Q1 2021 PRA Group Inc Earnings Call
[music].
Keep out to withdraw your question please post star them too.
Please note this event is being recorded.
And now like to turn the conference over to the Derby show and held Vice President of the Investor Relations. Please go ahead.
Thank you.
Good afternoon, everyone and thank you for joining of with me today are Kevin Stevenson, President and Chief Executive Officer, and Pete Graham Executive Vice President and Chief Financial Officer.
We will make forward looking statements during the call, which are based on management. The current beliefs projections assumptions and expectations, we assume no obligation to revise or update the statements. We caution listeners that these forward looking statements are subject to risks uncertainties assumptions and other factors that could cause our actual results to differ materially from our expectation.
Please refer to the earnings press release, and our SEC filings for a detailed discussion of these factors.
And the earnings release, the slide presentation that we will use during today's call and our SEC filings can be found on the Investor Relations section of our website at Www Dot PRA group Dot com and Additionally, a replay of this call will be available shortly after its conclusion and the information needed to listen is and the earnings press release.
All comparisons mentioned today will be between Q1, 2020, and Q1 2021, unless otherwise noted.
During the call, we will discuss adjusted EBITDA and debt to adjusted EBITDA for the 12 months ended March 31, 2021, and December 31, 2020, please refer to the appendix of the <unk> presentation on our website and <unk>.
Used during this call for reconciliation of these non-GAAP financial measures to the most directly comparable UF GAAP financial measures and now like to turn the call over to Kevin Stevens, and our President and Chief Executive Officer.
We're going to Derby.
And what are the given this evening and and so I hope for the past year. Once again picking just a few moments to acknowledge that is pin them because of the human tragedy, and we will extremely sensitive to the impact of tell me on the everyone globally and.
Today, many of US are starting to see what we hope and.
The end of this long journey and I believe is the especially true here and the us and and the U K.
And as such these areas of the room, and I think or cautiously optimistic and making plans per reopening the economies and.
Moving their lives back and order.
And that said, we must not forget there are many many still long way from the and the.
We have a vaccine production and distribution problems across Europe.
South America, and Canada surges of the wireless and places such as India and thoughts continue to go out of all of those affected either directly or indirectly what COVID-19.
And will the environment remains challenging our employees continue to amaze me HM.
The remains extremely impressed by not only their personal resilience during the pandemic, but also of their commitment to our values.
Of the company and we were more connected the number before.
Even though we remain in the mix of in office and work from home scattered across the globe.
We've never felt more like one team and one company and I credit this to our early and often outreach efforts over video conferencing, coupled with the energetic acceptance and engagement of our employees.
The whole work and resolution of our team during these challenging times and.
Gives me, great faith, and our capabilities and quite frankly and human nature of itself.
It's our employees engaging with customers every day of the defines who we are they are the ones who treat the customers with professionalism respect and flexibility.
We've spoken and the new lawmakers over the past year and one message seems clear to me.
The expect consumers the pillar does better.
But we want it done and they wanted to be done and a fair flexible and affordable way, we deliver that and our people deliver that.
So.
Rollers employees listening and thank you. Thank.
Thank you for all of the you've done and.
Keep the focus keep up the great work and please just know and I am proud to work with you.
Moving out of the first quarter overview.
And Q1, we collected of record breaking $556 million. This was driven by significant growth and U S core non legal collections as well as record European cash collections.
Net income attributable PRA group of the quarter more than doubled to $58 million <unk>.
Quarterly portfolio purchases were $159 million.
And the estimated many questions or ERC and at the quarter and and a very strong six $1 billion and.
Of this exceptional performance is yet another and the line of outstanding results, we delivered over the past five quarters over the time, we mainly delivered record operating performance, but also taken steps to solidify our competitive position and despite the challenges of the pandemic on our workforce our customers and the industry.
There are some of the highlights from the past 15 months.
We said four quarterly global cash collection records.
We increased our cash efficiency ratio to record our new record levels.
We grew and net income quarter over quarter by more than 30% and all but one of those quarters.
We expanded and improved our digital platforms, resulting and strong digital performance across the globe.
And proved leverage ratios and they're already among the best and the industry, allowing us greater flexibility and the future.
We obtain the bond rating and it was also among the best and our industry and issued our first rated bond.
We expanded our European credit facility and extended the maturity on both of our credit facilities.
Which now allows us to shift funds from the U S to Europe if necessary.
