Q1 2020 Earnings Call
Good day.
Incorporated first quarter 2020 earnings Conference call. Today's conference is being recorded and at this time I would like to trend.
Please go ahead.
Thank you Bye now you should have all received a copy of the first three weeks. However, if anyone is missing a copy everyone wants to receive one please contact our office at Q1, Q breakthrough 73746, and we will central every week and make sure you are on the company's distribution.
There will be a replay of the call, which will began one hour after the call and run for one week. The required can be accessed by dialing 184451 to two nine to one with the passcode three fivenine sick. So five day. Additionally, the call is being webcast W. W.
I've got bio <unk> dot com and a replay will be available for 90 days.
On the line with me today, and presenting our Gary Romance Bronx, Rice, Chairman and Chief Executive Officer, John Watson, Rollins, President and Chief operating Officer, and Eddie Northen Senior Vice President Chief Financial Officer, and Treasure management will make some opening remarks and then we'll open the line for question.
Sure I would you like.
Yes Merrill.
Thank you and good morning.
I appreciate all your joining us for our first quarter.
2020 calls from school.
He will read or forward looking statement, then disclaimer and then move again.
Our earnings release discusses our business outlook in contains certain forward looking statements. These particular forward looking statements and all other statements that have been made on this call. Excluding historical facts are subject to a number of risks and uncertainties actual risks may differ materially from any statements we make today.
Please refer to todays press release, and our FCC filings, including the risk factor section of our form 10-K for the year ended December 31st 2019 for more information and the risk factors that could cause actual results to differ.
Thank you Andy.
Find ourselves on a place that none of us could have ever imagine when we last spoke.
Needless to say on our over 50 years as a public company, we have never in their countered anything close to this pandemic.
When you refer to the economic crisis of 20, Oh wait as close as example.
We've had.
From my perspective, this virus is a totally different animal.
Impact Gizmodo fashion.
Found ourselves and uncharted waters.
Prior to the last two weeks in March or Pest control service sales were very positive and on track.
Ever is the virus began to expand we started to see a reduction in the demand for our service [noise].
Additionally, California shut down a little it and we saw our business affected immediately.
Further impacted by the hardest hit State New York.
In other states shut down randomly until the end of the core.
As you wouldn't expect we were not able to quarter expenses and off during those final two weeks to adjust for the revenue drop.
Revenues for the first quarter, though grew 13.7%.
487.9 million.
Compared to 429.1 million in the same quarter and 29 team.
Net income was approximately 43.3 million.
Or 13 cents per diluted share compared to 44.2 million.
Or 14 cents for share for the first quarter last year.
On the Boston Aside we experienced growth in all of our business lines in the core.
Residential up 18.6%.
Commercial pest control.
8%.
And termite and ancillary services grew 17.4%.
Couple of other bright spots during the quarter mosquitoes sales and service began as a weather warm.
As a result, we saw record setting growth in that business line.
We also saw strong revenue increase in our wildlife business.
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And he will provide greater detail on this is what was over financial results shortly.
You're entering what has traditionally the hot season, all of our domestic and global facilities remain operational.
However, commercial account retention and commercial sales results have been negatively impact.
Residential pest control demand remains positive.
And with termite, it's too early to judge the season.
Overall commercial pest control has been the most negatively impacted by the bars.
Commercial crosses multiple verticals, including health care.
Good processing logistics.
Grocery retail hospitality and others each of these industries is being impacted differently.
Due to cope with 19 a.
Hospitality retail restaurant business has been the most adversely affect.
First we continue to see improved demand and healthcare food processing.
Shifting sent grocers.
The business is facing an all time concern about the transmission of germs.
We're pleased to announced last month at Orkin began offering a new just in effect of service call Orkin.
Clean.
This new service will help business quickly I'm thoroughly suppressed a number of serious pathogens in danger their employees and customers.
A vital claim service has the potential to positively contribute to revenue and profit this year.
John will provide more details on this new service.
The company has implemented numerous proactive and defensive actions to address the current doses challenges and the impact of a pandemic.
And while they are uncertainties regarding the duration and total effect of covert 19.
We anticipate our business will generally mirror the calling economy.
This would be across the nation as region States counties and cities begin to open up.
Yeah actions that we have implemented take into consideration both in short term impact.
And longer term affects to follow.
That's a pandemic situation evolves, we will continue to evaluate our actions there in attack.
