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spk04: Ladies and gentlemen, good afternoon. Welcome everyone to BlackRock TCP Capital Corp's fourth quarter 2022 earnings conference call. Today's conference call is being recorded for replay purposes. During the presentation, all participants will be in a listen-only mode. A question and answer session will follow the company's formal remarks. To ask a question, please press the star key followed by the digit one. I will repeat these instructions before we begin the QA session. And now, I would like to turn the call over to Katie McLean, Director of BlackRock TCP Capital Corp Investment Relations Team. Katie, please proceed.
spk09: Thank you, Tia. Before we begin, I'll note that this conference call may contain forward-looking statements based on the estimates and assumptions of management at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties, and actual results could differ materially from those projected. Any forward-looking statements made on this call are made as of today and are subject to change without notice. Additionally, certain information discussed and presented may have been derived from third-party sources and has not been independently verified. Accordingly, we make no representation or warranty with respect to such information. Earlier today, we issued our earnings release for the fourth quarter and full year ended December 31, 2022. We also posted a supplemental earnings presentation to our website at www.pcpcapitals.com. To view the slide presentation, which we will refer to on today's call, please click on the investor relations link and select events and presentations. These documents should be reviewed in conjunction with the company's form 10-K, which was filed with the SEC earlier today. I will now turn the call over to our chairman and CEO, Raj Vaig.
spk07: Thanks, Katie. And thank you all for joining us for TCPC's fourth quarter and year-end 2022 earnings call. I will begin today's call with a few comments on the market environment and provide an overview of our fourth quarter and full year results. I will then turn the call over to our president and chief operating officer, Phil Tseng, who will provide an update on our portfolio and investment activities. Our CFO, Eric Cuellar, will review our financial results as well as our capital and liquidity positioning in greater detail. I will then conclude with a few closing remarks before we take your questions. 2022 was a year in which the equity and fixed income markets experienced significant volatility, particularly in the latter half of the year. This was driven by a combination of geopolitical uncertainty and the Federal Reserve's ongoing actions to aggressively raise interest rates in order to curb inflation, an effort that appears will continue for the foreseeable future. This volatility persisted in the fourth quarter and adversely impacted spreads across fixed income markets, including middle market loan spreads. No sector or asset class was immune to the market volatility, and in the fourth quarter, we experienced a decline in NAD due in part to the market volatility, but mostly due to lower valuations on three specific portfolio companies and company-specific items. I will touch on these in more detail later, excluding the impact of these three names our NAV decline would be closer to 3%. In this environment, our team's more than two decades of experience lending through multiple market cycles and our ability to work with our portfolio companies to manage through challenging operating environments is particularly valuable. We are also reminded of the benefits of direct lending that historically delivered premium yields to the liquid markets and, importantly, better downside protection in periods of market turbulence. One aspect of our investment strategy that has led to strong downside protection and very low loss rates throughout our history has been our strong portfolio management and monitoring procedures. In addition to the ongoing monitoring our deal teams perform over investments and their individual portfolios, on a quarterly basis, TCPC's Investment Committee also performs a thorough review of every company in the portfolios. As part of this process, the same deal team members that originated and underwrote these investments review the company's most recent financial performance and engage in dialogue with the business owners and operators to assess both current and projected performance relative to our original underwriting assumptions. All of this is conducted within the context of our deep industry expertise. We evaluate each borrower's ability to manage in times of stress using both a forward-looking and historical lens. Additionally, our industry expertise has always enabled us to underwrite loans with strong lender protections in the form of covenants specifically tailored to contemplate both company and industry specific dynamics. As you can imagine, these existing protections are more important today given the market environment as they allow us to take any actions required to protect our capital. Before providing highlights from our fourth quarter and full year financial results, I'd like to provide some more context to the sequential decrease in our NAV. In addition