Good day and thank you for standing by. Welcome to the Quarter 3 2023 Upbound Group Incorporated Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would like to now hand the conference over to your first speaker today, Brendan Metrano.

Good morning, and thank you all for joining us to discuss the company's results for the third quarter of 2023. We issued our earnings release before the market opened today, and the release and all related materials, including a link to the live webcast are available on our website at investor.upbound.com. On the call today from Upbound Group, we have Mitch Fadel, our CEO; and Fahmi Karam, our CFO. As a reminder, some of the statements provided on this call are forward-looking and are subject to factors that could cause actual results to different materially from our expectations. These factors are described in our earnings release as well as in the company's SEC filings. Upbound Group undertakes no obligation to publicly update or revise any forward-looking statements except as required by law. This call will also include references to non-GAAP financial measures, and our discussion of comparable performance will generally refer to non-GAAP results. Please refer to our third quarter earnings release, which can be found on our website for a description of the non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures. With that, I will turn the call over to Mitch.

Thank you, Brendan, and welcome everyone to the call this morning. We are pleased to report another strong quarter for the company, which generated financial results at the high end of our financial outlook. Non-GAAP diluted earnings per share was $0.79 compared to guidance of $0.70 to $0.80 and revenues of $979 million and adjusted EBITDA of $106 million. We are encouraged to see our businesses are on track to meet key operating objectives for the year despite the continuing challenging external conditions. We again delivered sequential improvement in top line trends, lower overall loss rates year-over-year and strong margins due to stable customer payment behavior in the third quarter. Considering the third quarter strong financial results, the positive trends we're seeing in the business and the resilient underlying fundamentals of the leased-owned model, our outlook for 2023 has continued to improve. Accordingly, we increased the midpoint of our 2023 financial targets, which Fahmi will discuss in more detail in a few minutes. Before reviewing our third quarter results, given ongoing headwinds across consumer credit, I think it's worthwhile to offer some perspective on the state of the non-prime consumer who we believe we know well based on Rent-A-Center's 50 years of operating history in this market. The fact that we've been successful for over 50 years speaks to the durability of the leased-owned model and its relative stability within disruptive economic environments. We attribute this countercyclical aspect to a few factors. First, our lease solutions have a strong value position for consumers with credit and liquidity constraints, who otherwise may not be able to access important durable goods like furniture and appliances and tires and big-ticket electronics. So it's not surprising that they will often reprioritize budgets to stay on lease with us as long as possible, especially given…

Thank you, Mitch, and good morning everyone. I'll start today with the review of the third quarter results and then discuss our updated fiscal year 2023 guidance, after which we will take questions. Beginning on Page 6 of the presentation. Consolidated revenue for the third quarter was down 4.4% year-over-year with Acima down 5.8% and Rent-A-Center down 4.2%. Rentals and fees revenues were down 2.7%, reflecting lower portfolio values for both businesses during the third quarter of this year. Merchandise sales revenues decreased 13.6% due to fewer customers electing earlier payout options. The dollar decrease in revenue was fairly evenly split between rentals and fees revenue and merchandise sales revenue. Consolidated gross margin was 50.8% and increased 140 basis points year-over-year with improvement in the Acima segment partially offset by lower margins in the Rent-A-Center segment. Consolidated operating expenses, excluding skip/stolen losses and depreciation and amortization were up low single digits with a low single digit decrease in store labor and other store expenses more than offset by higher general and administrative costs as a result of certain corporate investments and incentive-based compensation tied to company performance. Ongoing enhancements to underwriting and account management drove a 50 basis point year-over-year reduction and consolidated skip/stolen loss rate to 7%. On a sequential basis, consolidated loss rate increased 10 basis points due to seasonality and a modest uptick in the Acima segment, notably the legacy Acceptance Now business. Putting the pieces together, consolidated adjusted EBITDA of $106 million decreased 7.8% year-over-year on lower Rent-A-Center segment EBITDA and higher corporate costs partially offset by higher Acima segment EBITDA. Adjusted EBITDA margin of 10.8% was down approximately 40 basis points compared to the prior year period with approximately 270 basis points of margin expansion for Acima more than offset by approximately 120 basis points…

[Operator Instructions] Our first question today comes from the line of Bobby Griffin with Raymond James.

