity by adding aircraft, which is the fleet size, we're also using the aircraft we have more frequent in pushing more hours on the aircraft on every month. And that's a key metric for us to drive profitability and something that we monitor quite closely going forward. Pushing forward talking about -- we talked about flight block hours and quarterly revenues. And what I really want to highlight on this slide is we've emphasized in the past, we're not necessarily an airline per se. We're more of a service company. And like many service companies, they're seasons. And I think that's no different for us. I think one of the things we need to highlight is the difference between Q3 and Q4. Q3 is what I would refer to as our high utilization, low rate season and whereas Q4 is our lower utilization, higher rate season. And really, that's exemplified by the work we sent to Europe. So for Q3, we'll send our aircraft to Europe, operating high hours on a per monthly basis, and then on the rate wise, the rate tends to be lower. So if an airline comes to us -- a customer comes to us and guarantees us more hours in a month, they will -- we will in exchange price that lower. Now the flip side in Q4, what you've seen is we use -- we fly fewer hours per month on per aircraft where we charge more per hour. And I think one of the big things you'll see there is a seasonality in Q4 of last year. We saw a similar kind of increase, but not only are we growing our capacity quite large, we're also still pushing through price increases, which we think is, again, another key metric. I think one of the emphasis we have going forward is tying everything to metrics, trying everything to what can be measured and holding people -- our team accountable for it. So again, one of the things we keep emphasizing is we are growing our capacity, growing our block hours, we're pushing pricing, and we're going to continue to grow the airline in that way. Moving forward to the next slide. We've talked about this before as our KPIs. This kind of drives home again. When you look at the block hours per month, and I think if you look in the top left corner, you can sort of see how you see a big spike in the total block hours per month, July and August. You will see that again this Q3 as we deploy assets to Europe. With the growing capacity in Q4. Again, the block hours aren't as high as in the summer, but the rate per hour is. Also most importantly, as you can sort of see how we're managing the block hours per month per tail that your utilization as it was always pushing that higher. We talked about pilot pool. As you can see from January '23, 43 active pilots to 100 by December '23. 36 in training to 46 in training. We have made a significant investment in 2023 as it relates to pilots and pilot training and pilot hiring. And we've really done our best to prepare ourselves for the delivery of aircraft, which are now starting to take delivery on. I think objectively, we're probably ahead of the curve on that. But in the market we were in and the need for the difficulty of hard recruiting pilots, you kind of took the pilots as you can get them. What you'll see going forward, I think, for '24 is we'll be a little more measured in that growth of pilot pool as we would have that foster tied to the deliveries as the aircraft come in. And again, the bottom right just shows the increased capacity of net aircraft days per month. So again, we'd love to see everything go up into the right. We like to see growing trends, and we believe these are kind of the key metrics that we've been measuring and working forward to. If you look towards our vision going forward. And Chris, any time you want to jump in on these, please let me know. What we want to really emphasize is what do we say -- we're trying to simplify the story for not only our investors, but our employees. And what are we going to target? And these are kind of the 4 kind of mantras that we're targeting. Continual improvement in all financial metrics. So a lot of people are looking for outlooks and then forecast. I think what we're just simplified is we want to be better every day. We want to be better on margin. We want to be better on profit. We want to be better on revenue. We want to be better on cost management and that's really the path we think, to improvement and the path to getting to the numbers what everyone is hoping for us to capture. You can't boil the ocean, but you can fix one thing every day. A great example is today, we renegotiated a courier rate to save 88% on courier, an 88% discount where before we're getting a 10% discount. If I do 100 contracts like that, our cost structure will get better every day. And so really empowering the team to go find all the different areas where they can either find efficiencies, take advantage of our pre-scale, which will result in improvement of all financial metrics. The second thing we're talking about is setting the industry high standard for on-time performance, reliability and profitability. We talk about on-time performance for a very simple reason that if you leave on time as an airline, that means everybody has done their job. Everyone from dispatch, from maintenance, from the pilots to from finance, from everywhere. If you want. If you leave on time, that's the ultimate measure that you've left that you've done everything right. So by simplifying the message to the team that on-time performance matters and on-time performance is critical. That's what the expectations are of our customer, and that's the expectations we're creating for our team. What that does feed is you believe on time, you become more reliable. And if you're more reliable, you become more profitable. And it's really those stepping stones and building that infrastructure and that into our DNA going forward as we scale and get larger. When we started in August of '21, we'd have 2 or 3 flights a day. And it was the ability of a couple superhuman efforts of people in the company can make sure everything happens on time. We're now doing 40 to 50 flights a day. You can't rely on any one person to make that work. So you've got to have the team driving that. And driving it, for example, is the scale. We want to be the largest 121 narrow-body operator, targeting 35 aircraft by the end of 2026. We think that's a realistic growth target. We think that's the target -- not only the DOT will allow, the FAA will low and our sales team can address by going forward. If you think about where we are today with 15 aircraft, we have 3 aircraft flying for a subservice because we've actually oversold. And I think that kind of goes in to where you talk about the passenger market versus cargo. They're two very different kind of markets for us. We've been in the past year business since August of 2021. There's a lot of incredibly positive market dynamics going on in passenger market, which is seeing incredible demand, which is one of the reasons we're so oversold. So when you think about what we're focusing on the passenger business is really managing our capacity. It's almost like a big game of tetris. We make sure every aircraft is flying every day for the best possible rate at the best possible time. And that's a real exercise that we're doing in passenger. On the cargo side, we've only been in the cargo business for a year. We are developing that business. We're coming to the market with a brand-new piece of equipment that no one else in North America has seen before. If you think about the cargo market in the U.S., it's all Boeing based. We're the first Airbus platform that's really effectively in the narrow-body space selling cargo. So we've really tried to refocus the cargo team on doing what they can to grow the demand to match the deliveries that we have with the aircraft that have been coming. And so -- and really, like I said, we see incredibly strong passenger market. We see a high demand. We see supply shortages, a lack of capacity in the business, which were allowing us to grow not only rates, but expand our customer base. And then on the cargo side, we believe there's a long -- we believe long term, this is with the metal we have. We're in a very good place to not only grow that business but make it very successful. And I think going through to that, I think, Chris, I don't know if you wanted to cover some parting words, but those. To keep the story simple and really focus the company on this is how we're going to grow to be a profitable entity as quickly as possible. That's where the focus is.

