Good morning. It's Stewart Tully here, Chief Executive Officer of Alliance Airline s. Thank you for joining the Results Presentation for the Half-Year, 31 December 2024. Joining me today is Scott McMillan, our Managing Director, to my left.
Good morning, all.
To my right is our Chief Financial Officer, Andrew Evans.
Good morning, everyone.
This morning, we will walk through the results presentation, which is available on the ASX website. At the end of the presentation, there'll be an opportunity for questions and answers. I'll hand over to Andrew now to kick off the discussion.
Thank you. Good morning, everybody. Slide two, please. I believe everybody can see slide two. As it says there, we had very strong revenue and profit results on the back of increased flight hours as we've added aircraft to our operating fleet. All numbers are comparative to the same six-month period to December 2023. Record revenue of AUD 339 million, up 11% on the same comparative period. Earnings before interest and tax and depreciation amortization of AUD 101.2 million, up 26%. Profit before tax of AUD 41.3 million, up 9.5%. Operating cash flow adjusted for our aircraft acquisitions, which has traded inventory of AUD 27.2 million. Our flight hours of 58,362, up 15%. We now have 76 aircraft in service, up six from the comparative period of 70 for the last half. Just quickly, we're walking through our revenue streams.
As we said, 98% of flights operated by Alliance are operating on long-term contracts, so very solid revenue base. Our contract and charter business continues to be the stable and important backbone of our business and showed very good results compared to previous periods. Slight decrease in revenue, really around the movement in fuel price and offset by CPI, but the fuel prices have passed through, so no direct impact on either data. Very stable results there. As we alluded to or announced in the half, BHP Nickel West was moving to full care and maintenance in December 2024. We saw some slight downturn in hours during the period. I will see the full effect of that impact in the second half of this financial year.
As we said there, there's no major contract renewals during the period as we've got most of it locked in for this half. Pleasingly, our wet lease revenue grew by AUD 32 million, up 25% as we increased our wet lease with Qantas and Virgin . We now have 29 aircraft operating for Qantas at the end of the half, and we've delivered the final one under their option earlier this week. We're at full complement of 30. The other hours are pretty well on par with the same comparative period. Ad-hoc charter, a little bit down compared to the period as we had a reduction in our capacity as we just supported the contract and wet lease part of our business. We see that capacity returning, so we hope to see an increased additional ad-hoc charter in coming periods.
Aviation services are fairly quiet as normal in the first half of the year with revenue of AUD 4.9 million. We see this as an area where we will expand our business and capitalize on a very asset-rich business. I'll pass over to Stewart Tully to talk about operational metrics.
With the increase in our E190 fleet, we're now taking advantage of the capital expansion program. Below, we can see in the Fokker fleet, we had 38 aircraft. That is made up of 24 Fokker 100s and 12 F 70s. In the Embraer fleet, we had 38 Embraers deployed. Within that 38 aircraft, four of those E190s are on dry lease at the moment. Andrew spoke a little bit in the last slide about flight hours. In the data below, you can see our flight hours grew from half in 2024 from 50,793 to 58,000.
As a percentage, you can see that there is a little bit of a switch there with contract revenue as a total percentage of revenue has gone to 45%. That is due because of the increase in wet lease hours as a total percentage of our revenue and income. Next slide, Andrew.
All right. This is a moderator slide. Please move to the next slide, thanks.
Today, we've included a slide on industrial relations. Industrial relations has been a significant amount of time for our management at Alliance to manage over the last 12 months. We have had some positive news on the enterprise agreement negotiations with the completion of Brisbane Engineers, Queensland, and South Australia pilots along with Perth cabin crew. We are awaiting fair work approval for those Queensland, South Australia pilots and Perth cabin crew. It has been a difficult year. For the first time in Alliance's history, we did experience a protective industrial action with our Brisbane Engineers. That created a very difficult time for our customers and for our business in general. The message here today is the result of these enterprise agreement changes and the agreements that we've reached, there is an impact on our cost base.
A forecast for the EA for FY 2025 is an increase of 7.5%-8% of our total labor and staff costs, which is significant. That is on top of our already agreed CPI increases that were applied during the year. IR continues to be a problem for not only industry, but whole commerce across Australia. Hence why we are highlighting it today. We are continuing to work with our staff and our unions to negotiate further enterprise agreements as they come due. Next slide.
