Global Eagle Entertainment, Inc. (NASDAQ:ENT)
Q2 2016 Earnings Conference Call
August 8, 2016 05:00 PM ET
Kevin Trosian - Senior Vice President, Corporate Development and Investor Relations
Dave Davis - Chief Executive Officer
Michael Zemetra - Chief Financial Officer
Abel Avellan - Chief Executive Officer, Emerging Markets Communications
Walé Adepoju - Chief Commercial Officer
DeGasperi - Macquarie
Robert Gutman - Evercore ISI
Dick Ryan - Dougherty
Stan Meyers - Piper Jaffray
Jason Bazinet - Citi
Matt Blazei - Lake Street Capital Markets
Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Global Eagle Entertainment Second Quarter 2016 Earnings Conference Call. At this time, all participants are in a listen-only mode. Following the prepared remarks, there will be a question-and-answer session and our instructions will follow at that time. [Operator Instructions]
I would now like to hand the conference over Kevin Trosian, Senior VP of Corporate Development and Investor Relations. Please proceed sir.
Thank you, Brian. Good afternoon and welcome to Global Eagle's second quarter 2016 earnings conference call. On our website at www.geemedia.com, you will find a slide deck to accompany our earnings presentation and can also follow along with the webcast.
Before we start, I would like to remind you that the discussions during the call will include certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management's current expectations and beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by those statements due to various factors, which are discussed Global Eagle's most recent annual report on Form 10-K and in subsequent reports on Forms 10-Q and 8-K. Global Eagle is under no obligation to and, in fact, expressly disclaims any such obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
The discussions will also include certain financial measures that were not prepared in accordance with US Generally Accepted Accounting Principles and a reconciliation of those non-GAAP financial measures to those most directly comparable GAAP financial measures can be found in the back of this presentation and in the earnings release furnished with Global Eagle's current report on Form 8-K dated today.
Now, I’d I like to turn the call over to Dave Davis, CEO of Global Eagle.
Good afternoon everyone and thanks for joining our second quarter 2016 earnings call. In addition to Kevin, joining me on today's call are Mike Zemetra, our CFO; and Abel Avellan, GEE’s new President and Chief Strategy Officer. Abel was the founder and CEO of EMC. As you all know we closed our previously announced acquisition of EMC at the end of July.
I want to start by reiterating how pleased I am with the EMC acquisition. It is a truly transformational transaction for our company. With EMC we become a leading provider of global satellite-based connectivity and content to rapidly growing connectivity markets across air, sea and land, significantly expanding our addressable market.
As a combined company, GEE’s revenue base is now better diversified and split equally between media content and connectivity sale. The integration process is well underway, and we expect to realize significant cost savings from this acquisition. We are on track for $15 million in savings in 2017, growing to at least $40 million in 2018 and thereafter. Over the past three years, GEE has demonstrated a track record of successfully integrating nine acquisitions, and we expect it to continue with EMC.
To summarize a few points of the deal. The combination provides GEE with an unparalleled portfolio of products and services tailored to mobility markets. A global sales force and support organization that reaches all major mobility verticals. A network infrastructure that can provide customers connectivity and media across multiple frequency bands anywhere in the world. Propriety patented technologies that enhance the connected traveler’s user experience and reduce cost. Extensive engineering, technical and managerial resources, and the opportunity to cross sell products and technology across aviation and maritime markets. Needless to say, we are very excited about what GEE brings to our company.
Turning now to our results, and I would like to remind everyone that EMC was not a part of GEE during the second quarter. So our results reflect GEE’s stand-alone performance only.
For quarter two consolidated revenue was $112.3 million, while adjusted EBITDA was $11.2 million. Mike will provide more detail on our financials later, but now I walk through the highlights of our content and connectivity segments.
Starting with Content, we posted revenue of $78.7 million, representing year-over-year growth of 7%. Our content business unit continues its steady growth. Following our success with airlines in the Middle East two years ago and South America last year, our focus this year has been predominantly on the Pacific region, where we have won new business with Qantas and Jetstar airways and renewed contracts with two key customers.
Our content distribution business, which purchases rights for the sale of content for the aviation and maritime markets, added several new products during the quarter. We have been granted the exclusive rights from the International Cricket Council to deliver major cricket events for the next three years and we secured exclusive rights to broadcast UK Premiership rugby union matches for the next five years.
