Q3 2020 Equity LifeStyle Properties Inc Earnings Call
<unk> CEO, Paul Seavey, our executive Vice President and CFO, and Patrick Waite, Our executive Vice President and COO in advance of today's call management released earnings today's call will consist of opening remarks, and a question and answer session with management relating to the company's earnings release.
As a reminder, this call is being recorded certain matters discussed during this conference call may contain forward looking statements and the meaning of the federal Securities laws. Our forward looking statements are subject to certain economic risk and uncertainty the company assumes no obligation to update or supplement any statements that become untrue.
Because of subsequent events. In addition, during today's call we will discuss non-GAAP financial measures as defined by FCC regulation G. reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are included in our earnings release or supplemental information and our historical SCC filer.
At this time I would like to turn the call over to Marguerite Nader, our president and CEO.
Good morning, and thank you for joining us for our third quarter earnings call Arthur.
Our third quarter results released yesterday showed strong trends are.
MH communities are showing their resiliency through difficult times, we continue to increase occupancy and see high levels of engagement and pride of ownership from our rather than the.
The daily routines that our properties have always been filled with activities. During these times. Our residents had found new opportunities to create safe outdoor activities to continue to enrich their experiences at our properties.
We didn't I mean community, we saw a high volume of home sales an increase in major application and a shift to virtual engagement to view homes and communities.
Every year, we increased new home sales by 42% the sales were concentrated in Florida, Arizona in Minnesota.
Our applications for residency were up 25% for the quarter fueled by an improved online application experience we have seen.
We have seen an increase in conversion from virtual tours and we continue to upgrade the content of our web site to allow perspective customers the chance to view our homes and communities.
We saw increased demand for RV parks during both are traditional weekend holidays as well as during the week our properties have benefited from our customers flexible schedule.
Our online transaction activity continues to escalate in the quarter, our RV revenue through digital channels increased 121% and our sales of online camping passes increased by 56% are too.
Our transient bookings continued to shift to digital with nearly 60% of all transient bookings completed online compared to 43% last year.
Sales of our views have increased significantly over this summer our partnerships with RV dealers throughout the country continue to bear fruit as we engage with customers as they begin their travel adventure.
In the quarter, we activated 6400 trial memberships through the thousand trails preferred RV dealer program, an increase of 15% from last year.
We are attracting new younger customers to RV resorts with our digital marketing.
Analytic show strong demand among customers under 34 years old with 18 to 24 year old showing increases over 300% and 25 to 35 year old showing increases of over 140% in online revenue compared to last year. These.
These trends represent an opportunity to grow in future years by providing an excellent customer experience and retaining these newer customers.
Providing a best in class customer experience contributes to our strong customer loyalty terrific.
Trip advisor recognized or high customer ratings with 76 of our RV resorts, receiving the trip advisor travellers Choice Award and 15 parks, receiving the hall of Fame for five straight years of top customer reviews.
Turning to 2021, each year, we finish our budget process in October and provide detailed progress injections for the following year.
This year because certain line items require additional time to determine the full year impact we've decided to issue our detailed guidance on our January call with.
Dinner and major portfolios by the end of October we will have noticed 48% of our residents for rent increases and anticipate a 4% rate growth in core MH revenue we.
We have had success filling their communities, while continuing to increase rents in line with market conditions for in place residents.
Based on rates, we have set for over 90% of our RV annual customers for the 2021 season, our core RV annual rate rental rate is anticipated to grow 4% in 2021.
These two line items have historically represented over 70% of our overall revenue our seasonal and transient revenue requires more visibility as we monitor the impact of travel restrictions.
I would like to now comment about EUR 2021 annual dividend.
Each year to arrive at a recommendation we review our projected growth in AFFO and our outstanding obligations with a goal of ensuring our underlying financial flexibility. In addition, we stress test our future obligations to ensure we can continue to meet both our financial obligations and customers expectation. This year management plans to make it Rick <unk> recommendation to the board of directors.
Upon completion of the 2021 budget process and intends to use the same methodology to shape that recommendation.
The stress test revealed the strength of our balance sheet, which has been fortified over the years with longer term maturities.
Currently our average term to maturity of 13 years, which is more than double the re sector average we are focused on long term value creation.
Our team in the field and in the home and regional offices have done a great job servicing our residents members and guests I think all of them for their efforts and look forward to turning our attention to our winter season activities I will now turn it to Paul to walk through the numbers in detail.
