Q1 2025 Copart Inc Earnings Call
More broadly, though, we wanted to pause for a moment to reflect on longer-term industry trends. There, as you know, has been a steady drumbeat in the news media and in various company announcements on accident avoidance technologies and autonomous driving rollouts over the past decade-plus.
And, in addition, we've encountered a number of inquiries in recent days from investors and other interested parties on this subject as well. Our answer here will be especially U.S.-centric, but the takeaways, I think, are broadly applicable to the markets in which we do business.
We all, of course, draw inferences from our own empirical experience. The cars we drive, we now experience more of the safety technologies in the form of lane departure warning systems that buzz our steering wheels. Rear cameras that we probably all use when we back up our cars nowadays. And many of us have also taken rides in autonomous taxis within the geofence areas in which they're operating today.
We think there's also insight to be derived, however, from multiple decade trends that we can observe in actual data.
There are four factors I wanted to draw out today, and then a secondary consideration I wanted to offer that inform our perspective on the long-term organic growth trends in our business.
The first is simply population growth. Since 1960, population in the United States has grown at 1% compounded, which sounds like a fairly modest growth rate, but over a time horizon of that scale, our population has almost doubled in the United States.
The second consideration is vehicle miles traveled, which over that same horizon, plus or minus, has grown at 2%.
As a result, vehicle miles traveled over that horizon has quadrupled from 1960 to today, which is to say that ultimately vehicle miles traveled as a country grows more populous and more prosperous, as the United States has done, generally outpaces population growth alone.
We're all aware, of course, of the anomalous, very well-documented steep decline in vehicle miles traveled in 2020, courtesy of COVID-19. We are now above pre-pandemic peaks on this specific metric.
If you were to look at a visual chart showing vehicle miles traveled over this 60-plus year period, I think you'd likely also conclude that we still have several years of return-to-work tailwinds ahead of us as more and more businesses implement those policies.
The third phenomenon I want to comment on specifically is accident rates and their long-term trends downwards. So over the past 30 years,
The Department of Transportation has published data on police-reported crashes.
There is one anomalous trend from the 2014 to 2018 period I think marked likely by
the proliferation of smartphones and the addictive apps that certainly afflict us all that caused accident rates actually to increase in certain years during that period. But nonetheless, over the decades-long horizon,
But, in absolute terms, that decline has only been 8% because of the offsetting effects of the growth in population and vehicle miles traveled.
Safety technologies penetrate gradually into new vehicle shipments and still more gradually into the installed base of drivable vehicles.
and it is that fleet effect which causes the gradual decline in accidents relative to the perhaps more innovative technology deployments exhibited or implemented by OEMs today.
And then the fourth and most important driver of our business is total loss frequency itself. It has been the key catalyst in our growth now for decades and has grown more than fourfold since 1990.
This, again, is a phenomenon that has exhibited a nearly monotonic increase over that period, but for an anomaly in late 2021 and early 2022.
when the pop in used car prices made total loss a relatively expensive settlement procedure for insurance companies, briefly suppressing total loss frequency. We are yet again above pre-pandemic highs on this specific metric.
the long-term catalyst here.
is that vehicles become ever more complex including for reasons safety technologies we've already talked about today and therefore more expensive to repair rendering the repair path less attractive
while also the intrinsic value of these vehicles rise via our marketplace. We find still more buyers in places like Eastern Europe, Central and South America, Africa, and elsewhere where their mobility needs are ultimately satisfied by our wrecked cars.
The proliferation of safety technologies that drive accident frequency down and by the way there have been multiple rounds of these technologies over the decades from anti-lock brakes in the 70s and 80s.
to the more sensor-driven technologies of today. But the proliferation of these technologies is not incidental to total loss frequency, but in fact directly causal.
These technologies tend to be enabled by sensors and chips often configured on the perimeter of vehicles rendering them quickly and easily damaged in an accident and raising the cost of repair as a result.
those cars in turn are still quite valuable to our destination markets as drivable contributors to the mobility in those markets.
One additional secondary driver I thought was worth mentioning today is the phenomenon of uninsured, underinsured, and undercapitalized motorists specifically.
On the point of uninsured or liability-only drivers, there is a very clear 30-year-plus trend downward, meaning over time, in a market like the United States, insurance coverage generally becomes more robust.
