Vista Group Half Year Results Announcement — 25 August, 2023

good morning and thank you for joining the Vista group 2023 interim results briefing today we will begin the presentation in about one minute foreign welcome to the Vista group interim results announcement for the first half of financial Year 2023. my name is Matt court and I am CFO with Vista before I hand over to Stuart to get us underway I'd like to let you know we're very happy to take questions at the end of the presentation today we are using Zoom webinar technology if you would like to ask a question please select the raise hand icon at the bottom of your screen you will then go into a queue for question when your turn comes we will announce your name and open the line to you a pop-up will appear at the bottom of your screen asking you to unmute your line you can then ask your questions we'll do the questions at the end over to you Stuart thank you Matt and good morning everybody and welcome to the presentation today I'm delighted to bring you the results for the first half of financial year 2023 and how Vista group has been progressing as we go through a period of change over the last four months I've had an opportunity to spend time with our clients and the Vista group team from around the world it's been a great introduction to an exciting industry our clients have shared their focus our areas and how they are meeting the challenges of an increasingly complex operating environment they are focused on the ever prison present pressures to improve performance and are always searching for ways to improve their businesses and connect with their moviegoers as new movies release and with the pandemic behind them our Cinema and exhibition clients have turned to revitalizing the auditoriums and customer experiences likewise our fantastic team are focused and continuous to focus on delivering the very best solutions for our clients Vista group's purpose to bring more people together to experience the magic of movies and cinema by creating the platform that connects the industry and Powers the movie goer experience continues to resonate well in this rapidly changing environment as a vertically integrated software Solutions company it is important to align our strategy structure and approach to the market to ensure we serve our clients well and provide solutions that enable business performance and customer intimacy more on that shortly Vista group is progressing well and I'm delighted to be able to report Revenue growth and improving operating cash flow performance as we focus on the first half of 2023 the financial highlights are Revenue was 69.7 Million up 12 on 2022. recurring Revenue at 60.5 was up 13 percent and assess Revenue at 21.1 up 17 percent annualized recurring revenue or ARR as we term it at 30 June was 118 million at six percent on the first half of 2022. headline ebitda of 2.5 was down 19 but on aligned with our full year expectations and Matt will talk more about that shortly operating cash flow of 6.2 million the first half was up 22 on the first half of 2022. in terms of Vista priorities the top of the list is growing recurring Revenue a strong predictable Revenue stream enables us to plan and support our clients with new capabilities and Innovations through the first half we have seen continued good Improvement in high quality recurring Revenue we're now tracking 29 ahead of pre-pandemic levels we already have strong SAS revenues in many parts of our business though we are still early in our Cloud Journey for the cinema on-premise product as well as Top Line growth going forward the portion that assess Revenue will continue to increase as more and more of our clients migrate towards these Solutions with that in mind we reaffirm our 2023 Revenue guidance of 142 to 147 million we're also confident we remain on track for our 2025 aspirations outlined in detail at the 2022 investor day and by Susan and myself at our recent Asm a review of how we spend and plan our capex program we have recently brought forward our free cash flow positive forecast to fourth quarter 2024. one year earlier than the invested a Target targets our strategy to deliver these targets and support our clients success is clear we have commenced the business transformation required to align our structure to support the execution of our strategy the transformation has clear objectives improve our client before outcomes and improve our operating performance our strategic priorities are designed to create focus and a roadmap for Vista group to grow and deliver on our ambition and purpose with our clients at the center we are working to empower their success today and to provide the platform for them to thrive in the future as I have first ever as I have met for the first time with many CEOs and cios from our clients I have heard about the transformation they are undergoing as they innovate Beyond traditional movie going experiences the needs for insights and intelligent Business Solutions that enable them to compete and grow is essential and they are looking to Vista group for these Solutions regardless of where they sit within the segments of the industry we serve this ambition it is our belief that by partnering with Vista group our Solutions will enable more clients intimacy differentiation and help optimize cost and Delivery for our clients across each of these strategic objectives we are working to simplify and build a more connected future so that our software expands Beyond a set of vital transactional tools though we are not tied directly to box office success our clients are the second quarter of 2023 was the best quarterly results since 2019. two animated movies are in the top five movies this year already the Super Mario Brothers movie Saw the biggest worldwide opening of an animated movie ever of course there was a string of strong and not so strong franchise releases but the important statistic is that the range of movies the diversity of movies continues to improve we know this both anecdotally and through our Advanced analysis and customer engagement software muvio Cinema EQ that with a more diverse content comes a broader