Q4 2021 Barrett Business Services Inc Earnings Call
Good afternoon, everyone and thank you for participating in today's conference call to discuss P. B S. I's financial results for the fourth quarter and full year ended December 31, 2021 .
Joining us today are Bbsi's, president and CEO , Mr. Gary Kramer and the company's CFO , Mr. Anthony Harris <unk>.
Following their remarks, we'll open the call for your questions.
Before we go further please take note of the company's Safe Harbor statement within the meaning of the private Securities Litigation Reform Act of 1995.
The statement provides important cautions regarding forward looking statements. The company's remarks during todays conference call will include forward looking statements.
These statements along with other information presented that does not reflect historical fact are subject to a number of risks and uncertainties actual results may differ materially from those implied by these forward looking statements. Please refer to the company's recent earnings release and the company's quarterly and annual reports filed with the Securities and Exchange Commission for more.
Information about the risks and uncertainties that could cause actual results to differ from those expressed or implied by the forward looking statements.
I would like to remind everyone that this call will be available for replay through April stuck in 2022 starting at eight P. M. Eastern Tonight, a webcast replay will also be available via the link provided in today's press release as well as the as well as available on the Companys website at Www Dot P. B at the dotcom.
Now I would like to turn the call over to President and Chief Executive Officer of BBSI, Mr. Gary Kramer, Sir. Please go ahead.
Thank you Paul Good afternoon, everyone and thank you for joining the call our operational and financial results were exceptional in the fourth quarter and capped off a great year, we consistently exceeded our internal estimates for client retention net client adds and worksite employee growth all of which resulted in better than <unk>.
<unk> financial results.
Before I speak to the financial results I would like to recap some of the key operational and strategic accomplishments for the year.
We successfully completed the conversion of our existing clients over to our new my BBSI platform. We are pleased with the platform, but more importantly, our clients are appreciative of the investment and the feedback continues to be positive.
We are not done with our investments and have an I T roadmap of enhancements new features as well as new products.
We packaged our new technology with our nationwide offering and brought on larger clients on average this year than we have in previous years.
We built out our corporate sales department and increase the top of the funnel by focusing on lead generation via an Omnichannel digital campaign, which brought on new clients and new referral partners.
We executed on our employer of choice initiatives and invested in our employees with robust enhancements and compensation benefits vacation training and volunteerism.
People are our products and we attract train and ultimately retain the best employees that any PEO has to offer.
In November we were pleased to announce that we were certified as a great place to work for the first time.
We successfully rolled out our asset light markets, which encapsulates everything I just mentioned.
[noise] attract and hire great people train them well apply the lessons we learned in a COVID-19 environment for how to operate remotely and package with our dish digital initiatives to help grow their market penetration.
We will service the clients out of an adjacent branch or a corporate and invest behind them in infrastructure as they build up their client base.
We entered into workers' compensation insurance transactions, which de risk our business model and results in better financial predictability. These.
These transactions are structured in a manner that greatly limit any potential downside of orange Orange program, but we can still share in the upside of our disciplined underwriting.
I want to again, thank everyone in the BBSI family for their exceptional efforts.
Plainly stated I am proud that we foster a culture that embraces innovation and execution.
Moving to our financial results during the quarter, our gross billings increased 13% over the prior year's quarter and exceeded our expectations.
Our average Worksite employees were up 7% over the prior year quarter, we've exceeded our pre pandemic levels. In 2021 finished the year with the highest year end worksite employees and BBSI history.
This is due to our clients hiring as well as net new business and we continue to be the head of our internal forecast for our Worksite employee stack.
Our staffing business increased 14% over the prior year quarter.
We could have grown more but continue to have challenges filling orders with the tightness of the labor market. We are seeing more applicants, placing more applicants and companies are increasing wages to attract employees. We are still unable to fill all of our orders what our fill ratio improving.
But to summarize our financial performance for the year, our gross billings increased by 11% and our earnings per share grew by 14%, which is in line with our long term growth plans, we returned $9 million in dividends and bought back shares totaling $17 million, which reduced our shares outstanding by three two.
Sure Seth.
These are fabulous results and a great return for shareholders.
Moving to the branch operational updates.
Our branch footprint decreased by 3% to 50 total branches, we continue to be mindful of operating efficiencies and consolidated Glendale into Phoenix Eugene into Willamette Valley in Valencia in the Pasadena. These.
