Q3 2022 International Money Express Inc Earnings Call
Good morning, and welcome to the International Money Express third quarter 2022 earnings Conference call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.
After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two.
Please note this event is being recorded.
I would now like to turn the conference over to Mike gallon time. Please go ahead.
Good morning, and welcome to our quarterly earnings call.
I would like to remind everyone that today's call includes forward looking statements, including our 2022 guidance and actual results may differ materially from expectations.
For additional information on international money Express, which we refer to as inter Max or the company. Please see our SEC filings, including the risk factors described therein.
All forward looking statements on this call are based on assumptions and beliefs as of today.
You should not rely on our forward looking statements as predictions of future events.
Please refer to slide two of our presentation for a description of certain forward looking statements.
The company undertakes no obligation to update such information, except as required by applicable law.
On this conference call, we discuss certain non-GAAP financial measures.
<unk> required by regulation G under the Securities and Exchange Act for such non-GAAP financial measures is included in the presentation slides our earnings press release, and our annual report on Form 10-K, including reconciliation of certain non-GAAP financial measures.
The appropriate GAAP measures.
These can be obtained in the investors section of our website at intermix online Dot com.
Presenting on today's call is our chairman and Chief Executive Officer, and President, Bob, Let's see and Chief Financial Officer Andre spending.
Also on the call today are Joseph Aguilar, Chief Operating Officer, Randy Nilsen, Chief Revenue Officer, Chris Hunt, Chief Information Officer, and Marcelo Theodora O Chief Digital Officer, Let me now turn the call over to Bob.
Good morning, everyone. Thank you for joining US we appreciate your interest in Intermix, our strong growth continues as we build on our market leading position as one of the world's Premier Remittance service companies.
On slide three the company achieved record performance during the third quarter in every way we measure success told.
Total remittances revenue net income and adjusted EBITDA, All set records in the quarter.
The number of customers total dollar cent and the market share all reached new highs. This strong performance reflects the company's ability to sustain exceptional growth that our unique omnichannel business model affords us intermix remains one of the fastest growing companies in the sector.
We are creating tremendous value for shareholders by delivering on our highly strategic and very profitable business plan.
We are focused on maximizing the performance of our existing base of highly productive retail agents like carefully and strategically expanding our presence and opportunities Zip codes through high volume neighborhood retailers. We do this intelligently and profitably as we advance the development of our state of the art digital offering.
We provide customers with the choice to send money home to their loved ones by any means they choose ultimately delivering convenience and most importantly choice.
Strategy is clearly working.
Intermix is outperforming its peers in topline and profitability growth and the company continues to capture market share at an impressive rate outpacing the growth of the market overall.
On slide four and the four key markets of Mexico, Guatemala, El Salvador, and Honduras, collectively which account for 75% of all money transfer from the U S to Latin America. The market grew by a very healthy 13% during third quarter.
<unk> continued to grow faster than the market, reaching a market share of more than 22% an accomplishment. We are very proud of and a growth trend we will work hard to sustain.
As you see on slide five with the U S portion of the National transaction completed intermix as a market leader in all top five Latin American and Caribbean markets, adding Dominican Republic to our portfolio, if we add in Nicaragua, and Ecuador into the mix. These countries collectively represent 87% of all money sent.
The region from the U S. In aggregate, we have more than a 20% market share in these key corridors and we continue to grow.
On slide six on the digital front, our consumer facing mobile apps and online platform continue to grow in triple digits.
Consumer acceptance of our digital platform and services is increasing and we're achieving this efficiently and profitably.
We have grown the total number of transactions that are positive directly into bank accounts to 28% as a result, expanding our digital penetration on the receive side.
The adoption rate of our mobile App that we launched earlier this year is showing great promise. The app combines the best features of choice and ease of use allowing the consumer using their smartphone to select between the best transaction fee speed of delivery, our exchange rate to suit their preferences.
We see a tremendous opportunity to empower our customers to participate in the E. Commerce economy that includes products such as our general purpose reloadable card, which bridges the gap for customers, who have easy access to digital platforms and devices, but not necessarily to banks.
As we improve the digital consumer experience, we're keeping a close eye on unit economics with the intent of maintaining healthy gross margins. We continue to leverage our strong brand equity in Latin America community to drive our growth in digital online transactions.
Another important component of our strategy is the investment we're making to upgrade our proprietary enterprise wide technology platform.
