Greetings, and welcome to Gaming and Leisure Properties 4th Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the presentation. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Joe Jaffani, Investor Relations.
Thank you. Please go ahead.
Thank you, Brenda. Good morning, everyone, and thank you for joining Gaming and Leisure Properties' 4th Quarter 2018 Earnings Call and Webcast. The press release distributed earlier this morning is available in the Investor Relations section on our website at www.glt
ropinc.com.
On today's call, management's prepared remarks and answers to your questions may contain forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements address matters that are subject to risks and uncertainties that may cause actual results to differ from those discussed today. Forward looking statements may include those related to revenue, operating income and financial guidance as well as non GAAP financial measures such as FFO and AFFO. As a reminder, forward looking statements represent management's current estimates and the company assumes no obligation to update any forward looking statements in the future. We encourage listeners to review the more detailed discussions related to Forward looking statements contained in the company's filings with the SEC as well as the definitions and reconciliations of non GAAP financial measures contained in the company's earnings release.
On this morning's call, we are joined by Peter Carlino, Chairman and Chief Executive Officer and Steve Snyder, Senior Vice President of Development and Interim Chief Financial Officer at Gaming and Leisure Properties. Also joining today's call are Desiree Burke, Chief Accounting Officer Brandon Moore, Senior VP, General Counsel and Secretary Steve Loudanyis, VP Finance and Matthew Demchak, Senior Vice President of Investments. With that, it's my pleasure to turn the call over to Peter Carlino. Peter?
Well, thank you, Joe, and good morning, everyone. We're, of course, very pleased to report on the conclusion of Another outstanding year at Gaming and Leisure Properties. As highlighted in our earnings release, We completed $1,500,000,000 of new investment, at the same time diversifying our tenant base with the addition of Eldorado Resorts and Boyd Gaming. In the process, we added, as indicated, 8 new properties And increased our real estate revenue by $155,000,000 I'll make the observation that we sometimes are questioned about our pipeline And note that some of our competitors rely heavily upon that thought. We've never had a pipeline And yet we've managed to do a terrific job over the last 5 years building what we think is the outstanding company in this industry.
So and as usual today, we have most of our senior management team here with you. I'm going to turn the Program over to Steve in just a moment. He'll introduce Matt Dancic, who will as the last person to join us. They will make a few comments to introduce themselves, and then we'll move quickly to your questions, and our team is here to answer them as best we can. So With that, Steve.
Thank you, Peter, and good morning, everyone. Before I get into just a couple of highlights of housecleaning matter, We also filed this morning our annual report on Form 10 ks with the Securities and Exchange Commission. So you have that information available to you as well as the press release. Just a few highlights on the press release. I would point out That our 4th quarter results as we relate to EBITDA and AFFO per share, we're right on the guidance that we issued in In conjunction with our Q3 of 2018 earnings release.
Additionally, just a couple of highlights. You can see on a year over year basis some of those highlights. You're looking at adjusted EBITDA with a 17.3 increase on a year over year basis and AFFO per share for the quarter at an increase of 9.1% on a year over year basis. So as Peter had mentioned, we were very pleased with the performance of the business during the quarter. Just moving on to some things that aren't in the press release that I want to highlight, giving you a portfolio update, As you're aware, we've got no variable rent resets here in calendar 2019.
The Penn lease did have its variable reset last year and we will not see that again until 2023 And the balance of the leases in the portfolio do have biannual order every 2 year resets and amended Pinnacle lease, the Boyd lease and the Eldorado lease, which will not be affected until the next reset 2020. Highlighting a couple of lease coverage factors For our master leases, the Penn master lease on a trailing 12 month basis at twelvethirty one was covering at 1.88 times. The amended Pinnacle master lease on a trailing 12 basis at year end was covering at 1.83 times And the 3rd Penn lease, the Meadows lease was at 1.92 coverage for trailing 12 as of calendar year end 2018. As to the Boyd mass release, you heard from Boyd in their 3rd quarter earnings call and you'll hear from them on their 4th quarter Earnings call next week, but in their Q3 call, they indicated that for the balance of 2018, they expected lease coverage to approach 2 times. And finally, Eldorado, whom you'll hear from in 2 weeks, did close into the Tropicana acquisition At rent coverage, that was nearly 2 times.
