Q3 2024 Fidus Investment Corp Earnings Call
Good day and welcome to the fight is third quarter 2024 earnings Conference call. All participants will be in a listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your Touchtone phone.
And to withdraw your question. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to MS. Jody Burning. Please go ahead ma'am.
Jody Burning: Thank you Chuck and good morning, everyone and thank you for joining us for finest investment Corporation third quarter 'twenty 'twenty four earnings conference call with me. This morning are Ed Ross fight Fs investment Corporation's Chairman and Chief Executive Officer, and Shelby Sherard, Chief Financial Officer, <unk> Investment Corporation issued a press release yesterday.
Jody Burning: Hey afternoon, with the details of the company's quarterly financial results.
Jody Burning: A copy of the press release, it's available on the Investor Relations page of the company's website at F. D. U S. Dot com I would also like to call your attention to the customary safe Harbor disclosure regarding forward looking information included on today's call.
The conference call today will contain forward looking statements, including statements regarding the goals strategies beliefs future potential operating results and cash flows and fitness investment Corporation. Although management believes these statements are reasonable based on estimates assumptions and forget projections as of today November one 2024.
Jody Burning: These statements are not guarantees of future performance time sensitive information may no longer be accurate at the time of any telephonic or webcast replay actual results may differ materially as a result of risks uncertainties and other factors, including but not limited to the factors set forth in the company's filings with the Securities and Exchange Commission.
Jody Burning: It takes no obligation to update or revise any of the forward looking statements.
Speaker Change: With that I would now like to turn the call over to Ed Good morning, Ed.
Ed: Good morning, Jody and good morning, everyone welcome to our third quarter 2024 earnings Conference call.
Ed: On today's call I'll start with a review of our third quarter performance and our portfolio at quarter end.
Ed: And then share with you our outlook for the remainder of 2024.
Ed: Yeah, we will cover the third quarter financial results and our liquidity position.
Ed: After we have completed our prepared remarks, we'll be happy to take your questions.
Ed: Alright lighter investment activity levels overall during the third quarter, we continued to build our portfolio through a combination of our strong relationships with deal sponsors.
Ed: Industry knowledge and investment expertise in the lower middle market.
Ed: Our debt portfolio, which has grown 20% over the past 12 months.
Ed: Generation record interest income of $33 $7 million and continued to amply cover our base dividend.
Ed: Through our strategy of selectively investing in high caliber companies that generate high levels of free cash flow.
Defensive characteristics and positive long term outlooks, we continue to build a healthy and high performing portfolio.
Yeah.
At quarter end net asset value stood at $658 $8 million 11, 8% higher than net asset value of $589 $5 million as of December 31, 2023 on.
Ed: On a per share basis.
Ed: Net asset value was $19 42 per share at quarter end compared to $19 37 per share as of December 31 2023.
Yeah.
Ed: Before I start my review of our performance for the quarter I am pleased to report that the SBA has approved our new SB IC license effective on the last day of the quarter September 30th 2024.
Yeah.
Adjusted net investment income for the quarter grew 12, 3% to $24 million compared to $18 $2 million last year.
Ed: Primarily reflecting higher interest and fee income for the quarter, along with a one time dividend income left.
Ed: On a per share basis, adjusted net net investment income was 61 cents per share compared to 68 cents per share for the same period last year, which also reflects the higher average share count from ATM issuances.
Ed: Adjusted NII per share amply covered the base dividend of 43 cents per share for the quarter. In addition, we paid a <unk> 14 per share supplemental dividend for a total dividend to shareholders of <unk> 57 per share.
Ed: For the fourth quarter of 2024, the board of directors declared dividends totaling <unk> 61 per share.
Ed: 15 of a base dividend of 43 cents per share and a supplemental dividend.
Ed: Of 18 cents per share equal to 100% of the surplus in adjusted NII over the base dividend from the prior quarter, which will be payable on December 27th 2024 to stockholders of record as of December 17, 2024.
Originations totaled $65 $9 million for the third quarter, including $38 $1 million in three new portfolio companies.
Ed: The remaining $27 $8 million and follow on investment activity reflects a combination of portfolio company acquisitions and refinancings.
Ed: Net investments totaled $62 $7 million, the vast majority of which were in first lien securities <unk>.
