Q2 2022 MarineMax Inc Earnings Call
Good morning, and welcome to the Marine Max 2020, Two's fiscal second quarter Conference call.
Today's call is being recorded.
At this time I would like to turn the call over to Don Frankfurt of ICR Investor Relations for Marine Max. Please go ahead.
Thank you operator good morning.
Everyone and thank you for joining this discussion of marine Matt.
Second quarter 2022 conference call I'm sure that you've all received a copy of the press release that went out this morning, but if not please call Linda Cameron at seven to 75311712, and she will email one to you right away and now would like to introduce the management team of Marine Max Mr. Brett Mcgill.
President and Chief Executive Officer, and Mr. Mike Mclamb, Chief Financial Officer of the company management will make a few comments about the quarter and then be available for your questions.
With that in mind, let me turn the call over to Mike. Please go ahead Mike.
Thank you Don good morning, everyone and thank you for joining this call before I turn the call over to Brett I'd like to tell you that certain of our comments are forward looking statements as defined by the private Securities Litigation Reform Act.
These statements involve risks and uncertainties that could cause actual results to differ materially from expectations.
These risks include but are not limited to the impact of seasonality and weather general economic conditions and the level of consumer spending the companys ability to capitalize on opportunities or grow its market share.
And numerous other factors identified in our Form 10-K , and other filings with the Securities and Exchange Commission with that in mind I'd like to turn the call over to Brett Brett.
Thank you, Mike and good morning, everyone and thank you for joining this call.
Let me start by thanking the amazing Marine Max team for their performance in the quarter.
We are proud to have one of the finest and most tenured management teams in the industry.
Generating 7% same store sales growth on top of a 45% comp a year ago is outstanding.
This is quite an achievement given the lean inventory environment and continued supply chain challenges, but.
But an even greater accomplishment is that our team delivered these results. While also providing exceptional customer service has affirmed by our record net promoter customer satisfaction levels, which is ultimately the key to driving sustainable future sales and profitability.
Let me start by touching on the March quarter, where we generated 17% revenue growth record second quarter gross margins of 33, 7%.
And earnings per share of $2 37.
Our diversified model enabled us to again exceed expectations as we produced robust earnings growth and cash flow.
As I mentioned, we are particularly pleased with our strong same store sales growth for the quarter. This.
This quarter's comp and the size of our backlog makes it clear that the overall demand for the boating lifestyle remains strong.
Additionally, we drove meaningful expansion across essentially all brands categories and geographic regions only limited by product availability.
We anticipated two years ago that boating would be one of the beneficiaries of a changed world. This quarter is evidence of the sustainability of that trend.
This strong demand environment as highlighted by our customer deposits, which exceeded $164 million and grew sequentially on top of our strong same store sales growth.
We are leveraging our scale global presence product diversification and digital platform to generate these results.
Based on available industry data, we believe we continue to gain market share.
From a cadence perspective, the supply chain headwinds did not improve much in the quarter.
However, we continue to work closely with our manufacturing partners to ensure we are properly communicating with our customers and getting them into their both as fast as possible.
Many experts in the industry are forecasting that inventory will likely remain historically low into 2024.
To that point, most manufacturers and dealers agree that the future level of inventory is likely to be leaner than in the past given the benefits that leaner inventory creates across the industry.
From a six month perspective, we delivered almost one $1 billion in revenue with same store sales growth of 8% on top of 33% a year ago.
Gross margins grew to a mid year record.
And we delivered almost $90 million in net earnings and $4 in earnings per share. It is quite an accomplishment.
Now, let me turn to the important peak selling season.
Demand is strong and we are well positioned and prepared to serve our customers to.
To that point the success of recent boat shows in Miami and Palm Beach reaffirmed our confidence.
Our team continues to leverage our stores and our online platform generating exceptional customer experiences.
Our deep manufacturing relationships and nationwide shared inventory gives us a competitive edge.
Many of our brand expansions continue to mature and accelerate within our retailing model, which should keep driving future incremental growth.
As we mentioned before because of the size of the territories. We have for many of these brands. We are not limited by physical facility in terms of our ability to sell and expand.
I'd like to underscore our strategic growth plan, which propel sustained market share gains and revenue growth, while expanding companywide margins.
This quarter, we increased our operating margins by 170 basis points over last year's record to 11, 8%.
