Q3 2023 Carriage Services Inc Earnings Call
Good day, and thank you for standing by.
Welcome to the carriage services third quarter 2023 earnings conference call.
Please be advised that today's conference is being recorded.
I would now like to hand, the conference over to your speaker today.
Steve Metzger President. Please go ahead Sir.
Good morning, everyone and thank you for joining us to discuss our third quarter results. In addition to myself on the call. This morning from management or Carlos disorder, Chief Executive Officer, and Vice Chairman of the board of Directors and key and Graham Miao Executive Vice President and Chief Financial Officer.
On the carriage services website, you can find our earnings press release, which was issued yesterday after the market closed.
Our press release is intended to supplement our remarks. This morning and include supplemental financial information, including a reconciliation of differences between GAAP and non-GAAP financial measures.
This call will begin with formal remarks from Carlos and Qian It will be followed by a question and answer period.
Before we begin I'd like to remind everyone that during this call we'll make some forward looking statements, including comments about our business projections and plans as well as 2023 guidance forward looking statements inherently involve risks and uncertainties and only reflect our view as of today.
These risks and uncertainties include but are not limited to factors identified in our earnings release as well as in our SEC filings all of which can be found on our website.
Thank you all for joining us this morning, and now I would like to turn the call over to Carlos.
Good morning, everyone. We're pleased to share our third quarter financial performance with all of you.
For today's call I will start by giving you some color on our impressive third quarter operational results. In addition to providing you with a few updates.
Following my prepared remarks, <unk> will share our financial performance and our views for the remainder of 'twenty 23, and an early look at 'twenty 'twenty four.
But before doing so we would like to thank every care, which employees for all their hard work and passion in pursuing our being the best mission.
These results reflect your unwavering commitment to service excellence and our best in class customer experience for all of the families that we serve.
Now onto the results for the third quarter, our cemetery portfolio delivering impressive growth of 15, 5% of total cemetery operating revenue compared to last year's third quarter.
Preneed sales team did an outstanding job delivering growth of 27, 2% in total preneed property production and an increase of eight 4% of our same store portfolio.
Total cemetery field EBITDA grew two 9 million or 14, 4% over the prior year.
These results are primarily driven by the execution of our high performance Cemetery sales plan through increased activity.
Marketing lead generation efforts and the optimization of sales edge, our in house customer relationship management platform. Our high performance sales organization is still in the infancy stage and we expect to continue to grow consistently in the low double digits on an annual basis.
As it relates to our funeral home portfolio, while we have seen a 5% decline in that need volume as a consequence.
The expected COVID-19 pull forward effect on our same store portfolio.
Physician portfolio and equally see yourselves average more than made up for it resulting in total funeral operating revenue of $59 4 million, which is 478000 more than the same period last year.
Our total field EBITDA for the quarter was $22 million an.
An increase of 318000 or one 5% leading to a combined funeral and cemetery field EBITDA, including financial income of $36 1 million an increase of two 5% over the same quarter last year.
And despite inflationary cost pressures and macroeconomic headwinds.
We successfully maintained a 39, 9% total field EBITDA margin one of the highest in the industry.
These results demonstrate our successful navigation of cost pressures and our ability to grow revenue against a lower death rate CVC data in the states, where we operate show a 9% decline in deaths compared to last year. However, our volume only declined 5% during the third quarter. Moreover, our.
General data shows that we continue to gain market share broadly throughout our portfolio.
Adjusted consolidated EBITDA was 24 million for the quarter, an increase of $1 4 million or six 1% over last year and our adjusted consolidated EBITDA margin of 26, 8% was an increase of 70 basis points over the prior year quarter. This performance is a result of the hard work of our managing partners and their teams.
And all they do to serve families while managing their cost structure in this inflationary economic environment. We thank you all for the great work.
These strong operating results translated into robust free cash flow generating $21 4 million for the quarter, allowing us to reduce our barbell rate credit facility by $16 7 million. However, despite this paydown, we experienced an increase of $2 6 million in interest.
Compared to last year's quarter significantly impacting our adjusted earnings per share, which ended at 33% against 45 since last year after accounting for approximately 12% increase in interest expense. Our adjusted diluted earnings per share are flat compared to the prior year, we will.
Continue to execute our capital allocation strategy with a primary focus on accelerated debt repayment and reducing interest expense.
Now let me provide three additional updates the first is related to our preneed funeral sales strategy, which is in full swing.
Our partnership with the National Guardian Life Insurance company and procure preneed has been deployed in fully integrated throughout our western region.
We are in the final stages of integrating the central region and the Eastern region is scheduled to be completed by January 2024.
While we are still in the early innings of integration process. We have already started to see the benefits of this strategy.
G a revenue growth of 31, 9% over the prior year.
We expect these results to continue as we complete integration and grew exponentially over time, allowing families to plan their final wishes, while our businesses are able to secure future market share.
We are very excited about this performance and look forward to reporting continued progress in future calls.
The second update is our digital transformation journey known as Trinity.
We have completed the data collection and the GAAP analysis and worrying fulltime programming mode with our pilots set to be launched at the end of the first quarter of next year.
Once deployed Trinity will increase efficiency and insights related to finance accounting that analytics pricing and other operational functions.
Moreover, the automation of processes will transform how we engage with families and radically improve the customer experience.
Lastly, we continue our review of strategic alternatives and will provide additional details once the board has completed its review.
So at that time, we will have no further comment on the process.
In closing after three quarters of strong operational performance. We are very excited about where we are as a company and while we have some headwinds due to the current microeconomic environment.
Inflationary cost variable interest rates and the death rate normalization as a pull forward. The fate of COVID-19 continues to impact volume.
We believe we're well positioned to navigate the current environment, while continuing to build on the areas we have highlighted throughout the year.
We are very encouraged by the progress that has been made in 2023, and our ability to execute our strategy and create shareholder value over time.
Thank you and I will now pass it onto Kian.
Thank you Carlos and good morning, everyone.
Carlos already touched on most of the principle financial metrics and highlighted the Companys key performance indicators for this quarter when compared to the same quarter last year.
But I will dig into a few additional financial highlights with respect to this quarter provide context on our updated full year 2023 guidance and offer some broad thoughts as we start to think about 2024 and providing more detailed color on our February call first I will start off with corporate overhead this quarter when adjusting out special.
Items related to our ongoing review of strategic alternatives, our overhead costs total less than $12 million or approximately 13% of revenue, which is a positive indication as we are targeting the same levels by year end 2024 on an annualized basis.
The general decrease in overhead expense. This year is primarily a result of lower incentive compensation relative to prior quarters, but also our focus throughout the year on optimizing and reducing overhead costs second I would like to discuss our cash flow from operations, which increased to $22 7 million this quarter up from.
$19 9 million in the same quarter last year. Despite net income decreasing $1 2 million during the same period with our capital discipline. We spent nearly $1 5 million less in maintenance capex during the quarter, resulting in a robust adjusted free cash flow of $21 4 million after adding back special items. This strong free cash flow generation.
Along with our well defined capital allocation strategy brings me to my third highlight the reduction in outstanding borrowings under our variable rate credit facility. This quarter as Carlos mentioned earlier, we were able to pay down $16 $7 million on our credit facility, reducing the outstanding borrowings to $187 3 million.
By quarter end, using our bank covenant compliance ratio as defined by our credit agreement, we have steadily decreased our leverage ending the third quarter with five to eight times net debt to EBITDA. Despite the pay down interest rates continued to increase in the quarter with a weighted average interest rate of 9% for the quarter on our credit facility.
Compared to four 3% in the same quarter last year.
Considering this new reality and interest rates, we will continue to be laser focused on capital allocation and paying down the variable interest debt.
Fortunately the credit facility only accounts for a little over 30% of our financial borrowings the remaining $400 million has been locked in at four 5% through May 2029 via our senior notes. So as we continue to pay down outstanding borrowings on our credit facility. This should vastly improve our credit profile and reduce our interest rate burden.
Now turning to our update on full year 2023 guidance over the last two quarters. We are prudently reaffirmed our annual guidance as we waited for more data and clarity on the macro headwinds that Carlos mentioned earlier and how these challenges would ultimately impact our business.
After the third quarter and now partially into the fourth quarter, where we stand today on this call. We have updated our full year 2023 guidance to the following.
First we have tightened our guidance range for total revenue to $375 million to $380 million to reflect the decrease in contract volume as a result of the Covid pull forward effect, which has been partially offset by our increase in average revenue per contract.
We have updated guidance for adjusted consolidated EBITDA to $105 million to $110 million to reflect the general inflationary cost environment. We have continued to experience across both the funeral home and cemetery businesses.
Third we have updated guidance for adjusted diluted earnings per share to $1 90 to $2 when comparing to our original forecast at the beginning of the year cost inflation has translated into 32 cents loss in diluted earnings per share and higher interest rates have accounted for an additional 15.
Lastly, we reaffirm our strong free cash flow generation, which remains resilient as we navigate the macroeconomic headwinds of 50 million to $60 million for the year with.
With the clear visibility into the current macroeconomic environment and its effect on our business. We have updated our view on 2020 for.
The current headwinds of a moderate decrease in volume as a result of a COVID-19 pull forward continued cost inflationary pressures and higher interest rates will require us to review our 2024 forecast.
Which we will update fully on our February call. However, we are well positioned to successfully navigate and grow our financial metrics. During this period with our discipline around capital allocation further offsetting cost inflation by increasing price, where it makes sense and to use our free cash flow to continue paying down our variable interest debt.
At the point the macroeconomic conditions improve whether that is in 2024 or later, we are primed for growth as we continued executing on our strategic efforts around Preneed Cemetery preneed funeral sales projects Trinity and more.
And with that we will open up to questions.
Thank you we will now conduct a question and answer session if you'd like to ask a question. Please signal by pressing star one on your telephone keypad.
Using a speaker phone. Please make sure your mute function is turned off to allow your signal to reach our equipment.
Again press Star one to ask a question.
And we'll pause for a moment to allow everyone the opportunity to signal for questions.
And we will take our first question from Alex Paris with Barrington Research. Please go ahead.
Hi, guys can you hear me.
Yes, yes, we can can you hear.
Hey, good morning, I had some technical issues on prior conference call, So I'm glad and getting through so I've got a few questions for you and I will start.
Where you left off.
Updated 2023 guidance suggests flat fourth quarter revenue and lower adjusted EBITDA margins.
Does this.
Does this reflect anything we know about the month of October.
I'll be happy to respond that Alex.
So is that just a reflection of what we have seen as a significant drop in their case, 5% on that need volume.
And we believe that's coming from the pull forward effect from COVID-19, but also the high impact on income I'm, sorry, and the interest expense that we have experience through different hikes as you know throughout the year ramping up okay.
For Q3, and now continue because we don't believe that's going to be declining.
Declining anytime soon and so taking all of that into consideration the interest expense is significantly greater than we expected.
With the debt that we have as you know it does make a significant impact in our financial performance.
Got you and just to be clear because I missed that at the early part of the call you said that need funeral volume was down 5% in the third quarter.
That is correct yes.
Okay. Good.
Given your expectations for the fourth quarter.
And Ken's comments about next year.
Growing.
Financial metrics.
Just to be more clear do you expect to return to revenue growth and margin expansion in 2024 at this point I realize we have to wait until February for full guidance, but just wondering from 50000 feet can revenue grow next year year over year can margins expand.
The way we're looking at this Alex is if you look at the first quarter of 2023, the decline on volume year over year from anatomy basis was 8%.
Thats trending down now in the third quarter to 5%. We believe is going to take probably another full year for the full or maybe even sue for the full effect of the pull forward.
Impact to wash off and to come back to a normalized level. However, we do expect a more centralized here in 2024, we have some seasonality now back in 2023, which is something we haven't experienced over the last three years since Covid started.
But we the seasonality coming back and with an expected decline.
We do believe revenue growth is going to be.
But not on a same store basis, it will be because of the accretive acquisitions, we have done over the past few years and the work that all of the managing partners are doing to increase us average into.
AD services and merchandisers to their to the families of their survey. So yes, we do believe there'll be growth in a year over year basis.
But it will be making that up from acquisitions, our cell salvage perspective.
Okay. Thank you that's very helpful.
And then.
Speaking of acquisitions I was wondering if we can get an acquisition.
Integration update on the second call you said it was the second quarter call. You said, it was going well and I'm speaking of Greenlawn Heritage funeral area San Juan.
Yes, so heritage.
Going really really well and as you remember with heritage. We have heritage funeral Hall wells have forced one east a cemetery and in both and the integration of those businesses into the carriage decentralized.
The model is going as expected with the performance of spiking up, especially on the cemetery side Cemetery.
