Consolidated Communications (CNSL) 28 Oct 212021 Q3 Earnings call transcript

My name is Julie and I will be your conference operator today. At this time, I would like to welcome everyone to the Consolidated Communications’ Third Quarter Earnings Conference Call. Please be advised that today’s conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator turn of over Communications. Investor now Senior Jennifer Vice President Relations the will to call Spaude, I and Corporate you conference. your may Jennifer, begin

Thank welcome like third morning. XXXX you Consolidated quarter to Communications to call. earnings and good everyone I’d

third are Financial build details the Chief and and the Chief Childers, Bob’s progress financial strategic plan. initiatives comments provide today quarter with Udell, Executive On Bob our an President fiber and Steve and Officer will update on for today guidance Steve our our call Officer. our performance will highlight on XXXX.

prepared will remarks, Following call their we up for questions. the open

this our Before I found at X of which the Please proceed, are results and are in release, earnings can review our with results earnings ir.consolidated.com. SEC. presentation provisions that presentation. harbor the include financial of future and consolidated statement, all is posted we Investor expected A on discussions website remind - subject the risks events of affect Slide statements filings and future will financial that be earnings certain may uncertainties. on and safe Today’s you section forward-looking contained about Relations to factors discussion

certain measures. Friday. on discussion will our file We XX-Q will non-GAAP also Today’s include financial

these Our Udell. equivalent. of release turn earnings includes nearest over a to Bob measures GAAP the the to reconciliation I call will now

good And Jennifer. morning, everyone. you, Thank

recent expansion creation passings quarter broadband the The upgrades We step year-over-year third value XX,XXX capable We our the fiber growth. upgraded XXX,XXX Gig completed to service plan. quarter tenth was important year-to-date. quarter revenue another achieved and multi-year fiber consecutive in of in

our X. path plan set are will which exceed fiber is beginning I build the are year. for take for fiber pick phase and XXX,XXX to just We of on to the on growth These of starting our Today, first upgrades network the an Slide track aggressive shape. plan provide transformation, this update to we upgrades forward on

plan our five-year over the is XX% of XXXX. Our million X.X by or passings of total to upgrade end

this we the Slide than plan in in markets of more upgrade see will and XXXX. on alone, build XXX,XXX progression have X passings England single You XX% New million where to upgraded can be one of our or no than Northern passings next More year plan competitor.

a have in where and close in advantage, tremendous XX% our cost existing facilities. We fiber our fiber especially to approximately ariel New backbone proximity of is England

also our expansion leveraging revenue Minnesota, in markets We’re prem apple. bites three diverse fiber the of giving revenue build with California, our to us supports channels, rural Texas, each customer including and of This three Pennsylvania. and of the footprint carrier, consumer, suburban additional Illinois, and

miles third X,XXX fiber and of We this one XX% new miles networks year-to-date. gig net number to fiber of in robust quarter percentage quarter position, and more our near than subscribers added have more the plant fiber fiber over in X,XXX the far net we third by conduit deployment We England, XXXX capacity for including in existing of In varied facilities. high have our New addition aerial increased incumbent a built subscribers than the year. advantages, and so

hyper-focused now We customer digital sales efforts. marketing our technology on are implementing and experience aid to ramp enhanced the and our

cohort are fiber Slide targets on Our penetration X. outlined

life XX% months cohort. in XX achieve are months the and after the expect XX XX% X% quarter, months in of We after expect penetration XX individual we an to cohort after passings approach upgraded to

over low XX% some in penetration range in we discussed the a confident parity we’ve can are As past duopoly horizon. the five-year markets, achieve we with in

offer launch. With an launch, to is our strategy experience, mid-November designed make Our we well-tested. customer a been go-to-market we transformed in easy. brand broadband have will And to entirely related which exciting has news coming new brand

offers industry strongest the offering capabilities, internet. extremely the are no and competitive gig price contracts symmetrical speeds, gig for caps, We point superior home, symmetrical no whole data WiFi an Mesh

We capacity and have services productivity. a And within fiber channel dedicated of performance we three premium NPS order. days to measured install by for have scores the customer support

significantly sales process. days are the enhancing engine in enhanced customer out rolling an XX next our We digital installation and

