Q4 2025 Atmos Energy Corp Earnings Call

Speaker #3: Hello , and thank you for standing by . My name is Tiffany , and I will be your conference operator today . At this time , I would like to welcome everyone to the Atmos Energy Corporation fiscal 2025 , fourth Quarter Earnings Conference call .

Speaker #3: All lines have been placed on mute to prevent any background noise . After the speaker's remarks , there will be a question and answer session .

Speaker #3: If you would like to ask a question during that time , simply press star . Then the number one on your telephone keypad .

Speaker #3: I would now like to turn the call over to Daniel Meziere vice President of Investor Relations and Treasurer . Dan , please go ahead .

Speaker #4: Thank you . Tiffany . Good morning , everyone , and thank you for joining us . With me today are Kevin Akers , President and Chief Executive Officer .

Speaker #4: And Chris Forsythe , senior vice president and chief Financial officer . Our earnings release and conference call slide presentation , which we will reference in our prepared remarks , are available at Atmos Energy under the Investor Relations tab .

Speaker #4: As we review our financial results and discuss future expectations , please keep in mind that some of our discussion might contain forward looking statements within the meaning of the Securities Act and the Securities Exchange Act .

Speaker #4: Our forward looking statements and projections could differ materially from actual results . The factors that could cause such material differences are outlined on slide 37 and are more fully described in our SEC filings .

Speaker #4: I will now turn the call over to Kevin . Thank you . Dan . As Tuesday is Veterans Day , I would like to take this opportunity to thank those who have served in our armed forces , in those currently serving approximately 300 of our Atmos Energy teammates are part of the 18 million Americans who bravely served our country .

Speaker #4: Thank you for your service . Yesterday we reported diluted earnings per share of $7.46 . This marks the 23rd consecutive year of earnings per share growth .

Speaker #4: Fiscal 25 also represents the 41st consecutive year of dividend growth . Our fiscal fiscal year results reflect the focus and dedication of the entire Atmos Energy team and their continued successful execution of our proven strategy of operating safely and reliably while we modernize our natural gas distribution , transmission and storage systems .

Speaker #4: Their exceptional work has us well positioned for fiscal 26 and beyond . During fiscal 25 , we continue to experience solid customer growth , adding approximately 57,000 residential customers with over 44,000 of those new customers located in Texas .

Speaker #4: We also added nearly 3200 commercial customers in 29 industrial customers during fiscal 25 , when these industrial customers are fully operational , they are anticipated to consume approximately four BCF of gas annually .

Speaker #4: This usage is equivalent to adding over 74,000 residential customers on a volumetric basis . Over the last five years , we have added nearly 300,000 residential and commercial customers , and over the last five years , we've added 225 industrial customers with an estimated annual load of 63 BC .

Speaker #4: When fully operational on a volumetric basis . This is equivalent to adding nearly 1.2 million residential customers . This growing natural gas demand from all of our customer classes continues to demonstrate the vital role natural gas has in economic development across our entire service territories .

Speaker #4: According to the Texas Workforce Commission , for the 12 months ending August , the seasonally adjusted number of employee Texans reached 14.35 million .

Speaker #4: Texas again added jobs at a faster rate than in over the last 12 months , growing at a rate of 1.14% in Texas was recently ranked the best state for business for the 21st year in a row by chief executive magazine , according to the North Central Texas Council of Government , the current population estimate for the metroplex is approximately 8.6 million people as of April 2025 , and many analysts predict the metroplex to be the third largest metropolitan area in the US by 2030 .

Speaker #4: The US Census Bureau has the population for Texas at 31.3 million , and it is projected that Texas will reach a population of 32.4 million by 2030 .

Speaker #4: Now turning to Atmos Pipeline , Texas . Our Bethel to Groesbeck project is nearing completion of approximately 55 miles of 36 inch pipeline from our Bethel storage facility to our Groesbeck compressor station .

Speaker #4: This project will provide additional pipeline capacity to transport gas from our Bethel storage facility into the growing DFW metroplex and the Interstate 35 corridor between Waco Temple and Austin .

Speaker #4: This project is anticipated to be in service late this calendar year . Apt's line loop . Phase two project is also nearing completion of approximately 44 miles of 36 inch pipeline .

Speaker #4: This phase of the multi-year project will provide additional pipeline capacity from our line X to the northern areas of the growing DFW metroplex .

