Q2 2021 Landsea Homes Corp Earnings Call
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Good afternoon, everyone and thank you for participating in today's conference call to <unk>.
Discuss Lindsay homes financial results for the second quarter ended June 30th 2021.
Joining us today are lanzi homes the.
Oh and in terms of the F O John Holmes Chief.
Chief Accounting Officer, Trent, and Shreiner, President and C O O.
Michael Force them and the company's external director of Investor Relations Cody Cree.
Following their remarks, we'll open the call for your questions before we go further I would like to turn the call over to Mr. Free at the read the Companys Safe Harbor statement within the meaning of the private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward looking statements Cody. Please go ahead.
Thanks, Operator. This call will include forward looking statements within the meaning of the federal securities laws, including but not limited to our expectations for future financial performance business strategies or expectations, where our business, including as they relate to anticipated effects of the business combination. These state.
<unk> constitute projections for cash and forward looking statements and are not guarantees of performance P&C homes cautions that forward looking statements are subject to numerous assumptions risks and uncertainties, which change over time.
Words, such as of May can and should will estimate plan project forecast intend expect anticipate believe seek target look or similar expressions may identify forward looking statements.
Specifically forward looking statements may include statements relating to the benefits of the business combination and the vintage of the state homes acquisition and future financial performance of the company changes and the market for Atlanta homes products and services.
And other expansion plans and opportunities.
These forward looking statements are based on information available as of the date of this call and our management's current expectations forecasts and assumptions and involve a number of judgments risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward looking statements.
These risks and uncertainties include but are not limited to the risk factors described by land and sea homes and its filings with the Securities and Exchange Commission.
These factors and those identified elsewhere and this conference call among others could cause actual results to differ materially from historical performance and include but are not limited to the.
And the ability of the recognized anticipated benefits of the business combination and the vintage of the state homes acquisition, which may be affected by among other things competition and the ability to integrate the combined business and the acquired business and the ability of the combined business and the acquired business to grow and manage growth profitably costs related to.
And the business combination the ability to maintain the listing of NASDAQ homes securities on NASDAQ the outcome of any legal proceedings that me and the Navy instituted against the company changes and applicable laws or regulations and the inability to launch new land and sea homes products or services or to profitably expand into new markets.
And the possibility that the company may be adversely affected by other economic business and or competitive factors.
And other risks and uncertainties indicated and land and sea homes, and SEC reports or documents filed or to be filed with the SEC filing and see homes. Accordingly forward looking statements should not be relied upon as representing our views as of any subsequent date and you should not place undue reliance on these forward looking statements and disc.
Riding and whether to invest and our securities. We do not undertake any obligation to update forward looking statements to reflect the events or circumstances. After the day. They were made whether as a result of new information future events or otherwise, except as may be required under applicable securities laws.
I would also like to remind everyone that this call will be available for replay starting at 1 P. M. Eastern time today through the same time on August 13th 2021.
<unk> cast replay will also be available via the link provided in today's press release as well as on the company's website Atlanta homes Dotcom and.
In addition, a supplemental earnings presentation has been posted on the Investor Relations portion of the site that we encourage you to view now I would like to turn the call over to the CEO of plants the homes, John Hal John over to you.
Thank you Cody and good morning, everyone.
We are pleased that youre able to join us on today's call.
First I'll provide a high level overview of our second quarter 2021 and results and highlights. After this I will hand, it over to trend, China, Our chief accounting officer to discuss our financials in more detail and then Mike for some of our.
<unk> and C O L price provide updates on the integration of vintage of stay at homes and Atlanta homes.
Before we begin I would like to take a moment to recognize our commitment of adult performance. During the second quarter is the continued strength across the housing market led to another quarter of strong results.
Not only did our total home sales increase of 152% from the prior year with 125% organic growth.
While our backlog expanded to a record 1197 homes and.
Asps continue to rise because of our efforts to capitalize on our current demand driven pricing power.
This resulted in a 530 basis point increase and are just.
At home sales gross margin and significant increases and our profitability from the prior year.
Could not be proud of the hard work that went into these results and I would like to highlight several key accomplishments that we've achieved since our last call.
Starting on the West Coast, we disclosed the acquisition of 182 homes sites at the Alameda Marina community and California to Sony 20 miles out from Oakland and San Francisco. This will result in a conscious of the construction of homes, ranging from 1000, and 462 square feet to 2000, and 689 and participation with the <unk>.