We have also signed deals with four new television channels to expand our TV offering, including RTL, Colors, TFC, and ITV Choice; and we have entered into a distribution deal to supply web style short form content to mobility markets with a company called the QYou.
Our advertising sales business also continues to grow nicely. Recently we have added a number of brand name advertisers to our roster, such as Westin, Allstate, Marriott, and Cadillac among others. Since expanding our advertising sales group last year, we have been able to achieve an annualized double-digit revenue growth rate and we are continuing to invest in this business.
I am also pleased to report that we have substantially completed settlement negotiations with major music labels and airlines regarding legacy audio copyright issues. We expect to enter into final agreements with those labels in Q3. GEE will continue to offer a broad selection of audio products to our aviation and maritime customers. Mike will provide more color on the settlements later in the call.
Moving on now to connectivity. We posted another strong quarter with revenue of $33.6 million, representing year-over-year growth of 17%. We installed our Airconnect system on 30 aircraft in the quarter, the highest number of installs since the formation of GEE bringing our total to nearly 750 installed planes, and we expect to see a greater install rate in the second half of the year.
Our sales pipeline continues to be strong. Today we announced that we have completed an agreement to provide connectivity services to Avianca Brasil. Avianca Brasil and its partner airline Avianca has been GEE content customers since June of 2015. This is another customer that uses both GEE content for their seatback IFE systems, as well as our AIRCONNECT in-flight connectivity system.
To service Avianca Brasil we have utilized spectrum that [EMC] had in place over South America, reducing startup costs and increasing capacity utilization in the region. We are going to be integrating proprietary technologies from EMC, including the patented
Speednet acceleration tool to improve browsing speeds while on flight. Installations are expected to begin in the fall.
During the quarter, we continued installations Flydubai aircraft, and we expect to have the full fleet rolled out over the next six to nine months. All services, including five channels of live television are fully available on the connected aircraft, and we are seeing take rates increase as more passengers become aware of this service.
We continue to develop new connected aircraft capabilities and services. Our connectivity system was recently certified for delivery of weather and other EFB functions during all phases of flight. We have also integrated live aircraft data streamed over our connectivity system into our masFlight airline ops data platform, and launched a new cloud-based application for flight data analysis. This new application provides airline executives with current and complete performance data that enables new efficiencies and cost reductions. During the quarter, we also added four new airline customers for our navAero Electronic Flight Bag solution in two new customers for the masFlight ops data platform.
In summary, we had a great quarter with strong results. Before turning the call over to Mike, I want to highlight a few key statistics about our company post the acquisition of EMC. First of all we continue to see solid growth rates in the aviation market with the in-flight connectivity market growing in the 20% range, and content in the 8% to 10% range annually.
We expect the maritime market to grow at a rate of 10% to 15% per year. Our combined company’s full year 2016 pro forma revenue is forecast to exceed $660 million and adjusted EBITDA on a full year pro forma basis is expected to approximately double. Our content segment, which had traditionally been 70% of our revenue, will now represent about 50% of the combined company revenue.
Our connectivity business will be split approximately equally between aviation and maritime at about 40% each, and the remainder coming from land-based markets. And we have only one customer, which represents over 5% of our revenue. To best align our org structure with our new end markets, we have organized GEE along three service lines; media and content, aviation, and maritime and land. These groups are being led by Walé Adepoju, Joshua Marks, and Abel Avellan respectively. All three are on the call to answer questions during the Q&A portion.
As previously mentioned, we expect to derive $15 million of synergies in 2017 and at least $40 million of annual synergies in 2018 and beyond. A major source of savings is expected to come from network efficiencies, including the ability to optimize bandwidth costs through the consolidation of existing network assets, including space segment and ground infrastructure, as well as better capacity utilization. Further savings are also expected through reductions in SG&A spending.
On the revenue front, we see a great opportunity to cross sell our media products into the maritime market. Additionally, the aviation market has represented about 95% of our content revenue, we expect to continue to grow our aviation content revenue business while at the same time dramatically increasing our penetration of the maritime market. In summary, we are very excited with what EMC brings to Global Eagle and the opportunities that lie ahead of us.