Finally, as it relates to the lease portfolio, the real estate portfolio, In the quarter, we reversed the interest that we had accrued previously on the loan to Casino Queen And we've ceased accruing income. We've ceased accruing interest income on the Casino Queen loan and have restated that balance Back to its original balance of $13,000,000 on the balance sheet. The company has hired an investment banking firm. They are in the process of evaluating strategic options, which we are staying on top of and actively monitoring the process. So we do expect to see some activity there, which will hopefully bring a stronger focus to the operating performance of the asset.
Lastly, as it relates to the portfolio, the taxable REIT subsidiary, you did see in the quarter an impairment charge related to an impairment Goodwill associated with the Baton Rouge property. The Baton Rouge market obviously has suffered from underlying deterioration, which was really accelerated Last June 1st, when the smoking ban went into effect in East Baton Rouge Parish, and we thought it was appropriate after testing it from an accounting standpoint Take the impairment charge, which you see reflected in the press release. Finally, I want to touch A little bit on the balance sheet, all that information is included, but the highlights on the balance sheet are that 84% of our debt is fixed rate, Just under 16% of our debt is variable rate at an average interest expense of just over 5% With no debt maturities for calendar 2019, our next liquidity need is out in November of 2020. So we think we clearly have ample runway and great flexibility on the balance sheet to continue to manage our business proactively. Lastly, I'll touch on the guidance, which you see included at the back of the press release.
We are guiding for the Q1 To an 8% year over year increase in AFFO per share and for calendar 2019, we Provided a low and a high range of guidance, which is driven by the revenue assumptions, which you also see in the press release of on the low side, no escalator On the high side, all possible escalators in 2019 kicking in. And obviously, those are bound by a 7% increase in AFFO per share on the low side and an 8.5% increase on the high side. So we will, of course, be refining that as the year goes on And we hear from our tenants further as to the likelihood and the implementation of the escalators in those leases. I do want to turn it over. You saw our press release earlier, 2 weeks ago, excuse me.
We have expanded and broadened The senior management team here at the company and we're very excited to have Matt Demchak join us. Before turning it over to Matt just for some brief comments, I also do want to highlight for those on the call, you heard from our new Investor Relations firm JCIR And their representative, Joe Jaffoni, at the beginning of the call. And I also want to welcome Joe to the team and look forward to his contribution. So with that, I would like to ask Matt just to touch briefly on his background and give you folks an introduction to him. So go ahead, Matt.
Thank you, Steve. I'm very excited at the opportunity to work closely with Peter and Steve and the team of motivated people here that I so highly respect, And I'm appreciative of their welcoming stance towards having an additional differentiated perspective at the decision making table. My number one goal here is to utilize the viewpoints that I Developed over my investing career to help maximize the company's risk adjusted returns on capital and to ensure that we continue to deploy capital exclusively Into portfolio enhancing accretive transaction. Given the importance of our cost of equity to our business plan, I'm also going to be personally focused on Proactively engaging with investors to help ensure that they are well informed about the merits of our business and to serve as a friendly conduit for feedback. And I'm looking forward to seeing many of you and meeting those who I don't yet know over the coming months.
At the end of the day, our objective is to build the most durable cash flow stream in the triple net lease REIT sector. And with that, I'll turn the call back.
Thanks, Matt. With that, Brenda, if you wouldn't mind opening the line for questions.
Certainly, we will now be conducting a question and answer session. A confirmation call will indicate your line is in the question Our first question is from the line of Joe Greff with JPMorgan.
Hey, guys. This is actually Dan Palliser on for Joe Greff. Good morning. Thanks for taking my question. So just given the recent volatility in the financial markets, how would you characterize discussions with property sellers and their expectations here?
Would you say there's any real changes from say 6 or 9 months ago?
That's an interesting question. I don't think so. I mean, look, there's not a huge line of people looking to sell today. I mean, there's a lot of activity in and around the space, but I think things are pretty consistent with where they've been, Steve. No, Dan, to your question, obviously, year end, there was tremendous volatility Throughout calendar quarter 4 that I'm not sure sellers' expectations adjusted Based on that volatility, as we're starting here in calendar 2019, again, I don't know that Sellers' expectations have been reset based on the general economic environment.
