Macquarie Infrastructure Holdings, LLC
Q3 2012 Earnings Call Transcript

Published: 5 Nov 2012

[Operator:]

Good day and welcome to the Macquarie Infrastructure Company Third Quarter 2012 Earnings Conference Call. Today’s call is being recorded. At this time, I would like to turn the conference over to Mr. Jay Davis, Managing Director, Investor Relations. Please go ahead, sir.

[Jay A. Davis:]

Thank you, Raleigh. Thank you, everyone, and good morning. Welcome once again to Macquarie Infrastructure Company’s earnings conference call, this covering the third quarter of 2012. Our call today is being webcast and is open to the media. In addition to discussing our quarterly financial performance on this call, we published a press release summarizing our results and filed the financial report on Form 10-Q with the Securities and Exchange Commission. These materials were released last evening and may be downloaded from our website, www.macquarie.com/mic. Before turning the proceedings over to Macquarie Infrastructure Company’s Chief Executive Officer, James Hooke, let me remind you that this presentation is proprietary and all rights are reserved. Any recording, rebroadcast or other use of this presentation, in whole or in part, without the prior written consent of Macquarie Infrastructure Company, is prohibited. This presentation is based on information generally available to the public and does not contain any material non-public information. The presentation has been prepared solely for information purposes and is not a solicitation of an offer to buy or sell any security or instrument. This presentation contains forward-looking statements. We may, in some cases, use words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements in this presentation are subject to a number of risks and uncertainties. A description of known risks that could cause our actual results to differ appears under the caption Risk Factors in our Form 10-K. Our actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks, of which we are not currently aware, could also cause our actual results to differ. The forward-looking events discussed in this presentation may not occur. These forward-looking statements are made as of the date of this presentation. We undertake no obligation to publicly update or revise any forward-looking statements after the completion of this presentation, whether as a result of new information, future events or otherwise, except as required by law. With that, it is my pleasure to introduce Macquarie Infrastructure Company’s Chief Executive Officer, James Hooke.

[James Hooke:]

Thank you, Jay. Good morning and thank you all for participating in our earnings conference call this morning. Let me begin by saying that our thoughts and our prayers are with all those whose lives have been affected by the severe storm here in the Northeast. The MIC staff and those who work for our operating companies have all being accounted for, and thankfully we have no reports of severe injuries or worst at this time. It certainly has been a challenging few days for MIC and our operating businesses. We’ve seen the full force of Mother Nature over the past week and seen our emergency and contingency plans tested. Last weekend, while the East Coast was focused on the possible impact of Hurricane Sandy, our team in Hawaii was dealing with the tsunami warning resulting from a 7.7 magnitude earthquake off Alaska. Fortunately that turned out to a very minimal impact on the islands. As the weekend progressed and the week began, we turned our attention to Hurricane Sandy. Although, we don’t yet know the full extent of the damage caused by the storm at this point, it’s clear that it’s had an impact on both IMTT’s operation at Bayonne and Atlantic Aviation’s operations at Teterboro, Farmingdale, Bridgeport and the New York City Heliport. The heliport was particularly hard hit. Importantly, so long as our people and their families are all safe, we’ll work with our insurers and contractors to take care of the property damage. We’ve been in regular contact with the management teams at Atlantic Aviation and IMTT. In relation to IMTT, we received a full briefing from CEO, Tommy Coleman, and COO, Rick Courtney late yesterday. At this point, we know the following about IMTT

[Operator:]

(Operator Instructions) Our first question comes from Andrew Gadlin of CJS Securities. Please go ahead.

[Andrew Gadlin:]

A question. I wanted to follow-up regarding the damage from Hurricane Sandy. It sounds like you’re insured from the majority of the damage or actually a good portion of it. Do you have a sense for how much more beyond your insurance deductible the damage could be and the timing of when you’ll be back to business as usual?

