I would now like to hand the conference over to Mr. Ian Testrow, Managing Director and CEO. Please go ahead.
Thank you very much, and thank you to everyone for dialing in. Good morning, and welcome to Emeco's Full Year 2022 Results briefing. I'm joined today by our CFO, Thao Pham. Today's announcement of AUD 250 million operating EBITDA, which we pre-announced in June, is a solid result. We've delivered growth in each of our operating divisions, and our business performed well despite COVID disruptions, continued labor shortages, inflationary pressure, and extreme East Coast weather in both halves of the year. I want to thank our 1,400 employees who worked tirelessly to deliver for our customers and navigate the many challenges we faced in FY22. This hard work has set us up for a strong FY23. Emeco prides itself on its people and culture, and the team has performed exceptionally well.
Thao will take you through the financial performance of the business shortly, but if you turn to slide two, I'll take you through the group financial highlights. Revenue of AUD 754 million was a 22% increase on FY21. This was driven primarily by Pit N Portal, but we also saw a 7% growth in Rental and 11% growth in Force. Operating EBITDA grew by 5%. Operating NPAT grew by 22% to AUD 69 million, reflecting the significant interest expense savings from the refinance of our U.S. dollar notes in July last year. Nice work, Thao. We now have Aussie notes in place at 6.25% maturing in FY27. We continue to deliver strong free cash flow with cash conversion of 96%.
The board has declared a second-half capital management package of AUD 13 million, including a final dividend of AUD 0.0125 fully franked, equivalent to the interim dividend, and an on-market buyback of a further 1.5% of shares on issue. This takes total capital management for FY22 to over AUD 24 million, which is 35% of operating NPAT. We also opportunistically purchased an additional AUD 7.66 million of stock during the second half. Our buyback program, together with our increased earnings and our reduced financing cost, increased EPS by more than three times on FY21. Our balance sheet is in good shape. We've leveraged just below 1x. Our return on capital, which sits comfortably above our cost of capital, has now stabilized at 16%.
This will increase in FY23 as we drive increased earnings from our existing asset base. Just turning to slide three. The safety of our workforce is and will always be our highest priority. TRIFR is 1.9, down from 2.1, and we remain LTI-free for six years. As I noted, operating EBITDA of AUD 250 million reflected year-on-year growth in all three divisions. Rental has now returned to growth as we deploy assets from across the year in both regions, which is reflected in our Rental business gross utilization of 92%, up from 87% in FY21. We also manage margins well given the inflationary environment. Both Rental and Force held margins from FY21 into FY22, shows the resilience of the business.
Our operating utilization was impacted by ongoing operator shortages and the weather events I described earlier. Our fleet is well-placed to increase operating utilization and earnings in FY23 as conditions normalize. Pit N Portal's base business of underground rental and underground and open cut services projects perform well. However, overall performance continues to be impacted by the profitability of a major project. We are currently renegotiating this contract to improve earnings and margins. FY23 will see improved earnings and margins from the Pit N Portal business. Force continued to perform well and grow its external business and demonstrate the key strategic cost and quality advantages it creates for our business. Now on to outlook for FY23 on slide four. We expect operating EBITDA growth in Rental, Pit N Portal, and Force. These earnings will be generated from our existing asset base.
Rental growth in FY23 will be underpinned by improving operating utilization, a focus on cost control and continuous improvement initiatives, rise and fall mechanisms that help with inflation pressure, and rate increases when extending contracts and placing equipment into new jobs. Pit N Portal will deliver increased earnings and margins as we address our underperforming major project. We expect growth to be weighted to the second half. Force growth will be weighted towards internal works as we utilize this capability to manage inflation and extend the life of our equipment and components. Our sustaining capital budget for FY23 will be AUD 155 million-AUD 160 million, and this includes our replacement asset program. We expect return on capital to increase as earnings grow from improved utilization of the existing asset base.
Our focus is working our fleet harder to increase earnings, managing costs, improving Pit N Portal returns and margins, and maximizing free cash generation. Now turning to safety and sustainability. On slide 6, we provide an overview on our safety. I'm very proud of our safety record. We've remained lost time injury-free since February 2016, so for over six years now, and we've improved our TRIFR down to 1.9 from 2.1 last year. We've invested significant time and cost in updating our health and safety strategic plan to bring it in line with the additional size of our workforce, which is now 1,400 strong, and the additional services we perform. If we turn to slide seven, the work that we've done on our people and culture.
