Q1 2020 Earnings Call
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[music].
Good morning, and welcome to the Pennantpark floating rate Capital's first fiscal quarter 2020 earnings Conference call. Today's conference is being recorded at this time all participants have been placed in a listen only mode. The call will be open for question and answer session. Following the speakers remarks, if you'd like to ask a question at that time simply press star one.
Your telephone keypad, if you would like to withdraw your question. Please press star to on your telephone keypad and it's now my pleasure to turn the call over to Mr. Art, Penn Chairman and Chief Executive Officer of Pennantpark floating rate capital. Mr. Fun, you may begin your conference.
Thank you good morning, everyone I'd like to.
I'm here to Pennantpark floating rate Capital's first fiscal quarter 2020 earnings conference call I'm joined today by different our Chief Financial Officer.
Please start off by disclosing some general conference call information and included discussion about forward looking statements. So youre I'd like to remind everyone on today's call is being recorded please note.
This call. These are already are kind of pork floating rate capital end up any unauthorized rebroadcast of this call. If any for is strictly prohibited audio replay older coal will be available or using the telephone numbers and being provided in our earnings press release.
On our website.
Oh article we will then turn to the customer rate.
Harbor disclosure in our press release regarding forward looking information today's conference call May also include forward looking statements and projections and we asked if you refer to our most recent filings with accuracy for important factors that could cause actual results could differ materially from these projections.
We do not undertake to update our forward looking.
Oh, that's required portable.
I think only the or later SEC filings. Please visit our website, that's kinda park dot com or cost that to want to identify 1000.
At this time I'd like to turn the call back for Chairman and Chief Executive Officer Mark.
Thanks, Steve I'm going to spend a few minutes discussing.
Highlights followed by discussion of the portfolio investment activity the financials and then open up for Q1 night.
We were active in the quarter ended December 31st we invested shortened 39 million and primarily first lien senior secured assets with an average yield of 8.2%.
And bark senior secured loan fund or.
SSL continued to perform well as of December 31st PSS, L. day, 493 million diversified pool, a 49 names with an average yield of 7.4%.
We had only one non accrual, which represents only 0.4% up the cost and zero percent of the market value of the portfolio.
Yep.
Over the past 12 months about 75% of our investments were in existing borrowers.
These were generally cases, where we had an option to continue to financing existing borrower or could opt out.
So was this is this incumbency is the best to both worlds staying with solid credits with reduced competition.
We're choosing to exit.
A market where investors are asking about differentiation among middle market direct lenders the value of incumbency cannot be overstated.
With a harder to 135 borrowers and our overall platform, we are driving substantial benefits of incumbency.
Our growing team capital.
This is any comments you put us in a position to be both active and selective.
Today, we're only investing in approximately 4% of the opportunities that we are shown.
Net investment income was 29 cents per share due to our activity level and the maturation of PSS sale. We're pleased that our current run rate net investment income covers our.
Evident.
Earning stream should have a nice tailwind based on a gradual increase in our debt to equity ratio, while still maintaining a prudent debt profile.
As of last fiscal year, or spillover was 31 cents per share.
As of December 31st our debt to equity ratio was 1.4 times.
We are targeting a debt there.
Equity ratio of 1.4 to 1.7 times, we will carefully continue to invest and optimize our leverage over time.
A careful and prudent increasing leverage against a primarily first lien portfolio should lead to higher earnings.
Our primary business a financing middle market financial sponsors has remained.
Cost, we have relationships with about 400 private equity sponsors across the country and elsewhere and we managed from our offices in New York, Los Angeles, Chicago in Houston.
Done business with about 190 sponsors to date.
Due to the why funnel deal for the we receive relative to the size of our vehicles, we can be extremely selective in our investments.
We made primarily we remain primarily focused on long term value and making investments that will perform well over several years and can withstand changing business cycles.
Our focus continues to be on competition structures that are more defensive have reasonable leverage covenant protections and attractive returns.
We continue to be a first call for middle market.
Financial sponsors management teams and intermediaries, who want consistent credible capital as an independent provider free of conflicts or affiliations, where our trusted financing partner for our clients.
As a result of our focus on high quality companies seniority in the capital structure floating rate assets and continuing.
And our portfolio is constructed to withstand market and economic volatility.
The cash interest coverage ratio the amount by which EBITDAR cash flow exceeds cash interest expense continued to be healthy 2.4 times. This provides significant cushion to support stable investment income.
