Q2 2020 Rollins Inc Earnings Call
Greetings and welcome to the Rawlins second quarter 2020 earnings Conference call. At this time, all participants already listen only mode. A brief question answer session will follow the formal presentation. If anyone should require operator assistant store the conference.
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As a reminder, this conference is being recorded it it's not my pleasure to introduce your host Marilynn Meek. Please go ahead.
So I care by now you should have all received a copy of the press release. However, if anyone that's missing a coffee and would like to reshape Wong. Please contact our office actually want to a true seven grew seven or six I will turn jewelry late and make sure you are on the company's that's progression last there'll be a.
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Cast at Www Dot Lion Red Dot com at a replay will be available for 90 days on the line with way today. It's worth spending are very Rollins Rollins <unk>, Our Chief Executive Officer, John Wilson, Rollins, President and Chief operating Officer, Eddie Northen.
Senior Vice President Chief Financial Officer encourage her management will make some opening remarks, and then well open the line for your questions. Gary would you like to began.
Yes, Maryland, Thank you and good morning, we appreciate all of you joining us for second quarter 2020 conference call and he will read our forward looking statements and disclaimer and demos account.
Our earnings release discusses our business outlook and contain certain forward looking statements. These particular forward looking statements and all other statements that had been made on this call. Excluding historical facts are subject to a number of risks and uncertainties actual risks may differ materially from any statement, we make today.
Please refer to todays press release, and our S. You see filings, including the risk factor section of our form 10-K, but a year ended December 31st 2019 for more information and the risk factors that could cause actual results to differ.
Thank you Eddie.
Before talking about our results I want to express how concerned.
And focus we'll do our regarding the spread covert 19th we know many of you are experiencing the is the expansion.
<unk> communities and we hope you and your family are doing well and remains safe.
Now back to our second quarter.
Revenues for the quarter grew 5.6%.
To 553.3 million compared to 524 million for the same quarter and 2019.
Net income rose approximately 16.5% to 74.9 million.
Or 23.
Free 23 for diluted shares.
Compared to 64 million or 20 per diluted shares.
For the second quarter last year.
Revenues for the first six months to the year.
<unk> dollar 1 billion Oh for.
An increase of 9.3 compared to 953 million.
For the same period last year.
Net income for the first six months increased 8.9% to.
Hundred 18.1 million.
Or 36 cents per diluted share.
Compared to 33 cents per diluted share for the comparable period last year.
A 9% and cruise.
Turning to our business lines results in a quarter residential.
Pest control grew an outstanding 14.8%.
Commercial however, excluding fumigation was down 5.2%.
We have offset some of those commercial revenue shortfalls with termite and ancillary service, which was up 7.3%.
And he will provide greater detail around these numbers.
[noise] during what we consider the most challenging time in our company's history.
Employees efforts and contributions have been exceptional in every regard.
We couldn't be more grateful and proud of them and what they've done.
They truly are most valuable asset.
We continue to be aware and involved.
To ensure their safety in good health.
They are provided with personal protection as needed as they go about servicing our customers.
Most of our technicians are working remotely.
And avoiding spacing issues that would exist are coming into our branch offices.
Majority of our home office and call Center employees are also working remotely.
Our commitment to save practices involves our valued customers is well.
On the plus side most of our residential customers have been at home 24, seven and they're becoming even more conscious of their home and in some cases, the key to protect their family and property from on a test.
Additionally, as family so Florentine money, we're spending more time and are yours.
Recognizing the need for mosquito control.
We are benefiting from a high regard trust and confidence that our customers have in our brands, which is in part responsible for our fast growing pest control revenue and are gaining new customers all at record setting rates.
Before turning the call over to John I want to know what we were pleased with the results for the quarter. We continued to face the challenges of the pandemic and the unknowns that go with it.
As a result, we review and adjust our activities and policies routinely.
Help us better address the impact of co that 19.
As I mentioned commercial pest control. Unfortunately has been more impacted by the virus and its related economic circumstances.
However, we've been narrowing the revenue shortfall gap.
Each month since March.
Anecdotally, we were seeing a growing realization that many businesses that they can't shut down pest control services for an extended period of time without having in the <unk> incest station consequences.
A worthwhile offset to these commercial pest control challenges.
Has been our other brands and introduction.
All of our Disinfectant service Fido claim.
As a result of this new service development prior to the pandemic, we had the ability to road well I related sales and service protocols quickly.
