Q4 2021 OppFi Inc Earnings Call

[music].

Good afternoon on today's call are Todd Schwartz, Vice Executive Chairman, and Chief Executive Officer, and Sharon Shah Chief Financial Officer.

The company's fourth quarter and full year 2021 earnings press release and supplemental presentation can be found at investors that all five dot com during the call. The company will discuss certain forward looking information.

These forward looking statements are based on assumptions and assessments made by our price management in light of their experience and assessment of historical trends current conditions expected future developments and other factors they believe to be appropriate.

Any forward looking statements made during this call are made as of today and applying undertakes no duty to update or revise any such statements whether as a result of new information future events or otherwise.

Factors that could cause actual results developments and business decisions to differ materially from forward. Looking statements are described in the company's filings with the SEC, including the sections entitled risk factors.

Today's remarks by management, the company will discuss non-GAAP financial metrics.

A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found in this afternoons earnings press release.

This call is being webcast live it will be available for replay for one month on our website I would now like turn the call over to Todd.

Thank you and good afternoon, everyone.

First I want to say, how proud and excited I am to return a CEO about Phi and lead this dynamic company and its next phase of growth.

Some of you know 10 years ago, I founded up by with a compelling mission.

To help millions of consumers, who are locked out of mainstream options to gain access to credit.

The goal is clear provides simple credit to help people with unforeseen expenses and help millions build a better financial path.

Today I remain as passionate about this mission for financial inclusion as I did in 2012 and I'm extremely confident in our future.

As I will detail in the next few minutes. This year, we are focusing on our core business, which we believe will position us to continue to achieve consistent profitable growth.

Therefore, we are pursuing initiatives, we believe that represent the best allocation of capital.

And yield the highest return on investment to unlock the potential to further expand our market share and continue to lead our industry.

As <unk> executive Chairman CEO , and the largest shareholder I want to underscore that <unk> board of directors is committed to maximizing long term stockholder value.

To this end, we recently announced our 20 million corporate share repurchase authorization and we intend to utilize when we believe our share price is disconnected from the long term value and potential of the company.

In addition, my family and I are and have been strong believers in the long term potential of off site and are prepared to further invest and support the stock when we see such a disconnect in the market.

Now I would like to go over three topics before I turn over the call our CFO shipment.

Number one offer some reflections on our record 2021.

Remember to speak about the macro outlook for 2022.

Three discuss our key product enhancements specific to the installment loans business for 2022.

We are very pleased with our record results and strong profitability in 2021 week.

We continue to have a strong profitable core business with robust demand on the heels of the economic recovery and increased consumer spending for.

For the year, we generated $351 million of revenue in line with guidance and $66 million of adjusted net income consistent with the higher end of our expectation.

We ended the year with a strong balance sheet with $62 million of cash $158 million of unused debt capacity and $473 million of total funding capacity to fund future growth.

As we anticipated we are seeing a shift in the macro environment with consumer spending financing trends normalizing to the pre pandemic levels.

And a federal stimulus programs, including child tax credits decades high inflation and increased consumer spending are accelerating demand for credit from our customers. In addition, the strong labor market is creating more employee qualified borrowers. This normalization of demand drove the second consecutive quarter of record.

<unk> in the fourth quarter, resulting in record volumes for the year. We also ended the year with record receivables, which establishes a strong baseline for which we grow in 2022 and beyond.

While it's early we have seen this acceleration of demand continue thus far in 2022 and January and February combined we generated a 51% year over year increase in originations. This trend is better than expected from historical seasonality trends at the same time manned is returning to pre pandemic levels as.

A result, we are proactively managing our expected credit performance to ensure that all customers for which we facilitate credit meet our risk return criteria recently, we rolled out our new next generation credit model that we will believe will enable us to target more prospective customers while achieving.

Our targeted return hurdles.

In the second half of 'twenty 'twenty. One we also made several product and operational enhancements that we believe will have a meaningful impact on growth and profitability in 2022.

First our market based offers we are introducing market based offers to profitably grow our core loans business that incorporates different rate term and loan amounts following promising testing in the fourth quarter of 2021.

Saw certain channels and price points generate two five times volume increases with lower credit risk versus our traditional product. We believe this initiative will enable us to expand our market share and reach customers. We have not historically served all while reducing credit risk.

