Earnings Call Transcript - RMNI Q2 2022

Operator, Operator

Good afternoon, everyone, and welcome to Rimini Street's Earnings Conference Call. I will now hand it over to Dean Pohl, Vice President of Investor Relations. Mr. Pohl, please proceed.

Dean Pohl, Vice President, Investor Relations

Thank you, operator. I'd like to welcome everyone to Rimini Street's second quarter 2022 earnings conference call. On the call with me today is Seth Ravin, our CEO; and Michael Perica, our CFO. Today, we issued our earnings press release for the second quarter ended June 30, 2022, a copy of which can be found on our website under Investor Relations. A reconciliation of GAAP to non-GAAP financial measures has been provided in the table following the financial statements in the press release. An explanation of these measures and why we believe they are meaningful is also included in the press release under the heading about non-GAAP financial measures and certain key metrics. As a reminder, today's discussion will include forward-looking statements that reflect our current outlook. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from statements made today. We encourage you to review our most recent SEC filings, including our Form 10-Q filed today for a discussion of risks that may affect our future results or stock price. Now before taking questions, we'll begin with prepared remarks. With that, I'd like to turn the call over to Seth.

Seth Ravin, CEO

Thank you, Dean, and thank you, everyone, for joining us today. Q2 2022 results. For the second quarter, we had many positive financial and operational achievements, including strong subscription renewals and extensions, increased cross-sales of our expanded solution portfolio to existing clients, and we maintained our excellent industry-leading client satisfaction rating of more than 4.9 out of 5.0 per cases in onboarding. We achieved record revenue of $101.2 million, up 10.5% year-over-year and above the high end of our guidance range. We also achieved a record revenue retention rate of 95% on subscription revenue and increased gross margin to 63.1%, up from 62.2% year-over-year. We continued to see sales growth in our newer application management services, professional services, interoperability, monitoring, and security services, and we believe our unique client experience, marked by a very high client satisfaction rating, will drive increased loyalty, improved retention rates, and higher cross-sales to existing clients over time. However, in line with other companies, we faced global macro environment and currency exchange rate headwinds that impacted quarter results. We believe that the macro environment will ultimately benefit our business after organizations complete a replanning adjustment cycle, and we're addressing it and other opportunities with changes that include me returning to oversee global revenue operations to reaccelerate growth. Since Rimini Street's inception in 2005, we've signed over 4,800 clients, including over 180 Fortune 500 and Fortune Global 100 companies, and estimate that we have saved our clients more than $6 billion that they were able to reinvest in their businesses. We ended the second quarter with 2,905 active clients, a year-over-year increase of 9.8%. In addition, despite the labor challenges affecting many organizations globally, we were successful in expanding our global workforce by 17.9% year-over-year, ending the quarter with over 1,834 employees. Demand and sales execution. We continue to see strong and growing demand for our expanded portfolio of services. Globally, companies are facing impacts to profits caused by continuing post-pandemic supply chain challenges and global macro challenges, including war, sanctions, trade disputes, deglobalization, inflation, rising interest rates and currency exchange rate movements. These macro shocks were originally believed to be short-term impacts but are now being viewed as likely multi-year headwinds that are forcing organizations to replan their businesses, including IT investment plans. The replanning phase has frozen many investment decisions. Frozen IT decisions impacted the market as a whole during the second quarter, as reflected in extended and delayed IT sales cycles for many companies, including Rimini Street. However, as previously noted, we believe that once organizations complete their replanning process, Rimini Street is well positioned to ultimately benefit from this macro environment with growth in new client acquisitions. Rimini Street’s portfolio of IT solutions provides the services many organizations need around their enterprise software systems and provides industry-leading value, ROI, and proven engineering capability. Our existing clients' renewed subscriptions are at a strong pace as they leverage Rimini Street as their trusted vendor to support, run, secure, and drive more value out of their existing stable systems. Rimini Street is also helping them overcome labor challenges and focus their limited resources on strategic investments and key initiatives to preserve