Q1 2021 Equity LifeStyle Properties Inc Earnings Call
And good day, everyone and thank you all for joining us to discuss equity lifestyle properties first quarter 2021 results.
Richard speakers today, and Marguerite Nader, our president and CEO, Paul Seavey, our executive Vice President and CFO and Patrick Waite, Our executive Vice President and C O O.
And 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 minions and the federal Securities laws.
Forward looking statements are subject to sit and economic risk and uncertainty.
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 SEC regulation G.
Reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are included in our earnings release, and supplemental information and our historical and I can see filings 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 today.
I am pleased to report the results for the first quarter of 2021 and our performance shows the increased demand for our properties. We continued our record of strong core operations and <unk> growth with an eight 1% growth and normalized <unk> per share and the quarter.
New customer growth and both our RV and MH business contributed to the positive results from the quarter, our new home sales grew by 24% contributing to the high quality of occupancy at our MH communities.
We ended the quarter with core portfolio occupancy of $95 four per cent.
Wholesale leads from web sites increased by 37% and the quarter.
Within our RV platform, we were successful and offsetting some of the loss and seasonal business with significant growth and transient business for the quarter.
We ended the quarter with a 15% increase and transient revenue.
Our subscription based thousand trails camping pass showed strength this quarter over 5000, new members purchased a can't pass which was an increase of 64% over the first quarter of 2020 in.
In the quarter, we saw and increased demand for upgrades and the thousand trails system. Our members. We're looking for expanded access to our portfolio and we saw an increase of $5 million and sales. We now have 117000 members with access to the thousand trails footprint.
We are approaching our summer RV season, and are and are encouraged by the reservation pace and the feedback we have received from our customers.
We recently completed a customer survey and the results support our view that our customers are looking forward to spending time outdoors and at our properties.
And the survey results show that 98 per cent of respondents who were new to camping last year planned to camp again. This year. The respondents indicated that they chose to camp because it felt like a safe choice and they were able to safely travel with their family and friends.
The survey indicate the plan for increased camping adventures with 65 per cent of those responding indicating an intention to camp more this year.
The survey also showed that 70% of those responding do not plan to travel by plane this year.
In 2020 to help support the safety of our guests and members, we launched a new online checking and option for our RV guests since launch over 160000 guests completed the online checking process, allowing them to get to their site more quickly and with less direct interaction.
In addition, we provided our guests and added way to communicate with our onsite teams during their visits by launching a text message program to reduce the number of in person interaction.
Our guests reported high satisfaction levels based on the experience provided by our teams at our properties.
Based on the first quarter survey results guests responded to customer experience questions with a rating of 4.5 out of five.
We continue to protect and enhance the environments, where we live work and play and encourage our residents members and guests to do the same.
Our annual sustainability report will provide updates on our partnerships with conservation focused organization. We have increased our efforts through partnerships with leading organizations focused on water conservation and supporting the reforestation movement and Ocean conservation.
Our team members did a wonderful job, ensuring the safety and wellbeing of our snowbird residents and guests.
Our Covid response team has been instrumental in arranging thirty-nine vaccination events at our properties that supplied vaccinations for approximately 8700 individuals.
Our operating team will now turn their attention towards the summer season properties and will focus on delivering excellent customer service to our residents members and guests and they explore our properties. This summer.
I'll now turn it over to Paul to walk through the numbers in detail.
Thank you Marguerite and good morning, everyone I will provide an overview of our first quarter results and walk through our guidance for second quarter and full year 2021.
I will also discuss our balance sheet before the operator opens the call for Q&A.
For the first quarter, we reported 64 cents normalized <unk> per share.
The outperformance to guidance and the quarter resulted from better than expected transient performance membership upgrades and expense savings.
In addition, our guidance did not assume the net contribution from our southern marinas portfolio acquisition.
Core MH rent growth of four 7% includes four 1% rate growth and approximately 60 basis points related to occupancy gains.
Core RV and marine our rental income from annuals was in line with expectations for the quarter.
Annual RV rental income represents 90% of the combined RV and marine and rental income from annuals and and increased three 5% with $3 four per cent from rate.
Within the core and Marina portfolio Arena rent from annuals represents approximately 99% of total Marina rental income.
Core RV and marine and rental income from seasonal and transient customers outperformed our expectations.
