Sinclair (SBGI) 28 Feb 242023 Q4 Earnings call transcript

Greetings. Welcome to the Sinclair Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note, this conference is being recorded. I will now turn the conference over to your host, Chris King, Vice President of Investor Relations.

begin. may You

afternoon, Fourth Good thank for you Thank XXXX everyone, Earnings Sinclair's Quarter Conference joining you. and Call.

Vice Lucy Joining me President our Officer; Officer; our of Weisbord, and our Media. Chris are Chief Chief Executive and Rutishauser, Operating Rob on the and call Chief today President Financial and President Officer Ripley, Local Executive

page available may slides results. to a and subject on the for today's information risks Before I we supplemental on webcast earnings uncertainties. want of begin, the statements future are this number sbgi.net, call on to among on are page. and Investor discussed operating website, remind things, statements other Information include everyone that matters regarding, our earnings Such Certain forward-looking call and

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to that of ability is considers the company an also flow and specifically, and discussion adjusted non-GAAP and adjusted measure the used and operating company free a measures, believes flow be flow cash industry the adjusted companies a EBITDA, evaluation lenders to company's The be local by segments of adjusted adjusted accordance industry. EBITDA performance a will performance. call valuation debt. The reporting. be company's adjusted operating free cash indicator measure discloses commonly service with EBITDA in of free as its segment the for company to ASC to the of used also an investors analysts, indicator media cash indicator company segment EBITDA is on also the considers Included ability XXX of in an performance leverage. of The service debt. The its as frequently company financial the The operating believes that

reconciliations the website, found can a forma Any of company's of our forward-looking beginning sold pro March financial investors GAAP, exclude Sports, the basis. Further discussion of formulated for discussions on GAAP provide companies. In of addition, measure formulations. other does are and used uses with may or measure this on measures reconciliations media by non-GAAP which Diamond GAAP analysts, differ to The be in company measures meant was and business as local accordance not XXXX. to comparable any is companies' since as numbers not not from are X, measures XXXX, valuation frequently a and compared replace to and will financial industry lenders deconsolidated www.sbgi.net. XXXX These measurements

actual For earnings to consolidated, Diamond periods results, release. refer was the that please including this afternoon's

me over Ripley. turn call Chris Let now to the

our I'll for and X financial on introducing us. you Good fourth start overview an afternoon, thank everyone, by Slide results. of joining quarter

expectations Local that Channel Media exceeded our segment, across see, board. met the As while solid Tennis guidance in quarter Sinclair you expectations results can fourth delivered our

comfortably were cash guidance flow. total within we adjusted result, ranges adjusted a As for and EBITDA consolidated revenues, free the

in In approximately our wanted generation strong I quarterly to $XX XXXX, paid the our through dividends. return highlight X. to commitment our million to stakeholders during flow of year. free Turning Slide cash past we

par up and through to of at of an face million $XX value year of average debt discount January, the During purchased XX%. we

us allowed shares to This debt amount which our repurchased of excludes X XXXX. additional also early common retire amortization $XX we nearly million in million XXXX, of an our stock. In scheduled payments,

maximizing to commitment value stakeholders a our of all Our for remains for the top company. priority

X. to Turning Slide

we business industry dedicated needs our remain broader regulatory election with believe past, traditional to head that As as due a churn local well the constraints. multiple growth media that year. realization stated being we the to subscriber presidential has as we the to as With Sinclair industry said, have into we in and transform the drivers

to growth revenues in expect impact growth of $XXX we several be political this and in of XXXX significantly footprint XXXX which advertising expect exceeding political closer get Georgia to First, revenues equates strong political million, the trend the runoff. levels. this And revenues excludes XXXX, see we political both the above saw advertising XXXX record-breaking which to House Senate our XXXX's and races accelerate as to close to of issue-oriented election. year's we what appears in We

hypercompetitive fourth quarters of primaries, to spend more of general the anticipate lack do the spend third presidential will we the and level the at we as be Given advertising on heavily weighted the to election. expect focused most political be

and loyal of our as on with continues syndicated impressions across driven viewer to our by viewership, programming high-demand differentiated well local XX% drive as content Second, nonnetwork sports focus station news content. portfolio strong and

mid-single-digit renewing a the through we rate growth In XXXX, nearly retrans X addition, all expect XXXX. CAGR our subscribers end with of big net X-year XXXX by from traditional of