It certainly feels to us Generally, that we are in the late innings of the economic cycle, time will tell. So, You will always see opportunistic owners looking for the chance to monetize Their interest in gaming assets or other real property assets, but right now, I would suggest that the Level of activity is certainly not what it was before Q4 of last year. Yes. Look, I think sellers' Interests are idiosyncratic. They really are.
I mean, people sell for all kinds of different reasons that people we're talking to now that are good prospects, but you got to want to do it. And so that's an ongoing debate, sometimes takes place over time. And occasionally, those situations where somebody wants to do something quickly and but all reasons are different. I don't think much changed on the pipe pricing side. I think Steve pretty well indicated.
Great. And then just one more quick one. Given your stock has rebounded pretty significantly from its lows and is actually at the highest level in nearly 18 months, How should we think about your willingness to use the ATM here?
Dan, it's unlikely. I mean, it's a tool that we have available to us. We've Guided folks to where we hope to take the leverage of the company and expect to take the leverage of the company during calendar 2019. We're certainly going to get back within the band of where we had guided the rating agencies from a leverage Perspective without any activity on the ATM. The way the Board thinks about it, right, is that at a current yield on the equity, It is still 4.50 basis points wide of the 10 year treasury.
We think there's still dislocation in the equity value of the company.
All right. Thanks so much. That's it for me.
Thank you.
Our next questions are from the line of Carlo Santarelli with Deutsche Bank.
Hey, everybody, and thanks. Peter, Steve, we've spoken in the past about The equity trading multiple relative to peers as well as relative to the broader triple net Spectrum, and I know you guys have talked a lot about 2019, making an effort to be in front of investors and whatnot And trying to close that gap. So my question is kind of twofold. As you think about 2019 and the multiple gap, given your advantage kind of cost of debt, Do you feel as though there is an opportunity to go out and be competitive in acquisitions with the multiple where it is? And secondly, do you feel as though there are others in the triple net industry who are looking at this space and recognizing their Equity trading multiple is at such a distinct premium that it might be worth spending more time looking at the space.
It's sort of a roundabout way, I guess, to get to a look, we're totally Self focused. I mean, we don't waste a lot of time thinking about what others are doing. We just came off a year Well, we've made some very done a couple of very accretive transactions to demonstrate that whatever one thinks about our grading multiple, It hasn't stopped us from doing business. So I take that as a given.
I kind of don't care.
I mean, look, do we want to do a better job for shareholders? Absolutely. But our focus primarily is building AFFO safely, rationally and carefully and moving our dividends ahead Year in, year out, I mean that as a large shareholder of this company, I am manically focused on. We don't build monuments, We're building income and that's frankly what drives us here. So I don't see any difference this year from next.
Look, we have competitors out there, God bless them. They'll do what they do. We'll do what we do, and I have absolute confidence in that. Yes. Carlo, let me just touch on both your questions.
Just from a competitive standpoint, we obviously do have a cost The capital disadvantage that we are going to work hard in 2019 to close that gap, but you should assume that Given the relationships that we've developed over the decades that we've been in the gaming business that we will continue to have opportunities that will be unique to us based on those relationships. So expect us to continue to work hard and work smart. As it relates to other triple nets and what they might see or what their view might be of the resiliency Of the cash flow that our portfolio generates from a regional gaming perspective or from those regional gaming markets, That's something obviously to stay tuned for. Peter laughs at me when I go into meetings and tell people our It is today and it will be 30 years from now. So as people do start to focus on The stability of our underlying tenants, the fact that in most cases, we've got guarantors on master That have equity market caps of $3,000,000,000 plus.
I think people will look at The valuation spread between us and other triple net single tenant net lease guys and that gap, If smart people are alerted to it, will over time close is my speculation for this morning's call. Yes. And look, in defense for this business, I like the revenue we generate here. I like our earnings profile. We pay the best dividend in the business, frankly.
It's the only gaming REIT that I would own as an individual, period. And we need to get more folks to understand that. And frankly, that's in part why Matt is here to beef up our team and work at that side of things.
Thank you very much,
guys. Thanks, Pavel.
And our next question is from the line of Barry Jonas with SunTrust.
Hi, guys. Just wanted to clarify on the guidance range, you're assuming I guess the variance is based on whether the rent escalator hits. That said Penn did guide that it will be hit and you just started your lease With Boyd and Eldorado. So is there a real risk potentially that you don't hit it or you are just being conservative?
