Q1 2020 Earnings Call
Thank you for standing by welcome to Autonation first quarter 2020, <unk> earnings call an audio webcast.
At this time, all participants are no listen only mode.
After the speakers presentation, there will be a question answer session.
Ask a question during the session you'll need to press star one on your telephone please be advised to today's conference is being recorded.
We acquire any further systems. Please press star Zero I would now like to have the conference over to your speaker today I work with Terrell Vice President Investor Relations. Thank you. Please go ahead.
Thank you.
Good morning, and welcome to Autonations first quarter 2020 conference call and webcast eating our call today will be Mike Jackson, Our chairman and Chief Executive Officer, and Joe Lauer, Our Chief Financial Officer Financial Officer.
Following their remarks, we'll open up the call for questions I'll be available by phone following the call to address any additional questions that you may have.
Before we begin let me read our brief statement regarding forward looking comments.
Certain statements and information on this call, including any statements regarding our anticipated financial results an objective constitute forward looking statements within the meaning of the federal Private Securities Litigation Reform Act of 1995.
Such forward looking statements involve known and unknown risks, including economic conditions and changes in applicable regulations.
Cause our actual results or performance to differ materially from such forward looking statements.
Additional discussions of factors that could cause actual results to differ materially are contained in our press release issued earlier today, and then or as you see filings, including our most recent annual report on form 10-K, and subsequent quarterly reports on form 10-Q, and current reports on form 8-K.
And now I'd like to turn the call over to Autonations, Chairman and Chief Executive Officer, Mike Jackson.
Good morning, and thank you for joining US today, we reported adjusted EPS from continuing operations at 91 cents.
Yeah, only 4% year over year, despite significant headwinds.
Caused by the Corona borrowers.
I would like to thank all alternation associates across the country for the tremendous effort during these challenging times.
Only their hard work and dedication continuous support first responders or central workers and communities in which we live and work on behalf of water nation I would like to say. Thank you all have put themselves on the front line of this battle condemning there forever grateful.
Health and safety of water nations customers and so she is our top priority.
Well the nation stores are clean and sanitize multiple times a day.
Company has implemented social distancing best practice within the workplace.
All our associates and customer interactions and our store to delivery program for customers feel safer at home.
To complete their transactions.
Even with the pandemic and related shelter in place orders across the country alternation delivered strong results for the quarter compared to the prior year same store first quarter 2020 revenue was 4.7 billion a decrease of only 5%.
Same store first quarter 2020, gross profit totaled 812 million a decrease of 3% same store bearable gross profit was 423 million a decrease of 5%.
Thank you a customer care goes probably 389 million decreased 1% compared to the year ago period.
Customer pay down 2%.
The only motor recovery is underway as a nascent stage from which we derive roughly 50% of our total revenue or largely still under shelter in place or stay at home orders compared to 95% beginning of April.
Month debatable began season recovery in our sales same store, new and used retail units sales were down approximately 20% in the final 10 days as April compared to down approximately 50% in the first 10 days for the month.
We continue to see improvement in our largest markets, Florida, Texas and California.
At the end of March same store retail unit sales for Florida, Texas, and California were down approximately 50%, 40% and 70% respectively.
But by the end of April retail unit sales in Florida, Texas, California were down approximately 25% 5% to 30%.
We expect most manufacturers to resumed production in may.
And credit is readily available and affordable for customers.
We're also seeing customers return to our service lines.
Beginning of April or custom pay apparel orders were down approximately 50% and ended the month repair orders were down roughly 30%.
I'd now like to turn due to our Chief Financial Officer, Joe levels.
Thank you, Mike and good morning, ladies and gentlemen.
Before discussing our first quarter financial results I'd like to provide perspective on the impact cope with 19 and related actions have pattern or business and financial position.
In response to the dramatic sales declined during the last two weeks of March.
In early April we implemented a series of cost reduction in capital preservation measures and attempt to mitigate the economic challenges we were confronting.
We placed approximately 7000 employees on them played weve implemented temporary pay reductions for our executives and associates suspended for one came matches in froze corporate new hiring.
We also took actions to significantly reduce our advertising expenses discretionary spending and capital expenditures through the second quarter of 2020.
Our board of directors also temporarily waived the retainer fees.
These actions were swift severe and necessary given the uncertainty we faced.
