Q1 2022 Owl Rock Capital Corp Earnings Call
We are also pleased with how well our portfolio is performing despite recent macroeconomic challenges.
From the effects of the pandemic in 2022.
So the current impact of supply chain disruptions and rising costs. The performance of our borrowers has been resilient and while we continue to monitor the portfolio closely we expect it to continue to perform well.
The portfolio is well diversified and our internal ratings remained largely consistent.
We continue to have only one company on non accrual status.
Presenting <unk>, 1% of the portfolio based on fair value.
One of the lowest levels in the BDC sector.
And our annualized loss ratio remains very low at roughly 15 basis points.
We believe this performance reflects the quality and long term orientation of our investment process.
Since inception, we have invested in non cyclical service oriented businesses with enduring revenue models.
These businesses have historically been less impacted by issues such as supply chain disruption.
<unk> performed well in various market cycles.
As of quarter end more than half of our portfolio companies were in service oriented sectors, such as software insurance financial services and healthcare.
Where customer demand sales and margins have remained strong.
While we certainly have select credits experiencing some cost pressures due to labor freight or commodity prices. Many of our borrowers are leaders in their markets, which often allows them to past many of these costs onto their end customers through price increases.
While they may experience, a temporary lag by and large we expect most of our companies to be able to manage through the current environment well.
We are also focused on how a rising rate environment will impact our borrowers as we enter a fed tightening cycle.
The large majority of our borrowers are entering this environment from a position of strength with.
With an average interest coverage ratio of two seven times.
We also take comfort that our average loan to value in the portfolio is approximately 45%.
Giving us ample cushion in a downside scenario.
We are closely monitoring the impact of increased borrowing costs on our borrowers, but we expect they will be able to maintain comfortable cushions, even as rates increased as expected.
We believe the tailwind of the strong U S economy will continue to support the businesses in our portfolio and based on our discussions with borrowers they are well prepared to adapt quickly and respond to evolving market conditions.
With that I will turn it over to Jonathan to discuss our financial results in more detail.
Thank you Craig.
We ended the first quarter with total portfolio investments of $12 8 billion outstanding.
Outstanding debt of $7 2 billion and total net assets of $5 9 billion.
Our NAV per share was $14 88.
Down modestly from the fourth quarter, reflecting a decline in the fair value of our portfolio due to the impact of wider credit spreads in the market.
With the portfolio now fully invested we will continue to redeploy capital from repayments into new investments.
In the first quarter, we had $375 million in repayments and roughly $350 million and new funded investments.
As a result, net leverage was largely unchanged at $1, one seven times debt to equity.
<unk> comfortably within our target range.
We also ended the first quarter with liquidity of $1 7 billion.
Turning to the income statement.
Our net investment income was 31 per share in line with our previously declared first quarter dividend.
For the second quarter of 2022, our board has again declared a <unk> 31 per share dividend payable on August 15 to stockholders of record on June 30.
Our total investment income for the quarter was $264 million versus $282 million in the fourth quarter.
Selecting lower fee related income.
Total expenses at $141 million also declined versus the previous quarter.
Due to lower interest expense and incentive fees.
Turning to our balance sheet we.
We have been focused on the transition from LIBOR to sofa on both our assets and liabilities.
On the asset side, most new investments are being priced on a <unk> basis, and we expect to transition existing assets and normal course discussions until June of 2023.
On the liability side, all new facilities are being priced on a sofa basis, and we are making good progress transitioning our existing facilities as well.
I'd also like to spend a minute on how we expect rate increases to impact <unk>.
We expect to benefit materially from rising rates in the second half of the year.
As I discussed last quarter once rates rise through the floors on the asset side and are reflected in our borrowers interest rate elections, we expect investment income to increase meaningfully.
LIBOR started the year at 21 basis points and increased roughly 80 basis points over the course of the first quarter.
The majority of our borrowers have 100 basis points floors. So this increase did not benefit our interest income in the first quarter.
The majority of our borrowers also reset their borrowing rate quarterly at the end of each calendar quarter.
Further as LIBOR was at roughly 100 basis points at the beginning of April we.
We expect the benefit to interest income to be limited in the second quarter.
As LIBOR has continued to rise in the second quarter and based on our observation of the forward curve we.
We do expect rising rates to benefit interest income in a more material fashion.
Borrowing rates reset for the third quarter.
