Q1 2024 Newmark Group Inc Earnings Call
Operator: Ladies and gentlemen, thank you for holding for today's call. We are currently assembling today's audience and plan to begin shortly. We appreciate your patience, and please remain connected at this time.
Ladies and gentlemen, thank you for holding for today's call. We are currently assembling today's audience and plan to be underway. Shortly we appreciate your patience and please remain connected at this time.
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Good day and welcome to the Newmark Group first quarter 2024 financial results call. Today's conference is being recorded at this time I would like to turn the conference over to Jason Mcgruder head of Investor Relations. Please go ahead.
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Operator: Good day, and welcome to the Newmark Group first quarter 2024 financial results call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jason McGruder, head of investor relations. Please go ahead.
Jason A. McGruder: Thank you, Operator, and good morning. Newmark issued its first quarter 2024 financial results press release this morning. Unless otherwise stated, the results provided on today's call compare only the three months ending March 31st, 2024 with a year earlier period. We will be referring to results only on a non-GAAP basis, which includes the terms Adjusted Earnings and Adjusted EBITDA, unless otherwise stated. Any figures discussed today with respect to cash flow from operations refer to net cash provided by operating activities excluding loan origination and sales.
Jason A. McGruder: Thank you operator, and good morning Newmark.
Jason A. McGruder: Newmark issued its first quarter 2024 financial results press release. This morning, unless otherwise stated the results provided on today's call compare only the three months ending March 31, 2024, with a year earlier period.
Except as otherwise stated.
Jason A. McGruder: We will be referring to results only on a non-GAAP basis, which include the terms adjusted earnings and adjusted EBITDA.
Jason A. McGruder: Unless otherwise stated any figures discussed today with respect to cash flow from operations refer to net cash provided by operating activities, excluding loan origination and sale.
Jason A. McGruder: Please refer to today's press release, the supplemental tables, and the quarterly results presentation on our website for complete and updated definitions of any non-GAAP terms, reconciliation of these terms to the corresponding GAAP results, and how, when, and why management uses them, as well as relevant industry or economic statistics. Our outlook discussed today assumes no material acquisitions or meaningful changes in our stock price. Our expectations are subject to change based on various macroeconomic, social, political, and other factors.
Jason A. McGruder: Please refer to today's press release, the supplemental table in the quarterly results presentation on our website for a complete.
Jason A. McGruder: Updated definitions of any non-GAAP terms reconciliation of these terms to the corresponding GAAP results and how when and why management uses them as well as relevant industry or economic statistics.
Jason A. McGruder: Let's discuss today assumes no material acquisitions or meaningful changes in our stock price expectations are subject to change based on various macroeconomic social political or other factors, none of our targets or goals beyond 2024 should be consider formal guidance.
Jason A. McGruder: None of our targets or goals beyond 2024 should be considered formal guidance. I also remind you that the information on this call contains forward-looking statements, including, without limitation, statements concerning our economic outlook and business. Such statements are subject to risks and uncertainties, which could cause your actual results to differ from expectations. Unless required by law, we undertake no obligation to update any forward-looking statements. I am now happy to turn the call over to our host, Chief Executive Officer, Barry Gosin.
Jason A. McGruder: So remind you that information on this call contains forward looking statements, including without limitation statements concerning our economic outlook and business such statements are subject to risks and uncertainties, which could cause our actual results to differ from expectations, except as required by law. We undertake no obligation to update any forward looking statements.
Jason A. McGruder: A discussion of risks and other factors that may impact. These forward looking statements see our SEC filings, including but not limited to the risk factors and disclosures required regarding forward looking information in our most recent SEC filings, which are incorporated by reference I'm now happy to turn the call over to our host.
Jason A. McGruder: And Chief Executive Officer, Barry Gossip.
Barry M. Gosin: Good morning, and thank you for joining us. We are at the beginning of a once in a generation opportunity for Newmark to grow its business. There is a record $929 billion of U.S. commercial and multifamily mortgage maturities due in 2024, and $2 trillion over the next three years. We estimate that approximately one-third of these maturing loans are likely to result in a loan sale or property sale. One-third will need assistance with restructurings and or recapitalization, and one-third will likely require an advisor to help find new lenders.
Barry M. Gosin: Good morning, and thank you for joining us.
Barry M. Gosin: We were at the beginning of a once in a generation opportunity for newmark to grow its business.