I'm, making software and hardware upgrades that will enable the rapid rollout of new products and continuous improvement of the consumer experience at our thousands of agent locations across the U S. While enhancing our digital offering as well.
We have been rolling out our Amex direct software package, which is our retail technology, along with new upgraded hardware that will simplify the wire transaction process for our neighborhood retail agents and enable them to complete transactions, even more quickly than they did before while upgrading our AML capabilities.
Many of our agents manage small retail establishment with limited staff and by necessity have to multitask, making it easier for them to complete transactions enables them to focus more on their core business, which also provides faster counter service for our consumers.
IMAX connect unifies all the company's retail software mobile and online applications on a single enterprise integration platform. The system upgrades fully integrate all consumer facing b to B digital offerings streamlining the development a rollout of new digital <unk>.
The improvements will enable the onboarding and activation of new digital customers and cross selling across all of our product lines.
We expect our retail agents to be converted to the new platform by the end of the second quarter of next year. There are those who have already made the transition. We're seeing early indications that the upgrades are facilitating a sale of more transactions at a greater speed.
Through this combination of hardware and software development, we're solidifying our competitive advantage is preferred remittance provider for our retail partners.
This is important because our retail network drives large transaction volumes that are very profitable margin, while delivering an excellent return on investment.
We have developed this growing network of highly efficient best in class agents through our strategic approach to agent selection development. It.
It requires time and a lot of hard work, which makes it difficult for new or existing competitors to infiltrate and replicate.
On slide seven expanding our agent network is one of the keys the company's long term success. The opportunity. We see ahead for the retail side of our business is significant Ah.
Our retail network is a dominant presence in the industry and provides <unk> with an exceptional baseline for growth that includes both same store organic growth from our existing agents and the growth we generate by carefully recruiting the best high performing targeted retailers.
We have been consistently expanding our retail network by recruiting high performance retailers throughout the country by Zip code.
The largest opportunities exist in the western United States, we focus on ZIP codes with the largest foreign born population of Latin Americans that.
That strategy resulted in a 9% increase in year over year growth in the number of intermix agents during third quarter.
Each of our new agents is carefully recruited in neighborhoods convenient to our customers live work and transact business.
Fully understand the growth potential of our retail business is important to remember that the vast majority of our intermix customers are paid either in cash or by paper check.
Most are unbanked traditional retail banks are often not conveniently located do not always welcome to consumer with the same cost effective convenient personal finance solutions and cultural fit that our agent network can provide on page eight as easy and convenient for our customers to drop either local retailer cast their check and send money.
Paul.
It is an environment that they are comfortable and familiar with and they are transacting business with someone they trust and in their native language.
Our attention to personalize best in class customer service combined with scalable proprietary technology that powers. Our business is why intermix stands out from its peers intermix is the only omnichannel remittance provider that continues to grow revenue and profitability through our retail network each and.
Every quarter by more than double digits, while achieving triple digit growth in our digital online division year over year. We believe this omnichannel strategy and willingness to meet the consumer where they choose combined with our customer service approach in World class technology place Intermix in an excellent position to continue.
To grow and flourish for many years to come with that I'll turn the call over to Andrew.
Thank you Bob and good morning, everyone I'm sure by now you've had a chance to read through our press release index. So I'll just go over some of the operating performance highlights and provide a little more detail and context around our third quarter results.
The positive results we reported this morning underscore the clear competitive advantage, we've created at air Max We continue to outpace the market and Theyre doing markedly better than our competitors with sustained strong pricing and margins are.
Our consistent outperformance demonstrates the effectiveness of our operating efficiencies and the intelligent investments, we're making in people innovative new products and scalable technologies. We believe the strong growth of the company is achieving a sustainable driven by expansion of the companys growing ecosystem of neighborhood retail agents are focused.
On agent productivity and performance and the accelerating rollout of new digital products, we fully expect to continue to significantly outperform in the sector as we've done historically.
On slide eight building off the strength of our retail business. The number of unique active customers grew 11% in the third quarter that customer growth generated a record 12 million remittance transactions, 16% more than a year ago.
Contributing to the growth in total remittances was a 110% increase in digitally originated transactions as customer acceptance of our mobile App continued at a triple digit pace.
On slide nine you can see these fundamentals driving a 17% increase in total principal transferred to $5 5 billion for the three months period. The average remittance amount was up just slightly at $450 per transaction.
