Q1 2021 Fidelity National Financial Inc Earnings Call
[music].
Good morning, ladies and gentlemen, and welcome to the F and F. 2021 first quarter earnings call.
During todays presentation, all parties will be in a listen only mode. Following the presentation. The conference will be opened for questions with instructions to follow at that time as the.
A reminder of this conference call is being recorded.
Now I'd like to turn the call over to Jamie Lillis Investor Relations for F. N of please go ahead Sir.
Thank you operator, and good morning, everyone. Thank you for joining our first quarter 2021 earnings Conference call. Joining me today is our CEO, Randy Quirk, President, Mike Nolan CFO, Tony Park, and F and G. CEO, Chris Blunt will begin with a brief strategic overview from Randy Mike will review the.
Title business and Chris will review of F N G and Tony will finish with the review of the financial highlights.
Well then open the call for your questions and finish with some concluding remarks from Randy.
But before we begin I would like to remind you that this conference call may contain forward looking statements that involve a number of risks and uncertainties in particular of the COVID-19 pandemic.
There is significant uncertainty about the duration and extent of the impact of this pandemic and.
Additionally, statements that are not historical facts, including statements about our expectations hopes intentions or strategies regarding the future are forward looking statements.
Forward looking statements are based on management's beliefs as well as assumptions made by and information currently available to management at the time of this call.
Because such statements are based on expectations as the future financial and operating results and are not statements of fact actual results may differ materially from those projected we undertake no obligation to update any forward looking statements, whether as a result of new information future events or otherwise the risks.
And of uncertainties, which forward looking statements are subject to include but are not limited to the risks and other factors detailed in our press release dated yesterday and in the statement regarding forward looking information risk factors and other sections of the company's form 10-K, and other filings with the S. E C.
This conference call will be available for replay via webcast at our website at F. N F. Dot com it'll also be available through phone replay beginning at three P. M. Eastern time today through May 14th the replay number is 84451 to two nine to one and the access.
Code is 13718683, let me now turn the call over to our CEO Randy.
Thank you Jamie.
I would like to start by thanking our employees for their interest and helping <unk> achieve industry, leading results to start the year.
Our team continued to perform at a high level, despite the challenging environment to way of all endured as they kept our operations running smoothly, while maintaining a steadfast focus on our customers.
And our title segment, we achieved record first quarter results generate and adjusted pre tax title earnings of Hive.
$512 million compared to 279 million and the year ago quarter and of <unk>.
19, 9% adjusted pretax title margin compared with 14, 4% and the first quarter of 2020.
We also continued to invest and technology as we roll out new applications, which enhanced the user experience and efficiency and safety of the title and closing process, while leveraging our unmatched national scale.
Mike will go into more detail on this and a minute.
Turning to F and G and we continue to execute on our growth strategy with strong top line growth and bottom line profitability during the quarter.
Fixed index annuity sales for the quarter were at record levels and gross was further fueled.
Fire of momentum and the bank and broker dealer channel, where we are gaining significant traction within the first year of launch.
As a result of our asset growth and disciplined approach to managing net investment spread we delivered strong earnings during the first quarter, which Chris will discuss further and a few minutes.
The credit rating upgrades as a result of of the acquisition has enabled us to actively pursue expansion and.
And two institutional products, such as the pension risk transfer market, which would be of significant or strategic focus this year.
With the strong growth opportunities that we see additional capital will be necessary to realize F and G useful potential however.
However, our current plan includes utilizing a third party of reinsurance strategy to provide that necessary gross capital.
And also includes an expected return of capital of $150 million annually from F and G to FNF or roughly 6% of our original investment beginning in 2020 two.
We believe this is the meaningful return on capital capital and the sustainable long term.
Looking forward, we remain committed to long term value creation for our shareholders tour of our thoughtful capital allocation program, while also focusing on supporting the future growth of our business.
Yesterday, we announced the quarterly cash dividend of <unk> 30 success for sure and at the end of 2020, We announced a share buyback program of $500 million. During the first quarter. We purchased two 8 million shares for $112 million and an average price of 39 95 per share and <unk>.
Since announcing the buyback plan and we have purchased six 9 million shares for $264 million and on average price of $38 28 per share.
Let me now turn the call over to Mike Nolan to discuss the title insurance business and more detail. Thanks.