[James Hooke:]

Thanks, Andrew. Look, it’s a – it’s a good question. The thing I would say in this – in relation to this is it’s a moving target. Tommy Coleman and Rick Courtney gave us good briefing yesterday and Dick Fisette, who is the terminal manager. Dick has been working – I don’t think he slept since the storm, and they’ve done a tremendous job in both preserving the assets and getting things back up on line. The insurance deductible is $2 million, so I’d say the potential hit is that $2 million. There maybe a little bit more that falls outside the scope of it, but at this point in time, we think we’re pretty well insured and pretty well covered. In terms of when things get back up and operational. The electricity utility is saying maybe some time over the weekend or on Monday. The auto, sorry, the New York Harbor is probably closed until at least Friday if not longer. We don’t have any visibility into when Colonial and Buckeye pipeline will be up and running. So if you ask me to sort of take a step in the dark, on the back of that, I would say it’s probably the middle – sometime early to the middle of next week before things are sort of properly up and running. We’re really keen to get the electricity back on so that we can actually determine how many and which pumps we need to replace. We’ve got obviously a number of spare pumps in inventory and we’ve been moving pumps from around the country, from our other sites and from other suppliers. So there’s a bit of lead time to actually when you work out which ones the saltwater damaged you’ll need to replace. Some of the ones that we know have damage were in the process of sort of cleaning and seeing if we can rehabilitate. But at this point in time, you know the guys are doing all they can do. To some extent, we’re also bringing diesel pumps in as well so that we’re less beholding on the electricity. But to some extent when the IMTT Bayonne gets up and operational, it’s more in the hands of the Coast Guard opening up the harbor and the electricity utility than anything IMTT is doing. These guys have a phenomenal commitment to customer service. So the first opportunity is that customers have to try and move product in and out of our facility. I’m sure they will be bending over backwards to accommodate it, but my stab in the dark is sort of early next week. Our assessment of what the various authorities are doing at this point is trying to delay the time at which they bring services back online, and I think the longer they keep the harbor closed, their view is the more they can really get a whole bunch of cleanup done in one quick effort. I’m amazed at what both the emergency services, but also our own teams have been able to achieve just during yesterday and the day before in terms of cleanup. So I’m still hoping that by – certainly by this time next week, we’re relatively back to normal, but time will tell, and that’s an issue that hits both Atlantic and IMTT. At Atlantic, look, the potential insurance deductible is probably in the sort of $300,000 range, but until we know the exact nature of the damage and the exact location, I give that as sort of shape, which is sort of, I think there was some shareholders who on the back of that news that, there was a news article that came out online yesterday. There was a bit of a sort of panic about. I’m not quite sure why people got excited about that as they did, from our perspective, that article focused on berth damage at IMTT. And as I said in my prepared remarks, whilst the guys at IMTT are losing sleep because they are repairing things, I don’t think they’re really losing sleep about access to berths and dock damage. So I hope that’s given people a bit more shape around what we’re expecting to see.

[Andrew Gadlin:]

Yeah, thanks. And just in terms of financial impact or…

[Todd Weintraub:]

Yeah.

[Andrew Gadlin:]

…really to your business in terms of the go forward operations. How would you differentiate between Atlantic Aviation, where it sounds like there’s a bit of business interruption versus what you have at IMTT?

[Todd Weintraub:]

Yeah, I think that’s a good way of characterizing it probably at this point in time. I think certainly at East 34th Street, the heliport will have a business interruption. It’s a pretty small site in the scheme of things. They toiled heroically at East 34th Street to make not much money, so it’s not going to be a – I don’t think it’ll have a significant P&L impact. I think if you look at sort of Bridgeport and Teterboro, that’s probably – especially Teterboro is where we want to kind of get up and running as soon as we can. I think we’ve had some offsetting windfall because Stewart has been much busier than it normally is because it’s the only airport available. So there’s a bit of swings and roundabouts in all of this. And I’m also expecting to a degree, though time will tell whether this is a valid expectation, that we’ll have a bit of a sewage-backing activity in the next couple of days. As typically storms like this, everyone has to put off a whole bunch of travel, and then there’s sort of a degree of pent-up demand for people to get out there and hit the road again when they’ve got to catch up on the business that they lost for last week. So there will be some business interruption at East 34th Street. I suspect a bit at Bridgeport, and there has been a bit at Teterboro. How much of that is sort of, there’s a natural sort of elasticity in the timing of demand that we see it sort of snap back. Hard to say at this point in time, but I think – and this may change and I want to caveat that as more information becomes available, we’ll share it with people. I think what we’ve seen is, the storm has been catastrophic to people’s lives in the Northeast, and it’s done damage to our property. But at this point in time we don’t see it as having a – it will clearly have some financial impact as a one-off, but we don’t view at this point that that impact is going to be hugely material.