Ed: Equity investments totaled $3 $2 million of which $2 3 million, sorry, $3 $2 million of which $2 3 million was invested in three new portfolio companies.
Ed: We continue to structure, our debt investments with a high degree of equity cushion, which gives us a margin of safety, while our equity investments give us the potential for enhanced returns.
As expected repayments, where a larger portion of deal activity during the third quarter compared to the first half of the year.
Ed: Proceeds from repayments and realizations totaled $58 million for the third quarter, including $8 $6 million in proceeds from the monetization of equity investments.
Ed: We've mentioned on previous calls this year that a number of our portfolio companies were evaluating strategic alternatives and that accounted for three of the exits this quarter.
Subsequent to quarter end, we invested $21 $1 million in first lien debt and common equity in two new portfolio companies and received $18 $5 million in proceeds from the exit of debt investments in two portfolio companies.
Ed: Our portfolio stood at $1.1 billion on a fair value basis as of September 30th 'twenty 'twenty four equal to 101, 5% of course, and consisting of a debt portfolio totaling $959 $4 million in an equity poor.
Ed: Folio of $131 $3 million at quarter end.
Ed: With first first lien investments accounting for nearly all of that originations for the third quarter. This security accounted for 73% of debt investments on a fair value basis at quarter end.
Ed: We ended the quarter with 85 active portfolio companies.
Ed: Overall, our portfolio remains healthy with sound credit quality, and a well positioned equity portfolio.
Ed: Furthermore, the portfolio is structure to absorb losses through net realized gains on equity investments over the long term as an example in the third quarter, we realized a loss on a debt investment that was nearly offset by a realized gain on an equity investment for a net realized loss of point.
Ed: $4 million.
Ed: For the first nine months of this year, we realized net gains of $10 $6 million well in excess of any realized losses, extending our track record of generating enhanced returns.
Ed: Non accruals on a fair value basis were unchanged from the first and second quarters of the year and remained under 1% for the third quarter.
Ed: For the remainder of the year, we expect a modest year end uptick in M&A activity levels in other words, another quarter, a reasonable investment activity.
Ed: Having said that at some portfolio companies are still evaluating strategic alternatives, we do still expect to see a higher level of repayments in the last quarter of the year.
Ed: New originations may outpace repayments as they did in the third quarter.
Ed: As we evaluate investment opportunities, we continue to apply our strict underwriting standards to investment selection focusing on strong cash flow generating businesses with resilient business models and positive long term outlooks.
Ed: Our goal is to maintain a healthy portfolio that produces both high levels of current and recurring income and the potential for incremental returns from monarch.
Ed: Tyzine equity investments.
Ed: Adhering to both our investment strategy and underwriting disciplines will enable us to stay focused on our long term goals of generating attractive risk adjusted returns for our shareholders and growing net asset value over time.
Speaker Change: Now I'll, the turn I'll turn the call over to Shelby to provide some details on our financial and operating results Shelby.
Shelby Sherard: Thank you Ed and good morning, everyone I'll review, our third quarter results in more detail and close with comments on our liquidity position. Please note I will be providing comparative commentary versus the prior quarter Q2, 'twenty 'twenty four.
Total investment income was $38 4 million for the three months ended September 30th.
Shelby Sherard: $2 7 million increase from Q2, primarily driven by a $1 2 million increase in fee income of which approximately <unk> 8 million was an increase in prepayment fees. In addition, we had a 1 million increase in dividend income related to the distribution from one of our equity investments.
Total expenses, including income tax provision were 17 million for the third quarter $1 7 million lower than Q2, driven primarily by a $2 4 million decrease in the capital gains fee accrual offset by a point 1 million increase in base management fees and a point 5 million increase in income incentive fees.
Shelby Sherard: Net investment income or NII for the three months ended September 30th with 64 cents per share versus 53 cents per share in Q2.
Adjusted NII, which excludes any capital gains incentive fee accruals or reversals attributable to realized and unrealized gains and losses on investments was 61 cents per share in Q3 versus 57 cents in Q2, which includes the increase in weighted average shares outstanding in Q3.
Shelby Sherard: For three months ended September 30th we recognized approximately <unk> 4 million of net realized losses, primarily related to a $5 4 million unrealized loss on the exit of our debt investments in <unk>.
