Q1 2022 Century Communities Inc Earnings Call
Greetings and welcome to century communities first quarter 2022 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.
A reminder, this conference is being recorded.
I would now like to turn the conference over to your host.
Scott Dixon.
Thank you and what do you Sir.
Good afternoon. Thank you for joining us today for century communities earnings conference call for the first quarter 2022.
Before the call begins I would like to remind everyone that certain statements made during this call are not based on historical information and may constitute forward looking statements.
These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described or implied in the forward looking statements.
Certain of these risks and uncertainties can be found under the heading risk factors in the company's most recently filed 2021 annual report on Form 10-K .
Supplemented by our other SEC filings.
Our SEC filings are available at Www, SEC Gov and on our website at Www Dot century communities dotcom.
The company undertakes no duty to update any forward looking statements that are made during this call.
Additionally, certain non-GAAP financial measures will be discussed on this conference call.
The company's presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP.
Joe will be available after the call should you have any questions that did not get answered.
The call today are Dale Franciscan Chairman and co Chief Executive Officer, Rob, France, asking President and co Chief Executive Officer, and David Messenger, Chief Financial Officer. Following todays prepared remarks, we will open the line for questions with that I will turn the call over to Dale.
Thank you Scott and good afternoon, everyone.
We're extremely pleased with our results this quarter.
This included the achievement of numerous company records and successes as we continued to experience strong consumer demand throughout the quarter for affordable new homes across our entire 17 state 45 plus market footprint.
Despite the continued headwinds from municipal and utility delays supply chain disruptions and labor shortages, we delivered 2348 homes for $1 billion in revenues with a gross margin of 28, 3%.
On an adjusted gross margin of 29.5%, both all time Company Records.
These home deliveries produced record first quarter pretax income of $189 million.
And our pretax income margin of 18, 6%.
A 560 basis point increase from the prior year quarter.
And our eighth sequential quarter of improvement.
Net income in the first quarter increased 40% to $142 $5 million.
Our $4 in 'twenty and earnings per diluted share.
Both first quarter records.
Okay.
During the quarter, we executed 2944, net new contracts with a number of sales increasing each month as the quarter progressed.
Even as the pace of interest rate increases accelerated.
Our backlog at quarter end consisted of 5247 sold homes valued at $2 $2 billion.
Increases of 28% and 37% respectively.
Company Records.
Our spec based operating strategy enabled us to produce another quarter of strong results with increased gross and pre tax income margins.
Even as we dealt with higher material and labor costs.
Despite these challenges we increased EBITDA by 34% to a first quarter record $204 million.
We also increased our investment in homes under construction.
Land under development.
And our quarterly dividend, while repurchasing more than a million shares of our common stock.
Reducing our outstanding share count to the lowest levels since the third quarter of 2019.
We are continuing to see delays in land development and home starts due to the various factors facing the industry.
All homes that we offer for sale are generally being sold before the hole gets completed as the potential buyer pool still exceeds the supply of available homes.
As a spec builder, we're accustomed to having completed homes for immediate sale and move in.
At quarter end, we only had 17 completed homes across our 17 states that could be sold for an immediate movement.
The elevated interest rate environment has not eliminated the demand drivers propelling the housing market over the last several years, including the ongoing shortage of both new and resale homes available for purchase.
Ziv millennials the largest generational group in the country, reaching the prime age for new household formation.
And the increased desire for homeownership brought about by the pandemic.
We believe the most significant impact of higher interest rates will not be on our ability to sell homes, but on our ability to raise prices as much or as frequently as we have done in the recent past.
As the housing market continues to normalize from the unsustainable pricing power that has existed for the last year or so.
We expect to be back to the typical homebuilding scenario of raising prices in some subdivisions and offering certain incentives and others.
We have a seasoned management team and strong operational fundamentals and are confident in our abilities to make this transition.
Our record setting first quarter results would not have been possible without the perseverance ingenuity and dedication of our talented teams across the country.
They continue to solve problems daily with the goal of providing our customers a home for every dream.
And we want to thank them for their contributions.
I'll now turn the call over to Rob to discuss our business in more detail.
Thank you Dale and good afternoon, everyone.