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Sales are expected to commence in the summer of 2020, 2 with roughly 15% of the homes created by Lantzy to be offered under the counties of affordable housing program.
Moving South we announced the number of new acquisitions to expand our presence in the greater Phoenix, Arizona market and.
And May we announced a 193, new homesites and north copper Canyon and in surprise, Arizona Landsea has seen tremendous success and the community with 697 homes sales sales since 2018.
Buyers appreciate the community for its modern spacious and high quality homes at attainable price points and it's convenient location, just 45 minutes from downtown and Sky Harbor International Airport.
Construction is underway today, and we expect sales to come online and spring of 2022.
In June we closed on an additional 863 homes sites and our communities of bet rich and Citrus Park.
That rich is located and the heart of Buckeye, Arizona and its nearby our highly successful Sundance community, which only has a few available homesites of remaining the.
The acquisition gives us a chance to offer of second collection of plants with the larger square footage, while providing a great opportunity to continue our presence within the advent of community that we truly enjoy.
Meanwhile, our homesites of Citrus Park located in Goodyear, Arizona with feature of blend of court style of traditional single family homes and the community that offers residents of rural feel where the resort style amenities, just 30 minutes from downtown Phoenix construction of both Homesites of set to begin next year with sales expected to commence in fall of 2022.
Finishing with the east coast shortly after the entering the Florida market and a big way.
The closing of our $54.6 million acquisition of vintage of state homes, We announced the acquisition of 108, new homes sites at Eagle crest and of grant and grant Macquarrie of of Florida.
The community will offer of single family homes on oversight oversight lot ranging from half to 1 acre with the backdrop, featuring the beautiful waters and wildlife conservation.
The conservation.
With the location of its been its from the best shopping dining and beaches and parks as well as prominent employers such as L..3 Paris, Northrop Grumman and bear Air we're pleased with the prospects Eagle crest will offer its future residents.
Florida is a very important market to our strategy of Atlanta.
And it is imperative that we continue to deliver on our execution.
The recent appointment of of William poised to serve as Vice President of homebuilding operations for Florida Division represents a meaningful measure to fulfill on the subjective.
Green prior experience from toll brothers and Richmond American homes. The lead was an important part of and M&A team doing our purchase of vintage of stay at homes and brings vital knowledge to the role of that will help us grow our operations and Florida.
And most recently he served as director of corporate homebuilding operations, where he played a key role and the implementation of the company's high performance homes, which included the home automation and energy efficiency and sustainability of features.
Finally, I'd like to take them all of them to call. It a major milestone for Landsea as a public company.
And our enclosure inclusion and the Russell 3000 and texts that occurred at the end of June.
This inclusion expands the reach of our exciting story to a wider swath of investors.
And of this development can up and more opportune as we firmly believe we are in the midst of 1 of the most of finding periods of the Companys history.
Our business has continued to experience accelerating momentum aided by the tailwind of the housing market and the accretive benefits, resulting from our acquisition of vintage of stay at homes.
The operational execution of our team has helped us sustain our organic sales growth through challenges and our supply of supply chain, while expanding our gross margins and accruing the largest backlog the company has ever seen.
Once again, increasing our full year outlook, which I will expand upon shortly and we continue to look forward to all week and achieved in the coming quarters as we strive to deliver value for our shareholders.
With that I'll now turn the call over to Trent, China, Our Chief Accounting officer, Brett over to you.
Thank you John and good morning, everyone jumping right into our financials for the quarter total revenue increased 163% to $250.3 million compared to $95.1 million and the second quarter of 2020.
Excluding revenue generated from the vintage of state's homes total revenue increased organically by 125 per cent.
Within our total revenue, we generated $10.7 million from lot sales and others compared to no lot sales and the second quarter of 2020.
It's worth pointing out that our lot sales this quarter was larger than anticipated and this line item now includes an incremental benefit from fee revenue through our acquisition of vintage of stay at home.
Our total home sales increased to 152%.
$2.239.6 million compared to $95.1 million and the prior year period.
Excluding the revenue generated from vintage of stay at homes total homes sales increased organically by 122 per cent.
Total home deliveries during the quarter increased 79% to 425 homes and an average sales price of 553000 compared to 237 homes delivered at an average sales price of 401000 and the second quarter of 2020.