Thank you, Ryan. I think it would be a good time to open the floor to any questions we may have. and that could contextualize the rest of the time we have dedicated o this exercise.

Okay. Then we will do that. Just a reminder to the attendees at the bottom of your screen, there's a Q&A button. If you would submit your questions to that, please. And just in case we have a lot of anticipate. We may not get to them all. And if we don't get to your question, would you please e-mail it to [email protected]. Chris and Ryan, I think we'll defer to Chris on this one. If you could, could you provide a bit more color on the reasons behind the recent management transition?

It's very simple. First of all, I want to open up and thank the former executive [indiscernible] for his herculean efforts in getting this airline from a stage of an idea through all the necessary certifications. We're navigating through their complex and challenging federal landscape of regulatory requirements and the thresholds for satisfying those very high. We -- he's done that in a record time, and we are very pleased and very thankful to him for his leadership through that formative stage of the airline. As we're going through -- as we're going through the exercise today, we're obviously looking at our performance, looking at share price change is good. Change is welcome and then the environment is staff, particularly when you're parting waste with people who have done so much for the operation. But we're shifting our attention in a very focused and very disciplined and concerted way towards sustained profitability and effectively delivering returns to the equity shareholders that one of your largest shareholder here is definitely looking to see. So with huge thanks to Ed for his leadership, we're just turning the page and we can turning our focus to operational excellence and sustainability going forward.

And on the growth plans going forward, $7 million investment in pilot hiring and training are mentioned. Is this roughly to be expected going forward? How are the plans to reduce the cash outflow? And when will the company accrue cash instead of burn cash?

As it relates to the pilot hiring and training, I think we're at a really good level of -- we do still continue to have classes as we -- they're opportunistically are picking up really high-quality pilots. But I think the growth that we saw in '22 to '23, you won't see in '23 to '24. I think we have the crews and pilots we need for effectively close to 18 to 20 aircraft. And so until we get those on the certificate delivered and operating, you'll probably see that slow down. So you can see the impact of that would be pretty immediate to as it relates to cash.

