Q1 2024 Dycom Industries Inc Earnings Call
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Incorporated Q1, 2024 results conference call.
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Please be advised that today's conference call is being recorded I would now like to here in the conference over to Mr. Steven Nielsen President and Chief Executive Officer. Please go ahead Sir.
Thank you operator, good morning, everyone. Thank you for attending this conference call to review, our first quarter fiscal 'twenty 'twenty four results going to slide two.
During this call we will be referring to a slide presentation, which can be found on our website's Investor Center main page.
Slides will be identified by number throughout our presentation.
Today, we have on the call drew that Ferrari, our Chief Financial Officer, and Ryan Urness, Our general counsel.
Now I will turn the call over to Ryan or Dash.
Thank you Steve.
All forward looking statements made during this conference call are provided pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Forward looking statements include all comments, reflecting our expectations assumptions or beliefs about future events or performance that do not relate solely to historical periods.
These forward looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from our current projections.
Those risks described in our annual report on Form 10-K filed March three 2023, together with our other filings with the U S Securities and Exchange Commission.
Forward looking statements are made solely as of the original broadcast date of this conference call and we assume no obligation to update any forward looking statements Steve.
Thanks Ryan.
Moving to slide four and a review of our first quarter results as we review our results. Please note that in our comments today and then the accompanying slides we reference certain non-GAAP measures. We refer you to the quarterly report section of our website for a reconciliation of these non-GAAP measures to their corresponding GAAP measures.
After the quarter.
Revenue was one that 045 billion, an organic increase of 19, 3%.
As we deploy gigabit wireline networks wireless wireline converged networks and wireless networks. This.
Reflected an increase in demand from four of our top five customers.
Gross margin was 18, 4% of revenue and increased 348 basis points compared to the first quarter of fiscal 2023.
General and administrative expenses were seven 9% of revenue at all of these factors produced adjusted EBITDA of $113 5 billion or 10, 9% of revenue and earnings per share of $1 73, compared to <unk> 65 cents in the year ago quarter.
Liquidity was strong at $673 9 million.
During the quarter, we repurchased 225000 shares of our common stock now.
Now going to slide five.
Today major industry participants are constructing or upgrading significant wireline networks across broad sections of the country. These wireline networks are generally designed to provision gigabit network speeds to individual consumers and businesses either directly or wirelessly using <unk> technologies.
Industry participants have stated their belief that a single high capacity fiber network can most cost effectively deliver services to both consumers and businesses, enabling multiple revenue streams from a single investment.
This view is increasing the appetite for fiber deployments and we believe that the industry effort to deploy high capacity fiber networks continues to meaningfully broaden the set of opportunities for our industry.
E increasing access to high capacity telecommunications continues to be crucial to society, especially for rural America, the infrastructure investment and job tax includes over $40 billion for the construction of rural communications networks, and Unserved and underserved areas across the country.
This represents an unprecedented level of support and.
In addition, substantially all states have commenced programs that will provide funding for telecommunications networks, even prior to the initiation of funding under the infrastructure Act.
We are providing program management planning engineering and design aerial underground and wireless construction and fulfillment services for gigabit deployments.
These services are being provided across the country and numerous geographic areas to multiple customers.
These deployments include networks, consisting entirely of wired network elements and converged wireless wireline multi use networks.
<unk> network deployment opportunities are increasing in rural America, as new industry participants respond to emerging societal initiatives.
We continue to provide integrated planning engineering and design procurement and construction and maintenance services to several industry participants.
<unk> economic conditions, including those impacting the cost of capital may influence the execution of some industry plants. In addition, the market for labor remains tight in many regions around the country.
Automotive and equipment supply chains remain challenged particularly for the large truck chassis required for specialty equipment.
Prices for capital equipment continue to increase it remains to be seen how long these conditions may persist.
We expect demand to continue to fluctuate amongst customers, including several customers, whose deployments are accelerating into the second half of the year offset in part by two customers, whose capital expenditures have been more heavily weighted to the first half of this year.
Within this context, we remain confident that our scale and financial strength position us well to deliver valuable service to our customers.
Moving to slide six during.
During the quarter revenue increased 19, 3% our top five customers combined produced 65, 5% of revenue increasing 27% organically.
<unk> increased from four of our top five customers.
All other customers increased 16, 7% organically.
AT&T was our largest customer at 21, 5% of total revenue or $224 4 million.
