Q1 2025 Encore Capital Group Inc Earnings Call
Speaker Change: Hi, today welcome to the Encore Capital Group's first quarter 2025 earnings conference call.
Speaker Change: At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer solution.
Speaker Change: To ask a question during the session, you will need to press star 11 on your telephone, and you will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.
Speaker Change: Would now like to hand the conference over to your first speaker today, Bruce Thomas, VP of Global Industrial Relations for Encore. Bruce, please go ahead.
Speaker Change: Thank you, operator. Good afternoon and welcome to Encore Capital Group's first quarter of 2025 earnings call.
Speaker Change: Joining me on the call today are Ashish Masih, our President and Chief Executive Officer Tomas Fernandes, Executive Vice President and Chief Financial Officer Ryan Bell, President of Midland Credit Management and John Young, President of Cabot Credit Management.
Thomas exceeded Jonathan Clark as Encore CFO on April 1st.
Speaker Change: Ashish and Thomas will make prepared remarks today, and then we'll be happy to take your questions.
Speaker Change: Unless otherwise noted, comparisons on this conference call will be made between the first quarter of 2025 and the first quarter of 2024. In addition, today's discussion will include four looking statements that are based on current expectations and assumptions and are subject to risks and uncertainties.
Actual results could differ materially from our expectations
Speaker Change: Please refer to our SEC filings for a detailed discussion of potential risks and uncertainties.
We undertake no obligation to update any forward-looking statement.
Speaker Change: During this call, we will use rounding and abbreviations for the sake of brevity. We will also be discussing non-GAAP financial measures.
Speaker Change: Reconciliation to the most directly comparable GAAP financial measures are included in our investor presentation which is available on the investor section of our website.
Speaker Change: As a reminder, following the conclusion of this call, a replay of this conference call, along with our prepared remarks, will also be available on the Investors section of our website.
Speaker Change: With that, let me turn the call over to Ashish Masih, our president and chief executive officer.
Speaker Change: Thanks, Bruce, and good afternoon, everyone. Thank you for joining us.
Speaker Change: Encore 2025 is off to a strong start which is reflected in every measure of our first quarter financial performance.
Speaker Change: portfolio purchases in Q1 of $368 million were up 24% compared to the first quarter last year.
and collections of $605 million were up 18%.
Speaker Change: This solid collections performance helped earnings more than double compared to last year as Q1 earnings per share of $1.93 was up 103% compared to the first quarter a year ago.
Speaker Change: A leverage improved to 2.6 times at the end of Q1.
Speaker Change: Compared to 2.8 times a year ago and was flat compared to Q4 2024 despite significant portfolio purchasing in the first quarter.
Speaker Change: Additionally, we resumed Sherry Purchases in Q1 purchasing $10 million of Encore shares in the first quarter.
Speaker Change: And as of today, a total of $16 million since the beginning of the year.
Speaker Change: Our insane business in the US continues to deliver very strong results.
Speaker Change: Empowered by the ongoing favourable supply environment, MCM portfolio purchases in the first quarter were a record $316 million at very attractive returns.
Speaker Change: MCM also delivered record collections of $454 million in Q1, up 23% compared to Q1 a year ago.
Speaker Change: Turning to Europe , a cabinet business delivered a solid first quarter.
Speaker Change: But fully purchased, the $51 million were in line with their historical trend.
Speaker Change: Cabot's collections of $150 million were of 7% compared to a year ago.
Speaker Change: At this time, I believe it's helpful to remind investors of the critical role we play in the consumer credit ecosystem.
by assisting in the resolution of unpaid debts.
Speaker Change: These unpaid debts are unexpected and necessary outcome of the lending business model.
Speaker Change: Our mission is to create pathways to economic freedom for the consumers we serve by helping them resolve their past few deaths.
Speaker Change: which you've discussed by engaging consumers in honest, empathetic and respectful conversations.
Speaker Change: Our business is to purchase portfolios of non-performing loans at attractive returns, while minimizing funding costs.
Speaker Change: For each portfolio that we own, we strive to exceed a collection expectations.
Speaker Change: while both maintaining an efficient cost structure and ensuring the highest level of compliance and consumer focus.
We achieve these objectives through a three-pener strategy.
We believe this is instrumental for building long-term shareholder value.
