Greetings and welcome to the AMC Entertainment Holdings Inc. Second Quarter 2024 Earnings Webcast. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, John Merriwether, Vice President, Capital Markets and IR. Thank you, John. You may begin.

Thank you, Alecia. Good afternoon. I'd like to welcome everyone to AMC's second quarter 2024 earnings webcast. With me this afternoon is Adam Aron, our Chairman and CEO; and Sean Goodman, our Chief Financial Officer. Before I turn the webcast over to Adam, let me remind everyone that some of the comments made by management during this webcast may contain forward-looking statements that are based on management's current expectations. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those that might be expressed today. Many of these risks and uncertainties are discussed in our most recent public filings, including our most recently filed 10-Q and 10-K. Several of the factors that will determine the company's future results are beyond the ability of the company to control or predict. In light of the uncertainties inherent in any forward-looking statements, listeners are cautioned against relying on these statements. The company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information or future events. On this webcast, we may reference non-GAAP financial measures such as adjusted EBITDA, constant currency, and non-GAAP cash flow among others. For a full reconciliation of our non-GAAP measures to GAAP results, please see our earnings release posted in the Investor Relations section of our website earlier this today. After our prepared remarks, there will be a question-and-answer session. This afternoon's webcast is being recorded and a replay will be available in the Investor Relations section of our website at amctheaters.com later today. With that, I'll turn the call over to Adam.

Thank you, John. Good afternoon everybody, and thank you for joining us today. You might think that, someone reporting an 84% drop in adjusted EBITDA this quarter compared to the same quarter last year might be in a foul mood. But to the contrary, as I sit here today and look at what has transpired so far this year and especially over the past seven weeks, I am ecstatic. Pick any attitude you want. Ecstatic, euphoric, all those giddy and AMC's prospects for near term and medium term improvement and recovery. In fact, I'm now more confident that I've been in more than four years about how well AMC will perform over the next 6 to 30 months. That would seem to be inconsistent with the earnings release that we just put out for the second quarter. But here are the four key reasons for my optimism. First, including monies raised during the second quarter, AMC ended the second quarter with $770 million of cash. I've said it repeatedly over the past few times in the years, cash is king and having ample cash reserves is the single best strategy for survival. Sometimes a few of our retail shareholders want to hang me by my toenails that on my watch we have brought so much cash in AMC's coffers, but I cannot say it enough times. It is so important the single smartest thing that AMC has done since 2020 was to make sure that our bank account balances were always plentiful and abundant. Despite all the rocky roads in the past several years, AMC has stayed strong. We've defied the conventional wisdom. We've continued to innovate and we've maintained our leading industry position and we did that at the exact same time that many of our competitors large and…

Thank you, Adam. Thanks to everyone for joining us this afternoon. As expected and as we've previously discussed, the North American box office was indeed challenging during the first half of this year. The first half box office was some 19% below the same period in 2023 and 36% below the same period in 2019. And while the second quarter box office grew around 19% from the first quarter of this year, the box office nonetheless fell way short of the prior year by approximately 27% in the second quarter. The second quarter of 2023 as a reminder was the highest quarter of that year. With this order's background, simple year-over-year comparisons may not necessarily be helpful in understanding our true financial position and potential future financial performance as the industry grows as we expect it will. I therefore want to focus my comments on some of the key metrics that we look at when we're assessing our performance and forecasting our future financial performance. First, let's take a look at market share. Our North American market share continued to increase in the second quarter of 2024 with approximately 50 basis points of growth compared to last year. This is despite the fact that we reduced our North American third account by approximately 15 locations during this period. In a quarter where the North American box office declined by 27.2% compared to last year, our domestic admissions revenue declined by only 25.6%, outpacing the industry box office by approximately 160 basis points. Second, looking at our per patron revenue and profitability. We have successfully been able to grow and then sustain revenue and profit per patron at levels that are meaningfully higher than pre-pandemic 2019. For Q2, consolidated revenue per patron was $20.61, this is some 33% higher than 2019…