I guess, congrats on some of the inflection points here on GMV with Acima and some of the success that it's starting to show up. I guess my first question is just a little bit more kind of multi-year or just higher level. We've always been trained to look at the trailing portfolio balances in these businesses to help guide us to next year or the future revenue and things like that. And I know we don't want to give 2024 guidance, but with this earning season, we've seen some more cautious commentary about 2024. So just when you guys sit here today and help us tune up our models, how do you think the portfolio balances in both of your key segments set 2024 up? And my second question, I'll just go ahead and ask now, has the dynamic around 90-day buyouts been an over-earning aspect this year, or has it just been more of things normalizing where we don't need to be overly concerned that we have to make a counter adjustment next year?

I'll start and then Fahmi can add in. As far as the portfolio, yes, we don't want to get into 2024 right now, but the comments we did make, like if you look at the 2 segments, we're going to starting with Acima be positive GMV for the first time. Well, as we said, September and October positive GMV for the first time in a couple of years. And as we think about the fourth quarter being positive, we roll into 2024 with momentum from a GMV standpoint growth wise, we wouldn't expect that to start going the other way at the beginning of 2024. And then Rent-A-Center, we said the portfolio, it's made progress all year. It's best level in a couple of years now where it's only down 2.7% compared to last year, which was a 200 basis point improvement. If we're not flat, we're going to be real close to flat at the end of the quarter, we sit flat to down low single digits for the portfolio. So you think about that, that momentum in the Rent-A-Center business and that being a flat portfolio or even if it's a whatever low single digits, say minus 1% or something very small going into the next year with momentum. So I think both segments have the positive momentum that we've had all year in reducing the negative numbers that it is turning positive in the Acima in the fourth quarter. We believe it'll turn positive Acima in the fourth quarter as evidence in September and October and then Rent-A-Center being real close to flatten portfolio going into next year. So some positive momentum in both of them. And then the second part of your question on the 90-day, the earliest payout options on the Acima side or even the Rent-A-Center side, but I think you're particularly talking about the Acima side, we're back to pre-pandemic levels. So we think this is normal. It's not a new normal, it's actually just back to the normal from the elevated levels of the stimulus drove in 2020 and 2021. So I don't think you have to factor in anything different because they're just back to pre-pandemic levels.

Yes, Mitch, I definitely agree with the commentary around 2024. I do think we'll end the year on a really strong note from a portfolio standpoint on both of the businesses. We will have some tough comps on Acima side going into next year from a margin standpoint. We are reaching 16%, 17% EBITDA margins in the second quarter was something we've said is probably not sustainable at those levels, but very happy with where we are from a GMV standpoint as it trended up really throughout the quarter. And as we commented showing growth in October as well. So from a 2024 standpoint, still feel like we'll be able to grow both revenue and EBITDA at both segments.

And it's for Fahmi, is that partly a function usually flattish to maybe even slightly up portfolio, you'd have some OpEx expense that could hurt or kind of hinder a little of the growth. Is the confidence in the growth just partly a function that you've been able to scale the organization's cost structure to be able to flow through EBITDA growth on a more flattish portfolio to start the year?

Yes, I think we'll definitely be more efficient as we find synergies between the 2 segments I do think though we are prioritizing putting investment back into the business to make it more consumer and merchant-friendly. So we will spend money where it's appropriate to support the growth. But generally speaking, we're very focused on making the operations more efficient. And you'll see that with Acima as we continue to grow revenues, you'll see some of that operating leverage really play out just given the virtual nature of the business.

And I think the other one to add to that, when you think about margins is the losses on the Rent-A-Center side have come down all year. So early in the year, we'll have some positive loss comparisons on the Rent-A-Center side from where they were earlier in the year as they've inched their way down. And then on the Acima side, even though they've been in line all year on the virtual business, as we convert the legacy Acceptance Now business, the Fahmi was talking about as prepared comments as we convert that, then we have some tailwind from a comp standpoint on losses on the Acima business relative to the legacy business.