Thank you Marguerite and good morning, everyone.
I will review our third quarter results.
A brief discussion of the operations update included with our earnings release.
I will close with some comments on our balance sheet and the successful refinancing of our scheduled 2021 secured debt maturities.
For the third quarter, we reported 55 cents normalized FFO per share.
As part of our refinancing activity, we incurred approximately $9.7 million in early debt retirement costs.
Consistent with our normalized AFFO definition and past practice, we've added these cost back in our calculation of NFL.
Our core MH rent growth of 4.3% consists of approximately 3.8% rate growth and 50 basis points related to occupancy gains.
We've increased occupancy 196 sites since December with an increase in owners of 270, well renters decreased by 74.
Core RV resort based rental income increased 5.2% for the third quarter and 90 basis points year to date compared to the same periods last year.
Rent from annuals have shown consistent growth since the onset of the pandemic with growth of 5.2% and 5.8% for the quarter and year to date periods respectively.
The driver of rent growth from annuals in the quarter was increased rate of approximately 4.2% compared to the prior period.
Year to date core resort base rent from Seasonals increased 2.3% compared to 2019.
Our core RV transient business delivered growth for the quarter of 7.3%.
Membership dues revenue increased 2% compared to the prior year during the quarter. We sold approximately 70 400000 trails camping pass memberships. This represents a 24% increase for the year.
The net contribution from membership upgrade sales in the quarter was flat compared to last year sales.
Sales volumes increased almost 20%, while the mix of products sold change, resulting in a lower average sales price.
In addition, the expenses includes commissions on higher volume of camping pass memberships sale.
Core utility and other income was about 6.5% higher than third quarter 2019 the may.
The main contributor to this increase is an accrual of insurance recovery revenue related to losses experience from Hurricane Hanna and he say yes.
Core property operating expenses included approximately $2.8 million, resulting from the Hurricane in July and August and I made landfall in Texas and caused damage in 12 of our properties well you saw you made landfall in North Carolina and affected 40 properties.
Excluding these expenses the main contributors to our property operating maintenance expense growth over the prior year period, where utility expenses, including labor cost associated with sewer water and electric distribution system insurance and real estate taxes.
In summary year to date core property operating revenues increased 3.7% and core property operating expenses have increased 5%.
Hoping and an increase in core NOI before property management of 2.7%.
Income from property operations generated by our noncore portfolio, which includes our Marina assets was $4.1 million in the quarter.
Property management, and corporate DNA expenses were $24.2 million for the third quarter of 2020, and 75 and a half million dollars for the year to date period.
Other income and expenses generated a net contribution of $4.3 million for the quarter.
Decrease from prior year is attributed to income recognized in 2019 related to our loggerheads portfolio acquisition.
Interest and related loan cost amortization expense was $25.2 million for the quarter and 77 and a half million dollars for the year to date period.
This includes the impact of the refinancing activity I'll discuss in more detail shortly.
Before closing with remarks about our balance sheet I'll briefly discuss the operations update we included in our earnings release.
Our properties continue to be open subject to state and local guidelines also.
Certain property amenities remain closed we are welcoming transient guests at all RV communities.
We expect to complete our annual budget process in the coming weeks in the past we've completed our budget in early October and provided detailed preliminary guidance with our third quarter earnings release a signal.
A significant factor in our process that has long given the confidence to provide initial guidance earlier than others and the real estate is the early visibility we have into expected rent rate growth from our core MH and RV annual revenue stream.
On a combined basis. These revenue streams have historically represented more than 70% of our total core revenues are.
Our earnings release provides information about noticed MH rent increases in the rates, we've established for RV sales for the 2021 season.
This information supports our preliminary expectations of 4% rent rate growth from core MH and core RV annual.
Our suspension of guidance continues to be influenced by the lack of visibility we have into other areas of our business, including our seasonal and transient RV revenues.
Just to pay providing performance updates in 2021 guidance in advance of our January earnings call.
Before we open the call up for questions I'll discuss our refinancing activity debt markets and our balance sheet.
During the quarter, we closed on a $386.9 million secured credit facility with Fannie Mae.
Facility has two trenches and carries a weighted average coupon of 2.55% with a weighted average maturity of 13.4 years.
We used the proceeds to repay our 200 million dollar unsecured term loan and our scheduled 2021 secured debt maturities.
