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spk05: Good morning, everyone, and welcome to the Inspired Entertainment first quarter 2023 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. Please note that today's event is being recorded. Please refer to the company's safe harbor statement that appears in the first quarter 2023 earnings press release which is also available in the investor section of the company's website at www.inseinc.com. The safe harbor statement also applies to today's conference call as the company's management will be making certain statements that will be considered forward-looking under securities laws and rules of the SEC. These statements are based on management's current expectations or beliefs and are subject to risks, uncertainties, and changes in circumstances. In addition, Please note that the company will discuss both GAAP and non-GAAP financial measures. A reconciliation is included in the earnings press release. With that completed, I would now like to turn the conference call over to Lorne Will, the company's executive chairman. Mr. Will, please go ahead.
spk07: Thank you, operator. Good morning, everyone, and thank you for joining our first quarter earnings call. Here with me today are Brooks Pierce and Stuart Baker, who We'll be presenting prepared remarks and also Eric Carrera, who is available to answer questions as appropriate. I'll keep my remarks this morning fairly brief, focusing on important overarching financial comparisons and a few particularly noteworthy specific business points. Brooks and Stewart will then go more deeply into operating in financial matters. As mentioned in the press release, there were a couple of important items that significantly impacted year-to-year financial comparisons. And because the first quarter is seasonally our lowest in terms of EBITDA, the impact of these is consequently magnified. In normal first quarters, we would have had a very significant marketing and exhibition expense, typically approaching about $1 million for the annual ICE event in the U.K. While we did have the usual isofit in Q1 of 23 with an associated expense, I think it was mentioned in the press release of $800,000, there was no comparable event in the first quarter of 2022. And in 2022, we had VAT revenue of about $900,000, all of it margin. That was a rebate from our customers that arose from VAT overpayments in previous years. And then, of course, there was a foreign exchange impact. So, as mentioned in the press release, when we make these adjustments, the like-for-like increases in year-to-year revenue in EBITDA were 22% and 26%, respectively, which we think more accurately represents both the momentum generating the growth in the business and the operating leverage that's driving increased profitability. And I should mention that at this point in the year, the pound is above where it was at any point in the last three quarters of 2022. I just took a look. It's $1.27 today, well above, certainly well above where we were a year ago, so that what has been a headwind for some time could conceivably be turning now into a tailwind. Our digital business is now accounting for nearly two-thirds of our EBITDA, are the primary drivers of growth. We're particularly pleased with a very strong reacceleration of our interactive business, which, as discussed in previous earnings calls, we have been anticipating and projecting for some time. Our interactive business initially accelerated during COVID, as those of you who follow us will remember, with virtually all of that growth coming in Europe. But as the symptoms of COVID started to recede, our interactive growth began to moderate. What's underlying our growth now, the acceleration that we're now talking about, is the North American market, which has in a very short period of time become our second largest and fastest growing single market, driven by product and platform developments designed explicitly for the North American market. Since only a handful of the 60 states and provinces in North America have introduced iGaming to date, the opportunities ahead are almost limitless. The opportunity for virtual sports in North America is similarly limitless. Like with Interactive, the acceleration in our virtual sports business had its origins during the pandemic when live sports in the UK and Europe were effectively shut down. But in this case, there was no plateau in the post-COVID period, as had been the case with Interactive, where we needed to retool for North America, as I mentioned a minute ago. As we've outlined previously, our growth in virtuals has come through steady expansion into new geographies, complemented by product and technology development. And now we stand at the edge of a product geography opportunity like none we've seen before, the launch of the NFL product in the North American market. And in a moment, Brooks will discuss this opportunity in some more detail. At the same time, our retail businesses continue on their intended strategic path, providing modest growth with strong cash generation, particularly in the context of our evolving asset-light business model. The new Vantage terminal, which we talked about a lot in the fourth quarter conference call, having demonstrated a 13% uplift in win per day now after almost a year of field trials, promises to enhance both growth and cash flow in all segments of our retail business. And it's worth mentioning in conclusion that last week was the strongest week in the UK betting shop segment. since prior to the impact of the triennial review in 2019. And with that, I'll hand it over to Brooks.
