Q1 2024 United Homes Group Earnings Call
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Operator: Good day everyone, and welcome to the United Homes Group first quarter 2024 earnings call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask questions by pressing Star and 1 on your telephone keypad. You may withdraw your question by pressing Star 2.
Speaker Change: Good day, everyone and welcome to the United Homes Group first quarter 2024 earnings call.
Speaker Change: At this time all participants are in a listen only mode.
Speaker Change: Later, you will have the opportunity to ask questions. During the question and answer session.
Speaker Change: You remember I did you start to ask questions by pressing star one on your telephone keypad.
Speaker Change: Draw your question by pressing star too please.
Operator: Please note this call may be recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Erin. Please go ahead.
Speaker Change: Please note this call maybe recorded and I will be standing by should you need any assistance.
Speaker Change: It is now my pleasure to turn the conference over to Erin. Please go ahead.
Erin: Good morning, and welcome to United Homes Group's first quarter of 2024 earnings call. Before the call begins, I would like to note that this call will include forward-looking statements within the meaning of the federal security clause. United Homes Group cautions that forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. These risks and uncertainties include, but are not limited to, the risk factors described by United Homes Group in its filings with the Securities and Exchange Commission.
Erin: Morning, and welcome to Unitedhealth group's first quarter of 2024 earnings call before the call begins I would like to note that this call will include forward looking statements within the meaning of the federal Securities laws Unitedhealth group caution that forward looking statements are subject to numerous assumptions risks and uncertainties, which change over time these risks and uncertainties.
Erin: Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws. Additionally, reconciliations of non-GAAP financial measures discussed on this call to the most directly comparable GAAP measures can be accessed through the company's website and in its SEC filing. Hosting the call today are United Home Group President, Jack Masenko, Chief Operating Officer, Shelton Twine, and Chief Financial Officer, Keith Feldman. With that, I'd like to turn the call over to Jack.
Erin: But are not limited to the risk factors described by Unitedhealth group and its filings with the Securities and Exchange Commission. Accordingly forward looking statements should not be relied upon as representing our views as of any subsequent date and you should not place undue reliance on these forward looking statements. We do not undertake any obligation to update forward looking statements to reflect events or.
Erin: Campus. After the date they were made whether as a result of new information future events or otherwise, except as may be required under applicable securities laws. Additionally, reconciliations of non-GAAP financial measures discussed on this call to the most directly comparable GAAP measures can be accessed through the companys website and in its SEC filings.
Erin: Hosting the call today are Unitedhealth group's president Jack with Banco Chief Operating Officer, Shelton, Twine, and Chief Financial Officer, Keith Feldman with that I'd like to turn the call over to Jack.
Jack Masenko: Good morning everyone. United Homes Group made progress on a number of fronts in the first quarter of 2024 as we continue to pursue our goal of becoming one of the premier homebuilders in the southeastern United States. With a focus on affordability, a landline operating strategy, and a strong track record of home building success, United Homes is poised to grow beyond its existing footprint through both strategic M&A and organic growth. We continue to see a favorable home building landscape in our markets, thanks to a lack of home inventory in the resale market, continued strong job growth, and household formation.
Erin: Okay.
Jack: Thank you Aaron Good morning, everyone, Great homes group made a progress on a number of fronts in the first quarter 2024, as we continue to pursue our goal of becoming one of the premier homebuilders in the southeastern United States.
Erin: With a focus on affordability.
Erin: Operating strategy and our strong track record of homebuilding success.
Erin: Holmes is poised to grow beyond its existing footprint for both strategic M&A inorganic growth continues.
Erin: We continue to see a favorable homebuilding landscape in our markets. Thanks to a lack of home inventory in the resale market continued strong job growth and household formation, both companies and families continue to migrate cities and throughout the south east, creating a need for new housing we plan on capitalizing on this trend for years to come.
Jack Masenko: Both companies and families continue to migrate to cities and throughout the Southeast, creating a need for new housing, and we plan on capitalizing on this trend for years to come. As we have stated in the past, M&A will be a key driver of our expansion in this new market. We feel we have a competitive advantage over our peers because of our southeastern roots and our willingness to retain the acquired company's personnel, following the trend.
