Universal Technical Institute, Inc. Price & Performance (UTI)

These statements do not guarantee future performance. And therefore undue reliance should not be placed upon them. Do not intend to update these forward looking statements as a result of new information or future developments except as required by law. Please note, unless otherwise stated, all comparisons in this call will be against our results for comparable period of fiscal twenty twenty four. The information presented today also includes non GAAP financial measures. These should be viewed in addition to and not as a substitute a substitute for the company's reported results prepared in accordance with U. S. GAAP. All non GAAP financial measures referenced in today's call are reconciled in our earnings release to the most directly comparable GAAP measure. For more information regarding definitions of our non GAAP measures, please see our earnings release, financial supplement and investor presentation. With that, I will turn the call over to Jerome Brandt, CEO of Universal Technical Institute Universal his prepared remarks. Good afternoon, everyone, and thank you for joining us to discuss our results for the first quarter of twenty twenty five. As we continue to execute on our growth, diversification and optimization strategy, we delivered another quarter of outperformance by exceeding expectations across all key metrics.

For this, want to sincerely thank our divisional and corporate teams along with our partners and students their exceptional efforts and dedication to delivering strong results time and time again. With that, let's jump into the results for the quarter. Revenue for the quarter grew over 15% year over year to $201,400,000 Average full time active students increased 11% year over year to 25,062 students. Net income increased $22,200,000 with diluted earnings per share of $0.4 Adjusted EBITDA improved an impressive 45% year over year to $35,500,000 Total new student starts increased year over year by over 22% for the quarter.

So what's driving these strong results? First, top line performance exceeded our expectations across both divisions. On the Concord side, we continued to make higher strategic investments in our marketing and admissions efforts, which led to very strong student start performance [indiscernible] We will continue investing in our Concord marketing and admissions teams to continue to improve results.

On the UTI side, our first two starts for the quarter were exceptionally strong. Which we believe was primarily the result of deferrals from the fourth quarter due to FASFA delays. As the quarter progressed, our remaining starts performed according to plan. Looking at the bottom line, in addition to our overachievement on revenue, we did not spend as much as we initially expected to on some specific transformation initiatives planned in the quarter. Was a result of shifting some of these into the second quarter. That said, we do anticipate our initiative spend in throughout the rest of the year. Overall, we're very happy with the results we're reporting today and we remain confident in our ability to deliver both year over year top and bottom line growth throughout the balance of 2025.

Now I want to briefly take a moment to express how incredibly proud we are of our students, faculty and staff for their unwavering dedication to supporting those impacted by the California wildfires Their efforts, whether through organizing food drives, spearheading fundraising initiatives or volunteering their time, truly exemplify the values we hold as an organization. This collective commitment to making a difference highlights the strength of our community and our shared purpose of coming together to help those in need during these difficult times. To our Southern California campuses during this tragic event. While there was a slight dip in attendance during the most challenging periods, due to significant disruptions in commuter patterns, we're pleased to report that this did not impact operations. Our thoughts remain with those who are affected. And we will continue to support our community through these challenging times. From a regulatory standpoint, we are encouraged that the new administration has expressed an interest in reducing regulatory burden and believe any changes that fairly compare schools of all types based on outcomes will contribute to the more favorable regulatory environment for us. While the specifics regarding the Department of Education remain unclear, I'm hopeful that the administration will focus on student outcomes and helping schools expand in areas where employment demand is extremely high.

Our attention remains firmly on the factors within our control. And we are unwavering in our commitment to achieving strong student outcomes. Lastly, before diving into each division's details, we're making great progress on our CFO search. Our elevated company profile has certainly expanded the available talent pool. And we're highly confident in finding an exceptional candidate for the role. We look forward to providing an update Turning to divisional specific highlights for the quarter. The Concord division continues to deliver strong results with consistent year over year growth. The positive top line results are primarily due to our marketing investments, as we continue to focus on maximizing the performance of our healthcare division.

Moreover, the increasing effectiveness of our admissions team remains a key driver of growth across the division as well.

As for Concord's program expansion strategies, we remain on track to launch 10 cash pay short course programs across the Concord campus in 2025, Our new nursing program in Jacksonville, Florida also remains on track to launch in the mid fiscal twenty twenty five and the Dallas Nursing Program capacity increase is still on track to begin fiscal twenty twenty five, which will increase our capacity by an additional 60 students.