coverage and becoming January million of XX half as have and about X.X is year. this we now of far, thus are in been U.S. We XX% have well. future over a as NextGen TVs Broadcast potential. XX Over NextGen excited our the sold, of reality NextGen's markets

in of from broadcasters, to big competitors, we ability big growth the tech long-term media and X.X traded advertising on used far perspective the the NextGen couple regulatory fourth for including virtual sales directly our over is peer quarter, items, X% regarding are our the growth of the negotiate our group. cautiously changes spectrum interim, widely for in more industry In optimistic the spectrum relative with drove publicly regarding X.X a MVPDs. highest overall positive as the while and particularly to a core focus And excellence industry's is guidelines rate from environment sunset

we documents, the certain In eliminates announced the week, global between a all within Group being Diamond final rest earlier mid-January, X. to Turning to litigation will as X of expected court with and pending pay a due outstanding total the million Sinclair by that $XXX the finalization $XX claims settlement with days. of approved week, be million, is settlement the to the Ventures, paid, Sports this that is expected be Per determined, companies. XX first Slide which the this paid

We gross amount to in increased billion the Diamond net of fees $X.X agreed million million has the and million cost with tax results litigation settlement, management $XXX $XXX other Diamond and exchange, including In drop benefits others. the approximately a associated when from assets. $XXX against of Sinclair estimate to

Sports future we safeguard thus, Regional believe settlement the of Diamond, the environment. Importantly, this and broader the of plan reorganization and approval helps Network Diamond's

compared call, sports quarter agreement be pay-TV as We to value and in bundle, a fact, relative our and asset to carriage shift continued our improving of during going existence including as the it the the bundle key Disney-Charter is, strong the pay-TV pay-TV believe of shifts third favor well rate the we remain DXC of pay-TV the of in in bundle. view bundle rebundling RSNs, as local -- as in the driving forward. the offerings that environment à that will la carte this continues development, discussed the is light being via In

carried discussions to Bros.-Discovery We and be that expect we Fox-Disney-Warner continue of announcement we to platform, the ABC would the impact to partners value stations FOX also subscribers bundle. our can not content forward believe negatively to recent as with back will look consumers the distribution receive which and and value allow streaming We on to our compensation. Sports bundle more networks attract add other as to us and us the how

the value Bowl of Super value, ecosystem, in this the a television represents U.S. any January viewers year XX speaking million this linear broadcast estimated most media in Super audience with one in Bowl U.S. XXX highest And alone, watched single with XXX.X on year's an record making with telecast in of history. viewership it which the network setting of the history million on CBS highlighted viewers,

to the television. helped record-breaking affiliate importance broadcast in CBS the significant XX that of and audience, Our underscoring a delivering stations role played to contribute game

our me over Rob strategy. let it turn to discuss media local to Now

Thanks, Chris.

to and our on fourth Turning environment advertising, excluding I X.X% X.X% Slide core basis, year-over-year industry-leading quarter advertising consolidated growth a of X. wanted segment, by quarter. touching growth. the while to broad the on during fourth advertising Media we in forma up business was Pro approximately in our Local delivered the begin political,

this in the ad highlight into year hosted on I Super on over history, live only jump the to we I revenue Super wanted landscape regards highest XX% showcasing breakdown, time grew our to the up our power the broadcast Before Bowl. Not sports. CBS sports that follow was last also Bowl, Chris' importance in of of the to the broadcast category media

Now to categories. up drug up year. XXXX, nutrition. months medical as the remained and while and during X%; retail, remained top are by quarter; be in home year-over-year X% food of X%, continue the Heading as categories a up strong, first Services on retail, products strong, well and performer, to while legal automotive down the into services slightly driven X and

to year less pressures the the In to addition, due expect auto in I programming category update wanted ago modest Slide ad political a provide quick on spend. the during in X, period. On quarter we first Sports premium

As The in political year Republican largely to early our guidance, the fourth we spend of the quarter booked modest several timing Iowa from the candidates look of a our but $XX shy advertising quarterly XXXX, hitting forward $X of million of withdrawal million $XX nonelection to miss XXXX, in record was and of guidance caucus. we for year. million the range due of just

political These we will see fundraising PAC from PAC XXXX. back-end loaded issue-based us to for we lead Super a continue continue year heavy election expect revenues forecasted strong for continue and us items anticipate and to to be this to record-breaking in advertising. year, trends While spend