We do, however, observe cyclicality within that longer-term secular trend, driven in part by insurance premiums, the economic health of the country, and so forth.
In the past year or two in particular, the insurance premiums have generally increased at a rate outpacing other components of the consumer experience, in part because of the natural regulatory lag in raising insurance rates.
As a result, then, the liability-only plus uninsured motorists combined are a greater share of the drivable fleet than they had been in prior years. Again, the long-term trend here appears to be a secular trend downwards in any case.
The upshot of all of the above for us is that as we look forward on a 5, 10 and 20 year horizon.
Our baseline expectation continues to be of ongoing organic industry growth as population and vehicle miles traveled trends, plus total loss frequency most importantly of all, more than offset declining accident frequency as safety technologies penetrate to new vehicle shipments and eventually the drivable fleet.
We do expect perhaps more volatility from contributors such as used car prices, from severe weather events and the like. On both fronts then, we're investing accordingly to ensure that we have the physical technology and people capacity to serve our insurance clients under any conditions.
Speaker Change: With that, I'll hand it over to our CFO, Leah Stearns.
Leah Stearns: Thank you, Jeff. I'll begin with our first quarter sales trends. During the quarter, our global unit sales and inventory increased 12% and 6% respectively from the year-ago period and was a function of growth and total loss frequency and share gain.
Leah Stearns: Focusing on our U.S. business, unit growth was about 11%, which reflects fee unit growth of 11% and purchase unit growth of nearly 6%. Consignment or fee units continue to constitute the vast majority of our U.S. unit volume.
Leah Stearns: Our U.S. insurance unit volume increased about 12% year-over-year and approximately 9% excluding CAT units.
Leah Stearns: We continue to grow our volume with non-insurance sellers by leveraging our core capabilities in outdoor storage via our real estate portfolio, a strong network of logistic solutions, and a global liquid buyer base.
Leah Stearns: We are also seeking to optimize the mix of non-insurance units from a profitability perspective as we continue to prune the low-value unit volume.
Leah Stearns: During the quarter, our blue car business, which serves our bank and finance, fleet and rental segment partners, continued its strong trend of year-over-year growth of over 20 percent.
Leah Stearns: Our dealer sales volume, a combination of our Co-Part Dealer Services Division and National Power Sports Auctions, increased sales volumes by over 2% year-over-year, with CDS declining less than 1% and NPA increasing nearly 14%.
and low-value units including charities and municipalities declining 4%.
Leah Stearns: On a final note, our partner in the specialty equipment space, PurpleWave, has driven double-digit gross transaction value growth year-over-year for the trailing 12-month period ending October 31st, which significantly outpaces industry growth in the equipment auction marketplaces they serve.
Leah Stearns: This impressive growth demonstrates the value of our partnership and what it brings to the market.
Leah Stearns: Overall inventory levels in the U.S. increased over 5% and decreased by about 1% when excluding low-value and CAT units.
in Turning to our International Business.
Leah Stearns: We saw unit growth of nearly 16% in the quarter, including about 6% from CAT units due to severe floods in the UAE and Brazil, with fee units increasing about 16% in Q1, and purchase units increasing by just over 14% for the quarter.
Leah Stearns: Our international business ended the quarter with inventory levels over 10% ahead of prior year.
Leah Stearns: Global ASPs declined by less than 1% for the quarter relative to the year-ago period. Our US ASPs continue to show resilience and are significantly outperforming the used vehicle market more broadly.
Leah Stearns: While the Mannheim Used Vehicle Price Index declined by about 4% year-over-year, our U.S. insurance ASPs declined by only 1% over the same time period and had a slight increase of about 1% sequentially. Internationally, ASPs increased nearly 7%.
Leah Stearns: Turning to our financial performance, global revenue in the quarter increased to $1.15 billion, representing growth of over $126 million or about 12%.
Leah Stearns: Global service revenue increased nearly 127 million or about 15% for the first quarter, primarily due to increased volume.
Leah Stearns: U.S. service revenue grew by about 13% for the quarter, which included 2% attributable to CAT units. And international service revenue grew by about 30%.
Leah Stearns: Global purchase vehicle sales for the first quarter decreased less than 1 million or approximately 20 basis points, while global purchase vehicle gross profit increased by about 72% in the first quarter.
