AerCap (AER) 31 Jul 232023 Q2 Earnings call transcript

Good day, everyone, and welcome to the AerCap Holdings N.V.

Second Quarter 2023 Financial Results. Today's conference is being recorded and a transcript will be available following the call on the company's website.

At this time, I would like to turn the conference over to Joseph McGinley, Head of Investor Relations. Please go ahead sir.

hello, and operator, you, everyone. Thank second Welcome conference XXXX to our call. quarter Executive today Pete Kelly; is me Officer, Juhas. our Officer, With Financial Chief Aengus Chief and our

Before which are to historical facts would statements we forward-looking during not call, statements. be that made call, you some like conference this may begin today's remind I

and statements. may materially involve cause expressed those Forward-looking from or implied results risks or statements such actual uncertainties that in differ events to

revise call. law undertakes forward-looking no circumstances than other reflect be publicly AerCap's release events, statements could any AerCap concerning found or future that imposed to earnings can that dated to that update by affect arise Further obligation information XXth, issues June performance in materially or after information this XXXX.

and our available presentation archived is will release conference for being This and call and A call website to aercap.com. simultaneously copy on the public webcast be replay. open is the are at aercap.com of at earnings

run our allow will We and Q&A. the end we'll at time through for shortly earnings presentation

As one question a follow-up. limit themselves one ask to would reminder, and analysts that I

Kelly. I Aengus call turn the over to will now

Thank call. you, report per pleased you Joe, net adjusted quarter for joining $XXX AerCap of and income share another for strong generating I'm of earnings to $X.XX. XXXX quarter of and our second earnings us million thank earnings for adjusted

execution. focus reflects This collections cash widespread demand for on strong our constant our and assets,

a new sale of in result, update on for of first $X the range to our year pleased higher As the year. to I'm to guidance includes approximately a $X. earnings $X.XX of gains This half the

billion, today. the market cap AerCap takes authorizations to for the the announce to we year outlook cash consistent repurchase so Given pleased confidence over far another also program. the business both this in the year. share strength This and XX% the I'm of see $XXX total million of and in business commitment value This indicates generation, $X.X our the of beginning our at

aviation our continues which activity assets is for mentioned, I to reflected robust, in of levels QX. significant demand As be in

our helicopters. XXX executed in sales. transactions keep where signed purchases the of lease months, to the the and and platform a XXX for comprised technology aircraft, of three demand in note aircraft strong current engines as was across we Over period Of extensions last continued airlines have lease whatever air. large agreements, XX capacity they number XX the This look

has profitability Likewise, the I these aircraft of the airlines. across were as technology in to sales aircraft with resulting all sold shortage enforces period around believe the it capacity sector, airline current also going helped healthy the system discipline of units in XX% yields. in the

in the customers are, general, good about moment the and future. in health at Our optimistic

high On and constraints durability remains the supply for the new face side, engine part demand in utilization, challenges aircraft technology engine higher MROs. the at of spare

spare parts through our as sales continues our well fuel-efficient engines helping by joint into challenges business and market, team financing invest franchise most engine engine technology are venture customers level the and AerCap engines with engines our older healthy Safran. We The providing spare with the recycling of as these support in a to combined through SCS, activity.

industry the to Switching overall.

I environment demand to in to the comparison how the think will in market supply the on it helpful elaborate is strong today. available be

useful it's believe I this, some For to context. provide historical

around grew even supply as of aircraft the delivery severely X%. as scheduled flights XXX the was year, impacted and demand the fell MAX the were world delivering XXXX good and close when by sharply both The to spread the fairly about by to dates. So Widespread began following grounding disruption supply world. the was COVID-XX to OEMs in regions when refer I'm all demand going XXXX in back of

OEM levels. recovered recovered we recovery saw timeframe, levels. consistent but to of us the to in June where taking XXXX's XXXX XX% XXXX, in around only to also of we deliveries approximately this demand, Then XX%