Erin: As we stated in the past M&A will be a key driver of our expansion into new markets.
Erin: We have a competitive advantage over our peers, given our south eastern routes and our willingness to retain the acquired company's personnel following the transaction.
Jack Masenko: We've already executed a number of acquisitions, the most recent being Creekside Custom Homes, which closed in the first quarter and further expanded our presence in the coastal region of South Carolina. The integration of Creekside and the other acquired builders is progressing nicely, and we are excited to have them as part of our team. We are constantly evaluating possible deals in our markets and hope to add more builders to our platform this year, provided they're a good fit to our company from a financial and cultural perspective.
We're already executed a number of acquisitions the most recent being creekside custom homes.
Closed in the first quarter further expanded our presence in the coastal region of South Carolina integration of Creekside any other acquired builders are progressing nicely and we are in.
Erin: Excited to have them as part of our team we are constantly evaluating possible deals in our markets and hope to add more builder store platform. This year, providing they are a good fit to our company from a financial and cultural perspective.
Jack Masenko: We ended the first quarter with just over 11,000 lots owned and controlled, giving us a great runway for future growth. We remain committed to securing our land capital in a capital-efficient manner through the use of options agreements and land banking arrangements. We feel that offloading much of the cost associated with land development will allow us to focus on our core competency of building and selling homes. Our landline efforts got a real boost in the first quarter with our entry into a strategic partnership with a large land banking partner and closing on our initial transaction with that partner.
Erin: We ended the first quarter with just over 11000 lots owned and controlled giving us a great runway for future growth, we remain committed to security our land capital and a capital efficient manner through the use of option agreements and land banking arrangements, we feel that offloading much of the cost associate with land development will allow us to focus on our core competency of building and selling homes.
Erin: Landline efforts got a real boost in the first quarter with our entry into a strategic partnership with a large land banking partner and closing on our initial transaction with that partner. They also didn't entered into definitive agreement for a newly created landfall just this week, which Keith will speak to in his commentary later overall.
Jack Masenko: We also entered into a definitive agreement for a newly created land fund just this week, which Keith will speak to in his commentary later. Overall, I'm pleased with our market positioning at the end of the first quarter and remain excited about the opportunities that lie ahead. We made further progress towards our long-term goal of becoming a premier homeowner in the southeastern U.S., while maintaining a focus on new home affordability. We ended the quarter with a sold backlog of 262 homes, which represented a 39% increase over the first quarter of 2023 and which should lead to strong cash flow generation in coming quarters.
Erin: Overall, I'm pleased with our market positioning at the end of the first quarter and remain excited about the opportunities that lie ahead.
Erin: We made further progress towards long term goal of becoming a premier homebuilder in the southeastern U S. While maintaining a focus on new home affordability. We ended the quarter with a solid backlog of 262 homes, which represented a 39% increase over the first quarter of 2023, and which should lead to strong cash flow generation in coming quarters. They also maintain a strong balance sheet with over 28 million of cash and 63 million.
Jack Masenko: We also maintained a strong balance sheet, with over $28 million in cash and $63 million of undrawn revolver capacity under our credit facility. As a result, I believe United Homes Group is well positioned to achieve our goals for 2024 and beyond. Now, I'd like to turn the call over to Sheldon, who will provide some more detail on operations.
Erin: Of Undrawn revolver capacity under our credit facility as a result, I believe United homes group is well positioned to achieve our goals for 2024 and beyond now I'd like to turn the call over to Shelby, who will provide some more detail on operations this quarter.
Shelton Twine: Thanks, Jack, and good morning to everyone. United Homes delivered 311 homes in the first quarter of 2024, generating home sales revenue of $101 million. Our Midlands Division was the biggest contributor to our delivery total, followed by our Upstate and Coastal Divisions. Construction cycle times have returned to pre-pandemic levels, as we saw a real improvement in the availability of labor and materials as compared to last year. We believe this year-over-year improvement in cycle time, along with our 39 percent unit backlog increase to end the quarter, will lead to strong cash flow generation in the coming quarters, as Jack mentioned.
Thanks, Jack and good morning to everyone.
Shelby: <unk> delivered 311 homes in the first quarter of 2024 generating home sales revenue of $101 million or Midlands Division was the biggest contributor to our delivery total followed by our upstate and coastal divisions.
