Matrix Composites & Engineering Ltd (MCE) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Thought it was breaking. Welcome to our 2020 Annual General Meeting. My name is Peter Hood, and I'm the Chairman of Matrix. So it's my pleasure to welcome you here today. In addition to the shareholders who have attended this AGM in person, I would also like to extend a very warm welcome to those shareholders who are attending via the webcast. I note that a quorum is present in accordance with Article 16.7 of the constitution, and as such, I declare the meeting open. Sitting with me today are my fellow directors, Steven Cole; Craig Duncan; and Aaron Begley, CEO and Managing Director. Attending today are Mr. Brendan Cocks; Ms. Julie Jones, joint company secretaries; Mr. John Sibenaler, representing the company's auditors, Deloitte Touche Tohmatsu is -- will be with us shortly; and Mrs. [ Kasan Sufrantry ] from Link Market Services, the company's share registry. I advise that proxies have been received from 91 shareholders representing 59.32% of the company's issued share capital. All shareholders have been sent the Notice of Meeting in accordance with Article 16.3 of the constitution of the company. And if there is no objection, I propose the Notice of Meeting be taken as read. The signed minutes of the 2019 Annual General Meeting held on the 14th of November 2019 are hereby tabled and are available for inspection. I confirm that the register of shareholders is tabled and is available for inspection either during or after the meeting. [Operator Instructions] If your question relates to a specific resolution, please ensure you stipulate which resolution it relates to. I intend, as we go through, to briefly pause at each resolution to check for online questions. We will read out your full name when asking your question. If shareholders have questions of the general nature, these will be dealt with during the general question session at the end of the meeting. So ladies and gentlemen, before commencing the formal business of today's meeting, I would like to give you an overview of Matrix' performance and developments over the past 12 months and outline our strategy for the year ahead. The Matrix' Chief Executive Officer, Aaron Begley, will then provide a more comprehensive presentation on our operations and strategic initiatives that are underway. Matrix' performance in the 2020 financial year was very much a tale of 2 halves. In the first half of FY '20, we doubled revenue compared to the prior corresponding half year period and achieved positive underlying earnings. This result meant that in calendar year 2019, Matrix recorded its first 12-month period of positive underlying earnings since 2016. And it was driven by stronger activity for our traditional drilling riser buoyancy products. We also successfully grew other key oil and gas product and service offerings, such as shipping first orders of our MaxR well construction products into the Middle East and increasing orders for our innovative SURF products and services. However, the second half of FY '20 brought significant macroeconomic challenges that impacted Matrix. A depressed oil and gas price driven by global oversupply, which was then exacerbated by the COVID-19 pandemic, led to a material slowdown in the sector. In Q4 FY '20 especially, we saw a slowdown in orders for our products and tender opportunities deferred, impacting our full year FY '20 revenue and earning results. That situation still persists to a great extent. The Board and management team took steps to respond to these challenges. In particular, we are actively pivoting Matrix towards brownfields project maintenance and sustainment for the Australian LNG market and other sectors, including resources. This aligns with our broader strategy of expanding into adjacent markets that utilize our expertise in advanced materials and technology. We are targeting a more stable and sustainable revenue base that is less exposed to cyclical oil and gas capital expenditure. Importantly, shortly after the 2019 AGM, we completed the sale and leaseback of Matrix' Henderson facility for $20 million. This has ensured we maintain a strong net cash position providing Matrix with the capacity to execute our strategy and target growth opportunities. For example, in June 2020, we signed an agreement with Acotec to exclusively distribute its Humidur Coatings products in Australia, New Zealand and PNG. This range of corrosion-protection coating products caters to demand from offshore energy resources and defense operations who are looking to substantially increase service life for installed site infrastructure plant and subsequently ensure cost efficiency to those operations. The strong potential of this investment is already evident to us. In FY '21, Matrix has received more than $2 million in orders for product sales, equipment hire and technical services associated with coating technology from Australian LNG facility operators with further orders anticipated during this financial year. In addition to these initiatives, in July 2020, the Board also commissioned an independent strategic review to consider options to drive future shareholder value in light of continued depressed oil and gas market conditions. Azure Capital Pty Ltd was appointed as the Matrix' independent corporate adviser to conduct the strategic review, which is now being finalized. Under the review process, 4 strategic options available to Matrix were identified: Firstly, business as usual, which encompassed 2 subcategories. Pursuing organic growth via core products and services only, or also adding new products and markets. Secondly, consolidation, which incorporated the business as usual option as well as pursuing