Q1 2024 Consumer Portfolio Services Inc Earnings Call
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Yeah.
Operator: Good day everyone, and welcome to the Consumer Portfolio Services 2024 First Quarter Operating Results conference call. This call is being recorded.
Good day everyone.
Speaker Change: I'll come to the consumer portfolio to service just 'twenty 'twenty four first quarter operating results conference call.
Speaker Change: Today's call is being recorded.
Operator: Before we begin, management has asked me to inform you that this conference call may contain forward-looking statements. Any statements made during this call that are not statements of historical facts may be deemed forward-looking statements. Statements regarding current or historical valuation of receivables because dependent on estimates of future events also afford logging statements. However, all such forward-looking statements are subject to risks that could cause actual results to differ materially from those projected. I refer you to the company's annual report on file March 15 for further clarification.
Management: Before we begin management has asked tool to inform you that this conference call may contain forward looking statements.
Speaker Change: Any statements made during this call statements of historical facts may.
Speaker Change: Maybe deemed forward looking statements.
Speaker Change: Regarding kind of historical valuation of receivables because depending on estimates of future events.
Management: Forward looking statements.
Management: All such forward looking statements are subject to risks that could cause actual results to differ materially.
company: Those projects that I refer you to the company's annual reports on March 15th what part is application. The company assumes no obligation to update publicly any forward looking statements whether as a result.
Operator: The company is under no obligation to update publicly any forward-looking statements, whether as a result of new information, further events, or otherwise. With us here is Mr. Charles Bradley, Chief Executive Officer, Mr. Denesh Bharwani, Chief Financial Officer, and Mr. Mike Lavin, President and Chief Operating Officer of Consumer Portfolio Services. I will now turn the call over to Mr. Bradley.
Speaker Change: <unk> whatever.
Speaker Change: Or otherwise.
Speaker Change: With us here is Mr. Charles Bradley Chief Executive Officer.
Speaker Change: Mr. Danny our money Chief Financial Officer.
Charles E. Bradley: Mr. Mike Levin question in as Chief operating Officer, consumable and services I will now turn the call over to Mr. Bradley.
Charles E. Bradley: Thank you and welcome everyone to the first quarter earnings call. Generally speaking, the earnings weren't particularly great, but more importantly, it's a point where we're now turning the corner on what's been a very big struggle for most everyone in our industry but something we've handled quite well, which is to get through the 21 and 22 production and the sort of weaker performance of those pools. But at this point, it's still true what we said last time, which is that our company has done far better in that area than almost anyone else in our industry, so we're very proud of that. But, somewhat more importantly, as I just said earlier, we've now sort of turned the corner. The new paper is performing much better.
Charles E. Bradley: Thank you and welcome everyone to the first quarter earnings call.
Charles E. Bradley: Generally speaking the earnings weren't particularly great, but more importantly, it's a point, where we're now turned the corner on what's been a very big struggled for most everyone in the industry, but something we've handled quite well, which is to get through to 'twenty, one and 'twenty two production and then sort of weaker performance of those pools.
Speaker Change: But at this point are.
I: Still true what we said last time, which is our company has done far better in that area than almost anywhere else in the industry. So we're very proud of that but some are more importantly, as I. Just said earlier, we've now sort of turned the corner.
Charles E. Bradley: We're beginning to be able to grow again. A couple highlights: we did raise $50 million in new residual money to use for growth capital, and originations in the first quarter are beginning to really take off again. So really, everything's going the right way. One other note is that we renewed one of our $200 million warehouse lines. So the first quarter is really going to be sort of the jump-off point for this year and kind of getting back to where we buy very good paper, it performs very well, and we get to grow again, and hopefully, at some point, rather aggressively. We'll touch on all those areas a little bit more in a few minutes, but for now, I'm going to turn it over to Danny to go through the financials.
Speaker Change: The new papers book is performing much better.
Speaker Change: We're beginning to grow again, a couple of highlights we did raise $50 million in new residual money to use for growth capital and originations in the first quarter beginning to really take off again.
So really everything is going the right way one other note is we renewed one of our $200 million warehouse lines. So no. The first quarter is really going to be sort of the jump off point for this year and kind of getting back to where we buy very good paper. It performs very well and we get to grow again and hopefully at some point rather aggressively.