The first pillar of a strategy market focus.
Speaker Change: Concentrate Sir efforts on the markets where we can achieve the highest risk-adjusted returns.
Speaker Change: To that end, we pursue business in countries where the credit markets are large and have consistent and flows of purchasing opportunities.
Speaker Change: We believe the best markets have a strong regulatory framework, have sophisticated sellers who make data available and where we can achieve stable long-term returns.
The markets we've chosen share these characteristics.
Speaker Change: As a reminder, a largest business, Midland Credit Management, or MCM, is in the United States, but it has been operating for over 25 years and is the leader in the world's most valuable market.
Speaker Change: Cabot Critic Management has been operating for over 20 years and is one of the largest players in the United Kingdom and continues to build a stronger presence in a European market of France and Spain.
David Scharf, David Scharf, David Scharf, David Scharf,
Speaker Change: I would now like to highlight Encore's first quarter performance in terms of several key metrics.
Starting with portfolio purchasing
Encore's global portfolio purchases for the quarter were $368 million.
An increase of 24% compared to Q1, 2020-4 [inaudible]
Speaker Change: This increased level of purchasing will help drive Encore's continued collections growth in 2025 and beyond.
Speaker Change: A concentration of portfolio purchases in the US, where we allocated 86% of our deployed capital in the first quarter, is a reminder that the flexibility of our global funding structure allows us to direct our capital toward geographies with the highest returns.
Speaker Change: Global Collections in Q1 was $605 million of 18% compared to Q1 a year ago.
Speaker Change: After several years of lower deployments, the past few years of higher portfolio purchases at strong returns.
Speaker Change: particularly in the US, have led to meaningful growth and collections.
which we expect to continue.
Speaker Change: A global collections performance in the first quarter, compared to a ERC at the end of 2024, was 103%.
Speaker Change: We believe that our ability to generate significant cash provides us with an important competitive advantage.
which is also a key component of a three-pillar strategy.
Speaker Change: Similar to the dynamic I mentioned earlier, I have portfolio purchases that strong returns over the past few years have also led to meaningful growth and cash generation.
Speaker Change: A cash generation for the first quarter on a trailing 12 month basis was up 23% compared to the same period a year ago
Speaker Change: Let's now take a look at our two largest markets beginning with the US.
Speaker Change: The U.S. Federal Reserve reports that revolving credit in the U.S. remains near record levels.
Speaker Change: At the same time, since bottoming out in late 2021, the credit card, short-off rate in the US has also been rising, and is now near its highest level in more than 10 years.
Speaker Change: The combination of higher lending and growth in the charge of rate continues to drive robust portfolio supply in the U.S.
Speaker Change: Similarly, US consumer credit card delinquencies which are a leading indicator of featured charge-offs, also remain near multi-year highs.
with both lending and the charge of rated elevated levels.
Purchasing conditions in the US market remain highly favourable.
Speaker Change: We are observing continued strong US market supply and attractive pricing as well.
Speaker Change: First quarter delinquency data supports our expectation that 2025 will be another year of very strong portfolio sales by US banks and credit card issuers.
After searching to its highest level ever in 2024
for fully supply in the U.S. market remains robust.
Speaker Change: MCM continues to capture significant portions of this opportunity, deploying a record $316 million in Q1 at very strong returns.
Speaker Change: This was a 34% increase in portfolio purchases compared to Q1 a year ago.
Speaker Change: In addition to its record investment in portfolios in Q1, RMCM business continues to excel operationally.
Speaker Change: and CM Collections in the first quarter were a record $454 million dollars.
An increase of 23% compared to Q1 last year.
Speaker Change: driven by strong execution in what is typically a seasonally strong first half of the year.
Consumer payment behavior in the U.S. remains stable.
Turning to our business in Europe .
Cabot delivered solid performance in the first quarter of 2025
Speaker Change: Collections in Q1, $150 million, up 7% compared to Q1 last year.
Speaker Change: Cabots portfolio purchases in the first quarter of $51 million in line with their historical trend.
Speaker Change: We continue to be selected with Harvard's deployments as the nuclear market remains impacted by subdued consumer lending and low delinquencies.
In addition to continued robust competition.
Tomas: I'd now like to hand the call over to Thomas for a more detailed look at our financial results.
