SkyWest (SKYW) 1 Feb 182017 Q4 Earnings call transcript

Good afternoon, everyone, and welcome to the SkyWest, Inc. Fourth Quarter 2017 Earnings Conference Call. [Operator Instructions]. Please also note today's event is being recorded. At this time, I'd like to turn the conference call over to Mr. Officer. Financial Simmons, Rob ahead. go please Sir,

Thanks, everyone, call on joining us the today. for

Rob operator Chief indicated, the Simmons, this As is SkyWest's Financial Officer.

I'll On safe Chip I'd start Eric Childs, Terry Vais, Wade to me comments. like SkyWest Airlines' today to Chief Mike Airlines' harbor. over Officer; Accounting with read turn Officer; Chip to Officer; and Operating Chief Commercial Steel, the the Executive asking Chief Chief Thompson, today some Woodward, Officer; ExpressJet Then by Chief President time the call and Eric are for Operating Officer.

Following results. Chip, and discuss I related will Wade fleet take you through the the Then financial flying arrangements. will

customary Eric? Following Wade, the with our Q&A have sell-side analysts. we will session

events assume contains and that for Today's forward-looking vary and a number likely obligation beliefs, no estimated represent subject reasons. statements those expectations may and projected to will update materially Actual uncertainties. results current from statement. risks anticipated, any regarding vary forward-looking We discussion our are to future and of assumptions or

Some filings of Form reports such other differences XX-K and and factors our and cause included in are the Commission. Chip? XXXX Securities Exchange that with the may

professionals seasonal commitment generally thank safe, maintained some to holiday we during press XXXX than final I'd very the fourth while ongoing call through plan Thank Eric, us we to reliable the reduction everyone, the a more release schedules the the We and successfully season. fourth our today. their year. this stretch and the a and demonstrate. results as strong our plan We quarter fleet operations. for you, XX,XXX on began business strong see in of running our completed transition joining quarter, thanks, people and Rob fleet our And executed for like as

with During some But will performing will on Both delivering on quarter, I'll focus color than for solid how ExpressJet importantly the and operated well. adjusted our continued the our benefits reform Rob flights provide new it XX.X% very most operating quarter. financials. airlines reliability, XXX,XXX are each people. we SkyWest tax strong reliability. completion how Airlines more fourth the today impact

at We on each airline have profit-sharing nonexecutive earnings. strong after-tax programs calculated

legislation, the a in but our award any duration not reform. bonus ensure This people increase programs to decision to associated we legislation. not Following made be enjoy a to permanent the with those benefit profit-sharing employees an adjust the the for of the will ongoing onetime

aviation rewards the Importantly, people in on as us for enhance operation. programs great legislation helps as the the provide careers our of well frontlines

what new on an new recently complete are contract plans successfully take end making is just after which of and recognize and mechanics operating remain a negotiation, one our those returning ExpressJet, also with is we long meaningful its profitability an that by has united schedule to business on -- Execution Delta the commitment as step day. extensive to customers progress and of to long-term of are as well Specific foundation ExpressJet with the end. year. do we are important to ExpressJet with this focused people we forward. entity way this agreement who Our care secured the ensuring that of each

visibility positive momentum ExpressJet. efforts strength, and provide We to to continue structural

industry, the we -- strong on In terms across staffing ongoing of maintain pilot the focus levels. we remain strong

we and and our our forecast vigilant are disciplined our fleet. maintain across strong about flexibility in We flying commitments,

and of represents profitable maintenance in last fleet leg discussed we began mix smaller a quarter, transition last significant the but As footprint. we toward XXXX XXXX more fleet

the provide aircraft. set in detail EXXX Alaska us announced continued more Delta a year previously busy in And with XXXX. and are our strategy a on fleet XXXX fleet to significant we for progress. that flying execution EXXX Wade investment another be a up movement with will to have strong Our do minute. We are of expect and XXXX track agreements on this schedule and will XXX

to create years, approach many the of as our future competitive believe foundation commitments. We in XXXX and persist these areas to provide in great will and execution our in liquidity our we're of best-in-class key solid We ahead made continue best our our advantage disciplined of believe current look opportunities a objectives, up our our we continue to investors. will We've our partners employees, we the success. progress and remain ability the As are rest is the believe there to and last to risk operations, to firm three maintain beyond, very flying value and we make on for SkyWest and and our continue that be focused and future over few strong for space.

