Global Crossing Airlines Group (Cboe Canada: JET) Q3 2026 Earnings Call

0:00 Good morning, ladies and gentlemen. Thank you for standing by. Welcome to today's conference call to discuss Global Crossing Airlines financial results for the third quarter of 2026. At this time, all participants are on a listen-only mode. As a reminder, this conference is being recorded. Joining us on the call today are the company's Executive Chairman, Chris Jamroz, President and CFO, Ryan Goepel, SVP, Corporate Controller, Wendy Shapiro, and Investor Relations Advisor, Aaron DeSouza. Please be advised that this conference call will contain statements that are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements.

0:52 These forward looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC. Do not place undue reliance on any forward looking statements which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements. For important risks and assumptions associated with such forward-looking statements, please refer to the company's earnings press release for the third quarter of 2026 and the company's annual report on Form 10-K for the year ended December 31, 2025. The company's presentation also includes certain non-GAAP financial measures, including EBITDA and EBITDAR, as supplemental measures of performance of the business.

1:45 All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You will find reconciliation tables and other important information in the earnings press release for the third quarter of 2026, which is currently available on the company's investor relations section of its website. and now I will turn the call over to the company's executive chairman, Chris Jamroz. Chris, please go ahead. Thank you, operator, and good morning, everyone. GlobalX delivered another strong quarter with revenue up 24% year over year, operating income up fourfold and approximately $9 million in cash flow from operations. The quarter demonstrated the progress we're making in building a more scalable, efficient airline. A larger available fleet, robust passenger demand, and the stronger operating execution helped translate our platform investments into gains in profitability and cash generation.

2:42 More broadly, the quarter reinforced an important point about our flexibility. We have built a platform that lets us deploy aircraft strategically and tactically towards the most attractive opportunities across our sales channels with an emphasis on revenue quality, long-term profitability and building a loyal customer base in our focus markets. During Q3, we deliberately shifted aircraft toward higher-value domestic flying, prioritizing it over certain seasonal contracts and deploying our fleet where it earns the greatest return rather than simply maximizing utilization. That drove stronger revenue per block hour and a more accretive business mix. Demand across our car passenger markets remained robust. supported by a diversified customer base spanning professional and collegiate sports, government, and entertainment.

3:31 In the quarter, major sporting events and high-profile concert tours contributed strongly, underscoring the breadth of our customer base and the demand for our specialized charter services. Our ability to serve these diverse markets remains a meaningful strength of the GlobalX platform. We also improved aircraft availability throughout the quarter as we worked through the concentrated maintenance schedule we discussed last quarter. Our teams have continued to strengthen maintenance planning, improve operational reliability, and invest in systems and people required to support a larger fleet. That work is building a more capable operating platform and giving us greater flexibility to meet customer demand. We also advanced our fleet expansion and modernization program putting two additional Airbus A320 aircraft into revenue service following quarter end and securing younger airframes to support the next phase of growth.

4:25 We see an opportunity to improve the reliability and earnings capacity of our fleet while spreading the infrastructure and fixed costs we've already built across a larger operating base. We believe that's an important driver of long-term operating leverage. Looking ahead, we continue to see meaningful opportunities across our passenger markets. We are committed to becoming the largest and most reliable narrow-body charter airline in North America. We believe our disciplined approach to fleet expansion, robust demand across our core passenger markets, the operational foundations we have established, and our platform's operating leverage position our business to keep growing, meaningfully improve long-term profitability, and create sustainable long-term value for shareholders. With that, I will hand the call over to our President, CFO, Ryan Goepel, to discuss our third quarter operational highlights in greater detail.

5:16 Ryan? Thank you, Chris, and good morning, everyone. Our third quarter results reflected improved aircraft availability, a more favorable mix of flying, and continued strength in our core passenger markets. Following the concentrated maintenance activity in the second quarter, we had more aircraft available to meet customer demand. At the same time, we prioritized flying opportunities with attractive revenues and contract economics, which support stronger operating performance. Operationally, net available aircraft increased 14% year-over-year to 18.1 compared to 15.9 in Q3 last year and 15.3 in the second quarter of this year. We discussed the target of 19 to 20 in Q3, which was affected by the delays in securing regulatory approvals for two of the aircraft we delivered. Those entered service in October.