All right. Referencing slide seven now, which is the income statement. I've already spoken at the high-level numbers at the start of the discussion. Nothing really too other than that to talk about. Profit numbers and revenue numbers, very solid and as per expectation. I won't go into any more on that. Referencing slide eight now, the balance sheet. I think the important note here is that our net assets have increased by 7%, up from AUD 410 million to AUD 440 million, which continues to show the strength of this business and have been asset-rich. We have seen an increase in our inventory, but that is driven by the purchase of aircraft that we will be tidying out or selling, which totals AUD 43 million. The underlying inventory actually dropped by AUD 19 million. We have continued to embark upon our acquisition program of aircraft, as we've previously alluded to.
We have settled seven aircraft during the half, four which were in inventory and three which have gone into property, plant, and equipment. This will continue into the second half of 2025 and also into FY 2026. Importantly, and a number that is focused on is net debt. Our net debt increased from AUD 306 million to AUD 425 million as we borrowed AUD 112 million to fund the purchase of the seven aircraft and also two additional hangars in Brisbane. We had repayments of AUD 3.7 million as well, making it a change of AUD 425 million. Moving on to slide nine, which is the statement of cash flow. The statutory net cash from operating activities is a loss of AUD 15.1 million or a decrease of AUD 15.1 million. As I said, we used AUD 42.3 million to purchase aircraft. The underlying number is AUD 27.2 million, which shows strong operating cash flow.
Now, payments for property, plant, equipment are AUD 103 million, as outlined there, the expansion of the fleet, which is the three aircraft, some fleet maintenance, which continues to be an important part of our business. The Rolls-Royce engine program, which we've notified that ended at December 2024 and won't continue. Our purchases of the Brisbane hangars that were completed in October 2024 were a sum of AUD 19.6 million. Then some general property, plant, equipment to a total of AUD 4 million. Slide 10, which is capital expenditure. Total capital expenditure for the period is AUD 145.7 million. Again, it's all around the supporting of our expansion. As you can see, we've got 21 aircraft that are going through basement maintenance checks. This will continue to be an important part of our business as we increase our fleet and increase flight hours.
I've already spoken about the growth CapEx, which is the increase in aircraft purchases and our Brisbane hangars as well. Slide 11, which is our funding. As we said in our end-of-year presentations, we were successful in raising AUD 150 million through ANZ and Procall Private Capital to increase our facilities to what we believe supports our business moving forward. Under the current acquisition program of the aircraft, we expect that to total AUD 162 million for the full year of 2025, with AUD 83.7 million coming in the second half of this year, and then AUD 79 million to conclude it in FY 2026. These capital commitments are going to be fully funded by the remaining debt facility and operating cash flow, which includes the aviation services activity, which Scott McMillan will expand on later.
We've pegged our leverage ratio at our half year or our full year presentation at 2.42 at the end of December on our peak. We have reached 2.44, so exactly where we said we would be. We see this leverage ratio reducing from this point forward. Our total facility limits currently sit at AUD 483 million, and we've drawn just AUD 445 million last week. All banking companies very pleasingly are well within limits. Again, reiterating that we see net debt reducing once our aircraft purchases have been completed in FY 2026, and operating cash flows continue to increase. I'll hand back to Stewart to talk about the fleet expansion and our growth program on slide 13.
Okay. Alliance will continue to add aircraft into the fleet as we can at the earliest opportunity, which will accelerate during 2025 and 2026.
We have settled on a further seven aircraft, E190 aircraft from Aercap, taking that from 17 to settle 17 of the 30 aircraft. A further six E190s are expected to settle in the second half of 2025, the remaining seven in 2026. Six of those E190 airplanes out of the 30 purchased have been earmarked for sale. Scott McMillan will talk further in a minute around aviation services, which is a growing part of our business. On the right-hand side of that slide, there is a slight change from previous graphs. I just want to reiterate that the Fokker fleet will remain an extremely important part of our fleet into the future. However, owning all of our aircraft gives us options to do what we need to do with the fleet. You will notice there that in 2026, we have the F100 fleet moving from 24 to 22 aircraft.
