Thank you for standing by, and welcome to the Aussie Broadband Limited half-year results. All participants are in listen only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question via the phone, you will need to press your star key followed by one on your telephone keypad. I would now like to hand the conference over to Mr. Phillip Britt, Co-founder and Managing Director. Please go ahead.
Thanks very much. Good morning, everyone, and welcome to Aussie Broadband's FY 2023 half-year results. My name is Phillip Britt, and with me today is our CFO, Brian Maher. I'd like to begin by acknowledging the traditional owners of the land on which we meet today, and pay my respects to the elders past, present, and emerging. I'd also like to acknowledge any Aboriginal or Torres Strait Islanders peoples who are here today, and acknowledge their connection to land, the sea, and sky. This morning I'll take you through the progress of our Aussie 2.0 strategy and the key highlights, including upgrading EBITDA guidance for FY 2023. As you'll see, it was another half of strong growth for Aussie, and we've continued to deliver our plan and are very pleased with the company's overall results.
Brian will run through the financial detail for the half, and then I'll provide detail on each of the segments before opening up for Q&A. During the half, the team remained focused on delivering our Aussie 2.0 strategy, and that will position the company to be Australia's fourth-largest provider of communications and technology services by 2025. We spent a large part of the half setting up the right foundation to unlock the business, enterprise and government opportunity. We believe we're now in a position to accelerate growth in these two segments. Some of our foundational pillars are outlined on slide four, and these build the base for our 2025 ambition. We're prioritizing resources in three key areas. We've continued to leverage our technology platforms, including infrastructure, systems, and fiber network, to lay the foundation for future growth.
Specifically, we've been expanding our fiber networks, upgrading our voice platforms with additional capability, and expanding our cloud capability and infrastructure to take advantage of the move forward to hybrid cloud environments. We've been expanding our team with talented people to help drive our exceptional customer experience and to expand our go-to-market strategy. We're continuing to deliver sustainable and profitable growth, leveraging our infrastructure and automation to drive down costs, increase margins across the four segments. In slide five, we touch on our business model and how we're now segregating the results and businesses across four key segments, being residential, business, enterprise and government, and wholesale. For each segment, Aussie has a dedicated strategy, products, and proposition underpinned by our exceptional customer experience, industry-leading technology, owned infrastructure, and software platforms.
Turning to slide six, we continue to scale our business while expanding our product offerings and diversifying earnings. Firstly, we're creating scale through the delivery of a high-speed network, communication services, and exceptional customer experience. Secondly, we're leveraging our acquired capability in voice, cloud, and security to grow greater market share in the non-residential segments. Finally, we're continuing to selectively invest in fiber infrastructure and technology that generates higher returns while enabling scalability and additional cost efficiencies. I'll now hand over to Brian to talk through our financial and operational highlights.
Thanks, Phil. On slide eight, you can see that we've continued to grow across all key metrics. Noting that the prior year comparisons in this table are calculated by aggregating the first half results of FY 2022 of ABB and Over the Wire. As such, the comparisons on a like-for-like basis removes the inorganic growth benefits arising from the acquisition. On that basis, revenue is up 27% to AUD 279 million. EBITDA grew impressively by 86% to AUD 41 million. It's also worth noting on a statutory reporting basis, the EBITDA for the half exceeded the full-year results for FY 2022. Gross margin increased by 2.5 percentage points to 34.9%, and operating cash flow was up 35% to almost AUD 31 million. Moving to slide nine.
Our operational highlights show that the number of broadband connections increased by 27% to over 635,000. Importantly, our share of NBN services has grown to just above 7%, showing we continue to win market share with our offerings despite the slowing NBN connection market. Our integration of Over the Wire is progressing well, delivering AUD 6 million in annualized synergies. We're on track to achieve AUD 8 million-AUD 12 million in synergies annually by FY 2025. We expect the synergy benefits experienced in the FY 2023 full-year to be AUD 5.3 million. With our 1,100 team members, our one purpose of delivering exceptional customer experience across all segments continues to delight our customers.