Lumen was our second largest customer at 13% of revenue or $136 4 million lumen.
Lumen grew organically, 74%, excluding operation showed the bright speed from the year ago period.
This was our fifth consecutive quarter of organic growth with lumen.
Revenue from Comcast was $120 6 million or 11, 5% of revenue Comcast was <unk> third largest customer grew organically eight 4%.
Frontier was our fourth largest customer at $103 2 million or nine 9% of revenue.
Frontier grew 82% organically.
And finally, Verizon was our fifth largest customer at 99.9 billion or nine 6% of revenue.
<unk> grew 23, 4% organically.
This was our third quarter of organic growth with Verizon.
This is the fourth consecutive quarter, where our top five customers grew organically in excess of 20% and the 17th consecutive quarter, where all of our other customers in aggregate, excluding the top five customers have grown organically.
Fiber construction revenue from electric utilities was $83 5 million in the quarter and increased organically, 20% year over year.
We have extended our geographic reach and expanded our program management network planning services in fact over the last several years. We believe we have meaningfully increased the long term value of our maintenance and operations business, a trend, which we believe will parallel our deployment of gigabit wireline direct and wireless.
Wireline converged networks.
As those deployments dramatically increase the amount of outside plant network that must be extended and maintained.
Now going to slide seven.
Log at the end of the first quarter was 6.316 billion versus $6 141 billion at the end of the January 2023 quarter, an increase of $175 million.
Of this backlog of approximately $3 four a $2 billion is expected to be completed in the next 12 months.
Backlog activity during the first quarter reflects solid performance as we book New work and renewed existing work, we continue to anticipate substantial future opportunities across a broad array of our customers.
During the quarter, we received from frontier of construction and maintenance agreement in Wisconsin for charter Rural fiber construction agreements in Indiana, and North Carolina, and construction agreements in California, and Nevada, and Montana from various rural providers Rural fiber construction agreements in Washington, Oregon, Minnesota, Wisconsin.
Missouri and Kentucky.
And various utility line locating agreements in California, Indiana, and New Jersey head Count was 15375.
Now I will turn the call over to drew for his financial review and outlook, Thanks, Steve and good morning, everyone.
Going to slide eight.
Contract revenues were 1.045 billion and organic revenue increased 19, 3%.
Adjusted EBITDA was $113 5 million or 10, 9% of revenue compared to $63 7 million or seven 3% of revenue.
The adjusted EBITDA percentage increased 359 basis points compared to Q1 'twenty three.
And this exceeded the midpoint of our expectations by approximately 190 basis points.
Drivers of this outperformance compared to our expectations were approximately 100 110 basis points of gross margin and approximately 80 basis points of G&A expense, resulting from improved operating leverage and performance on the higher level of revenue in the quarter.
Gross margin was 18, 4% of revenue compared to 14, 9% in Q1 'twenty three.
G&A expense was seven 9% of revenue in line with Q1 'twenty three.
Net income was $1 73 per share compared to <unk> 65 per share in Q1 last year.
The increase in earnings reflects higher adjusted EBITDA, lower amortization and higher gains on asset sales, partially offset by higher depreciation stock based compensation interest expense and taxes.
Going to slide nine.
Our financial position and balance sheet remains strong we ended Q1 with $500 million of senior notes $328 1 million of term loan and no revolver borrowings cash.
Cash and equivalents were $71 4 million in liquidity was strong at $673 9 million.
Our capital allocation prioritizes organic growth, followed by opportunistic share repurchases and M&A within the context of our historical range of net leverage.
Going to slide 10.
Cash flows used in operating activities were $85 1 million to support the sequential growth in Q1.
Capital expenditures were $33 6 million net of disposal proceeds and gross Capex was $42 9 million.
During Q1, we repurchased 225000 shares of our common stock for $23 million.
The combined Dsos of accounts receivable and net contract assets was 106 days a reduction of two days sequentially as we had solid collections from customers during the quarter.
Going to slide 11, as we look ahead to the quarter ending July 29, 2023, we expect contract revenues to increase mid single digits as a percentage of contract revenues compared to Q2 of last year.
And non-GAAP adjusted EBITDA percentage of contract revenues to increase 50 to 100 basis points as compared to Q2 2023.
We also expect $12 2 million of net interest expense.
A 26% effective income tax rate and $29 7 million diluted shares now I will turn the call back to Steve. Thanks drew moving to slide 12.
