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spk03: Good day and welcome to the One Spa World second quarter fiscal 2024 earnings call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. And to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ms. Alison Malkin of ICR. Please go ahead.
spk00: Thank you. Good morning, and welcome to One Smile World's second quarter 2024 earnings conference call and webcast. Before we begin, I'd like to remind you that certain statements and information made available on today's call and webcast may be deemed to constitute forward-looking statements. These forward-looking statements reflect our judgment and analysis only as of today. and actual results may differ materially from current expectations based on a number of factors affecting our business. Accordingly, you should not place undue reliance on these forward-looking statements. For a more thorough discussion of the risks and uncertainties associated with the forward-looking statements to be made in this conference call and webcast, we refer you to the disclaimer regarding forward-looking statements That is included in our second quarter 2024 earnings release, which was furnished to the SEC today on Form 8K. We do not undertake any obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise. In addition, the company may refer to certain adjusted non-GAAP metrics on this call. An explanation of these metrics can be found in our earnings release issued earlier this morning. Joining me today are Leonard Fluxman, Executive Chairman, Chief Executive Officer and President, and Stephen Lazarus, Chief Financial Officer and Chief Operating Officer. Leonard will begin with a review of our second quarter 2024 performance and provide an update on our key priorities. Then Stephen will provide more details on the financials and fiscal year 2024 guidance. Following our prepared remarks, we will turn the call over to the operator to begin the question and answer portion of the call. I would now like to turn the call over to Leonard.
spk05: Thank you, Alison. Good morning and welcome to One Star World second quarter 2024 earnings conference call. It's a pleasure to speak to you all today to share another period of record performance. Our team delivered an outstanding second quarter, capping off an excellent first half of the year. The consistent, strong performance of our business evidences the power of our operating platform to provide unsurpassed guest experiences for our cruise line and destination resort partners. And driven by our continued momentum and scaling impact of our growth drivers, we are once again increasing our annual guidance beyond the quarter's outperformance. With earnings today, we also announced that our board of directors adopted an annual cash dividend program, which recognizes our ability to leverage our industry-leading operating platform, integrated growth initiatives, and asset-like business model to generate ongoing increasing of the tax-free cash flow. Turning to the highlights of the quarter, Total revenues increased 12% to a record $224.9 million compared to $200.5 million in the second quarter of 2023. Income from operations increased 40% to a record $18.8 million compared to $13.4 million in the second quarter of 2023. Adjusted EBITDA increased 25% to $27.1 million compared to $21.6 million in the second quarter of 2023. And unlevered after-tax-free cash flow increased 18% to $23.8 million compared to $20.1 million in the second quarter of 2023. The unlevered after-tax-free cash flow conversion rate was 88% in the second quarter of 2024. The expansion in our ship count continued during the period. At quarter end, we had health and wellness centers on 197 ships with an average ship count of 188 ships for the quarter compared with 183 ships and an average ship count of 177 ships in the second quarter of 2023. At quarter end, we had 4,300 cruise ship personnel on vessels, compared with 3,813 cruise ship personnel on vessels at the end of the second quarter of 2023. The quarter included continued progress towards our key strategic priorities. Let me share some highlights with you. First, we captured highly visible new ship growth with current cruise line partners and added new cruise line partnerships to our fold. To this end, in the second quarter, we opened health and wellness centers on two new shipbuilds, one with Cunard and the other with Silver Sea Cruises. This follows the opening of our health and wellness centers on the Icon of the Seas and Sun Princess in the first quarter, bringing our year-to-date new builds to four. We continue to expect to end fiscal 2024 operating on board 198 vessels. Second, As it relates to our higher value services and products, as you recall, we introduced new cryotherapy body services and new cryotherapy and LED facial services to complement the new technology driven Elemis Biotech 2.0 facial and light stem therapy, which augments our acupuncture revenue. We will continue to ramp these new services to the entire fleet over the next few quarters. Third, we focused on enhancing health and wellness center productivity. We grew key maritime operating metrics with continued strong growth in revenue passenger per day, weekly revenue, and revenue per staff per day. This was driven by growth in total cruise guests utilizing the spar and the number of treatments per guest, which