$MTN Vail Resorts Q2 2025 Earnings Conference Call

Good afternoon everyone and welcome to the Vail Resorts fiscal second quarter 2025 earnings conference call. Just a reminder, today's call is being recorded. Currently, all callers have been placed in a listen-only mode, and following management's prepared remarks, the call will be opened up for your questions. If you would like to ask a question at that time, please press star one on your telephone keypad. If you need to remove yourself from the queue, please press star two. To get to as many questions as time permits, we ask that you please limit yourself to one question and one follow-up. Lastly, if you should need any operator assistance during the call today, please press star zero. With that, I'll turn things over to Kirsten Lynch, Chief Executive Officer of Vail Resorts. Please go ahead, ma'am.

Thanks, Kirsten, and good afternoon everyone. As Kirsten mentioned, this quarter's results were driven by the benefit of improved conditions partially offset by the expected continued industry demand normalization and the shift in destination guest visitation to the spring. Net income attributable to Vail Resorts was $45.56 per diluted share for the second quarter of fiscal 2025, compared to net income attributable to Vail Resorts of $29.76 per diluted share in the same period in the prior year. Resort Reported EBITDA was $459.9 million, including $1 million of one-time costs related to the previously announced two-year resource efficiency transformation plan and $0.1 million of acquisition and integration related expenses. This compares to Resort Reported EBITDA of $425 million in the same period in the prior year, which included $2.1 million of acquisition related expenses. Turning to our season-to-date metrics, the reported season ski season metrics are for the period from the beginning of the ski season through Sunday, March 2nd, 2025, and compared to the prior year period through March 3rd, 2024, and are for the North American destination mountain resorts and regional ski areas, excluding the results of Australian and European resorts in both periods. The data mentioned in this release is interim period data and is subject to fiscal quarter end review and adjustments. Season-to-date total skier visits were down 2.5% compared to the fiscal year 2024 season-to-date period. Season-to-date total lift ticket revenue, including an allocated portion of season pass revenue for each applicable period, was up 4.1% compared to the fiscal year 2024 season-to-date period. For our ancillary business results, season-to-date ski school revenue was up 3%, dining revenue was up 3.1%, and combined retail and rental revenue for North American resort and ski area locations was down 2.9% compared to the prior year period. Similar to the drivers in the second quarter, season-to-date results through March 2nd, 2025 reflect strong local visitation from the improved conditions early season, with destination visitation impacted by the industry demand normalization and an expected shift in destination guest visitation to the spring. Spend per destination guest visit was strong across the company's ski school and dining businesses, with overall performance reflecting the higher mix of local visitation during the period. Now turning to our outlook for fiscal 2025, excluding a $7 million negative impact from the change in foreign currency rates, the company's Resort Reported EBITDA guidance midpoint for fiscal 2025 is unchanged from the original guidance provided on September 26, 2024. For the remainder of the season, the company is expecting improved performance compared to the season-to-date period, including a continued shift in destination visitation patterns to later in the ski season. This is based on a significant amount of pre-committed guests, our current lodging booking trends, and historical guest behavior patterns. The company now expects net income attributable to Vail Resorts for fiscal 2025 to be between $257 million and $339 million. The company expects Resort Reported EBITDA for the fiscal 2025 period to be between $841 million and $877 million, consistent with the original fiscal 2025 guidance issued on September 26, 2024. The updated guidance includes an estimated $15 million in one-time costs related to the