cash. Accordingly, with both new client acquisitions and existing client cross-sales, we continue to see a strong opportunity to expand our portfolio of enterprise software solutions and continue building and maturing our go-to-market capability to launch, sell, and deliver our full solutions portfolio to new and existing clients globally. To achieve our goals, I am now dedicating a majority of my time to maturing our service offerings, delivering innovative new marketing, and improving global sales execution. I was recently meeting with prospects and clients across North America and traveled to Japan, Malaysia, Singapore, the U.K., and France. We have seen positive responses to our new television ads and better-than-expected attendance at our Street Smart Client events around the world. In Japan, for example, we were very pleased to see nearly 150 executives attend our thought leadership event in person, demonstrating the value of the discussions, content, and our service offerings. Client case studies. To highlight how clients are leveraging Rimini Street services globally to achieve their strategic goals across different industries, I'd like to share two case studies from the second quarter. First, the State Library of Victoria, Australia's oldest library. They trusted Rimini Street for support of their Oracle E-business and Oracle Database software. Rimini Street is also providing the library with its advanced database security and advanced application with our security solutions; two solutions and its Rimini Protect suite of security products. These solutions provide an innovative approach to security that can block vulnerabilities before an attack or close an attack vector within hours, unlike traditional and old vendor software patch models that can take days, weeks, months, or years to receive a patch and require significant testing time and cost to implement. Rimini Street's cybersecurity solutions provide the library with peace of mind that digital threats are being addressed. Chief Financial Officer, Bradley Vice noted that his finance team is very happy with the support and security that Rimini Street provides, which keeps their assets and their customers secure, and their finance services running. He further noted that Rimini Street worked with his team to identify and provide solutions for the risks they face, and that the team enjoys the services they are receiving. Pleased with Rimini Street's responsiveness and the security capability we provide. Next is Labeyrie Fine Foods, based in France, who is a leading fine foods retailer with facilities in 48 countries. Labeyrie switched its Oracle JD Edwards and Oracle Database Support to Rimini Street. With 80 application modules connected to the Oracle ecosystem, Labeyrie processes more than 500,000 batches of orders nightly. Maintaining the system became challenging after the software vendor ended full support for this mission-critical system. Labeyrie sought a solution to provide the mission-critical support they needed and create more value for the organization while simultaneously reducing costs. Labeyrie's CIO, Louis Goffaux, stated that in addition to supporting their ERP system, Rimini Street's experts provide guidance on potential changes to how they use the platform, and that the monthly and quarterly meetings with Rimini Street are extremely worthwhile, exactly the type of close all-around support they were looking for. He goes on to note that Rimini Street provides an efficient, agile service at half the price they were previously paying the software vendor. Given their digital transformation goals and financial constraints, Labeyrie believes Rimini Street is a perfect fit for their needs. Oracle litigation update. Rimini Street and Oracle have been in litigation for more than 12 years. While the U.S. courts have confirmed long ago that third-party support is legal, we presently have two active proceedings with Oracle; the injunction compliance dispute and Rimini II proceedings, both of which relate to the manner in which Rimini Street provides support services for certain Oracle product lines. Rimini Street is not prohibited from providing support or services for any Oracle products. With respect to the injunction compliance dispute, Rimini Street has filed an appeal to the Ninth Circuit of the United States Court of Appeals related to certain rulings of the U.S. District Court. We expect the appeals process to take another 9 months to a year to receive a ruling, but a ruling could come earlier or later. With respect to Rimini II, the case Rimini Street filed against Oracle in 2014, the case remains in a 3 trial stage. Currently, the Rimini II trial is scheduled to begin on October 31, 2022 in Las Vegas, Nevada. Please see our disclosures in the latest 10-Q filing for additional information on Oracle litigation. Summary. We continue focusing on revenue reacceleration, exercising disciplined cash generation and management, driving shareholder value, and bringing our litigation with Oracle to a successful conclusion. Now over to you, Michael.