Thank you Randy Randy touched upon our record first quarter results as we continued to benefit from low interest rates driving strong origination of demand and the continued rebound and commercial real estate activity.
For the first quarter, we generated adjusted pre tax title earnings of $512 million and 84% increase over the first quarter of 2020.
Our adjusted pretax title margin was 19, 9%, a 550 basis point increase over the prior year quarter.
We had of 58% increase and direct orders closed driven by a 103% increase and daily refinance orders closed a 21% increase and daily purchase orders closed and a 12% increase and total commercial orders closed.
Total commercial revenue was $257 million compared with the year ago quarter of $245 million due to the 12% increase and closed orders while total commercial fee per file was down slightly compared to the year ago quarter.
For the first quarter total orders opened averaged 12006 hundred per day.
And with January at 13005 hundred <unk>.
February of 13300 and March at 11004 hundred.
For April total total orders opened or over 10007 hundred per day, as we continue to see strong demand and purchase activity.
While we have begun to see some decline and the refinance market compared to last year's robust levels.
Daily purchase orders opened were up 18% and the quarter versus the prior year for April daily purchase orders opened were up 90% versus the prior year.
Refinance orders opened increased by 15% on a daily basis versus the first quarter of 2020.
For April daily refinance orders opened were down 23% versus the prior year.
Lastly, total commercial orders opened per day increased by 12% over the first quarter of 2020.
Commercial open orders per day remained strong compared to the fourth quarter ended the year ago first quarter.
For April total commercial orders opened per day were up 72% over April of 2020.
We remain optimistic that the order volumes, we have seen over the last several quarters, we will drive strong commercial performance and 2021.
We are also pleased with the ongoing rollout of our strategic technology initiatives that improve the production and delivery of our core products and services and better the overall transaction experience of homebuyers and sellers powers and real estate professionals.
Our proprietary title automation technology, and the engines that search and collect and process data remain at the core of our operations.
Our digital and her experience platform continues to be deployed and has been well received by our expert and local escrow and settlement employees consumers and clients.
Let me now turn the call over to Chris Blunt to review <unk> first quarter highlights.
Thanks, Mike on the first quarter kicked off a great start to 2021 with record sales levels are fixed indexed annuity or FIA sales and the first quarter were $1 billion up 11% from the sequential quarter.
Total annuity sales of $1 6 billion in the first quarter were up 16% from the sequential quarter. We continue to see significant growth ahead, driven by strong momentum and our primary independent agent channel and traction in new channels.
We're now three quarters into our financial institutions channel launch and continue to be thrilled with the results. The first quarter total annuity results include $410 million from our newest channel and we expect the comfortably exceed our $1 billion goal for 2021.
With these strong sales results, we grew average assets under management or <unk>.
The 29 billion driven by approximately $1 1 billion of net new business flows in the first quarter our spread results continue to track in line with historical trends.
Demonstrating our continued pricing discipline and active in force management to achieve targeted spread.
Total product net investment spread was 255 basis points from the quarter and FIA net investment spread was 298 basis points.
Adjusted net earnings for the first quarter were 78 million strong earnings were driven by steady spread results and AUM.
AUM growth.
Net favorable items in the period were $12 million, primarily as a result of favorable mortality and investment income on CLO redemptions held at a discount to par.
Adjusted net earnings excluding notable items were $66 million up from $60 million and the fourth quarter, which included $4 million of higher strategic spend for faster than expected launch into new channels.
Turning briefly to the investment portfolio as of quarter end of the portfolio's net unrealized gain position remained strong at $1 1 billion and there were no credit related impairments in the quarter.
In summary, we continue to execute on our plan coming out of the <unk> acquisition, and we remain confident and our future prospects.
With that and we'll now turn the call over to Tony Park to review <unk> first quarter financial highlights.
Thank you, Chris we generated $3 1 billion and total revenue and the first quarter with the title segment, producing $2 5 billion.
The F&B producing $539 million and the corporate segment generating $42 million first quarter net earnings were $605 million, which includes net recognized gains of $43 million versus net recognized losses of $320 million and the first quarter of 2020 the net.
Recognize gains and losses and each period are primarily due to mark to market accounting treatment of equity and preferred stock securities whether the securities were disposed of in the quarter or continue to be held on our investment portfolio.
Excluding net recognized gains and losses, our total revenue was $3 1 billion as compared with $1 9 billion.
And the first quarter of 2020.