Cemetery Preneed sales <unk> is ramping up at a very fast rate in that market and funeral home continued to EV meter provider of services in the market and so we're very excited with that.
Integration, how thats going with that acquisition and the performance of the team so far.
One.
It's a small business when you think about it from the point of view of the square footage of the business, but from a call volume perspective is very very large we acquire that business when he was doing.
Around 800 cases and that continues to grow consistently that team is doing an incredible job continue to captivate the market share specifically on the Spanish demographic in the Orlando area.
Because of the integration and the support that we can provide through that business.
<unk> that has grown and will continue to do that over the foreseeable future.
Great and then I guess last one for me right now.
And again, it's a follow up.
With regard to debt reduction it was great to see you reduced your credit facility by $16 7 million in the quarter I am curious how fast you think you will reduce it barring anything that comes out of strategic alternatives and.
In December of 2022, I believe you said that you would reduce that from the $212 million peak in Q1, two somewhere in the range of $110 million to $120 million by the end of 2020 for taking the leverage ratio down from roughly five five times to closer to four times is.
Thats still the expectation.
Okay, Yes, so I'll take the first crack at that and Carlos will supplement.
You know those those forecasts were done before I got here, but in terms of what were tracking.
We continue to target and goal our goal is to hit that target at the end of 2024.
In that assumption in that forecast was included some divestitures, which would help accelerate that deleveraging. So we've kind of put that on pause. During this review of strategic alternatives, but it is something that depending on where we go forward that is there is an option we have to accelerate our deleveraging profile.
Yes, a couple of comments to that if you don't mind Alex.
When we when milk would that out in December 12 of last year. The high performance grade profile restoration plan. It include a set of items that will allow us to accelerate debt repayment and that was the focus continues to be the focus.
When we announced the strategic review, we have to stop a few things within that plan because it is what it is.
It serves in terms of attention.
As we continue to evaluate our review and at some point, we will close that end.
We will come back and accelerate those points, including potential asset sales that was announced back in December 'twenty. Two we prepared for that through the first half of 2023, and we're ready to execute once we are ready to do that if that's what we'll continue to do.
And then in terms of.
Asset sales really last follow on question on the asset sales.
We'll have over 170 funeral homes at this point.
What are the criteria for divestment is it the smaller locations or the locations that have had lower growth due perhaps to size of market or demographic.
How many.
Just to get sort of an idea how many.
Funeral homes might be under consideration without identifying them obviously.
Yeah. Good morning, Alex This is Steve so.
When we look at potential divestitures, we're really focused on those assets that we don't really consider core when we look at our strategy moving forward. So if you look at the acquisitions that we've completed over the past four years.
It's a pretty specific profile bigger businesses larger markets growing markets.
More cemeteries and Thats, where our focus is as we look at growth in the future. So the assets that don't really fit that vision moving forward.
There are smaller assets there in what we think are either low growth or no growth markets.
But really one of the bigger drivers is we get a lot of outreach from folks and if ultimately the multiple is of a premium that is attractive to US then we will consider it.
Again, it's not a high growth market for us so with all of that said, we've identified some businesses that fit that profile.
But we're also reviewing some others that might help us to key onto point accelerate our deleveraging focus over the next 12 months.
And Alex just wondering a bit more to that you know these are assets that we would sale either way regardless of our debt conditions situation. Even if we didn't have that we have today, we will divest from the SaaS is because we have become more disciplined with their application focused on return on investment of that capital, we would reinvest that capital in.
<unk> that are marketed through the company. So this strategy is not as a consequence to that that it is something that <unk> has done for years in terms of pruning, the lower performing or lower assets in terms of.
The strategy that we have the same for carriage move forward.
Got you well. Thank you guys I appreciate the additional color I'll get back in the queue.
If you find that your question has been answered you may remove yourself from the queue by pressing star two well go next to Liam Burke with B Riley. Please go ahead.
Good morning, Carlos can Steve.
Good morning Liam.
On the cemetery, you had a slight I understand that the EBITDA margins will bounce around from quarter to quarter, but.
And year over year, you're down slightly which would be normal but.
Looking sequentially you were down from the 40% range in the second quarter.
What created it was it just entirely.
Input costs.
Our raw material.
The product cost.
No I would say beyond that the main reason why this is happening we have.