Michael Perica, CFO

Thank you, Seth, and good afternoon, everyone. Q2 2022 results. Revenue for the second quarter was $101.2 million, a year-over-year increase of 10.5%. Annualized recurring revenue was $396.7 million, a year-over-year increase of 9.6%. Revenue retention rate for service subscriptions, which makes up 98% of our revenue, was 95% with more than 80% of subscription revenue noncancelable for at least 12 months. For the second quarter, clients within the United States represented 53% of total revenue, while international clients contributed 27%. Second quarter aggregate year-over-year revenue growth in the United States was 8.8%, while growth for international clients was 12.5%. We note that the U.S. revenue growth has continued to improve over the last four quarters, improving from the 2021 second quarter year-over-year growth rate of more than 2% to the current year's second quarter year-over-year growth rate of 8.8%. We also note that our total revenue growth was negatively impacted by FX movements of approximately 1%. Billings for the second quarter were $101.6 million compared to $107.3 million year-over-year, a decrease of 5.3%. New client invoicing was challenging, as Seth noted. A negative FX movement adjusted down deal sizes in U.S. dollar terms, but we achieved strong client renewals and cross-sales with existing clients. Gross margin was 63.1% of revenue for the second quarter compared to 62.2% of revenue for the prior year second quarter and 63.7% of revenue on a non-GAAP basis, which excludes stock-based compensation expense compared to non-GAAP gross margin of 62.6% of revenue in the second quarter of last year. We executed well in our service delivery and continue to methodically expand efficiencies and leverage through technology and process control. We expect to continue investing in the global service delivery capability and capacity for our new products, services, and solutions to ensure we can deliver our best-in-class offerings with unparalleled client satisfaction. Therefore, for the full year 2022, we continue to guide gross margin to be in the range of 62.5% to 63.5% of revenue on a GAAP basis and 63% to 64% of revenue on a non-GAAP basis. Operating expenses. Like other organizations globally, we're experiencing cost pressures due to increased labor costs and inflation. However, we have been successful at mitigating this challenging part by broadening our hiring practices with an emphasis to recruit more positions in lower-cost geographies and, in part, by using innovative technology. We continue to explore all options available to ensure we are able to acquire the talent we need to achieve our profitability and growth targets. Sales and marketing expenses as a percentage of revenue were 35.8% for the second quarter compared to 36.2% for the prior year second quarter. On a non-GAAP basis, which excludes stock-based compensation expense, sales and marketing expenses as a percentage of revenue were 34.9% during the quarter compared to 35.2% in the year-ago period. We remain focused on making the appropriate investments needed to support our growth initiatives, and we continue to expect full year 2022 sales and marketing expenses to be in the range of 34.5% to 35.5% on a GAAP basis and 33.7% to 34.7% on a non-GAAP standpoint. General and administrative expenses as a percentage of revenue, excluding outside litigation costs, were 18.6% for the second quarter compared to 18% for the prior year second quarter and also declined as expected sequentially from 20.4% in the first quarter of fiscal 2022. On a non-GAAP basis, which excludes stock-based compensation expense, G&A was 16.9% of revenue versus 16.7% in the year-ago period. There were one-time employee-related expenses, software implementation costs, and other various items impacting spend during the quarter. Moreover, we do note that our G&A expenses did decline nearly 6% in the second half of 2021 versus the first half of 2021 and see a similar trend this fiscal year. Current and expected 2022 spend includes the investment in information systems, costs for additional personnel to support growth, cost as a public company, cost to support our global compliance operation, and incremental professional, legal, audit and insurance costs. Therefore, we now see G&A expenses in the 16.5% to 17.5% range, up from our prior range of 16% to 17% on a GAAP basis and 14.8% to 15.8% on a non-GAAP basis. Net outside litigation expense was $3.1 million for the second quarter compared to $2.8 million for the prior year second quarter. Our outside litigation spend is not linear and can fluctuate each quarter based on timing and the nature of litigation activities. As Seth noted, the remaining two cases currently scheduled for a jury trial on October 31, 2022, are resulting in litigation costs that we had expected to incur during fiscal year 2023 being pulled forward into fiscal year 2022. Accordingly, we expect outside litigation expense to now exceed $20 million from our prior guidance of $15 million to $20 million for the full year 2022. We are early in our trial preparation and thus should have more clarity to provide during our Q3 call. For the second quarter, net income attributable to shareholders was $110,000 or $0.00 per diluted share compared to the prior year's second quarter loss attributable to shareholders of $4.8 million or a loss of $0.06 per diluted share. On a non-GAAP basis, net income was $6.4 million or $0.07 per diluted share versus $8.4 million or $0.09 per diluted share. Adjusted EBITDA was $11 million or 10.9% of revenue for the second quarter. I'd also like to highlight our non-GAAP operating margin, which excludes outside litigation spend and stock-based compensation of 11.8% for the second quarter, underscoring the significant profitability potential and substantial leverage to our operating model. Accordingly, we remain confident in our ability to achieve our long-term target of operating margins in excess of 20%. Balance sheet. We ended the second quarter with a record cash balance of $160 million compared to $110 million for the prior year second quarter. On a cash flow basis, for the second quarter, we generated $15 million of operating cash flow, and year-to-date, we generated $60.8 million, up from $47.2 million in the prior year first half. Deferred revenue as of June 30, 2022, was approximately $300 million, up 13% from $266 million for the prior year second quarter. Backlog, which includes the sum of billed deferred revenue and noncancelable future revenue, was approximately $551 million as of June 30, 2022 compared to $571 million for the prior year second quarter. Capital market transactions. During the second quarter, the Board of Directors authorized an increase to our previously announced common stock repurchase program from up to $15 million over 2 years to up to $50 million over the next 4 years. During the second quarter, we repurchased 85,600 common shares with a market value of approximately $508,000. The repurchased shares were retired. Going forward, we will look for additional strategic opportunities to repurchase common shares, although we reserve full discretion on repurchase decisions and whether to activate or deactivate the plan at any time. Regarding the term loan, during the second quarter, we prepaid $5 million of principal value with no prepayment penalty and the current term loan principal value is approximately $80.5 million. With a strong cash position and consistent operating cash flow generation model, we believe the company is able to comfortably fund growth, execute our capital return plan, and reduce debt in the interest of our shareholders. Business outlook. We're currently providing third quarter 2022 revenue guidance to be in the range of $100.5 million to $102.5 million, and we are maintaining full year 2022 revenue guidance to be in the range of $402 million to $411 million. This concludes our prepared remarks. Operator, we'll now take questions.