With the strategy of capturing share through efficiency technology and service. The company has continued to grow faster than the markets in which we compete and as Bob noted, adding one nasional is U S based business to the mix increases our presence in the Dominican Republic, now, making us a market leader in the key markets that account for 87.
Percent of U S outbound money transfers to Latin America.
On slide 10, when we look at the topline agent growth and customer growth all contributed to the 16, 6% year over year growth in revenue, which reached $140 8 million during the third quarter.
As always we're focused on unit economics with a laser focus on efficiency within our business. We continue to have success, leveraging our growth to better manage banking and payer fees. While we continue to smartly structure agent incentives, so intermix and our agent partners both win.
Additionally, we're thoughtfully pacing spend around App and online offerings to match or stay ahead of consumer acceptance. We believe in a rational unit economics, and keeping a tight pulse on customer behavior. So we prudently allocate spend wherever we believe the economics best supported.
As a result, combined with the strong growth and efficient topline growth third quarter net income grew 44, 5% to $16 6 million.
The growth in net income also reflects measured increases in salaries general and administrative expenses and higher interest expense, partially offset by lower amortization cost for the quarter.
We also had three exceptional items. This quarter you would have read about in the press release.
First an additional $1 6 million provision on the reserve, we took a year ago on a closed Mexican banking partner.
Next a $1 $1 million charge coming from updated vesting assumptions for one of our PSU grants and.
And finally, a $2 $9 million tax benefit arising from equity awards exercised during the third quarter.
Moving on to page 11, adjusted EBITDA increased 21, 5% to $27 8 million and adjusted net income increased 32, 3% to $20 7 million.
Both of these measures benefit from what we discussed previously strong revenue growth operating efficiencies and focused cost management.
These measures would of course exclude the additional reserve for the Mexican banking partner and the charge related to the update investing assumptions I mentioned a moment ago.
Turning to the balance sheet and cash intermix continues to be an efficient operator and strong generator of cash. The company ended the third quarter with $105 million in cash and an undrawn revolver position of $107 million, we always underscore that our cash position depends on the day of the week of the close in this quarter we closed on.
Friday, when our cash needs are at their peak. However, any way you look at it we have great liquidity and a balance sheet that is in excellent shape.
Net free cash generated our internal measure, which removes balance sheet cyclicality remains strong with over 67% of EBITDA converted to cash.
During the third quarter, we completed the repurchase of one 2 million shares from one of our beneficial stockholders at a price of $23 50 per share the negotiated transaction totaling $26 $7 million was paid for out of cash on hand, we view the transaction as an excellent use of capital.
That supported value for shareholders. It's also worth mentioning that we are in the late stages of amending our credit facility. So we expect to have additional capacity to execute buybacks opportunistically and when it makes sense for our shareholders.
A quick update on the Lat Lon National transaction as we noted in our press release last week, we chose to execute a split close complete in the U S portion of the transaction last week, while we continue to work to finish the EU regulatory process, which will take a little longer all the U S change of controls approvals were in place allowed.
US to close on that portion of the business now rather than having to wait.
We're looking forward to closing on the European business in the coming months, we closed the U S land us in our business for cash and we feel it is a solid investment that would help us continue to drive growing shareholder returns.
As you saw in this morning's press release, we reaffirmed our full year guidance to recap guidance, we expect revenue to be in the 542 million to $551 million range net income of 60 million to $61 million adjusted net income of $68 million to $69 million.
And adjusted EBITDA in the $104 million to $106 million range, so great momentum for intermix and its shareholders with that I'll turn it over to the operator for questions.
Thank you we will now begin our question and answer session to ask a question you May Press Star then one on your touch.
If youre using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Okay.
And the first question will be from David Scharf with JMP Securities. Please go ahead.
Hey, good morning, and thanks for taking my questions.
Maybe just.
Two for you.
Bob The first I'm guessing is a question you've been getting.
A fair amount lately and you're tired of responding to but I'm going to ask anyway and it regards.
Some of the commentary coming out of Western Union, a few weeks ago at their investor event.
On.
More aggressive pricing actions they plan on taking it.
It sounded like it was framed primarily to kind of reaccelerate their digital growth but.
Obviously, there's always the risk of sort of expands to their broader.
In person business as well so in general.
Or are you seeing any noticeable changes either now or on the horizon in the Latam markets now in the broader you know pricing front, recognizing intermix does not compete based on price, but nevertheless, just wanted to sort of.
Get a sense for whether it's something that.