And the just the business accordingly.
Before turning the call over to John I want to acknowledge your employees and their importance.
Our people are greater SASSA.
We couldn't be prouder of them as they have quickly adjusted to the pandemic.
Are experiencing an unprecedented times in our history and our people are rising to the occasion and an extraordinary ways.
We're taking our responsibility seriously as we've been did theme in the central service provider by the department of Homeland Security.
But this distinction and as the world's largest pest control company.
We have an extremely important role during this critical time.
Protecting people hill and property and the properties well being isn't important no sign.
I'll now turn the call over to John for more details.
Thank you as Gary noted we are certainly in very challenging times and we're quickly responding to the impacts the coping 19 is having on our businesses.
Poison customers.
Our people on the front lines of this pandemic underperformed have ROIC like taking care of their customers and each other during this time.
The services, we provide or could is centered essential so we're continuing to service, our residential and commercial customers where possible.
This holds true for our global operations as well and we're continuing to do business in accordance with each country's guidelines.
Our focus over the past weeks has been on ensuring that our employees around the globe are safe.
We are providing them with the protection they need to service their custom customers responsibly.
Rollins has purchased and provided our technicians and other employees that interact with customers, what's disposable personal protective equipment.
Putting masks gloves shoe covers and protective outerwear.
This is an ongoing investment that we believe we will continue to make in order to keep our employees and customers say.
In line with this new normal we're all facing.
The highest priority during this difficult time is and always won't be the safety and security of our team, especially on the front line.
To help ensure this we have provided a companywide increase to our paid time off program for all fall and part time employees.
Fulltime employees will receive up to 80 hours of Peto for emergency leave during this corona virus pandemic and our part time team will receive 40 hours that they should needed.
Our people can use this time for their own personal care or for a member of their immediate family who has tested positive for us being quarantined horse, but suspected cases the virus.
We believe these measures will provide our team with the help and support they need while protecting their health and the safety of those around them.
Given current business conditions, we have temporarily furloughed a number of employees at both filled operations at our home offices.
The furloughs will allow us to retire those employees as demand improves.
In the meantime were providing full employee benefits for those effective.
Additionally, Rollins us offender suspended merit increases for the corporate staff, along with management salary reductions both field and home office positions.
Frontline team members have not been impacted by the salary reductions.
Andy will provide greater detail on this and other cost cutting measures we have taken.
As Gary noted Orkin and many of our other brands are now offering a new disinfection service that will quickly and thoroughly eliminate a wide variety of serious pathogens.
Large scale disinfection is imperative to keeping established and Thats, where people shop eat and work sterile as possible and disease free.
Orkins vital clean as an effective option for reducing risks and helping restore a safer and healthier business environment.
The Orkin program trademarked as vital clean uses an EPA registered disinfectant labeled for use against a wide variety of pathogens and is included on the EPA is list of approved products or list and that meet their criteria for use against Sars dash Coke to the Kuroda virus that causes Kevin Knight.
I mean.
When applied and in accordance with the product label by train service professionals. This powerful disinfectant will still 100% bacteria and viruses on hard noncore surfaces, and we'll sanitize soft for surfaces.
We're very excited about the potential for the service not for both our existing and potential customers.
And now I'll turn the call over to Ed.
Thank you John.
Our press release on April 20, you gave you some insight as to what we knew at that time related to the impact of corporate 19 on our business.
Today, We will report on our Q1 actual results and add some insight so what we know today.
Before again I would also like to thank our over 15000 employees that have adapted to a new way to work and support our customers as well as goes that it helps and supported our impacted employees as well as our communities.
Thank them for their efforts, we will truly be getting through this together.
As I go through the results of Q1, there are some items that were already being felt in our numbers as Gary mentioned, the slowing of our commercial pest control revenue as John highlighted an increased expense related to protective personal equipment or PPD for all customer facing employees.
While we patiently stood in line for PB behind those first responder groups at most critical need to ensure they receive first we began accumulating masks and other items to ensure the safety of our employees.
For the quarter all of our service line showed growth and key to the quarter included.
Higher material costs.
Supplies as mentioned with the personal protective equipment.
The launch of our new commercial disinfectant service work in fighting clean.
And our initial round the cost containment and our field operations and home office locations.
In addition to reporting our Q1 numbers my focus today will be to share what we know at this time related to Q2.