We incurred approximately $9.7 million in early debt retirement costs as a result of the accretive refinancing we closed in the first and third quarters of 2020, the weighted average rate on our outstanding debt has decreased almost 35 basis points to 3.7% and our.
Our weighted average debt maturity has extended one and a half years to 13 years.
Current secured financing terms available for MH and RV assets range from 55% to 75% LTV with rates from 2.75% to 3.5% for 10 year money.
We continue to see lenders place high value on sponsor strength and CLS continues to be highly regarded.
Hi quality age qualified MH assets will command preferred terms from participating lenders.
Our cash balance after funding October dividend was more than $50 million we.
We have available capacity of $350 million from our unsecured line of credit we have $200 million of capacity under our ATM program and we have no scheduled debt maturities before February 2022.
We continue to place high importance on balance sheet flexibility and we believe we have multiple sources of capital available to us our interest coverage ratio was 4.9 times and our debt to adjusted EBITDA, sorry is five times.
Now we would like.
Question.
As a reminder, task a question your need to press star one on your telephone to withdraw your question press the pound King Please stand by while we compile the culinary roster.
Our first question comes from the line of Josh What dinner Lynn from Bank of America. Your line is now open.
Good morning, all Margaret Paul Good morning, Paul well.
Hi, I guess I was just curious about the Q R&D development properties, we bought for 16.3 million Sims tend to look at a new news.
New acquisition approach for you.
Curious to hear your kind of more detailed color on those acquisitions and then if you're seeing any changes in the space that might make me, it's easier to kind of do ground up developments.
Sure sure. Thanks, Yes, so yes, we closed on two ground up developments in the quarter. The first one was with actually previously a boy Scout camp and it's zoned for 900 sites and it's it's located in Virginia has water access and it's very close to two of our flagship RV parks, which we purchased a few years ago.
So that it's in a high demand market and Ah we looked at it as a real opportunity to do some some development there in in a market that we really like the second one was in Cape Coral at 500 sites development near many less properties and in a really high traffic locations.
We also closed on five parcels of land adjust adjacent to our existing properties and we you know we generally close on those after Weve had fully entitled the land and then able to build sites adjacent to our existing properties. So that's in line with what we've done in the past.
I think new RV parks and MH communities, they really tend to make the front page of local or regional papers, because there's so few of them.
Over the years, we have looked at opportunities for development and we've seen the most attractive opportunities in the RV space and these two opportunities I talked about are examples of our opportunities and we really find attractive the ability to build an RV park in a well located area with a focus on annual but then having the ability.
I'd to to really a supplement with transient traffic as you build up the annual base I think thats, an excellent use of our capital.
But overall I think theres, they're still limited development of an age and RV and I think maybe it you and I talked about just that the context of the the number of communities out there. There is about 50000 manufactured home communities across the country about 16000, RV parks across the country.
So any new development kind of has a very you know part of handful apart.
Just a handful of parks over the United States is really no impact to supply and at the at the level of the industry as a whole.
Thank you. Our next question comes from the line of Nick Joseph from Citi. Your line is now open.
Thanks, Mark maybe just following up on that what are you expecting stabilized development yield.
Hi stabilization sure.
Sure. So on the one in Florida, and the stabilized yields it about as a six cap in phase two to three years, one in Virginia is a little bit at Florida is a little bit farther along the one in Virginia is like I said, it's a it's a boy scout camp that's just.
Gone kind of no longer a boy scout camp, it's happened zoning, but well we have a lot of work to do in terms of in terms of the building. So I think that's that's a few more years out and the yields would be similar to the Florida yield.
Thanks Ben.
What impact you expect on the seasonal and transient RV business from the Canadian travel restrictions and then how do you think about the ability to backfill any loss of demand.
Sure.
I think you know I think as you talk about our Canadian business I think it's good to talk about the full year and I'll kind of break that down a little bit. So for the full year 2019. There was about we had about $27 million of RV revenue coming from our Canadian customers and our Canadian customer. They generally they generally stay with us in Florida.
Arizona, and Texas, and 50% of that revenue comes from annual customers, but those annual customers, 98% of those customers have their park model or RV on site in the south so that kind of.
Get kind of differentiates the two between the annual and then the seasonal and transient and the seasonal and transient the fourth quarter represented last year represented about 1.8 million of the total.