Leah Stearns: In the U.S., purchased vehicle revenue was up about $9 million, or about 12%, while purchased vehicle gross profit increased nearly $5 million, or about 77% for the quarter.
Leah Stearns: Internationally, purchase vehicle revenue decreased by nearly 10 million, or nearly 12%, and gross profit increased by 4 million, or about 67% in the first quarter.
Leah Stearns: The reduction in international purchase vehicle revenue accompanied by an increase in gross margin was primarily driven by higher ASP insurance vehicles in Germany which transitioned from purchase contract to a consignment model.
coupled with stronger purchase unit margins in the UK.
Leah Stearns: In the U.S., facility-related costs increased $74 million, or nearly 22%.
Leah Stearns: During the quarter, we recognized $29 million in incremental costs associated with Hurricane Helene and Milton. This reflects non-capitalized costs associated with units sold in the quarter, which is a change from our past CAT financial disclosures.
Leah Stearns: There remain $18 million in costs which were incurred and are currently capitalized on the balance sheet.
Leah Stearns: These will be recognized as the remaining CAT units are sold.
Leah Stearns: Excluding the costs associated with the hurricanes, facility related costs per unit increased about 4% from the prior year period. This normalized increase in per unit costs reflects our ongoing investments in expanded operational capacity to support our continued growth.
Leah Stearns: International facility related costs were up 14 million, an increase of nearly 24% or approximately 7% on a per unit basis.
Leah Stearns: The increase in per unit costs was primarily due to growth in headcount to support our business in the UK.
Leah Stearns: During the quarter global gross profit was approximately 512 million representing an increase of 48 million or about 10% and our gross margin percent decreased by approximately 82 basis points to 44.7% in the quarter.
In the U.S., our growth profit increased to $448 million.
Leah Stearns: which was an increase of over 28 million, or about 7%, and growth margin decreased 260 basis points to 47.2%.
Leah Stearns: Our international gross profit increased to $65 million, about $20 million of an increase, or 44%, and gross margin increased over 740 basis points to 32.3% in the quarter.
Leah Stearns: turned to our general and administrative expenditures, which were $106 million in the quarter.
Leah Stearns: This increase of $37 million reflects growth across the investments we have made into growing our specialty equipment sales team, which covers both a geographic and sector-specific coverage perspective.
Leah Stearns: We expect to generate meaningful growth in specialty equipment growth transaction value over the next 12 to 24 months as a direct result of this investment.
Leah Stearns: In addition, the investments we're making in our platform services teams and systems, which include our legal, compliance, technology, and our finance and people and culture teams, have continued with support from third parties.
Leah Stearns: We would expect these expenses to partially recede over the next 12 months and believe the business will be well positioned to generate strong operating leverage in the future.
Leah Stearns: As a result, first quarter gap operating income increased by about 3% to over $406 million, which includes a modest headwind from the impact of Hurricanes Helene and Milton.
Leah Stearns: And finally, first quarter gap net income increased by about 9% to over $362 million or $0.37 per diluted common share.
Leah Stearns: During the quarter, we did benefit from over $13 million of incremental interest income as we have actively invested our cash into Treasury securities. And for the quarter, our tax rate was 20%.
Leah Stearns: nearly 3.7 billion in cash and our capacity at a revolving credit facility.
Leah Stearns: For the quarter, we generated free cash flow of about $246 million, reflecting operating cash flow generation of $482 million and capital investments of about $237 million.
Leah Stearns: Our strong performance in responding to the hurricanes during the quarter was directly attributable to the investments we've made in our teams, CATLAN portfolio, logistic solutions, and technology platforms.
Leah Stearns: We expect to prioritize the deployment of capital into these areas as we strive to continuously improve upon our service levels on behalf of our customers.
Speaker Change: Great, thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad.
Speaker Change: A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. One moment please while we pull for questions.
Speaker Change: Our first question here is from Bob Labick from TGS Securities. Please go ahead.
Speaker Change: Thanks. Good afternoon and thanks for taking our questions. You're welcome.
Speaker Change: Hi. I wanted to follow up on your earlier discussion on total loss frequency and salvage trends and whatnot. I think you said 21.7 is roughly where total loss frequency is, so it's obviously really returned and gotten high.
Speaker Change: You've mentioned on prior calls that this is obviously a combination of some of your customers' insurance companies well above that, and then therefore some are below that as well.