Vital clean is gaining traction and we would expect it to be more significant contributor to our commercial revenue going forward.
Let me now I'll turn the call over to John who will provide more details on these aspects of our business John.
Thank you Gary and good morning, I would like to Echo the commentary Gary made earlier about our team members.
Common theme worldwide was there unbelievable response to this pandemic and their commitment to their customers throughout this event.
As the pandemic started we saw firsthand the trust that our customers have an are highly reputable brands and service professionals.
Additionally, we quickly moved to outfit our field teams with personal protective gear that helped keep them safe as well as give our customers confidence in our ability to service their pest needs responsibly.
Without the response, we received from our outstanding team members our customers would have been left unprotected for many insects and wrote it cost health threats.
Thank you all very much for what you do.
As we noted last quarter Orkin in many of our other brands are now offering a disinfection service, which quickly and thoroughly eliminates a wide variety of serious pathogens.
Comprehensive disinfection is imperative to keep in and establishment, a sterile as possible and disease free.
During the second quarter, we were very delighted to see the positive reception this services receiving from our commercial customers.
I was especially pleased at a wide ranging movement from our field teams to provide this service grottoes to hundreds of first responder locations police station is far houses and hospitals.
As the economy slowly opens sooner and more commercial businesses begin WAPA welcoming back their patrons for indoor dining shopping.
Or as guests in their hotels and as their employees go back to the back to the various workplaces, we expect the demand for vital cleaning services to continue to grow.
We're pleased with the progress thus far and very excited about the potential for this opportunity.
Our call centers were very busy during the second quarter as reflected in our increased residential sales.
The record book for performance was completely rewritten is our inbound telephone sales effort replaced seven of the top 10 sales days in our history.
From what we are currently experiencing we're optimistic that these results will continue into the third quarter.
As July performance certainly reflects that as the remaining three top 10 sales days have been replaced.
Last we continue to expand our company's presence both in the U.S. and globally, having made second quarter acquisitions in Australia and the UK.
On July one we announced one of our Australian subsidiaries had acquired the largest independent pest control company on Australia.
Pest control.
This acquisition solidifies Rollins national coverage in Australia.
Adams past founded by John Adams, and established a 1944 has expertise in all aspects of journal pass and wildlife control and as the market leader in the greater Melbourne and Adelaide areas.
And the United Kingdom, We also acquired two environmentally friendly companies Albany, Environmental services based in Central London.
And bad Bank Environmental services NSX.
This these latest acquisitions bring our presence to seven companies covering all the UK.
We're very pleased to welcome these very fine companies and their teams to the Rollins portfolio best businesses.
Ill now turn the call over to Eddie.
Thank you John.
Our press release on July 7th gave you some insight as to what we knew at that time related to the impact of covert 19 on our business.
Today I'll share some details on our Q2 actual results and some additional insight to what we know today that will impact future.
During the entirety of second quarter, our operations have remarkably navigated all that we as a society have dealt with related to the economic and help impacts on the virus.
Additionally, our non field operation group successfully switch to a remote worked model and did not Miss a beat with their support.
As you can see from the outcome their collective results and efforts have been outstanding.
From a reporting perspective. Please also keep in mind, we lapped our initial Clark acquisition on May 1st and we will see much more normalized financial results for the quarter and the foreseeable future.
For the quarter, our residential pest control and termite service lines showed growth and key to the quarter included higher material and supplies costs, which included the purchase protect a personal protective equipment.
Successful cost containment implemented to drive margin improvements year over year.
And provision set up for potential a commercial customer bad debt.
Looking at the numbers to second quarter revenue of 553.3 million was an increase of 5.6% over the prior year second quarter revenue 524 million.
Income before income taxes was 103.5 million or 19% above 2019.
Net income was 75.4 million up 17.2% compared to last year.
Our GAAP earnings per share were 20 to 23 cents per diluted share.
EBITDA was 126.9 billion and rose, 16.4% compared to 2019.
Our Q2 numbers have begun to normalize again as we lapped the initial Clark acquisition in the quarter.
The first six months revenue of 1.0 for 1 billion was an increase of 9.3% over the prior years first six months revenue of 953 million.
Income before income taxes was 158.9 million or 11.1% above last year net income was 118.6 million up 9.3% compared to 2019.
Our GAAP earnings per share were 36 cents per diluted share.
