Afternoon, everyone, and welcome to EVERTEC's Second Quarter 2021 Earnings Conference Call. Today's conference call is being recorded. At this time, I would like to turn the call over to William Maina of Investor Relations. Please go ahead.
Thank you, and good afternoon. With me today are Max Schuessler, our President and Chief Executive Officer and Joaquin Castillo, our Chief Financial Officer. Before we begin, I'd like to remind everyone that this call may contain forward looking statements and should be considered in conjunction with cautionary statements contained in our earnings release the company's most recent periodic SEC report. During today's call, management will provide certain information that will constitute non GAAP financial measures under SEC rules, such as adjusted EBITDA, adjusted net income and adjusted earnings per common share. Reconciliations GAAP measures and certain additional information are also included in today's earnings release and related supplemental slides, which are available in the Investor Relations section
of our company Web at www.evertechinc.com.
I will now hand the call over to Mac.
Thank you and good afternoon, everyone. Thank you for joining us on our Q2 2021 earnings call. We delivered another strong quarter of financial results Latin America, we continue to benefit from recent implementations as well as effective management of our operating expenses. Based on our Q2 results and the momentum we see heading into the second half of the year, we are again increasing our guidance for 2021. Joaquin will provide further details later in the call.
Beginning on Slide 4, our total revenue was $149,000,000 for the 2nd quarter, An increase of 26% compared to Q2 of 2020. Adjusted EBITDA was $80,000,000 an increase of 60% as compared to the prior year. Our margin for the Q2 was approximately 54%, over 1,000 basis points higher than last year, reflecting The scalability of our business, our adjusted earnings per share was $0.78 an increase of 105%. We continue to generate significant operating cash flow during the quarter of $112,000,000 and we returned approximately $32,000,000 to our shareholders through dividends and share repurchases. Additionally, our liquidity remains strong at $319,000,000 as of June 30.
Moving on to our update for Puerto Rico on Slide 5. We saw strong volume and revenue growth in Q2 driven by the incremental inflow Federal stimulus funds and increased consumer spend versus last year, which was significantly impacted by the COVID-nineteen lockdown. Merchant Acquiring sales volume growth was approximately 63% year over year, reflecting transaction growth of approximately 68%. Most of this growth was driven by the months of April and May, which experienced sales volume increases of approximately 100 and percent and 69% year over year respectively. Our results in Puerto Rico also benefited from continued strong growth in ATH Movil Products, which delivered approximately 60% year over year revenue growth.
I'm also pleased to report that our previously announced large printing contract, which we signed in the Q1 is fully implemented and in production. As a reminder, this is one of the largest printing contracts in EVERTEC's history and is anticipated to benefit our Business Solutions segment in the back half of twenty twenty one. Turning to the operating environment in Puerto Rico. As I mentioned and as you can see in our results, the combination of the reopening of the island and the incremental federal stimulus funds continue to Vaccinations continue to increase and with over 60% of the population fully vaccinated, The Puerto Rico government further reduced restrictions in early July and the economy is mostly open today. We do continue to monitor the effects of the Delta variant, which, As has been the case in other places, has resulted in an increased number of positive cases over the past few weeks.
Now turning to Latin America on Slide 6. As I mentioned in our last call, we continue to see varying levels of COVID-nineteen restrictions, Vaccination levels and reopenings from country to country. For example, vaccine distributions began in late February in Brazil, Colombia, Chile and Mexico. However, infection rates still remain relatively high in these countries. So we remain cautious with respect to our outlook for recovery throughout the region.
Nevertheless, we are pleased to have delivered another quarter of strong double digit revenue growth in Latin America. Our performance continues to be driven primarily by the implementation and go live Of the major wins and expander relationships we discussed throughout last year, including Banco Popular of Costa Rica, 19 across our geographic footprint and remain cautious in certain countries. Underlying demand for our solutions is robust and we continue to execute well against our growth plan. Our cash flow generation and balance sheet remain very strong, enabling us to continue executing on our capital deployment strategy. I will now hand the call over to Joaquin to review our results and guidance in more detail.