Operator, Operator

Our first question comes from Derrick Wood from Cowen and Company.

Andrew Sherman, Analyst

It's Andrew. Nice quarter. Seth, I would love to hear how the changes in the Americas organization are progressing so far. What inning do you think we’re in? What else do you think needs to be addressed there? Also, when do you anticipate U.S. growth might accelerate again?

Seth Ravin, CEO

Yes. Great to talk to you. We're definitely seeing improvement in the maturing of the management structure in all the Americas, which includes North America and South and Central America. We brought that all under a single umbrella. And I think we're seeing the consistency of execution improving between the regions. I think we're seeing some really good deals being done. But I still think the macro environment is going to cause challenges probably through the third quarter in the Americas as well as globally. And we've seen that the macro challenges are really affecting operations at a global level. So, I think that's still going to slow everyone down a little bit in the third quarter. But as I mentioned in the prepared remarks, I expect that once these replanning cycles are done, you're going to see us benefit on the other side of that. We're involved in a lot of those discussions. The teams are involved in a lot of those discussions with many name-brand clients. And I think those are all very positive signs.

Andrew Sherman, Analyst

And you hired 153 net new employees that looks like a record. What drove that? And how have retention levels trended and where do you end on sales reps?

Seth Ravin, CEO

The retention levels are challenging, much like everyone else. The difference is we reached about a 21% churn rate on employees while the industry average is 23%. So, we're trending about 2 percentage points less than the industry, but we were traditionally about 10%. So, it's high for us. So, I still think that means we're in line with the market or a little bit better in terms of the churn. We have implemented some great programs like our fabulous Fridays, which are fully paid Fridays for every Friday in July and August. So, people love that. And I think we're doing a bunch of other programs that our employees really like, energizing them in a post-pandemic world, where it's giving them some time to get their lives back together and reassimilate into society. We've also been bringing people together from around the world for meetings that they haven't had in 2 to 3 years, so they're reconnecting with teammates. So, I think all those things are going to help us bring down the attrition rate. I also think because the market is busy with hiring freezes and layoffs, that will cool things down a bit as well since our employees were busy hiring.

Andrew Sherman, Analyst

And then, Michael, on the guidance, leaving the full year unchanged, maybe just speak to the level of conservatism in that? And anything extra you've kind of, or what have you assumed as far as macro in the second half?

Michael Perica, CFO

So, Andrew, I think we are certainly, as Seth noted during this interim period, with a lot of freezing for decisions that are happening out there. We're feeling confident in our guidance for the full year, but we are reflecting that overall environment as Seth noted.

Andrew Sherman, Analyst

Were there any significant deals that were postponed to the second half?