[Andrew Gadlin:]

Got it. And then IMTT, I mean, I assume you’re still collecting your typical rates, rent rates for the tanks even if the customers can’t have access to it. Is that right?

[James Hooke:]

Look, sure, the way I characterize that is, if they’re storing their products in our tanks and we’re keeping that product really safe, so we are providing this service. It’s a bit like if you rent an apartment building and because of the crane that’s on 57th Street, they won’t let you into your apartment, you’re still renting your apartment and you got your furniture in there. So that would be the sort of analogy I would draw that we’re sort of doing it, and we’re putting an enormous effort into keeping people’s product safe, secure. We’re keeping the heating going of the tanks that need heating. So there’s an enormous amount of work going in, and I think our customers appreciate that. I mean, it’s not – if the harbor is closed, as influential as the IMTT management is, they can’t open New York Harbor. I don’t think our customers kind of get that. Well, I hope they do. So look, it is a – it’s a moving – it’s all kind of moving, and we’re trying to get as much information as we can and that information you sort of – it’s a bit like on a broader scale with the storm, each hour brings a new anecdote.

[Andrew Gadlin:]

Got it. Thank you very much.

[James Hooke:]

Thanks, Andrew.

[Operator:]

Our next question comes from John Ellison of BB&T Capital Markets. Please go ahead.

[John Ellison:]

Good morning, guys.

[James Hooke:]

Good morning, John.

[John Ellison:]

One question I had is, kind of related to the nature of your insurance for each of your businesses. I want to know, does your insurance only cover damaged property or are operating costs considered as well?

[James Hooke:]

In each – I think the first thing, so without going in too much detail, damaged property is the main thing we’re focused on. We’ve got a bit of business interruption in insurance, but if you think about the number of days that it typically has to cut in by I don’t get too excited by the sort of insurance windfall. I’m sure given how heavily insurance companies have taken it in the short-term over the last week that there will be a little bit of to and fro between everyone and their insurer. But I’m pretty comfortable, we’ll collect from our insurers what we’re entitled to, given the nature and the strength and the quality of the relationships we have with those insurers through insurance procurement. But we do have some business interruption in insurance, but it sort of typically cuts in after a few days, a fair few days that I think, within the sort of three to five days that we’ll be – five to six days we’ll be offline. I don’t know that it will move the needle too much one way or the other.

[John Ellison:]

Right. And then l guess switch topics, for Hawaii Gas, do you plan to transition using mostly LNG in the long-term, and if so, could you give some color on the timeline for that transition and discuss the potential CapEx required?

[James Hooke:]

Yeah look, I think at this point in time, we don’t know the answer to that. We certainly are trying to create that optionality. The reason I say that is obviously, whether we transition all of the current naphtha supply that supplies the SNG plant in Oahu to LNG, is contingent on the number of approvals and the acceptance of the Hawaiian community and regulators broadly. We’d like to, so the stage we’re announcing now is the sort of emergency backup. If we move down the track to a sort of more full scale implementation of LNG to both not just displace our own naphtha use, but also to supply gas to the electricity generating sector in Hawaii, which is something we would love to do. Then we are talking about a more substantial capital commitment, but that’s in the sort of three-year time horizon rather than anything immediately, and that sort of three years from when you get approval and when you get approval is a moving target.

[John Ellison:]

Right.

[James Hooke:]

So that amount is sort of a long way off in the distance. It’s probably in the $200 million-ish range as where it’s a $300 million, as to whether we do that all ourselves or in partnership with someone. There’s a lot of moving parts. We will probably project finance that sort of development. So I don’t think in terms of our capital management at the moment, it’s really – I mean, it’s on our radar screen, but it’s not in the Excels. We’ve got it in the back of mind. We don’t have it in Excel spreadsheet as price when that cash is going out the door. The reason I’d say we’d like to do it is actually it really does benefit Hawaii enormously, and the reason we sort of think it’s worth pursuing and making the investment and the effort we’re making at the moment is we sort of think it’s one of those things that’s aligned, which is – will be great for our business and we think it’s got a good probability of success because we think it’d be good for Hawaii. If it wasn’t going to be good for Hawaii, it would be one of those things you are pushing uphill with a straw, but instead I think, we’ve got hopefully a good chance of having it, but there is a number of discussions that have got to take place in Hawaii to bring it above.