Speaker Change: I was wondering if you could tell us some of the characteristics of the insurance companies that are at the higher end of that or at the lower end? Are they, you know, the big ones are higher and small ones are lower? Is it tech savvy versus old school? You know, is there a difference?
Speaker Change: How should we think about that? And then, maybe more importantly, what are the reasons a company would keep, you know, have a lower total loss frequency? Is that intentional?
Maybe just, I'll stop there.
Speaker Change: Got it. Bob, a very fair question, and one for which there isn't.
Speaker Change: a tidy one paragraph answer. The reality is if you even took one insurance carrier and compared them regionally against themselves, I think you'd find meaningful variation even within a given company.
Broadly speaking, I think you highlighted a couple of...
Speaker Change: axes on which our insurance clients can vary, including their book of business, where there's certain types of cars, certainly high-end luxury automobiles.
Speaker Change: for which some policyholders are less open-minded about retaining a heavily damaged and now heavily repaired vehicle after the fact. So for customer service accommodation reasons, sometimes those cars are totaled more readily than they otherwise would be.
Speaker Change: In terms of total loss practices, I think that some of the variations we'll see are literally the decision-making criteria. So at one end of the spectrum, you'll have folks who...
Speaker Change: If anything, still have the statutory mindset, for lack of a better expression, which is to say that in certain states, if damage exceeds X percent of the in-tax value of the car, by statute a carrier must offer the policyholder a total loss, at least as an option.
Speaker Change: And so some carriers to this day still adopt that, a 75% threshold or whatever arbitrary threshold for the repair estimate divided by the intact value of the car, to determine the absolute line above which all cars are totaled and below which none of the cars are totaled.
Speaker Change: So a claim comes in. What is the repair cost for this claim? How long will it take? What will the rental charges be on this repair while it's in the shop? How much can we generate for that car at Copart instead? And then make an individual economic decision.
Speaker Change: Every carrier is somewhere on that spectrum, but as you noted, there is a huge dispersion among insurance carriers today. And we certainly...
Speaker Change: provide them with a number of tools to help them make that decision better and help them make that decision faster. I think we've made strides in that regard but certainly with with many years of progress still to come.
Speaker Change: Okay, great. And then just, you know, one other question for me, obviously, continued nice success with the Blue Car, you know, initiative there. With the reduction, the kind of near-term current reduction in off-lease vehicles, which I know you don't participate in, really, but how does it impact the supply, if at all, of
Speaker Change: from your blue car customers, because there's less younger cars kind of going into the reconditioning market. Is this impacting the total loss frequency on the blue car area versus just the regular salvage cars? Or have you seen any impact thus far? Are you expecting any over the next?
A couple quarters.
I'll take that one Bob
Speaker Change: It's more impactful to our CDS business, more of our dealer services, it's just the overall volume impact for wholesale market and how that can influence pricing and unit availability. It's less impactful from a BlueCarp perspective because
Speaker Change: Again, remember, many of those Blue Car units still have some level of damage, and increasingly we're working towards being close to having lower damage vehicles flowing through Blue Car. But the off-lease units are more impacting the overall unit volume within the wholesale market as a whole, and that can impact pricing and availability for the broader dealer wholesale space.
Speaker Change: Bob, I'd say for our business, off-lease volume is not per se a specific catalyst. It's just one contributor to the supply and demand.
Speaker Change: dynamics for new and used vehicles overall. So it perhaps is somewhat softening used vehicle supply, but that's one variable amidst a large range of them that influence those used car prices.
Speaker Change: Okay, super. Thank you very much. I'll jump back in queue.
Speaker Change: Our next question is from Chris Paraguay from BNP Barbis. Please go ahead.
Chris Paraguay: Hey guys, thanks for taking the questions. Step two for you.
Chris Paraguay: The first one I want to ask about is following up the question from last quarter on insurance and uninsured motorists. I was wondering what he's historically seen.
Speaker Change: When there's been changes like from cat events, we have large hurricanes
Speaker Change: On one hand, you think, you know, the higher insurance costs afterwards.
Speaker Change: and Colleen Schlerzman. Thank you for using Red Bee Media's YouTubepee.
Okay.
Speaker Change: Chris, I'd say the data we've seen, and I was going to give you the citation here as well, is from, I think, the Insurance Institute, I believe.
