United Parks & Resorts Inc. Q3 FY2025 Earnings Call

Good day, and welcome to the United Parks & Resorts Third Quarter Earnings Conference Call. Please note, this event is being recorded. I would now like to turn the conference over to Matthew Stroud of Investor Relations. Please go ahead.

Thank you, and good morning, everyone. Welcome to United Parks & Resorts Third Quarter Earnings Conference Call. Today's call is being webcast and recorded. A press release was issued this morning and is available on our Investor Relations website at www.unitedparksinvestors.com. Replay information for this call can be found in the press release and will be available on our website following the call. Joining me this morning are Marc Swanson, Chief Executive Officer; and Jim Forrester, Incoming Interim Chief Financial Officer and Treasurer. This morning, we will review our third quarter financial results, and then we will open the call for your questions. Before we begin, I would like to remind everyone that our comments today will contain forward-looking statements within the meaning of the federal securities laws. These statements are subject to a number of risks and uncertainties that could cause actual results to be materially different from those forward-looking statements, including those identified in the Risk Factors section of our annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. These risk factors may be updated from time to time and will be included in our filings with the SEC that are available on our website. We undertake no obligation to update any forward-looking statements. In addition, on the call, we may reference non-GAAP financial measures and other financial metrics such as adjusted EBITDA and free cash flow. More information regarding our forward-looking statements and reconciliations of non-GAAP measures to the most comparable GAAP measure is included in our earnings release available on our website and can also be found in our filings with the SEC. Now I would like to turn the call over to our Chief Executive Officer, Marc Swanson. Marc?