Looking at the numbers the first quarter revenue of 487.9 million the increase of 13.7% over the prior years first quarter revenue 429.1 million.
Income before income taxes was 55.4 million or 1.2% below 2019.
Net income was $43.3 million down 2.2% compared to 2019.
Our GAAP earnings per share were 13 cents per diluted share.
EBITDA was 79.2 million and rose, 9.2% compared to 2019.
Our Q2 numbers will begin to normalize as we lap Clark in May of this year.
The impact of the initial Clark acquisition to our net income for the quarter includes depreciation of 1.4 million, mostly due to buildings and added vehicles.
Amortization of intangibles up 3.1 billion in interest expense of 2.4 million.
As was mentioned earlier, we began aggressively purchasing PTC in Q1, along with the equipment and supplies needed for our new disinfecting service vital clean.
These two items along with the transition to new more diversified test products suppliers impacted our materials and supply costs for Q1, and we will impact of business for the remainder of the year.
Let's take a look to the Rollins revenue by service line for the first quarter.
Our 10 revenue increase of 13.7% included 8.6% from Clark and other acquisitions and the remaining 5.1% was from pricing inorganic growth.
In total residential pest control, which made up 42% of our revenue was up 18.6%.
Commercial pest control, which made up 38% of our revenue was up 8%.
Termite and ancillary services, which made up approximately 20% of our revenue was up 17.4%.
Also note as Gary mentioned, our wildlife services were up strong double digits.
Again total revenue less acquisitions was up 5.1% keeping with the slowdown during March.
From that residential was up 6.1%.
Marshall X fumigation increased 2.1%.
Termite ancillary grew 11%.
There are two items that I'd like to note.
Gary mentioned the continued growth of our mosquito service at record levels continues to drive our residential revenues.
And also this quarter eclipse last quarter with double digit increases as we also experienced the fastest termite ancillary growth in the past six years.
In total gross margin reduced to 48.5% from 49.4% in the prior years quarter.
The quarter experienced increases in several categories, mostly driven by Clark into categories of service salaries administrative salaries and personnel related for our form 10-K match.
Additionally, materials and supplies were up as discussed earlier.
Moving the impact of Clark gross margin improved 49.3% in 2020.
Depreciation and amortization expense for the quarter increased 4.9 billion to 21.6 million an increase of 29.5%.
Depreciation increased 2 million due to acquisitions vehicles acquired and equipment purchases as mentioned earlier amortization of intangible assets increased 2.9 million due to the amortization of customer contracts from several acquisitions, including Clark.
Sales general and administrative expenses for the first quarter increased 18.3 million or 13.1% to 157.9 million, 32.4% of revenues down 110th of a percentage point from 139.5 million 32.5%.
Revenues for the first quarter 2019.
Decreases the percent of revenue in the percent of revenues, primarily due to administrative salaries sales salaries and personnel related all growing at a slower rate in our revenue growth.
Offset by higher insurance and claims and maintenance and repairs due to scheduled I'd see projects.
Our cash flow continues to remain strong at this time.
Our conservative move and reducing our dividend will further improve our balance sheet and we'll have flexibility as needed for the future.
There are currently more unknowns that knowns around the economic impact of the virus and this step along with the others that we have taken will further prepare us to come out of this time and even stronger financial shape for the future.
Finally related to cash as our top priority. We have continued with our M&A activity around the globe with completed acquisitions in March and plans for more in the second quarter.
As for our cash position for the period ended March 30, Onest 2020, we spent 47.6 million on acquisitions compared to 7 million the same period last year.
Okay 39.3 million on dividends and had 6.7 million capital expenditures, which was slightly higher compared to 2019.
We ended the period with 92.6 million in cash of which $64.2 million help our foreign subsidiaries.
Before I wrap up I want to share the pandemic related impacts that we are aware of that will be ongoing.
As most of you know, our payroll and benefits or just over 50% of our costs and are extremely variable based on our revenue levels.
The two other major cost categories, our fleet at about 7.5%, which is slightly less variable payroll.
Materials and supplies, which is also about 7.5% and variable based on revenue.
Here are few items and approximate impacts to consider for the second quarter.
First the cost items for the quarter.
We'll have additional materials and supply expense, which will be between two and 3 million for the PPD for our customer facing employees and this will be ongoing for the foreseeable future.
The cost cost for the benefits for furloughed employees will be between 300 and 500000, we will update as we know more in future quarters.