Included with our guidance assumptions and closed in January we estimated a $10 million decline from combined seasonal and transient revenues compared to first quarter 2020.
The actual decline was approximately $6 million.
The main factors driving this favorable result for increased customer confidence and travel given declining COVID-19 case counts and increased vaccine availability and.
As well as the cold weather pattern in February that increased customer demand for stays and warmer climates.
Transient revenues represented approximately two thirds of the combined outperformance.
First quarter membership subscriptions as well as the net contribution from upgrade sales outperformed our expectations and.
The main contributor to outperformance with strong demand for our upgrade products.
Upgrade sales volume increased by 640 units compared to first quarter 2020.
The price of upgrade sold increased approximately 10 per cent compared to last year.
In addition to strong demand for upgrades are camping pass sales volume increased more than 60% during the quarter.
First quarter core property operating maintenance and real estate tax expenses increased two three per cent compared to prior year.
Utility expenses payroll real estate taxes, and repairs and maintenance combined represent more than 80% of our core expenses in the quarter and the average increase across these categories was two 3%.
In summary, first quarter core property operating revenues increased two eight per cent and core NOI before property management increased one 9%.
Property operating income from the non core portfolio, which includes assets acquired in 2020 and during the first quarter of 2021 was $3 $3 million.
Overall, the acquisition properties performed in line with expectations.
Property management, and corporate G&A were $25 $9 million flat to first quarter 2020.
A key contributor to the year over year comparison, as lower travel expenses and 2021.
Other income and expenses were approximately $3 $1 million higher than first quarter 2020, mainly from home sales profits and ancillary income.
Interest and related amortization was $26 $3 million slightly higher than prior year.
The first quarter of 2021 results included the interest expense, resulting from debt used to fund our acquisition activity.
Offset by the accretive refinancings, we closed in the first and third quarters of 2020.
The press release provides an overview of second quarter and full year 2021 earnings guidance.
As I provide some context for the information we've provided keep in mind. My remarks are intended to provide our current estimate of future results.
All growth rates and revenue and expense projections represent mid points and our guidance range and are qualified by the risk factors included in our press release and supplemental financial information.
A significant factor and our guidance assumptions for the remainder of 2021 is the level of demand for transient stays and our RV communities.
We have developed guidance based on our current customer reservation trends.
While macro indicators suggest we're heading and a favorable direction relative to the impact of Covid on daily life, our experience over the past year has shown this circumstances can change.
We intend to continue to monitor the situation closely and we'll manage our business accordingly.
We provide no assurance that our actual results will be consistent with our guidance and we assume no obligation to update guidance as conditions change.
Our full year 2021 normalized <unk> guidance is $2 38.
Per share at the midpoint of our range of $2 33 to $2 43.
Normalized <unk> per share at the midpoint represents an estimated 9.7% growth rate compared to 2020.
Core NOI is projected to increase five 3% at the midpoint of our range at four 8% to five eight per cent.
And the core NOI growth rate increase from our prior guidance is mainly the result of our first quarter outperformance.
Our expectation for the second through fourth quarters is consistent with our budget.
As a reminder, our core portfolio changes annually.
You'll find our definition of core on page 19 of the earnings release and supplemental information.
Our guidance for the full year and second quarter includes the impact of the acquisition activity, we've closed and the first quarter with no assumptions for additional acquisitions during the year.
We've also included the impact of the financing activity, we've disclosed including the recast of our unsecured credit facility, which I'll discuss after highlighting some of our second quarter guidance assumptions.
Yeah.
We expect second quarter normalized <unk> at the midpoint of our range of approximately $103 $5 million with a per share range of 51 to 57 cents.
We expect the second quarter to contribute 22% to 23% of full year normalized <unk>.
We project a core NOI growth rate range of six 9% to seven five per cent.
Keep in mind, our second quarter 2020, transient RV business was significantly impacted by Covid related travel restrictions and shelter and place orders.
MH and RV annual rate growth assumptions for the second quarter and full year remained consistent with our prior guidance.
As Marguerite mentioned, we anticipate continued strong demand across our RV platform.
We've built our transient RV revenue assumptions for the second and third quarters using factors, including current reservation pace compared to both 2020 and 2019.
Our guidance for the second quarter assumes a growth rate of approximately 14% compared to 2019.