Tech enabled efficiencies and automation, we continue to leverage our proprietary technology platform and artificial intelligence systems to automate the loan approval process is not only enhances the customer experience with speed, but also improves operational efficiency.

<unk> automated loans more than doubled in 2021.

These loans are funded with zero human interaction.

We expect to continue this upward trend in 2022, which should drive increased operational scale and efficiency.

Third credit enhancements as mentioned earlier, we recently introduced our next generation credit model, which will allow us to target qualified customers more effectively.

When credit began to normalize in Q4, we implemented optimize underwriting parameters and our new models that have resulted in a decline in early stage delinquency.

Of course in addition to these initiatives we continue to work on improving the user experience increasing conversion rates and acquiring customers proficiently.

And we are excited to further leverage our industry, leading customer service.

Exemplified by our net promoter score of 85.

In 2022, we are highly focused on maximizing our core off loans product as we believe we can gain market share with the enhancement that I outlined unlocking profitable sustained growth in summary, we are excited by our key initiatives and the resurgence of consumer demand and are confident about our future as well as our <unk>.

<unk> to serve more customers by facilitating safe reliable credit options with that I'll turn the call over to <unk> to review, our fourth quarter and full year 2021 results as well as provide commentary on our outlook for 2022.

Thanks, Todd and good afternoon, everyone to start I would like to note that our 2020 income statement is presented on a pro forma fair value adjusted view to present like for like comparison.

Youll recall that on January one 2021, the company transitioned to the fair value accounting method or core installment receivables.

Turning now to our results.

Despite a challenging macroeconomic backdrop 2021 adjusted net income increased 19% year over year to $66 million in line with our original outlook at the time of our business combination announcement in February of last year.

As a testament to the resiliency of our business model through varying economic cycles.

Adjusted revenue increased 9% $351 million, while adjusted EBITDA grew 16% to $117 million.

In addition, originations were up 23% year over year to $595 million driving a 22% increase in receivable to $338 million.

Strong financial performance during the fourth quarter led to record full year earnings and the high end of our guidance ranges for adjusted net income attending.

More specifically revenues of $96 million were up 11% compared to the fourth quarter of 2020 and increased 4% from the prior quarter.

Our ending receivables balance on an amortized cost basis was $338 million at the end of the year up 15% from September 30, and up 22% compared to the end of 2020.

Much of that growth was tied to accelerating origination volumes, which totaled $187 million for the fourth quarter up 25% year over year and up 14% sequentially.

From a mixed perspective more than half of the quarter's originations were extended to new customers versus 43% in the fourth quarter of 2020.

On an absolute basis, new customer loan originations for the quarter increased by 51% compared to the prior year quarter and were up 14.

Percent sequentially.

Our annualized net charge off ratio was 53% for the fourth quarter of 2021 versus 36% for the third quarter and 31% for the prior year quarter.

Charge offs continued to normalize as expected in the fourth quarter with a 2021 net charge off ratio coming in at the midpoint of our previous guidance range of 35% to 40%.

While the child tax credit program initially muted the upward trajectory of delinquency the impact faded later in the year. Moreover, on behalf of our bank partner in the second half of 2020 , one we tested new channel partners as well as extended testing and credit facilitation to newer customer segment.

We are no longer facilitating the origination of loans to these segments.

And we believe this charge off trend will likely dissipate by the second quarter we.

We project first quarter losses will trend similar to the fourth quarter 2021.

Looking ahead, we expect improvement in our net charge off ratio beginning in the second quarter, and therefore trend towards pre pandemic level as the year progresses, we have seen improvement in delinquency trends from January and February origination that we believe bodes well for future loss rate.

Turning to expenses.

Operating expenses for the fourth quarter, excluding interest expense as well as add backs in onetime items totaled $44 million or 46% of revenue compared to $44 million or 48% of revenue for the prior quarter and $38 million or 44% of revenue for the fourth quarter of 2020, the year over year increase was primarily.

Driven by more than 50% year over year growth in new loan origination and the corresponding impact on direct marketing and acquisition expenses.

Following a detailed review of our cost structure, we are implementing operating cost efficiency initiatives that will result in a reduction in our cost base of approximately $15 million on an annualized after tax basis of which only a portion we expect to realize this year.

More broadly we expect to continue to reduce overhead and unit level cost with a goal of driving higher incremental margins overtime as we more fully leverage our technology platform.

