Q3 2021 Uni-Select Inc Earnings Call
Good morning, ladies and gentlemen, and welcome to Uni Select Inc. 's 2021 third quarter results conference call.
This time all lines are in a listen only mode. Following the presentation. We will conduct a question and answer session. If at any time. During this call you require immediate assistance. Please press star zero for the operator note that today's call is being recorded.
Boswell Madonna's Jimmi Sue if you have to drill a coffeehouse telephonic. So let us just that just wasn't too missed didn't move a T I D.
After Mama totally linked fulltime adequate shutting down.
It isn't that she wont do plus at the O N E C.
She at two am Huh, whose everybody's wondering if self image yep, yep, who used to lead twice zelle.
Look at that.
<unk> at all or just take it.
That might not fit the local officials and Mr. Maxwell good shift alleged axial F. L. E tickets, the cutback of purchase and I would like to turn the conference over to Maxwell Chief Legal Officer and corporate Secretary. Please go ahead Sir.
Thank you good morning, everyone and thank you for joining us for Uni select third quarter conference call. Presenting this morning are Brian Mcmanus Executive chair and CEO of Uni select and Anthony began our chief financial Officer.
Following their comments, we will open the call for questions.
Please note that all documents referred to in today's conference call, including this webcast presentation can be found on our website at Uni select dot com in the investors section.
As noted on slide two I would like to remind you about the caution regarding forward looking statements, which applies to our presentation and comments.
All amounts are expressed in U S dollars, except as otherwise specified.
With that let me turn the call over to Brian.
Thank you Max.
Everyone and thank you for joining us for our third quarter results conference call.
Let me begin on slide four.
Recall that when I stepped into the drivers seat at Uni select five months ago I had four priorities.
Align the three businesses with our vision.
Our focus on operational excellence.
<unk> opportunities for growth and rebuild the leadership team.
I am happy to report that we now have a completely new senior leadership team in place.
Like to take a few minutes to introduce you to them.
Please turn to slide five.
You already know Anthony our CFO, and Emily President and CEO of CAD, who were introduced last quarter. Since then we have strengthened our bench with Mike Sylvestre, President and COO finish Master I worked closely with Mike During my days at Stella Jones. He is a senior executive with extensive experience.
He led the transformation of Stella Jones in the U S. While integrating a variety of acquisitions.
Skills and know how in this regard will be a tremendous asset for finished master.
Mark <unk>, President and CEO of Tpa.
Mark was previously the CEO of Sigma a U K based building parts manufacturer during his career he led ambitious growth initiatives across a variety of industries.
<unk> success at growing businesses and his knowledge of the UK market will be a great benefit for tpa.
And finally, Max Rogen, Chief Legal officer, Max is a seasoned legal executive having spent a number of years in a variety of senior legal positions at CGI and WSB.
Earlier in his career he was a partner at a leading Canadian law firm.
Max has extensive experience in the execution of numerous M&A and financing transactions, both of which will be essential as we look to execute our plans going forward.
We now have a highly complementary set of executives with diverse experience across the industry, including both transformation situations as well as growth stories.
With this team firmly in place we are well positioned to focus on operational excellence.
<unk> future growth opportunities.
As we mentioned last quarter over the next year or so we will focus on aligning the three businesses with our vision for the future.
Each business unit will focus on the execution of select key priorities to successfully set the foundation for future growth.
After having numerous opportunities detour various parts of our operations in North America I was finally able to tour Tpa, which gave me the chance to meet many of our team members and get a better feel for the operations.
These visits have allowed me to see the energy and dedication of our teams and I am more convinced than ever of the potential for operational improvement that lies ahead in all of our businesses.
In parallel we continue to identify avenues for growth, including the potential for consolidation further down the road, which we believe will be a component of driving our business to the next level.
Let me now turn to slide six for the key highlights of the third quarter.
Before I begin I would just like to highlight that we changed our definition of adjusted EBITDA and adjusted EPS in the quarter and the comparable periods have also been adjusted accordingly.
Anthony will provide more details on this in a few minutes.
We are very pleased with our third quarter results, which reflect ongoing operational improvement and continued recovery in our business.
While Q3 was somewhat impacted by supply chain issues manifested through reduced fill rates from suppliers. Our team has done a good job of managing the situation.
Consolidated sales for the third quarter were up 8% to $426 million.