We might be encountering during 'twenty three.
Well you know.
I don't necessarily want to comment on Western Union strategy, but.
There is subsidiary Vigo, which happens to be the company that.
My partners and I sold them years ago is it has been in recent years, probably the deepest discounted in the marketplace. So there isn't really much room.
For them to do much related to price as it competes with us in the retailers, we compete against Western Union in the.
The Western Union yellow and black is typically in the big box stores, we don't compete with them at retail very often so it's really legal that's out there in the mom and Pops ZIP code by ZIP code, where the ethnic population access and they've been a deep discounted for years and I would say I doubt that there is much room for them to discount much more.
Befuddled, sometimes by the pricing they have and it hasnt really been a.
Is it like other discounters has not been as big a problem as you might think because of the value added proposition that we built the superiority of our technology. The superiority of our customer service I mean, where still we test it all the time picking up the customer service line and four seconds, where other competitors are in the minutes.
And longer.
The quality of the technology in terms of its its ease of use the speed of us how quickly one transaction in front of a customer works. So all of those things have held up very well already to that deep discounting and I think we've seen a lot of it already from the folks that you indicated through their V go brand.
Got it yeah that's.
Very helpful.
The color.
I think we sometimes forget you really don't compete with the core Western Union brand in V go by the way, it's their core to Latin Americas I would understand it again I'm not an expert on Western Union, but you asked the question I'll try to be as helpful. As I can.
But I would think V go is their core to Latin America, because the immigrant population is in the neighborhoods and that's where our Vigo competes but we certainly deep discounters can cause a challenge at times, but the quality of the product. Ultimately also has a lot to do with it and we've been living in that world for <unk>.
A long period of time and been able to compete against that with the superiority at the sphere offering we have from a lot of perspectives that I mentioned to you and Theres more.
David This is Andrew said I'd add if you looked at the margins year over year for the third quarter, we held up really well so certainly not seeing anything right now that is concerned.
Yeah.
Just as a.
Follow up.
Speaking of emergency.
Average remittance size is starting to sort of flatten out on a year over year basis, and I realize the comps are difficult to you you went through a period last year, where there was a significant tailwind and it was helped by obviously.
Horizon.
The dollar versus the.
The Mexican peso primarily Andrew.
I'm wondering.
Yeah.
Yes.
Should we interpret sort of the topping off of that average send.
It's really just a reflection of you know the comps getting tougher.
Not a whole lot of currency movements. Since then or do you sort of look at that metric internally as one of the potential leading indicators.
Of consumer health.
You know potentially the impact of inflation and how much you know disposable income to remit back home is leftover.
Hum.
How should we primarily be looking at that metric.
Yeah, I wouldn't say, we've looked at it as a as a indicator of of consumer health I think there are other things that we keep an eye on to them to go and.
Get a sense of what will take in terms of credit losses, but you know I I would just make into we.
We didn't count on that rise going on forever. There was a lot of stimulus in the economy.
You know I would say in our guidance, we've actually quite conservatively baked in about 2% of that principal coming down in the fourth quarter to be on the safe side, but we don't see that as an indicator of a of credit concerns at this point that I think we've been even this year. When we originally issued guidance. This year, we did keep principal.
Flat just because it was such an outsized growth last year, but if it came down a bit we've kind of planned for that.
Perfect.
Thanks, so much ill get back in queue.
Sure.
And our next question is from Mike Grondahl with Northland Securities. Please go ahead.
Hey, Thanks, guys.
The first question.
Bob.
I am excite connect it kind of sounds like an upgraded platform or processing system and you made it sound like the early indications were pretty good.
Ultimately when you get that rolled out by two Q 'twenty three.
Any way you can roughly broadly quantify what you think the pick up in transactions could be or the enhancement in speed just trying to think through the benefits of that.
Yeah.
I think.
First of all I'm.
It's a little faster.
It incorporates a greater accessibility to our ancillary products. So our things like our check direct makes it easier to operate Chuck direct and also to sell things that we might sell on an ancillary basis with the retailer like money orders and bill.
Bill payment. It also enhances our AML capabilities, which is really important it puts us in a better position.
To remain ahead of the regulations in certain states that might have certain regulations related to certain ancillary products.
As far as driving we early stages now we've seen a little bit of an increase a little separation from the core agents with those that we put the new software in but its too early to say that it's going to drive a lot more wires.
It's clearly we know that one of the advantages we have in retail is our ease of use and the speed of how we process so putting a brand new.