Turning to our partnerships. As we noted last quarter, we're progressing on Concord's [indiscernible] This project is still on track to open in early fiscal twenty twenty six and will initially launch as a non Title IV campus for dental assistance and hygienist. When Concord's growth restrictions are lifted, we plan to seek approval to offer Title IV funding as well. As a reminder, we anticipate this campus will add more than $4,000,000 in annual run rate revenue as well as contribute to Concord's EBITDA margin expansion as it scales. We look forward to keeping you updated on this part Now onto our UTI division. UTI division also continued to deliver year over year growth driven by expanded programs and increasing market demand for skilled collared workers. Our HVACR programs continue to ramp nicely across our campus Long Beach and Bloomfield.

As we discussed on our last call, of the nine full length programs we're launching this year across both divisions, We expect eight of those to be on existing UTI campuses. Also, as previously discussed, we plan to open three campuses in 2026, subject to regulatory approval, of course, With the upcoming Concord Heartland co branded campus marking the first of these, we're pleased to have recently announced the second location.

Which will be a fully optimized UTI campus with a comprehensive set of program off offerings in the Northern Suburbs of Atlanta. Pending regulatory approval. From an optimization standpoint in Q1, completed the unification of two separate Houston Camp This strategic move was designed to drive operational efficiencies, reduce overhead and create more streamlined learning environment for our students. The consolidation is part of a broader effort to optimize UTI campuses delivering quality education.

This was a significant project that required a big lift from our team and will ultimately deliver an enhanced margin profile for the combined campus. I'm very proud of what we're able to accomplish in this front and appreciate all who were involved. We also still anticipate that by the middle of the fiscal year, our MIAT Canton campus along with Motorcycle Mechanics Institute, Marine Mechanics Institute and NASCAR Technical Institute campuses will all officially operate under the Universal Technical Institute brand.

I also want to highlight our Canton campus for being recognized by the Michigan Veterans Affairs Agency as a veteran friendly institution. The agency's award reflects our commitment to supporting veterans by providing conducive environment for their education and career transition.

Turning now to partnerships, just this morning, we were excited to share that we've added Tesla to our successful manufacturer specific advanced training programs. Beginning in the spring, UTI's Long Beach campus will offer Tesla's start program for collision repair.

We continue to expand our partnerships across the two divisions and this collaboration is a testament to our commitment to innovation and ensuring that our programs remain relevant and impactful in today's evolving landscape. Building on all this great work being done by both of our divisions, I'm happy to report that we are raising our guidance ranges for fiscal twenty twenty five.

We now expect to generate consolidated revenue between $810,000,000 and $820,000,000 reflecting approximately 11% increase year over year. We now anticipate adjusted EBITDA between hundred and $22,000,000 and $126,000,000 And we are raising our expectations for new student starts to be from 28,500 to 29,500. Christine will provide more details on our fiscal twenty twenty five guidance in just a bit. As we continue into 2025, I want to remind everyone that we are officially in Phase two of our multiyear Northstar strategy.

I'd like to take a moment to reiterate just what this entails. As previously communicated, we are committed to launching a minimum of six new programs each year across Concord and or UTI campuses. Pending the necessary regulatory approvals. Additionally, we've outlined plans to open at least two new campuses annually starting in 2026. It's worth noting we announced nine new programs in 2025 and three new campuses in 2026, which demonstrates we are on track to meet or exceed both objectives and we'll continue to work diligently towards their successful completion. Further details on this strategy can be found in our investor deck [indiscernible] Overall, we are of the substantial growth we've achieved across both divisions, and we believe we are well positioned for continued With that, I'll turn the call over to Christine Klein, our Interim CFO to review the first quarter financial results. Christine?

Thank you, Jerome. We kicked off fiscal twenty twenty five with another quarter of strong results across the board. For the first quarter, average full time active students increased 11.1% year over year to 25,062 students. New student starts increased 22.3% year over year to 5,313 starts exceeding our expectations. The Concorde division drove a six students compared to Q1 twenty twenty four, New student starts increased 26% in the first quarter, which was primarily the result of investments we've made with within the division to bolster our marketing and admissions efforts and improve performance by Concord marketing and admissions teams. The UCI division generated an 8% increase year over year in average full time active students for the quarter while new student starts grew 19% Contributing to this growth was the impact of delays, which shifted several students into the first two starts of the First, We experienced more normalized levels of growth throughout the remainder of the quarter. Turning to our financial performance. First quarter revenue on a consolidated basis increased 15.3% year over year to $201,400,000 Concord contributed $70,000,000 an increase of 17.9% over the prior year quarter, while the UTI division contributed 131,500,000.0 an increase of 14% over the prior year quarter.