Additionally at cost the ratio of 50.
EBITDA on the overall portfolio was 4.2 times another indication of prudent risk.
And our core market of companies with 15 million to 50 million of EBITDA. Our capital is generally important to the borrowers and sponsors we're still seeing attractive restored we are receiving covenants, which helped protect our capital.
Our credit.
Quality since inception, nearly nine years ago has been excellent out of 373 companies in which we have invested since inception, we have experienced only nine non accruals.
Since inception, Vfl team has invested over $3.5 billion at an average yield of 8.1%.
This compares to an annualized loss ratio, including.
Realized and unrealized losses of approximately nine basis points annually.
With regard to the economy in the credit cycle at this point, our underlying portfolio indicate a strong U.S. economy and no sign of a recession.
From an experience standpoint, we're one of the few middle market direct lenders, who was in business prior to the global financial crisis.
And have a strong underwriting track record during that time.
Although pflp was not in existence back then pennantpark as an organization wise and at that time, we focused primarily on investing in subordinated to mezzanine debt.
Prior to the onset of global financial crisis in September 2008, we initiated investments, which ultimately aggregated.
480 million again, primarily and subordinated debt.
During the recession, the weighted average EBITDA of those underlying portfolio companies declined by 7.2% at the trough for the recession.
This compares to the average EBITDA decline of the Bloomberg North American high yield index of down 42%.
As a result of the.
Our on those underlying investments was 8% even though they were made prior to the financial crisis and recession. We are proud of this downside case track record on primarily subordinated debt.
In terms of new investments, we had another active quarter investing in attractive risk adjusted returns.
Our activity was driven by mixture of M&A deals growth.
Financings and refinancings.
Actually all these investments we've known these particular companies for a while have studied the industries or have a strong relationship with the sponsor let's walk through some of the highlights.
Purchased 5 million Drs Holdings, Dr. Scholls first lien term loan and committed about $1 million revolver Dr. Scholls is a leading brand.
In the foot care category in North America, including in soles skin treatments and orthotics yellow what is the sponsor.
DCM as a provider of a broad range of tools and consumables for electrical harsh environmental applications under highly regarded brands. We purchased 5.1 million of VCM industry's first lien term loan.
There was about $1 million revolver in common equity Sentinel partners is the sponsor.
We purchased $21.7 million as a first lien term loan of smart Tronics try to technologies. The government is a government contractor. The company is government contractor, providing IC modernization cloud services defense systems Engineering and.
And surveillance and reconnaissance solutions Ocean sound partners is the sponsor.
Dealt with benchmark index is a management consulting firm that exclusively focuses on helping its clients drive sales, we purchase 14 million over the first thing term loan delayed draw term loan revolver and equity to the company CRP capitals to sponsor.
STB group incorporated provide specialized consulting services and engineering and architectural design as well as project management, primarily for transportation infrastructure, we purchased $19.8 million of the first thing term loan the Pritzker organization is the sponsor.
Turning to the outlook, we believe that the rest of 2020 will be active due to both growth and M&A.
Driven financings due to our strong sourcing network in client relationships. We are seeing active deal flow. Let me now turn the call over there would be our CFO to take us through the financial results.
Thank you are.
For the quarter ended December 31st 2019, net investment income was 29 nine cents per share.
Looking at some of the expense.
Categories.
It is great fees totaled about $5.1 million.
General and administrative expenses totaled about $1 million.
Interest expense totaled about $7.3 million.
During the quarter ended December 30, Onest net unrealized depreciation on investment was about $3.5 million or nine.
Cents per share.
Net realized gains what about $1 million or three cents per share.
Net unrealized appreciation on our credit facility and notes was four cents per share.
Net investment income equaled the dividends.
Consequently, and if you went from $12 97.
Thanks to $12.95 per share.
Our entire portfolio, our credit facility or nodes are mark to market by our board of directors each quarter using the exit price provided by independent valuation firms exchanges or independent broker dealer quotes when active markets are available.
I see a 20 825.
Okay. So were broker dealer quotes are inactive we use independent valuation firms devalue the investments.
Our portfolio remains highly diversified with 102 companies across 43 different industries.
89% you've invested in firstly it.
Secured debt, including 10% BSL.
40% in second lien debt.
8% in equity, including 4% Mpss, though.
Our overall this portfolio at a weighted average yield of 8.4%.
99% of the portfolio is floating rate now.
Let me turn to go back to warrant.
Thanks, Steve.