This represents a core transient RV revenue increase of approximately $8 $8 million compared to 2020.
Before opening the call up for question and I'll discuss our year to date refinancing activity highlight current secured debt market conditions and provide some comments on our balance sheet.
During the quarter, we closed the previously disclosed $270 million 10 year secured loan with a fixed interest rate of $2 four per cent.
In April we closed on and.
And amended unsecured credit facility, including a $500 million revolver, and a $300 million fully funded term loan.
The term loan proceeds were used to repay and acquisition loan we originated in early February.
The revolver matures and for years and we have two six month extension options.
The term loan matures in five years, and we've executed a fixed rate swap that locks and the interest rate and one eight per cent for three years.
Current secured debt terms available for MH and RV assets range from 55% to 75% LTV with rates from 2.5% to 3% for 10 year maturities.
High quality age qualified MH assets will command and best financing terms.
RV assets with a high percentage of annual occupancy have access to financing from certain life companies as well as C and B S lenders.
Life companies continue to quote competitively on longer term maturities.
We continue to place high importance on balance sheet flexibility and we believe we have multiple sources of capital available to us.
Our debt to EBITDA, sorry is five seven times and our interest coverage is five two times.
Weighted average maturity of our outstanding secured debt is almost 13 years.
Now we would like to open it up for questions.
Thank you to ask a question you will need to press star one on your telephone to withdraw your question Pester pound key.
And by while we compile the Q&A roster.
First question comes from John Kim with BMO capital markets. Your line is now open.
Thank you.
Couple of questions on your guidance, so and the second quarter, Youre projecting and $8 8 million increase and transient RV, which would put it above 2019 levels.
But I was wondering how much clarity you have on that at this moment and I know you talked about the reservation pace, but your first quarter numbers came in and well above your initial projections and I just wanted to see how confident you wear and our second quarter projections.
Yeah, I think John as we think about our guidance.
The second quarter increase that $8 8 million over 2020, that's about 14% over 2019.
And we've taken a look at our reservation pace and we've taken a look at the activity in 2019 as a as an indicator of a normalized environment.
Because it is quite challenging frankly to look at 2020.
But we definitely recognize that overtime pace can change so we've given our current estimate and anticipate that that may change, but it's our it's our best view into the second quarter at this time.
And what are you expecting as far as the growth and the thousand trails.
You had strong demand this quarter with membership upgrades do you see that pace, continuing and the second quarter and for the remainder of the year.
I think that if you look at our history over the last 10 years.
You see that our upgrade revenue line tends to increase and periods. When we introduce a new product and then we introduced a new product this quarter and the biggest uptick is really and 60 to 90 days after that product launch and then it tends to fall in line with more of a historical run rate performance.
And can you remind us as Marguerite and once you upgrade the membership is the goal to keep them at that level are going to convert them to a seasonal RV customer.
Sure. So just a little bit of history on the thousand trails upgraded that really it offers a number of options and we offer and number of options to own and upgraded membership.
It's really designed for the RV or who plans to camp and travel and multiple locations over an extended period of time are really those who just want the flexibility to go to a single destination with fewer used restrictions and.
So theyre looking for longer stays advanced booking windows and the ability to kind of go a resort to resort and so I think that as we see we see some of those members are becoming annually and some of them just wanting to continue to upgrade and some of them are multiple upgrader as they continue to upgrade.
The new products come on board.
Okay and then my final question is on the Marina acquisition.
And basically what is your appetite to do more and right now its about four percentage of your total sites what is your expectations.
Expectations to acquire more and also what are the opportunities share.
So we since our last call. We you know we did purchase a portfolio of brands and about $260 million.
That was a deal that we'd been looking at over the last Oh, the end of last year and it fits really nicely into our acquisition strategy and.
And the portfolio lines up very well with our existing Marina portfolio with about 40, 4100, and slips a 95% fee simple and 96% and the revenue is derived from annual sources and.
And as we look at it and I think we included it in our presentation at the time that we did the deal to talk about what we look at low while we look like on a post acquisition basis of about 4% and marinas.
And I would see that continuing to be the case, where we will grow in the MH space, the RV space and the Marina space.
And what was the cap rate on this portfolio.
This deal was a five and a half cat.
Got it okay. Thank you thanks.
Thanks, John.
