Q1 2024 ATN International Inc Earnings Call

Participants

Brad Martin; President, Chief Executive Officer, Director; ATN International Inc

Carlos Doglioli; Chief Financial Officer; ATN International Inc

Rick Prentiss; Analyst; Raymond James & Associates Inc

Greg Burns; Analyst; Sidoti & Company LLC

Hamed Khorsand; Analyst; BWS Financial Inc

Robert Beauregard; Analyst; Global Alpha Capital Management

Presentation

Operator

Good day, and thank you for standing by. Welcome to the ATN International Q1 2024 Earnings Conference Call and Webcast.(Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Michelle Truckee, Corporate Treasurer and Head of Investors. Please go ahead.

Thank you, operator, and good morning, everyone. I'm joined today by Brad Martin, ATN's Chief Executive Officer, and Carlos Douglas only ATN's Chief Financial Officer. This morning, we'll be reviewing our first quarter 2024results and providing additional insights on the 2024 outlook.
As a reminder, we announced our 2024 our first quarter results yesterday afternoon. After the market closed, investors can find the earnings release and conference call slide presentation on our Investor Relations website. Our earnings release and the presentation contain certain forward-looking statements concerning our current expectations, objectives and underlying assumptions regarding our future operations.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described. Also in an effort to provide useful information for investors, our comments today include non-GAAP financial measures. For details on these measures and reconciliations to comparable GAAP measures and for further information regarding the factors that may affect our future operating results, please refer to our earnings release on our website at atn.com or the 8-K filing provided to the SEC. And now I'll turn the call over to Brad.