As mentioned, we've increased the size of our workforce by 27% and now have approximately 1,400 employees. In FY22, we worked hard to increase the number of females and apprentices in our workforce. More recently, we entered into a strategic framework with Kuuwa, an Indigenous-owned business in Western Australia. I'm excited by this partnership as it help us to better support Indigenous businesses and communities while providing additional solutions to our customers. Project Align remains a centerpiece of our people and culture commitment. We achieved some great progress this year with engagement of our workforce, development and implementation of our core values, and building on our community engagement and sponsorships. Turning to slide eight on ESG. Significant work has gone into developing our ESG strategy during the year.
You'll see on slide seven, we present our ESG wheel with the eight material themes we have identified as important to the Emeco Group. This was identified through stakeholder engagement and industry benchmarking. We're now rolling this out across the business with actions, metrics, and targets identified. Now I'll hand it over to Thao Pham to go through the financials in more detail.
Thanks, Ian. On slide 10, operating profit and loss. The key message here is that we have delivered solid financial performance in what was a challenging operating and inflationary environment. Revenue is up AUD 134 million on FY21, being 22% growth. Pit N Portal represents AUD 108 million of this increase, and pleasingly, rental revenue also grew 7% on FY21. Operating EBITDA growth of 5% to AUD 250 million reflects growth across all operating segments in FY22, and as previously announced, is at the lower end of our guidance range due to the impact of COVID, tight labor markets, and extreme weather events, all impacting operating utilization. As is well understood throughout the industry, we also experienced cost inflation, particularly with parts and labor.
Group EBITDA margin of 33% is down on FY21, as you can see, although these margins held flat half on half throughout FY22. Essentially, rental and Force margins have held over the year, and while Pit N Portal margins are naturally lower than rental, given the higher proportion of capital light services, there is also a drag because of that underperforming project that Ian referred to. Operating EBIT is up modestly on FY21 and operating NPAT is up 22% to AUD 69 million, driven by the significantly lower interest expense from the note refi we did early in the year. A reconciliation between our statutory and operating numbers are on slide 23 in the appendix. Turning to slide 11 on cash flow. The key callout here is that we generated AUD 67 million of free cash flow before any gross capital.
There was strong cash conversion at 96% after adjusting for the AUD 11 million working capital build. Cash collection and debtor management is strong. Working capital was largely built in the first half to support Pit N Portal growth. We also increased inventory levels to mitigate against supply chain risks created by COVID. You can see the annual interest savings following the note refi, bringing down our annual interest cost to AUD 20 million, and sustaining capital expenditure was as per our pre-announcement in June. AUD 25 million of this was spent on replacement assets, and there was a 6% increase in capitalized rebuilds, largely due to inflation. We spent AUD 17 million on growth capital, of which AUD 5.6 million was spent in the second half to opportunistically acquire a fleet of mid-life asset cores.
You can read up more on the mid-life asset cores in our presentation, which was released a couple of months ago in mid-June. With the remaining free cash of AUD 48 million, almost AUD 30 million of this was used to fund capital management initiatives during the year. This equated to a payout of 35% of operating NPAT for dividends and buybacks. The top end of the board's stated policy of 25% to 40%. An additional AUD 7.6 million was spent on share repurchases on top of this. Turning to slide 12, our balance sheet. Leverage remains at our long-term target of 1x while still funding sustaining replacement and growth capital as well as capital management. We have good liquidity with AUD 60 million on the balance sheet and our undrawn revolving credit facility of AUD 97 million.
As mentioned, we refinanced our U.S. notes with Aussie dollar notes at the beginning of the financial year at a fixed rate of 6.25%. This is a five-year note which matures in FY27, so we still have four years of tenure remaining, and we'll continue to look at ways to improve our capital structure. Back to you, Ian, for the divisional overview.
Thanks, Thao. Thanks. Now turning to slide 14 and our rental division overview. I'm pleased to report that our rental business has achieved revenue growth of 77% and EBITDA growth of 5%. This has been achieved through the deployment of assets throughout Australia, driving gross utilization to 92%, up from 87%. Operating utilization has remained subdued at 60% despite strong demand due to COVID-related disruptions, operator shortages in the west, and extreme weather in the east. While this has been frustrating, our fleet is now placed into projects where we're confident operating utilization and earnings will increase as conditions normalize. Margins were held pretty close to flat during the year for our disciplined cost management and extensive use of Force to rebuild our equipment and components.