Thank you, Sean. As I said at the start and as Sean just reiterated, we really do believe that, the good times are about to roll and that AMC is very well-positioned for an industry and company recovery in 2025 and 2026. There's been a lot of work to get the company to this position, but we can feel it in our bones now, based on what we've seen starting with Inside Out 2 and what's happened ever since, and with what we know is coming down the pike. Before we move to your questions, I'd just like to touch very briefly on just a few topics. Let me start by saying, clearly a significant innovation for AMC last year in 2023 was our distributing for the first time in AMC's history a movie and exhibiting that movie, of course, that movie being the concert film of Taylor Swift, New York, followed almost immediately by the concert film of Renaissance, a film by Beyonce and Ellis Carter. Those two efforts were quite lucrative for AMC. They were perceived to be big successes in the marketplace. They should be perceived that way since Taylor Film was the highest grossing concert film in history, and Beyonce's film was strong. And it's no surprise since that we realized we had an opportunity here. Many world class artists have come to us, we've gone to many world class artists, we've had many more such interactions. And I can say with certainty that there will be more such theatrical events ahead of us over the next 30 months. The first of those was in May, when AMC in partnership with Apple Music and Interscope Records hosted exclusively listing parties at more than 100 of our U.S. theaters for Billie Eilish in the launch of her…

[Operator Instructions] Our first question comes from the line of Eric Wold with B. Riley Securities.

Thank you. Good afternoon, Adam and Sean. I guess, obviously, doing great here domestically with the share gains and improved monetization. I guess, maybe give us an update on the current state of the UK and your international market. What are you seeing there with underlying movie-going demand relative to the U.S.? How its pricing power improved or not in recent months, given the competitive environment there? And lastly, how do you view the opportunity to take share internationally either organically or inorganically with some competitors struggling and closing locations?

First of all, hello, Eric. Nice to hear your voice. And since Europe reports to Sean directly, I'm going to let him answer the question first and then I might chime in after. Go ahead, Sean.

Sure. Hi Eric. So, the European business overall the industry in Europe has been responding quite well. The industry performance in second quarter, '24 is actually better than in the domestic market. But the thing about the European business is a couple of things. One from an operating leverage point of view, inherent in the structure of that business is it has higher operating leverage than what we have here in the U.S. That's just part of the enhanced structure there. So, when you have a situation where attendance is down on the previous year's quarter and attendance is still significantly down versus 2019, you do have more of operating leverage impact there. So, one has to bear that, in mind when looking at the European results. The other thing one has to bear in mind when looking at our European results is, if you look at the percentage of theaters closed in Europe versus percentage of theaters closed in U.S., closed a higher percentage of theaters in Europe than it closed in the U.S. The first thing to bear in mind with the European business is the market there is different from the U.S. market in that during the pandemic and for a while after that many of the competitors in the market received government assistance. So, you haven't seen that level of theater closures yet as we saw in the U.S. market. So, those are all factors impacting the performance of the business there. As you heard in my prepared remarks, our business there is doing well. The contribution margin profitability is high, significantly higher than it was pre-pandemic. It's actually slightly higher than it is in the U.S. With that operating leverage and with the debt as we've closed, you do see more of the bottom-line impact. Just on the market point of view, the market there is quite challenging particularly in the UK market. We have a competitive situation there where it's somewhat irrational pricing from one of our competitors in the UK market. That irrational pricing is not sustainable for them, but that is creating some pressure on our ability to take price increases there. But as I said that's not sustainable for them over the long period of time. So, we do see our ability to take market share as being sort of normalized there to certainly get better. But that's sort of my perspective on the European market. I don't know if Adam --

No, that's all right. I would just maybe comment in the UK in particular. There is one circuit that's pricing movie theater tickets privately in bulk. They're doing sort of an institutional business to business program as well as3 pounds, which is lunacy, it's idiocy. But it'll be very hard to take. But if that's what they're doing, market share will move in their direction. And it'll be very difficult to take share back when a competitor is practically giving it away free. But we're very proud of what we're doing in Europe and our European team, first of all, we run our European theaters from Europe. We don't run them from Kansas City, which is the best decision we made as a company eight years ago, because there are a lot of people in Kansas City who speak Portuguese. But they've really done a great job running the circuit there, and come up with a lot of imaginative ideas. And one that I just want to it wasn't in my prepared remarks, but I talked about large screens and they've done something I think is quite interesting that I might share. In almost all of our buildings, we have movie theater screens that are quite large, and we've never marketed them as anything special, although that's where the newest most important movie scope and it makes sense. You would put if Inside Out 2 is coming out, you're not going to put it on a small screen way in the back, you're going to put it on the biggest screen that you have in the entire theater complex. And so what Odeon did earlier this year is they branded these large auditoriums with large screens, like really large screens, and they branded them XL as their shorthand for extra-large,…

Our next question comes from the line of Chad Beynon with Macquarie.

