Q3 2021 ADT Inc Earnings Call
Greetings and welcome to Adt's third quarter, 2021 earnings conference call.
At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. As a reminder, this conference call is being recorded I would now like to turn the conference over to your host Jill Greer. Thank you you may begin.
Thanks, operator, and good morning, everyone. We appreciate you joining adt's third quarter earnings call, which will also used to discuss our pending acquisition of Suntrap speaking on today's call will be Adt's, President and CEO, Jim Devries, and our CFO and president of corporate development, Jeff look at that Jim will provide an overview.
Our recent performance and discuss our growth strategy and depending upon pro acquisition, Jim Jessica will then cover our financial performance joining us for Q&A, Our Chief operating officer, Don Young in terms of poor EVP of finance.
Earlier. This morning, we issued a press release and slide presentation of our financial results and also a separate release with the details of the Sungard transaction. These materials are available on our website at investor about ADT Dot com.
Before we start I do need to tell you that today's remarks include forward looking statements. These forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those forward looking statements.
Some of the factors that may cause differences are described in our SEC filings. We will also include non-GAAP financial measures on the call for a complete reconciliation of our non-GAAP financial measures. Please refer to our earnings press release and with that I'll turn the call over to Jim.
Thanks, Joe and welcome everyone to our call. This was an exciting day for ADT as we announced just this morning that we have reached an agreement to acquire one of the largest residential solar companies in the country, Shawn Poe and an all stock deal ADT, we'll be expanding our residential footprint.
Into the fast growing residential solar space.
Jeff will be covering our third quarter financial results in more detail shortly but I'd like to share a few highlights of the quarter from my perspective.
First the impact from our growth initiatives is reflected in our revenues with RMR additions up 7% for the quarter and 19% to date Chuck.
Second the rebound in our commercial business continues with revenues up nearly 18% over last year.
Third we're making good progress on the innovation thought with the Google relationship continuing to move forward and just recently, an exciting new partnership with door Dash, which leverages. Our in house developed mobile platform for three G replacements are.
Outstanding field operation leaders and technicians.
Executing well on our three key objectives, we have successfully completed 85% and remain on track for full completion for AT&T customers by the February 2022 sunset date.
Finally overall, we remain on track to deliver on our 2021 commitments, while simultaneously building a solid platform for future growth.
Regarding our growth platform I want to spend some time talking about the transformation, we're executing at ADT and how our move into the residential solar segment complement our strategy.
ADT is electronic.
Ordinary brand one that is underpinned by the trust our customers place in US historically, our brand has been centered around in home security ADT is evolving to more of a lifestyle and consumer technology brand a brand that will deliver safe smart <unk>.
And sustainable solutions for our ADT customers by focusing on safety automation and energy management.
Our Google partnership along with our new solar footprint provides us with a much larger presence in the home automation and energy management markets and our strategic steps to broadening Adt's total addressable market. These are fast growing segments with tech forward as well as eco friendly.
[noise] aspects it appeal to a broad range of customers.
Additionally, the strategic partnerships, we formed over the past few years are an integral part of the evolution from our Google relationship, which provides a path to pets best in class products technology, and analytics to new alliances such as redfin and door dash, which are expanding.
Ts offering beyond the hole.
In the middle of an exciting transformation.
Expanding our residential offerings into the growing solar segment is a logical next step, adding a new dimension to the integrated experience our customers want demand for residential solar has grown exponentially in the past several years as consumer acceptance of solar is increased and <unk>.
Pricing has become more attractive.
And with solar we see a path for significant growth ahead as the market is already at $15 billion with only 3% home penetration and.
In addition to the savings and peace of mind that comes with solar they're all they're all of course significant environmental benefits. The average residential solar system offsets about 100000 pounds of carbon dioxide in 20 years, that's the equivalent of driving a car for 100000.
Myles.
We're extremely optimistic for what solar can bring to adp's future and we're confident we have the perfect partner and son, Paul So I'm cofounder and CEO, Mark Jones, who is talented management team and there are 3600, plus employees have built a great customer focused company while simultaneously.
Yes, so you're executing a proven growth strategy.
Excited to bring solar into our ADT family, well will now be branded as ADT solar.
A point worth reiterating.
Mark Jones, and the selling shareholders are taking their consideration in ADT stock demonstrating their conviction regarding the ADT go forward story give.