Our spec base land light operating model focused on delivering affordably priced homes continued to produce strong results, allowing us to strategically invest in land and homes under construction grow our business and increase stockholder value.
Throughout the first quarter, we continued to raise prices across all of centuries markets.
Even with this price appreciation, 80% of our home deliveries were priced below FHA limits, demonstrating our strong positioning within the affordable new home category.
Our homebuyer continues to have a healthy financial profile with average FICO scores of approximately 740 and 710 with a DTI of 39% based on loans originated in the first quarter, respectively for our century community.
<unk> and century complete homebuyers.
These scores and ratios are consistent with our buyer profiles for the past two years and continues to reinforce the financial stability of our buyer pool.
Our cancellation rate has remained low at.
At approximately 12% and we have not experienced a rise in contract terminations as a result of increased interest rates.
As we began doing last year, our mortgage company is qualifying buyers at a rate that is 50 basis points higher than the current interest rate.
On an ongoing basis, we also evaluate and stress test all homes in our backlog without a rate lock at interest rates up to 6%.
During the quarter, we strategically invested in our land pipeline to expand our local market share. These investments have grown our total land supply to over 85000 lots with approximately 60% controlled consistent with prior quarters.
One market, we significantly increased our holdings was Florida.
2021 we announced our entrance into Florida with the communities brand starting with Jacksonville at the beginning of the year and Tampa and Orlando near year end.
Our century complete brand has operated throughout Florida for numerous years. However, this state represented a major market, where the communities brand wasn't previously present.
The past couple of quarters with activity ramping up in Q1.
<unk> seen our leadership team hiring personnel.
Tracking land and beginning home construction.
We will be offering our first homes for sale under the communities brand in the second quarter with deliveries expected in the fourth quarter.
Okay.
The homebuilding industry continues to be challenged by municipal and utility delays supply chain issues and trade shortages.
We did not see a catalyst or comprehensive solution in 2022 to these issues, but are affordably priced spec based model with no or limited options national footprint and purchasing capabilities have helped us mitigate some of the impact.
Our local and national teams have also become more adept and identifying potential roadblocks and implementing solutions earlier with the experience gained over the last two years.
The upward pressure and material labor and fuel cost hasn't abated with the exception of lumber.
With lower costs are beginning to positively impact our new home starts.
97% of our first quarter home deliveries were spec builds enabling us to better forecast construction costs before establishing our homes price.
We continued to benefit from the strategic operational initiatives that have been implemented over the last several years and believe our business model is well suited to address the headwinds related to home construction and rising interest rates.
For example in the first quarter, we achieved adjusted gross margins of 29, 5%, our seventh sequential quarter of improvement.
A pretax income margin of 18, 6%, our eighth sequential quarter of improvement.
And our return on equity of 33.7% or 12 sequential quarter of improvement All company Records.
We believe we are well positioned to continue generating strong financial and operational results and we're excited for what the future holds for our company and our stockholders.
I'll now turn the call over to Dave to discuss our financial results in more detail.
Thank you Rob.
During the first quarter of 2022, net income increased 40% to a first quarter record $142 $5 million or $4 20 per diluted share compared to $101 7 million or $3 per diluted share in the prior year quarter.
Pre tax income was $188 $8 million, an increase of 44% and a first quarter record.
Home sales revenues for the first quarter grew to $988 4 million compared to $959 3 million in the prior year quarter.
This improvement in revenues was propelled by 2000, and 348 homes being delivered with a 23% increase in average sales price to $421000.
In the first quarter net new contracts across our regions were 2944.
We improved our quarter end backlog of 28% to 5247 homes valued at $2 $2 billion, a 37% increase.
In the first quarter adjusted homebuilding gross margin percentage was 29, 5% compared to 23, 1% in the prior year quarter.
Homebuilding gross margin percentage improved to 28, 3% compared to 21, 1% for the same period last year.
This is the seventh quarter of sequential gross margin improvements.
SG&A as a percent of home sales revenue was 10, 3% in the first quarter compared to nine 6% in the prior year. The result of planning new community openings entrance into new markets and overall wage increases that are occurring across the industry.
Our pretax income margin was 18, 6% the highest in our history and the eighth sequential quarter of improvement.
During the first quarter financial services generated $26 3 million in revenues compared to $33 6 million in the prior year quarter.