[John Ellison:]

Okay. Well, thank you so much.

[James Hooke:]

Okay.

[Operator:]

Our next question comes from Brendan Maiorana of Wells Fargo. Please go ahead.

[Brendan Maiorana:]

Good morning, guys.

[James Hooke:]

Hi, Brendan.

[Brendan Maiorana:]

James. Hey, James a question for you. So just broadly, if I look at IMTT, you guys have done $172 million of EBITDA for the year. Your guidance is $230 million to $240 million at the midpoint. It suggests that you’ve got EBITDA which is moving up in the fourth quarter, and so I presume that that confidence of the fourth quarter EBITDA guidance is just given that you’ve got these long-term contracts that are in place, and even if you don’t get some of the ancillary revenues and more of the periodic income, you still feel really good at the low end. Is that a fair characterization?

[James Hooke:]

Yeah, and I think that’s a very fair characterization. We’ve got some CapEx tanks that we’re constructing that come online in the back end of the year. And we start earning when they come online. We’ve got the full year benefit of price escalators that have already come online. So we should see some good momentum on the earnings – on the EBITDA side, so we’re confident at the bottom end.

[Brendan Maiorana:]

Do you think that the impact from the storm can actually make the availability of supply of tanks – make demand a little bit tighter? I mean, can this be something that causes less new supply long term, and actually makes either a longer term, could potentially be a positive for your business?

[James Hooke:]

I think that’s a really good question, and it will take us time to know. I think one of the things I’d say is it should potentially be, and one of the reasons I say that is, I think everyone over time starts to run their supply chains leaner and leaner and tighter and tighter, expecting that sort of stable world will continue as it normally does, and so people at the margin sort of cut back on the amount of inventory they have in their supply chain because they don’t want to have too much working capital. I think what we’re going to see now, and you sort of see gasoline in the New York market suddenly becoming quite tight, and there are these stories as to where people are going to be able get gasoline from, all of a sudden these people realize that actually the inventory levels you need to hold have to take into account some degree of external shock to the supply chain. So I think these things probably move in cycles. But I certainly think anyone who’s been through this, and if there is this – there’s more potential for extreme weather going forward, then I think, people are going to need to think through how much storage they have and they probably have run it down to a level where they may want to rethink that. So that would be the thesis on which things get a little bit tighter going forward, but we’d sort of need to see that play out.

[Brendan Maiorana:]

Okay. And with respect to the, your 50% partner in the business and the dispute resolution, is it now – are – have you talked to the other shareholders and is it – I mean, is there any concern or is there any consideration that the disputes that happened earlier in the year are going to crop up again or are you guys with like mind with respect to distributions going forward?

[James Hooke:]

Yeah, look, I think we’re on the same page. I think we’ve gone through a period of discussion disagreement. We’ve had very good discussion and engagement all this year and I give them sort of credit for even while were in disagreement, we were still talking. And so I think we’re sort of cautiously optimistic that we’re now moving forward and we’re all on the same page. And certainly we’ve had good discussions and I think there’s – we all know where the others coming from and we have a good understanding of what we want to do and how we want to take the business forward.

[Brendan Maiorana:]

Sure. And then, just last one for me. I mean, I guess, there’s an order of congratulations, given that the performance fee is now payable. So that’s been in several years of making up that – the share price declines and a lot of nice increases. Has there been any – do you have any sense of what the managers’ view may be of potentially taking the fees both the base fees and future performance fees in cash as apposed to stock as they’re currently doing?

[James Hooke:]

Let me deal with the performance fee. One I think the managers’ practice is pretty well articulated that it will take the performance fees in cash, I’m sorry, in stock. And so, that’s my understanding there. On the base fees, I think my – there’s a sort of commitment to take the base fees in stock until Atlantic is refinanced. Post what happens after Atlantic is refinanced, don’t have a clear heads up yet as to what the manager will do. But obviously in the process of refinancing Atlantic and the nanosecond after it’s finished, we’ll have discussions on that. So I think what we’ve done is make sure that when we size the distribution that we’re paying now at $2.75, we sized it such that if the manager chose to turn off taking it in shares and took it in cash the distribution would be sustainable, whilst we’re obviously nudging behind the scenes to see what we can do. So I’ll probably get kicked for saying this.