our Our to industry's operationally exceptional to our is ensure are strategically demand. the I positioned want thank objective best operations. than meet Rob? across Again, we and strong XX,XXX professionals their to work for more

or the basis, net million per fourth of increased QX XX% in XXXX. Today, net quarter $XX income $XX our from quarter XXXX, million $XX pretax fourth an $X.XX the $X.XX adjusted reported or for On of from we of of income year-over-year adjusted up to million. share income adjusted

of period, last took of XXXX, or fourth aircraft unprofitable this quarter which aircraft Act in XX-seat include can As increase million revaluation This throughout partially net from Cuts in XXXX. impact delivery XX Tax item EXXXs XX over the the the I This excluded shortly. benefit on less-profitable of benefit revenue Also, the offset aircraft. $XXX up Revenue including XXXX, the results recall, million Job XXXX, only from you QX generated and the detail XXXX, million will was more included $XX you which the release, by in the a our adjusted XX EXXX partial XX same results. quarter see quarter's year from had $XXX purposes. impact only QX a comparison adding as for QX in we discuss of GAAP tax fourth new for of removal revenue was since

averaged rate per generally Tax anticipate about for XX% us previously per fuel fourth in the we model. year a big $X gallon tax increased from quarter. or QX in million items. per million XX.X%, adjusted prorate up earnings cost XXXX under the tax XX% discrete $X.XX this before to pretax per the cost reduction The $XXX used during of provision provision $X.XX in the mentioned excludes from business gallon was Tax gallon Act EPS quarter, fuel a share topic quarter Jobs benefit. was a ago obviously total rate between $X.XX Under XXXX, Cuts a and XXXX. which The a Our our cost

a on and resulted to related This tax strange-looking may and tax reflects required future now GAAP liability payments deferred in rate by at GAAP. amount permanent our stock does being of years, take we remaining past delivery deferred to depreciation tax decrement flow advantage airplanes federal revalued a continue and benefit option XX% other net tax under stock timing Cash law. for and the being enacted exercises, balance of basically the federal our taxes, on purposes. provision revaluation the tax the $XXX of restricted This assuming for not for share rate will vary in law in to cash however, make couple The of to change benefit zero, future vesting, reported is provision reduction revaluation deferred new of sheet. have take is quarter quarter from factors. we million Our meaningfully million this based This liability this tax price related new next a rate liability tax as as originally the XX% reflected earnings. was $XXX accelerated us under our the performance

Assuming investments at no rate expect the we starting new be lower after XXXX. XX into the cash to service, taxpayer new a are in aircraft would placed EXXXs federal

We of $XXX Let me sheet, XXXX, quarter $XXX our couple issued debt during in $XX XXXX, debt $XXX last financing a XX, this four with ended of last $X.X $XX We CapEx, long-term year a in new in equity Nonaircraft of December EXXXs. $XX quarter. was from and purchase of point about million for cash critical new the acquisition repurchases. as share our QX last in million, about $XX million for million capital with cash $XX the to other in up used of Total from million in quarter $XX at to balance EXXXs. billion, run million million toward time. differentiation range say model. SkyWest the flat million along XX also continue quarter per with equity XXXX million should spending the in in deployed million $XXX things planes,

of we With to planes. new of the term embedded fully million debt. XXXX, $X.X in raise the million over these year of principal approximately plan approximately expect EXXXs, next our from $XXX we $XXX normal where end are term because up billion, for in by the that debt only now, debt be million But payments the in our amortizing order will we $XXX

will of asset end peak and We will million per quality as flows new of our agreements. an no XXXX expect while growth cash over of be additional continue expense debt pay earnings. we because cumulatively. million airplanes, that would Assuming XXXX ended We slightly under a per will XXXX flow that free operating amortize of are our year down of and several and contribute the $XXX airplanes. up free quarter cash end noncash enhance approximately the at $XXX service to $X lease we next from the in reduction in equity plan XXXX, debt XXXX in where cash this billion XXXX with to year, and expect a we our cash debt of rent long-term $XXX now, $XXX in rents flow excess primarily debt generating aircraft in years and after prepaid cash we anticipate flow We in to expected of million will or net reinvest the cash our million fourth to over of

million As authorized QX, we $XXX program during earlier, stock referenced repurchased three-year by our under $XX board in repurchase QX. in the million I

