Q3 2020 Consumer Portfolio Services Inc Earnings Call

Dead dead dead good day everyone and welcome to the club in Port Folio Services twenty twenty third quarter operating results conference call today. It's call is being recorded before we begin management has asked me to inform you that this conference call may contain.

Forward-looking statement any statements made during this call that are not statements of historical facts, maybe deemed forward-looking statements statements regarding current or historical valuation of receivables because dependent on estimates of future events also are forward-looking statements all such forward-looking statements are subject to risks that could cause actual results to differ materially from those projected. I refer you to the company's annual report filed March 16th, and its quarterly report filed May 5th and July 31st for further application the company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information further events, or otherwise off with us here now,

Mister Charles Bradley chief executive officer and mr. Jeff Fritz Chief Financial Officer of Consumer Portfolio Services. I will now turn the call over to mister Bradley.

Thank you and welcome everyone or third quarter conference call. So I guess in the midst of the pandemic and all these other problems in the world. It's kind of a great thing that we actually had a very good, so we must be doing something right in the fact that you know, these are challenging times and yet we put together a really really solid quarter. We had you know rings away up but just across the board both in earnings from a now one thing we are doing is we're focused a little more on profitability rather than growth given the uncertain times quarter. So go for the beginning of this whole thing, February March April, we decided that you know, rather than try and fight through the pandemic in terms of growth. We should focus on profitability. And so we have you know, we are in fact beginning to grow up and we would like to get a little more growth going as the next couple of quarters go by the currently probability seems to be a very good Focus for us and it's working out tremendously. Well along with strengthening all the department stopped the Box

cutting costs where we can

And you can see it all the numbers we've done a lot of that the performance in in the portfolio has been extraordinarily good we're buying really good paper are collections forces are doing so our numbers are both are charged off and DQ numbers or are very good this quarter best in a long time. So really across the board is real good wall Street's doing real. Well, we did a securitization. It's cheapest money we've had in six years and so granted that helps everyone in hopes all things across all you know, floats all boats, but for us it's it's you know, it's just one more thing that's working the right way the auction recovery. These people are very worried that the auction prices were all going to be in trouble. We had one of the best option recovery quarters we've had in years. So there's lots of things that are going probably maybe you know a little bit not abnormally right like the auctions, but certainly they're helpful too. But even taking out sort of the things that might be momentarily related to the what's going on with the parent that make them things off.

Feel the strength in terms of what the paper were originating the way we're collecting the paper are access to Wall Street and funds you know are all super strong and super good. So I'll talk more specifically about that and a few other things after Jeff goes through the financials. Thanks Brad. Welcome everyone. Let's begin with the revenues seventy point seven million dollars for the quarter. Is it 5% increase over the June quarter this year and a 17% decrease compared to the third quarter of 2019 the nine-month revenues for this year two hundred and eight point six million dollars a 20% decrease from the first nine months of 2019. And so we continued our transition to the fair value portfolio. The Legacy portfolio is down to about 26% of the total just under $600 that Legacy portfolio yielded almost 19% or around 19% and in this month

Contributing to the revenues this quarter. So that was very good. Actually the fair value portfolio is now 74% of the total 1.7 billion that yielded 10.4% Remember pleased that yield is net of losses which are baked into that number and then you'll note that we did a book date three point 1 million dollar mark down on the fair value portfolio, which is essentially an estimate a future higher somewhat higher credit losses related to the to the virus moving on too expensive 4.8 million dollars for the quarter. That's a 4% increase over the June quarter this year but a 22% decrease compared to eighty two point seven million in the third quarter last year for the nine months 195.1 million in expenses a 23% decrease compared to the first nine months of 2019. So there's a lot of moving Parts in the expense side wage.

biggest reduction and expenses

Cuz you're over here is the provisions for credit losses, but we've also had significant reductions in most of the core operating categories a year-over-year impact cost and interest expense all the you know, really had a lot of good efficiencies and improvements in the expense Side Of The Ledger. I mentioned off Visions for credit losses. We did book seven point four million dollars on the Legacy portfolio this quarter that's an increase compared to three point one that we recognized in the second quarter of this year. But Thursday crease of 19.9 compared to nineteen point nine million in the third quarter of last year. So for this year Provisions, our credit wise has been fourteen Point 1 million dollars a 78% increase compared to 64.3 million for the nine months first nine months of 2019. So recall that we adopted the CCE.