Thank you, Matthew. Good morning, everyone, and thank you for joining us. We're obviously not happy with the results we delivered in the quarter. Performance during the quarter was negatively impacted by an unfavorable calendar shift, poor weather during peak holiday periods, a decline in international visitation, and less than optimal execution. The consumer environment in the United States appears to be inconsistent as has been outlined by a number of other leisure and hospitality businesses. Nonetheless, we can and expect to do better. Attendance in the third quarter was negatively impacted by approximately 150,000 visits from unfavorable calendar impacts, particularly the timing of the 4th of July holiday, and was also impacted by poor weather over peak 4th of July and Labor Day weekends. We saw a decline in international visitation of approximately 90,000 guests during the quarter, which was a reversal of earlier trends we saw in the first half of the year. Adjusting for these calendar shifts and the international visitation declines, attendance would have been roughly flat for the quarter. On the positive side, we are pleased to report growth in in-park per capita spending, which has grown in 20 of the last 22 quarters. Our Halloween events just concluded last week, and we saw meaningful year-over-year growth from our separately ticketed Howl-O-Scream events, including record attendance in Orlando and San Diego for these events. Looking forward, we are encouraged by the forward booking revenue trends into 2026 for our Discovery Cove property and our group business, both of which are up over 20% compared to the same time last year. We are also happy to report that our attendance at SeaWorld Orlando is up year-to-date. We're also pleased that during the third quarter, stockholders granted authority to the Board of Directors to approve and implement additional share repurchases. The Board previously announced a $500 million share repurchase program contingent on receiving this approval, and we have already repurchased 635,020 shares for an aggregate total of $32.2 million through November 4, 2025, underscoring our strong balance sheet, significant free cash flow generation, and our strong belief that our shares are materially undervalued. Later this month, we will begin our award-winning Christmas events at our SeaWorld, Busch Gardens, and Sesame Place Langhorne Parks. This year, we believe our Christmas events will be our best ever with the popular rides, attractions, and exhibits our guests have come to expect, plus additional new and exciting events, specialty food and beverage offerings, and holiday shopping for everyone. I want to thank our ambassadors for their dedication and efforts during our busy summer season and as well during our Halloween events and upcoming Christmas events. As we move into 2026 and beyond, we firmly recognize there is significant opportunity to execute better and drive meaningfully more attendance to our parks, grow total per capita spending, and continue to reduce costs and find efficiencies. While this year has been disappointing to date, we have high confidence in our ability to deliver operational and financial improvements that will lead to meaningful increases in EBITDA, free cash flow, and shareholder value. We are focused, well-positioned, and confident in the investments we are making, the operational efficiencies we expect to achieve, and the value we plan to build for stakeholders. We have announced several of the upcoming new rides, attractions, and events and upgrades for 2026. This includes the following: SeaWorld Orlando is pushing the boundaries of family thrills once again with its new attraction, SEAQuest: Legends of the Deep. Guests will embark on a vibrant, submersible adventure through dazzling undersea ecosystems where they will encounter extraordinary life forms, breathtaking environments, and inspiring stories of the sea. This groundbreaking attraction plunges explorers into an environment of awe and mystery, guided by the SeaWorld Adventure team. SeaWorld San Diego is creating a reimagined and immersive version of the Shark Encounter, which will debut in the spring of 2026. SeaWorld San Antonio is making waves once again with an all-new thrill ride, Barracuda Strike, Texas' first inverted family coaster. The one-of-a-kind attraction invites guests of all ages to dive into the deep and experience the ocean's most agile predator like never before. With every twist, drop, and tight turn, Barracuda Strike will deliver a rush of excitement that's bold enough for thrill seekers yet built for the whole family. Suspended beneath the track, riders will glide above the park's iconic water ski lake in a high-speed pursuit that captures the speed, power, and precision of the Barracuda. Busch Gardens Tampa Bay is roaring into 2026 with an all-new Lion & Hyena Ridge, an extraordinary new addition to the park's award-winning animal care portfolio and the most ambitious new habitat in more than a decade. This reimagined area of the park expands the existing space to more than double its previous size, creating nearly 35,000 square feet of dynamic Savannah terrain where two of Africa's most iconic species will thrive, a pride of 5 young male lions and a pair of playful hyenas. Busch Gardens Williamsburg will be announcing their upcoming attraction later this week. Our balance sheet continues to be strong. On September 30, 2025, net total leverage ratio was 3.2x, and we had approximately $872 million of total available liquidity and approximately $221 million of cash on hand, including restricted cash. This strong balance sheet gives us flexibility to continue to invest in and grow our business and to opportunistically allocate capital with the goal to maximize long-term value for shareholders. I'm disappointed in our management of costs during the quarter. We have made changes to address our execution issues in this area and have implemented new processes and initiatives to address cost opportunities across the enterprise. Moving on to an update on select strategic initiatives. On the sponsorship front, we have made good progress on several partnerships that we expect to announce in the coming months. As a reminder, we have over 21 million annual visitors across our park portfolio and the average length of stay is over 6 hours. We continue to expect approximately $20 million of annual sponsorship revenue in the coming years. On our international opportunities, we are in active discussions with multiple potential partners. We signed one MOU during the quarter with an international partner and have since entered a development advisory agreement and have begun concept development work. We expect to sign at least one additional MOU in the coming months. In regards to the mobile app, we continue to make progress on functionality, adoption, usage, and financial impact. The app is being used by an increasing number of guests in our parks to improve their in-park performance. The app has now been downloaded more than 16.8 million times, up from 15.6 million at the end of Q2. Total revenue generated on the app continues to grow, and we are now seeing an approximate 37% increase in average transaction value for food and beverage purchases made through the app compared to point-of-sale orders. We're excited about the potential of the app and its ability to improve the in-park guest experience, drive increases in revenue, and decreases in costs. On real estate, we continue to discuss alternatives with potential partners and have recently received specific proposals that we are actively evaluating. As we have discussed, we own over 2,000 acres of valuable real estate in desirable locations, including approximately 400 acres of undeveloped land adjacent to our parks, including significant developable land in Orlando. We do not believe that the public markets have or are appropriately giving credit to these attractive and valuable 100% owned real estate assets. I'm excited about the significant investments we are making and the many initiatives we have underway across our business that we expect will improve the guest experience, allow us to generate more revenue, and make us a more efficient and more profitable enterprise. We are building an even stronger, more resilient business that we are confident over time will deliver improved operational and financial results and meaningful increases in value for all stakeholders. With that, Jim will discuss our financial results in more detail. Jim?