to us moment. is it. Wade expected program will another $XX have as million fully in XXXX with fleet many for expect busy to in under be We movements, remaining utilize this a discuss authorization and year

wrap me in Jobs us be with benefit three little new nice color up Tax for a ways. Cuts XXXX and The XXXX. Let a of expected is on to Act

benefit the to of and bonuses First, on discretionary does tax our our rate matching based benefits But XX% line. net XX%. not XX% historically straight provision income. all that nonexecutive drop bottom have Certain from P&L XXX(k) to been to going expected from

our future tax benefit allow enhanced nonexecutive rate $XX this to from annual million benefit. will This expense employees pretax to We in XXXX. starting reductions close in is

earnings guidance. movements, fleet the to We XXXX the Before we, Street did XXXX enacted, per the not tax not given EPS did as usual, all a provide should that was expect law share fore-handle. formal have indicate

provision lower-expected version handle a little new While earnings could just half from with another the doing the the bonuses, nonexecutive comment. that updated friction equivalent math for higher a to

liability. in under balance the benefits Second, to million $XXX the tax the revaluation haircut taxes the million our of got from tax our reduction In related we need amount just terms, permanent to plain pay sheet law. future earnings $XXX new a past in deferred

tax third flow. The is cash the benefit from law

cash XXXX, starting in meaningful our couple paid investment don't in years, change the next tax at tax-related future While expected future flows lower Wade? likely more cash out of will rate, cash leaving for be significantly new the opportunities. payments,

first transition strategy aircraft added significant executed XXXX, fleet XXXX, to bringing with had in larger, with XXXX. to XX during another on XXX terms the our changes we fleet across contract EXXXs Delta, pilot XXX. fleet. year-end aircraft as transition total year-end those XX unprofitable from for At and flying XXX well new to the you, discuss From extended under movement our We had year-end our our total with as XXXX to XXXX months. Thank year. aircraft our fleet exceeded We current during our United, EXXXs XX total aircraft moved EXXX XX our XX and with Alaska, executing fleet to we Rob. hiring contracts to plan. new We then our as renegotiate redeploying and year I'll fleet busy for expectations operating review fleet

to our in changes made also XX-seat We XXXX. contracts

and ExpressJet aircraft five this for stability January United contract We operating provides agreement ERJXXX XXXX. long-term approximately The significantly during model. the agreement During XXXX. enhances effective ExpressJet-United's anticipate risk its XXX its X, new extended year, under to contract partnership, reduces years the

United. of As with XXXX, contract under ERJXXXs we year-end XXX had

flying, during including agreement mutual with of XX XX the CRJXXXs, expire Delta dual-class will in by its to initiate to Additionally, XXXX. CRJXXXs ExpressJet XXXX, CRJXXXs, a The owned scheduled to be remaining announced wind-down returned XX Delta Delta. previously

end anticipate CRJXXXs returning been by XXXX, year-end QX. of We returned. the CRJXXXs the of As remaining XX XX had

end We three the and the this leased beginning from CRJXXXs be by the under quarter. also own from contract, anticipate during second to CRJXXXs removing of American We to number the are American remaining CRJXXXs, Delta Delta will -- returned Of Delta XX of service we CRJXXXs, eight XX ExpressJet for remaining month. redeploy the which XX total our will the XX. bringing total the of flying

are the XX from We they remaining alternative pursuing opportunities removed Delta service. as CRJXXXs for are

press included will release not be assumes XX renewed. in today's Our aircraft forecast these

XXXX. ExpressJet However, in are confident ability CPA contract these cost cost third-party expect the associated owned to lose these the and After in a under we amount aircraft Delta place changes, our wind-down, leases. financed. of the with all small and These or fleet to our are agreements are money aircraft still either attractively SkyWest we and

some our anticipate. the I ahead will color provide Looking XXXX, on and anticipated fleet we forecast changes to review

agreements and property. scheduled a with those aircraft year Alaska announced for throughout for of partner EXXXs to meet of delivery still are Delta are remaining progress, XX specific our Our currently needs. on timing total flexible previously in the new three with EXXXs XX The with

We during expiring several XXXX. side also CRJXXX SkyWest Airlines' on the have contracts

demand of each for very remains to them meet we strong, and partner XX-seat Our with working their are flying XX-seat needs.

producing tangible strategy fleet is and Our profitability. overall model to results our

As place and transitions as new agreements. XXXX fleet our we to deliver throughout expect we have continue aircraft we service on continue into discussed commercial to today,

ready Okay, the operator, Q&A. now we're for

Bank. comes [Operator Linenberg question Instructions]. Mike first And from our from Deutsche

think I that you taking, it hear equity. Rob, I have Is that $XXX airplanes I you're here. on require would I that a of XX said -- did million right? the couple just,

That's correct, yes.