to the more normative valuation adjustments across the portfolio due to wider market spreads in the quarter, two-thirds of the total unrealized losses recorded in the fourth quarter was attributable to three portfolio companies, Admentum, Razor, and AutoAlert. Each of these write-downs was driven by a unique set of circumstances impacting the company and or the industry in which they operate. It is important to emphasize that the issues driving these valuation impacts are isolated, and in the case of Inventum and Razor, driven by exposure to well-performing equity investments, which tend to have more mark-to-market volatility. Importantly, the credit quality of our portfolio remains in excellent shape. In the case of Inventum, as many are aware, the company has delivered very strong performance over the last several years, driven in part by the ongoing shift to online learning. which led to significant write-ups and significant realized gains on our investment. While Edmonton's performance continues to be strong, the pace of growth and demand for online learning tools coming out of COVID has slowed but continues. Given the normalization of growth in the sector, combined with a more moderate outlook and general public market valuation declines, the value of our investment was marked down in the fourth quarter. However, the overall performance of our investment has been very positive, and we remain confident in the long-term performance of Inventum. Razor Group is a consolidator of small to medium-sized brands that sell through Amazon's third-party platform. While we continue to view our loan to Razor as well-covered, the company's enterprise value has been pressured by the challenges facing the broader Amazon ecosystem, which resulted in a reduction of the value of our warrants, as well as a modest decline on the value of our first lien loan. Finally, Auto Alert is a company that provides marketing software to auto dealerships. Auto Alert was severely impacted at the start of the pandemic when auto dealerships were closed, and it has subsequently been impacted by the supply chain issues that have resulted in limited new car inventory. We are working with management and the sponsor on next steps. We are encouraged by the fact that some of the macro issues seem to be abating, and recent results reflect improving performance. Now, turning to our fourth quarter and full year 2022 highlights. We delivered strong net investment income of 40 cents per share in the fourth quarter and $1.53 for the full year. Given the floating rate nature of our portfolio, our net investment income benefited from the increase in base rates in 2022, as well as wider spreads on new investments made throughout the year. As an acknowledgement of the higher ongoing earnings power of our portfolio, primarily driven by higher base rates, we announced a $0.02 per share increase in our dividend, beginning with the fourth quarter dividend that was paid on December 31st. And our board of directors today announced a $0.32 per share dividend distribution for the first quarter, payable on March 31st to shareholders of record on March 16th. This is in addition to the $0.05 per share special dividend that was announced in December and paid last month to shareholders of record as of December 31st. As a reminder, we have always emphasized the stability of the dividend and the coverage through our recurring net investment income. Throughout TCPC's history, we have consistently covered our dividends, our recurring net investment income, a commitment that remains important to us even with the recent dividend increase. Phil will discuss our fourth quarter and full year investment activity in more detail, but in summary, we are being disciplined in deploying new capital in this uncertain environment while also taking advantage of the more lender-friendly investment environment. We reviewed a substantial number of transactions during the year and selectively deployed capital in a small percentage of those opportunities. Looking back at our historical performance as a public company, since 2012, we have generated a 10.3% annualized return on invested assets and a total annualized cash return of 9.3%. We believe our performance remains at the high end of our peer group, demonstrating our ability to consistently identify attractive opportunities at premium yields and deliver exceptional returns to our shareholders across market cycles. Now I will turn it over to Phil to discuss our investment activity and portfolio position.