spk04: Okay, thank you, Lorne. I'll get a little more color on the business on a segment-by-segment basis as I normally do, but I also want to add to a few points that Lorne made in his remarks. Inspired has transformed in the post-COVID world to a digitally-led business with now two-thirds of our EBITDA coming from these segments. These segments have all the characteristics you look for in businesses with high growth rates, high margins, low capital intensity, and numerous expansion opportunities both from a product and geography standpoint and highly differentiated offerings that make them unique and wide distribution through almost all tier one operators around the globe. Frankly, it's what you would strive for if you were starting a business from scratch. And we really believe that we are early in the development curve of these segments and the potential addressable markets for both across gaming, lottery, and sports betting operators is huge. In short, we feel we have a unique opportunity to capitalize on. It's also important to mention, as Lauren did, how strong our gaming machine businesses, particularly in the UK, are performing with levels not seen since the triennial in our betting shop business. And our sales funnel in the adult gaming center segment is also at record levels. I guess the icing on the cake to all of this is the signing of the new five-year agreement with our largest pubs customer, JD Weatherspoons. It's worth noting that the importance of the synergies and benefits we derive from the combination of our digital and retail businesses. We leverage our design studios to develop games that work in both segments and drive play to each channel and reduce our overall cost by spreading the development across both segments. It's also very beneficial to have players exposed to our content and familiar with our content in both channels, which drives engagement with both. And lastly, our commercial relationships are strengthened with key customers by having multiple products available to them across the globe, including our virtual sports alongside our gaming offerings, and this will hold true with both lottery and sports betting operator customers. Many in this industry talk about omnichannel, but we're proof of it every day. So now on to the segments themselves. As Lorne mentioned, our interactive business had a very strong first quarter with revenue growth of 38% on a functional currency basis, and that momentum has carried on into April, with the last week of April being the highest revenue week we have ever had, even beyond December, which is largely driven by the holiday-themed games, and it's historically our high watermark. This growth was well distributed across all geographies, but primarily in the core markets of the UK and North America that make up approximately 75% of this business. We have several drivers in the next few quarters with the launching of some key new titles, particularly in North America with the Terminator game, as well as now getting FanDuel Live in Michigan and with New Jersey and Pennsylvania also to come with FanDuel. We made a substantial investment in our talent base and capacity and account management that's paying dividends. with growth coming in key markets like Italy and the Netherlands that had been reasonably flat. Our game design teams continue to produce content that's resonating with players across all our markets, and our recent game, Catch the Day Reeling Them In, has come out of the box with some amazing numbers, and we're anxious to get it into the North American market. Moving over to virtual sports, the virtual sports business continues to deliver very strong results with 42% revenue growth year over year on a constant currency basis. Although online now represents almost 80% of the virtual sports revenue, we've also seen over 10% growth in the retail part of our business in mature markets like Greece and Italy, which speaks to the quality of our offerings and working with our customers to tweak and enhance our product to appeal to their player base. We're very excited about the potential of the NFL license and all the potential ways we can deliver multiple products leveraging that license. similar to what we've done with varied and unique offerings of our soccer product on a worldwide basis. The NFL brand, we believe, will resonate with sports betting players and operators and we'll comment further on that as these opportunities coalesce. We also believe this license will really appeal to the lottery market and early indications are bearing that out. We're targeting the first variation of the NFL product to be live for the kickoff of the 23 season in September. but we'll also be adding variations throughout the rest of the year and before the next Super Bowl. We're excited about the launch of our home run shootout game this quarter and believe this product will resonate with our customers in North and Latin America, as well as potential new markets in other parts of the world. And finally, we are excited about the Women's World Cup this summer and showcasing our women's soccer product, the first of its kind in women's virtual sports. Moving over to the gaming side of the business, particularly in the UK, is delivering positive results with our betting shop business hitting numbers we've not seen since the stakes changes brought on by the triennial. It bodes well for the business going forward as we start installations this quarter with Betfred and Paddy Power with the new Advantage cabinet that Lauren discussed previously and that was trialed successfully throughout 2022. This conversion process will take most of the second and third quarter, and we would hope to see improved cash box results throughout, but certainly by quarter four. We're also seeing great demand for the Vantage cabinet in the adult gaming center market, which is akin to slot halls and where, ironically, Novomatic happens to be our largest customer. And we'll be rolling that cabinet out in that segment throughout the rest of the year and building up our recurring revenue content fees as we move into 2024. We've widened our lead on our nearest competitor in the Greece market, and we'll be replacing 2,500 terminals there this year with both Vantage and Valor cabinets, which we anticipate will strengthen our market advantage. We're also putting terminals on trial in a key Canadian province to build upon the success of our sale to WCLC at the end of 2022. Although the gaming segment is mature, we're bullish on the various growth opportunities we have at this part of the business and leveraging our content teams to drive continued improved performance, therefore creating the operating leverage that Warren addressed in his remarks. Finally, the leisure part of the business is seeing very positive early results in the holiday park segment of the business with growth rate percentages in the teens. As we have previously discussed, we lost some share in the pub segment at the end of last year, but expect to have recovered all of that loss by the end of 23. And we are happy to announce that we've signed the contract extension, as mentioned, with our largest pubs customer where we have approximately 60% of their estate covering over 400 pubs and over 2,000 machines. We believe that the combination of our new Vantage cabinet, enhanced service, and analytics offerings will help us to put this part of the business back in growth mode. So with that, I'll hand it over to Stuart for further remarks.