From $395 million last year, primarily attributable to organic growth of 4%, reflecting continued recovery in all business segments, coupled with favorable impacts from currency conversion.
While organic sales were positive for a second consecutive quarter. They remain below 2019 levels, mainly as a result of slower recovery at finished master.
In turn adjusted EBITDA increased 25% to $42 million or a margin of nine 9% compared to $34 million or a margin of eight 5% last year.
Excluding government assistant programs received last year, the margin would have increased by 250 basis points.
This performance was largely driven by improved sales additional vendor rebates in all segments as well as price increases in tag and finished faster.
These factors were partially offset by higher expenses related to a fully operational business and certain unfavorable variations in foreign exchange.
As a result of higher adjusted EBITDA immaterial lower financing expenses due to the benefits related to our amended credit facility completed last quarter our.
Our adjusted EPS more than doubled from <unk> 19 per share to <unk> 40 per share.
Given this greatly improved profitability generated solid cash flow from operations in the third quarter, which we use to continue to reduce our total net debt and reinvest in the business.
I will now turn the call over to Anthony to complete the financial review Anthony.
Thank you Brian.
I will direct participants to page eight of the presentation.
Before I discuss the results from our three segments I would like to highlight that we have reviewed our definition of adjusted EBITDA and adjusted earnings this quarter.
We have also adjusted certain historic figures accordingly for ease of comparison.
You can find the updated definition in the MD&A, but in short we are excluding stock based compensation from adjusted EBITDA and adjusted earnings.
Is it creates substantial volatility in profitability.
Due to movements in our stock price.
By doing this we are providing the investment community with a more comparable view of our operating and financial results.
On slide eight we have broken out the impact of this new definition on adjusted EBITDA and adjusted EPS for the third quarter over the past three years.
In the appendix of the presentation, you will find a reconciliation of the new definition to the previous definition.
Over the past 11 quarters.
Both on a consolidated basis and by business unit.
You will notice that the greatest impact is on consolidated results.
Turning now to slide nine.
I would like to touch upon certain one time items incurred in the third quarter.
First we incurred severance expenses of $3 million.
Primarily related to significant changes to our executive team.
Furthermore, we incurred charges of $2 $4 million related to the ongoing restructuring linked to our operational improvement initiatives.
The bulk of these expenses are noncash and are related to the write down of that.
All of these expenses are one time items and have been excluded from the calculation of adjusted EBITDA and adjusted earnings.
Note that we expect the bulk of onetime charges related to our operational improvements to occur by the end of 2021.
Having said this we do expect to record further one time charges into 'twenty two.
Albeit to a much lesser extent than the past year as we continue to implement our operational and cultural transformation.
Turning to page 10 for finish Master.
Both sales and organic growth increased 7% to $175 million.
Driven by a recovery in the market with all regions contributing favorably.
Sales continued to improve sequentially generating positive growth for a second consecutive quarter.
Adjusted EBITDA also continued to approve reached.
Reaching $15 9 million for a margin of nine 1% compared to $8 million or a margin of four 9% for the same period last year.
This significant improvement was primarily driven by additional sales volume and an optimized cost structure.
We also benefited from vendor rebates and price increases.
Despite a slower sales recovery compared to other segments finish.
<unk> finished master is reporting its best adjusted EBITDA performance over the last seven quarters.
Both in absolute dollars and in margin.
This is a testament to our operational initiatives taking hold.
Our focus now is on ramping up our sales and we will be working on optimizing our path to market over the coming months.
Turning to page 11 for the Canadian automotive group sales.
Sales reached $144 million.
Five 3% from $137 million last year.
This growth was driven by favorable currency conversion effects and acquisitions.
Excluding these factors organic growth decreased by 1%.
This decline is explained by exceptional performance in Q3 of 2020 as pent up demand was released abruptly due to the easing of lockdown restrictions.
Sales remained strong in Canada, but are slightly below 2019 as supply chain challenges represent an ongoing headwind to growth.
Adjusted EBITDA reached $16 8 million.
Our margin of 11, 6% down.
Down from $19 million or a margin of 13, 9% in the same period last year.
This decrease is a result of $3 $3 million of government subsidies in the 2020 period as.
As well as certain unfavorable foreign exchange variations in 2021.
These effects were partially offset by the benefit of additional vendor rebates and price increases.