Excluding new home deliveries generated from vintage the stay at homes.
Total deliveries increased organically by 48%.
Our average selling price increased significantly largely due to the continued shortage of supply and available homes compared to housing demand across our operating markets, which has led to favorable favorable pricing power.
During the second quarter.
There were 330 net new home orders orders with a dollar value of $207.3 million.
And average sales price of 628000 and monthly absorption rate of 3.5 sales per active community.
This compares to 459 homes with a dollar value of $207 million and average sales price of 451000, and a monthly absorption rate of 4.8 sales per active community and the prior year period.
Okay.
Adjusted home sales gross margin and the second quarter increased 530 basis points to 23, 5% compared to $18.2 and the prior year period.
Yeah.
The benefit to our margin profile was driven by our strategy to proactively manage sales volume to better align with production, while mitigating the adverse impact of elevated costs.
Net income attributable to Landsea homes, and the second quarter increased to $10.7 million compared to a net loss attributable to Lindsay homes of $20.3 million and the prior year period.
Adjusted net income attributable to Lindsay homes was $17.5 million compared to $3.8 million loss and the prior year period.
The diluted earnings per share is 23.
And our adjusted diluted earnings per share is 38 cents.
Adjusted EBITDA increased significantly to $32.6 million compared to $3 million loss and the prior year quarter.
Looking at our liquidity we ended the second quarter was the $147.3 million and cash and cash equivalents compared to $105.8 million at December 31, 2022.
Total debt was $391.8 million compared to $264.8 million at the end of 2020.
The ratio of debt to capital was 48% at June 30 of 2021 compared to 33, 3% at December 31 and 2020.
And our net debt to net capitalization ratio was $30.1 compared to $22.6 at December 31, and 2020.
Now as John mentioned earlier, we are increasing our full year 2021 outlook as a result of our strong Q2 results that exceeded expectations and the continued strong organic growth, we anticipate and to reflect the added results of vintage of stay at homes from our main fourth closing date through the end of the year.
For 2021, we now expect to report between $960 million to 1.12 billion and total revenue with 1930 to 2030 total homes now expected to be delivered at an average sales price of.
497000 to 529000.
Out of this total we expect between $28 million and $35 million and revenues to be generated from lot sales and others.
Home sales gross margin and is expected to be 16, 9% to 17, 8% and adjusted home sales gross margin is expected to be 21, 9% to 22, 5%.
With the top line increase we now expect reported adjusted net income attributable to land and sea homes between $53 million to $61 million in 2021.
The second consecutive upward revision reflects our commitment to leveraging our financial position to capitalize on growth opportunities confidence and our talented people and conviction that the industry tailwind is present today are showing no signs of slowing and the near term and.
And I'll pass it to our president and COO, Mike Force them to provide more color around our operational successes and strategic vision moving forward Mike.
Thanks, Brent and thank you all for joining the call today and as John mentioned earlier and the call we've been hard at work and integrating our teams since the closing of our acquisition of vintage of stage homes, and a really bad and.
Very proud of our combined teams performance over the past few months and I am pleased to share an update on our operational progress.
And as we mentioned and our last call the <unk>.
The acquisition has ushered in the entry of Landsea homes into the Florida of homebuilding market, which we have consolidated and to a single division operating out of Melbourne, Florida currently.
Today, the financial reporting from the New Florida Division has been converted and captured in our system and this has been the case since the first month of our operation.
And our I T team led by Karen Drescher identified opportunities to increase efficiencies and convert existing vintage of state systems and technologies into current land and sea equivalents. These efficiencies included the standardization of hardware and networking components as well as implementing an enterprise software so.
Lucian the.
The result is improved operational performance of the divisions it resources, a higher level of security and the assurance of continuity and the event of the cyber incident.
The operations team identified and establish cost control measures.
As well as a process to streamline plan offerings and customization.
There was close cooperation with long tenured then to the state's home team members, who brought a wealth of experience and established practices totally and see homes, and addition to timely and important market information.
That said, we continue to leverage our extensive expertise and homebuilding as we look to future projects in Florida.
The development has begun for the upcoming community courtyards, and waterstone and where we're focused on leveraging the successes from our product development work and Arizona to bring efficient and affordable homes to the Palm Bay market and beyond.