Thank you, Mac, and good afternoon, everyone. Turning to Slide 8, you will see the consolidated second quarter results for EVERTEC. Total revenue for the 2nd quarter was 100 and $9,100,000 up approximately 26% compared to the prior year's COVID impacted results of $117,900,000 As Mac mentioned, our Q2 results reflect increased transaction volumes in Puerto Rico, mainly impacted by the influx of federal stimulus and by improved consumer demand, As well as double digit growth in LatAm driven by our recent new business implementations and expanded relationships. Adjusted EBITDA for the quarter was $80,300,000 an increase of 60% from $50,200,000 in the prior year. Adjusted EBITDA margin was 53.8 percent and this represents an increase compared to the prior year of over 1,000 basis points.
This expansion in our margin primarily reflects the higher payment revenue in both Puerto Rico and Latin America, the favorable impact of foreign The higher adjusted EBITDA and lower cash interest expense. This was partially offset by increased operating depreciation and amortization, Adjusted EPS was $0.78 for the quarter, an increase of 105% compared to the prior year. Moving on to Slide 9, I'll now cover our segment results starting with merchant acquiring. In the Q2, merchant acquiring net revenue increased 50 5% year over year to $38,300,000 driven primarily by increased sales volume reflecting stronger consumer demand and a significant impact And transactions increased approximately 68% year over year. On a month to month basis, sales volumes were up 118 in April and approximately 69% in May, reflecting the severe impact of COVID-nineteen lockdowns in the same month last year.
Sales volume growth slowed to approximately 27% in June as the initial shock of the pandemic during the prior year began to subside. We saw consumer demand improve toward the end of the Q2 in the prior year. Our results also benefited from incremental EBT funds that began in March of Adjusted EBITDA for the segment was $20,500,000 up 54%, driven by higher revenues in the quarter. Adjusted EBITDA margin was 53.6%, a decrease of approximately 40 basis points as compared to last year, Primarily driven by a higher number of transactions processed is a result of a lower average ticket. On Slide 10, you will see the results for the Payment Services Puerto Rico and the Caribbean segment.
Revenue for the segment in the second quarter Consistent with the Merchant Acquiring segment, payment services transaction growth was highest in April, then moderated in May and again in June. ATH Movil and ATH Movil Business Transactions contributed an incremental $1,700,000 of revenue in the 2nd quarter. Additionally, the segment benefited from increased intersegment revenue for transaction processing and risk monitoring services for Latin America. Adjusted EBITDA for the segment was $23,600,000 up 78% as compared to last year. Adjusted EBITDA margin was 61.2%, up over 1200 basis points as compared to last year.
The significant increase in our margin was primarily due to higher revenue and scalability of this segment compared to last year's pandemic impacted results In a segment with a high percentage of fixed costs. On Slide 11, you will see the results for our Payment Services Latin America segment. Revenue for the segment in the 2nd quarter was $25,800,000 up approximately 30% as compared to last year. As Mike mentioned, this increase was driven by the new business implementations and expanded relationships such as Banco Popular of Costa Rica Mercado, Ure Mexico Adjusted EBITDA margin was 42.5 percent, up approximately 1200 basis points as compared to last year, Driven by higher revenue and the benefit of balance sheet remeasurement in non functional currencies of approximately $1,500,000 As a reminder, our Latin America segment margin is currently benefiting from established minimums in the Santander contract with low transaction levels. We would expect margins On Slide 12, you'll find the results for the Visa Solutions segment.
Visa Solutions revenue for the 2nd quarter was up approximately 9% to $60,700,000 The revenue increase in the quarter benefited from incremental volumes on core banking services provided to Popular, growth from services that started in the second half of last year and growth of our new Printing contract, which Mike referenced earlier. For the quarter, adjusted EBITDA was CAD30.6 million, An increase of 27% and adjusted EBITDA margin was 50.5%, up approximately 7 20 basis points as compared to last year. The adjusted EBITDA margin improvement was primarily driven by the revenue growth as well as lower operating expenses, Primarily a decrease in cost of sales coupled with lower employee expenses as the prior year included special payments for employees working on-site during the pandemic lockdown. Moving on to Slide 13, you will see a summary of corporate and other. Our 2nd quarter adjusted EBITDA was a negative five $500,000 a decrease of 16% compared to prior year.