Tomas: Thank you, Ashish. Moving to the financial results slide, we want to provide a new format going forward. I hope you will find helpful in understanding the seemingly complex accounting required for our shortly simple business.
Tomas: I would try to help you to better understand our business while simplifying the accounting and outlining the different drivers.
Tomas: First, we purchased consumer MPL portfolios from some of the largest financial institutions. Second, we collected them largely through our internal integrated operations. And lastly, we found those portfolio purchases through our global funding structure.
Tomas: I will now walk you through how everything comes together in our results
Tomas: In the first quarter, we deliver a strong growth in collections and portfolio revenue of 18 and 9% respectively.
Tomas: Collections Growth was positively impacted by robust recoveries above forecast. These overperformance comprise 5% of the total 18% in collections growth.
Tomas: For the rest of the year, we expect collections and portfolio revenue growth rates to align more closely.
Tomas: As a reminder, changes in recoveries is the sum of two numbers. First, recoveries above or below forecast is the amount we collected above or below our ERC expectation for the quarter, and is also known as cashflowers or cash owners.
second
Tomas: Changes in expected future recoveries is the net present value of changes in the ERC forecast beyond the current quarter.
Tomas: A strong collection's performance was supported by record levels of U.S. portfolio purchases in recent quarters. Our focus on operational delivery and seasonality tell wins, particularly in the U.S. Typically, positive seasonality tends to be more pronounced in the first half of the year, with the second half being somewhat softer for collections.
Tomas: Collection deal was 62.6% in Q1, a 4.2% improvement compared to last year. Collection deal is calculated by dividing collections by the average receivable portfolios for the quarter. We analyze it by multiplying it by 4.
Tomas: We expect collection deals to remain around 60% for the year.
Tomas: portfolio revenue increased by 9% to $345 million supported by 10% growth in average received by portfolios and a portfolio deal of 35.7%.
Tomas: portfolio yield is calculated by dividing portfolio revenue by the average receivable portfolio for the quarter
Tomas: We annualize it by multiplying it by 4, portfolio yield is a very transparent metric that can be calculated for each of the debt buyers and demonstrate our superior returns in our industry.
Tomas: Our portfolio deal has been a stable in recent quarters and we expect it to remain around 36% for the year.
Changes in recoveries were $21.5 million for the quarter.
Tomas: Of that total, $27 million, where recovery is above forecast, partially upset by negative $5.5 million of changes in expected future recoveries.
Tomas: Both of our businesses, MCM in the U.S., and Cowote in Europe , were net-positive contributors to changes and recoveries.
Tomas: The resulting debt purchasing revenue increased by 21% to $367 million and the resulting debt purchasing yield was 37.9%, approximately 2.2% was the impact of changes in recoveries.
Tomas: Servicing another revenue remains largely unchanged at $26 million, bringing total revenue to $393 million, reflecting growth of 20%.
John Rowan, John Rowan, John Rowan, John Rowan
Tomas: While collections increase 18% in Q1, operating expenses increase only 8% to $263 million. Evidence of significant operating leverage in the business.
Tomas: Cash efficiency margin for the quarter improves 3.5 percentage points to 58.3% compared to 54.8% in Q1 last year.
Tomas: We expect cash efficiency margin to remain near current levels for the remainder of the year, as we incur expenses related to onboarding portfolios resulting from increased purchasing levels in recent quarters.
Tomas: Gacha Efficiency Margin is a critical operational metric to measure the efficiency of our operations.
Tomas: We have a slightly amended calculation to make it a quality metric.
Introduction of Quattro Recast, Efficiency Margin [inaudible]
Tomas: He is provided to enable better understanding of our operating performance and is also key to estimating future operating expenses. Please refer to the appendix in the presentation for more details.
Tomas: Interest expense and other income increased by 30% to $69 million, reflecting higher debt balances as well as higher interest rates from bond issuances in 2024.
Tomas: Our tax provision of $40 million implies a corporate tax rate of approximately 23%, which is in line with our previous guidance.
Tomas: Finally, net income increased by 101% to $47 million, resulting in earnings per share for the quarter of $1.93, compared to $0.95 in Q1 last year.
Tomas: To conclude, we have made a solid start to the year that sets us up well for 2025.