Clearly, we want to reiterate our mission our goals are steady stable and protected dividend stream, coupled with the preservation of capital.
Everything we do is aligned to that goal, we try to find less risky middle market companies that high free cash flow conversion, we capture that free cash flow primarily in first lien.
Senior secured instruments and we pay out those contractual cash flows in the form of dividends to our shareholders.
In closing I'd like to thank our extremely talented team of professionals for their commitment and dedication.
Thank you all for your time today and for your investment in confidence in US that concludes our remarks at this time I would like to open up the cost to questions.
Thank you if you would like to ask a question. Please signal by pressing star one on your telephone keypad. If you are using the speakerphone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment again. Please press star one to ask a question.
And we'll take our first question from Mickey Shaman with Ladenburg.
Yes good.
Morning, everyone up are you platform has extensive experience in oil and gas investments and I'm interested to understand how you may be leveraging debt into alternative energy.
Are there borrowers in that space, which meet your investment criteria.
And how do you see the opportunity in that segment developing.
Yes. Good question on Mickey it's in the alternative side is something we haven't done much and if anything we we are focused particularly today on kind of sponsor driven businesses, where theres a lot of equity.
Underneath us or loan to value is strong.
We have very good coverage and where there is cash flow to pay us down. So we haven't really seen much in the alternative energy space coming out of middle market sponsor arena.
Okay. Thank you for that Thats, all my questions for today.
Thank you.
And we'll take our next question from Michael Ramirez with Suntrust.
Hey, good morning, guys. Thanks for taking my question.
I guess, we borrow at your investment activity.
At the exits and repayments seems likely beverage.
Roughly say 13 total portfolio.
Quarterly.
Bases over the last year, so while we understand repayment are difficult to predict.
It is trying to continue through the calendar year 2020.
Are you seeing like other indications that the portfolio could possibly see it faster or slower turnover within next year.
It's a great question, obviously, it's hard to.
Protect predict Michael.
We think there's going be a lot of deal activity prior unit between now and the election, we think people want to do deals.
Pre election.
So we think we're going to be actors that could also mean, there's repayments coming out of that.
And this is why we kind of.
You bet incumbency is you had in certain cases, there seem to be company sold out of our portfolio.
Where it will have an option to.
To stay in or an option to exit and that's the best positioned to be ambiguous. These will be obviously be credits, where we have almost perfect due diligence on so hard to predict.
The amount of repayments.
But we do think we will be active both on the buy side and protect perhaps on the on the sell side as as deals get done between now and November.
Okay, great appreciate that.
Just another one on the investment portfolio.
We did turn to be talked about how you have investments in 43 industries. It very recall correctly last quarter's 37.
New classifications are you guys entering new industries.
Yes. These classifications are from one of the rating agencies I think its Moody's S&P.
And when the deal comes and we try as best we can the map to whatever.
Whatever.
Bucket areas within.
Those categories. We we had a very active December quarter as you saw.
239 million.
Deployed which was high.
We think a lot of people wanted to get deals done before year end leasing people want to get deal done before the election.
And we were we were we were pleased with the flow. We were pleased importantly that we can maintain very high credit standards, we talked about how.
Yes, we're doing is kind of debt to EBITDA in the mid.
As to low fours.
Getting over an 8% yields.
On average at very attractive risk adjusted return for US. These deals are are primarily is not all first lien tops the capital structure.
No more than.
50% loan to value so.
Sponsored putting a lot of equity in these Nielsen where we're in a position where we can be very very selective about what comes into the portfolio and still be active and Thats, where you know the team we've built over the last number of years around the country. The incumbency from 135 different names we have in the portfolio gives us a really.
Good.
Opportunity to review, what's in the market and only pick.
Those credits, where we feel very safe, where we're getting covenants and were protected in this environment.
Okay great.
Thank you for the other answer.
And if I may on the balance sheet.
It looks like the payable per investments purchase line increased over about $70 million from the prior quarter.
I guess if that does this mean limited new investments were back end loading in the quarter and it yes.
Say for example, if we took the new investment and we'd like more core towards the beginning in the.
How much would that has contributed to that's coming from.
It's good question I think the vast majority is trades that were done just prior to year end that we were going to close in the first week or two of.
Of.
Of the year, so that's a big chunk of it well can you can do the model.
Were 1.4 times leverage as of quarter end, we say we have to target helps to 1.7, we're going to work to optimize within that.
And we're also going to work to optimize our joint venture was Kemper PSS out, which is not fully optimized yet and I think if we.