multi-year resource efficiency transformation plan and an estimated $1 million of acquisition and integration related expenses specific to Crans Montana. In addition, compared to the original guidance, the updated guidance includes an estimated $7 million impact from foreign exchange rates. At the midpoint, the guidance implies an estimated Resort EBITDA margin for fiscal 2025 to be approximately 28.8%, or 29.3% before the one-time costs related to the resource efficiency transformation plan. The updated guidance also assumes a continuation of the current economic environment, industry normalization to pre-COVID guest behavior, and normal weather conditions for the remainder of the 2024-2025 North American and European ski season and the 2025 Australian ski season. In addition, the updated guidance reflects the foreign currency exchange rate volatility as compared to the original assumptions. The updated guidance assumes a currency rate as of March 7th, 2025, including an exchange rate of 70 cents between the Canadian dollar and US dollar related to the operations of Whistler Blackcomb in Canada, an exchange rate of 63 cents between the Australian dollar and the US dollar related to the operations of Perisher, Falls Creek, and Hotham in Australia, and an exchange rate of $1.13 between the Swiss franc and the US dollar related to the operations of Andermatt Sedun and Crans Montana in Switzerland. It does not include any potential impacts related to future fluctuations in foreign currency exchange rates, which may be impacted by tariffs, trade disputes, or other factors. As of January 31st, 2025, the company's total liquidity, measured by total cash plus revolver availability and delayed draw term loan availability, was approximately $1.7 billion. This includes $488 million of cash on hand, $59 million of US revolver availability, $450 million of US delayed draw term loan availability under the Vail Holdings credit agreement, and $24 million of revolver availability under the Whistler credit agreement. On January 27th, 2025, the company completed an amendment of its Vail Holdings credit agreement, which increased the US revolver by an incremental $100 million to $600 million and provided an incremental $450 million term loan facility in the form of a delayed draw term loan, which the company can draw upon at any time at its option until January 2026, when any unused amount of the delayed draw term loans will expire. Additionally, on January 30th, 2025, the company repurchased approximately $50 million of its 0% convertible senior notes for an aggregate cash repurchase amount of approximately $48 million, representing a 4% discount to par value. Following the closing of these repurchases, the company has $525 million of 0% convertible senior notes outstanding, which mature on January 1st, 2026. Proceeds from any borrowings on the incremental term loan facility and the increased revolver credit loan commitment, both of which are currently undrawn, are available to be used to refinance the company's 0% convertible senior notes or for other general corporate purposes until the convertible notes mature or are otherwise refinanced or repurchased. The company will continue to benefit from the zero interest coupon. Overall, the company continues to have a strong balance sheet. As of January 31st, 2025, the company's net debt was 2.5 times its trailing 12 months total reported EBITDA. The company declared a quarterly cash dividend on Vail Resorts common stock of $2.22 per share. The dividend will be payable on April 10th, 2025 to shareholders of record as of March 27th, 2025. In addition, the company repurchased approximately 0.1 million shares during the quarter at an average price of approximately $196 per share for a total of $20 million. The company has 1.5 million shares remaining under its authorization for share repurchases. We will continue to be disciplined stewards of our shareholders' capital, prioritizing investments in our guest and our employee experience, high-return capital projects, strategic acquisition opportunities, and returning capital to our shareholders. The company has a strong balance sheet and remains focused on returning capital to shareholders while always prioritizing the long-term value of our shares. Now I'll turn the call back to Kirsten.

