Q1 2022 Cars.com Inc Earnings Call
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Good morning, and welcome to the first quarter.
Turning to our earnings conference call.
This call is being recorded and a live webcast can be found at <unk> Dot com dotcom.
Colin lashed lash invest sorry, dot dot com a replay of the webcast will be available until May 19, a.
A copy of the accompanying slides can also be found on the company's investor Relations website.
I would now like to turn the call over to Robyn.
Director of Investor Relations.
Good morning, everyone and thank you for joining us it's my pleasure to welcome you to cars first quarter 2022 conference call.
With me. This morning are Alex Vetter, CEO and T&D, Tony interim CFO .
Alex let's start by discussing business highlights from our first quarter, then Andy will discuss our financial results in greater detail along with our 2022 outlook.
We will finish the call with Q&A.
Before I turn the call over to Alex I'd like to draw your attention to our forward looking statements and the description and definition of non-GAAP financial measures, which can be found in our presentation.
We will be discussing certain non-GAAP financial measures today, including adjusted EBITDA adjusted EBITDA margin adjusted operating expenses and free cash flow.
Reconciliations of these non-GAAP measures to the most directly comparable GAAP measure can be found in the financial tables included with our earnings press release and in the appendix of the presentation.
For more information please refer to the risk factors included in our SEC filings, including those in our annual quarterly and current reports, which are available on the IR section of our website.
Assume no obligation to update any forward looking statements now ill turn the call over to Alex.
Thank you Robin and welcome to our first quarter 2022 earnings call.
Our momentum continues driven by robust dealer customer growth ongoing product adoption and record retention, resulting in continued revenue growth for the first quarter.
<unk> revenue increased 6% compared to a year ago and total revenue grew 3% and an inventory constrained operating environment that has also impacted OEM and national revenue.
Consumer demand remains strong and outpaces supply as new car production was muted as a result of the ongoing chip shortage.
Sales of used cars on the other hand remained robust this is lee.
The elevated retail prices for both new and used cars and soaring profitability for brick and mortar dealers.
The average retail prices for new and used vehicles listed on cars Dot Com increased 27, and 37% in the first quarter, respectively as compared to the prior year.
Despite the current market conditions dealers continue to value and adopt our industry, leading digital solutions are consistent value delivery resulted in us, reaching 19500 customers the highest dealer count and more than three years and an impressive 677 increase compared to last year.
And 321 compared to the fourth quarter.
This is tremendous growth and we still have ample room to grow our dealer base with over 40000 dealerships in the U S.
Our solutions are also attracting and retaining a wide spectrum of dealers with both franchise and independent recognizing the exceptional value we provide across our platform.
<unk> growth reflects the ongoing success of our core marketplace website solutions and our targeted advertising solution fuel despite the impact of inventory shortages.
Dealers continue to invest in our digital solutions to add more touch points with consumers, which is underscored by our continued growth in website customers, reaching 5500 at quarter end.
This expanded network is creating substantial cross selling opportunities for us to bring additional digital solutions to dealers, who seek innovative ways to find and engage customers along the car buying journey.
Our marketplace is vital to the success of consumers and dealers, we consistently generate sales from high quality organic traffic more efficiently than our competitors for the quarter leads to dealers grew double digits and unique visitors increased 2% compared to a year ago.
And the majority of our traffic comes to us organically largely driven by our strong consumer brand the quality of our consumer experience and our original editorial content that covers the most relevant and timely car shopping advice for consumers.
With the recent surge in interest for electric vehicles due to record high gas prices, we launched EV related editorial content and a re imagine landing page with enhanced search functionality to guide shoppers deeper into the purchase funnel. This.
This has generated incremental traffic to cars dot com and elevated our expertise in Google's electric cars search results.
Inventory searches for Evs are up nearly 200% year over year on our marketplace and our new landing page, which hosts our comprehensive <unk> buying guide delivered nearly 400% increase in SCO traffic in March over the prior month.
<unk> expertise has spurred significant national media attention this quarter, including a week long exposure on the country's number one morning show Good morning America or.
Our leadership continues in Q2 was the second installment of our popular livestream event, where our editors share their EDI expertise and answer consumer questions live.
We continue executing on our go to market strategy, demonstrating the full value of our platform from our leading marketplace and traffic driving editorial content to our industry, leading technology solutions, all of which empower dealers and Oems to efficiently scale their business.