These decisions were made with the intention of continuing to grow revenue, while servicing our clients, but doing so in a more cost efficient manner.
Our branch stratification is as follows twenty-three mature branches with run rates in excess of $100 million 17 emerging branches running between 30 and $100 million.
10 branches, we consider developing with run rates up to $30 million or.
Our business units totaled 98 and incorporates the consolidation as previously mentioned.
We also continued our migration into our revised structure of our 16 member business unit, which allows us to service more clients with less management employees and increases our return on management payroll.
Summarize our branch footprint over the past two years at the end of 2019, we had 64 branches over the past two years, we consolidated 19 branches within existing markets and expanded five branches into new markets, finishing 2021 with 50 branches.
By the end of 2022, we forecast that our gross billings will be up by approximately 20% over 2019, but our SG&A field payroll will only be up by 6% and that includes investing in 14 asset light markets.
Speaking to the asset light model. Our first class has graduated and is currently selling in four new markets. We are still in the early innings, but through February we had eight new clients added were in contracting we are seeing positive trends in this model and intend to invest in approximately 10, new markets in 2022 and our.
<unk> actively recruiting in markets, we're not in now.
Moving to our client and WSI staff.
Our client retention continues to be stronger than pre pandemic levels I'd like to attribute that to the work, we do with our clients and the value of our teams to bring in this ever changing and complex economic environment rigs.
Regarding our distribution channels.
Business is almost back to normal our leads and prospects in the quarter were greater than the previous quarter and our best quarter post pandemic.
We had a strong fourth quarter and our year end WSI stack was the highest in our history.
More importantly, we capitalized on the one one selling season and this January was our best January for net new business in the past five years.
Better than pre pandemic.
We continue to invest and refine our longer term initiatives are increasing the top of the funnel by focusing on lead generation via an Omnichannel digital campaign, where we target both clients and new referral partners in different markets results. Thus far are positive we are signing up new referral partners in new clients that would not have come to us via our traditional.
We will continue this initiative and make further investments in 2022.
These positive trends resulted in the company, adding over 1300 net new Worksite employees in the quarter, which was ahead of our forecast and further supports our optimistic outlook for 2022.
As I think to the future I have never been more optimistic about BBSI trajectory.
We had great momentum in 2021 and it is carrying into 2022, our client retention is the best it's ever been and we're seeing in closing on more prospects or prospects continue to be larger because of our technology stack coupled with our nationwide offering we will continue to invest in technology and we will continue.
Two invest in growth initiatives.
We have minimized the insurance risk to the company and the only thing that can hinder our progress now is execution risk and honestly, our fabulous results speak for themselves.
Now I'm going to turn the call over to Anthony for his prepared remarks.
Thanks, Gary and Hello, everyone.
I am pleased to report we finished 2021 with strong results and as Gary noted strong momentum.
Both the quarter and the year exceeded our expectations.
Starting with the full year first our gross billings increased 11% to $6 6 billion and diluted EPS increased 14% to $5 per share compared to $4.39 in the prior year.
The increase in earnings leverage was achieved even with the return to more sustainable SG&A levels in 2021 from the uniquely low level seen in 2020.
Focusing on our Q4 numbers net income for the quarter was $10 6 million compared to $7 2 million in Q4 'twenty.
Q4, PEO gross billings increased 13% over the prior year quarter to $1 8 billion.
Staffing revenues increased 14% to $33 million.
Our increase in PEO gross billings was driven by stronger than expected growth from net new clients in the quarter.
<unk> strong hiring within our customer base and higher average billing per WSB.
Our Q4 average wf fees increased 7% year over year.
While our average billing per WMC increased 5% driven primarily by higher wages.
PEO gross billings growth by region versus the prior year fourth quarter were as follows.
And state grew 38% East coast grew 19%.
Civic northwest grew 15%.
Northern California grew 13% and southern California grew 6%.
As discussed in prior quarters. The primary driver of the slower growth in southern California is lower same customer sales growth as our clients are adding fewer new employees that another region.
However, we continue to see positive trends in the region, including faster sequential growth in Q4 than in Q3, and we expect this momentum to continue into 2022.