Concerning customer deposits on the balance sheet. Are these like bank deposits have to be paid back to customers. or how are they different to deferred revenue?

So the difference between the customer deposit and deferred revenue is, deferred revenues payments made for the flight. Say, flights flying in 30 days and they pay for it in advance. Some customers, we require deposits. This will be for customers that -- to reserve the plane or to hold the plane, they would generally be reconciled at the end of the contract. So they'd either be netted against the last payment or they'd be refined when the contract expires or some of them are there for a considerable amount of time as the contracts kind of just kind of keep going.

In the presentation, it was noted that the objective by the end of '26 is to grow the fleet to 35%. The question is how many of those are expected to be the narrow-body freighters?

I think as we look at what the mix will be between the 2 aircraft, I think we'll let the market tell us what makes sense, right? So we have the ability to acquire both passengers and freighters. We are growing. The potential market for freighters in North America is quite massive. We do still believe it's the replacement aircraft with the 757. There's 350, 757s operating in the United States. We believe those will start to be phased out and will create a huge opportunity for us going forward. To predict the mix now would be -- would probably be just ingenuous, but we do believe we have the ability to take that on, and I think we'll let the market dictate the mix going forward.

But to be super clear that all of them will be within the narrow-body airframe. It's -- this is our singular focus as an airline. We do not anticipate expanding beyond that format.

Still on the topic of the fleet. The question here about the fleet size would be the year-end '24 and '25.

So I think right now, we're not injecting. Right now, we have 15 aircraft on the certificate. And another one coming in the next week. It's in San Antonio, it's just waiting to be deregistered and reregistered. We have LOIs or leases in place for at least 3 more. And I think in the past, we've been trying to predict exact date, these will show up. And I'm reminded of kind of Rex Tillerson's story when he worked at Exxon. They asked him, what do you think the price of oil will be. He said somewhere between $1 and $200. And I don't think it's that varied as it goes to deliveries, but we don't want to set false expectation as to when the deliveries will come. We are actively taking aircraft as fast as we can. We're very comfortable in our ability to put these to work. And so I think we're going to be more in our module of when it's on the ground, and I see it outside of my window and it's like a week away, we'll tell you it's coming. And I think that's probably a more constructive way to go forward. That being said, we are constantly in the market for adding aircraft. We have several aircraft. We have committed to be delivered and we're continually looking for additional aircraft.

I'm going to throw a question in and refers to the presentation. You were talking about being oversold, and you and I have talked about this in the past, where based on the number of contracts and clients that your team is securing, you don't have enough aircraft on the passenger charter side. So maybe a little color on why you folks are being so successful. I don't want to be too much of a softball question here, but when you look at the metrics, if you're having to go to other carriers to actually service the contracts that you're nailing and you could use more planes right now. Can you add some color to all that situation?

Yes. I would say in the first 2 months of this quarter, we had 2 airlines who provided a subservice. For March, we have 4 aircrafts that are going to be working for us in what I would call subservice, operating contracts that we've secured that had we had our own metal on the [ tarmac ], we could have serviced ourselves. But it also allows us to not -- our sales guys can't say no in the sense of if they can close a contract, they're going to close it, and then we figure it out. And what it is, is it's establishing relationships with more and more customers. It's providing -- working through our partners to provide the service. So as our aircraft do get delivered, we have ready-made customers, we can rotate our metal into. So I think it's indicative of how strong the demand is. I think how effective our sales group has been at securing the work. And I think we're going to continue to use that as a tool for us to kind of be the leading indicator of growth because the last thing we want to do is say no to a customer who's willing to pay for a flight.

Great. Still on the topic of aircraft, how many are in service now? What have you got on the line and maintenance, et cetera?

So we have 15 aircraft on our certificate as of yesterday. We have 1 aircraft that's currently going through a [indiscernible], which is -- that's a check you do every 6 years. We've had an aircraft in heavy, what we call heavy checks since January, we've had multiple. So we have 1 right now, which should be coming out, hopefully, in the next 5 to 10 days, and then we have 1 more going in, in April for 30 days. But right now, it's 15.

Change of topic with regards to the Archer partnership. If I'm correct, what wasn't that the electric taxi partnership?