On the right side of our balance sheet, taking into account our equity and our fixed rate liabilities only 29% of our capital will be negatively exposed to rising rates.
Our floating rate liabilities typically has zero percent floors. Therefore, these liabilities will have higher interest expense in the second quarter.
To summarize given almost all of our assets are floating and only 29% of our capital structure is floating we expect rising rates may have a slightly negative impact in the second quarter.
Will result in a meaningful net positive impact on NII, starting in the second half of 2022.
For example, all else equal 100 basis point rate increase would generate approximately four cents per share and quarterly NII. After considering the impact of income based fees.
That I will turn it back to Craig for closing comments.
Thanks, Jonathan <unk>.
To close I would like to provide some commentary on our positioning and current outlook.
We're pleased with how <unk> is positioned for the balance of 2022.
While we expect repayment activity to remain muted in the second quarter, we believe a combination of rising rates and unexpected increase from repayments will be very beneficial in the second half of the year.
We feel we have constructed a portfolio built to withstand periods of economic challenges like those we're experiencing today.
The portfolio is well diversified by geography sector and issuer.
Our largest investment representing just 3% of the portfolio's total fair value.
In addition, the vast majority of our investments are supported by meaningful equity cushions as evidenced by conservative ltvs across our portfolio.
Most of our borrowers are U S based which generally insulates them from global macroeconomic pressures.
Economy is now larger than pre pandemic levels consumer spending remains strong and the unemployment rate in the U S is near record lows.
These trends are reflected in the performance of our borrowers which continue to see EBITDA growth.
We also benefit from the scale of our borrowers with a weighted average EBITDA of $145 million across the portfolio.
Their size and market, leading positions often allow them to pass on most cost increases from inflation and wage pressure to their customers, which helps our borrowers to maintain margins and profitability.
Yeah.
Private equity firms have roughly one trillion dollars in dry powder available to deploy an all time high.
Increased volatility in the public markets is prompting large sponsor back take privates.
With high quality companies, particularly in the software sector, where we have significant expertise.
We are seeing an acceleration of larger deals getting executed in the private market instead of the public markets, which plays directly to our strengths.
Today, our dedicated direct lending platform has $45 billion in assets under management and a team of over 90 investment professionals.
We believe that as a result of this scale, we remain a lender of choice for sponsors and a trusted financing partner, especially on their largest transactions.
Despite the seasonally slow quarter, we reviewed more than 300 transactions across the platform in Q1.
An increase of approximately 7% compared to a year ago.
The owl rock platform originated a total of roughly $5 billion of investments 3 billion more than this time last year.
We also saw a notable increase in the number of large unitranche transactions in the quarter, we sourced over 20 transactions over $1 billion in size.
We have five times the number we saw in the first quarter of last year.
We committed to almost half of these opportunities and believe they represent a very attractive combination of credit quality economics and structure.
All rock has already been publicly named as a lender on several of these deals, including the buyouts of Ana plan and Sailpoint and the acquisition of data like to sale.
To conclude we recognize the macro environment is changing.
Pleased to be entering this environment from a position of strength.
We have intentionally designed our portfolio to generate healthy returns through the entire market cycle.
We also believe we are well positioned to capitalize on the trends benefiting direct lenders many of which are accelerating because of the volatility of the market is experiencing.
We are excited about the opportunities we expect this market to generate and look forward to leveraging our competitive advantages in this environment for our shareholders.
Thank you all for joining us today operator, please open the line for questions.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad, we'll pause for just a moment to compile the Q&A roster.
And your first question comes from the line of Mickey Schlein from Ladenburg. Your line is open.
Yes, good morning, everyone hope you're well.
Craig I want to ask you about your outlook for spreads were in an environment, where short term rates.
Going up very sharply and I'm curious when you think about the supply demand balance or imbalance in the private lending market, whether you think lenders will keep that or are they going to them.
Or will we see spreads come down in order to help close some deals.
Yes.
Sure. Thanks Mickey.
There's obviously a lot of factors that go into spread.
Competition amongst lenders supplier deals as you reference another very important factor is the health of the syndicated markets, particularly where we play in the upper middle market deals sponsors are often comparing direct lending solutions versus what they can get in the syndicated markets.
Right now the syndicated markets are experiencing a period of disruption on the high yield market below market and as a consequence in periods like that banks tend to pull back from their underwriting.