XX. Slide to Turning

agreements This of in network on agreements end We subscribers NCTC. expire deals recent now of X both includes the are traditional Verizon remaining and between multiyear XXXX. months. with have that signed Big X the and Nearly all distribution

we announced the includes an covering addition, million renewal FOX XX In FOX with markets. of markets partnership This our in XX households. all early extended of affiliation XX

of half before back X network in mid-single-digit XXXX XXXX. XXXX. now We mind, expect schedule only With X negotiation through net have we retrans expires for X-year our CAGR that affiliation from the a Big

long-term highlighted to revenues. the retransmission trends earlier, positive of net industry continue see Chris As regarding we stability

on me as back over our segment. update NextGen our plan Ventures let Chris to Now Broadcast provide an turn to the as call well

industry Slide been deployed continues now to nationwide updates quick reach. of a the coverage to On I markets, over Rob. provide technology, regarding has NextGen in XX, couple which and improve broadcast of XX% Thanks, half wanted is NextGen as our

TCL with has built-in Hisense models joined that TV manufacturers TV Samsung have NextGen and as Sony, capabilities.

fact, is today. every NextGen U.S. in at it including availability set In Sony sells the

role model We accelerating only continue of in adoption in continued the to globally. not and transformation broadcast the the but play capabilities, DDaaS of leading U.S. local the a

quarter XX, strong guidance. revenue adjusted quarterly in well $XX As another Tennis seen of both excess with recorded on $XX EBITDA, the our million in Slide Channel million total in and

$XX full and in excluding initiative revenues the Channel Tennis million For Tennis when $XX EBITDA, year, losses. adjusted delivered or million in $XXX million

continued Channel. expect Tennis strong growth We from metrics

Slide world. while media grew the fourth grew to impressions XX% Tennis of in XX% number households social XX. Moving grew year-over-year, by and XX% by by Channel The Once watching other all average by viewers year-over-year. total The quarter X%. English-language customers monthly again, sports while networks for outpaced Tennis TC authenticated MVPD the viewing Plus year-over-year, increased in subscribers streaming by grew Channel X% growth platform ratings

its fast growth as year-over-year, across delivery grew XX% tennis TX platforms. channel strong exclusive continues The drive content to multiple by

In of Channel in will addition, new XXXX, launch growth. offering Tennis a direct-to-consumer leg which will a provide

believe We Tennis drive Channel growth quarters. the coming metrics stronger also even will for in pickleball

recently on streams its well rights as as grow rights, acquiring EMEA the in we on our WTA a to as as many continues opportunities for expense markets to way assets, both a and versioning artificial investment enhance Furthermore, want portfolio Channel Tennis brief other provide as using both international and Internationally, of Spain. see Slide revenue intelligence excludes Tennis multi-language to Tennis know Ventures consolidated portfolio see consolidated XX, update for which we holdings. reductions. Compulse, ahead Channel. I Channel We well

$XX the a which million As company of XX, capital cash contributions market value investments. minority approximately $X.X portfolio's cash was of during position billion, note, made Of million. includes the December the additional minority $XXX quarter, investment in of

million full the in For $XX $XX contributed distributions. year, million minority and investments we in received

-- into performance amount stated minority as investments have that majority-owned other transition providing of Ventures we we in long-term assets. well is As visibility the goal greater we've potential investments over as that past, into our expect time the growth can consolidation a to of these significant opportunities and to

our we continue will We portfolio. investors to the on as regular investment basis update transform a

the awards Murrow in National to Lucy to awards, awards charitable turn Award I wanted results, endeavors over which year. Sinclair financial and call past our National XXX broadcast the for highlight Before Station, the over to KOMO. XXXX, R. discuss of was the Seattle X Edward including XX our won prestigious I

in we nonprofit and more charitable the the members an organizations XXX On serve. we front, partnered effort and with which of to in than across supportive country the communities be civic engaged

over $XX We X.X than nearly of million and food, almost pints more diapers XXX,XXX million raised of X,XXX toys. blood, collected pounds XXX,XXX and

service scholarship of tuition and in volunteering of that their over single over which $XXX,XXX alone. during our day over XX in time saw service employees annual company-wide X,XXX X,XXX to hours provided almost assistance April, first through the past day also held diversity years We provide our

opportunity thank look to want to efforts our another employees forward their year. I take service the to this charitable day for of and successful

over for quarter. the let provide me additional turn to Now to details financial Lucy our on results it

and on Chris, advertising our Beginning you, quarter fourth and delivered our media during revenues guidance. good basis, revenues a we on distribution consolidated core the Slide exceeded met as Thank met afternoon, that XX, range, guidance everyone.