Tomas: We believe our balance sheet provides us very competitive funding costs when compared to our peers. Our funding structure also provides us financial flexibility and diversified funding sources to compete effectively in this growing supply environment.
Tomas: Leverage close at 2.6 times, a 0.2 times improvement versus last year, and flat versus the previous core.
Tomas: We don't have any material maturities until 2027. Now we have a strong liquidity to continue to grow our US business in 2025.
Tomas: With that, I would like to turn it back to over to Ashish.
thanks to us
Speaker Change: Now, I would like to remind everyone of our key financial objectives and priorities.
Speaker Change: Maintaining a strong and flexible balance sheet, including a strong double-bedet rating, as well as operating within our target leverage range of 2 to 3 times remain critical objectives.
with regard to our capital allocation priorities.
Speaker Change: Buying Portfolios, particularly in today's attractive US market, offers the best opportunity to create long-term shareholder value by deploying capital at attractive returns.
Speaker Change: This is precisely what we are doing as highlighted by a recent purchasing history.
[inaudible]
Speaker Change: Two quarters ago, we indicated that we had raised the priority of shared repurchases of a strategic M&A.
Speaker Change: This is important because as we work our way through the current cycle, we anticipate that a leverage will continue to decline.
Speaker Change: As he foreshadowed in our last earnings call, we did resume stock repurchases in the first quarter.
Speaker Change: Before I close, I'd like to reiterate where we stand today and how the year is progressing.
Speaker Change: The US market continues to be very favorable, with ample portfolio available for purchase and strong returns.
Speaker Change: As a result, we continue to allocate the vast majority of our capital to the US market.
and expect MCM's purchasing to again grow in 2025.
Don Morrow: John Rowan, Mark Hughes, John Rowan, David Scharf,
Speaker Change: MCM is also collecting very effectively on these purchases and powering Encore's collection
Don Morrow: In the European market at Cabot, we are staying disciplined and expect to continue purchasing at a level similar to Q1.
Don Morrow: In terms of operations, Robert is also now on a more solid footing and delivering stable collections performance.
and Ashish Masih.
Speaker Change: And so, the result of a strong start to 2025 in the first quarter.
Speaker Change: and to emphasize the fundamental predictability of our business, as well as our positive outlook for the remainder of 2025, we are reiterating a guidance on key metrics for the year.
Speaker Change: We anticipate global portfolio purchasing in 2025 to exceed the $1.35 billion of purchases as we made in 2024.
Speaker Change: We expect global collections to grow by 11% to $2.4 billion.
Speaker Change: We also expect interest expense of approximately $285 million for the year, and we expect our effective tax rate for the year to be in the mid-20s on a percentage basis.
Speaker Change: Now we'd be happy to answer any questions that you may have.
Operator, please open up the lines for questions.
Speaker Change: Thank you. At this time, we will conduct the question and answer session. As a reminder to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster.
. . . . . . . .
Speaker Change: Our first question comes from the line of Mark Hughes with Truist Securities. Go ahead, your line is open.
[inaudible]
Yeah, thanks. Good afternoon.
Hello Mark
The collection's performance at Cabot at 108, 107 percent.
Speaker Change: Was that a function of the updated forecast or did you see some improvement in the underlying collections there or both perhaps?
. . . . . . . . . . . .
Speaker Change: I would say Mark, it's kind of a combination so over time we've been working very hard improving the operations there, stabilizing kind of how we collect.
Speaker Change: So, yes, the forecast has improved change as of Q4 as you know, but the operation is also performing very in a stable manner in a steady manner, so I'm very pleased to speak on how that's going. So it's a combination of all those.
Speaker Change: and really happy to see how cabbage performing starting this year.
Speaker Change: Very good. I said the queue will be out soon, if it's not out already, but the expected collections multiple on the US paper and then the cabinet as well. I think the reference point last year is 2.3 times for 2024. Get that number for Q1.
Speaker Change: Yes, so for Q1, both MCM and Cabot had a 2.3 multiple.
[inaudible]
Very good. And then, uh...
Speaker Change: in the U.S. sounds like supply is very good. Do you think is it kind of stable from here? Looks like the link when he's flattening out a bit.
just elevated, but ...
table supply
Speaker Change: Yeah man, that's something we watch very carefully so compared to 24 in terms of deployable capital
Speaker Change: It should be at a similar level, which of the record last year. So maybe a tad higher.