Shelby Sherard: By a 5 million realized gain on the sale of our equity investment in Gore royalty optimization.
Shelby Sherard: We ended the quarter with $479 million of debt outstanding comprised of 175 million of SBA debentures $250 million of unsecured notes 40 million outstanding on our line of credit and 14 million of secured borrowings.
Shelby Sherard: Our debt to equity ratio as of September 30th 1.7 times or five times statutory leverage excluding exempt SBA debentures.
Shelby Sherard: The weighted average interest rate on our outstanding debt was 4.6% as of September 30th.
Shelby Sherard: Now turning to portfolio statistics as of September 30th.
Shelby Sherard: Our total investment portfolio had a fair value of $1 1 billion, our average portfolio company investment on a cost basis was $12 6 million, which excludes investments in five portfolio companies. That's all their operations are in the process of winding down.
Shelby Sherard: We have equity investments in approximately 83, 3% of our portfolio companies with average fully diluted equity ownership of three 6%.
Shelby Sherard: Weighted average effective yield on debt investments was 13.8% as of September versus 14% at the end of Q2. The weighted average yield is computed using the effective interest rates for debt investments at cost, including the accretion of original issue discount and loan origination fees, but excluding investments on non accrual if any.
Shelby Sherard: Now I'd like to briefly discuss our available liquidity in Q3, we issued approximately 7 million shares at an average price of $20.01 per share generating 14.1, $14 1 million in net proceeds as of September 30th our liquidity and capital resources included cash of 50.
Shelby Sherard: $4 4 million and $100 million of availability on our line of credit, resulting in total liquidity of approximately 154.4 million further as Ed mentioned, the SBA has approved our request for a new SP I see license, giving us access to.
Shelby Sherard: 275 million in additional SBA debentures subject to regulatory requirements and conditions now I will turn the call back to Ed for concluding comments.
Ed: Thanks Shelby.
Ed: As always I'd like to thank our team and the board of directors and fighting for their dedication and hard work and our shareholders for their continued support.
I'll turn the call over to Chuck for Q&A. Chuck. Thank you. We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
If you're using a speakerphone please pick up your handset before pressing the keys.
Ed: If at any time your question has been addressed.
Ed: To withdraw your question. Please press Star then two and at this time, we'll pause momentarily to assemble our roster.
Speaker Change: And the first question will come from Robert Dodd with Raymond James. Please go ahead.
Oh, Hi morning, Oh, Oh, I'm looking at the outlook. That's about Q4 I mean, you you said, you're still getting some pretty good color on that but are you seeing any increase in.
Speaker Change: You know early stage I mean, if you see a new you deal approach today, it's not closed yet so well cover it all.
Speaker Change:
Speaker Change: Uh huh.
Speaker Change: Early stage indicators looking for 25, because I mean, we've heard from several bdcs now pushing their expectations for a strong end of the year to a you know to a strong 2025 is that consistent with what youre seeing in early stage opportunities or is that just too early to tell.
Speaker Change: Great question, Robert I wish I knew the answer to that one in a definitive manner I would I would say you know what we're seeing in the market today.
Speaker Change: It'd be candidates quality continues to be hit or Miss.
Speaker Change: Q3 deal flow has been decent you know our M&A activity from our perspective is still relatively lackluster in nature, but we are seeing the.
Speaker Change: Your typical Q4 uptick this quarter.
Speaker Change:
Speaker Change: You know and then you know obviously competition is relatively robust as you well know so for US. We are seeing we expect Q4 to be a pretty active investment quarter relative to Q3 for instance, and we do have an uptick going on right now we are very high.
Speaker Change: For the 2025 will be much more robust from an M&A perspective.
Speaker Change: And that's our expectation, but we're not really seeing that yet I think it's too early to tell from our perspective.
Speaker Change: Got it thank you yeah.
Speaker Change: Put it all on the competitive side I mean spreads I mean, it's been a theme, we see compressing spreads but the biggest.
Speaker Change: Uh huh.
Speaker Change: Well, what do you put on this.
Speaker Change: The spreads.
Speaker Change: On the first lien on that all kind of like right in line with your overall average thread.
Speaker Change: In in the first lien portfolio, so everything on boarded before so I mean.