We are pleased with our prospects for future communities in Florida, and we look forward to the upcoming home opening of Georgia, and our reserve next month.
The first in the market under the Glancy homes brand.
On the note of branding of.
All former vintage and stayed home sales offices were converted into Atlanta homes locations within 30 days of the closing.
That includes onsite and Offsite signage sales office displays all collateral materials and inclusion on our refreshed landsea homes website and.
Additionally, we refresh the model homes and 4 active communities and provided all of sales associates with extensive onsite team training and the Lansing homes story and the company's core values and order to ensure a consistent experience for all of our customers across the nation.
I'm grateful for all of the hard work that went into the the transition and I am pleased to report that this forward thinking and hard work has already begun to pay off the new landscape, Florida Division exceeded our acquisition plan for closing the unit counts and revenue for the first 2 months of operation.
Equally important our operational costs had been better than plan and the initial months of operation due in large parts of the efficiencies integrated from operating as a single division.
And the team is growing and we've added 3 new members, including and Internet sales consultant.
Former Landsea employee who moved from 2 Florida from California, and that's back with our company.
Incidentally most of the vintage and state employees have remainder of Clancy homes post acquisition, achieving our goal of retaining top talent.
This allows us to continue to focus on identifying and pursuing and pursuing additional growth opportunities and the Florida and Texas markets.
When the right opportunity arises we are well positioned to execute the deal rebrand the assets and expand last and see homes reached and these key areas.
As we look ahead I am confident that these capabilities will be invaluable assets as we proceed forward with our long term strategy.
I want to remind everyone that vintage of state homes was landsea homes third acquisition and just over 24 months each.
Each M&A opportunity allows us to fine tune, our processes and procedures and.
As we continue to identify the right opportunities for growth and the right markets across the country at the right time.
We are well positioned not only to leverage this experience as we discover new opportunities to expand and strengthen our brand, but perhaps more importantly to execute a rapid integration of acquired assets and talent under land and sea I look forward to what our team has planned for the quarters to come and I am very proud of here to have the opportunity to be of part of this ongoing.
<unk> journey, operator, we're now ready for Q&A.
Thank you Sir.
As a reminder to ask the question you will need the press star 1 on your telephone to remove yourself from the queue. Please press the pound key please standby, while we compile the Q&A roster.
Our first question comes from Matthew Bouley with Barclays. Your line is now open.
Hey, good morning, everyone. Thanks for taking the questions and congrats on the results.
Can I start with the question on on the.
The sales pace and in production and all of that you called out.
And the press release.
Are you guys doing around aligning production and pace I think if I look at.
The results I correct me, if I'm wrong. It seems like you might be restricting sales more so and Arizona, just given where the sales pace moved sequentially compared to the California. So you just kind of comment on the strategy there.
And what are you guys are doing to align production and sales and and sort of what youre looking for.
You know to perhaps begin releasing those sales again thank you.
Hi, Matt This is John how I'll take that question from a macro economic standpoint, and then I'll hand, it over to Mike to how we're thinking about our the rest of this year and also what we're doing and the and the Arizona region in particular.
I think.
What we've seen and the first half of this year and also as a reflection of where our backlog is I think we mentioned.
Over 1100 homes that we have in backlog and about $630 million and backlog value. That's the historic high for US that's a lot of homes. So we have to deliver for the rest of this year I think how we've manage the pace of sales is a reflection of the experience of the management.
Team and I think very smart decision, making as it relates to.
Re leasing homes, and our environment, where costs are increasing so I think it's very prudent debt.
Orders have.
And intentionally slowed and order to capture some of them more and.
The market appreciation and the market, but also to have a better and more accurate.
Emission of what our cost will be as well I'll hand, it over to Mike for out of some more color as well.
Sure. Thank you John.
Not much to add to that Matt other than we're fairly conservative.
System to what our peer group is doing where you're metering and sales.
Into existing spec starts we're doing the same and in particular and Arizona given the extension of some of the cycle times that were faced with out there, which is primarily due now to labor and some specific areas around the HIV AIDS and windows, we just the on prudent to correlate that a little.
But better that being said, though we're really confident about where we're headed for the.
We ended the year in terms of the deliveries and debt from a market standpoint.
Of the.
The desire to purchase homes sales remains robust.
The tapering a little bit the summer out there, but we're really seeing no not a whole lot of pushback.
