CatchMark Timber Trust, Inc. Class A

Good morning and welcome to the review of Catchmark Timber Trust's results for third quarter 2021. All participants will be in listen-only mode. Should you need assistance, please signal a comfort specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. 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 Ursula Godoy, Chief Financial Officer of Catchmark. Please go ahead.

Good morning and thank you for joining us for our review of Catchmark Timber Trust results for third quarter 2021. I am Ursula Godoy, Chief Financial Officer of Catchmark. Joining me today on the call are Chief Executive Officer Brian Davis and Chief Resources Officer Todd Rice. During this call, Catchmark management will make forward-looking statements. These forward-looking statements are based on management's current beliefs and the information currently available. Catchmark's actual results will be affected by certain risks and uncertainties that are beyond its control or ability to predict and could cause their actual results to differ materially from expectations. For more information about the factors that could cause such differences, we refer you to our 2020 annual report on Form 10-K and subsequent reports that we filed with the SEC. Today's presentation includes certain non-GAAP financial measures. Reconciliations of these measurements are included in our third quarter 2021 earnings release and financial supplement, which are posted on our website. and our Form 10-Q filed with the SEC yesterday, November 4, 2021. After our presentation, Brian, Todd, and I will be pleased to answer any of your questions. Now I turn over the call to Chief Executive Officer Brian Davis.

