Greetings. Welcome to the Polaris Renewable Energy Inc Second Quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Anton Jelic, CFO at Polaris Renewable Energy. You may begin.
Thanks, Holly. Good morning, everyone, and welcome to the 2023 Q2 earnings call for Polaris Renewable Energy. In addition to our press releases issued earlier today, you can find our financial statements and MD&A on both SEDAR and our corporate website at polarisrei.com. Unless noted otherwise, all amounts referred to are denominated in US dollars. I'd like to remind you that comments made during this call may include forward-looking statements within the meaning of applicable Canadian securities legislation, regarding the future performance of Polaris Renewable Energy and its subsidiaries. These statements are current expectations, and as such, are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current operations. These risks and uncertainties include the factors discussed in the company's annual information form for the year ended December 31st, 2022. I'm joined this morning, as always, by Marc Murnaghan.
At this time, I'll walk you through our financial highlights. Power generation. During the 3 months ended June 30, 2023, quarterly consolidated power production was 211,765 megawatt hours, higher than the 163,119 megawatt hours consolidated power production for the 3 months ended June 30, 2022. Due to additional production from the binary unit in Nicaragua, as well as the Dominican Republic and Ecuador facilities acquired in 2022, coupled with Vista Hermosa Solar Park in Panama, beginning operations in this quarter. For Nicaragua, the increase in production is a result of additional production from the binary unit, partly offset by expected declines in production from the steam fields.
Consolidated production in Peru for the three months ended June thirtieth, 2023, was marginally higher than the comparative period last year, due to somewhat better hydrology across the country for the quarter. The Dominican Republic, the Canoa 1 facility produced 13,398 megawatt hours in the three months ended June thirtieth, 2023. Ecuador, the San Jose de Minas facility produced 11,323 megawatt hours in the three months ended June thirtieth. Generally, as in Peru, we have seen better hydrology than in the prior year. Revenue. Total revenue was $20.8 million during the three months ended June thirtieth, 2023, compared to $15.2 million in the same period last year.
This increase was the combined result of a 30% increase in production contributed by the company's facilities, coupled with an increase in the effective PPA prices applied to our three Peruvian facilities. Net earnings. Earnings were $4.6 million for the three months ended June 30, 2023, compared to a loss of $1.5 million for the same period last year. This increase was driven by higher operating margins, coupled with higher deferred income tax recovery, partly offset by higher finance costs during 2022. Adjusted EBITDA. Adjusted EBITDA was $15.4 million for the three months ended June 30, compared to $11.2 million for the same period in 2022, principally as a result of higher operating margins already discussed. Cash generation.
Net cash from operating activities for the three months ended June 30th of $10.3 million, is lower than the $14.2 million for the same period last year, mainly due to higher receivable balances and lower payables held at June 30th, 2023 compared to 2022. Net cash used in investing activities for the three months ended June 30th, was $1.4 million, compared to $32.4 million spent in the same period last year, due to funding of construction of the binary unit in Nicaragua and the Vista Hermosa Solar Park in Panama, and also the funding of the acquisition of Canoa 1 in the Dominican Republic. Net cash used in financing activities for the three months ended June 30th of $7.6 million, compared to $5.7 million net cash used in financing activities in the same period last year.
In 2022, the company refinanced Pence's senior debt and paid $9.5 million in issuance costs. Finally, dividend. I'd like to highlight that we've already announced we'll be paying a quarterly dividend on August 25th, of $0.15 per share to shareholders of record on August 14th. With that, I'll turn the call over to Marc, who will elaborate on current business matters as well as on our quarter-end results. Thank you.
Thanks, Anton. First, some comments on the production performance in the quarter. I would say on a consolidated basis, it was in line, a little ahead. We're very happy about that, hitting the budgets and our own internal projections. Peru was a little bit higher, DR was a little bit lower, net-net, we were very happy with the overall production and continue to remain on track into this quarter.
... as people know, we, we commissioned the binary unit at the end of 2022, and it continues to operate well, high availability. Very happy about that. The other project that we commissioned and constructed on our own was the Vista Hermosa Solar Park in Panama. That was put into service in Q2, and we've had just over three months now, and then that production is right on track with what, with what we were budgeting. We are very happy with that. All in all, hitting sort of our, our long-term average estimates of production in the quarter and the year to date. In fact, Nica was up a little bit quarter-over-quarter because of some of the, the work we did on the, the, the injection system.