Speaker #4: This phase is anticipated to be in service late calendar year 2025 . APT completed our integrity inspection and verification per Texas code for our Bethel Salt Dome Caverns , two and three , and we have begun the integrity inspection of verification work on our Bethel Cavern .

Speaker #4: Number one . This work is expected to continue into late calendar year 2026 . Turning to our updated five year plan through fiscal 2030 .

Speaker #4: Focus continues to be on safety and reliability through system modernization . Being mindful of customer affordability , timely recovery of our costs through our various regulatory mechanisms , and maintaining a strong balance sheet following our robust five year planning process .

Speaker #4: We plan to invest $26 billion with approximately 85% of that planned investment allocated to safety and reliability . This investment will support the continued modernization of our natural gas distribution , transmission and storage systems , and support the growing natural gas demand across our jurisdictions .

Speaker #4: Approximately $21 billion , or 80% of our total planned capital spending , is expected to be incurred in Texas . The five year plan reflects the impact of Texas House Bill 4384 on our earnings .

Speaker #4: As a reminder , House Bill 4003 84 reduces lag in Texas by permitting gas utilities to defer post in-service carrying costs , depreciation and ad valorem taxes associated with Non-eligible rule 8209 capital investments such as customer growth and system expansion with the passage of House Bill 4384 , we will now begin to recover over 95% of our capital spending within six months , and 99% within 12 months .

Speaker #4: We believe the successful execution of our strategy will support earnings per share growth at 6 to 8% from the midpoint of our rebased fiscal 26 EPs guidance .

Speaker #4: Additionally , we intend to grow the dividend in line with earnings per share growth . Now , I'll turn the call over to Chris , who will provide some additional color on fiscal 25 and the fiscal 26 five year plan .

Speaker #4: And I'll return later with some closing comments . Chris .

Speaker #5: Thank you , Kevin , and good morning , everyone . We appreciate you joining us this morning . Before getting into the details of fiscal 26 five year plan , I wanted to share a few highlights from fiscal 25 .

Speaker #5: Kevin mentioned fiscal 25 earnings per share was $7.46 . Included in this amount is $0.12 . Resulting from the adoption of Texas House Bill 4384 .

Speaker #5: Approximately $0.09 was recognized in our distribution business , and the remaining $0.03 is recognized at APT consolidated Capital spending increased to $3.6 billion , 87% dedicated to improving the safety and reliability of our system .

Speaker #5: In fiscal 25 , we replaced over 880 miles of distribution and transmission pipe , and nearly 54,000 service lines and rate base increased by 14% to an estimated $21 billion as of September 30th .

Speaker #5: Consolidated O&M , excluding bad debt expense , is $874 million , came in slightly above the midpoint of our updated guidance for fiscal 25 .

Speaker #5: When spending continued to focus on system monitoring and damage prevention activities . We also experienced higher employee related costs , primarily due to increased headcount to support growth .

Speaker #5: And higher employee training and administrative costs . We had another busy regulatory calendar in fiscal 25 . We implemented $334 million in annualized operating income increases , excluding the amortization of access deferred tax liabilities .

Speaker #5: We also completed general rate cases in Kentucky . Portions of our division and in our West Texas division . Finally , we finished the fiscal year with an equity capitalization of 60% and approximately $4.9 billion of available liquidity , which leaves us well positioned to support our future operations .

Speaker #5: Of this amount , $1.6 billion relates to forward equity proceeds that we have priced through our ATM program . This amount fully satisfies our fiscal 26 equity needs and a portion of our anticipated fiscal 27 equity needs .

Speaker #5: Looking forward , we have initiated our fiscal 26 earnings per share guidance in the range of $8.15 to $8.35 . Because of the impact from Texas House Bill 4384 , we are rebasing our earnings per share guidance beginning this fiscal year from the midpoint of this rebased guidance range .

Speaker #5: We anticipate earnings per share growth of 6 to 8% annually , with anticipated earnings per share in fiscal 2030 to be in the range of $10.80 to $11.20 .

Speaker #5: Additionally , this week , Atmos Energy Board of Directors approved a 168th consecutive quarterly cash dividend with an indicated fiscal 26th annual dividend of $4 .

Speaker #5: A 15% increase over fiscal 25 . This increase reflects a rebasing of the dividend to align with the rebased earnings per share guidance .