Michelle to lease business development manager for security Chrysler Dodge Jeep brand in and rebuild and New York is one such customer GE.
<unk> Leverages the full suite of cars products and appreciate the value delivered from the connected cars platform.
Michel says and I quote cars dot com customers are more knowledgeable and it's very rare that we don't sell them a car and using cards for our total solution, including cars dot com dealer inspire dealer rater and fuel brings everything together, making it easier to run our dealership.
As evidenced by Michelle's testimonial using our enterprise suite of solutions is a winning strategy.
We had great success at the recent Nab convention, our industry's leading trade show in June .
Just three days, we closed nearly 200 decisions credit IQ in accu trade.
Our booth was packed with.
Dealers wanting to learn more about our suite of solutions that are seamlessly integrated into our <unk>.
Our platform.
I'm more than pleased with our strong performance and reception to our new digital solutions, which will begin to launch in the second quarter and have a larger revenue impact in 2023.
By far the biggest dealer needs.
And the current inventory constrained environment its vehicle acquisition. So it wasn't surprising that our most sought after solution was accu trade a digital vehicle acquisition appraisal evaluation solution.
Dealers ranging from single store to multi store operators are interested in the value and power of our solution to help them efficiently source inventory with the right valuation and appraisal data to help them buy cars with knees and.
In March we began piloting that solution in select markets and are expanding the pilot program during the second quarter.
We're extending our end to end capabilities and equipment dealers with a much needed set of solutions to help them drive sales.
Our digital financing solution credit IQ also drove strong interest at an EBITDA.
We're in the early stages of online financing, but are seeing strong demand from dealers and household names in the auto finance industry, who are excited to use our technology.
And allergy to reach larger end market audiences.
Power of our platform is in our high intent audience was 148 million visits the cars back down.
An incremental 304 million visits across dealer inspire websites.
Our opportunity continues to expand with the addition of <unk> trading credit IQ and we look forward to updating you on the rollout of these solutions.
In summary, once again, we delivered results in line with expectations and I want to reiterate how pleased I am that our momentum continues I will now turn the call over to <unk>.
Thank you Alan.
I am pleased with our solid start to the year revenue totaled $158 million, a 3% increase compared to the prior year dealer revenue grew 6% Q1 hundred $40 million as a result of 4% growth in dealer customers and 1% growth in AARP D driven by strong customer retention rates and further adoption.
Our digital solution.
Ongoing inventory shortage continues to impact our OEM and national revenue, which was down 16% from a year ago New car.
Inventory is expected to begin to recover until the fourth quarter. This year.
Despite the macroeconomic headwinds associated with inventory shortages inflation and rising interest rates, our diversified business model gives us confidence that we'll deliver another year of solid growth.
Turning to expenses for the quarter total operating expenses were $147 million compared to $137000 a year ago on an adjusted basis operating expenses were $141 million $10 million higher compared to the prior year. This increase is primarily due to an increase in marketing including the.
A return to an in person.
As well as higher product and technology expense, driven by higher compensation and consulting costs, including the addition of the integration of credit IQ and Accu trade.
Net income for the quarter totaled $4 million or <unk> <unk> per diluted share compared to 5 million or <unk> <unk> per diluted share a year ago.
We delivered adjusted EBITDA at $42 million or 27% of revenue within our guidance range margin for the quarter reflects our product mix, lower OEM and national revenue and higher growth in our solutions business.
Now turning to our key metrics are.
Our business is underpinned by strong fundamentals the value, we deliver attracts and retains dealers evidenced by growth of 321 dealers in the quarter, putting us at 19500 dealer customers at quarter end. This is our highest number of dealer customers in more than three years.
Our website business also continues to grow as of March 31, We had 5500 website customers up 800 from a year ago dealer inspire revenue in total grew 15% year over year.
Our PD for the quarter grew 1% year over year, driven by growth in our digital solutions and fuel products.
Generating unique high quality traffic, it's something we've consistently delivered for our dealer and OEM customers.
First quarter, we had 2006 6 million average monthly unique visitors and $148 5 million visits.
We grew our U these which best represents in market car shoppers by 2% year over year, while traffic was down 5% more importantly, our value delivery with <unk>.
We grew our leads to dealers, 12% year over year, all of that despite inventory levels being down more than 30% year over year.
For the quarter cash provided by operating activities was $30 million and free cash flow was $26 million $18 million lower than the first quarter last year. This decline was primarily due to a $9 million cash tax refunds that we received last year in the first quarter related to the cares Act and how.