We expect first quarter 2022 operating expenses, excluding interest expenses as well as add backs in onetime item as a percent of revenues to remain in line with the fourth quarter of 2022 before improving in the second half of the year as we realize savings from our efficiency initiatives.

For 2022, we are projecting operating expenses, excluding interest expenses as well as add backs in one time items to be 43% to 47% of revenue.

Adjusted EBITDA totaled $20 million for the quarter down $11 million sequentially and $14 million versus the prior year quarter as higher revenues and relatively flat expenses were more than offset by increased charge offs.

As expected our adjusted EBITDA margin continued to normalize through the fourth quarter, reflecting rising net charge offs and higher volume related expenses.

For the quarter, our adjusted EBITDA margin came in at 21% compared to 35% in the third quarter and 40% for the fourth quarter of 2020.

Looking ahead, we expect margins to remain in the 20% to 25% range for 2022 with the first quarter expected to come in at roughly half of those level due to the temporary elevated charge off levels in the first quarter.

Confident that margins will expand as the year progresses, driven by our new underwriting model as well as realization of expense sufficient.

Furthermore, we anticipate additional step up in profitability in 2023, and beyond and as we realize the benefits of accelerating growth in higher quality originations, but 30% is our long term margin target.

Interest expenses, excluding that amortization for the fourth quarter totaled $6 million or 7% of total revenue compared to $4 million or 5% of total revenue last year.

Interest expense increased versus the previous quarter as we funded receivables growth from cash flow from operation and debt.

We expect interest expense as a percentage of revenue to remain at 7% for 2022.

We generated adjusted net income of $11 million in the fourth quarter compared to $17 million in the prior quarter and $21 million in the fourth quarter of 2020.

As of December 31, 2021 off by had $84 5 million total shares outstanding excluding $25 5 million earn out.

Adjusted basic and diluted earnings per share for the fourth quarter was 13.

And 78 cents for the year.

Our balance sheet remains healthy with cash of $62 million total debt of $274 million balance sheet receivables of $338 million in equity of $158 million.

Our net debt to equity ratio remains well below two times, coupled with $170 million in funding capacity.

Ample liquidity available to support our future growth plan.

Turning now to our outlook as Todd discussed the credit cycle is normalizing after being temporarily supported by lowering demand, reflecting the influx of cash from government stimulus program.

These factors will impact revenue net charge offs and earnings in 2022.

That said our more recent initiatives are designed to allow us to adjust to these changes and maximize returns and minimize credit risk in the long run.

In summary for 2022, we're introducing the following guidance range.

Total revenue in ending receivables growth of 20% to 25%.

Net revenue defined as gross revenue less change in fair value margin between 60% and 65%.

Adjusted operating expenses, excluding interest expense add back and onetime item as a percentage of revenue between 43% and 47% adjusted.

Adjusted EBITDA margin between 20% to 25%.

And adjusted net income margin between 8% control.

We are currently executing efficiency and process automation initiatives and anticipate realizing their full annualized benefit after 2022 in.

In addition, we believe that in that 2020 to steady state environment with credit normalization and realization of all of our efficiency initiatives. We would achieve adjusted net income at least in line with our 2021 results assuming conservative origination growth.

Importantly, we expect adjusted net income to ramp up throughout the year as we realize the benefits of tighter underwriting parameters origination volumes re accelerating following tax season refund seasonality in the first quarter and operating efficiency initiatives that are underway and will continue through 2022.

More tactically net income will be impacted by elevated charge offs in the first half of the year related to late 2021 vintage.

As those loans run off we expect lower net charge offs beginning in the second quarter, driven by higher growth and lower risk customer segment with normalized credit performance.

As a result, we believe the first quarter will be our weakest of the year, but profitability and unit. We anticipate adjusted net income margin for the quarter to be approximately breakeven looking.

Looking into 2023 and beyond we remain confident in the trajectory and sustainability of our earnings growth in light of several powerful tailwind.

First we expect.

Accelerating revenue realization related to strong growth in originations in 2022.

Second we anticipate our net income will benefit from a full year of $15 million after tax operating cost efficiency savings.

And third credit trends are continuing to improve reflecting a more normalized macroeconomic backdrop.

Which we believe we will benefit from is our underwriting and targeting initiatives increasingly take hold.

In addition, we believe our balance sheet is well positioned whether market disruptions with multi year committed lines and ample capacity.