Okay.

the and the When at I $XXX they and different equity looked little XX less. looked million copy. does do $X airplane. but So It because because a million, math, variants, it's And are it like look than $XX EXXXs when it's seems bit more it it million quarter like What's I the was last this a I know look in $X an rounding? there? coming seems it's like took like million, under it maybe you the it's in three difference

consistent. and past. Yes. generally We've and the talked, somewhere in $X between that's million airplane in put $X per We Mike, million

there's prorate decent you've figured with at out if money today, flying past, essentially and what of revenue. percent behalf markets, Okay. about small you been that them. how some look Then sense. it's your And When makes to that does definitely us is lot these make more still -- that market of with then that? flying like it of a just it said markets, are you on -- you your XX% is the air small service of doing who that -- I of the who since the the United flying under with it one number demand talked for your there think update the look partners, maybe XX% and about XX-seaters, of you're then XX-seat notably always in few I And CRJXXXs. XX%, out what was EAS-type flying, Can Wade you falls have guys on about

Wade. is this Mike,

You're right.

color give of little I'll flying. a you our on So prorate bit

have added one transition some what our prorate flying, our some prorate from some of we we have opportunities but to did, flying major So to markets prorate partners we contract. to with our new of

some as part we new prorate had opportunities So that, some to flying. of create

bidding. some So we did

successful that on. I that bid think markets we XX were XX on there we was to

been is in the our so about And consistent it with the of prorate it's production. much XX% what very flying itself and has past

consistent historically. So it's still we've where very with been

we're it's forward it's not And is and we're our don't to add comfortable little that. I to important -- think it's I'll And us to as mark. well and strategy in think Chip. XX% I think that also term. for that change expand think going that But well. to to I it. good try something a to I going This don't bit works realize the try anything partners do for we're near our to expand about going

the numbers. one, quick just one Rob, Okay, just great. last on And

You gave us the debt.

of past, I leases in the you Do balance us rate. you release the usually discount number? gave present sheet the of some the aircraft in debt, sort have I've press think at value the seen that off

Yes, million XX-K was And likely We'll about just that number year. the for just it I But in under $XXX a million $XXX and number that little XX-K. this do. is XXXX approximate. in be will publish the again, ending the

comes Savi Our next Raymond question from Syth James. from

you your On the sterilization last CRJXXXs, XXXX, demand fleets -- there for a in going have But given aircraft know I it or year so. noticed about the talking in the down maybe I by XX fleet the levels. for

in expect either permanently you Just elsewhere? going or use if or into that's wondering put prorate if those to away

Wade. is this Savi,

bit So CRJXXXs of it Delta. XX our press are little with is. in release, script, my the forecast the what In excluded in I coming and fleet have a this out service talked about we that

are in We aircraft third-party place good and are under those out either do in confident very to our there. very some ability aircraft CPAs we or attractively have opportunities leases. financed, Those

we've our We -- now. but right have them from excluded forecast just

sorry... Yes,

are half remember. also in we the the second Savi, year, of

it. And the about Got talking was Okay. CRJXXXs. more actually I

The CRJXXXs?

Yes. out. coming That are

Yes.

that our those with depending partners XX fleet always some us our our we will major coming give right of on And major We the on in all we partners, probably on forecast, on So do have of fleet fleet CRJXXXs we're And now XX-seaters. needs and contract flexibility. our have can expiring. we working those. extend out. And -- side, purpose that's of we some to CRJXXXs, on the

of be they junked? ask another to it Are that in way. Maybe I those can any need if so old

a becomes and within our can and There start The things. parting where existing of still are for airframes fleet engines time the parts other using are that there at. But looking on out That's we question. great start them. it them a great some we

We've on getting with them, few a that are those. the that. done and point to we to look a we'll continue handful of of So