Barry M. Gosin: There was a record $929 billion of U S commercial and multifamily mortgage maturities due in 2024.
Barry M. Gosin: And two trillion dollars over the next three years.
Barry M. Gosin: We estimate that approximately one third of these maturing loans are likely to result in a loan sale of property sale.
Barry M. Gosin: One third will need assistance with restructurings <unk> recapitalization, and one third will likely require an adviser to help find new lenders.
Barry M. Gosin: Our substantial investments in data, analytics, and talent uniquely position us to capitalize on these macroeconomic trends and to continue outperforming the industry. Newmark's nearly 14% increase in capital markets revenues outpaced the industry for the third consecutive quarter. This strong performance was led by a 51% improvement in debt origination fees, multiple times greater than the industry. Our leading presence in capital markets will drive business across Newmark's other servicing lines, including leasing, management, and services.
Barry M. Gosin: Our substantial investments in data analytics and talent uniquely position us to capitalize on these macroeconomic trends and to continue outperforming the industry.
Barry M. Gosin: <unk> nearly 14% increase in capital markets revenues outpaced the industry for the third consecutive quarter. This strong performance was led by a 51% improvement in debt origination fees.
Barry M. Gosin: Couple times greater than the industry, our leading presence in capital markets will drive business across numerous other servicing lines, including leasing management and servicing.
Barry M. Gosin: We are making considerable gains toward a goal of becoming the number one capital markets advisor in the U.S., while also expanding internationally across all service lines. During the quarter, Newmark opened a flagship office in France, continental Europe's second largest transaction market. We attracted some of the most talented leasing and capital markets professionals in the industry, which further demonstrates the strength of our brand. Newmark's leasing results were impacted by industry-wide activity declines of more than 10% in the U.S. and over 20% in the U.K. We expect office leasing fundamentals to improve as the recapitalization of properties at lower values leads to a more attractive leasing market.
Barry M. Gosin: We are making considerable gains toward our goal of becoming the number one capital markets advisor in the U S. While also expanding internationally across all service lines.
Barry M. Gosin: During the quarter Newmark opened a flagship office in France, Continental Europe's second largest transaction market. We attracted some of the most talented leasing and capital markets professionals in the industry, which further demonstrates the strength of our brand.
Barry M. Gosin: <unk> leasing results were impacted by industry wide activity declines of more than 10% in the U S and over 20% in the U K, we expect office leasing fundamentals to improve as the recapitalization of properties at lower values leads to a more attractive leasing market. We continue to expect sorry.
Barry M. Gosin: We continue to expect solid fundamentals in industrial and retail leasing, which together represent 41% of Newmark's leasing revenues over our last 12 months. We increased revenues from management services, servicing fees, and other by 21%, the third consecutive quarter of double-digit growth. This reflected the addition of Gerald Eve, as well as strong organic growth from our high-margin servicing and asset management platform. Due to substantial investments in talent and the improving environment, our target is to generate over $3 billion in revenue and more than $630 million of adjusted EBITDA in 2026. With that said, I'm happy to turn the call over to our CFO, Michael Rispoli.
Barry M. Gosin: Would fundamentals in industrial and retail leasing, which together represents 41% of newmark leasing revenues over our last 12 months.
Barry M. Gosin: We increased revenues for management services servicing fees and other by 21% the third consecutive quarter of double digit growth. This reflected the addition of Gerald <unk> as well as strong organic growth from our high margin servicing and asset management platform.
Due to substantial investments in talent and the improving environment, our target is to generate over $3 billion in revenue and more than $630 million of adjusted EBITDA in 2026 with that I'm happy to turn the call over to our CEO CFO micro slowly.
Michael J. Rispoli: Thank you, Barry, and good morning. Total revenues grew 4.9% to $546.5 million. Fees for management services, servicing, and other grew by 22.7%. This improvement includes the addition of Gerald Eve, as well as 21.4% organic growth from our high-margin servicing and asset management platform. Our leasing revenues declined by 17.9%, reflecting double-digit industry declines; for the full year, we expect leasing to be down modestly. Our investment sales revenues were down 1.6% compared to a 16% U.S. industry decline.
Micro: Thank you Barry and good morning.
CFO: Total revenues grew four 9% to $546 $5 million.
CFO: He is from management services servicing and other grew by 22, 7%.
CFO: This improvement includes the addition of Geraldine.
CFO: Well as 21, 4% organic growth from our high margin servicing and asset management platform.