EBITDA was 206.1 million and rose, 13.6% compared to 2019.
As we stated on our Q1 call we began aggressively purchasing pp any in March and April this along with the transition to new more diversified vendors impacted our materials and supplies costs between two and $3 million in Q2 and will impact the business in a similar manner for the.
Remainder of the year.
Let's take a look through the Rollins revenue by service lines for the second quarter.
Gary reviewed our total revenue increased 5.6% included 3.1% from Clark another acquisitions and the remaining 2.5% was from pricing inorganic growth.
In total residential pest control, which made up 47% of our revenue was up 14.8% commercial pest control ex fumigation, which made up 33% of our revenue was down 5.2% and termite an ancillary services, which made up approximately 20% of our revenue was up seven point.
3%.
Also of note our wildlife services were up strong double digits, yet again this quarter.
Again total revenue less acquisitions was up 2.5% and from that residential was up 10.3%.
Commercial ex fumigation decreased 7.8% and termite and ancillary grew by 5.5%.
As John mentioned in his remarks, but I also want to recognize our call centers that made the transition to working remotely and then went on to set numerous revenue and sales records, which helped drive our residential growth.
But Gary and John discussed the trust of our customers during the quarter.
Our investment in PPD also helped our customers to show trust and are well known brands.
Seeing their technicians were salesperson in full ppt gave a comfort that we also had the customer safety top of mind.
Our feedback from customers shared on our NPS score for our residential product showed 2.4 percentage points higher than last year, which included a new covert 19 category.
This data was further supported by significantly better Google reviews, and Facebook recommendations.
Marketing has supported our ops very well to gain these insights.
In total gross margin increased to 53.8% from 51.7% in the prior years quarter.
The quarter was positively impacted by or lower salary expense in areas of company furloughs layoffs and salary reductions as well as lower fuel expense and continued improvements from our routing and scheduling initiatives.
Additionally, materials and supplies were up as discussed earlier.
Depreciation and amortization expenses for the quarter increased 1.8 million to 21.9 million an increase of 8.9%.
Depreciation increased $1 million due to acquisitions vehicles acquired and equipment purchases, while amortization of intangible assets increased 754000 due to the amortization of customer contracts from several acquisitions, including Clark.
Sales general and administrative expenses for the second quarter increased 9.4 million or 5.8% to 171.3 million or 30.9% of revenues, which was flat to last year.
The quarter produce savings in salaries and benefits lower fuel discretionary savings almost offset with a higher reserve set for our anticipated bad debt, primarily from our commercial customers due to covert 19.
Our commercial business is a mirror or to the general economy around the world.
While many of our commercial pest control customers are paying at a slower rate the normal they are still paying.
Based on what we know at this time, we feel that we have adequately reserved for those customers that may not be in business on the other side the pandemic.
Our cash flow continues to be strong into at this time, we have no changes to our capital allocation plans.
As our top priority, we have continued with our M&A activity around the globe.
As John mentioned, we completed several acquisitions in the quarter and have plans for more in the future.
During the quarter, we more aggressively pay down our debt and are now on track to have this retired in late 2021.
As for our cash position for the period ended June Thirtyth 2020, we spent 56 million on acquisitions compared to 410.1 million. The same period last year, which included Clark.
We paid 65.5 million on dividends and had 12.4 million of Capex, which were slightly lower compared 2019.
We ended the period with 134.8 million cash of which 73.2 million is held by our foreign subsidiaries.
Before I close I want to share that we have released our first ever sustainability report for 2019.
We've taken the opportunity to highlight some of the things that we have going on in areas of the environment social and governance.
The report has been posted on our website and we look forward to building on these areas as a company as we move through 2020 and beyond.
Yesterday, the board of directors approved a temporary reduction of the regular cash dividend to eight cents per share that will be paid on September 10th 2020 to stockholders of record at the close of business on August 10th 2020.
Gary I'll turn the call back over to you.
Thank you Andy.
Happy to take your questions at this time.
Thank you we will now be conducting a question and answer session.
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Our first question comes from Tim Mulrooney with William Blair. Please go ahead.
Good morning, everybody congrats on a nice quarter in these difficult times.
Thank you for that.
Yeah.
You know given how much is going on lately I have plenty of questions about the quarter, but something else came up recently that I wanted to get your perspective on so here goes.
A major lawn care provider recently announced that they're getting into the residential exterior pest services.