spk06: Thank you, Brooks. Good morning, all. I'm going to keep my comments on the numbers brief, given the detail provided in the release and the fact that the 10Q will be filed after hours today. Again, the comparative numbers are impacted by a change in the pound-dollar rate, which was an average of 1.21 this year versus 1.34 last year, a fall of about 10%. As Lorne mentioned, we're hopeful, given where the rates have been, that next quarter this becomes less of an issue and may even be a tailwind. For now, when I discuss this quarter, I'll talk about functional currency variances and less data otherwise, so it's easier to understand the underlying trends. So overall, revenue grew by a healthy 20%, with virtual sports growing 42%, interactive by 38%, and gaming by 26%. This growth in gaming is attributed to a combination of product sales, which more than doubled, and growth in participation revenue of 12%. As mentioned, there was the final amount of VAT revenue in the prior year quarter. So excluding this, gaming growth would have been 31%. While Leisure experienced good growth in holiday parks, it declined in pubs. Part of this was deliberate, given a strategic exit last year of non-core, low-margin, non-gaming products, but also because of a reduction in gaming terminals as part of one customer renewal. For this reason, we're proud to announce the JD Weatherspoon's agreement today, with the same number of terminals in operation as we currently have. As mentioned, holiday parks' income was strong, but keep in mind that due to the first quarter seasonality, most parks remain closed for at least two months. So the impact is less than it would have been otherwise. That said, we're confident that Leisure will be back into growth mode soon. At an adjusted EBITDA level, we grew 15%, meaning EBITDA margin fell from 33% to 32%. However, adjusting for the aforementioned VAT revenue and also for exhibition costs in this quarter, which we didn't have last year, EBITDA grew 26%, and margin increased from 31% to 32%. Virtual sports EBITDA grew an impressive 50% and interactive 30% with slightly reduced margins due to investment in technology and commercial heads to continue to drive top line growth. Gaming grew 7% excluding 2022 VAT income, again with a change in margins with the mix in product sales. As we talked about before, these can vary quarter to quarter in absolute and margin terms depending on the deals recognized in the quarter. Leisure EBITDA declined 29% on a small absolute number, with this being typically weakest quarter from a seasonality point of view. Below adjusted EBITDA, we took a charge of $3.7 million for restructuring costs in the SG&A line, including 0.7 in stock-based compensation versus nil in the prior year. Last year's numbers also benefited from a 0.9 gain on disposal of the Italian VLT business. For these reasons, net income per diluted share reduced from $0.05 last year to a $0.01 loss this year. We think it's useful to show the underlying trends of the business, so we've introduced adjusted net income, which grew from $0.07 million last year to $3.6 million this year. And adjusted net income per diluted share increased from $0.02 to $0.13. So turning attention to cash flow, overall in the quarter, we increased cash from $25 million at the start to $27.8 million at the end. Although there is no interest payment in this quarter, it is still traditionally a cash outflow due to the holiday parks being off-season and capex usually being the highest quarter. Last year, for example, there was an outflow in the quarter of $7 million, whereas this year there was an inflow of $2.8 million. Another demonstration of the positive trajectory of the company. And while we didn't buy any stock back in the quarter, we did net settle a number of RSUs, which has the same impact, taking out over 300,000 shares at an average price of $12.67 per share. Finally, focusing on the balance sheet, just a reminder our debt has a fixed coupon rate of less than 8% and does not mature until June 2026, although from next month is callable. We finished the quarter with net leverage of 2.6 times. So with that, I'll hand back to Lorne for any closing remarks before opening up to Q&A. Thanks, Stuart.