CFO: Our leasing revenues declined by 17, 9%, reflecting double digit industry declines.
CFO: The full year, we expect leasing to be down modestly.
CFO: Our investment sales revenues were down one 6% compared to a 16% U S industry decline.
Michael J. Rispoli: We grew our debt origination fees by 50.5%, outperforming U.S. industry volumes, which were up by approximately 5%. Turning to expenses, our compensation expenses were flat on higher revenues, but we're down by 1.1%, excluding pass-through items, largely due to lower variable commissions and our cost savings initiative. These expenses were partially offset by acquisitions and the recent hiring of revenue-generating professionals. Non-compensation expenses excluding pass-through items were up $10.6 million due to a $6 million increase in interest expense on our GSE warehouse lines, which was offset with interest income on the GSE loans held for sale. Non-compensation expenses also include the addition of Geraldine.
CFO: We grew our debt origination fees by 55% outperforming U S industry volumes, which were up by approximately 5%.
CFO: Turning to expenses.
CFO: Our compensation expenses were flat on higher revenues, but were down by one 1% excluding pass through items.
CFO: Largely due to lower variable commissions and our cost savings initiatives.
CFO: These expenses were partially offset by acquisitions and the recent hiring of revenue generating professionals.
CFO: Non compensation expenses, excluding pass through items were up $10 $6 million due to a $6 million increase in interest expense on our GSE warehouse lines, which was offset with interest income on the GSE loans held for sale.
CFO: Non compensation expenses also include the addition of <unk>.
Michael J. Rispoli: We remain on track to complete our $75 million cost savings plan by the end of the second quarter. Turning to earnings, Adjusted earnings per share were $0.15, and our adjusted EBITDA was $63.5 million. Our fully diluted weighted average share count was $255.4 million compared with $249.8 million in the fourth quarter of 2023. 1.9 million shares of this increase relates to the accelerated recognition under GAAP of RSUs due to the 38.5% increase in our average share price per share quarter-on-quarter.
CFO: We remain on track to complete our $75 million cost savings plan by the end of the second quarter.
CFO: Turning to earnings.
CFO: Adjusted earnings per share were <unk> 15 cents and our adjusted EBITDA was $63 $5 million.
CFO: Our fully diluted weighted average share count was $255 4 million.
CFO: Compared with $249 8 million in the fourth quarter of 2023.
CFO: One 9 million shares of this increase relates to the accelerated recognition under GAAP.
CFO: Our issues due to the 38, 5% increase in our average share price per share quarter on quarter.
Michael J. Rispoli: We expect our fully diluted weighted average share count to decline for the balance of the year and to grow by approximately 2% as compared to our 2023 weighted average of 246.3 million. Turning to the balance sheet, the company has no near-term debt maturity. In January, we issued $600 million of 7.5% senior notes through January 2029. And last week, we extended our $600 million credit facility through April 2027. We ended the quarter with $140.9 million of cash and cash equivalents. The change from year end included $59.8 million of cash generated by the business and $125 million of incremental corporate debt, offset by $161.1 million primarily related to the hiring of revenue-generating professionals.
CFO: We expect our fully diluted weighted average share count to decline for the balance of the year and to grow by approximately 2% as compared to our 2023 weighted average at $246 3 million.
CFO: Turning to the balance sheet.
CFO: The company has no near term debt maturities in.
In January we issued $600 million of seven 5% senior notes due January 2029, and last week, we extended our $600 million credit facility through April of 2020.
CFO: We ended the quarter with $149 million of cash and cash equivalents.
CFO: From year end included $59 $8 million of cash generated by the business and.
CFO: And $125 million of incremental corporate debt.
CFO: Offset by $161 1 million.
CFO: <unk> related to the hiring of revenue generating professionals.
Michael J. Rispoli: Moving to guidance, our outlook for full year 2024 remains largely unchanged. We continue to expect sequential and year-over-year improvement in earnings in the second and third quarters. And with that, I would like to open the call to questions.
CFO: Moving to guidance.
Our outlook for full year 2024 remains largely unchanged.
CFO: We continue to expect sequential and year over year improvement in earnings in the second and third quarters.
Speaker Change: And with that I would like to open the call for questions.
Speaker Change: Okay.
Operator: Thank you. If you would like to ask a question, you may signal by pressing star 1 on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, that is star 1 to ask a question. And we'll pause for just a moment to allow everyone an opportunity to signal, and our first question will come from Alexander Goldfarb with Piper Sandler.