accounting for the Legacy portfolio in January of this year

At that time we booked was intended to be a lifetime provision for credit losses establishment allowance for a lifetime losses. So all these 14.1 million of losses that we've recognized this up here are what we would consider COVID-19. For the Legacy portfolio pre-tax earnings for the quarter 5.9 million dollars twenty-eight percent increase compared to the second part of this year and 111% increase compared to two point eight million in the third quarter last year for the year-to-date numbers thirteen point six million. This year is a 64% increase compared to eight point three million in the first nine months of 2019 that income 3.8 million for this quarter a 27% increase compared to three million in the second quarter of this year and 111% increase compared to one point eight million in the third quarter of 2018. Year-to-date net income 107. Excuse me Seventeen month.

224% increase compared to the first nine months of 2019. You may recall that this year. We recognized a significant tax breaks in the first quarter eight point eight million dollars resulting from the cares act and how it changed the carrying value of our deferred tax assets. So those numbers that those net income number for this year include that eight point eight million dollar tax benefit diluted earnings per share $0.16. This quarter is a 23% increase over the 13th cents for the June quarter and 100% increase for the compared to the $0.08. We earned in the third quarter of 2019. Year-to-date diluted earnings per share or $74 compared to $0.22 for the nine months of 2019. Remember that tax benefit reflects about thirty-seven cents of this year's 74 bath.

earnings per share

Moving out of the balance sheet. We continue to have a very strong liquidity position. It looks like and we will there is a significant increase in restricted cash in this context. And even the year-over-year quarters about sixty million dollars of that increase in restricted cash is a result of the are doing our securitization in September. We normally do our secure applications in the first month of the quarter because of the timing of the lower volumes and the pandemic this year. We did our securitization in September and so we have this pre-funding sixty million dollars, which essentially goes along in the month of October this year moving out of the Financial finance receivables. These are the Legacy portfolio receivables might note that the allowance there is now up to 16% of that active portfolio. So it's got substantial lifetime losses set aside against it on the debt side of the balance sheet. You may notice that warehouse of birth.

We really had somewhat lower Warehouse used to do to lower origination production and our strong liquidity position.

Looking at some of the performance metrics net interest margin for the quarter was 45.8 million. That's a 12% increase over the June quarter this year of 40.8 million decrease of 21% compared to the third quarter last year 9 month net interest. Margin 130.4 million dollars is a 26% decrease compared to last year's for nine months. So remember we're still the transition to fair value is really influencing these numbers particularly the ER over your numbers. It's helpful to note that the Blended cost off all the ABS def for this quarter was 4.4% which is a decrease compared to 4.5% in the third quarter of last year. As you may recall for the most part done really well in the execution of the coupons Blended cost of fund for securitizations this year.

The risk-adjusted margin is 30.4 million dollars for the quarter. That's a 2% increase over the June quarter and also a 2% increase over the month 3rd quarter last year and and year-to-date risk-adjusted Nim 116.2 million is a 3% increase over last year. And so this is you know being influenced by life, you know, the lower Provisions for credit losses this year, but also the lower interest rates on the debt as I mentioned core operating expenses for the quarterback 32.5 million is a decrease of 2% compared to the second quarter of this year 33.1 million and a decrease of 7% compared to the third quarter of 2015. Year-to-date core operating expenses hundred two point six million is a 2% decrease compared to the first nine months of 2019. So our operating Club

this year they've been

Somewhat influenced by the lower origination volumes but also influenced by Investments we've made in Technologies which made us more efficient particularly in the servicing side of the business and we're restarting to see some benefit from those changes as a percentage the core operating expenses for the quarter were 5.7% That's 2% increase over 5.6% in the June quarter this year but a 2% decrease compared to 5.8% for the third quarter last year on a year-to-date basis. It's also 5.8% which is about the same compared to life. So this metric is showing a year-over-year Improvement, even though we have a slightly smaller portfolio due to the lower growth this year the return on managing assets pre-tax 1% for the quarter. That's a 25% increase compared to the second quarter of this year and 100% increase compared to 5 in the third quarter of last year off.

And on a year-to-date basis 8% return on managed assets pre-tax compared to 5.5% for the nine months ended September 2019. So often encompasses all these things, you know, the better efficiencies and the core operating expenses lower interest expense and lower Provisions for credit losses.