This is a solid outcome given the inflationary cost pressures and shows the resilience of the business model we've created. We secured fully maintained projects in both the East and the West in line with our strategy and made good progress in rolling out EOS to new and existing projects. Going into FY23, we expect further greater growth as operating conditions normalize. The fleet has plenty of capacity for increased earnings, as shown in the graph on the left-hand side of slide 13, which compares current earnings and operating utilization to pre-COVID levels. We'll maintain our usual disciplined approach to cost and business improvement initiatives to manage inflation. This is where Force comes into its own as a key part of our strategy. With a cost advantage in maintenance and rebuilds for our in-house capability, we use this capability to outperform our competitors and to deliver value to our customers.
We're confident we'll get rate increases where we extend and sign new contracts. In existing contracts, we also have the protection of rise and fall mechanisms that help us with cost increases. We anticipate margins in rental to remain steady in FY23, which shows the resilience of our business model given the inflationary cost pressure. Turning to slide 15. Eastern regions worked hard to place equipment into new projects in FY22. Gross utilization has increased from 86% in FY21 to 92% in FY22. Momentum created in the first half of FY22 carried through to the second half as the team kicked off new projects in coal and copper. While operating utilization has increased from 59% to 62%, there remains significant capacity to work the Eastern region fleet harder to reach the pre-COVID high of 72% operating utilization.
We're well set up in the East, where most of our high-value assets now work with the right customers on the right projects will drive operating hours higher. With our continued discipline on cost and pricing, we'll see good growth in FY23. Slide 16 shows the performance of the Western region. The Western region achieved another strong year of growth, reflecting the successful deployment of assets transferred from the East, driving up gross utilization to 91% from 89%. However, operating utilization remains at 59% compared to 58% in FY21. The fleet can work harder. Once the operator shortage improves and COVID disruptions dissipate, we expect a lift in earnings as operating utilization builds, particularly as we get assets to work in double-shift projects.
The Western region team will be focused on increasing service levels and expanding our EOS offering in FY23, areas where we feel we're clearly differentiated from our competitors and provide our customers the most value. We're very excited about the new EOS module that helps customers track and manage their carbon optimization projects. I want to reiterate that over the longer term, we see the Western region margins increasing in line with those achieved in the East as we increase the proportion of fleet deployed into double-shift projects. Turning to Pit N Portal on slide 17. We acquired Pit N Portal as part of our diversification strategy into services and to broaden our commodity exposure and customer value proposition. Since we acquired the business in March 2020, just in time for COVID, Pit N Portal has more than doubled in revenue.
This is a significant achievement, particularly given COVID, hard borders, and extremely tight labor market. The growth in Pit N Portal has been achieved through new project wins in underground rental and services and successful expansion in the open cut projects utilizing the Western region rental fleet. The base PMP business is performing well, having won and executed well on the majority of its projects and delivering financial results according to plan. As noted earlier, we continue to experience disappointing results on a major project, which is impacting overall returns and margins of the Pit N Portal business. We've invested significant management time to address these issues and will advance in a renegotiation of the contract. Our objective is to agree on the revised terms and rates that create value and certainty for both parties. This will enable Pit N Portal to achieve growth and earnings in margins.
In growth and earnings and in margins in FY23. Looking at slide 18 and the FORCE workshops. FORCE is an integral part of our strategy to be the highest quality and lowest cost provider of open cut and underground mining equipment. FORCE activity increased 12% as both retail and internal rebuild works grew during the year. Retail revenue grew by 17% as FORCE continues to provide customers excellent value, and earnings grew by 11%. FORCE did an exceptional job to hold margins steady in an inflationary environment. You may recall we acquired a line boring business, Borex, at the beginning of FY22. Borex provides FORCE and Emeco internal savings, as well as retail earnings and exposure to new customers. The integration of Borex has gone really well.