What that means is we have options on what to do with these aircraft. We will make decisions, simple economic decisions on the Fokker 100 fleet. There will come a time where it is a better proposition to put more E190s in the service and pull out some F100s rather than put them through the basement maintenance check. We are estimating in 2026 that we will move from 24 to 22. However, that just provides us options. We may not do that if other opportunities arise with the Fokker fleet. Next slide. Slide 14.
Strategy and outlook. I'll just touch on a couple of these points through this strategy and outlook. With the increase in fleet numbers, we're finally in a position to be able to start saying yes to more ad-hoc charter revenue, which is high-margin revenue. We are actively driving additional ad-hoc charter revenue at the moment, and that will continue throughout the forecast period. As Andrew mentioned earlier in the presentation, Qantas have called the 30 aircraft, and 29 of those are in service, with the 30th in service in February this month. On the dry lease side, we have concluded discussions with a customer for the fifth E190 dry lease, which will happen by the end of FY 2025.
We continue to heavily invest in technology to support our current operations and future operations in the areas of fleet and crew management and maintenance operations, which are critical parts of our business. Aviation services, I'm going to hand over to Scott McMillan now. We'll talk about aviation services and the growth we will see in that area.
Thanks, Stewart. Good morning, everyone. Thank you very much for your time today. In the first half, it was about AUD 4.5 million worth of aviation services. There were not a lot of transactions in that. We did flag during the half that we had sold six airframes to Air Trade in Ireland. We have delivered the first one of those in the first half. The balance will be in the next two months. The second half will see all of that revenue and profit come in. A really important part of what we are doing is that those aircraft are being disassembled in Ireland. We retain ownership on the engines, the undercarriage, and auxiliary power unit, which represents about 80% of the cost of the whole aircraft. All of that componentry will stay on our balance sheet in inventory and is available for sale.
We are well advanced on the sale of a number of additional surplus engines and surplus or not surplus engines, but inventory we do not need this year or the next year. As we have said elsewhere in the presentation, you are going to see a significant uplift in activity in that aviation services part of our business in the next sort of 18 months, particularly in the next six months as we monetize the inventory and assets that we have acquired over the last couple of years. One thing I think those of you who have been following our business for a number of years will know is that we are traders. We do buy in bulk, and we do buy well. Now is the perfect opportunity for us when there is a real shortage of aircraft engines and componentry around the world, which is not getting any better anytime soon.
Now it's a great place to be a buyer at fixed costs from Aercap and a seller at variable costs to the rest of the market. We're in a very, very strong position on that. I've said there's going to be a very significant uplift in that activity during this second half of this year, but it is ongoing and sustainable business well into the future. Thank you, Stewart.
Just before we move off the slide, I want to reiterate the last point there in the strategy and the outlook, which is that the guidance we provided in our AGM in October last year remains unchanged with the consensus forecast of AUD 92.9 million CBC and AUD 202.1 million EBITDA. Can we move to slide 20, please, for the operational outlook? Operational performance, sure. Operational performance.
On-time performance is a key KPI for all of us at Alliance Airlines. That is a key differentiator and contributor to the outstanding success in securing and maintaining contracts. However, during the first half, we absolutely fell short of our on-time performance. There are a number of reasons for this. Protected industrial action during September really hurt our on-time performance and our customers. Aircraft ground damage, we have had three serious ground damage events which we could not control. One was a catering truck into an E190 that took that aircraft out of service for three months. Others were acts of God through bird strikes and lightning strikes with significant damage to those aircraft, which seriously impacted our on-time performance, taking the aircraft out of our fleet. There were delays to aircraft entering service, which we're overcoming now, along with significant weather events and technical issues.
We had the whole gamut there. However, OTP is the top priority behind safety for our team. We have a number of ongoing initiatives to focus on those controllable delays, which we will hope to turn around very soon. On our safety certifications, our number one KPI at Alliance, we are very proud to hold and maintain the IOSA IATA safety accreditation, along with BARS and IOGP. They are very important for our FIFO and our wet lease business.
I think that ends the presentation part of the webcast. We now open it up to Q&A.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Today's first question comes from Phil Chippendale with Ord Minnett. Please go ahead.
Good morning . Thanks for your time. Firstly, just on that slide five and the impact from the enterprise agreements, can you talk to what the 12-month impact of this change is in sort of dollar million terms? Secondly, how much of that number impacts the second half FY 2025 results?