spk02: Thanks, Raj. The public market volatility and uncertainty in the capital markets generally drove a slowdown in activity in 2022 versus the record levels in 2021. Positively, though, we saw a meaningful shift toward a more lender-friendly investment environment marked by wider spreads and less pushback on deep terms. Against this backdrop, we continue to identify and review a significant number of potential investment opportunities as we capitalize on the scale of the broader BlackRock U.S. private capital platform and the breadth of our team's experience. At year end, our portfolio had a fair market value of approximately $1.6 billion. 88% of our investments were senior secure debt spread across a wide range of industries, providing portfolio diversity and minimizing concentration risk. We also believe our portfolio is well-positioned to perform amidst market uncertainty given our emphasis on companies with established business models in less cyclical industries. The portfolio at quarter end consisted of investments in 136 companies, an all-time high. As the chart on slide six of the presentation illustrates, our recurring income is distributed broadly across our portfolio and is not reliant on income from any one company. More than 90% of our portfolio companies each contribute less than 2% to our recurring income. 85% of our debt investments are first lien, providing substantial downside protection. And 94% of our debt investments are floating rate, proving an important benefit in this rising rate environment. Moving on to our investment activity, we believe our deal source channel agnostic approach and our industry specialization provide an advantage, particularly at a time that we're seeing a slowdown in traditional sponsor-backed activity. Our industry-focused deal teams continue to identify unique investment opportunities from a wide range of sources, including directly through our industry contacts and management teams, in addition to our traditional sponsor relationships. In reviewing these opportunities, we emphasize transactions where we act as a lender of influence. which enables us to negotiate deal terms and conditions that we believe provide meaningful downside protections. These include substantial collateral and tailored covenant packages that are particularly important in periods of economic volatility like we are in today. In addition, our industry specialization, which our borrowers value, bolsters our ability to assess and effectively mitigate risk in our underwriting and when we negotiate terms in the credit documentation. Despite the slowdown in activity in 2022, TCPC invested $338 million, including $75 million in the fourth quarter. The deployment in the fourth quarter included loans to seven new and six existing portfolio companies. Follow-on investments in existing holdings continue to be an important source of opportunity for us. In terms of dollars invested, 50% of total investments in the fourth quarter 44% in the full year 2022 were in existing portfolio companies. We believe this incumbency is an important advantage when we source investments, given these are companies who already know and understand well. We've seen them execute on their investment thesis and have a healthy existing dialogue with the management teams. TCPC's largest investment during the fourth quarter was a senior secured first lien loan to Madison Logic, a provider of account-based and content marketing services to B2B marketers. We viewed this as an opportunity to invest in an industry leader that's benefiting from tailwinds in the account-based marketing sector. We also believe that the high ROI on account-based marketing versus other marketing services will be more resilient in periods of economic stress. BlackRock's prior experience and expertise in the complex account-based marketing sector allowed us to understand the real merits of the credit and obtain a conservative deal structure at an attractive risk-adjusted return. Our second largest investment in the quarter was a senior secured first-lane term loan to Integrity Marketing, the leading independent distributor of life and health insurance products in the U.S. During the fourth quarter, given our familiarity with the business model, the industry, and our relationship with the sponsor, we led an incremental first lien term loan to the company to support ongoing M&A. Integrity operates in a stable and growing segment of the insurance market that has demonstrated a track record of strong organic and inorganic growth. New investments in the fourth quarter were offset by total dispositions of $75 million. The overall effective yield in our debt portfolio increased from 9.2% at the end of 2021 to 12.7% at the end of 2022, reflecting the benefit of higher base rates as well as higher spreads. Investments in new portfolio companies during the quarter had a weighted average effective yield of 12.2%, exceeding the 9.9% weighted average effective yield on exited positions. As I noted earlier, we are seeing a shift toward a more lender-friendly environment with improvements in both pricing and terms relative to 12 and even six months ago. Year-to-date, we have seen a modest pickup in activity and have been investing selectively, maintaining our underwriting discipline and being mindful of the inflationary environment. We emphasize companies that have significant pricing power to pass on higher input costs, including increases in their cost of capital. It's also important to note that we do not have the rights of perfection, but we do build in sufficient buffers to ensure companies can withstand higher costs and changes in the market environment without impairing their ability to service our loan. Our pipeline continues to remain healthy, and the yields on investments in our pipeline are generally in line with our current portfolio. To date, we have had limited prepayment income in the first quarter. Let me now turn it over to Eric to walk through our financial results as well as our capital and liquidity positioning.