And so the direct lending solutions look more attractive and that's what we're experiencing now.
So I think that it will be a attractive environment for spreads I don't see spreads contracting I'm hopeful they will widen.
But I don't think I don't think that they will contract.
Because in a period of volatility in the public markets, particularly with larger deals coming into the direct lending market. We think that's the time to push for a premium on spreads.
Now we have to compete for attractive deals.
But my sense is other lenders right now would feel that somewhere away.
So I'm hopeful that spreads will widen and I don't think that will contract.
Yes.
Craig one follow up question if I can.
Given your experience in the credit markets and considering that defaults are extremely low across the table. They can really only go up from this point, but can you give us some sense of where you think defaults could climb in the course of the next couple of years.
Sitting where we are in the economic cycle.
Okay.
We've had a really exceptional performance in our portfolio.
With with respect to default essentially.
Had two in our history and across our platform. We have had a five basis point loss rate in OCC, It's a 15 basis point loss rate.
So while we can't underwrite to perfection.
Our expectation is that we're going to continue to have extremely low default rates.
Measured in the low <unk>.
Low single digits.
Across the leveraged finance space I think that number will be higher, but I think that it's going to be.
Sector specific.
Do you think that we are going how many or are concerned about a cycle over the next two or three years, given what's going on with rates and if you believe that there's going to be a cycle.
Then defaults will go up as you as you are pointing out, but I would expect those defaults to be concentrated in the portions of the economy that are most cyclical.
Okay.
We can all we can all.
Easily.
Predict.
Homebuilding in metals and chemicals.
Energy. These are the classic cyclical sectors I mean, those are sectors that we have little to no participation. So I expect our default rates to remain extremely low.
And the overall leveraged finance space.
If defaults climb to mid single digits that wouldn't surprise me in the course of a cycle, but there'll be higher in certain sectors.
Yes, I understand.
For me. This morning, Thank you for your time.
Thanks Mickey.
Your next question comes from the line of Robert Dodd from Raymond James Your line is open.
Hi, guys.
On the.
The unit tranche that you mentioned in your prepared remarks.
<unk> committed to half of the 20.
A $20 billion plus.
Unitranche deals I mean can you give us any color on the three that you named a software deals with Kevin revenue deals.
Can you give us any color on.
How much of your <unk>.
Incoming pipeline and potentially the fundings are going to be those type of deals over the near.
The near term and where youre comfortable taking that.
Underwriting style as a percentage of the portfolio.
Sure not every software deal as a recurring revenue deal. So you can't you can't complete those two things.
The.
A number of them are but just because you see a sign up a software deal that.
This should not assume for sure that it's a recurring revenue deal and as you as you probably are aware when we underwrite recurring revenue deals they start out with a recurring revenue covenant, which is a covenant that measures revenue, which we think is a great creditor protection, but then we design them too.
Two to become EBITDA based covenants over time typically two to three years. So.
When we underwrite a deal as a recurring revenue deal two or three years later it flips into an EBITDA covenant. So this isn't a static concept.
Two the two if you are asking me how much recurring revenue deals where would we expect to have in the portfolio.
Today, it's probably running close to 10% give or take.
So it's a relatively small percentage of the portfolio. It's a portion of our software loans.
Or the recurring revenue deals. We continue to think are amongst the most attractive loans that we see in the marketplace. They have the lowest loan to value.
Have great creditor protections in the form of covenant.
Have.
Why the wider spreads and they are fundamentally backing companies with significant growth and very predictable growth.
Two very high contractual renewal rates, so we like them and they're for companies that we think are.
Are appropriate we will continue to do them, but there's there's just only a limited set of opportunities. So we're very pleased with this increase in recurring revenue deals for for high quality companies, but we are software, although our biggest sector is running 12 13 point.
More than 80% of the portfolio.
It's a relatively modest part of the overall portfolio.
I appreciate that thank you and then one more if I can we can spot you're committed.
Oh well committed.
Committed to put in an additional pretty good slug.
Capital I mean can you tell us any color on how the.
The implication being with demand in that.
Segments are pretty strong as well.
Any any particular driver there or item and obviously the dividend was up pretty nicely from them as well I mean, how is that outlook for potentially even more capital or weak spot.
Sure.
Pleased with the growth and success at Wink spire. This has been an effort that we.