audience this is a good thing though outside the physical first half you can't escape the fever around barberheimer opening weekend and subsequent successes for our clients the last month has been nothing short or phenomenal with Cinema chains announcing July 23 domestic box office performance was the strong was the highest grossing month in company history and July 23 been the second best domestic box office month of July with 1.37 billion and six percent higher than July 2019. both titles are original content with movio data showing that Barbie in particular brought back in frequent moviegoers and audiences who had not seen a movie or year Francis Ford Coppola called barberheimer a victory for Cinema it's clearly a great reason to be excited about the moviegoer experience as a destination the studio pipeline for 2023 and 24 has been shaping up well to deliver both Blockbusters and the diversity of content in addition the announcement by traditional streamers that they would use theatrical release for movies such as hair from Amazon Studios and killers of the flower Moon by Apple has been further encouraging strong Blockbusters with the original content drives excitement for the cinema experience as a relative newcomer to the industry I've learned that wearing both sunglasses and carrying an umbrella is required at all times the July box office was 105 of 2019 enabling many Cinema operators to report positive cash and business performance what could not have come at a more an opportune time for recovering a recovering industry has been the writers and actors stripes this additional uncertainty particularly for short and medium-term TB and streaming releases does impact theatrical with a lack of actors available to promote and Market new openings there have been some changes to movie release schedules so far and to be fair there are many reasons for this but it does add to the pressure of launching content internationally Vista group has limited exposure to box office performance but for our clients this presents a more significant pressure we're continuing to monitor for any impact of this for later this year and into 24. with a continuously changing landscape it is Paramount that Vista group organizes itself for the future both to deliver on our best our business strategy and better support and enable our clients success as I said earlier the relationships and solutions that our clients are looking for today with with Vista group is different from the past our technology and solutions are no longer just transactional necessities of a business operation today they are at the heart of how our clients are thinking about the future more than ever our clients are looking for solutions to be connected and enable greater customer and intimacy expanded digital reach and engagement operating efficiency that enables them to reduce costs all connected to actionable data to drive decision making additionally they are looking for expanded offerings and to support the movie and more within their organizations so Technology Solutions that ultimately connect the industry to support this we're aligning our organization around two simple pillars Studio distribution and Cinema exhibition this enables us to build Solutions and software without internal barriers to success and with a strong focus on client relationships that support customer outcomes across the entire value chain of our business operations our transformation is about meeting our clients where they want not where we want our Cinema and exhibition capability is performing well with continued Revenue growth and this is the medium-term engine room for our growth by bringing this to cinema and movieo Cinema EQ Solutions and product roadmaps closer together we can better serve members for their digital point of preference we can also engage loyalty and insights Beyond ticketing and attendance and enable client expansion into higher margin areas such as food and beverage promotions just focus on Building Solutions that enable client profitability as at the heart of everything we're doing as we re-engineer our business we also see a need to update how we measure our process progress screen and site count are useful for a Perpetual licensed business model but less important and assessed World they are also less relevant as our clients transition to complete out of home entertainment offerings sometimes operating sites without a similar on a screen even being present we'll talk more about this in the U.S investor day on the 13th of September but through point Sorry throughput of our platform and volume and value now become more useful metrics to judge the impact we are having on our clients and with that ultimately our success as you're aware movie ovz and the majority of our studio Distribution Solutions are already SAS offerings the majority then of our remaining Cloud transformation is the transition of our large Enterprise cinema circuits from on-premise software to the cloud this process is complex and often Vista is only part of the overall technology landscape for these clients we are in general a system of record the mission critical transaction engine which runs their business but in many cases they also connect us to other systems such as payroll inventory management and a traditional Finance Erp the journey from on-premise Vista Cinema to Cloud involves several stages for most of our clients regardless of stage our value is to the whole Market not the component pieces we expect most of our clients to move first to Horizon as it is required for our one view insight and analytics solution the intervista digital then to Cloud for the immediate future we will retain some of our on-premise metrics but this is more a reflection Vista Cinema's success in the Perpetual on-premise world and outlines how the conversion has progressed rather than the value we create independent Market clients use our VZ solution which is already assess offering I do want to call out one latam based client though Cinemax an Enterprise client based in Mexico has announced they are traveling an on-premise competitor of two sites they appear as a loss on the slide