Our next question comes from Brad Thomas with Key Bank Capital Markets.

A couple questions if I could, first wanted to start just with the GMV outlook on the Acima side, and was wondering if you could just give us a little bit more color on some of the growth drivers here in the composition, just as we think about the trend in the number of doors and partners you have, what's going on with the average customer balance for new leases number of items that that are being rented and any color on kind of the product segments or channels? Just again, a little more color on how things are evolving there maybe to start.

Primarily the growth, the improvement in GMV on the Acima side has been -- there's 3 or 4 reasons for it. Growing merchants that's probably #1 and more coming out of our marketplace and Acima.com is another one. And sometimes it's not just growing merchants, but as we mentioned, enhancing our position with merchants. There may have a couple of different lease stones in their store, but if you prove to be their best option and get in a #1 position versus a #2 position that helps. And then the diversity of categories as furniture continues to struggle year-over-year per door, we're making nice inroads in the wheel and tire business and the auto space. That's been a lot of the merchant growth as well. And those aren't down year-over-year. Those are actually up year-over-year when you think about door productivity. Same with jewelry. We're adding merchants plus the door productivity per store is not down like it is in furniture. So all those things are making up for retail furniture on a per door basis being down for us. But growing merchants diversifying the categories, enhanced positions with some merchants and then the marketplace, the direct to the consumer stuff is working really well too.

Yes, if could just add on to that a little bit as far as the GMV trajectory, really saw inside the quarter growth from July and August into September, and I think we've mentioned it on our prepared remarks around September being the first month of year-over-year growth since December of 2021 on the Acima side. So really strong performance for everything that Mitch said applications were up, our conversion rates were up slightly year-over-year. Average ticket size has come down, which was a little bit of a headwind to GMV, but Q1 or Q2 was better than Q1, Q3 was better than Q2 and Q4 should be better than Q3. So a lot of momentum around GMV and its gross prospects.

Which I think just adding on one more thing to that, Brad, if you think about the furniture pull forward being probably the biggest headwind that we have in household durable goods a little bit in appliances and electronics, but it's primarily furniture with all that pull forward from the stimulus money in 2020 and 2021, that as things normalize and I don't think they're going to normalize in the next 90 days or anything like that when it comes to that furniture pull forward. But if you think about adding the merchants that we're adding, doing more on our marketplace, we mentioned in our prepared comments some good regional wins. We don't have a national one that to talk about just yet, but we've some good regional wins take which basically means taking share from our competition. And when you add all that together and then furniture does improve, presuming 2024, maybe it's not normal, but 2024 is better than 2023. And I think when we talk to our furniture partners, 2025 will be better than '24 and probably '26 will be better than '25, and maybe you level off, then it's going to take another couple of years. But if we're already positive for other reasons from a growth standpoint, we're in really great position for when the furniture per door productivity comes back.

We would agree. Certainly all the data we have is that furniture's trending at below normal trends in the United States right now. So a reason for optimism longer term. On the Rent-A-Center side, Mitch, just as we look at some of your competitors, I mean, it does look like your results have been well lower year-over-year significantly better than competitors. Can you maybe talk about what you're doing to maybe take share and maybe how the weekly value proposition may be more compelling if it is in this current environment than what some of your competitors offer?

Yes, I think Rent-A-Center has performed pretty well improve the negative theme to our sales each quarter. And as we mentioned deliveries year-over-year being only 2% off if you compare them to traditional retail and half of the Rent-A-Center business is furniture too. So only being 2% off, we feel pretty good about and that improved as the quarter went on as well as July, August and September. So yes, I think we're just sticking with you are focusing on execution. The e-commerce, as I mentioned has been really strong. We continue to grow it. When you think about e-commerce, 25% this year, roughly, versus 23 last year growing when and then '22 was better than '21 and so forth. So even post-pandemic, continuing to grow the e-commerce with the extended aisle stuff that's on there as I mentioned, and just really focusing on execution, we haven't changed our model. We're still in the communities with all of our stores, a steady store count, not moving them all over the place and doing things like that. We're just steadily focusing on the customer, being there for them in a traditional way, expanding the offerings form certainly, but really focus on execution and sticking with our core model.