Brad Martin

Thank you, Michelle. Good morning, everyone, and thank you for joining us. CAT. and team remains focused on advancing our first fiber and glass and steel strategies to enhance our fiber rich visual infrastructure and next-generation fixed wireless utility positioning ATN to capture the growing demand for high quality broadband in the remote and rural markets that we serve.
Although we saw growth in key operational metrics year over year, resulting from the strategy our first quarter financial results were softer.
I'll begin by briefly covering the dynamics from our first quarter and our revised outlook for the year then I'll outline our progress executing our strategy before turning the call over to Carlos to review our first quarter financials and revised 2024 guidance in more detail.
Starting with our first quarter results. Our first quarter revenue was up 1% and adjusted EBITDA was down 3% versus the prior year quarter. Our US Telecom segment performance was impacted by delays in major carrier services projects and weaker than expected business revenue. These dynamics impacted our domestic segment's first quarter results and full year outlook US shortfall was partially offset by solid performance in our international segment for revenue and adjusted EBITDA grew 3%, respectively, as we grew high-speed broadband services and business customer revenue.
Today, we are lowering our guidance to reflect a softer than expected first quarter results, as well as our current expectations for the balance of the year, which has been impacted primarily by two factors. First, while now we have line of sight to the US carrier services projects. Moving ahead, the delayed delivery timing will result in some of the previously forecasted revenue moving out of 2024.
Secondly, we secured fewer new business contracts for major government program. In the first quarter, we expected a higher win rate, and we expect that these contracts will help offset the step down in the emergency connectivity fund program that expired at the end of the first quarter. As we have previously signaled in response to these dynamics, we are sharpening our focus on managing operating and capital costs, which Carlos will speak to further in his remarks.
Additionally, we are accelerating our efforts to bring in revenue opportunities in the second half of the year. We've built a strong sales pipeline and believe our expanded and upgraded network positions us well to convert these opportunities.
Additionally, we recently brought in several key leadership hires that add further telecom and operational expertise to the team. This includes several new operational leaders and new commercial leadership in our domestic markets. These talented additions further reinforce our ability to convert growth opportunities and efficiently operate our business.
Now turning to strategic and operational updates. We remain focused on our first fiber and glass and steel strategies to strengthen eighteen's market position, enabled ATN to grow high-speed data subscribers, increased recurring revenues, expand free cash flow and deliver value creation for our shareholders for years to come.
Future telecommunications is high-speed data connections and gigabit class solutions for the two fiber or fixed wireless. This is why for the past two years, we have been investing in the enhancement of our high-speed networks, reach and capabilities above historical CapEx levels. These investments have continued to yield growth across several key operational metrics.
Notably, as of the end of the first quarter, we've increased broadband homes passed by high-speed data by 28% and grew high-speed broadband customers by 12% when compared to year-ago period. We also continued to maintain high levels of customer retention replacing and decommissioning legacy copper networks with fiber networks remains a key strategy as well. Fibers, many advantages position ATN to deliver high margins over time. We exited the first quarter with 1,692 fiber route miles of 5% year-over-year increase. We also increased our fiber homes passed footprint by 19%.
Now taking a closer look at operational highlights by segment, starting with our international segment, which represents about half of eighteen's revenue across the segment. We continue to see a rapid uptake of high-speed broadband with high-speed data subscriber growth of 11% year-over-year another bright spot. An area that we have targeted for growth is revenue for international business, which was up approximately 13% year-over-year.
Turning to our US segment, which accounts for the other half of ATN's revenue in the US we're focused on building out our digital infrastructure to support the evolving needs of our carrier customers while also expanding our fiber network to bring fiber-fed high-speed data services to underserved rural markets.
Although we experienced some delays in major carrier services projects in the first quarter, we continued to achieve several important operational milestones, our US markets and the close of the first quarter, we increased broadband homes passed by high-speed data by 75% year-over-year to over 131,000 homes. This expanded footprint represents an opportunity for ATN as we focus on leveraging our assets to increase the market penetration and grow our business.
Moving on to an update on grant funding in the US grant funding remains key to our strategy. While no new grants were awarded in the first quarter, we continue working off past grants awarded since the start of 2023 ATNs and our partners has secured a total of $91 million of grants and subsidy funding in the US on top of the $155 million for the 2022 year.
These funds will support our continued expansion in customer revenue growth, even as the pace of our self-funded capital expenditures decreased as planned. Regarding BD although some states have delayed their planning, we remain ready and well positioned to compete for funding as opportunities come to fruition in our operating states. And finally, we want to comment on the affordable connectivity program. Our exposure to ACP remains minimal at approximately 15,000 subscribers, and we continue to action mitigation plans like others in the industry we experienced earlier than anticipated shifts in customer purchasing decisions ahead of the program's expiration. The impact is expected to be minimal to eighteen's revenue and net neutral on our profitability dynamics that are reflected in our revised guidance.
Before turning the call over to Carlos, I want to reiterate our priorities for 2024, which include accelerating efforts to close incremental revenue opportunities in the pipeline to leverage our expanded and upgraded network, growing our high-speed networks subscriber base and further expanding our fiber footprint through targeted internally funded investments, albeit at a reduced level, leveraging the grants we have already been awarded while pursuing further economically viable grant funding to augment internal investments in the future.
Advancing margin improvement initiatives, along with executing a broad range of cost reduction actions to align our cost structure and improve operating leverage, and finally, prudently managing our balance sheet with the goal of lowering our leverage over time and with that, I'll hand the call over to you, Carlos.