overall though we have had a stable first half of 2023 in terms of site numbers direct markets so including India and China are the key markets that we will transition to the cloud as we progress over the coming 12 months our key measures and metrics will change to enable us to provide better transparency into the journey our clients are on the progress we are making and the impact our platform is having excitingly what we've called traditionally our additional group companies which are largely aligned to the studio and distribution space have performed very well as r with the majority of solutions we provide already been SAS offerings this boat well up for the future though we don't current currently have the market share position in the space there are a lot of opportunities for us to move into whilst remembering to get there we have to earn the right to invest in our growth before I hand over to Matt to talk in more detail about the first half financials I want to thank the entire team we have at Vista group it is a unique and passionate culture with a team going through significant change as we simplify and optimize our business I massively appreciate the support and commitment to work tirelessly to best so serve our clients and support each other thank you all over to you Matt thanks Stuart I am pleased to be able to bring you the interim results for the first half of financial year 2023. it is great to see the impact of original content movies breaking records with Bob and Heimer weekend up there with in-game and Star Wars weekend numbers this is all good news for Cinema managers and their cash flows with Stuart having given you the headline spoilers I'll take you through three views of the profit and loss so that we can get slightly different perspectives on our performance on the last six months at the highest level the group p l Revenue has grown well and in line with guidance at 69.7 million dollars and good headline ebitda will be at held back by a small unfavorable foreign exchange loss we'll break that out more in a moment but the rest of the profit and loss was in line with our targets with depression and depreciation and amortization up as we begin to expense Cloud Investments and the other line which includes a number of favorable and unfavorable movements is down on prey year which included non-cash impairments of Vista China which we've talked to before as we announced earlier in July the group is undergoing a significant transformation to Alliance operations closer to its key client segments this is intended to both streamline the operations across the business and deliver value to both clients and Vista alike the majority of this work will be done during the second half of 2023 but some of it has started in a current reporting period as outlined in note 2.3 of the accounts we've taken provisions of eight hundred thousand dollars relating to the wider changes enacted prior to 30th of June with more to come in the second half of 2023 the overall program including its Associated costs should be complete by the end of the second half with operational performance improvements expected to be realized in the first half of 2024. as we approach positive free cash flow later in 2024 I look forward to seeing the transition to net profit in a similar time frame back to the performance of the group this slide now shows the last seven half year periods of the operational performance of the group it's getting a bit crowded and we'll trim it back in the future but it tells the key highlights of our progress very clearly the strong recurring revenue recovery continues along with that now the cost base of the business which has grown back in the last couple of years has stabilized in most areas with head count end of June 23 similar to that at in December 2022 pleasingly most pandemic related expenses are now behind us so with Revenue growth stable costs and the transformation underway the platform for operating Leverage is now in play spot some hit ones in the first half ARR continues to track up and is now sitting just north of 118 million dollars those headwoods the reduced revenue from Vista China as we've talked to before and the roll-off of the fox contract remove your research posted its acquisition by Disney total about 5 million in AR app we exclude these impacts the underlying ARR growth will be up five percent for the last six months and 12 over the close of the first half of 2022. we've broken out the hardware cost of sales line so you can track the spend profile of the underlying cost of cost to serve I would expect that to be relatively stable going forward increasing with hosting costs associated with our clients Cloud transitions the sales and marketing line had been slightly elevated in a run rate in the first half of 2023 with higher trade show costs associated with key Northern Hemisphere marketing events skewed to the first half this will repeat in 2024 as the group will have its first client conference for five years in Auckland research and development costs in the p r were down slightly on the prior six months the total spend in this area is up reduction in the p l is mainly due to the higher proportion of work focused on cloud technology transformation and thus being capitalized capitalization was 9.7 million dollars for the Hearth near to post expected research and development tax incentive proceeds up from 7.6 million dollars in the first half of 2022. DNA costs have also plateaued as expected once accounted for full year costs and continued volume related movements and inflationary pressures we expect most of the key cost lines to be at them medium-term run rate this is important as we drive operating leverage and deliver free cash flow deposit we still have some movements in the expected credit loss line we will review the need to break these out from the foot numbers at the full year as they are largely historical movements now and it will be good to cool time on the impact of the pandemic on our accounts in future I would expect to phase these out of our reporting and leave our adjusted ebook data to exclude ethics movements and potentially non-cash items