And we invested of levels the maintained our ERC and a very strong 6.1 billion.
Which is download and the 5% from the average over the past two years, despite significantly over collecting our expectations and treating those collections largely is acceleration.
And we accomplished all of this while adapting to work from home environment globally.
And engaging and a seamlessly endless effort focused on new policy processes and procedures and focusing on employee safety for those who remained in the office.
This included being awarded the global Bio risk Advisory Council Star facility accreditation and the U S.
And.
And the operational front and I want to start by taking you back to 2018.
And I spent a significant amount of time and our third quarter call reviewing the investments, we've made particularly and digital and data during the preceding years.
And those investments were made and a pivotal point in time and since then we've continued to invest in these areas and they have been key drivers of our success over the past five quarters.
And navigating of global pandemic.
And our digital area and our focus has been to engage with customers and their preferred fashion and to make it easy and convenient for them.
We built and continue to make improvements all our payment sites with the goal of making them secure and intuitive.
We also expanded our digital platform to enable accounts, including those and the US legal channel the self service via web browser and mobile device 24 seven.
And today's world, particularly during the past year when person the person and interaction was minimalize the ability to interact with our consumers digitally and with less friction on there and has proven to be immensely popular.
These efforts contributed to and impressive 80% increase and the us digital collections and.
And of doubling of our European digital collections during the quarter when compared to the first quarter of 2020.
And what not disclosed specific dollars collected VR digital channel I want to put this into at least some perspective for Ya.
And Q1 payment dollars that came through our U S website.
Where greater.
And then our two largest most productive call centers combined.
These two centers employ around 400 account representatives.
Also since there are many definitions of of of what constitutes digital.
I want to be very clear here on what we include our definition of simple if of customer logs on to our website and enter the payment we consider that a digital collections.
We will consider showing more data with you as time moves on and the future.
We utilized digital platforms, not only to drive efficient and efficiency and our NPL operation, but also to educate everyone on who we are but we do and how we do it even if those receiving the message or not our customers.
So therefore, we have engaged in global digital marketing initiatives the compliment our current strategy through online advertising.
Search engine marketing and optimization, we also took steps to create general public brand awareness through social media.
I believe you have a great story to tell and I wanted to be sure everyone hears it.
Moving out of data and analytics area and the U S. We've built out and expansive and experienced team of data engineers scientists and analysts.
Who of help US mine are 25 years of data and and forum both of our collection efforts and our portfolio of evaluation process. This.
This contributed to a record cash collection Costco cash collected per hour paid of $279 and the U S where the.
More than 60% over the first quarter of 2020.
And more than 6% over our previous high and the second quarter of 2020.
Our data group also and forms are legal collection strategies the.
And the current quarter.
U S legal collections were 90% of legal collections and our highest quarter ever.
And considering the when the pandemic started we we pause the filing new lawsuits for approximately three months, beginning and late March 2020, and.
And our total filings during 2020 were down around 35% versus 2019 and incredible result.
The targeted efforts were driven and part by our data team and their analysis regarding which accounts qualify for legal channel.
The the results are even more impressive since at the same time, we also paused new bank and wage garnishment to enforce legal judgments all of which would have contributed the legal collections.
Heard of this on protocols as pausing new involuntary collections.
Importantly.
While we resumed placing accounts and the legal channel after having paused them for three months last year, we have not resumed these garnishment activities as well as repossessions.
We believe we the only major debt buyer still abstaining from garnishment.
And based on our channel checks. We believe we are the only a couple of banks that are not engaging and these and voluntary actions.
And Europe are data and licks team held steadfast when we saw of competition pay what we believe we are irrational prices and 2016 and 2018.
As a result of focusing on the math and keeping of steady hand, we were and excellent capital position and invest invested record amounts and 2019 when it appears that competitors dealt with the impact of the earlier pricing mistakes.
Within follow up with the strong investment volume in 2020.
Also similar to the U S. The date of teams and form our legal collection strategies across Europe.
Are European legal questions, we're very strong during the quarter since courts remain open and customers are engaging with us.
Portfolio purchases of $159 million during the quarter and the Americas, we invested $98 million and.
<unk> level of it exceeded our fourth quarter of 2020 purchases and was consistent with the third quarter of 2020.
And the U S. The mortal remains stable as does our market share.
We've seen the little change and cellar behavior. However are ford flow of volumes have been trending towards the lower end of the contracted range due to lower volumes of charge offs and bankruptcy filings.