Danny Chief: We'll touch on all those areas a little bit more in a few minutes, but for now I'm going to turn it over to Danny to go through the financials. Thank you Brad going over some of the financial results for the first quarter revenues were $91 7 million in Q1 versus $83 one.
Denesh Bharwani: Thank you, Brad. Going over some of the financial results for the first quarter, revenues were $91.7 million in Q1 versus $83.1 million in the March quarter last year. That's a 10% increase. That's primarily driven by our fair value portfolio, which is now $2.8 billion, and that's yielding 11.3%. If you've been on these calls before, you know that that yield of 11.3% is net of credit losses or projected losses. The yield on the portfolio in the first quarter of last year was 11.2%. Moving down to expenses for the first quarter, $85.2 million versus $64.7 million last year in the first quarter. A couple of things of note under expenses.
Danny: The March quarter last year, that's a 10% increase that's primarily driven by our fair value portfolio, which is now $2 8 billion and that's yielding 11, 3% if you've been on these calls before you're aware that that yield of 11, three as a matter of credit losses are projected losses.
Danny: The yield on the portfolio at the first quarter of last year was 11, 2%.
Speaker Change: Moving down to expenses for the first quarter $85 2 million versus $64 7 million last year in the first quarter.
Speaker Change: Couple of things of note under expenses.
Denesh Bharwani: The interest expense increased to $42 million in the first quarter compared to $32.7 million last year, largely due to higher rates but also in part to portfolio growth and a higher debt balance. Also included in expenses is the reversal of the loss provision on our legacy portfolio which is accounted for under CECO. That number, that contribution for the reversal of the loss division last year was $9 million. And this year, in the first quarter, it's $1.6 million.
Speaker Change: Interest expense.
Speaker Change: Increased to $42 million in the first quarter compared to $32 seven last year, largely due to higher rates, but also in part to portfolio growth and a higher debt balance.
Speaker Change: Also included in expenses is the reversal of the.
Speaker Change: Our loss provision on our legacy portfolio, which is accounted for under CSO.
Speaker Change: That number that contribution for the.
Speaker Change: Reversal of the loss provision last year was $9 million and this year in the first quarter. It's $1 6 million. So that portfolio is going to run off over the next two or three quarters and then we will not have much of that legacy portfolio remaining.
Denesh Bharwani: So that portfolio is going to run off over the next two or three quarters, and then we will not have much of that legacy portfolio remaining by the time we get to the end of the year.
Speaker Change: By the time, we get to the end of the year.
Denesh Bharwani: Our pre-tax earnings for the quarter were $6.6 million compared to $18.4 million in the first quarter of last year, again mainly due to higher interest expense and the decrease in the reversal of the loss provision on the legacy portfolio. Net income was $4.6 million for the quarter, which was down from $13.8 million in the first quarter of last year. And following the same trends, diluted earnings per share were $0.19 per share in the first quarter, compared to $0.54 last year.
Speaker Change: Our pre tax earnings for the quarter of $6 6 million compared to $18 4 million in the first quarter of last year.
Speaker Change: Again, mainly due to higher interest expense and the decrease in the reversal of the loss provision.
Speaker Change: On the legacy portfolio.
Speaker Change: Net income was $4 6 million for the quarter down from $13 8 million in the first quarter of last year and following the same trends diluted earnings per share of 19 cents per share in the first quarter compared to 54 cents last year moved.
Denesh Bharwani: Moving to the balance sheet, our finance receivables at fair value of $2.791 billion in the first quarter is up 8% from the $2.575 billion in the first quarter of last year. The (inaudible) Securitization debt balance is $2.277 billion, which is 5% from the $2.175 billion in the first quarter of last year. So we're seeing an 8% increase in the fair value of the asset and only a 5% increase in the corresponding debt. So that benefit of lower leverage is showing some strength in our balance sheet.
Speaker Change: Moving to the balance sheet, our finance receivables at fair value of $2 79, 1 billion in the first quarter is up 8% from the $2 $5 75 in the first quarter of last year.
Speaker Change: Our.
Speaker Change: Securitization debt balance is $2 277 billion, which is up 5% from the two 175 in the first quarter of last year. So we're seeing an 8% increase in the fair value asset and only a 5% increase in the corresponding debt so that benefit in the lower leverage.
Speaker Change: May.
Speaker Change: Making a.
Speaker Change: Sure some strengthening in our balance sheet.