Fortunately, we have a business model that can quickly adapt to these types of business challenges coupled with a strong balance sheet.
Currently we have an excess of $1.4 billion with liquidity.
Including over $750 million of cash.
And approximately $650 million of availability under our revolving credit facility.
We also have access to other sources of capital should it be needed.
As such we believe we have more than adequate liquidity to weather the current situation.
Turning to first quarter results reported adjusted EPS from continuing operations of $82 million.
Or 91 cents per share.
First quarter 2020, adjusted results exclude noncash impairment charges of three hurt and $15 million after tax.
Or $3.49 per share.
Well suited with goodwill franchise rights and other assets. These noncash charges were triggered by October 19 related impacts to the business and our market valuation. That's the ended the first quarter.
During the first quarter same store revenue decreased $238 million or 5% compared the prior year.
On a total store basis revenue decreased $350 million for 6% and gross profit decreased $36 million for 4%.
Of note we began the year strong with combined same store January and February revenue above 10% year over year.
Before cobot 19 and related shelter in place were caused almost 30% decline in March.
That's just as a percentage of growth gross profit was 73.9% for the first quarter.
Which represents a 50 basis point increase compared to the year ago period as disruption to our business from the Twog virus caused significant SGN a deleveraging in March following positive year over year trends in both January and February.
The floor plan interest expense decreased $26 million as compared to $39 million in the fourth quarter of 2019 due to lower interest rates and lower average floor plan balances.
Non vehicle interest expense decreased to $24 million, that's compared to 28 million in the first quarter of 2019.
Primarily due to lower average debt balances.
At the end of March we had $2.5 billion of non vehicle debt.
An increase of $418 million compared to the ended the fourth quarter as we partially drawn revolver and increased cash on the balance sheet as it precautionary measure given the uncertain outlook.
The provision for income tax in the quarter on an adjusted basis with an effective rate of 27%.
With Coca 19, and shelf from place orders significantly impacting operations, we halted our share repurchases before the end of the first quarter.
Prior to that we saw an attractive opportunities to acquire autonation stock and invested $80 million for the purchase of 2.5 million shares at an average price of $31 95 sites.
Under the current board authorization the company has approximately $139 million available for additional share repurchase.
And as of March 31st there were approximately 87 million shares outstanding.
Our covenant leverage ratio of debt to EBITDA increased to 2.8 times at the end of the first quarter.
Compared to 2.2 times it ended the fourth quarter 2019.
Including tasked our net leverage ratio was 2.4 times at the end of Q1.
Capital expenditures were 30 million compared to 40 million in the prior year, reflecting actions. We started implementing implemented in March that will continue through Q2.
We will continue to remain discipline over cost and capital as our markets continue to reopen in business recovers, we believe our resilient business model and strong balance sheet position us to accelerate going forward.
I'll now turn the call back over to Mike. Thank you Joe.
Hi, there certainly unpredictably unpredictability, especially through 2020 on the on the face of the recovery, we believe the automotive recovery in some way.
Customers are motivated to kill this thing one person space rather than share space. When it comes to transportation. We are prepared to meet all our customers transportation safe responsible way.
Alternation is focused and well positioned to perform during this autumn retail because we're now sunlight and getting it all questions.
As a reminder to ask a question you will need to press star one on your telephone to withdraw your question press the pound or Husky. Please stand by only compiled acuity Ross.
Your first question comes from Rick Nelson with Stephens. Your line is open.
Hi, Thanks, good morning.
I mean come to call here Mike.
Oh.
Sure.
What to see happening I'm to use car market.
So to speak a lot of them toward out there do alerts their inventory reduction.
How you're kind of responding to that are you taking.
Yeah, and aggressive Mark Downs as her are you referring to weighed on the sidelines for [laughter] Oh producer developed.
I guess it Mike Jackson.
Retail pricing in the U.S. The open market has been very stable I'd say it moves by one or 2%.
Thus far and what we've also seen now with the disruption to production or new.
No, it's because I can't find what they're looking for new they're very flexible to consider nearly new and pre owned.
Obviously, the wholesale market as it is a different story at its very hard to judge, particularly with the auctions disrupted and.
The rental car companies rightsizing their fleets, but I think a lot of that has already been done without disrupting the retail market. So.
The ability to acquire vehicles for inventory at a very attractive pricing.
It's good.
And retail pricing is.
