Ladies and gentlemen, good afternoon. Welcome everyone to BlackRock TCP Capital Corp's Q4 2022 earnings conference call. Today's conference call is being recorded for replay purposes. During the presentation, all participants will be in a listen-only mode. A question and answer session will follow the company's formal remarks. To ask a question, please press the star key followed by the digit one. I will repeat these instructions before we begin the Q.A. session. Now, I would like to turn the call over to Katie McGlynn, Director of BlackRock TCP Capital Corp Investor Relations team. Katie, please proceed.
Thank you, Tia. Before we begin, I'll note that this conference call may contain forward-looking statements based on the estimates and assumptions of management at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties, actual results could differ materially from those projected. Any forward-looking statements made on this call are made as of today and are subject to change without notice. Additionally, certain information discussed and presented may have been derived from third-party sources and has not been independently verified. Accordingly, we make no representation or warranty with respect to such information. Earlier today, we issued our earnings release for the Q4 and full year ended December 31, 2022. We also posted a supplemental earnings presentation to our website at www.tcpcapital.com.
To view the slide presentation, which we will refer to on today's call, please click on the Investor Relations link and select Events and Presentations. These documents should be reviewed in conjunction with the company's Form 10-K, which was filed with the SEC earlier today. I will now turn the call over to our Chairman and CEO, Raj Vig.
Thanks, Katie. Thank you all for joining us for TCPC's Q4 and year-end 2022 earnings call. I will begin today's call with a few comments on the market environment and provide an overview of our Q4 and full year results. I will then turn the call over to our President and Chief Operating Officer, Phil Tseng, who will provide an update on our portfolio and investment activity. Our CFO, Erik Cuellar, will review our financial results, as well as our capital and liquidity positioning in greater detail. I will then conclude with a few closing remarks before we take your questions. 2022 was a year in which the equity and fixed income markets experienced significant volatility, particularly in the latter 1/2 of the year.
This was driven by a combination of geopolitical uncertainty and the Federal Reserve's ongoing actions to aggressively raise interest rates in order to curb inflation, an effort that appears will continue for the foreseeable future. This volatility persisted in the Q4 and adversely impacted spreads across fixed income markets, including middle market loan spreads. No sector or asset class was immune to the market volatility, and in the Q4, we experienced a decline in NAV due in part to the market volatility, but mostly due to lower valuations on three specific portfolio companies and company-specific items. I will touch on these in more detail later. Excluding the impact of these three names, our NAV decline would be closer to 3%.
In this environment, our team's more than two decades of experience lending through multiple market cycles and our ability to work with our portfolio companies to manage through challenging operating environments is particularly valuable. We are also reminded of the benefits of direct lending that historically delivered premium yields to the liquid markets, and importantly, better downside protection in periods of market turbulence. One aspect of our investment strategy that has led to strong downside protection and very low loss rates throughout our history has been our strong portfolio management and monitoring procedures. In addition to the ongoing monitoring our deal teams perform over investments in their individual portfolios, on a quarterly basis, TCPC's investment committee also performs a thorough review of every company in the portfolio.
As part of this process, the same deal team members that originated and underwrote these investments review the company's most recent financial performance and engage in dialogue with the business owners and operators to assess both current and projected performance relative to our original underwriting assumptions. All of this is conducted within the context of our deep industry expertise. We evaluate each borrower's ability to manage in times of stress using both a forward-looking and historical lens. Additionally, our industry expertise has always enabled us to underwrite loans with strong lender protections in the form of covenants specifically tailored to contemplate both company and industry-specific dynamics. As you can imagine, these existing protections are more important today given the market environment as they allow us to take any actions required to protect our capital.
Before providing highlights from our Q4 and full year financial results, I'd like to provide some more context to the sequential decrease in our NAV. In addition to the more normative valuation adjustments across the portfolio due to wider market spreads in the quarter, 2/3 of the total unrealized losses recorded in the Q4 was attributable to three portfolio companies: Edmentum, Razor, and AutoAlert. Each of these write-downs was driven by a unique set of circumstances impacting the company and/or the industry in which they operate. It is important to emphasize that the issues driving these valuation impacts are isolated, and in the case of Edmentum and Razor, driven by exposure to well-performing equity investments, which tend to have more mark-to-market volatility. Importantly, the credit quality of our portfolio remains in excellent shape.