Given our size scale and partnerships, we anticipate ADT solar to be immediately one of the leading players in the residential solar market with the most recognized brand in the segment ADT.
Adt's National scale will provide a unique platform to accelerate ADT solar penetration into other markets beyond the Gulf region, and Western States, where Suncor currently operates.
With over 6 million ADT customers, we will have the ability to now cross sell solar and importantly, the opportunity to bundle ADT packages for security home automation and energy management and.
In particular, combining cross selling with Adp's industry Best network of accomplished fewer partners, many of whom already have experienced salary selling solar we have the opportunity to significantly reduce the acquisition cost for both our solar and C. S. P segments.
Regarding the formal solar acquisition, we're in the process of securing regulatory approval.
We expect the transaction they would close before year end, we expect it to be positive to EBITDA and free cash flow immediately accretive to EPS during the first 12 months.
The acquisition will be funded through $160 million of cash used to pay debt and seller shareholder taxes and by issuing 77 8 million shares of ADT common stock.
The old price is very attractive and value Sun Pearl and approximately 10 times next 12 months EBITDA.
An additional point to note.
<unk> has a minimal amount of capex.
After closing ADP solar will operate as a wholly owned ADT subsidiary and therefore become a separate segment similar to our commercial business. Therefore, the initial integration will be minimal, enabling us to quickly implement our cross selling and dealer initiatives while also maintaining.
Our momentum in other parts of the business.
We're planning for 2022 to be a key year for our Google partnership as we deliver upgraded and enhanced hardware software and monitoring solutions are.
ADT and Google teams are working closely together to ensure that we deliver a consistent high quality experience for our customers both in the coming months.
And long term.
We've continued to make good progress over the past quarter with Google and look to launch the doorbell nationally in January with cameras thermostats shortly thereafter.
Our timeline ensures back despite supply chain challenges, we will have sufficient supply on hand to meet expected customer demand on our current timeline and assuming supply chain constraints are manageable, but work of our joint product and engineering teams are tracking to sequentially reliefs.
Additional pro install and DIY solutions during the course of the year.
We are confident that our complete suite of innovative integrated Google products, when combined with our next generation App and technology platform will be transformative for ADP.
Watching new functionality and expanding utility for our customers.
We're looking forward to sharing more of our exciting initiatives with all of you at our upcoming Investor day.
So in closing we continue to put in place the right building blocks for our long term growth strategy, we initiated a shift several years ago with strategic moves into commercial security and focusing more assertively on smart home automation, our next phase will unfold with the.
Formal Google product launch in the coming months and with our expansion into the residential solar market.
Of which will celebrate adt's transformation to becoming the safe smart and sustainable provider of choice.
And now I'll turn it over to Jeff to cover the third quarter in more detail.
Thank you Jim and thank you everyone for joining our call today.
With more than three quarters of the year complete we continued to demonstrate solid performance from our growth initiatives and a broader operational execution.
Our increased investment in customer acquisition continued to deliver very strong results with gross additions to recurring monthly revenue or RMR up 7% year over year for the third quarter and up 19% year to date.
The resulting RMR base grew to $356 million, which is an increase of $15 million versus last year and represents almost $4 $3 billion of durable annual revenue.
We remain on pace to achieve our mid teens full year growth objective for new additions to grow RMR.
Total company third quarter revenue was just over $1 $3 billion with adjusted EBITDA at $554 million.
Our year to date performance on these majors is tracking ahead of our original plans and we have improved our full year outlook with newly updated ranges towards the upper end of our previous ranges.
RMR growth improved commercial performance and general cost controls all contributed positively to our results through the first three quarters.
Offsetting headwinds versus 2020 included the noncash effect of our ownership model changes technology investments and higher service cost trends, which we have improved in recent months.
As the only large scale national player in our space, we acquire customers through several diverse channels and sales tactics. Our dealer channel has been particularly strong throughout 2021 and its contributing a larger percentage of new RMR additions than we planned.
Dealer generated accounts deliver solid returns and include attrition protection for the first 13 months.
Due to our strong customer retention and overall our average customer tenure is more than seven years. This is significantly beyond our two three year trailing 12 month revenue payback and illustrates the long tail benefit of our growth strategy.