Carlos Doglioli

Thank you, Brad. Good morning, everyone and Brad, for you. Our first quarter results came in below our expectations. The first quarter's performance and our current assessment of market dynamics, we are focused on strengthening our business revenue pipeline and accelerating several cost reduction actions. To date, we are revising our full year guidance which I will expand upon in a moment.
Turning now to a detailed review of our results, starting with the income statement. In Q1, total company revenue of $186.8 million was up 1% compared with the same period in 2023. Excluding construction revenues, service revenues were flat. There were several puts and takes in the quarter across the Company, we experienced growth in fixed revenues, which were which were partially offset by declines in mobility and carrier services revenues.
The primary offset the growth related to the delayed delivery of silver, several Carriage Services projects and sub basis revenues in our US Telecom segment operating income in the first quarter was $4.6 million versus $0.6 million in Q1 of 2023. The increase was due to lower restructuring expenses and reduced depreciation and amortization expenses compared with the prior year.
Net loss in Q1 was $6.3 million or a loss of $0.50 per share, which included $1.2 million of restructuring expenses, a $2.5 million year over year increase in interest expense and $1.6 million in tax expenses versus a benefit in last year's first quarter. This compares with a prior year's net loss of $5.9 million or a loss of $0.44 per share, which included $2.9 million of restructuring expenses.
Adjusted EBITDA for the first quarter was $43.5 million, down 3% from the year-ago period, primarily due to a $1.3 million increase in cost of service. Looking now at the segment performance, beginning with our international segment, revenues reached $93.1 million, up 3% year over year. Our international segment saw a strong year over year high-speed data subscriber growth resulting from our network upgrade and expansion efforts that drove increased fixed broadband revenues at 4%.
This more than offset some softness in the voice portion of mobility revenues. Notably, we're seeing strong demand for beta mobile subscribers, subscriptions, solid revenue growth and the benefits of the restructuring efforts taken in 2023 led to adjusted EBITDA of $29.3 million, an increase of 3% in the quarter, we expect to see further benefit from the additional restructuring efforts taken in Q1 and other cost reduction efforts throughout 2024.
In our Domestic segment, as I mentioned earlier, Q1 revenues were $93.7 million, down 2% year over year due to delays in carrier services projects as low business growth. Adjusted EBITDA for the domestic segment was $20.7 million, down 9% compared with the prior year, which was due to the lack of revenue growth acquired Cost of services in the quarter.
Moving onto the balance sheet and cash flow highlights. We ended the quarter with a net debt to adjusted EBITDA ratio of 2.5 times on total debt outstanding of $541 million. Net cash provided by operating activities in Q1 was $23.2 million, up from $16 million in the prior year period, driven primarily by improvements in working capital. Our plan remains to strengthen our balance sheet and continue to expand backlog.
Turning now to capital expenditures. Q1 CapEx was $36 million, net of $13.5 million of reimbursable capital expenditures compared to $50.6 million net of $2.1 million in reimbursable capital expenditures in the prior year quarter. For 2024, we are reducing our CapEx spending guidance compared with our original expectations. I will elaborate further during my outlook discussion.
In Q1, we returned capital to our shareholders through $3.7 million in dividends and $100,000 in repurchase shares.
Having completed the review of our results, I would like to expand further on our accelerated plan to capture additional cost savings in the year and better align our cost structure with our go-forward businesses.
In my short time here at ATN, I have been closely assessing our businesses with an eye on how we can improve our profit margins to better align with industry benchmarks and increase returns to shareholders. Bringing a fresh perspective to this analysis has allowed us to identify several opportunities for capturing additional cost savings from leveraging leveraging further efficiencies with common suppliers through streamlining actions.
In light of current business dynamics, we are approaching this task with heightened urgency while maintained it will require careful required, careful planning and being implemented over time. We're preparing to take action as soon as operationally possible. It is our goal to start to derive benefits from some initiatives in the second half of 2024 and ensure our long-term financial success.
With that, I will move on to our review of 2024 guidance. Today, we're updating our full year 2024 outgrowth to reflect the impact of Q1, our current expectations for the balance of the year, the Company now expects revenues in the range of $730 million to $750 million for the full year, down from our previous range of $750 million to $770 million. Adjusted EBITDA in the range of $190 million to $200 million for the full year, down from the previous range of $200 million to $208 million. Capital expenditures in the range of $100 million to $110 million, net of reimbursed amounts down from the prior range of $110 million to $120 million. As we balance decrease in operating cash.
And lastly, we now expect to exit the year with a net debt ratio of 2.25 times to 2.5 times, which compares to our prior target of 2.25 times and 2.4 times. In the short term, we could see our net debt ratio move up that range due to working capital needs during the year, driven by the timing of reimbursements. Our objective objective remains to bring down leverage closer to 2 times over the medium term. Based on our current plan, we expect the cadence of adjusted EBITDA in 2024 tracked closely with 2023 with over 50% of the adjusted EBITDA in the second half of the year.
Finally, during my first few months with the Company, I have been able to meet with our shareholders and visit with members of the ATM theme across our markets, given the great appreciation for what we make possible and the importance of our mission, we certainly have more work to do, but I'm confident that we're taking the actions necessary to position APN to optimize our growth opportunities and deliver sustained value for shareholders.
With that, I'll turn the call back over to Brad..

Brad Martin

To say, Carlos, we are committed to managing the business to deliver exceptional value to our shareholders, employees, customers, partners and local communities. There's work to be done in the quarters ahead. But the leadership team and the Board believe that we have the right strategy team and offerings in place to deliver on our plans for 2024. Our enhanced digital footprint offers many exciting possibilities for how we can more expansively, serve our customers and deliver durable and profitable growth, cash flow expansion and value creation well into the future.
With that, operator, we'd like to open up for questions here.