Nica was, was up a bit quarter-over-quarter, which is great. We did get a little bump in the pricing in Peru. Starting May 1, 8 de Agosto, which is our biggest plant there, had the price adjusted, which we had always expected. It happened, and we had a price in the $40s, which is now running at $61. Expected, but obviously, that helps, and that's gonna be the number going forward. That really helps in terms of the, obviously, the top line, but also given that we took over the operation of all the plants in Peru, our costs are down a bit, so nice margin expansion in Peru, and we expect that to continue.
In terms of the, the quarter, the cash, generation, as Anton mentioned, cash from operations, about $10.3 million. The uses of that, the, the, the, the largest use was, was $4.4 million in debt repayment, so we continue to pay down debt. $3.2 million in the quarterly dividend, with CapEx of around ballpark $1.5 million. Not a huge number. I'll get into some of those CapEx items in a second here, but that actually nets out to an increase of just over $1 million in the cash position. We ended the quarter on a consolidated cash position of about $41 million. That's up, debt's down, so the balance sheet, improving.
Depending on your target for this year, but we are running sort of close to that, our target of about $60 million of EBITDA for the year. That would put us at net debt-to-EBITDA of around 2.3 times, which we think is, is, is, is very conservative balance sheet and, and, and is something that we're gonna look at going forward. That leaves us a lot of cushion and, and I think room to, to grow the balance sheet there. In terms of the, the projects that we're currently executing, right now, it's all at, I call it a current project optimizations, but these are the high return, the highest return on capital we're gonna get. We are doing the battery project in Peru, which is the smallest.
That's only a $500,000 CapEx project, but that's set to start in September. We look forward to that, which would be our first battery project. There, we're excited about that. The well optimizations, I would say that the biggest short-term project we're working on, are the well optimizations in Nicaragua, which are starting next week. The process for that is, is there's two wells that we're looking to clean out effectively. It's four two and six three. The first one, the process is, is you cool it down first, and then you start to circulate your solution through there. That only takes about a week, but then you need to let it heat up.
We, we should have a sense of success on these two wells, call it mid-September plus or minus. It's hard to predict exactly how long it takes for the wells to heat up, but it could be from three, four, or five weeks, and then you can flow them again. We're, we're, we're quite optimistic about the results of this. Hopefully, they can come online a little bit in, in September, in the current quarter, but, but, but more so in Q4 and, and, and going forward. Just worth noting that these wells, it means for the current quarter, they're out for about four weeks, and, and the, the sum of the two wells is about three megawatts. We do have about one month of three megawatts out for the current quarter.
Lastly, the other project that we are executing is the- in Ecuador, which is the tying in effectively another stream into the intake, and that is ongoing and should be ready, I would say by end of Q1 2024. That we would look to increase production there by about 20%-25%. Those are the, the current projects. In terms of Canoa 2, we, we did announce, this is a new project, although it's an expansion of, of the current, Canoa 1. We signed the PPA in May. We have most of the development ready to go. We have done some very small, things on site, but the, the big one is, is, is we are working on finalizing the interconnection agreement before we start the big construction.
We are aiming to finalize that this quarter, get that done. If we can do that, then we can really start the construction in earnest, and to try to have that in service by back half of next year. On Canoa, in the same spirit as the other projects, we do have room under the current PPA to deliver more energy, and we are working on that as we speak, and we'll have more to update people on the next quarterly call. That again, would be very high return on capital with not a lot of capital, that we think we could add some panels potentially, as there is room, and it's a very good contract.
If we can do that, we will likely do that before we even get to Canoa 2. I can't comment on the size, but, but there would be, yeah, very high return. And, and I guess for, for, for me, the big message here is that whether it's the well optimizations in Nicaragua, the, the additional stream in Ecuador, or, or optimizing Canoa 1, what we really are trying to do here is make sure that, call it high return, lower risk projects, of, current operating projects, really do generate higher returns than, than sort of new development projects.
We want to make sure that those, we maximize those, and that they have to be sort of top priority, so that we can hopefully meet or beat people's, you know, expectations, our own expectations next year. Using less capital in a time where capital is more expensive, with interest rates, obviously, the cost of growth has gone up. We are making sure that we really focus on the lower hanging fruit, call it. Just a comment, two more comments. One is, we still are working on several M&A files. Nothing obviously to announce. I think that this higher interest rate environment is starting to take hold in certain areas.