On a segment basis, the highlight in consumer and small business or C. S. B has been a very strong RMR additions.
We again grew net subscriber counts in the quarter and our customers are increasingly selecting more integrated and comprehensive smart home system.
Interactive customers now make up nearly 60% of our total PSB subscriber base, helping drive an increase in average revenue per unit.
C S E monitoring and services revenue at $976 million increased by 4% versus last year.
Installation and other revenue declined as expected, reflecting the noncash effective ownership model changes and the integration of defenders.
Because we completed the transition earlier this year the year over year effect of these noncash items will be significantly reduced next year.
We also continued to improve performance in our commercial segment.
Third quarter commercial revenue grew by 18% with installation and other up 19% in monitoring and services up 17%.
We expanded our EBITDA margin rate versus last year, while continuing to balance near term results with a long term focus.
We achieved these results while navigating supply chain dynamics in commercial which caused some challenges on the installation timelines for certain jobs.
Overall, we are pleased with the recovery in commercial after a challenging 2020 and were optimistic about our trajectory.
Turning to cash flow and the balance sheet cash generation remains a priority even as we invest in subscribers and RMR growth in our next generation platform.
Adjusted free cash flow was $289 million through the first nine months of the year.
We are narrowing our full year guidance range to $450 million to $500 million as we continue to prioritize investments in R&R growth and account for the mix shift towards the dealer generated accounts I mentioned earlier.
Another highlight in the quarter as discussed in our last call was the July refinancing of our $1 billion 2022 notes with a new 2029.
With our balance sheet efforts over the past several quarters, we have addressed our near term maturities and meaningfully reduced our cost of debt.
Our weighted average maturity is now approximately five and a half years with no debt maturing until the middle of 2023.
We remain very comfortable with our capital structure overall.
To summarize the discussion of our results I'm very pleased with our progress this year and the resulting momentum in the business.
As planned our overall revenue and growth initiatives are expanding our RMR based and C. S B and our commercial business is recovering well versus last year's challenges.
We also continued to advance our long term objectives that will shape our future.
These all support a 2022 that improves on our 2021 results.
Additionally, our acquisition of Sun Pro is a great next step for ADT as Jim described it broadens our residential portfolio features several characteristics complimentary to our existing business and provides an exciting platform to accelerate our growth.
The financial profile of Sun Crow is more like a commercial business been C. S b, including relatively low capital intensity and high rate of pass one conversion.
With almost $700 million of revenue during the past 12 months, which has grown at a compounded rate in excess of 100% since 2017.
We are expecting some pro to immediately contribute to our growth in revenue adjusted EBITDA and adjusted free cash flow.
We're very excited by the Sun for a business and we look forward to completing the acquisition process during the coming weeks.
We are now planning to host our Investor day in the first quarter of next year, where we will share more details about the Sun Pro acquisition, our overall growth strategy, our longer term financial framework and guidance for 2022.
Thank you for joining our call today and thank you for your support of our company.
Operator, please open the call for questions.
Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.
And confirmation tone will indicate your line is in the question queue.
Press Star two if you like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment, please while we poll for questions.
My first question. Our first question comes from Gary Bisbee with Bank of America Securities. Please proceed with your question.
Hey, guys. Good morning, some exciting news there I guess, let me start with a question on Sun Crow a deep you know obviously, it's grown dramatically, but can you give us a sense how profitable is it right now and you know when you think about growth over the next few years you know how how are you thinking about that.
It is it is that you know, 100% CAGR sort of sustainable or do you think that the business is likely to slow as it matures in the next couple of years. Thanks.
Good morning, Jerry It's Jim I'll give a couple of just a touch all responses are more at a strategic level ask Geoff to to comment as well.
Obviously, we're super Super excited by the acquisition all the opportunities, we're especially excited given the growth there.
We've had positive EBITDA and cash flow, we've been attracted to the solar space for some time.
For Us this is an opportunity to increase Tam in an adjacent market and and really accelerate our growth. We we were attracted to the industry for all the reasons you would expect there's a massive shift underway are driving the residential solar adoption.
Overall transition of renewable energy, we were specifically attracted to Sun 12.
For a handful of reasons. The management team is first rate fantastic customer service and we think we can bring some assets to the party that or from ADT that can further accelerate the growth leveraging our brand cross selling to our base cross selling too.