We are increasingly focused on exploring off balance sheet strategies that are more capital efficient and increase our borrowings and leverage capacity.

We are very excited about this initiative since we would expect to generate the same financial returns with similar economic risk while simultaneously lowering the amount of loans held on our balance sheet and increasing our capacity to borrow to generate higher growth.

That.

We would now like to turn the call over to the operator for Q&A operator.

Thank you we will now be conducting a question and answer session.

If you would like to ask a question. Please press star one on your telephone keypad.

Confirmation tone will indicate your line is in the question queue.

You May press Star two if you would like to remove your question from the queue.

Participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys.

Okay.

First question comes from David Scharf with JMP Securities.

Hi, Yes, good afternoon, and thanks for taking my questions and.

I guess, Todd you you haven't necessarily gone anywhere all these years, but welcome aboard anyway.

The first earnings call. Thank you.

Oh, you know maybe one one kind of macro question and then a follow up.

It is as we think about consumer demand.

And credit performance I mean, obviously you know that.

The topic of credit normalization has been front and center.

You know for several quarters now among the consumer lenders.

With the eventual participation of all the stimulus and so forth.

But I'm wondering are you seeing any incremental changes in consumer behavior, either on the demand side or on the.

Credit performance side as it relates to.

You know the emergence of steep inflation and.

You know it in.

Are those factored into kind of your underwriting models going forward because obviously, it's been 15 years since we've seen really any inflation in four decades. Since we've seen is at these levels.

Yeah, that's a great question and one that has over the last couple of years through the pandemic.

There has been changing but I think we are starting to get some certainty and I think with you know with the burn off of some of the federal stimulus we're good.

Getting to a more normalized environment, which looks more like 2019, I can I can assure you that the there is demand. The demand is back. We are you know we're working through it but you know as as the CEO of the way I'd think about this is is that's a perfect time to look at credit right when things are going.

Well and the demand is there I'm getting I'm thinking about credit where can we optimize credit and that's why the second half of last year, we optimized our credit model.

To be able to better target borrowers.

And better segment them and then also like stay away from what we deemed more high risk customers listen oxides of the place where we want people to be successful with our products. We want people that are going to improve their financial health. We report all of the payments to the bureaus and we get really.

Awarded whether you know we have an 85 N P. S going the way we get rewarded is when customers are successful in our system and so delinquency is front and center and something that you.

It is not is not going to you know, we're not going to allow it to happen and we're going to get to the bottom of it when we're growing so it's always a top of mind for us.

Got it and that's a great segue, just just to my follow up which.

I wanted to make sure I sort of understood.

Correctly to the commentary about maybe those late 2021 vintages, because you had two consecutive quarters of record origination volumes, but combined with what.

It seems like.

Maybe some.

Credit underperformed.

It is Tuesday has changed with eating channel related or.

FICO band it get a little more color, maybe on who was targeted.

Great question. So I'll just I'll just be straightforward. So the changes were made at the end of last year obviously.

Flow through in the first quarter, but I'll tell you. This we have seen an increase in neo banks. So new banks are time and some of these new age digital bank customers that are coming through and what we did in a combination of channel and in some and some the style of bank that customers are using.

Yeah.

More significant percentage of that population, we tested into some things and frankly, we had mixed results right and what we decided was that.

Those customers were probably not the right fit for us for the long term and they werent going to be successful in our system, which is really to build financial health and so you know we ceased since you sit and you know going forward.

We may revisit, but I think you know right now due to the increased demand and the strong growth and the ability to really be we're the leader and so we're you know we're able to continue to gain market share without having necessarily having to test into a riskier segments.

Great. Thanks for that clarification. Thank you yep.

Next question, Chris Butler with D. A davidson.

Yeah.

Hi, Thanks, good afternoon.

Todd and also welcome aboard in terms of the public Forum.

I'm going to start with credit.

Just real quickly seven you mentioned I think delinquency trends looked encouraging can you give us a little more color. There. So hopefully we get delinquencies until we get the K.

Yeah. So we had as Todd mentioned, we had we had seen some normalization.

Credit and elevated credit losses in the first quarter, what we've seen.

In 'twenty it will be seen recently in the recent vintages based our new underwriting model, we've seen growth with losses kind of coming down and we will report more kind of those stats for Q2, but we see trends going forward into the second quarter third quarter over the fourth quarter and beyond are coming back to kind of a conversion back.

Okay.