spk07: That was, to say the least, a great financial summary. I don't have anything to add to that just at the moment. So, operator, can you please open up the program to Q&A?
spk05: At this time, if you'd like to ask a question, simply press star 1 on your telephone keypad. Our first question will come from the line of Barry Jonas with Truist Securities. Please go ahead.
spk09: Hey, guys. Wanted to start with the white paper. It was recently released and would like to just get your thoughts on how you see it impacting both your digital as well as maybe land-based businesses.
spk03: Thanks. I think We need to keep this answer short, Barry.
spk07: But our short takeaway answer to that question is there was nothing at all in the way of negative surprises in the white paper. And we're comfortable that, at least as the white paper stands now, we've pretty much baked the impact of all that into our planning and projections for the business.
spk09: Understood. And then just to follow up, you know, NFL deal, very exciting. Wanted to maybe just get a few more thoughts on how you think this could grow the business. And if you're able to give any color on the deal structuring, or maybe more directly how this should influence the segment margins. That would be pretty helpful. Thanks.
spk04: Yeah. Well, I think in terms of the opportunity, as I mentioned in my remarks, from a product standpoint, we're going to have a couple different variations similar to what we have in soccer. And I think it's reasonable to assume that the largest sports betting operators are going I consider this a catalyst moment for us in North America in particular, but certainly all of our existing customers, the Bet365s of the world, are very excited about this product. In terms of the economics, we're a sub-licensee to Aristocrat, as you know. We feel that the economics are very favorable from not only our perspective and Aristocrat's, but also the NFL's. So I would expect that if this does the numbers that we expect it to do, that it will only, you know, obviously our margins are extraordinarily high in this business already, but I would certainly expect that it would help increase the margins in this business.
spk07: Whatever royalties we might pay would not dilute our margins. I think that's it.
spk04: Yeah. What Lauren was just saying is that whatever... Just to reiterate that the royalties that we would have to pay would not dilute our margins, which is true. In fact, I think our margins will increase.
spk03: Great. That's really helpful. Thank you so much. Thanks, Barry.
spk05: Your next question comes from the line of David Bain with B Reilly. Please go ahead.
spk10: Great. Thank you, and good morning, everyone. Obviously, significant growth across the board, particularly as you unpack the FX, the VAT, the other item. Given one key trends, do you think about, and really trends today, do you think about 2023 growth the same way you did a few months back, especially when also factoring the Sterling appreciation? And Lauren, before either of you answer, I mean, recall last earnings, you mentioned you were comfy with consensus. I'm not sure we can relate the response to that comment as a practice, but maybe this one time would be helpful.
spk03: I had a hunch that question was coming.
spk07: Yes, so we did back at the end of the fourth quarter say that we were comfortable with consensus estimates for 2023. And we weren't comfortable at that time saying much more than that because, as you know, and as we reiterated, our general policy is not to give guidance. But I think as you correctly identified, Dave, a number of things have either clarified or strengthened since the end of the fourth quarter. clearly the pound is very important. I said a second ago, right now it's $1.27, so it's 5 or 6% higher than it was on average for the entire second half, the entire last three quarters of 2022. So that's an important indicator. As I said a minute ago, there were no negative surprises that we could see in the white paper. So I think any impact of that we have already accounted for in our budgeting and in our projections. Not to sound like a broken record, but again, the apples to apples growth momentum in the first quarter was obviously very significant. with now most recently the betting shop and the interactive business being at record levels. And as Stuart said, the strength of the new customers that we've got in the holiday park business makes us feel pretty comfortable that as we move through the year, we'll go back into growth and leisure. You know, in these 22% revenue growth and 26% EBITDA momentum in the first quarter was after a decline in leisure, which we're pretty sure is going to reverse itself. So I think if we take all that stuff together, it would probably be disingenuous of me to simply reiterate what we said at the end of the fourth quarter, which is we're comfortable with the consensus. I think you can't look at all of those, let's say, clarification factors and not come to the conclusion that we're comfortable right now that we can beat the consensus for the year. But I'd want to get at least another quarter ahead before we started to even think about establishing a range for quantifying that, but certainly we're feeling much more ebullient about the last three quarters of this year and because of the strength in the first quarter of the full year than we were a couple of months ago.