Compensation payments in the current year period.
During the quarter, we borrowed $45 million on our revolver and together with cash on hand funded the upfront purchase price of Etsy trained resulting in total debt outstanding of 520 million at quarter end and net leverage at two seven times net leverage improved from two nine times a year ago.
While two seven times or slightly above our target range of two to two five times, we are comfortable with the temporary step up to fund M&A, given our consistently strong cash generation.
We have $185 million available on our revolver and our total liquidity was $215 million at the end of the quarter.
With our strong balance sheet and modest net leverage we began returning capital to shareholders. In March we made the first purchases under our recently authorized share repurchase program buying 338000 shares for a total of $5 million.
Now turning to guidance for the second quarter, we expect to deliver revenue between 161 and $163 million representing year over year growth of three five to nearly 5%.
This guidance reflects the continuation of our solid first quarter performance as well as the ongoing industry wide inventory shortage, which will continue to mute our growth.
This low production environment further delays in new model releases and lower incentive spend have a negative impact on our OEM and national revenue specifically.
While dealers are experiencing record profits and our retention rates remained strong dealers and Oems are less inclined to increase or shift their advertising budget. During this time.
We expect revenue growth to accelerate throughout the year as our growth in our subscription products accumulate and we rollout and ramp up of our newly acquired products.
We're reaffirming our full year expectation for revenue growth between 38% with double digit growth in the fourth quarter, our guidance assumes inventory shortages begin to recover in the fourth quarter and the macroeconomic environment does not have a worsening impact on car buying consumer behavior and dealer spending on products and.
<unk> our.
Our expectation for the second quarter adjusted EBITDA margin of 26% to 28% reflects the impact of our projected revenue mix with lower OEM revenue and growing solutions revenue as well as higher year over year expenses as we continue to invest in marketing and in our people, including the integration and launch of our recently acquired.
Dealer solutions adjusted EBITDA margin is expected to approach, 30% by the fourth quarter as revenue growth accelerates and OEM and national revenue begins to recover in connection with inventory.
In conclusion, our business is well positioned for continued growth in particular during this challenging macroeconomic environment. Our team remains focused on execution and delivering value to our consumers customers and to our shareholders with that I would like to turn the call back over to Alex.
Thank you Andy.
I'm pleased with our progress in advancing our platform strategy, enabling Oems and dealers to better compete in a rapidly evolving industry, that's driven by changing consumer preferences and with that we're ready to begin our Q&A operator.
Thank you.
To remind everyone to ask a question just press as firewall on the telephone keypad to withdraw your question, yes the balances.
Your first question comes from the line of Dan Great News.
Of the benchmark co.
Your line is open.
Great. Thanks, good morning.
Thanks, Alex.
On the dealer customer.
Pretty positive, especially in this environment, maybe just a couple of things I know, it's super early with the acquisitions you've made.
Your NAV and you are having conversations JV just made comments about the tough environment. So how are you thinking about things like asked this a lot, but it's especially important now I think how do we think about things like bundling trying to give you guys locked in.
Longer term comments or.
I know youre doing some piloting and testing right now, especially on the CTV side. So just help us think through the strategy here and how it evolved maybe over the coming quarters in light of the backdrop in training.
To continue the strong dealer momentum that you're seeing that now that you have kind of a more robust product suite to offer.
Sure. Thanks, Dan good to hear your voice.
We're very pleased with the dealer growth in the quarter and.
And see continued opportunity to add dealers to our platform because to your point, we've got a range of solutions.
Dark from entry level to people like we feature on the call who participate with us across the full enterprise suite of solutions.
And so I think that gives us tremendous flexibility to solve dealers individual problems and then grow the relationship over time youre seeing that in our strong ERP D.
And that where we're able to get more solutions sold when I look at the opportunities with both accu trade in credit IQ keep in mind. These are opening up brand new Tam for us.
Credit Iq.
We've now been in active discussions with all of the U S.
Large lenders, who are eager to figure out how they can better help compete for market share and then on vehicle acquisition side every dealer that we've talked to is interested in adding tools that will help them buy cars from the street and so.
I think knowing that we've chosen solutions that meet the customer need.
It gives us a wide net of opportunity on AARP D. And then certainly the cross selling opportunity grows because.
Your question about contracts I would say, we're less focused on trying to quote locked dealers into long term contracts, we are winning with value and we're winning with service.