And we have other releases and we're still able to.
The.
The increase prices along the way.
And we're doing a little bit more thoughtfully and some cases, but most importantly, it's just because of where we are if theres also.
I think of particular nuances in some areas as we've seen we've had real strong demand, where we're coming into the end of many communities and reloading on the other side and Theres always the tendency I've been doing this fall and time that when youre getting down to your last.
Dozen or so and I and a large planning area of community.
And the consumer hesitancy to be sort of the last ones and is generally there and so I don't look at it as some.
The bigger issue, it's just more or less.
Finishing up some communities and and cleaning those up and then reloading and going forward and and and the excitement that surround that.
Great really helpful color there much appreciate it.
Second 1 of I wanted to ask I guess sticking on the topic of Arizona and just because.
You guys have announced the several acquisitions and sites.
And a couple of different areas.
I'm just curious number 1.
As you guys are pulling the trigger on these land deals and what are you seeing in terms of.
Prices of these lots.
I don't know if they're if they're closer to finished lots and anything like that we're just left the kind of here of the broader color on all of those land deals duration of the lots of pricing owned versus optioned and kind of the type of product you are putting there. Thank you.
Mike do you want to take that.
Sure.
Another great question.
And we'll get and we're trying to be thoughtful and prudent and the way in which we're approaching.
The reloading of our business out in Arizona as we go forward and so with that yeah, we have been making.
And so meaningful land acquisitions, but we're doing it and in such a way that I think we have a lot of optionality around it Matt we're doing it through some land banking.
And as well as some terms of acquisitions that allow us to feather out some of the take downs as we go forward, although I would say that we are staying consistent with what we've talked about when we were on our road show is that we're trying to keep a land pipeline either owned or controlled.
Roughly around the 3 year of 3 and a half year of supply.
And we're sustaining that now and Arizona as we go forward I think we're also using our development expertise and muscle to.
To the position us and some of unique submarkets of Arizona by taking down a couple of larger acquisitions, which allows us to not only 1 better position ourselves on the pricing.
Wanna be and but also giving us the optionality of selling off some parcels I believe it was the Trent who mentioned that we did have a disposition of 1 of our communities and Arizona that ended up being a very profitable for us and it's exactly what we wanted to be able to do.
As to be able to kind of use that sort of skill set to give us the optionality to better position us to buy better and a more wholesale level and then also too.
And just you don't just take advantage of the things out there in terms of scale. So we're I believe we're doing exactly what we wanted to do out there and we're executing very nicely.
Yeah.
That's great color and then if I could ask 1 more just on pricing you made that comment and to my first question.
Yeah, and you guys spoke about shade tree, a couple quarters ago, and what Youre doing with the bidding process and then you you started to see other.
The larger national builders, and all of that doing that and in a few select communities around the country I'm curious number 1.
Any kind of debriefing on how that bidding process has played out in recent months and then just if youre still doing that in some cases.
Or if you're kind of I don't know I guess, I guess shifting back to a more normalized pricing type of environment. Thank you.
Hey, Matt of this is John and I think the margins that we're showing in this quarter of 17, plus and adjusted on 23% gross margin I think is reflective of those the success that we've seen from that.
Our sales strategy of shade tree and also probably will continue for us throughout this year given our so our updated guidance on that.
And then I'll hand, it over to Mike to talk about the continuation of that strategy and how we're seeing that play out and other markets.
Sure.
We are still applying that bidding strategy and shade tree, specifically of what you asked about and we still seem to have good success with that and as John said, it's being reflected back into those margins I would say, though that as we've gone into the summer on our last release in particular and does the sharing is that.
Whereas before if it was the Saturday and we had 10 per sale of all 10 would be gone by lunchtime.
Now the market is we have a 10 per sale and we will be able to through the bidding process have 8 subscribed.
And by the end of the day of Saturday and Sunday, and then we'll be picking up the last 2 at the end of the week of falling week, which is a little bit different than what we were looking at and the spring and then and the summer.
I'd say that the consumer as pricing has continued to increase is probably becoming.
More selective not less desirous, but just more selective to ensure that they're getting the.
And that they really really want.
And at the price that they're willing to pay so we have had a couple of on the west who've been and part of the process that have elected to wait until the next release on all the specific lots that they want.