Morning, Phil. Yes, for the total FY 2026 impact, it'll be circa AUD 21 million above CPI. For FY 2025, the number is about AUD 10 million. That sounds a little bit odd that it's half, but we see the enterprise agreements that are currently with Fair Work to be approved. We forecast that they will be approved as of the end of February, but we're not certain when that will occur. We've estimated AUD 10 million on the basis of that period. Plus, you've got the one-time non-cash impact of the increase on the lease balances. AUD 10 million in FY 2025 and AUD 21 million FY 2026 above CPI.
Okay, thanks. In terms of your efforts to try and offset that impact, how are you going to go about that?
We are working with our customers to look to offset some of that impact. As contracts come up, clearly, we will talk about increases. We are talking with existing customers to help cover some of those increased costs.
Okay, thanks. Just pivoting to the net debt position, it was around AUD 425 million as of 31 December, which was a little bit higher than we had forecast. Can you just talk to the net debt profile over the balance of this financial year and then into FY 2026?
Yes. Look, on the back of increased aviation services activity, as alluded to by Scott, we've seen net debt reducing to around AUD 410 million. That's fairly aggressive, but we think that's achievable. We see that net debt number remaining at that point for FY 2026, as operating cash flow is taken up with the remainder of the aircraft purchases for FY 2026.
Okay, thanks. Last question just on aviation services, so maybe one for Scott. You have spoken to this increased level of aviation services revenue over the next sort of 18 months. The next six months, as I understand it, it's a bit of a combination of Fokker sales to your Irish customer and some of the E190s. Just pivoting to FY 2026, is that going to be partly from sales of, say, two of the F100s or a little bit more of the E190? Can you just talk to sort of that balance and what we should think about FY 2026 revenues from that division?
Look, Phil, there won't be much from the Fokker side of things because whatever we part out, we're pretty much keeping for the future use, our own future use. Much of the activity in aviation services will be from the seven E190s out for rental. That's been done during the course of this first half. We've spent all the money, and now we're going to realize that. We'll realize that over the next sort of 18 months. That's the aircraft that we've parted out and retained. There would be a sixth additional aircraft that we sold to Air Trade, where we retain the undercarriage to use. All of that is held in Europe and available for sale. What you're effectively going to see over that 18-month period is us turning the capital acquisition cost of 13 aircraft into cash.
Andrew's funded that out of debt and cash flow. It is now my responsibility to turn into cash, bring back into business, to keep the net debt down, and to provide additional cash for the business. Something we are very bullish about, it is a great, as I said earlier, it is a great time to be a seller. The fortunate position we are in is that we are buying from Aercap at a fixed cost whilst everything around us is going up significantly. The world's supply of engines has never been worse. That is, therefore, a great time to be a seller of engines, and there are significant margins in that. It is a pretty happy position for us to be in.
Okay, thanks. I'll jump back in the queue.
Thank you. Our next question comes from James Ferrier with Wilsons Advisory. Please go ahead.
Good morning, Scott, Stewart, and Andrew. Thanks very much for your time. Can I, first of all, ask you about slide nine, down the bottom of slide nine there, where you're doing some cash flow reconciliation? Could you add some color there to the point around timing differences on cash receipts and payments, please?
The color's just a difference between actual cash timing and accruals, obviously, as we reconcile EBITDA to cash. We had timing around payroll. For example, we had a payroll that we accrued at the end of June 2024 that we paid on the 3rd of July. That is circa AUD 8 million-AUD 10 million in cash. We had a payroll that actually was technically payable on the 1st of January, but because it is a public holiday, we actually paid it on the 31st of December of the same amount of about AUD 8 million-AUD 10 million. Within two to four days' timing, you have an impact of somewhere between AUD 15 million- AUD 20 million on your cash flow.
That's helpful. Thanks, Andrew. Second question onto the next slide, slide 10. For the full year FY 2025 guidance for maintenance CapEx on the existing fleet there, AUD 102 million. You have sort of circa AUD 1.3 million per aircraft in the operating fleet, if you think of it like that. Where do you see that spend per aircraft going over the next couple of years? I am particularly thinking around the cessation of the Rolls-Royce engine program, the investment you have made in hangars, etc. Where do you see that sort of equivalent of a maintenance CapEx per aircraft heading?