Philosophy is we want to we want to win dealers based on our innovation, but we're going to keep them with service and value delivery and I think that's what you see double digit lead delivery growth.
Website solution sales continue to grow and now these new products are going to add to our capabilities.
And just to be clear Alex the conversations even in this environment obviously given.
Sort of the uncertainty on the macro front.
You're trying to communicate though that you are having still very constructive conversation and there is no hesitation.
In these communications.
Yes, no I think well first of all we know that dealers are reporting record profits and they are also eager to shift their business aggressively towards tech I think if there has been.
Any softness it's on things like fuel and other <unk>.
<unk> marketing strategies in this environment, because they are dealing with such limited inventory.
On the technology solutions side, there is an eagerness about how they can run their dealership with fewer resources relying on tech and so again I think the only areas that are soft right now for us would be Oems, which obviously you don't have product.
Push and so they are not doing as much.
Got it and just on the marketing front Alex.
Going forward throughout the year understanding again sort of a tricky macro you guys are investing you've got a bunch of stuff to invest against now which I think.
It's very telling for $2000 or just how do you balance.
Kind of maintaining sort of healthy.
EBITDA level.
Versus sort of going after.
The Tam expansion that you talked about over the coming quarters, depending on how the environment evolves.
Hey, Dan it's Andy.
Great question, I mean, thats one of the things.
Great about our businesses.
And a strong cash flow that we're consistently generating it gives us a lot of options right. So obviously, we are a company. We've been accompanying continued to be a company, that's very very focused on profitability and cash flow.
And we can use that cash flow to invest back into our business, which is what youre seeing with with the numbers. This year right with the guidance, we've given for the rest of the year as well as our results here. This quarter is where we're putting a little bit more money back into marketing into our people and into these acquisitions, which you see.
Which is C across our operating expenses, so certainly it's a balanced and as the revenue mix changes, we're mindful of the impacts to cash flow.
But we're constantly looking for.
Investing back into growth into the business.
Got it thanks, very much and the solid start to the year.
Thank you thanks, Dan.
Your next question comes from the line of Tom White of D. A Davidson your line is open.
Thank you good morning, guys.
I guess first off.
Alex could you maybe talk a little bit about a little bit more about accu trade solution there and.
Maybe how that offering is differentiated from some of the other competing.
Kind of similar digital platforms out there and I guess sort of as a follow up there should we anticipate any kind of normalization in the growth rate of that business I know, it's still like Super early but I guess I'm, just sort of looking forward to a period when.
Local dealers.
Used inventory levels start to kind of normalize and they start getting.
Inventory from the more kind of traditional channels like.
Like consumer trade and that the dealership, how do you sort of see the growth rate of.
Of the active trade business kind of.
Behaving once that happens.
Sure Worldcom, where we're in pilot right now with our dealer partners and they are helping us develop the proper go to market here, but I can flash a couple examples I mean dealerships are spending in some cases in excess of $10000 a month on various tools from different suppliers.
That frankly, we can bring them all together through accu trade.
Whether that's pricing and analytics or trade in widgets on their website or third party services that allow them to source cars.
Many cases dealerships have three to five different vendors trying to do these things for them at any given time and if you look at what Accu trade does obviously are our pilot go to market is on a subscription basis.
We do see a disruptive on pricing because we believe that dealer network wants fewer tools.
Strategy to the dealer network.
I think when you look at the strength of Accu trade. It really comes down to a few things such as their vision than specific valuation capabilities that is far more precise than say generic.
Make model.
Mileage type valuation tools in the market.
They don't we don't rely on third party inspections, and certainly we are backing up the accu trade offer with a guarantee so we've got a lot of things that are helping dealers buy cars without any friction between them and the seller.
And we're doing it.
Software as a service type model, where dealers know that we're enabling them to do this not just online but in their physical stores in their service lanes. They are using accu trade across their whole business and arent using it that's one narrow buying channel.
Youre going to hear more about this next quarter as we reveal some of the success stories that we're finding in our in our pilot, but Theres No reason every dealer in the country wouldn't want accurate and to further that point. There is no reason that a change in consumer behavior.
The impact the way dealer desire.
Looking to acquire vehicles right and valued vehicles. This is something that they can continue to use.
Going forward no reason to change and if the entire trade ins at the dealership. They can they can use accu trade that properly value the car and buy it on the spot and the physical form great point.