Thanks, Ursula. Good morning, everyone, and thank you for joining us today for our third quarter review. A lot has happened since our last earnings call in the first week of August. The band and sale was finalized, concluding our capital recycling strategy for large dispositions for now, and the Triple T exit was executed. The proceeds from these transactions were used to pay down debt and further strengthen our capital position. We continued to concentrate on optimizing our harvest operations, dealing successfully with wet weather challenges while maintaining our pricing advantages, and we refocused on expanding our presence in the premier U.S. South mill markets. The key takeaways today are Catchmark remains solidly on track to generate 2021 adjusted EBITDA, the top end of full year guidance. We also expect to exceed full year net income guidance. And after simplifying Catchmark's business and further strengthening our balance sheet over the last 20 months, we are well positioned for growth. Our harvest operations during the third quarter, again, delivered significantly higher year-over-year timber sales. pricing for both pulpwood and salt timber. This is a direct result of our longstanding and ongoing strategy to concentrate our investments in prime timberlands in the nation's leading mill markets using a delivered wood model supplemented by opportunistic stumpage sales. The higher pricing we captured, which also was well above market averages in the U.S. South, helped make up for lower harvest volumes year over year in the region due to persistent wet conditions. The successful Bandon sale in the Pacific Northwest, which closed in August, registered a significant gain and was a primary driver in achieving record quarterly net income and earnings per share. It also marks the end of our capital recycling program of large dispositions for now and our renewed focus on expanding operations and increasing scale in and around the leading U.S. South Mill markets, where we have achieved so much success. Proceeds from Bandon and the Triple T exit have been used to pay down debt, and as a result of our capital position in credit facilities, provide ample liquidity to pursue acquisitions as well as revenue-producing environmental initiatives. Let me emphasize, we are in a growth mode. Our objective is to be disciplined and prudent in securing acquisitions which help sustain our industry-leading harvest EBITDA per acre in market pricing premiums, while also maintaining stable per acre merchantable inventory. The anticipated value realization of our environmental initiatives should capitalize on increasing market demand to meet climate challenges, and we are already pursuing opportunities involving carbon sequestration, mitigation bank credits, and solar energy. We have already demonstrated a successful track record with mitigation bank transactions in our Dawsonville Bluffs joint venture. We have acquired and created nearly 500,000 credits, and we have sold to date more than 50% of those credits for a total of $10 million. Buyers have included the Georgia Department of Transportation, Vulcan Materials, a publicly traded waste management service company, and various counties and city municipalities. From a go-forward operating perspective, economic and market fundamentals supporting our business growth remain strong, including housing, household formation, current product pricing and outlook, and demand for wood products. The dynamics we have discussed before are in place, but we need the housing recovery to be sustained. Our U.S. South strategy is based on leveraging regional mill expansion and greenfield projects, which reinforce the region's standing as the nation's leading timber basket, serving an ongoing robust regional population expansion, as well as other domestic and global markets. New mill capacity will create added demand for catchmark harvest, and our prime timberlands are positioned to continue to capture pricing premiums through optimizing delivered sales and stumpage sales. In the third quarter, Those pricing premiums for pulpwood and salt timber were 38% and 16%, respectively, above Timber Mart South's south-wide averages. Our stumpage prices were 8% and 11%, respectively, above the prior year quarter. Strong pricing in both pulpwood and salt timber in the U.S. South offset an 11% harvest reduction in the region due to wet weather conditions and resulted in a 1% increase in regional timber sales revenue year over year. Lower overall harvest volumes in the third quarter, down 15% year-over-year, and timber sales revenues, down 12% year-over-year, resulted primarily from the band and large disposition and the U.S. south weather conditions. But a strong first half of the year, as well as a pickup and harvest activity in the fourth quarter, keep us on target for achieving the midpoint of our full-year harvest plan. In the third quarter, we also sold 17% fewer acres year-over-year at comparable prices per acre. But those timberland sales, together with the sales completed in the first and second quarters, already have exceeded the lower range of our full-year guidance target, totaling $13.1 million as of September 30th. These sales, combined with just under $1 million in land sales anticipated for the fourth quarter, keeps us on track to achieve the midpoint of full-year land sales guidance. Investment management performance was also in line with guidance. Asset management fees were comparable year-over-year, including a promote from the Dawsonville Bluffs Joint Venture, for exceeding investment return hurdles as a result of strong mitigation bank credit sales. In connection with the recent Triple T Redemption Agreement, the Asset Management Agreement was terminated and replaced by Transition Services Agreement, effective September 1, 2021, through March 31, 2022. Under the agreement, Catchmark will provide transition services for a fee of $5 million. Taken all together, third quarter year-over-year results registered 10% lower revenue and 20% lower adjusted EBITDA. This, again, was primarily due to timing of harvest and timberland sales, which were weighted to an exceptionally strong first half of the year, as well as the abandoned large disposition. The recognized $23.4 million gain from the $100 million abandoned sale, 13% above the 2018 acquisition basis, drove third quarter net income to $23.3 million. a record, and earnings to $0.48 per share, also a record. During the quarter, we paid $6.5 million in distributions to stockholders, fully covered by net cash provided by operating activities, bringing the year-to-date distributions total to $19.7 million. Three weeks ago, we declared a $0.75 per share cash dividend for common stockholders of record as of November 30th, payable on December 15th. Following the Triple T redemption, the right sizing of Catchmark's annualized dividend rate prioritizes investing and growth to increase our earnings trajectory and net asset value over time. And we expect to maintain our historical payout ratio of 75% to 85% of cash available for distribution. As we invest in future growth, we remain determined to generate predictable, stable cash flow and deliver fully covered dividends, our ongoing primary objectives. we are determined to maintain our course of a simplified strategy utilizing our strengthened balance sheet to make solid and straightforward investments. Now, Ursula will cover third quarter results in some more detail and discuss our strengthened capital position in light of the abandoned and triple T transactions.