spk08: Thank you, Phil. As Raj noted, our net investment income in the fourth quarter benefited from the increases in base rates in 2022. Net investment income of 40 cents was up nearly 30% versus the fourth quarter of 2021, and it exceeded the fourth quarter dividend of 32 cents per share. On an annual basis, Net investment income was $1.53, an increase of approximately 22% over 2021. Today, as Raj noted, we declared a first quarter dividend of $0.32 per share. We remain committed to paying a sustainable dividend that is fully covered by net investment income, as we have done consistently over the last 10 plus years. Investment income in the fourth quarter was $0.81 per share. This included recurring cash interest of $0.68, recurring discount and fee amortization of $0.02, and pick income of $0.05. Investment income also included $0.02 of dividend income, a penny of other income, and $0.03 from accelerated OID and exit fees. As a reminder, we amortize upfront economics over the life of an investment rather than recognizing all of it at the time the investment is made. Operating expenses for the fourth quarter were $0.33 per share and included interest and other debt expenses of $0.18 per share. Incentives in the quarter totaled $4.9 million or $0.08 per share. Net unrealized losses in the fourth quarter totaled $71 million, or $1.22 per share. As Raj discussed earlier, unrealized losses were primarily driven by three items, a $21.5 million unrealized loss on our loan to Auto Alert, and unrealized losses on our investments in Amentum and Razor Group of $18.6 million and $6.3 million, respectively. as well as unrealized losses across the portfolio from wider market spreads. Net realized losses for the quarter were only $46,000. The net increase in net assets for the quarter was $47.8 million for $0.83 per share. We have a robust valuation process, and substantially all of our investments are valued every quarter using prices provided by independent third-party sources. These include quotation services and independent valuation services. And this process is also subject to rigorous oversight, including back testing of every disposition against our valuations. The credit quality of our overall portfolio remains strong. We placed our loans to auto alert on non-accrual during the fourth quarter. A total of three portfolio companies are now on non-accrual, representing only 2.0% of the portfolio at fair value and 4.2% at cost. Turning now to our liquidity, our balance sheet positioning remains strong, and we ended the quarter with total liquidity of $367 million, relative to our total investment of $1.6 billion. This included available leverage of $286 million and cash of $82 million. Unfunded loan commitments to portfolio companies at quarter end equal 8% of total investments, or approximately $127 million, of which only $28 million were revolver commitments. Our diverse and flexible leverage program includes two low-cost credit facilities, two unsecured note issuances, and an SBA program. Notably, our unsecured debt continues to be investment rate rated by both Nudis and Fitch. Given the modest size of each of our debt issuances, we are not overly reliant on any single source of financing, and our maturities remain well-laddered. Additionally, we are comfortable with our current mix of secured and unsecured financing and do not have any immediate financing needs. the weighted average interest rate on our outstanding borrowing increased modestly to 3.9% from 3.26% at the end of 2021. That is an increase of only 64 basis points, while base rates increased approximately 4.25%. This is the result of currently having over 75% of our borrowing from fixed rate sources. Now, I'll turn the call back over to Raj.
spk07: Thanks, Eric. While the economic outlook may be uncertain, our team is focused on delivering the results our shareholders have come to expect from TCPC. We remain highly disciplined in our underwriting. We make investment decisions based on a comprehensive analysis of each company, its management team and strategy, and relevant industry dynamics. Our investment committee evaluates each investment and regularly monitors the financial performance of each of our holdings. From our perspective, where we are in the credit cycle matters less than our ability to selectively capture opportunities throughout the cycle. To that end, we draw upon our team's two decades of experience and BlackRock's extensive resources to prudently identify opportunities that align with our selective investment approach while providing our borrowers with financing solutions to help grow their businesses. We continue to source strong senior secured credit opportunities which have historically outperformed equities, bonds, and other unsecured debt through economic downturns. While underweight highly cyclical industries, we will also continue to maintain a broadly diversified portfolio. In closing, while 2022 presented challenges, we successfully navigated the evolving environment and are cautiously optimistic about the year ahead. We remain focused on generating strong risk adjusted returns for our shareholders. And with that, Operator, please open the call for questions.
spk04: We will now begin the QA session. If you would like to ask a question, please press star followed by 1 on your touch-tone keypad. If for any reason you would like to remove that question, please press star followed by 2. Again, to ask a question, please press star 1. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly to allow questions to generate in queue. The first question comes from the line of Robert Dodd with Raymond James. Please proceed.
spk05: Hi, guys. A couple of questions about the NAV here. On auto alert, first um and then the equity pieces in a second um i mean to your point it was it was impacted at the beginning of the pandemic and then supply chain and and getting new vehicles etc i mean none of those trends seem to be uh particularly new um yet the the the markdown this quarter was obviously pretty significant i mean back in 21 and a half million bucks um Can you give us any more? What was the fact that it was originally meant to mature in January? Obviously, it hasn't. What was the drive of that being so large, the markdown being so relatively large, when the trends you described don't seem to be particularly new or new in the fourth quarter of 22? Hey, Robert.