Our next question comes from Jason Haas with Bank of America.

I'm curious if you think you're seeing more trade down now than you were earlier in the year. And I know it's hard to guess, but do you expect to see more trade down going forward?

It is hard. It is hard to say. We can look at vantage scores and stuff like that and see a little bit of it, but that's not the only indicator, right? When you think about trade down, we de definitely think it is part of what's happening. Don't know that it is -- yes, I think I'd say it's been pretty modest. All the data we're looking at, we think we could get more in 2024 as credit tightens and it's possible that it goes up from here. We don't have that forecasted or anything. It would be a positive tailwind and upside, but it's been pretty modest. But I think it's definitely there. I can't say, Jason, that there's more today than there was 30 days ago, 60 days ago, 90 days ago or even earlier in the year. It's just really hard to say. But on the other hand, when you think about what I was just mentioning to Brad, when deliveries at Rent-A-Center are down 2% year-over-year, and half their business is furniture. And when you look at, we talked to our big furniture partners that we have on the Acima side and even suppliers big names like Ashley Furniture and so forth. I mean, it's down a lot more than that, right? Furniture. So is that because of trade down? It's got to be part of it. The team's executing really well, but they probably need a little help besides execution. And I think there's probably some trade down in there. Maybe it's more than we think. It is just really, really hard to say. There's definitely some there and it could accelerate as we go forward. I don't know if anybody wants to hear it, but if unemployment goes up a little bit, it probably even accelerates. If unemployment gets worse in the country in 2024, it may even accelerate if there's even more tightening above us.

And then how about the impact from student loans? I know we're pretty early into that, but I'm curious if you've started to see any discernible impact from those on loss rates or anything in the business that seems to be related to those repayments starting?

No, we haven't. We've been watching it and looking at it, trying to see if there's any differences. Same thing we get asked the question sometimes about the Snap program and so forth, but nothing discernible that we can tell at this point.

Yes one of the things that we have started to notice a little bit and again, very early on but on the frontend folks that have student loans have started to convert a little bit less now than where they were kind of before the it turned back on. So nothing in our lawsuit, nothing in our delinquencies, but we have seen some of it come in from the frontend on the underwriting side.

Our next question comes from Vincent Caintic of Stephens.

First one on the components of GMV. So nice to see the sequential improvement in that. And I'm just wondering if you could talk about the components in terms of underlying demand. It sounds like maybe that stabilized is starting to improve but then you talked about tighter underwriting. So maybe that dynamic slows it down a bit, but if you could talk about that. And then on Acima specifically nice to hear the guide for positive GMV in the fourth quarter. Just wondering when I compare that to Rent-A-Center, if that growth in Acima is from same-store sales differences, or if, because you're adding more merchants that you're able to offset maybe what might be similar same-store-sales performance between Acima and Rent-A-Center?

Sure. Vincent, let me start and then Fahmi can weigh in. I'll take the last part of that first. Yes, I think that is the difference where Acima has growth in merchants, growth in the marketplace and Rent-A-Center does 2 on rentacenter.com, but more growth in the marketplace and just growing the merchants and growth, when you think about it from a same-store-sales standpoint, it's probably positive and we don't really look at that way, but just knowing the numbers, I do look at the verticals like auto, the wheel and tire verticals probably on the same-store basis are flat to positive. Of course, furniture's down, like we're talking about appliances probably down a little bit as well but I think from a same-store-sales standpoint, it would. From Acima, it would depend on the vertical. Some would be positive and some wouldn't be like furniture as I mentioned. But the growth is really -- the difference between Acima and Rent-A-Center is we're adding merchants everyday really. On the Acima front, I mentioned a few good regional winds where it's adding some GMV and taking market share. I think Rent-A-Center's probably taking a little market share too when you compare the numbers, but I think Acima adding merchants every day is probably why they'll hit positive. They're hitting positive first, even though you see the improvement in both segments, they'll hit a positive inflection point first, even with the tighter underwriting. And as we mentioned, