Q2 2023 Radian Group Inc Earnings Call
Good day, and thank you for standing by and welcome to Radians groups second quarter 2023 earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During the session you will need to press star one on your telephone.
We'll then hear an automated message advising your hands raised.
Remove yourself from the queue. Please press star one again, please be advised that today's conference is being recorded I would now like to hand, the conference over to John Damian Senior Vice President.
Best of relations and corporate development. Please go ahead.
Thank you and welcome to Radians second quarter 2023 conference call. Our press release, which contains radians financial results for the quarter was issued yesterday evening and is posted to the investors section of our website at www Dot <unk> Dot com.
This press release includes certain non-GAAP measures that may be discussed during today's call, including adjusted pretax operating income adjusted diluted net operating income per share and adjusted net operating return on equity.
In addition, specifically for a homogeneous segment other non-GAAP measures in our press release that may be discussed today include adjusted gross profit and adjusted pre tax operating income or loss before allocated corporate operating expenses.
A complete description of all of our non-GAAP measures maybe found in press release exhibit F and reconciliations of these measures to the most comparable GAAP measures maybe found in press release exhibit G. These exhibits are on the investors section of our website.
Today, you will hear from Rick Thornberry, Radians, Chief Executive Officer, and submit a pandemic Chief Financial Officer also on hand for the Q&A portion of the call is Derek Brummer President of Radian mortgage before we begin I would like to remind you that comments made during this call will include forward looking statements. These statements are based on current X.
Vacations estimates projections and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially for a discussion of these risks. Please review the cautionary statements regarding forward looking statements included in our earnings release and the risk factors included in our 2022 Form 10-K.
And subsequent reports filed with the SEC. These are also available on our website now I'd like to turn the call over to Rick.
Good afternoon, and thank you all for joining us today.
Pleased to report another solid quarter for Radian gap.
GAAP revenues grew year over year to $290 million, we generated net income of $146 million or annualized return on equity was 14, 1% in the second quarter.
Book value per share increased 12% year over year to $26.51.
We paid a <unk> $35 million dividend to stockholders, reflecting our highest yielding dividend in the industry.
And our overall liquidity and capital positions remained very strong, which I'll cover in a few minutes.
Despite continued headwinds in our mortgage and real estate markets and continuing macroeconomic uncertainty our overall performance in the second quarter reflects the resilience of our business model.
The strength of our growing insured portfolio, the depth of our customer relationships and the commitment of our team.
Our team remains focused across our three areas of strategic value creation.
Knowing the economic value and future earnings of our mortgage insurance portfolio.
Positioning our homogeneous business on a path to profitability and value creation.
Prudently managing our capital resources.
In terms of growing the economic value of future earnings of our mortgage insurance portfolio, we continue to leverage our proprietary analytics and radar rates platform focused on driving economic value, while calibrating, our dynamic risk based pricing to capitalize on the opportunities that we see in the current market.
As a result, we wrote $16 $9 billion of high quality mortgage insurance business in the second quarter of 2023.
And we expect to see continued opportunity to put our capital to work at attractive risk adjusted returns.
Our primary mortgage insurance in force, which is the main driver of future earnings for our company grew 5% year over year to $267 billion.
As a reminder, during our Investor day in June we provided examples of the potential future earnings embedded in our current enforce portfolio, which is not included in our current book value or.
Our persistency rate remains strong given.
Given the current interest rate environment, and the comparatively low mortgage rates across our portfolio. We expect our persistency rate to remain high which is positive for future insurance in force growth.
We continue to see positive credit performance in our mortgage insurance portfolio during the quarter.
Although we generally expect new notices of default to increase in the future as the portfolio naturally seasons in the second quarter. We saw the number of new defaults decreased as compared to the first quarter and curious outpaced new defaults by 8%.
From a quality perspective, our mortgage insurance portfolio has been well underwritten and has a strong overall credit profile and it is important to note that the quality of the mortgage industry as loan manufacturing and servicing processes remained strong including extensive efforts to support borrowers experiencing hardship.
It is also worth noting that the increase in interest rates has resulted in higher yields across our $6 billion investment portfolio, which generates incremental income that flows directly to our bottom line.
With regards to our homogeneous business, although we saw a small increase in revenues in the second quarter as compared to the first quarter as I noted during our Investor day, the businesses that make up our homogeneous segment continue to be challenged by current market conditions, including higher interest rates and limited inventory, which is constrained.
Mortgage and real estate activity.
We are managing the <unk> segment through this challenging environment by focusing on disciplined cost management, including staff reductions to better align our expenses and resources to the current market and the opportunities we see ahead.
As I mentioned during our Investor day, we believe we have a differentiated and valuable solution and our <unk> business based on the depth of the market relationships.
National footprint across our businesses, our unique real estate data and analytics assets, our innovative digital platforms, leveraging advanced technologies, including AI and computer vision and of course, an experienced and talented team.
We maintain a realistic view of the current state and opportunity for <unk>, and we will continue to adjust our cost structure and align our strategy and investments placed on GSI and the path to profitability.
And in terms of managing our capital resources total holding company liquidity increased to $1 3 billion.
We continue to expect radian guarantee to pay $300 million to $400 million of ordinary dividends during 2023 of which $200 million has already been paid.
Radian Guaranty maintains a strong P myers position with excess available assets of $1 7 billion or 41% over its minimum required assets.
It is also important to note that in the second quarter tender.
Tender offers were completed on two outstanding Eagle re insurance linked notes that we're no longer providing the same level of P Myers capital relief.
They had previously.
Submit that will provide more detail on both the current period impact in the long term financial benefit of these transactions.
And we continue to execute our aggregate manage and distribute mortgage insurance business model, including the placement of a new quota share reinsurance agreement for new business written through June 32024.
We believe the strength of our capital position significantly enhances our financial flexibility now and going forward as.
Submit the shared during our Investor day, we are in an enviable position of having significant optionality regarding uses of our capital we take a deliberate and balanced approach to capital allocation, which we believe has uniquely positioned us to deliver value to stockholders.
And it's important to note that our capital plan is never static as we strive to maintain flexibility to successfully respond to potential changes in the environment, particularly in this uncertain.
The economy.
As we have noted previously we carefully consider the balance between organic growth in order to deploy capital back into our business at the most attractive risk adjusted returns.
The return of capital to stockholders, which is an area we have differentiated from our peers.
And in organic growth investment opportunities over the years, we have consistently demonstrated our strategic focus on the optimization of our capital structure and many of you have highlighted our effectiveness in unlocking trapped capital wherever feasible.
Let me share a few thoughts on the mortgage and housing markets.
In terms of the mortgage market for 2023 recent mortgage industry origination forecasts call for a bottoming out of the origination market with a decline of approximately 27% compared to last year, followed by a return to growth in 2024.
It is important to note that the market decline has been largely driven by a decrease in refinance volume and while the purchase market is down 15% from last year.
As expected to be slightly higher than the pre pandemic level of volume in 2019.
As I've mentioned before our purchase volume represents the vast majority of our business, including homebuyers seeking more affordable downpayment for their first home.
Based on a total mortgage origination market of $1 seven trillion dollars, we expect the private mortgage insurance market in 2023 to be approximately $325 billion, which is at the high end of our prior guidance.
Volume is projected to be driven primarily by purchase loans, which are estimated to be one four trillion.
Excluding the pandemic years of 2020 through 2022 this would represent the largest purchase market in the past 16 years.
View these collective factors as a positive sign of a stronger more stable purchase mortgage origination market.
In terms of the housing market.
While there continues to be a significant imbalance in housing supply and demand.
We have seen housing prices stabilized more recently begin to rebound.
As we mentioned during our Investor Day first time homebuyer demand is strong with large millennial and Gen Z generation has either been in pursue reaching their prime home buying years.
And while the low inventory and strong market demand continue to create challenges for first time homebuyers. These.
These dynamics helped to mitigate downside risk in terms of home values, which is a positive for our insured portfolio.
We believe the resulting pent up demand provides strong support for continuing purchase market growth in 2024 and beyond as such our overall outlook for the housing market remains fairly positive over the near and long term.
As you've heard me say before our company is built to withstand economic cycles.
Significantly strengthened by the P Myers capital framework dynamic risk based pricing and the distribution of risk into the capital and reinsurance markets.
Submit I will now cover the details of our financial position. Many of you met her during our Investor Day and this was our first quarterly earnings call at Radian since being appointed Chief Financial Officer in May since joining radian earlier. This year. She has made significant contribution across the organization and I am very.
