SRG Global Limited (SRG) Earnings Call Transcript & Summary

Thank you, and welcome, everyone, to the call this morning. And I think last time I did a market update 6 weeks ago, we had a fire alarm 5 minutes before the call. So I'm pleased to say that hasn't happened today, so it makes for a little bit more of a relaxed opening for us. Welcome, everyone, to the call. And what I normally like to start with is just a little bit about us for our newer investors on Slide 2. And SRG Global, an engineering-led specialist asset services, mining services and construction group. And that engineering-led mindset, it's our core DNA and it's the way we approach all aspects of our business. Our operating model is end-to-end solutions across the entire asset life cycle of engineer, construct and sustain. And we pretty much self-perform nearly everything that we do. And what we want to be is the most sought-after in the fields that we play in. Others talk about #1 market leader, and for us, it's being the most sought-after in what we do. A snapshot of the business on Slide 3. Probably the key points to note here is that Board and management are very linked to our investors and shareholders here in terms of shareholding. You can sort of see the summary on market cap, net assets and a bit about our earnings and work in hand. Probably the other key point to note on Slide 3 is our earnings by geography this year. You can sort of see the split between international, the east and the west. And that will probably transfer a little bit more to the west in FY '21, where probably 40% of the earnings will come from the west, 50% in the east and about 10% offshore. So if we move forward a couple of slides to Slide 5, which is really our year in review and the executive summary. I'm sure you've heard this from many other calls that you may have been on. It's been a year like no other. Revenue for the year of $545 million; underlying EBITDA of $20.5 million, which is in line with the guidance we gave to the market 6 weeks ago. I talked a lot on that market update around the impacts of COVID-19, which are really in 2 parts of our business: the Asset Services side of our business, where nonessential maintenance and major shutdown work that was deferred and kicked down the road, along with New Zealand shutting as a country for near on 2 months for our type of work. The other side of our business that was impacted was our Building business, both domestically and internationally, through productivity and commercial challenges around social distancing and debt recovery. We have taken some positions, which I flagged at that market update, our credit loss. The old term bad debt provisions of $7.5 million were recognized in the Building division. We have increased that from our update 6 weeks ago, primarily for Victoria moving into a state of disaster. We've taken a noncash impairment of goodwill in the Building business, which we flagged 6 weeks ago that we would be looking at that in the audit process. And that's really off the back of decisions to exit Structures Victoria, exit Building Post-Tensioning in the Middle East, along with a significant scaling back of our post-tensioning business in the Australian market. Restructuring costs, which I talked about 6 weeks ago in the second half of $2.7 million. I think overarching from a COVID perspective, we've weathered the storm, and we've weathered the storm well. It's because we were decisive and we acted. And in a perverse way, COVID actually helped us, because it really -- it almost forced us to fast-track the strategy that we're on. And what we now have is a business that's been repositioned and simplified, focused on core business, core clients and core geographies. And most importantly, we've continued to transition the business mix towards annuity earnings, and that's something that I will touch on a bit more later around our strategy. We've got good work in hand at June 30 of $707 million, which has continued to grow and a great opportunity pipeline in sectors that are growing. Significant liquidity in the group with available funds of $73 million, and Roger and the finance team have done a terrific job in that regard. We've reduced net debt in the second half to $8.4 million, which was a terrific outcome given the level of investment that we've made in the business to fund our growth. I think, most importantly, in that debt position, $26 million of our debt, which is the lion's share of the debt, is equipment finance debt related to our drill rigs. We're declaring a final fully franked dividend of $0.05, which takes our full year dividend to $0.01 per share, the first of that which we brought forward to July. So whilst it's been a challenging year, it's been a year that we've made good progress in our business. I think if you move to Slide 6, that's really off the back of our people, who are the foundation of our business. And it gives me great pride just to talk about the efforts of our people through what's been a very challenging period, not only for our company, but for all companies around the world. I always believe in really difficult times, it really reveals the character of individuals and it reveals the character of companies and what they stand for. When I think about SRG and what we've stood for through this period and what we stand for and value as a company, we live for the challenge. We're smarter together. We never give up. And we have each other's backs. And the way our people have come together and driven our company through this process has been exceptional. I know there are a number of our people on this call, and I want to thank them for all their efforts. Most importantly, through this period as well, we've looked after the safety, health and well-being of our people. We've improved our safety performance, and it's allowed us to be positioned for what I think is an exciting period for the company moving forward, which is a terrific segue into strategy on Slide 7. And we are executing our strategy. We have a very clear strategy on where we're going. If there's one thing that you can take away from Slide 7 is that we are continuing to transition the business mix towards annuity earnings. And why that's important is it gives us certainty, it gives us tenure, it makes us a very investable company but, also importantly, it allows us to be very balanced. So on the specialist construction side of our business, we can be very targeted of the type of work that we look at, targets, opportunities that are aligned to our capability and also the risk profile that works for us. Not being a company that needs to feed the beast, like a lot of pure construction companies can be. I think most importantly, from a strategic perspective, we are delivering about where we want to be in the medium to long term. If we move to Slide 8, and I've already touched on some of this. We have a very strong platform for growth. Good work in hand. Most importantly, that's the number as at June 30, and a terrific pipeline of opportunities in good sectors, sectors such as mining, maintenance areas and also in the civil infrastructure space, which is an area that governments are making significant investment on, and in Scott Morrison's words the way out of the pandemic. And most importantly, as we move to Slide 9, we are continuing the momentum. In the last 6 weeks since the start of the financial year, we've announced $200 million of more contract wins in that period. So what that highlights is evidence of momentum about where the business is going moving forward. Which is the bright one as we move to Slide 10, which is our outlook, which really sums up where we're going. I've already touched on the first 2 dot points. So I'll start with the third. And there are further imminent near-term contract wins expected in our business. So the momentum is continuing as we move forward. Our Asset Services business will continue its step-change growth journey in FY '21, coming off the back of an outstanding year in FY '20. Our Mining Services business is operating in high-demand, high-quality-growth commodities, primarily gold and iron ore with a blue-chip client base, and I'll talk to that through the presentation. We've got positive exposure to government stimulus programs in Infrastructure Construction, which I've touched on. The scaled-back approach to Building has been implemented, which will minimize our ongoing exposure in the short term to COVID-19, but also in the medium to long term, aligning our capabilities to clients and risk profiles that work for us. We expect our earnings profile to be 2/3 annuity earnings in FY '21 and beyond, which has us ahead of strategy. And we've lifted our FY '21 EBITDA guidance to $38 million to $42 million, which is an uplift on 6 weeks ago. If you think through that, the lower end of our guidance range is very much aligned to what I said 6 weeks ago. But clearly, we've increased the guidance as we sit here today, which is really on the back of certainty, some of the wins and where we see our business going forward, which is one that's very well positioned for long-term, sustainable growth. We'll be growing in FY '21. We see multiple avenues to grow in the next 3 to 5 years as a company. So that's a bit of, I guess, an overarching summary. We might now go into some of the detail, and I'll pass over to Roger Lee, our CFO, to talk through some of the detailed financials.