Cost of additional paid sick and lead time related to coated.
Team.
We will be between 350000, 600000, and we would anticipate that about reducing in future quarters.
Offsetting these higher costs for Q2.
[music].
We have cost containment or reductions implemented in April which will impact Q2 between 18 million and 22 million. These include discretionary cost cuts and payroll some of which John mentioned.
Capital expenditure cups to only essential products to run our business. This will reduce our historical percentage of revenue by about 110th of a percentage point or 700000.
We're moving into our mosquito and termite seasons, as Gary mentioned, which will help improve our route density and improve efficiency.
And finally, the launch of vital clean early ramp with early wins around the globe.
Industries, such as food housing hospitality fitness and transit.
As a specific example, we just signed the British Columbia Transit system in Canada.
A shelter in place rules change in the coming months, we anticipate demand for our pest services and new disinfected to rise and we're well positioned to adapt as those changes occur.
Until that time, we will continue to study and adjust our cost structure as needed.
Finally, the board of directors approved a temporary reduction to our cash dividend to eight cents per share that will be paid on June 10th 2020 to stockholders of record at the close of business May 11 2020.
I'll now turn the call back over to you.
Thank you.
We're happy to take your questions at this time.
Thank you I'd like to ask a question. Please take all by pressing star one on your telephone keypad.
Are you seeing speakerphone. Please make sure that your mute function is turned off for now your signal to reach our Clinton.
Please limit yourself to one question on reenter the queue. If he would like to ask a follow up again that is star one to ask a question and we'll take our first question from Ohio, Cornell Archie with Jefferies.
Go ahead.
Thank you hi, everyone on the hope everyone doing well in thing safe.
Just.
I think the most important thing for for invested arrived in what the exit rates were.
Margin wondering if you can give us more color.
Quantify what you saw organic growth for ready and commercial end of March and then how that's trended throughout April.
The bottom at this point and it just looking at C., I guess, where we can expect.
Possibly the rest of the quarter, obviously, we don't know, but because they thought about April trends.
Yes, yes Mario.
It depends on the on the first question out you know thats really difficult we have.
On the residential side, which we put in our press release, we're still seeing good demand.
On the commercial side.
We know what customers had been impacted on the commercial side, we've suspended some customers where they suspended us because of not having a neat and and the reason why punting on the question is because we don't know of those ones that have suspended we don't know which ones of those customers will be coming back.
You know, we we have we have a feeling for for the larger customers, which ones will be coming back, but we just don't know about this mom and pops.
They may or may not be coming back based on.
Their personal economic situations. So it's really too soon for us to be able to give any sort of prediction on that.
As in as Gary talked about on the termite side, that's that's hanging in there as a as well, but residential we're definitely seeing the most positive and we can give more color as we see things shaping up as we move forward, but I think at this point time, we were still not sure what their commercial is going to look like.
Okay, and then even during stated accident in March.
You can share in color on that.
Well you look at the end of March and you look at what that flowed into April so by the end of March in New York was shut down, California was shut down a few other major states were shut down.
You had other states that we're beginning that shutdown process or shutdown portions of what they had going on so.
I just don't think it it's going to be fair for us to be able to even share that has because I I don't really know what thats going to look like.
I know it's anecdotal.
And if you need to if you need to go Bowl and you can compare to Georgia, because we have a bowling alleys open but but we also have restaurants. We also have restaurants that are open doubt that I know, it's anecdotal, but we took up a little pull this morning on my folks here and I said, okay. How many folks Winton went to a sit down restaurant since we've opened back up and no one raise their hand so.
You know, we just don't really know what the impact is going to be even as we're opening back up and what the impact is going to be longer term for these businesses to be able to stay in business.
Gotcha, Okay, and then and then just one more and I'll turn it over.
Just on the different testing business actually it's very interesting idea and and I'm. Just wondering if you can tend to share some of the success that you might have seen it think.
I've heard that you seem to more success in Europe versus the U.S. and the early on days and probably just covidien over there versus the us earlier.
But what do you think that business looks like longer term I mean, just said.
And people tend to have very short memory I mean the business.
Accelerate in any year from now or do you think because people tend to be.
Sure it might get that maybe they'd be forget about the colby situation and the bell I don't need to service anymore, and then maybe doesn't gain as much traction or how does with relevant maybe a year or two for now.