6:02 In Q4, we expect net available aircraft to average between 20 and 21, driving improved expected results in the final reporting period of 2026. Total block hours including subservice increased 1% to 9,965 compared to 9,901 the prior year quarter. Within that total, charter block hours increased materially to 825 compared to 178 in Q3 2025. ECMI block hours were 8,819 compared to 9,527 a year ago. ECMI represents 88% of total block hours compared to 96% in the prior year quarter. But the more important change is the revenue per hour that the mix generated. In Q3 last year we operated seasonal ACMI contracts that generally provided substantial guaranteed minimum flying hours at lower per hour rates.

6:50 This year we kept our aircraft focused on domestic opportunities and offered strong per hour economics. That transition is why average utilization was about 550 hours per aircraft down from 618 last year. We continue to deploy our aircraft we believe that they can generate the highest and best use rather than simply maximizing total hours flown. From a unit economics perspective, charter revenue per block hour increased approximately 25% to $16,300 compared to $13,000 in Q3 2025. This is indicative of fuel rates that have increased, which helps drive the charter price. ACMI revenue per block hour increased approximately 12% to $6,300 compared to $5,600. We will continue to evaluate each opportunity based on the combination of contracted hours, rates, operating requirements, and the overall economics of flying.

7:40 starting to maintenance. We completed one heavy and 12 non-heavy maintenance events in the third quarter, compared with five heavy and 16 non-heavy maintenance last quarter. Completing much of the concentrated work schedule we discussed in our previous call helped restore aircraft availability. We have three heavy maintenance events or about one per month each scheduled in Q4, which is factored into our net available aircraft outlook. Routine maintenance parts and repairs will continue to reflect our operating fleet size and flying activity and reliability remains a priority as we expand. We also continue building the staffing and operational capability needed to support the additional aircraft. Notably, pilot headcount increased 31% year-over-year to 186, helping along crew resources with fleet expansion. Alongside our maintenance planning, that investment in people is an important part of bringing new aircraft into service and keeping them productive.

8:32 Turning to fleet expansion, two additional Airbus A320 began revenue service in October. Separately, we took delivery of one of three former Spirit Airlines A320 pasture airframes and related engines, which is expected into revenue service in November. The last two spirit airframes are ongoing heavy maintenance, with the timing of their addition to revenue service expected in late 2026, early 2027. These additions expand on our ability to continue to meet the demand across the pasture business. We remain focused on improving the quality of our fleet as we add capacity. The availability of younger Airbus aircraft creates opportunities to modernize our fleet on attractive terms while we carefully consider acquisition and lease economics, maintenance requirements, and expected customer demand. Over time, we believe a more modern, reliable fleet can better support availability and more consistent operating performance.

9:20 Turning to customer demand. Our passenger markets remain strong during this third quarter. We provide flying in support of a major soccer tournament and operated charter services for two high-profile culture tours. Together with our established relationships in collegiate and professional sports, government and other airlines, these assignments demonstrated the breadth of the markets we can serve and the flexibility of our charter platform. Cargo operations continues to be a financial drag as conditions in the broader freight market remain challenging. We have concentrated our cargo activity in Miami and continue to fly selectively where economics make sense to humanize the impact on the overall business. We expect opportunities during the seasonal holiday to peak, but consider cargo not to be a core growth target for our business on a go-forward basis. Looking ahead, we are focused on bringing additional aircraft into revenue service, maintaining reliability and matching available fleet to the growing customer demand.

10:09 We continue to target a fleet of 25 by year-end subject to the timing of conformity work, corrosion mitigation of two aircraft to be delivered, entry into service requirements and operating needs. We will continue to allocate capacity towards the opportunities that offer the strongest economics. With that, I turn the call over to our SVP Corporate Controller, Wendy Shapiro, who will discuss our third quarter financial results in more detail. Thank you, Ryan, and good morning, everyone. Please note that all financial results discussed today are for the three-month period ended September 30th, 2026, and variance commentary is on a year-over-year basis and less stated otherwise. Revenue in the third quarter increased 24% to $71.8 million compared with $58 million in Q3 2025.