Brad mentioned the credit performance. We're just really pleased with the credit performance these last two quarters and particular the delinquencies were 10.3% which is almost a five hundred basis points wage reduction compared to the third compared to September of 2019 the net losses for the quarter 6.4% again, significant reduction compared to age 7% for September of 2019 and the year-to-date losses 6.9% again reduction compared to 7.9% for Home nine months of 2018. Brad mentioned the auctions. It's the the general talk on the street is dealers are finding it difficult to get inventory and it's pushed up the valve that the auctions we got to return of 45.1% of our collateral at the auctions this quarter that's up from 34% in the second quarter and also up from 34% a year ago dead.

I did a little math and I can tell you that if the auction values for this quarter were the same as they have historically been around that 34% We would have occurred two million more dollars in charge off this last quarter. And even though these numbers are you know, exceptionally good and probably going to revert to the mean at some point, you know, that's two million dollars that we that we saved and will never have to give back.

An ABS Market, we just did our securitization a couple of weeks ago twenty-twenty. See it was a $252 deal. We had great demand across the capital structure all classes of bondage significantly oversubscribed and the combination of the low low benchmarks and the very tight spreads results in a blended yield of 2.39% which is Brad just mentioned is the lounge scene since 2014 another benefit of this deal or positive. This most recent deal is we were able to structure in a class F single be bond with them and brought the leverage in the advance rate back to you know, the best the better levels that we prefer.

What that alternative?

back over to Brad

Okay, it's been running through a couple of things. So as I mentioned sales and reservations are performing very strongly. We have tried to focus a little more on quality than growth even though we are now grown now again, it's been a little bit trying to figure out what's appropriate timing to start growing given to paying them making trying to figure out how it's all going to play out. But in some of them, I think we've Managed IT rather well in that we've increased profitability, we've sort of tighten up in a lot of areas. We cut our Workforce by twenty percent. We've cut expenses across the board. So a lot of those things are really worked out. We're still getting the kind of performance we walk wherever we have an APR that's over 19% again and strong originations fees. So we're really doing well in terms of profit in the paper and the LTV is down to about one 113% which is a lowest. It's been in a long time. So again, that's probably a good indicator of represent of the quality of the paper. We're buying, you know, a little bit of a shift to the higher the upper tier you might try and start even that out.

More of a norm either way the Productions really good. The the metrics on the production's are very strong and the collections are good questions interestingly enough. We're performing very well across all areas of the country down. There doesn't seem to be any any holes in in sort of our coverage. We've we've added some near-shore collections with just supplements what we're doing it's a you know has some cost factors Thursday, but overall we haven't seen it, you know, the winter season comes along that of course change a few things, but for now we're seeing strong performance question wise across all segments United States, very good. Another thing to point out is everybody says G to carry exact stimulus package and then the higher unemployment that's all boosting the collections, you know, that that ship's kind of come and gone down and unemployment stopped in July and we're still getting remarkably going to Performance. So, you know as much as you can sort of say that help then it probably did I think in the end really it's how we're collecting the page.

We're buying that's really showing today. So, you know the another stimulus package put together. That's great. But again, I don't know that we necessarily need that to keep it performance. We have off the portfolio shrunk. This is something we'd like to fix since our Peak portfolio size. We've gone down almost two hundred million dollars. So again with a shrinking portfolio it shows how well your performance package better. And so again, it's a good thing. We do want to begin growing enough to at least level out the portfolio. So it stop shrinking we would probably expect to get there over the next two quarters or 3/4 month and then we'll again sort of grow slowly or again at least see what's going on in the marketplace in terms of what we do next as we mentioned Wall Street.

Wall Street is probably good as it's going to be for a while. We have super low cost for the ABS markets. The credit lines are all doing great. So we have real access to Capital and we need it off probably lastly is it probably most people know we did receive an offer an unsolicited offer that company. We we addressed that in the in the in a press release we will often we as the board will consider it extensively and and sort of look into that offer. We will respond. I think the deadline is October 30th again, it was unsolicited. I personally had spoken to the company and have yet to speak to the company. But have you been so we will take a look at the offer and and value it but you know companies doing great. So maybe at some point somebody realizes how well we were doing wrong with that will open it up for questions.