The business captured 77% of the closings and contributed $11 2 million in pre tax income compared to $15 3 million in the prior year quarter.
The decrease in pretax income compared to the prior year period was due to fewer loan originations compared to the prior year and selling loans into the secondary markets at normalized margins this year compared to 2021.
We ended the quarter with a strong financial position, including $1 $8 billion in stockholders equity a 33% year over year increase.
$1 $1 billion in total liquidity.
$254 million in cash and no borrowings outstanding on our $800 million unsecured revolving credit facility that does not mature until April 2026.
Yeah.
During the quarter, we invested $62 $4 million in repurchasing 1 million 13387 shares of our common stock, leaving approximately two 8 million shares available for repurchase under our current authorization. We also increased our quarterly cash dividend by 33%.
To <unk> 20 per share.
Our homebuilding debt to capital ratio was 35, 6% at quarter end compared to 39, 5% in the prior year.
Our net homebuilding debt to net capital ratio increased slightly from year end to 29, 3% primarily due to increased investments in inventory.
In the fourth quarter, our tax rate was 24, 5% compared to 22, 4% last year due to the federal energy tax credits not having been renewed for 2022.
We're extremely pleased with our strong performance in the first quarter of 2022, which has resulted in us achieving an ROE of 33, 7% a new record for the company and our 12 month sequential sequential quarter of improvement.
Considering our first quarter results backlog homes under construction and our current development pipeline schedules, we are reaffirming our 2022 guidance of.
Deliveries in the range of 11500 to 12500 homes.
Home sales revenues to be in the range of $4 3 billion to $4 9 billion and ending selling community count to be in the range of 240 to 250 selling communities.
With a clear majority of our new community openings occurring in the third and fourth quarters.
With that I'll open the line for questions operator.
Thank you.
At this time, we will be conducting a question and answer session.
If you would like to ask a question. Please press star one on your telephone keypad.
A confirmation tone will indicate your line is in the question queue you.
You May press Star two if you would 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.
The first question comes from the line of deep our blog, one with Wells Fargo.
Please go ahead.
Thanks, very much for taking my call good evening.
Just a.
Dave.
Can you.
Talk to.
Some of the pricing trends.
The orders you didn't provide I know you don't provide column of numbers, there, but any color on the momentum.
Are you witnessing any pushback, maybe in your tertiary market or even.
Even in the century complete brand.
And then also curious if you're taking any defensive measures already I mean, you mentioned qualifying buyers at 50 bps higher in preparation for the higher rate environment et cetera.
Some of your peers.
Mentioned are doing longer term rate locks.
As well so just curious how is pricing trending any push backs are you taking a defensive measures at this time.
Sure Hi, D. But this is dale.
No we've really seen no pushback on pricing as we said in our prepared remarks, each month during the quarter the sales actually increased and throughout the quarter. We continued to raise pricing and we have not seen any pushback from that at some point.
That's that's going to stop.
You also as we said in the prepared remarks, what we what we really believe is that as the interest rates continue to increase that that's going to impact our ability to raise prices.
And at some point as the year progresses, we expect to see incentives come back into it back into the market.
But at this point everything remains.
Very positive.
With regard to.
<unk> on rate locks were doing the same thing as well. So it's really a combination in terms of when the house is going to complete.
Most of the homes when we look at what we have under construction other than our homes that we havent backlog or really longer term completions. The number of specs that we have completing in the second quarter are somewhat limited because they have already been sold.
Well, thanks for the color of that.
Just switching gears to closing volumes in the quarter.
No one's consensus it's a mess, but wanted to see how you attack wishes your expectations internally.
Also trying to get a perspective on that second half weighted closings and community Count guide in light of supply chain constrains. It doesn't look like you're assuming supply chain gets better.
But how do you catch up you know if if theres been a miss in Q1 and the supply chain is not getting any easier.
Hey, Deepa. This is David I would say that in terms of our deliveries for the first quarter. They were on track with what we were expecting internally. We we look at this and based on what we're seeing from a construction scheduling standpoint.
And what we're seeing in the field, we're pleased with what we were able to deliver in the first quarter as I look at the second quarter and we're trying to figure out what are we what is our cadence going to be and then the third and fourth quarter second quarter.