revenue last offset advertising. On increases during year, coming our year, costs also and guidance lower on quarter, nonelection election to $XXX XX, range, by compared in within revenues was political As to core revenues a consolidated year, primarily distribution EBITDA consolidated decreased part which a OpEx adjusted as with Slide midterm the in in was media in the million expected.

and year-over-year, during the of cash shows last result political EBITDA political free as lower on impact costs forecast. XXXX decreased off-cycle the from Media overhead to year. Diamond an quarter our adjusted consolidated expenses as rose revenues compared other slightly the with expected, forma above coming while and contributing decline in other the XX the a in the results revenues quarter. Slide excluding the adjusted all of consolidated year nearly As settlement a pro corporate media the fell modestly, nonrecurring of flow basis, in our period, midpoint

a on due taxes As X.Xx walks cash as higher distributions next discussed pro trailing adjusted due as expected, of cash than fourth quarter the of flow and rate free EBITDA, the from our last investments, as our X-quarter debt, coverage both year, the offset with leverage the by well total lower was metrics STG's balance on on refund higher was maturity basis declined minority interest more cash just December X.Xx slide, forma adjusted its in on year-over-year a tax the expense X.Xx, and floating the decline received leverage X a away. net CapEx. Slide through to higher cash net in at previous of end basis. was meaningful XX years Interest as XX. sheet first-lien year to

SBG million with $XXX shares proceeds at $XX.X million $XXX was total earlier cash SBG of XX.X million week, position Of this and at There year-end, at of million note, year-end. received in cash Ventures. cash closing adjusted announced million were revenues pretax consolidated $XXX of Our $XXX outstanding flow. cash sale of in in billion full $XXX Music, results. million note, the Sinclair during provides previously adjusted Broadcast free generated financial Inc. Slide from XX EBITDA media million our over Of year in $X.X and XXXX, the at

driven XXXX core guidance. the total FOX low in year quarter, exposure political. We in primarily Bowl revenues Super to media first given quarter quarter is anticipate on the in X% revenue million $XXX million pro distribution Slide the X% to in forma the this XX year-over-year year-over-year the to advertising guidance. be year, introduces be revenues to while by of percent up our range, caused for versus our $XXX to midpoint which our CBS expected single-digit year-over-year flat up last lower roughly at quarter, the

higher million in million the being million year higher pro adjusted of from flow anticipate to initiatives. EBITDA to first in XXXX. $XXX quarter, ago the in versus we expect largely which and offset range of anticipate Tennis We be in to in advertising modestly million adjusted the the growth $XXX million, revenue costs, up free quarter due period, an $XXX quarter political forma to year, EBITDA the the significantly $XXX adjusted up programming network election We cash Channel by $XXX production fees of of the

Turning XX. to Slide

see move primarily includes our excluding can DDaaS Tennis in CapEx around Reflected million the for projects a the XXXX. You $XX and $X of other of which full and guidance than the XXXX spending, initiatives, which $XX is year to million for of cloud, our million guidance savings certain lower to initiative result expenses, Channel's avoidance technology approximately in OpEx are cloud. our as move 'XX our spent $XX cost million approximately

year the impact of increase initiatives, higher the the approximately commission revenues the year. investment quarter nonrecurring cash in call is expenses the and like cash excluding expense Also portfolio for Chris are our When on closing full from to first this for media for costs, with some and full and I'd to CapEx, that, guidance X% for distributions turn estimated comments. the over back slide to taxes. And