From a profitability standpoint, consolidated net income for the first quarter was $22,200,000 or $0.4 per diluted share.

Adjusted EBITDA for the first quarter was $35,500,000 a year over year increase of nearly 40%. As Jerome discussed earlier, we shifted some of our strategic initiatives planned for the first quarter into the second quarter, which led to lower than anticipated This change in expense timing combined with the growth in average full time active students and revenue over achievements, drove outperformance on our bottom line. As we remain committed to our ongoing strategic initiatives planned for this year, we do still expect to spend those investment dollars throughout the remainder of the fiscal year. At the end of the quarter, we had 54,400,000.0 shares outstanding. Total available liquidity at the end of the quarter was $246,000,000 including $74,000,000 of remaining capacity on our revolving credit facility We also paid down an additional $5,000,000 on our revolver in the first quarter ending with positive net working capital of $28,500,000 First quarter twenty twenty five operating cash flow was $23,000,000 and adjusted free cash flow was 18,900,000.0 Year to date capital expenditures were $3,300,000 which was below our original expectations due to timing. However, we still expect to spend approximately 55,000,000 in total CapEx this year. Building on our consistent we are raising the guidance ranges we set for fiscal twenty twenty five.

Starting with revenue, are raising our expectations to between $810 and $820,000,000 for fiscal twenty twenty five. Or approximately 11% year over year growth at the midpoint. This reflects the Q1 increase in average full time active students from the program additions across both divisions, with total new student starts in fiscal twenty twenty five now expected to range between 28,500 and 29,500. Following this higher revenue growth in Q1, we now expect growth in the upper single digits in Q2 followed by double digit growth in the remaining quarters. For starts, we anticipate double digit growth in Q2 with mid to low single digit start growth each quarter thereafter. For fiscal twenty twenty five, we are raising our net income dollars with diluted earnings per share projected between $0.96 We expect 2025 full year adjusted EBITDA to now range between $122,000,000 at the midpoint. While we are pleased with our adjusted EBITDA performance this quarter, the bulk of the outperformance is attributed to the in year timing of our various initiative investments. Consequently, we anticipate that adjusted EBITDA will normalize throughout the year as we make these strategic initiative investments. Further, we still expect to incur the necessary growth 2026.

We anticipate 2025 full year adjusted free cash flow to now range between $660,000,000 and $65,000,000 which continues to assume approximately $55,000,000 in CapEx We still expect the bulk of our cash generation in year over year growth to materialize in the fourth quarter consistent with our historical cadence. Looking further ahead, I'll also reiterate our collective excitement as we enter Phase two of our North Star strategy this fiscal year. We're executing on our growth investments for fiscal 2025 and as discussed previously, expect to see those investments increase in the It's important to reiterate that as we advance through the next few years of our growth strategy and continue to strategically invest at both Concord and UTI, both our CapEx and strategic investments will grow materially. As always, in addition to this earnings call transcript, we encourage everyone to review our financial supplement and investor presentation as well as the 10 Q once it is filed. These materials include the most current information on our consolidated and segment actual results our strategic roadmap and our guidance. Thank you to our students, [indiscernible] partners and investors I'll now turn the call back over to Jerome for closing remarks. Thank you, Christine.

Looking ahead, we're excited to continue this next phase of our journey. Addition to continuing our relentless focus on execution, optimization and driving student outcomes, our organic growth in one, working towards expanding our campus footprint into greenfield geographies broadening the reach of existing programs and adding new in demand offerings. And three, growing our partner network and deepening industry relationships. Inorganically, our efforts remain focused on opportunistically exploring strategic acquisition opportunities with an emphasis on enhancing our presence in healthcare with in demand programs that will complement [indiscernible] As we've moved into the post election environment, I'm pleased to report that we've seen a notable uptick in activity on the M and A front.