benefits from the success of our technology enhancements, our expertise in staff training, and the simplification of our service menu options and treatment blends. Additionally, we continue to attract and retain staff, which has led to an increasing percentage of experienced staff members working on board. We are pleased to see more of our staff members sign on for additional contracts, reflecting the compelling workplace environment we provide and their affinity towards our company. These more experienced staff members are also skilled at recommending product and service options which combined with the simplification of our service menu and treatment length led to growth in higher-priced products and services. Pre-booking revenue as a percentage of services remained strong at 23%, even as we phase in new partners that are just beginning to scale. We continue to see passengers that pre-book services spend 30% more than those that do not pre-book. And finally, we continue to expand productivity within our MediSpa. The quarter saw same spa revenue overall up double digit year over year. We continue to increase the number of doctors and nurses we have on board and add to our service offering. At quarter end, MediSpa services were available on 144 ships, up from 142 ships in the first quarter this year, and up from 129 ships at the end of the second quarter of 2023. We remain on track to expand many spot offering to 148 ships this year. Fourth, we further enhanced our financial position and flexibility. Our balance sheet strength was bolstered by repayments of our first lean term loan this quarter. And fifth, as mentioned, our board of directors approved and reinstated an annual cash dividend program with the initial quarterly dividend payment of four pennies per common share payable to shareholders on September 4th, 2024 record as of the close of business on August 21st, 2024, reflecting the strength of our asset life business model and consistent record of growth. In summary, we are pleased to report an excellent second quarter and first half of the year and remain excited about our business outlook. Our third quarter is off to a strong start, and we remain confident in our ability to deliver robust operating and financial performance, both in the near and long term. Overall, we continue to expect fiscal 2024 to represent another year of record growth and increased value for our shareholders. With that, I'll turn the call over to Stephen, who will provide more details on our second quarter results and guidance. Stephen. Thank you, Leonard. Good morning, everyone. We are pleased to report ongoing strength with the delivery of better than expected results across all key financial metrics in the second quarter. We continue to drive shareholder value with the quarter generating record revenue, record net income, and record adjusted EBITDA. And we ended the period with a stronger balance sheet and delivered positive cash flow. I am also pleased that our board demonstrated confidence in our business outlook and our ongoing ability to generate strong cash flow with the initiation of an annual cash dividend program. Very more detail on the second quarter we reported earlier this morning. Total revenues were $224.9 million compared to $200.5 million in the second quarter of 2023. The increase primarily was attributable to our average ship count increasing to 188 health and wellness centers onboard ships operating during the quarter, compared with our average ship count of 177 health and wellness centers onboard ships operating during the prior quarter, together with our continued productivity gains across our operations. Cost of services were $150.8 million, compared to $137.2 million in the second quarter of 2023, with the increase again being primarily attributable to costs associated with increased service revenues of $180.8 million in the quarter, compared with service revenue of $163.2 million in the second quarter last year. Cost of products were $37.1 million compared to $32.2 million in the second quarter of 2023. The increase primarily attributable to costs associated with increased product revenue of $44 million in the quarter compared to product revenue of $37.3 million in the second quarter of 2023. Net income was $15.8 million or net income per diluted share of 15 pennies as compared to a net loss of $3.2 million or net loss per diluted share of three pennies in the second quarter of 2023. The improvement was primarily attributable to a $12.2 million decline in other expense from the change in the fair value of the warrant liabilities, and more importantly, a $5.4 million increase in income from operations. As you know, the change in fair value of warrant liabilities was the result of the re-measurement to fair value of the warrants exercised during the second quarter of 2024, reflecting changes in the market price of our common stock and other observable inputs deriving the value of these financial instruments. Importantly, though, there are no outstanding warrants as of quarter end. The $5.4 million positive change in income from operations primarily derived from the increase in the number of health and wellness centers onboard vessels and our continued productivity gains. Adjusted net income was $21.7 million or adjusted net income for diluted share of 20 pennies as compared to adjusted net income of $15 million or