In the case of Edmentum, as many are aware, the company has delivered very strong performance over the last several years. Driven in part by the ongoing shift to online learning, which led to significant write-ups and significant realized gains on our investment. While Edmentum's performance continues to be strong, the pace of growth and demand for online learning tools coming out of COVID has slowed but continues. Given the normalization of growth in the sector, combined with a more moderate outlook and general public market valuation declines, the value of our investment was marked down in the Q4. The overall performance of our investment has been very positive, and we remain confident in the long-term performance of Edmentum. Razor Group is a consolidator of small to medium-sized brands that sell through Amazon's third-party platform.
While we continue to view our loan to Razor as well-covered, the company's enterprise value has been pressured by the challenges facing the broader Amazon ecosystem, which resulted in a reduction of the value of our warrants, as well as a modest decline on the value of our first, like, first lien loan. AutoAlert is a company that provides marketing software to auto dealerships. AutoAlert was severely impacted at the start of the pandemic when auto dealerships were closed, and it has subsequently been impacted by the supply chain issues that have resulted in limited new car inventory. We are working with management and the sponsor on next steps. We are encouraged by the fact that some of the macro issues seem to be abating, and recent results reflect improving performance. Turning to our Q4 and full year 2022 highlights.
We delivered strong net investment income of $0.40 per share in the Q4 and $1.53 for the full year. Given the floating rate nature of our portfolio, our net investment income benefited from the increase in base rates in 2022, as well as wider spreads on new investments made throughout the year. As an acknowledgement of the higher ongoing earnings power of our portfolio, primarily driven by higher base rates, we announced a $0.02 per share increase in our dividend, beginning with the Q4 dividend that was paid on December 31. Our board of directors today announced a $0.32 per share dividend distribution for the Q1, payable on March 31 to shareholders of record on March 16.
This is in addition to the $0.05 per share special dividend that was announced in December and paid last month to shareholders of record as of December 31. As a reminder, we have always emphasized the stability of the dividend and the coverage through our recurring net investment income. Throughout TCPC's history, we have consistently covered our dividends with recurring net investment income, a commitment that remains important to us even with the recent dividend increase. Phil will discuss our Q4 and full year investment activity in more detail. In summary, we are being disciplined in deploying new capital in this uncertain environment while also taking advantage of the more lender-friendly investment environment. We reviewed a substantial number of transactions during the year and selectively deployed capital in a small percentage of those opportunities.
Looking back at our historical performance as a public company, since 2012, we have generated a 10.3% annualized return on invested assets and a total annualized cash return of 9.3%. We believe our performance remains at the high end of our peer group, demonstrating our ability to consistently identify attractive opportunities at premium yields and deliver exceptional returns to our shareholders across market cycles. I will turn it over to Phil to discuss our investment activity and portfolio position.
Thanks, Raj. The public market volatility and uncertainty in the capital markets generally drove a slowdown in activity in 2022 versus the record levels in 2021. Positively, though, we saw a meaningful shift toward a more lender-friendly investment environment marked by wider spreads and less pushback on deal terms. Against this backdrop, we continued to identify and review a significant number of potential investment opportunities as we capitalize on the scale of the broader BlackRock US private capital platform and the breadth of our team's experience. At year-end, our portfolio had a fair market value of approximately $1.6 billion. 88% of our investments were senior secured debt spread across a wide range of industries, providing portfolio diversity and minimizing concentration risk.
We also believe our portfolio is well-positioned to perform amidst market uncertainty, given our emphasis on companies with established business models in less cyclical industries. The portfolio at quarter end consisted of investments in 136 companies, an all-time high. As the chart on slide six of the presentation illustrates, our recurring income is distributed broadly across our portfolio and is not reliant on income from any one company. In fact, more than 90% of our portfolio companies each contribute less than 2% to our recurring income. 85% of our debt investments are first lien, providing substantial downside protection. 94% of our debt investments are floating rate, proving an important benefit in this rising rate environment. Moving on to our investment activity.