There are some people obviously have fixed loans, but there are a lot of projects we see that have floating rate loans. This is the longer the rates stay higher, you know, I think that just means sellers, they're coming to the realization that this isn't sort of a really short-term phenomenon. We are having a lot more conversations on that front, which could get interesting. Lastly, it was not in the disclosure, but the board did approve that we will institute a Normal Course Issuer Bid, at least just have it. It is still subject to. It'd be subject to TSX approval. We don't have that, but we'll work to getting that in the next two weeks. There would be a separate announcement there.
We just think that it's, it's prudent to have that option in place. We still- we think that there's very good return in our shares. If, you know, depending on where the market moves, I think it's always good to have that arrow in the quiver. Because if there's obviously a great return on our share price, then, then I think it makes sense to take advantage of that as well, given that we are building some cash here and the net debt-to-EBITDA is quite low. With that, we can open it up for questions.
Certainly. At this time, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we poll for questions. Your first question for today is coming from Nick Boychuk with Cormark Securities.
Thanks. Morning, Marc.
Hey.
Can you walk us through a little bit more detail on the Dominican Republic, specifically what you're seeing from the regulator and, and how additional growth might be coming online, and also what that means for battery energy storage potential?
Yeah. We are trying to do several things, all at the same time here. I'd say it's get Canoa 2, the agreement in place. I think there's been a. This is taking a little bit longer than we wanted because there is a lot of solar projects, and they have certain capacity limitations. We think they could accept a project, but, they're just trying to work through all the scenarios. We have also talked to them about adding storage to Canoa 1, and even adding, you know, more panels. Just increasing Canoa 1, right now, before even going to Canoa 2. They're very open to that. They, they want to bring on, you know, a lot of the lower-cost renewables.
We think that, at that site alone, we could, you know, double or triple what we have, if, if not more, with storage. They're very interested in doing it. I would say it's taking a little bit longer than we want, but the long term is that, everything for sure is pointing towards, I would say, another project of similar to what we have now, but more- and then call it a, a third, which would, would have some combination of solar and storage. It's hard to know exactly which one is coming first. Like, we, we might add more capacity and panels in the next six-nine months on Canoa 1, and then once we do that, we will likely add some storage on top of that, maybe in 12 months.
We're, we're pushing ahead as fast as we can because they do need the energy, but we are trying to make sure that it's delivered sort of in the shoulder times. And we think there's a return even if we have to cap the capacity. For us, likely the highest return would be just adding more solar panels and waiting on the storage, maybe to 12 months. That's what we're looking at, and I just, I hope to give a lot more specifics on the next quarterly call in terms of how we roll that out, because it really is sort of three things. It's just more panels. Then it's more panels for a second phase, and then storage. The question is, does the storage come as sort of the second part of that or the third?
That's what we're still trying to figure out. All in all, we would see that on that site alone, there should be a, I mean, a, a crippling, if not quadrupling, of the, the EBITDA capacity. It's just, you know, how fast can we push it? That's all.
Got it. Thanks. That's, that's good color. Next, just can we shift to Panama? I'm curious, the MD&A mentions that the, the merchant power price in the market right now is about $144.50 per megawatt hour. How does the contracted market compare? What would it take for you to make that shift to sign a contract?
Yeah, just to be clear, that number was I think that was May. I think we're averaging lower than that, but we're still above 100. The dry season lasted a little bit longer than normal in Panama, so it just we, we did time it well to start. You're, you know, where are you going to get contracts? It's going to be lower. You're going to be, I think, in the 70-80 range. We're still assessing it, but the fact that we don't have any debt on that, the fact that we do think that spot prices will remain high, at least for the next six-12 months, we're not sort of rushing out to contract. I wouldn't expect us to sign anything in the next three-six months there.
In fact, there was actually the, the, the operator put out basically a ruling saying that they couldn't use as much of the... They have two big dams there. Because the, the, the level of dams went down much lower than they wanted to, they're not gonna dispatch as much from those hydros in the rainy season, which is what we're in now. That's gonna last for the next 12 months. Realistically, the spot the spot market is where you want to be in the next 12 months, given that. We'll, we'll stay there, and I would say, so don't expect contracts there. Maybe it's early next year that we, we might do something.
Okay, got it. Staying in Panama, can you comment a little bit on where some of the organic growth initiatives for things like Chiripa Hydro and Panasolar IV and V sit?