adjusted net income per diluted share of 15 pennies in the second quarter of last year. Adjusted EBITDA was 27.1 million compared to adjusted EBITDA of 21.6 in the same period of 2023. Moving on to the balance sheet, we ended the quarter with a stronger balance sheet, including total cash of $63.7 million after repaying $15 million of our first lien term loan during the quarter. Since the second quarter of fiscal 2022, we have repaid over $109 million of indebtedness, and we have reduced our debt now to $123.8 million as of June 30th, 2024. In the second quarter, unlevered after-tax free cash flow was $23.8 million compared to $20.1 million in the second quarter of 2023. Moving then on to the guidance, with our strong second quarter performance and a positive outlook, for the second time this year, we have increased our fiscal 2024 guidance beyond the outperformance in the first half. We now expect revenues to increase 11% and adjusted EBITDA to increase 18% at the midpoint of the guidance ranges from our fiscal 2023 actual results. For full year 2024, we now expect total revenue in the range of $870 to $890 million versus our previous guidance of $860 to $880 million. And adjusted EBITDA is now expected in the range of $102 million to $108 million, up from our previous guidance of $95 to $105 million. We expect to end fiscal 2024 on 198 cruise ships and at 52 resorts. For the third quarter, we expect total revenue in the range of $235 to $240 million and adjusted EBITDA in the range of $27 to $29 million. Our third quarter guidance assumes an ending ship count of 197 and resort count of 52. In summary, we enter the third quarter strongly positioned. We are confident in our outlook and our ability to continue to deliver increased value for our shareholders as we execute our proven strategies supported by our advantageous operating platform, robust growth initiatives, and asset-light business model. And with that, we will open up the call for questions. Chuck, if you could please open the call. Thank you.
spk03: Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. We ask that you please limit yourself to one question and one follow-up. And if you have further questions, you may re-enter the question queue.
spk02: And at this time, we'll pause momentarily to assemble our roster. And the first question will come from Gregory Miller with Truist Securities.
spk03: Please go ahead.
spk01: Thank you very much. Good morning, Leonard and Stephen. My first question relates to product spend. I'm curious how product spend is trending post-treatment today. The second quarter revenues looked quite strong. Are you seeing any changing trends in what types of products or price points are resonating more with your guests today?
spk02: Right there, can you hear me?
spk07: We can, Greg.
spk05: I thought Leonard would take the question. Maybe he just dropped off momentarily. No, sorry. Yeah, sorry, Greg. I was in mute. Yeah, thanks. Product demand and service demand continues to be very strong. We see many benefits associated with some of the new services we've rolled out, the many simplifications And so we see retail attachment being just where we need it. I think there's room to improve it as we continue to simplify menu choices, which actually promotes good retail attachment. So demand is there, and we're very happy with the progress on retail attachment.
spk01: Thanks. And in terms of my follow-up, This relates to spa menu pricing, and it's maybe a little bit more of a hypothetical question, but I'm going to try to ask anyways. To my understanding, you look at United States high-end resorts for benchmarking in terms of spa menu pricing. I'm curious, how much is the U.S. resort spa menu pricing a potential ceiling for you in terms of your own spa menus? For example, if you're in the position where your demand is stronger than a U.S. resort today, which is quite possible given many affluent Americans are traveling abroad this summer, including, of course, going on cruises, do you expect to get much pushback if you raised pricing above an equivalent stateside alternative?
spk05: Yeah, so look, we always look at land-based, high-end resorts. I mean, listen, not every single banner you would say is in that particular category. So we, I mean, remember, Greg, we go across many, many different categories of demographic and consumer. So we look at a lot of different land-based data as we determine where pricing should be. And if you compare us to luxury or high-end, as you say, we're definitely still quite value-oriented. We think there may still be an opportunity down the road, not right now, but certainly for 2025, we will, as part and parcel of our budgeting process, look at the opportunity where we can take further pricing.
spk01: Okay, understood. Thank you very much.
spk07: Yep, you're welcome.
spk03: The next question will come from Max Reik-Lamal with Cowan & Company. Please go ahead.
spk09: Hey, thanks a lot, guys. And congrats on a really strong quarter. So first, curious, if you can provide some additional color on the implied fourth quarter revenue and margin guidance. Seems like it could be pretty conservative on both top and bottom line, just given the run rates you're seeing, as well as the implied third quarter. So just how are you framing and sort of what's the thinking that's going into the fourth quarter?
spk07: Yeah, nice.