We had an agreement wasn't with Archer. It was with Eve. And I think if you think about what the company is focusing on, the company is focusing on projects and initiatives that will generate profit today. That was a very longer -- that's a longer-term play. And so as of right now, the focus of the management team is 100% on near-term profitability and narrow-body charters, which is our core business.

Speaking of profitability question here about when are you anticipating to get to profitability or sustained profitability and some net positive income.

I think we will -- one of the things we're trying to get away from is overpromising and underdelivering. I think we've made a lot of kind of statements about that in the past. Let us execute, and we'll tell you.

An individual here asking for an update on the status of the new head office and the hangar facility is at Fort Lauderdale.

As of right now, again, we're kind of focusing on the core business, which is flying narrow-body charters. And if it's not an activity that generates revenue or profit towards that, then it's not being focused on right now.

Question, what is the status of N1438.

It has been repaired, fixed, and it's going through what we call a 6-month -- it's going through a series of maintenance checks because it's been parked for 2 months having a door repair on it. It should be flying in revenue service this week or early next.

Sorry, was that -- was that passenger? Or was that one of the freighters?

That's one of the freighters.

Somebody asking for a crystal ball here, but you probably won't go near this, but can you give us an idea of how cash generation unfolds across the year? And what does the 35 aircraft revenue and cash flow business look like?

Yes, you're right. I'm not going to go near it. I appreciate the question. But I think if you kind of look at what our revenue per tail and kind of how -- if you go through our -- the answers are in our financials, and you can extrapolate that as you see. We definitely feel we're getting to that point. And you could see we talked about gradual improvement quarter-over-quarter and all financial metrics and a big driver of that is adding capacity and revenue. And as you do that, you achieve scale.

A forecast of 50 aircraft by the end of 2026 has been the target for a number of years. You're now forecasting 35, which is a significant drop. What comfort can you provide shareholders but you will meet these new targets? And how does this impact your plans to obtain a U.S. uplift?

I don't -- actually, whether we hit 35 or 50, I don't think it makes a difference on an uplift. I think we're a substantial organization at significantly lower than 30 aircraft going forward. I think what we want to emphasize for the company and for the investors is what's a number we can -- you could grow to 50 really fast, but you'll sort of see what we saw last year where you have to make huge upfront investments. I would rather invest -- I would rather grow through our own cash flow and use positive cash flow versus outside money. And we think getting to 35 is a much more measured and much more achievable growth target you can think about what we've done from last year to this year, growing 60%, here to grow 60% a year for the next 3 or 4 years, we should be able to hit that target quite easy.

First, congratulations on a spectacular quarter. I noticed that travel expenses were up significantly in Q4. I expect this was the result of the additional ice hours. Is there a plan to open a new hub in order to minimize travel expenses?

Yes. We've actually started the process of opening 3 hubs where a lot of those flying is coming from, which significantly curtail the travel expenses. And that's been in process now for a couple of weeks, and we're looking forward to seeing that end result. You'll also see probably a drop in travel expenses in the third quarter because we sent a lot of our crews to Europe. And those travel expenses for those contracts are covered by the customers.

This question is specifically for Chris, what will you do differently to attract institutional investors and grow the retail investor pool.

People want to play on a winning team. So the key objective to us is to become a winning team, which means you have to get to this point of sustained profitability. Airlines who do not produce cash, positive returns, do not tend to be in business for very long. We take stewardship of our money and your money very seriously as you probably sense from a discipline that we introduced over the last 5 weeks since the change of stewardship at the top, and we expect to attract interest through performance. So stay tuned. And it's an extremely good question, but we will focus on running the business to the point that we achieved our objectives.

How many employees are you now? And how many crews per aircraft are you using?

So the employees are around 700 employees now up from 0 in 2020. On cruise per aircraft, it's around 4, which is probably a little heavy for low utilization flying. But when you go to Europe, you need 5 crews per aircraft. So we're close to 4 active crews per aircraft right now.

Begin a crews, how many crews have been trained for $7 million?

From that perspective, it would be -- to try to think off the top of my head, about 30.

Why is aircraft fuel cost so substantial? Doesn't the charter customer pay for everything?