That being said, that's still allowing us to increase pricing and a more fine finer way to ensure that we're maximizing.
Every lot profit potential as we move forward.
And while also assuring that our our backlog is getting onto the lots that they wanted to get onto.
Okay.
Got it and that that's really helpful color and detail.
So I appreciate it and congrats and the result of again and best of luck and the next quarter. Thanks, guys.
Thank you Matt.
Thank you and next question come from Alex Frankel with B Riley. Your line is now open.
Thanks, guys and the very very strong quarter there congratulations on that.
Thanks, Alex.
You know coming back to sort of the gross margin commentary of gross margins were fantastic and 23 of the 5% can you talk a little bit more about sort of the gross margin outlook. It sounds like you feel pretty comfortable its going to be stable. They are 3 year and.
But expand upon that a little bit more.
Sure.
Try and do you want to take that sure.
What we're looking at for the second quarter.
As John talked about earlier, we did see those price appreciations of the.
Last half of last year to help cover some of those cost that we're incurring.
And looking at our forecast going forward, we feel that we are definitely on an upward trend with our margins out there.
Especially are looking at this quarter, we're at 17% and we feel we'll keep that going through the third and fourth quarter, we're starting to see.
And those price appreciations come into effect and our closings now.
As we're closing homes and we feel that we'll still be in that range.
Increased range into the third and fourth quarter.
And then Mike when you're out there shopping for lots or are you finding it harder to find lots that meet your underwriting standards. Obviously this is the kind of a unique period over the last 12 months.
But if you could comment more broadly on.
What price depreciation and inflation that'd be great.
Sure.
And there's definitely a dislocation and my my opinion and what we're seeing out there today between finished lots and.
And lots that are our paper lots are entitled but you're not yet developed and I think that that's because there's a massive push towards.
Getting lots and the near term to fill gaps that exists and some of the builders are business plans that they have going forward and the near term.
So you're really seeing a finished lot premium out there today.
And Fortunately for US we're really happy.
The happy about our land pipeline in terms of our ability to meet or exceed hopefully are our upcoming business plans as we lay them out of the next couple of years.
And so really from our standpoint were and I think of unique position to get control over land either through.
The auctions or possibly even through land banking on the land that's deliverable several years out.
And that's actually price pretty well still right now so it's a nice spot the ban.
To be able to get control of some again and future land supply without having to pay a near term pricing for those lots.
Yeah.
And then lastly.
Congratulations on a couple of and realize successful acquisitions.
Should we think about M&A sort of over the next 6 months and then into 2022 or are you.
Sort of settled with what you have today.
Or should we think about.
Additional acquisitions this year.
Hey, Alex this is Oh, and I think and the.
Earlier in the earnings call, we said that and we continue to remain and I think very interested and opportunities to grow our business.
I think as we move towards growing our Florida, and Texas business I think that's.
Of great importance to us and it's very exciting for us and there are.
A lot of opportunities there are.
I'll, let Mike take the question and times of specific opportunities and we're looking at.
Yeah.
Sure.
Not sure how detail I can get.
Be assured that we're spending and lots of plates and the M&A arena.
We have always said that we think that it's going to be a very important part in terms of our growth strategy over the next few years or so so we are still out there in the market.
And I'm talking to several other builders, whether it be and Florida, Texas and and.
And they will actively engaged.
And and that part of sort of again like I said, our growth strategies and I repeat myself. So we're.
We're seeing a pretty good supply of.
Sellers out there.
Some are not the same as others and frankly, we've gotten better at this and we're probably in a better position to demand.
Demand.
And again, the sort of the quality of of what's out there to come our way because we've been able to show that we can execute execute and the timely fashion and so we're now becoming again 1 of those.
Buyers of choice out there for those that are looking to exit the market. So I'm I'm confident we'll continue to find good opportunities.
Hum.
But we're in a really nice position and be a little bit more.
Selective and.
Focused on that.
Very helpful. Thank you very much.
Thanks, Alex Thank you.
And at this time. This concludes our question and answer session and like the hand, the conference back off of Mr. Ho for closing remarks.
Thank you.
And to thank everyone for listening to today's call and we look forward to speaking with you all when we report our third quarter 2020 results and November thank.
And you all again for joining us.
This concludes today's conference call. Thank you for your participation you may now disconnect everyone have a wonderful day.
Okay.
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