Thank you, Marc, and good morning. During the third quarter, we generated total revenue of $511.9 million, a decrease of $34.1 million or 6.2% when compared to the third quarter of 2024. The decrease in total revenue was primarily a result of decreases in attendance and admissions per capita, partially offset by an increase in in-park per capita spending. Attendance for the third quarter of 2025 decreased by approximately 240,000 guests or 3.4% when compared to the prior year quarter. The decrease in attendance was primarily due to an unfavorable calendar shift, including the timing of the 4th of July holiday and a decrease in international visitation compared to the prior year quarter. In the third quarter of 2025, total revenue per capita decreased 2.9%. Admission per capita decreased 6.3% and in-park per capita spending increased 1.1%. Total revenue per capita lowered due to decreases in admissions per capita, partially offset by increases in in-park per capita spending. Operating expenses increased $7.1 million or 3.4% when compared to the third quarter of 2024. Selling, general, and administrative expenses increased $5.3 million or 9.6% compared to the third quarter of 2024. We reported net income of $89.3 million for the third quarter compared to net income of $119.7 million in the third quarter of 2024. We generated adjusted EBITDA of $216.3 million in the quarter. Looking at our results for the 3 quarters of 2025 compared to 2024, total revenue was $1.29 billion, a decrease of $51.9 million or 3.9%. Total attendance was 16.4 million guests, a decrease of approximately 252,000 guests or 1.5%. Net income for the period was $153.3 million, and adjusted EBITDA was $490 million. Now turning to our balance sheet. As Marc mentioned, our September 30, 2025, net total leverage ratio is 3.2x, and we had approximately $872 million of total available liquidity. We had approximately $221 million of cash on hand, including restricted cash. The strong balance sheet gives us flexibility to continue to invest in and grow our business and to opportunistically allocate capital with the goal to maximize long-term value for shareholders. Our deferred revenue balance as of the end of September was $145.5 million. Through October 2025, our pass base, including all pass products, was down approximately 4% compared to October 2024. We have launched our 2026 pass program, which includes our best-ever pass benefits program. We're excited about our new 2026 pass program and expect to see improvement in growth in our pass base as we progress into next year. We started our Black Friday sale earlier this week. It's one of our bigger selling periods for the year, and we are encouraged with the preliminary results so far. Finally, as of September 30, 2025, year-to-date, we have invested $167.2 million in CapEx, of which approximately $142.2 million was on core CapEx and approximately $25 million was on expansion or ROI projects. For 2025, we expect to spend approximately $175 million to $200 million on core CapEx and approximately $50 million of CapEx on growth and ROI projects.

Now let me turn the call back over to Marc, who will share some final thoughts. Jim? Thank you, Jim. Before we open the call to your questions, I have some closing comments. In the third quarter of 2025, we came to the aid of 192 animals in need. Over our history, we have helped over 42,000 animals, including bottlenose dolphins, manatees, sea lions, seals, sea turtles, sharks, birds, and more. I'm really proud of the team's hard work and their continued dedication to these important rescue efforts. I'm excited about the opportunity set in front of us, both in the near term, where we see a clear path to drive meaningful progress, and over the medium term, where the growth potential is greater. We are focused, well-positioned, and confident in the investments we are making, the operational efficiencies we are realizing, and the value we are building for stakeholders. Now let's take your questions.

Our first question comes from Steve Wieczynski with Stifel.

So Marc, if we go back to your last call, which was early August, I think you noted then that attendance was up on a day-to-day basis through early August. So I'm just wondering maybe what happened from early August through the end of the quarter because that would kind of tell me that you witnessed somewhere low to mid-single-digit declines for the rest of the quarter. And this was also off of an easier comp since the third quarter of '24, I think you had a weather headwind of somewhere around 300,000 guests or somewhere in that range. So maybe just trying to figure out what kind of happened through August and September.

Yes, I can assist with that. In August, we anticipated a stronger recovery from the weather. We saw some early recovery at the start of the month, but did not receive as much as we had hoped during Labor Day and into September. Additionally, we faced an impact from international attendance, which was also present in July but was more noticeable in August and September, continuing into October. This seems to be more related to broader market conditions. While there may be areas where we can improve, the primary issue appears to be macroeconomic. Additionally, towards the end of the quarter, our reporting timeline affects the results as we finalize them at the end of each month, regardless of the day of the week. If you analyze the days in the quarter, there is a negative calendar shift at the end of the month that is specific to our reporting. Some of this will be offset by benefits in Q4, but it was a significant factor in the quarter.

Okay, I understand. For my second question, Marc, you mentioned that the consumer behavior is inconsistent. Could you elaborate on what that means? Also, could you discuss the impact, or lack thereof, from Epic during the summer and into the fall so far?