Excluding government subsidies tags, adjusted EBITDA margin would have slightly increased compared to last year.
For the sixth consecutive quarter CAG has reported a double digit adjusted EBITDA margin.
Looking forward, we see further opportunities to improve our overall CAG operations.
Turning to page 12 for the parts Alliance.
Sales reached $107 million, an increase of 12, 8% from the same period last year.
Mainly driven by the positive effect of currency conversion and organic growth of five 6%.
This represents the fourth consecutive quarter of sales increases.
Sales for Tpa have now returned to 2019 levels.
Adjusted EBITDA reached $11 million or a margin of 10, 3% up from $8 8 million for a margin of nine 3% last year.
This improvement is driven by additional sales volume the.
The benefit of cost savings and vendor rebates.
Since the low point of the second quarter of 2020, Tpa has steadily improved its adjusted EBITDA and related margin compared to the same quarter of the prior year.
Note that Tpa has recently rebranded as GSM car parts, a brand with an established presence in the U K.
It will allow the company to leverage a single trading name across its 170 locations for the first time.
Operating nationally as one brand enables us to streamline more of our processes and to implement improvements across the business more quickly and efficiently.
The business, which traded locally under 13 historic brands acquired through the parts Alliance officially rebranded in November.
As Brian mentioned earlier, we are pleased with our operational results across all three of our businesses.
We are encouraged by the growing list of opportunities for ongoing improvement.
And in particular certain sales expansion initiatives being undertaken by the local teams.
I'll turn now to page 14 for comments relating to our cash flow.
We generated $43 million of cash flow from operations in the third quarter compared to $62 million last year.
While the headline comparison indicates a reduction in cash flow.
We know that this is primarily attributable to a meaningful release of working capital in 2020 drip.
Driven by a right sizing of the balance sheet.
In Q3 of this year, we also benefited from a release of working capital.
Less so than in 2020.
After accounting for net investments in merchant advances as well as Capex and intangibles, we generated free cash flow of $37 million in the third quarter versus $61 million for the same period last year.
This is primarily driven by the same factors mentioned earlier with respect to working capital.
I would note that this year, we made higher investments in the modernization of our vehicle fleet.
As well as software development investments related to productivity initiatives.
We began to reinvest in strategic investments to grow the business.
Our investments in Capex intangible.
And customer incentives are nearing pre pandemic levels.
In summary, we are pleased by our cash flow in the quarter.
Turning to our financial position on page 15.
Given our active cash management and improved profitability, our total net debt decreased in the third quarter.
As at the end of the quarter, our total net debt stood at $315 million, including $98 million of <unk> 16 lease obligations.
This represents a decrease of $33 million versus $348 million at the end of Q2 2021.
And represents our lowest debt level since Q2 2017.
Driven by our higher adjusted EBITDA and lower total net debt our leverage ratio decreased to two three times in Q3 from two eight times at the end of Q2.
Furthermore, we had ample liquidity of about $245 million at the end of the quarter.
Turning to page 16 for an update on our capital structure.
Starting with our credit facility.
Note that Q3 is the first full quarter of benefits related to our revised credit agreement.
It represented interest savings of approximately $3 $5 million year over year, when combined with the impact of lower debt levels.
In addition, given our ample liquidity.
We partially repaid $35 million of our term loan.
The net effect of the repayment was a reduction in amounts available under the credit facility from 500 million to $465 million.
This will allow us to save on standby fees.
While still leaving us ample headroom to operate and grow.
Now turning to our convertible debentures.
The company converted $15 million of convertible debentures into $1 1 million common shares at a price of $13 57 per share.
As at the end of the quarter $115 million Canadian dollars of convertible debentures remain outstanding.
In addition, Uni select issued 300000 common shares resulting from the exercise of stock options at a weighted average price of $12 34 per share.
As a result at the end of the period.
Select had $43 8 million common shares outstanding.
One 4 million shares from the end of December 2020.
As a result of the appreciation in the market price of our shares relative to the conversion price of the convertible debentures. We are also reporting diluted EPS. This quarter. In addition to basic EPS.
Finally, we were in compliance with all of our covenants at the end of the quarter and.
And are pleased with our ability to successfully leverage our improved financial position to reduce financing costs.
I will now turn the call over to Brian for concluding remarks, Brian.
