Q3 2024 Crescent Capital BDC Inc Earnings Call
Good day, everyone and welcome to the third quarter 2020 for Crescent Capital BDC, Inc Earnings Conference call.
At this time all participants are in a listen only mode.
Later, you'll have the opportunity to ask questions. During the question and answer session. You may registered to ask a question at any time by pressing star one on your telephone keypad.
Please note today's call will be recorded and we will be standing by if you should need any assistance.
Speaker Change: It is now my pleasure to turn today's conference over to Dan Mcmahon.
Dan McMahon: Good morning, and welcome to Crescent capital BDC Inc's third quarter ended September 30th 'twenty 'twenty four earnings conference call.
Dan McMahon: Please note that Crescent capital BDC may be referred to as C cap Crescent DTC or the company throughout the call.
Dan McMahon: Before we begin I'll start with some important reminders comments made over the course of this conference call and webcast.
Dan McMahon: They contain forward looking statements and are subject to risks and uncertainties.
Dan McMahon: The company's actual results could differ materially from those expressed in such forward looking statements for any reason.
Dan McMahon: Including those listed in its SEC filings.
Dan McMahon: The company assumes no obligation to update any such forward looking statements. Please also note that past performance or market information.
Dan McMahon: There is not a guarantee of future results.
Dan McMahon: This morning before the market opened the company issued its earnings press release for the third quarter ended September 32024, and posted a presentation to the IR section of its website at Www Dot Crescent BDC Dot com.
Dan McMahon: The presentation should be reviewed in conjunction with the company's Form 10-Q filed this morning with the SEC.
Dan McMahon: As a reminder, this call is being recorded for replay purposes.
Speaker Change: On today's call will be C caps, Chief Executive Officer, Jason Brown.
Speaker Change: Residents, Henry Chen and Chief Financial Officer Gerhard Lombard.
Speaker Change: With that I'd now like to turn it over to Jason.
Thank you Dan Hello, everyone and thank you all for joining us today.
Jason Brown: I'll start today's call by highlighting our third quarter results follow that with some thoughts on our investment approach and touch on our portfolio.
Jason Brown: This morning, we reported another quarter of solid earnings with continued strong credit performance across the portfolio.
Jason Brown: Net investment income or NII was <unk> 64 per share, which translates into an annualized NII return on equity of 12, 6%.
Jason Brown: With our earnings again, well in excess of the regular dividend. Our board has declared a supplemental dividend for the second quarter of <unk> <unk> per share.
When coupled with our previously declared regular dividend of <unk> 42 per share. This equates to an approximately 10% annualized dividend yield on September 32020 for NAV.
Jason Brown: Our net asset value decreased 10 to 2020 per share in the quarter.
Jason Brown: Driven primarily by net unrealized marks running through the portfolio.
Speaker Change: <unk> will touch on this in more detail.
Speaker Change: On a year over year basis, our NAV per share is up two 5%.
Speaker Change: Let's shift gears and discuss the investment portfolio.
Speaker Change: Please turn to slide 13, and 14 of the presentation, which highlights certain characteristics of our portfolio.
Speaker Change: We ended the quarter with approximately $1 6 billion of investments at fair value.
Speaker Change: <unk> is a highly diversified portfolio of 183.
Speaker Change: Companies with an average investment size of approximately <unk>, 5% of the total portfolio.
Speaker Change: We have deliberately maintained an investment portfolio that consists primarily of first lien loans collectively.
Speaker Change: Representing 90% of the portfolio at fair value at quarter end.
Speaker Change: Changed from the prior quarter.
Speaker Change: We continue to focus our investing efforts on non cyclical industries and remained well diversified across 20 broad industry categories Nations.
Speaker Change: Our investments are almost entirely supported by well capitalized private equity sponsors with 99% of our debt portfolio and sponsor backed companies as of quarter end.
Speaker Change: We have been pleased with the fundamental performance of our portfolio as indicated by our stable performance ratings and non accrual levels.
Our weighted average portfolio grade of two one remained stable quarter over quarter.
Speaker Change: And on Slide 17, you will see that the percentage of risk rated one or two investments the highest ratings are portfolio companies can receive.
Speaker Change: Counted for 90% of the portfolio at fair value.
Speaker Change: Modestly from 89% in the prior quarter.
Speaker Change: As we've seen credit dispersion begin to emerge with certain peers experiencing growing levels of watch list and non accrual names.