Given how well residential pest has held up during the pandemic are you seeing that more often other service providers encroaching into the pest control space do you view. This as a competitive threat are you not concerned any thoughts you have on this issue would be greatly appreciated.
Yes, so I guess, what I would say is that we've seen through the years and Gary can share is 50 plus years of what he's seen that's.
Good getting in and out of this space over time.
You know residential continues to grow at a at a very happy rate, but at the same time, it's a very fragmented market is as you know we have a very healthy market share and other other large players also have a very healthy market share, but there're a lot of other regional and mom and pop players that are part of this market as well I know John has had some.
So interaction with different companies as well so John if you want to share something and maybe Gary share would you seem to have yeah sure.
Thank you Eddie.
Tim we've seen.
Sort of an evolution with trugreen as their non compete with Oh with Terminix as sort of expired go from launch to offering tick in fleet services to mosquito.
And now you know what Theyre offering is essentially outdoor residential pest control outdoor outdoor only.
And and so the relationship what the technician.
And the customer is a struggle a cross selling those customers is a real struggle.
I think if if that were easy to do servicemaster would still own both brands and they and they would have been more successful itself.
Cross selling those services, so while it's certainly bears watching.
You know, it's a tough slipped so we'll see what well see what they do.
Oh.
Many of you may know that we were like the none number three lawn care company in the country.
And we had a decision kind of move and then the other way.
Just a felt like the lawn care business would be under more scrutiny.
The fact that.
More regulatory pressures were existing and.
And we just didn't see the go growth pattern.
Oh and margin pattern equaling pest control. So what we did is when we got out of the business.
He has ramped up our acquisitions and ramped up.
Speed and our and our revenue.
Yes, that's going to be a challenge.
For them to do what they say nothing it's hard for the guy that doesn't have to do it.
[laughter], they apart and they apply to us get added.
But a in a week we welcome.
Anytime a competitive comes in that that has big prices. It just makes our job easier.
Got it. Thank you for that perspective, everybody that that's very helpful. As as my follow up.
I'll I'll ask one question about commercial past, Gary you mentioned something that I thought was interesting you said you're narrowing the revenue shortfall gap each month since March is another way for me to interpret that is to say as you move through the quarter the declines became.
Smaller.
Each month. So April was down the most may was down last June was down last the in July as down even less than June and am I reading that right away it Tim I'll start and the like Gary share obviously with what he wants to what do you want to say, but you were I mean, we're really going to be the mirror of the economy in general.
So I think in March going into early April is when the majority of the economy was completely shut down and I think as you saw pockets begin to open up and you began to see.
Commerce in hiring began and some of the stimulus checks and get into People's hands, I think that made people make different decisions on things and I think you've kind of seeing the ebb and flow of course of that is and things are starting to kind of tighten up again, but I think incrementally as things got a little bit better on a little bit better.
We saw that on the commercial side as well.
Thank you.
You want.
Yes, I would just for a minute.
[noise] we.
As I said before you know we we've been in a business we think that.
That is different growth patterns.
In lawn care than an pest control.
But we see what we're seeing is more of our commercial accounts, especially in the food related industries realize that they can't defer their pest control indefinitely and.
That's one of the motivations of them coming back.
Because.
They had an experienced typically of.
Large and says stations and.
And that's that's one of the things they cannot do without pest control than definitely and they've got health Department.
Attention.
Naturally and so we really think that though the we see him coming back, but we think they'll continue to come back.
Great. Thank you everybody welcome.
Our next question comes from Seth Weber with RBC capital markets. Please go ahead.
Hi, This is Emily Mclaughlin on for stuff. This morning. My first question is on the margins. They were clearly very strong this quarter can you frame growth how much that reflected the temporary cost actions and what will come back with volumes as they improve and I know you called out routing and scheduling enhancement of the benefit anyway to quantify that.
But I would I would say a couple of things you've won.
If if this event had to occur if the virus had to credit pandemic had to occur from a business standpoint.
It was the best possible time for us as an organization, we had not hired for our peak season, we were just starting into that at that point in time. So it enabled us to really be able to go through and quickly aligned.
Payroll side as best we could and then.
John and team as well as here here at our here in our home office.
We made some some difficult decisions and made some cuts to be able to go through and and be prepared. So if if if in fact this were to be a lot worse than than what at least what it's been so far we feel like we were prepared from apparel standpoint, and discretionary standpoint.