I what's not just And on and the going because -- contract and or positive Is XXXs... might Great. to that. any in think to you're Okay. I slightly breakeven maybe driving that ask, it's XXXs if ExpressJet because loss, a United CRJXXXs and thought profit, year don't the of was and I the curious transition have the

you I'm repeat sorry, can Savi, question. the

your...? of of What sort at was up that? part the broke You first

unprofitable Sure. why ExpressJet is still I was just of XXXX. kind curious in

No, there's things. a I think of couple

about agreement. we our talked fleet large opportunities the enough for which that and a foremost, I winding slightly you and fleet to going ExpressJet. quarter with it's We're down strengthen XXXX. comfortable down we're very with at number of last great the our long-term and agreement stability and is First extend Delta continue think less did five United, when transitions we for But at years breakeven the as operation, there plan planning that we the footprint the is than in still look

might up I if on So just follow that.

this that might topic, different, be 'XX compare you're doing you that big well. the transitioning whole Is weren't will can years? there you're kind business years anything of look were doing And if and because in that past what just Just if of So SkyWest if XXXX and doing if ExpressJet, than you as XXXX in complex be curious. transition, you on more you could the XXXX that profitable? at

Yes.

fleet EXXXs. year, took XX Savi, As XXXX, far delivery of as in next we Wade, this is from the transition number aircraft the

this the lot and year, there are prior fleet down XX. years, XX movement XXXs the around. In big EXXXs Primarily we is more was bringing just side. movement bringing the year, CRJXXXs with Delta Next a and in taking

but of less probably say little in overall a amount is would movement it's XXXX, significant I bit So fleet there than still a XXXX.

O'Hara from next & comes Company. Sidoti Steve Our from question

with the XXXX maybe on to up does with are guidance? you don't guidance say expect the that you or excluding to you're if would you to signed And from Depending happened excluding even. when could did you a XXXX? or When Or on that the them mean what XXXs, another sign completely them Just be partner? for that partner, it them add XXXX. add

Yes.

this So Wade. is

our So models. also we in the our future forecast the definitely profitabilities them in from including excluded and

place those 'XX. of there in And the to the half some upside definitely so back when is model we

said, majority we for very and are This quarter the is we're of confident, fourth of we Rob as aircraft. most said, XXXX. As contracts under can that those happening 'XX, place aircraft the of those primarily in

I assuming -- not prior okay. you're of that now. don't Okay, kind Is in assuming But right? mean of get of -- the placed XXXX kind I the terms you're they guidance, right mean

That's correct.

normalized okay. then way And no I for the CapEx-wise you XXXX, that about assuming a new think just Okay, maintenance fleet point? maybe mean at CapEx deliveries with maybe XXXX what's

we in of the probably CapEx, to is excluding, million obviously, to quarter, expect million going that continue would purchase $XX aircraft. Yes, the run to Steve, new $XX somewhere per

per XXXX? $XX to $XX million that's million Okay. in CapEx quarter. maintenance And level

That would as roll into XXXX well.

mean, just I or then sounds six the on EXXX? any feel that? feeling of on more like little growth are Okay, the here. further maybe okay. did confident -- your mean, months in you more ago mainline carriers I growth anything the it lot what's like You capacity now And mean, maybe than I aggressive on

Yes, Steve, is Chip. this

got So in XXXSCs plan an with we've XXXs and technically 'XX. aggressive

in bulk I good that outside is be internally going of think to fact profitability. about relationships beyond, with we're We the a partners to lot think forward opportunities. build. be a talk within a our some good our our our growth There we to that a still transition of still plan. work have our with I a of all a 'XX legacy create upon shuffling strong with We of contracts. what some may have fleet the create need of -- But lot the is lot opportunities that to We and and partners to scope around of dependent moving industry certainly happened story lot scope. going

growth. things relief XXX have we're to outside beyond to into also 'XX, contract going of scope But 'XX, good more forward be and getting 'XX type our to So opportunities get of we with dual-class strategic some type moving just XXXs. still of some for partners looking other

question and next from Cowen Helane Company. comes from Our Becker

clarification So couple just of a points.

mentioned in you getting the new the contracts. -- the On mechanics

in amendable And and that for is been So voted does now when it again? place? become

excited for, of will baseline be open been with But we in now. get sitting down it's it's long to back was year. We're again, as get mechanics some one for about But can forward. has and in of amendable, one So to helpful progress the together work But as again voted it ExpressJet this year. place. moving what we in