Thanks, David. So on the financial performance slide, which is Slide 12, I guess, it's helpful to talk about this in 2 parts: We've got the revenue table and the EBITDA table. And the reason why we've sort of pulled this table together was just to be quite clear around -- in a post-AASB 19 -- 16 world and how we report our numbers. I think we wanted to be particularly clear around where our numbers are built up from, from a reported perspective through to an underlying EBITDA perspective. So the top table, revenue, $520 million reported, $25 million worth of JV revenue to $545 million worth of revenue. From an EBIT and EBITDA perspective, I think helpful to start in the bottom up, I guess, because these are numbers that will be familiar with you, with everyone around the second of July guidance. Underlying EBITDA, post AASB 16, of $29 million. $20.5 million pre AASB 16, which you can see 3 numbers from the bottom. Depreciation of $10.6 million, getting us to an underlying EBIT number of $9.9 million. The adjustment items there of $41.8 million, I think David's touched on a fair few of these ones already around the goodwill impairment, restructuring costs, the amortization of customer contracts in intangibles. That's one that we've had for a couple of years now around that sort of $4 million, $5 million mark, which is an amortization of CCI. And $7.9 million worth of credit losses or bad debt provisions, which we've already touched on before. So getting us to the $31.9 million worth of reported EBIT number in our financials. The next slide on Slide 13. I guess the key message here is that it's been a half of strong operating cash generation. In the second half, we generated net operating cash inflows of $17.8 million. And this is despite -- this is, I guess, is a turnaround from the first half investment that we made in working capital projects, such as South32, OneSteel Whyalla, Facades contracts and Specialist Civil projects. They all had a call on working capital, and I think it was pleasing for us to see that start to unwind in the second half from a working capital perspective. And this is also on top of us investing in our CapEx from a sustaining capital and a growth CapEx perspective of about $10 million with project startups of Saracen and Alcoa. And David also touched on the fact, we've also paid down debt. And we paid down $8 million of the debt in the second half. So it's been a very pleasing half from a cash generation perspective. The next slide is our strong financial position. And we've also touched on we've got available liquidity funds of $72.6 million, of which circa $28 million worth of cash and undrawn facility of $44 million. On top of that, we've got undrawn HP and equipment finance facility as well, which sets us up well for growth into the future. Importantly, out of this slide, I guess, you can see our net debt position of $8.4 million and our NTA position of $114 million, which is certainly where we're trading at the moment now. So what this tells us, I guess, is that we've got a really strong financial position for our platform for growth into the future.