$1.8 million and we see risk associated with that but you know we're monitoring the border regulations and be able to know more when there's more input on the border regulations and then.
And then as we consider the started the year in the first quarter of 2019, our seasonal and transient revenue from Canada customers Canadian customers, where the proxy.
With approximately $5.4 million. So this revenue as you know is also subject to customers being able to cross the border.
I think maybe Paul can walk you through a little bit and provide some detail about the payment patterns that we're seeing right now that that may help as well, yes, I think broadly next any since the onset of the pandemic that customer behavior I think we've talked about this a bit.
Particularly the seasonal transient customer.
We've seen shorter booking windows weve seen elevated levels of cancellations Marguerite mentioned, the uncertainty related to regulatory actions, including the border closure, but it also impacts just interstate travel.
People are watching the various orders and the the case counts and so forth across the country.
Thats, having an impact on customers decisions as well.
Thank you.
Thank you our next.
Thank you. Our next question comes from the line of John Kim from BMO Capital markets. Your line is now open.
Thanks, Good morning, just a follow up on the transit and seasonal bookings.
A copy type trend in November December versus the 17% increase that you saw.
The labor day weekend.
I'm, sorry, I'm, sorry, John I missed what you what you asked.
[noise], how how have the transit and seasonal RV bookings trended so far for November and December.
I think I think.
I think what what we can talk about without stepping too far into into the guidance plane is what we've seen so far in October.
And we've seen really for the seasonal there is not much to speak of in October because the seasonal that Murray just mentioned that occurs in the fourth quarter really happens from Thanksgiving through the end of the through the end of the year, but on.
But on the transients, we're seeing continued strong demand as we saw on September so far.
So far in the month of October.
Jen.
Patrick adjusted I guess at it a little further color on what we've seen in October.
And the gearing the end of the northern RV.
Season both.
Both the north and northeast perform well are up more than 20% in October that's driven by a number of factors. One is and we talk about this a lot. The weather was relatively good throughout the north for the month of October So we've seen good consistent demand, including in the mid week.
And as Paul touched on it you know when you're talking about Interstate travel.
These customers typically come from the local markets. So you avoid some of those those concerns that can impact other parts of our business.
Okay, and then you mentioned that there is a 300% increase in bookings from basically Genevieve.
Can you break that down as far as the age cohort of your RV customers.
I don't have that in front of me John I can I can provide that off line and I can I can break that down that increase was year over year. So we are seeing an increase in those the younger customer base and I can I can provide that offline.
Okay.
The one time costs that you had during the quarter $9 million of hurricane damage. How much do you think will be recovered with insurance and.
And how much of the infrastructure costs are onetime in nature.
Yes, I think as I.
I mentioned, there's about $2.8 million of expense in the quarter. The 9 million is the total.
Expected loss from property damage and clean up and so forth as we've seen in past Hurricanes. These storms are shaping up to be similar in that there is an expense component and then there is a capital component.
And typically the expense component happens earlier in the in the recovery period, and then we'll complete or is the capital expenditure to restore and recover I think that weve realized for the most part in the expense and the revenue accrual that we booked.
The amount of.
Amount of network.
Net recovery that that.
I'm sorry, the net expense that we otherwise would expect in these stores.
And can I ask what the bad debt expense was for the third quarter and what you expect for the remainder of the year.
In terms of the overall I mean, just broadly our delinquency as we've talked about really hasn't hasn't changed as we step through the pandemic what.
What we've seen historically is our age delinquencies are about 50 basis points. So we tend to any given month with somewhere between two and 3% of our rents.
Rents uncollected and then over the next 90 to 120 days, we continue to collect those rents and land in a place where the age delinquency as about 50 basis points because.
Because that has remained consistent what we've seen generally speaking is.
That level of expense flowing through our income statement. When you. When you think about just on a percent of revenue present, a revenue basis.
Huh.
So how's that compared to prior years I just noted the footnote that you had this supplement versus prior years.
Yeah. The footnote actually is is simply clarification of the GAAP presentation on our income statement of rental income.
We're providing a disclosure so that a reader of our core operating statements are non-GAAP measures can trade through to our rental income on our income statement.
Okay got it. Thank you thanks gents.
Thank you. Our next question comes from the line of Samir Khanal from Evercore. Your line is now open.