Adjusted net earnings from continuing operations were $455 million or $1 56 per diluted share.
The title segment contributed $395 million F&B contributed $78 million and the corporate and other segment had an adjusted net loss of $18 million.
Excluding net recognized losses of $59 million, our title segment generated $2 6 billion and total revenue for the first quarter compared with $1 9 billion and the first quarter of 2020.
Direct premiums increased by 37% versus the first quarter of 2020.
Agency revenue grew by 45% and escrow title related and other fees increased by 22% versus the prior year.
Personnel costs increased by 18% and other operating expenses increased by 7% on.
And the title business generated a 19, 9% adjusted pretax title margin, representing a 550 basis point increase versus the first quarter of 2020.
Interest income and the title and corporate segments of $29 million declined $24 million as compared with the prior year quarter due to reduction of short term interest rates on our corporate cash balances and our 10 31 exchange business.
FNF debt outstanding was $2 $7 billion on March 31, four of debt to total capital ratio of 24, 6%.
Our title claims paid of $46 million were $35 million lower than our provision of $81 million for the quarter. The carried reserve for title claim losses is currently $87 million or five 7% above the actuary central estimate.
We continue to provide for title claims at four 5% of total title premiums.
Finally, our title and corporate investment portfolio totaled $5 9 billion at March 31 included and the $5 9 billion are fixed maturity and preferred securities of $2 3 billion with an average duration of two nine years and and average rating of <unk>.
Equity Securities of $1 3 billion short term and other investments of $300 million.
And cash of $2 billion, we ended the quarter with just over $1 1 billion and cash and short term liquid investments at the holding company level.
Let me now turn the call back to our operator to allow for any questions.
Thank you ladies and gentlemen at this time, we will be conducting a question and answer session. If you'd like to ask the question you May Press star one on your telephone keypad. The confirmation tone will indicate your line is and the question queue. You May Press Star two if you would like to remove your question from the Q4 participants using speaker equipment and may be necessary to pick up your handset before.
And perhaps even the starkey sorry.
Our first question comes from the line of John Campbell with Stephens. Please proceed with your question.
Hey, guys. Good morning, Congrats on a great quarter, Hey, Thanks, John Good morning.
On the centralized refi channel I, just want to touch on that real fast. If you guys can maybe just talk to maybe the percent of refi orders running through that channel now and then.
And just to kind of Directionally, how the margins of looked in the channel over the last couple of quarters sure John It's Mike.
Generally service link has about 25% to 30% of our open <unk>.
Refi volume it can move around depending on the month, but that's a that's a pretty good number over time and the.
The first quarter margins were 36%, which is really strong.
The margin, obviously and the centralized refi channel I think that was up against.
The 33, or so 33% year earlier and the prior year and we've had nice revenue growth. There I think the revenues up 81% quarter over quarter. So pleased with what we've seen on the service line and 34% and the fourth quarter of 2020, so pretty consistent.
Okay. That's helpful. And then as we think about the prospects of refi, maybe lightening up a little bit here next couple of quarters.
How easy is it.
And that type of margin on the way down.
Well channel will do what we always do as we see those volumes come out, particularly and refi.
Have to adjust our expenses.
Accordingly.
Whether you can maintain.
The 36% margin.
It's really a function of just how far its falling off.
But.
We're pretty confident that we can.
We can manage the expenses as those those orders fall off as they do.
Okay, It makes sense and and the $1 $1 billion of cash.
At the holding company level and that seems like that's the way above what you guys typically carry.
And any particular reason that's and.
Such a high level and any thoughts about what you might do with that over the next couple of quarters.
Yes, John this is Tony of it's a good question and you're right. When you are generating the kind of cash flow that we are it does accumulate we started the quarter at about $1 billion, we upstream from both regulated and.
Unregulated subs about $400 million, we spent $107 million on our common dividend of about $30 million and interest expense and as we mentioned earlier of $112 million and buybacks. So we landed a little over $1 1 billion at the end of Q.
One.
We'll look.
And for various uses as we work our way through the year, obviously, our dividend is very important to us and that'll that'll run us a little over $400 million for the course of.
And of 2021, we have about $80 million and interest expense obligations throughout the year.
We have another roughly we're about halfway through our commitment of $500 million and buybacks.
So we have about $250 million left over the course of.
Of really into the third quarter or to exhaust that commitment and then the board will have to.
Take a look at where we stand.