Speaker #5: Our updated five year plan assumes that we increase the dividend annually in line with earnings per share growth over the next five years .

Speaker #5: We are planning approximately $26 billion in capital spending , with over 85% of our capital allocated to safety and reliability spending . This level of spending is expected to support 13 to 15% annual rate base growth by the end of fiscal 2030 .

Speaker #5: We anticipate rate base to approximate $42 billion , and in fiscal 26 , we anticipate capital spending will approximate 4.2 billion , approximately 21 billion , or 80% of our five year spending plan is currently allocated to Texas .

Speaker #5: This amount , approximately 15 billion , is planned in our Texas distribution divisions and approximately 6 billion is planned at APT as it continues to focus on gas supply reliability and supply diversification while fortifying its systems to support the growth of its LDC customers .

Speaker #5: As a reminder , our Texas distribution operations have deferral mechanisms to support the recovery of safety related spending . Texas House Bill 4384 applies similar deferral treatment to our remaining capital spending and our Texas distribution business , and to all .

Speaker #5: Of Apt's capital spending . As a result , we will now begin to recover 95% of our capital spending within six months . We anticipate that approximately 60% of the impact of Texas House Bill 4384 will be recognized in our distribution segment over the five year plan .

Speaker #5: From a revenue perspective , we have assumed normal weather market conditions , and modest customer growth in both segments . In fiscal 26 , most our regulatory outcomes are anticipated to come through the execution of our annual regulatory filing process or these filings we are sending existing Rois , capital structures and regulatory features , meaning we are not assuming the approval of new mechanisms or other regulatory features .

Speaker #5: Since the beginning of fiscal 26 , we have made $146 million in annualized operating income increases in our distribution segment . Of this amount , $139 million relates to the implementation of our annual rate review mechanism in Texas regarding O&M .

Speaker #5: We continue to assume 4% annual increases driven by system safety system monitoring and damage prevention activities , and employee costs . And we will continue to evaluate options to accelerate compliance related work as system conditions dictate for other opportunities arise .

Speaker #5: For fiscal 26 , we currently anticipate O&M , excluding bad debt expense , to range from $865 million to $885 million . Finally , this five year plan includes approximately $16 billion in incremental long term financing to support our operations and cash needs , including the expected payment of the corporate Alternative Minimum Tax .

Speaker #5: Beginning in fiscal 27 . We will continue to use a combination of long term debt and equity to preserve the strength of our balance sheet , minimize the cost of financing for our customers , and reduce financing risk .

Speaker #5: And we continue to anticipate meeting all of our equity needs through our ATM program . As a reminder , this incremental financing is included in our earnings per share guidance for fiscal 26 and through the five year plan ending fiscal 23rd .

Speaker #5: Thank you very much for your time this morning . Now I'll turn it back over to Kevin for some closing remarks .

Speaker #4: Thank you Chris . Our operational and financial execution in fiscal 25 has laid the foundation for continued success into into fiscal 26 and beyond .

Speaker #4: Our five year plan supports our ability to meet the safety , reliability , and economic development expectations of our customers . Our communities , and our key stakeholders across the service territory .

Speaker #4: As you've heard me say before , the things that differentiate Atmos Energy are that we operate in diversified and growing communities that are supportive of natural gas and investment in natural gas infrastructure to supply the growing economy and energy needs .

Speaker #4: That 96% of our rate base is situated in six of our eight states that have passed customer choice for all fuels , legislation .

Speaker #4: We operate in regulatory jurisdictions that support the reliability , versatility , abundance and affordability of natural gas and the modernization of our natural gas distribution , transmission and storage systems to provide safe and reliable delivery .

Speaker #4: The strength of our balance sheet and available liquidity . We have a weighted average cost of debt of 4.2% , with an average maturity of 17.5 years , and currently have $4.9 billion in liquidity .

Speaker #4: That our residential customers average monthly natural gas bill is again expected to remain the lowest utility bill in the home . Consistent performance 23 years of consecutive earnings per share growth in 41 consecutive years of dividend growth .

Speaker #4: That all 5500 of us here at Atmos Energy proudly serve our customers and our communities as we continue to be guided by the simple values of our founding chairman , Charles K of honesty , integrity and good moral character , those differentiators will continue to support the vital role we play in every community to safely deliver reliable , efficient natural gas to homes , businesses and industry to fuel our energy needs .