Speaker Change: Spread compression.
Speaker Change: Is it still that has it has it stabilized was.
Speaker Change: Can you give us any color on that is that you know is there any increasing momentum on spread compression and in areas of the market that you're staying away from or any color there.
Speaker Change: Sure. It's a great question and as you know it has moved over the last 12 to 18 months in a in a meaningful way depending on the quality of the credit right.
Speaker Change: But anywhere from 50 to let's say 150 basis points.
Speaker Change: You know we are.
Speaker Change: It's not accelerating from our perspective, no, but it's it's you know it's pretty tight spreads.
If I look at the third quarter, you know obviously, our overall yields were 13, 8%, which is down 20 basis points and.
Speaker Change: No I think that comes from net originations are generally being a little bit lower so our new originations were at 13, 2%.
Speaker Change: And those are variable rate loans, so they will come down a little bit from there.
Speaker Change: But our also our repayments were at 13, 4% on average so that gives you a little sense of of a of what is going on in the market today, but it definitely theres plenty of competition I don't know that I see it going down in a material manner from where we are I would I would have.
Speaker Change: Not an expect not quite frankly, but it is a it is competitive and you know.
That's just kind of the state of the market.
Speaker Change: Got it. Thank you and then last one if I can I mean, there was an uptick in amendment fees.
Speaker Change: About $400000.
Speaker Change: But I mean this.
Speaker Change: Is there anything we should read into that I mean, there's always those normal course of medicine. So.
Speaker Change: So your credit qualities.
Speaker Change: Non accruals have moved beyond that of new non accruals since.
Speaker Change: At the beginning of last year.
Speaker Change: But is this a sign that you know with amendments.
Speaker Change: Does any.
Speaker Change: The indicators on the horizon.
Speaker Change: Well, it's interesting there was a pretty healthy fee quarter. Some from prepayments right that was a that was a big number and you know I think 800000, if I'm not mistaken until we can correct me if so.
Speaker Change: That's correct and then and then you know and then amendments also which I think just speaks to the level of activity you know we've got.
85 portfolio companies in terms of debt investments in the high <unk>.
Speaker Change: And and so and it's a very active portfolio. So with regards to amendments or acquisitions. What have you. There are you know different.
Speaker Change: You know different occurrences that are that are driving that but I would I would say is we have an active portfolio. So theres just a lot going on in terms of you know our credit quality you know I think we feel good about it but as you know there's there's always some companies that are.
Speaker Change: You know exceeding expectations and some that are that are underperforming.
Speaker Change: We are you know we have been in a high interest rate environment. We are in a kind of from a geopolitical perspective and other issues. There is a higher risk level out there and so it's you know where we're weathering the storms as well.
Speaker Change: Overall, the economy feels pretty good overall, but there are pockets of softness if you think about.
Speaker Change: You know the the consumer discretion.
Speaker Change: Discretionary purchases are down you'd think about manufacturing and industrial companies and those are I'd say areas. There are areas within those markets that are softer in nature.
Speaker Change: Not recessionary and that's not what we're seeing but definitely softer. So there are things to work through as a result, and so that's that so that's part of it overall, we feel good about it but there are things to work through.
Speaker Change: Got it thank you.
Speaker Change: Thank you good talking to you Robert.
Speaker Change: Yeah.
Speaker Change: Again, if you have a question. Please press Star then one.
Our next question will come from Paul Johnson with K B W. Please go ahead.
Speaker Change: Yeah good.
Paul Johnson: Good morning, Thanks for taking my questions.
So on the Ah Congrats on yesterday I see approval.
Paul Johnson: Ron for timing an.
Paul Johnson: Issuing on that license yet how do you how are you kind of thinking about that with you.
Paul Johnson: Be able to.
Paul Johnson: Start ramping on.
Paul Johnson: That license.
Paul Johnson: Hum.
Paul Johnson: Debbie insurers, you know maybe possibly by a little.
Paul Johnson: Next year to act on tapping.
Tapping the unsecured market.
Speaker Change: Sure Great question Shelby do you want to take that one.
Shelby Sherard: Sure I think the punch line is you you're right. It does give us access to additional debt capital and so that buys US time, you know, we don't have a need to tap the secured debt markets I mean, opportunistically, it's something we could consider with summary, heftier repayments coming down the pike, but back to the SBA program.