Speaker Change: And they tracked uninsured motorists back to the late 1980s, plus or minus with an annual figure.
Speaker Change: The annual figure would be, for the country overall, there are other sources from which we derive liability coverage also. And I'd say given the nationwide nature of the data, trying to find that finely parsed question as to whether Hurricane Sandy led to changes in the Northeast or Ian and Hilton
Speaker Change: and Milton and Helaine caused changes in Florida, Harvey and Texas, that I don't think we can quite see in the data. So when I look at 2017, for example, Hurricane Harvey, major event, there's not per se an attributable change to the uninsured motorist population then.
Speaker Change: Yes, that makes sense. It's tough. All right, similar question that's probably equally as hard to answer, but I'm going to ask it anyway. If you go back to the Trump tariffs...
Speaker Change: I know you don't have any direct impact, but I was just curious, your ASP search then, obviously a lot of factors, Harvey and I think just changes in the charity vehicles, but.
Speaker Change: I'm just curious, like, was there any noticeable impacts in your business from the Trump tariff regime in 18-19? Did you see impacts in ASP or total loss rates or anything else that wouldn't be obvious that I might see?
Not one we could isolate, no.
and I think even...
Speaker Change: The nature of your question is probably looking forward to what it means for our business, and I think there are certainly elements of this that are unknown.
Speaker Change: I would say that most of the countries, I think, with which the administration has those tariffs in mind, China for example, are not per se meaningful importers of cars to the United States, nor are they particularly meaningful export markets for Copart either.
So could we could we could face some
Speaker Change: Contradictory effects here in our own business, you can imagine scenarios in which the value of the cars we sell are certainly higher because they're already landed on U.S. shores, and so they're now competing against vehicles or parts from overseas that may now face new tariffs.
Speaker Change: You could also imagine a scenario in which it causes used car values to be higher than they otherwise would be, which could bring back some of the phenomenon we saw in late 2021 and 2022.
Speaker Change: in which demand for our services is suppressed relative to where it otherwise would be, right, because of ACBs or sky-high.
Speaker Change: argued in economics are better, but total loss frequency can also be softer as a result. How that all plays out over the course of the next 12 months, the next four years, I don't think we know precisely, but I would say the last time around there was not a meaningful disruption to the business.
Thank you.
Speaker Change: Our next question is from Brett Jordan from Jeffrey's. Please go ahead.
Brett Jordan: Hey, good morning or good evening I guess. Question on the G&A, I think you said a lot of that 36 million was specialty sales team growth that might recede over the next 12 months. In the shorter term, do you expect to continue to build that up as you're focusing outside the, you know, into the incremental markets outside of salvage, or are we sort of at a G&A spend level that you see flatlining?
Speaker Change: We'll be disciplined in terms of when we make those investments, specifically attributable to your point around the specialty sales team expansion. We're being opportunistic, and so to the extent that we find the right sales team members, we'll bring them on board. We have targeted areas that we're focusing on initially, but if there are...
Speaker Change: opportunistic hires that we can make that make sense for us, we certainly will pursue that. That GNA investment that we've made, we've basically doubled the headcount.
Speaker Change: and our sales team since the acquisition, and so it's a fairly sizable increase and we're likely to digest that for a period of time, but I don't want to take anything off the table and assume that we won't be pursuing hires to the extent that we find the right folks.
How does that three of four cars
Speaker Change: Yeah, I think that's probably speculation I'm not prepared to undertake at the moment, but I think it reflects Yes, our market presence there and it does reflect speed. So I think our ability to process cars this time both retrieved
Speaker Change: We do perceive a competitive advantage in terms of how quickly we respond to catastrophic events.
Speaker Change: Is Title Express playing a role in that salvage title, or is it just the state is more cooperative than others? It can. So, as I think we talked about last time, we're now managing the titles for approximately a million dollars.
Speaker Change: Vehicles per year, so now it's a sizable portion of all the titles, due process on behalf of insurance carriers.
Speaker Change: The salvage title issuance is the speed with which the state responds to us once we submit the original title. Our Title Express team can help determine how quickly we retrieve that original title. So their ability to do so, yes, yields a competitive advantage. Their ability to do so quickly yields an advantage in Florida and elsewhere.
Thank you.
Speaker Change: As a reminder, if you would like to ask a question, it is star 1 to join the queue.