We believe our deal source channel agnostic approach and our industry specialization provide an advantage, particularly at a time when we're seeing a slowdown in traditional sponsor-backed activity. Our industry-focused deal teams continue to identify unique investment opportunities from a wide range of sources, including directly through our industry contacts and management teams, in addition to our traditional sponsor relationships. In reviewing these opportunities, we emphasize transactions where we act as a lender of influence, which enables us to negotiate deal terms and conditions that we believe provide meaningful downside protections. These include substantial collateral and tailored covenant packages that are particularly important in periods of economic volatility like we are in today. In addition, our industry specialization, which our borrowers value, bolsters our ability to assess and effectively mitigate risk in our underwriting and when we negotiate terms in the credit documentation.
Despite the slowdown in activity in 2022, TCPC invested $338 million, including $75 million in the Q4. The deployment in the Q4 included loans to seven new and six existing portfolio companies. Follow-on investments in existing holdings continue to be an important source of opportunity for us. In terms of dollars invested, 50% of total investments in the Q4 and 44% in the full year of 2022 were in existing portfolio companies. We believe this incumbency is an important advantage when we source investments, given these are companies we already know and understand well, we've seen them execute on their investment thesis, and have a healthy existing dialogue with the management teams.
TCPC's largest investment during the Q4 was a senior secured first lien loan to Madison Logic, a provider of account-based and a content marketing services to B2B marketers. We viewed this as an opportunity to invest in an industry leader that's benefiting from tailwinds in the account-based marketing sector. We also believe that the high ROI on account-based marketing versus other marketing services will be more resilient in periods of economic stress. BlackRock's prior experience and expertise in the complex account-based marketing sector allowed us to understand the real merits of the credit and obtain a conservative deal structure at an attractive risk-adjusted return. Our second-largest investment in the quarter was a senior secured first lien term loan to Integrity Marketing, the leading independent distributor of life and health insurance products in the U.S.
During the Q4, given our familiarity with the business model, the industry, and our relationship with the sponsor, we led an incremental first lien term loan to the company to support ongoing M&A. Integrity operates in a stable and growing segment of the insurance market that has demonstrated a track record of strong organic and inorganic growth. New investments in the Q4 were offset by total dispositions of $75 million. The overall effective yield on our debt portfolio increased from 9.2% at the end of 2021 to 12.7% at the end of 2022, reflecting the benefit of higher base rates as well as higher spreads. Investments in new portfolio companies during the quarter had a weighted average effective yield of 12.2%, exceeding the 9.9% weighted average effective yield on exited positions.
As I noted earlier, we are seeing a shift toward a more lender-friendly environment, with improvements in both pricing and terms relative to 12 months and even six months ago. Year to date, we have seen a modest pickup in activity and have been investing selectively, maintaining our underwriting discipline and being mindful of the inflationary environment. We emphasize companies that have significant pricing power to pass on higher input costs, including increases in their cost of capital. It's also important to note that we do not underwrite to perfection, but we do build in sufficient buffers to ensure companies can withstand higher costs and changes in the market environment without impairing their ability to service our loan. Our pipeline continues to remain healthy, and the yields on investments in our pipeline are generally in line with our current portfolio.
To date, we have had limited prepayment income in the Q1. Let me now turn it over to Erik to walk through our financial results as well as our capital and liquidity positioning.
Thank you, Phil. As Raj noted, our net investment income in the Q4 benefited from the increases in base rates in 2022. Net investment income of $0.40 was up nearly 30% versus the Q4 of 2021. It exceeded the Q4 dividend of $0.32 per share. On an annual basis, net investment income was $1.53, an increase of approximately 22% over 2021. Today, as Raj noted, we declared a Q1 dividend of $0.32 per share. We remain committed to paying a sustainable dividend that is fully covered by net investment income, as we have done consistently over the last 10+ years. Investment income in the Q4 was $0.81 per share.
This included recurring cash interest of $0.68, recurring discount and fee amortization of $0.02, and PIK income of $0.05. Investment income also included $0.02 of dividend income, $0.01 of other income, and $0.03 from accelerated OID and exit fees. As a reminder, we amortize upfront economics over the life of an investment rather than recognizing all of it at the time the investment is made. Operating expenses for the Q4 were $0.33 per share and included interest and other debt expenses of $0.18 per share. Incentive fees in the quarter totaled $4.9 million or $0.08 per share. Net unrealized losses in the Q4 totaled $71 million or $1.22 per share. As Raj discussed earlier, unrealized losses were primarily driven by three items.