I would call it stable all things considered and we're in good position to manage come what may.
Okay.
Thanks for that.
You know curious how you see consumer.
Maybe or changed from opposed to tell that I know youve made lots of digital investments, maybe you could talk about kind of profitability with digital sorry, helpers who's in store right. How do you see social disconcerting.
Thank you have some hypothesis.
So this is Mike I think.
For digital.
This whole disrupt this period with Kalona.
He's an inflection point from which there's no turning back why there's been a strategic trend towards digital and we certainly have invested in those capabilities.
This is an accelerant.
In which there is no turning back.
And I.
I think he.
Bar has now been raised for any company that wants to perform in this marketplace.
And do you need first class digital capability.
You need to safe environment for your customers at a safe environment.
Full year associates that that is the Holy Grail going forward.
We see no different than profitability between a digital channel and.
The traditional challenge whatsoever.
And as far as our performance around finance and insurance.
On the PDR bases I think we're at near record levels. Joe could you talk about that please yes, I see no in fact, there yeah. Thanks, Mike. So we've continued to see strength and F and I saw it through Q1 can see continuing to see it in April and continue to see it in may So all signs are very positive on that front.
Great. Thanks, a lot <unk>. Thank you.
Okay.
Your next question comes from Bret Jordan with Jefferies. Your line is open.
Hi, good morning, guys.
Good morning.
Comment about digital being at an inflection point do you see the independent use market changing dramatically into lobby, obviously, a lot of them or not as sophisticated from an online execution standpoint, do you think we're going to.
Have a meaningful reduction in stores.
I think.
That trend was already underway.
Where the value of a brand and experience and a warranty guarantee.
Okay has all been.
Expressed as a consumer as things that are valued and there's been a movement towards companies like other nation with one price Carmax room.
Carvana you see it I think that as a trend that is there.
That will continue now I think there is an acceleration towards companies that has as I said first class digital capability and the scale and the ability around the brand and the ability to deliver a uniform experience. So its pre owned market, which is too much.
Typically at retail larger than the new market somewhere approaching over somewhere between 35 40 million on a normal year I don't know what it will be this year with a disruption of Corona I think the rate the consolidation.
Ah into first class digital branded warranty.
Known entities from from consumers and I think.
Ah that means nodes that are competing with that.
We'll move share.
Okay, and then I'm not going to whats happened now will only accelerate.
Thank you and I guess, a macro question I guess, given your perspective lot of years with cars do you think this pandemic is followed by a recession and I guess do you have any outlook as far as sort of a guesstimate for Saar for 2020.
There's no question in the United States is in a recession that there is no absolutely no doubt about the employment level in the United States is now.
No were then.
The bottom of the only nine recession, we'd given it back in a month 10 years of a job.
Gross.
Now.
Having said that too too as far as 2020 to give that number in 2020.
While I'd say the automotive recovery is underway I think 2020 isn't very unpredictable year, I think you'll still be twist and turns and bumps in surprises Oh through 2020.
Thank you.
You know if I go back a monthly little over a month ago. You know we were looking at we were down 50, and what we're going to be down nine year was going to be something else and they were only down 20. So obviously.
The drum beat of demand for personal transportation is strong.
Exactly how that plays out for 2020 I can't tell you like this is a multiyear recovery in automotive retail retail that is underway and I'm highly confident that 2021 will be a better than 2020, not a guarantee but I'm not going to give you numbers on he's or considering the level of uncertainties on predictive.
We are predictability, but directionally I'm quite confident and.
Got it automotive retail recovery is underway.
Great. Thank you.
Your next question comes from John Murphy with Bank of America. Your line is open.
Hi, Good morning, it's great to hear from you in our thoughts and ER and were open Charles doing okay.
Just to eat it first question here, Mike <unk>, you know any inventory on the new site appears to be a little bit high given the run rate of sales that were looking at right now, but with a lack of production quickly get whipsawed into being very tight or deficient in your ability to actually deliver that the new vehicle demand I'm just curious.
Yes, hi, your your navigating that and thinking about that and maybe also sort of in conjunction.
How the automakers acting in is kind of environment relative to history. It seems like there being a little bit more collaborative and supportive, but just curious your view on that as well.
John where we're around.
Very satisfied with our inventory position, we think we're in good shape.
As you know.