Speaker Change: depending on kind of how issues are selling and what they're seeing but you're right, your link
Speaker Change: Shod off rates are elevated for stable and so is lending and now the variation is...
Speaker Change: Somebody sells more or less, somebody new comes on board at times so we see very stable if not a tad higher so it's a very good favorable market the sample portfolios for sale at stronger returns and therefore we expect MCM to grow purchasing in 25 again to another record compared to 2024.
Speaker Change: In one final one, if I might be any volatility or fluctuation and collectability in the Q1, anything in tax season in the US that was different than you might have expected, maybe a...
Tariff, the economic worries, that sort of thing.
John Rowan, Mark Hughes, John Rowan, David Scharf,
Mark: Yeah, Mark's I'll offer a couple of things. So first on tax season.
. . . . . . . .
Mark: Appears to be a very normal tax refund season, maybe on the margin slightly better.
Mark: But you're finding pretty stable and no issues with consumer on that front. Now on the broader consumer behavior front.
Mark: Also Q1 has been very stable in terms of peer rates or people staying on their payment plans.
Mark: So none of the macro kind of at least news and whatnot has shown up and as you can see from our collections numbers we are doing really well MCM is collecting well. So nothing on that front at this point.
Thank you very much.
. . . . . . . .
[inaudible]
Speaker Change: Our next question comes from the line of John Rowan with Jeannie. Go ahead, your line is open.
Good afternoon, guys.
Speaker Change: What dynamic is driving all these cash overs that you're reporting, but still negative revisions to forecasted recoveries? I would think that a positive variance in one would likely drive a positive variance
John , that's actually not always the case, now.
Speaker Change: The cash overunders and the NPV changes, those are different ventures, different things happen now in some cases, if you think you're not going to collect more over the lifetime, cash over, it will lead to a negative impact on the expected future recoveries, right?
Speaker Change: Now, in other cases, if you're collecting more and you think it's a permanent increase and that's a judgment call you make every time, that's kind of a pull forward of collections.
Speaker Change: Those are kind of judgments we make on a vintage by vintage basis and so I wouldn't assume what you said automatically every time, but overall we are very pleased with
Strong collections from both MCMN Cabert against our expectations
Speaker Change: and we'll be watching rest of the year, but very strong start to the year. All right, thank you. It's all for me.
[inaudible]
The moment for our next question.
Speaker Change: The next question comes from the line of Mike Grondahl with Northland Capital Markets. Go ahead, your line is open.
Speaker Change: Hey, this is Logan on for Mike. Thanks for taking our question.
Speaker Change: So, with the 21.5 million of changes in recoveries, how should we think about that from a core EPS perspective? Just want to make sure we have a good understanding of the normalized business going forward. Thanks.
So...
Speaker Change: It's kind of interesting to translate it exactly to EPS always because these are real collections increases that we're seeing and these are also over-performance. So, if you really wanted to do the math...
Speaker Change: that 21 cents or whatever would lead to about 70ish cents or 72-73 cents impact, but I would not go that far to exactly kind of equate as if EPS is without those, but since you asked for a direct impact and that's about 73 cents.
Speaker Change: but these are coming from stronger collections and performance so that's why we kind of really like the performance that we saw in Q1 and the trend is continuing as as we expect it for the year.
Speaker Change: Yeah, thanks for the color. Then with the 10 million buybacks in the quarter, is this the pace we should expect throughout the rest of 2025 or will this scale up from here? Any color
Speaker Change: On buybacks, so if you remember two quarters ago, we laid out a criteria, we said as we approached the midpoint, we would resume sharing purchases. Again, subject to other conditions, so that's exactly what we did.
Speaker Change: Anything, any buybacks in the future are always subject to the conditions we mentioned, strength of balance sheet, liquidity, the opportunity for purchases and particularly in the US.
Speaker Change: How the collections are performing, in terms of cash generations, all of those financial conditions and balance sheet will dictate, but as we indicated two quarters ago, we did exactly what we had said in the first quarter. So, stay tuned for us to the year.
Speaker Change: All right, then, then one last one from us. With the favorable purchasing conditions in the US market, can you just provide an update about what you are seeing that the traction in the US and how do you see purchases going forward domestically? Thank you.