Thank you. Our next question comes from Nick Joseph with Citi. Your line is now open.
The transaction pipeline and acquisition pipeline look like today and then.
And how does it compare across the three different protocols.
Sure.
So the deal flow is really it's in line with what we've seen in the immediate past I think over the last five.
Five years, we've closed about $1 billion of transactions.
And you know really focus on creating that long term value I think the strong relationships, we have and the industry that.
And that will just continue to benefit from and closing on the transactions, but you know as our and we've talked about this Nick and the passes our asset class continues to be sought after and our performance during the pandemic and and the first quarter I think I'd only heightens the desire by others to become owners of these assets.
And you know that being said most deals are really well marketed and the acquisition team does a very good job of underwriting assets and assessing the strategic fit for E. L F.
So I think there is there is there are opportunities out there and we'll continue to update as we close deals.
Is it weighted towards it and need the different verticals or are you seeing opportunities across all three we're seeing opportunities across all three.
Thanks, and then just you mentioned the technology enhancements.
How does that impact long term expenses from our properties.
Perspective, and does it change margin at all.
I think what.
What we anticipate over the long term Nick is that there will be some shift.
And potential for reduction and those expenses.
As we talk about the the initiatives like contactless check in.
And the self serve options for the customers think that frees up.
And resources that would otherwise be dedicated to those efforts.
But in the in the near term, there's a there's a transition back to normalized operations that we're working through but I definitely think over the long term, we would see that.
Thank you.
Thanks, Nick.
Thank you. Our next question comes from Keegan Karl with band back. Your line is now open.
Jim.
Hello, Kevin.
Kagan do you have a question.
Operator, maybe we can move to the next one and then we can circle back with Keegan.
Absolutely. Our next question comes from Wes Golladay with Baird. Your line is now open.
Hi, Good morning, everyone and I just wanted to go back to the upgrade product and it sounds like you said the price increase 10% was that due to the new introduction of the product you mentioned and Marguerite.
Yes, it was and so we upgraded the product the upgrade product is a new product called adventure.
And there were some additional benefits in it and we were able to increase the price as a result.
Gotcha, and then I think on the last call you kind of.
Mentioned that deals tend to close and the fourth quarter and a little bit surprised about the first quarter deal I guess would you still hold that same comment for the remaining pipeline that weighted towards the fourth quarter, Yes, I mean, I think that that's what we had seen historically is that what I think I, how I address it and the call last time and and there was an opportunity to.
To close them.
Was the deal that we did and the two deals a transaction that we did in the first quarter. So there. It's lumpy over time, you can see it's lumpy as to you know as to the quarters, but it ends up.
And I said over the over the course of five years I think we were at roughly 202 hundred 25000 per $225 million a year.
Got it and then and maybe one last one on <unk> are you seeing any inflationary pressure and the business and it probably and more specifically on the home sales.
Yeah.
Yeah sure this is Patrick.
Let me take our home sales prices first and then I'll I'll speak to cost and we saw an increase in our new home sale prices for the quarter of 20 per cent year over year.
Some of that is is just mix and net and that will continue to contribute to.
Quarter over quarter.
Yield differences and <unk>.
Some of that based on some higher price homes, but broadly we saw strength in Florida, where home prices were up more than 10% and we're consistently seeing 5% to 6% increases and new home sales prices and our primary Seattle locations across the portfolio.
With respect to pricing pressures.
Lumber is up two and a half times year over year as steel is up one and a half times year over year crude oil and one seven times.
The base for PVC pipe and other adhesives, and the U S Chamber of Commerce construction index, it really points to price fluctuations and supply shortages in lumber steel PVC and copper.
And that's due to a couple a couple of issues one we know about increasing demand.
And that's broad across said the residential space.
But we're starting to see supply chain issues and materialized.
And another one just recently was that major winter storm and Texas disrupted petroleum processing. So you know look we're seeing seen good demand for new home sales, we're seeing price increases come through on her new home sale prices, but there's also going to be some price impact on the cost of homes as well as potentially timing for delivery and.
And the demand is very high but it is taking us longer to get the homes to the locations, but the demand is very high.
Great. That's all from me. Thank you. Thank you.
Thank you and our next question comes from Keegan car with Dan Burke. Your line is now open.
Everyone hear me now.