10:57 The increase was primarily driven by higher net aircraft availability and greater revenue per block hour across both our charter and ACMI businesses. ACMI revenue increased approximately 4% to $55.2 million compared with $53.2 million in the year-ago quarter. Charter revenue increased materially to $13.5 million compared with $2.3 million in Q3 2025. Total operating expenses increased 19% to $67.7 million compared with $57 million. The increase was driven primarily by a $3.1 million increase in depreciation and amortization expenses from aircraft delivery secured on finance leases, a $2.9 million increase in aircraft fuel, a $2.1 million increase in maintenance materials and repairs and a $1.9 million increase in contracted ground and aviation services.

11:54 Net income attributable to Global X improved to approximately $0.2 million compared with a net loss of $2 million in the prior year quarter. Earnings per basic and diluted share improved to zero cents compared with a loss of three cents per basic and diluted share in the year-ago period. EBITDA increased 36% to 25.7 million, compared with 18.9 million in Q3 2025. EBITDA increased 144% to 10.4 million, compared with 4.3 million in the year-ago period. Cash flow provided by operating activities increased materially to 9 million, compared with 0.6 million in Q3 2025.

12:39 Turning to our liquidity. We ended the third quarter with approximately $14.3 million in cash and restricted cash compared to $20.5 million as of December 31st, 2025. Now, I will turn the call back over to Ryan for closing remarks. Thank you, Wendy. The third quarter was the strongest in Global X history, showing a business that has turned the corner. We set third quarter records for revenue, operating income, EBITDA, and EBITDA. Revenue grew 24% to $71.8 million. more than double where we were in the third quarter of 2022. But the real story is how much more of that revenue we kept. Operating income quadrupled to $4 million, EBITDA more than doubled to $10.4 million, and EBITDA margin doubled to 14.5%. Two years ago in the third quarter of 2024, we lost $2.5 million at the operating line, and EBITDA was negative.

13:31 This quarter, EBITDA was $11 million higher. That performance turned into cash. Operating cash flow was $9 million in the quarter, up from $0.6 million a year ago, and we delivered it while bringing on five new aircraft into the fleet and growing our pilot group by 31%. For the first nine months, operating income is up more than 50% to $11.5 million. We are not done, but the trajectory is clear. This concludes our prepared remarks. I'd now like to open the call for Q&A. Aaron, over to you. Thank you, Chris, Ryan, and Wendy. Thank you, everyone, for participating in the conference call. As we gather the queue for live questions, we'd like to first address a few of the questions that have come in via email. The first question is related to aircraft availability in Q4 operating outlook.

14:18 Net aircraft available recovered meaningfully for the second quarter and two additional A320s entered service in October. What needs to happen operationally for that added capacity to translate into stronger results? I'll take that one, thanks for the question. The important distinction is between having aircraft in the fleet and having them able to generate revenue. As we move past the concentration of heavy maintenance in Q2, net available aircraft increased to 18.1 in Q3 from 15.3 in Q2, giving us more flexibility to match capacity with customer requirements. The two aircraft that were delayed by regulatory approvals in Q3 began revenue service in October. bringing aircraft into revenue requires more than delivery. It requires complete approvals, maintenance planning, qualified crews, and a schedule that puts them to work efficiently. We expect 20 to 21 available net aircraft in Q4, even with the three scheduled heavy maintenance events built into that outlook.

15:10 Our focus is to translate that greater availability into productive flying while maintaining operational reliability and spreading certain existing operating costs over a larger operating base. Thank you, Ryan. The next question is related to aircraft deployment, utilization, and revenue quality. So total block hours were flat and utilization declined year over year, yet revenue and EBITDA increased substantially. How should investors assess aircraft productivity when the number of hours flown does not tell the whole story? Yeah, so we don't manage the business to maximize block hours in isolation. We evaluate the guaranteed hours, rate, operating environment, overall contribution of each opportunity. and that can lead us to favor contracts with fewer hours when the economics are more attractive. Last year we had seasonal ACMI flying with substantial minimum hour commitments at lower hourly rates. This year we prioritized higher value domestic opportunities, so utilization was lower. The charter revenue per block hour increased about 25% and ACMI revenue per block hour increased about 12%.