Incubated at OCC and the team's done a terrific job in building, a really exceptional asset based lending business.
We had hoped when we started it that we could grow it successfully and it's really gratifying to be at the point now where it is.
It's not only generating very attractive returns, but giving us the opportunity for to put additional capital in so we will continue to.
To do that and we wouldn't be.
Be very delighted if wings spire team is seeing.
<unk> to grow we told them that we would like to support that growth with additional capital.
So today, we have committed $350 million funded about $275 million of that.
We'd be very comfortable continuing to increase that and having wings fire b.
Or just investment OCC, if thats, where it nets out and grow.
But obviously with discipline around the investment opportunities. So if we could put another $150 million to $90 million of wings fire over the next year or so we'd be delighted to do that and that would generate.
Another penny or so.
<unk>.
NII.
The business I think that in this environment. This will be a good environment for wings fire in terms of if there is financing conditions are a little more difficult.
Theres a little more.
So the economic conditions are a little trickier.
The middle market that we inspire serves that will push borrowers to ABL type solutions. So.
We're very pleased we did take the take a more significant dividend outer wing spar as you noted.
We took our first dividend out in the fourth quarter, which is really modest one.
This one was more sizable I don't think you should straight line. This quarter's dividend its a variable dividend based on wings fire performance and so this quarter is probably a little higher than I would expect that over the course of the year, but we think wink spire can generate a high twenty's now $30 million of dividends over the course of the year to OCC and if we can grow.
That through additional equity we are pretty pleased about that.
I appreciate it thank you.
Thanks Robert.
Your next question comes from the line of Finian O'shea from Wells Fargo Securities. Your line is open.
Yeah.
Hey, everyone. Good morning.
Looking to see if you can add a little color on the market valuation impacts across the.
The portfolio just looking.
You have pretty consistent new origination yields stable credit.
And historically liquid marks haven't really had an impact. This is do you agree with that so has anything changed in the devaluation regime or is there.
Another element that I'm missing, perhaps that that just what led you to take more conservative marks at this time.
Paul I'll start with Jonathan should jump in no change to the evaluation process, we have been doing since and since inception.
For folks less familiar.
Since the beginning we have worked with.
An outside valuation firm to come in and value every name in the portfolio every quarter.
<unk> gets approved by the board of Directors, obviously, the management team gives the valuation firm a lot of input and communicates with them regularly but we think our processes are best in class process for shareholders by having that firm come in that you did the same exact process. This year that they always have done.
We have it has always been the case every quarter since inception that market spreads are an important component of their process in periods of time, where spreads are compressing the value of our loans will go up in periods of time, but spreads are widening like we experienced in the first quarter.
Value of the loans will go down obviously, its a very modest drop in the quarter, but there is nothing new to that that's been very consistent and that's what what took place this quarter, which was a quarter in all of the credit markets were.
Where our spreads were widening as you know.
These are flowing through unrealized marks down.
And the overall credit quality in our portfolio remains exceptionally strong.
So we would expect.
Directionally across the portfolio that loans that might be getting marked down in the quarter due to credit spread widening are going to ultimately get repaid at par and we will get a pull to par at some point when they get repaid. So I don't think you shouldnt read anything into the process and you shouldnt read anything into.
Read through on the credit quality, which remains quite exceptional.
I think that's helpful. I guess, just a follow there.
Understanding theres, one quarter doesn't mean everything but your new origination spreads this quarter six 5% that's.
Six 8% last quarter, it's kind of in line.
So it doesn't seem like it's really the market the direct lending market as a whole is it is it may be certain sectors that are that have identifiably.
Wider spreads in indirect lending.
Okay.
Okay.
It's not we don't just look at pure direct lending spreads were looking at all credit spreads in the market writ large public loan spreads.
Our bond spreads.
The public loan market, obviously is very visible spreads widen in that market.
So all of those factors are used to determine the marks and again every quarter in both directions since inception so.
Quarters, where spreads are coming down.
Prices will go up and spreads are widening a bit prices will go down obviously.
Obviously, we had a very very modest origination.
Origination quarter, so the $6 50 versus the <unk> hundred 80.
That's a very small sampling and not apples to apples.
But I would say directionally in the first quarter spreads in the direct lending market widened a bit.
The six 5% again, it's a very small sample size, so I wouldn't use that for the fourth quarter as any particular.
