Kelsian Group Limited (KLS) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the Kelsian first half FY '26 results briefing. [Operator Instructions] And finally, I would like to advise all participants that this call is being recorded. I'd now like to welcome Graeme Legh, Group CEO, to begin the conference. Graham, over to you.

Thank you, Pauly, and good morning again, everyone. Firstly, I would like to again apologize for the delay in commencing this morning, but also like to welcome you to the belated half year results presentation for Kelsian Group Limited for the 6-month period ending 31 December, 2025. Today, I'll provide an overview of the results and also talk to the important transaction that has been announced this morning in relation to our Tourism Portfolio, which was identified for divestment last year. I'm joined this morning by our Group CFO, Andrew Muir, who I'll hand to shortly to run through the detailed financial performance for the period and our divisional results before I conclude with an update on our outlook for the remainder of FY '26. If we move into the presentation and the first half results overview on Slide 3. I'm delighted to be delivering a record result today for the 6-month period to 31 December, 2025, along with an upgrade to our earnings guidance for FY '26. Pleasingly, the record result was delivered through revenue and earnings growth from all operating divisions. For the group, revenue was up 10.6% to $1.186 billion. The strong revenue was driven by the expansion of key contracts on top of the revenue indexation mechanisms embedded in our public transport contracts. These mechanisms provide a natural hedge against inflationary pressures and reinforce the defensive characteristics of our contracted earnings. The group delivered improved earnings margins with underlying EBITDA up 16.4% to $153.8 million, EBIT up by an impressive 26.5% to $75.3 million and net profit after tax and before amortization, up 32.2% to $52.5 million. This earnings result and the group's margin expansion was driven by significant growth across key employee shuttle contracts in the U.S. The ongoing contribution of the Bankstown rail replacement bus service in Sydney and strong trading from across the Marine & Tourism portfolio. The business continues to generate strong cash flows with net operating cash flow increasing by 26.1% to $83.1 million during the period. Leverage at the end of the period was 2.7x underlying EBITDA, and we remain on track to reach our target leverage range by the end of FY '26. The result this period demonstrates the defensive nature of our business with our diversified portfolio of long-term transport service contracts, providing predictable earnings and cash flows. On the back of the trading performance in the first half, we are upgrading our earnings guidance for the full year. Underlying EBITDA for FY '26 is now expected to be between $303 million and $312 million up from the $297 million to $310 million range set at our full year results presentation last August. I'll come back to discuss outlook in more detail later in the presentation. Turning to the strategic and operational highlights for the period set out on Slide 4. Alongside our half year results, we have also today announced that we have entered binding agreements for the sale of our Tourism Portfolio to Journey Beyond for total cash consideration of $161 million. We first announced the intention to divest the portfolio of Tourism assets in April 2025, and we have since run a competitive process, solicitating interest from multiple domestic and international parties. Today's announcement is a culmination of this process, and we'll now work through the required regulatory approvals with completion targeted for the first half of FY '27. I'll provide further details about the divestment announced later in the presentation. From a strategic perspective, several other notable outcomes were delivered across our operations. Within the Australian Bus division, we continue to work towards finalizing the 2-year contract extension for our Sydney Region 6 contract. The extension period will commence on 1 July, 2026 and will be characterized by revised contract terms alongside a step change in the shift towards a zero-emission bus public transport network in Sydney with Transport Minister for New South Wales to add more than 190 new electric vehicles to the Region 6 fleet. Another highlight was the Queensland government's decision to award Transit Systems the contract to deliver new bus services in the Ipswich and Logan areas, our first franchise bus contract in Queensland. Services commenced in November 2025 and are expected to expand over time, including the introduction of new electric buses to be operated from a new state-owned depot. Queensland remains a key long-term growth market for the division, and we look forward to continuing to strengthen our position in the state. In the U.K., we completed the acquisition of South Wales Transport. Founded in 2004, the business has a strong reputation for service reliability and deep regional expertise across the South Wales region. We intend to leverage Kelsian's global best practice in bus franchising to position this business for the upcoming contract opportunities in Wales. The Marine & Tourism division was successfully reawarded to Moggill and Southern Moreton Bay Island ferry services following tender processes, reflecting the strength of our operational performance and longstanding partnerships in the region. Operationally, we saw continued momentum and service growth across our employee shuttle contracts in the U.S. To support this growth, we are investing further in the Gulf Coast region and have leased 2 new depots to support our operations, including associated facilities and workshops. We also continue to deploy new growth capital to increase the fleet size in this region. This investment will support our expanding footprint and ensure we continue to provide safe and reliable services as the scale of our operation increases. A highlight of the half was the operational performance from across the Marine & Tourism portfolio. This improved performance was driven by several efficiency measures being successfully implemented and the ongoing enhancement of our yield management solutions. The Bankstown rail replacement bus services were operated successfully throughout the period and will now continue at least until the end of the financial year. There is already strong interest from our government clients in leasing the 60 buses that were acquired for this project when the Bankstown services come to an end. There were continued operational challenges across our Sydney bus operations. These relate to delays in the electrification of depots, which has consequences for our repairs and maintenance costs as we continue to run aging diesel fleets. The need for investment to improve service in Sydney has been recognized by the New South Wales government and a program of improvements is now being implemented. The initial stage of these improvements was successfully delivered in September. I will now hand to Andrew, who will provide a detailed run-through of the financial results for the period.