This performance is directly attributable to our ability to execute our strategy of growing our higher gross margin businesses.
To that point, our growth strategy has been focused on seeking and acquiring great companies with strong management and generally a higher margin profile.
Strategic acquisitions combined with improvements in finance and insurance service brokerage and the expansion of our substantial storage operations have resulted in structural increases to our gross margin.
Additionally, as we integrate our acquisition they continued to perform very well and are aligned with our margin expansion strategy.
We have seamlessly integrated these businesses in the marine Max and believe opportunities exist for continued sharing of best practices and resources to drive even greater growth in the years ahead.
We recently announced the addition of a Super Yacht management company to our North and Johnson operation.
So I am which is located in the south of France complements marine Max's ongoing diversification into a higher margin and global business.
And strengthens our commitment to providing exceptional customer experiences.
All Super Yacht service offering.
Super yachts are a growing segment of the industry and we will continue to aggressively grow this segment of our business.
Now, let me discuss the confidence we have in our overall growth strategy.
We start the second half of the year with very strong visibility in terms of backlog and are well positioned to serve our customers.
The foundational pillars of our strategy are creating exceptional customer experiences through the best team services products and technology.
With regard to technology, we recently invested in boats on the only totally online marketplace platform in the industry.
Partnership aligns well with our higher margin business growth and diversification goals.
We believe the combination of our team's expertise and our history of success will enable us to leverage this leading innovative technology enhancing the customer experience.
Our team remains committed to our mission, which is resulting in strong execution delivering high net promoter scores and increased sales and margin.
We continue to accomplish this through our global market presence premium brand valuable real estate location exceptional customer service technology investments strategic acquisitions, and finally, our unwavering commitment to build our strong company culture.
Supported by one of the strongest balance sheets in the industry, we will actively make strategic acquisitions in a disciplined manner.
Our broad global presence has allowed and will continue to allow us to grow by adding additional dealers marinas storage service related offerings manufacturing and asset light businesses.
The combination of robust operating leverage significant cash flow and strong consumer demand led to record results. The first six months of 2022, and we believe will drive sustainable growth for the remainder of 2022 and beyond.
And with that update I'll ask Mike to provide more detailed comments on the quarter Mike.
Thank you Brett and good morning, again, everyone. I'd also like to start by thanking our team for their strong efforts that produced record revenue and earnings through the first six months of the year.
For the quarter revenue grew 17% to $610 million largely due to the same store sales growth of 7% and contributions from our various recent acquisitions.
Our same store sales growth was driven by an increase in our average unit selling price.
As units declined due to the lean inventory environment.
Keep in mind absent the acquisitions, we have completed our inventory is below last year's level.
A big takeaway once again this quarter is our ability to post strong comps on top of already strong comps.
Overall, our growth is only limited by product availability.
Our gross margin rose 370 basis points to 33, 7%.
Our record second quarter gross margin was due to several factors.
Among these are improving margins on new and used boat sales.
Impressive service parts and storage performance.
Expansion in our higher margin finance insurance and brokerage business as well as growth in our global Super Yacht services organizations of Northrop and Johnson and Fraser yachts.
Less than half of our margin improvement in the quarter came from our growth in new and used margins.
The remainder was expansion of our higher margin businesses.
Regarding SG&A the majority of the increase was once again due to rising sales and the related commissions combined with the recent acquisitions.
We believe SG&A overall is generally on track on an annual basis, but.
But we will watch the inflationary pressures carefully.
Our operating leverage in the quarter was over 22%, which drove very strong earnings growth.
Setting another quarterly milestone with pretax earnings of over $71 million or.
A record March quarter saw net income increased 37% and earnings per share rise over 40% generating $2 37 versus $1 69, a year ago.
Moving on to our industry, leading balance sheet, we continue to build cash with over $219 million at quarter end.
Our inventory shows a 9% increase but excluding the acquisitions, it's down in the high single digits year over year.
Our balance sheet reflects an increase in property over.
Over the past several months, we have purchased three formerly leased marinas in New Jersey, and also purchased a Marina in Fort Walton Beach, Florida.
Bolton property will require some development in the same context, we are developing a marina in Stuart, Florida on one property adjacent to a retail location as.
As we have indicated we have found that where we can own and control storage locations, coupled with our retail strategy. It results in great earnings and cash flow and increases the stickiness with our customers.