Got it I appreciate that Jeremy Thanks, and then just a quick follow up I apologize if I missed this but did you guys comment on weather dealer count in AARP.
Grew for the core listings business this quarter.
It's Ed.
Okay terrific. Thanks, so much guys.
Thanks, Tom.
Your next question comes from the line of NAV It Ken.
Your line is open.
Hey, guys. Thanks for taking the question this is Ben.
Some of that.
Two questions. If I may so the first thing that dealer inventory appears to be improving.
<unk> seen.
Sometimes.
Price inflation somewhat settling down so how do you expect.
Dynamics drive marketplace revenue growth over time.
And the second on the outlook for the EBITDA margin approaching 30% by four to you.
How confident are you in OEM ad spend rebounding.
Covid levels by then Kevin.
New car inventory now expected to recover until the latter half of the year.
Sure well first of all I think even what's interesting if you look at the inventory levels on the new car side, we know those are down massively but.
The used car business still remains very robust and dealerships do have healthy levels of inventory, particularly those that are relying on tech.
To acquire cars and keep inventory levels flush.
I think even though the used car pricing is coming down our subscription model.
Our model is somewhat tied to inventory levels. So.
We think our ERP D strength is actually quite good considering inventory levels were down in most of the dealer additions that we've had over the last few quarters are coming in at a much lower subscription rate than say, we were at a year ago, because they just have lower overall inventory and so as inventory levels.
Increase somewhat helps stabilize or even grow AARP D just being tied to that dynamic.
I think the opportunity for us obviously is that well Jamie comment on the second part of your question, Yes, absolutely from an outlet perspective, and the margin you are asking.
The margin.
Reaching 30% by the end of the year isn't necessarily directly tied to OEM revenue returning back to growth I mean, we certainly are expecting it to not get worse.
Im to recover and be rather flat by the end of the year from a year over year perspective, So we're not assuming.
Massive growth in OEM by the end of the year more of that recovery and rather flat from a year over year perspective.
That just to put a little bit of a finer point on that and then to Alex's point and I think the other.
The question that Tom asked at the end at the end of his was about marketplace AARP and dealer.
Dealer count growing dealer account from a marketplace perspective did grow AARP deals out there.
There are several components of it right. There is that our solutions from our web site perspective, there's fuel and then there is the core marketplace. The core marketplace AARP was a bit down year over year in the solutions and the fuel business that really drove the year over year growth like Alex just said from inventory levels being down and new dealers coming in at lower <unk>.
Right.
Our PD from just pure marketplace subscription plus a little bit down year over year. So I wanted to make sure I clarified that.
Awesome. Thank you.
Thank you.
Your next question comes from the line of Doug Arthur.
Your line is open.
Thanks.
Yes. Thanks, Jay just to clarify are you seeing AARP D for the core listings business was down or.
Of that as well as total revenues attributed <unk> solutions ex fuel ex dealer inspire was down a little bit year over year.
You know what.
I actually don't know the answer to that because we don't look at it broken out that way.
<unk>.
Actually now here. It is it was marketplace just the core solution.
Up year over year.
Driven by customer growth.
Okay.
Alex You said I believe if I can.
What that correctly that.
New dealer.
Core listing marketplace customers are coming in at a lower price so the new solutions.
Adoption must be pretty strong given you're up.
Overall, AOR PD is that a fair reading of it.
Dealer customer growth right, just the customer count alone, even though it's coming in at lower rate.
Incremental revenue so.
Yes, it's a combination of those two factors leads to revenue growth year over year does that does that answer. Your question. Yes, yes, Okay, and then just going back to the margin outlook I mean, given the fact that there's a lot of demand variables here for the rest of the year.
What.
As you look at your expense.
How do you modulate expenses, particularly in marketing.
How flexible do you feel.
How much flexibility do you feel you have on some of these expenses, depending on where revenues.
Come in.
That's a fair question I mean, we certainly have flexibility in different areas of the business marketing as one example.
I think we've proven to be pretty strong operators, especially when you go back two years ago to Covid I mean, im certainly not talking about pruning some of the levers that we did back then but there are other areas that we can look to to trying to curb spending if revenue mindset coming in coming and foster but.
Okay I got it thank you.
Thanks, Tom and thank you Doug.
Again, everyone. If you would like to ask a question just breath as Taiwan telephone keypad.
Your next question comes from the line of Gary You Bristol.
Lines open.
Thank you good morning.
Hey, Alex Sandy.