This quarter, we experienced solid activity and capitalized on our significant strengths first and foremost we maintained significant customer presence throughout our markets. We are encouraged by the breadth in our business. Our extensive market presence has allowed us to be at the forefront of evolving industry opportunities.
The phone companies are deploying fiber to the home to enable gigabit high speed connections increasingly rural electric utilities are doing to say.
Dramatically increased speeds for consumers are being provisioned and consumer data usage is growing particularly upstream.
Wireless construction activity in support of newly available spectrum bands continues this year.
Federal and state support for rural deployments of communications networks is dramatically increasing in scale and duration.
Cable operators are increasing fiber deployments in rural America capacity expansion projects are underway cut.
Customers are consolidating supply chains, creating opportunities for market share growth and increasing the long term value of our maintenance and operations business.
As our nation and industry navigate economic uncertainty, we remain encouraged that a substantial number of our customers are committed to multiyear capital spending initiatives. We are confident in our strategies the prospects for our company the capabilities of our dedicated employees and the experience of our management team.
Now operator, we will open the call for questions.
Thank you and as a reminder, if you would like to ask a question. Please press star.
One one on your telephone.
Again, we also ask that you. Please wait for your name to be announced before you ask your question.
First question will come from Steven Fisher with UBS. Your line is open.
Thanks, Good morning, and congratulations on a very nice results in the quarter.
Steve what do you make of some of these customers front end loading versus some that are accelerating.
I into the second half to what extent do you think this is all just very O. It is idiosyncratic to each of these customers versus there being any particular message implied about sort of confidence in the overall outlook for investment.
Yes, sure Steve So I think for those that are moderating into the second half of the year. Both have spoken recently at conferences and talked about how much work they were able to get done in the fourth calendar in the first calendar quarter and so I think that they were pleased with the amount of work that they were able to do it.
And so they have a.
What more moderate outlook going into the second half of the year I think thats offset.
By the number of customers who were ramping in the first half of this year.
With aggressive goals for increases year over year.
Where the activity is picking up one thing Steve that perhaps to give you a little more granularity.
If you if you exclude those costs those two customers from from the rest of the customers and take a look at sequentially.
The growth in the rest of the customers in line with what we saw or maybe even a little bit better than what we saw last year.
So.
I didn't use the word idiosyncratic, but there are always factors that are going to cause some customers to vary around the trend line in a program that's.
In a theme that this big and of such an extended duration.
Okay. So it doesn't necessarily change your view of what Hilton just a little bit of near term shift in timing it sounds like.
And in both cases, I think that those customers have reiterated their commitment to plans I've talked about what they'd like to get done next year and I think we will see a more normalized spending pattern next year.
The weather last winter caused a little bit of change the seasonality, depending on where a particular customer was in the ramp up of their program.
Okay, and then just a follow up in terms of the margins are there any specific drag that you are anticipating or already seeing in Q2.
And how likely are these drags.
To sustain into the second half of the year.
About.
What the right consensus numbers are but it seems like consensus is already showing a 160 basis points of improvement year over year in Q3.
And so.
If we're running at 50 to 100 for Q2.
Is that sort of the way, we should be thinking about what the potential is or.
So are there any near term drag to be aware of and how does that kind of factor into the second half thinking at this point.
So so Steve again, because we've had in the in the near term. We've had this moderation with a couple of customers that we've got to work our way through as the other customers are growing we're taking a prudent view on the current quarter I mean, we looked at the EPS consensus. This morning, it looked achievable for Q2.
And you know where we're at.
We're hopeful that as we work through all of this a little bit of fluctuation.
That.
The earnings power of the company is improving if you looked over the last four quarters. Adjusted EBITDA was 10, 5% that was the first time since 2019.
We're working hard to improve it from there.
But we do think we're on a path to greater earnings power is.
We put some headwinds that we've been dealing with for a while behind us.
Thanks, Steve I appreciate it.
Thank you one moment, while we get ready for the next question.
And again as a reminder, please.
Please wait for your name to be announced before you proceed with your question.
And the next question is coming from Alan.
Tal Hymer Thompson Davis your line is open.
Hey, good morning, guys great quarter.
Good morning, Tad up.
Thanks, Steve.
Uh huh.
I wanted to ask first on bright speed was there any project revenue.
In the Q1 sales figure was that all maintenance that would have been done diluted.