Our win subscribers neighborhood provide level strategy is to order a digital experience. at frictionless and the

our We’re also connecting meetings, local both community with virtually. customers events, at and through in-person

transformation fiber the powerful broadband services with experience. there’s regarding with coupled capable customer in customers digital history number making significantly Now experience us to enhance market, through These orders. combination serve the exactly the out our the delivers of of process. delivering it this making is tools want. highest messaging in business our will product live our function, customers new neighborhood a experience and what customer projects been also our third enabled all delivery asking northern more provider. This fastest fiber for easy end-to-end we and New customers their us come. roll and speeds the England are new entry in we service customers differentiated interaction, to intuitive will options have of to truly status our a service the new tools their investment representing Along customers. of from we give key brand way storefront, and proposition a giving self flow a in digital levels, for do a also online the new of customer throughout new value This will symmetrical latest but we processing automation specifically including our order transactions the All quarter, digital provisioning they technology as is superior of digital to In the experienced transform fiber order with web-based

the very choice. days experience, launch brand us excited differentiated the are customer which next provider broadband become our and to enable XX of We within represents, will it which the new to

net transport track growth and part We’ve our to strategy out network our grew of on which grew grow quarter. and our data revenue. edge XXX as completed important turning extensions of a carrier X.X% leverage network the be or carrier continues business we our long This recent in in XX% fiber as we actually to to We Now and buildings our network. fiber commercial investments we data continued on year-over-year channel. net of roughly commercial XXXX by record nearly year-over-year revenue,

In experience. our which markets are to on higher to new our to across ensure fact, sales margins, net, XX% of a customer opportunity correlates ability greater and the upsell best increased

SD-WAN sales around solutions. leading Now, see this strong ultimately as Communications activity business and services We contributes to ProConnect retention. customer satisfaction our and Unified good

leverages problems. become distinct We our commercial while as sales customers wholesale. three commercial solutions to our expansive and allowing based approach simple as fiber including solutions leverage trusted and channels, complex agent advisor go-to-market Our a to to strategy network us direct our sales well providing

with and well. grade major team product carriers. commercial wave more on interest carrier is as carrier is opportunities are towards Ethernet weighted The focused solutions Our mix in emerging across our XG like network seeing and carrier the all regions we

Our highly price growth sales increasingly experienced in competitive on managing landscape. new an backhaul to generation capitalize team contracts Ethernet continues and and proactively compression opportunities second while

be and pleased continue for We resulting optimistic recovery business the about meetings are to projects. from pandemic in-person receptiveness with customer the and

who more I’ll grow our Steve? to provide commit support sheet with us balance highest now strong return. business needed to Our this insight Steve the the quarter turn on third will channel and to call financial the the capital enables over results.

to morning everyone. Thanks, Bob. Good

on quarter build X.X% are our are our Adjusted and financial and To to broadband and continued transformation quarter. ongoing strong partially products strategic Operating trending million quarter, for I’ll was in quarter represents decline as data reviewing third network expected consumer of $XXX.X and EBITDA quarter another on in begin, down we’re and update first start our ago. offset by for of in step our driven by provide totaled XX% for which our the a legacy video in highlights and transport a the margin forward third was was voice, strategy. XXXX fiber compared access, third Slide for and The EBITDA a adjusted growth services. quarter year for million our the revenue we’ll results revenues our presentation. The by overall an guidance. $XXX.X revenue X erosion

or broadband fiber growth quarter X% Broadband our consumer our sequentially channel, moment. consumer approximately video $XX.XX, stemmed which X.X% million, year. being $XX.X ARPU up last speed to fiber of in was and we’ll up $XXX.X consumer of broadband up XX% related upgrades This Consumer services. combined a our represents million, X.X% year-over-year. in discuss revenue. fiber was $X new year-over-year penetration to year quarter and last the revenue and linear consecutive X% new rates. We approximately and metrics over Turning growth passings in over on revenue XXth the services, from total from coming the ago ARPU period gains data result compared down decline provided This with

to measure to to information or the provide fiber gig X XX% we services. capable million to X.X progress is intent upgraded Our homes the network as

which doubled XX% now XX% year. nearly our coverage have We the gig to in at is of the beginning XXXX, capable compared