Barry, we are being conservative. We've had some experiences over the last 5 or 6 years where we assumed some things were going to happen And did not. Only our operators have clear visibility into what the operating performance is of their portfolios. So as it relates to the variable rent associated with the Ohio casinos and as it relates to the escalators, We've taken an approach that some will call overly conservative. I think it's prudent to wait until they actually hit to start banking them.
Yes. Reminder, we get no non public information. So, we know in a sense what you know in a sense at the same time With what our tenants are doing. So we don't have an advantage there.
Got it. And then just, look, we've been asking you guys for years About going into non gaming purchasing non gaming assets. Just a question, do you think we're any closer Seeing a deal outside of gaming and what could that potentially look like?
Let me take a shot at that. Look, I think it is Probably inevitable that anybody who is now a gaming REIT will someday be something else or include something else, because I don't know whether that runway of opportunity is going to be 3 years, 5 years, but it's not forever in any large and material way. So that's quite possible. We continue to look at all kinds of adjacencies and verticals and I mean, but we haven't seen it yet. And In one perverse sense, we're in the business of buying revenue.
And if we can be persuaded that revenue in any particular sector is as rock solid as the revenue we have here in the gaming world, Sure. We take the leap and tell the story and hopefully it would be exactly correct. But despite the fact, I think we've looked from day 1 in our 5 plus years as a REIT, We have not seen anything that yet has risen to the top. So we'll continue to look and we'll see. But Again, it's all about I think Matt said it well in his summary, it's all about rational safe growth and not We're not in the business of building monuments.
I can't emphasize that enough. We don't feel any particular pressure to grow at a particular rate, do this or that. I just want to make sure as a shareholder that my dividend this year or next year is not $0.01 less than it is this year and hopefully somewhat more as we move forward. So that remains our total focus.
Great. Thank you so much.
Thanks, Barry.
Our next questions are from the line of Robin Farley with UBS.
Yes. Hey, this is Wes Maddox coming in Just wanted to talk about 2 new Hollywood properties and maybe if you
could comment on how you
think those would fit into GLPI's portfolio that are scheduled to open in 2020.
On the Penn, Morgantown and York, I assume you're talking about. I don't think we really know how that's going to shape up. And as part of an ongoing discussion, I guess, with Ben tied to our lease and so forth, I don't think they need us. If that's the implication, will that roll into our master lease? I think not.
They would prefer, since they have the cash and the financing available, to do it, but they will. So I'm not expecting, I think the bigger question is what impact might it have On our existing Penn National? Yes. Wes, let me try and address that. Obviously, one of the facilities that they're developing is a leasehold improvement in York.
So there'd be no opportunity for us there. Given the fact that there's no opportunity there, they seem to be, as Peter mentioned, inclined to develop The Morgantown facility themselves, you will see in our master lease with Penn National That we do have a non compete provision in that master lease. That non compete provision extends 60 miles From any GLPI owned facility that Penn leases pursuant to the master lease, Inside or if they do or when they do open a competing facility inside that non compete zone, The variable rent will no longer be reset downward. In other words, there will be a floor That will be put in place on the variable rent at that facility as a result of the competing facility, for all periods into the future. So that's the remedy that Penn is aware of and has acknowledged That exists for us in lieu of owning the competing facility.
Okay, great. Thanks.
Our next questions are from the line of David Katz of Jefferies.
Hi, good morning everyone. Good morning. I wanted to Just go back to your appetite for acquisitions and sort of pose a question that comes up frequently, which is While larger scale properties and say, just to use Las Vegas hypothetically, It may not generate the stability or the returns that regional properties do. Is there An inherent or perceived value that drives higher multiples for, let's say, a Las Vegas Strip property or some other market, That would translate into your valuation at the end of the day. And It's one of those real estate notions, again, that we discuss on a regular basis.
And so much of the discussion has been about is about your valuation and why it is where it is and what may make a change. I just wanted to pose the question and get your views.
Yes, that's an interesting observation. I mean, my quick answer is, it oughtn't to, And that's I don't mean to be flipped, but who cares where it is? Tell me how reliable the earnings are. Mean, it could be a shack on the beach, I jokingly say, at some of our meetings, and I'm actually serious. You could find me a shack on the New Jersey shore somewhere Parked in the middle of the beach and had a reliable cash flow and we knew it was rock solid.