Thank you Anthony please turn to slide 18.
In summary, we are pleased with our third quarter results during the quarter, we implemented operational improvements, which are clearly taking hold we achieved substantial savings in financing costs and we brought down our debt to its lowest level since the second quarter of 2017.
This said we are cautiously optimistic about the fourth quarter, given growing supply chain and labor challenges, while our team has done a great job managing through these so far we expect it will become increasingly challenging going forward.
Recall that CAD and tpa are more likely to be impacted by global supply chain shortages FM for its part is also not immune from these challenges.
Based on what we currently see we expect 2022 to finish above 2021 for adjusted EBITDA and adjusted EPS.
This assumes a muted environment improvement in sales inflationary pressures and persistent supply chain and labor challenges in the first half of the year.
These factors are expected to be mitigated by more optimized cost structure, given our sustained efforts in that regard as well as a strong focus on driving sales in our three business units.
To conclude given our new leadership team operational improvements, taking hold and our progress on the balance sheet, we are well positioned to take advantage of growth opportunities in the coming quarters.
Finally, I would like to thank all of our employees for their continued dedication and support.
This concludes our presentation, we're now ready to answer your questions.
Thank you, ladies and gentlemen, if you would like to ask a question. Please press star followed by one audio Touchtone phone you will then hear <unk> prompt acknowledging your request.
If you do wish to withdraw your question. Please simply press star followed by two.
If youre using a speakerphone you will need to lift your handset before pressing any Keith. Please go ahead and press Star one now if you do have any questions.
And your first question will be from Newman Saturday at Laurentian Bank. Please go ahead.
Hi, good morning, everyone and congrats on the good quarter.
Thank you and good morning good.
So my first question is you highlighted some of the key areas and one of them is operational excellence I'm. Just wondering if you can provide any additional color or any opportunities that you see in the short term and long term to sort of generate those operational excellence.
I don't want to get too much into the specifics, but I think what we're very encouraged about.
It's even.
For us become more apparent as we were able to get over to the U K and see our operations.
There is that there does exist continued opportunities across all three business units.
We can each one has I would say slightly different opportunities that are present, but.
We continue to chase those.
As we.
Look to improve and chase that operational excellence.
Okay and just to.
Maybe get a better idea since youre just five months into the role is it fair to assume that now it's more of implementing those things rather than it's still figuring out a lot of stuff what needs to happen.
Absolutely and I think you can see in the results that.
Some of the areas, we borrowed that we started to implement are already starting to take hold.
See more of that as the quarters progress but.
Youre absolutely right.
On top of identifying.
Opportunities. We've also started to implement action plans on a number of them and that will continue as we move forward.
Probably add that.
The opportunities don't just appear on the P&L right you see them also showing through the on the balance sheet.
Particularly with the strong quarter of cash flow.
Yeah, No that's great and just maybe on the margin side and the overall margins if you want to dive into any one.
But I'm just trying to understand that this was really tough environment. There was a lot of supply chain issues. They would cost pressures I understand you guys did some price increases I'm just wondering if if these challenges normalize.
Would there be more opportunity for margin expansion and if all of those costs that you're incurring has been passed on or is there more room around it.
Well you can expect that Theres always a lag for cost increases to be passed along.
But I think.
There are certain cost increases that are tougher to pass along.
Labor price increases an example.
So I would say there are opportunities to continue to improve that will be more on us.
To do that but in the short term I think we're cautiously optimistic.
Just because of some of the continued supply.
Constraints that we see out there through all three business units.
Okay, That's fair and just one last one from my end.
Your leverage on your balance sheet strength that substantially improve I think it was in the last quarter that you have been you had mentioned that thats a priority area, where you want to reduce the debt I'm just wondering at what leverage.
You'd be more comfortable and when it does not become like a period already and you can sort of do capital allocation what's out there.
I, just like M&A and probably dividend Grace.
Yes, I think we've.
We've continued to.
We've continued to invest in the business you would have noticed.
Capex in the <unk> would have would have ticked up a bit in the quarter.
So we're not.
We remain conservative, but we're investing where we see attractive opportunities at good returns, but we.
We don't have or we're not going to share.
A specific leverage target.
But we do have capital available for for interesting opportunities as they arise.
Okay. That's it from my end and once again congrats on the quarter.
Thank you.