Yeah, Okay, and then the add to that.

The early trends in loans are highly correlated to the final vintage numbers and so we have and we have the most of the history. We've been doing this for 10 years. So our data is pretty robust. So that's the great thing about on the forecasting side is when we see trend lines. We can we can identify where things are working pretty quickly. So.

Yeah.

Yeah, the benefit of having short term paper too.

It's a separate question is.

The off balance sheet securitization sounds interesting and compelling you know, what's the where the challenge is why haven't you done it earlier and just the overall health of the credit markets given what's happening in our royalties days.

Yeah, I mean that that ties into that ties into the vision and a little bit of why why now for me coming back you know there was thought that like we have a customer base and we want to provide a suite of products and I think you know, we're a little bit of a different approaches we are re.

Really really good at servicing the installment product and our belief is that our service and our brand resonates across all credit and there are ways that sub 36%, we can be originating and earning service and fee based.

Our income we have an incredible brand to acquire customers. We also are great product market fit and positioning I think there's you know if you will or turned down in the sub 36% space that we could position and income.

Income so it's not people who necessarily qualify for the core installment, but people who kind of falling down in the sub 36% space, where we can start to service them and do more of a fee and servicing based model for the business and then it also provides an incredible turn up opportunity for our <unk>.

Customers, so it fits really well with our story and as far as our tech and infrastructure keeping it as an installment loan is very favorable.

Okay.

The last one.

The most exciting part of this relates to think this buyback and given where the stock is there any reason why you wouldnt take advantage of that from a cash and liquidity perspective, it looks like you've got a pretty good.

Well cost is going to go after the buyback.

Yes, that's the plan there.

The plan is to aggressively defend our share price I'm unprepared.

The Schwartz family, including myself are prepared to defend it and the company will be defending it we believe it's disconnected from reality.

There's others in the peer group that.

Came public yes back mergers that I'm not going to say any specific names, but don't have the financial profile, we have or the brand and the success. We've had operationally that we've been I feel like we have been grouped into it I mean, we really want to differentiate ourselves at this point and get credit for the great work, we're doing the great team and a great brand we have so.

We're gonna be defending our servers and I think it's a great and a greater degree.

Super exciting it's locked down here, thanks, a lot Tom.

Okay.

Next question, Brian Lombardi with Seaport.

Hi, Thanks for taking the question.

I feel like maybe I'm I Miss.

Part of the part of the I guess interest, but I guess welcome back to the Madison side, I want to try and get.

Yeah, maybe a little bit of a a narrative as to why.

Where are we where where we are how long are you committing to be with us.

You know I think I think I'm I'm kind of extrapolate, but I think I'm right. When I can say it sounds like you had.

Our management that wanted to grow maybe got over its skis too much.

You've got skin in the game you want to run this like a business you're rolling off some bad investments and you're going to get that back on track like am I wrong about that and if I'm right about that how long are we stuck.

Yeah. The first I'll say this is an indefinite move I'm here today I am I am energized and passionate about this from when I started this in.

2012.

You know, it's always been the mission of providing access and safe simple terms and in helping people and I'm more driven by that than ever all I'll tell you. This like I was doing other things I you know managing principal Schwartz capital, we have a couple of different business lines under that I had a an honest conversation with first in four.

Most are probably twice and then and then my immediate family and the board and everyone was incredibly supportive of me coming back into into the business and saw my passion and excitement and it wasn't in a temporary way. It's you know, it's it's indefinitely and you know I'm here actually in the Chicago office today.

They had an unbelievable town hall with the team yesterday, and we're we're really connecting again and I feel I feel really good about the situation.

Okay. Thank.

Thank you I guess maybe.

Look I'm looking at the situation that I think like as long as we don't like Kevin will come off we're in good shape, but I'm looking at you know.

The recent past hasnt been as seemingly troubling for a business like this as perhaps the near future and yet this business was challenged and so what it's like.

What what's the like Watson that where the where the kind of reassurance that like okay.

Maybe made some bad loans as we've leaned into some newer areas and we're gonna roll off those and and in this environment of.

You know accelerating inflation, where we feel confident because ex.

Yeah, I mean, that's what it was and it's something that we identified quickly and we are no longer originating at our facilitating a might be happened to bank partners.

And it's you know.

Obviously, I can only say that but I feel really good about the trend lines and the direction and also the volume the new origination volume is coming coming back.