This has been an effective vertical integration acquisition that has improved our core capability and provided the group with cost benefits. As utilization increases in FY23, we expect more internal activity as we use Force to provide Emeco and Pit N Portal a cost and quality strategic advantage and manage inflationary costs. We expect retail work to continue to grow, and we anticipate margins to remain broadly flat. Turning to slide 20 in our strategy. You're all familiar with this slide in our strategy, so I won't spend too much time on it.
The key point I wanna make is that all the work we've undertaken in the past several years to rebuild our balance sheet, widen our value proposition, diversify our commodity and customer mix, and drive hard to become the highest quality and lowest cost provider of open cut and underground mining equipment now places us in a strong position to deliver earnings growth to drive shareholder returns. Our EPS growth of 3x compared to FY21 demonstrates this work is paying off. We have our rental fleet placed in the right projects to achieve increased utilization and earnings. We're managing the inflationary environment through the use of Force, disciplined cost management, and continuous improvement projects. We're pushing rate rises where possible.
We're nearing a resolution at our underperforming major project that will see Pit N Portal deliver the sort of returns we had planned when we acquired the business. Our cash flow generation and balance sheet strength gives us the ability to reinvest in our fleet, to take advantage of growth opportunities, and to fund capital management. We're excited about our prospects in FY23 and beyond. With that, I'll hand over for questions.
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're on a speakerphone, please pick up the handset to ask your question. Your first question is from the line of Nicholas Wallin from Jefferies. Please go ahead.
Hi, Ian and Thao. Thanks for taking my questions. You delivered growth in all operating divisions, this year, and you've given an outlook statement to that effect. Any comment on how FY23 growth will compare to FY22? 'Cause it feels like everything's a bit more positive this time around.
Yeah, Nicholas, yeah, thanks for dialing in, man. Yeah, I agree with you. I believe that FY23 growth will outpace FY22 growth.
Okay, thanks for that. Just a couple of follow-ups. One of your key competitors on both the East and West Coast is still seeing a bit of a rental squeeze with available fleet dropping massively in the last few months. Has that changed conversations with customers around minimum hours or rates?
Yeah. Well, look, Nicholas, I agree with those sentiments. We're seeing the same thing. We're seeing supply-demand tighten, and you know, I mentioned in our presentation that we're confident of achieving rate increases as we extend projects and as we take on new projects. I agree with the sentiment you're expressing there.
Okay, great. On operating utilization in the Western region, what do you think is achievable there? I mean, you touched on what was your previous high in the Eastern region, but just wondering what you think for the Western region?
Yeah. Western region about 58% now. Look, I think that the Western region is on a journey of creating more double shift projects, creating more fully maintained projects, creating more EOS projects. I think the growth in the West has been quite, you know, obviously aided by us transferring equipment over from the East to get commodity diversification, but the growth has been excellent. The team are doing a great job. I expect the West operating utilization to build into the mid-60s%. I'm not sure if we'll get there this next year. There's obviously a lot of variables with COVID and labor shortages in the West, which are holding us back a bit.
Ultimately, I can see the West, you know, pushing up towards the high 60s%, ultimately long term, and pushing their margins up into the mid 50s% and higher to be more aligned with the Eastern region business.
Okay, great. Just one last one from me. How many months of underperformance of that Pit N Portal contract did you have in FY22?
Twelve.
The whole time? Okay.
Yeah.
Yeah. Yeah. Okay. Great. Okay. That's it from me. Thanks very much, guys.
Thanks, Nicholas.
Thank you. The next question is from the line of Mitchell Sonogan from Macquarie. Please go ahead.
Yeah, good morning, Ian and Thao. Thanks for taking the questions. Can you hear me there?
Yeah, Mitch. How you going, man?
Yeah. Yeah, good, thanks, Ian. Just following on just quickly on Mincor there. Also the project, but just in terms of the broader labor environment. It's obviously pretty tough out there for all operators, particularly in WA. Yeah, just looking out and I guess the projects that you're working on or tendering for, does it sort of change how you think about which projects you're chasing, whether you're sort of switching more from looking at contract mining more back into rental? Can you maybe just touch on how you're thinking about the growth prospects in the business over the next twelve months, given the environment?