Denesh Bharwani: Shareholders' equity was up to $279.1 million at the end of the first quarter. That's a 22% increase from $228.4 million in March of last year. And that's driven by this would mark our 50th consecutive quarter of pre-tax profit. That's over 12 years of pre-tax profitability, and that's helping to boost the shareholder's equity number on the balance sheet. Moving to other important metrics, the net interest margin is $49.8 million, which is down 1% from the $50.3 million in the first quarter of last year. Core operating expenses as a percentage of the average managed portfolio were 6% in the first quarter of this year, compared to 5.7% for the first quarter of 2023.
Speaker Change: Shareholders' equity is up to $279 1 million in the first quarter at the end of the first quarter at 22% increase from the $228 4 million in March of last year.
Speaker Change: And that's driven by this would mark our 15th consecutive quarter pre tax profit that's over 12 years of pretax profitability and that's helping to boost the shareholders' equity number on the balance sheet.
Speaker Change: Moving to other important metrics the net interest margin is $49 8 million.
Speaker Change: Which is down 1% from the $53 million in the first quarter of last year.
Speaker Change: Our operating expenses as a percentage of the average managed portfolio.
Speaker Change: 6% in the first quarter of this year compared to five 7%.
Speaker Change: For the first quarter of 2023.
Denesh Bharwani: That's it for the financial numbers. I will turn the call over to Mike. Thank you, Danny.
Michael T. Lavin: That's it for the financial numbers I will turn the call over to Mike. Thank you Danny.
Michael T. Lavin: Thank you, Danny. The first quarter was a terrific quarter for Originations as we purchased $346 million in new contracts. That compares to $301 million in the fourth quarter of 2023 and $415 million during the first quarter of 2023. And more good news, our portfolio grew to $3.02 billion as of March 31st, 2024. I note that it's the highest portfolio amount in our 33-year history and that it's an increase from $2.97 billion as of December 31st, 2023 and an increase from $2.86 billion as of March 31, 2023.
Michael T. Lavin: The first quarter was a terrific quarter in originations as we purchased $346 million of new contracts that compares to $301 million.
Michael T. Lavin: In the fourth quarter of 2023 and $415 million during the first quarter of 2023.
Michael T. Lavin: More good news our portfolio grew to 3.02 billion as of March 31 2024.
Speaker Change: That's the highest portfolio amount in our 33 year history and Thats, an increase from $2 97 billion as of December 31, 2023.
Speaker Change: And an increase from $2 86 billion as of March 31, 2023.
Michael T. Lavin: As Brad said, the first quarter showed a positive growth trend. We did $102 million in January, then upped that to $105 million in February, and then upped that to $139 million in March. The trick is to hold that volume, and we're optimistic we can do so. We used several credit initiatives to nudge our growth in the first quarter, which worked. But it is critical to note that none of those credit initiatives touched our LTV, our loan-to-value, which is the key credit metric that predicts losses, didn't affect our price, and didn't affect our fees. All good news there.
Speaker Change: As Brad said, the first quarter showed positive growth a positive growth trend, we did $102 million in January then upped that to 105 in February and up that to a 139 in March the trick is to hold that volume.
Speaker Change: And we're optimistic we can do so.
Brad Smith: We use several credit initiatives to nudge our growth in the first quarter, which worked but it is critical to note that none of those credit initiatives touched our LTV loan to value, which is the key credit metric that predicts losses.
Brad Smith: Didn't affect our price it didn't affect our fees.
Michael T. Lavin: Those initiatives helped increase our organic growth of contracts through increasing our capture rate, our funding dealers, and our dealer loyalty. One of the things that we've been focusing on for the last two years is to onboard and service more large dealer groups, which is defined by a dealer group with more than 15 dealers under its umbrella. When we launched that initiative in early 2023, the large dealer groups made up 17% of our business.
Brad Smith: So all good news there.
Speaker Change: Those initiatives helped increase our organic growth.
Michael T. Lavin: And at the end of the first quarter, that has grown to 22%. That is exponential growth because instead of adding just one dealer, we're adding between 15 and 200 dealers per dealership. We currently have 70 sales reps, 42 in the field, 28 inside.
Speaker Change: Contracts through increasing our capture rate or funding dealers and our dealer loyalty.
Speaker Change: One of the things that we've been focusing on for the last few years is is to onboard and service more large dealer groups, which is defined by a dealer group with more than 15 dealers under their umbrella. When we launched that initiative in early 2023, and large dealer groups made up 17% of our business and it.