In terms of the authorization, but my expectation would be that they would strongly consider re upping on the buyback if we.
Continue to sit on large volume of cash as I would expect we do I mean, we're going to we're going to have a strong cash flow year I believe again similar to what we did last year and the year before probably.
Well north of $1 billion and cash flowing up to pair. It. So we'll see where we stand I think you heard and Randy's comments.
It's around the F and G. We believe now it won't start until 2022, but we.
We do believe that we'll be getting a return of capital from F and G based on our expectations and strategies. There. So that will just add to the corporate coffers in terms of cash.
Flowing up to the parent and now we may provide some leverage they have room to borrow on <unk> balance sheet. So we may provide some intercompany leverage to them.
To the tune of maybe $350 million, so that can be of use and of course M&A opportunities that show up on the title side. We're always looking some of those show up on where we buy them within the title subs and some of them use the parent company cash so I know kind of a long winded explanation, but that's.
That's where we stand and and of course, it's a good problem to half of $1 billion plus dollars and the parent company cash.
And that's a rich man's problem.
And that's a good place to be for sure if I can squeeze and maybe one more here and.
I'm guessing this has fallen off probably a pretty good bit over the last.
Two years, but how big is the 10 and 31 exchange business know how much you guys generating out of that now.
But.
I don't have that number right in front of me on early.
And I do have on the interest side, which is I would say the biggest part of it it's fallen off substantially we were running.
Call it almost $19 million of quarter and interest income and our 10 31 exchange business and now its running $4 million on a quarterly basis. So we've already seen that in fact, we have seen that over the last several quarters I think our net spread there is something like 33 basis points, which is well.
It does better than short term money right now, but it's it's well off the almost 200 basis points that we were earning back.
Before the the fed made those adjustments in terms of falling off from a business standpoint that hasn't happened at all I mean, we're between what four and $5 billion and balance the we're actually a little bit over $5 billion.
Actually at record balance levels, John and record transactional levels, but I did I did pull up a number of while Tony the speaking and.
Because of the change in rates, even though we have record transaction levels as I've said and balances our revenue first quarter over first quarter last year is down $9 million.
From 22 last year. The 13 this year and if you went back one more year there'll be another substantial falloff because this has been kind of a two year.
Following knife, if you will around the rates.
Yes makes sense.
And I guess, we'll have to wait and see what the by the administration doesn't and 10 31 exchange of of 4 million of quarter. It seems like it's pretty variable either way. It goes okay. Thanks guys.
Okay.
Our next question comes from the line of Mark the rise with Barclays. Please proceed with your question.
Yes.
And about the.
The implications of the.
The really robust home price depreciation we've been seeing for kind of average revenue per order.
Is it still right to assume that roughly 50% of that gets kind of passed on so if we've had.
12% HPA over the last year that <unk> got a nice let's call it 6%.
And kind of tailwind to average revenue per order kind of just ignoring the impact of mix.
Yes, I think Thats fair, Mark 50, or 60% is kind of a staggered scale. So it's a little.
Yes, you earn more on a $200000 hall as a percentage of than you do on a $300000. So it's kind of a gradual increase but yes, we certainly benefit from home price appreciation I did some rough numbers and on the purchase of the refi side has been fairly consistent for a long period of.
Time at roughly a $1000 and order title.
And closing on the purchase side, though I did some rough numbers I think it was March to March or April to April and it looked to me like we've seen about a 14% increase and average fee per file now some of that may be geography, and and deal size, but some of that certainly is going to be just just home price appreciation.
Okay. That's helpful. And then if you could just give us some some color on what you're seeing and your commercial pipeline.
Kind of.
The deal size.
I'm, just kind of diversity of transactions youre seeing and how that's shaping up.
And Mark, it's Mike and as I said and the open and we're very optimistic on commercial.
A couple of data points and the first quarter.
Our average open orders per day or over 1000 total commercial orders, we've never done that before so that's a record April was also over a 1000 and so that just gives you an idea of the sort of the transactional velocity we're seeing.
<unk> also seen good gross and our national orders and the first quarter up high single digits.
Both for the fourth quarter last year, and the first quarter last year. So.
That's very encouraging.
And.
I would say our national commercial managers are reporting and optimistic that.
And we're seeing some some bigger transactions coming back into place of multi sites.
So I think of that will bode well as we as we get into the second and third quarters kind of from an asset class standpoint.