[Brendan Maiorana:]

Okay. So, if you just look at your businesses without – or – if you look at your existing operations and what do you think the core growth rate is in a normalized economic environment because there’s been a lot of movement in your business in the capital structure, in the number of businesses that you have over the past couple of years. I mean, it’s been difficult to sort of think about steady state. But if you just think sort of steady state, what do you think the level of cash flow growth that your current type of operation should be able to spin off annually?

[James Hooke:]

Sure. The way I sort of look at it is historically from like the back end of 2008 to today. We’ve done about 14%, 15% free cash flow growth from the four businesses we have today in the proportion we have. And that’s got a degree of cyclicality because obviously Atlantic went down and neither has come back up from the back end of that. So on a trailing 12 month basis to December 2008 to trailing 12 month basis this year, we’re sort of being in that 14%, 15% range. I think that necessarily slows to a degree. And so the figure that I use partly because I’m a little lazy on this sort of stuff is 10% free cash flow growth per year because it’s easy to do the math on. But I think that’s roughly where it will come at. I don’t think 15% if you look at the nature of the businesses we hold. I don’t think it’s going to continue to grow at that rate. Having said that, if you look at the businesses, Atlantic, we see good recovery going on and continuing to go on, at Hawaii Gas, we see further upside from where we’re at today, we’ve got a number of initiatives in the pipeline. At IMTT, we still see good pricing power. I don’t think that we’re on track to do like 7% this year, which is going to be similar to what we did in 2010, but down on 2011, but still good pricing power. So I don’t think we’ll probably be at that and we’ve also got good CapEx projects coming online at IMTT that deliver earnings growth. So I don’t think we’ll be at the, I think it’s hard to sustain 15% per year free cash flow growth, but we’re going to get 17% this year in an underlying basis. So the number I use from a sort of steady state basis is 10% because it’s – partly because it’s lower, we’re at most and partly because it’s just easy.

[Brendan Maiorana:]

Yeah, so I mean do you think 10%, there’s probably some fees that I mean, maybe if your underlying business is actually generating 12% or 13%, there’s probably some fees that will get you down to 10%? And the way we would think about your company is, you’ve got that 10% kind of cash flow growth and then you’ve got your dividend as your total return opportunity. Do you think that your – is that story resonating yet with yield oriented investors or do you still think you’ve kind of got the opportunistic investors that just see the value of the shares today?

[James Hooke:]

I think there’s two things I’d say, we’re transitioning and so we’re going through that period of transition. I think we’ve – as we talk to more yield oriented people, I think the story definitely resonates. I think when I said that refinancing Atlantic I think will make the story resonate still further. But I think one of the challenges that some of the yield oriented folk have is they love the story, but they didn’t look at the liquidity and the stock and the average days trading. And they find it difficult just to get enough volume. I think what’s happening there is, I love them dearly. Our current shareholders are being very loyal and there’s therefore not much liquidity because I think they see value well in excess of where we are today. And then we see other folks sort of wanting to get in, but there’s not that much liquidity. The one benefit of sort of articles like yesterday’s erroneous article on the damage to IMTT is, it suddenly puts a little bit of liquidity in your stock and I think like in a heartbeat, it put liquidity into our stock. But I think we’re seeing transition in the register. I think it’ll just take time and I think because the guys, the feet-folks who didn’t understand the story, I think by definition better than people who aren’t in and they see good value growth as we continue to get our house in order.

[Brendan Maiorana:]

Okay. That was very helpful. All right, thanks, guys.

[James Hooke:]

Thank you.

[Operator:]

Our next question comes from Sameer Rathod of Macquarie. Please go ahead.

[Sameer Rathod:]

Questions. First on additional acquisitions, I guess, you’ve gotten to the point where you’re earning a performance fee. It seems like that IMTT issue is behind you. Can you give us some thoughts on what kind of additional acquisitions you would do? Would they be in existing business lines or would they’d be something new?