Shelby: Construction cycle times have returned to pre pandemic levels as we saw a real improvement in the availability of labor and material as compared to last year.
Shelby: We believe this year over year improvement in cycle time, along with our 39% unit backlog increased in the quarter will lead to strong cash flow generation in the coming quarters as Jack mentioned.
Shelton Twine: We sold 384 homes during the quarter at a sales pace of 2.6 per active community per month. Following the close of the first quarter, we generated 118 new net orders in April, which was fairly consistent with March, a signal that demand trends are staying positive as we move through spring selling. Financing incentives remain an important selling tool at our communities as they help buyers secure a monthly payment that fits within their budget.
Shelby: We sold 384 homes during the quarter on a sales pace of two six per active community per month.
Shelby: Following the close of the first quarter, we generated 118, new net orders in April which was fairly consistent with March a signal of the demand trends are staying positive as we move through the spring selling season.
Shelby: Financing incentives remain an important selling tool in our communities as they helped by our secured a monthly payment that fits within their budget.
Shelton Twine: We begin the year at elevated incentive levels but were successful in dialing them back as the first quarter progressed. We are optimistic this downward trend in incentive levels will continue, though much of it will depend on the trajectory of interest rates from here. We continue to see motivated, engaged, and committed buyers in our markets thanks to the lack of available supply and the steady flow of new jobs and people into the region.
We began the year at elevated incentive levels, but we're successful in die on the back is the first quarter progressed well.
Shelby: We are optimistic this downward trend in incentive levels will continue then much of it will depend on the trajectory of interest rates from here.
Shelby: We continue to see motivated engaged and engaged buyers in our markets. Thanks to the lack of available supply in the steady flow of new jobs and people into the region.
Shelton Twine: Our cancellation rate during the quarter was 10%, a level that implies that prospective buyers who move forward with their purchase will remain committed and confident in their decision throughout the home buying process. Overall, we saw solid demand and traffic trends at our communities throughout the first quarter, and this carried into April. We continue to strike a balance between price and pace to achieve our desired return goals and deliver homes in a timely manner.
Shelby: Our cancellation rate during the quarter was 10%.
Shelby: That implies that prospective buyers, who can move forward with their purchase remain committed and confident in their decision through the home buying process.
Shelby: Overall, we saw solid demand and traffic trends at our communities throughout the first quarter and this carried into April.
Shelby: We continue to strike a balance between price and pace to achieve our desired return goals and delivered homes in a timely manner.
Shelton Twine: We have a healthy pipeline of lots, which will allow us to fulfill our delivery goal for 2004 and beyond, and an affordable product focus that meets the needs of most entry-level buyers in our markets in terms of quality and value. While we still have a lot of work to do to become the large-scale Southeast builder that we want to be, I believe we are on the right track to achieve that goal. With that, I'd like to turn the call over to Keith, who will provide more detail on our financial results this week.
Shelby: We have a healthy pipeline of block, which will allow us to fulfill our delivery goals for 2004 and beyond and an affordable product focus that meets the needs of most entry level buyers in our markets in terms of quality and value.
While we still have a lot of work to do to become the large scale southeastern builder that we want to be I believe we are on the right track to achieve that goal.
Shelby: With that I'd like to turn the call over to Keith who will provide more detail on our financial results this quarter.
Keith Feldman: Thank you, Jack and Sheldon, and good morning. For the first quarter of 2024, net income was $24.9 million, which included a change in fair value of $26.4 million, primarily related to the accounting for potential earn out, which will fluctuate on our financial statements each quarter based on our ending stock price. This earn-out will be paid only in common shares upon reaching certain stock price hurdles and can never result in a cash expense for the company.
Keith Feldman: Thank you Jack and Shannon Good morning for the first quarter of 2024 net income was $24 9 million, which included a change in fair value of $26 4 million primarily related to the accounting for potential earn out which will fluctuate on our financial statements each quarter based on our ending stock price.
Keith Feldman: This earn out will be paid only in common shares upon reaching certain stock price hurdles and can never resulted in a cash expense for the company.