Seth Ravin, CEO

Definitely, there are deals that pushed. And I think, again, as you're seeing in so many different company earnings, delayed sales cycles, lengthened sales cycles, we're certainly seeing some of that as well because these companies and government organizations are reshaping their plans in order to prepare for a multi-year potential recession. Different type of environment, they are not doing anything because they're not buying anything while they finish those plans. And I think based on the involvement that we've seen, the kind of work that we're engaged in with clients and prospects around the world, we feel pretty positive about the fact that we're going to benefit when they finally finish their plans. We intend to be a part of them.

Operator, Operator

Our next question comes from Brian Kinstlinger from Alliance Global Partners.

Brian Kinstlinger, Analyst

The first one may be a little long. The September quarter is, I believe, the most important quarter from a bookings perspective for your company, case in point, last year. SAP and international businesses generally have seasonal maintenance renewals. And we're early in the third quarter, but maybe I'm curious, have you continued to see better win rates in these opportunities, especially as your business development team is more tenured? However, the second part of my question for that in one of your comments, I thought I heard that you're taking over the overseas international sales. So, I guess given that timing, I'm curious what precipitated that change if I heard it right?

Seth Ravin, CEO

Sure, Brian. It's great to talk to you again. We've made a change in how we manage our general managers, as they will now report directly to me following the departure of our COO. I will personally oversee all the GMs, effectively taking on the role of acting CRO. After speaking with many investors and reviewing the business, I believe this is an opportunity for me, as the founder, to step back in and reaccelerate our growth. We have traditionally operated at around 30% growth, and I see the potential for us to achieve that level of success, even at a much larger scale. I have decided to take a hands-on approach to guide us towards our goal of reaching $1 billion in revenue by the end of this year. It's no secret that this transition has taken longer than we expected; we initially aimed to complete it in a year, but it has now taken 18 months. I am committed to finishing this transition by the end of '22 and positioning us strongly as we enter '23.

Brian Kinstlinger, Analyst

And the second part of the question, is 3Q tracking much better than last year's 3Q with your more tenured salespeople?

Seth Ravin, CEO

Well, we are always very back-end loaded in the third quarter. So, we truly are really early. But I can tell you that we closed some good SAP business even in the end of Q2 as well as early in Q3. And those are always good signs when we close deals on SAP that early. Generally, they're all sort of in those last few weeks of the quarter, just the way it's all structured. So, the fact that we're seeing early closes and we've closed several deals in the early parts of the quarter, I take those as positive signs.

Brian Kinstlinger, Analyst

One last question before I get back in the queue. You've made it clear that some decisions are on hold, which is negatively impacting the third quarter. I'm trying to understand why your business, which is positioned for a significant price cut to the OEMs, isn't seeing executives take action on moving to third-party maintenance, especially with maintenance renewals coming up. Does this mean we will have to wait another year until their maintenance agreements expire for the next opportunity?

Seth Ravin, CEO

It really depends on the daily global macro situations that companies are facing, which are causing significant challenges. There are many uncertainties to consider, such as whether to build a factory in China, potential political issues, and energy considerations in Europe. These uncertainties are leading to internal paralysis for many companies, prompting them to reassess their strategies. Despite this, they still aim to save money, which is why I remain optimistic about our outlook. Regarding cost savings, our maintenance services operate year-round without set deadlines, allowing us flexibility in timing. Our products and services can be offered at any time. Companies with maintenance renewals in the third quarter must decide whether to invest in better services and savings now, as they might miss their opportunity otherwise. This situation informs our current annual revenue guidance because we have strong visibility on recurring revenue. However, for new projects, the outlook isn't as clear as it was a few months ago, so we will need to navigate this environment carefully.

Operator, Operator

Our next question comes from Jeff Van Rhee from Craig-Hallum.

Jeff Van Rhee, Analyst

Congrats. Love that free cash flow again. So a few for me, though, if I could. Start with maybe on the revenue front, you've got obviously a pretty wide range, and this is for either of you, but a pretty wide range on the revenues. To the extent you can talk through that and what would it take to hit the high end, mid and low? I understand there's variability, but we're coming into Q3, that's still a pretty wide range here. So, how are you thinking about keeping such a wide range? And what gives us high and low end?