Thank you very much, Miss Lynch. Ladies and gentlemen, at this time, if you do have any questions, please press star one. You can remove yourself from the queue by pressing star two. Again, we ask that you please limit yourself to one question and one follow-up. We'll go first this afternoon to Sean Kelly of Bank of America.

Hi, good afternoon. Thanks for taking my questions. Kirsten, Angela, can we just start with the core conditions on the ground? Obviously, if we look at the season-to-date metrics provided, it looks like visits actually slowed a little bit in North America from what was provided at the early season update. But you've talked a lot about things improving from here for the balance. Could you just walk us through whether it's calendar and timing of spring breaks? We know Easter falls quite late. What kind of improvement do you need to see? Should we see it more on the visitation side or more on the mix side? Just maybe help level set expectations from here and maybe a little bit of color about what you saw in February to help us get a sense of how much things need to improve to hit the numbers from here. Thanks.

Thanks, Sean. Thanks for the questions. First, I'll talk about conditions right now. When we look at our resorts, we feel good about the conditions that we have right now. I would say we have a mix. We have some resorts that are right at historical normal snowpack, some that are slightly below, and some that are slightly above. But overall, I would say we are in what we would consider to be the range of historically normal conditions. Regarding Q2 versus the season-to-date metrics, which included February, our visitation at our North American resorts was slightly above prior year level, so it benefited from the improved conditions, offset a little bit by, as we talked about at the beginning of our fiscal year, the continued industry demand normalization and some shift that we're seeing in guest behavior into the spring vacation timing for destination guests. So Q2 visitation was above prior year. When you include February, we did see February visitation contracted versus prior year, which we expected. December and January were easier year-over-year comparisons given the significant conditions impact that we had last year, so February was a little bit more challenging. And of course, we do see that industry demand normalization. When we look forward to spring, there are a couple of things that we're looking at. That is really tied to we think our conditions are in good shape. Our local visitation has been where we expected it to be. It is really that we are looking at the indicators for destination guest visitation. There are a couple of different indicators that we're looking at. One is the significant base of pre-committed guests we have, which are passholders. So we can look at our destination passholders and we can see who has shown up, who has not shown up, who has days remaining left on their pass to use. So we factor that into our assumptions for the remainder of the year. We're also looking at lodging booking trends for the spring time period, not just in our owned and operated but also in the market overall where we have our mountain resorts, which factors into the forecast. And then there has been a long-term behavior shift in the ski industry of visits moving more and more into the spring time period, presumably because it's sunny and warmer and bluebird skies and good conditions. So we tend to see guests have a strong desire to come during that time period, and that's been going on for over a decade in the ski industry. So that's factored into the assumptions as well.

Perfect, thank you. And then maybe just as my follow-up, and kind of to zoom out, obviously in the prepared remarks, a bit more color than we've historically gotten as it relates to some of the key constituencies and a little bit of your message out there. Kirsten, you talked about guest satisfaction scores, a little bit about employee satisfaction where you're at with the frontline team members, lift lines. As we zoom out, do you think there's room or the need for a little bit of a bigger pivot as it relates to getting your narrative or telling your side of the story out there? Obviously, there's a lot that happened around Park City, but it dates further than that as we think about employees, the mountain towns, and even the consumer. It feels like with where we're at on social media, can you just help us, very big picture, how are you thinking about that? Are there efforts underway to maybe re-engage some of those core constituencies and tell your side of the story a little differently, a little bit better? Thanks.

Thank you. We'll go next now to Jeff Stanal at Stifel.

Hey, good afternoon. Kirsten, Angela, thanks for taking our questions. Maybe starting out here on some of the more recent demand trends that you've been seeing. We've been hearing that there's some softening in room rates and visitation trends at some of the US resorts that are closer to the Canadian border, just as the consumer up there starts to respond to the proposed tariffs and some of the rhetoric coming out of Washington. I'm just curious if this is something that you have seen recently at any of your resorts on either side of the border. And then, separately, if you could add some color on just how the broader international guest has behaved this season in light of all the FX, the political, and the macro volatility, that would be helpful. Thanks.

Thanks, Jeff. You know, we have been monitoring very closely the visitation trends as well as the lodging and booking trends. I can't say that right now we've seen a very overt or explicit reaction to the tariffs. We will continue to monitor that very closely. I think that our largest international visitation resort is Whistler Blackcomb. And when we look at Whistler Blackcomb, we are seeing it perform similarly to the other resorts in our portfolio where we have strong local visitation. The destination visitation has not been to where we would want it to be. And of course, because they have such a strong international visitation, there is a bit of a longer planning or booking curve associated with that. I think in December, we had called out that the bookings were lagging prior year levels. We have seen the Whistler Blackcomb bookings improve through the season, but they are still lagging our US resort markets, potentially in reaction to the really tough year that they had last year. And we continue to make sure that we're building the awareness of how strong the conditions are there and encourage our international and domestic destination guests to come visit.

That's great. And you do have some destination visitation coming up next week, so hopefully that helps. And then for my follow-up, just turning over to the Epic Pass launch for the upcoming season. It sounds like based on the commentary in the prepared remarks, that base of core destination visitation does seem to be back on track this season. And we'll kind of monitor and see how the remainder of the season plays out, but it does seem to be back to normalized. So my question is, is it your expectation that pass sales in units get back to growth this year? Are there other kind of multi-year headwinds or puts and takes that we should be contemplating just as we think about the trajectory of pass sales from here? Just any thoughts there would be great. Thanks.

Thanks, Jeff. We'll go next now to Megan Clap with Morgan Stanley.

Hi, good evening. Thanks so much. I maybe wanted to ask Sean's first question on visitation just a bit differently. In January, you did say in the release that you expected improved performance compared to the season-to-date period. Obviously, you said February contracted, that was as you expected. But sitting here today, you are still saying you expect improved performance and you didn't change the guide. So putting that together, is it fair to assume that you'd still expect visitation to improve from that down 2.5% today to something positive? I'm just thinking relative to the flattish in January, or has what you're expecting for overall visitation maybe changed a bit and there's something else offsetting, maybe some conservatism, that's allowing you to maintain the guide today? Thanks.