Good question, Mitch. Yeah, look, the Mincor project's been difficult for us. I just wanna make it clear that Pit N Portal guys did this thing back in 2019. It was delayed for quite a while because of COVID, and it ramped up quickly. Pit N Portal have done a magnificent job, I believe. I've been proud of them in the way they've performed this work, the way they've chucked resources at it. To be perfectly honest, I think Mincor have been helpful for us as well. There's been some allowances to help us out with inflationary labor. Structurally, the project needs to be restructured. Just from a risk/reward and a rate perspective, it's not stacking up.
I'm very, very grateful that Mincor have allowed us the opportunity in this first quarter of FY23 to renegotiate this project and have that renegotiation verified by an independent source. I'm very grateful for Mincor and supportive of it. We've really sort of ground this out together over the last couple of years, and I appreciate the opportunity to address this. As far as how we select projects moving forward, that is wise. I mean, you know, Pit N Portal have really ramped up. I mean, like doubling their revenue. You know, I said that we bought them just in time for COVID, but so for them to more than double in that period shows that they've got growth capability and they can win work.
I think they've done a fantastic job building their workforce in this, you know, very, very tight labor markets. Steven Versteegen's an excellent operator. The projects he's taken on since Mincor have been quite selective, which has played more to our skill set of providing value and, you know, smaller type development jobs and done a really good job with that. Where we can increase our underground rental, we will as well. I'd like to grow this Pit N Portal business. We do have some East Coast underground operations at the moment. I would like to grow it further on now in the eastern region. I think they've been very sensible in the projects that they've selected and will continue to be so moving forward.
Yeah. Thanks for that, Ian. Maybe just jumping onto the East Coast there, and you mentioned some East Coast underground projects for Pit N Portal. Can you maybe just touch on, yeah, upcoming potential projects and what you're looking at in particular states or commodities. And also just final one there on the East Coast. I was wondering, can you maybe just touch on the broader demand environment from the coal customers in Queensland and New South Wales? Obviously, price has been quite strong for some time, but weather's been impacting obviously the actual operations there. Can you maybe just touch on how you're seeing that broader sector? Thank you.
Yeah, Mitch, a couple of questions there. Firstly, I'll address the Pit N Portal on the East Coast. Steve's been spending a bit of time over in the Isa. There's opportunities for rental there and services, more sort of wet hire services roles than contracting, but we see good opportunity there. As far as how we see the East Coast, look, I think we're in a really good position with coal. I mean, we've diversified our coal exposure over time. We feel good about it going forward, and we're certainly not shy to put some gear to work into coal. I mean, the environment of coal with ESG concerns, particularly around financing and raising debt, I think creates opportunity for us.
I think the changing coal market with some tier ones exiting coal and some more sort of private companies, private equity companies coming into coal creates an opportunity for us where, you know, we can deliver the equipment, we can deliver a maintenance solution and take a lot of risk out of these projects, not from just a finance end, but an execution perspective for these customers. Yeah, look, I'm really excited about the East Coast and coal moving forward. I think it really suits our business model.
Yeah. Excellent. And just the final one, just, in terms of labor cost inflation, can you maybe just provide a little bit of detail of, I guess, what increase you're expecting there in 2023 over 2022? I guess maybe just split between the operational staff and more staff, say maintenance in Force. Is there much difference there between the east and the west coast? That's all from me. Thanks, guys.
I don't see a lot of difference in the east and the west, Mitch. You see hotspots popping up all the time, whether it's Mackay or Kalgoorlie or Hedland or whatever. I think the work that we've done in the last 18 months on our culture, John Wust done some fantastic work with the Pit N Portal and the Emeco Force businesses around developing our values. We've developed a really strong workforce and, you know, the place feels great. I think we're a good attractor of employees. We did see labor costs in FY22, and I'm really proud that we held margins across our rental business and our Force business.
I, you know, aside from the Mincor project, I reckon we would've held them pretty well in Pit N Portal as well. We expect similar types of increases for FY 2023. We continue to be an employer of choice, and we'll continue to, I mean, you could say, "Okay, I'll pass these on to our customers," and we've got rise and falls and we've got pricing. I think we've got a responsibility in this industry to get the most out of our labor. We're very focused on continuous improvement projects that are really focused on our productivity and efficiency because ultimately we wanna provide our customers a cost-effective solution.
Michelle, do you have any follow-up question?
No. Sorry, I said before, that's all from me. Thanks, guys.
Thanks, Mitch.
Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question is from the line of Cameron Bell from Canaccord Genuity. Please go ahead.