Look, I think our steady state CapEx, once the expansion program is finished, is probably around AUD 80 million in today's dollars. That's total CapEx once the expansion program is finished. That's mainly around base maintenance, engine maintenance, and the entry into service costs.
Is that total and therefore inclusive of any non-cash transfers from inventory to PPE, or is that just the cash component of CapEx?
That's the cash component.
Yeah. Okay. What would be the total if you included a guesstimate of what you'd draw down from the balance sheet? What do you think the total would be, including non-cash?
The issue with transferring out of inventory into PP&E, it's lumpy, and it's not easily forecastable because you just don't know when you're going to need to transfer certain engines out and in. Our inventory forecast is to pretty well stay the same balance as it is if you take out the aircraft purchase, and it'll sit around the AUD 130 million mark.
Okay. That's helpful, Andrew. Thank you. Last question from me. On the EBITDA margin side of things, if we take EBITDA divided by the number of or average number of aircraft in the operating fleet, sort of annualizing at AUD 2.5 million in the second half of 2024, it has stepped up to AUD 2.6 million in this result we are talking about today. What is driving that, and how much more upside is there in your EBITDA margins as the fleet expansion approaches completion?
I think that comes down a little bit with the impact of the EAs. That's going to be the challenge that we face with trying to recover or recoup some of the impact of the EAs with our customers. I think the AUD 2.5-AUD 2.6 per aircraft is probably fairly reasonable to continue on as a basis. Also gets impacted by timing of fleet coming into the operating service and whether you get a full impact for the half or the full year.
Yep, that makes sense. Thanks for your time.
Thanks, Jones.
Thank you. Our next question today comes from Billy Boulton with Morgans. Please go ahead.
Hi, guys. Good morning. Just wanted to confirm, sorry, clarify something with the EBA impact. Just wanted to confirm it's a AUD 10 million impact in the second half, and then annualized impact is AUD 20 million total in FY 2026?
That's correct. Above CPI, really.
Yeah. Okay, cool. Just on next question was just in regards to slide 13 with the E190s going into service in FY 2026, could you just talk about where you think those planes are going to go?
FY 2026.
You've got nine aircraft coming into service, E190s in FY 2026 versus FY 2025?
Yep. We're in a program at the moment of, for example, in North Queensland, we are replacing our Fokker aircraft with E190s, which will drive some real efficiencies in our business in the way of engineering and crew, and also certainly some savings in there around areas of fuel and whatnot. We will redeploy those Fokker aircraft into Brisbane and other areas of the business. As other E190s come on, we have opportunities in there to also drive some efficiencies on some of our existing customers in Queensland and other opportunities as they come along.
Cool. Yeah, I guess you would not want to put yourself through anything, but you are obviously going to try and impact, sorry, offset the EBA impact. If you had a rough guess, how much do you reckon you will be able to offset?
It's too early to tell. At the moment, Billy, we're still in discussions with our major clients. As we said, we've had some discussions. They continue. We'll try to recoup some of that if we can, but it's too early to put a number on that at the moment. I think the other thing too, Billy, and for everyone else on the call, we've invested, as Stewart said, very heavily in new systems during the course of this year, all of which has been written off at times with the P&L. If you think about a scale of sort of 1 to 10 on systems efficiency, we've gone by the end of April, we'll have a new look after the system turned on in full. We've got nearly 1,500 staff. That is a rostering system for 1,000 of them.
The efficiency that flows from that is very, very significant. We're already running a whole bunch of different sample rosters, and the efficiency that comes out of that is very significant. What that means for us is, in terms of recouping what we've done with the EBAs, and what we've been particularly adept at doing is the impact is direct dollar impact. It's not changing of conditions. What happens with pilots and flight attendants, particularly, is that they'll always try and find ways to do less work for more money. Now, we've given them the more money, but we're not giving them the less work. The conditions have been largely unchanged in our EBAs. That's a really important part of us maintaining our competitiveness. If you think about the AUD 20 million, we'll recoup a fair whack of that from our customers.