Megan, I'll take that one. So yeah, we did expect that the comparison in February, we knew that's when conditions in the prior year had improved, so we knew that would be a tougher comp, if you will, than the Q2 period. So as we talked about that progression, that's what we were seeing into February. The improvement that we're expecting for the rest of the season is really an improved trend from the trend currently. So that down 2.5%, we're not expecting to turn positive for the full year though. And so we're just saying that this shift in destination behavior that's coming later will improve it from what we've seen currently through the season-to-date period.

Yep, that's perfect. Thank you so much. And then maybe a follow-up on pass sales too. Understanding you'll have a bit more, you just launched them and you'll have more perspective later in the season. But I guess if we just take a step back, you've had Epic Pass, you have a lot of data, you've been selling passes for maybe 15 years at this point, maybe longer than that. And as you think about just some of the recent dynamics, I would just be curious to get your perspective as to how they may impact pass sales given what you've seen historically. And the things I'm referring to are: there clearly does seem to be some heightened concern around the consumer. I think Delta said tonight they're seeing softer demand. And you acknowledge the Park City strike, which had some impact on the guest experience. And then the offsetting is maybe conditions have been relatively strong, so there could be some pent-up demand. So as you look back historically, thinking about all those puts and takes, I'd just be curious whether you have a view on how some of those dynamics might play into pass sales as we head into the selling season in the next couple of months.

Great, thanks so much, Kirsten. Thanks, Megan. Thank you. We go next now to David Katz at Jefferies. Mr. Katz, your line is open. You might be on mute. Hearing no response, we'll move on now to Lauren Vasilescu at BMP Paribas.

Good afternoon, thank you very much for taking my question. Kirsten, I think it was mentioned in the prepared remarks that non-pass revenues increased about 18%, primarily driven by East Coast visitations. I'm curious to know what really drove that growth, if you can unpack that a little bit, and if you saw on the flip side any impact from a negative perspective on the brutally cold weather that we faced over the last several months on the East Coast.

Hi, Lauren, this is Angela. I'll take that one. We did see improved conditions have a really good response at our Eastern US resorts. So we had an increase there of non-pass lift revenue. It was up 17.5%, primarily from East US resorts and of course the pricing that we take across the portfolio. And so we did see them respond to conditions. And yeah, those conditions have some severe events that come and go, and that does happen throughout the season. But that always just usually affects the timing of when those visits happen. And overall, I would say we were set up with a much more typical conditions framework across our Eastern resorts.

Okay, helpful. And then I saw that rental revenues were down about 1%, but dining was up, ski school was up. Can you maybe unpack that a little bit? What's happening there and how should we think about those three line items going forward?

Yeah, when we look at our ancillary businesses, our destination guest spending on ancillary has been strong. The overall flow-through is impacted by the mix that we've been talking about, where we've had a higher mix of local visits versus destination visits, and that impacts it. Rental and retail is performing a little bit differently than some of our ancillary businesses, as you probably noticed. That is impacted by the guest mix toward locals, as those guests are much more likely to own their gear. But also, while our capture among locals has been strong, local guests from a product mix perspective are purchasing different rental packages and products than we would see if the destination mix were higher. And then it's such a competitive business versus our ski school and our restaurants on the mountain. The rental retail business is incredibly competitive, so there's certainly some competitive and pricing dynamics that impact that business as well that makes it look different than some of the other ancillary.

Very helpful. Thank you very much. Thank you. We'll go next now to Patrick Scholes at Truist Securities.

Great, thank you. Good afternoon, everyone. Hi, Patrick. Can I just get an update on your current level of commitment to continuing to pay the dividend? Thank you.

Hi, Patrick. Yes, we do. You know, you've seen us typically re-evaluate our dividend level, and we reaffirmed our dividend level for the quarter, which I think demonstrates our commitment to maintaining that current level. Really, when we look at it, we step back and that's always been our primary method, but we're always considering what are those alternative uses that we could apply for our capital, and that includes looking at the value of our shares. And so we do re-evaluate at every quarter, but we remain committed to the current level. We feel very confident in the level of free cash flow generation of the business, and so I think the dividend shows that commitment and that stability.