Workers' compensation expense continued to trend favorably in the quarter and included an actuarially determined a reduction of prior year estimated liabilities of $1 7 million in the quarter.
Our claims performance also remains favorable and our relative frequency rate once again trended down in the quarter and remains well below historical rates.
As a reminder, we entered into a new fully insured workers compensation program effective July one for the majority of our clients we.
We now describe our workers' compensation coverage for clients at being under either the insured program or our self insured program.
Proximately, 82% of our workers' compensation exposure, including all California clients are covered by our insured program.
All claims incurred in these state. After July one are now covered 100% by the insurance market with zero claims cost retained by BBSI.
Our strategy of Derisking our operations through this ensured program is operating as planned with favorable results and we expect these favorable results to continue into 2022.
Because of the move to a fully insured program our workers compensation liabilities decreased by approximately $18 million in the fourth quarter as remaining historical claims continue to be paid.
Looking at margin and pricing, we are seeing billing rates for new at levels consistent with the prior year.
Looking at the market more broadly market pricing for workers' compensation coverage is now largely flattened after decreasing for several years.
Rates remain at low levels relative to historical rate at these lower rates have been offset by lower workers' compensation expense in the year and our margin rates have remained stable.
We continue to see strong client retention in the fourth quarter and beyond which demonstrates the value we're creating for our clients and supports our ability to maintain margins ebay and competitive pricing environment.
Moving to operating expenses.
SG&A for the quarter came in line with expectations at approximately the same levels of Q4 2020.
As discussed in prior quarters much of 2021 faster year over year growth in SG&A due to the abnormal compare in Q2 and Q3 of 2020.
As we look ahead to 2022, we expect to return to more normalized SG&A growth rate in line with our target of approximately half of our topline billings growth.
Our largest increase in SG&A will come from employee related expenses in 2022, including higher average wages and increased head count.
<unk> to support growth initiatives.
We continue to closely manage our operating expenses and our management employee head count in 2021 still ended below that of 2019.
Our investment portfolios earned $1 7 million in the fourth quarter compared to $1 6 million in the prior year quarter.
Our investments continue to be managed conservatively have an average duration of four one years average quality of investment in double E and average book yield of one 8%.
Turning to the balance sheet and our capital plan we.
We had $166 million of unrestricted cash and investments at December 31, compared to 116 million at September 30.
As you continue to evaluate our most efficient capital arrangements.
We renegotiated our credit agreement with Wells Fargo to increase our line of credit to $50 million from $33 million previously and extend the agreement the maturity of the agreement to June of 2024.
With favorable fee changes increased capacity will come with little incremental cost.
We also restructured our covenants to provide more flexibility including in share repurchases.
To further optimize our capital commitments, we have purchased certain assets that were formerly leased this will show as an increase in Q1 Capex will result in lower overall operating expense for the company going forward.
And subsequent to year end, we paid off the remaining balance on our corporate headquarters mortgage and as a result, we can now say that we are completely debt free.
We continually assess the level of capital needed to maintain effective business operation with appropriate risk mitigation.
This minimum level of required capital has decreased as we have derisked, our model and now retained less workers' compensation claims exposure.
We are committed to deploying our excess available cash investments in ways that benefit the long term health of the company and our shareholders.
I'll recap, our general philosophy on capital allocation.
Our first priority is to invest in the business.
Our best path to continued earnings growth and operating leverage through scale and we continue to seek out new opportunities to invest in order to scale consistently and effectively.
This investment typically comes in the form of strategic hiring and focused growth initiatives.
And it will also continue to include investment in software and infrastructure in the year.
Our focus on enhancing our product and our client experience.
Second we have said that we are open to investing in inorganic growth through acquisition and this remains true.
But we are also committed to ensuring that any potential acquisition is right for our company and our shareholders for the long term.
Third at BBSI continues to steadily generate positive free cash flow.
Remain committed to returning capital to shareholders.
In 2021, we returned $26 million to shareholders through a combination of dividends and stock repurchases.
This equates to an income payout ratio for the year of approximately 70%.
To solidify our commitment to drive shareholder value. Our board of directors has approved a new $75 million two year stock repurchase program.
Which will replace the $50 million three year repurchase program that was previously in effect.
In addition, BBSI remains committed to its dividend and the board also reconfirmed our quarterly dividend of <unk> 30 per share to be paid April one.