Robbie going to experience a backlog conversion that's similar to what we had in the first quarter of last year. So you know somewhere between somewhere between that 50%, 60% backlog conversion is where I'm going to be coming in in the second quarter, and then Q3 and Q4 I've got 5000 plus homes in backlog today, a lot of those are going to be closing here in Q3 and Q4.
For we've got new communities opening up later in the year, we have a variety of sales going on and so while it may seem like it's back end loaded its fairly consistent with what our Q4 call was saying that you know the first half of the year on new communities was going to be a little bit static and given that we had strong sales in the first.
We closed out of a bunch of communities that we hadn't planned on closing out of that early and so we'll deliver those homes later and then their homes at the new communities that were looking to open we will continue to be opened later on during the year.
Got it.
If I can squeeze one more in can.
Can you talk to your as Jenny outlooks as well for the full year, I mean, Q1, SG&A again slightly higher than we would've expected.
I'm just kind of comment you know, where we should expect it to land.
The full year 2022 and you.
If it's higher what's what are some of the moving parts, that's driving that hey, a jetty higher thanks very much.
No problem, yeah regarding regarding SG&A I think that you know if you're looking at it on a percentage basis.
Yes, it's higher compared to other quarters that we've had but on a dollar basis, our fixed cost in Q1 were flat with Q4 and so from a volume perspective, we feel good about where SG&A is and then given what our revenue and volume outlook is for the back half of this year for the next three quarters, we would still expect that our.
Our full year SG&A as a percent of renters.
Comes in at or better than what our 2021 was which was nine 7%. So I think you'll see some <unk>.
Steady improvement as the year goes and the volumes return.
Thanks, very much great quarter I'll pass it on.
Thanks Deepa.
Thank you.
The next question comes from the line of Alex Rigel with B Riley. Please go ahead.
Thanks, Our first question is two parts.
Gross margins were fantastic and a.
Gross margins over the past few years have increased sequentially from the first quarter print.
Gil you mentioned in your canned remarks that you expect to be back to more normalcy, where some communities our pricing power and others require some use of incentives. So how should we think about that comment as it relates to margin implications over the next year or so.
Well when we look at our backlog our backlog is consistent with what we've experienced.
As we go forward, it's it really is market conditions and.
Just like we when we had the opportunity to raise prices we raised them.
Frequently and and aggressively and we're able to exceed what our input costs increases were.
To the extent, we can continue to do that we're planning on doing it when and if the market gets to a point, where we can't do it and we have to add incentives that will do that so looking forward. It's a it's a little hard to have a crystal ball its really going to be.
With the market will provide is what we're going to make sure that our business lives with.
That's helpful. And then the next question can you just address sort of the view that some might have that higher rates, possibly impact the first time buyer category. The most.
And how that job.
Would reflect on your business.
You know, we don't really see it that way in and we haven't seen a difference.
Both between our brands and even within the century communities brand itself. I mean, there's there are some quite a spread in terms of ASP between the various subdivisions and we really haven't seen a difference in how the the lower priced communities have performed versus the higher.
Price communities in our portfolio.
We always look at it that theres, a certain amount of elasticity involved in as rates go up and someone can't afford as much house well. They they also have the opportunity to buy a less expensive house and and that's really where we offer most of our products. So that's not something that that when we look at it we think that's a.
Big risk to our business.
That's helpful. Thank you very much.
Thank you. The next question comes from the line of.
Alan Ratner with Zelman and associates. Please go ahead.
Hey, guys. Good afternoon, congrats on the strong results and thanks for all the color.
First question apologies, if I missed it but I'm curious you know just thinking about April here and recognizing you just kind of commented that you haven't seen any discernible differences across your price points. What are you seeing in terms of traffic wait list things like that in any kind of forward looking indicators that you could point to that would suggest things you know on the margin might be.
<unk> just a bit I think we've heard a little bit of chatter about that from others, but I'm curious if you're seeing that in your footprint and if so any particular markets or price points stand out.
Yeah.
Yeah, Alan this is Dale.
We have seen that there's been there's been a little less traffic, but the amount of traffic that we are getting in and the amount of demand that we're seeing so far exceeds the supply of homes that we have available.
I wouldn't say, there's any particular markets or price points, that's that's a different.