Thank you, Brian. Over the first nine months of 2021, our businesses have performed to plan. And as Brian emphasized, we are expecting to meet full-year guidance in the upper range for adjusted EBITDA, while the successful abandoned sale sets us on an expected track to exceed net income guidance for the full year. Quarter after quarter, our prime Timberlands in leading U.S. South Mill markets continue to capture pricing premiums above market-wide averages, distinguishing our performance and superior management. And in particular, The third quarter delivered on this metric too. For the quarter end of September 30, 2021, Catchmark recognized record net income of $23.3 million, or 48 cents per share, driven primarily by the gain from the band enlarged disposition. Revenues totaled $22.1 million compared to $24.6 million in the prior year quarter. And adjusted EBITDA totaled $9.9 million compared to $12.4 million in third quarter 2020. Timber sales revenue totaled $15.9 million versus $18.1 million in third quarter 2020. The result of lower harvest volumes due to wet weather conditions in the U.S. South and abandoned disposition in the Pacific Northwest. Harvest volumes total 494,000 tons in the third quarter 2021 compared to 580,000 tons in third quarter 2020. Breaking out adjusted EBITDA by segments for the third quarter. Harvest EBITDA was $7.1 million compared to $8.5 million in third quarter 2020. Real estate EBITDA of $2 million compared to $2.3 million in third quarter 2020 due to selling fewer acres at a comparable per acre sales price. Investment management EBITDA of $3 million compared to $3.7 million in third quarter 2020 due to a decrease in adjusted EBITDA from Dawsonville Bluffs. Asset management fees were comparable year over year and included a $200,000 promote from Dawsonville Bluffs for exceeding return hurdles on mitigation bank credit sales. This investment has been very successful with more mitigation bank credit sales to come. In connection with the Triple T redemption, the Triple T asset management agreement was terminated and replaced by a transition services agreement effective September 1st, 2021. Catchmark received $5 million in cash in exchange for providing transition services through March 2022. The $5 million will be recognized as asset management fee revenue on a straight line basis over the term of the transition services agreement. In the third quarter, we also paid a dividend of 13.5 cents per share to stockholders on September 15, 2021, which was fully covered by cash flow from operations. Now, let's review Catchmark's recent activity to further strengthen the company's capital position, as we used a total of $135.4 million from the Bandon and Triple T transactions to pay down debt. Prior to the Bandon closing, we had amended our credit agreement to establish a $68.6 million revolver feature on Term Loan 8 and extended the maturity date of the existing revolving credit facility from 2022 to 2026. The new revolver feature allowed us to retain its borrowing capacity after using $95.4 million of abandoned disposition proceeds to repay debt. Its terms also are consistent with our term 8 loan, and the funds can be used for future acquisitions. Overall, the amendment provides improved liquidity, greater flexibility, and increased balance sheet strength to maximize debt capacity for future growth. As of October 15, 2021, following the Triple T redemption, Cashmark had increased its liquidity to more than $278 million, up from $180 million at the end of the second quarter. We had a cash balance of approximately $25 million, $150 million of borrowing capacity under the multi-draw term facility, more than $68 million under our delayed draw term loan, and $35 million under the working capital facility. Our $300 million of debt outstanding has a very competitive cost at 2.92% with no near-term maturities, and we are well within our financial covenants. We made no share repurchases during the quarter, and $13.7 million remains available under Catchmark's share repurchase program as of September 30, 2021. Coming out of the quarter, our liquidity gives us substantial capacity to execute on our growth strategy for acquisitions and environmental initiatives. We are well positioned to continue to cover our dividends from cash available for distribution and remain within our historical payout ratio of 75% to 85%. Now, Todd will review harvest operations in Timberland sales. Todd?

Thank you, Ursula. The third quarter was highlighted by the band of sale, shifted our entire focus back on US South operations and successfully managing through weather challenges in the Southeast. The abandoned disposition marked the end of a successful investment in Pacific Northwest timberlands. By the time of the sale closing on August 11th, we had completed 90% of planned full year harvest in the region, with most of that occurring in the first half of the year. As such, in the third quarter, timber sales revenue from the Pacific Northwest decreased 86% year over year due to the sale. In the U.S. South, even with wet weather challenges leading to 11% lower year-over-year harvest volumes in the region, our pricing premiums above market averages in our leading mill markets continued to provide an advantage. Catchmark's U.S. South pulpwood and soft timber stumpage prices were 8% and 11% respectively above the prior year quarter at 38% and 16% premiums to Timber Mart South's south-wide averages. This allowed us to register a 1% increase in regional timber sales revenues year-over-year to $15.5 million despite the 11% decrease in harvest volumes. Importantly, we adapted quickly and effectively to meet changing customer needs and product mix given the challenging on-the-ground conditions. Frequent rain events put extra pressure on production and customer raw material inventories, adding pricing tension for spot market deals. Our delivered wood model gave us an edge in competition to meet logging capacity demands and managing expenses. Negotiated delivered wood sales price increases also helped us maintain stumpage values, compensating for higher logging and hauling rates driven by increased fuel and labor costs. We remain very well positioned in superior markets with our prime timberlands and expect to have a solid fourth quarter. Weather conditions have improved and our mill customers are running very well with no mill quotas for deliveries. Our exceptional first half of the year and current fourth quarter outlook keep us on course to achieve the midpoint of our full year harvest volume guidance. At the same time, significant levels of new housing starts and home remodeling activity in the U.S. South have maintained robust demand for timber products in our premier mill markets. New sawmills also continue to come online, setting the stage for what should be increased production levels in 2022 and support of pricing levels for our harvests, both saw timber and pulpwood. In our existing Timberlands portfolio, We also are stepping up our environmental initiatives to secure mitigation bank credit opportunities as we did with Dawsonville Bluffs, as well as entering the developing carbon sequestration and solar markets. Helping address ongoing climate challenges is a high priority in our efforts to maximize growth while at the same time, sustainably managing our timberlands to increase long-term productivity. Now let's review timberland sales. After an outsized second quarter, Capitalizing on strong market demand, timberland sales activity in the third quarter lifted Catchmark's total 2021 timberland sales above the lower range of full-year guidance. Through September 30, Catchmark had sold 7,100 acres for $13.1 million and expect to close on just under $1 million of additional sales in the fourth quarter. In the third quarter, we sold 17% fewer acres year-over-year at a comparable price per acre to third quarter 2020. sold 1,000 acres for $2.1 million compared to 1,200 acres for $2.4 million in the prior year quarter. The acres sold had a lower average merchantable timber stocking than the portfolio average, 32 tons per acre versus 41 tons per acre. A higher margin, 37% versus 21% in the prior year quarter, resulted from a longer hold period. The band and large disposition for $100 million comprised 18,100 acres of wholly owned timberlands in Oregon. Over our ownership holding period, Bandon Harvest also recognized more than $26 million of gross timber sales revenues. In closing, we are having a busy fourth quarter with good visibility to achieve the midpoint of full-year harvest plan and land sales target and see good opportunities in our mill markets for 2022.