Yeah, they're, they're there, I would say, and we, we have even more in terms of, opportunities on both hydro and even more so on solar. And we are- but we're not ready to hit the go button on those just yet because, you know, the borrowing cost is, is high. I mean, the, the, the good news is panels really do continue to come down, at least at the size range that we're, we're looking at. The quotes we've been receiving, are really good. We're, I guess we're just sort of waiting. The pipeline itself has gotten bigger, but I'm, I'm not so sure we're gonna hit the go button on any of those in the next three months here.
Got it. Thank you.
Your next question is coming from David Quezada with Raymond James.
Thanks. Good morning, Marc. Maybe a question, just going back to your comments around M&A. It sounds like pricing expectations in that market maybe are coming down, but have lagged a bit. I mean, it seems like things have already come down materially in North America. I'm just curious, how do you, like, you know, obviously, cost of capital is higher, too. How do you handicap your advantage versus other players in that market? Would you say that since your cost of capital is better, and maybe prices will continue to come down, but, you know, M&A could become increasingly interesting as those price expectations adjust?
Yeah, I, I, I think we do have a cost of capital advantage. The, the issue is that most of the, most of the assets we're looking at, they're in a size range of, let's say, an EV of $50 million to up to $250 million. There still is, it, I would say, a lack of competition in that size range. It's a little bit less, from my perspective, about competition from strategic players than it is just about, the owners', call it, expectations on what is a, you know, a reasonable return, for them. That's really what this comes down to. I don't see a lot of competition. It's just, it's a bit of a timing game.
Okay, great. That's, that's good color. Thanks. Then just like, sorry, on the... You mentioned panel prices continuing to come down. Can you confirm if you've... I guess you haven't yet secured panels for the extension at Canoa or Canoa 2. Is that, is that basically you're just gonna kinda monitor the market and see how prices trend before you decide to do that?
Yes, I would say so far it's worked because we were-- I'd say they're down almost another 10% or 15% from when we signed the PPA. All things are pointing to-- Would I do something now? I'd say we're getting close to that, to doing that, but so far it's worked. In terms of waiting to secure that, as it's gotten a lot better. I would see us in the, you know, before the end of the year, will we do something on panels, be it for Canoa 2 or something in Panama or even Canoa 1? Yes, I would. It's very attractive right now on that side.
Okay, excellent. Then maybe just one more for me, one that's maybe a little bit outside the box. I see that there was a recent auction for capacity, renewable capacity in Guatemala. I'm just curious if you monitored that process and if that is a market that, that you might consider in the future.
The second part, yes, absolutely. We would look at Guatemala. We think it's actually a good market. US dollar is relatively stable, so we would. We did not participate really in that. Monitored a bit, but I would say, to the extent we, we could do things in Guatemala, I, I absolutely would. And we have looked at two or three different sort of partnership opportunities with groups that have projects there, similar to what we did in Panama. We just, we just didn't sort of move those forward really, because last year we kind of had a lot on the go with the three new jurisdictions.
Now we sort of digested, I'd say, you know, integrated, digested, and have a list, I would say, of things to do in those countries, but we also have a short list of a few other jurisdictions that, that we, we do want to have a look at, and Guatemala is on that, for sure.
Okay, excellent. Thanks for that, Marc. I'll turn it over.
Your next question for today is coming from Rupert Merer at National Bank.
Hi, good morning.
Hi, Rupert.
If I could go back to Canoa 2 again, Dominican Republic. Can you talk to us about your financing plans for, for that project?
Yeah. That one would be a traditional project finance. We actually have a lot of interest on that. It's a 15-year contract. We're talking to people about 15-year loans. Interestingly, the rates that we're seeing on project loans for the longer loans have come up, but not nearly as much as the short end of the curve. Our current loan at Canoa is 7.25. seven, sorry. I think it would be, you know, maybe 100- 150 basis points higher than that. But a lot of interest still in that, just doing a traditional project finance, and we think that's a better way to go right now, given where rates are on the short end.
I don't see that as an issue in terms of being able to secure that.
And with the-
An amortizing loan in the 12-15 year time or term.
With the cost of panels coming down, if you were to build 25 MW, what sort of CapEx do you think you could hit on that project today?
It'd be low, I mean, low 20s.
Low 20s.
Million.
Okay.
22-23.
Looking at your, your high return optimization projects, you've got the well rehab going soon. What happens after that? Have you identified the next step in, in well enhancement and, and in how, how good could those next optimizations be relative to, to the one you're, you're going to start next week?