We got you know Kian, Hello, Alright, alright about that no problem.
And with the explosion of core RV sales and RV ownership of your online metrics specifically trended.
And I guess, what conversion rates do you guys anticipate from you know the the memberships just into the annual passes.
Yeah. So we've seen we've seen a significant increase on the camping pass sales over time. So the vast majority of the increases from our that cant pass the sales for the quarter I think they went from 5000 compared to 3000 last year, a 64% increase and.
And the vast majority of that comes from online channels. So we went from many years ago, where we were all face to face.
Sales to now a significant portion of our can't pass sales are done online and it's a it's a very seamless process something you know it's a subscription based model. So people are become very familiar with that concept over time and and we've seen our people continue to want.
Push that that through and and.
And we will continue to push other opportunities through the online channel.
To follow up on that are you seeing your average age and a resident and trending down and I know and the March presentation. It said the average age of and new residents and the RV space and 55.
Yeah.
On a reported showing that the 18 to 34, each core zac cohort and is actually picking up and ownership.
Oh, Yeah, it's Patrick.
And I'm familiar with the with the study and I would I would anticipate over time that we may see additional lower age and new customers coming into the space and as Marguerite and Paul pointed out in a day.
And parts of their comments, there's significant demand across the portfolio.
One thing we're seeing that contributed to results and Q1 and also what we're seeing and Q2 on the transient side is reservations being booked much earlier and in the.
And the corresponding months and we've seen in the past so there's and there's a real desire for people to get out and.
Socially distance COVID-19 safe manner, and spend time with family and friends.
That is bringing with it.
And people would be and first time users and first time exposure to the RV space. So.
And we may anticipate to see some younger.
New customers come into the space and coming quarters, we haven't seen that come through our average age at this point, but I mean, it's a reasonable expectation and it would it would take a lot for the average age to change and so it'll take time for that to change within our portfolio.
And then just one final one from me. So obviously leverage is now at 557 times highest you've been in quite a bit.
Is there an expectation and this is going to come down and back that five times range, where you guys actually more comfortable with some higher leverage given how your performance during the pandemic.
I think I think we've long talked about the strength of our balance sheet and I think we're perfectly comfortable with.
With a higher leverage of a higher level of leverage.
We don't have a target that we're that we're aiming to meet.
Alright, that's it from me thanks, everyone. Thanks, Thank you Kim.
Thank you and next question comes from Joshua and Atlanta with Bank of America. Your line is now open.
And Marguerite and positive core growth, thanks to bill doing well.
And any thoughts on the thousands for Els product update we saw it.
And you had that had been and the planning for a while or witness an opportunity you saw because of COVID-19 to offer something new or unique on that side.
Yeah. So we do rollout and new program every few years, but really last fall as we continued we saw continued travel restrictions.
And weakness in our seasonal revenue stream, we built the product and focused on the demand we're seeing from our current customer base of course, we had issues with the Canadian customer base there.
Demand was there they just couldn't access and so.
And so we just thought people, we just thought people see and ways to have limited access to more properties and advanced booking windows and as I mentioned and so we were able to rollout that program in anticipation of that what we saw with some weaker.
Some weaker issues and the on the Canadian border front and seasonal friend.
Okay, Alright, and then.
Do you expect to see additional strength and the upgrades and two too many.
Kind of built and yeah, I mean, I think that what you see there is that uptick that I mentioned and the first as soon as the new product goes out and then I think it goes tends to fall more in line with our historical run rate.
Okay and then.
Transient revenues.
Yeah.
It seemed to come come and much better than expected per SKU.
And some of the weakness you are expecting the seasonal side.
How did that trend across the quarter and and.
Has that kind of trend continued into the early days of Q2.
Yeah, I mean, what we really saw in the quarter was.
And that March was the highlight of the quarter you saw really strong demand when as the weather got really bad towards the end of February.
Up North and then we just saw more activity at our properties and March and it is continuing into April.
Okay awesome.
Was it more weather driven or maybe COVID-19 cases come and yeah. I think it was a little bit of it was certainly a little bit of both.
But this happened to coincide ASIC as the availability of the vaccine.
And then you had you had strong.
The strong demand.
And so that that that helped and then you saw that the weather was really was really difficult and we saw strong demand and our keys properties at that time.
Awesome I appreciate the color.