You know for Q4, we're obviously looking for eligible investments will need to find the first several with equity capital contributed from the parent so I wouldn't expect to see a lot of borrowing on the SBA debentures here in Q4, but it does set us up in the first half of next year to start.
Expanding our debt capital stack with additional SBA debentures.
Speaker Change: Thanks for that that's very helpful. And then maybe just kind of higher level I mean, how would you kind of describe credit is stable. Obviously this quarter. It's positive, but you know how how would you kind of describe you know a quarter or a quarter or maybe just generally this year.
Speaker Change: We're kind of in the migration of credit you know or or company performance.
Speaker Change: In the portfolio.
Speaker Change: Sure it's great great question.
Speaker Change: I'd say company performance.
Speaker Change: You know it's been generally healthy this year this quarter, if I look at just let's say growth in EBITDA. It's.
Speaker Change: It's up but it's really flattish in nature, I think 45% of our our portfolio companies in the core lower middle market.
Grew EBITDA this quarter was a little bit less robust than others, and that's I think reflective of the a little bit slower.
Speaker Change: You know slower economic environment. If you will and then you know what I think about credit I think you know there are those companies that maybe have been in the portfolio for a little while and you are dealing with you know under performance type sit.
Speaker Change: <unk> as you know interest rates are still relatively high and in those cases. There are there are things to work through and so we feel really good about our portfolio and the positioning of the portfolio, but we're not immune to issues and things we got to work through and so we are.
Speaker Change: And so I would say there is in those cases, there's been some migration towards you know maybe issues to to navigate and deal with a relative to nine months ago, but overall I still think it's a it's a very sound and solid.
Speaker Change: Credit portfolio in a and a very very healthy equity portfolio.
Speaker Change: So we feel good about things, but clearly there's their stuff to work through us as always quite frankly.
Speaker Change: Got it I appreciate the answer are there very helpful and I'm also just curious on maybe kind of one brand in the market or do something.
Speaker Change: The larger ended the market.
Speaker Change: Are you seeing.
Speaker Change: You know more.
Speaker Change: Examples of secondaries.
Speaker Change: Transactions, such I mean has that been.
Speaker Change: Anything.
Speaker Change: See I guess in the lower middle market with private equity secondary fund.
Speaker Change: Interest in portfolios.
Speaker Change: Is that.
Speaker Change: And he sort of central option there or.
Speaker Change: Perhaps more more exit activity in the portfolio.
Speaker Change: I want to make sure I understand your question you're talking about just refinancings generally speaking.
Speaker Change: No.
Speaker Change: All of our existing portfolio companies.
Speaker Change: Or more for the equity co investments.
Speaker Change: In the past you've done at least one transaction.
Speaker Change: <unk> sold.
Speaker Change: You know asleep that's companies do.
Speaker Change: Another another.
Speaker Change: Other investors. So I'm just curious if there's anything similar to that or.
Speaker Change: Secondary fund interest as well in the market.
Anything that you've seen.
Speaker Change: Gotcha Gotcha.
Speaker Change: The answer to that is you know from our perspective I don't we are.
Speaker Change: Planning on a transaction like that in the near future.
Speaker Change: Not working on one at all we do having said that I feel very good about.
Speaker Change: Our equity portfolio and we also.
Speaker Change: And think it's you know in some cases mature and ripe for for activity over the next whether it's three six or 12 months and somebody you know and it's a it's a portfolio that's.
Speaker Change: It's been built over time and so some companies are further along than others, but it's a big part of our strategy kind of a 90% debt, 10% equity and I think on a cost basis, we have 8% equity today, but it's it's a it's well positioned for episodic as what I would say.
Speaker Change: Events in realizations. So that's that's probably what I, how I would answer that I don't think we're looking to to sell a bunch of them on a on a proactive basis were more doing it on them.
Speaker Change: You know kind of as you know those transactions take place.
Speaker Change: Hopefully that gets at your your question I think.
Speaker Change: Yes.
Speaker Change: That's all for me. Thank you very much okay nice talking to you Paul Thank you.
Speaker Change: The next question will come from Bryce Rowe with B Riley. Please go ahead.
Bryce Rowe: Hi, Thanks, a lot good morning.