Thanks, Roger. As I said earlier, the team and yourself have done terrific job in this regard. So I'll now move to the, I guess, the operational section of the presentation. And Slide 16, our 3 not only reporting segments but operating segments as well, being Asset Services, Mining Services and Construction. So let me start with asset services on Slide 17. Our Asset Services business really made up of 2 key areas: our specialist maintenance business across a broad range of industries, and our access services business across like industries as well. It's probably something we undersell at times, but I thought it would be interesting for our shareholders to see the quality of the client base that we have. And I won't walk through each individual company, but we have a high-quality, blue-chip client base in our Asset Services business. And I think you'll find that's a common theme across the group as we move through it. If we move to Slide 18, which really gives an overview of the year. It's been a stellar year for our Asset Services business in spite of some pretty significant challenges. That's the highest growth and our highest-earning segment in the group. And there's been a number of contract wins through the period. And I think if there's one thing you can take away from this slide is the level of tenure that we're getting in these contracts: 5 years multidisciplinary contract with Alcoa, 8-year maintenance contract with New Zealand Transport, 5-year maintenance contract with Methanex, 2-year maintenance contract with Meridian, 5-year maintenance and access contract with Yara. The length of tenure we're getting in our term contracts is a real credit to the team and our value proposition. And pleasingly for us, operations across both Australia and New Zealand have returned to normal levels, which is probably a little bit earlier than we perhaps may have anticipated. We're continuing to focus on innovation, technology and data analytics as market differentiators. It's not a one silver bullet. While we're winning work, we service our clients, we service them well, which is evidenced by our long-term relationships, we make a lot of investment around data, insight, innovation to really make our customers' business better. And that's certainly something that's giving us a point of difference. I think most importantly, for our shareholders, there are further imminent near-term contract wins expected in the Asset Services space. And I know there are a number of Asset Services people on this call, and I do say this with a smile, but I really want to thank that team. It's been an absolute stellar performance from that particular business. If we move to Slide 19, which is our Mining Services business. This, I guess, gives you an overview of the business we have. We will be one of the largest production drill and blast companies in Australia, primarily playing in gold and iron ore, which are good commodities to be in. We have a Specialist Geotech business, which is all around ground support-type work. And again, you can see the quality of the client base that we have and a client base that is growing. Also, the quality of the commodities on which we're playing, basically exclusively now in gold and iron ore. If we move to Slide 20 for, I guess, the update on the year. It's been, again, a very, very strong year for our Mining Services business. Terrific asset utilization, in excess of 90% of the fleet. We've continued to invest capital in the business, both from a growth perspective and a sustaining capital perspective. And the team -- and that -- I guess, I'm a bit biased here. But we have a crack team in our Mining Services business, and they're very proactive and early in terms of managing through some of the COVID challenges. And I must say, the industry as a whole has been highly collaborative through this industry. But we were early, we were proactive, we've relocated people and it's had us very well positioned to ensure ongoing operational delivery for our clients. Terrific contract with Saracens, and we've had an excellent startup with them, and they're a quality client. They're a client that's clearly growing, as I've communicated in very recent times, and one we're really excited about building on the relationship with them. Again, similar to Asset Services, really focused on innovation in this business, things such as high-precision GPS; bespoke real-time data analytics, quite a consistent theme with our Asset Services business in terms of getting -- using data to gain insight to drive customer improvement and operational productivity; and playing a bit in the automation space with remote control drilling. We are expecting growth in this business with key existing clients on existing sites, and there's been a lot of communication in the market about some of our clients and their plans moving forward. But also importantly, there's a good pipeline of new opportunities with new clients, primarily in gold and iron ore. And I must say the level of tendering that I've seen is probably higher than any time that I've had in SRG in the last 6 years. And most importantly, our key commodity exposure is gold and iron ore, which are clearly good commodities to be in over the short to medium term. I, again, want to really thank the Mining Services team that had an outstanding year. So we move to Slide 21, which is our Construction business. Really made up of 2 quite distinct areas: our civil and engineering business, which primarily plays in the dam, bridge and tank space; and our specialist building business, which moving forward, primarily focused on facades, along with structures in the west. If you look at the client base, probably 2 key messages here: One is from a civil and engineering perspective, it's really with government and government authorities, primarily in the transport and water infrastructure space. And I guess in the Building space, it's with key Tier 1 partners that we've had very long and very deep relationships, such as Multiplex and LendLease. I guess we move to