Keith Feldman: Revenue for the first quarter of 2024 was $100.8 million compared to $94.8 million for the first quarter of 2023. Home closings during the first quarter of 2024 were 311 homes compared to 328 homes in the first quarter of 2023. The average sales price during the first quarter of 2024 was $335,000 for 286 production built homes. This compared to an average sales price of $314,000 during the first quarter of 2023 for 294 production built homes.
Keith Feldman: Revenue for the first quarter of 2024, it was $100 8 million compared to $94 8 million for the first quarter of 2023 home closings. During the first quarter of 2024 were 311 homes compared to 328 homes in the first quarter of 2023.
Keith Feldman: Average sales price during the first quarter of 2024 was 335000 for 286 production built homes as compared to an average sales price of 314000 during the first quarter of 2023 for 294 production hubs.
Keith Feldman: As Sean mentioned, our net new orders during the first quarter of 2024 were 384 homes compared to 389 homes in the first quarter of 2023.
Keith Feldman: As Shelton mentioned, our net new orders during the first quarter of 2024 were 384 homes compared to 389 homes in the first quarter of 2023. Our backlog at the end of the first quarter was 262 homes with a value of approximately $78.7 million. Gross profit and gross profit margin for the first quarter of 2024 was $16.1 million and 16%, which decreased from $16.8 million and 17.7% for the first quarter of 2023. This decrease was driven by a few items, purchased accounting adjustments related to the sold inventory that we acquired from Rosewood and Creekside, and increased interest expense on finished inventory.
Keith Feldman: Backlog at the end of the first quarter was 262 homes with a value of approximately $78 7 million.
Keith Feldman: Excluding these items, adjusted gross profit and adjusted gross profit margin were $20.6 million and 20.4% compared to $19.2 million and 20.2% in the first quarter of 2023. SG&A expense in the first quarter of 2024 was $17.1 million. Adjusted for one-time transaction fees and non-cash stock-based compensation expense, adjusted G&A was approximately $14.3 million, or 14.2% of revenue for the first quarter.
Keith Feldman: Gross profit and gross profit margin for the first quarter of 2024 was $16 1 million and 16%, which decreased from $16 8 million and 17, 7% for the first quarter of 2023.
Keith Feldman: This decrease was driven by a few items.
Keith Feldman: Accounting adjustments related to the sold inventory that we acquired from Rosewood in Creekside and increased interest expense and finished inventory.
Keith Feldman: Excluding these items adjusted gross profit and adjusted gross profit margin were $20 6 million and 24% compared to $19 2 million and 22% in the first quarter of 2023.
Keith Feldman: SG&A expense in the first quarter of 2024 was $17 1 million adjusted for one time transaction fees and noncash stock based compensation expense adjusted G&A was approximately $14 3 million or 14, 2% of revenue for the first quarter.
Keith Feldman: As Jack mentioned, we made significant progress this quarter on our land-license initiatives by moving approximately $17 million of finished lots to a large land-banking partner. This strategy will allow us to continue to be efficient with our balance sheet capital and take down lots as we are starting new homes. Additionally, we entered into a definitive agreement for newly created land funds for a total amount of up to $150 million, which will provide capital for future land development and to finish lots in our core markets.
Keith Feldman: As Jack mentioned, we made significant progress this quarter on a landline initiatives by moving approximately $17 million of finished lots to a large land banking partner. This.
Keith Feldman: This strategy will allow us to continue to be efficient with our balance sheet capital and take down lots as we are starting new homes.
Keith Feldman: Additionally, we entered into a definitive agreement for newly created land funds for a total amount of up to $150 million, which provide capital for future land development into finished lots in our core markets.
Keith Feldman: As of today, we have 63 active communities, up from 52 as of Q1 2023. As of March 31st, 2024, we had approximately 11,000 lots under control from our land, development affiliate, as well as from third parties. We had $29 million in cash and $63 million of availability on our credit facility as of March 31, 2024, resulting in total equity of $92 million.
Keith Feldman: As of today, we have 63 active communities up from 52 as of Q1 2023.
Keith Feldman: As of March 31, 2024, we had approximately 11000 lots under control from our land.
Keith Feldman: Development affiliate as well as from third parties.
Keith Feldman: We had $29 million in cash and $63 million of availability on our credit facility as of March 31, 2024, resulting in total liquidity of $92 million.