Speaker Change: The end of the first quarter that has grown to 22% that is exponential growth because instead of adding just one dealer, we're adding between 15% and 200 dealers per dealership.
Speaker Change: Yeah.
Speaker Change:
Speaker Change: We currently have 70 sales reps and the.
Speaker Change: <unk> 42 in the field 28 inside.
Michael T. Lavin: We hired a new class of reps in the first quarter and will likely do more as the year heads out. This has helped our growth going forward. We continued our ironclad partnerships with Al and Pagaya in the first quarter, resulting in added origination volume and, with Pagaya, solid on-game profit. Another thing of note, we continue to build our customer service platform in Originations. In the first quarter, we lowered our Packard's return rate to an all-time low, we lowered our deal funding time to less than three days, and we significantly reduced our underwriting errors.
Speaker Change: A new class of reps in the first quarter.
Speaker Change: And we will likely do more as the year heads out this has and will help our growth going forward. We continued our ironclad or partnerships with al and per Guy here in the first quarter, resulting in added origination volume and with.
Speaker Change: <unk>.
Guy: Ill add on game profits.
Speaker Change: And the other thing of note.
Speaker Change: We continue to build our customer service platform and originations.
Speaker Change: The first quarter, we lowered our packards return rate to an all time low we lowered our lowered.
Guy: We lowered our deals deal funding time to less than three days and we significantly reduced our underwriting errors. All of these are metrics that encourage the dealers to send their applications and do business with Cps.
Michael T. Lavin: All of these are metrics that encourage dealers to send their applications and do business with CPS. In terms of competition, we continue to see waves of credit unions come in and out of the space with lower rates, and then they pull out of the space when the losses don't meet their expectations. Demand remains strong, so there's enough business for the five or six of us that sort of dominate the market. Again, the sort of silver bullets for us and our friendly competitors are things like a recession and the unemployment rate. So far, there has been no recession.
Speaker Change: In terms of competition, we continue to see waves of credit unions come in and out of the space with lower rates and then they pull out of the space when the losses don't meet their expectations.
Guy: Demand remains strong.
Guy: And so there is enough business for the five or six of us that sort of dominate the market.
Guy: Sure.
Speaker Change: Again, the sort of silver bullets for us and our friendly competitors are things like a recession and the unemployment rate.
Speaker Change: So far there has been no recession, and even though unemployment ticked up just a bit it hasnt affected our demand.
Michael T. Lavin: And even though unemployment ticked up just a bit, it hasn't affected our demand or our near-term portfolio performance. Taking a quick check on our Q1 risk profile, we continue to hold a strong APR at 21%. Probably the best thing about our risk profile is we've driven down our LTV from 125 to 118 and it fluctuates between 118 and 119. Our payment to income ratio and our debt to income ratio, which we use in our scoring model, remain flat, which is great. And the amount financed remains flat quarter over quarter at $20,500.
Speaker Change: Or our near term portfolio performance I'm, taking a quick check on our Q1 risk profile, we continue to hold a strong APR of 21%.
Speaker Change: Probably the best thing in our risk profile as we've driven down our LTV from 125, too and it fluctuates between $1 18 in 2019, our payment to income ratio and our debt to income ratio, which we use in our scoring model remains flat which is great.
Speaker Change: And the amount finance remains flat quarter over quarter at 20500.
Michael T. Lavin: Switching to portfolio performance, for the first quarter, DQ, including repossession inventory, ended up at 14.55% of the total portfolio, as compared to 12.68% in the same quarter of 2022. Annualized net charge-offs for the first quarter were 7.84% of the total portfolio as compared to 7.74% as of the fourth quarter of 2023 and 5.20% in the same quarter of 2023. The positive news is that we indeed have turned the corner in terms of performance as we've lowered our DQ compared to our previous quarter, and we've also lowered our charge-offs as compared to our previous quarter.
Speaker Change: Switching to portfolio performance.
Speaker Change: For the first quarter DQ, including repossession inventory ended up at $14, 55% of the total portfolio as compared to $12, 6% to 8% in the same quarter in 2022.
Speaker Change: Annualized net charge offs for the first quarter were $7 eight 4% of the total portfolio as compared to $7 seven 4% as of the fourth quarter of 2023% and $5 two zero percent in the same quarter in 2023, the positive news.