spk10: That was super helpful. Go ahead, Brooks. No, no, no. Okay, so given the EBITDA growth mix, you know, CapEx Lite, the free cash flow, low net leverage, that dynamic, how are you viewing capital allocation, particularly as it relates to share repurchases? I know we're active, but in light of what you just discussed and the dynamic I did, you know, what other capital allocations or just how are we thinking about buybacks and you know, going forward relative to what you've done to date?
spk07: Yeah, well, you know, we haven't been able to buy any stock back lately because we've been in an extended blackout period. But I think I can comfortably say that as soon as we're allowed to resume share buybacks, we intend to start doing so.
spk03: Absolutely. Okay, awesome. Yeah, that works. Thank you very much. Yep.
spk05: Your next question comes from the line of Chad Bainon with Macquarie. Please go ahead.
spk08: Morning. Thanks for taking my question. I wanted to ask a two-parter on interactive. I guess, firstly, can you kind of help frame out, you know, how important the integration and partnership with FanDuel is You mentioned that's going to happen in the near term in Michigan and kind of how revenues could potentially build throughout the year. And then the second part of that is just related to the overall content that you have. If your games are successful, I'm guessing your partners will want a bigger menu of games. How are you feeling with just the overall content delivery that you have? and if it makes sense to bulk up or potentially acquire an additional studio. Thank you.
spk04: Sure, Chad. So in terms of FanDuel, so we're live with them now in Michigan, and we're seeing the results exactly as we expected as we roll games out to them, and so it's resonating with their players just as we had hoped it would. So I think we're at like 93% market penetration now in Michigan right But in Pennsylvania and New Jersey, we're still kind of 70% because of not having FanDuel. So clearly, when we go with FanDuel in Pennsylvania and New Jersey, we would expect to get the same uplift that we're seeing out of Michigan. So obviously, that's kind of the biggest customer that we don't have across all of our markets. The second part of your question in terms of content Yeah, I think we certainly aren't going to forsake the quality of our content because it's clearly resonating with players. And there's a limit as we're currently constructed with how many games, how many very good games that we can get out the door. So I think it's a natural, certainly our customers would like to have more content from us. And we're either going to have to figure out a way to either build or buy to provide more content because that seems to be the thing that's kind of, I guess maybe not necessarily missing, but would be additive and help even further enhance the growth in the interactive business. So, yeah, you're spot on with that.
spk08: Okay, great. And then looking at margins, you said excluding the items that you called out. I believe margins were actually up year over year. And a lot of that just comes down to the segment growth. So I'm assuming if digital continues to grow, you should have some overall margin lift for the company. But anything else for us to just be aware of when we're thinking about margins, whether it's inflation, component cost, et cetera, or do you think
spk07: um the the expense side of the of the business is that a good place and as the revenues grow we could actually see margins expand thank you yeah i think um you know they're they're they're elements on either side of the scale exactly as you said chad um you know all the supply chain stuff has still not completely worked its way through the system. I, for one, think it's actually the most important reason why we still have inflation in the United States. And it will take the fixing of the supply chain thing once and for all to bring inflation back to where it needs to be. So we're seeing that. And we certainly have inflation in our costs in the UK. But at the same time, the operating leverage, particularly in our digital businesses, is so huge. And with the growth rates that we're seeing in the digital revenue, we're pretty comfortable that the benefit to margins from the operating leverage in the growth of the digital businesses will continue to outweigh the negative track of supply chain and inflation. So net-net, I think, as our revenues continue to grow without getting into any quantification, we're pretty comfortable that our margins will be growing in tandem.
spk08: Thanks, Lorne. Thanks, Brooks. Appreciate it. Okay, Chad. Thanks.
spk05: Your next question comes from the line of Jordan Bender with JMP. Please go ahead.
spk11: Great. Thanks for taking my question. Good morning. So interactive and virtual, those segments continue to grow nicely. I think the last kind of leg of online opportunity comes from the iLottery segment that you guys have spoken about. Can you just kind of update us on some of the conversations you're having there? It seems like legalization of that is just maybe a little bit slower than expected. So anything you can kind of add color there. Thank you.