Pleased to have her on the team.
I also want to personally thank Rob quickly, our EVP corporate controller, and Chief Accounting Officer, and Dan Cobell EVP of finance for the important interim role. They played during this transition there.
<unk> leadership strategic insight and outstanding Council have been and continue to be incredibly valuable to me and to the broader radiant team now.
Now I will turn the call over to submit them.
Thank you Rick and good afternoon, everyone.
I'm pleased to provide additional details about our second quarter results, which reflect another strong quarter of performance highlighted by the continued growth of our high quality mortgage insurance in force portfolio as well as by the strength and flexibility of our capital and liquidity positions.
As reported last night in the second quarter of 2023.
<unk> GAAP net income of $146 million 91 per diluted share compared to <unk> 98 per diluted share in the first quarter.
Adjusted diluted net operating income per share for the quarter was also 91 cents compared to <unk> 98 per share in the first quarter as reflected in the reconciliations provided in exhibit G of our press release.
We produced a 14, 1% annualized return on equity for the quarter and grew our book value per share of 12% year over year to $26.51 as of June 30th.
First let's discuss revenue and related drivers.
Despite the challenging macroeconomic environment, we generated $290 million in total revenue during the second quarter compared to $311 million in the first quarter.
Total revenues and net premiums earned in the second quarter elevated use by a one time increase in ceded premiums earned of $21 million under our insurance linked notes program.
This was due to tender offers by certain Eagle re issuers during the period.
The notes that supported the reinsurance agreements with Radian guaranty.
Very pleased with that and it also results, particularly since these transactions, we're no longer providing the level of P. Myers capital benefit to Radian guaranty that they provided in prior years.
Based on current projections and expectations.
Expect radian guaranty to save approximately $58 million of future ceded premiums over time as a result of these tenders, including a full recovery of the $21 million of the upfront one time costs within one year.
Excluding the $21 million impact of the tender offers are total revenue would have increased by 9% year over year and our net premium yield and net premiums earned would have been in line with the first quarter of 2023.
Has there been D. In our press release provides details on the various confidence of our net premiums earned and slide seven highlights. The Tencent reduction. This tender offer has had on our net income per share during the quarter.
The two most significant and consistent drivers of our net premiums remain the size and average premium yield of a larger enforce mortgage insurance portfolio.
Primary insurance in force grew 5% year over year to $267 billion as of June 30th.
Contributing to the growth of our insurance in force was $16 $9 billion of new insurance written for the second quarter compared to $11 $3 billion in the first quarter.
We were able to achieve this growth quarter over quarter, while continuing to increase pricing for the central originations.
As discussed in our Investor day last month, using the base economic scenario assumptions and inputs outlined in our presentation. Our primary insurance in force is expected to be the most significant driver of our future results.
Embedded future earnings from the existing portfolio as of the first quarter estimated to be approximately $2 6 billion.
While the industry wide decrease in purchase and refinance originations has provided headwinds over the past year for a new insurance written it has significantly benefited the persistency rate of our insurance in force, which remained high at 83% in the second quarter based on the trailing 12 months compared to 72% a year.
We expect our persistency rates to remain strong given the sharp rise in mortgage rates last year. Following an extended period of very low rates, 77% of our insurance in force had a mortgage rate of 5% or less as of the end of the second quarter and is therefore less likely to cancel in the near term due to refinancing.
<unk>.
As shown on slide 13, and consistent with our prior expectations. The impulse portfolio premium <unk> for our mortgage insurance portfolio remained stable in the second quarter at 38.2 basis points comparable to the level reported at year end 2022.
With strong persistency rates and the current industry pricing environment. We continue to expect the enforced portfolio premium yields to remain relatively flat over the course of 2023, while the total net sales of our insured portfolio can fluctuate from period to period due to other factors such as changes in our risk distribution programs.
<unk> Commission signed and single premium policy cancellations.
The higher interest rate environment has also increased our investment income, which grew 37% year over year to $64 million in this quarter.
As shown on webcast slide nine our total investment portfolio of $6 billion consists of well diversified highly rated securities.
Significant diversification and conservatism built into the composition of our portfolio, which includes not only diversification between asset classes, but also across industry segments, obligate tenors and securitized assets across geographies collateral vintage initialize.
The book yield on our investment portfolio increased during the second quarter from three eight percentage to 4% at quarter end and the higher rate environment should continue to be positive for the reinvestment of future cash flows.