The floor is now open for questions at this time. If you have a question or comment, please press star one on your touchtone phone. If at any point, your question is answered, You may remove yourself from the queue by pressing the pound key, we do ask that while you pose your question that you pick up your handset to provide Optimum sound quality. Thank you. First question comes from David Sharpe of JMP security your line is open.

Pay a good morning and thanks for taking my questions Brad a couple of things. The first is just too long. Maybe get a little more color on maybe the the the near and medium-term Outlook in terms of just competition because it you know, it seems like there are a lot of competing factors you you noted how robust the ABS Market is in that sort of reminiscent of when the industry became so competitive after the last financial crisis and rates came down, but at the same time looks like your yields have trended up both within the Legacy and in the fair value portfolio. Are you seeing more pricing flexibility or is that just a reflection of more caution in a little higher FICO Focus given the pandemic

Excellent question. We're certainly happy to have the higher pricing and I guess I could simply say yes. I think there's more pricing flexibility out there. But of course going back to the beginning with the way you said that the with the ABS Market being so strong and the cost of funds probably across the board for everything both Warehouse lines borrowing money and and Thursday, you know, certainly a high tide floats all boats and it's certainly have to help everyone and so one would think you know, the extent companies were struggling out there having a better access to Capital is helping them, you know, maybe people are try to be more cautious. I think some of the non-prime guys are pushing pretty hard but it you know in our industry are our neck of the woods in the industry. We have a life too much. Certainly. I think the the the access to Capital our cost of funds is helping anyone who's struggling but I also don't know that anyone wouldn't be surprising in most people are saying taking give or take the approach we are dead.

Which is proceed with caution and do what you can but try not to get over your skis in case you know, something else happens. So as much as you know, our numbers are really good. Our performance has been really strong or access to Capital is really good. You know, it's not like we're going to you know step on the accelerator real hard just and hope for the best and probably I would imagine most of the folks in the industry feel the same way. And as a result of that you probably have done a little more pricing flexibility. We also probably think our model works really well and things like that, but everything else can stay the same. So one might think some of the folks have backed off or some of the smaller guys were home. It's a little hard to say, you know, it's not like any big guys who disappeared but you know, I would agree with you that it certainly appears that there's a little more pricing flexibility in the marketplace to that but just to be clear, I'm not getting a strong sense that we ought to be thinking about

Gross yields trending higher from from Q3 levels. Is that fair? Yeah, that's probably Fair. We're we're probably give or take

Because rather than this than you know, something's changing. So right right got it. Hey, and one one follow-up, you know on the recovery side of obvious throughout the pandemic. It's been a consistent theme in the industry about dealers being short short supply of bath used vehicles driving prices up. It seems like new vehicle sales may be on the you know of kind of picking up once again a lot of the manufacturing bottleneck demek of kind of working their way through and that should drive up, you know trade in inventory or Valium. Do you think this past quarter represents sort of them? Maybe the peak of of

Collateral value that that we ought to be. I mean you you you would noted the recovery rate was unusual this quarter. We we got that loud and clear but just thinking more broadly off, you know, we probably seen the peak of these auction values. You know, I agree with you. I think new car Productions beginning to Trend up. I mean, I've always said for a while that you know, I think that the new car production got way ahead of themselves. And so probably a one of the many groups of the few groups that really thought the pandemic help them out would be the the manufacturers because they got to take a drop back and let the you know the world catch up to the production. And so I don't know that they're going to come storming back and obviously they want to produce cars make lots of money, but that low it's going to make life a lot stronger for them going forward. So certainly the number was so high this third quarter that it could be the peak. I wouldn't wouldn't Shock Me Up the fourth quarter hung in there and it was a slower transition back to what wage

Normal, I don't I I mean, I don't know who knows what the big guys will do, but if I were them I wouldn't start to flood the market with new car vehicles. I think, you know, they all the dealers need new cars and provide new cars. I don't know if they're going to try and create another a new cars, and if not that will keep the recoveries, you know a little higher than normal for probably another it'll probably take at least another quarter or two to get back to what we call normal. Okay. Thank you. Thank you.

Thank you. Our next question comes from the line of Kyle Joseph Jeffries your line is open.

Hey, good morning. Good. Thanks for taking my questions. Just wanted to get through your thoughts on how the the different portfolios are performing, you know, obviously this club a smaller fair value mark on that portfolio, but but a larger provision and then we can we can see the the Legacy charge also running higher, but at the same time you talked about a better yield down there. So just kind of walk us through the the differences in the performance between those two portfolios.