A $21.5 million unrealized loss on our loan to AutoAlert, and unrealized losses on our investments in Edmentum and Razor Group of $18.6 million and $6.3 million respectively, as well as unrealized losses across the portfolio from wider market spreads. Net realized losses for the quarter were only $46,000. The net increase in net assets for the quarter was $47.8 million or $0.83 per share. We have a robust valuation process, and substantially all of our investments are valued every quarter using prices provided by independent third-party sources. These include quotation services and independent valuation services. This process is also subject to rigorous oversight, including back testing of every disposition against our valuations. The credit quality of our overall portfolio remains strong.
We placed our loans to AutoAlert on non-accrual during the Q4. A total of three portfolio companies are now on non-accrual, representing only 2.0% of the portfolio at fair value and 4.2% at cost. Turning now to our liquidity. Our balance sheet positioning remains strong, and we ended the quarter with total equity of $367 million relative to our total investment of $1.6 billion. This included available leverage of $286 million and cash of $82 million. Unfunded loan commitments to portfolio companies at quarter end equaled 8% of total investments or approximately $127 million, of which only $28 million were revolver commitments. Our diverse and flexible leverage program includes two low-cost credit facilities, two unsecured note issuances, and an SBA program.
Notably, our unsecured debt continues to be investment-grade rated by both Moody's and Fitch. Given the moderate size of each of our debt issuances, we are not overly reliant on any single source of financing, and our maturities remain well laddered. Additionally, we are comfortable with our current mix of secured and unsecured financing and do not have any immediate financing needs. Combined, the weighted average interest rate on our outstanding borrowings increased modestly to 3.9% from 3.26% at the end of 2021. That is an increase of only 64 basis points while base rate increased approximately 4.25%. This is the result of currently having over 75% of our borrowing from fixed-rate sources. Now I'll turn the call back over to Raj.
Thanks, Erik. While the economic outlook may be uncertain, our team is focused on delivering the results our shareholders have come to expect from TCPC. We remain highly disciplined in our underwriting. We make investment decisions based on a comprehensive analysis of each company, its management team and strategy, and relevant industry dynamics. Our investment committee evaluates each investment and regularly monitors the financial performance of each of our holdings. From our perspective, where we are in the credit cycle matters less than our ability to selectively capture opportunities throughout the cycle. To that end, we draw upon our team's two decades of experience and BlackRock's extensive resources to prudently identify opportunities that align with our selective investment approach while providing our borrowers with financing solutions to help grow their businesses.
We continue to source strong senior secured credit opportunities, which have historically outperformed equities, bonds, and other unsecured debt through economic downturns. While underweight highly cyclical industries, we will also continue to maintain a broadly diversified portfolio. In closing, while 2022 presented challenges, we successfully navigated the evolving environment and are cautiously optimistic about the year ahead. We remain focused on generating strong risk-adjusted returns for our shareholders. With that, operator, please open the call for questions.
We will now begin the QA session. If you would like to ask a question, please press star followed by one on your touch-tone keypad. If for any reason you would like to remove that question, please press star followed by two. To ask a question, please press star one. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly to allow questions to generate in queue. The first question comes from the line of Robert Dodd with Raymond James. Please proceed.
Hi, guys. Obviously questions, a couple of questions about the NAV hit. On AutoAlert first, and then the equity pieces in a second. I mean, to your point, it was impacted at the beginning of the pandemic and then supply chain and getting new vehicles, et cetera. I mean, none of those trends seem to be particularly new, yet the markdown on this quarter was obviously pretty significant. I mean, $21.5 million. Can you give us any more? Was it the fact that, you know, it was originally meant to mature in January? Obviously it hasn't.
Yeah, can you give what was the driver of that being so large, the markdown being so relatively large when the trends you described don't seem to be particularly new or new in the Q4 of 2022?
Hey, Robert, it's Raj. Thank you. I'll try to answer that in the way I can, and there's probably some elements that I can't address directly. I would say that the trends aren't new. I would agree with that. The compound effect... I mean, the trends are neither a one-quarter trend. You have sort of a accumulating and compounding effect of things coming out of the pandemic that are top-line oriented, either, you know, dealerships shutting down. As they are opening up, you have an inability to actually get the inventory 'cause of supply chain issues, you know, that sort of hinder the value proposition of the business, you know, the applicability of it.