Thanks, Graeme, and good morning, everyone. Kelsian has delivered a record financial result for the 6-month period ended 31 December, 2025. Pleasingly, we've seen good revenue growth and margin improvement across the group. Underlying EBITDA increased by 16.4% and underlying EBIT increased by 26.5% compared to the prior year. Taken together, these results demonstrate the resilience of our multiyear contracted revenue base and the operating scale benefits coming through the portfolio. Let me now walk through the key drivers in more detail. Slide 6 provides a high-level comparison of the consolidated first half results for FY '26 compared with the 6 months to December 2024. The revenue increase of just over 10% was achieved through a combination of the impact of contract indexation mechanisms we have in the majority of our Australian bus contracts, a full period of the Bankstown rail replacement project in Sydney, which began in September 2024, the ramp-up of a number of existing and new contracts in the U.S.A. and good growth in the Marine & Tourism business. Overall, portfolio performance was strong and the group delivered an additional $21.6 million in EBITDA compared to the same half last year. The effective tax rate was at the lower end of guidance, reflecting the geographic earnings mix and ongoing marine training incentives consistent with prior periods. Underlying net profit after tax and before amortization for the half was up 32.2% to $52.5 million. Earnings per share and before amortization of $0.193 increased by 31.9% compared to the prior year, reflecting both earnings growth and operating discipline. We've maintained a fully franked interim dividend of $0.08 per share, which is the same as last year, and we continue to offer a dividend reinvestment plan for shareholders with no discount. Statutory net profit after tax for the period increased by 62% to $32.4 million. There were several one-off abnormal items in the period totaling $3.4 million on a post-tax basis. These are primarily associated with the implementation of our global Finance & HR platform. To the cash flow on Slide 7. The quality of earnings remains strong, underpinned by contracted and nondiscretionary revenues across the portfolio, with a cash conversion of nearly 95%, translating to gross operating cash flow of $126 million in the period. During the half, we invested $78.3 million (sic) [ $78.4 million ] in new and replacement assets, including vessels, buses, motorcoaches and land and buildings. This expenditure remains in line with our previously announced capital program and guidance. At period end, we finished with a healthy cash reserves of $141.9 million. Turning to the balance sheet on Slide 8. At period end, we had net debt of $664.9 million. This excludes the limited recourse SPV financing of $83.8 million relating to government-backed contracted assets. More on that shortly. From a leverage perspective, we finished the period with pro forma leverage at 2.7x, down from 3.2x at December 2024, excluding SPV government-backed contracted assets and all bank covenants are comfortably met. The main changes to the balance sheet during the period relate to assets acquired as part of the capital program and the accounting changes in right-of-use asset and liability associated with leasehold properties in the USA and WA and operating leases for motorcoaches in the USA. We continue to hold approximately $33.5 million in government-backed contracted assets on our balance sheet, which haven't yet moved into a ring fenced SPV structure. We anticipate they will move into the SPV structure at the next contract renewal date. Excluding these from our leverage calculation, leverage reduces to 2.56x. Finally, we remain on track to be within our target leverage range by 30 June, 2026. Turning briefly to the special purpose limited recourse arrangements on the next slide. Since July 2023, we have utilized limited recourse asset financing arrangements, whereby Kelsian warehouses, government-backed contracted bus assets on balance sheet, along with the corresponding debt for the duration of the relevant government contract. These SPV facilities effectively enable unlimited scalability for governments across the globe seeking to improve and upgrade public transport buses and infrastructure. Importantly, these limited recourse financing facilities are excluded when we calculate our bank covenants. Structurally, the asset value and debt profile are matched and amortized over the contract term, and if the contract is not renewed, the assets and corresponding debt revert to government. As a consequence, there is no residual risk or financial exposure from a Kelsian Group perspective. At 31 December, 2025, government-backed contracted assets totaled $117.3 million of which $83.8 million are in the ring fenced financing structure. Turning now to capital expenditure on Slide 10. Net capital expenditure during the period totaled $76 million. This comprised growth CapEx of $78.3 million, offset by proceeds of $2.3 million from routine asset sales and disposals. This was in line with expectations. Key investments in the period included ongoing expenditure on new vessels and land site infrastructure for our Kangaroo Island ferry service, the final payment for the second South East Queensland vessel, which was delivered and commenced services during the half and growth CapEx of $23 million for the purchase of new motorcoaches for the 2 LNG contract wins in the USA. Full year FY '26 CapEx is now expected to be $135 million. This includes carryforward of $20 million from FY '25 that we flagged at the full year results in August and an additional $7 million of growth CapEx to meet the demand and increased scope of services we are experiencing and providing to clients in the USA. Turning now to a brief overview of divisional performance, starting with the Australian Bus division on Slide 12. Revenue growth in the period was underpinned by the contract indexation mechanisms we have in our government contracts. We continue to benefit from the contribution from the Bankstown Rail project, which we anticipate will continue to operate at least for the remainder of FY '26. During the period, we saw the completion of the level