Optimize bose.
Yeah.
Yes, LT balance sheet as well as VP SSL balance sheet over the coming quarters.
We're going to pick up.
Q3 cents per share per quarter.
Okay, Great and one last one if I may.
More macro I guess.
On the regulatory fun.
Could you please.
What's your thoughts on that coalition for business development, we're drawing it at that equals application to the receipt.
And actually the Disney usually there is another patsy relief from that.
And we're it's good question, we're not gone the forefront of that we are involved in the in the ASP.
Hey.
From what we hear from the experts who are involved.
There are still optimistic that that's something can happen.
You know kind of either either through discussions with the FCC or through legislative areas.
Hi, we're not that close to kind of those.
Actions were involved and obviously supportive and and allocating time and resources to it but we're not there is others, who are better positioned answer that question.
Okay. Thank you aren't thats all for me thanks.
Thanks.
And we'll take our next question from Paul.
With KBW.
Morning, guys. Thanks for taking my question.
My first question was around just sort of your optimal leverage range.
Earnings today covered the dividend pretty well.
Obviously the yield outlook has.
Decrease quite a.
And with the fly more moving lower.
I'm just wondering is there a plane or any claims.
Were you probably start to hold back on growth and perhaps a tap the brakes, a little bit on originations just given.
The lower yield outlook and probably the limited.
Recent.
Earnings.
From higher leverage.
Yes, it's a good question in some we think about a lot.
Paul and.
It's always a good day.
Look I think in general the kind of risk adjusted returns were getting today wherever again low to mid fours debt to EBITDA on.
No we're averaging.
8% on that.
In general, we think thats going to weather any kind of storm and still generate a safe.
Return for our shareholders, we get a COO within Pflp last quarter and as you know CL lows take the same exact.
Collateral can leverage it three or four to one and still be safe and feel safe that they're leveraging the same collateral three or four one we're not suggesting that here.
Well, we are suggesting that as long as we can underwrite really solid deals.
We can operate within our target the target is still less than the regulatory.
And is two to one or target is 1.4 to 1.7, so even if we go to the high end of our target we still have question.
Relative to the regulatory constraints and then we have this PS and sell joint venture with Camper, which has had very nice returns and is now 500 million and is not really quite optimized so.
We could you know and we're thinking about how we get higher returns from from that entity and and get a little higher ROI, we which obviously since pflp owns 87% of it.
Enhances the earnings.
Pflp, so what we're optimistic that.
Number one the.
So that we're doing today or you know will will will stand the test of timing will.
We'll play well in any environment, given the leverage the covenants, where we are in the capital stack.
Can be leveraged reasonably within there certainly our target and the regulatory constraints.
We think we can you know overtime.
The north of 30 cents or maybe maybe as high 31 or 32 cents.
As we optimize.
As we optimize these tools.
Okay, great. Thanks for that.
And my second question.
Is it has to do it with LIBOR and loan spreads in the market today.
Obviously, there's been a pretty meaningful move lower in line or.
Last year, while while a lot more what's moving higher we saw sprint kind of Titan along the way I'm wondering are you seeing any of the decline in line or today being offset by perhaps higher spreads in the middle market.
Well, we can say I can say for sure that spreads or have not been coming down and we have seen selected cases.
In new financing, where spreads are widening a touch I would not call. It a major trends at this point I would not.
Hi, Dave will say it's.
Happening.
I would say, there's perhaps some green shoots in that regard recently.
Where spreads have widened a little bit so hard to say, yes, we'll see what we'll see what happens but for sure we're not seeing tightening at this point.
Okay. My last question.
It has to do deal flow you talked about having a pretty active fourth quarter.
In closing.
And number of deals do you believe that I'm, sorry, I'm talking about calendar fourth quarter obviously.
But do you believe that.
Because of that active quarter that.
That pull forward of.
Essentially would that potentially affect any of the.
First quarter of 2020.
Originations.
Good question, usually you can say, there's seasonality our business where people want to get deals closed.
By by December 31st calendar.
Calendar fourth quarter.
And then usually there is a low in the first calendar quarter is a year.
Here, we are a months and five six days and do it hard for me the pound the table either way on that.
I said I think the overall.
Overall umbrella is that people want to get deals done before November.
Which is the election. So we believe we will have an active.
910 months going into the election.
Can't with precision tell you what's going to close on either side at March 30, Onest at this point Paul you know we're busy we're looking a lot of stuff. It's a lot of deals in the market, it's hard to hard to.