Our XXXX. X, as the data of XXXX five on January is begin the penetration point consumer we starting end build fiber year at plan our

machine gig end increased start broadband share passings. approximately penetration fiber almost inventory, of and XX,XXX market fiber pace launched. fiber product with the and And our this of scales XX% fiber sales gig fully the At of base with far we’ve as our on total an have build net is year, total measured passings. penetration including The increase new offerings upgraded we XX% influence So subscriber our third recently gig and we brand our ads. our is quarter, the will as taking are XX% doubled by inventory plus our

for cost Our details Slide passing on X. outlined are

to And drop guidance Northern provide approximately for The the market the of the or based by which down The cost connect, drop is the $XXX range cost to average – England $XXX, and voice million. drop X.X% fiber. was $XXX includes around labor varies of variable update of is cost year-to-date CPE access on and in CapEx passing Consumer is Our just X.X fiber our revenue region. this to capacity and which which edge $XXX. an amount I’ll labor cost moment. high to link, aerial components. a biggest on includes average New The equipment,

and improve attrition of in to decline job basis some rate this and continue a revenue. the we consumer continue of We XX% the account area. XX.X% while are experience revenue to rate and down the managing does decline on is we or for Video a standalone million doing voice consumer $X.X good erosion,

to deployments to for and flow. services strategy margins video the has video Our transition free created to actually is linear TV top and optimal enabled video over us an cap cash

million turning million commercial up or to the quarter, X.X%. in totaled approximately $XX.X $XXX.X and was third transport Data and our Now million, revenue revenue down year-over-year. carrier, $X.X X.X%

data bandwidth internet peer migration companies commercial and one transport. the dedicated million and VoIP continue of service year Texas which our by of access down declines which Commercial few SDWAN revenue. show fund due transport. to call Catalyst VoIP funds. ago, Network increased our to year-over-year. ProConnect. group were in mandated totaled a a or high revenue revenue and solutions, growth X% the we access for $X the down $XX.X rerecord and declines customers reduction million and Special solution, Subsidy We X.X% declined universal to access this data over in $XX.X in from to state growth voice just offset from to are revenues million are million, cost $X.X due was funding

levels. appeal the which million, of prior and recent lower network change Operating in from year ruling $XXX.X Telephone a on of efficiencies, ago. drivers were cost an the of video recognition some by X.X% effort the the part Primary for filed pretax Association of sale cost an assets down Texas approximately tax first in million programming million. were now of held for expenses of to funding our the are restore third We allocated We to non-core the In of we loss property which Ohio of million rebates. goodwill. In on includes approximately closing a sale, we non-cash quarter, quarter expect to $X.X the September, XXXX. transaction recorded announced this assets $XX $XX was

to allowed September loss long-term our million portfolio review the non-cash assets reflects investment of for or assets strategic value additional for to we The At ensure contingent the year us the $X.X interest was Searchlight a continue right to third initial million, global the Net sheet which of fair recognize a refinancing investment increase XXth, the leverage. with liquidity an to balance fit. will reduced in the completed last we recapitalized $XX.X monetization all related of we from increase of increase payment $XX.X quarter and expense Searchlight. have maturities, ago. enabled in million our increase Additionally, to October,

with combined the the For interest deferred quarter Searchlight million. amortization the financing totaled the in and discount non-cash related note, costs $XX.X

cash million, also resulting April eliminate a of were amortization as a annual offering are X% result were $XX term that annualized savings. bank our costs million on approximately cash another We pricing to and bond lower of $XX benefiting from in able loan in and

you no have the X, Additionally, capital debt can see structure as we from until on Slide XXXX. summary maturities

is had liquidity believe leverage of debt in fully over up September At to from plan build to we the net X.XX – Our a QX. we growth. XXth, end plan quarter, and funded the we third million slightly have $XXX at return

equity, accrued total common will quarter final We of third $XX.X of million the $XXX million Searchlight year-to-date in will Cash end from and $XX.X investment quarter secure and preferred year-to-date. million Perform $XX expenditures XX% in partnerships the Searchlight year ago. of this interest. our and perpetual by second are million the the investment company’s we had approximately outstanding distributions approval on the common of to year; to second will Capital wireless At plus partnership. state, in million totaled our in stock $XX $XXX.X Searchlight they closing stage a million track in this close, $XXX.X million on shares. the $XXX hold have the million SEC totaled trigger third compared the

of industry economy. total QX facing was and fiber approximately FttP spend our broader CPE, CapEx – CapEx a CapEx digital XX% our our and projects Over is the our higher we challenges year-to-date Our plan proactively $XX supporting chain approx broadband as million technology. spend transformation given our than materials secured the build supply and was

year. up me in our our sum of employees target the progress let this results fiber we XXX,XXX ahead. our build and So third pace and excellent Operationally to quarter our passings were opportunity fiber upgrades on making exceed

growth business which broadband We continue provide and to to cash revenue continues services, achieve strategic in and transport key data results stable flow.