Adjusted EBITDA as a percentage of total revenue was 3.7% And lower than prior year by approximately 190 basis points, primarily due to the higher revenues and cost controls. Moving on to our cash flow overview on Slide 14. Our beginning cash balance was approximately 221,000,000 Including restricted cash of approximately $18,000,000 Net cash provided by operating activities was approximately $112,000,000 Nearly $25,000,000 increase compared to prior year. Capital expenditures were approximately $30,000,000 In part driven by higher obsolescence spend as we accelerate some projects as well as continuous focus on innovation. Regarding capital expenditures for the full year, we now anticipate approximately $60,000,000 of CapEx, up from our prior guidance of $50,000,000 to 55,000,000 We also recorded approximately $15,000,000 for the extension and expansion of our relationship with FirstBank during the Q1 and debt securities Purchased in the prior quarter of $3,000,000 We paid approximately $25,000,000 in long term debt payments, $9,000,000 in withholding taxes on share based compensation and $2,000,000 of other debt pay downs, which resulted in a total net debt decrease Approximately $35,000,000 We paid cash dividends of approximately $7,000,000 and repurchased Approximately $24,000,000 of common stock for a total of approximately $32,000,000 returned to our shareholders.
We have approximately $76,000,000 available for future use under the company's share repurchase program. Our ending cash balance as of June 30th was $219,000,000 and this included approximately $19,000,000 of restricted cash. Additionally, We recently announced another $0.05 dividend to be paid on September 3, 2021 to shareholders of record as of August 2, 2021. Moving to Slide 15, you will find a summary of our debt as of June 30, 2021. Our quarter ending net debt position was approximately $276,000,000 comprised of approximately $200,000,000 of unrestricted cash And approximately $476,000,000 of total short term borrowings and long term debt.
Our weighted average interest rate was 4.5%. Our net debt to trailing 12 months adjusted EBITDA was approximately 1.47 times. As of June 30, Total liquidity was approximately $319,000,000 This balance excludes restricted cash and includes the available borrowing capacity under our revolver. Moving to Slide 16, I will now provide you with an update on our 2021 outlook. Given our Q2 results and additional visibility, we now Our adjusted earnings per share outlook of $2.56 to $2.66 represents a growth range 24% to 28% as compared to the adjusted earnings per share in 2020 of $2.07 On a GAAP basis, earnings per share is anticipated to be between $2.01 to $2.11 Our payment segments in Puerto Rico had a very strong first half of the year driven mostly by the impact of COVID related federal stimulus impacting consumers directly.
We'll continue benefiting from this tailwind in the second half, but do expect some moderation when compared to the first half as we begin to move away from when these funds were dispersed and in the Q3. Additionally, we continue to expect normalization of the average ticket as well as mix of cards, which will pressure our merchant spread. We continue to expect our LatAm growth for the full year to be in the high teens. Our Business Solutions segment should see some moderation in comparison to the first And down in comparison to prior year as we had a significant one time benefit from the Barnabas Education contract last year And as some of the COVID related services provided to the government begin to subside. We now believe adjusted EBITDA margins will be in a range 49% to 50%.
We continue to expect some margin headwind from the normalization of the average ticket and the high margin benefit of the Department of Education contract Last year, we are also expecting incremental expenses in the second half of the year as the annual merit increase given to employees in July takes effect and we execute on specific initiatives that will continue to improve our operations and products going forward. We continue to expect our full year tax rate to be in a range of 13% to 14%. Our guidance also includes the benefit
At this time, we will begin the question and answer session. At this time, we will pause momentarily to assemble the roster. And this afternoon's first question comes from Bob Napoli with William Blair.
Thank you. Good afternoon. Congratulations. Really strong results. Thanks, Bob.
Great to see. I guess, the tricky part is trying to figure out what's the change for the long term. Puerto Rico, Latin America has a lot of cash and COVID is made, I think it probably accelerated permanently the digital shift. Is that do you have any Feel for that is, I mean, is it able to are you able to parse that out of the numbers and what you think is like a permanent Secular shift versus temporary led by stimulus programs and the like as we think about 2022, if you would?
What I
would say, Bob, we definitely see obviously the move towards the digital channels. And as we continue to report H Mobile, ATH Mobile Business, specifically in Puerto Rico, we are seeing and we expect, as we've said in the past, some of that to definitely In terms of parsing it out, obviously as things start to open up and you start to have again kind of people going into brick and mortar restaurants, We are expecting to see some of that card present come back. But again, I don't know if we can parse that out specifically
or that we will right now for 2022. I would add, Bob, I mean, some of it is permanent. And if you notice during the quarter, we did grow 60% in some of those channels, which is still incredibly healthy. It's much slower than I mean slower than we saw in previous quarters when we were in lockdown mode or coming out of the lockdown. The 60% is still healthy.