a consolidator strategy to grow scale, such as better utilizing the Henderson facility. Third, selling the company. Not an attractive option for us. And fourth, breaking up the company and delisting, also unattractive. In assessing these options, Azure determined that a combination of the business as usual strategy, including adding new products and markets, plus proactively targeting relevant M&A opportunities that would enable Matrix to add new revenue streams, spread its cost base and potentially absorb excess manufacturing capacity would be the best strategic option. Consolidation, the sale of the company or delisting were determined to generate limited value accretion outcomes for shareholders. The Board and management have considered Azure's findings as part of this strategic review process and concurs with their recommendations. The thorough assessment process undertaken by an independent third party has provided the Board with confidence in the direction already being pursued by Matrix through the current organic strategic initiatives and inorganic expansion into adjacencies, such as the recent Humidur acquisition. Additionally, in July 2020, we also announced that Matrix is looking to enhance its Board, consistent with the outcome of the recommendations from the strategic review. I'm pleased to announce that following the appointment of a national recruiting firm, several high-caliber candidates have now been identified. And we are in advanced stages towards appointing a new director before the end of this calendar year. This appointee will complement the Board's skills and help enable implementation of the strategic review initiatives. So on behalf of the Matrix Board, I would like to thank our senior management and employees for their commitment and hard work during a challenging year. And finally, I would also like to extend a special thanks to our shareholders for their support through a tough period. Our aim is to build on the early momentum we have generated from our strategic repositioning as we look to reward shareholder loyalty. I will now continue with the formal items on the agenda for the meeting. First item of formal business is the presentation of the financial report of the company. Pursuant to the Corporations Act, the company is obliged to present to this meeting the last audited financial statements and report for the year ended 30th of June 2020. These have been circulated to all shareholders with the Notice of AGM. No resolution is required. However, I now invite shareholders to comment or ask questions in relation to these financial statements. Mr. Sibenaler from Deloitte is also able to answer any questions in relation to the audit of the financial statements. Are there any questions in the room relating to financial statements? Are there any questions online? Before I commence with the reading of the individual resolutions, I advise all resolutions will be voted on by a poll, and the results of the poll will be lodged on the ASX later today. All shareholder's representatives were provided with yellow voting cards as they entered. On this voting card, there are a series of boxes. Please indicate on your card how you wish to vote by ticking or marking either the for or against box for each resolution for your vote to count. If you are a proxy holder, a summary of the votes to which you are entitled has been provided with the yellow voting card. If you only have directed votes, you need to do nothing other than submit voting card. Votes at your discretion or open votes are shown in the column titled votes open on your proxy summary and can be cast at your discretion by marking either the for or against box. Once you have finished marking your card, please place it in one of the ballot boxes circulating the room after all resolutions are read. If there are any aspects regarding the voting on which you are uncertain, please do not hesitate to ask the Link staff who will be circulating the ballot boxes. We will now proceed through the resolutions and conduct the poll following the reading of all resolutions. Resolution 1. As set out on the notice of AGM, Mr. Steven Cole is retiring by rotation offering himself for reelection. Are there any questions in the room relating to this resolution? Are there any questions online? I have the pleasure in moving that Mr. Steven Cole being a Director of the company, retiring by rotation in accordance with Article 19.3 of the company's constitution and being eligible, is reelected as a Director of the company. I advise that proxies have been received by the company [ as follows ]. You should be able to see those on the screen here and online. Takes me to resolution 2. Resolution 2 relates to the approval for the purposes of ASX Listing Rules 7.2 exception 13(b) and for all other purposes, the Matrix equity incentive plan and the grant of options and/or performance rights and the issue of shares under such equity incentive plan. A summary of the Matrix equity incentive plan was included in the explanatory statement included in the Notice of Meeting. In order to provide a long-term incentive, which aligns employees with the company's strategies, the company has undertaken a review of benefits to executive directors, officers and employees under the Matrix' rights plan, which has resulted in the Board adopting the new equity incentive plan to allow the Board to grant performance-based awards. The equity incentive plan has been designed to provide for the offer of awards in the form of options and/or performance rights, structured with the performance conditions to align with growth in shareholder value. The Board believes that appropriately designed equity-based plans are an important component of the company's