Brian, back to you. Thanks, Todd. Overall, the third quarter maintained Catchmark's trajectory to meet full-year objectives. and we have made significant progress in clearing the way for a new phase of company growth and a strong capital position. As we approach year-end, we continue to focus on the simplified strategy established when I became CEO to own and invest in prime timberlands, focusing on leading U.S. South Mill markets and continuing to optimize harvest operations. This strategy is and its execution have reliably delivered strong revenue and adjusted EBITDA results for our shareholders, including achieving the highest harvest EBITDA per acre in the industry while maintaining stable merchantable inventory per acre. With our capital recycling strategy of large dispositions concluded for now and the Triple T exit, we are also positioned to ramp up our timberland investments and value realization of our environmental initiatives. Catchmark is very much in a growth mode. with the capital available to support a growing pipeline. We're currently reviewing approximately 130,000 acres of potential acquisitions. As noted in our last call, we are focusing in and around leading mill markets, where we already have an established presence, looking to expand our scale through transactions in the $5 million to $50 million per transaction range. We'll remain extremely disciplined in meeting strict underwriting criteria. Acquisitions will focus on a property's near-term cash accretion or its long-term accretive portfolio attributes, or a combination thereof, which can drive predictable and stable cash flows in our prime term lands portfolio. Of the investments we are evaluating, 60% are near-term cash accretive, and the remainder have long-term accretive portfolio attributes. Our acquisition strategy also supports our industry-leading harvest EBITDA per acre while maintaining stable merchantable inventory per acre. Our targets include a high allocation of pine plantations with strong site indices, which are more immediately harvestable with higher merchantable stocking levels and an older average age, properties which help balance portfolio age class distribution and productivity, typically younger plantations, and environmentally focused alternative income opportunities related to carbon sequestration, wetlands mitigation bank credits, solar projects, and similar value creating initiatives. As we approach 2022, we are looking forward to making significant progress in executing on this growth plan to increase our cash flow from operations. We remain resolute in maintaining our course of a simplified strategy, utilizing our strengthened balance sheet to make solid and straightforward investments. And we will seek to continue to fully cover our dividend from cash flow from operations and build long-term value for our shareholders. All of us at Catchmark look forward to a very productive 2022. And it might be a little early, but this call also gives us an opportunity to wish you all a very happy and healthy holiday season ahead. Now, Ursula, Todd, and I will be pleased to take your questions.

We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are 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. At this time, we will pause momentarily to assemble our roster. The first question comes from Anthony Petinari with Citi. Please go ahead.