16:10 But does that mean the higher rates automatically produce higher margin? As aircraft, positioning, crews, maintenance and the full contract requirements all still matter. The takeaway is that utilization and block hours need to be considered alongside revenue quality, aircraft availability, and profitability. We are focused on deploying aircraft where we believe they can produce the best overall return. Thank you. The next question is related to customer diversity and passenger demand. This quarter included major sporting events and concert tour flying alongside your established sports, government, and airline relationships. How does serving such a broad range of customers help you compete for business and manage demand throughout the year? I'll take that one. Thank you. You know, one of the strengths of that platform is the ability to serve customers whose flying needs can be quite diverse.

17:01 Sports teams require dependable, highly coordinated schedules, while entertainment, government, and airline customers may have quite different timing of routine and operating requirements. So these markets are not necessarily at the busiest at the same time. So having multiple channels gives our team more ways to place available aircraft and evaluate opportunities as demand shifts throughout the year. At the same time, because we are still well short of our target fleet size, one large revenue event basically means we have to forego other customer opportunities. and execution is particularly important in these segments. It's all about the KPIs, reliability, on-time performance, turnaround times and service quality. Consistently delivering them for customers is central to maintaining these relationships and being considered for future opportunities.

17:50 Our objective is to deepen those relationships while being selective on pricing and contract terms and that combination of flexibility and discipline is what we believe differentiates us from the other charter cohorts. Thank you, Chris. Next question is related to fleet modernization and discipline expansion. So you've continued to add younger A320 aircraft while evaluating the economics of the existing fleet. Beyond increasing the aircraft count, what does modernization enable GlobalX to do differently over time? Okay, I'll take that one too. So we're not looking just to have aircraft simply for the sake of growing the fleet. While customer demand for FCs are existing and even near-term addition to capacity, we still want aircraft that fit the specific needs of our customer constituencies and can be introduced in contract terms that would make sense after considering the acquisition or lease cost, maintenance requirements, staffing, expected type of and frequency of flying.

18:52 The A320 aircraft family provides a very good flexibility across the passenger markets we serve and access to younger airframes creates an opportunity to improve the fleet overall quality and reliability while over time reducing the maintenance costs and frequency of AOG events. And the two A320s that entered revenue service in October add productive capacity today. And we have also taken delivery of the first of the three former Spirit A320 airframes and we see favorable market conditions on a go-forward basis and want to be in a position to capitalize on them in future months. Importantly, modernizing the fleet is also about improving maintenance predictability, operation flexibility and our ability to effectively reliably serve customer across different markets.

19:42 Thanks, Chris. Next question is related to scaling the platform and operating leverage. So GlobalX has invested in pilots, maintenance capabilities, and operating systems to support a larger airline. What parts of that platform should become more efficient as the revenue-producing fleet grows, and where will spending need to increase? I'll take that one. Over the past several years, we've added capacity capabilities that larger operation requires, including crew resources, maintenance planning, scheduling, and the processes needed to keep aircraft in service. Those investments were necessary before we could fully benefit from the next phase of fleet growth. Certain infrastructure and administrative costs do not increase proportionally as revenue rises. That is where we see an opportunity for operating leverage as additional aircraft are placed in production, productive service.

20:32 At the same time, crew maintenance and aircraft financing releases and other operating requirements rise as the fleet expands. And we still need to be disciplined on contract economics and keep aircraft available. The Q3 improvement in operating income and EBITDA to illustrate the progress we're making in the operating leverage inherent into our platform. To put specific numbers on it, year to date with our current revenue mix, before ownership cost, about 40 cents of each new dollar of revenue translates into increased EBITDA, about 17 to 22 cents reaches operating income. Thanks, Ryan. And last question is, what is the greatest factor limiting your revenue growth? Is it capital, people, management, I'd say what we do is pretty complicated. I think probably the biggest factor right now is probably getting the right people in the right place at the right volume.