We expect that sales volumes and the U S will begin to build either later this year or in the early 2022. This is due to and expected turnaround and delinquency rates, which we expect and the second half of this year and the inevitable charge offs and bankruptcy filings that would follow that trend.
From our perspective, there are a number of coming changes to the U S. Consumer that we believe will drive this.
So first at.
At the end of March According to the Usmc's bureaus household post the survey more.
More than 7 million households, or behind on the rent.
The cdc's moratorium, preventing landlords from evicting tenants was scheduled to expire at the end of June However, just yesterday of federal judge and validated is more torreon.
Second.
According to the same survey over 8 million households are not current on their mortgage payments and.
And the most recent estimates from the mortgage Bankers Association indicated at the end of April $2.2 million or and forbearance.
Federal moratorium on for clothes and for balance is also currently scheduled to expire at the end of June.
Third according to experience and late 2020 cents.
72% of student loans, where and forbearance or deferral.
The federal moratorium is currently set the expire and the end of September.
And finally, and early 2021 and the U S Bureau of economic analysis reported the consumer spending is starting to grow.
With credit cards, and only been used for things such as travel shopping and purchase of services, which much of which was restricted during COVID-19, we expect to see a bit of pent up demand, causing balances to increase.
Our belief is that these events occur we may start to see the true impact of the pandemic on the U S consumer and while the U S has seen the huge increase the savings rate.
That increases largely been and wealthier households, and.
This could cause added pressure on other households, since research suggests they've been using the or savings during the pandemic.
It could very well me and increased delinquencies, followed by charge offs and bankruptcies and this.
Is when PRA becomes of the most important.
We act as a partner the credit originators to aid their charge off their charge of consumers on a path to recovery.
And Europe first of all of purchases and the quarter were $61 million a good start to a year and what is normally of lower volume quarter from of seasonal perspective.
And while the headline numbers lower than queue of one of 2020, and we were awarded a portfolio of that we'd expected to close and the first quarter, whose funding slipped into April.
And this funding happened as we expected and Q1, our investment level would of been similar to the first quarter of 2020 and share. This with you just to give you additional color on the European market where volumes of strong.
Looking at the European pipeline, and we're expecting a healthy level of portfolio offerings and the second quarter and we do expect the market and 2021 will exceed that of 2020, nor.
Normal virtually offerings are being boosted by supply and it was held in 2020 returning to market.
Finally, we closed our first portfolio purchase and Australia and since it was the forward flow and we will we will of purchase additional volumes under this contract in 2021, and we've opened and office in Brisbane and we're looking forward to building our market share of there.
Now and before I turn the call over to Pete I'd like to comment on capital allocation. This was a significant point of discussion and during the last quarter's call and I imagine you want to hear and updated position on the matter.
As of discuss this evening and we do expect could of volumes and delinquency rates to move in our favor and the latter half of the 2021 and and the 22 and likely beyond.
But the fact remains the we.
Had an amazing 15 months, especially as it relates to free cash flow and debt reduction.
And have a strong platform grid analytics and.
And we continue to drive productivity.
And we listened to Ya.
So after our last quarter, we engaged and external consultant to advise us on capital allocation not simply about buybacks, but the full.
<unk> and and disciplined and review of of all the possibilities and their impact.
And that review should be completed during Q too and we plan to have an internal deep dive and the results at that time and I look forward to sharing more with you and the future, possibly as soon as next quarter's call <unk>.
Now I would like to turn things over to Pete to go through the financial results.
Thanks, Kevin.
During the first quarter, we continued to see the strong cash collections performance, we saw of during 2020.
Global cash corrections were of record $556 million, increasing $61 million of 12%.
The slowed the total revenues of $289 million and increase of $38 million or 15%.
Portfolio income was $232 million.
Changes and expected recoveries, we're in the fifth.
$50 million consisting of two parts.
Versus the cash collected and the quarter compared to expected recoveries.
Which amount of $103 million and excess of forecast.
This was driven by significant over performance globally.
The second part is the present value of impact of changes and ER City.
This quarter that noted to of negative $53 million.
We began assumed that the majority of the over performance is timing acceleration of collections.
Other than of betterment or increase the total expected collections.
And the future if we determined that there has been some government and the curves we should see additional portfolio income.
Operating expenses were of $179 million, the $13 million decrease from the first quarter of 2020.