remuneration structure. Such plans are a key element in attracting and retaining talented employees, including senior executives and ensure the interests of employees are aligned with those of shareholders in creating long-term shareholder value. The Board believes that grants made to eligible participants under the equity incentive plan will provide a powerful tool to underpin the company's employment and engagement strategy. A voting inclusion statement applies in relation to resolution 2 and as outlined in the Notice of Meeting. However, the directors, with Aaron Begley abstaining, unanimously recommend that shareholders vote in favor of resolution 2. Are there any questions in the room relating to this resolution? Are there any questions online? I now move the purposes of ASX Listing Rule 7.2 and for all other purposes that the equity incentive plan on the terms describing the explanatory statement, which forms part of the Notice of Meeting be approved. And you should be able to see the results of the voting on the screen here and online. Resolution 3 is an ordinary resolution that relates to the grant of options and performance rights to our Managing Director and Chief Executive Officer, Mr. Aaron Begley, under the equity incentive plan. The options and performance rights are structured with appropriate performance milestones as set out in the notice of AGM. Performance milestones are put in place by the Board to ensure that long-term performance is incentivized and aligned with the company's strategic objectives. ASX Listing Rule 10.14 provides a listed company to obtain shareholder approval by ordinary resolution prior to the issue of securities under an employee incentive scheme to a director or an associate of a director. Accordingly, the company is seeking approval for the issue of these Share Appreciation Rights to Mr. Begley under ASX Listing Rule 10.14. For the purposes of ASX Listing Rule 10.4, information about this proposed allocation is detailed in the explanatory statements accompanying the Notice of Meeting. A voting exclusion statement applies in relation to resolution 3 and is outlined in the Notice of Meeting. However, the directors with, Aaron Begley abstaining, unanimously recommend that shareholders vote in favor of Resolution 3. Are there any questions in the room relating to this resolution? Are there any questions online? I now move that for the purposes of ASX Listing Rule 10.14 and for all other purposes, the grant to the Managing Director and Chief Executive Officer, Mr. Aaron Begley of 2,514,793 options and 846,614 performance rights under the equity incentive plan on the terms described in the explanatory statement which forms part of the Notice of Meeting be approved. And you will be able to see the results of the voting on the screen here and online. Turning to resolution 4. Pursuant to the Corporations Act, the company is required to include as part of the director's report a remuneration report, which includes specified information. The directors have prepared a remuneration report for the 30th of June 2020, and it is included in the annual report on Pages 10 to 15 that has been made available to shareholders. The Corporations Act 2001 requires companies to put to shareholders a nonbinding vote to enable shareholders to voice their opinion on matters included in the report. In accordance with the voting inclusion -- exclusion statement set out in the Notice of Meeting, I further advise that the company will disregard any votes cast on resolution by or on behalf of any of the following persons: a member of the key management personnel details of whose remuneration are included in the remuneration report, or a closely related party with such a member. Are there any questions in the room relating to this resolution? Are there any questions online? [indiscernible] I now move that for the purposes of Section 250R(2) of the Corporations Act, and for all other purposes, the remuneration report, as set out in the company's 2020 annual report, is adopted. And you'll be able to see the results, voting in the screen here and online. Are there any general questions in the room? Are there any general questions online? No. Okay. Well, now I've now read through all the resolutions and answered the questions by shareholders, so we will now conduct the poll. Have all persons who intend to vote now voted? [Voting]

It appears as though the voting process has been completed, I therefore declare the poll closed. As mentioned earlier, the results of the poll will be lodged on the ASX later today. And that concludes the formal business of the AGM, and I record the meeting formally closed. I'd like to thank our shareholders again for their support. And I will now ask Aaron Begley to provide a report on the results of the company for the year ended 30th of June 2020 and strategy and outlook for the company going forward. Thank you.