I think you had a series of things that compound that led to, you know, finally a non-accrual and a, I guess an acquiescence, if you will, on, you know, in terms of where the company is and where they need to go. Ironically, you know, coming out of Q4, a couple of the things have actually abated. You know, the supply chain issues are loosening up. You know, we are seeing some early signs of recovery. I think to answer your question, you're sort of catching the whipsaw effect of things that are kind of creeping through the prior couple of years, accumulating in a way in this quarter, on a company basis.
There are some, you know, external data points that we just have to take into account, that I think really, you know, brought the valuation into something, in the range that we're talking about here. I think there'll be more detail that we can provide, in subsequent quarters, but I would leave the answer at that. Yeah, hopefully addresses your question.
It does answer that part of the question. I mean, obviously the maturity on the loan was February fifteenth, which has already passed. I think if it had repaid since quarter end, you would have probably said so. I'm gonna presume that it hasn't. Was all of that taken into account, whatever the situation actually is today, at the time the fair value was determined at December 31? Have we got, is Q1 gonna be another reevaluation, given it probably, I'm guessing, missed the maturity date?
Yeah, Robert, this is Phil. Thanks for that follow-up. You're right, the maturity is imminent, and that has precipitated deeper discussions with the management team and the private equity sponsor on next steps. We can't provide too many details at this point, but we're eager to, you know, perhaps next quarter. I think it's important to note that what Raj had mentioned, which is the signs of improving performance on the business. Perhaps it's worthwhile giving a quick reminder. You know, AutoAlert's a software and data analytics business used by auto dealerships to drive sales growth.
In the past several years, with inventory levels being so low due to supply chain, as we've discussed, and consumer demand being so robust kind of post-pandemic, the dealerships just couldn't keep cars on the lots. The need for sales optimization software was less of a priority. Obviously, we're seeing reversal of those dynamics. Higher rates are clearly impacting demand for cars, which requires a need for more sales and analytics tools. Inventory on the dealers' lots are returning to more normalized levels. Keep in mind, the mark is a reflection of financial performance through 2022. It does not reflect what we've been witnessing in the last two months or year to date. Do I think next quarter is gonna be the same in terms of a decline?
We're not seeing signs of that.
Yeah. Robert, just to, just to wrap it up, on your question about if the maturity is taken into account and anything regarding the contractual elements that are known at the time of the valuation are certainly taken into account by the valuation provider. That would include maturity, performance, you know, through that period, and so forth. It would've been taken into account. I think there's a host of more things that are gonna, you know, come to play here. As Phil mentioned, we hope to talk about that in the future quarters. The good news is in a sense that we're in a, ironically, a better environment for this business, even though it's a, you know, an ongoing challenging economic environment.
Got it. Got it. I appreciate all that color. If I can, on the other two, Edmentum and Razor, successful equity investments, so it's not a. It's a completely different angle from AutoAlert. Edmentum.
Yeah
... obviously is, kind of three-quarters of the combined, for that, which is, you know, has been a successful asset for you. Can you give us on the markdown stat? I mean, you talked about Edmentum, you know, the outlook for the market, et cetera. Maybe could you segment how much of the markdown was, market comps or volatility inputs for volume, valuing warrants or anything like that versus, actual outlook adjustment?
I don't know if I can give a quantitative breakdown. I would say both apply. Certainly, if you think about both Edmentum and Razor, you know, if you had to categorize these businesses, you know, they'd be considered growth equity or growthier equity, you know, higher multiple businesses that are still high multiple, it just happens to be a reset in the public markets. In the case of Edmentum, you know, in both, aside from the market multiples, there is just a tempered growth. In the case of Edmentum, there's a bit of digestion, if you will, from the massive spend coming out of, coming through COVID on the online schools. I think it's still a growing outlook.
It's probably a more, you know, inflection of a bump and then a continued, you know, long-term secular positive that has a, that has an impact today. You know, I think that will. I don't think that's gonna continue necessarily because the outlook is still positive. Where the markets go, the public markets go, you know, anyone knows. I don't wanna quantify it 'cause I don't think I have that breakdown, but both are applicable. In the case of Razor, you know, just the broader Amazon ecosystem, as we mentioned, is, you know, dealing with supply chain issues. Those similar to the AutoAlert situation are abating.
People have a lot of money to spend on things, and a lot of the products these, you know, these resellers sell are things that are essential, you know, and people are continuing to buy so long as they can get a hold of them to ship out. I would like to give you a better breakout on company versus market multiples. It's a little blended. Just to reiterate, both apply here. In each case, you know, we're pretty positive on the positioning and the outlook for the two businesses. It just happens to be, you know, a reset of valuations that we're not immune to.