Included junior cemeteries Forest lawn and green along into our mix and those were.
Cemetery is at the time, when we acquired them that had lower averages. Since then we have a meeting increases to the <unk>.
<unk> average into the preneed sales impacting that performance over time I do believe the margins will come back whether it should be from a same store basis, we have.
Experienced elevated cost in the maintenance area from our cemeteries hearing a little bit of those margins we're working through.
Efficiencies to make sure that our maintenance cost is in alignment with our expectations to make sure from a same store basis, we can improve the margins as well, but I do expect them. The cemetery margins to continue to rise as we continue to integrate the businesses and as we continue to work on our maintenance.
Expense.
Great. Thank you and you mentioned, a 5% volume decline in funeral home as it normalizes from the high covered mortality rates, but you also mentioned higher average.
Our customer.
The reward.
Are you just getting back your higher product costs are you able to get any kind of margin out of that.
Yes, we're trying to catch up with the cost increase we have experienced several you know price increases from vendors throughout 2020, we actually began at the end of 2022 and sometimes it's difficult to continue to increase your prices.
For every two months once you get an increase since then we have.
<unk> met with most of our vendors come to agreements to put some.
<unk> cost.
Increases in making sure that we're able to catch up to that expectation from a price increase perspective with the families that we serve passing those costs into their families and making sure. We don't lose volume while we do it as we mentioned on other calls there is a very fine balance between keeping the price up and getting to a point when you start to lose volume.
We're trying to find out where the point of inflection is to make sure that we don't lose volume, but we also capture as much price as we can in every single transaction as it relates to the the volume decline what I do want to add to.
That on my remarks is that the CDC that shows that the states. We operate dropped 9% that's a very significant drop for the third quarter 2022 for the third quarter of 2023, However, we only dropped 5%.
In those same states and their businesses and so that tells me that we have been able to not only sustain and makeup the death rate, but also gained some market share.
In the same states that I just mentioned so.
But I just related.
Okay that was my other follow up on the on the funeral home.
Youre not seeing sticker shock I guess, yes.
I'm presuming that you just have to manage through the balance there.
That is correct, yes, I agree with that.
Great. Thank you Carlos.
You bet.
Once again, if you'd like to signal for a question. Please press star one and we will take our next question from J P. Waltham with Roth Kim. Please go ahead.
Thank you good morning, guys.
Just a couple of questions for me, maybe one just kind of talking about the difference that you experienced in terms of your volume that 5% relative to kind of the average in the in the area.
Sounds like you you had taken some market share I think you made that comment.
Just curious if you can maybe expand on that a little bit.
And just kind of give us a sense of.
At the operating.
Level, what is really driving that market share or what have you and what is the partners attribute.
Share gains too.
You know, we as you know.
JP, we are a very decentralized and that allows an hour's among the new partners to make decisions locally that really matters in the communities that they serve they are able to build the relationships and connections.
Truly drive volume in.
In that specific business.
Those relationships has been built up over the years, especially to COVID-19, there are many instances where all their businesses were not able to serve families through that period and I do believe we gain tremendous a preference in a lot of our businesses because we were able to serve those families when they need it.
Sir.
So that goodwill if you will is really making a significant difference as we continue to move forward. In addition to that there has been a lot of work done from our marketing team regarding.
Presence online digital.
Our strategy is to have been able to make sure that we are direct traffic from our website aimed at a funeral home capture that.
That call capture that the family, making sure we address questions and keep that family if we can.
That's including social media and other digital mediums and so I do believe that.
That in addition to the rates are the.
Score is really we have from a review perspective on Google and Facebook and other mediums are making also has significant impact.
Okay.
Understood. Thank you and then maybe if we could just talk about.
The Guardian and <unk> partnership I think you said that it was.
Fully integrated in the Western region.
Thank you gave some stats in there, but just curious if you can kind of quantify.
What the benefit has been in the Western region now that it's been rolled out.
Absolutely so.
If you remember when we rolled this out I mentioned the.
Previous condition that we had where we had a lot of.
Fragmented.
<unk> sales companies and insurance agents and our company is really and now we have consolidated one insurance company in one.
Need seller and so.
<unk>, who is the one representing our businesses across carriage.
Portfolio.
We're able to integrate into the west fully for the third quarter of this year and it started to integrate this quarter really for the central region and will finish by January on the Eastern region.