Your take on that.
Well.
Before 911, we can all just walk through an airport and we can just go get on the plane to going after 911 that that changed for all of us.
Forever, probably and.
I don't think we know exactly what the outcome of this will be at this point in time I think in the near term Ah I think all other things we've seen from the different states that are opening up have some for some form of a recommendation of the cleanliness.
And.
And so we're trying to go through and talk about what makes sense for the verticals for us to spend our time from a sales perspective.
With that some are going to need that just to be able to get customers back into door and feel comfortable now what now what I think the question that we don't know is what's going to be mandated as we move forward and Tom as far as quite levels.
This is John Wilson by the way.
And I forget you hit the nail and head with the mandated portion I think there'll be certain industries, maybe hospitals health care food processing that that it may well be mandated some others that is strongly recommended by the various government entities Health Department maybe most.
Most of especially so it's hard to say, but but I do think it can be fairly significant for us where the early returns you terrific in terms of.
Of what our people are managing to add to their to their.
Customers with.
Great. Thank you so much.
Our next question will come from Tim over any from William Blair. Please.
Please go ahead.
Good morning, everybody.
Good morning, Tim.
Can you shed some light on your end market exposure in the commercial Pos business I understand you don't want to give any insight into the growth rates through April, but what would help me and others maybe model because we have to model something right.
I, specifically I'm curious what percent of your commercial business is restaurants hotels, what's your likely under significant pressure right now.
Yes, if we have never broken that out when it we're not going to we're not going to break that out by by vertical and a lot of that's just can be from a competitive standpoint is we don't want to put ourselves in the cross hairs and other competitors being able to step into the areas, but we have a really good strong cross section.
All the different verticals and if you'll go back to previous calls that we've had having to do with a topic. We've talked a lot about moving into the verticals such as or moving more strongly into verticals such as healthcare such as food processing, such as logistics, we've talked about that over the past couple of years. So we've had a strong concentration.
In those areas.
But there's no question that we have we have a very strong cross section of all those different ones as well as you know a decent amount of large customers put up but a large performance of small and medium sized customers as well.
[noise], okay any okay, but.
I understand you don't want to disclose left for competitive reasons.
Any vertical.
Just trying to get some something that can help.
In any vertical.
Our work day on 25% of your commercial business or can you tell us that no vertical is more than X percent of your business any any color that way, where you're not really disclosing much of anything for competitive reasons, but gives investors a sharon puts you are not overweighted in any particular end market.
Yes.
I think your last statement is spot on we're not overweighted in any individual.
Vertical that that is out there we have a a relatively diversified.
Verticals and our percentages in those are relatively diversified as well.
Okay, because I I read an article recently from specialty consultants, what sort of you know.
Market sizing I think in there it said something like 40% of commercial businesses restaurant.
So it's fair to say that Youre end market mix does not necessarily match that of the broader market.
Your your statement is correct and I would I would be interested to understand the data behind what you read there.
I would I understand about about what's out there in any industry, but that your your statements correct.
Okay cool.
Thank you very much I'll get back in Q.
Okay. Thanks.
And again, our one if you would like to ask a question as a reminder, please limit yourself to one question on reenter the queue.
Well again, not a star one to ask a question.
Our next question from Seth Weber with RBC capital markets.
Please go ahead.
Hi, good morning.
I hope everybody as well I guess, maybe a question for Eddie can you just talk about what you're seeing on the collection side.
Are you seeing you know customers a delay payments are you.
Doing anything to kind of insurer.
The quality of your receivables or anything like that and then I just had a follow up on that on the M&A comment. Thanks.
Yes, we showed up our reserves a little bit on on that side just to make sure.
We do have a pretty healthy diversified customer base as well, we've really concentrated on on higher income to be able to not only sell our product so more than one product.
And we're seeing that that band of or income band of customers not being as impacted.
From a collection standpoint, so I think it's still a little bit to really to be able to say one way or another on that we're just three or four weeks into.
The unemployment checks and people still having.
Relatively relatively full income.
But we're being a little bit cautious with that and we're being a little bit aggressive putting more resources into that area just to do the best that we can at this point.
Okay. Thanks, and then just going back to your comment gone not so.
Just one more thing added just one more thing with that as you may or may not know, there's certain states that have put mandates in place where you are not allowed to collect in those areas right.
Right. So you probably already know about all those and were complying as we should for us for all of those states.