Got it. Thank you. Thank you for the additional color on all of those items. That's it from me. Thanks a lot.
Thanks, Robert.
Thank you. The next question comes from the line of Kevin Fultz with JMP Securities. Please proceed.
Hi, good morning, and thank you for taking my questions. You know, looking at trends within the portfolio, can you provide an update on where weighted average EBITDA portfolio company leverage and interest coverage stand at quarter end and how they have trended over the past few quarters?
Yeah, Kevin. Thanks for the question. We haven't seen a noticeable change, or a trend per se. Certainly, we realize that there's a little bit of a lag in some of that reporting and that might change over time. We'll say we haven't seen really a meaningful change over the last couple of quarters.
Let me, let me add to that, Kevin. I would say keep in mind our portfolio is not sort of an index approach to the economy. We're very deliberate about where we're focusing by industry and by company. A fair bit of our portfolio is growing. If I had to guess, I don't have the exact data in front of me, I wouldn't expect there to be a significant change in average EBITDA, LTVs or leverage. I would say that the majority of the Just to be clear, the majority of our portfolio, given we're in industries, you know, software services, healthcare, financial services that are growing, the majority of our portfolio is growing on a revenue as well as an EBITDA basis. I think trend-wise, you should, you should consider it a healthy portfolio.
You know, one that we've been very deliberate about where we are positioning it based on secular views at an industry level. Those industries are healthy and growing, and we're tending to work with, you know, well-positioned companies within those industries. In turn, you know, the average levels of EBITDA, and, you know, attachment points on the leverage, I would think are stable, if not improving. I don't wanna make that comment without the data in front of me.
Okay. That's good to hear. You know, I appreciate your comments on specific investments that were written down during the quarter. I guess on the amendment side, have you seen any increase in amendment requests from borrowers? Can you discuss your expectations for that to potentially pick up over the next few quarters?
Yeah. Thanks for that question. Amendment requests have increased, and I think that's a clear reflection of the impact that the higher rate environment is having on not just the middle market economy, but broadly as well we've seen even within the large cap space. We think we are seeing amendment activity pick up.
We attribute that to both, our ability when we do negotiate these deals upfront, putting in tight covenants and, most of the times multiple covenants, that really gives us a seat at the table, early on when there is either slower growth or maybe there's not as much liquidity as we're baking in upfront. In most of those cases, I think what's really important are the decisions that we make around the table on investment committee on how we wanna de-risk those positions to ensure, you know, full recoveries on those loans. In fact, a number of our refinancings in recent quarters have been driven by amendment, or near amendment, cases where the companies are breaching covenants, or they perhaps need more liquidity.
Our tight structures have put us to the table requiring them to refinance us out if we're not comfortable in the position we're in.
Okay. Appreciate the comments, Phil, and, I'll leave it there.
Thanks.
Thank you. The next question comes from the line of Christopher Nolan with Ladenburg Thalmann. You may proceed.
Hey. Erik, was the decline in interest income quarter-over-quarter due to AutoAlert going non-accrual?
It was primarily, yeah. We didn't recognize any income on AutoAlert...
Okay
... for the quarter.
Okay. for all-.
Lower prepayment income as well.
Yep. Okay. Then, for AutoAlert, is there a bank facility ahead of your position?
No, there's not. We're in first position on that loan.
All right. Is there any discussions regarding a restructuring or bankruptcy related to AutoAlert?
We're not, at a point where we can discuss the details, though, although I do appreciate the question. We are in deep discussions with both the management team and the sponsor on go-forward plans. We hope to have more to report in subsequent quarters.
Okay. Final question. How much was spillover income in the quarter?
For the quarter itself or sort of cumulative?
Cumulative, please.
Yeah. cumulative is about, $1.20 per share.
Great. Thank you.
Mm-hmm. Thank you.
Thank you. Again, to ask a question, please press star one. There are no additional questions at this time. I will hand it back to the management team for closing remarks.
We appreciate your participation on today's call. I would like to thank our team for all of the continued hard work and the dedication. I would also like to thank our shareholders and capital partners for your confidence and your continued support. Thanks for joining us. This concludes today's call.