I would tell you with certainty what this first calendar quarters in a look like unfortunately.
Okay. Thanks for that those are all my questions.
Thank you.
And our next question comes from Chris York with JMP Securities.
Good.
Morning, guys and thanks for taking my question.
First is on.
Well, so the net impact.
Ron Crunch Arena.
Now.
Do you share dividend distribution dependent park.
It's time.
Years, so is it.
Quarterly level of roughly one point.
On a sustainable pennantpark.
Great question, you know what happened was.
Intra quarter PSS sales shrunk.
And by quarter and PSS sales is now above where it was prior.
Peter.
And sit down with Kemper in talking about the game plan for PSS, how we intend to growth SSL. So that's all you saw was a contemporary shrinkage PSS Sal.
Andrew easily be SSL is going to grow Thats our game plan.
And thereby not only covering the dividend to pflp, hopefully generate some upside above and beyond.
And then.
Second question is the weighted average leverage that you provided here on the call. This morning for your portfolio company declined from 4.64 0.2.
Our you've got a function of amortization EBITDA growth.
Next quarter.
Yeah, It's a it's a great question, it's a little of all the above we've had good performance.
You know our portfolio is clean it's been clean for a while it's been clean for you know as far as I can say and off down the table that nine years, we had a spasm.
Year ago, or we had a few nonaccruals, but prior to that we had no non.
For two years.
About a year since we've had some non accruals so portfolio a solid de leveraging nicely and new deals are coming in we're keeping our our standards high and.
Kind of staying in the mid fours in terms of new deals and.
No we're pleased with the.
What's going on I mean in an environment, where people are wondering where are the best risk. Adjusted return is and what you may be doing in our lead to beginning or end of a cycle. That's going on in this that and the other I mean senior secured loans with 50% loan to value mid fours debt to EBITDA at 8%.
A really good place to be we think.
You know to really get place, we think you know kind of.
Defensive solid yield.
Well protected with equity cushion.
So.
We're beating the drum on the asset class.
And certainly on the kinds of deals were doing.
Hi, good.
From an asset classes well for like share that sentiment.
Second we on maybe you're talking about where portfolio. So I noted.
Wrote down the restructured equity in both countries crush.
A quick weight loss, so could you faded from perform.
And for both the portfolio companies and then you're confident.
That heard them payback.
Good question, you're a little clearly both of those companies by definition of the write downs have been underperforming so.
We're working on both of them.
In country refresh you know.
So as some nice ops, they're just getting their act together post there where their restructuring quick weight loss will see quickly loss juries yet.
Relatively small piece of the portfolio I will also comment that we have a number.
Wait a few equity co invest in the portfolio by design, we have those equity co invests and you could.
I see a bunch of a more marked up Chris.
To help offset.
Declines that we have from time to time and problems. We have so you've pointed out two areas of historical weakness both touch freshman quickly loss you can look at our equity co investment portfolio and there's a lot of different names that are performing very well and have been.
Valued.
Higher levels and that's what we're supposed to be down from a portfolio management standpoint, as having a habit some of that.
Help offset those losses.
Got it and just to reiterate it seems we feel more confident about country prospering quite quickly at last is that fair.
Well.
We're we're right in the middle of the away last season here in February So post Christmas. This way last season. So all of a lot more color for you next quarter.
And that one.
Fair enough.
And then in light of changes in the direct lending market over the last couple of years, where do you think you guys have degraded.
It is.
Banners today that result in sponsor, making park the platform being first call today's could be a partner.
Well you know it's a it's a great question.
I've been doing that's a long time as we continually reiterate we are well known we are well liked.
Our financial sponsor clients give us a first call and we'd like to think we get Alaska look because of that.
So that allows us to participate and win deals or or or get chunks of deals. If we want to but also allows us to pull back.
When when we we don't really want to play so that's what we'll call we called incumbency, where we have 135 existing.
Borrowers, but it's also been 13 years dependent parking.
And and decades decades before that.
One thing I will point out, which I think plays to our.
Rents today is with the rise of very very large.
Direct lending peers.
More and more of those direct lending peers do here is doing very very large.
Direct loans that would have gone to the broadly syndicated market.
And I saw one couple weeks billion for clinical director.
The loan.
From one of our peers. It was a group of Rep here some of the Mega funds and God bless, but you know the last thing we wouldn't want to be doing is competing with a broadly syndicated loan market where leverage is high.