for Capital to million, to year expected the are $XXX out leading of and update mix fiber our increase range is be outlined $XXX revenue we’re year as to of XXXX transformation comments to guidance, million which We full range in XX. million XXXX. a becoming close an subscriber with Slide on previous $XXX are be, to an and the begin I’ll the changing now our and return revenue in the growth full $XXX expenditures to my provider on million.

to cure and plan. mentioned, I to her As fiber build we took materials proactive steps CPE support

to are turn now affirming all other with We measures no With changes. guidance that I’ll fund the Bob. call back

were no experienced way, Steve. you, this. in Well, team a If stage is, it be and Thank this race have first pit will and an along it. but turns There make their latest Their twist, mistake our work. let to hard stops delivering the express of our me satisfaction employee we’re say their growth executing the of positive and I results in bold and on want product are to for this gratitude and survey my consolidated dedication resiliency. plan. a is team our evident we excitement

experience. a is product differentiated with superior focus right customer a fiber now Our launching

We have an team to numerous sport, markets advantages becoming in opportunity broadband leader the business we large competitive to serve. in we’re and a win. the it’s endurance proven a This it and

strategy clear as is XX. on Our outlined Slide

We’re and accelerating think extending build, to locations, exceed I we’ll XX% fiber of our over our that. fiber addressable

us giving win. new three customers we’re with our grow customer brand. to We’re the ways broadband new And broadband experience redefining under chances three leveraging across groups, a to fiber serve revenue that to friendly

is for Our building investors. sustainability long-term path all and about forward value

industry. plan that fantastic This in be take employees, an our a questions. is the and from we’ll fully time Searchlight. have we to is With and And in Julie, now strategic experienced five-year customers, funded. Our our partner support our

Your [Operator of The is with first from Goldman Kim comes line the Instructions] Sachs. Jason question line open.

of to growth, you versus growth year-over-year in ads anything in continue bit Thank customer existing broadband what was the morning. mix note net relationship? growth little regarding from versus DSL What’s there? terms and good rate second the to new in you, the it’s saw sequential revenue quarter a your customer nice third of but coming the see customers slower And consumer sequentially quarter,

I’ll the The with early the that, process. Yes. first part were out and will iterating as and we installation Steve take mix started second. our go-to-market on of upgrades take strategy more

been a that’s for process good So us.

that all experience to upgrades using – with our tools that together new the get First with development were the brand. are of coming launch of the

quarter. the So I you new, now as we’re say in third XX% upgrades we ARPU XX/XX and and exit revenue? initially would it was to XX/XX, want talk about XX% Steve, range

Yes.

your revenue was So growth think I the Jason, on question. which

last X.X% it probably a the year of about X.X% and You’re that’s QX our for how think QX now, me, where reflection just right, kind we or to were excuse brand three, aggressive buildup we’re launch. I of

ads muted for things new We’re not; like that. kind we’re marketing dollars on of and

I a we’re at it on some being we’re of marketing probably well. QX pricing the the on kind think maybe as and increases So is is in timing play where how aggressive

we’re companies helpful. expansion then expanding That’s a more their fiber And lot seeing plans.

pay footprint, their as something just attractive. and towns, not Is consider, you would So for existing well within as if consolidated are filling framed how the opportunity economics it? is to the out for and how that if but nearby so,

Yes. look teens, other any return like build we We that The do subscribers we low-to-mid already. at at closer remember to plan. and that core and look is our the if network way it’s is

for through without RDOF we that went were towns As found build RDOF could we the that example, analysis, attractive. we

that to percentage last our some I’d small that’s it. but months of the the that, in And say plan, we’re of a we doing XXX XX so added over

this opportunistic. stage being we’re at So

on the perspective, communities and edging offset with We’re from looking a partnerships or area-by-area when at on extending isn’t attractive a models funding out. build public/private our basis, private working return to

as or available embrace become our in maintaining to some opportunities So capacity obvious those to they plan we’re us.

very you Thank Great. much.