Good morning. Good morning. Brian or Todd, you know, when you look at your 370,000 acres, is it possible to talk a little bit more about kind of the inventory levels on those lands? I'm just trying to get a sense of sort of sustainable harvest yield and, you know, over the next few years, you know, should it be sort of in line with recent volumes? Or maybe can you go a little bit higher to take advantage of the strong pricing? Or do you need to rebuild some inventories? Just kind of any general thoughts there.

Hey, Anthony, good morning. This is Todd. It'll be very much in line with, you know, what we've seen in the past from a productivity level. You know, you're going to be in that, you know, five tons per acre. So when you think about total holdings and where we are and where the volume has come down, you know, as we're looking into 22 and that 1.6 to 1.8 range. It's really being in line with the current acres available, not necessarily from a productivity per acre, if you will. Thinking about your question of could you surge if a market improved, you saw major changes here and there. There's a little room to do that, but really for us, it's maintaining where we are, steady in these markets, and then as we look at acquisitions to build on that going forward.

Okay, that's very helpful. And then, you know, you talked about being in growth mode. I'm just wondering if you can talk about the, you know, sort of pricing that you're seeing for good quality industrial southern timberlands, you know, maybe where implied cap rates are and how that's changed, if it has changed from sort of pre-COVID period. Any thoughts there?

Certainly. First of all, we really like our assets. where we're located today in the US South. We've demonstrated some great success operationally on executing our strategy in those markets. We love our delivered wood system. High quality assets will always be high quality assets as reflected in the productivity while also maintaining that steady tons per acre which we maintain from an inventory standpoint. Now we're looking at the $5 to $15 million target range for us and What I see today is a really competitive marketplace. You know, even before the announcement from British Columbia talking about deferrals and implications associated with that and the positive influence as it relates to valuations in the U.S. South, I would have told you that the activity should be picking up as funds mature and fundamentals continue to improve. And what's interesting is that we're seeing valuations inching up, reflecting demand from traditional buyers plus potentially new investors looking to capitalize on the recognition forestry has a positive role in the environment. Another way of saying how is carbon and mitigation bank credits and other avenues from an environmental standpoint being implied into valuations. What I would tell you today is while it is inching up, there's this bias that people don't can't attribute how much value is actually included from a carbon value or other aspects into their land values, but they believe they're bullish on it. And so while historical methods of DCF or some of the parts may be applied, carbon is a bit of a wild card and still trying to be put into value today. But overall, high-quality assets continue to trade well, but the competition for those assets have increased. Okay, that's very helpful.

I'll turn it over. Thank you. Thanks.

Again, if you have a question, please press star then 1 on a touch-tone phone. The next question comes from Buck Horn with Raymond James and Associates. Please go ahead.

Hey, thanks. Good morning. And yeah, congratulations on all the prize balance sheet, and certainly congrats on the Braves as well, so go Braves. Absolutely. Go Braves. It's been a while. Totally. On the leverage, given all the progress you've made in improving liquidity and getting your coverage ratios in great shape here, as you go forward and you're targeting this pipeline of acquisitions, can you give us a framework for how you're thinking about what you're willing to take leverage back up to in this environment and You know, how willing are you to use the balance sheet here? And, you know, can you still find deals in this competitive market that would, you know, not dilute the existing cash flow?

Good morning, Buck. So that's a great question. I mean, you know, when you look at our leverage, we've been very consistent in how we view that. We've been very patient. and discipline in our efforts to continue to work it down over time. Our historical net debt to EBITDA has been in the, call it five to 11 range, and we've averaged around eight times. And so we sit here today, right? Our net debt EBITDA is in the lower end of that at 4.8 times, really as a direct result of the leveraging efforts here most recently, of course, with abandoned transaction, as well as the triple T redemption. So as we look forward, right, and you heard us talk about this on the prepared remarks, this team is focused on executing on our growth initiatives. And given the liquidity that we have now in the capital position, we feel very confident that we have the sufficient capacity to fund our near-term growth aspirations, which, you know, as you point out, you know, it will likely increase our net debt EBITDA for a period of time versus the current levels. But ultimately, We see it as a much more longer term view. You know, we sit here today, we don't have any maturities, you know, near term or refinancing risk. Our cost of debt is very competitive at 2.92% and we're in compliance with our financial covenants. So while you might see leverage going up slightly as we fund those growth initiatives, we do believe that, again, we will operate inside of that historical range where we've been.