spk05: Good morning. As you know, the fourth quarter seasonally is a softer quarter for us. And historically, that has been the case for free position. And obviously, we come out of the much more productive summer vacation period for North American school holidays. So it's not atypical to see a softer fourth quarter than the third quarter season. And our implied margin for the fourth quarter at the midpoint is 11.9% on an EBITDA basis. So it's not far short of where we've delivered in the first and second quarter and just gives us the opportunity to the extent that we would need to do any type of promotional activity because of those repositionings, et cetera, to do so. So I think the short of it is it's what we would expect. and also from a demand perspective based upon where the ships begin to sail during the first half of that quarter as they reposition.
spk09: Got it. Okay, that's helpful. And then congratulations on announcing the dividend. So curious, what's the strategy around the growth profile of the dividend? How are you thinking about that? and then balancing it with continuing to pay down debt. Is the strategy to pay down debt completely over the medium term, or would you be okay continuing to carry some level even longer? So just curious about the balance of dividend versus the debt pay down.
spk05: Yeah, I think the word that you use is most appropriate, the balance. As you obviously know, everybody knows we do continue to have debt, We also do have a share repurchase program that is in place. And so we like the flexibility to be able to allocate between the share repurchases that they pay down. And of course, now there's also the dividends. Yes, we would be comfortable carrying some debt. I think we've already previously mentioned that the debt is at a very manageable level, net debt well below 1%. in terms of where we would want it to be. So, I mean, one turn rather. So, yeah, we're absolutely comfortable. And I think that it'll just come down to what makes the most sense, right? Opportunistically, the stock repurchases may come into play over time. There's certainly the opportunity to grow the dividend. And, you know, depending on what happens with interest rates will drive how aggressive we are in paying down the debt.
spk09: Got it. And just a quick follow-up on that point. Your cash on the balance sheet continues to grow. So is that related to potentially just having some dry powder to buy back stock, or what's the rationale for that?
spk05: So it isn't a higher point than it traditionally has been. A driver of that is, as you know, our line of credit expired in March and we did not renew it. So it really is just to have some additional liquidity on the one hand. And, yeah, look, to the extent that there's an opportunity on the stock repurchase side, it's always nice to have some cash to be able to pull the trigger on that.
spk09: Got it. Thanks a lot. Best regards. Thank you.
spk03: The next question will come from Sharon Zaxia with William Blier. Please go ahead.
spk04: Hi. Good morning. It was really impressive to see what it looks like spot productivity actually accelerates. from where you have been, which is already at really good levels. And I know, Leonard, in your comments, you talked about treatments per guest improving and some tech enhancements that were helping drive that, among other factors. Can you talk about what those tech enhancements are and kind of what you have coming down the pike? I think you have some investments in AI going on right now, but I'm not sure if they've manifested yet in any way in the back of house or front of house at the spots.
spk05: Yeah, thanks, Sharon. These are good questions. So let me just answer the simple one first. We have not rolled out any AI enhancements yet. They're still in development phase, I would say sort of first innings. We're going through identification of opportunities, particularly on board and then certainly in supply chain and other areas in the back office of One Small World. but there's nothing in place right now nor anything that will in 2024 impact the ability to use AI to drive better productivity. So we're working on it. It's in its early stages of development, and we certainly are very, very excited about some of the areas that we are going to tackle with respect to enhancing further productivity enhancements from staff with the use of some of the AI technology. But once we have it fully developed, once we have it ready to roll out, we will certainly be happy to talk to everybody, the community, shareholders, et cetera, about what this AI will do for the operations. Obviously, it's going to take some testing, et cetera. So too early to comment, but certainly exciting to see what it may do for us once we roll it out. With respect to productivity gains, we saw definitely a pickup in the number of guests coming through our spas. I mean, it was close to about 500,000 more, but then the denominator of the new ships went up a lot more. So effectively, you know, we're treating more people, the simplification of our menus, which is helping promote both service demand and retail attachment, all led to better productivity during the quarter. And certainly that productivity continues as we start at the third quarter.
spk04: Thanks for that. And then on product margin, it's kind of beating my model every quarter. And so, Stephen, can you talk about what the drivers are of product margin? And I know you don't own Elemis anymore, but where can product margin go? And are we seeing MediSpa kind of help elevate this? I'm trying to figure out. You know, we're in the mid-teens now, well above 2019. I mean, what's the line of sight on how high we could see a product margin ultimately go?