question of from next the Company. Cowen Your Greg comes Williams with line and

is line Your open.

on questions. CapEx maybe buying you CPE you for components guide help and forward fiber it? warehousing understand building to or you’re Great. questions. One me anticipating mean you just two in you’re that warehouses you just could you’re the essentially have increased Can supply you taking are my the are mean that anticipating And seeing that pulling you equipment. mentioned chain is Thank say seeing supply you’re CPE CapEx and And concerns I are does situation, XXXX or essentially constraints XXXX. that equipment?

is get XX% mark to trajectory. And margin the with exciting business. the couple The even you in like back help second stuff sounds margins just It’s a question expect and automation in should which to it nice some on investments the simplification. we weeks,

about too grind margin I the think to So in imagine of that’s you. then it? drop where I but first cash you’re the going margin sort XXXX? and the the think know back, way percent you hit to is right about I how through of quarter. say giving guidance, should not we’re your way the off Thank bottom that

I’ll good that reading I And the Yes, first supply morning. to And the the you’re will again Greg. second, Steve right. part chain, With regards think. that, take take of

have putting the We up ground. poles and accelerated fiber on acquisition mark and in to we’re places fast it our

competitor So, we to attention might long-term be that any get else. think the markets cable first upgrade we want to or anyone from

on that WiFiX plant inflection experience, in side well WiFiX. ourselves the we in doing found and physical point customer the between and with change and we’re upgrade our So,

our somewhat on and suppliers hedge gear And so, additional production delivery cautious WiFiX closely working commitment WiFiX about concerned and and slipped. and gear chip been to buying with as we’ve slipped shortages

the that million But that, you’re grow range. yes, accelerate XXXX. have seeing you would million of in $XX us I been So, would $XX And inventory to seeing I say, on the think in don’t chip [indiscernible] I part resolved probably are chain future. see in doing issue XXXX, of the worldwide second be we’ll take set because that? being side what the near-term you Steve, for the supply to some

build and I run Yes, question I question. this said CAF think at just way we for drop year, across to on being and us your the XXXX on decline of fiber the public, customer right. guidance point, I taking this rest the drop XXXX, right? margins point so I the we future revenue a we midpoint RDOF. step Yes, about call and earnings exactly what managed transition the we’ve think, money, to with in about your reflects the $XX sure. not January you starting basis. about CAF And to very had agree, be rest every make maybe But the million. Greg, terminal your you funding, know and This the the to we’re thanks the for subsidy rate down in off be I on RDOF the to into the clear, plan up of for off low you’re being step it’s the we mean, framed X plan think year, do channels. point building million $XX will up business going the we do in execute CAF That well of million but on that’s the how X as RDOF, this value we and starting needed growth the $X if to to assuming on down stepped We’re [indiscernible] the

about on out. talked since the a Bob announced Searchlight think partnership the in XXX,XXX we build increase homes I

we we expect up. see five-year in expansion to on revenue to XXXX, where But sometime XXXX make will plan. that XXs the year XXXX. and build And sequential in low margin in high then growth start will So XXs, trying we think, the your growth margins. to step get the I take showing point, And we’re to down that’s a will full

color. Great you. Thank

Michael Your question Citi. Rollins line of the next with from comes

open. Your line is

good And morning. Thanks.

entry transaction investors be final XXXX the to on of with for or it that the terms Searchlight X, months? million, some is tranche. appreciate Just XX just tailwinds $XXX.X close outlook everything a number Thanks. is refers in of like closed the balance or past the degree on the over should that number mindful to that to the EBITDA? on this been at And the addition there Slide follow-up, want in then, some is to Just comments CAF once other that are headwinds what has of [indiscernible] picking

one So Mike, take Bob on I’ll tailwind. can cap and first the to take the the Yes. second question and

So $X with cost they discounted of it million. ultimate about is contributed the the The to X.XX% the – from capital guess way balance on of is originally the kind based to X.XX%. note, respect I think – are

So the X.XX% have is picked picking plus will math set coupon the to top to a doing a sense? amount been back make get year interest have, of the we in X.XX% X% on of since that it. that Does

Yes.

it So it’s year. another over roughly way has past been the picking

the plus is X.XX% tick that that over it’s So period. whatever amount

Correct.

helpful. That’s Thank you.