Speaker Change: We continue to believe that our tenure in the direct lending space robust investment process and focus on the core and lower middle market will continue to drive strong credit performance for C cap.
Speaker Change: We continue to lead the majority of our transactions.
Speaker Change: Stringent documentation and maintain our underwriting focus on strong cash flow generating companies.
Speaker Change: All of this has led to a portfolio today that has non accruals well below the industry average.
Speaker Change: As of quarter end, we had investments in five portfolio companies on nonaccrual status, representing $1 7 million and 0.9% of our total debt investments at cost and fair value respectively.
Speaker Change: I would now like to turn the call over to Henry to discuss the market, our Q3 investment activity and the portfolio Henry.
Henry Chen: Thanks, Jason deal activity continues to pick up in the third quarter, driven by a combination of lower borrowing costs due to spread compression rate cuts and a stronger economy.
Henry Chen: Most of the activity continues to be driven by refinancings, and recapitalizations, which represented almost 50% of overall volume, while we expect fourth quarter deal activity to be relatively steady with Q3, we are anticipating that LVL volumes and overall deal flow will pick up in 2025, as recent and future rate cuts lower borrowing.
Henry Chen: Cost, which should continue to increase the momentum and LBO activity that we have seen in recent quarters.
Henry Chen: In addition, the market reaction to the results from the presidential election suggest optimism around increased deal activity.
Henry Chen: And in part by the prospect of less regulation.
Henry Chen: As we have discussed before we continue to believe direct lending remains the market of choice for our sponsors into lower in core middle market, given the benefits of our expertise, including speed and certainty of execution and our flexibility and the ability to serve as a true partner in developing bespoke capital structures.
Henry Chen: Please turn to slide 15, where we highlight our recent activity.
Henry Chen: Gross deployment in the third quarter totaled $73 million as you can see at the left hand side of the page, 97% of which was in first lien investments.
Henry Chen: During the quarter, we closed six new platform investments totaling $33 million.
Henry Chen: These new investments were loans to private equity backed companies with a weighted average spread of approximately 500 basis points, we continue to back well capitalized borrowers with significant equity cushion and the weighted average loan to value of our new investments for the quarter was 32%.
Henry Chen: The remaining $40 million came from incremental investments in our existing portfolio of companies.
Henry Chen: This has been a strong source of capital deployed on a year to date basis compared to prior periods as we continue to see higher levels of opportunistic refinancing and accretive M&A add on opportunities within our existing borrower universe.
Henry Chen: $3 million in gross deployment compares to approximately $92 million aggregate exits sales and repayments, resulting in net realizations of approximately $20 million for the quarter.
On the realization front. It is also worth noting that in the fourth quarter, we have opportunistically. Realizing an additional eight acquired first eagle names for total proceeds of approximately $42 million at a modest premium to our cost basis.
Lucid about these names we have now rotated 46% of our cost basis in the acquired first Eagle EDC.
Henry Chen: Turning back to the broader portfolio. Please flip to slide 16, you can see that the weighted average yield of our income producing securities at cost came down modestly quarter over quarter to 11, 6%, primarily due to a reduction in base rates and partially driven by a reduction in the weighted average spread with the realization of certain higher.
Henry Chen: Yielding assets.
As a reminder, this metric represented by the dark Blue line at the top of the chart includes the impact of income producing equity investments.
Henry Chen: As of September 30th 97% of our debt investments at fair value of our floating rate with a weighted average floor of 80 basis points, which compares to our 66% floating rate liability structure based on debt drawn with no floors.
Henry Chen: Overall, our industrial portfolio continues to perform well with year over year weighted average revenue and EBITDA growth.
Henry Chen: With that being said even with the recent interest rate cuts. We have continued to monitor the impact of borrowing costs on our portfolio companies.
Henry Chen: The weighted average interest coverage of the companies in our restaurant portfolio at quarter end improved to one eight times as compared to one seven times for the prior two quarters.
Henry Chen: As a reminder, this calculation is based on the latest annualized base rate each quarter, all else being equal we expect the interest coverage will continue to improve with further rate cuts.
Henry Chen: We also continue to closely monitor how our portfolio companies are managing fixed operating costs.
Henry Chen: Our analysis demonstrates that our portfolio companies in the aggregate are well positioned to address fixed charges with operating cash flows and available balance sheet liquidity as expected we saw another quarter over quarter decrease in aggregate revolver utilization was approximately 66% of aggregate revolver capacity available across the portfolio as of quarter end.