What I would say is some of the trends in more P2P transactions, more ATH mobile business transactions, The increased demand of Place2Pay, our e commerce gateway that we're seeing increased demand in Costa Rica more than we saw prior to the pandemic and that's a combination probably of a Just a shift of spend and also that we have a better product that we've rolled out in some of these markets. Some of this is a permanent shift, we believe, And a trajectory that will continue to be helpful to our business. But at this point, it's very difficult to parse that out. But some of this is definitely permanent.
The large credit contract for business solutions, is that Like a one time revenue source or is that an ongoing benefit? And can you quantify it?
The branding contract, Bob?
You said you had a very large credit, I think, contract?
Yes. So it was actually a printing contract, Bob, and that
was Okay. Printing Control.
Yes. But it was I mean, it
was meaningful to that segment, to that business in particular. It is not just a one time deal. It's a longer So it will have a positive effect into the future. It started during the quarter, so it's not Fully annualized in our numbers, it will fully annualize next year, but it's not a one time deal. It is an ongoing contract with A very large company in Puerto Rico to do their printing.
Okay, great. And then just what was the July transaction growth? And last question for me, how is Chile doing?
Sure. So I'll take Chile. Chile, again, we've been pleased with our progress. We said on the last call, they exceeded where they thought they would be at this point during the year by rolling out the product. To our knowledge, they were the first ones in the market rolling out a product that competes with TransBank.
We're in the process of localizing now the e commerce gateway place to pay. So that project is going very well and exceeding expectations. When it comes to the July numbers, I'll hand that to Joaquin.
In terms of the July numbers, Bob, we're still Going through and kind of cleaning the numbers, but there was some moderation sequentially from what we saw coming out of the month of June. So and that is something that as we said in the prepared remarks, we kind of expect, right? I mean, we did see a very significant pickup here in PuTiny, Mainly driven by kind of the push up of the stimulus coming into Puerto Rico and kind of making that month of April, May really high bars. And what we're seeing now is we're going to move a little bit away from when that was dispersed. The month of June just on a sequential basis Was slightly lower than the month of May and the month of July slightly lower than the month of June.
Thank you. Appreciate it.
Thanks, Bob.
Thank you. And the next question comes from Jamie Freeman with Susquehanna.
Hi. Thank you. Great results here, Mac and Joaquin. You had mentioned Joaquin Dividend benefit.
Yes.
Yes. What's that about?
So we have an equity method investment where we usually just kind of recognize the Our portion of ownership of their net income, but this time around they provided or they paid a dividend that from our perspective impacts positively Our EBITDA unit is a cash transaction. In the Dominican Republic with Comtal, So we own a stake in the Dominican Republic Processing Company, CardNet, and that's what we're referring We received the dividend this quarter and the dividend is impacting positively the margin.
Okay. Did you I'm just trying to get the kind of normalized EBITDA margins. Did you quantify that? It's on Page 8, right?
I can The normalized margin for the quarter is about 51%. If you exclude actually, if
you exclude
And we usually also normalize for the foreign currency remeasurement.
Got it. Okay. And then, Mac, is there any way to proportionalize, MELI, BIPOP And Santander Chile, and I didn't hear you mention Citi this time. Like which of those is The most significant or just generally, what stages are they in maybe is a
better way to say it? So, let me say this.
So, to be clear, it's Banco Popular Costa Rica, so it's not Puerto Rico. And so is it. And The largest of those is Santander Chile. Each of them are meaningful to the segment. And reputationally, as you know, Jamie, MercadoLibre is one of the most valuable companies in the region and the most sophisticated e commerce company in the region.
So reputationally, we think that they're all important. But then there Chile is the largest.
Okay. And any reason you didn't mention City in Mexico?
No. No reason in particular.
Yes. Citi continues we continue to work on Citi. I think the only difference there that I would kind of bring to your attention is Meli has gone into production and we are already kind of seeing some of the progress. Cities on our platform that even though it's now in production We'll grow as we start to kind of create more volume within that platform. So it's something that will grow into something more meaningful Over time, as we start to drive more and more transactions.
Got it. Thank you. I'll drop back in the queue.
Thanks, Jamie.
Thank you. And the next question comes from Vasu Galvo with KBW.