I'd say that we have two more that, that we've identified in the field. Maybe they're not as... You know, obviously, we're starting with what we think are the, the best, principally being four two, really, in terms of the data we're seeing, should be the best target. Then you move sort of down the list. I'd say we easily have two more that, that would be considered good targets, and we sort of see how the process goes, on the first two. If they go well, then, given that it's not, you know, our budget on this is running, it's lower than we initially thought, it's probably around $800,000-$900,000 for the two wells.
With the potential that, you know, we're targeting, obviously, well, let's say two to five in total, you know, that's about $2 million-$4 million extra in revenue a year. We wouldn't wait around that long. The, the most of the equipment, is in country, actually, that we're using. Yeah, I don't think we would wait two or three years. If, if we have reasonable success, and given that it's not a high CapEx item, could it be a next year item? Yeah, for sure.
Great. And just quick follow-up on that. With the number of megawatts coming offline, that shouldn't have any impact on the binary, I imagine? Binary, you expect to be running still at full capacity.
Yeah, maybe. Well, it's a good point. Maybe like point two. I'd have to get back to you on that. It.
Okay.
It's not gonna be very noticeable...
Sure.
There, there is a little bit of brine, not from four two, but there is a bit of brine coming from six three that will be offline for, call it, 1 month.
All right. Very good. I'll leave it there. Thank you.
Okay, thanks, Trevor.
Your next question is coming from Naji Baydoun, with iA Capital Markets.
Hi, good morning. I wanted to go back to your comment about sort of the leverage profile and, and being comfortable growing the balance sheet. I'm, I'm just wondering if you can give us a bit more of a sense of what your sort of comfort level would be, and, and what are some of the... I, I guess, what's the excess capacity that you would be willing to take on to, to finance new projects?
Well, yeah, it's sort of sub 2.5 net. We would do... You know, I think something 3.5-four, you know, on a consolidated basis, is an appropriate level for us. I mean, we are so contracted, and with good length on our contracts, that we for sure could have more, more debt. It, it, be... And I think, you know, when I go north of four, no, 3.5-four seems like the right number. However, what I would say is, you get more into, you know, should we do a project finance loan for Canoa 2, or should you do, you know, some type of corporate bond or... And that, it becomes more a debate as to what's the right structure. There's just a difference.
You know, for instance, if we can borrow at 8% for Canoa 2, people are borrowing way higher than that on the short end of the spectrum right now. My view is, unless we see the combination of two things, which is some new projects, that we really like, that have, call it 15% plus IRRs, and I can fund Canoa 2, the equity part, out of our current cash flow. We can fund these optimization projects out of our current cash flow. I would rather do an 8% project loan than go do a bond at realistically double-digit percentages in this market. The limiting factor in terms of where we get to, You know, the short-term rates do have an impact on that.
The good news is, we don't, we don't need to push it right now. I would prefer to borrow at eight on the project side. And, you know, in the next six, 12 months, we see where the short end goes, and if it, if it improves at all, then we could for sure look to do something. I'm sort of, of the mind that, you know, given that we can do all of this in Canoa 2 with, with what we have and, and even have some extra cash flow, I would rather just continue to do that, and let's just see where the short end goes. Then if that sort of improves, then we do have lots of room, for sure, to do more.
I just don't expect it in the next three-6 months.
understood, and that makes sense. Sort of leading into the question more broadly about capital allocation, especially here with what you mentioned about the NCIB, I guess capacity to take on more leverage to finance growth. You want to put in the NCIB to have that optionality. I guess from a other capital allocation framework, is your preference today for, you know, potentially, obviously growth first, but maybe buybacks over dividend increases?
Yeah, yeah. If, in terms of where, where is the capital allocation, I would say if just purely if we're saying, okay, let's compare a dividend increase versus NCIB, right now, I would say maintain the dividend, but do NCIB instead of dividend increases, because that gives us the optionality, because we do see the potential that there could be a lot of growth. If the, if the cost of that growth remains high, we can, we can use the NCIB in the short term, because I think that would be a good use of capital. Then if rates really come down, we can add more projects, and I would rather have the dividend where it is, and then we can use capital in new projects at higher returns, right?