And as we move through time and as we've seen some of the business come back and as we've seen pockets.
In some areas flourish, especially on the right in the residential side, we've adjusted the payroll based on that so.
We continue to manage on the discretionary side varies very closely and we'll continue to do that we'll continue to monitor that.
I've stolen my boss is saying that there's still more unknown unknowns at this point in time, so staying very close to that to make sure that we are that were appropriately.
Managing them on the cost side will be something it will be the will have a clear focus on and John and team across all the brands have have done that and of course, the commercial operations have been the most impacted our brands that are that are predominantly commercial but we have a lot of brands that have both residential and commercial and want to cases termite.
Okay, and then Emily if I may add.
We got a pretty good indicator over the last two weeks in March that our commercial business was going to be most heavily impacted and.
Whereas residential and our termite business was what's going to remain strong. So our people were able to laser in on the commercial side of that business and then and then ill and react very very quickly and then and then further to that as we furloughed. Those people you know we maintain them on benefits.
And as as as various circumstances happened, we were able to recall them and you know and put them back to work and make them productive right away. So so our teams in the field did a terrific job reacting and and as Eddie said, we hadn't really shifted into high gear quite yet on our hiring for the seasons. So.
Those factors where it play.
Okay. That's helpful. On just a quick follow up on vital clean I know, it's still early days, but is there any way to think about the revenue in the margin contribution in the quarter and what the take rate about offering is with the clients better reopening and if it's helping me when new customers.
So so we're not going right, we're not gonna break that out we don't we don't break any other pieces out like that I'll say that what we are see we're pleased with the growth that we've seen it is for a period of time.
What we're seeing as a couple of different things one if customers have some sort of incident at their location. There typically much more open to quickly move forward and get that in place.
And then as other places are fully ramping up.
So restaurants, instead of being takeout and delivery now having seen it inside seeding.
Those are the types of places, where we've seen much more of a need and as the economy continues to move in that direction.
We'll see good opportunities, but it's it's been a great cross sell for us.
John team again hats off we're able to get the product product launched to get the sales people trained.
Technicians fully trained and for our procurement groups it yet the to get the product into the hands of our folks.
Very short period of time has been very positive. So it's another trust point for our customers that we allow them to be able to run their business by us a supporting them and just takes one more warrior off of their play having to do with this whole situation.
Okay, great. Thanks, I'll leave it there.
Our next question comes from Berio quarter Lachey with Jefferies. Please go ahead.
Hi, everyone. Thanks for the time.
I wanted to drill a little further into the commercial business and just what you're seeing from commercial customers right. Now have you seen any bankruptcies for from that business that could potentially impair part of it obviously I know you lobbying the disinfectant business that we're going to offset some of the lost revenue there and hopefully the commercial.
Comes back but.
Just wanted to see I guess.
What do you expect longer term, if they're going to be a partial impairment of the commercial business longer term.
Obviously, you'll gain some new commercial customers.
The.
The economy rebound, but love to get your thoughts there.
Well I don't think anybody has the full crystal ball on exactly what the economy is going to look like from Q3 Q4 moving into next year.
Theres no question that there will be bankruptcies that will come out of this.
We've seen some of those already we we at the same headlines.
That you have.
Having to do with major franchise groups that have gone bankrupt so restaurant chains.
Some retail stores and things like that when you don't have foot traffic and your and your shutting down of course, they are having to deal with with everything dealing with that.
So we are dealing you know we're dealing with that we're staying close to those customers.
I did mention in my in my prepared remarks that we have set aside a reserve for what we feel as appropriate.
Based predominantly on our commercial customers and that's really where we're seeing the impact at this point residential we're not seeing an impact at this time, having to do with a concern with that but.
We're staying close to those two large customers to try to help mitigate whatever we can and also work with our long term customers that we've had relationships, where we want to we want to help them to survive. This as best we can and we're going to work with them as appropriate.
And we'll take it will take the needed steps from there.
Great and then just one more now I'll turn it over obviously you guys have had great strength and residential and congratulations on that but I guess just.
I think it's obviously being driven from from the work from home dynamics, but I guess just are you seeing anything it's a little deeper down below the surface that we're not seeing is there anything that can be causing maybe a shift there are a step up in the long term trajectory of the residential growth rate.
I would I would point to two things I would point to one the continued growth of our mosquito product.