It's pretty similar to what we've talked about before is still seeing strength and.
The multifamily and industrial.
Those are probably the key.
<unk> strong asset classes across the past quarters.
Energy of gaming kind of in and out but very good when we have it.
And I think health and medical is another area that is a good segment and I think people are optimistic that.
We might see some.
Some improvement and some of the segments that of lag more of like retail and hospitality as we move into the year and kind of on a geographic basis.
And all markets are improving and we're even seeing and New York.
The kind of had that as one of the tougher markets given given the shutdowns, there and and other things.
And a nice rebound there and.
I think as the economy further opens up.
It bodes very well for commercial.
Okay, and how are those commercial margins coming on relative to your average total margins.
Our first quarter.
And it looks like commercial margins were for a national operation So not our total commercial because thats kind of embedded.
At 26% and our direct operations, which include.
The local commercial or just under 29% so pretty similar I think those national.
Margins on kind of come up as we go through the year and we close more.
Hopefully larger transactions and just more transactions overall.
Okay, great. Thank you.
Okay.
Our next question comes from the line of Andrew <unk> with Credit Suisse. Please proceed with your question.
Hey, good afternoon. So.
Just following up on the earlier question about capital deployment.
I think in the past we've talked about.
Fidelity national being able to run on the hole at the Holdco unencumbered unencumbered with up to as low as 150 million of of cash so the.
Question is.
Where is the good place for it to be.
What you were talking about being at a 1 billion won and with a lot of cash flow coming up to the holdco.
Hi.
Whats kind of a comfortable area, where you'd like to be.
And.
Perhaps you could talk about some of the spin.
The specific M&A opportunities that you might be seeing out there right now.
Yes, just on the comfort level and in cash of $150 million.
And he is probably adequate only because.
We do expect recurring regular dividends up from our subs now if we entered a period of time, where the market. We're a little more challenging than you would probably want to be sitting on a little more of that.
We have to be cognizant of that as it comes due most of our debt has been been extended out and is frankly pretty cheap, but we do have I think $400 million of debt coming due.
In September of 2022, so thats something thats in the back of the mind of little bit but.
Yes, I mean, it is a good problem to have to be flush with cash at this point I think the the buyback is is.
The second only maybe to the dividend the buyback is is very prominent.
And so you guys want to comment a little bit on that.
I would just say this is Randy.
And we probably have.
15, 20 and potential acquisitions of <unk>.
Round the country on the board.
And that we're looking at relative to the.
The agency the agency side of our business.
Some some small maybe some escrow companies and then some some medium to larger opportunities, but we always have those and the flow and work those pretty regularly.
And I know, which ones are going to come to fruition, yet, but we stand of play with that on a regular basis to kind of fill out our footprint, which is pretty extensive but theres still more opportunities.
We've got two of three that are on the board that looked like the.
That they might.
Get to conclusion.
And we'd have a real estate technology companies.
We're always looking at.
And maybe adding to R. R.
Our our.
Of our menu of services.
The lead.
The lead generation business the CRM business.
So we were saying and play we just need to get to the to the right deals that makes sense and then that will execute.
I see so it sounds like there are some deals that could absorb.
The bulk of that debt.
Cash at the Holdco now.
Well I would say that these are not large large deals and they take some time and.
We passed on on menu and we move on others, but I don't know Tony you might talk about how that all adds up but.
But they are there.
But for the most part of midsize of acquisitions, I can say of England and $100 million to $300 million, maybe on the on title company acquisitions, I don't think it would be anything more than that.
Got it and just a quick follow up on that really solid answered and the commercial question. So I mean with closed orders up 12% and the quarter open orders up 10%.
It kind of.
The read through would be that.
And it could be that or even better as we go through the year was that the right read on your earlier response.
Well.
You mean in terms of of that being the trend for future quarters.
And yes, I don't know that I am saying that Andrew.
Because you.
You have more volatility really and commercial.
Order flow quarter to quarter, but.
We are seeing record levels of commercial orders right now and that really bodes well for I think closings as we go through the next the next few quarters and also incur.
Encouraged by the <unk>.
Improvement in orders and the national operations, which.
The bar a little bit more of the brunt of the falloff and the pandemic last year.
And just as a maybe a reminder.
We of 21 national commercial offices, and they generate about 60% of the of the total revenue and commercial and the company. So they are very very important and then about 40% is done through our local distributed footprint. That's also handling residential refinancing.