And we're excited about the increase in opportunities that have been presented to us. As I noted earlier, we're proud of what we've accomplished once again this quarter and remain excited about the future. The demand for skilled professionals is growing and we are well positioned to continue driving momentum and supporting the next generation of skilled collar talent. We have a strong plan in place a notable track record of execution and a very healthy financial profile to continue delivering shareholder value in the years ahead. Appreciate your ongoing support and look forward to sharing more about our exciting progress. As always, we're happy to host campus tours and provide a closer look at the impactful initiatives we're pursuing. So please feel free to reach out if you'd like to visit. Now like to turn the call over to the operator for Q and A. Operator?

Ladies and gentlemen, at this time, we'll begin the question and answer session. Ensure the best sound quality, Our first question today comes from Alex Paris from Barrington Research. Please go ahead with your question.

Thank you, and thank you for taking my questions and a hearty congratulations on the strong start to the new fiscal year.

Thanks, Alex.

Good morning. Yes, thanks. First question on new campus was the co branded campus with Heartland. The second campus was just announced, I think it was this morning. [indiscernible] I just wanted, is that the first campus that you guys are going to have in [indiscernible] It is. Okay.

So it's not only a new campus, but it's a new state expansion as well?

Yes, it's completely greenfield for We see a lot of opportunity job growth, the demographics are great in that area and we found what we believe is a fantastic location So we're really looking forward to it. And as we said in the prepared remarks, this will be optimized comprehensive set of UTI products, auto, diesel, and the full skilled trades complement.

Great. So my question is the third, which is not yet announced Is that targeted to be a UTI campus, Conacord or we just don't you're just not telling us yet?

Well, it's a UTI campus as we've also outlined in seven due to the growth restrictions from the merger that we had. So these first two in '26 are UTI campuses. Of course, the Heartland Concord co branded campus is able to open because it is a non title IV entity initiative.

Got you. And the third campus, would that be a Greenfield state or would that be an additional campus in an existing state?

Well, hold tight there. We're pretty close to being able to announce it. We'd like to get a couple of things across the finish line before we put an exact location in. But We We won't keep you waiting much longer, Alex.

Okay. Thank you. And then a question about [indiscernible] You've given us targets for fiscal twenty twenty nine. Which among other things includes about 600 basis points of adjusted EBITDA margin expansion from roughly 14% last year to nearly 20% in fiscal twenty twenty nine. I got to assume with this level of new campus activity, as well as this level of program expansions that expansion won't necessarily be linear. Am I right on that? No, it definitely won't be linear. There'll be contour to the expansion. You'll see more more strategic investment in 2025, 2026 and 2027 as we are are beginning to invest in the '26, '27, '28 campuses and they then become accretive in 2027, 2028 and 2029. You'll see a bit of a bend in terms of our EBITDA trajectory in in 2026 moving into 2027. But then as the these tranches of campuses and programs take off, that's when you really the acceleration. '28, '29. Great.

That makes sense. And then last question, is sort of what you were saying towards the end of the call, the M and A, the M and A pipeline, the activity post election, You said you're looking primarily on the healthcare side. Primarily to add to the Concorde offerings. What other color can you offer us there? Are you looking for Allied Healthcare, nursing, graduate programs?

As I said on Alex, it's a great question. As I said on previous calls, is that Concord acquisition got us a strong portfolio of Allied Health, meaning non nursing healthcare disciplines and programs. And dental. And what we didn't get was a lot of nursing students. Well, the nursing only on two of our campuses at the 17. And so one of the things we've also said is that we'd like to be a larger player in the nursing markets. And so that's a primary focus. It doesn't mean that any of the targets that we've looked at don't have Allied Health, along with nursing, but the primary focus would be in a sense to fill out the portfolio across all of the healthcare field And of course, as you know, the largest and fastest growing really is is nursing. And so, we're paying a particular focus there right now.

Great. That's good color. Thanks. Thanks a lot Jerome and I'll get back in the queue. Thanks, Alex.

Our next question comes from Eric Martinuzzi from Lake Street. Please go ahead with your question. Yes. I wanted to follow-up on the Atlanta new campus and investment. I thought I was thinking in the 100,000 square foot was sort of the footprint that you guys were targeting for these new UTI locations and I saw Atlanta at 150,000. Was that just that was the space that was available and it was in the right area? Or was that roughly the goal all along?