[inaudible]
Speaker Change: Logan, you're breaking up a little bit. I think you asked the question about the purchasing conditions in the U.S. market.
Speaker Change: Yep, just what's the track of there and then how are you guys thinking about purchases going forward?
Clark.
Clark: For MCM are running ahead of commitments at this time a year ago. So we feel really good about our ability to grow U S purchasing to another record in 2025.
Speaker Change: Thank you that's all from us congrats on the quarter.
Speaker Change: Thank you standby for our next question and as a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced.
Speaker Change: To withdraw your question. Please press star one again.
Speaker Change: Our next question.
Speaker Change: Will come from the line of Robert Dodd with Raymond James Go ahead, Robert Your line is open.
Speaker Change: Right.
Speaker Change: Robert are you there your line is open for questions.
Speaker Change: Yes, I was on mute my bad sorry, I apologize if this has any background noise.
Speaker Change: You gave us some color on like payment plans et cetera.
Speaker Change: The tax season may have been marginally stronger than usual.
Speaker Change: Was there any unusual mix between U payment plans initiated in the quarter versus versus a large onetime payments, which sometimes you get in tax season, because obviously I mean it was it was a very good quarter, but how much of that was sort of.
Speaker Change: Do you think potentially one off versus new initiations.
Speaker Change: And Robert and nothing unusual on that front and.
Speaker Change: And our MCM business I would say across all channels of our collections in MCM Theyre, all performing really well.
Speaker Change: And the nature of payments as you mentioned one off payments versus payment plans. They are all very consistent with what we've seen for a while so there's been no real change on that front.
Speaker Change: At all.
Speaker Change: Got it thank you and if I can one more.
Speaker Change: Obviously.
Speaker Change: You talked about it last quarter, there's been a big.
Speaker Change: Virtual approval.
Speaker Change: A previously non selling bankers getting acquired hypothetically right.
Speaker Change: There's a lot of questions in there.
Speaker Change: Embedded questions I'd now like if that shallow well to start selling into the market.
Speaker Change: And Thats.
Speaker Change: Obviously, how long do you think it would be before that would actually start to occur in volume I presume it wouldn't be immediate if it were to occur.
Speaker Change: But can you give us any any any thoughts on that.
Speaker Change: So if I get the drift of your question I would say that.
Speaker Change: Much more valid question for the seller, perhaps but I would think with any kind of closing of a transaction. It takes a long time for strategies to be aligned and for any seller I would expect new seller you would start slow it could be a while.
Speaker Change: Clearly that is sure has.
Speaker Change: A large amount of outstandings of the credit card.
Speaker Change: Market in the U S. It would be meaningful I would expect but it will take a while.
Speaker Change: Got it got it thank you.
Speaker Change: One moment for our next question.
Speaker Change: Your next question comes from the line of David Scharf with citizens go ahead. Your line is open.
Speaker Change: Hi, Good afternoon. This Zack on for David and congrats on the strong quarter I wanted to just dig in a little bit on the.
Speaker Change: The expense side of things.
Speaker Change: Cash.
Speaker Change: Cash efficiency ratio jumped quite a bit this quarter.
Steve: Steve can you give some guidance on that.
Steve: Your line items incorporated in operating expense.
Speaker Change: Hi, So we're not going to give guidance on the individual.
Speaker Change: Cost items, but what we can tell you is for the remainder of the year, we expect that cost efficiency margin to remain around current levels of 38%.
Speaker Change: Yes, sorry, 58% sorry.
Speaker Change: So.
Speaker Change: We expect that cost to grow in line with collections is effectively what were saying.
Speaker Change: That is mainly driven by the higher that we've been buying heavily in the previous three for us. So as we ramp up the collections, how we onboard accounts when between personal cost.
Speaker Change: And associated with that which will give that.
Speaker Change: Scott.
Speaker Change: But we do still see.
Speaker Change: Operating leverage in the business as you have seen in the transition from 'twenty four 'twenty five.
Speaker Change: Got it thank you.
Speaker Change: And I'm showing no further questions at this time I would now like to turn it back to Mr. Masih for closing remarks.
Speaker Change: Yes.
Speaker Change: Sure.
Speaker Change: Thanks for taking the time to join US today, and we look forward to providing our second quarter results in August.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program and you may now disconnect.
Speaker Change: Okay.
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