Our new subscribers.
And bringing the scale advantages that ADT has and that sunpower will be able to leverage so all in all I'll ask Jeff to address some of your specific specific questions.
Yeah. So it's the same thing here, you're very very excited about the space to the expanded footprint the larger size of the market available to us one of the attractions is.
Is that that they had been very fast growing company, but had been profitable generated positive cash during that that growth and implicit in our comments, where we when we talk about the approximate multiple U.
You can infer from that that we're anticipating forward EBITDA and $80 million range, we shared at our material. They're trailing 12 month revenue is a little bit less than $700 million they've grown during the year. So the run rate from a revenue perspective is approaching $1 billion strong cash conversion.
And we're expecting continued growth you're very excited by the contribution of what it means for our future and then we'll of course share more detail once we get the transaction closed concurrent with the rest of our 2022 guidance.
Okay, Great and just maybe another follow up on that so I understand how you could likely have a meaningful impact on their ability to acquire customers beyond beyond that how do you think about synergies.
Jim I think you did say helps sack in both directions. So I don't I don't know if there's an obvious play as to how it can help our core ADT and beyond that are there. Other synergies. We should think about you know the that you think supports the transaction. Thank you.
Hey, Gary it's principally a revenue synergy play for US there is most definitely some cost take out opportunities.
Much of it in negotiating with supply chain, helping with things like talent acquisition, just bringing the scale that that ADT has to bear on a meaningfully smaller company.
So we think we can get some margin expansion by deploying those cost synergies, but principally the big opportunity for us is on revenue synergies.
The what I mentioned early the opportunity to cross sell into our base the opportunity to cross sell to our new subscribers are we're looking at some really interesting things around unbelieving smart home and solar together, we've done a good bit of research with our base with solar.
Tenders with non solar and tenders are we know that our brand plays incredibly well and we're you know we're bullish both on the revenue synergy side and then there's some cost synergies to pick up as well.
Great. Thank you.
Yeah.
Our next question comes from George Tong with Goldman Sachs. Please proceed with your question.
Hi, Thanks, good morning.
I'm the son Pro acquisition just to touch on the last point on revenue synergies you talked about the opportunity to cross sell into the base and to bundle.
Can you potentially give us a quantification of how much this acquisition can lift underlying growth both at ADT and at Semgroup.
I would say George we're not.
With Jeff shared we're not ready to give guidance on 2022. The we think we purchased at a really attractive price about 10 times forward EBITDA. So that implies an EBIT next year of about $80 million.
But beyond that we're we're not ready to share specific numbers one of the things that I will share, though is we have a number of our dealers who are currently selling our solar obviously its not adt's solar they've got relationships with other companies, but the cross sell.
Experience has been really successful and really inspires confidence in us that we're going to both in direct and dealer be able to be able to cross sell to the patient and new subs were not really give specific numbers today that'll.
Be embedded in the 22 died will share much more at Investor day in Q1, but but beyond that not more than $80 million in EBITDA next year.
One thing I'd add.
George I'll I'll add to that that we use.
You evaluated the company either.
Variety of different financial models as you can imagine we effectively underwrote it without necessarily counting on the synergies you and Jim says, we think we bought it for for a good price that that's true in minutes, it's especially true if we modeling synergies.
I also wanted to emphasize that that the sellers consideration is is via ADT stock. So it became clear in the conversations and part of buying them for a good price themselves were highly attractive to do atg starts, but that also doesn't quantified the synergies, but it just gives you a sense that both parties are highly attractive to what the two firms can do together.
Got it that's helpful.
And then looking at revenue payback it looks like revenue payback, one to 2.3 times in the quarter that compares with $2 two last quarter and two point to last year and you also narrowed.
In euro the free cash flow guidance range to reflect more of a focus on growth. So so given those moving parts can you talk about your overall efficiency in acquiring customers are you seeing improving efficiency or or any changes in how efficiently you were able to deploy your your sac.
Hey, George it's Ken before here I'll take that one if it's all right as the guys mentioned, we were up 7% year over year in RMR growth again last year with the Covid impact will actually look at it versus 2019 as well.