Afternoon, thanks for taking my question. Wanted to continue the conversation on operating leverage, but maybe focus it back here on the U.S. A few times in your prepared remarks, you talked about June results, I guess, really without giving us the exact numbers, but wanted to think about margins here. For the quarter, your domestic margins were 6%, pre-pandemic, you guys were in the mid to high teens. I guess maybe the best way to ask it is, is there anything that you're seeing in the business, in terms of where it is now versus before or anything that you saw in June that makes you think that, you can't get back to those margins that you experienced in '19?

Thank you, Chad. First of all, hello, Chad. I'll start, and then I'll pass it off to Sean. So, we just don't want to get start to -- we release quarterly results. We don't want to make the mistake of releasing monthly results and then have to release monthly results forever after. But you should -- without giving you a quantifiable number, so we've set the press and I mean to tell you what every single month is going forward in perpetuity. I think the right way to describe our profitability in June compared to that of April and May and by profitability I'm referring to adjusted EBITDA. I think there's a technical term called through-the-roof and there might be a curse word there before the roof. Like the difference between April, May and June is just it would take your breath away of how much of a change. And that's why in my earlier remarks, I kept on saying, this is such a strange quarter, where you can't really even look at the quarterly results because the April and May results are so radically different than the June results. Now as to your specific question about margins, can we get back to the start margins? Sean, do you want to take that?

Yes. Following up from what Adam said, by definition, what Adam said in his prepared remarks is that, the June EBITDA was higher than June 2019, right? So, by definition, our EBITDA margin in June 2024 was higher than it was in June 2019. And I think to your question, Mike, is there any reason why we shouldn't be able to do that going forward? I don't think so, because remember we spoke about the contribution margin per patron and contribution margin profitability so much higher than it was pre-pandemic. We've been able to sustain that now for year-after-year, where we were concerned initially is that sustainable back in 2021, beginning 2022, is that sustainable?

It only got better.

It only got better, and I think the actions that we've taken particularly on the food and beverage side and enhancing the guest experience and with potential new investments in PRS et cetera, I don't see any reason why we shouldn't be able to return to those sort of margins as the industry recovers.

And I would just add, just when you look at F&B, right, these numbers are pretty public. If you assume that -- it's not a perfect assumption, but if you assume that labor stays constant in a theater regardless of volume, this isn't really totally true, but we just step up a little bit as volume increases at the theater. But if you were to make that assumption, you already know what our film rent is. So you know what percentage of ticket price flows through the contribution line. Prior to all those other expenses that you have to cover like labor, but I'm assuming I'm pretending that that's fixed at the moment. We've been very public over the years saying that our margins at F&B are in the low 80% range. And you have our food and beverage revenues released for the quarter. And if you go back and compare the food and beverage revenues of 2024 against the food and beverage revenues of 2019 pre-pandemic, you're going to see that we used to be doing about $5 a head in food. And now we're doing $9 and I'm not talking about you, I’m using U.S. numbers, I'm not using consolidated numbers. And now we're doing $9 a head, sometimes $10 a head, depends on the day, week, month, quarter. Well, by definition that extra food and beverage revenue has much higher margins than our other revenues. And that's where we've seen the biggest growth. The biggest growth has come in extra food and beverage revenue. And so that's one of it's not the only reason, but that's one of the key reasons why the profit per patron is up so much. The other reason that the profit per patron number is up so much is that we've really just done such a great job in cutting costs. And remember in my prepared remarks I said even though the box office was down 3.5% June over June, the adjusted EBITDA in June was up. So what that means is it all came out of expense cuts. Now that's comparing June of ‘24 to June of ‘23. If you compare June of ‘24 to April May of ‘24, then the big and profit drivers in June of ‘24 versus April May of ‘24 is a combination of the expense cuts and the fact that the revenues were so much higher in June because the box office was so much higher in June than it was in April May.

That makes a lot of sense. Thanks.

But the point of that long winded answer is to say, I believe our margins are going to look really good. And if you -- I said in my prepared remarks that more than 50% of our incremental dollar flows to the contribution line, right. And in some cases, it's a lot closer to 65% than over 50%. Well, in an industry where the revenues are increasing and 65% of the marginal dollars flow to the bottom line, not the net profit line, but the EBITDA line and the contribution to overhead line. That's huge operating leverage. And conversely, if the revenues are shrinking, which is what we've been dealing with the last 5 years of our lives, 4.5 years of our lives that incremental, operating leverage works against you. And so every dollar of revenue that we lost, we were losing $0.65 from the EBITDA line. But in our opinion and by the way for full disclosure, we could be wrong, right? I don't think, we're wrong. I got we have a lot of data that proves the right, but no one's crystal ball is absolutely perfect. But, if we're right that industry revenues are about to grow and AMC revenues are about to grow, and recently we've been gaining market share, not losing market share, which means, if that were to continue and there's no guarantee they will, but if it were to continue, it means we will even grow faster. It means, our margins are going to expand, because our overall margins are in the teens and our incremental margins are in the 50s and 60s. There's a big difference. So I think there's a possibility, as opposed to, like, is there a chance we can't get our margins back? I think it might go the other way. I think it's a possibility. The probability is our margins will actually start to expand.

Our next question comes from the line of Jason Bazinet with Citi.

I just had a quick question on the theatrical window. Do you mind just giving us an update on sort of how the contours of the window have changed? And whether that's good or bad for the spring? Thanks.

Yes. It's Friday night, it's an hour later on the East Coast, so I'll try to talk shorter. In the good old days, I'm going to use U.S. only because the windows are different in every country in the world. But U.S, in the good old days pre-pandemic, the windows were 74 days before the movie went to a pay window in the home, or to -- and it often was -- and then it might have gone to DVD, and it might have been six months before I went to the home for free. I want to say for free, like going on to home HBO, where you're not paying -- you're subscribing to the service, but you're not paying immediately for the title. There was a lot of experimentation during COVID. People tried a lot of different things and you know you've heard of all the things they did. Some studios took movies to their streaming services and took them out of theaters, by the way a lot of studios tried lots of different things. When I think some studios I don't mean a studio only did one thing, they might have done multiples of these. Some of them tried to take the movie to the home day and date, the same day that it went to theaters, it went to the home with a streaming service. Sometimes they took it to a streaming service free, sometimes they took it to a streaming service for pay. Someone studio in particular, and with our full agreement, we've entered a deal with Universal that they would take a few movies that were small to a pay window at 17 days and we would share in the revenue of that. That was later amended to they would take small movies at 17 days and they would take big movies at 30 to 35 days. But with all that experimentation that went on, what the industry coalesced around was a 45-day window exclusively in theaters and after that it could go to the home on streaming services. So you have to pay to have the streaming service, but you didn't have to pay to have the title. And the only exception to that was the Universal PVOD deal and occasional PVOD deal that somebody might throw at us on an ad hoc basis. And there aren't that very many movies that were going in the PVOD system. So, if I was a guess, I would say 90% of the movies coming out where we're observing a 45-day cruise and theatrical window.

Okay.

It's unclear whether that was just fine or whether theaters have been hurt by it. The reason I say it's unclear is just because you know the box office is not yet back to pre-COVID levels. So how much of that is because there have been fewer titles and how much of that is fewer attendance? It looks to us like it's more fewer titles is causing the drop in the box office, not lesser attendance per movie released. So right now we think the 45-day window has not hurt us, but we don't know that for sure. And we'll learn a lot more over the next 18 months as the clearly the number of titles increases, the revenue is going to increase, and we'll see. The only reason I mentioned all that is there was one other learning. Warner Brothers for one year took all their movies to Max on the same day for free as they put them in theaters for pay. And they compensated us for that somewhat not entirely by dramatically reducing the film run that we were charged. But I will tell you that was a disaster for theaters. And our quantification is when movies went to the home for free the same day that they were released to theaters for full price, we lost about half the audience in theaters. And now you'll notice that that went away from the industry because it would have destroyed the whole industry. But so the -- it's unclear whether the 45-day window is okay, but it might be, it might not be, but it might be. But it was very clear that going to the home day and day was a disaster. I don't want to say it was a disaster for Warner, I'd say it was a disaster for the theater industry.