Okay, thank you. And secondly, you talked about improving guest satisfaction scores. One area that you called out was improvement in lift lines. Where do you think what areas need work? Let's leave Park City aside. And I did see that Keystone labor reached a contract, so that looks good. But what are some of your pain points that you would like to work on or you are working on and would like to see improved, especially around customer satisfaction? Thank you.

Thanks, Patrick. Thank you. We'll go next now to Chris Ranka at Deutsche Bank.

Hey, good afternoon, Kirsten and Angela. I wanted to ask about long-term structural margins. I know you're guiding resort to just under 29% this year. I know it was into the 30s prior to COVID. What has to happen to get back there? Is it a cost issue? I know you talked a lot about the efficiency plan, so maybe that's most of the answer. But is there anything on pricing or ancillary or just the way you're running business on the mountain that needs to happen to get there? Thanks.

Thanks, Chris, for the question. Yeah, we are this year guiding to 29.3% margin when you take out the one-time cost from the resource transformation. When you actually look at that relative to pre-COVID, it is really in line with where we were in 2019 when you adjust for the acquisitions that have changed the portfolio mix over that time. But we do think from this point forward, there's an ability to increase margins both from the normal operating leverage, from the fact that we do take pricing typically above inflation, and we have strong flow-through of our ancillary business to the bottom line. Those things will help on their own. Added to that is the resource transformation plan that we expect to be at that $100 million level. And when you step back to think of that, that is a significant change in our cost structure to help us scale globally that we'll be at that run rate by the end of the next fiscal year. And so both of those are what we see as margin drivers moving forward.

Okay, very helpful. Thanks, Angela. As a follow-up, there have been a lot of questions about the new pass launch for next year. I know 7% was the pricing. My question is pretty simple: is that based on some kind of algorithm? Can we back into your internal expectations for cost increases, or is that more of a... I'm just trying to get a sense for if you're willing to share any color on the formula behind that, it would be great. Thank you.

Thanks, Chris. Yes, we took price increases pretty consistently across the board, 7% on pass going into next season. And we look at a lot of different things. But what you see us doing pretty consistently over many, many years is looking at what is inflation and pricing above inflation because of the experience we deliver and because of the investments that we make. We also obviously look at our renewal rates by guest type, guest segment, tenure of passholder, and we have pretty extensive price elasticity data on the pass business that we can look at that helps us make decisions. So when you look at the 7%, it's really a combination of all those different factors. But I think ultimately, at a high level, pretty consistent with how you've seen us price over the long term, which is several points above inflation, and looking at inflation, goods inflation, and also services inflation.

Okay, very good. Thanks, Angela. Thanks, Chris. Thank you. We'll go next now to Ben Shen at Mizuho.

Hi, going. Just wanted to touch back on Park City Canyons. Obviously, guests who were impacted received a discount on future passes. Understanding it's early, is there any color regarding retention statistics or success of this program? And then on a gross basis, is there any way to quantify the impact of this year? I know the cost will be allocated to FY 2024-2025. Thanks.

Okay, understood. And then, this was the first real season of Epic Gear. Are there any financial or customer usage statistics you can share to judge the success of the new platform? And then is 2025-2026 still kind of like a beta year or fully rolled out? And then lastly, is there anything you're changing next year based off of what you experienced this year? Thanks.

Thank you. We'll go next now to David Katz at Jefferies.

Hi, everyone. Thanks for taking my questions. I wanted to ask about Europe and sort of how you're progressing there. What kind of traffic you're seeing? What are you seeing from the US? Obviously, the US has become somewhat of a trend as a cost matter with people traveling to Europe. Just some insight there would help, please.

Hi, David. Yeah, as you know, we are excited to have the first year of Crans Montana this year. And so operating the two resorts now in Switzerland, we are starting to get lots of learnings. And yeah, we're really taking this first year and a couple years now in Andermatt as we're learning the market, and we're really trying to understand where we can have some success across the region. I would say for the travel from the US, that has not been the primary part of this thesis. It is a network benefit that we have to give our Epic passholders access to Switzerland, which is incredible. But what we're seeing really is the market itself is very much a market that attracts destination visitation within the Alps and within Europe and from outside of Europe. And so that's really where the growth opportunity that we see long-term within that market. And so it's early for us to be seeing a significant change in behavior from North America to Europe, for instance, or vice versa.