spk07: It's Raj. Thank you. I'll try to answer that. and the way I can, and there's probably some elements that I can't address directly. But I would say that the trends aren't new. I would agree with that. The compound effect, I mean, but the trends are neither a one-quarter trend, and you have sort of a accumulating and compounding effect of things coming out of the pandemic that are top-line oriented, either dealerships shutting down. And then as they are opening up, you have an inability to actually get the inventory because of supply chain issues that sort of hinder the value proposition of the business, the applicability of it. So I think you had a series of things that compound that led to finally an audit rule and I guess an acquiescence, if you will, in terms of where the company is and where they need to go. Ironically, coming out of Q4, a couple of the things I've actually abated. The supply chain issues are loosening up. We are seeing some early signs of recovery. But I think to answer your question, you're sort of catching the whipsaw effect of things that are kind of creeping through the prior couple of years, accumulating in a way in this quarter on a company basis. And then there are some external data points that we just have to take into account that I think really brought the valuation into something under range that we're talking about here. And I think there'll be more detail that we can provide in subsequent quarters, but I would try to leave the answer at that. Hopefully it addresses your question.
spk05: It does answer that part of the question. I mean, obviously the maturity on the loan was February 15th, which has already passed. I think if it had repaid since quarter end, you would have probably said so. So I'm going to presume that it hasn't. Was all of that taken into account, whatever the situation actually is today, at the time the fair value was determined at 1231? Or have we got, is Q1 going to be another re-evaluation
spk02: um given given it it probably i'm guessing mr maturity yeah robert this is phil thanks for thanks for that uh follow-up so uh you're right the maturity is imminent um and that has precipitated um deeper discussions with the management team and the private equity sponsor on next steps we can't provide too many details at this point but we're eager to um you know perhaps next quarter But I think it's important to note that what Raj had mentioned, which is the signs of improving performance on the business. And perhaps it's worthwhile giving a quick reminder. You know, Auto Alert is a software and data analytics business used by auto dealerships to drive sales growth. But in the past several years, with inventory levels being so low due to the supply chain, as we've discussed, And consumer demand being so robust kind of post-pandemic, the dealerships just couldn't keep cars on the lots. So the need for sales optimization software was less of a priority. Obviously, we're seeing reversal of those dynamics. Higher rates are clearly impacting demand for cars, which requires a need for more sales and analytics tools. And inventory... On the dealers, lots are returning to more normalized levels. So keep in mind, the mark is a reflection of financial performance through 2022. It does not reflect what we've been witnessing in the last two months or a year to date. So do I think next quarter is going to be the same in terms of a decline? We're not seeing signs of that.
spk07: Yeah, and yeah, Rob, just to wrap it up on your question about if the maturity is taken into account and anything regarding the contractual elements that are known at the time of the valuation are certainly taken into account by the valuation provider. So that would include maturity, performance, you know, through that period and so forth. So it would have been taken into account. I think there's a host of more things that are going to, you know, come to play here. As Phil mentioned, we hope to talk about that in the future quarters. The good news is, in a sense, that we're in, ironically, a better environment for this business, even though it's an ongoing challenging economic environment.
spk05: Got it. Got it. I appreciate all that comment. If I can, on the other two, Edmentum and Laser, Successful equity investments, so it's a completely different angle from auto alert. Adventi, obviously, is kind of three-quarters of the combined for that, which has been a successful asset for you. Can you give us, on the markdown side, I mean, you you talked about adventum you know the the the the outlook to the market etc maybe could you segment how much of the markdown was was market comps or or volatility inputs for volume valuing warrants or anything like that versus um actual outlook adjustment uh i don't know if i can give a
spk07: quantitative breakdown, I would say both applied. Certainly, if you think about both Inventum and Razor, if you have to categorize these businesses, they'd be considered growth equity or growthier equity. Higher multiple businesses that are still high multiple, it just happens to be a reset in the public markets. In the case of Inventum, in both, aside from the market multiples, there is just a tempered growth. In the case of Inventum, there is a bit of digestion, if you will, from the massive spend coming through COVID on the online school. And I think it's just more of a, it's still a growing outlook. It's probably a more inflection of a bump and then a continued long-term secular positive that has an impact today. I don't think that's going to continue necessarily because the outlook is still positive. and where the public markets go, anyone knows. But I don't want to quantify because I don't think I have that breakdown, but both are applicable. In the case of Razor, just the broader Amazon ecosystem, as we mentioned, dealing with supply chain issues, those, similar to the auto alert situation, are abating. People have a lot of money to spend on things, and a lot of the products these resellers sell are things that are essential and people are continuing to buy so long as they can get a hold of them to ship out. So I would like to give you a better breakout on company versus market multiples. It's a little blended. But just to reiterate, both apply here. But in each case, we're pretty positive on the positioning and the outlook for the two businesses. It just happens to be
spk05: know a reset of valuations that that we're not immune to got it thank you and thank you for the um the additional color on all those items that's it for me thanks a lot thanks robert thank you the next question comes from the line of kevin fultz with jmp securities please proceed hi good morning and thank you for taking my questions
spk06: You know, looking at trends within the portfolio, can you provide an update on where weighted average EBITDA portfolio company leverage and interest coverage strand at quarter end and how they have trended over the past few quarters?