Crystal clear. Thank you. Very helpful.

Our next question comes from the line of Jim Goss with Barrington Research.

I wanted to ask you, Adam, about the screen based rationalization effort. You've been carrying back on the both the domestic and international screens, especially domestic. Typically, that happens when leases come up for expiration and you decide to extend or end the lease. I'm wondering what share of the decision tends to go to extension versus ending the lease. Do they tend to be focused in the AMC Classic markets? And is there more room to run on that?

So we've closed 160 theaters out of 1,000 in the last four years. So, the theater is a money loser. We sit at -- and it's at the end of the lease term. We sit down with the landlord and we discuss it. And there are any variety of outcomes. Often, the landlord will renegotiate the rent terms and make them more favorable, such that we can keep the theater open. Sometimes jointly with the landlord, we decide that, the best course of action is to renovate the theater and invest in the theater and improve the product with the hope of driving more revenue with the theater, which would then support a different rent structure. In other cases, the rent structures are moved from fixed price to variable price, which is to say that, instead of we take all the risk like the rent is x dollars no matter what the volume of theater is. In some cases, we are successful in convincing the landlord to take a percentage of revenue. The landlord can make more if the theater succeeds, but the landlord takes less if the theater, can't sustain a higher rent. And sometimes we have to close the theater. If I had to guess on the percentage, I mean, my real estate guy knows it like intimately and he's told me 20 times and I think I have it directly right, but I might be marginally off. I think we wind up closing about 40% of the theaters, where we have those conversations with the landlords at the end of lease. And this again, these are round numbers, but about 10% of our theaters come up for lease renewal every year. So, we -- say 55 theaters come up in the United States every year, 85 theaters…

Okay. Well thanks for taking my question.

Thank you, Jim. Nice to talk to you again as always.

Same here.

Our next question comes from the line of Alicia Reese with Wedbush.

Hi, guys. Thanks for taking the question. I had a quick question really on the concessions per cap and margin. Just looking at the specialty popcorn buckets and assuming that there's obviously going to be a bigger benefit in quarters where you have titles like Dune 2, Deadpool, Wolverine and such. But I'm wondering if what you're seeing there on films like that? I do understand that you only offer that in the very early days of the film's release. But are you seeing a larger basket of concessions purchased around that? Obviously, you're going to get higher margins on that. I was just wondering if you could give a little bit more detail around that.

Well, we're learning as we're going and the -- we built this up from basically zero to $50 million a year in 30 months, which is pretty good. And our -- we didn't want to get stuck with a lot of excess inventory. So we tended -- as a company our strategy was buy for the biggest movies only and buy enough quantity that you could kind of last the whole of opening weekend, but you weren't stuck with a lot of excess supply beyond opening weekend. And the first learning is we can do a lot more movie programs than just a few. So when we started this thing, we were doing maybe six movies a year, maybe eight, maybe four, I forgot exactly those single-digit. And now we're practically doing them every week, almost every week, but certainly twice a month. So I'm guessing we have 30-ish maybe 40 merchandise programs a year now. And the other thing, the next thing that we've learned is whether it's because we've trained the consumer to like these things or the consumer does like these things, they're flying off the shelves. And so the other thing that's happened is to satisfy the full opening weekend demand. We've got to this is a high quality problem, not a bad problem. We've had to increase how much of the stuff we order. Remember, we order like eight months in advance because we're it's often made overseas and shipped to the United States. And so we've got to increase our orders and it's getting so popular that we might have had one movie themed merchandise item for a film and now we'll have three different merchandise things for a film. And in the case of Deadpool and Wolverine, where are we ordered about 50%…

Yes, it seems like a good program. Were you able to get any merchandise around the Olympics? And also I was wondering what the ticket price was around that if you're able to share that or just qualitatively if it's higher or lower than typical field ticket?

We did not get Olympics merchandise. And honestly I don't know what price we're charging for the Olympics. I never asked. I was so excited that we landed it. I never asked, our head of programming what she's going to charge. I could tell you what every concert movie goes for though, to the penny.

Yes. If you would.

The other was $19.89 for adults and $13.13 for kids. Beyonce was $22. I know -- sorry go ahead.