Would I want that? Absolutely, absolutely. Do I care about a monument in Las Vegas that's producing Half the cash flow on a given investment? No. Now all that having been said, we're not unaware of the fact that there is a heme To Vegas Properties that commands a bigger premium, always has been, so forth.
I think in part so we would take that we're cognizant of that. But I think we've also done a better job on the road with rating agencies and with investors of trying to Get them to understand the stability of our regional properties and the fact that some of these places are really spectacular.
I don't think there is
a whole world of people out there that just don't recognize the scale of what is out in the world beyond Las Vegas. So we're conscious. Steve, you want to add to that? Yes. David, I would even go the other way, Quite frankly, I mean, if you look at the stability of these cash flows through up and down cycles in the regional market relative to 2,008, 2009 in Las Vegas, There's really no comparison.
If you look at the underlying beneficiaries, the states are the partners with the operators in these regional businesses. They can't nor will they in those limited license markets, which most of them are, allow these businesses not to be successful. And then finally, when you look at the free cash flow generation of the operators in the regional markets Compared to the Las Vegas operators, where the maintenance capital expenditures, the CapEx expenditures that folks make In their buildings is really over the top, really limiting the free cash flow generation of Las Vegas assets. We really like where we are positioned as a company and we like the portfolio of operators that we have on our So, we're not going to chase a Las Vegas strip asset with the expectation that our that our multiple will be rerated because we just don't believe that the market fully understands and appreciates What we have here at GLPI.
Got it. I hope you appreciate the question. I definitely Appreciate the answers and hi, Matt and good luck.
Thank you. Thanks. Thanks, David.
Our next question is from the line of Daniel Adam with Nomura.
Hi, good morning everyone.
Good morning.
I have two questions related to the goodwill impairment charge you took in the Q4. First, I'm wondering if your assessment there was entirely related to the smoking ban impact at Baton Rouge or were there other factors at play like Increased competitive pressures, for example. All right. The second one is Given that I think you guys test for asset impairments annually on October 1, I am just wondering why the charge wasn't called out when you reported 3rd quarter results in November. Thanks.
No, Daniel, it's a fair question. Let me go into the facts first. I mean, the Baton Rouge market Had a wonderful year in 2016 early 2017. Unfortunately, as a result of FEMA activity from flooding that occurred in the Baton Rouge market that dislocated many families, but Brought in a lot of economic development and economic activity. So from 2016 Through early 2017, we saw a really robust activity in that marketplace.
Starting at the beginning of calendar 2018, we started to see a burn off or runoff, if you will, of that activity, A real decline in economic activity in Baton Rouge that was accelerated as it related to gaming when that June 1st Smoking ban went into effect Parish wide. In terms of testing any earlier for the impairment, We really did want to wait and see if the underlying economics ever recovered. And once we got to year end, it was Clear to us that with the combination of the underlying fundamentals and the smoking ban, There was really not an opportunity for that market to return to where it had been in 2016 2017. So that's really what's going on down there and the timing associated with the evaluation. No, that's a perfect answer.
Let me add, Steve, to that. I mean, Baton Rouge is one of the best investments that we on the Penn side ever made. It's a terrific little property. It has my recollection is we bought about $23,000,000 in cash flow there. And over the years, Boy, it has been an interesting sleigh ride, never bad, but at Katrina, for example, we were up over $60,000,000 in cash flow out, which is stunning.
So if you look at the history of Baton Rouge, it's been up and down and up and down. And as Steve points out, much of it unfortunately weather related and bad event related. So as the last flooding kind of started to hit Unwind and market return to normal. You saw an impact, of course. But the smoking ban, to be sure, look, we warned them down there, absolutely warned them that it was going to be a disaster.
And these some of these states and the zealots who are anti smoking, I get it. I'm not a smoker, but don't kind of get that it has a dramatic impact. And this is probably one of the biggest impacts. It's not just The property we own, it's those other properties as well in the market. It's been a devastation for them.
Maybe they'll wise up, maybe they won't. But I think looking at the accounting people across the table for me, after enough time to look at it, evaluate it, made the decision, let's just Take that. The good news is we'll do better later. So, yes, Daniel, the only other thing I would add is the goodwill came over at Back in 2013, so this is something as you point out in our K we disclosed, we test every year And we tested it this year in light of the performance and it just felt like it was time to take this non cash charge.