crossing replacement work in Perth. This was in part replaced by a tram replacement project in Adelaide. The Adelaide tram project commenced in August and ended in July this year. The Bus division's margin was impacted by a small number of largely temporary factors, primarily in South Australia and New South Wales. These included delays in service change approvals and higher repairs and maintenance costs associated with an aging diesel fleet, reflecting the later-than-expected delivery of government-funded electric replacement buses. Importantly, underlying operational performance remains stable, and we expect a progressive improvement in the second half. While congestion continues to affect reliability and drive performance penalties, these issues are expected to moderate as service changes are implemented. Margins were also affected by the non-cash accounting impact arising from depot sale and leaseback arrangements we had in WA. In Sydney, negotiations are on track to commence a 2-year extension of our Region 6 contract effective 1 July, 2026. This is our largest contract and historically delivered lower margins relative to the divisional average. The extension provides improved pricing certainty and operational stability and something we are really looking forward to. In Queensland, we were awarded a new contract to operate bus services in the Ipswich and Logan area. This is our first contestable contract win in this market where both buses and depots are provided by government. This contract commenced in November 2025, and although small, it provides us with an important foothold from which to expand. Finally, our natural resources and charter team was awarded a new 5-year contract to operate zero-emission buses for South32 in the Pilbara. Overall, turning now to Slide 13, the International Bus segment with operations in the USA, Singapore and the U.K. Overall, the International segment delivered very strong revenue growth, costs were well managed, margins improved and underlying EBIT increased by more than 130%. In the USA, the AAAHI business performed very well. The performance reflects our ability to scale rapidly in complex project environments while maintaining disciplined cost control. Throughout the period, we saw good levels of activity on both the Golden Pass and Port Arthur LNG projects, along with the commencement and ramp-up of the CP2 and Louisiana LNG contracts, which we announced in June. These contracts are multiyear in nature with potential extension options. To support this growth, we acquired a combination of new and used motorcoaches to operate on these new contracts. To further support our position in the region, we procured 2 new leasehold depot locations, one in Texas and one in Louisiana. This will assist with the ongoing maintenance of the expanded fleet and improved motorcoach availability. In the corporate and tech shuttle space, business activity levels have improved and service frequency and volumes have also increased. In Singapore, we commenced operating the new capital-light contract with the Sentosa Development Corporation to provide bus services on the island of Sentosa. This contract is for 5 years and commenced in September 2025. Operationally, the business continues to receive performance incentives, albeit at low levels. In the U.K., we completed the small acquisition of South Wales Transport, a regional bus operator in Swansea, Wales. South Wales Transport provides us with access to buses, drivers and leasehold depot. We are confident this acquisition will further strengthen our relationship with this regional U.K. government client. From a tendering perspective, the priority and focus of the U.K. team is on the upcoming tenders in Liverpool. Although, we were unsuccessful in Tranche 1 of the Liverpool tender, we remain competitively positioned for a number of upcoming school bus contracts and Liverpool Tranche 2. To Marine & Tourism on Slide 14. We are delighted with the results from the Marine & Tourism division. The division delivered very good top line growth and a 15.7% increase in EBIT. The strong operating performance supported the value case as the divestment process progressed, demonstrating the quality and earnings potential of these assets. All business units performed in line with or ahead of our expectations, and it was pleasing to see the improved performance from our Sydney, K'gari and Northern Territory businesses. Once again, a number of fare increases were implemented throughout the half and the dynamic pricing initiatives we have in place contributed to improving returns. During the period, we had a number of our larger fleets go through their scheduled out-of-water maintenance. And as a result, the business incurred nearly $4 million of additional repairs and maintenance costs compared with the previous period. The construction of the new -- 2 new Kangaroo Island vessels and work to upgrade the landing infrastructure progressed during the period, and we are focused on preparations for the revised mobilization plan and service commencement in the middle of the year. Finally, we took delivery of the second of 2 Southern Moreton Bay Island vessels in November, and this immediately provided increased capacity and improved operational performance to the region. For corporate costs on Slide 15. The increase in corporate costs reflects several factors, a number of which are one-off in nature. First, the underperformance of our captive insurance structure has seen us recognize approximately $2.5 million due to claims performance and elevated claims activity generally. We've continued to invest further in cybersecurity enhancements across the group, and we also recognized a higher non-cash expense associated with Kelsian's long-term incentive program. Finally, there were implementation costs associated with the Workday Global Finance and HR platform. While the Workday implementation costs impact short-term earnings, the AI-enabled platform is expected to support margin stability and cost discipline over time through efficiency, governance and control benefits, process standardization and the retirement of 13 legacy platforms across the group. I'll now hand back to Graeme to talk about growth, strategy and outlook.