Unit.
Hardware in front of an agent location front of that that retailer in front of that.
Along with easier and faster you software is certainly going to be beneficial we haven't baked into any existing growth from that we see that as just an overall didn't make the business better ancillary products and really and I'll have Chris comment a little bit Chris <unk>.
CIO and how that really brings together all of what we're doing the whole system, both digital and retail so Chris you want to talk a little bit I think we will clarify a couple of things first off Theres Intermix direct which is the agency retail software, which is discussed and then we've got <unk> connect which is really our integration platform. So we see.
The better part of a year since I got here and really modernizing our backend.
And unifying everything that we're going to be delivering our software and technology platforms on I think that <unk> connect it's what we're building amex direct on our mobile platform and ultimately will extend into the Marcellus strategy and offering those as services, which we have not done at the company, yet so really providing an enterprise ready integration platform.
<unk> not only for ourselves, but for any third party in <unk> services, we can offer in the future.
Got it got it.
And maybe my second question.
I think you guys said with one as you know you closed the U S part of it.
European close is gonna be a little bit delayed.
Can you kind of break out the revenues between the U S piece and the European piece just.
How do we think through that.
I'm kind of asking in relation to the guidance being reiterated.
Would have expected, maybe a little bit of kiss to the guidance from the acquisition, but maybe it's because you're only closed part of it.
But Mike I'd say this is andrus, we couldnt close part of the acquisition, we only closed it for part of the quarter were.
We're not going to be breaking out as a separate reporting unit. So we're not going to deliver that next level of detail that you're asking for I I would just say, though for the quarter. We did reiterate our guidance with part of the acquisition in for part of the quarter, which wasn't which isn't.
Terribly material.
But I'd say if look at our guidance over the.
For the past several years and I think if we there's a good chance that we could end up on the higher end of that guidance things go well, we could we could beat it.
So I'd say at this point, we're comfortable with part of the acquisition and for part of the quarter reaffirming our guidance and we'll see how we go yes, and just add to that Mike I think all along we've said with the national acquisition and talking about both sides of it the U S side and the international piece that it will take a period of time for us to kind of.
Get our arms around that and that it will bring in some revenue, but the EBITDA will be kind of something we're working through as we sort of.
Create the same kind of metrics and the same kind of operating procedures and the same kind of right sizing that we have and intermix. So for the only being part of the quarter and only part of the acquisition. That's why you don't see.
Noticeably any bump from it.
But.
Over time, that's going to become a bigger contributor both at the topline and at the bottom line as well, but again, just part of the quarter and not the whole acquisition and also just us really beginning to get our arms around it from an operations perspective, remember, we kind of understood the business well from a due diligence perspective, but not able to operate actually operate.
And that's just started now.
Got it fair fair.
Hey, Thanks, guys.
Thank you.
And the next question is from Tim Chayote, Joe from Credit Suisse. Please go ahead.
Great. Thanks, a lot. Good morning also a question related to something that Western Union recently mentioned that we actually mentioned on their earnings call that it did seem like they were attempting to in some ways rep repeat your approach of going after the high quality agents and we mentioned on their earnings call, but that's been a very successful strategy for inter Max.
Are they in.
Their approach to attempting to go after those same locations I know you've mentioned in the past that you don't require exclusivity you're happy to be alongside other competitors and compete but just if you have a sense of what portion of your agent locations in the U S.
Our operating only sort of exclusive with you and.
Or what portion of them are having other competitors alongside in the same retail location just by their choice it realize its not demanded by contract.
Yes so.
And the industry wide not just our agents, but an industry wide you'd have a really hard time.
Other than big box stores, and even match changing finding exclusive retailers. It's just it's dying breed there are almost none of them our own corporate stores are exclusive but.
When you look at any buddies agents, whether it's.
Any of the competitors don't want and then not to mention names here. They are all going to have more than one and typically two or three competitors per retailer.
Again, I don't want to spend a lot of time, commenting on western Union, you're asking the question, it's not our place to comment on them. It's their business, but we faced head to head competition from Vigo Division again that I mentioned earlier than I know well.
I was part of the group that bought that from the initial owner and then sold it to Western Union and that is a very aggressive brand today at retail and is a very what we would refer to as more of a discounter, they're not a value added service and the way we compete with that service as we.
Do any other discounter is as our main Val.
Values are is that we're a value added provider and that is through a number of things that we do better than those competitors that only offer a pricing discount and.