The impact has moderated in 2023 rising interest rates have created an unrealized loss on our investment portfolio reported an <unk> net of tax which was $424 million as of the end of the second quarter.
Book value fully reflects the fair value and unrealized losses on investments as we do not classify any of our investment securities as held to maturity gathered at amortized cost.
We do not expect to realize these losses, given our ability to hold these securities to maturity as they tend to par due to our significant positive operating cash flows and not other available liquidity options.
Our homogeneous segment revenues totaled $15 million for the second quarter compared to $13 million for the first quarter.
Rick mentioned this segment continues to be negatively impacted by the higher rate environment and industry wide decline in mortgage and real estate transactions.
Moving to our provision for losses, the positive trends that we have been experiencing continued into the most recent quarter as noted on slide 16, we had a net benefit of $22 million and our mortgage provision for losses in the second quarter compared to a net benefit of $17 million in the first quarter.
Positive benefits in recent periods had been due primarily to defaults carrying at rates greater than our previous expectations in part due to the impact of forbearance programs and the strong home price appreciation experienced in recent years.
For the second quarter, the net benefit to our mortgage provision was the result of $63 million of benefit from reserve development on prior PD default due to favorable cure trends. We're also seeing the benefit of higher claim withdrawals by services.
The reserve releases were partially offset by $41 million of loss provision for new defaults reported during the quarter.
On slide 17, we note that the number of new defaults reported to us by services declined in the second quarter of 2020 329800 from 10600 in the first quarter.
Consistent with recent quarters, we maintained our default to claim rate frequency assumption for new defaults at 8%.
Our ending primary default inventory as of June 30, It was slightly under 20000 loans. They are present in our portfolio default rate of 198%.
Turning to our other expenses for the second quarter, our other operating expenses totaled $90 million, an increase compared to $83 million recognized in the first quarter expenses in the second quarter were elevated due to the timing of certain employee compensation and benefits, including our anvil.
Share based incentive grants, our operating expenses for the quarter included $4 million related to share based incentive grants and $2 million of severance expenses related to a homogeneous segment.
Or not expense savings actions to date and consistent with our previous guidance. We continue to anticipate our 2023 fully our consolidated cost of service and other operating expenses to be $3 $80 million to $400 million.
This would represent a reduction in the total expenses in line with the higher end of our prior guidance of $60 million to $80 million.
10% to 17% compared to last year.
Moving finally to our capital and available liquidity.
Based on current performance expectations and consistent with our prior guidance, we expect radian guarantee to pay between $300 million to $400 million of art.
Ordinary dividends to Radian group for the full year 2023.
Date, Radian Guaranty has already paid $200 million of ordinary dividends to Radian group.
They didn't guaranty's excess P Myers available assets over minimum required assets remained stable at $1 $7 billion, that's a 41% B Meyers question.
Our available holding company liquidity increase from $956 million, just slightly over $1 billion. During the quarter. This increase was net of the payment of a quarterly dividend to Radian group stockholders of 22, and a half cents per share totaling $35 million and the purchase of 200.
29000 shares at a total cost of $5 million under a value based share repurchase program.
As Rick mentioned earlier, consistent with our use of risk distribution strategies.
Actively manage capital and proactively mitigate risk in July 2023, Radian guaranty entered into a quota share reinsurance arrangement with a panel of third party reinsurance providers under the 2022 sided agreement, we expect to see the risks related to 22, 5% of policies issued between.
July 1st 2023, and June 32024 subject to certain conditions.
To recap our results for this quarter once again highlight the consistent earnings and cash flows generated from our business model.
I believe our financial position has never been stronger given our significant holding company liquidity sizable P. Myers cushion at Radian Guaranty and the future of embedded earnings in our high quality mortgage insurance in force portfolio as illustrated using the assumptions and inputs outlined in our Investor day presentation last month.
And even under stress macroeconomic scenario that includes a severe decline in home prices consistent with the great financial crisis, we expect to remain resilient and generate positive earnings each year grow book value maintain adequate b Meyers cushion and have significant ordinary dividend capacity at <unk>.
<unk> guarantee.
I will now turn the call back over to Rick.
Thank you submit to.
Before we open the call to your questions I want to highlight that we are pleased with our results and remain focused on executing our strategic plans we.