Question and Answer Session

Operator

(Operator Instructions) Our first question today comes from Rick Prentiss with Raymond James. Your line is open.

Rick Prentiss

Yes, good morning. Ron pointed out, Rick, first question, I want to probe on, obviously weak trends in a couple of spots and delays on projects. When you guys gave or reiterated guidance back in late February. What really changed make one to come in so late was the win rate or can you help us just elaborate a little further on on what changed really in the two months from from late February to where we're at now? And then what can you tell us about April trends?

Brad Martin

So Rick morning. So the primary dynamic and the change in the last since the last guidance you have the prime area, we spoke to around business revenues. It really in one market that were a part of it, a big program to secure some significant content. And that dynamic, though, that's that sequence of wins is an annual schedule that gets awarded in late Q1 and early Q2. And really just we were not able to convert on the win rate that we wanted. We did again, add some wins incrementally, but it wasn't enough to make up for the gap scenario.

Rick Prentiss

Yes.Okay. And then as far as visibility for the rest of the year, Carlos, you mentioned kind of a 60/40 split on EBITDA, but how confident are you on what gives you that confidence kind of to take the guidance where it is now and the visibility given the US economy and other items?

Brad Martin

Eric, thanks for the question. In terms of the guidance, we believe is that it's an appropriate revision based on the discussions that we've been having with our team and their updated view on the outlook coming out of Q1.

Rick Prentiss

Thank. On another vein on, obviously, the stock's down significantly today, where what's the ability to do stock buybacks, but then balancing that with liquidity as well as you look at kind of how you want to manage the balance sheet and the shareholder returns?

Brad Martin

I think at this point in our rig count, we continue to have the programs that we currently have we're executing on them were not were not necessary at this point. Wondering anything forward different than what we had already established in terms in terms of how we are managing the business. As I said, as we stated in the guidance, I was barely on on on on our discussion of the business, it's going to be a combination of continued execution on cost management. And we're going to, as I say in my remarks, we're going to we're going to go after that with heightened urgency over the coming quarters.

Rick Prentiss

In fact, pumps and then are there any assets that might make sense to sell that maybe are not getting value for in the public markets or and driving results? Any thoughts on potential asset sales.

Carlos Doglioli

So Rick? Yes, we yes, we don't we won't speak to that, but we obviously look always at it. The opportunities are out there to maximize shareholder value.

Rick Prentiss

Okay, thanks. Good luck guys.

Operator

(Operator Instructions) Our next question comes from Greg Burns with Sidoti. Mr. Burns, your line is open.

Greg Burns

Good morning, can you just further elaborate on the dynamics some within the carrier services contracts that got delayed or are these because of milestones were reached soon enough and your revenue is being pushed to the right? I just wanted to get a sense of your visibility on on that part of the business and maybe timing of when that those revenues get realized this year.

Brad Martin

Great. Thanks. So the delays on the contractual really delivery and construction delays. So some of these were due or impacted by some weather events that happened in Q1 and some of these areas and some are due to some customer deeply some changes in requirements from us. None of this is revenue loss. These are just dynamics that move these out to a degree and the selected guidance represents a schedule of that of that revenue move out from '24 into '25.

Greg Burns

Okay. And then in terms of the either the business service revenue trends that you were just discussing there. What was the reason though, why do you feel that you were not able to convert this year? Was it just pricing is more competitive, more more competition in those markets? What was the main driver of the lower win rates this year.

Brad Martin

And look, I think it was a range of multiple factors. We were we had set up a program to go after a pretty large pipeline, and we had we had expected a better conversion rate. So what I believe is multitude of factors, Greg and the dynamic moving forward is we have an established pipeline. We have as much of the '24 guidance includes projects or actually in backlog, there is an opportunity to accelerate. We're working in detail with our markets to accelerate where we can bring circuit delivery in so we can maximize revenue delivery for '24.

Greg Burns

And just so I'm clear, these are government sort of government contracts that are awarded on an annual basis. These aren't like federal grant funding from our programs is different.

Brad Martin

Now they are yes, these are these are enterprise contracts, some of which are funded through different government programs, but these are really enterprise programs within our markets.

Greg Burns

Okay. And then on the wireless side internationally, a little bit of a decline in the in the prepaid subs is there any thing going on there in terms of the competitive dynamics within those markets? Why why did you see that decline this quarter?