<unk>.
Couple of questions here first of all.
Yes.
When you're talking about closing nearly 200 deals.
<unk>.
Would you kind of.
Most of those deals point solutions.
Sure.
Did you also get.
A goodly amount of new deal is looking at your marketplace business.
Wanting to sign up for.
Well they were across the board Gary, but the majority of the dealer sign ups there were wanting to participate with us with accu trade.
It was.
An absolute homerun on that front and so we're beginning the enablement and the.
Production side of all of those orders now in Q2 getting those all as the initial pilot dealers up and running.
Was that where most of the dealers that were signing up for accu trade, where the independents versus franchise or was it just mixed across the board.
It's almost all franchise.
EBITDA largely as a big franchise dealer show, but we do have an independent operators that are interested for sure.
Okay.
So from the time that you sign.
These entities up for either accu trade or credit IQ how long.
Does it take for you to actually roll out the product to the dealer and the dealer starts using the product.
We're working through a lot of those details we can turn on the digital side of it fairly quickly, particularly because we have all the dealers information already in house, either through dealer inspire or any of our existing solutions.
For the dealers that are wanting to use accu trade for their in store appraisal process.
And even in their service lanes, certainly that's requiring a little bit more time to get them to fully appreciate the totality of the solution.
But we can start revenue recognition and dealer value delivery really quickly.
It's just trying to get the whole dealership operation to embrace the tech is it takes a little more time. So it's really kind of a training issue that makes sure that they fully appreciate everything the product so they can enjoy.
From that.
Would you would you know if the dealers that signed up for Accu trade.
Okay.
A competing product and they were going to double double source or were these dealers that really didn't have a product to source cars from consumers.
Well I think.
The answer is both their Gary because part of the value is obviously sourcing sales either from their website.
<unk> from our marketplace and dealers across the country have various tools that do that today certainly none that are integrated to do both through one.
Technology like a dealer will use.
A third party vendor for a widget on the website will source leads through <unk>.
Various third party or buying matrix type solution and so they are using multiple tools with accu trade that can do all of those things through one interface and so dealers initially reporting Oh, my God I can actually save a lot of time.
Less things to train people on and I can buy cars directly from my own website and from cars Dot com.
It is far easier so I do think.
We will replace a lot of existing tools, but there is no reason that we also can't be in addition to other solutions that they use.
Okay, and do they have to be a marketplace customer to use equity traders can you sell this just as a point solution.
They don't but I will tell you we've already won a lot of dealers back to the marketplace because when they heard about accu trade. They wanted to buy Accu trade and then said look lets get back onto the marketplace as well because now we can sell cars and buy them.
From you so that's been a nice positive as well.
And then a couple of more questions I promise ill get off.
Just in terms of as we look at the expenses as a percent of sales in the quarter.
Are those.
Levels as a percentage of sales pretty much going to be consistent throughout.
Full year <unk> in terms of revenue operations product technology marketing sales and G&A.
So marketing is marketing and sales is a bit elevated in Q1, frankly means of NAV.
Year over year, you would see that they are also if you look at the trending out throughout the rest of the year it'll it'll come down a bit it's still we're still expecting to spend more each quarter than we did last year, but it will be lower than Q1.
Product and tech.
From kind of a pure dollars perspective.
Is that is a little bit light in Q1 simply because we only owned accu trade for one month.
So asking trade being kind of fully in for the rest of the year Youll see a little bit of a step up there.
DNA.
To look at it without stock based comp.
Stock based comp actually is going to go up a little bit we brought more employees into the into the equity program.
Here's the stock based comp will be up but if you look at it kind of normalized and without stock based comp G&A is probably flattish for the rest of the year.
And then just lastly on your share repurchase just.
Just curious you only repurchased 338000 shares in the quarter.
Will you locked out of buying your stock.
After the announcements that <unk> had left what was leaving.
We certainly do have.
Stricter trading windows and because of the timing of when we put the plan in place we didn't have the opportunity to have spent up at 10, Besides finding if they need it at 30 day cooling off period itself.
And that's part of the reason why in this areas, where it kind of concentrated in Florida at the beginning of the beginning of the month okay.
Okay. Thank you.
Thanks, Gary.
There are no other questions over the phone I'll turn the call over to back to Alex Vetter CEO .
Thank you for your interest in cars and enjoy the rest of your week.
This concludes today's conference call. Thank you for participating you may now disconnect.
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