We are driving operational excellence across our businesses and aligning our overall expense structure and resources to reflect the market environment.
Our $267 billion mortgage insurance portfolio is highly valuable and is expected to deliver significant earnings going forward.
We continue to strategically manage capital by maintaining strong holding company liquidity and Pmiers cushion, while expecting to continue to pay ordinary dividends from radian Guaranty to Radian group.
Opportunistically repurchasing shares and paying the highest yielding dividend in the industry to stockholders.
And finally.
I want to recognize our team for helping to drive our strong results and for the outstanding work. They do every day.
Now operator, we would be happy to take questions.
Thank you.
As a reminder to ask a question you will need to press star one on your star one on your telephone.
To remove yourself from the queue. Please press star one again, please wait for your name to be announced please standby, while we compile the Q&A roster.
One moment for your first question.
And our first question comes from the line of Bose George with <unk>. Your line is now open.
Hey, everyone. Good afternoon.
Wanted to ask first just about share buybacks have been somewhat quieter on that front in the last couple of quarters.
Can you help us think about when we could see more activity there.
Thanks both.
Hi, This is similar to here, it's nice to speak with all of you today.
So I think both we are taking a pretty deliberate and measured approach to how we think about our excess capital return given the uncertain economy.
As far as our share return and this year is concerned.
First half of this year, we returned about $90 million to shareholders, including dividends and share repurchases.
We do have a strong track record of managing capital as you know we've returned about $1 $75 billion of capital over the last five years.
Bought back approximately one third of our outstanding shares in a similar time period.
And we think that it is prudent for us to hold some excess capital today, given the uncertain macroeconomic environment I think if you look at our ROE is they were a little lower in this quarter at 14, 1% adjusted for the tender that number would have been $15 seven very very comparable to our first quarter auto AE.
And we think that as we go along we will continue to take decisions on the optimum capital return to shareholders given this macroeconomic environment.
Okay, great that makes sense. Thank you and then actually I just wanted to clarify on your expense guidance does that include the opex the cost of services and the policy acquisition costs or is it just the first two of those line items.
Just the first two of those line items the operating expense the other operating expenses and the cost of services, which is the three eight to 400 million guidance that we had previously given.
Okay, great. Thanks very much.
Thank you both.
One moment for our next question please.
Our next question comes from the line of Doug Harter with Credit Suisse. Your line is open.
Uh huh.
Thanks.
I believe in your prepared remarks, you talked about still being able to increase <unk>.
During the quarter I guess can you just talk about.
The pacing.
Price increases that you're seeing.
Relative to some market expectations for.
Improved housing market and improved economic outlook today versus three or six months ago.
Hey, Doug it's Derek so in terms of the market in Q2, I'd characterize it as very similar to Q1, and I think I'd characterize there as being positive disciplined and rational. So we continue to see a hardening market. So.
So in our principal segment the Black box segment radar rates, we continued to see pricing increases in Q2, I would say the pace of the increase kind of came down a bit still increasing but not at the same pace. We probably saw in Q4 of last year in Q1 of this year, but still kind of positive directionally.
And then.
Cheers.
Your Q2 volume.
Bigger sequential pickup than most of your peers is there any particular areas, where you found kind of winning.
More and more business or is it kind of broad based.
Yes, it kind of broad based it was really the pickup was in our radar rates segment. So that's where we really picked up we were able to increase pricing across the board and again, when we kind of see shifts in terms of volume, which we talked about at Investor day, It's really going to be focused on where we find relative value and where we find kind.
The highest economic value. So if you saw any movement with respect to credit mix is probably a little bit on the higher FICO, where we saw relative value is kind of the driver.
Great. Thank you Derrick.
Yeah.
Thank you.
Our next question.
As a reminder, ladies and gentlemen that Starwood wanted to ask a question.
Our next question comes from Mihir Bhatia with Bank of America. Your line is now open.
Hi, Thank you for taking my question.
Wanted to maybe just start with the reinsurance transaction.
Just to clarify the $21 million recovery you talked about that's just from lower ceded premiums is that right or is there something else going on there.
Yes, so the 21 million was that it was the ceded premiums that went up so it's a contra revenue line. So think of it as our revenue went down by $21 million because of the transaction and 58 million that we expect to get a benefit for <unk>.
<unk> in the future so that would be our ceded premiums going down in the future years by $58 million.