You know there was a lot of growth with both bright speed and lumen edge predominantly around their fiber programs. We are working hard to meet their expectations and they'd like to get a lot of work done.
And.
Question on Giga power is that.
What's your outlook for that and would that revenue flows through AT&T or would you flow that through all other.
Hey, Adam I don't know that we have anything to say specifically about about that other than to say we're encouraged when there are new.
Sources of capital that are attracted to the industry and there is there is lots of capital.
Flowing to support these built.
And then just lastly on bead funding and timing of spend do you have any thoughts on that.
The last the last that I saw.
I still expect the map to come out by the end of June .
Depending on when that settles there'll be an allocation of monies.
The states.
And I think by the end of the year, we'll have much better clarity around timing I think what's important to note about bead. Adam is it's really just one of a whole host of sources public capital that's flowing into the business.
So you have projects still funded by the cares Act, which was I think April of 2020, ARPA, which was April of 2021 art off that came out in the first quarter 'twenty. One at a number of states have pretty substantial broadband funds and so for US I think it's just eight another source of.
Government support.
For a very big theme, that's going to play out over a significant number of years.
Thanks, Steve.
Thank you one moment, while we prepare for the next question.
And please wait for your name to be pronounced before you proceed with your question next question will be coming from Alex Rygiel.
B Riley your line is open.
Good morning, Steve very nice quarter. Thanks.
Thanks Alan.
In the past you've talked about the duration of new contracts were shorter and historically managed this.
Trend continued and can you discuss the impact on gross margins.
I think what we said when we saw when we were seeing lots of price pressures.
And the general economy, we were somewhat cautious to extend durations on agreements because we wanted to make sure that we didn't put ourselves in a position where.
Because of inflationary pressure, we couldnt deliver for the customer I think as we talked about last quarter, it's still not an easy environment, but it's not as bad as it was and so I think.
As long as we get the appropriate pricing.
That our outlook on duration is probably a little more constructive than it was when fuel was $7 a gallon in California and in wages were moving up pretty rapidly now.
Labor is still tight it's a sub 4% unemployment world but.
It's a little bit better than it was last summer.
And then head count declined a little bit in the quarter sequentially.
Is that a trend that we should expect over the next couple of quarters.
It's pretty random Alex I think it was down what 60 or 70 people sequentially and revenue was up you know.
Well over 100 million.
So I don't think it's a lot to read into that.
Thank you.
Okay.
Thank you one moment, while we prepare for the next question.
And our next question will be coming from Steve Eastman of key Bank. Your line is open.
Im sorry, Jonathan.
Sean Eastman with Keybanc Your line is open.
Thank you. Thank you.
So I just wanted to make sure we're interpreting the commentary on the several customers kind of ramping into the second half versus the two that are more first half weighted.
It sounds like what Youre, saying is is the <unk>.
Former.
Is the order of magnitude on the former is larger than the two customers that are more first half weighted so theres still an opportunity for second half revenues to exceed first half, but maybe the pace of growth is just not going to be able to be sustained versus what we saw in the first quarter is that kind of what youre trying to say.
Dave.
Well I mean, I think directionally that's in line, but these programs are accelerating and when you have programs that are accelerating once you get a cadence you can build up some pretty good revenue momentum. We just don't want to get ahead of that as we're as we're seeing this transition and act.
<unk> <unk>.
Short term.
From a couple of customers to a broader set of customers that are that are growing and as I said, John if we look at that broader set of customers sequentially.
The growth rate.
Q1 to Q2 that we expect for those customers. This year will be in line or maybe better than the sequential growth overall was last year.
From Q1 to Q2.
Okay.
That's actually really helpful and then.
Moving over to the margin.
Clearly this 360 basis points of improvement in the first quarter is considerably better than.
In a modest year over year expansion guidance, so would you be able to get into what's in that year on year bridge.
And just help us understand what we can extrapolate from that performance relative to.
The balance of the year.
Well clearly Sean we got good operating leverage in a quarter, where we had 19% organic growth.
Which was more than we had expected.
Again.
Weather was a it was a factor we had better weather to operate in in February and March than what we would typically seasonally see I think thats reflected in there.
Some customers being pleased with how much they've got done in the first part of the year.
I think as we go ahead, we're going to have a little bit of pressure as we see a moderation with a couple of customers offset by the growth in others, but as we get deeper into the year I think what I take away from.