like Shadow strains the operating segment slide reflecting the P L's across the key business segments of the group and as we have highlighted in previous results updates and again most recently in the transformation announcements and a stu has outlined earlier in this presentation we'll be moving to report our performance in two groups simply Cinema exhibition and Studio distribution the cinema platform will consist of our core Cinema related businesses of Vista Center and movies muvio cinema in the studio platform mostly comprising mostly of our additional group companies numero max power student Flex we all moved to that reporting over the next 12 months but will also retain the legal entity details where appropriate so that the transition is made easier to track for investors going forward though I want to emphasize that our future lies in a simplified joined up business focused on client success so our financial reporting will naturally follow that path on this slide you can see our all segments contributed to our recurring Revenue growth as business levels in Cinema Studio and distributor clients or group in particular all parts of the additional Group Company segment grew significantly contributed to ebitda Improvement our balance sheet remains in good shape group cash of 37 million dollars being net cash of 19. million is in line with our expectations and our available cash facilities being the combined cash balance and undrawn Bank facilities stands at 61 million dollars we operate well within our bank covenants today and expect to continue to do so as we move to positive free cash flow in the next 12 months receivables Management in particular has been very good across all our operating segments in the last six months and though we remain cautious in our provisioning we've made good progress on the long-term debt especially this has contributed significantly to the nearly seven million reduction in our receivables against year-end closing balance and off the back of that Improvement we've also cleared out some of our payables balances during the half our receivables provisioning is now down to 15 percent from 22 percent of 31 December 2022 as mentioned earlier I really look forward to being able to close all these pandemic related provisioning and eventually the associated comparatives and currently expect the full year results to be the last in which the ins and outs affect our numbers now to the cash flow the operating cash was 6.2 for the half up modestly on the 5.1 million dollars on the prior comparative period as mentioned we have made good progress on both receivables and payables box capitalized development was up 42 in terms of cash whereas the proportion of engineering development resources dedicated to the SAS platform increases and we note that there is a lag in receiving the research and development tax incentives so the number here is higher than the intangibles note cash usage which is basically cash movement less our investments in Retriever and cash based exceptional items was 1.2 million dollars per month over the half this is slightly higher than the one million dollars per month we expected as an average for the full year but well within our modeling in the second half this should come back in line with the average of one million dollars as we hold down our costs build recurring revenue and complete the transformation process outside standard Cash usage run rate though I do expect us to have some one-off cash costs of the transformation they will not know the exact exact numbers until the process is complete I would expect this to be in the range of two to three million dollars I think the key takeaway from this is as you can see the stabilization of our costs the focus of the business on simplifying its client relationships and with continued recurring written growth we have a path for early positive free cash flow the business is working very hard at this and I look forward to bringing you more positive news as we progress on the journey I'll hand back to Stuart to sum up thanks Matt it's been a very busy but four months for me the business on the inside is largely what I expected it to be from the outside what is more exciting though is the opportunity we Face to add value to our clients it is probably clearer and bigger than I would have thought this is not just through our SAS transition in the cinema space but also the football we have across distribution and Studio what we need now is to focus on executing against our strategy and supporting our clients and the Fantastic Vista group team as we continue on our journey we'll Now open up to questions thank you all right thanks team just before I open up for questions uh which the first one will be from Phil from UBS um I'd just like to remind you of the process if you have a question please use the raised hand icon at the bottom of your screen you'll then go into the queue uh when your turn comes we will announce your name and open the line for you you'll have to click the pop-up which will appear on your screen asking you to unmute your line you can then ask your question over to you Phil can you hear me Matt yep yeah we can uh morning everyone um just a couple of questions from me um I suppose the first one was just um but hard to predict but just the writers strike like if it does continue on um you know saying to the fourth quarter um you know do we have any kind of assessment of what we think that will mean for the fy24 Slate I know you know even the 23 slate we've seen like Sony delaying a few movies which is probably going to take about 300 mil off the U.S box office um uh I think we've got Disney and um I think it's Warners have got a number of movies in the second half so um yeah just be interested in your views on you know what there's a potential downside we could see possibly going to next year as a result of that and then the second question was just on the comment Stuart about the cinemix um possible tune there just trying to understand possibly what the reason for that was and and how big how big that is and whether or not you know that's that's an isolated situation or a possibility