Purchase transactions.
Got it and just one last one for Chris the Mic of business.
And.
$460 million and retail value I think that was fourfold versus last year and the same quarter.
And it sounds like it's these new channels, but maybe Chris.
Could you give a little color on.
Is that number of kind of leveled out.
Think it could grow a lot and.
Whats the competitive landscape are you getting good returns and that business.
Yeah, Great question, so yeah that business has been quite steady.
You know its a core product for banks and particular, unlike the independent agent channel, where we're always quite competitive but it was.
And much more of an opportunistic our secondary product for that channel. So I do think we're going to continue to see growth. There. We do like the returns that we're getting obviously, it's not the same margin that we get on FIA sales, but what we're really pleased with is where we're selling fix.
Fixed annuities, we are getting the flow through and also selling indexed annuity. So it is a bit of a door opener and very easy thing and as an excuse for new producers to get licensed with your company learn the F&B story so.
And what we're most pleased with is that is then translating into the cross sale and getting them interested and our FIA products. So we feel really really good about the direction of the channel right now and the other is just banks are drowning and deposit I mean, you probably read this everywhere, but the numbers are just astronomical and they don't have any place to put the money and.
Annuity revenues to become a meaningful source of revenue for the banks. So they are not only not fighting and they are quite supportive of us.
Selling and fixed annuities through their channels.
Thanks, Chris.
As a reminder, ladies and gentlemen, it is star one new asking the question. Our next question comes from the line of Bose George with <unk>. Please proceed with your question.
Hey, guys good afternoon.
The question.
On the margin.
And what was the margin on the agency channel of the Florida.
The agency margin for the quarter was 10% which is.
Well it might be the best quarter, we've ever had are right there with the best quarter. We've had in terms of the terms of agency that compares up against seven 9% and.
And.
And the prior year actually the fourth quarter was 10, 4%. So we're just down from the fourth quarter, but still a really strong really strong margin and I think fourth quarter was a record at 10 four.
Great.
Thank you.
And in terms of the operating earnings this quarter or should we just sort of pull on that.
The $1 billion.
The other one time items and zelle.
And of a reasonable run rate.
Okay.
Yes, I'd, probably say maybe pull out half of it and the reason I say that is we've had very consistent mortality gains and our spear book our immediate annuity book its a very.
And the polite way, it's an old group of policies, So average ages and the eighties.
So there's more upside than downside there so that that's core clearly we saw some elevated mortality gains and I suspect we're doing the analysis I suspected sadly COVID-19 related so I think if you look back over time, we've average probably $6 million of quarter last year of positive gain there. This this one was.
The 16.
So.
You said, the 66 versus the 78 of it it's probably somewhere in between the two.
Okay, Great that's helpful and then.
Just one follow up on the question about the 10 31.
On the in terms of transactions of commercial transaction.
If it's a 10 31 transactions happen do you know what percentage that is of your transactions or when it takes place you don't necessarily notice of <unk> 31, and not or just any color on.
And the percentage of that volume as the total commercial volume.
I don't think we have that number.
<unk>.
Tony I, just don't think we have that.
And on either.
Not every 10 31 exchanges of commercial no. There's a lot of residential actually 10 30 ones.
Yes.
I think we've also learned just looking at the the <unk>.
Proposed tax policy, which certainly isn't policy yet.
And at least I learned that a lot of our transactions are actually well below $500000 and proceeds.
I mean, I don't know how much of the gain is included in that but the fact that the 500000 as proceeds you know the gain is lower than that and so there is there's really a lot of it I guess would be on impacted by policy change right.
Okay. That's helpful. Okay, great. Thanks, a lot of times thanks, both of those.
Yeah.
There are no further questions and the queue I'd like to hand, the call back to Randy Quirk for closing remarks.
Thank you.
Very pleased with our first quarter title results as the year is off to a great start our team continues to execute delivery and industry leading performance.
In addition to our title results F&B and strong results solid investment portfolio and growth initiatives remain on track and we look forward to their further execution on these initiatives in 2021.
Lastly, our capital allocation priorities remain focused on deploying capital in a way that best maximize the shareholder value through our quarterly dividend share repurchases and continued investment and our business.
We look forward to speaking with you and updating you on our second quarter earnings call.
Thank you.
Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation you may disconnect. Your lines at this time and have a wonderful day.