21:24 I think the availability of aircraft is pronounced now, which was, I think, a bigger constraint. I think when you look at capital, we're generating enough free cash that we've been able to reinvest it into the growth and hit the targets that we've been expecting. The next part is being able to execute on the work, right? What we're doing is hard. The volume we're flying is, you know, we're one of the largest and busiest charter operations in the country, if not the world. And we've done it in a very, very short period of time. So I think as I look to the constraint and what keeps you up at night is making sure you have the right people with the right tools and resources to execute on the job that we've taken on ourselves. Thank you, Ryan and Chris. Dr. Hoosier pre-submitted questions.

22:09 I'd now like to pass it over to the operator to open the call up for live Q&A. Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. And our first question will come from Barry Sine with Litchfield Hills Research. Hey, good morning. Thanks for taking my call. So my first question is around fuel costs.

22:55 I know on your business model, you largely pass those through, so there's little impact. But it seems like there's a pretty significant indirect impact. For example, I don't think you'd be able to pick up those Spirit jets without what happened in fuel prices. So you can talk about how fuel is impacting the industry and then directly or indirectly how that's impacting your business. So you're correct on the indirect impact. So when we see charter revenue up 25%, a big chunk of that charter revenue includes fuel, which is a pass-through. So that does not impact profit per se, but it does impact revenue. And so that's an important factor.

23:41 If you listen to all calls this earnings season from all the airlines across the board, fuel has impacted the operations of every airline more so than us because again, ours is a pass-through to the point where our operating income is I think fifth in the country, top 10 in the world on operating income margin just because of our business model being different. What that does is it creates opportunity, right? In so much that fuel prices are up and profit is down, airlines might not be growing as much, or if they're handing aircraft back, the opportunity for us is it gives more aircraft available in the market. The lease terms in which we can acquire aircraft are significantly lower, and it's not unlike during COVID. COVID was a once-in-a-lifetime opportunity, and it feels like we're in a second once-in-a-lifetime opportunity through this war. And the fuel prices that it's come with, that has made aircraft available.

24:36 at terms that are more favorable. So we've been taking advantage of it. Obviously with the three aircraft we have coming, the multiple aircraft we're considering going forward, we have a real opportunity to, as I said on the Q2 call, reduce the age of our fleet, which would hopefully lead to reduced maintenance and increased reliability across the company. So fuel is by far the largest impact. It can't be avoided. I know a lot of airlines have been able to increase their revenue to offset it, but not enough to offset the losses. So I think from that perspective, in this current environment, we see it as an opportunity more so than a threat. Okay, that's great. And you mentioned the impact in the newer fleet on maintenance. I believe you have pretty good visibility on what those maintenance requirements are. You talked about 4Q already. If we could look at the 2027, what are the maintenance requirements they're going to take planes out of service for a period during 2027?

25:38 So, yeah, we've got a three-year plan that's put in there. 2020, so the biggest thing we have is what we call our two-year checks, and they happen every two years. 2027 is a relatively light maintenance year as of right now, whereas 2028 is a really heavy maintenance year. We're looking at what we can do to spread it out better so we don't have a bump in 28 and we could push more of it into 27. But as of right now in the first half of 27, there's not much on the heavy maintenance scheduled side, which again is an opportunity as we go to execute on what is our busiest, you know, Q4 and Q1 will be some of our busiest work with the college sports season ramping up. And so we actually have a five-year plan in place with the heavy maintenance and we're trying to see what we can do to spread it out so it doesn't get as lumpy as what we had in 26.

26:30 Okay. And my last question, I know cargo is a relatively minor part of your business, but it is still a bit of a drag on the results. Could you guys talk about what you're seeing in terms of the cargo demand environment for narrowbody cargo and, you know, how that's impacting your business? Any improvement seen or is the market still not that great? Well, I'd say you'll see improvement in Q4 just because that's peak season. The other thing we've really tried to do is focus our efforts on the Miami base and take advantage of the opportunities. Miami is one of the largest cargo hubs in the world, which creates a lot of opportunities to use the aircraft to service the Central, South, and the Caribbean, which is really what we're trying to focus our efforts on versus trying to chase stuff all around the world, which has its own risks and inefficiencies.

27:24 We saw the hours pick up in Q3. We've picked up a couple customers. It's by no means the core part of our business. As with every aircraft, passenger aircraft we add, it becomes less important to the business. But I don't think we've seen a long-term change in the capacity. There's still too many planes. too many aircraft servicing, too little cost customers. But we do see Q4 will be peak, the peak is peak. And that's usually really good opportunities for cargo. And then 27 don't see any material improvement at this stage. And what does the cargo fleet look like currently? So we have four aircraft on lease, one parked with the engines have been removed and are being used in the passenger fleet. And three others are operating out of Miami.