So when you think about our year over year basis, I'm going to mention the prearranged funeral sales that included the old strategy for all the regions <unk>. This year, where we only have the western region in the third quarter of 2023, and so last year, we had $13 $8 million of we arranged funeral sales.
These year with just the change of the Western region in the third quarter, we have $15 7 million of bearing sales up 13, 9% increase on we need.
Funeral volume now.
Now from my General Agent Commission perspective last year, we received 152000 for the third quarter of 2022. The easier. We have received 465000 in commissions, which is an increase of 31, 9% on a year over year basis that is a very significant improvement.
Especially thinking or considering that only the west is in these numbers was we finished the fourth quarter will have the west and the central in those numbers and once we get into Q1 2024, we have all of carriage overtime I mentioned this in the past, we do expect to grow at a 40% rate year over.
A year from a revenue perspective, and that will increase over time.
<unk> continues to ramp up sales agents in the businesses, where we operate.
We continue to really integrate into our model and with our leadership team.
Great. That's really helpful. And then if I could just squeeze one last one in for Ken about.
I think you made a comment in there about kind of a reduction in maintenance capex.
Kind of give you a little flexibility on cash flow and certainly.
Helpful in terms of paying down the credit facility I know, it's maybe not much when we look on a dollar basis, but I'm just curious if that's something that we could see more of going forward just in terms of.
Kind of reallocating some some capex dollars.
Or anything else that you might think.
Could help us in terms of free cash flow generation and ultimately de levering.
Yes, J P. So I'll take the first crack at it and then I'll pass it over to Carlos in terms of what we're doing.
The field when it comes to maybe Capex, but from a financial perspective, we're just we're focused on the cost side, we're focused on paying down our debt. So it was really high grading and prioritizing these projects that we need to spend money on.
And.
Differentiating between whats discretionary in nature and kind of what is a must have and that's just something we've been focusing on so that way, we do pay down our debt because you know as I mentioned, our variable rate debt as well.
Sure.
Trending around 9% in terms of interest rates. So we're just trying to prioritize prioritize our capital allocation here.
Thank you.
What I'll add to that is if you look at our balance sheet.
<unk>.
Some cash flow.
The acquisition of <unk>, which was very significant.
And forget that we've invested in over $40 million on that business.
From a cash flow generation. In addition to that we have been able to do a really really good work as it relates to managing capex on both ends growth in maintenance from a growth perspective, we have not stopped growth opportunity because we need cemetery has done an amazing job. So when in fact, we have put a significant amount of capital this year.
Make sure we have enough inventory to continue to accelerate sales, especially in the new businesses that we have we have opened a new garden Greenlawn, we are about to start construction and <unk> east.
In Charlotte and the same.
The businesses, we already have like Oakmont millennials and then when a holders gatos and every every cemetery as well from a maintenance perspective, we've been more conservative making sure that our capital allocation decisions are based on where the capital is generating the highest return if we send emergency work and of course invest in it and make sure that the families.
Third well taken care of if it is something we can manage over a couple of years that we allocate our capital towards interest pay.
Payments because as you know that's what's the cash is going right now a very significant rate and so will it make sure we manage that very very well without putting.
Families advanced our business at risk or they can be seen the quality of service.
Understood. Thank you guys for the time today and best of luck going forward.
Thanks J P.
And this concludes today's question and answer session I'll now turn the floor to Carlos Casado for any additional or closing remarks.
We want to thank all of you for joining the call today.
Im not sure that we have a very strong company with tremendous fundamentals, we do have significant debt. We're working on it we will continue to focus our cash.
Cash free cash flowing to paying down our debt as much as we can accelerate that repayment and lower interest expense. We will continue to focus on grow on a same store and acquisition basis.
Specially through we need sales on both and cemetery MPI range funeral, we're very excited about the performance. We just presented to you from operational perspective, and the businesses. We continue to grow we can continue to put some really good numbers on the board.
And we hope to report even better numbers that we continue to.
How this calls and we'll talk to all of you in February. Thank you very much and we'll talk to you soon.
Thank you. This does conclude today's teleconference. We thank you for your participation you may disconnect your lines at this time.
[music].
Okay.
Okay.
Okay.
Okay.
[music].
Yes.
[music].
Okay.
[music].
Yeah.
Okay.
[music].