Thanks, Andrew. Before we look at the specific outlook for the group for the rest of FY '26, I would like to provide some further details on the important announcement we made today, that we have entered binding agreements with Journey Beyond to divest the Tourism Portfolio. As detailed on Slide 17, we are happy to announce that all operating businesses identified as part of the Tourism Portfolio last year will be sold to Journey Beyond for total cash consideration of $161 million. After running an extensive sale process, it is pleasing to reach a significant milestone today, and we will now commence seeking the required regulatory approvals, including from the ACCC and FIRB with expectations that transaction completion will occur in the first half of FY '27. The operations that make up the Tourism Portfolio contributed $23.7 million of EBITDA for the 12 months to 31 December, 2025. And on a pro forma basis, the expected net transaction proceeds would have brought the group's leverage into the target range of between 2x and 2.5x underlying EBITDA. I would like to take this chance to thank our great people that make up our tourism teams. I acknowledge it has been a difficult period for you, and I would like to thank you for your professionalism and the dedication you have shown in continuing to deliver brilliant experiences for our customers every day. In addition to the transaction with Journey Beyond, a number of other tourism assets, including 2 properties will be sold to separate parties. The additional proceeds from these transactions is expected to be approximately $3 million. Following the sale of the Tourism Portfolio, Kelsian will emerge as a streamlined global commuter and contracted transport business, delivering essential passenger journeys through our bus, motorcoach and marine operations. On Slide 18, we set out details of what the divestment will mean for our retained marine operations. The retained marine businesses have similar infrastructure-like characteristics to our bus public transport contracts. Revenue from the division will be less sensitive to changes in economic conditions and will be backed by long-term, high-quality service contracts. And the retained marine operations will have a lower capital intensity. Details of the business units that will make up our Retained Marine division are set out in the table on this slide. Turning to Slide 19 and the solid foundation we now have to deliver sustainable long-term growth. The growth pipeline is significant, and we have positioned ourselves in each of our markets to capitalize on the opportunity in front of us. Our operational excellence is our greatest asset and provides a platform from which we plan to continue our long track record of delivering organic growth through contract extensions, service expansions and new contract wins. In Australian Bus, contract extensions and service growth opportunities will be pursued. Our state government clients have acknowledged that patronage levels have grown and congestion has worsened, leading to them making new investments into bus services and service quality that we have not seen since before the COVID pandemic. In addition, new contract opportunities will be pursued in existing markets and in new markets, including the Newcastle contract in New South Wales and bus contracts in Wellington, New Zealand. Our International Bus division has material growth opportunities in each of our 3 markets. The organic growth opportunity for employee shuttle contracts in the U.S. remains significant and historically elevated. In the U.K., we now own 2 small regional operators, which gives us a solid foundation from which to bid for the very significant pipeline of franchise opportunities with some 10,000 buses to be contracted over the next 3 or 5 years. The management team we have in the U.K. is awaiting the