Sure. I'll address your second question first. Regarding Epic, as I mentioned earlier, year-to-date attendance at SeaWorld Orlando is up. I won't elaborate much further on that, but our perspective hasn't changed. We believe the Epic opportunity remains strong and welcome investment in the market, which we feel benefits everyone involved. This has been demonstrated over more than 50 years in Orlando, where we've continued to grow and add our own parks. While market conditions will vary from quarter to quarter, we plan to optimize our approach and benefit from increased visitor numbers. On the consumer front, I highlighted last quarter that I've been focusing on in-park spending, which has increased this quarter. Guests at our park are spending more. We are aware that many companies are discussing consumer health, and while it's difficult to determine the precise impact on our business, we recognize there may be some effects on certain guests within our portfolio. Our in-park spending was positive in the third quarter and has continued to grow in October. In terms of our pass base, we acknowledge it's been declining. Previous peak selling seasons coincided with the tariff discussions, and while it’s unclear how much this affected us, we believe it may not have been beneficial. We see opportunities to address this gap, and I can provide more details on that later.

Our next question comes from Arpine Kocharyan with UBS.

I have a couple of quick ones. First, what do you think drove the reversal in international visitation you were seeing in the first 6 months of the year? It seems like you're saying it is not Orlando. What do you think drove that? And then I have a quick follow-up.

I believe that regarding international attendance, we saw an increase in the second quarter, followed by a decline in the third quarter. Visit Orlando has projected some expectations for the market this year. I think the situation is largely influenced by broader economic factors. While there are always improvements we can make, it is generally understood that international visitation to the United States is experiencing a slowdown, which has been noted in various reports.

Okay. And you don't see that tied to some of the immigration stuff and harder to get visas and whatnot versus macro?

No. All those things you said, I'm sure, are factors. That's what I'm saying. I think there are more macro factors that aren't necessarily in our control. So whether it's visas or immigration costs, whatever it may be, that's what I'm saying. I think all those things are a drag for just the international visitation in general.

Our next question comes from Thomas Yeh with Morgan Stanley.

Yes, I just wanted to follow up a little bit more on that Orlando market comment. Can you maybe just flesh out what you're seeing at the regional level a little bit more because you did cite SeaWorld Orlando attendance up year-to-date. And I would imagine most of the international visitation headwind you cited stems from that market. Is that fair? And if so, then were the other markets kind of underperforming even relative to that?

Thomas, I think you can, as we've said in the past, assume that the international attendance is, as you noted, more of an impact to the Florida market and Orlando. So the fact that we're up year-to-date at SeaWorld Orlando with that headwind, I think you could view that as a positive. We'll see where we shake out, obviously. But your point is a valid one on a relative basis, there's other parks that we need to see do better that are outside of the Orlando market.

Okay. That's helpful. And then for October, you cited per caps growing. How is attendance pacing? If you can comment on that, particularly given I think you're comping the Hurricane Milton issues that you were facing in early October last year.

In October, we saw some recovery from the hurricane impact in Tampa, and to a lesser extent in Orlando. However, we faced challenges, particularly with the weather conditions in Williamsburg, which is one of our top Halloween parks. A significant nor'easter hit the East Coast over Columbus Day, affecting that park and our Sesame Park in Langhorne for several days. Additionally, we experienced several rainy weekends in Orlando, coupled with a continued decline in international attendance. Overall, attendance increased in October, though not to the extent we hoped due to weather issues in other regions and the international decline. It's worth mentioning that in-park spending per guest was positive in October, as was the admissions per capita. While I haven't been asked about this yet, I believe we are improving how we manage admissions per capita in October, and I'm interested to see how that develops in the future.

Our next question comes from Chris Woronka with Deutsche Bank.

Marc, I guess, as you guys kind of collect feedback from guests and any surveys you do, your marketing approach. I mean, do you get the sense that you need a more strategic pivot, whether it's in part of offerings or marketing approach and thinking about things like social media versus traditional. But really, the gist of the question is, as you're collecting feedback from customers, is there something more different they want to see outside of price value situation?