Now I will turn it over to Mike to provide a bit more color on the financials for the quarter.
Thank you, Dave. We ended the first half of 2016 with strong results, including Q2 2016 revenue of $112.3 million, adjusted EBITDA growth of $11.2 million, and record connectivity revenue and installs during the quarter.
More specifically on Q2, Q2 consolidated revenue was $112.3 million, up 10% year-over-year due to organic growth in our connectivity and content segments and from recent acquisitions.
Q1 consolidated contribution profit of $37.3 million was relatively flat year-over-year. Due to higher overall revenue in Q2 2016 coupled with lower content margins, higher mix of equipment revenue, which typically has lower margins and the addition of fixed connectivity bandwidth costs ahead of corresponding revenue of Q2 2016 when compared to Q2 2015.
Q1 adjusted EBITDA was $11.2 million. During the quarter, we increased growth orientated investments and product development and sales and marketing expenses Q2 2016 versus Q2 2015.
Now, I’d like to discuss the year-over-year financial performance across our content and connectivity segments. Turning to Content, Q2 Content revenue grew 7% year-over-year to $78.7 million from $73.8 million in Q2 2015. This was largely due to the growth in content license revenue from new and existing content customers; increased revenue from advertising on in-flight entertainment systems and airline lounges; and revenue from new acquisitions; offset by year-over-year declines in content distribution.
During Q2 2016, content distribution had an expected seasonally weaker title slate versus Q2 2015. Excluding this anticipated drop, year-over-year content growth would have been approximately 9%.
Q2 content contribution margin was down slightly year-over-year to 33% in Q2 2016.
Heading into the second half of 2016, we expect our slate of upcoming title releases and corresponding content revenue and contribution margins to improve significantly over Q2 2016, and to be more in line with historical comparatives.
Turning to Connectivity, Q2 Connectivity revenue increased 17% year-over-year to $33.6 million. The year-over-year increase was due to a $2.6 million increase in Connectivity services revenue, and a $2.4 million increase in Connectivity equipment revenue. The increase in Connectivity service revenue was due to various factors, including a higher base of Wi-Fi installed planes, increases in passenger usage rates, and overall improvement in network performance. Offsetting these were a slight decline in sponsorship revenue.
The increase in equipment revenue was driven by higher AIRCONNECT shipments as well as Electronic Flight Bag equipment shipments from navAero.
Q2 Connectivity contribution margin decreased 3 percentage points from 37% in Q2 2015 to 34% in Q2 2016. The year-over-year decrease was principally due to the addition of fixed connectivity bandwidth costs ahead of corresponding revenue, mainly in international regions such as the Middle East, coupled with the previously discussed decline in sponsorship revenue. Offsetting these were higher equipment margins, which were largely driven by Electronic Flight Bag shipments during the quarter.
Now, I’d like to discuss Q2 installations. Ending-Q2 installed plane count increased from 706 reported at the end of Q1 2016 to 736 installed planes at the end of Q2 2016, an increase of 30 planes and in line with our previous guidance on backlog. As discussed on our last call, we continue to expect year-over-year installs to increase significantly in 2016, accelerating in the second half of 2016.
Now, I would like to discuss the trends in our operating expenses. Excluding non-cash stock-based compensation and depreciation expense, non-recurring operating expenses of approximately $6.1 million in Q2 2016 and $5 million in Q2 2015, Q2 operating expenses were $27.2 million versus $24.8 million in Q2 2015, up 10% or $2.4 million year-over-year. The increase was largely due to recent M&A, and increased investments in various growth initiatives in 2016. As a percentage of revenue, Q2 GAAP operating expenses remained relatively stable year-over-year at approximately 24%.
Turning to our balance sheet, we ended Q2 2016 with cash of $196.7 million, down $22.5 million from Q1 2016. This was largely driven by Q2 cash flows from connectivity equipment outlays, satellite transponder purchases and stock buybacks.
Now, I would like to update you on a few additional items. During Q2, we purchased in aggregate 614,000 shares for a total of $5.2 million. Our program remains open as of today. During Q2, we substantially completed negotiations and legal settlements, various music labels and airlines. And as a result, we reported a $38.1 million expense in the quarter, to we paid in a combination of cash and stock.
This was at the lower end of our previously disclosed range.