Turning now to slide 10, you can see how we are evolving into a communications and technology business and making a positive shift from primarily residential NBN to higher margin segments. This is demonstrated here by the darker green segments of the pie charts. The non-residential segments contribute only 36% of the group revenue, but 45% of the gross margin, and we look forward to increasing that further. Having said that, our residential business remains the engine room, and we continue to proactively manage its growth strategy, focused principally on broadband and mobile, while diversifying products, revenues, and earnings across the other three segments. In slide 11, we outline the key revenue drivers for the first half. Our pro forma basis, FY 2022's first half revenue was almost AUD 300 million.
Residential added just under AUD 50 million in revenue against the corresponding period. The other segments contributed an increment of AUD 31 million against the same period, predominantly through wholesale. In total, an additional 27% of revenue was generated over the prior corresponding period. In slide 12, we show the key EBITDA drivers for the half as we continue to scale and shift our mix across the segments. On a pro forma basis, FY 2022's first half EBITDA was AUD 22 million. Our investment in infrastructure delivered the bulk of AUD 9 million in network savings in the half. The additional AUD 80 million of revenue delivered another AUD 10 million in EBITDA. Acquisition synergy of AUD 2.2 million were experienced in the half. While some of these gains made were in part offset by wage inflation, as we called out at the full-year.
In slide 13, looking at CapEx, we provided an indicative CapEx profile at the investor day. Slide 13 provides an update of actual spend for the half being AUD 31.2 million. Indicatively, we expect a full-year spend of AUD 55 million. In FY 2022, CapEx was dominated by fiber backbone, whereas in FY 2023, CapEx has been focused on growth. Recurring CapEx remains modest, largely relating to replacement and upgrades and software. Growth CapEx of AUD 17.5 million related to customer fiber builds, short-term growth related to connection numbers, and the longer-term investments to provide the base for our future growth. We have a disciplined approach to investing in infrastructure for longer-term growth and will continue with this approach to maximize the benefits to our customers and shareholder returns. Moving on to slide 14.
Operating cash flow continued to grow with AUD 30.8 million generated in the first half, which represents an EBITDA conversion rate of approximately 75%. A little lower than prior periods, principally due to timing of payments and receipts around Christmas. In the half, investing activities were mostly related to growth and fiber CapEx. I'd also like to note that tax payments of AUD 1.4 million are largely recoverable, being paid under the ATO's installment regime. Our installment rate was recently reduced to 0% of revenue. As we head into the second half, disciplined cash management will remain a key focus. I'll now hand over to Phil to take you through our four operating segments in more detail.
Thanks, Brian. Turning to slide 16. In residential, we continue to grow broadband connections and take market share in a slowing NBN connection market. Revenue increased 26% to AUD 243 million, driven by growing connections and a larger share of high-speed plans. We achieved net additions of just over 30,000 services in the first half, which was an excellent result. At the same time, gross margin continued to grow up five percentage points as the mix of higher-margin customers continued to grow, and as we achieved the scaled benefits of the Aussie Fibre network, which now underpins our broadband platform. Our customers continue to positively rate us through public feedback and via our voice customer surveys. This remains a key focus as we continue to invest and transform our customer experience.
As a result, customer churn remained low at circa 1.2%. Turning to slide 17 in the business segment. We continue to grow connections and revenues through a broader product offering, even in an environment where customers on legacy contracts are renewing and moving to lower cost NBN solutions, which impacts gross margin. Revenue grew 7% to AUD 50 million, driven by connection growth, both organic and Over the Wire acquisition and through additional product offerings. Looking forward, we now have a revised marketing approach focused on a complete portfolio of solutions to grow the small and medium business segment. Turning to slide 18. The enterprise and government segment provides high margin, value-added solutions with longer term contracts. Recurring revenue was up 5% to AUD 31.5 million. Non-recurring revenue was down AUD 1.7 million.
As you can see, the revenue base in this segment is modest, we believe there is a significant upside here as we begin to scale. Broadband and data is the entry product for the segment, which allows us to add higher margin products like cloud, voice, security, and managed services once trust is built with the customer. Broadband accounts for only 35% of this revenue in this segment, with the majority of revenue and margin coming from higher value services like cloud and voice. If we look at slide 19 in the wholesale segment. This segment is made up of white label, wholesale voice resellers, and the building block solutions used by our managed service provider partners through our Carbon platform. These services include things like NBN, Enterprise Ethernet, Aussie Fibre, and our NetSec force platform.