Speaker Change: Thank you.
Speaker Change: We would like to ask a question you may signal by pressing star one on your telephone keypad.
We're using a speaker phone. Please make sure your mute function is turned off to allow your signal to reach our equipment again that is star one to ask a question.
Speaker Change: Well pause for just a moment to allow everyone an opportunity to signal.
Speaker Change: And our first question will come from Alexander Goldfarb with Piper Sandler.
Alexander David Goldfarb: Hey, morning, morning down there. Just a few questions. First off, if you can just give a little bit more color about the leasing and maybe, you know, in REIT land, we're clouded by, you know, a small subset, but, you know, a number of the companies had, you know, some really good leasing metrics. And just curious, you know, how your leasing compares to what we're seeing on the REIT side, which would be accounting for the significant drop off.
Speaker Change: Okay.
Alexander David Goldfarb: Hi, good morning, good morning down there.
Alexander David Goldfarb: Just a few questions first off if you can just give a little bit more color about the leasing and maybe you know in REIT land were clouded by a small subset but.
Alexander David Goldfarb: A number of the companies had some really good leasing metrics.
Alexander David Goldfarb: And just curious.
Alexander David Goldfarb: How you're leasing compares to what we're seeing on the REIT side.
Which would be accounting for the for the significant drop off.
Alexander David Goldfarb: Mostly.
Alexander David Goldfarb: Ill.
Alexander David Goldfarb: Okay.
Luis Alvarado: [inaudible] So Alex, this is Luis Alvarado. Look, a lot of this is timing, right? We had a really solid fourth quarter. We closed a lot of large transactions in that quarter. In the first quarter, we had fewer transactions and some slipped. We expect sequential improvement as we go throughout the year. And our pipeline and activity is solid. So I just see this as a timing issue for us for the first quarter
Alexander David Goldfarb: Alex is slow operator.
Look a lot of this is timing right. We had a really solid fourth quarter, we closed a lot of large transactions in that quarter.
First quarter, we had fewer transactions and some slipped we expect sequential improvement as we go throughout the year and we are in our pipeline and activity is solid so.
I just see this as a timing issue for us for the first quarter.
Barry M. Gosin: Okay, no, that's helpful, though. The second question is, Barry, you know, we always seem like, you know, you have to go back to the RTC days to see, you know, a deluge of distress products strewn on the street for people to transact. And since the GFC, you know, we haven't really seen, you know, large-scale distress in the market. It's, you know, a transaction here or there. And lately, at least from what the REITs are talking about, the transaction market's been really thin because a lot of banks, it seems, aren't forcing owners to transact.
Speaker Change: Okay. No that's helpful. Though the second question is Barry.
Speaker Change: We always.
Speaker Change: It seems like you have to go back to the RTC days to see like.
Barry M. Gosin: Deluge of distressed products on the street for people to transact in and since the Dfc.
Barry M. Gosin: Haven't really seen large scale distress in the market.
Barry M. Gosin: Transaction here or there.
Lately at least from what the Reits are talking about the transaction market has been really thin because a lot of banks it seems arent, forcing owners to transact and with all the money on the sideline. It seems like those who may want to transact realized that there's a strong bid for their product even if it's a negative leverage.
Barry M. Gosin: And with all the money on the sidelines, it seems like those who may want to transact realize that there's a strong bid for their product, even if it's a negative leverage. So how do you envision the world playing out on the transaction front? Do you think it's the regulators that really are going easy on the owners, on the banks, and therefore they're not forcing deals to come to market? Or what do you think has to happen so that we start to see more transactions come about?
So how do you envision the world playing out on the transaction front do you think it's the regulators that really are going easy on on the on the.
Barry M. Gosin: The owners on the banks, and therefore, theyre not forcing deals to come to market or what do you think has to happen.
Barry M. Gosin: We start to see more transactions come about.
Barry M. Gosin: Well, you know, every cycle is different. This one is different.
Well.
Barry M. Gosin: Every cycle is different this one is different the playbook.
Barry M. Gosin: <unk> has been uniquely designed for each each cycle.
Barry M. Gosin: The playbook of the Fed has been uniquely designed for each cycle. At the bank level, it's, it's, you know, there's a concern inside banks as to whether they want to open up the hood and say, okay, we want to sell these loans because if there is a focus or a magnifying glass on some of their riskier loans, you know, they're concerned about deposits. So, it's, you know, it's sort of a little bit of a Kabuki dance around that, but ultimately, it all plays out.