uh a kind of a bigger bigger trend hey thanks Phil um I'll um I'll jump in first uh and talk about the uh writers actors from a financial perspective then um Stu will get the market View and and uh sum up a little bit on Cinemax as well um the our current expectation isn't isn't a massive impact on the overall box office um and we're obviously watching it very carefully in this morning um just before the announcement came out uh but just before our announcement here we've heard that June 2 has been pushed into into March I think actually June is the first one that probably is impacted by the strikes the others the the schedule moves around quite a bit uh normally anyway as people just off for the final final slots um I think the overall impact will be um modest uh in vista's terms uh directly but obviously we're watching it keenly because the uh impact on our customers is more significant mainly because it just has taken a little bit of the wind out of their sales and they've got a lot of really positive news um and Tailwinds behind them right now um but the impact on us is going to be we think in Q4 relatively modest um obviously if it continues we'll we'll talk more about that in the future thanks uh thanks Matt and so just talking about um Cinemax and particular look I think from from our prospective clients clients will make um a variety of um I guess short and longer term economic decisions um so we're we're watching this carefully um what I would say is the provider that they're trying has no other um Enterprise customers and so I'm very very comfortable um with our technology Direction um the client conversations I'm having the momentum that we're seeing in terms of client interest and and starting to move towards client commitments in our and our platforms is I think really exciting um specifically around Cinemax as we've said they're trying a couple of sites we're continuing to watch that and we don't really know yet what the outcome of that of that would be um to answer your question there are there are 300 sites um organization um and so uh we'll we'll just continue to watch that and as the reason Stuart for the for them possibly you're trying a different vendor is it price based or was it or is there something else um our understanding is that it's it's economic yeah great awesome thanks for that thanks thanks Phil um the next question is from Rob from Craig's uh please uh unmute unmute your microphone ask your question go ahead Rob a couple of questions first of all on um look first of all so consensus is about 12.8 million um so I would you know employ a pretty pretty decent Improvement in the second half to to make that um if we go back to the comments that you gave in February around costs that looks to be roughly in line um but you know Revenue you know would need to be a bit second half weighted to hit the guidance train so I guess the the question I've got is you know what what's sort of giving you the conference to maintain the revenue guidance range you know where would you expect to see growth in the second half relative to the first step please uh yep yeah not a good question we we do have a we do have a natural seasonality if you look through the um I don't I'm just dragging up that um beautifully complicated uh seven periods uh we have a we always have a better second half uh relative to the first half and then I have so pre-pandemic as well um I think the growth of recurring Revenue has a what the beauty of recurring River has natural flow into that as well um I think the thing that's taking a little bit the edge off obviously we had good non-recurring Revenue in the second half of last year so we don't expect that to uh repeat and we expect recurring non-recurring Revenue sorry to be about 20 million uh maybe slightly less for the full year so the headline number might come back a little bit but the recurring Revenue growth uh is there um we've got good uh projects coming on stream they'll have a modest which we've previously announced every man Cineplex are the headlines uh but there's a quite a few smaller projects which coming online now those two large projects have a modest very modest impact on this year's results but we'll have a a good impact into 2024 so I think the momentum is going the right way the growth will still be there um and hence we're happy to hold our guidance to the 142 147 um number okay let's help for me and then maybe if I just think about the margins obviously announced in July uh some restructuring which you talked a little bit about before in terms of some Provisions already in the first half and then some more in the second half and it's going to phase in over the second half uh this sort of um head count reduction can you just give us some steers to the connect benefit if any on this restructuring to The Current financial year that you're going to see in the second half because there's a lot of moving Parts there yeah yeah there are there are a lot of movement parts and um it is a it's such an important thing for uh the group to go through this but it is very complicated not made easy because we're obviously in a lot of different territories with a lot of different regulations and time zones in a textile it takes time to execute properly this is something that really should set us up well for the future in terms of uh client engagement um I I think we probably thought earlier in when we embarked on the process that we'd be able to complete it um earlier and it happened material impact on results I think this year now it's um going to have a very modest impact directly on results um if it uh I think the whole program will be completed by the end of the year ideally as soon as possible because it obviously calls this organizational disruption um but uh it might have a modest couple of million dollars out by the end of the year that's all the the main benefit will be definitely it will flow through fully into the first half of 2024. okay thanks mate and I guess um did you ever make any commenters to your level of comfort with we consensus sits at 12.8 or is it looking a bit higher oh I think um no I I don't think we have we'll