The segment grew with broadband connections increasing by 147% to over 85,000 services. Revenue grew 129% to AUD 49.4 million, gross margin more than doubled in half compared to the first half of FY 2022. Gross margin percentage moved, reflected a change in product mix. We continue to invest to improve our partner and customer experience in this segment, this segment is diversified now across a range of customers. Aussie Fibre looking at slide 20. The growth of our Aussie Fibre network has accelerated in the first half, I'm now pleased to announce that 100% of the core network is now completed with over 288 buildings connected.
A further 73 buildings are currently being collocated, and we now have access to over 1,400 nearby buildings that are now within 1 km of the Aussie network. This is an increase over 320% on the prior corresponding period. The next phase of the Aussie Fibre journey is to migrate over 1,000 enterprise services currently on other carriers onto the Aussie Fibre network. Migration test project is nearly complete, and we plan to commence migrating services at scale in May FY 2023. Turning to slide 21. As Brian mentioned earlier, Over the Wire is progressing well and is expected to deliver $5.3 million synergies in FY 2023. This equates to $6 million annualized. We remain on track to deliver our guidance of $8 million-$12 million in synergies by FY 2025, gaining from efficiencies in our infrastructure and technology.
The next phase of synergy realization requires the consolidation Over the Wire network into the Aussie network, and this work is planned for FY 2024. We don't expect any further synergy realization in FY 2023. In addition, we've divested two non-core businesses, generating AUD 6.5 million in gross proceeds. In summing up, look, Aussie has had an awesome first half, and we're very, very proud of the performance of the company to date. We've delivered strong financial performance with growth across all the key Over the Wire acquisition is now embedded into the broader Aussie group, and as we've talked about delivering AUD 6 million of synergies on a run rate basis, on track to deliver our previous synergy guidance in say, FY 2023. Our investment for future growth continues to be disciplined across infrastructure and customer growth.
This has always been the focus of Aussie, we're continuing to grow in every way we can through a range of different products and services. We now have a diverse product portfolio with shifting revenue and earnings mix to our higher margin products and services that fully support a sustainable growth, most importantly, our financial performance is on track. Whilst we've revised revenue guidance to be AUD 780 million-AUD 800 million, we're pleased to advise we're upgrading EBITDA guidance to be AUD 85 million-AUD 90 million based on effective CVC management, disciplined staff growth and strong gross margin performance driven by operating leverage now flowing from the scale of our own infrastructure. That finishes today's formal proceedings. Brian and I'll be more than happy to take any questions you may have.
If you wish to ask a question, please press star one on the telephone and wait for your name to be announced. If you wish to come off your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your questions. Your first question comes from Jonathon Higgins with Shaw and Partners. Please go ahead.
Hi, guys. Congratulations, Phil and Brian. Good set of results. Just a couple from me. Just firstly, just on the NBN, big part of your business. They flagged on Friday that or sorry, the ACCC flagged via the NBN on Friday that there's potentially a new sort of pricing proposal on the table and that they'd look to, I think, their words would be to legislate at ASAP. Can you talk us through what's happening and what, you know, how that may benefit or, you know, affect you guys? Thanks.
Yeah, look, they're currently thanks for your question, Jonathon. The currently proposed NBN SAU in its current form is very positive for Aussie because it skews towards the high speed tiers. What a lot of the discussion's been to date is more around the 50/20 plan specifically and some of the lower speed tiers. There's been a lot of pushback from the larger telcos around improving the price metrics in those lower speed tiers. The ACCC seems to be supportive of that. The ACCC can't do a conditional approval. They can only either accept or reject.
What they've effectively come out and done is said to NBN, "Hey, if you come back to us with a new proposal that addresses these issues, we promise to turn it around quickly and then try and keep things on track for the 1 July implementation." Effectively, NBN has said if this is all approved and signed off by the end of March, then they'll commit to having it come in on 1 July. I see this as a real positive for Aussie. It's not going to get any worse than the current proposal.
Anything that comes on the table now is better, and it's really put the message out there that everyone from at least the regulatory sense is on track to get this implemented for the start of July, which means that we start to see the benefits flow through in FY 2024 for Aussie and other ISPs.
Excellent. Thanks for the clarity, Phil. Appreciate that. Just secondly, just on the guidance, don't know who's best to sort of knock this one off, but, you know, margins have been good in the first half. You're up, you know, sort of plus 50 basis points in the half. You've got a few things coming through from some extra savings on the fiber. You've also Over the Wire synergies plus sort of broad business growth. Can you just talk us through just what is happening on the margins and just bridge out a little bit in the second half?