Good morning, and good morning to those who are joining us online from the East Coast Australia and also here in WA. So I'd like to draw your attention to the CEO portion of the presentation, and we'll move forward to the next slide, which is entitled Our Capabilities on slide, Page 10 of the presentation deck. So very much, Matrix defines our capabilities as being the 3 specific and key areas that have advanced materials, advanced manufacturing and technology development. And further into the presentation, I'll detail how we are leveraging these capabilities and matching them to what we see as opportunities in the marketplace in the resources sector, in particular in Australia and Western Australia. So that's -- those 3 areas are really -- have been our key focus on defining our core capabilities and developing products, services and technologies around them. Our traditional markets have been primarily focused on oil and gas, the deepwater market, the SURF market -- SURF production market and also the onshore-offshore construction market. But as we've expanded our markets, we have also seen opportunities across the resources, civil and infrastructure, oil and gas, transportation and defense sectors. There has been a very specific focus on expanding our markets to support the Western Australian resources sector, primarily in brownfields operations. And of course, we have a great adjacency to that sector being in the global hub of the mining sector. We're also targeting areas of government expenditure, in particular, defense, which is a very good fit for Matrix' core capabilities. And of course, infrastructure. What we're offering in these sectors are technologies that lower the operating costs, reduce downtime and increase productivity and improve safety of operations across these sectors. We'll just turn to the next slide, Slide 12. Our customers and partners really represent a cross-section of different industries, ranging from LNG manufacturers and suppliers like Woodside and Inpex; large epic contractors such as Technip; and then defense contractors, including Thales, BAE Systems and ASC. So the increased focus on operations and brownfields mean we're increasing our interaction directly with the operators. So traditionally, our business has been focused on dealing with intermediaries, OEM manufacturers like NOV and also EPIC contractors such as Technip and McDermott. But increasingly, as we solve operational issues associated with brownfields support, we're doing directly with the owner of that asset. We've also increased our collaboration with universities, both locally here in Western Australia and across the country and other research institutions. And that's -- a lot of that is spurred by involvement in the defense sector, which has given us access to all sorts of capabilities across Australia that we otherwise wouldn't have access to. And we're leveraging our proximity to the LNG and mining sectors here in West Australia. Please turn to Slide 13, to give a snapshot of our financial overview and a few comments on this. Obviously, this data has been published for some time, but a few key points. As the Chairman highlighted very much our FY '20 result was very much a tale of 2 halves and a result of the downturn in the second half which was quite pronounced. The calendar year results last year really reflected -- and that is in calendar year 2019, really reflected a strong recovery in our core markets in the oil and gas sector. But COVID-19 and the corresponding disruption in the oil and gas supply chain has materially changed the short- to medium-term outlook for the deepwater and SURF markets, which we've historically participated in. The -- probably a few key points in addition to that, is really around our noncash adjustments. It is a big number, but it also represents the removal of a deferred tax asset from the balance sheet. And also our overhead reduction. So as we've communicated before, cash conservation and overhead reduction, the rightsizing of our overhead to suit a more dynamic outlook in terms of project work in our core markets, has resulted in us reducing our overheads by about 19% over the last 2 years. It's also important to point out that since 2013, which was a peak in Matrix' history in terms of overheads, we've reduced our overheads by nearly 73%, and we've reduced them by 60% since 2015. So there's been a continual downward trend on the business' fixed costs, reflective of our change in revenue. We are focused on maintaining our cash position as the business transitions into new markets. This is very important from a working capital perspective. And that is a key point that we are going to continue to focus on as we move from what is a reliance on CapEx spend in the deepwater and subsea markets to a reliance on revenue coming from the brownfield sector, primarily within the Australian resources sector. So we'll move straight on to Slide 15, please, which is the strategy outlook. This is a -- these graphics are a little snapshot of where the business is in terms of capabilities. We have a world-class manufacturing capability, a highly automated manufacturing plant. It's unique in the world. It's the biggest of its kind in this part of the world, in particular. And we're actively pivoting towards our brownfields OpEx strategy. One of the things we've done is we purchased the distribution -- well, we acquired the distribution rights to Humidur, which is a coating system that's used across the LNG mining sector, and we've got some real traction in that market. I'll talk to that further in a minute. We also have a strong cash position. We are recognized as a global market leader in advanced materials and composites. And we've got the ability to target a particular sectors of the resource industry through interactions directly with the asset owners and develop technologies and processes accordingly. And we've got a very well credentialed and highly respected and experienced management team that's very well known within the Perth resources sector. If we just move to Slide 16, please. This is just a bit of an update with respect to our traditional services and markets. It's important to consider that historically, 95% of our revenue has come from these markets. And it has been cyclical, and it's almost all been export. As we change our revenue mix, we're still going to maintain the capacity to service these markets and products. So I think that's an important point to labor that as we transition into an OpEx-based as opposed to CapEx-based revenue source, increasingly, that