It's one of those numbers you can look in the rear view mirror, but rather you have to look forward.
And I like our position I don't see anything that we can't manage.
When it comes through the manufacturers reopening the plants.
Fully supportive and you know alma hawk about watching floor overproduction and oversupply.
We have shortages already and I am well aware that fits resumption of production will be difficult complicated.
They will introduce social discussing in all of the plants and all the supply change. It is a massive undertaking so I'm looking down the road 60 days from now looking at a typical resumption of production I think it's very good.
That they're starting now and I support Oh, the reopening of the plants.
The United States.
And elsewhere.
Well as appropriate I would even done so far since then I think ilan MUSC has a point.
That he's got a he's got a plan to keep his employee safe. He wants that he wants to reopen with 30% live employed.
So even though I don't sell new test was I think the plant.
It should be reopened.
As it rearview mirror doesn't worry me too much if there is a bump in a road I don't see anything we can't manage.
Okay. I mean, maybe just a follow up on that Gpus were reasonably strong relative to the fears given the backdrop. You. Just described mean you you sort of envision in environment, both on the new and used side.
That you can manage reasonably strong gpus, and there's not going to be any degradation and if anything there might be some upside overtime.
In the near term anyway.
I I like your assessment John.
I think we have.
Very manageable situation.
So if I look at the pre young side.
Retail prices are stable.
Wholesale prices the way I think about it or a tracking my cost of acquisition is going down but the retail prices is holding that's very manageable situation now exactly how it's it shakes out I can't say I'm not going to pry locker promise higher.
But it's a it's a very manageable situation and we see opportunity on the new side, where there are shortages in certain international we will adjust pricing upward.
Its nothing as severe as we had when you had the earthquake in Japan and production. Besides stop then where there was a significant pricing opportunity I don't see this because that's what my whole point is it's very manageable.
And on.
Finance and insurance, we already excellent position.
And Joe I think were at record levels, maybe over the tax number.
An exact number but it's north of clinical huh.
North of 2400, yeah, So I think.
Listen I'm, not calling out and improvement, but I think we've got the downside risk in a very valuable situation.
Sure seems like it maybe just one last one.
You shifted gear and us.
Moved away from PPP loans, and ER has gone to sort of further wearing workers I'm just curious what sort of dynamics drove that decision I mean, maybe that's a few people owns were a little bit too restrictive and you got handcuffs on what you may be able to do with the business and if we think about those furlough workers coming back are they coming back one for one or more.
Would you be just structurally more efficient going forward and you might not be hiring all those workers back.
Excellent question John.
So.
Payroll.
Check protection.
Was launched to try to mitigate.
The damage from a avalanche unprecedented history of America Avalanche.
On of unemployment people being put out of work.
And I thought it was a enlightened and inspired almost a European right plan, where you're looking to companies to two despite the circumstances.
To sustain same payroll as the prior year.
So PPP was launched.
With that in mind protecting jobs.
And.
For us too.
Qualify for forgiveness basically.
The vast majority of the money had to go.
Two employees and you either have we either had to bring to 7000 back.
So a company he's or how to bring everybody back and give pay increases where you would make got whatever you had to go back to the same payroll.
You had before now that.
Not something we would have done for the business because it's not affordable, but in the spirit of.
Looking at our furlough to source associates standing and unemployment line center as far as the I can see and not being able to get on their own unemployment. We did it for our associates and it was basically a pass through.
From the government.
In two parts to stabilize the employment situation in America, we were clearly eligible they had suspended to small business Association all around the aggregation and we clearly had not excluded the publicly traded company. So it was an asset that we went forward now government can change is mine.
As happened I've observed than that.
It's administrations and we woke up with new guidelines a couple of weeks later that said basically you can do everything we that you can give all this money to the associates, but we're not so sure we're going to forget you weren't it's all done well that makes apps that that is a nonstarter that one there was no clear path.
Forgiveness.
We're not in a position to.
Oh down that road.
And so we suspended all application then returned whatever.
PPP money, we received thus far which was I believe 79 million something like that.
And said, Okay. We have we have to.
On the business a force for ourselves rationally, where we've protected in insured the company was would be on the other side and participating in PPP put that.
At risk with no clear path to forgive us because I think that's very understandable.
Now as far as.
How I view the number of associates, we haven't who comes back when the here's the way I think about it.