Henry Chen: From 57% in the prior quarter.
Henry Chen: It's worth noting that we have continued to see an increase in repricing given tightening spreads we approach re pricing as a re underwriting exercise, where we evaluate the portfolio company has demonstrated a meaningful improvement in credit worthiness is underwrite through growth and deleveraging and that the proposed repricing presents an attractive relative value.
Henry Chen: To new origination opportunities that we're seeing today.
Henry Chen: Our portfolio continues to benefit from the substantial amount of equity invested in our company's most of its applied by large and well established private equity firms with whom we have long standing relationships and partnering with multiple transactions and we know that the weighted average loan to value in the portfolio at a time, we'll underwrite is approximately 40%.
Claire Hart: With that I will now turn it over to Claire Hart.
Henry Chen: Yeah.
Claire Hart: Thanks, Henry and Hello, everyone. Our net investment income per share of <unk> 64 for the <unk>.
Third quarter of 2024 compares to <unk> 59 per share for both the prior quarter and third quarter of 2023.
Claire Hart: Total investment income of $51 6 million for the third quarter compares to 49.0 million for the prior quarter.
Claire Hart: 5% increase.
Claire Hart: The primary driver of this increase relates to what we classify as nonrecurring investment income, which consists of accelerated amortization fee income and common stock dividends.
Claire Hart: Recurring income increased from $1 8 million to $3 3 million quarter over quarter.
Claire Hart: Elevated prepayment income and accelerated OID from refinancing activity during Q3, driving the lion's share of this uptick.
Speaker Change: As I've noted in the past, while we expect some level of nonrecurring or transactional investment income each quarter. This quarter's total was meaningfully higher than recent quarters.
Speaker Change: Importantly, our recurring yield related investment income increased slightly quarter over quarter from $47 1 million to $47 3 million and continues to represent the overwhelming majority of total investment income contributing 92% of this quarters total.
Speaker Change: I'd like to spend a moment on Pik income this quarter.
Speaker Change: And looking at our income statement, you'll see that as a percentage of total investment income increased to eight 2% as compared to four 3% in Q2.
Speaker Change: Of the three 9% increase it's important to note that approximately 343%.
Speaker Change: Due to positive onetime credit events.
Speaker Change: We recognized back pick on two names that had previously been on non accrual and have recently demonstrated strong financial performance.
Speaker Change: So what we view as more recurring <unk> for the quarter was closer to approximately 5%, which continues to compare favorably to the sector.
Speaker Change: Our GAAP earnings per share or net income for the third quarter of 2024 was <unk> 41 per share.
Speaker Change: This was primarily the result of net investment income outpacing the regular and supplemental dividends offset by <unk> <unk> per share of net unrealized and realized losses.
Speaker Change: As of September 30th our stockholders' equity was $749 million, resulting in net asset value per share of $20 20.
Speaker Change: Now, let's shift to our capitalization and liquidity I am on slide 19.
This quarter's net realizations brought our debt to equity ratio down from $1. One eight times in the prior quarter to 115 times, which is below the midpoint of our stated target leverage range of one one times to one three times.
Speaker Change: With $317 million of Undrawn capacity subject to leverage borrowing base and other restrictions and $38 million in cash and cash equivalents as of quarter end, we have sufficient liquidity to fund further investment activity, while maintaining a debt to equity ratio inside our target range.
Speaker Change: The weighted average stated interest rate on our total borrowings of $6 five 9% as of quarter end down from $6, 91% in the prior quarter due to base rates and.
And as we've highlighted on the right hand side of the slide there are no debt maturities until 2026.
Speaker Change: We are evaluating strategies to extend maturity dates in our debt capital stack in a measured manner over the next 12 to 18 months.
Speaker Change: While still taking advantage of the attractive low fixed rates on our unsecured notes.
Speaker Change: But we don't have any specific announcements related to our outstanding debt. We remain confident in our ability to continue to capitalize C cap with a combination of secured and unsecured debt that will appropriately balance flexibility and the cost of capital.
Speaker Change: As Jason noted for the fourth quarter of 2024, our board has declared a regular dividend of 42 per share, which we believe we are well positioned to cover over the longer term we.