Lucy. you, Thank

fourth Channel Slide to Media results with met quarter guidance segment, our as Local Turning delivered XX. exceeding takeaways expectations Tennis key expectations. Sinclair on on we our solid

renewal scheduled to some forecast a also net subscriber full months, affiliation up purchases XX month XXXX. The payments retransmission In to Sports while to forward, of value and one discount next since average structure, in which this we early bundle. pay-TV market believe agreements overhang local leading face addition, capital plan significant Network model Regional through the the retrans of coming the Diamond going XXXX from commitment of that display of settlement from more we X-year addition agreement Diamond's in last January debt a and than XXXX. And are CAGR traditional as reorganization certainty mid-single-digit for sports beginning year, only view have an continues, business in we our we remains million June churn as our to the announced XXXX we through the through $XX us component XX% important amortization removed significant million gives an network positively on has at delevering par been $XX in repurchased open in

net growth. our Sinclair of contributing summary, with position the in short In leadership term, record-breaking -- aligns and in strategic focus growth This in with free long advertising industry the growing is anticipated year, core adjusted strong both a and throughout for on maintaining XXXX. emphasis and presidential cash flow a retrans EBITDA to anticipation robust

we open have and about to the the that Thank now laid groundwork for joining questions. us for promising us. Lucy, opportunities today. the I ahead and of you future, will are We a excited Rob lie call

Instructions]. [Operator

first The from Company. comes Dan Kurnos question Benchmark with

bit a Chris, there's noise guys around have you distribution, unique position you RSN. obviously have been lot have a magnitude the year, this of of that renewals negotiate don't a given and the that you of to and

curious, you a kind go about obviously, blackout. net so you I'm kind seen space. underlying before, of ability that's guide, just super are these the of And don't feeling of anticipate sort rate how you in any said one, just helpful. through We've couple So you've here? you've And conversations, the as to given obviously get

kind to just start. your curious of levels on So confidence there

Yes. Thanks, Dan.

NCTC. we we renewed Verizon, time. a had through will -- that XXXX. we the be Certainly, not And some hope for blackout quite So look, we have case

exceeded we met an all in internal our those on XXXX, through right We and all active negotiation now renewals with we did Charter. or have going the either targets. have And of

we it's set and So in on so renewal far front the we're been bullish so us, very that of good. have

as and what maybe the tenants well and just Ventures capital all doing Chris, appreciate on sort DTC color of you're around And allocation, the then color. as

where With lawsuit just mentioned given And flow the in refi? some of feel 'XX, you trading. about coming the and buyback, cover cash too, the stock generation obviously, the are or debt the you then thinking the selling in settlement stock assets up how is to either confident

So get color you think about love that. to I'd just incremental as any

Sure.

we be year. last always to have and continue been. both on were debt will opportunistic the We equity we side, So as

both would that given to side. focus and stakeholders, equity us Our feedback us debt, the have they like on leverage

likely near be think I where going term. to that's the we're here focused in So

here. to structure But feel we deleveraging produce on We're significant anything special be capital to side. cash do going into we don't We heading free like a the need should natural flow. cycle

position. like we so And our

Next question Bank. with from Deutsche is Benjamin Soff

dig wanted get down Just the your to In versus little typical presidential year, and elections how just bit candidates takes I a thoughts break political there. into versus a on from and comes much sports can curious congressional issue-based was more puts bit. then little And guys spending. the to a JV the around you

Yes.

to many in we're fact senate that for a it's -- hard contested see than cities. down looking So break of other ourselves race our it we the in

We Super are the And raise level. record to update in week, last races as then continue PACs from and well. the gubernatorial a latest PACs at money

And So we're lot by advertising. buys will they then as being of money spent follow as PACs a ]. and [ Super candidates played into quarter the and looking we've we fourth already Super significant And issue PACs have the in the spent seen dollars the third as by that. -- PACs well for

it's this development. our to ABC customer package on going your be that But consumer our an is sports incremental happy second their have FOX for included and we going stations that on and a in perspective around appeal. to game-changing that We not streaming be the content. are And or believe paid it's development, question JV, are mass don't

don't that being addition we environment. So terms it's pay-TV the it changer a of necessarily from in game a see nice perspective. But

with Crockett Barton is next Rosenblatt. Up

guess I a things. just of couple

that, around they wondering you change update I are in Just I any you're like what things of seeing could if on if first or kind was any on us there, not just trend I'm there's homes. continuing heard sure but were. commentary the pay-TV

or rates to is to confident the from -- the a what it you is cutting, in you're the then step-up that mid-single-digit top now? a retrans, it negotiating? single-digit I that you're the on low there? more confident is cord mean the CAGR or net terms CAGR of And that trend makes seeing low line deals single-digit the what -- what and more side you the On in expense just that makes from

your our churn want stable been I within We're So what's And reflected to in make do question, us. that's guidance. churn, first has terms sure we clear, that -- now. on kind it's to our to used 'XX, 'XX about we of since our guidance ancient turned in have digits, still -- talk of mid-single for is 'XX and history the page