All right. And if I can just follow that up, Kirsten, you talk about the size of the mountain. Patrons tend to also spend less, or at least pay less for lift tickets. Can you just shed some light on any sort of pricing acceptance or resistance or what you're seeing specifically around that part of it?

Thank you. Thank you. We'll go next now to Matthew Boss at JP Morgan.

Great, thanks. So, Kirsten, could you elaborate on real-time and historical demand indicators that you're watching more so to gauge the current health of your core consumer? And then just multi-year, what do you see as a normalized underlying revenue growth rate for the business, maybe after the impact from the destination shifts as well as the impact from normalization?

Thank you. We'll go next now to RP Cerion at UBS.

Hi, thanks for taking my question. I wanted to go back to EBITDA guidance for just one second. You mentioned $7 million of FX impact on EBITDA, so at midpoint, Resort unchanged. But I was wondering if you could give a bit more color on puts and takes for the top end of the range. It seems like that came down more than the FX impact. And then I have a quick follow-up.

Yeah, this is Angela. Yeah, we did take the FX impact of $7 million negative to the midpoint of the range, but that is really the shift from the September guidance. That is the only shift that was reflected on the midpoint. And typically, as we get into March, we do narrow the range. You saw the top end and the bottom end come in proportionate to that new midpoint. And so the puts and takes that can put us at the top end or the bottom end of these ranges are really around those core assumptions that we have for the remainder of the year in terms of this improvement on the destination visitation, this normalization, where we land for the full year on the contraction of the industry and that behavior that we were expecting. And then conditions can obviously play a factor, typically less of a factor as you get this far into the season.

Great, thank you. That's helpful. And then I was wondering, would it be possible to talk more broadly about labor cost pressures? This is a question that we get often. Is it possible to quantify what you were expecting a quarter ago and how those puts and takes have changed in light of some of the labor agreements you've made throughout the quarter? Kind of that incremental pressure on EBITDA this year and, more importantly, sort of run-rating into 2026. Would you say there is a material impact in your outlook as you look at the cost base on a run-rate basis outside of the $100 million of cost savings? Thanks.

No, thank you. No, we would not say there is a material impact from the labor contracts that we have negotiated. We also have made significant strides in terms of how we manage our labor. One thing you probably heard us talking about as an example is workforce management as a tool that is actually a benefit to how we utilize our labor on the mountain and enables us to have strong efficiencies this year. But also, as we look forward with the resource efficiency transformation plan, we believe it has a significant impact on that as well. But the labor union contracts, and just for some context, obviously those teams and those contracts are very, very important to us. The number of labor unions we have is five out of our 37 North American ski patrol teams are unionized, and two out of our 37 North American lift maintenance teams are unionized. So when we look at the decisions that we're making on those labor contracts, we are looking at it in totality across the entire enterprise and the impact it has.

Thank you. That's very helpful. Thank you. Thank you. We'll take our final question this afternoon from Brant Montour at Barclays.

Hello, everybody. Thanks for squeezing me in here. I have a question on the pass prices. Kirsten, you were talking about a 7% increase. When I look at the all-resorts day pass, it looks like it went up well in advance of 7%, something like 25 to 30%. Can you, first of all, am I looking at the wrong thing because that doesn't seem to be consistent with the 7%? But I guess more importantly, is this a tactical shift with regards to day pass prices? Because I think the following question is, I would think that's a pretty elastic pass. When you cut prices in 2021, you saw an incredible increase in units. And so I'm curious if you guys have any concern about elasticity on the downside for demand if you are in fact raising the price of the day passes to that sort of rate. Thanks.

I appreciate that. So then maybe I'll just ask the same question a different way. 7% puts the full Epic Pass at well over $1,000. That's going to be a sort of a record, of course. Obviously, it was below a thousand back in 2021, but you've come a long way since then. Again, same question, because there was a lot of demand elasticity when you cut the price. Are you expecting any sort of elasticity in the other direction?

Perfect. Thanks, everybody. Thanks, Brant. Thank you. And at this time, Miss Lynch, I'd like to turn things back to you for any closing comments.

Thank you, Miss Lynch. Again, ladies and gentlemen, that does conclude today's Vail Resorts fiscal second quarter 2025 earnings conference call and webcast. You may disconnect your line at any time and have a wonderful day. Thanks again, everyone.