Looking at our liabilities short term borrowings increased $23 million due to inventory and the timing of payments.
Customer deposits, while admittedly lumpy increased sequentially from December to over $164 million and is double the elevated level from last year.
Our current ratio stands at 170, and our total liabilities to tangible net worth ratio is one two for.
Both of these are very impressive balance sheet metrics.
Our tangible net worth is $428 million.
Our balance sheet has always been a formidable strategic advantage and today more than ever it continues to protect us in uncertain times, while providing the capital for expansion as opportunities arise.
Now turning to our outlook for fiscal 2022.
The March quarter, certainly exceeded expectations and industry demand trends remained strong.
The challenge in 2022 remains the supply chain.
Today, given what we are being told from our various manufacturing partners. We continue to expect unit growth in 2022. However.
However, given the recent supply chain issues caused by the Lockdowns in China and the war in Ukraine.
We think it's prudent to continue to expect flattish unit growth until we have better supply visibility.
This combined with increases in our average unit selling price should provide annual same store sales growth of around the mid single digits.
Including all recent acquisitions, we expect total annual revenue growth in the mid teens.
We continue to hope that supply chain improvements will provide upside as we move through the rest of the year.
Accordingly, we are raising our earnings per share guidance to the range of $7 92.
To $8 30 for 2022 from $7 62 to $8.
Our guidance excludes the impact from any additional acquisitions that we may complete.
Our guidance uses a share count of about 23 million shares and an effective tax rate of 25%.
Regarding EBITDA, we expect fiscal 2022 EBITDA to be over $260 million.
Also as appropriate as we progress through the year, we will provide updates.
Turning to current trends, we expect April will end with positive same store sales growth and our backlog remains at record levels.
As we have said industry demand remains strong and we are generally outperforming these elevated levels.
I'll now turn the call back over to Brett for some closing comments.
Brett.
Thank you Mike.
As I stated at the beginning of this call. Our teams performance. The first six months of fiscal 2022 continues to show excellent execution as our diversified model and exceptional customer service generate sustainable growth.
The original vision for the creation of Marine Max was to create a better customer experience by building a team that is dedicated to the passion and lifestyle of the boating community.
This is the basis of the success of our model and we continue to work hard to deliver.
We remain committed to the long term financial strength of the company.
And we will pursue acquisition additional brand expansion and higher margin businesses with a focus on recurring revenue, which will support our overall growth strategy.
All with the view to create long term shareholder value.
And with that operator, let's open up the call for questions.
Thank you.
Now be conducting a question and answer session.
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One moment. Please so we poll for questions and whats going Thats Star one.
Yes.
Yeah.
Thank you.
First question is from the line of Joe <unk> with Raymond James. Please proceed with your question.
Thanks, Hey, guys. Good morning, good morning.
Quick questions on the outlook you raised the EPS guidance obviously.
Kept your topline guide unchanged. So I guess first question is what was the biggest surprise.
On the margin front that you've seen so far in the first half of the year.
Biggest having about a surprise I mean, obviously, we've structurally changed at least we believe we have the <unk>.
Margin profile of the company with the number of the different acquisitions that we've done over the years.
So we are expecting margins to be to be healthy new and used margins continue to be healthy I.
I guess I would say the our ability our team's ability to pass along price increases that we've received from manufacturers with us.
A tremendous amount of hesitation has maybe thats a little bit of a surprise in terms of even the margins of this quarter, but.
That's certainly been the trend all along through.
Through the last several years so.
But.
No other real surprises around margins I mean, the mix of our business continues to skew towards these higher margin businesses.
Service F&I, our storage business, certainly our Superyacht services company, which are companies, which continue to do very very well.
The manufacturing operations of cruisers at Intrepid performed well in the quarter, So really just everything.
It came together pretty good I guess, the only thing we do site is just just some.
Continued challenges around the supply chain right, how much product we can get.
Got it and then just.
And secondly.
On the last call you mentioned mix on.
On the boat side trended towards smaller boats was that still the case this quarter and is that an indication that maybe some customers are starting to balk at some of these higher prices.
No I think what we talked about in the December quarter. The December quarter is usually one where you don't deliver as many smaller boats in the wintertime and so forth and what we said is we had pretty good unit growth in the December quarter, because people generally are wanting to get their boats whenever they come in.
So we had an outsized amount of.