There are no covenants.
And.
And you know kind of you know you're kind of pricing for the last basis points. So we're very pleased that.
You know some of those folks are vacating, what I'll call the traditional middle market.
Which is where we play in the 15 to 50 million 15 to 40 million. If you want to hone in on its 15 to 30 million.
EBITDA companies that are just too small for these guys to focus on anymore, and where we can be importance to the borrower drive drive covenant protections drive yields drive upfront fees.
And deliver a very nice package, which you're seeing in our results, where we can deliver debt to EBITDA in the mid fours with covenants and an 8%.
In yield so.
To me, that's that's very positive for where we are positioned and the last thing I wouldn't want to be doing is competing with the broadly syndicated loan market.
That's great color.
In light of common, especially on the side.
What do you think is that.
Yes.
Side, you would want a hole at park floating today, and then maybe originated platform.
One of the redesign Oscar I noticed from maybe follow on investment activity at peak load, where it seems like your largest side maybe 35.
So and again.
Uptick there could be helpful. Yeah, Yeah, It's a great question and something we obviously think about because diversification is is a key attribute we're searching for Pflp has many many many names is probably two diversified but if we want to be very very diversified so and we have a bunch of.
Nicole Center.
Growing outside of the Bdcs and we have a bunch of limited partner relationships, who want to see you know slow from the platform. So I.
I think today, we have been named Thats.
120 million between our vehicles and our close limited partners and Thats kind of where we are today, but.
That then ebbs and flows depending on depending on the capital. We have had you know at the various vehicles and the LP relationships, but it's it's significant and for companies in that $15 million to $30 million zone that that can solve a lot of problems.
[noise] Mccann last one is any changes.
Platform or addition pick a platform that.
Our relevant you mentioned.
From some other on that could be beneficial.
Floating.
Yes, So I think we made a press release maybe.
Six months ago about you know closing on additional capital and.
And we've got.
Funds in the market I want to be careful I don't want to use a conference call to market private funds. So just to be clear I'm not marketing private funds here, but we have we have other other vehicles in the market and other relationships that were developing into managed accounts and.
As a variety of different things going on.
And this whole theme that we've been talking about where.
You can drive very good risk adjusted returns and senior debt that plays in the market and we also have a very strong track record and opportunistic which is slightly higher yielding stuff.
See that playing out in PMT.
In higher yielding first lien and occasional second lien occasional.
Ms.
Equity co investment occasionally some secondary opportunities.
That can be very attractive for for people as well.
Great even generative thank you very much art.
And we'll take our next question from rate she's been with Anfield capital.
Mark This is really more of a.
Hi level macro question.
Over the last year, you've done you said, you're going to do you deliver us low leverage solid credit good dividend well covered and yet the market trades, you would slightly under 94% of your M&A.
The.
All in the background, we see Fs and KKR get together and their stock right any RCC and American capital get together their stock right column swallow its sister fund in their stock rise.
We were just a place that you'd like to put Pf LTV so that it would.
Good.
Got it from investors sports drinks without and I totally understand.
PT with that Crazy place, where that people don't get any kind of coverage of their money.
And savage each other for increasingly less spread how do you.
I see that in the future.
Look we we can't control we consume question raised we think about a lot. We can control we can control we can choose our investments.
Which we hope to choose wisely, we can manage our capital structure.
And the different facilities and Leverages joint ventures.
We cannot control the stock price that's.
That's a that's clear.
We've been buying the stock personally as management, but we cannot control the stock price. We are we're not pleased with where the stock is trading clearly relative to the performance. When you think about the nine years, we've been in business and the.
The rock solid.
Performance, we've had over that period.
Time, So look we're we're all air sea ray or and others. If people have suggestions about how we can better articulate to story to the marketplace.
Meet investors.
You know kind of.
Physician things, we're all ears, ultimately, we want to deliver stay safe and steady.
Cash flow.
Turning to our shareholders. We think we're doing that Theres no change in that strategy and.
We're hoping that at some point the market recognizes the value proposition.
Hey, thanks for delivering value to us who have faith.
Thanks, Rick.
And there are currently no other.
Lessons in the queue at this time.
Great I want to thank everybody for participating today, we really appreciate your interest in the company.
And we will talk to you next quarter that will be in early may that'll be our next quarterly conference call.
Thank you very much.
And that does conclude today's conference. Thank you for your participation you may now disconnect.
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Okay.
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No.
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