The margins over the last four quarters being north of 10% is that the trend line in earnings power that we've had for a long time and the business is reasserting itself. After a period that was pretty difficult. So we're encouraged.
Okay, and one last one Steve.
Just with the broader customer base.
Kind of publicly.
Identifying higher build costs and zoning in on the labor side in particular.
I just wanted to make sure I understand how to interpret that relative to.
The DIY model.
And then maybe just kind of help clear the air on how that translates into the dotcom model, how we should think about that those comments.
Yes, so Sean we've talked about it over the last quarter or two and I'm not going to.
Respond back.
Or comment specifically on any individual customer, but as the as.
As the builds progress there is always a mix of different types of passing.
So, let's say aerial pass things where replace fiber on poles.
Barry pass things, where we place to fiber in the ground or we serve multiple dwelling units like apartment complexes and condominiums.
All of those different types of deployments have different cost and so as mix changes over time, it's not unusual for example in any given period for say underground or Barry construction to increase and that does require more labor and so if you look at the overall impact on cost per home.
As past its really in our view that the mix changes over time and with that mix change the amount of labor that's required in the amount of or the portion of the bill that's labor related could increase but it just reflects the mix.
Understood. Thank you I'll turn it over.
Yeah.
Thank you for your question one moment, while we prepare for the next question.
The next question, we have is coming from Brent Thielman.
Davidson Your line is open.
Thanks, Good morning, Keith.
Okay.
I mean, you grew 19%.
The difficult comparison to last year is there a way for us to think about the contribution.
Sort of higher value our contract pricing.
Completion of our.
Deeper penetration.
Yes.
I mean, Sean we go through contract renewals and have discussions with customers periodically.
We're not going to talk about pricing in specific cohort or generally other than to say that we're pleased with those discussions that they reflect.
Right.
Mix of volume versus the cost that it takes to get the work done.
Okay.
And then maybe David.
Your ability that debit crude.
I've got more.
Front half weighted spending today in the back half loaded spending maybe march that your ability to manage some of that under absorption.
Some of the population between.
Yes.
Yes, as we said anytime you deal with some moderation there is going to be some cost that get hung up for a little bit I think we're pleased that the <unk>.
Breadth of the business and the amount of demand that we see across the industry.
An additional investment that's flowing in but we're going to work hard to.
To stay busy.
Okay.
Thank you for your question.
A reminder, if you would like to ask a question. Please press star one on your telephone.
The next question that we have is coming from Christian Schwab Craig Hallum. Your line is open.
Hey, good morning, guys, Steve I am curious in the underground fiber work with the broadening of the customer base.
And significant state investments is there any shift in mix of a very in the fiber from.
An increase in what I would call middle mile and long haul fiber.
Initiatives and outlook on a go forward basis are you seeing that or not.
Yes, Christian it's a great question. So clearly when you start deploying lots of fiber in Rural America, Theres, not a whole lot of middle mile fiber and so part a portion of these programs really is middle mile. Before you can do the distribution portion of the network I think a number of customers who are participating.
Supporting both as incumbents in a particular geography as well as a state or federal recipient of support.
As often looking at that middle mile investment against.
234 separate pools of capital that can fund debt. So I think we will see larger projects. Initially now not forever eventually the middle mile. It gets built and then the focus is clearly around homes passed.
But that's the dynamic you described is pretty typical when you want to deploy fiber in a region of the of our of the country or the state of the state where there is very little fiber right now.
And how it would you expect any type of profitability differences.
Between middle mile work in say distributions slash the last mile work.
In Rural America Christian Theres really it's the same activity. It's the same work functions. It's the same environmental conditions you're operating.
Within and so we have not historically seen it to be a big difference.
Great no other questions. Thank you.
Thank you.
Okay.
Thank you for your question one moment, while we prepare for the next question.
And please wait for your name to be announced before you proceed with your question.
And our next question will be coming from Eric <unk> of.
Wells Fargo. Your line is open.
Thanks for the question.
Steve I wanted to touch on the on the cable folks so Comcast and charter it's a nice growth in the quarter. I guess are you seeing more activity on edge outs or that DOCSIS vornado upgrades or maybe some of the rail programs like charter has been doing with Argos and any any color on what youre seeing from the cable sector.
Yes, Eric I think we're pleased with our progress against all of those opportunities that you outlined.