Hi, thanks for taking my question and congratulations on a strong quarter. I guess my first question just on the second half guide, it seems like the despite the tough comps, you guys are And it sounded like the delta versus your prior expectation is mostly better stimulus funding that's been in the hands of the consumers. Is that kind of the biggest delta now versus before? Or are you also seeing just underlying macro trends with the Federal stimulus moving in and things like that.
I mean, I think it's a bit of everything, right? Definitely, stimulus It's impacting many of the macro trends that we follow in Puerto Rico. So again, it's very hard to parse out how much Of the stimulus, we'll continue to have a kind of a long lasting effect. But for sure, I mean, coming out of Q2 and the amount of That have been received and what we're expecting will continue to be a tailwind will be part of what we're expecting or what we now expect in the second half of the year or in the new And guidance that we provided. So it is an important part of that.
Understood. And then just following up on the margins, even with the adjustments to the And you have some puts and takes in the back half. But as we think about margins longer term, I mean, I would think that you should continue to see an Board bias as revenues expand. I mean, can you frame for us how you think about annual margin expansion in a normalized environment?
Look, we've been consistent in this in saying that as we grow our top line, we should be in a position to expand margin. Having said that, We are growing very fast in Latin America where we are driving kind of a lower margin than what we have in some of the Puerto Rico segments. In addition, just kind of thinking about the second half and some of the puts and takes, as we have some of the average ticket in our merchant acquiring And some of the slowdown in just the overall stimulus plus the change in product mix that will put just pressure on the overall yield per transaction, so that should get reflected on the overall margin. But in general, as we look forward, I mean, we do see this we're very margin focused. You can see the scalability of the business when we drive top line.
Got it. And just a quick one for you, Mac. Just the M and A pipeline, what's that looking like? Security valuation seems to be getting out of hand in this environment. So Should we expect you guys to keep doing more buybacks or just updated thoughts on M and A?
Yes, I
would say our thesis hasn't changed. I mean, you've seen Pretty high valuations in Latin America with some of the more recent deals, but we do have opportunities that we're opportunities that we're excited about. So I would say we have a healthy pipeline on things that we are working through. And I would say it's not only another sort of part of your question, Vasu, but It's not only on the M and A front, but organically well. So organic, we also have a pretty good pipeline.
So it's something we're still focused on. We will try and have a balanced approach to capital allocation and
Thank you. And the next question comes from James Faucette with Morgan Stanley.
Thank you very much. Just wanted to follow-up on Bless you, questions and particularly as you're thinking about how you're incorporating the stimulus and as that Rolls off. And I'm wondering how you're taking into account things like or if you're seeing Visitor shift changed to Puerto Rico, how you're anticipating that maybe coming back or having an impact? Just Looking at some of the other dynamics that can be at play, particularly for that market.
Sorry, James, did you mention Visitors? You mean tourists?
Yes, tourism, etcetera, to Puerto Rico and what's happening now and how that's impacting your outlook?
No, it does. I mean and that's probably what I mentioned in terms of product mix. We've been now for a few quarters Kind of calling the attention of a higher spread in our Merchant Acquiring segment driven by the average ticket, but also the product mix. In the past few quarters since the pandemic, we've seen a lot more debit and a lot more domestic transactions than we had in the past. So we're definitely as we move forward considering that those three main factors will start to move towards normalization.
That's something that we've actually already seen. And in the case of domestic versus, Let's say international or cross border transactions, that is almost back to pre pandemic and numbers. And the reason being over the past quarter travel to Puerto Rico has actually improved Significantly, I believe it's only if we go based on numbers about 6% below 2019 and actually the month of June, I believe it's one of the highest passenger months we've had since the airport went private, which was close to 10 years ago. So We are definitely seeing some of the tourism come back, and we are considering some of those kind of No one says that the change in just in the overall economy can have. Having said that, remember that the reason for Puerto Rico is only About 5% to 8% of GDP.
So it's not a huge number.
And I think what we're saying to some extent is what the rest of the With hurricane money coming in, potentially with the infrastructure bill coming through, they will continue to see some nice tailwinds Remaining of the year and going into next year. But again, it's hard to predict with the Delta variant, what will get and how quickly will funding come through Puerto But to Joaquin's point, tourism is back in Puerto Rico, but it's not a significant part of the island's economy nor really our business per se either.