And we're very happy with that to see a more normalized environment.

Is that does that answer your question or I think I think so I mean, it's more of a field type answer, but you see what I'm getting at is that like I feel like the challenges are greater than they were in the near past within your past causes a ripple and you're saying it's it was a a relationship base segment of business that you've stopped.

Yeah, Yeah, I mean, you know we we we have a.

And I'm very confident in our model and our segmentation of customers. It was a choice right and we wanted our job.

By false as defined credit access for people, who are turned down by traditional banks by definition that is.

Some of the the the Neo bank customers set and you know we ran a test and also we tried some new channel partners and we had mixed results right and it didn't align with the mission of the company and the company's mission is clear to provide credit access, but they have to be successful in our system. We repeat we report all payments to the bureaus and.

We provide positive trade lines and we allow people to be successful in and then we build a relationship with them and then try to graduate people right to lower cost of capital. If people if people are too high risk or they're not using our system effectively we were probably not you know it's not the right customer companies fit.

So we determined that and decided to move on.

The discipline in the underwriting is really kind of what we're focusing on and we're not going to be chasing after growth in segments that are not profitable. So we were really looking at unit economics and profile and early stage delinquencies to see what the lifetime loss trends are going to be and we're committed to getting this charge off ratio in line with historical levels.

Thank you.

Your next question comes from Mike Grondahl with Northland capital markets.

Hi, This is Michael on for Mike. Thanks for taking my question. Most of mine have been answered, but maybe if you can just talk a little bit.

The newer products like the salary cap and what the kind of competitive environment looks like today as we sit here.

Yeah, so the newer products.

Theres still theyre still in more of a test mode and product market fit mode. I think like you know there's two ways to go about to go about our business right. There is a way where we can take our customer and surround them with a bunch of products and I think theres a lot of risk and uncertainty from an investment standpoint, and you know.

Our financial performance standpoint, and that you know and I think what I'm coming in and saying is like Hey, we have this.

Unbelievable net promoter score and customer relationship and an Unbilled AR.

Platform that can service. This installment loan there is absolutely with the market base offer approach in the installment category in our current core business, an unbelievable opportunity, we're seeing a huge ROI there that we're going to be focused on and end it better and better services, our customers buy by pricing than with <unk>.

<unk> rates and and.

We're aligned with their goals as a as a as a consumer and allows us to better compete on marketing partner channels and direct mail Theres stuff, we can be doing at sub 36% with the installment product and these are things that can be done in our system that don't require that heavy essentially riskier investment that doesn't have.

Have the proven probability of ROI I think like we can be looking at that I think there's some stuff that's interesting on small business that we're considering it's installment based stuff. So I mean, there's a lot of opportunity with the installment based and I think what we came to the realization is like we're going to we're gonna have we have these products credit card in salaries happen.

We'll continue to test to see if theres fits but I think theres a lot more we can be doing with our current installment product and a lot more potential in high ROI and Roy can look high but it has to have high probability to have success right. So there's two factors. There you have to you have to say hey, that's high ROI, but what is the probability at the end of the tunnel that we actually are.

<unk>.

Got it that's helpful and then just maybe on <unk>.

Timing and size of the investment spend as we look at 2022.

What are your kind of high level thoughts on that.

I just wanted to make sure I understood. The question is it.

Since then what do you want to yeah.

So in terms of the timing of investment spend so we're going to be doing is really weak.

We've looked at our cost structure and we found a lot of efficiencies and we mentioned that in my my script that we found it was end of about 15 million of cost efficiencies, which we will then.

We allocate a portion of that to focus on market based offers and our core business and we're committed to driving margins up through the year.

And making calculated investments in our core product to be able to extrapolate those excess return.

Thanks.

Thank you I will now turn the floor over to management for closing remarks.

So first of all thank you and thank you for those questions.

You know listen I'm I'm I'm back I'm excited it's been great to reconnect with the team the principles that got US here are the same are the same principles that are going to get us.

To the next frontier.

I think right now the stock is completely you know it's a.

Extreme value.

Somebody who you know I'm, obviously biased, but I think that there's a lot of value and maximization here that can happen theres a lot of improvements, we're making operationally we're focused on credit we're focused on the right things I am excited to be back end are just you know.

Excited for the journey. So thank you everybody and more to come.

This concludes today's teleconference. You may disconnect your lines at this time and thank you for your participation.

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