Lastly, in late July 2016 we completed the acquisition of EMC for approximately $550 million. Purchase price consistent of the assumption of approximately $386 million in debt, 5.5 million shares of stock, cash paid at closing of $85 million, $25 million of differed consideration due one year from closing, payable and cash are stocked at our discussion. Books to close at the EMC transaction, we ended with approximately a $100 million of cash on the balance sheet, and $47 million of availability under our new bank revolver both in line with our prior projections. As of June 30th, 2016, we got approximately 7.4 million warrants outstanding and we ended the quarter with approximately 78.1 million common shares outstanding.
Turning to guidance. Including the impact of the EMC acquisition on our last five months of 2016, we are updating our full-year 2016 guidance as follows. 2016 full-year revenue of $545 million to $575 million, 2016 full-year adjusted EBITDA got $80 million to $92 million. 2016 full-year CapEx range from 40 million to 45 million, which included expected growth investment in connectivity equipment.
That concludes my prepared remarks. We now like to open up the line for Q&A.
[Operator Instructions] Our first question comes from the line of Andrew DeGasperi with Macquarie. Please proceed.
Great, thank you. I just first, can you maybe quantify the cross selling of content to the EMC's maritime customers. I mean, can you give us maybe an idea of how many ships out there don’t have content distributed by anyone today and what do you see the low hanging fruit there?
Yes. So, hey this is Dave. We think that the opportunity is large. There are most crew ships today have some form of content on board that's either provided by other providers or is pretty thin. We think there is a big opportunity to greatly expand the amount of content that's available today. In terms of merchant vessels and yachts, we're just sort of tapping the surface as to providing content to those ships for over a 100,000 merchant vessels in the world. There are some other suppliers in the space today but none of them with the size and scope of Global Eagle or the access to on live and stored content that we have.
I also want to make it clear that in the synergy numbers we've quoted, those are purely cost synergy numbers, we haven’t put anything in there for revenue synergies at this point. We haven’t given sort of a quantified number yet. But we think the opportunity is large.
Got it. Just sort of a follow-up on that, on the synergy cost synergy number. Now, enterprise data pricing among the severed operators has been sort of flagged to decrease significantly over the next few years particularly for seller trust market pricing. Is that included in your estimates with as far as the benefit to you with regards to that?
The overall impact of falling prices in the satellite space is baked into those numbers only in a very small, in a relatively small way, let's say. Most of it is consolidation of network and it's the ability to take advantage of the best contracts that are in place between either us or EMC. So, for the most part, additional drops in bandwidth pricing going forward should accrue to our benefit. Above and beyond the synergy number that's reported.
Got it. Last question. Avianca Brasil is a nice win, 40 aircraft. But I noticed that they have somewhere around 60 aircraft A320 is an order. Could you potentially be awarded those? And also the parent company of Avianca, do they, are they using anyone currently or is that also on the table as far as future opportunities? Thanks.
And so, the current award is for 40 plus aircraft. We think there is potentially an opportunity to expand that, first of all, with new deliveries. And the partner airline currently is not offering inflight connectivity. We think that could be an opportunity as well. One thing I want to say about this is we're really excited about this one for a couple of reasons. First of all is the foothold in South America. But second of all, part of the reason that it came about is because of the partnership that we've had with EMC even prior to the acquisition. So, we're going to be using the EMC network, we're using some EMC technology and the EMC sales force in South America with key to helping us get this win. So, it's truly a win for us that was done in partnership with EMC.
Got it. Thank you, so much.
Thank you. Our next question comes from the line of Robert Gutman with Evercore ISI. Please proceed. And pardon me, Mr. Gutman, if your phone is on mute, please take it off mute.
Hi. Thanks for taking the question. I was wondering if you could just provide an update on where you're seeing some of your trials, Air China, Air France. And also I was wondering in terms of your announcement earlier this year, the ability to provide a Ka offering. Are you seeing any interest in that and lastly just a review of the RFP pipeline.
Sure, why don’t I have Josh Marks who is running our aviation unit now address that?