But both major cable operators spoke recently at conferences and focused on their edge out in rural strategies.
But they also are deploying capital and we're participating in that.
Spanned existing network capacity so in general we.
See things picking up.
Yes, that's good to hear and just related to beat I know, it's been touched on I mean, we've heard some some chatter that concerns around labor supply will there be enough to support both the metro and suburban Delta. In addition to the more rural builds that seem to be accelerating in the next couple of years.
Do you think about like kind of year head count today, and you think theres enough kind of industry capacity to support.
Another 15 plus million homes or whatever the ultimate number will be in rural America over the next five to 10 years.
Yeah, I think Eric the way, we're looking at beta as again as we said earlier is it really is an extension of an increase in government funding that really started with the cares Act ran through art, often ARPA and continues.
With state funds and so I think capacity in that part of America with those funding sources is increasing and the bigger the installed base.
The greater the industry's ability to grow doesn't mean, it's going to be easy, but if you look at our work.
Work that we do for electric utilities, I think on a trailing basis, it's very close to $300 million in revenue that resource base.
For the most part didn't exist five years six years ago. So I think as long as as long as the economics are right, reflecting the amount of investment that's required to create capacity.
And we have the right.
Length of time in order to make that investment.
We had lots of others will be pleased to help get the network built goes.
I would say rural America is probably and thereby waited long enough.
Yes, yes fair enough and just one last one for me, Steve kind of a bigger picture question. So the Giga power JV with AT&T, it's kind of open access model that we've seen.
Rolled out a lot more in Europe , I guess, what are your thoughts on whether that can be kind of a successful model in terms of their ability to not just sell the fiber network to AT&T, but add additional tenants on to it as well.
Yes, Eric I think what I would say is without comments on on any customer specific model is that when you have.
A theme in the economy, that's as big as creating digital infrastructure to serve homes.
Irregardless of their location, whether they're urban suburban or rural theres going to be lots of experimentation around different ways to create value around that societal trend.
You've highlighted one there are others that that are out there.
And that's why I think if you look at the next five or 10 years in this industry.
It's going to be more exciting than any time, certainly in my career and probably ever. So I just think it just shows how dynamic our industry is.
Given the demand for the service.
Okay. Thanks, Steve I appreciate it.
Thank you for your question.
While we proceed with the next question.
And again, please wait for your name to be pronounced before you proceed with your question.
And the next question is coming from Alan.
In the chart.
Sylvan Lake asset management your line is open.
Hi, Thank you.
The issue earnings last Hey, how are you Steve.
The issue with your earnings last number of years has really been gross margin. It seems like finally, we've rolled off some of those problem contracts and other issues and you got energy down to a level where <unk> you.
<unk> been able to get the price increases whatever cost cuts you've done is that the way you feel you feel like we're past a milestone as it relates to gross margin.
Well this is a service business Alan Youre always working hard to make it better there are always challenges I think a couple of years ago, we probably would not have anticipated the amount of labor.
Inflation in the general economy, but in terms of things that are inside the business.
Through some challenging programs I think we're back on a more normalized earnings trend and we're working hard to make it better.
Okay can you talk about the competitive dynamics in terms of other contractors, where the bidding environment that.
That you are seeing.
Does your access to capital help you guys raised a lot of money paying extra interest cost.
It all to work really can you just talk about that versus other other.
Contractors.
Yeah look I would say a couple of things one we're pleased with our competitive positioning I was looking this morning that over the last four quarters to April we grew just under $700 million organically pretty sizable increase in that growth alone would be a pretty sizable industry participant.
I would say Theres certainly anecdotal.
Data that would tell you that.
The.
Community banking challenges will disproportionately impact smaller private companies.
Not great probably shouldnt be that way, but in the past that certainly what we've seen.
And we are pleased that we raise capital when we did in 2021 at attractive rates and we've been also pleased that we've been able to put it to work organically.
And through share repurchases. So I think we're at a good spot.
To compete doesn't mean that that.
We will ever earned business.
Just on the balance sheet, because we've got to serve the customer well.
But it certainly doesn't hurt.
Great. Thank you.
Thank you.
Conclude the Q&A session for today, and I would like to turn the call back over to management for closing remarks.
Well, we thank everybody for your time and attention and we look forward to speaking to you again in August on our second quarter earnings call. Thank you.
This concludes today's conference call you all may disconnect and everyone enjoy the rest of your day.
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