And questions Okay. they're of two other kind related. then and

I guess that with ExpressJet. So know take was considering one with the United I tell it basically signed point that And reported you that at can whatever was acquiring off agreement us, table? does you the them

first, both very And, those of with a and existing that. with Helane, partners. we move of we reported So execute our forward, some there never did years, And good of But great one contract previously, for we been our the opportunity provides a relationship market with have our people that as has five as reports. that's focus United, associated we agreements we obviously, on matter. with is for comment good relationship lot that main sign our speculation to

that's strategic of relative with ahead our some So got We've road of us this. great focus is to what this. kind

of then different angle. And from which a out Okay. that other my question, slightly part two -- comes

answer of another this consolidation given consider to with I further acquisition your and provider? think, another would might experience I doing ExpressJet. you know the But industry

over as even I for reiterate I know ever don't you've Helane, our people years, no speculative we us today -- would our of opportunities I that what about right plenty and probably I'd it. Well, we've now. of today. But would last our moment into give X our given right a very partnership. philosophy the would plate for say on and or X have some done we moved the

for our if that for to We add value to and our optimistic us on to with line and our of plate on plenty are partners. near busy continuing investors, would certainly at term everybody. that long for internally. our it's But the of the keep things work something look comes we we have very along if continue And partners people our can and our good the some we way, strategically

on the of shares Okay. cash that promise, capital of And question, on fully back then my said raising tax share worth that Would $XX the the left is also, you know with I are on the you dividend? last the buy -- repurchase you would program. some share million savings, on consider the returns.

Helane, balance are today -- we said strong that I look, never sheet, has more got. than historically for what maintain out want strong opportunities a the investing liquidity we've for we've been there XX think to whatever that EXXXs true beyond

but value for So is priority create around first look got our -- at absolutely we strong here, to that to dividend. ways that many, balance can shareholders maintain sheet, to and continuing we've many look repurchase we're share continuing our including at

from from And Evercore our Duane next ISI. question comes Pfennigwerth

new legacy there any contracts contracts legacy the do basically So any? shells you pilot you took excluding Are grabs? scope, Alaska, from get to under need if max to current here? how industry incremental many for growth Or are up

Yes.

partners is partners, you Alaska. through So the excluding the each of their this look for the go most at right out dual-class a scope, that. We now maxed have can Duane. level, At Wade, high of

maxed their XX- of XX-seat and XX-seat the max their out still As partners of They The category. have major majority categories. both scope them do. have in you most in said, the room

XX-seat that know I their at the they think on that do that major this so. I partners American category in scope think the you in maxed a seats. with XX scope work has out scope some do we are -- But on. I very them have provisions they category, point, And unique with believe,

utilization you're ExpressJet 'XX looks increasing around And actually you in like the on story? stabilizing United XXX XXX So this the or changes do trend, shells. on see then and whole fleet tell Agreement, it you've shells? moderating block versus could hours But been the 'XX in

you move this provides a at tough with that's again, we're XXX to what is the great value where United maintain upward ExpressJet, the and we footprint if than still And given under Chip. in term. streamline we're transition that, our is. to had forward and has think the least But long I in smaller The position move possible. we optimistic to intended doing. can going contract, ExpressJet and The 'XX is a Duane, be the about with past. the be it contract for United. certainly contract, and a what little can aircraft at all circumstances, is us in fleet clearly operation tell But hope the profitability

think that know if And points margins just this. you predominantly on then last on would where prorate? willing comment RJs. you How make I wondering to as what higher on watch do money for can speak don't fuel XX flying the fuel that price see But we just business? you you breakeven on tick XX-seat be much just seaters And break one, flying? I to it's fuel here, you'd at and

Duane, is to specific -- it of prorate profitable. get flying XXXX. be again. we the any -- our business. of fuel it don't forecast based for right And this be of in look into margins Wade, seems at lines Yes, and our it'll on it We The it now, is fine and

to We're ready wrap it operator. up. Okay,

remarks. back point, today's for this we over management to At I'll it right. question-and-answer end session. will All turn any closing

everybody, for is SkyWest. your Again, interest Thanks, this Chip. in

very we'll quarter. and people we're your in best provide And our next partners another today. do the our We interest continue value thankful and you to to for and to call our our you. update give Thank shareholders,

you that for today's conclude call. and does conference We attending. do gentlemen, Ladies thank

your disconnect now may lines. You