Seth Ravin, CEO

Sure, Jeff. Thanks. I think the range, we always narrow it down, of course, after the third quarter. We'll have a much better sense. And I think the fact that we have a hugely predictable recurring revenue stream now that's significant at hundreds of millions of dollars gives us a lot of stability and confidence in the range that we have. When we talk about what would it take to hit the higher end of the range, it's going to require a good Q3. As you know, we can have a great Q4, but it's not going to impact revenue that much on the ratable basis. That will tee-up '23 numbers nicely. But the real revenue, you set your course in the first half of the year; the third quarter, you have to have a really good quarter to get to the high end of those numbers. I mean, that's just the bottom line.

Jeff Van Rhee, Analyst

From a pipeline perspective, the pipeline is in place and functioning, which is essential for achieving our targets this quarter. The key factor now is the closing rates, which remain reasonable to reach the upper end based on the pipeline we have.

Seth Ravin, CEO

I believe achieving the high end will depend on a strong quarter. There is a pipeline that can help us get close, and as usual in the third quarter, we might see some big deals coming in at the last minute, as customers often approach us late with requests. This has been a common situation for us. We don't need complete visibility into the entire pipeline to reach our goals. However, there is a model that suggests there are enough opportunities to achieve those numbers. The challenge lies in the changing macroeconomic conditions, and we’ve also faced tough exchange rates that have affected our revenue, especially since much of it comes from regions with declines against the dollar. For instance, $1 million in Australia translates to $800,000 for us. Those factors are certainly hurdles. Nonetheless, I believe the opportunities are there. It will require some excellent effort, favorable economic conditions, and collaboration with clients to reach the high end of our expectations.

Jeff Van Rhee, Analyst

On the expense growth, it seems you're aiming for a target in the high single digits, relative to revenue growth. You've mentioned that headcount has increased by 18% year-over-year, and it's clear you've been aggressively hiring over the past couple of years. What factors are influencing this decision? What would need to change for you to reduce employee growth, and how do you weigh the trade-offs involved?

Seth Ravin, CEO

I think we're in a position where, considering hiring, much of it is related to gross margin. We've achieved over 63 percent, but we still need to increase headcount for AMS, which is a very labor-intensive business. Currently, we're likely below our desired staffing levels. We would like to add another 100 positions in the service delivery and professional services areas. There are significant projects that our customers want us to undertake, but we haven't been able to staff them adequately, presenting some challenges. Moreover, when considering hiring, it's important not to solely focus on full-time equivalent numbers. I have mixed feelings about disclosing that number because, while we experienced over 17% growth year-over-year, those new positions could be in locations like India or other countries where labor costs are significantly lower compared to those in the U.S., Europe, or Asia Pacific. Therefore, an increase in numbers might be misleading since many of these employees could be low-cost workers. So, it's crucial to interpret that figure carefully.

Jeff Van Rhee, Analyst

Last for me then, Seth, to follow up on a comment you made about the transition lingering for 18 months and wanting it done by the end of '22. I know you're working on a lot of things, but what are the top two priorities on that list? How will you know when you've accomplished it? What needs to happen by the end of '22?

Seth Ravin, CEO

The close rates for our sales team have been impressive, with about a 30% close ratio on our initial pipeline numbers, which is strong. The main challenge is to increase the total volume of deals. Our sales force is maturing, and my primary concern is ensuring that marketing is generating leads and significantly expanding the pipeline. We want to achieve a larger number of deals and backup deals. This approach helps mitigate risks in uncertain environments where decision-making and timing are affected by macro factors. To counter this, we need to double the number of deals in the pipeline, so for each deal, we have not just one backup but possibly two or three. This strategy will help us reach our desired numbers. Currently, our focus is on creating a much larger and broader pipeline than usual because we must anticipate a higher fall-off rate and possible delays in deadlines and renewals. That's our primary objective.

Operator, Operator

At this time, we have no further questions.

Seth Ravin, CEO

Okay. Well, thank you very much, everybody. Thanks for joining us on our second quarter '22 earnings call. I also want to thank all of our colleagues for their efforts in the second quarter. It's been very, very helpful. A lot of work went into the quarter, delivering those kinds of amazing client addition numbers as well. We look forward to having everyone join us on our next earnings call. We'll discuss the third quarter '22 results, and we'll select fourth quarter performance to date commentary as well. Until then, please continue in good health and our thoughts and charitable support for those suffering in harm's way. Thank you very much, everyone. Have a great day.

Operator, Operator

This concludes today's conference call. Thank you for attending.