spk05: Sure. So MediSpar, no, there's no real product attachment of note as it relates to MediSpar services at this point in time. So that is not helping. as it relates to the cost of the product, and yes, we no longer own Elemis, but as you know, we did enter into pre the company's disaggregating a long-term supply agreement. So the cost side of that is fixed in terms of go forward. And so where you see improvements there, it's around things that we're doing on board. And the biggest driver right now, frankly, is just the continued productivity improvements and the lack of discounting being required in order to promote those sales.
spk07: Okay, thank you.
spk02: The next question will come from Laura Champagne with Loop Capital.
spk03: Please go ahead.
spk08: Hi, my question is also on that product side, which is beating our estimates. I'm wondering if you have looked at additional product lines you could add there? I know we've talked about ways to build an e-commerce business so that your customers keep paying you even after they've left the ship. Is there M&A that could be done there that we would need to do to have sort of an e-commerce side of the business or just share kind of your growth thoughts on products?
spk05: Yeah, thanks, Laura. No, we don't have a need. I mean, Elemis really We're involved in the R&D side. We certainly sit on the calls. We give them a lot of ideas about what's working in our particular world versus their land-based and retail outlets. So whatever we think may be needed, I mean, we're still a pretty large customer of theirs. They listen and they provide us with the necessary development of product. You know, in some cases, certainly in the luxury area, we do offer a smaller complementary range. I mean, we have some product on there. We've even added product that we don't own into those lineups where needed. But I have to tell you, Elemis' lineup across face and body is more than enough for us to continue to grow. And all of our services and protocols that we use All are, you know, the architecture around those services are supported on the back bar and the retail side by the development of the Elemis product range. And so we are very excited about new things coming from Elemis next year. So there is really no need to look at this. And, you know, we get approached all the time to put products on board because we have such an incredible showcase and showroom and trial and test for our guests and consumer. But at the same time, you know, we have a very good deal, long-term deal, as Stephen mentioned, with Elemis, and we'll continue to keep that as our dominant branch. With respect to the e-commerce side, we do sell Elemis on e-commerce. But then, you know, Elemis sells a lot of e-commerce on its own website. So we don't We compete against them, but not in the same way because it's mostly our guests that are buying product that they've bought on board. We continue to look at what we can do to expand the e-commerce side. It's certainly doing better than it did in 2019, and to the extent that something looks like it might be worth adding to e-commerce and the post-guest experience and sale, we'll do that, but there's nothing right now.
spk08: Understood. Thank you.
spk03: You're welcome. The next question will come from Asya Georgieva with Infinity Research. Please go ahead.
spk06: Good morning, guys. I didn't know where to start with my conventional remarks. Great Q2, great increase to the outlook. and the fact that you really saved the dividend is fantastic. And then, Stephen, you said that we don't have to deal with awards. Again, March 19th is the date that I remember quite clearly. Can I ask a question on occupancy? Because I think it's an opportunity, and it can go both ways. One of the major brands that you serve on has pretty much gotten to – historical levels of occupancy. Another one who may have reported earlier today is still lagging behind historical levels. So it seems that with greater occupancy opportunity, you might be able to continue to grow beyond what the ship count is.
spk02: Is that a fair assessment?
spk05: So I would point out that, as you know, we only service a small proportion of guests on board anyway. And generally speaking, you know, occupancies have pretty much gotten back to historical level. Some of them maybe even are surpassing that. But when that happens, as you know, when they're getting above the 100%, it's typically because they're filling those cabins with kids. And so that's really not our target audience per se. so I'm not I don't really think from a cruise line occupancy perspective there's still lots of opportunity for us obviously we love the fact that they always fill their ships and they historically have done that and are now continuing to do that again but when you start getting to you know 113 plus 100 plus percent occupancy the marginal increment for us is not that significant Fair enough Stephen thank you and the
spk06: Because you guys mentioned Silversea and Icon, and if I can add Utopia, three different types of demographics that would go on those ships, even between Icon and Utopia. How do you view the product that Royal is presenting, basically a shorter party-type voyage on Utopia versus Icon of the Seas, a family-type voyage versus Silversea, whether it's Ray or Nova, a much higher-end customer without any family, without any kids, I mean, longer voyages. How do you view these three different types of demographic target markets?