Yes. And so while you'll see fuel on our income statement, you'll also see a corresponding increase on the revenue side. So when you look in our chart, we talk about our charter rates per hour and our ACMI rates per hour. So ACMI does not include fuel. And you'll see that rate is closer to around $5,000 on average, I think, in the quarter. When you look at the average charter rate, it's around $13,000 or $14,000. and that's where the fuel comes from. So from a P&L standpoint, there's a slight bit of margin in there. But when you see fuel go up, you'll see a corresponding increase in revenue.

Do you plan to issue 2024 guidance at some point this year?

Yes. That's not today.

Great. General question again about NASDAQ, but what is the vision of the new management team about uplisting?

I think from our perspective, with the size we aspire to be and the operation we aspire to be, needing to be on a larger, whether its NASDAQ or NYC or CBOE exchange is, I think, a key part of our growth profile and key part of our long-term plan. Again, as we talk about timing, as Chris said, you needed to demonstrate sustainable profitability for the institutional investors to be interested. As you know, benefit to just move to the exchange and hope they'll be interested. And so I think we can control our operation. We can control our focus and focusing on all the activities that will drive profitability. We'll get us there quicker. I think there's a general consensus, I think Chris can agree from the shareholders here, of which I'm one, Chris is one, that ultimately, that's where we want to get to. And I think it's a clear target or goal, but we also need to do it in a thoughtful way.

I like the fact that the business strategy will be focused on passenger transportation. What will happen to the ongoing projects at Wego was leading, for example, eVTOL in Miami, the flight sharing app et cetera?

Well, I think as we said, the focus on is it going to make us money this year? And if the answer is no, then we're not funding it. There's no need to -- there's nothing really to shut down or just stop doing. I think those projects are much further along down the road. They're not part of our near-term plan because there is no revenue to be made from those. So it's a matter of attention. There's only so many hours in the day for our team to focus on. And the mantra we've kind of said is does that generate -- does that focus on narrow-body, charter work? Does it generate near-term profit if the answer is no, do not do it.

Because I believe you have not met certain covenants in 2023. Have these been renegotiated with lenders?

I believe we have.

Any updates on contracts with government, TY, ICE teams and others?

I think for [indiscernible], we'll be flying for them this summer. That is -- that's a part of our 3-year arrangement we've had with [ Tui ]. We're looking at several different options for other European operators for the summer. I think from the government side, we have between 6 and 8 aircraft working on government work and then you can track that through the flying that we're continuing to do. Sports teams, we've had a really good sport season. We'll talk about that when we talk about our Q1 results and who we've worked with and what we've done on that front. We're just continuing to grow our customer base and help grow our reputation and address the growing, again, demand when we talk about the demand, these are where they're coming from. It's coming from government. It's coming from [indiscernible]. It's coming from European carriers. It's coming from sports teams, and that's where we're working.

We're going to take a couple more and then we have to wrap. Has global experience an increase in lease rates due to the growing demand for A321 aircraft.

Yes. We have seen lease rates increased for our narrow-body charter aircraft. We've been disciplined in what leases we're willing to sign and what we don't want to do is commit to a very long lease on a high lease rate. So we've been disciplined on where we're at. But fortunately, we've been able to pass a lot of those costs through in the pricing.

Last one, sounds like the hangar build-out is on pause to focus on profitable core business. Was it not fully funded by the building company, question mark.

Yes, but it's still time and attention. So I think if you look at what we're focusing on, again, is a profitable business that will generate revenue and profit today, and then the hangar is not one of those.

And with that, I think the message is pretty clear: focus, profitability and streamlining operations. With that, because we're ready to wrap up here, Chris, welcome to your first webinar. And Ryan, gentlemen do you have any closing comments.

No, thank you very much. I understand it's a record attempt the card for the webinar. So we thank you for the interest. We obviously take the matters of performance very seriously and continue with a very concerted disciplined focus on bring this very rapidly, very rapidly growing operation, which is in very high demand to something that we cannot be very proud of on a sustained profitability basis. And from then, we will earn our right to grow and expand it to areas that at this point we're hitting pause on. So thank you very much to everybody. Thank you very much, Ryan. Thank you, Grant, and your team. And that concludes our webinar today.

Ryan?

Chris said it, thank you.

So again, if we didn't get to your question, please e-mail them [email protected]. On behalf of the whole GlobalX team, thank you for attending and keep watching for more profitability. Thank you.