Okay.
Thank you and then just following up on your M&A comment can you just characterize them valuation started to come down across across the group here over the last couple of months relative to where they were.
I would say that number of sellers are much less than what we've seen and previous times than I would say that valuations for those that are still in the market are probably.
Coming down as well.
With other with less other players in the market some of our direct competitors has said publicly that they are not in the market.
And.
So while we're not necessarily aggressively going out there looking we're absolutely being open opportunistic.
Yeah, I would agree with all of those statements I do see valuations may be coming down a bit because just simply because there aren't as many buyers in the market at least right now.
<unk>.
Okay very interesting bank. Thank you guys appreciate it.
And as a reminder that is our one if he would like to ask a question. Our next question will come from Michael Hoffman with.
Go ahead.
Thank you all yours for taking the questions Im glad everybody's safe can you all are doing the right thing by our employees.
And it can I ask a clarification question first if I may I I'm scribbling numbers down as fast as like good when you're talking.
When you sit 18 to 22 mining cost containment was on an annualized number where that stuff quarter savings.
For the quarter.
For the quarter net and that's going to includes some of the categories that John talked about.
Having to do with payroll, we really didn't go into a lot of the details on the discretionary cuts that we made but that would include those two categories discretionary and payroll.
So just so clearly there's so little bit they get the high end of materials and furloughs in PT, though I mean, that's kind of 4 million. So I got 4 million headwind that I got an 18 million offset.
Right.
Yes, Matt is yeah, I don't have that.
That's right. Okay. Alright, then I just wanted to charter. So my question question.
Its two parts trying to stay in the spirit of one question.
Residential lead generation don't carry and when this restarts do you think.
You would get calls from commercial and say, hey, I want to restart.
Come in and do I'm, only calling it out in service. So there's a restart service kind of activity.
I'm sure John to weigh in with a lot more specifics, but but I'll just start by saying I think we see customers and a few different buckets. One is there they're doing normal their normal service that they would have either because they are fully in business are there and some sort of partial business I think we had another bucket.
Got it completely stopped at this point in time, because they don't have anything at all going on and I think we have a third bucket, which is kind of a hybrid which lets just say they may be received a service once a week they might now be receiving a service every other week or every three weeks just to keep things relatively intact at this point so we.
Got you know by customer we're trying to accommodate as best as makes sense for them, especially for those that no they're gonna be opening up relatively soon.
They don't want to make a decision that they're going to open up on let's just say may 1st they haven't done anything for four weeks and now they haven't infestation that they have to go through and deal with they don't want to have that situation. So I think those are kind of the buckets of what we're seeing abide by the customers.
And Michael we're seeing a wide array of tactics by our customers too.
Maybe the freight costs some have chosen spend all together some have chosen to reduce frequency.
Hi, just in some of continued with their service, even though they may be shut down knowing that they don't want you know an outbreak of pest problems. We've had a one of our big retailers that has put us on suspend that's already notified us for two good re read again or begin service in may So I would suspect.
We will have quite a few that as we're coming back on will get us in there before they open.
Okay, that's what I thought given a little pop from that and then back on that some normal trend.
That makes sense.
Okay. Thanks.
Thank you.
And there are no further questions at this time.
Okay no other questions Okay no of course.
I'd like to add a comment.
And that's where it's uncomfortable release, we don't know answers as I'm sure you all are here.
But I think that we have responded quickly.
I think that we have.
Three wonderful areas of increasing our business with our termite seasons.
Mosquito season and was there.
Vital clean.
So and that that again, you know it is challenging to try to.
Determine how big can vital owning the just the first 30 days have been very encouraging.
And.
Our residential pest control.
Leads have continued to be strong. So you know you do you have so many variables, it's just really difficult to.
To.
Gauge all these but I think one of those reasons that we took status.
With our a dividend was a we just want to be prepared for.
For the future and.
Those of you that have followed the company for sometime now.
Generally conservative and I think that.
We're in a best position of anybody in the industry to deal with this.
So we're just going to keep working at it.
And improving and.
Hopefully, we'll see this turn.
In the near future.
X, saying that I'd like to thank you all for joining US. We appreciate your interest in our company.
On our behalf, we hope that you and your family and friends remains safe and well.
And we look forward to updating you on our second quarter call. Thank you.
And this concludes today's conference. Thank you for your participation.
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No.
Okay.
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