If I go back to March early April our sales were down 50% during that period and we had reduced.
The staffing of the company by 26, 27% something like that 10000 employees.
And we were prepared that could go either way, we really didnt up.
We're prepared to do more <unk> and of course, we were always happy and delighted to manage better news as far easier than managing more vendors. So at this point.
Business as I said is now running around town 20, we bought back a thousand associates, thus far meaning that our staffing reduction is around the same as the business reduction now exactly where there is no predetermine cadence or plan as to when we bring back condition.
Additional employees that is going to be absolutely almost a daily discussion and if I look back 089.
I would observe it was said.
The the reach staffing trailed the improvement in business.
That's the way you have to think about it.
And what other efficiencies and effectiveness.
Around digital is figured out or we come to grips with whether that lead Bakken we hire everyone. When we ultimately have a full recovery in her back well I can't answer that today other than I can say rehiring will trail a the growth of the business.
If I just the simple characterization there is the PDP created undue risk on the grant turning into alone where the furlough. Just gives you a lot more flexibly to operate more quantum auto market basis is that fair characterization. It just seems like there's a lot of risk out there with the PDP loans that people don't realize.
So I'm very good point, John So we actually had a very strong debate within the company about PPP that we were bringing back 7000 associates that we clearly.
Could not afford and did not need.
And we really did it.
Because of the overwhelming unemployment situation the the crisis in the drama.
That these associates offer though faith.
And we did it for them and I said to the board right from the beginning.
Every dollar round PPP, we'll go to associates, we don't need it to pay rent or any other expenses. This is something we're doing for.
For our associates. However, your point is well taken and for the way.
We run a business this is actually more straightforward and normal.
And the PPP route so look if it was a decision we did for our associates. When we said, yes, let's do it.
It was a very clear decision one the one that path.
Two forgiveness was modeled that it was unacceptable risk and as far as running a business, it's more straightforward without TPP them with PPP.
Great. Thank you very much appreciate it.
Your next question comes from Russia dealt with JP Morgan Your line is open.
Hi, Good morning, Thanks for taking my questions. Just just wanted to follow up on a couple of the previous question you know starting with the online initiatives.
Could you give us a sense. So wherever you are with your partnership with room.
Oh, that's stronger asking or how that's changed during this crisis period, you know like how how could it looked like.
When we are out of this you know any material changes or no changes in strategy or anything you've learned through this process that can that can help the company coming out the other side how follow up.
Yeah.
We admire room.
As a company were.
Barry.
It's fine with our investment.
We discussed.
Things between the companies, whether I would say just finished strategic learnings there for either company.
I can't.
Really say other than we are satisfied with our investment that's all lockset today.
Got it.
That's helpful. And then you know all do you have you any aside from just a follow up to John's question.
And you song sense, if you know the one beta savings you're seeing right now on the monkey basis that you can provide a you'll just just to quantify back.
And those are so we can model the rest here. Thanks.
I'm very sorry, the line broke up I did not understand the question did you go we are able to get that monthly savings.
Basically asking about the big et cetera, So I'll airport I'm. So obviously, it's a fluid situation and that we took a series of actions and early April reflecting a business environment that it as Mike indicated we're already seeing recovery.
But the magnitude of savings that we potentially had was in excess of $40 million a month.
If you look across both the store and the corporate operations.
And obviously, we'll manage that in a very disciplined fashion as we go forward based upon the business recover.
Got it that's helpful. Thanks for taking my questions and good luck.
Thank you thank you Stacy.
Your next question comes from our men to serving dishes with Morgan Stanley. Your line is open.
Great you talked about the the improvement you've been seeing here into the end of April and beginning of May maybe you could you have some numbers around maybe that would be helpful. And then also you know where are you seeing the improvement coming both on the sales side as well as to services side, what or whatever.
Looking to.
To what services are people looking to do and you know is it the incentive driving the the sales or is there something else.
And so the sales side is improving.
More rapidly.
And then the customer care side.
Yeah.
I don't have an exact figure for me, but.
I think 20 months 20 is an acceptable working number.
About will be sold.
At the end of April.
The product line is holding up the strongest it's pickup trucks only down 10, 11, 12% we have a severe shortage on it.
No motors.
Silverado, but they've got to double any of the strike and Corona.
The brand is in short supply that's 150 isn't reasonably good supply.