outcome of contracts we bid for in Liverpool and is actively working on the next round of franchise opportunities in Liverpool and in West Yorkshire. In Singapore, a further LTA bus contract is in the market with bids due later this half for a 400-bus contract that will commence operations in 2027. Our Marine division continues to deliver improved performance from our investments in yield management and in high-capacity vessels, and we expect this to continue with the delivery of the new larger Kangaroo Island vessels later this year. We are also actively pursuing new contract ferry opportunities with the outcome of Auckland Transport's ferry service tender expected before the end of FY '26. Looking forward, we will continue to focus on capital light organic growth opportunities while also selectively pursuing investments that both meet target returns and bring a strategic advantage for our operations. So the outlook for the remainder of FY '26 and our guidance update as set out on Slide 20. January 2026 trading was in line with expectations with continued strong performance delivered by the International Bus division. January is always a key trading month for the Marine & Tourism division, and it performed in line with expectations. Looking forward to the remainder of the second half, in general, we expect the key trends and drivers of performance we saw in the first half to continue. We will continue to see expansion of our employee shuttle contracts in the U.S. and the Bankstown rail replacement bus services will now operate at least -- until at least the end of the financial year. The operational challenges across the Sydney bus contracts will continue, albeit some improvement is expected as additional services are added to networks and more electric vehicles are introduced. We expect to incur approximately $4 million of mobilization costs as the new Kangaroo Island vessels come online. The outcome of new growth contract opportunities in New Zealand and the U.K. are expected to be announced prior to the end of the financial year. The separation of the divested Tourism Portfolio from the Retained Marine division will commence as we work towards completion of this transaction in the first half of FY '27. As for our earnings guidance, as flagged in the introduction, off the back of the strong first half result and the solid momentum heading into the second half, our guidance range for underlying EBITDA for FY '26 has been revised upwards with full year EBITDA expected to fall between $303 million and $312 million. So in conclusion, I'm very pleased to deliver the record result for the half today alongside the update on the Tourism Portfolio divestment. Both of these outcomes set us up well as we look ahead to the remainder of the financial year and beyond. Before we take questions, I would like to say a few words about Neil Smith, who announced his retirement from the Kelsian Board yesterday. Neil is one of the founders of our Transit Systems and Tower Transit businesses. From humble beginnings in Perth back in 1995, Neil built the dominant Australian bus public transport operation and then took the success offshore, taking Tower Transit into the U.K. and Singapore. Neil's unrivaled passion for buses and public transport has driven the culture of our bus operations, and this passion has certainly had an impact on my career within the industry. I've had the privilege of working with Neil for the last 16 years. Throughout that time, I've benefited enormously from his deep knowledge across all aspects of public transport, his drive to solve the transport problems of our major cities and his wise and measured professional guidance. On behalf of the Board and all of our employees, I would like to sincerely thank Neil for what he has done for all of us over the last 30 years. Andrew and I will now take your questions.