Speaker Change: Is that we indeed have turned the corner in terms of performance as we've lowered our DQ.
Speaker Change: Compared to our previous quarter, and we've also lowered our charge offs as compared to our previous quarter. So year over year, it's ticked up quarter over quarter over quarter, we've driven those metrics down.
Michael T. Lavin: So year-over-year, it's ticked up, but quarter-over-quarter, we've driven those metrics down. We've done this while utilizing fewer extensions, which is in. In terms of our vintages, it's no secret that the 2022 vintages have been challenging for the industry. We believe, sort of, as of the end of quarter one, we've got our arms around the 2022 vintages. We've employed more collectors to collect those vintages, and we've been utilizing unique collection strategies to control those key metrics and flatten out those curves.
Speaker Change: We've done this while utilizing less extensions which is interesting.
Speaker Change: <unk> of our vintages, it's no secret that the 2022 vintages have been challenging for the industry.
Speaker Change: We believe sort of add as at the end of quarter. One we've got our arms around the 2022 vintages we've.
Speaker Change: We've employed more collectors.
Speaker Change: To collect those vintages and we've been utilizing unique collection strategies.
Speaker Change: To control those key metrics and flatten out those curves.
Michael T. Lavin: The first two of our 2023 vintages were also challenging, albeit a little slightly more, slightly less challenging, I should say, but the most critical thing to look at in our 2023 vintages is that our 2023C vintage is doing much, much better. The 2023D, while it's a little early to judge, is also looking to be much better, and those 2023 vintages might just normalize into our historical C&L.
Speaker Change: The first two of our 2023 vintages were also challenging, albeit a little slightly more slightly less challenging I should say.
Speaker Change: But the most critical thing to look at in our 2023 vintages is that our 2023 C.
Speaker Change: Vintage is.
Speaker Change: Youre doing much much better the 'twenty two 'twenty three D. While it's a little early to judge is also looking to be a much better.
Speaker Change: And does this.
Speaker Change: 2023, vintages might just normalized into our historical CNS.
Michael T. Lavin: Looking at how we stack up in the industry, we are reportedly, according to the investment bankers that we work with, and the investors in our securitization bonds who follow the industry, note that we're outperforming all of our competitors in C&L performance on the 2022 and 2023 advantages, and also our DQ, and interestingly enough, we're outperforming our competitors when it comes to the all-important recovery metric. Um, one thing to note is that in the first quarter, we bolstered our ARD department, which is in charge of collecting our charge-off balances.
Speaker Change: Looking at how we stack up in the industry. We are reportedly according to.
Speaker Change: The investment bankers that.
investment bankers: That we work with and the investors in our securitization bonds, who follow the industry note that we're outperforming all of our competitors in CNR performance on the 2022 and 2023 vintages.
investment bankers: Also our <unk> and interestingly enough, we're outperforming our competitors when it comes to the all important recovery metric.
R&D Department: One one thing to note is in the first quarter, we bolstered our R&D department, which is in charge of collecting our charge off balances.
Michael T. Lavin: And after employing a few new initiatives and training up the staff, we've collected at least 40% so far in three months of what we collected all of 2023. And all of those collections go right to offset our losses.
R&D Department: After employing a few new initiatives in training up the staff and we've collected.
Speaker Change: At least 40%.
Speaker Change: So far in three months of what we collected all of 2023 and all of those collections go right to offset our losses in terms of technology.
Michael T. Lavin: In terms of technology, we deployed our artificial intelligence scoring tool for fraud in the first quarter, which has significantly reduced the synthetic fraud in our application base. That has already saved us over a million dollars in the first quarter, and we expect to save many more millions going forward using that AI fraud tool. As I mentioned in our last call, we launched our Gen 8 Originations Model in the fourth quarter of 2023.
Speaker Change: We deployed our artificial intelligence, scoring tool for fraud in the first quarter, which has significantly reduced.
Speaker Change: Enthetic fraud in our application base.
Speaker Change: That is already saved us over $1 million in the first quarter and looking and we expect to save many more millions going forward on that using that AI fraud tool.
Speaker Change: As I mentioned in our last call we launched our Gen eight originations model in the fourth quarter of 2023.