Turning now to the outlook for 2022, we expect gross billings to increase between 7% and 9% for the year, we expect average WMC to increase between three and 4%.
We expect gross margin as a percentage of gross billings to be between three point O and three 1%.
And we expect our effective annual tax rate to be between 24 and 25%.
I will now turn the call back to Gary for closing remarks.
Thanks, Anthony 2021 was a great year, and we think 2022 is going to be even better. We continue to always think of the client first and to advocate for the success of the business owner.
We've been working on the right things and I think we're in a great position for future growth now.
Now I'd like to turn the call over to the operator for questions.
Thank you we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate their lineup in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment may be necessary to pick up your handset before pressing the star Kids one moment. Please.
While we poll for questions.
Thank you. Our first question comes from Chris Moore with CJS Securities. Please proceed with your question.
Hey, good afternoon, guys. Thanks for taking a couple of questions.
So given the changes that the.
The Chubb trust and rising rates.
When you look at investment income for 'twenty, two how does that compare with 21.
Yeah, It's a great question Chris.
We've said previously with our fully insured model as we have capital requirements going down we expect our restricted investments to go down that will be the case on the other hand, we are seeing rising short term interest rates in a year.
So those are effectively offsetting and our forecast for 2022.
In terms of investment income.
Got it alright, maybe can you talk a little bit about the shape of your earnings quarter to quarter.
In fiscal 'twenty two versus 21.
Yeah, absolutely. So if you look at our income it is always seasonal and that's driven by the timing of when payroll taxes are incurred and those are frontloaded primarily into Q1, So Q1 will always be our lowest profit quarter.
Correspondingly Q3 is typically our highest profit quarter than Q2, and Q4, usually similar but lower profit.
And that'll be true again this year. One thing is if you look at our top line growth in the year, we're expecting sequential growth in each quarter.
But when you look at the compare from 2021, there will be some variance in the quarters. So Q1 will be our strongest topline growth quarter.
If you look at the year over year compares.
In Q4 actually.
It will be will be lower in part because.
2022 does have one less business day.
So that equates to about a half a percentage point.
Billings growth that we'll lose in 2022.
Because of that one less business day in that occurs in Q4.
So on a year over year basis, Q1 will be strongest Q4 will be weakest Q2, Q3 will be more consistent on the topline.
That is extremely helpful.
I'll jump back in line I appreciate it guys.
Thanks, Chris Thank.
Thank you. Our next question comes from Jeff Martin with Roth Capital Partners. Please proceed with your question.
Thanks, Good afternoon guys.
Just curious if you could.
[noise] dive into the Worksite employee growth a little more during the quarter primary drivers net hiring versus wages, how those to break out and if there are any other excuse me any other factors.
Yes.
I'll start off and then Anthony can clean it up.
I would say is the one that I'm. The most proud of in the quarter is clear.
Clients, we added in the Worksite employees, they had minus clients that ran off in the Worksite employees. They had resulted in us having 1300 more worksite employees that we added in the quarter right and that is our what we call here is that's our controllable organic growth rate, which we're very pleased with.
And we've had strong track records of that over the.
Last couple of quarters in a very strong track record of that going into January as well that I mentioned in my script. So.
If you take our controllable organic and then you add the same customer sales with the same customer self evident.
8%, 8% six 4% average billing for WMC.
Okay.
For the year.
That is just going to jump in yeah clean me up.
So for the figures, we gave quarterly figures in annual figures, Jeff but for the for the annual figures for average WC growth. It was four 3%.
And within that number that will include WCS from client hiring but also net new client adds and as Gary said the proportion of net new client adds.
It's the highest it's been in years on that so thats fantastic news.
The average billing per WC at six 4% for the year.
And we saw that right off the bat you know early in the year, we were seeing high year over year billings growth.
For WMC.
And partly that was attributable to the employee mix shift towards higher wages, but especially later in the year that was driven genuinely bye bye wage inflation. So we are seeing through wage inflation come through particularly in Q4.
And that's part of the momentum we talked about going into 2022.
Yep Yep, Okay, and then the prospects for average.
Size of new clients is interesting you would think that would become a fairly significant growth tailwind.
In the not too distant future was just curious if you could give us some relative perspective on the size of new clients youre, bringing on now versus maybe.