Thank you. I'll start with Air France and Air China are two trials. On Air France, we completed a successful trial on two airbus aircraft that demonstrated our internet and television capability. I received very positive feedback from that and we are now working with our partners to move the process forward in a positive way to totally to point us across the Airbus A320 family at Air France. On Air China, we're currently conducting a trial on an Air China Boeing 777 and that trial will continue to the expiration of our at the end of the third quarter. We demonstrate our capabilities to meet local regulations and our trial includes three channels of live television, destination guides and advertising. And again there we will continue to work with our partners to launch a commercial trial on the Air China Boeing 737 as well as previously discussed.
Related to Ka, we announced our relationship with you last quarter and we believe that having both Ku and Ka groups are offer to both crew and the future customers. Our Ka network in North America will utilize the Hughes network and JUPITER too launches in November. We've also been adding a Ka aperture to a new antenna program and expect to certify our Ka antenna in early 2017. So, that's progressing well and we are now in the process of offering that Ka opportunity to new customers related to the RFP the pipeline. We have a strong RFP pipeline at the moment. Today of course we announced Avianca Brasil, which is a key win.
We're seeing increased activity across the world in different regions. They are on active discussions on many different fleets and I think that that will really start to see some benefits there as well from the global coverage capability that we get to the EMC satellite network which increases our competitive position in Global Airlines and for new opportunity.
Great. Thank you, very much.
Thank you. Our next question comes from the line of Dick Ryan with Dougherty. Your question please?
Great, thank you. So, Dave, say then stand with the Avianca question, did skew angle equatorial issues come into play or was that driven by your next generation antenna or was it the content relationship?
So, operating near the equator there is going to be the skew issues which we have we believe overcome by having enough coverage on satellites that we need to have in place with the EMC to overcome the skew angle issue. So, we anticipate Avianca Brasil being served with our current generation of antenna systems. The content relationship I think was pretty important because we built a relationship with these guys starting in June really of 2015 and have worked the relationship since then. And then when EMC got into the picture, they helped as well. So, we think this skew issue, within the skew angle issues are overcome with more well placed satellite coverage and the content piece was I think a significant part of this.
Okay. And then may I miss the relationship with the sister company, I think they have a 100 aircraft. What's the possibility of moving in that lately? I'm not sure if you've addressed that or not.
So, let's just say there's a possibility of moving in to that fleet. This active discussions are underway. What, that sort of something that I think as I said its discussions are happening right now.
Okay. On the content side, if my numbers are right, it looks like organically both year-over-year and quarter-over-quarter there was a decline. Can you provide more color what content distribution revenue with the kind of visibility you have there and if it returns to more normal levels. How would you describe what the normal levels are within the content?
Yes. I don’t think it was, I don’t think organically there was a decline. We sort of grew in total at about 7%. Some of that was acquisition but some of that organic too. Basically, the growth rate that we say or let's say the revenue numbers that we saw on the second quarter were actually almost spot on with what we had budgeted it for the year. We had anticipated our distribution business to be down a bit in the second quarter really just due to the timing of some individual titles. I think we're going to see a nice rebound in the third and fourth quarter and our distribution business which is going to get it back in to the sort of historical growth rate that we talked about, for this marking, 8% to 10%.
Okay. So, the marketing looked like it took pretty nice jump from Q1 to Q2 if you will. What how should we be modelling that going forward and what drove that?
So, we've added some resources on the advertising sales front. I would say that sort of going forward from a sales and marketing perspective, I wouldn’t expect any significant additional increases relative to Q1.
To Q1 or Q2?
I'm sorry, Q2.
Okay. Okay, thank you.
Thank you. Our next question comes from the line of Stan Meyers with Piper Jaffray. Your question please.
Thank you, guys. So, I have one question for Dave or Josh and one for Mike. Dave, Dave or Josh, just one kind of a minute bit in to your trends and revenue per aircraft. First on the installs, I don’t know if my calculations are correct, your equipment revenue per aircraft was around $400,000 in the quarter, lesser than Q1 and 213 in Q2. Maybe you can provide some color there, why there is such a difference. And then given all the new incremental services that as such the EFB. I was wondering if you can find this because the recurring revenue perk of trends over the past few quarters. And then for Mike, I guess your guidance is very much backhand loaded in north of 65%. If you can provide color, what would be the main drivers in the second half on the margin side? Thanks.