You will notice that the sales in a premium luxury are down.
More than the overall market, but I'm not too concerned about that we have as you know that's primarily a leasing business 70, 580% leasing something like that I.
A significant percentage of that clientele extended their leases a month or two just to see where the uncertainty is going they've all told us are going to be back in the market.
Now on customer care, it's been a central services that we've been performing really keep those who need to be out and about keep their vehicle running there's no question that miles driven.
It's starting to recover as shelter and replace is lifted a the consumption of gasoline is going up and as people begin to move about once again.
We expect a the recovery due to.
Get underway.
In customer care, but as of this moment or sales were only down 20% and Joe what would you say customer care is down.
So far in May in May I, I would say I'd say, it's high Twentys like one I 20, it's not there.
Mm.
[laughter] and then you mentioned you know this being an accelerant for digital what what are some you know concrete actions that you're taking on digits digital side I know you've made the investment of groom, but.
Are you deploying capital are making decisions the to push the the digital side because ultimately it seems like you know finance financing is still the challenge when it comes to a fully online transaction.
So.
Our investment in were room.
Which was 50 million.
Is relatively minor relative to all the nation's investment in digital over the last three to five years.
Significant investment in digital capability, which were very thankful for today and I would say.
This surge of activity to digital.
It was remarkable in very short fearsome and I know I don't think it's going to.
Go backwards at all so we continued investment in our digital capabilities now we have really sound.
Hey, marvelous blend between once a customer does digitally and what we do.
On the telephone what we do in are actually personally or.
Email with the customers that you see our performance around.
Definitely.
We've really found the optimal line there that the customers our lightest they love the products that they that they receive.
I don't see sight line to the finish line as of today and we could have sustained performance in a huge for digital transaction.
There is a lot added value and skill.
That is in our.
Associates processes that Weve developed and built over the decades that are a win win for the company and for the customer.
And I don't see where.
There is I don't know anywhere in the industry where.
Digital pure digital solution can match, what we do.
But we don't need to end up there we have found the optimal lineup and I've said this from the beginning.
Where are you move back and forth between digital and interpersonal winter reaction. So I like where we are we will continue to invest in digital and I think we found the optimal life.
Okay and then my last question around Autonation USA I'm guessing that's probably not at the forefront of your priority list at the moment, but any updated thoughts would be great.
So obviously there.
It was this disruptive for the USA stores as or anything else.
So you you have to say.
That when we pushed out capital decisions or USA decision also.
Got pushed out.
Say that for the entire auto industry that.
Okay.
Manufacturers.
I think.
Capital decisions have to be delayed.
And I told it's like lines are very clear.
And so.
I think that's pushed out the.
Vision point as to when we build more USA stores and as of this moment I wouldn't want to give you a date.
Form inside the stores has been fine.
I have no issues, there, but it's a big decision to build more and we're not prepared to think that at the moment and the situation is pushing up at this.
Great. Thank you appreciate the time.
Your next question comes from David.
Morgan Sir your line is open.
Thanks, Good morning I'm.
Staying with digital Oh.
I was going to ask <unk> do you think post covered people still want to coming in sort of do a test drive are we going to move to a kind of what you already can see on top of website, where you can buy online in five minutes. It sounds like you don't feel that's how the whole industry would move.
But it any more thoughts there. Please let me know, but also does this post kobin world accelerate I moved to no haggle.
Yeah, I think I've said that I think.
This is an inflection point the that isn't permanent change that you're going to need first class digital the anti could be into getting for any business in any industry.
A post koby 19 or in the midst because we don't team.
Oh, I don't care, whether the hotel business, the airline business or the auto retail business.
The issue is.
That you need personalized digital capability.
I'd like to customers and when they choose to actually interact with your business.
Either because you've come to their home or because they've come into a store you absolutely must have provided to have a safe environment and you must be providing your associates sake environment wherever they are interacting with customers either face to face digitally.
Well like.
You're gonna have to provide social spacing.
Different than what you did before and it's it's a new ball game and I don't see that changing we've embraced it going forward and I think we're well prepared.
So with that I'd like to thank everyone for joining us today. Thank you for all your questions I with each and every one of you and your family. Please stay safe stay healthy I would say that I look forward to the reopening of America being gone in a safe responsible way.
And thank you for your time today.
This concludes todays conference call you may now disconnect.
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