And in terms of what we're seeing in terms of interest level, but you know I.
Yeah, Yeah, it's something that historically, we always see when you have interest rates go up you get you really get to it.
Two actions from buyers it pulls some buyers off the fence because they they want to go ahead and buy and then the other thing. It does is it keeps some people on the fence is they have to digest it and B you know get to a point, where they say, okay, they're comfortable with it really in a lot of cases.
Our.
Our buyer is really making a choice for to purchase much of our product on are they going to continue to rent or are they going to purchase a home and rental rates certainly aren't softening. So when you look at.
That that tradeoff of continuing rent or being able to lock in on a longer term basis, which our housing costs are it's still very attractive even with these increased rights to buy a home.
And the.
I just had the question in terms of are we concerned about the higher rates impacting us.
Our lower price product and it really in certain ways. It goes it goes the other direction as well because if you have a lot of move up homes that takes someone that is choosing to sell their home. Many times you have a low interest rate and having to step up and buy another one so we really look at it that we are.
<unk> positioned in the right in the right buyer price point for what's going on right now.
Great No I appreciate the the thoughts there and you brought up rentals and I'm curious I forget kind of where you've been the last few quarters, but in terms of interest from single family rental and sales there what is that running at right now and given the move in rates has there been any contemplation as far as either increasing that exposure.
Sure.
Anything anything going on there that that's been an incremental change.
No. That's we haven't seen any any reduction of demand.
From the the four red operators, it's really a small part of our business, we don't cord that.
We do a certain amount of it but it's a it's really a very small part of our business.
Okay I appreciate it guys. Thanks a lot.
Thank you. Thank you.
Thank you <unk>.
Next question comes from the line of <unk>.
Jay Mccanless with Wedbush.
Please go ahead.
Hey, good afternoon, guys. Thanks for taking my questions.
First question I had and it's actually kind of a two parter.
If I think about the complete brand versus the legacy communities brand.
Are you, having more issues supply chain and freight lane wise getting those century complete homes built just because these homes are out typically further outside the normal metro than say your legacy brand.
And then also the second part of this question is are you seeing the same amount of home price appreciation in these smaller metros like like Youre seeing in the more normal markets, where the public builders operate.
J. The first part of your question is yes, there are more supply chain challenges on the century complete side just given the fact that in most cases, they're smaller subdivisions as well as.
They they maybe in a little further outside the Metro area. The trade off is that the that the houses are simpler to build.
There are smaller so as a result.
When you when you look at it even though there are more supply chain challenges there.
Faster homes to build just because of the size and complexity of the whole.
In terms of our ability to push price no we've not seen any difference.
At all.
And then wanted to ask you.
Understanding that you're maintaining the revenue and the unit closing guidance.
Hum.
It seems with 421000 a S. P. This quarter that has some new newer product comes on in the back half of the year. It looks like asps. He's gonna have to tick down pretty meaningfully from this for 'twenty. One now maybe could you all talk about whether it's that new Florida product you talked about on the complete side or.
Increased opening some of the community.
The century complete brand just maybe walk us through how the E. S. P. You think is going to progress this year.
Yeah, Hey, Jay it's David it's definitely it's definitely a mix issue as well.
You look at the ASP, if you look at our backlog you've got 45, 46% of our backlog is sitting at century complete with an ASP of $2 52, so as that comes through our closings.
He may have more of an outsized pace that that will be dropping our delivered ASP and then yes, as we're bringing on new communities there'll be it a variety of price points, whether it's in and the Florida markets Louisville markets of Central complete markets. Our other central communities openings. We are always trying to bring them in at kind of that are affordable entry level.
Rice component, but the big the biggest shift is really a mix component that you can see in our backlog along with 40% to 45% plus sitting at 252000.
Okay.
And then I guess, what what are the implications maybe for the second quarter and third quarter gross margin, because I think Dale and Rob said earlier that what you have in backlog now is probably pretty similar gross margin wise, but as you open a lot of that new product in the back half of the year, what what impact might that have on gross margin.
Yeah, I think it's a little bit difficult as Dan was saying to have visibility into what are whats going to occur in the back half of the year, but as I look at backlog backlog has been experiencing margins that have been similar to what we've been posting.
Past several quarters.