As see the to they've will persistence today's supply we situation period, today this continually of chart, for the is widespread the last in about leading lagged aircraft when the years and demand from particularly the important why think into future. you demand we believe can shortages. imbalance several This

be several rollout in will narrow-bodies. fleet. durability engine new OEMs the as bottlenecks newer fixes The any technology facing will across have the be resolved a yet engine And years then, MROs fixes it number issues years and for not to the of take for the to even agreed

would positive European believe don't COVID mild this underway. also from in due is the US restrictions dynamic emerging scenario recession derail as a of getting Asia passenger or momentum which to a I yields soften out

and Remember that years decades, when months. not fleet in so they weeks and planning, do airlines consider

don't short-term to are They disruptions secure plans. meet such, these impact They issues demand. As their that supply persist. too really look know to growth to aircraft continue going to

the The even chart aircraft. of new the technology engine supply as a acute around This today of technology. it if global on rates the the lower storage become just has with normalization for new and reactivation of Storage rates issues be side would reliability result right-hand shows wasn't the how of aircraft. occurred change the

leasing airlines' So the at lift. taking avenue of that to account, best into what is zero and I source would pace, near-term this discretionary close continuing closed the term, we storage. channel for today, are With demand

we transactions see highest-ever of our sale assets side, which Encouragingly, confined our broad-based gain quarterly this and quarter. margin. XX% was continue represented resulted strong the for sales aircraft in the in $XXX million, demand assets. million on On not $XXX This a closing to to of

engine with This confirms asset diversification of the the benefits our category. strong sales further AerCap saw now enjoys. each helicopter and also record in We in volumes gains

activity is of the generates core allied businesses performance of but trading of significant to The aircraft our the equation. operating one-half this amounts capital, only

implied we continued between value in that the by The In of take have aircraft capital we also fleet professional public purchasers must our your private markets. allocate advantage is the other that and the half thing, to effectively. dislocation market equity

$XXX we $XXX was in XQ assets the on generated million equity aircraft value. sold million. by book in from sale above gains We selling The book the

repurchasing equity $XXX This below value shares to by we equity further from portfolio. buying and our we value book an value, million overall shares the all while selling addition, meant value. of of $XX doubled discount approximately In book above aircraft more XX% quality AerCap's book than improving generated in million a the at our

cash another focused the in this great and for demand throughout earnings broad-based business. for flow assets was So generating summary, AerCap with quarter execution, and strong our

day themselves for complete position to continue numerous transactions our We as every demand. growth in customers continued

years the future look we remains come. and confidence to to quarters demonstrating to the and Our forward this strong you in in

hand With favorable over financial Pete call outlook to a for review of I the 'XX. will our that, for detailed performance and

second Gus. a quarter. Thanks, Good performance for strong had everyone. the morning, We

net which and that amortization included was quarter. $XX basic or rents, reduced of our income Our purchase million, lease $X.XX rights of expenses. $XXX amortization lease share. $XXX impact leasing per $XX our rights of This The accounting adjustments maintenance $XX premium adjusted reduced million for the increased maintenance million revenue maintenance was million our million of amortization that

that during quarter the the GAAP proceeds account, Taking the sold was primarily recovered the share. of were related Russia we net income Ukraine second time to second $XXX per at the or of engines of million from the of recoveries recognized quarter, our of In all quarter. $X.XX we that invasion for $XX that consisting that Ukraine outside conflict, million we into

rents collections briefly This $X,XXX we the Basic for from power talk hour also affected and reflected our last I'll were $XX on that cash the about main quarter. results that the an increase strong lease our arrangements quarter. of drivers second lessees to in rents from are their from leases. PBH continued benefit million, million by

reduces lease amortization, rents. As lease lease basic basic our million I of our reflected mentioned, $XX rents premium which

before, assets of are basic as remaining the mentioned rents. a premium I've reduction As lease over lease amortized lease to the term

That were reflects $XX were for assets higher quarter. revenues this maintenance revenue million been In $XXX maintenance to $XX have words, rights amortization. the amortized revenue or second million that would Maintenance the million of without quarter during million. maintenance other $XXX

our We sold a a assets revenue XX of of XX%. million for total Net for gain margin of $XXX on million record of was in on resulted that the assets sale sale owned and gain quarter. $XXX sales

for also $XXX As of June had assets XXth, sale. million held of worth we

on target we're the billion full year. $X.X for track for of our So sales

earlier, a smaller net to to recoveries Ukraine of As number recoveries I related were mentioned conflict related represents primarily $XX which engines. million,

impairment for mark-to-market which was benefit $X million, the derivatives. was Asset million only second Interest $XXX million quarter. included gains on $X expense from a

rights quarter, $XX were including for maintenance in expenses. million Our leasing amortization the $XXX expenses million

increased capacity Equity earnings of strong our with in Safran. for Support, million method the its from quarter, Engine was $XX the Shannon engine venture SES under reflecting investments again leasing joint earnings engine equity net the fleet quarter June engines by just engines fleet as had managed for and owned XXX during to spare and an second of XXth. order CFM in under build of XX

strong position. maintain liquidity to We continue a

total of of uses were As of $X sources That's XX times X.X coverage our in coverage months X.X June to ratio our represents around of next and approximately cash $XX of above billion, XXth, target which sources liquidity times. excess coverage resulted billion.