Smaller boats relative to the December quarter, I'd tell you mix in this quarter and nothing jumps out at me as I think through the business. It's a it's a healthy quarter. We've we've got a lot of smaller product mid size or larger product. So thats, all thats, a pretty healthy mix.
Okay. Just one last one for me in terms of the model.
Last year gross margin in the second half bounce around a lot you did 31% in Q3, and then I think kept up a 38% in Q4, how do you guys see the second half of this year, it's going to be lumpy or is it a little bit more.
Flattish versus the first half.
We said, we said on last quarter's call to expect.
Our guidance that we were having a little bit of margin pressure baked in I Didnt really address it this time, but I think mathematically to get to the numbers you would have a little bit of margin pressure baked into the back half of the year.
We don't have anything today, telling us that but I think it's prudent just given inflation and so forth that there could be some yes, I'll add to that that supply chain and transportation and shipping could put pressure on those margins. So we'll probably a little cautious there.
And our Q3 and Q4 going to be similar or pick jumping it before again like we saw last year.
Look we do does the back half of the year, Joe We don't really get too caught up from a quarter to quarter perspective, we look at it as a.
That's just the back half of the year.
Okay Super Thanks, guys.
Thank you.
Okay.
Our next question comes from the line of Fred Wightman with Wolfe Research. Please proceed with your question.
Hey, guys good morning.
Just wondering if you could dig into the outlook again, I mean you'd be pretty materially increased.
Increased the midpoint of the full year by a little bit less than that beat is that just conservatism or is there something that youre actually seeing it.
In the market today, that's making you a little bit more cautious as you look into the back half of the year.
No there's really nothing from a demand perspective that we're seeing that would cause anything I mean, we.
I think we've just completed.
24 months or more of just unbelievable sales and our customer deposits increased sequentially were up double over last year.
Your commentary suggests that demand trends should look pretty good.
I'd say, if there's anything out there that we've mentioned a couple of times in the script is just around the ability to get enough product.
However, given what our manufacturers are telling us today, we continue to think we're going to get the product. It's just a.
The supply chain is still kind of choppy out there and we want to be prudent in our expectations and sure hope to come back and update you guys. As we go through the back half of the year.
Makes sense and then just in terms of geographies.
A couple of different references to a slower start in the northeast is that something that you guys are seeing as well do you feel like you'll be able to make that up just as weather normalizes or is that not really something that you're seeing.
Yes, Fred this is Brent.
I think anything we're seeing right now up there.
Be somewhat granular and somewhat weather related but there is nothing to point out from <unk>.
Inbound demand traffic.
Writing deals nothing like that seems to be in the way.
Just maybe some weather patterns to get votes delivered.
Perfect. Thanks, guys.
Okay.
Our next question comes from the line of Eric Wold B Riley Securities. Please proceed with your questions.
Thanks, Good morning, guys.
A couple of questions I guess, one kind of follow up on the gross margin question I guess, not really looking to back half of the year Sidney just in general.
With all the changes that you've made through diversification and the acquisitions.
Brokerage and management now kind of moving more towards into the Marina space.
How likely is that you can sustain margins gross margins above 30%.
Long term.
One of the.
New and used boat business is kind of.
Normalizing so to speak.
Yes, Eric.
Comment first.
Yeah.
Prior to the pandemic, we put a strategy plan together multi year.
You see in our acquisitions as you referenced and all the things we're looking forward to.
Generally raise our margin profile around that to that 30% range that was kind of our goal give or take a little bit and that was based on understanding that new boat margins with kind of some historical level that we used to have so.
That kind of tells you we were looking at building these higher margin businesses looking at acquisitions like that.
And now obviously, we've gotten a tailwind from new and used boat margins and.
So will those maintained for many many many years to come.
See about that what I would say with new levels of inventory that dealers will carry I think theres going to be a new view on that from from both manufacturers and dealers that should help preserve margins, maybe not exactly to the level, they're at today, but something much better than we've seen historically, Mike do you want it.
Just I've said this before but if you listen to what we say each quarter about kind of the trends within the margins, usually it's a third 40% or less than half as newer used <unk>.
Expansion of margins. So if you just take our margin growth and let's say you take a third or 40% off of it today, you would have something north of 30%.
It's so.
Certainly the goal that we've set out before.
The number of years ago to structurally change the business. It looks like we've made a lot of progress there.
So that's what we're trying to head towards and then once we're there on a long term basis, we will see how we get higher than that.