The most part I mean the Legacy portfolio is older so it's going to not perform as well as it the paper, you know reaches the end of its days. It's going to sort of have higher losses any part of what we're doing is trying to be super cautious in both portfolios in terms of again. I mean we seem to be doing quite well independent pandemic, but you never know what's around the corner. So until I think really evens out its life, you know, I think we're going to be cautious. I don't know that the levels that neither one are particularly relevant in terms of the performance. I mean, it's easy enough to say the Legacy portfolio is not going to perform as well as a fair value. Probably we would both say that for Value out-performing Itself by a bit right now even given the pandemic and everything else.

Got it. And then

You know just obviously a lot of uncertainty. They're out there right now in terms in terms of the stimulus. Um, delinquencies are still down a lot year-over-year, which is great. They're up a bit. Ly which you would expect from a normal seasonal perspective. But can you kind of walk us through what delinquencies did by month through the quarter? Did you know, what do they do? They go down again in July 8th, and then they picked up post stimulus or what's driving that

Well after after the June quarter, yeah, we saw nominal sequential monthly increases in delinquencies throughout the third quarter ending where we where we just announced Thursday. And as you pointed out that's a normal seasonal pattern we'd expect to see because the third quarter represents time. Where people every typically take vacations and I'm back to school. So typically we see a big increase from second quarter to third quarter this year. We saw a nominal increase because you know, people aren't travelling, you know, probably as much as they would normally would and and they're even though they're stimulus their bonuses employment benefits, you know, have run out during that period most likely I think people just have more money in their pockets because they have less to do with and so are collectors have done a good job staying on top of the customers and we what we've seen is the seasonal increase but not as great as we've seen in the past.

Got it. And I know you you address the the offer on your cell. So I think thinking about it more broadly. Can you give it to your sense for you know potential consolidation in the industry that you know at this point? No one's really struggling because there was so much stimulus but, you know going forward as losses really manifest. You see some potential consolidation opportunities for the industry.

Well, you know what? I would say. Yes when we have that question and I've been mostly wrong. So, you know, I think

You still going to have some folks out there who aren't doing exactly what they're supposed to be doing. I think probably you might have had of a bit of a reckoning for some of the really smaller guys over the last couple of quarters. I mean the larger people sort of Austin Big R. I don't really see too much going on there because certainly the the lower cost of funds and access to Capital probably helped everyone else, you know, we'll we'll call and medium to large-size, you know a lot and so, you know, I think there's still season chance, you know, you'll have some consolidation. You're still going to have the money, you know, they're still sitting in those same companies. They probably don't want to be in you know, maybe they're feeling a little better about the company but they still at some point going to get out so I don't know how that plays but yes, I think they'll be consolidation. You know, I think I've got

You know, maybe after the election you see how that shakes out, you know what happens but the easy answer is you know, low cost of money is going to be there now for a while and that's going to help a lot of folks and well, you know, I don't know that it'll cause anybody come into the market so, you know, it's kind of a weird set up because you have a whole lot of people because of all the low costs and and stuff access. They're all going to probably bring in there. It doesn't mean you know, the you guys still don't want to get out. So at some point something's going to happen, but given the current access to Capital and probably not thinking it happens very soon.

Which means that happen tomorrow?

So there you go fair enough. Thank you very much for answering my questions guys. Thank you.

Thank you. Our next question comes from John Rowland of Jenny. Your line is open you guys said you wanted to drill on something. You said that you cut twenty per-cent of the workforce, but I mean employee costs are down less than 1% And how much of that is variable just given I mean you're obviously purchasing fewer contracts and you were down last year. Obviously, it's come up a little bit of late but it doesn't seem like that full 20% run rate is really hit your employee costs. Well, it'd be more of a time to it wasn't like we just do this quarter. So yeah, there's probably other fact a part of it's a new accounting cuz so what we had to look staff reduction where we actually laid off about 10% of the workforce that was midway through the second quarter and then and we've had some just some attrition because the volumes have remained low, so I don't think that you know, the sequential quarter comparisons or the even the

The year-over-year necessarily have reflected that but the headcount is is down about 20% Okay, I mean what you know, what's a good run rate going forward? I mean I continue to trickle down. I mean obviously if there was a tradition or people that go in two or three Q do we continue to see a reduction in employee costs going into the end of the year? Well off at these levels till the end of the year, we're you know, we're trying to grow the business again and when when the business grows when the origination volumes grow, then we have more variable employers cuz the sales people are on commissions for the most part if they grow origination grow significantly, we'd have to add somebody's in the credit departments one one area where we're going to see continued efficiency off. So even as the business grows is on the servicing side, we really done some interesting and and effective changes and investments in technology on the servicing side of the business. We're going to lever those wage.