[James Hooke:]

Yeah. It’s a good question Sameer, thanks. Thank you for it. I think the way I see things at the moment and I think the board are on this page is, we see a lot of upside for our existing shareholders from the portfolio we have today in getting our house in order. So we’re not hugely excited about issuing capital where we’re at today because actually we think our shares should improve. So the focus for us is on dealing with final issue of getting our house in order as I would characterize it, which is the refinancing of Atlantic and getting the capital structure of Atlantic right. I think we’ve got the capital structure of the other businesses pretty right and Atlantic’s not. Once the capital structure of Atlantic is right, I think we can do two things; one, we can increase the dividend; and secondly, we can then hopefully, see the yield compressed still further as people realize that it is a much simplified and safer story. And I think it’s at that point that we would look to get into – when we grow up, we might look to go shopping at some stage, but we’re not out there at this point in time. We look at everything that we can just to see what’s happening in the market, but we’re not shopping at the moment.

[Sameer Rathod:]

Great, great. Maybe I want to focus; my next question is on the performance fees focusing on that a little bit more. To my understanding, it’s 20% of the outperformance to the U.S. MSCI Utilities Index, is that still right?

[James Hooke:]

That’s correct.

[Sameer Rathod:]

Okay. Okay. Okay, that’s it from me. Thanks.

[James Hooke:]

Okay. Thanks, Sameer.

[Operator:]

Our next question comes from Louie Reformina of Waterfront Capital. Please go ahead.

[James Hooke:]

Hi, Louie.

[Louie Reformina:]

Hey, all question is been answered. Thanks though.

[James Hooke:]

Sure.

[Operator:]

Our next question comes from Ian Zaffino of Oppenheimer. Please go ahead.

[Ian A. Zaffino:]

Thank you. Just two quick questions and the first one would be a follow-up on the just the revived aviation. As you went shopping would you look at aviation as kind of a source of funds?

[James Hooke:]

When you say as a source of fund, I’m not sure I get that.

[Ian A. Zaffino:]

Sorry, and would you shop that piece of business?

[James Hooke:]

Oh, you mean, spin it out?

[Ian A. Zaffino:]

Yeah, sell it, spin it out, something. Because we do have to monetize it in a way that you could raise funds to go buy something else to go shopping?

[James Hooke:]

Yes, look, I think, as we say in relation to all our four portfolio companies. We love them all dearly and we’re committed to them all. But obviously we considered the strategic options with all of them. And that’s clearly one that comes up because Atlantic is the most different of any of the four businesses and we’d always keep that option on the table if it made sense. But I think at this point in time, it’s not actively on our radar screen as something we’re pursuing, but it’s always there as an option.

[Ian A. Zaffino:]

Okay. And then as far as just going back to IMTT on the – how you might be impacted by Sandy? It seems like you’re still reiterating at least the bottom end of the guidance. That means that the impact is somewhere less than $10 million on EBITDA side. Is that the way to think about it?

[James Hooke:]

Yeah. Yeah.

[Ian A. Zaffino:]

Okay. All right, thanks.

[James Hooke:]

Thanks for that, and look I hope things in Long Island okay for you.

[Ian A. Zaffino:]

Yeah, yeah, they’re getting there – they’re getting there. The building is still flooded though, so a couple of weeks for that.

[James Hooke:]

Okay.

[Operator:]

I’m showing no further questions at this time. I’d like to turn the conference back over to Mr. James Hooke for any closing remarks.

[James Hooke:]

Look, thank you once again for your participation in our update call and for your continued support of MIC. As always, we welcome your comments and follow-up questions. I’d like to thank the lenders to all of our businesses. They’re key business partners to us, and I enjoy working with them to grow and strengthen our business. I’d like to thank the management and staff and personnel in our businesses who continue to work hard and passionately with us as they do, especially the team at IMTT and Atlantic this quarter, who have dealt with the Sandy issue. I’d also like to thank our Chief Accounting Officer and Vice President of Finance, Rob Troy who hasn’t been home since Sunday night, has been in here preparing the queue and the press release for filing given the damage out to Long Island. He’s wearing an, I Love New York clothing because the only shops you could find clean clothing at were the tourist shops that were in Midtown, but a fantastic commitment even from someone in the back office in finance to get the results forward. We look forward to providing you with an update on our results for the full year in February and prior to that as events require. As always, please feel free to contact us with any questions you may have along the way or any suggestions as to the way we could improve that business. Thank you.

[Operator:]

Ladies and gentlemen, this does conclude today’s conference. You may all disconnect. And have a wonderful day.