2019 were up about 17% so good growth in the topline RMR added on what you're seeing there is yes. Some of the payback because he had to point to one to two to $2. Three a lot of it is hard to dealer mix dealers, having a killer you're in a killer quarter, a direct it's up as well, but dealers that mix is a little more expensive for us, but if you.
Like the economic returns. These are healthy returns and we're happy with all of that additional RMR added that we're getting that pushed the two dot two after two three this the average customer life extends over eight years. So good economic pieces. If you think about the future and where we can bring some of the efficiency and kind of where you're going with it and the way the revenue.
Pay back over time, especially with some of the bundling of products. The Google our innovation that we have going as well as thinking for them now with solar.
Brings opportunity to bring greater efficiencies and greater upsells from a revenue standpoint, as well as cost efficiencies. So again, we like where we're at right now good strong economic returns, but still have some leg room to improve as time passes.
And in Georgia, I'll add you you mentioned guidance, we're really pleased with our performance. This year in executing overall as planned we as you know the tightened our range is towards the higher end of our initial range on revenue and adjusted EBITDA due to the RMR growth that is in many respects come from that.
Sac investment. So if you look at the year on balance and why we're able to do that or RMR adds up in the mid teens, the bounces up $15 million that equates to $100 million annualized.
The revenue at the higher end EBITDA at the higher end, you're close to the finish line on three G and healthy commercial underway. So while we have a couple of months less where we're very pleased with our performance during the year.
Very helpful. Thank you.
Our next question comes from Toni Kaplan with Morgan Stanley. Please proceed with your question.
Hey, guys. This is actually Jeff Goldstein on for Toni.
The slides you mentioned that MMS revenue benefited from an increase in average pricing is down more given the mix shift towards interactive products or are you also getting price on a like for like basis across your services just how should we think about the pricing environment overall, especially in the face of rising inflation in the market as a whole right now.
Largely it's an increase in some of the interactive services, especially video take rates are high continue to be up quarter on quarter year on year.
The average price of a sidecar based services continues to be pretty constant at this point, what we are looking at that with some of our service revenues for like time material. So when we go in and service the customer in their home. We are taking a harder look at that and what we charge for some of that billing, but the main increase that you're seeing there is the mix and interact.
And specifically video.
Okay Fair enough and then I'm curious on the labor labor side are you running into issues either around employee turnover or ability to find new tax and if that is the case do you think you've sacrifice any revenue because you couldn't find the labor and then any expectation on your end when you would expect any labor pressures. If there are any <unk> to just.
Going forward. Thanks.
Yeah, Jeff It's Jim it's so labor is absolutely an area of focus for US I think in the U S. Theres now something over 9 million open jobs like like many employers were working through talent acquisition strategies across a broad range of our positions.
Mission sales customer care I would say to date labor shortages had had a immaterial impact on sales.
An immaterial impact on our own technicians, and an ability to install but it is a daily challenge for us and and part of the problem isn't just lack of candidates, but a mismatch between the skills of the candidates are available and in those that we need so net net labor and Ah.
A tight labor market are on our radar screen as his talent acquisition, making sure that we've got an attractive employee value proposition has never been more important to date no no material impact for us.
Got it thanks for the color.
Yeah.
Our next question is from Ashish Chopra with RBC capital markets. Please proceed with your question.
Thanks for taking my question, so Jim as you.
<unk> embarked on several initiatives over the last several years, including commercial DIY, Google and now some pro can you just comment on the management bandwidth to manage so many different initiatives and maybe just a follow up to that would be also.
Got it yes, no that you'd think about your portfolio as I've done in areas such as commercial security, but you may not be a school with a Google DIY central and so are there areas that you think that could be potential like for putting fill etfs for divestiture as well. Thanks.
Sure. So ashish from a management bandwidth perspective, we've been incredibly fortunate that the companies that we acquire.
The management teams the leadership teams of those organizations have joined and stayed with ADT.
That's the case in the acquisition of DIY, that's the case with Red Hawk. That's the case with a number of tuck in acquisitions that we've done in commercial.
And are we feel really good about the Sun Pall leadership team, joining our ATP going forward.
In addition to that we'll be operating Adt's solar really semi autonomous like are the integration will be pretty limited we want to ensure that the organization is getting all of the benefits of ADT, but stay nimble and focused on growth and I think.
From a combination of retaining the leadership talent.
At Sun Pro as with our commercial acquisitions <unk> and.