Operator: That concludes our prepared remarks. Operator, please open up the line for questions. And at this time, if you would like to ask a question, please press the star button.
Speaker Change: That concludes our prepared remarks, operator, please open up the line for questions.
Operator: And at this time, if you would like to ask a question, please press the star and 1 on your telephone keypad. You may withdraw your question at any time by pressing star 2. Once again, to ask a question, please press the star and 1 on your telephone keypad. We'll pause for a moment to allow questions to queue. And we'll take our first question from Carl Brancard on BT IG. Please go ahead. Thanks.
Speaker Change: And at this time, if you would like to ask a question. Please press star one on your telephone keypad you may withdraw your question at any time by pressing star two.
Speaker Change: Once again to ask a question. Please press the star and one on your telephone keypad will pause a moment to allow questions to queue.
Speaker Change: And we'll take our first question from Carl <unk> with BTG. Please go ahead.
Carl Brancard: First, Keith, excluding the purchase accounting impact and the higher interest rate impact on gross margin, can you talk about the travel from last year, the improvement in gross margin, and what drove those items?
Carl: Thanks, Hey, guys hope you're doing well. Thank you for all the color and I apologize for the background noise here.
Carl: Keith can you, excluding the purchase accounting impact and the higher interest rate impact on gross margin can you talk about the travel from last year the improvement in gross margin and what and what drove that ex those items.
Keith Feldman: Yeah. Hi Carl.
Keith Feldman: Yes, Hi, Karl Yes, so if you don't get the adjusted gross profit. It was it was marginally higher and it was really we have incentives. This year as we did last year, but the lumber cost really has gone down from from this year or two from last year to this year right. So you remember.
Keith Feldman: Yeah. So if you get the adjusted gross profit, it was marginally higher. And it was really, we have incentives this year as we did last year, but the lumber costs really have calmed down from last year to this year. So, remember last year, at the beginning of last year, we had high lumber costs in our inventory, and we burned through that. So that gave us a little bit of an adjusted gross margin. And then we have incentives which are similar to last year but probably trending up a little bit.
Keith Feldman: Last year at the beginning of last year, we had high lumber cost.
Keith Feldman: And our inventory and we burn through that.
Keith Feldman: That can give us a little bit of an uplift in adjusted gross margin.
Keith Feldman: And then we have incentives, which are similar to last year, but probably trending up a little bit.
Carl Brancard: Okay, thank you. And then, Jack, you know, you've been there for I think three quarters now, if I've got it right.
Speaker Change: Okay. Thank you and then Jack.
Speaker Change: <unk> been there for three quarters now if I've got it right can you talk about sort of the acquisition environment. As you look at it today versus say what it was nine months ago, and how does how does sort of potential forward deal flow look.
Jack Masenko: Can you talk about sort of the acquisition environment as you look at it today versus, say, what it was nine months ago? And how does sort of potential forward deal flow look, given that obviously a lot of other builders are looking, but at the same time, you guys have a value proposition for potential targets that might be very different. So maybe just sort of flesh that out.
Jack: Given the obviously a lot of other builders are looking but at the same time you guys have had.
Jack: Our value proposition for potential targets that that might be very different. So maybe just sort of flesh that out I'd. Appreciate it. Thanks a lot Tom.
Carl Brancard: I'd appreciate it. Thanks a lot, Bill. Sure, Carl.
Tom: Yeah sure Karl Thanks for the question.
Jack Masenko: Thanks for the question. A couple of things, you know, to most industry observers, it's no secret that M&A activity has picked up. There have been... I don't know, Carl, on my count, four or five deals where it involved public companies in the last six or nine months. There's a deal in Texas, at least one in Tennessee, Indiana, and a couple others.
Speaker Change: A couple of things.
Speaker Change: So most of the industry observers, it's no secret that M&A activity has picked up.
Speaker Change: They have been.
Speaker Change: I don't know Carl Mike out four or five deals.
Speaker Change: Deals where the more public companies in the last six or nine months.
Speaker Change: There is a deal in Texas at least one in Tennessee, Indiana, a couple of others. So the velocity is picking up.