Look, you just did a great job of it, Jonathon.
Yeah. Look, we are getting really good leverage on basically the benefit of our Aussie Fibre network now rolling through, that skew towards the high speed tiers also helps us in that space. CVC has remained within sort of our tolerances or probably a little bit better than that, which has helped us as well on the margin front. There's sort of not one particular thing you can point to, but ultimately, our EBITDA margin for the first half was around that 10.8%. If you look at where we're guiding to, you can see that growing a little bit further sort of thing. We, we obviously, get the full effects of the Aussie Fibre network flow through into that second half, which helps as well. It's a combination of those factors which give us the confidence in upgrading that EBITDA.
Last one from me, guys, and I'll just join the queue again, but just can you give us an idea on how sort of connections in the broadband market is going for you this current half? Thanks.
Yeah, look, connections to this half are still traveling along really well. We're seeing consistent sales numbers off of January was a great month. February has been running on track as well. Connections are running really good. We're seeing good connections coming through from in the partner space through white label and our MSP partners. We're not seeing any slowdown in connections or anything like that in this as we head into the second half.
Thanks, guys.
Thanks, Jonathon.
The next question comes from John Campbell with Jefferies. Please go ahead.
Hi, guys. Thanks for, thanks for the opportunity. Just a couple of questions. Just to see, you've talked a bit about margins, obviously for H2. Can you just explain and apologies if I've missed it, but can you just explain the downgrade in revenue for FY 2023?
Look, the revenue change for the full-year is we haven't quite hit the growth in mobiles that we perhaps would have liked. That was a main part of it. Effectively the, yeah, that's really the main part. Aussie was the other part. They were a bit slow at the start. So that's sort of now coming through in the second half. Obviously we don't get the benefit of that coming forward. The, they're really the two reasons around the revenue side of things. The normal people's mindsets would be, well, that's obviously gonna affect your EBITDA, but because we're getting an improvement in margin on the way through, that's why EBITDA is up and revenue's slightly down.
Okay. Thanks for that Phil. Just further, just on the connections again, connections for the second half. Obviously business, you know, you've consummated the merger with O2W relatively recently, but you're now approaching the market as one team, one brand and, you know, the new operating model and expanded team are well in place. You know, I guess the general feeling is there's a huge opportunity for you guys in business and, I mean, you obviously say enterprise as well, but particularly SME and mid-markets. To date, we've, you know, for the reasons I just said, we haven't seen the growth yet. Can we really start to expect that the business subscribe will start to accelerate? We'll start to see evidence of that picking up in H2 and then more in FY 2024.
I'd probably counteract that. We have seen growth in the business segment, albeit not as strong as say the residential segment. Where we're putting all of our focus at the moment is predominantly into that E&G segment and the sort of the top end of what we call the business segment or mid-market. Ultimately, we've rebuilt the entire business sales team within that, those two areas. We've rebuilt the marketing function as well that goes into that. A lot of what we acquired with Over the Wire was very much sort of a business that grew through inorganic growth. Aussie was the complete opposite of that, of being a business that grows organically, typically.
We've put all of our learnings into that, rebuilding the team. The actual business development team now that underpins the enterprise and government space is significantly larger than what it was before. Ultimately those deal flows come through our pipeline in the E&G space as well, is growing significantly. Ultimately that pipeline takes a little bit of time to convert. Then once the deal closes, it also takes a bit longer to provisioning because those deals tend to be not normal NBN sort of sales like they used to. They're the more complex products, and so they take a little time to bring the revenue on. Essentially for business and E&G, the last six months was all about foundation building and shoring things up around that team.
Now that that's done, they're well and surely up and running and the pipeline and the, and the names that we're talking to now, very large airlines, other bank type groups, things like that, are very encouraging as to what we're seeing in that area.
Okay. Are you, I mean, in that pipeline business you talk about, you know, banks, et cetera, are there any size customers that you're sort of at this stage precluded from really talking to with credibility? Or do you feel that you, the entire E&G space is potentially open to you?
Look, I feel we have access. The levels of customers we are dealing with are in, some of the leads we've got are in call it the ASX top 20 sort of thing. I don't think there's anyone that we're precluded from dealing with at the moment.