Speaker Change: Morning Bryce.
Bryce Rowe: And maybe maybe first just want to hit on it.
Bryce Rowe: The concept of some of the portfolio companies exploring strategic processes.
Bryce Rowe: Noting that three of the exits in the third quarter, what kind of a result of that have you seen more portfolio companies kind of.
Bryce Rowe: It gets stepped up to the plate to explore those those processes and and maybe give us an update in terms of.
Bryce Rowe: All of the other three are there more more out there kind of continuing to go through that process just trying to get a feel for you know what kind of what kind of churn we might get within the portfolio.
Speaker Change: Sure sure. It's a great question and what I'd say I mean, I think going back to last quarter. I think we had seven or eight companies that were exploring at that time, obviously three have transacted.
Speaker Change: I don't know if we've had.
A bunch of new additions, but some of these processes. We're early early on and so they're kind of taken place as we speak.
Speaker Change: I'm not sure what will transpire this quarter versus next and which ones will you know kind of not transpire, which happens as well.
Speaker Change: But it is you know I think it gives you a sense that in the lower middle market. There continues to be activity from an M&A perspective, it's just not a robust levels are but we do expect some churn in the portfolio and we also do expect quite frankly, some refinancings of some of our debt invest.
Speaker Change: Let's.
Speaker Change: So when I think about you know kind of portfolio growth I think it's gonna be inactive new investment quarter, it's gonna be active within our portfolio as well, which.
Speaker Change: And then it'll be active from a realization and repayment perspective, and it's kind of hard to handicap, whether we will grow the portfolio or not just given the level of activity on both ends of the of the coin.
Speaker Change: That makes sense okay.
Speaker Change: That's helpful.
Speaker Change: Yeah, you did.
Speaker Change: There was some some discussion around you know the the yield compression.
Speaker Change: Quarter over quarter, not a not a big surprise.
Speaker Change: To see that I was just kind of curious of.
Speaker Change: The 20 basis points of yield compression, how much was that tied to spread compression and it.
Speaker Change: And then how much how much of it was tied to the drop in so far that we saw in the third quarter.
Speaker Change: Yeah, I mean, I'll give a quick answers because he wants to add on the quick answer is very little was tied to so for most of those resets if you will.
Speaker Change: Take place early in the.
Speaker Change: The fourth quarter in October.
Speaker Change: So you know very little took place.
Speaker Change: It was really just the fact that we had new originations and lower rates and.
Speaker Change: And then what.
Speaker Change: What were the though it was comparable to what the repayments were.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change:
Speaker Change: Maybe last one for me and and you know we've kind of talked about credit was in the portfolio stable non accruals.
As Robert as Robert mentioned nothing added for.
Speaker Change: For quite some time I didn't notice a I guess it a change in the internal risk ratings with with more three rated credits.
Speaker Change: This quarter versus last.
Speaker Change: Any anything to add there relative to you know do that and you know, especially relative to what you've already said here on the call. I mean, you might have already exhausted it and explained it but just curious if there's anything anything else to read into that.
Speaker Change: Oh, I don't know that there's anything to read into it other than.
Speaker Change: I do think you know, we've obviously got a mature portfolio and there's there are ups and downs that take place you know all the time and every portfolio company.
Speaker Change: And so we did have a couple of additions to the grade three portfolio and for us that means that.
Speaker Change: There's underperformance relative to expectations.
Speaker Change: And probably the risk has gone up you know overall or the risk in our portfolio as a portfolio. We feel really good about it I think loan to values are still in the low forties I think they're at 42% or so so we feel great overall, but you always have a idiosyncratic.
Speaker Change: Issues within our portfolio and we're you know we're and that's what that's what I see I don't see it's not economic driven really it's just a you have issues within our specific portfolio company that you got to work through them and so.
<unk> levels are elevated a little bit as a result.
Speaker Change: Yeah, Okay. Good deal I appreciate the time.
Speaker Change: Thank you Brian good talking to you.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Mr. Ed Ross Our CEO. Please go ahead for any closing remarks Sir.
Ed Ross: Thank you Chuck and thank you everyone for joining us. This morning, we look forward to speaking with you on our fourth quarter call. In early March 2025 have a great day and a great weekend.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Yeah.
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