Jack Masenko: So the velocity is picking up we As you'd expect Took a look at many of those we look at most of the of the transactions that are in the marketplace the broker community Certainly understands that we're our strategy and we're one of the calls You know, we've got to look at a couple other things that we've got to look at the market the geography the footprint the size the consideration You know, we'd like to use our equity as much as we can stretch our cash in our capital, to keep the M&A or the organic engine going just as much as the M&A side. Definitely more activity.
Speaker Change: <unk>.
Speaker Change: As you would expect.
Speaker Change: Took a look at many of those we look at most of the of the transactions that are in the marketplace the broker community.
Speaker Change: Certainly understands that we're our strategy and we're one of the calls we've got to look at a couple of other things that we've got to look at the market the geography the footprint the size the consideration.
Speaker Change: We'd like to use our equity as much as we can to stretch our cash and our capital.
Speaker Change: We have to keep the M&A or the organic engine going just as much as the M&A side.
Speaker Change: Definitely more activity.
Jack Masenko: Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg, uh... with a solution for the land ahead of uh we are you know the land light strategy for us is uh is non-negotiable so if it's a traditional builder with a lot of lots in the balance sheet um you know we need to have a soul for that and i want to go back to some of the prepared comments having that strategic partner now in place on the land bank side um and beyond that multiple conversations with a number of providers you know i think positions us well at the point of sale to address that early and efficient more efficiently uh going forward but more deals valuations are up um and i don't i don't see that really slowing down um you know we were out at the builder 100 conference uh this week and um you may have seen we were fortunate to win the builder of the year award this year so we were out accepting that and you know a lot of discussion around m&a at that at that conference and so i think i think uh the color there suggests you know we're going to see more of the same for the foreseeable future, Great, and I meant to say congrats on Builder of the Year, too. I really appreciate the color, guys. Thanks so much. Thanks, Carl.
Speaker Change: Valuations, we don't get a ton of color on them.
Speaker Change: You can back into it when some of our peers filed the transactions that valuation not surprisingly have increased.
Speaker Change: And then the last thing for US, it's really important as we always need to go into these.
With our solution for the land ahead of time.
Speaker Change: We are.
Speaker Change: Our land light strategy for us is non negotiable.
Speaker Change: If it's a traditional builder with a lot of lots and the balance sheet.
Speaker Change: When you guys have a sulfur.
Speaker Change: When we go back to some of the prepared comments, having that strategic partner now in place on the land Bank side.
Speaker Change: And beyond that multiple conversations with a number of providers.
Speaker Change: Think positions as well as the point of sale to address that early inefficient more efficiently going forward, but more deals valuations are up.
Speaker Change: And I don't I don't see that really slowing down.
Speaker Change: We were out at the builder 100 conference this week.
Speaker Change: You may have seen we were fortunate to win the builder of the year Award. This year. So we're accepting that and a lot of discussion around M&A at that at that conference and so I think that I think are the key.
Speaker Change: Color. There suggests we're going to see more of the same foreseeable future.
Speaker Change: Great and I meant to say congrats on builder on builder of the year or two I really appreciate the color guys. Thanks, so much.
Speaker Change: Carl.
Operator: And once again, that is star and 1 on your telephone keypad. If you would like to join the queue, press star and 1. Pause for a moment to allow any further questions to queue. And once again, that is star and one. And it appears that we have no further questions at this time. I will turn the call back to management for closing remarks.
Speaker Change: And once again that is star one on your telephone keypad, if you would like to join the queue Star one.
Speaker Change: For a moment to allow any further questions to queue.
And once again that is star one.
Speaker Change: And it appears we have no further questions at this time I will turn the call back to management for closing remarks.
Jack Masenko: Well, thank you everybody for calling in this morning. I appreciate your interest in the Hldg group and look forward to updating everyone as we continue to progress and grow our company. Thank you. And this does conclude today's program.
Speaker Change: Well. Thank you everybody for calling in this morning I. Appreciate your interest in <unk> homes group and look forward to updating everyone. As we continue to progress and grow our company. Thank you.
Operator: And this does conclude today's program. Thank you for your participation, and you may disconnect at any time.
Speaker Change: And this does conclude today's program.
Speaker Change: Thank you for your participation and you may disconnect at any time.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: [music].
Operator: Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg [inaudible] Music Music, Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg Hldg
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