Thank you. I appreciate the detail. And I just had one last housekeeping item for Sean. I think I heard you say the CapEx for the year was $175 million to $225 million as you had said before. But did you say $175 million to $200 million, does that come down or was that still $225 million on the high end?

No, it's the same as it was before $175 million to $225 million here.

Thank you.

If you still there the price for we just pulled up the price for the Olympics, it's $8.99 for adults, $6.69 --

That's a reasonable price, so that will get people in. Thank you.

Adam, let's take just 2 quick questions from our retail shareholders. Yes, the call is run long, and it's it is a Friday night. Like, for us, it may be a Friday night of summer, but, this is a 24/7 kind of a place. We didn't actually get the debt extension deal done by working Monday to Thursday, 9:30 to 4:30. But it is a Friday night, so we do want to let get off the phone and let you guys go home. So, let's take a couple of shoulder questions and then we'll sign off.

Okay. We'll just take two quick ones here.

The first one is about our auditoriums. The question is general, what are the plans to enhance the auditorium experience for the future? What about things like private booths or 4D experiences for our guests?

So that's a good question, because there actually there's some serious activity going on in this area within the company right now. First, we have about 43 theaters out of 550 that represent about a third of our EBITDA. So these are our very successful dealers. These are the -- this is the opposite of the Jim Goss to close them. This is where we make a lot of our money. And so, we keep on looking at ways to improve those theaters, and at the highest grossing AMC Theater in the United States, which is our theater in Burbank, California, it's not every single week it's highest grossing, but most week it's the highest grossing theater in the country. The seats were quite run down, and we didn't have the option of putting in reclining seats because the theater was packed. And the seat loss would have been too high if we put in reclining seats. But we did rip out all the fabric seats and we put in a brand with which were like cinema straight uncomfortable seats, so traditional movie theater seats that have gone by the wayside over the years. But in the words of Yogi Berra, the place is so crowded nobody goes there anymore. The place is so crowded we couldn't like take seats out. So what we did is we did replace all those seats and we put in leather seats, and they were 15% wider and they had more padding and they rocked. So you can control so the comfort was much better. And we had minimal seat loss, and it's changed the entire look of the theater and made it look like a car with beautiful leather seats instead of a junky stained fabric seats that have been had Coca Cola…

Yes. The last question, staying on the theme of investment opportunities, the question is sort of where we focus on investment and I think you've spoken about that right now. But then it goes on to say, are there investment opportunities outside of the exhibition industry that we would consider?

This is an area where AMC has had our head jerked around a bit, in the last year, because exactly a year ago at this time, we thought, based on the number of authorized shares that we had in our share price that, if we were to use other shares not that we would, don't get nervous retail investors. We know these shares are quite precious quite precious. Give me one sec. We might have been able to raise $6 billion. How do we try to sell our shares of market, not that we would have done so? We would have only done so if we had something really good to do with money, and we didn't have anything been that brilliant to do with money. But our share price has come way down in the last year. And today, based on the current share price, we could probably only raise about $500 million. And if we only could raise $500 million and you add that to the $770 million of cash that we have now. That money needs to be husbanded very carefully to make sure that our liquidity position is strong, that we can bring in debt as we need to bring in debt. We still have about $450 million of debt that is currently due in ‘25 or ‘26. Some of that we might be able to push out and extend it, but some we might buy back some we might buy back at a discount. We also need money to invest in growth initiatives inside the business like more PLF auditoriums like I just described a few minutes ago. So I think right now external M&A, if we were doing, it would only be if we're investing a very small amount of money, $25 million not $1 billion. And so right now external M&A is not our highest priority because we think that we should treat these, the cash that we have is precious. We should treat the shares that are in the treasury that we have not yet used as precious. And so, I think we've got to grow the business internally organically for now.

With that, everybody, we're going to end the question-and-answer session. I'd just like to close the call by reminding everybody that the challenging first half of '24 which was impacted by the 2023 strikes is behind us. It's in the rearview mirror. So now at AMC we believe we're off to the races. We're highly confident that the box office will be growing in the second half of ‘24. We're highly confident that box office will be growing in ‘25. We're highly confident that box office will be growing in ‘26. And that's good news for us, and that's good news for people who want us to succeed. With that, thank you very much for your time today. And we'll adjourn the call. We appreciate you joining us.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.