Speaker #4: Now and in the future . We appreciate your time this morning and we'll now open the call for questions .

Speaker #3: At this time . If you would like to ask a question , press star . Then the number one on your telephone keypad .

Speaker #3: To withdraw your question , simply press star one again . We will pause for just a moment to compile the Q&A roster . Your first question comes from the line of Jeremy Tonet with J.P.

Speaker #3: Morgan Securities , LLC . Please go ahead .

Speaker #6: Hey , this is Eli on for Jeremy . Just wanted to start on maybe some of the larger load customers . You guys are seeing across your service territory .

Speaker #6: You know , recognize that the refreshed capital plan , you contemplates a lot of that demand , but can you just talk about and help quantify , you know , what's in the plan and then what could kind of be incremental to that and just bifurcating those two ?

Speaker #6: Thanks .

Speaker #4: Yeah . Again , as Chris said on the front end there , we've got 85% of our our spend is dedicated towards safety and reliability .

Speaker #4: We do have some modest growth included in the plan as well . But again , most of that's going to be focused on safety reliability .

Speaker #4: We do have some additional fortifications that are in that to support that growth , that are long range planning models have indicated we need , because of the folks moving into Texas and the the demand anticipated with them coming in in the load from their use of natural gas and then any , any other thing that will be outside of that will be probably driven by safety , reliability and and anticipated fortifications to handle that additional growth .

Speaker #6: Great . And then , you maybe just talking a little bit about capital recovery . I know that you guys were able to kind of ratchet up the speed there .

Speaker #6: And can you just kind of talk about a little bit more about how you're able to , you know , how how that flows into the plan and you know , optimizes growth going forward .

Speaker #6: Just recognizing that's kind of some of the best capital recovery out there . Thanks .

Speaker #5: Yeah .

Speaker #4: Well , again , we're very blessed with the jurisdictions we serve in . And today recognize and support natural gas . And our need to fuel these communities and meet the needs of all stakeholders .

Speaker #4: Our communities . The state legislative bodies and the overall demand for natural gas . But I'd also say that we haven't sped anything up .

Speaker #4: This is all been part of our planning process since 2011 . 2012 . And identifying the needs of the system , both safety , reliability and growth .

Speaker #4: So this has been on the same cadence year after year . And through our robust planning process , we go out and identify and look at our systems each year for the need , not only for population and demand growth , but also from a safety and reliability need fortification needs .

Speaker #4: So this is all well laid out , well orchestrated through the demand models . The integrity models , the forecasting of population growth , year after year .

Speaker #4: We repeat that same sort of process . And that's what drives the investment . At the end of the day .

Speaker #6: Awesome . Yeah . And then just if I could squeeze in one more . Apologies , but just I think the 2030 implied range is about seven and a half off the 26 midpoint .

Speaker #6: So is it kind of fair to say you guys are targeting the upper half of the kegger ? Thanks .

Speaker #5: Hey , Jeremy , this is Chris . I mean , we talked about a 6 to 8% growth rate off of the rebased guidance range from the midpoint .

Speaker #5: So , you know , that falls in line with that 6 to 8% expectation . And that's that's what we're intending to pursue at this point in time .

Speaker #6: Great . Thanks guys .

Speaker #4: Thank you .

Speaker #3: Your next question comes from the line of Nicholas Campanella with Barclays . Please go ahead .

Speaker #7: Hi. Good morning. Can you guys hear me? Okay.

Speaker #4: We can . Yeah . Good morning .

Speaker #7: Hey . Great . This is Fay for Nick today . And thanks very much for taking my question . Maybe just want to double click on the EPs rebates .

Speaker #7: If I could . Now seeing over 95% of CapEx is recovered within 12 months compared comparing to the previous 90% , would you be able to just parse out how much incremental improvement are you seeing in this refresh plan ?

Speaker #7: Is it mostly coming from the Texas legislation , or is there something else baked into the assumption ? Thanks .

Speaker #4: Yeah , I'll start . And Chris can can add if he wants to . Yeah . As we mentioned in our opening remarks , it's all coming from the House .

Speaker #4: Bill 4384 . Again , our plan is been the same year after year on how we approach the capital budget . It's by identified projects and needs of the system and supporting the growth .