And it would certainly hold true with the <unk> brand of Western Union.
Our customer service.
Qualities, we pick up the customer service line and four seconds.
Our ability to be able to process face to face transaction much faster our technology versus the competitors the availability availability of us providing bank accounts, our check direct products. So we go through that whole list and this isn't new to us.
Anybody can talk about coming in and competing at retail and then the ZIP codes. The fact is that that brand is already there that brand is theyre very very aggressively and very much a discounter I don't think there'd be much room for them to discount anymore than where they are with their vigo brands. So.
It's not news to us.
I'm not sure what they mean by you'd be better off asking them than us, but we feel like we've been holding up to the discounting challenge for for really literally decades between this business and back when we owned the Vigo Veeco was a value added provider until Western Union bought it and then it became a discounter so we feel.
Like we have the right prescription to be able to compete against people that are discounting at retail and the consumer makes the choice in the retailer makes the choice.
Great. Thank you for taking the question.
Okay.
Thank you.
It appears our last question today will be from the line of Alex Mark Graf with Keybanc capital markets and if you should happen to need to ask another question. Please press star one thank you.
Hey, Thanks for taking my questions. This morning.
Actually maybe just a couple first around agent location growth.
I think this quarter the growth rate was a bit of it I don't know call. It stepped down to the high single digit range from low single, sorry, low double digit in prior quarters.
Just a couple of questions here, maybe how does that sorry, you said it was low double digits.
And what was in the middle.
I just wanted to be clear because it wasn't yes, yes more than 50%.
Each agent growth I'm, sorry, I thought you were talking about okay got it got it go ahead.
That's good agent growth call it 9%.
More kind of a low double digit range in prior quarters, just curious how that compares to internal expectations and how we should be thinking about that agent growth rate going forward and I know you don't.
Sure the absolute number of agent locations, but any color would be helpful. I don't know if that yeah. Our focus is on large numbers coming in or.
Our focus has always been an agent performance and not necessarily on the number of agents. So our focus is much more on their productivity I mean, adding agents is really easy.
Could add another we could add 15% more agents, but the question is how productive would they be.
So today.
Pretty sure that we have the most productive agents in the industry, we don't disclose that number but it's many times. We believe the average in terms of the industry and so that's really our focus.
We would our number of agents added has gone up and down over time, but the really the key factor that we're looking at is the cohort group in terms of new wires that are new agent universe is bringing in and then focused on the agents that are relatively new and those that are in year, two and year, three and driving new wires.
Those locations.
Okay.
That's helpful.
And then maybe just switching over to IMAX had direct.
The upgrade there I'm.
I am wondering how impactful you all see that skew sales team effectiveness just kind of may.
Maybe helpful to describe on the sales team is out.
Working with kind of potential new agents, what are some of the key challenges that they're facing today and how.
How do you see this tech upgrade making effectiveness greater that sales team.
Right.
Yeah.
Things, let me if I may just add a little perspective to your first question. If we compare the results of our new agents added Q3 this year versus the same quarter last year, we had slightly more salespeople on the street selling and they're deliverable was slightly higher than last year. So Q3 is typically.
A quarter, where there's a lot of sales reps on vacation and not typically working as consistently as they do some of the other quarter. So.
Don't take that as less productive, but Bob really makes it.
The most important point, there, which is we are far more focused on how many wires are being sold out of our new store agents then how many new agents did we add and likewise Q3. This year versus Q3 last year that group of new agents 12 months or less or more productive. So.
That's I think that's the right perspective to have with respect to your second question.
We've been rolling out the new software to our new agents for quite some time now that really was our testbed, we and it's been well received right from the very beginning so.
That has been going I think Chris for over a year now.
And very very successful.
I just I'll just add that now as we rollout the phase two existing agents. We are tracking I think Mike asked the question are we going to have more productivity out of our current agents.
Software or just to the point now we've got a big enough base that we're serving those agents were understanding what they are.
What their real thoughts are in terms of are they going to use it more or less.
Okay.
We think it will be comfortable with.
Yeah.
Okay and thanks for the color on that initial contract as well.
Yes.
Ladies and gentlemen at this time, we have no further questions. So I would like to turn the conference back over to Bob Lucy for any closing remarks.
Thank you all for joining US again, we appreciate your time and we'll look forward to talking to you. All soon have a great day. Thank.
Thank you Sir the conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Yeah.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
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