Speaker Change: We've also announced a third quarter variable supplemental dividend, which was capped at <unk> <unk> per share given the measurement test calculation.
Speaker Change: And with that I'd like to turn it back to Jason for closing remarks.
Jason Brown: Thank you Gary.
Jason Brown: In closing we are pleased with this quarter's financial results and the performance of our investment portfolio. We continue to maintain a defensively positioned portfolio that delivers a stable NAV profile with consistent dividend coverage is.
Jason Brown: We look forward over the remainder of 2024 and into 2025, we remain confident in the continued strong performance of <unk> portfolio and believe we are on track to continue to deliver attractive risk adjusted returns to our stockholders.
Speaker Change: And with that operator, we can please open the line for questions.
Speaker Change: At this time, if you would like to ask a question. Please press the star and one keys on your telephone keypad keep in mind, you may remove yourself from the question queue at any time by pressing star two.
Speaker Change: Again, it is star and one if you would like to ask a question today.
Speaker Change: And we will take our first question from Robert Dodd with Raymond James. Please go ahead. Your line is open.
Robert Dodd: Hi, guys and congrats on the.
Robert Dodd: CT I appreciate you've got high I. Appreciate you guys through the line item from the unusual.
Speaker Change: I think that.
If I can.
Speaker Change: Kind of narrow.
Speaker Change: I appreciate it right you said the unusual prepaying.
That's where that $3 3 million, maybe a million and a half high rents as well.
Speaker Change: Semi regular in that form and then the back.
Speaker Change: It seems like that was another thing.
Speaker Change: Q1.
So is that ballpark is about $3 million.
A sampling occurring income this quarter that shouldn't be contracted isn't going forward with.
Speaker Change: With the wildcard of who knows what prepays of Oxycodone.
Speaker Change: Yes, Hi, Robert This is John Thanks for thanks for the question and you're right. We kind of partially commented on the prepared remarks, and maybe to expand on that a little bit.
Speaker Change: I think the backdrop.
Speaker Change: Or up here as we deleverage during the quarter from $1. One eight times to 115 times. So there was a kind of a natural.
Speaker Change: The increase in prepayment and accelerated OID, which is we generally view as nonrecurring fee type income.
Speaker Change: And then Youre absolutely correct.
Speaker Change: There were some non recurring pik income, which we view as a positive, particularly on two names that we had on nonaccrual and so we've been recognizing some of the back book related to that.
Speaker Change: The only other thing I would say that there is certainly going to be.
Speaker Change: In our recurring income on those pick names I think they will be.
Speaker Change: A slight uptick in the recurring element.
If that makes sense.
Speaker Change: Probably a little bit lower than the $3 million you put out but I think directionally. Your comments are are reasonable.
Speaker Change: Yes, yes.
Speaker Change: On a cool.
Speaker Change: The coupon on those will continue and that was just a catch up right. So okay I'll figure that out.
Great color. Thank you.
The first eco assets right now.
Speaker Change: Another pool I think you said in the fourth quarter.
Speaker Change: In the fourth quarter, and now 46% of that cost base.
Speaker Change: Now gone.
Speaker Change: <unk>.
Speaker Change: Should we expect.
We will have I mean is that like.
Speaker Change: Yeah, Ross I mean can you just give us any color on how fast you expect.
Speaker Change: The rest of that portfolio to be to be repaid tend to or is it just going to happen on the same paces.
Speaker Change: The core <unk>.
Speaker Change: Partly as well because obviously the actions as well.
Henry Chen: Hi, Robert It's Henry I can comment on that so with respect to the outlook for the remaining first eagle assets.
I would say is that since we closed the acquisition last year, its actually been quite anemic.
Henry Chen: <unk> environment, so what we haven't seen as much.
Henry Chen: In that portfolio is what I would term natural runoff, which is the vis vis refinancings.
Speaker Change: And sales.
Speaker Change: Respective portfolio companies I think just given some of the change in the market backdrop post the election and just some of the broader commentary we've been hearing for a larger part of this year around the uptick in M&A activity or our expectation is that that will likely accelerate as the sponsors for those.
Speaker Change: Companies.
Seek to monetize the assets.
Speaker Change: RCC don't monetize those investments.
Speaker Change: I haven't been able to see that as much.
Speaker Change: We closed this in March 'twenty, three given the broader M&A backdrop. So.
Speaker Change: I think it's tough to give you a definitive timing here, but I would expect that the pace is going to be a bit quicker than what we've seen at least over the last year and a half.