Barry M. Gosin: At the at the bank level.
Barry M. Gosin: It's there's a concern inside banks as to whether they want to open up the hood.
Barry M. Gosin: Say, okay, we want to sell these loans because if there is focus.
Barry M. Gosin: Magnifying glass on some of the riskier loans, they're concerned about deposit so so.
Barry M. Gosin: It's sort of a little bit of a kabuki dance around that but ultimately it all plays out.
Barry M. Gosin: There is, as I said, nine hundred and twenty nine million billion dollars of maturities and two billion, two trillion over the next few years. And all those are gonna play into the question for any owner in the world. That is either underwater makes makes the consider a considers how much money he can invest in re, tenanting, and growing, keeping the building versus how much, you know, whether he should give the keys back or refinance or sell.
Barry M. Gosin: There is that as I said 929 million $1 billion of maturities in two <unk> billion.
Barry M. Gosin: <unk> two trillion over the next few years and all all of those are going to play into Youll see the special Servicers continue to pickup business as.
Barry M. Gosin: As maturities come due the question for any owner in the world that is either underwater half mix makes the it consider a considers how much money is you can invest and re tenanted and growing keeping the building versus how much whether he should give the keys back or.
Barry M. Gosin: <unk> or cell and Thats, you know thats going to all play out we're seeing it we're seeing more loan sales, we're seeing more discussions.
Barry M. Gosin: And that's, you know, that's gonna all play out. We're seeing it. We're seeing more loan sales. We're seeing more discussions about properties that are distressed in creative ways and creative solutions for the borrowers to be able to live and extend and for the lenders to keep their properties from hitting the open market. You know, there are many ways to do that, and we're seeing all of it. So I, there is no one fix, but it, you know, but it, the volume of business is there. The opportunity is there, and it is, you know, it's just a question of exactly when and how, but it will happen.
Barry M. Gosin: About properties that are distressed on creative ways and creative solutions to for the borrowers to be able to live and extend.
Barry M. Gosin: And for the lenders to keep their properties from hitting them open market. There are many ways to do that and we're seeing all of it. So there is no one fix but it but it's the volume of business is there the opportunity is there and it is it's just a question.
Barry M. Gosin: Exactly when and how but it will happen.
Barry M. Gosin: So let me just follow up on that. Is there, and I'm assuming you're going to tell me the answer is yes, Alex? You guys are positioned not only in absolute transactions, whether it's property or loans, but you're also in the advisory help of working with the banks, working with the owners, so even if there's not a transaction, you're getting in there and helping to advise on restructuring, even if nothing comes about, meaning the loan or the building doesn't trade, but you have a team that helps with that sort of internal advisory stuff, correct?
Speaker Change: So let me just follow up on that is there and I'm, assuming you're going to tell me. The answer is yes. Alex you guys are positioned not only in absolute transactions, whether it's property or loans, but you're also in the advisory of help.
Speaker Change: Working with the banks working with the owners, but even if there is not a transaction you are getting in there and helping to advise on restructuring even if nothing comes about meeting the loan or the building doesn't trade, but you you have a team that helps that sort of internal advisory stuff correct.
Barry M. Gosin: Absolutely. We have a team that specializes in looking at risk assessment and stress testing within banks. We have lots of different parts of our business, servicing, loan screening, asset management, that could help institutions that are lending money to flex up and flex down. We built this company for this moment.
Speaker Change: Absolutely we have a team that specializes in looks.
Looking at our risk assessment and stress testing within banks, we have.
Speaker Change: Lots of different parts of our business.
Servicing loan screening.
Speaker Change: Asset management that could help institutions that are lending money to flex up and flex down.
Speaker Change: We built this company.
Speaker Change: For this moment.
Barry M. Gosin: And a lot of that requires infrastructure and people who are experts at being able to navigate that. So it's a combination of more bespoke, unique, creative solutions from the borrower's perspective to avoid recapture, keep the building, and get new fresh money. And for the lenders to be able to restructure their deals and get new money into the equation. There are some, you know, some indications that the CMBS market on a floating rate is opening up, which indicates there is, and it's more in the private sector that there is money.
Speaker Change: And a lot of that requires infrastructure and people who are experts at being able to navigate that so it's a combination of more bespoke unique creative solutions to from the borrower's perspective to avoid recapture keep the building get new fresh money.