In 2018 or 2019.
Yeah. If you go back to what I meant is if I go back to what I mentioned earlier about the clients, we're adding as far as.
Clients were Adam in the WCS. They had minus clients that are running off with the WCS. They had that got us to the positive <unk> hundred.
And I want to say that our our unit counts to put it in perspective, our unit counts or more.
I'll say consistent now and in the past we were adding.
Smaller clients and running off larger clients and you had to add two or three to make up for the one year loss.
Where we're getting at now is we're adding clients that are larger than what we're running off so.
If you say our average worksite employee per client is about 26.
Adding north of 26 Ws He's on average now we have some.
Some still smaller than that but the majority are seem to be larger than that and one of the things we've done to us.
We have bench trial, we love small clients that become big clients and we love small clients that we can make adequate marginal, but if we're not making the adequate margin on the smaller clients or are they don't have plans to grow then than.
Then we try to make the business decision to focus on the on the larger business now.
Yep, Okay and you've.
And in the end.
<unk> CEO <unk> Roy.
For almost two years now where maybe it's been two years.
I was just curious from your perspective, how you see it.
Typical market cycle.
In fact in the business and what are some of the things you do strategically and operationally as.
As part of the difference.
As of the cycle.
Good question it has been a long two years.
And it's hard to.
Hard to visualize what normal is with no pandemic or hyper inflation or conflict over in Europe .
But.
Just in general the way the way that we think of the businesses and I'll talk approximate right because I'll do round numbers and try to keep it simple.
Well last year results is what we think we're capable to put up annually right, where we can grow the top line 10%.
Grow the SG&A in a normal market at about half of what our top line is.
And then what that equates to the bottom line is about a 15% increase in net income and we feel like we've got the machine in place to consistently over a cycle.
Ted on the top and <unk> 15 on the bottom.
Yep, that's nice leverage should be great to see that happen I know a lot of a lot of us have been rooting for the SG&A leverage over the years and it sounds like you're at that point now you did make a comment that in.
In a normal environment.
Do you expect that you'll be able to experience that.
Yeah that leverage this year or does wage inflation and employee retention.
I'm, a factor where that may not be the case, just yet this year or parts of this year.
We've we've modeled in that.
And we've also modeled in investments into the company investments and adding new head count investments in I mentioned, adding the 10 new markets.
And even layering all of that and we feel pretty confident that we'll be able to do it I mean.
If you just keep it simple if you put up 10% growth at a 3% margin that's about $20 million of gross margin dollars and then we're mindful of how we.
How we invest in the SG&A. So do we show leverage down at the bottom for the net income growth.
Yep Yep, Okay, great. Thanks for taking my questions.
As a reminder, if you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue.
Okay.
Thank you. Our next question comes from Vincent Colicchio with Barrington Research. Please proceed with your question.
Yes, Gary.
Nice quarter.
I think I heard you say that youre investing in 10, new markets in 'twenty two.
That sounds pretty aggressive versus the past.
Can you maybe take us through your thinking on.
Come on that.
So just more optimism.
Any thoughts or it would be helpful.
Yeah. So this is.
It kind of ties into my prepared remarks, where I talked about our asset light model right. So.
We were able to attract good talent, we've invested in training good talent, we have immersion training with them as well.
We get them up to speed, where they can go sell in their market when they sell in their market, we assist them with our digital campaigns.
And.
Really thats one salesperson in one market and then what we do is support that business either out of corporate or in adjacent market.
So we call that the asset light.
Because what we're really doing is hiring 10 folks and putting them in 10 markets.
And you know.
What we're seeing so far after experimenting with this in 2021 is saying all right we feel comfortable with what the results. We got in where we are for 2021.
We're going to double down in 2022 on this program and the idea is.
Once they are successful and they begin to get critical mass then we will invest in infrastructure behind them in that market as far as.
People to help us.
Service the business locally.
And.
Could you talk a little bit about acquisitions.
As Youre focused changed at all or you still get the same markets.
And.
How does pricing look.
Not much of an update there.
We look at everything that comes across were active.
But we are thoughtful right, we are thoughtful of shareholder equity.
We need to make sure that we that we put on the right.
Acquisition, not just any acquisition and that just comes down to how we look at our.
Our capital and the risk that we have to take with capital. So we are active we will continue to be active but we.