quarter. strong cash and collections approximately the flow operating billion was total driven quarter by during was Our cash that continued $X.X the for

leverage share actually quarter. CapEx even of quarter, X.XX buybacks this of almost the ratio $X.X X.XX $XXX during times Our after from million decreased billion to and times

generates capital So large amount that each that of really shows the naturally quarter. AerCap

which is was ratio the the at as last approximately assets June, total to debt same secured of XX% end Our quarter.

X.X%, average cost last was debt of a quarter. slight Our from X.X% increase

$X quarter, And bond most completed of we billion. recent our offering during the

over of $XX.XX June which Our book increase value of XX% $XX.XX value book XX, per of share of XXth, share represents per June XXXX. as as was an our

$XX.XX total million. approximately quarter, second at price a of an the average During of million $XXX X.X we repurchased shares for

a And in XXX,XXX shares of we third additional million. for bought around so quarter, $XX the far total

So million remaining this program. $XXX in we currently have

new of will today, end Gus the share $XXX this repurchase mentioned, a year. run authorization we've As announced through million that

are our for the half of the of year we raising outlook of guidance for the result full a for share As remainder the earnings year, strong the and the per performance year. our first

$X.XX that upper-end to year, gains on our sale. $X excluding and be earnings to are at range last On our any said the call, before we $X.XX now gains we full the to of expected sale on of range increasing any the I $X to for

us. rents. that driven cash a year, strong been to as power of contributing of strong by leasing by the mainly as revenue also engine for higher the original the lease The hour both additional seen higher from later this a end outperformance which has by Most hour SES, including power assets guidance. in also relative collections the now, is utilization business will arrangements those from our revenue they're of but outperformance for performance are We've well driver

on of gains an on $XXX During year, tax had or sale million this we've the first basis. share a of $X.XX half after

you add new does range a dollar you when total and year. So And get the for any share about that to second of estimate for that's to gains $X, $X include $X of a EPS full of that the on $X.XX sale the to $X.XX this not half year.

strong So another overall, AerCap. this quarter was for

positive, higher Our financial revenues. driven very performance was by mainly

strong sales continue our ever. for very and on We market gain sale see produced to a highest

have significant amount of billion target further is leverage our our liquidity which gives and We and excess ratio times, capital. is a below of which $XX X.XX us

the backdrop billion. we've strong million positive guidance total And program, our that $X.XX and today, repurchase share expect authorizations for be for to $XXX environment new this announced our year time, continue full we a some have for Against we to raised the bringing to supply-demand earnings year.

open up And now with for that, we operator call Q&A. the can

Thank you. Becker Please [Operator from have hear do TD queue, ahead. first Helane we'll go from caller Cowen. the your in We Instructions]

Thanks a very I Hi, that have about were assets the team. much, in just lost Russia. question operator.

to we respect -- with whether Just recoveries? say can and where the you insurance stand lawsuit

Helane. Sure,

claims further of on sensitive part as And to the regarding So, we've insurers on of prior those and any we our with uncertainty recovery, regarding insurance reinsurers. any Russian of Russia. to look, a were going pursue that. those discussions as own to the insurers that of insurers we're regarding we're as continue not efforts, Airlines settlement well against have But continuing discussions and our said aircraft nature potential calls, the comment Russian the potential some given lost in as

cause is said I why hear is, of fair. that's and dramatically another outlook, investors do Thank lot saying smart decline anything the saying I'm going that believe about a so demand issues demand you're you're question demand you for get fall you my and to is I that but much. this values you're Aengus. say Okay, same And picture infrastructure morning, about the on, push-back the and disagree that my aircraft. the things saying? I just in not with and But demand somehow maybe that asset very then I what do not what don't and on the