Slide 22, an update on the year. It's been a very mixed year for our Construction business. I'll start with our civil and engineering group. Really strong performance in the Australian market. A really good pipeline of opportunities moving forward. And there are imminent near-term contract awards expected in Australia for our business. So really a very strong year from that business. Internationally, it's been a real challenge on managing COVID, both from an access to people and access to country perspective through this period. We've made some pretty decisive decisions. We're scaling back operations in the Middle East and scaling back operations in the U.S. in terms of exiting the cost base. And we've really relooked at the cost base model for international business, and we've restructured that fixed cost base. Where moving forward, we'll target specialist global projects from Australia, really leveraging off the Australian engineering resource base that we have. In our specialist building business, again, mixed. Our Facades business, really strong year. And it's got a quite a different operating model to the rest of the company. In our Facade business, we do all the value engineering, the design and the oversight work, but we subcontract down the labor. So we don't carry the labor cost or the labor risk, which has helped us manage through the COVID period. And we do have near-term contract wins expected in that particular business, dare I say imminent. Our Structures Victoria and Building Post-Tensioning businesses have had difficult years impacted by COVID. I've already touched on this in terms of decisions that we've made around exiting and scaling back, which minimizes our future exposure. Our Structures West business, which is one that we're an excellent market leader in, in a very favorable market for us, commenced the Multiplex project, the $75 million One The Esplanade project here in the west at the end of June, which is quite important for us in addressing that known carrying cost issue that we've had in the last 12 to 18 months. And pleasingly, there's a really good pipeline of further opportunities for that particular business. So I guess that's the operational update. What we always like to do with SRG is really link back to strategy, and all the decisions that we make in terms of how does that link to our strategy, which is a clear one. So if we move to a couple of slides forward in terms of Slide 25, this is the strategic direction of the business. It's all around building the most sought-after business in what we do in Asset Services, Mining Services and Construction. And ultimately, where we're trying to get to is the bottom right-hand corner of a business delivering 2/3 annuity earnings and 1/3 project based. What I will say, as I move to Slide 25, we are ahead of schedule, well ahead of where I expected to be on our strategy at this point in time. And we've continued that transition to annuity earnings. When we got to 15-plus term contracts at the half, we were thrilled. That was really our full year target for this year, to be 15-plus term contracts in the group. We got there early. But what you've seen in the last 6 months is a step change forward again. And we have now more than 20 term contracts in the group, which has us well ahead of schedule and gives us a terrific platform. And as I called out in the outlook slide, we expect FY '21 earnings and beyond to be 2/3 annuity in nature. So we're ahead of schedule on delivering on our strategy. As I move forward to Slide 26. Importantly, we're winning these contracts in diverse sectors across what I guess I would term the industrial sector and the natural resources sector. And what that gives us is protection to different industry cycles, but also a terrific and broad level of opportunity across a broad range of industries on where we can apply our skills. But equally, as I move to Slide 27, we now have a terrific base platform to leverage our site presence. We have multidisciplinary capability within SRG. And with the platform and footprint we now have, we can really leverage the diverse capability to cross-sell other parts of our business into. And why that's really important is in term contracts, you generally have a fixed cost base as largely paid for. So the opportunity to bring other services by having that site presence, you're there, you're in front of the client, but equally by having the fixed cost base paid for, it enables you to get better margin that work, both from an ad hoc perspective and also from bringing in more contracts. And this is a really important point for shareholders to understand about where we've been taking the business and the footprint and platform that we've built. Which is a good segue to Slide 28 on our investment proposition, which is ultimately why everyone's on this call. We've got a complete business model, end-to-end across the entire asset life cycle. Diverse market sector exposure, which gives us both protection and opportunity. A high level of annuity earnings in the group, which gives us certainty, it gives us tenure, it makes us very investable. But equally, it allows us to be very targeted in our specialist construction business on opportunities that match our capability and our risk profile. We've got a very strong growth outlook in the short, medium and long term with multiple avenues to grow; very attractive valuation multiple. As Roger talked about earlier, we're effectively trading at net tangible assets. And we're a dividend-paying stock. And I think in summing up our business, we've got real momentum. The momentum is continuing, and we are well on the path to be the business that I know we can be. I want to thank our shareholders for their support in the last 12 months. But equally, I want to thank our people again. They've really come together, have really lived for the challenge. I'm really proud to be a part of this business for the people we have. And I'm really excited about the journey that we're still embarking on in SRG Global. Thank you.