leave the analysts to to generate their consensus I think we've been clear about where our our Revenue guidance is and the stability of our cost base so if you you can probably work out different iterations of that versus the range of the guidance I think and um uh yeah and we'll leave it to you guys to do that um I think that you know what I would say though is we've got lots of really good momentum and I think for uh um Stu's comment about um carrying an umbrella and wearing sunglasses at the same time is probably really very true today um what I would say though is when the industry gets through writer strike actor strike and it's the actor strike which impacts the theatrical more than the writer's stroke um coming out of it the the long-term prospects for the industry are just as exciting as they've always been and they're Within Reach uh whereas for the last few years they've been a little bit further to grasp they're absolutely within reaching right now okay thanks mate and maybe just one last question from me just on the cloud transition um you know and I think there's been some comments that that customers are kind of transitioning first of all to the food and beverage um and then later to ticketing I mean given you've sort of given us a guide of three to five times our you know as we move to Cloud transition but the customers are kind of Staggering the migration that seems how should we think about the benefits of this transition in the nearer term until you know what kind of uplift would you be hoping for on average uh you know we're not trying to give away commercial term or anything but on average but roughly what kind of uplift would you expect to see in the next kind of couple of years um I guess I'm just sort of wondering if the Market's a little bit high on the revenue upside from this transition over that to the next one or two year you know period and then maybe more of the benefits happen and the more medium to longer term um I'll I'll just talk to the numbers person then I'll hand back to Stu to talk about the the process of the transition I think um we've factored Stephen we've factored that into both this year's guidance and our medium term objectives of where we need to be at the end of 2025 and it definitely takes into account the fact that some customers will have a staged adoption and we've talked about that with Cineplex how they're going digital first and might wait 18 months before they do the the on-premise lift and shift um but other customers will go you know the entire stack uh relatively straight away and uh Every Man's a good example of that one um our um our 2025 aspirations fully take that into account and uh so I don't know so hopefully we're setting the right Expectations by that the group is definitely driving towards that uh we'll also use the uh us investor day in a couple of weeks to outline in a little bit more detail that sort of medium term path but we're definitely on track to for everything we said both invest today and at the ASM I'll hand a student just to talk about that technology transition because it's an important one for people to understand yeah thanks thanks Matt and so um just just clarifying that the process what what we're seeing as Matt said some clients will go um all all in first and every man's a good example others will take a more phased approach um we think the most natural approach for our clients is that they start with uh Horizon and one view which is which are effectively our analytics and insight platforms um cloud-based that gives them a view across this circuit in terms of the business performance and then the next step in that process is really what we've called Vista digital which is the our channels how the clients how those customer touch points work and that's when the integration with Cinema EQ or muvio Cinema EQ becomes really important as well to drive both marketing but also that digital touch point and digital experience with the client um they then move on to further embedding components like loyalty head office Etc whether effectively running the circuit and then finally we see the last piece of the puzzle is where um this the actual Cinema sites themselves become full cloud-based so as as Matt said we'll see some taking it at different speeds and each client situation is going to be unique boasting both in terms of the business benefits they're looking to achieve through the transition particularly also around things like where they're at in terms of Hardware refresh Cycles licensing and other other components that are that all sort of play into this decision-making process as well the important thing from a from a Vista group perspective is that we get them um underway we get them into the cloud and we we start them on the journey so that they can then see the Innovation they can see the technology they can start to have access to some of um the more Innovative things we're doing around AI Etc and really start to benefit so for us it's all about articulating that Journey for the clients being clear around that and demonstrating in each of the individual cases what that what that benefit is at okay and then just just maybe circling back to tomatoes let's do it I mean are you still comfortable let's say a target of 24 to 40 of sites having moved to some form of you know the Vista Cloud by the end of 25 or is that um something you might update on the more detail yesterday we we will update you Stephen but we are absolutely happy with it Target right now absolutely okay great okay thank you that's all from me thank you um and so I'm going to wrap the call up now and so thank you for all joining the call this morning and um I really appreciate your support of our company and the interests and your interest in the results as well um we would and I would like to remind you that we're holding an investor update in Los Angeles on the 13th of September and hopefully we look forward to seeing a number of you there that presentation will be broadcast and recorded and along with the presentation itself will be um available on the investor as well so thank you all um and have a good rest of day cheers thank you