Speaker Change: I appreciate that color was that kind of leads into my last question.
Obviously, you've told them. They opened in March 2025 are expected to be more active.
Speaker Change: You know the ball for 2024 and 2020, please basically laying on the cool so it's not hard to get over that bar.
Speaker Change: Uh huh.
Speaker Change: Active.
Are you expecting 2025, I mean, one of your <unk>.
Our largest competitor this morning, basically said, hey, we're going to see.
2021 level of activity I mean is that optimistic.
Speaker Change: Because obviously that would be a.
Speaker Change: A very large acceleration from the activity levels, we've seen over the last couple.
Speaker Change: Yeah, Hey, Robert Jason Thanks for the question.
I don't know if we would.
Be able to necessarily calibrate relative to 2021, what we expect for 2025.
Speaker Change: Some similar dynamic where you've had you had a challenging year.
Speaker Change: Year prior in terms of activity and so there was certainly some pent up demand from 2020 rolling into 2021, I think we're seeing that here as well.
Speaker Change: Given the higher rate environment that we've been in for the past couple of years. So I do think there is optimism around a significant pickup in activity I think the <unk>.
Speaker Change: Election results provide incremental tailwind for that and optimism for that we've continued to.
Speaker Change: C sort of sluggish returns of capital back to Lps and significant dry powder waiting on the sidelines. So so I would say, we're very constructive on 2025 and the opportunity for deployment and I do think.
Speaker Change: You didn't necessarily ask this but I do think that that also helps with.
Speaker Change: Some of the dynamics that we've seen this year around pricing and spread compression.
Speaker Change: We've certainly seen spread compression most acute in the upper middle market as opposed to the lower than core where we generally operate but it's been it's been tighter across the board and I do think with that with a little bit of a correction on supply demand.
That should work in our favor in terms of spread stabilization.
Speaker Change: To add to that one dynamic or two dynamics of 2021 that are different than today.
Speaker Change: First is we don't have zero percent base rates and secondly, 2021 was a record year for private equity fund raising as well.
Speaker Change: Whereas 20, the latter half of 'twenty three 'twenty four worked more muted just given.
Speaker Change: Slower monetization across <unk> as a whole. So those are certainly two counter weight. When we think about the outlook. We certainly do expect quite a bit more activity than what we've seen over the last two.
Speaker Change: 18 months 18 to 24 months, but.
I do think in many ways to 2021 was a bit of a special confluence of factors that drove that level of activity, but we will see and I'll just add one more thing to that.
Speaker Change: With everything Henry said I would just say that on the on the fund raising side of things.
While it has been certainly more challenging certain segments of the market.
Speaker Change: We have absolutely observed significant capital being raised in the wealth channel.
In the form of non traded Bdcs, primarily.
Speaker Change: Those commitments are coming in on a monthly basis fully funded.
Speaker Change: With significant pressure to deploy capital as a result of those monthly subscription so so.
Speaker Change: Yes, fundraising certainly not a record year on the institutional side, but.
But there is pressure.
Speaker Change: In the upper mid market.
Speaker Change: Capital work, particularly from the tailings from well.
Speaker Change: I appreciate all the extra color. Thank you.
Speaker Change: And once again, if you would like to ask a question. Please press the star one key on your telephone keypad.
Speaker Change: Can we can pause for a moment to allow for the questions to queue.
Our next question from Paul Johnson with <unk>. Please go ahead. Your line is open.
Paul Johnson: Hey, good afternoon, thanks for taking my questions.
Paul Johnson: You guys have completed two I would say pretty pretty successful act.
Acquisitions in the BDC space since going public.
Speaker Change: I would just kind of ask you know.
Speaker Change: What are.
Speaker Change: Is there.
Speaker Change: <unk> for potentially more acquisitions in the future or.
You guys have I guess other priorities, you know things that you'd like to accomplish.
Speaker Change: First over this this next year I mean, how do you I guess balance that with what could be a very active year, albeit potentially lower spreads lower return environment.
Speaker Change: Just curious if those opportunities are out there that's still something you consider or if there's another other things you'd like to accomplish first.
Jason Brown: Thanks, Paul it's Jason.
Speaker Change: I appreciate the question, we we think a lot about.
Jason Brown: How to.
Jason Brown: Grow our our platform at Crescent and how to grow our BDC platform.