Okay. Just quickly, last question, Phil, from me. Just in terms of the sort of competitive activity that we've seen over the last six months to one year maybe in terms of new entrants in resi broadband and arguably more aggressive discounting and plans. Are you seeing any signs of abatement or stabilization in terms of competitor activity?
The first quarter was busy, as we've talked about on previous calls in terms of competitor activity. The second quarter was quite subdued and we've seen that flow into this financial year as well. I think there's a lot of pressure going on at that low price point end of the market. The area that Aussie typically plays in, we're not seeing that pressure as much. We're quite comfortable that we're continuing to add the same sort of net adds that we've done for the last sort of six, seven quarters in those In those spaces. We're pretty comfortable with that.
Great. I'll just pass it on to someone else. Thanks, Phil.
All right. Thanks, John.
The next question comes from Ian Munro with Ord Minnett. Please go ahead.
Good morning, Phil. Good morning, Brian. Thanks for taking the questions. Just looking at the enterprise segment and your comments around you build for scale. Just in terms of customers wondering the first half, like can you give us a sense of whether there's much contribution from incremental new customers in the numbers? Secondly, how does the CapEx profile you've highlighted some extensive spending into growth fiber tie in with the E&G strategy? You know, what's a reasonable timeframe to expect to see some runs on the board there? Thanks.
In that first half, we haven't seen many of the new wins contribute revenue in that first half. There's definitely been some great deals signed in that, but they were signed fairly late in the half, so they haven't finished provisioning yet. In terms of how that plays into the Aussie Fibre spend, I guess there's two categories in that, and that's the new customer spends or new customer wins. People coming on that don't have any fiber-like services with us today is sort of one category. The other category is the migration of existing enterprise type services off other carriers and onto the Aussie Fibre network. That's where our spend will be over the next period. Both of them. Well, the first one is definitely demand driven.
We need to obviously have the customers to generate the build and thus incur the spend, whereas the other one is more a, we're looking at, as we talked about at the investor day, the clusters and so on of fiber customers that we have that we can migrate. We work through those on a case by case and business return type basis. We're halfway through building our first pilot, which includes 20 businesses in the Brisbane CBD area. That's giving us all the learnings from not only a cost perspective, but how we interact with customers. The really pleasing part about that piece was that all of those customers we ended up going to and recontracting onto Aussie Fibre.
What those conversations did was open up further conversations around our other products, and we actually ended up selling them more products as part of the migration. This is an opportunity for us to touch and talk to our customers again and basically further deepen what we're able to do for them and obviously improve the revenue. E&G, we see very much as it's at the very starting line here. We're just basically to start the race on that one and it will build and grow over time. It's not a quick wins type area like what residential is. It's a slow and steady burn that then once the snowball starts to move, really takes off. I'm really bullish on the E&G opportunity.
Thanks. Just thinking about the broader business and, and indeed at a segment level, you know, we saw an increase in the operating costs, you know, sort of six, nine months ago to facilitate some of this growth. You know, sort of where are you at as a, as a business now in terms of, you know, we're looking at more like OpEx to revenue type ratios. Is there another step change coming in operating costs to support this growth? Just a bit of clarity would be great. Thank you.
Yeah. Look, we've sort of gone into this next budgeting year on the basis that we're going to try and hold our key headcounts fairly steady. We believe we've done a lot of our big start-up lifts that we needed to do in that space, and we think we can get some leverage out of that area. There's obviously staff that directly relate to as you grow customers, you need to have those staff, like in our customer service teams. But for a lot of our areas now, we believe that we've done the ramp up that we need to do, and we wanna see the returns start, basically start to throw growth from that investment. Then if there's opportunities to go further, we will.
It's sort of like, okay, we think we're at about the right point now, let's get the growth from that. If we think there's more growth, well, we'll go after it. Let's see the returns from that first.
Thanks, Phil.
No worries. Thanks, Ian.
The next question comes from Joaquin Brown with Credit Suisse. Please go ahead.
Hi, Phil. Hi, Brian. Thanks for your time. I might ask another question on the margins. If I take the midpoint of the guidance range, it broadly suggests that your EBITDA margin should grow to about 11.3% in the second half. Should we view this margin as a base going forward, or is there seasonality that we should take into account?