For operating expenses were reduced and the quarter due primarily the lower legal collection costs and fees.
Net income attributable to PRA group was $58 million, which generated the dollar and 2007 cents and diluted firms per share.
For the quarter cash collections were of record $556 million.
Cash corrections and the Americas increased $34 million for 10%. This was driven by a 32% increase and use non legal collections, which included of significant increase and digital collections. The.
As Kevin mentioned, we've seen positive trends and productivity and increasing collections to our call centres and digital platforms.
The shift was the primary driver of the 10% decrease and U S legal collections.
Collections and other America's decreased 5%, however, adjusting for currency translation. They would of increased his collection efforts and particularly digital and Brazil has been generating good results.
Europe cash collections were quarterly record growing $27 million from 19%.
The biggest driver of this growth was strong portfolio purchasing and 2020.
And we've also sustained strong cash performance on their portfolios, which stands and contrast to some of our European peers, who have been taking writedowns.
Our cash efficiency ratio was 68% for the quarter.
The very pleased with the 650 basis point of increase and with our operating performance.
The decrease and operating expenses was primarily driven by a reduction and legal collection costs and fees and the 15% reduction reduction and U S call centers by quarter and.
This is partially offset by and increase and leader collection costs and Europe.
Although of court systems were closed and some countries in Europe last summer due to COVID-19 restrictions, we've been operating normally and all market since they reopened and the fall.
Additionally, there was an increase and agency fees paid the third party agents outside the U S.
Based on their strong results from the first quarter, we've increased our expectation for the full year cash efficiency ratio the 63%.
Interest expense decreased $6 million, we're carrying lower average borrowings this year, resulting and lower interest cost.
Also has previously disclosed we changed the accounting for our convertible notes.
Which surprised the presentation, removing the implied equity component and related discount and amortization from interest expense.
This reduced interest expense by $2 million during the quarter and will result, and lower interest expense going forward and these notes.
Perfect of tax rate for the quarter was 21.9% and line with our expectations for the full year.
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Darcy at the end of the first quarter was $6.1 billion and 46% from the U S and 50% and Europe.
One of the primary drivers of our reduction and ERC is our assumption that the majority of our over performance and the last 12 months is and acceleration and timing of collections the.
Potentially of conservative assumption.
And if there has been bedroom and and and the curves we would see additional portfolio income and the future.
Kevin mentioned, we did close our first portfolio purchase and Australia during the quarter.
It's presented with other Americas.
And as a reminder, over 96% of our ERC is estimated to be collected and the next 10 years.
And the Americans, we generally price the tenure curves and then estimate ERC on the rolling 120 month basis.
And Europe, we generally price to of 180 months.
We expect to collect one $6 billion of our ERC balance during the next 12 months and.
And based on average purchase price multiples, we recorded and the first quarter.
We would need to invest approximately $825 million globally over the same timeframe to replace this runoff and maintain the current ERC levels.
And we anticipate that even and the current market environment, we could exceed that level of investment and grow our ERC.
Due to a strong cash and financial performance, we've continued to delever.
For the 12 months ended March 31.
The generated $1.4 billion of adjusted EBITDA.
And increase of about $80 million when compared to the full year of 2020.
As a result, we ended the quarter with the debt to trailing 12 months adjusted EBITDA ratio of just under one eight times compared to about two times the ear and.
Per capital position strong with over $1 billion available for portfolio investment at the end of the first quarter. In addition to the adjusted EBITDA generated by the business.
As Kevin mentioned previously were performing the capital allocation study.
Given are conservative leverage position and substantial available capital we have considerable flexibility to both meet investment opportunities. We believe we're coming and potentially return capital of the shareholders and the balanced and responsible manner.
And I would like to turn things back to Kevin.
Alright, thank Pete.
Certainly was a remarkable quarter.
And to emphasize just how incredible and the last 15 months of been I do want to reiterate the.
And the statistics I quoted the begin the call.
Four quarterly global cash records increase the cash efficiency ratio of the record levels and income growth of more than 30% and all but one of those quarters expanded and improved digital platforms improved leverage ratio of there were already among the best and industry.
Obtained bond rating is also among the best and our industry measured the first fund.
We expanded our European kind of facility and extended the majority of both of the of the code of facilities and we invested of levels. The maintained our ERC at a very strong six 1 billion despite significantly over collecting expectations and treating those collections largely is acceleration.
And I'm very proud of what PRA become and.