It's not a fair indicator of overall market direction spreads widen in the first quarter and the direct lending market and in the broadly syndicated markets as well and Thats what drove marks to be down in the portfolio.
Helpful. Thank you and just.
A follow up if I may.
Our platform.
Question on direct lending verticals.
The software group has really developed it.
One BDC complex now you've done very well there.
Do you see any.
Was that more of a one off opportunities.
Or do you have more in mind for for more specialized or dedicated.
Origination vertical.
Within direct lending.
Okay.
Sure.
We saw.
Five years ago, we really saw the opportunity to do to really grow our focus in the text technology space generally and software in particular and invested heavily.
And those efforts in the team and the dedicated funds that you described and we think we're one of the largest.
Direct lenders in the technology space and it's a huge advantage. When these large deals come along like we saw this quarter, which the public to privates. The sponsors want to work with folks that have expertise and know the credits and can write a really big check in and asked good questions and do things in an efficient manner and so.
We can do that and that's one of the reasons why we're fortunate to be in a leadership position in these large deals.
We are we are thinking about other areas where that might have a similar.
Patina to it I think health care is it is the type of area that you would expect US. We've it's always been one of our more active sectors and that's an area. We've added some to our team so that might be within healthcare. There were some some interesting areas that you could see us doing more and so we are going to think about ways to continue to have <unk>.
<unk> expertise I think thats, where private credit is going to go over the next few years.
And the firms that have the scale that like ours, they can invest in those resources.
It really helps to to find sourcing opportunities and to make smart underwriting decisions.
So we look at it actively I'm not going to lay out all of the areas that we might go into on this call, but we are to your point.
Constantly thinking about areas to Dell.
<unk> further into.
As well as specialty finance vertical cycle like of wings fire. So.
We will we will do more and keep you apprised as we can it go in those directions.
Great. Thank you so much.
Thank you again.
Again, if you would like to ask a question Press Star then the number one on your telephone keypad. Your next question comes from the line of Kevin <unk> from JMP Securities. Your line is open.
Hi, good morning, and thank you for taking my questions.
Looking at slide five of the presentation. The average new investment for new portfolio companies was roughly $22 million, which is down meaningfully from recent quarters. Just curious if there's anything to read into there about where you are currently finding attractive new investment opportunities.
Sure. So now that the portfolio is fully invested and are comfortably in our target leverage range, our appetite for new investments in any one quarter is really going to be driven by repayments and so in periods like this quarter, where we saw really light repayments.
The new investments were really sizing about two the pace of repayments give or take obviously you can't do it perfectly.
And so you're right to observe that the average investment size was smaller.
We just didn't have a lot of capital to deploy and generally try to have our funds participate in each deal.
Even if that bite size might be particularly small so it was simply a quarter, where our investment appetite in OCC was low in aggregate and we did see a lot of deals our platform was quite busy. So RCC participated regularly in the deals that we were under our we were underwriting in the platform, but the bite size with <unk>.
To have a position in those investments youre going to see some small line items.
Which are a tiny piece of a much larger deal that we're doing across our platform.
Part of the reason, we do that is because in.
In the future of those companies now we are an incumbent lender those companies likely will come back to our rock for additional capital and at that point that might be a period, where OCC has more capital to deploy and so as.
Having a position within the credit. They can then upsize that if they didn't participate at all now that we don't that likely would not be the case. So some modest sized position so nothing to read into view on the opportunity set is really driven by.
Just a modest quarter for repayments.
Got it that makes sense, Craig and then you talked about an expectation for spread widening in the current environment. Just curious if youre seeing any sort of improvement from a documentation standpoint.
Yes.
Sure I think I hope all of the transcript will show I think I said I hope for spread widening and expectation for stable and a hope for widening but it's definitely not a tightening we will have to go back to the audiotape on that one.
Documentation remains very good for direct lenders.
We get we care deeply about documentation.
It's something our team spent a tremendous amount of time on.
We have always felt we got very good documentation limitations on all the appropriate credit measures.
And that continues to be the case.
It is certainly the case when you're financing much much bigger companies Theres more covenant light and the market knowledge that I think we and other lenders and companies are when you're financing.
Companies that are $345 billion companies.
You deserve a degree of flexibility different than a company with 20 million of EBITDA.