Thank you and your next question will be from David Ocampo at core Mark. Please go ahead.
Good morning, everyone.
Good morning, David.
So the inventory issues and supply chain issues have been pretty hot topic. In every conference call that we've kind of started in.
And over the last few quarters, if I take a look at your inventory levels, they've kind of decrease here, but at the same time you've increased your churn.
So kind of with that in mind do you guys feel confident in the inventory levels that you have today to kind of maintain your sales pace or is that an area of concern for you guys. As you kind of flagged that is that a caution for Keith.
I think I think I would certainly be cautious for Q4.
Supply chain issues are.
Our reality it has impacted.
The business it's been in natural.
It's been a bit of a headwind.
Our revenue growth.
However, the declines in inventory that you see are not are not purely due to a lack of ability to procure products rights I think theres a theres been a lot of work that's been put in in particular, one of the divisions I won't go into the detail around increasing the level of intelligence that we use in determining how much we procure how much stock, we hold and where we hold it.
And that's driven a great deal of improvement in inventory.
Okay. That's helpful. And then just kind of circling back on the questions as it relates to margins and specifically as it relates to finish master.
It's a pretty noticeable step up in margin profile here can we use this as a sort of a base to improve on or is there going to be volatility from quarter to quarter basis, where you might see a step that I think.
I think youll see a bit of I think youll see a bit of volatility David I think what I would.
As you know, having having recently done a bunch of work to launch coverage.
The business all of our business generate or generate some profitability from from rebates from suppliers.
And naturally if you if you look at finish Master last year. It wasn't really barring much. So the inventory was coming down quite quite dramatically.
So when you when youre not buying youre, not getting rebates rates. So a certain amount of the improvement you see is a return to a normalized purchasing environment.
Sure.
Okay. That's helpful I'll hop back in the queue guys.
Thank you.
Thank you next question will be from Ben <unk> at <unk> Securities.
Yes, good morning, everyone and congratulations for the strong quarter.
Thanks very much.
Yes would it be possible to quantify the impact of vendor rebate and price increase how strong it was in the quarter.
No.
Yeah.
Okay.
Sorry for the brief answer but it really just just for competitive reasons.
No no that's okay, that's okay and.
Respect to global supply chain issues.
Could you maybe quantify where we've seen the most impact either on the revenue on the cost side.
On your ability to provide.
A decent feel right or the Skus that you typically carry and actions taken to mitigate the impact going forward.
Yes, I don't want to get into too much specifics Ben why again.
For competitive reasons, but I would say, where we probably had the greatest challenges would be in CAG.
I will.
I'd say our team has done a great job of mitigating that through many different factors.
Substitution of different brands too.
Promoting more of our private brands.
And things like that but.
<unk>.
We continue to carry on in terms of the supply chain issues. It gets tougher and tougher to mitigate some of these things. So that's why again, we're just cautioning over the next quarter or two.
That this will continue to be a bit of a headwind.
So we're hopeful and in talking with a lot of our suppliers, we kind of see this starting to change once we get through Q1. So.
We're hopeful that we'll start to see some good improvement.
Okay and in terms of free cash flow, Anthony obviously, very decent free cash flow in the quarter, how should we be thinking about your capabilities on the free cash flow side going forward, how should we look at this.
I'm not I'm not going to give a bunch of guidance here, but I think I think what I, what I did what I told you last time.
There was a question I answered last time with sort of give given idea to the community around where we would end the year.
From a net debt perspective, my current the current thinking is we would land slightly above.
Slightly above current levels in terms of net debt going into into yearend.
Yes.
Okay, that's still the case.
Despite the strong performance in Q3 right.
Correct and part of that is just going to be.
Call it strategic buying as we near year end and are aware of these.
Supply chain issues, so there's certain levers, we'll pull to help protect ourselves.
And when we look at your balance sheet, you don't want to provide specific targets, but is it fair to assume that the balance sheet is strong enough to pursue.
More growth opportunities, either organic or through M&A or still a bit early to discuss about that Brian.
Well as Anthony pointed out.
We're certainly pleased with how our balance sheet to strengthen up where our leverage is.
Now.
At a healthy level I would say so we will we will be on the lookout. However.
As I kind of expressed last quarter.
Near term focus still remains on ensuring that our houses in order through all three business units.
But.