Ursula, just to add on, when you talked about cash yields, I think, Buck, you had mentioned that with that low cost of debt, and now you're also looking at our effective dividend yield as well. Obviously, we're not really interested in issuing equity at this point in time. We've got sufficient capital. But even on an all-in cash basis, we're looking at somewhere in the three-and-a-quarter range. on historically financed acquisitions. And we can find transactions that are at or better as we sit here today. Now, markets, as I alluded to, will continue to evolve and may put some compression associated with those valuations. But I can, you know, from our perspective, we should be able to find transactions that are not dilutive to our per share basis.

Okay. That's helpful. Um, and, and kind of, you, you mentioned also that, I mean, there have been several new sawmill announcements, certainly across the U S south, um, capacity additions are coming. So it seems, I'm just wondering, have there been any specific announcements you can point to, um, directly tied to your, uh, acreage and wood baskets that you think could catalyze, um, you know, either harvest activity or pricing? And secondarily, I guess, you know, maybe further down the road, I'm wondering if you have any high-level thoughts on this Canadian announcement about, you know, what's coming out of British Columbia and how much harvesting they're deferring and how that may catalyze more capital migration into the U.S. South.

So I'll handle the BC conversation first and then turn it back over to Todd as it relates to our micro-markets. So, you know, going all the way back to our IPO, we really had a couple fundamentals that went along with this. One was the Canadian mountain pine beetle and its implications associated with production coming out of British Columbia and Canada. You combine that with the economy as well as housing starts, and essentially we had everything in place. At this point in time, we really need sustained housing to continue to create drains in our marketplaces. And from our vantage point, while it hasn't been formally approved, but the bias there is clearly sent by the BC government that they're looking to maintain old forests. And so by extension, if you're a capital deployer or a sawmill or a pulp mill, even if it doesn't come to fruition, your bias is going to be putting capital into the U.S. South for what we've seen for the better part of five to ten years now of capital coming into the U.S. South from Canfor, West Fraser, as well as Interfor, who's one of our bigger customers. And so on a long-term fundamental basis, we see that capital coming into the U.S. South. That's where the supply is, and we'll work that down, and with additional capacity coming in, we think that capital really is a catalyst for, you know, one thing that we didn't foresee coming into our marketplace, and that's a very positive aspect of it on top of environmental issues. So, Todd, talk a little bit more locally for us.

Sure. So, you know, it really goes back even before this year. You know, we had a lot of the capital coming to the southeast, and that was really across the board, whether you're looking at new greenfield, brownfield, or just, you know, overall production increases. really dating back to 18, 19, all that coming online. We're beginning to see that now. As far as new mills being a real catalyst in and around us, you know, I look at GP at Albany has been a really good one. You've had West Fraser that has increased production at multiple facilities as well as, you know, taking on an OSB customer earlier this year with merger. And then you have all of the increases that Inter4 has made, production increases. You've had can for as well with some new announcements coming in and so it's really a combination of all of those things coming together that's you know driving additional consumption which we have seen drive into the price as well which has really been what we've been looking at and talking about for the last really you know probably eight quarters or so about all of this coming online and really really getting churned up so additionally on the fringes you see where Rex Lumber had a facility over in Troy that's come online. So not only indirect with our ownership, but also on the fringes. So all of these things, you know, working in concert have been a real catalyst for us on the price. Additionally, on the coast, you also have the export business that has picked up again here in the southeast. And, you know, you're not seeing, you know, a lot of the issues around container availability and those things that you may see out on the west coast. Here it's been pretty steady and Recent weather had all of that impacted, so we've seen that pricing improve there too. And while we're not huge contributors to the export side with our ownership and where we sit, the tension that's there, the competitive nature of it, we definitely are able to play off of that.

That's great. That's fantastic, Collar. I appreciate all that. So congrats and good luck. Thanks, Bob.

This concludes our question and answer session. I would like to turn the conference back over to Brian Davis for any closing remarks.

Thanks, Drew. And thank you all today for joining us. We really appreciate your time and attention to our business. We hope you and yours have a great holiday season with your family and friends.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.