There's no particular seasonality in that. We, you know, I think we do see opportunities to expand margin over time with some investments. But, yeah, I think probably the improved margins coming from those investments we've already made, and how we continue innovation is kind of a scalable network now. A lot of our volume is added for very little incremental network costs. So we do see some scope for that to grow a little bit further. Obviously I'm gonna put numbers on that at this stage 'cause we're just going into our planning cycle for next year. But to specifically answer that question, you can take that as a base, yeah.
Thanks. Thanks, Brian. That's very clear. Just on the 25,000 broadband connections that were added in the second quarter, can you just provide any color on the drivers of that number? I'm just trying to sort of understand if there was much benefit that there was from competitive price increases that flow through or even from the Optus data breach.
There was a modest increase in mobile subs, from the Optus data breach. Like we saw, sort of an influx for about 10 days, post all the news headlines and so on, then it pretty much died off again after that. We don't believe there was really much broadband flow from the data breach piece. The price rises, like even still when you compare our pricing to the likes of Telstra and some of the other more extensive players in the market, we're still pretty much at that top end of that pricing. Most of their price rises have flowed through now. We're not seeing any change in our gross adds and things like that. We take that it's we've continued to do this quarter after quarter around the growth, it doesn't seem to matter too much what gets thrown at us that we continue to achieve those numbers.
Perfect. Thanks, Phil. This is my last question. On the enterprise and government segment, 5% recurring revenue growth. Can you just talk about what products within that are driving that growth? Maybe oppositely, are you seeing any challenges from a competitive environment, particularly in broadband and data?
The initial growth in that... Look, I don't have the specific breakdowns, but my gut feel is that it's probably in the data segment. As I sort of said in my opening remarks, data is really the entrée into the rest of the products. Typically what we've seen, particularly even with one council deal, we did the deal on data. We hadn't even finished provisioning the data deal, and then they were already talking to us about cloud and security. Yeah, that bit of growth in that I think is in the data space, and I see that as a positive just for the entrée into the rest of the products.
Easy. Thanks for your time.
No worries. Thank you.
The next question comes from Mark Devcich with Discovery Funds . Please go ahead.
Yeah. Hi, guys. Congratulations on the result. Just two questions. Firstly, the Zintel phone box sale, I think when Over the Wire had that business, it was doing about AUD 15 million in revenue. Just wondering, has that come out of the revenue guidance, giving you selling?
Yes. I think the by the time it's settled, it's only a quarter of revenue that we lose. Yes, our guidance has taken that into account.
The other part of that is that it's not the full phone box Zintel mix. It's only one particular component on it. If they were disclosing, total revenues before, it's not the full revenue stream that's going.
I think we talked about the wholesale agreement, which is also some revenue coming back the other way.
Great. Zintel, who's buying the business, yeah, is gonna have core revenue with this as well.
Yeah. Got it. Okay. Second question, just on the price rises that some of your competitors have been doing. Is that something, I guess, you're thinking about in the second half, given, you know, cost pressures across the industry? Or are you kind of willing to hold the line on price and then take more share?
Look, our position's been basically to wait and see where the NBN SAU finally lands. I think we're gonna see that in the next month, all going well, and then we'll basically go from there. We believe there is the ability to change. If the SAU follows through as it currently stands today, then we would absolutely be seeing price rises in the 50, 20, and below tiers. The 120 and above tiers would be quite fine. It all comes down to it now really whether they do anything in the 50, 20 space. Our theory has always been basically move with certainty so that we don't create an unnecessary churn event, if by chance if they do move on the 50 price tier, which is now looking like it might be possible.
Right. Are you expecting changes on 50 and 20 or just 50?
We're expecting the change will be on the 50/20 tier. It's probably confusing language there. There's the 25/5 tier. I think that'll probably stay what they've proposed, but I think the main changes will be on the 50/20 tier. Yeah.
Okay. All right. Thank you.
Thank you. There are no further questions at this time. I'll hand back to Mr. Britt for closing remarks.
No worries. Thanks very much, everyone, for participating today. Really, really pleased with these results. I think the key message here is that our wheelhouse of resi and wholesale is running strong. We've refactored the business and enterprise segments now and are getting them ready for growth as well. I look forward to catching up with you again, and hopefully we'll have some excellent results in that business and E&G space to then match what we've done in the resi and wholesale segments. Thanks again, everyone.