Perfect.
Last question.
Yeah.
Looking at the floor plan balance over the past.
18 months it bounces around.
No fair amount kind of quarter to quarter, what's what's your general philosophy on.
The floor plan financing to finance inventory.
Do you want to keep more on hand with some of these.
Marine activities, you're looking at acquisition that options are out there or is it more just you got the cash widespread interest.
Financings I just want to jump lots on where that should trend as inventory maybe Bruce yes. Our floor plan is unique so we have the ability to borrow and to repay against our Floorplan, which is unique in the industry and so we certainly try to keep it as low as possible although rates are pretty darn cheap still even though rates are starting to rise you're still very cheap.
But we've not been inhibited too from an execution standpoint to really accomplish any of the growth initiatives, we want to and we're able to accomplish from buying marinas properties, which I talked about on the call and reinvesting in our facilities buying great companies with great management team.
<unk>, we do have a share repurchase plan in place all of that and we also built strength on the balance sheet. So we're in a we're in a very advantageous position to be able to kind of accomplish everything you want to do and keep that relatively the floorplan relatively low.
Got it thanks, Mike Mike Thank you.
Our next question is from the line of Michael Swartz with Truth Securities. Please proceed with your question.
Hey, guys. Good morning. This is Luke on for Mike.
Wondering if you could give any more color as to how much you expect the super yacht in both sound investments to add to our annual sales.
Yes.
<unk> is an investment that we've made so it's not going to really contribute per se to sales the way the accounting works, it's under the equity method of investment so.
That wouldn't really impacted the topline and that's just a great strategic.
Investment for Us and a great organization again, great great people with boats with great technology.
And the Super Yacht services organization.
That's a very competitive segment of the industry, we have never really disclosed how big they were when we bottom.
There are obviously growing and they are contributing to our growth.
There is still relatively small when you compare that to how big Marine matches now today north of $2 billion, but it's an important segment as Brett talked about it in some segments were going to continue to try to grow in it maybe one of these days there will be it can be big enough that we actually have a separate segment that we report on that would be that's sort of our goal hopefully to get it.
Large so it's a great part of the industry and are very up to more resilient part of the industry.
It's a.
And a very high margin part of the industry as well.
Okay. Thank you.
Thank you.
As a reminder to ask a question today you May press star one from your telephone keypad.
The next question comes from the line of James Hardiman with Citi. Please proceed with your questions.
Hey, good morning.
Just a little bit of housekeeping first.
Units versus pricing you talked about that directionally.
I think units down pricing up can you quantify those relative contribution.
And then anything you could give us on momentum within the quarter.
I guess, particularly from a units perspective, and yeah, It's April getting better getting worse.
Obviously, so much it is.
Inventory dependent but sort of any commentary on relative momentum.
I'll start off the <unk>.
The industry. If you look at the March quarter was was very negative 11%, but if you break that apart and.
When you say kind of the key categories that we play in you would say the industry was down in the high teens, 18%.
19%, something like that and Thats, all inventory availability thats not lack of demand.
Not enough product out there is what you're hearing from everybody.
Our units were down in the in the mid to high single digits is where it was down so and that's new when you look at everything combined.
New used our brokerage business and all of that stuff, we were much closer to.
To flat and then on the <unk>.
I think your next question was just cadence throughout the quarter, if I remember right and.
Our cadence just not it's not really demand related because they had strong it's product related.
I would tell you from my perspective, if I go back and look at the Mark or the January quarterly call that we did.
There were some tons that we're feeling better about the supply chain. We've just left of high unit growth December quarter.
And there is tons of things getting better I think if you fast forward less than a month from that call to the beginning of the Ukraine or that a week or two after that the China lockdowns.
It does feel like the supply chain has gotten a little a little choppy as we ended the quarter.
So that's kind of highlight answer supply chain inventory a little bit coming in are manufacturers continue to tell us where getting the.
The product.
When we look at sales units and everything right now. It continues the theme continues for the last really couple of years.
Nothing to do with demand none of the sales or unit drivers come from demand they've come from supply, whether it's a little up or a little down and how that carries through the months in the quarter and then the outlook on April so we're expecting to have positive same store sales growth.
I don't have in front of me, how thats going to breakdown between AEP and units.
I do know that were we had been tracking fairly well from a unit perspective.