And operating a business without a heavy lifting in integration.
We're going to be able to handle it from a bandwidth perspective.
That's very helpful color and then maybe if you could just also address the question on the portfolio rationalization are there.
You believe certain businesses within our <unk>.
<unk> D, which may not be as schools, given the focus on the residential business.
Yeah.
A little bit there, but I think you were asking about the prospect of divestiture of any of the businesses that are noncore and for US today, we're continually doing a I'm doing a portfolio review.
The businesses that we're in DIY commercial obviously, our core residential and Sunpower. There's no no immediate plans no serious conversation about divestiture.
You know were always contemplating how to unlock value for our shareholders. So while it's not on the radar screen today, perhaps someday in the future, but we think that you know ashish.
She says there's a lot of a lot of advantages to having these days well says together and at least today as we look at the landscape can't really see a.
A divestiture of a scenario.
That's very helpful color. Thank you very much.
Thank you.
Our next question comes from Brian wrote in bar with Imperial capital.
Please proceed with your question.
Yes. Thank you very much congratulations on the acquisition in the quarter. So just going back a little history, you've gone from a security company to a home automation company, you're now into solar and I I totally get that.
But what's next what pieces are you missing do you need to add hardware do you need to add additional services is it more video can you tell us what you're missing out of the portfolio and where the future is of 82.
Yeah, we're feeling pretty good play and where we stand today, we're looking at opportunities to increase Tam in adjacent markets.
Auto is an area that we kick tires on a bit were looking at some interesting things around use cases are.
Expanding new use cases to leverage our mobile product health is an area that that we've contemplated.
But we feel pretty good about the existing portfolio a lot of the innovative effort now is really on how do we improve our existing product.
As you know we are building our own interactive.
That a product called ADT, plus will be unveiled and integrated with Google.
At the end of 2022.
And we're doing a lot of work around monitoring and smart monitoring.
Working to improve that product and really leapfrog the industry. So.
So I'd I'd I'd conclude with is not we don't see a hole in our lineup, but we see opportunities to continue to innovate to make what we've got better.
Great. Thank you as a follow up I'm talking about that [laughter], you kind of led in with my Google update.
So you have a partnership agreement.
Agreement with alarm Dot Com I believe until mid 2022 are you going to need to extend that or are you going to have the Google.
Yeah software ready to go ADT, Google partnership ready to go by.
By kind of mid 2022, or just give me a roadmap a little bit in that timing of that.
Yeah. So Brian this is Bob on the partnership with ABC will continue into the foreseeable future. We have a lot of customers that use both pulse.
Command and control platform they will stay on those platforms until sometime in the future. It makes sense to perhaps upgrade one but will continue to be a partner will continue to develop and mature those platforms. At the same time, we're looking forward to rolling out our own interactive platform of which we've had some recent success launching for our DIY customers on November.
A second well actually well ahead of plan.
Rolling out that platform and it was a seamless deployment. So we're really really bullish and excited about the things that was it.
Rollout in 2022 can't get into the specifics of some milestones that soon we'll be able to go ahead and just left off on investors day.
Just a just a follow up on that Dan real quick on November 2nd you started rolling it out to is it more beta or is it actual alive to DIY customers fly.
Why we have a little over 100000 DIY customers that were using an older version of the platform that we sensed in place with the newer platform. The one where we intend to use for what we call DIY customers in the future. It was always our plan to go out and well notwithstanding the pull ahead and taste tested that with a handful.
Worldwide customers and and I'm happy to say that we're now about 10 days into it now almost and we have had no issues whatsoever.
Great. Thank you.
A portion of our call I'm going to turn it back to Jim for a quick closing comment.
Thanks, Jill so in closing I'd like to extend my appreciation to our ADT employees and dealers, we had a strong quarter a terrific quarter I'm proud of your collective efforts are of course, I'd I'd like to formally welcome Sun Crow to our ADT family.
Couldn't be more excited for this next phase of our growth and the launch of ADT solar so thank you.
As well for everyone joining our earnings call. This morning, we're optimistic about finishing the year strong as well as adt's future and are looking forward to the growth of Hey, I'm looking forward to the growth ahead.
Have a good day, everybody and thank you.
This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.
Today's conference has ended please disconnect your lines at this time. Thank you.