spk05: Asya, thanks. I think it's a very smart way that Royal Caribbean has approached The market, they're offering a family choice, and the icon is an incredible layout for families and kids. And then I think by introducing Utopia, shorter cruises, more younger demographic, maybe a little bit more partying going on, I think it's also quite smart as well. And I think we've seen this kind of demographic across different banners, and it's never been an issue for us. And look, our training and the way that we go to work on different types of length of itineraries, different types of demographics, caters to this. So I think it's very exciting that they're offering two identical ships catering to two different demographics. And I think they'll do equally as well. Still the seas in the luxury markets, beautiful ships, longer itineraries, no kids, as you say. We continue to excel on there as well. And recent results on there have been outstanding.
spk06: And so between Utopia, the party market, younger demographic, and ICANN, the more family-oriented, do you think that you may have a greater penetration rate at Utopia?
spk07: It's too early to tell.
spk05: I think a three-, four-day mix makes people make – you know, quicker choices because they've got a shorter period of time on the three-day and the four-day. They've got one extra day for deciding when they're going to participate in some of the amenities, including spa. But listen, I think the ship is outstanding. I think the itinerary that it's chosen from three, four-day I think will complement competitiveness against their other vessels. So no, I don't see any challenges. Certainly nothing that we can't
spk06: adapt to and this is not the first time we're handling three and four day party cruises we've done this for decades I was actually going the other way I was thinking this was more of an opportunity than a challenge younger couples who don't have kids can spend time at the spa as opposed to playing with their kids and I sound like some anti-kid I'm sorry. I'm not.
spk05: No, no, no.
spk06: A utopia-type product is actually better for you.
spk05: It could well be, but remember, whether you're on the family ship or the party ship with no kids, or if you're on the family ship, the icon with kids, the way in which the... Itinerary is laid out on the icon. The ability to put different kids at different ages in different types of programs doesn't impede the married couple from participating and enjoying many things that adults like to do on board. So no, look, is there an opportunity to do better with the young crowd? Possibly. But then again, we'll have to see as a concealer group, how they behave. So, yeah, it could be an opportunity, but I certainly don't think the icon is disadvantaged by it.
spk06: All right, fair enough. And if I may ask one last question, we know that pre-bookings tend to be a multiplier in terms of what gets spent on board. And you mentioned in your prepared remarks that having brands that are onboarding with you they may not be quite as attuned to or not have the pre-booking engine that would actually feed into pre-booking spots. So what is the opportunity in 2025, do you think, in terms of pre-booking penetration versus what we have had this year?
spk05: So look, as I mentioned, we were still onboarding different banners and continue to onboard them to get to scale. We think pre-booking will continue to move upwards. There are some good banners still to get onto the pre-booking platform at scale. We think there is a lot of work to be done with our cruise line partners with respect to enhancing the pre-booking experience and journey. We continue to provide content. We continue to provide different types of views of what is available on board. And we will continue to augment that so that they adapt to it and continue to improve the pre-booking journey. I think if they utilize everything that we're giving them, we will certainly see pre-booking start to move northwards.
spk06: And currently we're at about a 30% rate, correct?
spk07: Oh, you broke up there. What was the question?
spk06: Pre-bookings. We're currently at about 30% penetration in terms of pre-bookings. It's 23%. Pre-bookings are 23% right now, as we reported.
spk07: Okay, I'm sorry.
spk05: The 30% you mentioned is a pre-book guest. on average, spends 30% or slightly more than that than guests that do not pre-book.
spk06: Okay, perfect. Thank you so much, guys. And again, great quarter, and thank you for the great news this morning.
spk03: Thank you. This concludes our question and answer session. I would like to turn the conference back over to Mr. Leonard Fluxman, Executive Chairman, for any closing remarks. Please go ahead, sir.
spk05: All right, thanks, Chuck. Once again, thank you all for joining us today. We're very excited about the results for the first half of 2024, and we look forward to speaking with you when we report third quarter results and seeing many of you during our upcoming investor meetings. Thank you very much.
spk03: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
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