Good morning, Marguerite I'm, sorry, if I missed this but can you provide color on pricing or cap rates on when the RBS, but that you acquired growth.
Sure sooner.
So the two properties both properties kind of going in cap rate of four and a half to five cap and with that I think some some opportunities on both sides to increase those yields with under our management.
Okay, and then I guess sticking to the transaction side.
You know just kind of curious to know your views on.
On on on the Marine business right I mean, considering the recent announcement of some of your peers.
I was just trying to get an understanding of kind of what your appetite is to grow the platform that you have today.
And your business sure. So the marine industry is really highly fragmented and I think as more investors entered the space you will see that the owners of the individual assets will kind of have more bidders coming to their doors books.
We have developed great relationships in the industry and we will continue to work through with those owners towards transactions.
From our perspective really the key for us is to own high quality, well located properties and the quality of the cash flow and the continuation of the cash flow is important to us as we bring bring on a new line of revenue to sit alongside our really prove and then very predictable cash flow streams of MH and RV.
Okay.
Okay and is there a way to if you go back to the time you have acquired the marine as it's what's.
What's been sort of the operating performance from an NOI perspective since the time you've held that took today is there a way to give us some sort of idea.
Sure So I think.
As we entered the business in 2017, and I think what we talked about it with a going in yield of about six cap and that's essentially how they've performed over the last two years. So they performed well for us. These.
These are assets that are highly annualized asset.
Assets real.
Really long term long term revenue and it's been it continues to be sticky.
Got it okay. Thanks, so much thanks to me.
Thank you. Our next question comes from the line of John Palau scheme from Green Street airline is now open.
Great. Thanks for the time I wanted to go back to my next question on the Canadian border being closed.
The worst case scenario, where the border remains closed through the spring what percentage of that season on trend in Canadian revenue do you think you can get back through domestic demand.
Reasonably yeah, I think it's a it's a difficult question for us to enter right now we've kind of framed what the what the risk is relative to the Canadian traffic, but I will say that we've seen we certainly see increases people's interest in coming to Florida from the United States inside the inside of the.
I'd say, so it's difficult to frame that as as we are able to and able to provide more information we would do that but we don't have that right now John.
Okay, I understood, but just just logistically lining up that demand I mean, I'm not asking for a pretty precise estimate but are we talking about like you can reasonably get 20%. That's an add back or are 80% just logistically how difficult is it to.
Got that lined up and get the demand in the door.
I think it's difficult to answer the question because I think we have to figure out how the how things are trending from a health perspective, and and I wouldn't want to guess, how how things are going to go there and and as the winter progressed as there are things going to get worse are they going to get better. There is there's a lot of.
There's a lot of uncertainty with respect to that.
Obviously throughout the country, but I think that what we've seen is shorter booking windows. So people are saying Oh now I have an opportunity I I have kind of a clean bill of health I feel good I feel like I can make this this decision. So people are making their decisions and they are saying I want to come down today I want to come down tomorrow I'm not comfortable.
Our customers are saying I'm not comfortable booking a month out because I don't know, what's going to where we're going to be a month from now. So we are seeing those should go shorter Burke booking windows, which makes it difficult for us to project.
Okay understood.
And then Patrick could you give some color on how the process. This year went with the.
How you get to that 4% annual rate increase on the R&D side.
Is it an exercise of hey, we're in a recession.
Push as hard or is there some sort of leniency for for lost days in the in the parks. This past year. So how did basically the on the ground dynamics in the pandemic impacts the 4% rate increase.
Preliminarily planned for this coming year.
Oh, well going into its obviously there.
Obviously, there was a for US operationally and then for all of our customers is both RV and MH. It was just an understanding of how this was other cobot process was.
Starting to play out.
On the MH side of the World as we mentioned on previous earnings calls, we suspended late fees and evictions on the RV side of the world.
We did offer some credits for some of our customers and our northern properties on the annual front.
But by and large across the balance of the portfolio as we went through.
Sizing of what rate increases, we are going to be year over year. It was a process that was very much similar to prior years and we've seen a consistent demand profile across MH and RV as we.
As we issued those rent increases I'm certainly there were some discussions around the potential impact.
Coated but those were small portions of our discussions and our our process working through both MH and RV was a pretty good just in that.
Pretty consistent having dialogue with our customers and and the rent increases were able to be implemented and were for the most part Oh, well received and one of the things John that we benefited from was I think we mentioned it earlier on the call is a mild autumn so far so our customers are annual cost.