Great. Thanks a lot guys.
Thank you.
Thank Our next questions are from the line of John Massocca with Ladenburg Thalmann.
Good morning. Good morning. Hey, John. How are you doing?
Yes. So as you kind of look at potential investment opportunities, do you think there's an opportunity to, initially speaking more with regards to things that may happen in the future rather than anything recent, but to buy improvements your tenants may put in place at your existing properties Or does that put too much pressure on coverages for you guys and just make your contingent rent hurdles too unreliable,
if you will? No, John. In fact, they have an obligation to come to us or to ask us if we are interested in providing financing whenever they are doing any significant Leasehold improvements and we've heard from our legacy tenants. It's a little early for the new guys that came in as tenants in Q4, But those are things that we do evaluate. There's not been anything that's actionable.
What we have done is work with our tenants to monetize for our benefit and for our tenants' benefit In certain cases, unutilized or underutilized land, and this has been disclosed publicly in St. Louis. We've sold off What is now just north of a 25 acre parcel that's being developed into an entertainment and an ice skating center that will be the Practice facility for the St. Louis Blues and have about a 3000 or 4000 seat venue for live events that will be programmed by Live Aid. So that's really more of an opportunity for us than adding incremental capital to any of our existing Although we do look at it all the time with them.
Yes, there are some projects we're examining even now.
And how big is the opportunity? I mean, it seems like it's kind of in terms of excess land parcels, just maybe something that could be delevering at the margins, maybe improve As something with like the ice skating rink, like bring in extra traffic to the casino, but it's not really a game changer if you will, is that a fair assessment?
No, it's not by any stretch of the imagination do not think of it as a game changer, but think of it at the margins as Things that we can continue to do to drive greater efficiency in the overall portfolio. Yes. Look, given the scale of our business today, the good news and bad news, we've done a terrific job of building this company. That's the good news. The bad news is moving the battleship forward It's a lot more challenging to find things that make but look, we're always willing to hit singles.
I've come around recently to say we're going to do some bunts. As long as it's moving the ball down the field and adding pennies even to our AFFO and our dividend each and every year, That's enough to make me happy. And look, are we always looking for the home run? Absolutely, we'll swing away, but you got to see it clearly. And But we're perfectly content to do modest transactions as well.
Understood. And thinking of somewhat modest transactions, I mean, What kind of consent would Casino Queen need to get from you guys in order to facilitate some kind of strategic activity? I know it's a little broad in general at this But is there any potential there that if someone came in and was interested in operating these properties that you may
be able
to Leverage more transactions out of that kind of a situation?
That's highly possible. I mean, as the landlord in At building in East St. Louis, any substitute tenant does need our approval.
Understood. That's it for me. Thank you very much.
Thank you. Thank you, John.
Our next question comes from the line of Cameron Knight with Credit Suisse.
Hi, good morning. Thanks very much.
Good morning.
Question for Steve. You've got about a 1,000,000,000 of notes that were issued in mid-fourteen that are coming due later on next year. Given that you're now investment grade, what's your best guess in terms of where you could refinance that paper?
On 10 year, probably plus 2.60 cam to 250, 260, so a low 5 handle.
Got it. Thanks very much. And then a slightly broader question. In terms of the broader portfolio now, Any assets in particular that are flashing amber or red in terms of potential supply growth?
The areas that Ken addressed on their call last week, Blackhawk is the one place, Because the Monarch guys are investing a lot of capital in that market. None of the newer the Boston facility, when it opens, if there's Southeastern Mass facility that ever opens, we set Plain Ridge when we bought it as a $25,000,000 annual occupancy cost with no upside Or downside. So there's no reason to be cautious or concerned there. So those are really the only areas. I'm looking around the table.
That's my memory, but those are the only areas right now that have us at least monitoring any
Okay. That's perfect. Thanks very much.
Thank you, Cam.
Thank you. It seems we have no further questions at this time. I'd like to turn the floor back over to management for closing comments.
Well, thanks, operator. I thank you all for dialing in today. We're happy to close this Quarter out pretty happily and see you next quarter. Thank you.
This concludes today's teleconference. You may disconnect your lines at this time. And thank you for your participation.