And then we'll look and see if there's any additional incentives or costs that need to be kicked into gear.
Get homes closed in the appropriate quarter and as we want them are scheduled to be closed and then we'll be looking at margins and what the what the market is dictating.
As we get into that third and fourth quarter, and seeing where rates are where where the buyers are what is it doing.
And then how we compete accordingly in order to.
<unk> closed the homes and so as we look at it a little bit difficult to give you any kind of color you know into that third quarter.
Quarter, but that's kind of where we see the market today.
Okay.
And then last one and I'll turn it over I know you guys said you were you were.
Underwriting to 50 basis points higher.
On new mortgage apps, but have you looked at the backlog and if we get to 6% or.
Or 7% mortgage rate, what what percentage of the current backlog might not be able to close.
Yeah. This is Dave we have been stress testing as Dale mentioned, we restart we've got a fairly significant amount of our backlog for the second quarter here is already rate locked.
For all loans all potential loans that are not rate locked we are stress testing up to 6% and working with the buyer to see if they need to be doing anything additional in order to make sure theyre going to close the home.
And then we're continually doing a variety of other stress test just to make sure that ratio has gone out of whack.
I mean, whatever else may be going on with the buyer, we're making sure that those homes are closing and we've got a plan for them.
Okay, Great I appreciate you taking my questions.
Thanks Jay.
Thank you.
Again, if you would like to ask a question. Please press star one on your telephone keypad.
Next question comes from the line of Alex Barron with housing research Spencer.
Please go ahead.
Thanks, gentlemen, and great job on the quarter.
I wanted to say.
Great.
I wanted to see if you could address the topic of share buybacks. It seems like you guys are stepped up here.
This quarter is something that I think you hadn't done this.
Same degree before so I'm just curious about your thoughts going forward given where the stock is trading that's my first question.
Yeah, Hey, Alex it's Dave I would say that we've been receiving a lot of questions about our capital deployment.
And obviously during the quarter first we increased our dividend, 33% up to 20 cents a share and then secondly, we did we were active in the market and we.
Bought back just over 1 million shares at a north of $62 million.
And if the market continues to discount the stock we view it as a very attractive option and we'll evaluate it going forward.
Yes. It does right now I mean, it seems like youre going to be trading below book value, which would be pretty pretty accretive.
My second question has to do with Bill times.
What have you guys experienced in terms of.
Bill times, this quarter and along with that at what point in the process are you guys kind of.
Selling the selling the majority of your homes in and at what point are the buyers able to lock in the rates or are you assisting them with that or is that something that they're doing.
So in terms of cycle time, Alex in terms of cycle times from the fourth quarter to the first quarter they've been up as much as 10 days on our houses and so it has not gotten better there are some green shoots right now where it appears that some things are getting a little better.
But again, we're not forecasting that for the balance of this year for right now.
As it relates to when we.
Put a home up for sale, we're going to make sure we have our cost locked in.
That's the luxury of our spec base model and not put them on the market too soon so that we know for sure what our margins are and where we're at and tenants and also what's really important is not just the margins, but that we can deliver a home.
On the timeframe that our buyers looking for it so that we have that consistency as well and so with that we will assist them in rate locks.
And it's on a case by case basis of course, but that's something we will do.
Okay, and if I could ask one one last one just curious you know how much.
I guess confidence or visibility you guys have into how deep the buyer pool is in other words do you have.
Wait list for what's the way that U S S.
Hi versus demand too to be able to assess whether you should increase prices and so forth.
You know, it's it's really Alex a matter of what we have for sale and what our sales paces and we're continuing to be able to sell our homes.
Before Theyre complete.
And if if we start seeing that that changes in the market then we'll adjust how we how we market sell and price our homes, but we have not reached that point yet.
Okay, great well best of luck for the rest of the year. Thank you.
Thanks, Alex Thanks.
Yeah.
Thank you.
Ladies and gentlemen, we have reached the end of question and answer session and I would like to turn the call back to Dale Franciscan for closing remarks.
Thank you operator, I'd like to take this opportunity to once again, thank all of our team members for their incredible work and continued dedication to our valued homebuyers.
I'd also like to thank our investors for their time today.
We appreciate your continued support and investment and look forward to speaking with you again next quarter.
Thank you. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.
Yeah.