Thank you for the question, Chris. When reviewing the quarter and factoring out the weather and calendar shifts, those are just occurrences that happened. I don't believe that relates to what we offer in our parks. The international impact is a new and emerging phenomenon, more related to macroeconomic factors. While there are certainly areas where we can improve in our parks and need to execute better, I believe our events, rides, and attractions are appealing, and we will keep providing those. For example, our Howl-O-Scream events in San Diego and Orlando saw record attendance, and we’re preparing a strong Christmas event starting this weekend at one of our parks, followed by others soon after. One key aspect is that we will continue to invest in our parks, making improvements by adding new attractions, updating venues, and enhancing aesthetics, just as we have for years. We will not neglect the parks; we will keep them fresh and provide reasons for visits. We will maintain our capital investment strategy, as offering exciting new attractions will draw people. However, we need to execute better, particularly in marketing and various ticket offerings. We must improve in those areas. The essence of our parks—rides, attractions, and collection of assets—remains robust, and we will keep investing in them.

Okay. As a follow-up, you mentioned the MOU being signed internationally in the third quarter and that you expect to sign another soon. Can you provide an overview of the overall size of that pipeline? Considering that some developments may or may not occur, how significant could it become over the next three to five years? Additionally, regarding sponsorship, you shared a projected run rate number for the next couple of years. Is the pipeline there also growing?

Sure. On the international front, it's exciting to see ongoing interest from people reaching out to us. As mentioned in our release and my comments, we're comfortable discussing two memoranda of understanding—one has been signed, and we anticipate signing another in the coming months. This outreach should persist, although I don't want to lead you to any specific outcomes, as these processes can take time to evolve. The potential of our product is being recognized, especially with the park in Abu Dhabi which is well-executed and effectively showcases our brand. People are starting to realize the benefits of our expertise, which can be applied beyond just SeaWorld, encompassing our other brands like Busch Gardens, Aquatica, and Discovery Cove. I expect this outreach to continue, but I don't have specific details at the moment. We will provide updates each quarter. Similarly, regarding sponsorships, we have over 20 million visitors to our parks each year, creating a somewhat captive audience with many activation opportunities available. We're currently working through a list of potential sponsorships and are enthusiastic about the opportunities that lie ahead. I believe we'll continue to discover more in this area in the coming years.

Our next question comes from James Hardiman with Citigroup.

This is Sean Wagner on for James. I guess you've talked somewhat about the international weakness. Are you able to break down domestic visitors? Are you seeing any differences there between destination of fly-in versus local drive-in?

Yes. I don't know that we'll comment a whole lot on just the nuances. I mean just a lot of our parks get visitation from closer in, right? So even here in Florida, where we're sitting today, a lot of our attendance is coming from the state of Florida. And things move around from quarter-to-quarter. I think the most pronounced thing like we saw, which is why we called it out was the international attendance changing.

Okay. On the attendance per cap front, are you able to provide any more color on how that breaks down by park? Are you more aggressive in Orlando versus other markets given some of the international and competitive headwinds there?

I don't think we'll provide a breakdown by park. However, I want to share some insights since you asked. There are many factors that influence admissions per capita. You mentioned the decline in international attendance, which usually includes higher per capita guests. A drop in attendance from those guests can obviously impact per capita figures. Weather and holiday shifts also play a role; you can’t just wait for better weather during a compressed summer. I believe summers are becoming more compressed, which means there’s less time to react. With our pass base down, we’re looking to fill that gap, and we have various strategies to do so. Our revenue management team, which oversees this process, has noticed increased competitive offers and promotions from competitors in several markets. We’re not the only ones adjusting to these other offers. The good news is that we saw an improvement in per capita figures in October. Jim noted in his remarks that we recently launched our 2026 passes, and a key acquisition period is around Black Friday. This sale began this week, and while it's early, we’re encouraged by the trends we see. It's important for us to close that gap, and while we have a long way to go, this gap will start to cycle through as we approach next year. We're optimistic that it will become a positive factor for us. I won’t detail exactly what changes we've made, but we've adjusted some of our pass products to make them more appealing to guests. We continue to offer great benefits and, crucially, one of the key elements of a strong pass program is to provide reasons for guests to visit. We have an exciting lineup of new attractions, rides, events, and refreshed venues planned for next year, which are essential for encouraging pass member visits. Additionally, we strive to ensure a compelling value proposition with our passes, which I believe are among the best entertainment values available for families and friends visiting our park. While we’ve invested in our product and its value, we need to improve our marketing and raise awareness around these pass products to encourage more people to buy them.

Our next question comes from Lizzie Dove with Goldman Sachs.