spk04: yeah well so maybe two things one is we had mentioned on the last call that we were you know about to go live with our uh online uh i lottery product in the dominican republic and we have subsequently done that and that's so that's a nice achievement for us and we'll start seeing some more growth out of the existing dr business but in terms of of the i lottery expansion opportunities in the states. Obviously, we're following some of this very closely. Massachusetts in particular looks like it seemingly has some momentum to add that. It's kind of like handicapping what states in iGaming will also get legalized. So we're preparing and building product with the idea that both from an iGaming and iLottery perspective that there'll be more and more states coming down uh the pipe but we just don't know exactly when that's going to happen so we want to be prepared for massachusetts yeah i did i did mention massachusetts yeah great that's all i got for this one yeah that did thank you um that's all i got for this morning thanks guys okay thanks your next question comes from the line of edward engel with roth please go ahead
spk02: Hi, thanks for taking my question. The gross win per day on the gaming side continues to impress. It looks like it was up queue on queue again. Just curious, I mean, is Vantage really moving the needle at all yet, or is it still such a small part of the base? And I guess, can you just remind us the number of Vantage units you're expecting to deploy as a part of your two big deals over the next two quarters? Thanks.
spk04: Yeah, so thank you. So Vantage has only been on trial, but it's been for over a year and that's the 13% uplift number that we referenced. So Vantage is just, there aren't Vantage terminals out live other than the trial machines, but through, you know, the rest of this, really the second and the third quarter, maybe bleeding a little bit into the fourth quarter, you know, we'll have 6,000 units out in the field in the betting shop business, so with Patty Power and Betfred, so they'll be fully converted by the time we get into the fourth quarter, and then William Hill subsequently. So we're certainly expecting, we see no reason, it's a smaller sample size on the 13%, so there'll be a little bit of dilution, but we're certainly expecting the cash box to lift by the Vantage term owners, our customers feel that way and the players are very engaged. So yeah, we're fully expecting once Vantage is fully deployed to get an uplift in the cash box.
spk07: We should also just add to that, that I think what Brooks was saying about the gaming or the betting shop business is exactly right, but we're also, we're very sanguine about what the impact of the Vantage Cat C version or the Pub and AGC version of Vantage will be. And so we're really expecting, you know, a double-pronged impact of that in the market.
spk12: Yeah, good point. Helpful, thanks.
spk02: And then for the Greece agreement that you announced today, Is that more in line with your legacy structure where you're going to do the capex yourself and place it, or is that more like some of these new contracts where it's more of an asset light?
spk06: So, hey, Ed, it's Joe. So it's in line with how we've done before. So it technically shows us our capex, but I think as we've said previously, we get a significant upfront contribution. So from an accounting point of view, we see the capex, but we don't see the big cash hits.
spk12: Perfect. All right, great. Thanks, and congrats on another great quarter. Thanks, Ed. Thanks, Ed.
spk05: Your next question comes from the line of Ryan Signall with Greg Hallam. Please go ahead.
spk01: Good morning, Lauren Brooks-Stewart. Just one for us, otherwise everything's been covered. Just follow up on Greece. I guess I think I caught a 2,500 new placements. I guess are those new placements, expansions, or are you displacing competitors in that market? And then can you remind us kind of where your market share stands today?
spk04: Sure. It's actually replacement terminals. So we have just over 9,000 terminals there, and I think we're, you know, by 10 or 15% in terms of placements higher than anybody else in the market. But the 2,500 terminals that are going in, which will be a combination of both Valor and Vantage, Our replacement terminals that are all those terminals are probably five years old so as part of the again with in concert with our customer opap and trying to make sure that we maintain our edge and Can do everything to drive the cash box numbers up because that's how we you know, that's how we participate Putting in new content and as Stuart just mentioned, you know, we get an upfront fee from from them in doing so and So it's to our advantage to have the newest, best, highest performing content in the market. So that's more or less what we're doing with the 2,500 terminals.
spk03: Very good. Nice job, guys. Thanks. Thanks.
spk05: I will now turn the call back to Lorne for any closing remarks.
spk07: Thanks, operator. I don't have anything to say really at this point that we haven't said already. I think we're... We're all very pleased with where we are at the end of the first quarter. I think everything is pretty much clicking on all cylinders. We're looking forward to a very strong second quarter, and we look forward to talking to you again in three months at the conclusion of that. So thanks again.
spk05: That will conclude today's call. Thank you all for joining. You may now disconnect.
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