Jason Brown: We historically operated crescent and seek app in a way I think that.
Jason Brown: Proves out magic measured growth.
Jason Brown: We would certainly like to continue to grow C cap and would explore a variety of path to doing that certainly open to the prospect of additional M&A.
Jason Brown: Open the prospect of more organic growth.
Jason Brown: As well.
Jason Brown: But that's.
Jason Brown: I think we've always looked at our business in a way where we want to make sure that we are doing right by our investors and not growing for the sake of growth.
Jason Brown: That's the case for our Bdcs, that's the case for our institutional product and so on.
Jason Brown: As we think about <unk>.
Jason Brown: <unk> today.
Jason Brown: 40 plus billion of AUM.
Jason Brown: 30, plus billion of private credit AUM.
Jason Brown: The C cap platform benefits significantly from being a part of Crescent.
Jason Brown: We're <unk>.
Jason Brown: <unk> on average I think historically, it's <unk>.
Jason Brown: We invested at about 10% of average total crescent check size on a historical basis, so that really allows us to be well diversified in our portfolio.
Jason Brown: Mitigate risk through that diversification, while still staying relevant.
Jason Brown: To our sponsor.
Jason Brown: And portfolio company clients by being able to speak for size across the book across the platform. So.
Jason Brown: Again, we would love to continue to grow C. Cap, we would certainly look at additional M&A opportunities I think in fact, we view ourselves as fiduciaries would it have to look at future opportunities.
Those don't always come all that regularly but we will look at them, but importantly, we don't need to grow for the sake of growth and we certainly benefit by being attached to the larger crescent platform.
Speaker Change: Appreciate that.
Speaker Change: Thanks for that and.
Speaker Change: Could you just.
Speaker Change: Tell us.
Speaker Change: The depreciation this quarter looked like.
Part of it was driven kind of from the <unk>.
Speaker Change: Controlled investments this quarter.
Speaker Change: And the markdown unrealized markdowns can you just tell us where that's coming from is that related to any of the.
Speaker Change: Legacy merger assets.
April's Garen: April's Garen I can take that and if you. If you wanted to do a deeper dive of the credits, let us know, but I think they were.
April's Garen: Primarily four names that I think kind of drove most of the unrealized loss in the portfolio I think what Youre correct. A portion of that came from our controlled investments in the Logan JV, which as you know is a levered investment. So there's there's just more kind of rate sensitivity there.
April's Garen: <unk>.
April's Garen: That impacts the mark on that on that equity position and then there were three other names.
April's Garen: On our on our non accrual list largely I think two of them are non accrual assets and the other one was a was a markdown.
April's Garen: <unk>.
April's Garen: Over quarter. So it was really for individual names that drove the kind.
April's Garen: So unrealized youre seeing this quarter.
Speaker Change: Thanks for that and last one for me.
Speaker Change: Can you explain so the supplemental dividend.
Seven this quarter down a little bit from from the prior quarter, what exactly what's the mechanism that cap the supplemental dividend that seven for next quarter.
Speaker Change: Yes. This is Gary.
Speaker Change: Take that as well.
Speaker Change: A cap that limits.
Speaker Change: Reduction in NAV is a function of both the supplemental and unrealized changes in marks to no greater than 15 as measured over a two quarter period.
Speaker Change: So essentially the <unk>.
Speaker Change: Combination of the.
Speaker Change: Unrealized change in fair value.
Speaker Change: In the supplemental.
Speaker Change: Cannot exceed 15, and so the supplemental as a result is capped at.
Speaker Change: <unk> this quarter otherwise purely based on the NII overrun it would be a higher number.
Speaker Change: Got it very helpful. Thanks for the answers that's all for me.
Speaker Change: Sure.
Speaker Change: Thanks, Paul.
Speaker Change: Okay. Once again to ask a question. Please press the star and one key on your telephone keypad.
Speaker Change: We can pause for another moment to allow any further questions to queue.
Speaker Change: There are no further questions in queue at this time I will turn the program to our speakers for any additional or closing remarks.
Speaker Change: Thank you operator, thank you all for joining US here today for our Q3 earnings call. We appreciate your time and your support of <unk> and we look forward to speaking with you all soon.
Speaker Change: Yes.
Speaker Change: This does conclude today's program. Thank you for your participation and you may now disconnect.
Speaker Change: [music].
Speaker Change: Okay.