Thanks, David. So I guess now, we're open for questions. And as we said before, there's a platform for us to -- for anyone to click on to on the -- on the website to field questions. A couple have come through. Maybe I'll start with them, and it's really COVID-related. I think we've touched on that. So I'm just going to try to just rephrase it because there's a couple there around that theme. The -- so on, David, the government-imposed COVID-19 lockdowns in Victoria, New Zealand, the broader border restrictions, has that -- has the business been impacted? What do you see the impact going forward for the business from a COVID-19 perspective?

Sounds like there's about 10 questions in that one, Roger. So I might try and break that one down. I think if we start with Victoria, and clearly, Victoria is in a state of disaster. And look, in reality, it's slowed down our exit from the market. We're now down to 2 projects in Structures Victoria, and then we would expect that to be completed by the end of -- end of October this year. And I think most importantly, the decisive action we took earlier this year was the absolute right call, which minimizes our ongoing exposure. If I look -- I think you mentioned New Zealand. And to put New Zealand in perspective, Auckland is at a stage 3 lockdown, which is no effect for us. The rest of New Zealand is stage 2. So all our services are fully operational. It's quite different to -- during March, April, where basically they locked the country as a whole for 2 months under stage 4. So there's no impact in New Zealand for our business. I think more broadly on the border restrictions, well, I mean, certainly, it's a challenge. But clearly, our people have shown that they can manage it and manage it well. But it's not easy. I think that's -- and I guess I'm not being flippant when I talk about the pride I have in our people in terms of just the way they're managing through this period. Because it's not easy, but they've just done an outstanding job to mobilize people over a business that's growing. And managing these borders is something that we're used to. We've made some early and proactive decisions to manage that. But certainly, it's not without its challenges.

Okay. Good. Thanks, David. Question around these contract wins, David. Imminent, near term, again, what's the time frame for -- when you say imminent and near term?

I always get myself into trouble probably. So I think in reality, we are -- we're continuing to grow. There's clear evidence of momentum since the start of the financial year. When I talk about imminent and near term, I look in -- probably in laymen's terms, imminence, we're talking weeks; near term, we're talking months. But there are clear opportunities for us across all our businesses, and that's probably as much as I'll say on it at this point in time.

Yes. Okay. This one is probably one for myself. It's around how comfortable do you feel around the capacity to fund the growth going forward. And I think, as we said before in the 2nd of July, the position remains exactly the same. Is that we feel that with our current facility in place and with our cash generation, we're well positioned to grow the business. We've got great support from the banks. I thank the banks who are on this call at the moment now for their ongoing support to SRG going forward. But I do feel that we have a really good platform for growth from a funding perspective as well. Another one for me, I guess, is around the FY '21 EBITDA guidance, around AASB 16. Clearly, as I've said before, AASB 16 is in the number for our guidance for FY '21. Is it our intention to report going forward post AASB 16? And the answer is yes. From now on -- I think this a year of transition. And I think for us, we started the year, as many companies did, talking about pre-AASB 16 numbers. And that's why we went to particular pain to actually paint the -- to actually call out the reconciliation sheets from what was a pre number to a post number. But certainly, going forward, you'll see all our reporting from a post-AASB 16 perspective.