I guess just to go like bigger picture for a second, it feels like as an industry and for you guys, like attendance isn't back to 2019 levels and for you guys not back to the peak levels either that you've kind of laid out in the past. Like what do you think is the kind of gating factor to growing attendance longer term? Like is it something structural, more competition, maybe not even from other parks, but just other kind of in-home, out-of-home entertainment? Or how do you kind of think about that forward trajectory?

I still have a lot of confidence in the industry overall. It's a strong industry with many appealing aspects, particularly related to the value proposition of visiting a theme park. We align well with that proposition. We are committed to investing in our product, which is crucial, and we will continue doing so. We haven’t had the best weather in recent years, and we recognize that there's fierce competition for people's time nowadays. We need to enhance our marketing efforts to raise awareness about why visitors should purchase a ticket or pass to our park. For instance, if someone moves to Tampa, it would be ideal if their neighbors recommended getting a pass to Busch Gardens due to its great value. Our goal is to better market our offerings, provide compelling reasons for people to choose our product, and continue investing in the parks to enhance value and encourage visits. I remain very confident not only in our business but in the entire industry as well.

Got it. That makes sense. And then just to kind of ask one of the other cost questions in a slightly different way, but you've got these kind of cost saving targets. Your margins are still higher generally than the rest of the industry. And look, I know there's nuances with footprint and operating days and all of that. But I guess just can you maybe speak to the confidence of being able to kind of grow margins from here or whether there is some reinvestment needed, whether that's events, marketing, anything like that?

We hold ourselves to high standards and have executed our cost initiatives reasonably well over the years. However, I was disappointed in our cost savings and efficiencies for this quarter. We're implementing new strategies for processing and managing costs, and I believe we will improve in this area moving forward. There are always new costs that arise, and we need to manage those more effectively. Our existing cost plan is under control, but we must address the emerging costs more promptly and find ways to mitigate them. While I won’t provide specific guidance on margins, I can emphasize that a key part of our future strategy is to continue identifying cost efficiencies and managing our expenses. Margins remain strong across the industry, and our adjusted EBITDA costs have shown minimal growth this year, at less than 2%. We have managed these costs well, but we recognize the need to execute better and are actively working on it.

Our next question comes from Patrick Scholes with Truist.

I got on to the call a little bit late, so I apologize if any of these have been asked already. Any initial expectations or how should we think about CapEx spend for next year?

Yes, I can address that. You can expect our CapEx spend to be in a similar range to this year. It may fluctuate a little, but that's generally our target. We haven't provided specific figures. The important point to highlight is that we will continue to invest in the parks. Our commitment to this strategy remains unchanged, and we will keep allocating capital for improvements, new events, and enhancements to ensure our parks remain appealing and encourage visits.

Okay. My next question is more of a high-level thematic inquiry. Attendance in the last quarter was weak, but I noticed some strong initial metrics for next year with Discovery Cove and group bookings up 20%. When considering Discovery Cove, which is a premium and exclusive product, would you say that there are divergent trends in your business, where Discovery Cove is seeing promising initial bookings but more last-minute mass market attendance is softer? Is this K-shape bifurcation something you also observe in your business? Are there any other similar trends you have noticed?

Yes, I'm glad you mentioned Discovery Cove. This year, the park is on track to achieve record attendance and revenue. As I noted earlier, revenue trends for next year are showing an increase. Bookings and revenue for next year are up over 20% compared to the same period last year, which is encouraging. Discovery Cove is an excellent park and our most expensive, which is reflected in its solid bookings. Furthermore, we're seeing growth in our in-park spending this quarter and again in October. Although some consumers may be affected as part of our overall guest mix, we also observe trends, like those at Discovery Cove and our increasing in-park spending, that indicate there are still consumers who are in good shape. Overall, Discovery Cove in Orlando is performing well this year and looks promising for next year as well.

This concludes our question-and-answer session. I would like to turn the conference back over to Marc Swanson for any closing remarks.

Yes. Thank you. On behalf of Jim and the rest of the management team here at United Parks & Resorts, I want to thank you for joining us this morning. As you heard today, we're confident in our long-term strategy, which we believe will drive improved operating and financial results and long-term value for stakeholders. So we thank you, and I look forward to speaking with you next quarter.

This conference has now concluded. Thank you for attending today's presentation. You may now disconnect.