Brad Martin

Yes. And so like regarding the international wireless subs. There are there is additional competition from some smaller 5G entrance in the markets. The movement in sequential quarter really is reflected in Guyana, and we have aggressive holiday campaign and in that market and in the prepaid market, there was a churn was mostly attributed to folks that didn't top-up and does that move in the December timeframe.

Greg Burns

Okay. Thank you.

Operator

(Operator Instructions) Our next question comes from Hamed Khorsand from BWS Financial. Your line is open.

Hamed Khorsand

So first of all, could you just talk about what your plans are as far as what you're looking to do differently to capture some of the business that's lost question on the business side.

Brad Martin

Yes. So so I'm ignoring the so there are a number of plans and activities in process. And we have a robust pipeline that we've built. There is a more standard profile of win rate and customer acquisition rate built into our forecast for 2024. And we are aggressively pursuing, as I mentioned in the previous comment, there is quite a bit of backlog that we just really need to convert over and so there is a which impacts impacts multiple segments, but we are aggressively going after addressable pipeline. We are going after a backlog of construction type opportunities to be able to pull in revenues in '24. So we feel we feel confident in the guidance we've given and we have a well risk-adjusted pipeline.

Hamed Khorsand

And my question is, as well as your you're spending a lot of money adding homes passed and so forth have been. Why is that not showing up as far as customers are concerned? I mean your broadband customers went down sequentially, it seems like you're just wasting money at this.

Brad Martin

So So on that point, Rick. So we have had very good success in the investments we've made in international markets. And we've shown a very good broadband year over year sequential growth, a dynamic that is in the numbers for this quarter, there was a significant amount of build. It took place in late '23 and even into early '2024. And those are that's a pipeline, an opportunity for a companies to go after to penetrate. So our US markets, I mentioned a pretty significant move more recently. So it really is an opportunity and we have to go execute on the commercial side to fill up that network.

Hamed Khorsand

Okay, great. Thank you.

Operator

(Operator Instructions) Our next question comes from Robert Beauregard from Global Alpha Capital Management.

Robert Beauregard

Okay, good morning, Blair, Carlos.

Carlos Doglioli

Hi, Brad, wondering Carlos?

Robert Beauregard

Yes. So that this is clearly we had discussed when you when we last met this stockprice and IQstream reaction to what really is a slight downward revision. But nothing broken about the business you're now selling at 0.7 times tangible book. I mean, the market right now is not very kind to small-cap illiquid stocks. Are you seriously given thoughts to just privatizing the company and embarking on a process to try to to create shareholder value. I mean, this is nice to say, but the stock is down from $80 to $20 and clearly there's something that the market is.
So it doesn't have the patience for your for your for your building and you know, the results will come later, your fiber to glass and steel strategy. So I mean, I think at this point you guys have to conduct in all fairness to long-term shareholders to conduct the process too, to sell that company or are privatized and every time we are talking to some kind of commitment that you will look to and in that lease and discuss it with the Board. That's why I'm on this conference call with with other analysts with over 7% of the stock.

Carlos Doglioli

Robert, it's Carlos. So we appreciate your comments, obviously, and we'll take that too. The Board I'm discussing with them.

Brad Martin

Thank you, Carlos, because this is I guess, like I said, the market is just not kind to small-cap. It's nothing in TN. It's the whole small-cap complex. I mean there's tons of money out there with private private equity and strategic buyers and these kind of multiples, the discount to book tangible assets. I mean, you have to consider these options.

Robert Beauregard

Yes. Understood.

Brad Martin

Okay. Thank you.

Operator

Thank you for your call. Our final question today is from Rick Prentiss with Raymond James. Mr. Prentiss, your line is open.

Rick Prentiss

They share with us the private or private public question as well. So glad that got asked on. I'll take my question then for the follow-up. Brad, can you help us understand operationally then on the backlog, what has caused contractually go into backlog? What will allow them to get out of backlog into producing? Is it weather? Is it construction? Is it supply chain? What exactly has put items into backlog and what specifically will get them out of backlog?
Yes. So so to recognize, there is a component of weather in the winter months in the markets we operate in rural Alaska in the Rocky Mountains as well in the US. market. So so there is a dynamic of coming into the true build season that will enable us more predictability and on delivery. And we think there's an opportunity to accelerate on.
Yes, but the dynamics of working with larger carriers and some some movement, some requirements, it can always can always put delays into the programs unexpectedly, but we are working diligently. We have a good line of sight on all this backlog, and we do think there's opportunity to pull this backlog. Again, that's reflected in our new guidance, and we'll continue to work very hard to do.
Is or is there anything supply chain or labor or and you're always looking to see, obviously, we've come out of COVID, but there's still some lingering effects out there. But is there anything specific beside the weather and other items that you'd call out or what's what's the long pole in the tent that has to be addressed, in fact, the biggest side.