Yes. I'd really like to thank the accounting fraternity. We pride ourselves on making the complex simple, and I really think they have done everything to work against this on that.

I want to talk about some of the agendas that might be there, but that's okay. Thanks, David. So the -- another question around Construction division itself. Where do you see it going forward around the opportunity that clearly is manifesting itself around government programs, infrastructure funded projects? And how do you see the competitive landscape in that sort of market?

Well, I think, for us, the opportunities are really areas such as transport, infrastructure and water infrastructure for us. And I think it's really important for our shareholders to understand, the sort of model is shifting. I guess the SRG model for our specialist construction is very much around a collaborative contracting, where we're really working with the clients well before the opportunities come. And that really seems to be the way it's shifting, more to that sort of alliance-style model, which is more favorable to contractors. But really, the way we operate that whole collaborative contracting model that we have is one that really fits nicely with the sort of government stimulus programs that are coming up. And I think from a competitive landscape perspective, looking in reality across all parts of that business, there are many opportunities to grow. And whilst the government piece is also in asset maintenance services, we're clearly winning with a good offering in that regard in areas like our mining business. And clearly, there's some really good pipeline of opportunities to come, and it's about being very targeted and selective in terms of which ones we pursue.

Thank you, David. A question on the international divisions. The offshore business, specifically in the U.S., what's your view on the U.S.? And is that something that we have now moved away from? Or is -- what's the view on the future in the U.S. and internationally?

I touched on the U.S., the market update in July. And in reality, we've exited the cost base out of the U.S., but we're there with our joint venture partner. It's a very good relationship. It's a long-term relationship that we have with them. We've laid the groundwork in the last 18 months to 2 years. The opportunities are there, and they're probably more medium-term opportunities. Because in reality, in my view, in the next 1 or 2 years with the pandemic, the ability to actually go and execute is difficult. So they're not -- we're not... [Technical Difficulty] We're back online now. I'm not quite sure what has happened there, but my apologies for that. But the line dropped out as I was talking about the U.S. It wasn't that big a ticket item that we would have hung up on. But...

But first, we had the fire alarm the last time.

Yes. So clearly, technology is not working for us. So I think just closing out the U.S. The groundwork -- the groundwork has been laying the opportunity there, but it's more a medium-term play for us. We really see the next 1 to 2 years about really looking at opportunities closer to home, and really keeping our JV partner there for more to partner and look at, I guess, more medium-term opportunities.

Yes. Thank you. Just a couple of ones, probably final ones here. Around the FY '21 guidance, I guess, a few questions around confidence around the FY '21 guidance given COVID-19. And a question around the split, first half, second half, David.

I think from a split perspective, roughly I'll go 45-55 sort of first half, second half. Will be around about the level, which is quite sort of normal for us, I guess, from a guidance perspective. And then clearly, we're giving an outlook, but our view is conservative and very achievable. And really, we've done a lot of work in the last 6 months to simplify our business, reduce the fixed cost base. And that really reflects a simplified business that's well achieved -- that's well-placed to achieve that, knowing we've a cost base now that's resilient and flexible to manage through whatever is running farther. So I think if you look at the businesses we have, they're quite resilient, moving forward, to the COVID world that we're in, in terms of mining, civil infrastructure, construction, asset maintenance services. I mean they may kick down the road, but it needs to be done, and that's now happening in our different model and the scale of that model for building moving forward, which I -- clearly, we wouldn't call out guidance if we didn't think it was going to be achieved.

Yes. Yes. Okay. Thanks. And probably the last one, because there's a couple of questions around dividends just in terms -- I mean, there's positive feedback around the dividend declaration that we did for the final fully franked dividend. Where do we see the dividends going forward for the business? Do we have a set payout ratio?

Well, I think I've been very clear in our investment proposition that we are a dividend-paying stock. We don't have a set policy, but generally, it's 40% to 50%, roughly, of profits. And we clearly intend to be a dividend-paying stock moving forward.

Yes. Okay. I think that kind of covers it. David?

Again, apologies for technology there at the end. But yes, once again, we really want to thank the shareholders for dialing in and really looking forward to what I think is going to be an exciting 12-month period as we move forward. Thank you.