No. The goal was to be somewhere around 110,000, 115 square feet is what we see as our new optimized campus. And what we mean by optimize is is a campus that not only has the transportation diesel and welding in it, but also has the rest of what came to us by way of the MIT acquisition. So the electronic suite of four four programs as well as welding, HVAC, aviation, etcetera. So you see all of that in that square footage. You're right. The inventory of space available, this place is a little larger. But when you if you look at it, what it gives us an opportunity to view is take advantage of of increasing capacity in some of these skilled trades areas where we're all already seeing that we're seeing very, very high demand. And it also gives us the opportunity potentially to put some of our manufacturer specific programs in. Which aren't in the original optimized model. We're really excited about the location and the opportunity Okay. And then on the guide Based on your comments, Christine, for the second quarter, you talked about upper single digits. So I just did quick math. I'm using an 8% number, but I was coming out with roughly 199,000,000 which is slightly above the Q2 consensus.

Is that in the ballpark [indiscernible] No, I think a little bit lower than that. [indiscernible] Okay.

All right. So 7% would be at 197% and we're still in the neighborhood then [indiscernible] Okay.

That's in the neighborhood. It's in the neighborhood.

Okay. And then the expense, I just want to make sure I've got this sized up. In Q1, you guys came in an operating expense of, I think it was $1.74.

I overshot my own model. I think I was at 179, but outlook for Q2, what's the The snapback in the investments that you held off on in Q1 can you size that either a percent margin wise or raw dollar wise for Q2?

I'd say about quarter over quarter, it'd be about $10,000,000 more. Got it. Okay. Thanks for taking my questions. Sure. Thanks, Eric. Our next question comes from Mike Grondahl from Hey guys, thanks and congrats on another nice quarter.

I wanted to dig into new new starts a little bit. At Concord, they were up 26%. You guys called out marketing efforts and admission efforts. You've called that out for a couple of quarters now And I know you're kind of turning the dial up there. Can you talk a little bit about what you're doing specifically and and maybe how much more is left Yes. Well, you're exactly right, which is we're continuing to turn the dial and collaborate [indiscernible] at Concord looking for more innovative ways to reach out to to more students in those local markets. And we're seeing as you could see from the results this last quarter, we're we're continuing to see nice results out of it. Calling the hard pack is a really difficult thing to do. Right? Because we're going to continue to invest and we're going to continue to invest more aggressively in it. Continuing to look for that. So two things will happen. One, we will start see some diminishing returns somewhere along the line. Remember, healthcare is a very local a very local, endeavor. Students don't tend to travel more than 10 to 20 miles to go to a healthcare school.

And so there's there's going to be some population demographics that may start to see some bending in terms of that. And then there are some some areas that have caps.

Where we're not allowed to enroll more students in it. And we're approaching that. That doesn't mean we won't then subsequently work on once you're reaching the caps on increasing the caps because the demand for these graduates is still very, very high. And so we're going to keep turning the dials as you called it.

And I can't tell you exactly where we hit the bend, but we will. And then also, there's this cap issue. So We'll have to play it one quarter by each.

Got it. And then Jerome, from time to time, you've talked a little bit about the macro environment. And if we go back two years, The trades kind of had some headwind against them. And maybe starting early 'twenty four, more positive articles about trades versus four year schools, I think about that time you described the MAC been neutral become a tailwind yet? Or I guess I'd love to hear kind of your update on how you feel about the macro and kind of trades versus four year school.

How about this? We're playing in a very healthy environment right now. Right? Whether Whether I'm feeling the wind at my or my back on that is is a day to day occurrence. But the friction is clearly subsided. It's a healthy environment. We're having great conversations with students weighing the differences between potentially a four year Universal arts education and getting to work within a year, making a good wage And there's been a lot of positive press in the direction of people being more these vocations as a great alternative and the demand for these as we call skilled collar workers continues to increase. And so so we're having much better conversations. Our lead flow is quite high. We're thrilled with where our lead flow is this year. Even at the Investor as I think you can also tell by [indiscernible] Increasing the investment levels in that lead flow that we're sensing that we have opportunity to really take advantage of of some trends in the market and we're doing that.

Yes, definitely.

Okay. Hey, thanks a lot. Sure.

Our next question comes from Steven Frankel from Rosenblatt. Please go ahead with your question.

Thanks.