Thanks, Jeff.
Thank you. Our next question comes from John Pawlowski with Green Street. Your line is now open.
Thanks for the time, maybe just a follow up question on the transaction market.
When you're looking at pricing and terms of private market pricing and MH and different different types of RV product is pricing getting to a point, where borderline irrational, where you'd start to maybe sell assets and buy back stock.
Yeah, I mean, I think that there are certainly some deals that are trading that you know that we've walked away from because we don't think the pricing makes sense, but I do think there are still a lot of opportunities out there for us and.
And to invest and.
And in accretive deals that would make sense for us and the long term. So I would say we will continue to continue to pursue those deals.
I guess, maybe a follow up direct question is your share price screening and more attractive than kind of a <unk>.
Bigger and bigger swaps and the private market across MH and RV right now yeah, I mean, I think that I think that the best use of our capital right now is to continue to invest in.
Invest and our properties invest and development and invest in.
And future acquisitions.
Okay.
And then just one follow up question on Paul Your opening remarks about one Q was better than expected, but the balance of this year is trending in line with prior expectations.
Is it a fair interpretation that if the positive trends on the transient and membership businesses continue and theres going to be additional upside.
Coming this next few quarters.
That's not a not an unreasonable statement to make.
Okay Alright.
Great. Thank you for the time.
Thanks, John.
Thank you as a reminder to ask a question you will need to press star one on your telephone.
Our next question comes from Todd Stender with Wells Fargo. Your line is now open.
Hi, Thanks, and good morning, Good morning, Chad Good morning, not sure. If I missed this was the Marina deal a widely marketed deal and any discussion about using op units or any other tax advantageous currency.
Sure.
The marine and deal was a deal that we had been working on and like I said towards the end of last year.
Widely marketed I would say maybe not so widely marketed was certainly it was certainly discuss with other there were other people that were interested and.
And as far as O P units and that was not something that the sellers, where we're interested in and so it was not a discussion point, okay just cash okay.
And can you share your your annual growth rate assumptions and the underwriting and maybe how that compares to how your underwriting our MH and RV right now.
Yeah, Let me, it's Patrick and ill, let me cover the RV business broadly.
Southern lines up Martin as Marguerite mentioned.
Similarly to our loggerhead portfolio and our experience on Lager Ed.
It's really stable.
Annual occupancy.
90% of the overall revenue comes from our slip income and as Paul referenced wallet high 90% of that comes from our annual customer base.
We see 3% to 4% type rate growth top line with some some periodic upside with occupancy and some rate opportunity and.
That is really translating to NOI growth and the range of 4%.
Subject to some of the same expense pressures that we're seeing and other property types.
Insurance and and real estate taxes. So overall, though the two portfolios are very similar heavily weighted coastal and in particular, Florida.
That's helpful. Patrick any capex and any comments from deferred maintenance just because it's such a new property type maybe just comment on what's required maybe going into it.
Yeah, I wouldn't I wouldn't say that it's a.
Deferred maintenance issue as we work our way through due diligence, but from a run rate perspective, the capital low it is.
More similar to RV than MH.
And we and colleagues is somewhere in the neighborhood of 5% to 7% of gross revenue on a on a roll forward basis.
That will ebb and flow depending on particular improvements across the portfolio.
Okay I'll, probably just last question Patrick just to stick with your back to back to home sales can you maybe just characterize it buying behavior and I know you spoke to the demand is so high but because your new home sales continue to outpace our.
Used home sales are our buyers paying and all cash are they as liquid as we think they are.
Yeah. So I've been same trend as it has been historically for us and them.
90, and 95% are cash buyers and just part of the point I'll make on the on the used home.
And we've reduced our used home inventory from a rental perspective pretty consistently over the last five years to six years, it's down 20% year over year. So some of that is just going to be.
A driver on our on the used homes that are actually available for sale and other.
And part of it is just due to reduced mobility at a time and COVID-19, but that's been normalizing over the last quarter or two.
Got it thank you.
Thanks Todd.
Thank you since we have no more questions on the line at this time I would like to turn it back over to Marguerite Nader for closing comments.
Thank you all for joining US today, we look forward to updating you on the next quarter's call take care.
This concludes today's conference call. Thank you for participating you may now disconnect.
And then.
[music].
Hi.
And.
Yes.
[music].