spk08: Yeah, Kevin, thanks for the question. We haven't seen a noticeable change or a trend, per se. We realize that there's a little bit of a lag in some of that reporting, and that might change over time. But we'll say we haven't seen really a meaningful change over the last couple of quarters.
spk07: Yeah, and let me add to that, Kevin. I would say, keep in mind, our portfolio is not sort of an indexed approach to the economy. We're very deliberate about where we're focusing by industry and by company. A fair bit of our portfolio is growing, so... If I had to guess, I don't have the exact data in front of me, I wouldn't expect there to be a significant change in average EBITDA, LTVs, or leverage. And I would say that the majority of the, just to be clear, the majority of our portfolio, given we're in industries, you know, software, services, healthcare, financial services that are growing, the majority of our portfolio is growing on our revenue as well as an EBITDA basis. So I think trend-wise, you should consider it a healthy portfolio, one that we've been very deliberate about where we are positioning it based on secular views. At an industry level, those industries are healthy and growing, and we're tending to work with well-positioned companies within those industries. So in turn, the average levels of EBITDA and, you know, attachment points on the leverage, I would think are stable, if not improving, but I don't want to make that comment without the data in front of me.
spk06: Okay, that's good to hear. You know, I appreciate your comments on specific investments that were written down during the quarter. Now, I guess on the amendment side, have you seen any increase in amendment requests from borrowers, and can you discuss your expectations for that to potentially pick up over the next few quarters?
spk02: Yeah, thanks for that question. So, amendment requests have increased, and I think that's a clear reflection of the impact that the higher rate environment is having on not just the middle market economy, but broadly as well as we've seen even within the large cap space. So, we think we are seeing amendment activity pick up. We attribute that to both our ability when we do negotiate these deals up front putting in tight covenants, and most of the times multiple covenants, that really gives us a seat at the table early on when there is either slower growth or maybe there's not as much liquidity as we're baking in up front. And in most of those cases, I think what's really important are the decisions that we make around the table on the investing committee how we want to de-risk those positions to ensure, you know, full recovery on those loans. In fact, a number of our refinancings in recent quarters have been driven by amendment or near-amendment cases where the companies are breaching covenants or they perhaps need more liquidity and our tight structure is have put us to the table requiring them to refinance us out if we're not comfortable in the position we're in.
spk06: Okay. I appreciate the comments, Phil, and I'll leave it there.
spk04: Thanks. Thank you. The next question comes from the line of Christopher Nolan with Ladenburg-Thalman. You may proceed.
spk03: Eric, was the decline in interest income quarter over quarter due to auto alert going down accrual?
spk08: It was primarily. We didn't recognize any income on auto alert for the quarter. And lower prepayment income as well.
spk03: And then for auto alert, is there a bank facility ahead of your position?
spk02: No, there's not. We're in first decision on that loan. All right.
spk03: And then is there any discussions regarding a restructuring or bankruptcy related to auto alert?
spk02: We're not at a point where we can discuss the details, although I do appreciate the question. But we are in deep discussions with both the management team and the sponsor on Go Forward plans.
spk01: And we hope to have more to report in subsequent quarters.
spk03: Okay, follow-up question. How much was spillover income in the quarter?
spk08: For the quarter itself or sort of cumulative?
spk03: Cumulative, please.
spk08: Yeah, cumulative is about $1.20 per share.
spk03: Great. Thank you.
spk08: Thank you.
spk04: Thank you. Again, to ask a question, please press star one.
spk00: There are no additional questions at this time.
spk04: I will hand it back to the management team for closing remarks.
spk07: We appreciate your participation on today's call. I would like to thank our team for all of the continued hard work and the dedication. I would also like to thank our shareholders and capital partners for your confidence and your continued support. Thanks for joining us. This concludes today's call.
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