[Operator Instructions] Your first question comes from the line of James Wilson at Macquarie. James your line is open. And I'll return James to the queue. He might be on mute, and I will go with the next question. We have Allan Franklin of Canaccord Genuity.

Obviously, great to see the asset sale. Maybe just sort of in that vein on the asset sale, just when we're thinking about the remaining assets within Australian Bus, how do we think about the seasonality of these assets moving forward, if there's any sort of draw outs? Is there any scope for KI to push out later with those mobilization costs?

Yes, Allan, there's not a lot of seasonality in that remaining portfolio. Obviously, the Kangaroo Island services sort of peaks over holiday periods. But the rest of the remaining portfolio is very stable sort of from a seasonality perspective.

And just on KI, any sort of risk that gets pushed further out, or do we think that, that $4 million hit is a clean hit in the second half '26 and then we get clean operations thereafter?

Yes, that's what we're currently working towards, Allan. And that $4 million is included in our guidance.

Yes. Just on the U.S. or International Bus, just to sort of clarify, majority, if not all, of that sort of uplift in EBITDA coming out of the U.S. Is that a fair assumption to work from? And then just looking into the second half, how are you feeling about the lead into the key charter work period? Are there any items you'd like to call out on the second half cost of the depots, as an example, that might weigh on profitability?

Yes, that's correct assuming the majority of the uplift in International Bus in the U.S., but Singapore also had some positive trading in the half. But yes, the majority of the improvement is out of the U.S. Looking into this half, very comfortable with how things are tracking in the U.S., our underlying charter businesses are performing well, really just kicking off the really busy months as we speak and heading into the warmer months over there. And initial indications are everything is looking pretty good on the charter front for the second half.

Yes. And I mean I assume that the depot costs are obviously rolled into the guide. Is that a headwind into FY '27 at all? Or is it not material?

No, they're not -- they are rolled into the guidance, but it's certainly not a material cost.

[Operator Instructions] And your next question comes from the line of Aryan Norozi of Jarden.

Just first one, so I think in fiscal '25, you guided to abnormal costs from the Finance and HR systems of $9 million. And then in the present today, you said you incurred $5 million. Are you now taking that cost above the line versus below before?

No, that's all below the line, [ Ari ].

Okay. So out of the $21 million of cost -- sorry.

So there was $5 million incurred in the half.

Yes. Okay. So out of the $20 million of corporate costs, sort of $6 million -- about a $5 million step up year-on-year.

Yes.

How do we think about how that steps down into second half '26 and then moving forward? Does that fall by $3 million, $4 million sort of costs you called out?

Yes. So the $2.5 million for the self-insurance costs is kind of the main driver of that. So the performance of our captive in Singapore, which we don't expect to repeat. And then there's some other costs we've invested in and around IT, which are one-off in nature. So there's sort of $3.5 million in those -- between those.

Great. And can you give us some color around how much of the $85 million of sustaining CapEx is now ex new sort of sold assets or divested assets?

Yes. I mean we'll provide a full update on all of that, Ari. Yes. But I don't have that number to hand at this point in time.

So I think that...

That's fine -- yes, I'm sorry.

Sorry, I was going to say, I mean I think the key thing there is if you look at the retained marine businesses that we set out on the slide, they are either businesses where we've recently invested significantly in the fleet or businesses that are capital light with the assets provided by our government clients. So there will be a material step down in the capital intensity of the Marine division moving forward.

Got you. And then last one, just on the U.S. LNG part of the business. So obviously, CP2 and LALNG sort of ramping up this year -- this financial year. Assuming you can't recycle buses, because Golden Pass potentially continues for longer. How much more CapEx do you need to incur to get you to the full manpower or run rate of buses and to deliver full run rate of earnings?

Yes. So as we flagged in the presentation, there was the $23 million of growth CapEx that we announced last period, plus another $7 million that we expect to incur this period in growth CapEx. Now that gets us to what we need based on what we know today. Our view is there is further upside in those projects if they ramp up faster than expected or the client puts on more people than they originally thought. So we feel comfortable with what we've got in the contracted pipelines, but potential further upside with new things coming online in relation to those existing contracts.

So these contracts do $30 million plus revenue per annum at full run rate and good margins. So you've now got enough buses to deliver that AUD 30 million per annum revenue in FY '27 onwards, you don't need to invest more growth to deliver the full run rate of earnings?

Yes. So as we sit today, we're happy with the outlook that we've got, acknowledging that these projects do move pretty fast, and we do think there's potential more upside, which would be in addition to what we've allowed for in the CapEx at the moment.

And that does conclude our Q&A session for today. I would like to hand back to Graeme for closing remarks.

Thanks, Pauly. Thank you, everyone, for joining us and for your time today. Again, I sincerely apologize for the delay. I know it's a bit frustrating on a very busy day for everyone, but I appreciate those of you who stuck around and got there. So thank you very much for joining us. Thank you.

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