Summers were able to enjoy while they got cut off at the beginning of the season, they've been able to extend the season and so that's been that's certainly been helpful that they've been able to get to kind of camp through September and October.
Okay makes sense and then just one follow up there on the RV side in the annual RV side within the portfolio.
Yes, what's the what's kind of the weakest market our rates on the annual RV side decline in any markets could you give us a sense for the goalposts are around that 4% average.
Yes, I mean its a.
See the strongest markets are which you'd expect is the core of our portfolio in Florida, California, and Arizona, we saw.
Really pretty consistent strength throughout the north region as we manage through the summer season, and you know I think with the with the impact of coded.
Staring to see that consistent demand profile. So I think core markets in the north near major Metropolitan areas Murray just mentioned our acquisitions in the greater Virginia market. That's.
Thats about an hour outside or Richmond about an hour and a half to two hours outside of DC very strong locations. There has been a strong across the board.
You get into some secondary markets like called South, Texas Southerners.
Southern Arizona Umo market those tend to add more moderate rate increases and our.
Our core markets.
Okay, but rates aren't falling anywhere.
No.
Okay. Thank you well thanks for the time being [laughter]. Thanks, John.
Thank you. Our next question comes from the line of Todd Stender from Wells Fargo. Your line is now open.
Hi, Thanks, with the two development projects acquired in the quarter, coupled that with the five land parcels. It just.
It just shows a little more risk appetite, we usually see from you guys.
Are these the types of opportunities you see all the time and this is just a timing issue just because you closed all at once maybe just expand on maybe the growth trajectory that you're seeing sure and with respect to the land parcels adjacent to our properties that we are always looking at land around our properties. We think thats, a we think thats just an excellent execute.
And so it just so happened that our are fantastic acquisitions team was able to to close all of those in the quarter, but those are deals that we've been working on for a while and we continue to do that so there's there's no real no real change there with respect to the two other deals and.
The boy Scout deal is a deal really that that just recently came up and the ability to to get into that space with a in area that we are located in really appreciate the area. A lot that was something that just recently came up and we were happy to be able to to close on that transaction.
And the Florida deal is a deal that we've actually been looking at for a long time and just wanted to appreciate the best entry point and we thought it was a good time now and so that was that is something that we've been looking at working and working on for a while but the team did a great job in pulling that altogether. This this quarter.
For something to convert from a boy Scout camp to RV can't be zone, just yet right I mean, it's not quite residential how do you look at the entitlement process. It actually it actually was an RV Park then it became a boy Scout camp and so it has had some great amenities and.
And your buildings and those types of things and and but it was a it's zoned for 900 RV sites.
So that's what that's was really attractive to US. Okay. That's helpful. Thank you and then just back to the expansion sites what are your return expectations.
Jim you are buying them at Jason to existing communities. There probably highly occupied you can drive rents and lease up periods are quite short, maybe just kind of give some return expectations sure.
Sure some of them are adjacent to our RV sites, but maybe Patrick can walk through some of the the numbers associated with it yes the of the.
Of the.
Of the five parcels.
Three of them are adjacent to our RV properties and its a.
And it's a lion's share of the sites that are coming from that that subset of acquisitions.
Yeah, I would expect the yields on those to be in high single digits.
They are in a really strong occasions, when outsiders outside of San Francisco, One is coastal North Carolina.
You referenced quick lease up periods, we just had a completed at 56 site expansion on the property and coastal North Carolina.
And had a.
On a waiting list and advanced list of interest and were able to lease up by more than 50 sites very quickly and fill that section. So.
We view the next phases as a very.
Opportunistic opportunity for us.
That's great just one last one if you don't mind the Marina dunes acquisition, So that's in Monterey County, and.
Any rent controls you certainly see rent controls and Santa Cruz area, just more an age, but what kind of constrictions, if any would be on an RV park, along the coast of California.
I would now like to say, but what would happen in the future that said it but right now there isn't there isn't rent control on RV. So it isn't a factor.
Got it thank you Ben.
Thanks Todd.
Thank you since we have no more questions I would like to turn the call back over to Marguerite Nader for closing comments.
Thank you all for participating the call today, we look forward to updating you on the next call stay well.
Ladies and gentlemen, this concludes today's conference call. Thanks for participating you may now disconnect.