Thanks. Morning, guys.
Hey, Cam.
Just on the outlook commentary. You're saying you're expecting growth. I understand you know you may not necessarily wanna be too specific, but when we're looking at you know the sort of level of growth into FY23, do you think you can grow from the second half group EBITDA run rate?
Yeah. Yeah, I do, Cam.
Yeah. Okay. At, like, a consistent sort of level as to how you've trended through the year?
I think so. Look, you know, we're expecting growth this year, Cam, and consensus is out there between 270 and 275 is our interpretation of it. We're comfortable with that. You know, we will, you know, typically at our AGM in November, we provide an operating update and provide some guidance. There's lots of variabilities out there with COVID and labor and that sort of thing. I'd probably like to get a bit of a couple of runs on the board in FY23 and then provide the market an update at our AGM.
Yep. Okay. Yeah, you read my mind on the consensus comment. Just on the CapEx commentary, we've got your sustaining CapEx. Are you looking at having a similar level of growth CapEx on top of that next year? Or is that quite variable too? Or does it come down with Force?
Look, growth CapEx, I wanna get more out of our assets in FY23. I've tried to sow that into as much of our commentary as possible and, you know, look at the Pit N Portal business. It's been held back. We need to get more out of those assets. The rental business, that operating utilization is lower than a pre-COVID level. There's definitely capacity to get more out of our fleet and to increase our return on capital. I don't expect it to be a year of growth CapEx. I expect it to be quite minimal. I just want to touch on a comment Thao Pham made earlier. At the back end of FY22, we spent about AUD 6 million on cores, Thao Pham?
Yeah.
We've got these cores we got through on the BHP auction with a bunch of trucks. Relatively minor cost at AUD 6 million. We can sit those cores, Cam, watch the market, get our gear out, work it harder, but then just have the flexibility and optionality that we can put those cores through Force and turn them into, you know, assets that we can put to work for growth if the opportunities come up. I'm really proud of that. I'm really proud of this machine that we're building where we can pick up cores, which, you know, other competitors or other parties wouldn't have the confidence to be able to rebuild like we can.
Have them sitting on the fence for us at a minimal cost and just have the ability to put them through Force to meet demand as it sits. Our focus will be on working our existing assets harder and keeping growth to a minimum. We'd like to really have a year of generating strong free cash. Having that optionality through this machine we've built through Force, I think, is a highlight of our business model.
Thanks. Just last one from me, just on Pit N Portal. Trying to get a feel for how the rest of that business is doing ex-Mincor. Can you say how much that contract was a drag on EBITDA? Like, how much did that lose that contract during the year?
The project itself didn't lose money in FY22, but obviously it didn't. The earnings didn't come through what we expected it, like, especially with the asset base, I suppose, that we've quite dedicated to that project.
The way I think about it, mate, is that we're an asset intensive capital business, right? Pit N Portal take those assets, put them to work, and then they apply services on top of them. The key thing is you get a return on assets. I can tell you, the rest of the business is getting a pretty healthy 20% return on asset. That's pretty solid, and that's why I'm so confident in growing this business as these brings opportunity to us. I'm confident that we'll sort this Mincor thing.
Yeah, okay. Thanks very much, guys.
Thanks, Cam.
Thank you. Your next question is from the line of Shabbir Pirlai from Arkan Capital. Please go ahead.
Hi. Morning, Ian. Morning, Thao. Congrats on a good set of numbers. I think you guys have demonstrated that your ability to execute through the cycle, regardless of where commodity prices and other geopolitical issues might be, is a credit to you. Well done on that. Just one quick question from me on cash taxes for FY23. Can you just give us some sense of what that might look like? I'm not sure if you've worked through all of the NOLs that you've had shielding you prior and whether we should expect to see any outflows in FY23?
Hey, Shabbir. How's it going? No, no cash tax due for a few years.
Okay, perfect. Thank you.
All right.
Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. There are no further questions at this time. I will now hand back to Mr. Testrow for closing comments.
I'd like to thank everyone for dialing in, and those employees of ours that dialed in. I'm proud of you guys. It was tough year, but you worked really, really hard, and I'm proud of the efforts and I'm proud of the way that we're setting up this business.
Thank you. That does conclude the conference for today. Thank you for participating. You may now disconnect. Thank you.