As Stewart and Andrew have said, bear in mind, that's the AUD 20 million over and above CPI. If we did nothing, that would come straight off our profit. The fact is, it's neatly timed for our new look transfer system. We won't see the full effect of the improvement in efficiency in the business until around six months from now. That is about when it starts to hit us more heavily in terms of the cost. We've already got one of our very large customers to agree to pick up pretty much the difference between what we've had to pay in CPI. That is already pleasing for us. We will get some of it back by being a more efficient operator and get more productivity out of the same staff we've got. Ultimately, as contract renewals come up, then we've got to recoup that from our customer base.
If you look around our industry, here in Australia particularly, there is a huge amount of industrial activity going on that makes the news quite regularly, particularly with Qantas, to a lesser degree with Virgin. There are a whole bunch of court cases coming up. It is also affecting our customers. When we go to talk to our customers about our increased cost base, it does not fall on deaf ears because they understand that it is impacting them as well. Yes, there is an impact, but we are well aware of it. I think we are going to make a very good case that most of it will be recovered.
Okay, Scott, that's great to hear and appreciate that. Andrew, just last one, if you could maybe share some thinking around how you think DNA will, in that interest, will land for the full year, fair bit above where the market was expecting.
Yeah. Look, the impact for the depreciation amortization is, as your flight hours of your Embraer has increased as a percentage of the total flight hours, there are more expensive aircraft and more expensive engines. I see that depreciation will probably be about AUD 90 million for the full year and probably increase to about AUD 100 million-AUD 105 million in FY 2026. On interest, we'll probably it'll sit in the circa AUD 30 million-AUD 33 million mark as we have the full impact of our debt of around AUD 450 million.
Cool. No, that's great. Thanks, guys.
Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Our next question comes from Wayne Arthur at Monaro Suburban Annuation Fund. Please go ahead.
Thanks. I wanted to ask you about the payments for the sales of the Embraers and the engines. Now, when you announced these in September and November last year, you indicated that those transactions would be finalized in January and February. We're now midway through February. What payments have been received for the six Embraers and the 13 engine cores?
Wayne, thanks for the question. It's Scott. In terms of the engine cores, mate, it's on time payment. We're receiving $100,000 US dollars a month from the person that the company that bought those. And we've been paid for one airframe because we've only delivered one. We deliver another one next week and another one the week after. We'll have all those payments received into the business by the end of March.
Okay. All right. Now, a question on borrowings. I see that the company has loan facilities with three entities. One is the Northern Australia Infrastructure Fund, one is ANZ Bank, and one is Procall Private Capital. Is there anything in those borrowing agreements which prevents the company from paying dividends?
No.
Okay. Now, assuming you get all the money from the engine sales and the Embraers by the end of March, if the company were to declare a special dividend, surely it could declare a dividend of AUD 0.10 a share, which would be more than covered by the revenue from the Embraers and the engine sales. I see the company's now got a franking balance. Is there any good reason why the revenue from those Embraers and the engine sales could not be used to pay a special dividend, at least partly franked?
Look, Wayne, the answer is, as what we've said before, is that those sales are taken into consideration when we look at our total funding, including debt. We reiterate that any operating cash flow, which those sales are part of, will be utilized to complete or be part of the financing or funding of the remaining aircraft.
The problem that I see is that the shareholders are getting the rough end of the stick. In the AGM 15 months ago, the chairman sort of made reference to the importance that dividends were a key component of shareholders' ongoing investment in the company. Now, the share price has just been completely in the doldrums for the last 18 months. Shareholders have been getting no capital growth. They've been getting no dividends. The company's got some franking credits, but the shareholders are not seeing anything for it. To me, you have to ask the question, why would you own shares in a company that doesn't actually reward the shareholders when it's in their position to do so? Comment, please. Thanks.
Okay. Thanks, Wayne. Thanks for your comments.
What's the answer?
Thank you.
Oh, the direct.
There are no further questions at this time, so I'll hand it back to Mr. McMillan.
All right. Thank you all for dialing in. Wayne, if you want to take that discussion offline, just drop me an email, and I'll give you a call on Monday, mate. I can walk you through it. Just to finish off that, the answer to that question, it's the view of the board, which includes now all the new board members, that the use of the cash and the capital is still best served by keeping that internal to the company rather than paying a dividend. As a matter of fact, I have 4 million shares, and I'd love to get some dividends. You and I are in the same boat, mate. Right now, we're in this growth phase. The best use of the capital is to keep it within the business. Feel free to contact me offline.
Thanks to all, and thanks to the moderator.
Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect your lines.