If we go back two years it could go back three years ago. It was roughly 1.7% of our total revenue.
Now, it's it's grown to 2.8% of our total revenue, which again is not not necessarily material at this point in time, yet, but the growth rate has has been a very strong over now going on a four year time period, and I think if you were to ask or ask our folks. They would believe that we have a good opportunity to grow this product for many.
Years to come.
It's a great add on its a highest protection service that we have.
Once people habit. They are they know that their their lifestyle has changed so I think thats. One thing that's going to continue to help us drive on that residential market when cut win win when customers have more than one product if they take more than one service from us their likelihood of staying with us doubles over that time period. So.
If they were only up pest control customer and now we add on mosquito to that it doubles their average time, if they stay with us. So when we have less less turnover from a customer standpoint, that's going to help us continue to make sure that we're growing.
As we moved to the future and then the second point that I would make.
Would be what we're seeing as far as a shift of the need or want from services from the newest homeowners. The Gen X folks that are that of the newest homeowners that are out there the millennials that of the newest homeowners that are out there.
You know they gravitate kind of stereotypically seem to gravitate more towards services paying for food delivery paying for things like that and we believe that this.
Is that we offer are also going to potentially fall into that category and we're seeing a good take rate from the from the newest homeowners that are out there.
If I could add one thing.
We've been.
Investing quite heavily in technology and one of those areas in particular is provide the customer more ways that they can pay us.
And you know before we hit the quarterly customer and that pay a paid at the end of the previous quarter and now they can pay bi monthly.
So theres theres other ways that they can pay in this been highly acceptable and.
I think it made a real good comment about if if our customer has multiple services and we call. It bundling. So typically that starts when they're sold.
And.
That's that's helped a lot as far as customer satisfaction is concerned.
Great. Thank you so much.
Once again, if he would like to ask a question. Please press star what are your telephone keypad.
Next question comes from Michael Hoffman with Stifel. Please go ahead.
Thank you very much appreciate the time.
It's like to try and thread in some of the previous questions, maybe tease out a little better clarity.
And somehow asked two questions in the turn into 10 right.
Gary your comment about vital clean is I think what you were trying to say is even if I'm not open yet, but I know I'm going to be a better start the pest service because it's we're you know you're getting in Penn station that was the point not quite a clean I meant the.
Well, that's part of vital clean, but but is that part of your comment about commercial is that some or even doing the past service, even though they're not open yet, but they expect to be open that was part of what you were indicating because of the.
Well part of that of vital claim that the.
It is taking place right now.
As a more and more companies are coming back.
And they.
No read about the dangers they know more about the dangers of the virus and so forth and they also from a PR.
HR point of view.
You know they want to be able to tell their employees, what they're doing to maintain could have practice. So.
That's been a a wonderful factor as far as.
These this past quarter and it will be.
Beyond I mean, if that.
If the experts are ready and are correct to them, we should be seeing a continuation of this group of customers.
Okay, and some customers restarted past without being back open again because of your infestation comment.
Yeah, I think Thats I think thats, what weve seen at the time had okay.
That's what I was trying to understand better Okay and then on June Thirtyth, you all filed a 13 be with regards to than the original trust.
And talk just dissolve that trust and there's a distribution.
Are those distribution is done and are there any restrictions on those shares with regards to how they can be traded or not or can having redistributed them. All those shares are those individual smaller trust now allowed to do whatever they want what the shares.
Michael There is no no material change this has been updated multiple times.
Throughout the years and just an update that was needed for for the most recent set up that they have.
Okay that didnt answer that question about trading restrictions on the shares if I did say that you go back and read if that that I did say that that there were no material changes. This was just an update.
That they they've done periodically overtime.
Okay. Thank you.
Yeah, no further questions I'd like to turn the floor over to Gary for closing comments.
Right.
Thank you.
I want to thank you for participating.
Still unfortunately.
Theres more.
We don't know than we do know I think most of the will agree and just following the monthly dialogue in the spike.
In various.
Bonus that are impacting.
The disease and.
What we.
We meet.
We clear every other weekly a key management people to evaluate the success that we're having and different aspects of.
Of our defensive and offensive policy and I didn't know you're going to quote mothers more known in all right. So good I had the borrower uniques copyright person [laughter].
But thank you for your support during these challenging times and look forward to speaking with you on or next call. Thank you again.
This concludes today's teleconference. You may disconnect your lines at this time and thank you for your participation.