Speaker #4: And this 4384 will now allow us to include Apts investment into its system as well .

Speaker #5: Yeah . And Nick , this is Chris . I'll just remind you , you know , again , on our regulatory , you know , cadence annual filing mechanisms are contemplated throughout the five year plan .

Speaker #5: We have a couple of small general rate cases that we plan to execute this year . But the overall theme there is the is the recoverability .

Speaker #5: And we assume in that five year plan that there is no new regulatory features , no new deferral mechanisms , regulatory asset treatment .

Speaker #5: It's basically we plan it based on what we know and have today .

Speaker #7: Understood . That's very helpful . And if I could just on O&M budgeting for 26 , could you just help clarify on how on how are we getting to a lower assumption for 26 ?

Speaker #7: And how does ramping to a 4% annual increase would involve going deeper into the longer term ? Thanks .

Speaker #5: Yeah , I think that the guidance that we put out there is pretty much the midpoint of the guidance is pretty consistent with where we were this year .

Speaker #5: We had some opportunities in fiscal 25 to spend some additional O&M dollars on compliance related activities . As we saw market conditions at APT materialize , particularly in the late third , fourth quarter .

Speaker #5: So we kind of reset the O and M plan based on what we need to do from a compliance vector , but we want to do from a system monitoring system , damage prevention activities .

Speaker #5: And then as I said , you know , we'll continue to evaluate that O&M throughout the year . And the system conditions dictate or other opportunities arise .

Speaker #5: We'll evaluate options and alternatives to pursue further compliance and safety related spending .

Speaker #7: Great . Thanks for all the colors . Really helpful . I'll leave it there .

Speaker #5: Thank you .

Speaker #3: Your next question comes from the line of Gabriel Moreen with Mizuho . Please go ahead .

Speaker #8: Hey , good morning everyone . So Waha gas prices have been on a bit of a wild ride the last couple of weeks .

Speaker #8: I'm just wondering to what extent you can incorporated some of the deeply negative prices here that we've seen over the last couple of weeks into your guidance for 26 , and maybe what you're assuming for the rest of the year , as far as your Waha outlook .

Speaker #4: Yeah , as we've done with all of our five year plan , we do not incorporate that in we assume normal activity . We continue to monitor and look at that .

Speaker #4: We're still very early into the season right now , just basically just out of October , if you will . So it's something we'll continue to keep our eye on as we move forward .

Speaker #4: But we do not try and use a crystal ball to forecast what's going to happen with that market at all , and we'll continue to keep you updated on our quarterly calls .

Speaker #4: .

Speaker #5: And , you know , to that , you know , all that activity to the extent that it materializes , 35% of that impact flows back to the benefit of our customers .

Speaker #5: So . Well , like Kevin said , we'll keep an eye on it . And and we'll provide updates as we move through the fiscal year .

Speaker #8: Thanks , guys . And then maybe if I could call up , it looks like you raised your long term gas price assumption in the five year outlook .

Speaker #8: Can you just talk about drivers behind that ? If there's anything beyond the forward curve and also was that an impact at all ?

Speaker #8: And maybe slightly moderating your kind of CapEx kegger within the context of kind of how you're viewing customer bills over the medium to long term ?

Speaker #4: Yeah .

Speaker #5: I .

Speaker #4: That's just the forward curve that's out there that we have available to us now . And again , I think if you go back and look at what we projected in that long history on that slide , whether it's page 23 or 24 , there we generally have come in under that .

Speaker #4: So right now that's just a forward looking curve . We're projecting outward on our customer bills . And again I probably point you to the pages 23 through 25 there as we talk about the customer bills and going forward and I'd like to remind everybody that when we look at the household bills overall , that natural or natural gas residential bill is again expected to be the lowest bill in the household going forward into 26 .

Speaker #4: At this point , we continue to remain anywhere between two to almost five times more affordable than our electric counterparts in each of our states .

Speaker #4: And jurisdictions that are out there . And again , there's a slide out there on percent share of wallet for our customers as well .

Speaker #4: And we remain right at or below the natural gas industry average for percent of wallet share . And about 2 to 3 times below the percentage of wallet share on the electric side .

Speaker #4: So I believe we're extremely well positioned right now and always keep affordability at top of mind . That's part of our both short term , mid-term and long term planning process .