First of all for equipment revenue per aircraft, I mean it should have, it's going to fluctuate from quarter-to-quarter based on a number of factors. One is the number of aircraft that are being sort of sold under deals where the customer pays for the equipment relative to where we finance part of it. I'll let Mike speak a part of it as well.
That's part of it. The other part of it is Nav arrow and he's electronic flight bag, they're not in our ending install count. If you're taking the peer number, it's not going to come out, that's something that's on average going to make sense.
Yes, so our equipment revenue now is a combination of a connectivity equipment as well as our Nav arrow inflight or electronic fly bay equipment. In terms of guidance, that to that business had traditionally been skewed a bit towards the back two quarters of the year. We gave guidance for the combined company, if we hadn’t have had EMC in the number, just to be clear, we simply would have reiterated our prior guidance for the year. So, we see ourselves on track.
All right. Thanks guys.
Thank you. Our next question comes from the line of Jason Bazinet with Citi. Your question please.
Thanks so much. I just had a question on the CapEx guidance. I think it moved up about 10 million to 20 million based on the range as you provided for five months of EMC. And that implies slightly more CapEx in that business than I would have thought. It we were sort of modelling at similar CapEx to revenue ratio as your connectivity business. So, that is that sort of one time in nature or would you describe the capital intensity of this business is just structurally higher than your connectivity business over the long term. Thanks.
Yes. So, we describe to that. I would say the capital intensity is marginally more in terms of that what ours has traditionally been. There is a bit more of the supplier furnishing the equipment and then collecting sort of revenue based on revenue shares or other mechanisms. But it's a little bit more equipment funding upfront. But given the timing of some new deals that EMC has won, really in the first half of the year. There is a bit more capital intensity in the EMC business in Q3 and Q4, then there typically would be. That's good news because those are directly related to three or four large contracts that were won, which will become revenue generating late fourth quarter into the first quarter of next year.
Okay. I think I understood that. And then in terms of it, in terms of the time into, of course you mentioned five months you have this under your belt. Did it close exactly on August 1 or is it there?
It closed like July 27th.
Okay, thank you. All right, thank you.
Thank you. Our next question comes from the line of Matt Blazei with Lake Street Capital Markets. Your question please.
All right, guys. A question for you. Your guidance for the year is 5.5 to 5.79. I think a $35 million spread. That's a big number in the next five months. Can you give me the variables that might be playing into that?
We just acquired the EMC business. We're fairly confident in the numbers, we wanted to keep the range broad until we had a little bit more time under your belt with EMC. The range is essentially as broad as it spends since we started forecasting for the year. With third quarter results, we will tighten up the range.
And you expect your adjusted EBITDA margin with the acquisition to stay in line with sort of the previous regimes sort of a margin profile?
I would say our adjusted EBITDA margin should average up a bit.
Okay. And one last question. Is the Maritime business seasonal in any way or is it just, I know they do about $200 million in revenues but is it a 25 across or is it more in the summer or does it work?
There is a bit of seasonality to it. Really it sort of transitions through the year between the Mediterranean and the Caribbean. So, there is some seasonal element, I would say it's fairly flat but there is a bit of seasonality to it. The seasonal trends aren’t huge though.
Okay. All right, thank you guys.
Thank you. We have follow-up questions on the line of Dick Ryan with Dougherty. Your questions please.
Sure, thanks. Say Davis, I think Mike mentioned 736 installations at the end of Q1, you said 750 now. Just even kind of considering a 30 for the quarter, how broad have those installations been and then that would indicate again another 14 this month?
When you say broad, what do you mean?
I mean across how many different airlines?
Those installations are across one, two, three, four, five airlines.
Okay. And so that would be 14 in the month of July?
Approximately. I mean, we said approximately 750. So, between June 30 and today, is --.
And how long is the Avianca contract?
Yes. We haven’t disclosed sort of the final terms to it. Yes, but we will, but it is a long term exclusive deal.
Okay. Okay, thanks Dave.
Thank you. There are no further questions in queue. So, I would like to hand the call back over to Dave Davis, Chief Executive Officer for closing comments and remarks.
Okay, great, thanks. As I said we're very excited about this acquisition. There's going to be a lot more to come at future discussions. We had a great quarter and we are excited to move forward. So, thanks everyone for joining.
Ladies and gentlemen, that concludes today's program. And you may now all disconnect. Everybody have a wonderful day.
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