Speaker Change: And for those lenders to be able to restructure the deals get get new money into the equation. There is there are some.
Speaker Change: Some indications here the <unk> market on a floating rate is opening up which indicates area and it's more in the private sector that there is money.
Barry M. Gosin: If once there is money available, and you hit a place where maybe it's not negative leverage, but even with the opportunity for interest rates to decline and cap rates to rise, you know, there are, there are so many triggers and levers that create moments of opportunity. But there is also that wall of money on the positive side that is ready and sitting there looking for the moment when the opportunity is to strike. Thank you, Barry. Thank you.
Speaker Change: Once there is money available and you hit a place where maybe its not negative leverage but even.
Speaker Change: With the opportunity for interest rates the decline in cap rates to rise.
Speaker Change: There are so many triggers and levers that create moments of opportunity, but there also is a wall of money on the positive side that is ready and sitting there looking for the moment when the opportunity is stripe.
Speaker Change: Thank you Barry.
Barry M. Gosin: Thank you.
Operator: And before we head to our next question, as a reminder to our audience, that is star number one to join the queue. Our next question comes from Jade Rahmani with KBW. Hi, this is actually Jason Sapshon. I'm for Jade.
And before we head to our next question as a reminder to our audience that is star one to join the queue.
Barry M. Gosin: Our next question comes from Jade Rahmani with K B W.
Barry M. Gosin: Hi, This is actually Jason snapshot on for Jade.
It would be great to hear you touch on interesting growth areas that youre looking at beyond capital markets.
Barry M. Gosin: Well, we've, we've hired some great leasing talent in the last six months. I mean, if you saw in the report, we spent $161 million in the quarter, our largest ever on the acquisition of talent, and it's not all capital markets.
Jason: Well, we we've we've hired some great leasing talent in the last six months and then if you saw in the report we have spent $161 million in the quarter, our largest ever in the acquisition of talent and it's not all capital markets.
Jason: There was a reason we pivoted to capital markets the follow on.
Barry M. Gosin: There was a reason we pivoted to capital markets, you know, the follow-on halo business that comes along with it. In every aspect, it will bring the leasing business will bring the financing business. We do, we have had some really good wins in corporate services; we are adding to our global footprint, which then makes it more accessible to the large global corporate clients. So, you know, we're doing all the things as we focus on capital markets to build that with a determined intentional goal to be number one; we have the same goal with leasing and, and tenant rep and multi-market occupiers advisory business.
Jason: Halo business that comes along with it.
Jason: In every aspect will bring leasing business will bring financing business.
Jason: We do we have one had some really good wins in the corporate services, we are adding to our to our global footprint, which then makes it more with us more accessible to the large global corporate.
Jason: Our clients. So we're doing all the things as we as we focused on capital markets to build that with.
Jason: With a determined intentional goal to be number one.
Jason: We have the same goal with leasing and tenant.
Jason: Tenant rep and multimarket occupiers.
Jason: Advisory business. So it's like everything we've done with basically a work in progress we continue to elevate the brand.
Barry M. Gosin: So, you know, it's like everything we've done is basically a work in progress. We continue to elevate the brand. It's a good place for talented brokers. We know the interest around the system. We're seeing a lot of people who are interested in coming to us as the brand grows. It actually is easier and better and less costly for us to bring in talent. So, it's all, you know; it's all a work in progress.
Jason: Good place for the talented brokers, we know the interest around the system.
Jason: We're seeing a lot of people who are interested in coming to us.
Jason: As the brand elevated actually is easier and better and less costly for us to bring in talent. So.
Jason: So it's all in it's all a work in progress.
Speaker Change: Great. Thank you for the color.
Speaker Change: Thank you.
Barry M. Gosin: And it does appear that there are no further questions at this time. Mr. Gosin, I will turn the conference back to you for any closing or additional remarks. Thank you all for joining us.
Speaker Change: And it does appear that there are no further questions at this time, Mr. Goss and I will turn the conference back to you for any closing or additional remarks.
Barry M. Gosin: Thank you all for joining us this quarter. I'm very excited about the prospects of our future and look forward to seeing you at the next quarter.
Speaker Change: Thank you all for joining us this quarter.
Very excited about the prospects of our future and look forward to seeing into next quarter.
Operator: This concludes today's call. Thank you for your participation. You may now disconnect.
Speaker Change: This concludes today's call. Thank you for your participation you may now disconnect.
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