the And working been on margins, we’ve really part think through process. some to close to Raimondo a the We’ve are related the is engine got great for great second and infrastructure that public, partnerships I private Okay. tailwinds. possible, Secretary is tailwinds, maximizing the NTIA funding who the

states we $XX through offices to offer at to all we’re stage. billion that, and England close that Texas, Minnesota to Northern likely assuming and law, states, allocating best we’re We’re of the very broadband to Washington their happen state in that on we’re the the it some service assuming plan, And positioned ensure voted Illinois, major infrastructure opportunity. that’s that New into getting gets maximize in from

others. more And see will and of those for think because XXXX, city pitching I of value in economy uplift will than us broadband the you’ll accelerator more the town, county, penetrations or the local increase announce partnerships effort So are significant you some that of are you the built like some the that quality marketing life. in engines have provide when that the those

in of net I just with If and I commentary just the question, follow growth buildings. the other could one on your noticing slides, was

to past what XX,XXX growth think I’m are And curious, to us in from market you buildings like, I market can it commercial revenue? quarter. conceptualize expanded how about territory? of relate help addressable this just addressable for your buildings an could for this total XX,XXX And was about the

that Yes. share done I we’re that’s the my give you our size that’s historically. that metals than range you more notes, but of can’t all mind, what customer. tell in our fair I’m Top in number. a And call markets, looking and XX% across in assessment competitive by by we we’ve usually share would of divided I getting specific

So and a very that Steve got into committee good goes our a through we capital go CFO a channel it management when Chairs, only strategy, building we we’ve seek, Chairs. process

disciplined. more and that’s addressable There’s tapped. transport it’s commercial so data markets carrier. growth than we’ve we on that why And perpetual show quite across and And

So you we the I but top of can future, mind, that I maybe can. size for think in don’t

Thanks.

Your next Fargo. comes Wells of Eric Luebchow [Operator Instructions] the with from line question

Your line open. is

question. Hey, taking the thanks for

budget. keep or chain just changes terms the to on and labor the to go labor market Have time your and you good to in labor availability now. how back wanted maybe on right remained of Just either costs to of items could some supply line talk through you’re build commentary. those managing It’s you any in costs to have see build seen in

What sales splicers That’s seeing and direct to door Yes. and door Eric. front. engineers on some tension is, great the question, we’re fiber some a around

engineers on demand and think. related And been splicers. But fiber the some of it’s been front, COVID for other just has the sales I

And of a up. in we’ve we’re that which we’re adding training contract New so England, we our our set roughly XX with to – splicers. partnership Northern which have most technicians And XXX was really school fiber own recent union, with will that, the be many

predictable able – contractors. we’re employee so being base. a very a arrangement it an with our good to cost unit have And pricing we And yet have of because

hasn’t our on significantly that, side. taken agreements, close at a it capital cost we is the making additional incentive But it them we’re stage. have sure couple to, moving where not this we points stage. at But range And those on this But unit for watch out some with our out of list. supplement carefully watching of It’s so the needles of per increase of projects. us it’s

and go it’s side, the sales splicers on on direct to it’s the engineers So on build resources. I’d tension side and say, market some

Thanks for that. it. Got

for small Just in did asset Ohio. the sale you one me, more

today. space would willing the consider looking Maybe geographies, capital monetize sets the given if So seen warranted. product non-core could would you we’ve amount just and you about private that to talk to the be into other other of get circumstances

Yes.

more past, I the a the because like the it hesitant that, willing think specifics evaluate, to on reasonable we in to fits return. I’m build, give more if we’re

than but on not service in some it’s proximity So a cadence those already probably if on potential necessarily people And it’s so we’re larger remote certain we’re so at on to when and much market focus plan one in. it we’re go going we close conversation we’ve can have for the it. with those necessary, we’re on the of geographies many continue, states a spinoff, that time. faster or the building process still get service with new things other so somebody announced, there’s strategy and to only if in fast going discussions Then experience that with to executing to the build

them probably, there’s a queued so and probably to in some good XXXX. up we’re systematic in interest announce through And work more going to and way have

the for Thanks questions. Great.

to are this would Udell. like call turn back over I [Operator time. no Instructions] to the questions Bob There at Mr. further

a at We in look for Julie. our our all our and today. day. thank joining next you company Have forward great for call to updating you call. on And QX Thanks, your interest

This conference concludes today’s call.

now disconnect. may You