will become a bigger part of our business. We're not ignoring our historical markets, and we're not removing that capacity anytime soon. If we move on to Slide 17, just some specifics around our traditional markets. The first one is riser buoyancy. Probably deepwater drilling is probably a better definition for that market sector. This is a market that's probably going to get hit the hardest in the downturn associated with the oil and gas services sector downturn. We've seen a substantial amount of industry attrition and consolidation. So the market is rightsizing from a supply chain -- from a supply perspective. We've seen since the end of 2015, approximately 119 rigs scrapped. We're going to see another 50 to 60 scrapped over the next 12 months. The upshot of this is a much smaller sector. The global floater drilling fleet will be half the size by this time next year than it was at its peak in 2014. We also expect the number of contractors to reduce dramatically. Some contractors will simply disappear and cease to exist. Others will be merged, and we would expect a small number of mega contractors with a high-spec rig fleet by the end of 2021. The upshot of this is albeit a small market, we would expect some recovery in day rates in 2022, but no newbuilds on the horizon anytime soon. With respect to the SURF market, this is certainly much more resilient than the deepwater drilling market. There are some headwinds though. We are really well positioned to take advantage of any projects that are happening within our region. And there are some large projects that are on the drawing board that should reach FID next year, such as Scarborough and Barossa. These projects were originally slated for FID this year. But of course, as COVID has hit, and there's been a downturn in the oil price, the timing of these projects has shifted to the right by 12 to 18 months. Nevertheless, there are opportunities for Matrix, not just the distributional product base, but also in supporting the readiness for some of these projects with some of the new acquisitions we have such as the Humidur coatings distribution. South America also has a lot of opportunities. There is a steady stream of large subsea opportunities coming up from South America over the next 5 years. And we would expect 3 to 4 major FPSO projects every year for the next 5 years in that market, which remains a key target for the company. The well construction product market in North America has collapsed. The -- there's been a significant decline in rig activity. Over 50% on onshore activity that has impacted our sales in North America with what historically was a very resilient and lucrative market for us. However, we have made some significant inroads into the Middle East in the area of well construction products. We've shipped our first orders, and we are going through qualification processes with several key customers. That market is certainly a lot less cost conscious and a lot more resilient than the North American market, which is very much a swing producer for the oil and gas sector. Slide 18, please, thank you. So as we move away from a dependence on CapEx cycles and into OpEx cycles -- or the OpEx space, we believe that this market is much more sustainable. Brownfield spend is always there with major installations, whether they're LNG plants, offshore facilities or major mining operations. The greenfield spend isn't -- it's very cyclical. And so in terms of what we'll be doing is we'll be focusing on 3 key areas in terms of support of maintenance, products for maintenance, brownfield CapEx and also consumables. So some of the areas specifically that we're looking at are corrosion control technologies. This is where our Humidur acquisition fits. Composite technologies to reduce the weight of structures to allow repairs to be carried out without having to shut plants down because there's no hot work required. A focus on through life asset support, I mean, as these facilities are sweated for longer, but they're exceeding their design life. And so that's an opportunity for Matrix to provide us products and services, which will improve and extend the asset life through the adoption of nonmetallic, corrosion-free, lightweight products that will never rust and don't significantly add to the weight of structures. Specialized testing services is another key area. We do have one of the world's largest subsea testing facilities, which is going to be utilized by Western Australian and Australian -- the Australian offshore sector for testing subsea equipment. And the light-weighting of structures is still for all sorts of applications across the mining sector, in particular, from a safety and maintenance perspective presents another very large opportunity for the business. Slide 19, so this is really how we do this. So that's -- previous slide was what we do. This is how we do it. So what we try to articulate with this graphic is 5 key steps that we have from identifying the problem with the customer through to ultimately delivering a product. So Matrix has the core capabilities that I outlined earlier in the presentation in terms of advanced materials, advanced manufacturing and development and testing. So these capabilities are marketed to the operators, to the owners of the assets. And the owners of the assets know what the problems are better than we ever will. And once we find a match between our capabilities and what they -- and solving their problems, typically, we will go into a front-end engineering process. The next step is to -- once that process gateway is considered to be feasible, and this is a client -- typically a client-funded process, we move to a prototyping and testing and evaluation stage where we do the