That's underway well our balance sheet is strengthening lapse so.
I would say.
We're going in the right direction.
Okay. Thank you very much for the time.
Thanks.
Thank you next question will be from Daryl Young of TD. Please go ahead.
Good morning, guys.
Sarah.
First question is around market share and just given all of the significant disruption we've seen from a supply chain perspective.
Would you have seen a change in who your customers are or would there be customers that have bought from you.
During this past quarter, because you had inventory that maybe would not be normal customers I'm, just really trying to flush out I guess.
If some of the price increases and some of the volumes that have been happening currently are sustainable when the supply chains normalize it will some of those customers maybe go back to primary.
Vendors.
Yes, that's a good question Daryl I think it's kind of a two part question I think first on the price increases those.
Those are more related.
To inflationary pressures and what we've seen.
From our suppliers, so I wouldn't call it opportunistic price increases.
That are out there that were doing but rather just a pass through of cost increases we're faced with.
In terms of.
Market share I won't specifically speak to market share but.
Certainly.
When you have a tight supply chain you may get customers that would not normally be buying from you, but the same goes that if we're short on something we may have a customer that's forced to go somewhere else. So I think what we need and we've been very focused on giving the best value, we can to our regular customers and showing any new ones that come in.
What we're capable of doing so hard to say, where it will settle out after but.
We're hopeful that this may be an opportunity to attract some new customers.
Got it Okay, and then just secondly on the labor market.
Obviously everyone's up against that but are you seeing any.
Your your delivery folks being poached are leaving or maybe just a quick update on what's happening there.
Okay well.
We're certainly dealing with.
Our team again is doing a good job of getting us through it.
It's tough, but where we're dealing with it.
As everyone else's.
Sure.
Yeah Fair enough. Okay. That's all for me, thanks, guys great quarter.
Thank you Dara Thanks Dara.
Thank you next question will be from Jonathan Levine at BMO capital. Please go ahead.
Good morning.
Morning, Jonathan.
Following the recent realignments you've completed.
Do you believe that you could service a 2019 level of demand with the existing footprint.
Yes definitely.
And hopefully more.
And with the current labor capacity and more importantly.
Yes.
We're comfortable where the market is tight but we're meeting that labor demand.
Thanks.
Hi.
And on the supply chain challenges into Q4 have fill rates it off over Q4 to date.
I don't think.
I won't speak to any progress made during the quarter Jonathan but.
Continues kind of continues to be continues to be a challenge there are certain product categories that are naturally.
More challenged than others.
We are aware from our for our views of the market place that it is not.
Got it.
Sorry.
<unk> on this isolated to assets broad reaching.
But we're managing through it and we have a number of tools at our disposal to do so.
Yes.
Thanks for your comments.
Thanks, Jonathan.
As a reminder, ladies and gentlemen, if you would like to ask a question. Please press star followed by one on your Touchtone phone.
And your next question will be from Zachary Eversheds at National Bank Financial. Please go ahead.
Good morning, everyone congrats on the quarter.
Thanks, Patrick.
Given your size and your various markets are you seeing any kind of preferential access with suppliers that might help offset some of the supply chain issues.
I would say that's a question we'd rather not answer.
Sure.
Fair enough.
Then looking further ahead for finish master and understanding that you are breaking out the crystal ball here.
What's your view on the pace of recovery in end market demand over the next couple of years.
Okay.
Well, we're certainly hopeful it is going to continue we continue to see market demand come back but of our three.
Divisions that certainly the one that's been the slowest to bounce back so.
We don't see any macro factors that would prevent it from eventually getting back to where it was yes, I think I would I would add on finished master's though it's a bit of a bit of a different dynamic than you would think of right. When we when we think about.
When we think about supply chain issues.
Our supply chain shortages in that business. It doesn't it doesn't just impact us in the distribution of paint and related products right.
If a body shop is not able to procure a new vendor or whatever it needs to get work done then the car is also not getting painted.
So theres some theres some knock on effects there in terms of supply chain shortages.
Great point, Thanks, I'll turn it over.
Thanks.
Thank you.
And at this time, we have no further questions. Please proceed.
Thank you operator, and thank you everyone for listening we look forward to updating you on our progress during our next quarterly call have a great day.
Thank you, Sir ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending and at this time, we do ask that you. Please disconnect your lines.
[music].