Speaker Change: Next question here is from Alice Lexwyn from Baird. Please go ahead.
Speaker Change: Hi guys, thanks for taking my question. I think maybe the off-lease discussion kind of touched on this a little bit But wanted to just hit on the dealer services side again. I think you said it was down just under 1% Can you confirm that I have that number right? And then if that's the case Maybe a little bit more detail about what you're seeing in that market is it seems like a slowdown from the kind of prior four-quarter trend
Speaker Change: So, Alice, I think what we saw in the first quarter was just a pause in September, some slightly lower volumes related to some specific accounts, but we saw October come back, so I don't think it's a...
Speaker Change: a headwind that will persist, but we are obviously watching that closely. I think generally speaking, the wholesale space was a bit soft in September, so it was correlated with what we saw in the broader market.
Great, that's it for me. Thanks.
Thanks, all.
Speaker Change: Next question is from Josh Padwa from JP Morgan. Please go ahead.
Josh Padwa: Hi. Thanks for taking my questions. I wanted to follow up on your comments on the shift towards consignment model units in Germany. I'm curious if you could elaborate on what you are seeing in the market there and whether we are arriving at a turning point with a broader shift towards consignment-based units from the insurance carriers there. Thanks, and have a follow-up.
Speaker Change: Got it. I appreciate the question. I think as you as you probably know if you followed Kopar for a while It's often the case that when we enter new markets and enter new quote seller segments, for example in the UK when we first launched our business
Speaker Change: We were largely a principal shop, so we'd buy cars from insurance carriers as we proved to the marketplace that we had a liquid auction platform and that in fact the sellers could achieve better results by letting it rise, so to speak, by selling the cars at co-part auctions.
Speaker Change: We invariably migrate them over time to a pure auction arrangement, and that is now true in the U.K. In the U.S., the example would be there are certain cars we once would have bought from certain institutional sellers like charities and so forth that over time again eventually migrate to an auction format instead.
Speaker Change: In Germany, the journey has been much the same. As you might imagine, all of these progressions are gradual, so it's not an overnight snapping of the fingers.
Speaker Change: But that's certainly the direction in which we want to move the business, the direction in which the business should move as well, the right economic outcome.
Speaker Change: for us to all, for us and our clients to be on the same side of the table rooting for the same outcomes.
Speaker Change: and that's ultimately why we want to achieve that destination. So we have made progress, there's still room to go in that respect.
Speaker Change: Understood. That's very helpful. I also noticed, you know, an uptick in CapEx spend relative to the run rate over the past couple of years. Could you share any details around the nature of these investments and if we should expect a similar run rate going forward?
Speaker Change: Just any, you know, granularity around the cost pockets, whether it's, you know, primarily land-oriented or any other investments that you're making. Thanks.
Speaker Change: I think it's fair to say that in this period, and in virtually any historical period, capital expenditures for CoPARC will largely be land and development and in technology. Really, those two or those three dimensions.
Speaker Change: And they're a reflection of immediate need and a reflection of growth expectations as well. I wouldn't read a whole lot into quarter to quarter variations. You might imagine there are facilities that we have diligence and have been pursuing, have been negotiating for months, in some cases years, and believe it or not, in some cases decades, that finally come to fruition.
Speaker Change: and we don't schedule them, right, so to speak. We buy the land when we can. Either land we've already leased, or land we can immediately use, or raw land we then subsequently have to develop before we can use it ourselves.
All of those things are...
Speaker Change: Folded into that one number in capital expenditures, so it's hard to read a whole lot into it, but we are delighted to invest in
Speaker Change: In land and capacity and in technology, we think it equips us to serve our insurance clients, as I noted at the beginning of the call, to support their growth, the industry's growth over time, and to support industry volatility over time, I think requires us to invest more capital thoughtfully, of course, always, diligently, of course, but we're delighted to do it because we think it's necessary to serve our clients.
Speaker Change: Thanks for all the call out, good luck. Great, thank you.
Speaker Change: for any closing comments. Yes, thanks for joining us. We'll talk to you next quarter.
Thank you. Thank you. Thank you.
Speaker Change: This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.
Speaker Change: Vinny Sir 1959 movie This film is of no importance whatsoever in the cinematic and audio-visual realm of an American band. They perform their labor. And ye prepared for me.
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