And we're so much more and then a purchaser of nonperforming loans and and so much more than the servicer of nonperforming loans. We are a did analytics company that focuses under stress debt, we evaluate price optimize and liquidate portfolios of loans Npls are of sophisticated asset class may require of <unk>.
Heart deep and timely analytics and I look forward to further leveraging our expertise in this area.
We're also of digital outreach company and of marketing company I believe this is an area of exciting growth.
And as we continue to educate the world broadly and who we are and what we do and how we do it.
We will provider of capital to creditors, which then make and recycled back and the economy.
And we provide great jobs for thousands of people, who I believe no that we value of them.
And you provide customers patient fair and affordable payment options that help them resolve their debt with us and can hopefully put them on the path to financial recovery.
We celebrated the 20th anniversary of of our founding of March 20th.
And over those 25 years I've thought and the continue to think back off and on how we started this company.
Hi of shared this with you many times in the past and conference calls and written documents. We started this company to do something different and this industry to change it and looking back.
While that may have been of wonderfully naive idea.
It was still our goal.
We had a very simple premise that we followed to do things the right way for the right reasons for the long term.
And while those are somewhat abstract concepts that are important one nonetheless, there are important because that is the foundation of what we create of 25 years ago and I work every day to remind everyone of that value.
The advances we made over 25 years and nothing short of Amazing to me and when I look back at PRA transformation. One thing occurs to me and we're just getting started.
So with that operator, we're ready for questions.
Hi, all navigating a question of the answers that session.
You ask a question.
And then y.
Telephone spot.
Josh.
Hi.
The rest of your question.
At the time of of part of our retirement of Iraq.
Okay.
And of our first question comes from my current of true.
Sorry. Please go ahead.
Thank you and good afternoon.
Okay and why Mark.
Eight the efficiency ratio.
Quite strong this quarter and you gave us a full year out yet does that contemplate the additional cost and layering and.
And the.
Fence structure or is that the just the.
Strong elaborate zone, the seasonally good to collections and Q1, how do we think about that.
Yeah. Good question Mark Thanks.
We're really focused on efficiency and I think our expenses or likelihood of good run right, where we sit now so the impact as we go through the years really more of the second part of your your premise, which is the seasonal and high and.
Collections, and and the first quarter here and.
That's really kind of going to be Weddell drive that over the course of the year.
And Kevin did you talk about collections on a monthly basis, and maybe a little insight around the the month of April.
And thinking about the trend and what does that that expense level knee and relative to collections and are you still seeing the strong results here early and <unk>.
And I didn't I didn't share anything.
And this call and I would say that.
We've done that before so I'll go ahead and give you some insight too so.
So April looks pretty strong as well so April has got a good strong.
Start two of them off and silver nowadays.
Now so I would I would agree with you that April the skull was strong, but again I think of the year goes on and we're going to be competing for cash I talked about this pent up demand earlier, and it'll it'll be there and and.
And as people open up they'll start spending money and and it will.
The modestly more difficult I think that's just that's just human nature.
And I think the patterns of any different this year than a non will seasonality right. We had the and maybe a couple of day delay and start of the test and traditional tax season and that.
Last year was the odd one.
One where we didn't.
Have a full taxis and it normally trails into the into April so and.
And the current environment with additional stimulus dollars sitting and the first quarter and we would expect that to tail off as we go and the second.
And then people the formulation you used about the.
<unk> things and the.
Kind of rebuilding ERC of maintaining ERC, what was that again.
And we're just trying to give some indication of.
For lack of a better term of replenishment right. So if you.
Consider the average purchase price multiple for the book globally and the first quarter.
And you can you can do the math to figure out how much we'd have to buy in order to replace the amount of.
Darcy that we projected the runoff during the year.
And did you get the numbers when you went through that.
Yeah.
800, and around what where that one other $1 million of that.
Approximately $825 million.
Would be what you would need the purchase in order to replenish the the correct correct. Okay.
And then the just the final question of along those lines.
Purchased multiple day I assume I don't know if the accused out but.
Purchase multiple how do they can share yet.
The full year of 2020 and the important category.
Pretty consistent.
The <unk> the tables and the press release and Ah.
Pretty consistent and the us and U S core.
Actually up a little bit and Europe court.
So those because of the two big categories, they're going to be the drivers.
Thank you very much.
Ex questions.
William Black. Please go ahead.