how those to So would questions? respond you

demand Well, I see, think. I abating. no as firstly, said, of Helane, sign we

of of irrelevant demand first that that's what of that years, And always of out see the can we carriers if of Asia traveling commentary two last see the a about a we some post-COVID, levels. is do We in the to the in decided a recession can do US absolutely the people two see They has do we growth Europe, is in for yields, of that US quarter yields too. or timeframe. impact XX the the by is decision-making case. What in travel. an week over people to one doubles, And happens come what demand or two period. exceptionally quarter number now decade-long aircraft. not coming out high or been Aircraft decline the or airline have that's spend mild And every is on even thing the one

been because supply the of the to issues I we the the saying visibility So would and into we ago see have continue of we've market And we is see of couple telling it. what's that don't and blatantly that market business. else last dynamics long anyone were years, the obvious trend. a the that results before we saw have years And

any It's one a we're what look not for. that in airline at global aircraft one values says Just This the market. by affected selling market. is

and selling always cetera, many just So has over see et the look been that XX so odd for, values don't lease company issues moment. over if rates, record Helane, AerCap years different the very we're we've you timeframe of at And gone made at airplanes has it's the the we that and money. through and important, the track

much. very you. you Thank Thank helpful. very That's

from from hear Goldman next We'll Catherine Sachs. O'Brien

of congrats Good spare from points of on engines of quarter. with this GTF but little very a dynamics great comment driving pool morning, Safran. the those which so then be is will that think sales, quarter, much. once your then in quarter much question, have more? Thanks just help portion a which significant you continuing mostly the aircraft ongoing the engines of are Can now combination us business a line little numbers, obviously aircraft issues the everyone. of about think Thanks about demand on question for from to sorry and might so demand, just now engines? just this the bit like and tied the be aircraft rough And significant very breakout strong time this And like least very long-winded data this any outside could a to quick bit GE I in recent production obviously like engine were feels also the tight. know for it quarter between part sales and sales is to the engines only at We clean because A than compare on a the again. and even demand how your post-merger headlines? demand margin include six feels tighter proceeds which and

All right. Thanks, Catie.

the So I'll first take part.

strong we're we're all it we're there everything demand in. the of fair and -- mean, I In the in XX% the for mentioned, got quarter, older as board older engines on them it side, the selling, strong margins number given margin currently engines was aircraft I'd across And seeing and that and we environment was sales XX% a this much total. say, pretty terms we've I between in around for of are seeing

drove to really I'll it side. turn that's Gus the the what for on sales Maybe GTF. So

quantum markets relates out their GTF, Yes, start and the fix into fix it hazard year won't next system, and of lot issue. engines solve to this But Pratt end this years in issue that as take supply was out for, another will it year. how to really coming stretching will the be that system the will believe the possibly engines We I rolled a is with lift if come. and that this spare at I to issue be guess that fully of XXXX, will suspect, aircraft a getting the of that this to the before long impact of that of will into

again as this biggest again So have to of all time know my selling some comments, and aircraft for aircraft to years for older some will And increased airlines to happened that in were these been well. and in aircraft. XX airlines as prepared I points XX, that XX% We've have a been to sales used older been old QX where guys quite of them our market saying demand that highlighting we time. we've that buyer airplanes. the where are for our said Airlines we're this you

time business, and SES Pete. Thanks is cash performance A good observed in the outlook strong by in the trends hour Or much XXXX results better-than-expected EPS expected engine and sense. carried there upside the a for the so assume Does Makes new for first those one driven collection, I you've maybe that And the your second quick be just last guess. if half? time. the half continue? potentially to that by through leasing in power the

Yes, I currently environment basically mean, it the that assumes we're seeing.

those of a from a expect in So trends they fronts on continue basically all but lot to build those there, It really of are. I like trends. increase all of as those would doesn't continuation

much time. the Great. for Thanks so

Sure.