Speaker #4: As we look at investments , we always run through what the potential impact may be on our customer base as well . But again , feel like that we are well positioned and mindful of affordability .

Speaker #8: Thanks, Kevin. I appreciate it.

Speaker #4: Thank you .

Speaker #3: Your next question comes from the line of Aditya Gandhi with Wolfe Research. Please go ahead.

Speaker #9: Hi . Good morning . Thank you for taking my questions . Can you hear me ?

Speaker #4: Yes , we can .

Speaker #9: Great . Maybe just starting on Texas H.B. 4384 . Appreciate that you've rebased the 26 range higher . Can you maybe just clarify what the annual impact from the legislation is ?

Speaker #9: Just just roughly is it is it fair to assume that if we analyze the the ten cent impact from , from Q4 , that you mentioned on last quarter's call , $0.40 , is that a reasonable run rate ?

Speaker #5: So did this , Chris . In the rebasing , we assumed the impact of a House bill 4384 . And , you know , from fiscal 25 to 26 , because we would have a full year impact of the House Bill 4384 .

Speaker #5: That's why you're seeing that rebasing going forward . And then after that , it will begin to become a little bit more consistent year over year .

Speaker #5: So again , we factored all that in into our 6 to 8% midpoint of the guidance range . Right now it's right around $8.25 .

Speaker #5: And we will just intend to grow at 6 to 8% off of that .

Speaker #9: Okay . Thank you . And then maybe just touching on the equity you mentioned balanced equity and debt funding . Can you just clarify whether that sort of means 50% of that 16 billion , roughly 50 , 50% of that 16 billion over the course of your five year plan .

Speaker #9: And then just could you give us a rough sense of how much equity you're assuming in 2026 , and how we should think about the cadence of equity beyond 2026 ?

Speaker #5: Right . So looking at the incremental plan over five years , we've got roughly 16 billion that's out there . We are very comfortable with our equity capitalization of approximately 60% as of September 30th .

Speaker #5: We intend to keep our equity capitalization at that level . We think the strength of the balance sheet is important for just financial strength to be able to withstand unexpected events supporting our customers .

Speaker #5: If we need to , in terms of , you know , moving our pgas around as we pass through gas costs . So when you think about capitalization being where it is , it's roughly 5050 split between debt and equity .

Speaker #5: And then by year , you can see generally we are about 50% of our annual cash needs are coming from our from our FFO number , which I think you have .

Speaker #5: And then then you can apply by year in your modeling , you know , 50% roughly for equity , 50% for debt .

Speaker #9: Great . Thank you .

Speaker #3: Your next question comes from the line of Julien Dumoulin-smith with Jefferies . Please go ahead .

Speaker #10: Hi , Tim . This is Mark on for Julien . Can you guys hear me ? Okay .

Speaker #4: We can . Good morning .

Speaker #10: Yeah . Congrats on a strong quarter . I have a if I can quickly come back to the H.B. 4384 benefits . I appreciate the color on the prepared remarks .

Speaker #10: I believe you mentioned 60 . Roughly 60% for distribution , 40% for apt . I'm just thinking , would that 6040 split change meaningfully year over year , just given potentially , you know , different CapEx cadence at each segment each year ?

Speaker #4: No , we do not expect that . Again , our five year planning process has been the same year in and year out .

Speaker #4: Our team does a robust deep dive into the needs of that and has it well laid out year after year . So we're very confident in what we have put out there for the five year plan .

Speaker #10: Got it . Thank you . Another question on the dividend . I mean nicely done on the dividend guide up here . Just given the durability of the , you know , H.B.

Speaker #10: 4384 uplift , is it fair to view this dividend guide up as a long term guide up here ?

Speaker #5: I think in your prepared remarks , we mentioned that , you know , we moved the dividend 15% from 25 to 26 on an indicated basis to basically rebase that dividend in line with the rebased earnings per share guidance .

Speaker #5: And we intend to grow the dividend 6 to 8% over the next five years .

Speaker #10: Got it . Thank you .

Speaker #11: Thank you ,

Speaker #3: Thank . That concludes our question and answer session . I will now turn the call back over to Daniel Meziere for closing remarks .

Speaker #4: We appreciate .

Speaker #12: Your interest in Atmos Energy . And thank you once again for joining us . Have a great day .