Hi, This is expense around for Bob can you guys hear me.
Date of answer.
Good thanks for taking the question I just wanted to follow up briefly on the the benefits you've seen from digital you expect to give the any of those benefits back over the remainder of the year or those benefits of persist and even grow and the 22 and 23 and gradually of course.
I think digital is going to grow.
Okay. Thank you and then one quick follow up.
Why the Australia and market what makes that attractive.
The two larger markets.
Yeah, it's just another market it's a bit.
Established well established market.
I think I've shared and the past, but we've we've been looking at getting to Australia.
I won't get this exactly right, but we set up companies somewhere around 2011, and kind of of shell company down there looking to get into the into there and and just never materialized. So it's kind of of long term goal of ours and of course last year was just it seemed like the right time and do it and and we did it so.
Yeah, and then we'd like the market, we've got some great people down there and hopefully the or listen to the call as well.
But.
Like that market.
Great. Thank you guys.
Yeah.
Question comes from the Robert.
Green and James please.
Please go ahead.
Hi hasn't and thanks for taking the question I mean, all such what just that just a housekeeping question the fee income and other than the Avenue I mean, particularly the other Matthew which was up a bunch of is that just one of those kind of of spikes from.
I forgot the name of the basement. So is that something that change that in terms of servicing of something like that basically set sustainable all or none of the more than normal.
Nothing nothing real huge there.
And we during the quarter, we sold some of the PCI claims and the and the.
CCP business, just to kind of day risk the.
Settlement and the portfolio and that came through as other income.
So and you kind of look those I would love those two together but.
Yeah. It's.
It's more of an anomaly and the quarter as opposed to of run right. Thanks.
Got it and then.
This one's a little and.
Scott.
When I look at your web and the vision.
Change and expected the coverage K.
And I would like that disclosures of the Patrick.
Obviously, a lodge of vision net and the vision up and and the U S and Europe.
Americans insolvency, which I mean based on the net to hear that let me, it's 41 pass and tolls.
Amy.
Is that related to the touch.
Suspension of garnishment et cetera on call and solvency claims of the possession on the solvency claims or is there something about.
Fuel demographic in the people in the insolvency segment, which is small versus the cough.
Yes, it's really around.
What we've experienced.
<unk> COVID-19 the insolvency portfolios really haven't had the same sort of shock as we have experienced in the in the core portfolios and so it's really just kind of normal variation that you're seeing there and.
And the insolvency book compared to.
Some some real outsize performance versus expectations, that's occurred as consumers of gotten liquidity and the and.
And the core books.
Got it got it thank you and if you had one.
More and this funds and and to that question.
If I look at the cash efficiency ratio if I, let you take out hypothetically the 103 million in excess cash collections over and above what you were planning for and the quarter.
Obviously, the cash I can calculate of cash efficiency ratio with that extracted, but then it would be down you that the which I think is is Quebec, because obviously those extra collection is also came with extra expenses, but can you give.
And give us.
An idea of of what that would have been.
Without that.
That extra cash because obviously that goes to pointing towards the guidance of 63, which is a lot lower than the Q1, but also Q1 of which you had on the the $10 million extra cash connections above plan.
Yeah.
Hi.
You have asked the question the sort of unknowable and I guess, what I would say is in terms of looking forward. We think our expenses as we sit and our kind of a good run right and.
And there's a potential for us to have.
Additional over performance as we go through this year and if.
If we do that'll be start to be an indication of baby betterment versus the acceleration.
So.
That's why we expect that trailed down more as we go through the year.
Stood up versus what we originally thought for the year, we always have of seasonal high impact and the first quarter anyway, just given seasonality of U S collection. So.
Oh sure I can dissect it really any more for you then.
I appreciate the [laughter].
Oh, that's a question answer session and I would like to.
That was true.
And a closing remarks [laughter].
Thank you, operator, and and I do have one more thing to say this evening.
Hopefully you of seeing the press release.
Penny Kyle and is retiring from our board.
Penny is a long long time board member, having joined US and 2005 and I am so thankful for all of her contributions.
Penny was a huge supporter of the culture of PRA and all of our efforts around doing things of the right way for the right reasons and it really all of our founding principles and.
We wouldn't be the company we are to day without her so plenty. Thank you very much for all of your done for us and.
And for everybody also and the call. Thank you for joining this evening and I look forward to speaking to you next quarter.
Thank you for attending today's presentation and you may know.
And.
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