Michael T. Lavin: We have now had a chance to analyze the October 2023 Originations, where we originated those Originations with Gen 8, and we also originated those... That paper with Gen 7 and Gen 8 has organically lowered our DQ, so that bodes well for our DQ going forward, which also should translate to lower CPI, just through our AI model. And with that, I'll kick it back to Brad. Thank you, Michael.
Speaker Change: We have now had a chance to analyze the October 2023 originations, where we originated it we originated those originations with Gen. Eight and we also originated does.
Speaker Change: That paper with Gen seven and.
Speaker Change: <unk>.
Jenny: Jenny has organically lowered our DQ bye.
Jenny Smith: By 200 basis points, so that bodes well for our DQ.
Jenny Smith: Going forward, which also translates should translate to lower <unk>.
Speaker Change: Just through our AI model and with that I'll kick it back to Brad.
Charles E. Bradley: Thank you, Mike. Turning to the industry, as Mike pointed out, we, and I guess I pointed out as well, we weathered the storm probably much better than most in our industry. And we think at this point, given that our growth is slowing, yet we're being able to hang on to our very large margins, that some of our fellow industry players are either easing back or going slow to get through the problems they've had with the 22 vintages.
Brad Smith: Thank you, Mike turning to the industry as Mike pointed out.
Speaker Change: I guess I'd point to as well.
Brad Smith: Weather, the storm, probably much better than most of the industry.
Brad Smith: And we think at this point given that our growth is going it would be able to hang on to a very large margins that some of our fellow friendly industry players are either easing back or going slow to get through the problems. We've had with the 22 vintages that.
Speaker Change: That creates an opportunity for us to grow and hanging on a big margins and so that's good.
Charles E. Bradley: That creates an opportunity for us to grow and hang on to big margins, and so that's good. And it also might create some opportunities for a few of the weaker folks out there that may or may not be able to get through the production problems of 21, 22.
Speaker Change: Also might create some opportunities for a few of the weaker folks out there that may or may not be able to get through.
Speaker Change: Production problems of 'twenty, one 'twenty, two so we'll wait and see.
Charles E. Bradley: So we'll wait and see, but we're always looking for opportunities in the industry and maybe helping out some of our fellow competitors. And looking at the economy, generally speaking, we're quite optimistic. We think. Our industry is very much at the tip of the spear when it comes to recessions, and yet, our customers seem to be doing just fine. Unemployment is certainly the thing we watch and care about the most, and unemployment looks fine. What we would love to do, of course, is keep things growing, get the volumes up to where when and if they get a rate cut, we then get to pick up that extra margin and really just enhance what we're doing.
Speaker Change: We're always looking for opportunities in the industry, maybe helping out some of our fellow competitors.
Speaker Change: Looking at the economy generally speaking we're quite optimistic.
Speaker Change: We think.
Speaker Change: Our industry is very much the tip of the spear in recessions and yet our customers seem to be doing just fine unemployment is certainly the thing we watch and care about the most and unemployment looks fine, but we would love to do of course is keeping us growing get the volumes up to where when and if we get a rate cut we then get to pick up that extra margin.
Charles E. Bradley: We're not really thinking there are going to be rates cut currently, but down the road, there could be, so doing large volumes when those come will be much better than just sitting around waiting for them to then grow. So again, we're kind of optimistic on all those different fronts. We're almost well into our second quarter, and those things look good as well, so we'll be back rather shortly to report on the second quarter. So with that, thank you all for joining us, and we'll speak to you soon.
Speaker Change: And really just enhance what we're doing we're not really thinking rates cut currently but down the road there could be so doing large volumes when those come will be much better than just sitting around waiting for them to then grow. So again, we're kind of optimistic on all those different fronts.
Speaker Change: We're almost well into our second quarter those things look good as well so we'll be back rather shortly to report in the second quarter.
Speaker Change: So with that thank you all for joining us and we'll speak to you soon.
Operator: Thank you, ladies and gentlemen. This concludes today's teleconference. A replay will be available beginning two hours from now for 12 months via the company's website at www.consumerportfolio.com. Please disconnect your lines at this time and have a wonderful day.
Company Representative: Thank you ladies and gentlemen. This concludes today's teleconference. A replay will be available beginning two hours from now for 12 months via the company's website at Ww Dot consumer.
Speaker Change: Kam.
Operator: Please disconnect your lines at this time and have a wonderful day.
Operator: Okay.
Operator: Okay.
Speaker Change: [music].