Brad Martin

But it's a great question. So I know we are not seeing significant impacts on supply delays. It's something that has improved in certain areas. If it has not improved, we've hedged to ensure that we can deliver essentially not supply or labor. So again, there are always dynamics with these large programs. And we really need to make sure that when when when we can influence decisions to move things more quickly, we are influencing that as always, we've got a long experience of doing this. We think there is an opportunity to really continue to move this forward. Unfortunately, just the impact of '24 revenue, there will be revenue that shifts into '25, right?

Rick Prentiss

So it does feel like just a calendar year shift and then we should see stuff on '25, how that longer-term visibility on the business now previous guidance and kind of given some some revenue thoughts on where the business could head. I know you haven't done that today, but how comfortable are you on looking at kind of longer term trends of the business, kind of the private prior question as well. Investors are trying to get a sense of visibility and growth on a SmallCap name.

Brad Martin

So directly? Yes, we haven't provided guidance beyond '24, and we would provide that here later in the year as well as some of our strategy beyond '24. But really, our strategy is to continue to deliver on the on all of the investments we've made in the last couple of years with our with our own self-funded programs, continue to expand upon those programs with government funded our activity.
We mentioned in my prepared remarks, the $91 million '23 to $105 million '22 that was awarded these are programs being built now in '24, '25 into '26. That's a great foundation to move forward because we really do like our strategy, Rick, we've got in our international markets, your market leadership additions in broadband, we've got gigabit solutions to 70% to 99% of all those markets.
5G networks rolled out really just in this conversion of this investment phase to moving into our free cash flow generation optimization base internationally, our US markets, we've got, again, a very strong foundation carrier wholesale. We have a very large total total addressable market for telecommunications in the areas that we serve. And that really is the opportunity ahead of us building that infrastructure.
Taking more of that total addressable share in our two US markets is a great opportunity, and I think we've got a great foundation strategy to it. We've got to execute and continue to focus on delivery to be able to deliver, shall shareholder value, deliver value to our customers and overall value to all of our stakeholders.

Carlos Doglioli

Am I right in that? I just wanted to add. Yes, I think I think when you look at the business and we're transitioning, we've said we're going to focus on on cash generation. I think when you look at the level of CapEx compared to prior years. Certainly it's aligned with that. So when you look at our financial framework transition, there's a couple of elements that are already in place.
When you think about the more of the mid to long term, we talk about more normalized CapEx levels between 10% and 15% of revenues we have. We've also signaled that from a longer-term perspective, even though we're experiencing some bumps here and there with our leverage, we're committed to being at it, bring it closer to two times. And over time, I think when you look at those elements. Those are all pointing to gas generation down the road. I think the other element that we have to complete a piece of the margins and on and that's going to be the focus for the coming for the coming months?
Yes, as I mentioned in my remarks, have been closely focused on margin improvement opportunities. We're currently at that now [20] in adjusted EBITDA.
So there's certainly room for improvement there. And we all understand that if there's short-term opportunities, there are things that might take a little more time. But there is there's room there. And that's where we're going to find additional financial strength to improve those return to shareholders.
It's critical, right.

Rick Prentiss

And to echo Robert's comments earlier, but it's not just small cap illiquid names like 89, Comcast down 7%. And actually the large cap companies are having a tough time in the public markets right now when there is competition or when there's some delays and stuff.
So. Okay. I wish you well, I'm glad you're focusing on the margins as well as the free cash flow. Thanks, guys.

Operator

Thank you very much.
This concludes our question and answer session. I would now like to turn it back to Brad Martin for closing remarks.

Brad Martin

Thank you all for joining today, and we look forward to speaking with you in the months ahead. Thank you again for your time.

Operator

Yes, thank you for your participation in today's conference. This does conclude the program. You may now disconnect and have a good day.