But that flexibility doesn't extend to allowing for really weakening our creditor protections, we don't allow for asset stripping or significant dividends to come out or less to get layered et cetera. So I think it continues to be.
We like the documentation, we get and we also get great information by doing direct lending, we get we get much deeper.
Complete access to the company regular updates et cetera. So from that standpoint, I think it's all consistent consistently a good environment as a lender.
Okay, Great I'll leave it there and congratulations on the quarter.
Thank you.
And your next question comes from the line of Kenneth Lee from RBC. Your line is open.
Hi, good morning, Thanks for taking my question.
Just a follow up on the previous question there.
Should we interpret.
That originations are going to largely match deep debt paydown activity.
Should we interpret that to say that that youre thinking about leverage could could remain at current levels or do you think leverage could change over the near term just given the current environment. Thanks.
Yeah.
Sure. So we have our leverage target of <unk> nine to one in a quarter. That's our leverage target, we think thats the right place for our company balancing.
Shareholder returns as well as our lenders and bondholders and rating agencies like we think that's the right range.
I think we like where we are right now which is a little higher than midway through that range. So I think that's about where we'd like to run.
The repayments.
Or it can be lumpy and so in a period of this quarter was very modest repayments, it's easier to calibrate, but there may be quarters, where the repayments are lumpier and so you can move within that range in a more material way than we saw this quarter. So I think youre characterizing it about about right we were trying to size.
Size.
Leverage that is within the range more towards the upper half of the range of possible.
Matching origination with repayments I think that.
Give or take is where were we think is the right.
The right place for the company.
Great very helpful.
One follow up if I may.
In terms of the recent large software financing transactions.
Highlighted.
Do you think those recent deals were indicative of any change in market trends or is this simply a continuation of what you've been seeing for quite some time in terms of large companies.
Utilizing direct lending and direct lending just taking share from some other players. Thanks.
I think it's a continuation, but I may use the word and acceleration of the trends that we've been seeing.
So I think I think theres two to two different things that are converging.
The public equity markets being more volatile, but I will say trading down.
The private equity firms are sitting on a tremendous amount of capital trillion, plus and so for the private equity firms. The decline in equity values is opening up tremendous opportunities for them to deploy their capital to do some public to private.
Takeovers of some extremely.
Attractive companies that previously were just too expensive and not not in their strike zone or with boards that might not have considered selling and now there are because of the decline in.
<unk> prices in the market.
That creates opportunity for the private equity firms to step in and deploy that capital to take those companies private and and and execute on our value creation plan that they all have each time. They do one of these deals so more public to privates at the same time.
With the volatility in the public market public credit markets I referenced earlier on the call.
The private equity firms are a lot more comfortable working with direct lenders on these large deals.
Many of private equity firms have only really done direct deals in the last couple of years previously they didn't work with direct lenders they work with us and others and they are finding that it's a tremendous solution. They prefer it they like the certainty speed the confidentiality of the customization and our ability to help them grow all of these attributes that we've been talking about after that.
Five or six years, and more and more private equity firms are becoming converted and doing more and more of their transactions with direct lenders.
Previously you couldn't get $234 billion of financing for direct lending. If you had to go to the public markets. It's not the case now we can do it others can do it in part because we we've constructed our business, where we have a dedicated software fund that can do it and we can spread it across our platform we invest in our team. So I think there is an acceleration of that trend.
And so youre seeing that play out here early in 2022, and and it's continuing as we speak and opportunities have come in come in regularly each week with sponsors looking at some of our deals. It's one of the reasons why I'm very bullish on our RCC.
Yes.
The opportunity set is growing and there is competition on other questions earlier about spread contraction, but this is one of the Michigan. Some why why that is because those large deals.
You've got to find got them satisfy enough lenders to two to find the financing for $2 $3 billion commitment and so we think that that allows us to charge a bit more rather than a bit less. So I think it's an acceleration of the trends that we're seeing and I expect that to continue throughout the throughout the year.
Great very helpful. There. Thanks again.
Thank you.
And there are no further questions at this time, Mr. Craig Packer I turn the call back over to you for some final closing remarks.
Alright terrific I appreciate everybody's time.
And look forward to speaking with you. If you have any follow up questions on anything about our company. Please reach out.
Troy engaging with you and we'll speak with you soon thank you.
This concludes today's conference call. Thank you for your participation you may now disconnect.
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