28:11 Those are my questions. Thank you very much. Thanks, Barry. And our next question will come from Ian McQueen with Bancroft Capital. Good morning, guys. Thanks for taking my calls. I have three questions. I guess to follow up on Barry, with respect to other scheduled carriers either increasing their ticket prices or trimming flight schedules, do you think that that gives you new opportunities to grow your customer base meaning is there opportunity to replace flights that are disappearing? That's the first one. Yeah, so I think where we're seeing it is in college sports. The biggest competitor for us in college sports travel is commercial.

28:59 The teams have to decide, do I fly on American or United or do they take the charter? As the price of the tickets go up, the delta between the costs shrinks. The hotel offset we provide, for example, most of our charter teams They can avoid a night in the hotel and they can get home faster. That convenience starts to become more important. And where we're going to probably see it is there's two philosophies. Some teams will book the whole season and just pay for the whole season and done. Other ones will pick and choose and maybe do a little bit more last minute. And I think the last minute price sticker shock and the lack of capacity will surprise many. So I think we see a lot of opportunity for last minute flights. And last minute is like within two weeks kind of stuff, not like the day of.

29:44 I think we've definitely seen it in our booking curve for college sports, which was way ahead of last year. Fantastic. Glad to hear. Next question. I'm sure this is a timing thing, but your aircraft rent increased by almost $3 million, or about 23%, quarter over quarter, yet you did not have any new aircraft entering revenue service in Q3. They came in in October. So I'm sure there's a timing issue, but can you go into a little bit of detail on why the increase was so significant? So when you take delivery of an aircraft, you start paying rent on it. You don't start making money on it until it goes into revenue service. So those are the two big hurdles. So we took delivery of three aircraft in Q3, so we were paying rent on it while they weren't generating revenue.

30:31 So part of it is that, and I think it's about $1.5 million of it would be attributable to that. The other side is supplemental rent with the block hours going up. You know, we do pay per hour. and the supplemental rent basis. So you'll see a kind of a correlation between the block hours operated and the rent paid. The other thing I was wondering about, there was a plane that you had actually acquired which you had decided not to put into service. Did that have any effect on that at all or how will we see that in your financials? I believe that one's in the, it's in, you'll see that through depreciation and amortization because that was a purchase. So you will see that in the operating income. And so we're just effectively paying off that note. And then we're looking at different options on what we want to do with that aircraft, whether we part it out, whether we want to sell it, whether we want to convert it, like package it with an airline to go with a lessor to say, hey, take this and we'll take one of your other ones. So that's just the cost you're seeing probably in the cash and in the financial section.

31:32 OK, OK, perfect. Okay, last question, one that we used to talk about quite a bit but haven't breached on for a while. Obviously, the business is getting a lot stronger. Congratulations, I think that's great. There's always challenges to deal with, but one of the big challenges from a share price perspective is the exchange. Can you give us some detail on how you think about an up list to a more appropriate exchange and what might be required in order to do that? If I may, I'll take this one. Sure. I would kindly ask you to kind of bear with us for the time being. This is a, you know, front and center for us because, you know, the business has outperformed dramatically, I think, our expectations and every single reported here is better and we just don't see the bang for our dollar and the bang for our efforts. And this is the quarter when we're spending a lot of time I'm strategizing and we will be communicating openly I think over the next, over the course of this order, we're gonna be sharing with what our strategic plan will entail in the short term, midterm.

32:47 That sounds great, Chris. There's definitely a disconnect between operations and share price. So the sooner... Remember, we put $10 million in 2021 and $1.35. So you don't have a more frustrated person than yours truly. So that's, you know, and the business is incredibly transformed and the quality of the management team and the results are just completely not aligned with what we're seeing. So we are very focused on that right now. Agreed. That's a very good point. Thank you very much. That's the end of my questions. Appreciate it. And thank you, ladies and gentlemen. This concludes today's conference call.

33:33 You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.