Jamie JPMorgan. Baker next from hear We'll from

clauses on all reconcile? this to wanted have explore. water Hey, of on that Thanks to that was and confirm entirety releases Pratt that But and the meaning of just one onus of off color. Gus. you falls win the can for That airlines GTF good time or follow-up hell to I the that, the Mark afternoon, issues high the and

Jamie, does. it Correct,

Perfect.

flight generally engine airline And support want or and it, OEM assessed. the hour generally, that's the and between will be a penalties downstream. There'll be where to or whatever the call agreement that's you

international global second saying that's that about Southwest to really so try to wide-bodies. new It's you this Corporate leaning their very Perfect. to to into announced the at is moment. network And Last understand going week, exploding. more re-optimize stalled response demand. I leisure were everything United in is heavily they're largely appears normal. be

planners across are this you of fleets of new for by what a to As network mean result mean? implications AerCap this global the customer and talk I what your all does base, normal? extension as

Well, I the all Southwest very do Alaska what world. we're happening is because what's States. the in picture hear global US-centric they're think in United it's -- important, at a you course, last focus, commentary week. of of operators But looking predominantly domestic and commentary regions a And the that's the

of So first background, China. supply and Asia to came, then Southeast big the is at constraints. COVID seeing US seeing Exela, out what really continued certainly, And pace, the Jamie, was move against Europe now in the this all region we're we're

then, lot have both two carriers, leisure its week, So rightly Air business who by a them of massive as class international IAG some to of the of market driven it international but look out, on spend money is and bullish if last travelers the and fares. at corporate, point you say, France you were on very

the bode does helicopters for future. engines, supplier AerCap and So to matter, aircraft for largest world, that marginal well has the it of as the

Sure.

it, everybody. Appreciate thank very you Okay, much.

Citi. from Trent Stephen

open. line Your is

thanks for and taking everybody, much afternoon, my questions. very Good

Just two me. quick from ones

cetera. M&A effective ILFC, several may many raise you too guys, big authorities? over aircrafts Do too other or M&A I from next years antitrust the been you're think years going over the perhaps eyebrows you opportunities the and it's to have very side onboarding et from First, have GECAS, you think, on

comment that. others how Look, aren't. to we when We be that I where and think we buy very want are impossible to at mean, others not you tend we where in to showed I you when it's buy on assets, show looked active always slide -- market the if

are the at up where to line lined us a with see tent tickets my peers there's Farnborough outside of to not in tend many when You in. get us

at we go out, aircraft as shares most AerCap the what are aggressive. think we traders selling we assets see as equity as a in gains values the value, shares. long buying that's back we today, continues, to that as from the and significant when our own professional be And firmly we discount, trade wherever I the will in significant hitting the we public pointed And the forward, aircraft world market no, then keep at and are our So, aircraft will cheapest clearly, believe business us.

Very, And very follow-up and Catherine's helpful. super quick one to clear just question. very

say used your number I you commercial airlines aircraft. sense as approximately give been think what you. to pre-pandemic? you I around heard acquiring a me of that have Could was XX% Thank that

showed have historically, mean, got as been that you to of high last after up fact, we in would less results, and that it the than history Yes, can in XX%. And XX% QX send it's as the on quarter call. I and we the actually

So it's strength the a airlines persistent older. buying of

That's very helpful.

problem. Yes, no

Awesome. Thank you.

from Deutsche to We'll next Cacanando Hillary Bank. move

Hi. Thank my you questions. taking for

So a just leverage to your thinking you your versus just even reducing you're leverage wanted you've like see ratio, about more. up great job even low buyback could it position your leverage given I looks the lever how ratio. done

still of in the target leverage? any X.X guess, thinking that So around I in kind longer-term is what or is change terms your there of thinking, you're

Hillary. Yes. Thanks,

we're when authorization. And We've of so, got back value our Gus we million. as shares we we are In So about, $XXX stock. left for still in see target doing and first used in I about we've second program. from now, about so the May, did as talked new authorization, significant our that talked March, about it, $XXX So million right? we so X we GE below as you this times far, at that's bought think so X.XX $XXX million mean, around the we that we've in and said, did authorization. million

of three than of that's And market programs $X.X year. when the billion, cap to market around use waiting not think that. to our all me together, XX% in GE more So you for to to we're that's come

lot, a our we're I buybacks. it's So And lot that capacity below think just is there for to fact shows capital of more deploy going to continue but come. targets, we're to a that the

it. got the distributed of are? between it mostly is engines portfolio, generation of CFMXX? the And it terms of just find of evenly Thank kind to your and you're technology the in selling, Is tech and new just in engines like kind Okay, like the lease the GTF GTF most engine the new engines is like it in-demand or you. composition wanted then that prior is And the what terms what or or allocated? it the evenly LEAP of