Right and of that 58, I think you said 21 would be within the next deal.
So we expect our cash breakeven within the next 20 years or so I think in short. This is a really good NPV transaction for us and.
As we look at it.
Looking at our performance.
Excluding this tender tendered offer and as you look at our numbers I think our revenue would have been $25 million higher if we had not executed on the tender.
Net premium yield would have been $2 two basis points higher of our EPS would have been higher ROA would have been 160 basis points higher excluding.
Excluding the impact of this tender and because of this tender we expect that we.
We will actually have a higher future dividend capacity, so think about the $58 million that we have saved in future ceded premium.
And help us increase our dividend capacity in future years.
Okay.
And then just wanted to ask about the 2018 deals like I recognize that the delinquency crigler currently.
But given it also is not providing.
Hey, Myles benefit would that be a candidate in the future because it took the delinquency trigger you basically are not likely to do that one.
So we do have a call option in November for this year for the 2018 once and we will look at our options and take a decision on that.
Okay.
Maybe just asking about the paid claims just switching.
In terms of the paid claims they are running at a pretty low level relative to history. I think there was on the 90 191 claims paid this quarter in the last quarter, which obviously is quite low.
Well My question is really when does this normalize back.
I guess, the pre pandemic pre foreclosure levels or something more of a normal run rate level is there a cliff from a standing point standpoint, just given the foreclosure program expiring et cetera, just trying to understand what that glide path looks like and when we get back to what I guess would be a normal loan.
Mike.
Yes, I think it's a really good question I wish I had a future ball that I could look into and predict it its really hard to predict the future as you know I think what we can say is that.
We are taking a conservative view about how we think about.
About the macroeconomic scenario.
Our performance to date has actually been consistently better than our expectations, but as you said if you look at the average directly that we paid this quarter. It was about 36400 and as you know our severity assumptions that we use when we reserve for our new default is higher its about $60000.
So we are continuing to see consistently better performance.
Beyond our expectations.
And we expect to continue to be conservative as we as we forecast out performance here, but delek and Rick if you have other thoughts yeah, I'll I'll jump into both its tough to say I mean, one of the phenomenon. We had in the portfolio is just the embedded equity and so we've seen very high cure rates, so, particularly in our pending claim kind of bucket. So it very unusually high.
High level thoughts in terms of that cure rate and so that's certainly been a positive and if you look at kind of that default portfolio.
Taken index based approach over 80, 80% has 20% or more equity.
And tells you kind of have a turnover in the portfolio that does put downward pressure in a positive way in terms of potential paid claims. So you probably need to see a significant turnover in the portfolio.
And we are really as kind of a law of small numbers right now just kind of watching as this thing kind of evolves through the cycle. So I think.
And Derrick sung <unk>.
Watching it carefully I think being appropriately prudent about trying to factor in too much as we go forward.
Got it.
Question, just Derrick just to follow up on the.
I understand that the index base portfolio approach that 20% equity Scott.
Stat that you gave.
Alright.
80% have over 20% equity what would what would have been the right like typically I don't know 2015 2017 around that.
Pre pandemic I guess, what would be the typical equity rate in your pending.
Hi, guys.
Im not going to guess on that lower but I don't have a percentage off the top of my head in terms of kind of the embedded equity, but if you think about that just looking at the run up in home prices kind of after that period of time, it would be significantly less and so.
Can't think of any time in history, where I would've had this much embedded equity in the default portfolio, maybe more of a normal amortization kind of embedded equity over time with small HPA compared to kind of a 2021 kind of ramp up in HPA. So I think the comparison is to derek's point, probably two different scenarios.
Got it okay. Thank you thanks for taking my questions.
Thanks Bahir.
As a reminder to ask a question Thats Star one one.
And currently showing no further questions at this time.
Like to hand, the conference back over to Mr. Rick Thornberry for any closing remarks.
Thank you and thank you all I appreciate you joining us today appreciate the questions and a good discussion.
And most of all I appreciate your interest in Radian.
Team here, we look forward to.
Talking to each of you is in the coming months as we have an opportunity to talk about how we're executing our business plans.
As we've as we've laid out here so have a great day and look forward to talking to you soon thank you.
Thank you. This concludes today's conference call. Thank you for your participation you may now disconnect everyone have a wonderful day.
Okay.
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