prototyping and testing of whatever that solution is in our facility, sometimes on-site as well. And if that all proves to be successful and fix the problem, we then move on to full-scale manufacturing and then the delivery and the installation of the product. We've got some real traction in this area, which I'll talk to on the subsequent slide. So Slide 20, please. COVID-19, when it hit, really accelerated a strategy that we already had in place. So we shift our revenue stream from greenfield-based CapEx to brownfields OpEx. In many cases, the clients, the end clients are the same, but we're dealing at a different life cycle stage with those particular clients, whether it be in the oil and gas space, whether it be in defense or ultimately, our expansion into new markets within the mining sector. As a result, we formed a technology group within the business. And this technology group is delivering the service that I provided -- I outlined on the previous slide. And there's significant growth and opportunities there. There's a pipeline of at least $3 million worth of work over the next 6 months with a number of major Australian resources companies. We're currently executing about $1 million worth of work. And although those numbers aren't particularly big, it's -- this is the front-end work. That doesn't represent what the opportunity is ultimately to manufacture the product and install it, not only on the customer side but elsewhere. So the $3 million to $4 million worth of front-end opportunities represent a much, much larger pipeline of opportunities should those product developments go all the way through to implementation on site. Our anti-corrosion coatings and technical services division associated with Humidur has been a very successful acquisition. Probably the most interesting part of this is that not only is it a stand-alone business that we've been able to develop and grow, but it also is a gateway into -- and a channel into other markets as we're able to package all sorts of corrosion solutions along with the coating systems offered by Humidur. So currently, we have about $2 million worth of Humidur-related orders. Effectively, this business only started in July, so it is early days. And they primarily come from Australian LNG operations, but we've also had a successful extension into the iron ore space within WA; the LNG space within West Australia and the Northern Territory; the gold sector and the chemical sector. All right, to the next slide, on Slide 21. Look, I just wanted to expand a little more on what Peter touched on in his Chairman's update with respect to the strategic review. In response to the depressed oil and gas conditions, the Board did decide in July to consider all the options available to the business to protect and optimize the value to shareholders. We engaged Azure Capital as an independent corporate adviser to assist with the review. And this review was very open in terms of all the options that we would consider. The outcome, I believe, wasn't biased in any way. It was a review that looked at business as usual, consolidation, the sale of the company and ultimately, the breakup and liquidation of the company's assets in determining what was the best outcome for shareholders. Just to clarify, business as usual is the continued diversification of the business' revenue streams and also the maintenance of our core product and service offering. Consolidation takes that to the next step, which is business as usual, plus strategic acquisitions. Selling the company is just that, selling the business as a going concern. And breaking up and delisting the company is the -- to realize the market value of our assets and effectively wind up the company and distribute the remainder of the proceeds to shareholders. On to Slide 22, which is just to outline the conclusions of the study. Azure recommended that we continue our market expansion as planned and consider high-adjacency acquisitions were appropriate. What's going to be central to the success of all this is ongoing cost controls. And a very considered and commercially realistic approach to any new business opportunity that comes as a result of our diversification of markets. The implementation and successful execution of this strategy is also likely to increase the interest of any future or potential acquirers should the business go down the path of being sold in the future. So that was seen as certainly beneficial to our shareholders. And the breakup, which option that was considered, it's really unlikely to yield any value to the shareholders simply because of the specialized nature of our asset base and other obligations the business has. The business has found that the outcome and conclusions of Azure's review has just -- has confirmed that we're on the right path. As I mentioned, it wasn't a biased review in any way. It was independent. It was conducted by Azure as independent corporate advisers. And it served to confirm that we're on the right track in terms of diversifying our revenue base to something that's going to be much more sustainable than our historical, highly cyclical and very narrow focus that we've had. Importantly, we're also going to appoint a new Board member by the end of the year. As Peter outlined, we've identified the candidate, and we should have that person on Board before the end of December. That concludes my part of the presentation. I think we're over to questions both here in Henderson and also online. No, there's no questions online? Any questions here? No? Okay, thank you very much for joining us from wherever you joined us from in Australia or around the world. And thank you for -- once again for your attendance on behalf of myself and the Board of Directors.