So books. we're a useful is in 'XX, guiding from which mid-single-digit a now think for 'XX, We now see the we guidance to Kind more of CAGR. that's there.

have significant But us. And confidence, last in agreements. of pretty reverse at over We've your we We of which -- where are ABC, in that's a what's we X only had multiyear for terms all question of is engagements obviously up FOX have several market, group, -- we the months think good about the locked very also CBS. our the end of our much very this and I our are, biggest network year. have affiliations, sense Those with smallest we big NBC, ahead X of MVPDs.

over next the really, next mentioned, months. even what years deals good XX those our -- it's data those we of of on I side, So MVPDs renewals is certainty outlook, with a that renewals confidence X or recent us that market and X set in for years have major the we to going most reverse will the lot with be have give which

other just then And thing, I helpful. That's quick one could. if Okay.

not It Diamond restructuring? But is settlement that Group, On is and that completing they the there if settlement any they probably is there the potential with seems like between will. impact aren't actually any tie able approved, restructuring if the the to emerge? on

No, judge there no also On but contingencies this related the the Diamond, Monday, the for settlement. broader DIP restructuring. is to both approved financing

be no there, sort some should contingency of at So that only issue other finish the we that documentation to need would There's but to days, in of judge in to the line. the up an of then contingencies. next that looking And here we're had approve. finish terms from not couple that getting was there's the

Bank. Instructions]. Watts next [Operator question from Aaron The with comes Deutsche

on A I'll advertising questions. start couple of the front. core

seeing deal an to a the point through with move year? of to acknowledging can start You the later others on picture you have signs that improving Any probably slowdown seem be year. give this some modest year, confidence and crowd at on to here you'll as we out the

jump one CBS add color. of in, had and have Madness. things last I'll sporting the significant FOX that But And then me and and had is that year, the affects including Bowl year. let do Let Rob we some we the QX Bowl Super events, Bowl March we our Super do Super this

have more way FOXs CBSs. We than

with March But year. out take still the actually saw impact and we of when you Super line we're in Bowl trending what Madness, last

So the the slowness, at yet. up least, when you really dissect numbers, it shown hasn't

if color more any he add Rob let wants. I'll

the gone as quarter. very on remained the a had soft have January has in and months Local National recovered has steady. Sure.

to to just selling marketing focused company dots. business versus the aided selling media shifting our mentality and offset think being all I and trained our full core past to are that solutions able decade over weaknesses and we a any on has and spots screens be

of sets helps specialty sales So any pure tool that we weakness focus the offset that in on because our auto core legal our service and industry. industry, industry, the

So they're the a safe led and by us, out heading advantage, results consistency. a coming with it believe, 'XX which of first-mover's 'XX those categories, I experts allows all run into

you'll $XX Diamond of how a versus the question noted week of to settlement, paid Lucy. provide Okay. this Helpful much can out then context. And silo. Ventures the you a pay from with housekeeping remaining million Any the you on for payments Ventures start of bit be But maybe will clarity STG? further

be through over The to X That independent days. of are is going determine determined that. XX a Board something the silos that process members will the next

on allocation And Lucy, being heard Chris that capital increased that you blended a Got then side given leverage get debt or around would likely leverage see term. and basis? your Okay. near you focused live? where the there stays the space, it. to on do the see able when just lastly, I And on like comments year With investor scrutiny even-odd in to mind

Yes.

Aaron, changed. So Xs, has target is leverage, that high not target our which low Xs,

Diamond Now decline to pro strength do and this leverage we forma settlement, -- we for expect of EBITDA. the naturally on political year the

the Ripley, reached of for to now turn President will call session, have and over question-and-answer Officer, end Chris remarks. We and closing Chief Executive the I the

Thank joining you for today. us

any do reach have IR our additional hesitate to not out If you questions, to department. please

and concludes you this This participation. Thank you lines today's time. your disconnect your may for conference, at