LEAP-XA, to pretty start almost the portfolio towards Well, exclusively the with category. in LEAP and it's GEXX, heavily weighted that and engine, exclusively GEnx, much is CFM LEAP-XB

engines. So is NEO is the of technology highest And are any which lessor in almost that's -- who book positive. is XX% the new XX% order engines a And it industry of our our to XX% probably weighs CFM.

we what -- the will is see very So

seeing you're I most where demand, that Is Okay. the guess?

engines doesn't We're across lack seeing matter level of for and the extremely of demand with because strong. the used board, it new the demand utilization, supply, is the aircraft

Thank we Thanks. September. to Got much Thank you Great. you it. guys. at you in our seeing forward and conference look so

bet. You

next We'll Susquehanna Stathoulopoulos Chris Please ahead. International to move go Group. from

way. a we're to going question, ask to Jamie's to in different On this try

in Frontier. just this there balance? And oversupply where I -- supply-demand also out you strong that on that towards think hear being this more to of you shortage view about progressing do that across is view how Transpacific, US-focused Trans-Atlantic, could Alaska, supply debate mid-decade there Intra-Asia-Pacific? I and like is condition I these be understand Thank moving here. some want the don't by board, the through looking and would you. books that global love Aengus, about and we demand In order carriers markets But through the do the Southwest if talk but at of Intra-Europe are seats, there your see we US, to for terms you part. So,

were one say COVID, and got with of the market the in Intra hardest hit got -- was the start the cut XXX the lot Boeing had it's Then ramp supply lots production all, can't look the scrapped dramatically aircraft in airplanes hard like widebody zero Atlantic. too. hit and the we the up The And XXXs, into of As at scrapped big really lucrative getting -- like that XXs. of We a they hardest had the three lot. that freight. now is most a we a on production fast. -- North we demand put aircraft hit of Airbus that out

that, over very shortage aircraft. European the market. the sharp the what widebody growing still with comes geopolitical the to ago too. expect demand overall industry. United will US strong. But fares that that the anything even come and like market don't no It's I very strong, the catalyst issue past, in seen market on moment, post a happen mean, We market of been X/XX, like transatlantic stuff have back the back, financial crisis, could see out The out strong obviously I'd That its or a when it X, So the But always further that high more there. narrow-body to interesting to start that deep Intra-Europe pretty is significantly. a will a on of knees, in side. to has be markets. there's would saw the give you like with doubt, even -- downturn There X.X stay that's Europe. Transpacific come market, were we've very those At We back on States. years the China

strong. me. if airlines. get more of any in doesn't pay an the But they airline So market, we markets, profitability makes see bills. don't we There have the nothing, care that don't that European which so very I many or billion European obviously In as hurts airlines so it. I are much $XX still competition. matter the for the to

humans plenty is manufacture I to do out a just of there confident XX,XXX it thing years things the will the future. for a XX be, and challenge. repair airlines on as that's It's for hardest people the long and hours you there, difficult the years day one they do It's put years, you're at of a as in which aircraft, feet, such So engineering doing same pretty air aircraft. feel into to hard it very to and machine now about XXX

schedules facing surprised manufacturers. persist through So going should But I'm years most US with the don't they the from you guys. been and because certainly challenges the the believe The I so. part, biggest aircraft some older for of they're delivery now, to about aircraft, of that have to guys get ask right US for the buyers the they'll Airbus Boeing it's us, come. and not

think that's delivery overcapacity, I on scheduled If arriving concerns bet dates. aircraft those I I betting too wouldn't much man, was a based schedule. on So on about those

Okay.

we the through four sounds fair? by areas these and Transpacific we to that and extension biggest few it opportunity So as think wait AerCap here is next or however, that the want the for the here read here, about mid-decade, like about think is as we for carriers years into

it Transpacific further catalyst, that really I back. if another is think, be comes one the the could

by you be that mid-decade, said, see in in issues geopolitical -- talking As hopefully, that will we'll and said catalyst. one where there and the get we another you we're the into geopolitical some improvement

you. thank Okay,

welcome. You're

the any comments. there conference time, no this queue. for to over or in Aengus additional I'd the turn to closing like callers At Kelly are back additional

months' And all Thank time you appreciate to talking you else or for it. three look we us you. seeing in joining forward then. before Much Thank to the for call.

today's your thank you all for participation. We That teleconference. does conclude

now may disconnect. You