I think that's why the NCIB, that's why we would do that now instead of dividend increases. You know, we continue to pay down debt, we continue to pay a dividend, NCIB is just another way to give capital back to shareholders. I, I think it's also good to add, to add something into the mix as opposed to just doing a dividend increase. In terms of growth, for, for me, the growth, you know, where we rank that, it really depends on, on the return of that growth. The point on the optimizations is that the returns on those are so far above, I would say, our cost of capital, that we want to do all of those. I'd say Canoa 2 is for sure above.
our cost to capital, the return that we see, that we for sure want to do that. To the extent we can land on, let's say, an acquisition or new project that are above that, we for sure want to do that, and the dividend increase that may not help that, whereas an NCIB has the flexibility to, to, you know, to, to, I guess, live on either side of that equation.
Understood. The $60 million of runway EBITDA that you referenced earlier, I think that's more of sort of number for this year. When you factor in these optimizations, maybe kind of two, it starts to get much higher than that. Do you have sort of a short to medium-term target, let's say, in the next couple of years, just, just based on the optimization and maybe Canoa 2 and, and one or two other projects?
You know, I have one in my head. I'm not gonna. The issue is that the well optimizations really we'll know in a month. So I'm gonna sort of reserve what, you know, maybe a range. I mean, there's a range. I said, we said 2-5 megawatts, that's almost $2 million-$5 million. Then, you know, palavi is another $800,000-$900,000. The battery crew is not a lot, it's $200,000. The Canoa 1 optimization, which we're still wrestling down a little bit here, and I think we will have that wrestled down the next few months, that could be a big number in that as well. Then to Rupert's point, if we do have success on these well optimizations, we like, we might do another one.
Yeah, I mean, you can start to add up a reasonable amount of EBITDA there, with low CapEx, and call it when we report Q3, we'll obviously have an update on the well, the, the well optimizations, Canoa 1. So I'm a little bit... I, I just don't want to give a range yet, but we will.
No, understood. That's fair. I guess, more updates in the next few months as you work through these things. That's... Thanks for answering my questions. That's all I have today.
Your next question for today is coming from Ahmad Shaath at Beacon Securities.
Hey, guys, congrats on a solid quarter. I guess most of my questions have been asked. Maybe just clarification on the timeline for Canoa 2. Sounds like we shouldn't expect any contribution in 2024 numbers. Did I get that right?
For safety, I would say that's correct. Yes, based on where we are right now, assuming we nail it down the next three months, you got a 12-month, 12-15-month construction. Yes, I would say that's correct. To go back to what Matthew was getting at, though, is, is I hope to be able to offset that, you know, with a couple other things here, in terms of both Canoa 1 improvements and the optimization. In terms of when would Canoa 2 come online, yes, I think a model from a modeling perspective, 2025.
Perfect, thanks. On what you're working on, in the Dominican, is that gonna be material enough that you guys plan to press release it separately, or we'll just gonna have to wait for the quarter results to hear about, what are you guys doing there in terms of maybe adding capacity?
I, I may not understand the question, but I would say, obviously, anything on Canoa 2 would be press releasable. I think, in terms of... Was your question sort of, would we press release something on if we're doing optimization on Canoa 1? Is that what your question is?
Well, well, both. I guess you answered the first part, but I guess Canoa 1 would not be that material to press release on its own, I imagine.
Yeah, I don't think it would be. I think that would be more we, we'll be giving sort of guidance next quarter in terms of what a rollout might, might, might look like. Essentially, what should people put in their numbers for next year as opposed to what they are right now? I don't think that's really a press release.
Yeah, fair enough. I appreciate that.
Unless it's so material, but I, I don't, I, you know, at this point, I would say no.
Fair enough. Much appreciated, I guess. Congrats again.
Thank you.
Your next question is coming from Devin Shilling at PI Financial.
Hi, guys. Nice quarter here. Just a quick housekeeping item here for me today. Just looking at your G&A expense, it was down quite nicely this quarter. Just wondering if there's anything one-time here, or is this the, the new run rate we should be going with going forward?
I'm not sure. When you say down, Devin, we, I, I don't know if we have that in ours, because where, where do you see that? We have it going up. The, the trick for us is that last year, the, the first. Well, the same period, whether it's three or six months last year, we didn't have the acquisitions in, so it's hard to actually compare on a year-over-year basis.
Okay, yeah, sorry. My mistake here. I can follow up on that.
Q3, Q4 of last year, when we did have those in, we're kind of flattish to those numbers. That's how we are looking at them.
Okay, yeah. No, that's my mistake here. All good. Thanks, guys.
Okay. Yeah, but, but, but flat, yeah. We're happy with where the G&A numbers are.
There are no further questions in queue.
Okay. Thanks, everyone.
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