So much more effectively in the future than we've been able to do in the past. And so, you know, we're very feel very good about you know, the control of operating expenses employee costs as with the business starts to grow again.

Okay moving on Joe. I was a little surprised to see the provision for the Legacy portfolio. I mean is that just a function of the change in the allowance? I mean going forward if you don't have to make adjustments to the you know to the allowance ratio should we not have any provision in the runoff portfolio? Theoretically, I mean when we theoretically when we adopted Cecil in January, you know, I'm not we're not for the pandemic there maybe wouldn't be any provisions for credit losses. Right? Cuz that's supposed to supposed to have been at that time a lifetime allowance. And that's what we calculate and that's what we booked but because of the because of the virus and the pandemic to slow down the economy. It's hurt that season portfolio. It seems to have hurt that season portfolio more than the less season fair value portfolio. And the the reality is and we talked about this before, you know, those those advantages of receivables the 2015 and 16 receivables, you know have really we really taking our lumps birth.

And so you know what we just find is that even though they're nearing the end of their lives, you know, they're just incremental losses are not slowing down to the degree that that we would expect and so long, you know, we want to be cautious and we want to we want the the numbers to reflect the true performance at some point. You know, though. I think we'll you know, the slow down the economy or the economy would start to rebound will start feeling better about than a legacy portfolio. Eventually Legacy portfolio is going to go away and pay off. And so, you know, I think we'll have hopefully have seen the worst of the most significant Provisions for credit losses on the Legacy portfolio or behind us.

Well, okay, so that leads me to my next question because there was you know credit obviously improved except in Legacy portfolio or charge-offs were up year-over-year is that just a function of the you know, the off the book maturing and kind of you know, narrowing down to those vintage vintages where you've had some trouble.

Well, like I said, yeah, those those underlying vintages primarily fifteen and sixteen although 2017s in the Legacy portfolio to which is a little bit better. You know, those those pull start it out at Birth is earlier in their lives and they just continue to run hotter even though they're like, I said approaching the end of their lives. And so the other thing too is like even though we've seen Improvement at the auctions, you know, this quarter of these last six months, you know those cars and the Legacy portfolio are much older and so they're probably not benefiting from you know, those better returns at the auctions as much as the the the fresher portfolios and the fair value segments are and so, you know, it's just it's just because of the age of the portfolio the Legacy portfolio and the relatively weaker, you know performance from the from the stage for those portfolios, you know, they're just really kind of stumbling to the Finish Line a little bit but we're comfortable that we have sufficient allowance against them now, okay, and just last question kind of how long

I try to make sure I'm calculating it correctly. Am I right there was about eleven point eight million dollars of actual dollar value charge-offs in the quarter.

On the Legacy portfolio just the the charge off. I mean not

it would be would be on the Legacy portfolio. Yes. Yes. Yes. Okay. That's it for me. Thank you.

Thank you at this time. I'd like to turn the call back over to mr. Bradley for any additional or closing remarks, sir. Thank you. Again. We appreciate you all joining us for the call. We we had a page quarter certainly fourth-quarter is always challenging from collection point of view with the holidays and all and given the election and all these other sort of wild little variables in the pandemic and the vaccine and whatever else want to push, you know, we're still an interesting times, which is again while I'm glad the third quarter was so good. We're going to hope to keep that Trend rolling but you never know what's going to happen next. I wish we did but we like what we're doing a fundamentally we like what the future holds. I think most everyone wants to get the hell out of 2020 and we do too. So we're looking forward to two thousand twenty one and and, you know having a real good year. So thanks for attending and we'll speak to you. Well next year.

Thank you.

Thank you. This concludes today's teleconference a replay will be available beginning 2 hours from now until October 27th, 2020 by dialing 855-859-2056 or 404-537-3406 with conference identification number 206-5436 a broadcast of the conference call will also be available live and for 90 days after the call via the company's website at ww.w. Consumer Portfolio, please disconnect your lines at this time and have a wonderful day.

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