We will be mindful I said in prior quarters, though you got to kiss a lot of frogs and were still kissing frogs.
And where does the mix look like in the quarter in terms of WMC additions from referrals and your new model.
Versus direct.
Oh.
So the direct versus the referral channels, we're a heavy will.
We are a heavy referral channel business.
And that's where the majority of our business.
It comes from and will continue to come from and we love our referral channels I mean part of our digital campaigns is to try to attract new referral partners.
And if I look at Q4.
For referral partners that brought us leads our prospects for Q4 'twenty one versus Q4 'twenty now these are new referral partners new to BBSI.
We had three times the velocity of new referral partners that we're feeding us business in 'twenty one versus 'twenty.
Part of that is a function of.
20th was still coming out of pandemic number one but number two is we have the discipline to seek out referral partners and we're using technology to assist to assist us with that.
And how does the pipeline of leads and prospects look now versus last.
Last quarter last quarter.
Compared to last quarter it was.
If I just look at our prospects that we had going into Q4.
We were about 50% higher than we were than.
And then the prior year.
Which.
Results in its kind of math if you keep your close ratio. The same we had more closes in Q4, which added to our strong WSI growth in Q4, but that momentum carried into Q into January and January was our strongest January as far as net client adds.
Over the past five years so.
Positive things Q3 into Q4 that continued into Q1, which gives us.
Those clients, we added in Q4 and in early January to give us a real good tailwind for revenue growth for 'twenty two.
It sounds good nice job. Thanks.
Thank you.
Our next question comes from Kevin Mackie Independent analysts. Please proceed with your question.
Yeah. So I believe it was last conference call that you mentioned your new technology.
Thank you.
This is the end of I will do something on an answer session.
Oh, I'm, sorry, one moment.
Our next question comes from Matt Dane with Titan Capital Management. Please proceed with your question.
Great. Thank you I wanted to delve a little bit more into your initiative to attract larger clients well.
What additional color can you share around that what what specifically are you doing to help drive those larger clients and attract them to toward one side.
Yes sure.
It's.
The technology that we have is able to bring on larger clients now the.
Our clients appreciate our technology much more than what we had in the past that's first and foremost the second is.
Larger clients you have exposure in various states of before we werent able to to do we Werent license in every state of the PEO. So now we have the technology and we can go anywhere they go as far as on the state mix.
Yes.
We mentioned that we are investing in technology, and we will continue to invest in technology and part of these investments we will be making in 'twenty two.
To better support larger clients because larger clients have a.
I'll say, a different different need or sophistication than a smaller client and we're going to utilize and invest in technology.
To make that business.
I will say.
Easier easier to flow data with with our larger clients.
Okay. That's helpful and then on the actual sales and marketing side I understand that the technology is really consolidated today compared to the path.
But in regards to targeting them specifically is it more just interactions with your referral sources and asking them telling them that hey, these are the ideal type of clients and or is there other sales and marketing approaches that really allow you to target those.
The type of clients that you'd like better.
But there is two fold here. One is we are using technology on the sales and marketing side and.
And I don't want to do.
Get into too much of the plumbing, because we have about 500 competitors that listen to this call. So.
We knew the highest technology.
To get the clients that we wouldn't have typically come to us before especially in new markets, where we're building out.
And we've.
We've learned a lot in 'twenty, one we have been refining as we go and we think we we think we have a better mouse trap for 'twenty two than we did for 'twenty. One is a perfect knows it better than it was yes, we will continue to evolve it absolutely.
And then on the referral partner side, it's it's really being comfortable with with your expertise in knowing who you are right.
We can go in with a referral partner and understand what their specialty is right. So if there are specialties transportation thats great.
We have a huge portfolio of transportation, let me help you and do some co branding and co marketing on the transportation is it picking industry right and we can work with them that way because it depends on how the distribution channel comes to you.
And what their specialty is and Thats, how we try to align with them.
Great. That's helpful. Thank you Gerry.
Thank you there are no further questions at this time I would like to turn the floor back over to Gary Kramer for any closing comments.
No I just want to wrap up and thank everybody at BBSI for their hard work and I just want to say that 2021 was a great year.
And we feel good momentum and good trajectory and are optimistic about where 2022 is going to go. So thank you everybody.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.