Despite my commentary two seconds ago and supply chain, but the.
I think time will tell ultimately how much we get from the manufacturers and how much we can get out the door.
Got it and then sort of related question. There. So if I think about units being down in the in the March quarter guidance for the year is for for flat in units.
And so presumably that would need to accelerate it sounds like you know so far so good in the month of April , but maybe what gives you comfort in.
I'm, assuming it's a commentary on supply chain right.
Better availability for for units to accelerate particularly as you get into some of these bigger quarters.
Sure.
If you're sitting still bouncing along the bottom from a from an inventory perspective, it's probably an even bigger drag from a from a retail perspective, yes.
Yes, so our units year to date, so for the quarter, you're right. They are down but remember they were up in the December quarter. So year to date, our units are they're down slightly they are not down a lot it was down slightly.
In the back half of the year.
If you go back a couple of calls ago.
As the manufacturers ramp up production and sometimes it takes a little while to hire people train people get product and all that stuff.
They've been they've been articulated that the that the further we get into 2022, the better their ability to get us product. So.
They continue to.
Suggest better availability of product kind of as we're moving into the summer months, which is great and then that ultimately goes against where we have easier comps, we just need to see that theyre actually getting us the product.
To offset or slight decline right now through.
But through the March quarter, but they're.
They're indicating they will we just got to kind of see it I guess and get it get into the quarters.
Got it that's really helpful color, maybe one more question it seems like maybe towards the end of the queue, but.
I'm getting more questions on real estate monetization that I've gotten.
Really since the depths of the great recession.
I remember what your stance was then.
Maybe.
Revisit that is there any scenario in which you would look to.
Maybe creatively create value via via real estate.
It's a great question and having havent talked to us for all those years and hasn't been doing this for many many years, including the great recession 2008 time period.
As you May remember, we had mortgage debt outstanding on our properties when Lehman collapsed.
And within about two quarters, we created so much cash we paid off the debt, we didn't even need to create more value through our real estate.
So we're very proud of the real estate, we own. It we think it's a brilliant move when youre in a arguably a cyclical business to own real estate.
In a tougher time instead of paying rent to a landlord you pay it to yourself.
It really was a smart move during that time period, and I think it's going to be a smart move in any other time periods that comes up there's a lot of value in real estate on that that we own we bought a lot of it years and years ago.
We continue to buy it under what we think are pretty smart terms.
We spend a lot of time around it and so it's an important part of our philosophy.
An important part of our balance sheet.
We're not going to do I don't think we will do a sale leaseback, we want to keep control of these properties, but if we ever needed to we can leverage them. There's a lot of things we can do if we need to.
We've lived through two different time periods, where we did not need to do that because the company produced so much cash.
Got it makes sense. Thanks, guys. Thank you.
Our next question is from the line of David Macgregor with Longbow Research. Please proceed with your questions.
Good morning, This is Joe Nolan on for David.
I had one quick question for you guys just on what Youre seeing in terms of dealer traffic and lead generation.
And also you mentioned that the Miami and Palm Beach boat show has been pretty well. So I'm just wondering how I'll put traffic lift there as well thanks.
Yes, so we watch all of that.
Very very closely I would say, we really focus obviously on deals where contracting day over day month over month to make sure. The trends are there we're looking at inbound web traffic.
How many convert the leads how many of those are new customers, how many of your existing customers. So we're watching that.
Daily and weekly.
The demand and the traffic and everything seems to hold up well, we don't we don't monitor floor traffic and we monitor it we don't put as much weight necessarily on that because that can vary just depending on so many different types of locations but.
Web traffic and web leads are kind of your indicator and those are all holding up very very well.
And yes. The boat shows were were good.
You may comment I'll remember that.
The traffic comparisons, but they were good shows for us, but I don't remember what the promoter said I got to believe just being there that they both were were above and there wasn't really a comparison with the prior year, depending on the show because it may not happen, but but generally the industry would reflect on those shows has been very good shows and so would we.
Got it thanks.
<unk>.
Thank you at this time, we have reached end of our question and answer session I'll turn the call back to Brett Mcgill for closing remarks.
Well. Thank you everybody for joining the call as both Mike and I are available anytime if you have any questions and look forward to updating you on our next quarterly call.
Great day.
This will conclude today's conference. Thank you for your participation you may now disconnect your lines at this time.
Yeah.
Yeah.