Looking at that M and A landscape that's out there, does I appreciate the comments that activity has picked up What are the price expectations like of the sellers? Are there any reasonable expectations out there? Or do you think there's going to be a bit of a back and forth process to get to the kind of multiple Well, I guess my point of view on is my bet is there will be a few transactions over the next year. And I understand that it takes a while with the regulatory environment no matter who's in charge to move transactions over the finish line. My gut would be that there will be a couple of transactions this year. Our participation in that really does have a lot to do with a couple of things. One would be those multiples and frankly, we're hearing more reasonable numbers now that we're out there. We're still never totally satisfied with what you hear, but we're hearing more reasonable numbers.

And the second thing that we're maniacally focused on is that the target needs to have really great outcomes. That we've built up a reputation of executing at a high level over seventy percent graduation rates, eighty five percent in employment rates, these are very good numbers and we want to make sure that Two things. One, we're not diluting our shareholders by pricing getting priced out of out of a market. And number two, that we're not diluting our outcomes, which we think is significantly what drives our business.

That makes sense. And then on that outcome issue, Where are you today in employers jostling each other to get in front of your students? Are we still in an environment where you're seeing better offers better tuition reimbursement, things like that from potential employers.

Or is that settled in? We are and again, one of our main strategies has actually been to bring the employers into the process much earlier and and join with our students during their educational process. One good example of that is Tesla coming into our Long Beach campus with their collision repair program. They are paying the students to go through those programs and taking collision repair graduates through their finishing program. That bringing them down into the process with them is is doing two things. One is giving students more confidence that they're going to get a job, It's also increasing the competition among our employers, because they're frankly afraid that the good ones will be gone by the time the end of the process is there. And so that's all helping wages grow. That's great. Thank you so much.

Next question comes from Jasper Bibb from Charis. Please go ahead with your question.

Hey, good afternoon, everyone. Wanted to ask how we should think about the respective new enrollment growth rates for UTI and CONCERNWARD segments in the new guide?

Does that assume Concord continue to outperform UTI or how would you frame those relative growth rates?

Yes, I think proportionally, if you look at the overachievement in Q1, it was it was proportionate. Now one of the things we called out was that the UTI The UTI enrollment increase, Bruce, as our expectations, had a lot to do with people moving from the fourth quarter to the first quarter because of faster delays and frustrations around that, as I said, we're seeing pretty much UTI is operating the plan. And again, we've owned UTI for sixty years. There's a lot more there's a lot more predictability around what UTI is doing. While we're continuing to turn the dials on testing how much elasticity there is in the demand in the healthcare space. And so as we projected, we see probably larger increase on the organically on the on the Concord side while we continue to do that.

Thanks for that. And then to confirm something from an earlier question, the expense was supposed to hit in 1Q that was deferred out of the quarter $10,000,000 and you're expecting that should all hit in the second quarter.

Maybe beyond that clarification, just how should we think about the cadence of margins over the next couple of quarters implied in the guide?

It's probably maybe $10,000,000 to $15,000,000 and But that's not everything that pushed. We expected to spend more in the second quarter It's that deferred out of the first and into the second. So second quarter was going to be higher anyway. Yes.

And it's even higher because of the timing of the expenses that we didn't get going in Q1 that we're already focused on right now in Q2 and into Q3.

Okay. So the deferred expense is $5,000,000 to $6,000,000 and the sequential increase is $10,000,000 to $15,000,000 Okay.

Yes.

Yes. Yes. That makes sense. [indiscernible] And really, as you said, Go ahead. Yes. I was just following up. Is any color on how we should think about margins in the third and fourth quarter or how you see that trending over the balance of the year?

Christine will handle that one for you.

Contour the margins throughout the year.

Yes. They drop. There'll be in terms of EBITDA margins probably low double digits for second and third quarters and then you'll see our seasonal jump in the fourth quarter will be upper teens is what we'd expect.

All right. Thanks, Jasper. Thanks for calling.

And ladies and gentlemen, with we'll be concluding today's question and answer session. Like to turn the conference call back over to Jerome Grant, CEO for closing remarks.

Thank you very much, operator. We appreciate everyone's attention and taking their precious time out of their day to listen to us. We are looking forward to once again reporting three months from now. Thank you very much.

Ladies and gentlemen, with that, we'll conclude today's conference call and presentation. We do thank you for joining.

You may now disconnect your lines.