Yes. I appreciate that. And just trying to make sure that we have kind of all the pieces at least as complete as we can. On that on hurricane relief and the infrastructure bill, are there any Areas that you're paying particularly close attention to in terms of sizes or projects and other things that will merit monitoring As to that impact, depending on obviously how that whole process plays itself out politically, but are there specific projects or things that You're paying closer attention to?
Look, I think the infrastructure bill is an important one just because of its Sure size, I would say that there are other projects that involve some of the, for example, Medicare and Social Security parity For Puerto Ricans, which is something that we haven't considered because again it's something that has gone back and forth in Congress a few times. And that if it does Go the way Puerto Rico, it should be incremental federal funding on a recurring basis Going into the future, so I would say that that's an important one that we haven't necessarily discussed in the past that's out there. And I would say just the overall progress of the reconstruction funds continues to be something very important for us to track as well as The reconstruction of the electric grid, right? There were about $13,000,000,000 allocated towards just the revamp of the And even though that's not something that we were expecting or expect to see kind of impact the economy in the next 6 months, It is something where Luma has been selected, progress has been made and hopefully the government moves fast
That's really good color. Thank you very much.
Thanks. Thanks, James.
Thank you. And the next question comes from John Davis with Raymond James.
Great to see the revenue raised by more than the 2Q upside, but maybe by segment. I think you guys have laid out some kind of growth targets for the beginning of the year on what you're kind of modeling or assuming. Clearly, those have been upgraded. But just curious, maybe if you can't get by segment Like where the most upside is and how we should think about growth and the difference between segments?
I mean, I think what we can do for For purposes of doing by segment, John, it's going to give where we expect to be top line growth for the whole year, right? We don't give quarterly guidance and I think We already have obviously the first half, but as it relates to merchant acquiring, I mean, our expectation is given obviously the range We'll be kind of in the high teens to low 20s in terms of where that segment will be. When we look at Payment Puerto Rico, We would expect that to be in the high teens for the full year. LatAm, we would also expect that to be high teens, low 20s. And then in the Business Solutions segment, we expect that still to be kind of low single digits.
I mean as we go into second half in Business Solutions, we do have the headwind of the department's allocation contract, Which was again about $4,000,000 in Q3 and that was pretty significant to both the top line and EBITDA because of We recognized net of expenses. So it was a pretty good contribution to margin. And so at a high level, that's kind of the breakdown of the different segments.
Okay. No, that's exactly what I was looking for. Super helpful. And then maybe just around ACH Mobile, just trends, curious How that's trended during the reopening? Have you seen kind of continued growth and traction within ATH Movil?
And I apologize if I missed it. Maybe any updated stats that you can give around that would be great.
Yes. So that we mentioned In the early comments, about a 60% growth for the quarter. So we are still seeing and I think it alludes back to one of your colleagues' questions. I think, Bob, I mean, we are continuing to see very healthy growth in that product line. It's not what it was 2 or 3 quarters ago, but We do think that's a permanent trend where people will continue to use ATH Movil and they will continue to use it for more transaction types.
But it's not what it was the last couple of quarters, but 60% is pretty healthy given that we're sort of have come out of the lockdown.
Okay, great. And then Mac, maybe a bigger picture, more philosophical question for you. Leverage is now turn and a half Headed towards 1 probably by the end of the year given the significant growth that you guys are achieving this year. I assume you're not going to let leverage just continue to go lower. And I understand M and A valuations are somewhat stretched.
So If I go back pre hurricane, you got a $0.10 dividend, I believe now it's $0.05 a quarter. How do you think about dividends versus buybacks? Is special dividends something you guys would consider? Just curious on capital return for shareholders, how you guys think about it?
Yes. So our number one priority is growth, and we do and we think that's through investing in our business organically and then M and A. So that will continue to be our focus. I think the balance sheet, we're in a great position to continue to invest in those areas. And we do know that M and A Remains important for us.
So that will be our top priority is to continue to grow the company because we think we're building a unique franchise in Latin America That is unusual and is creating value long term for shareholders. We do look at buybacks and we do look at dividends. I wouldn't parse those out on this call as to which we would move on in any certain direction, but our focus is growth.
Okay. All right. Thanks, guys. Thank you.
Thank you. And that does conclude the question and answer I would like to return the floor to management for any closing comments.
Again, I want to thank everyone for joining the call today. We look forward to catching up with you in conferences over the quarter. And everyone have a good night.
Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.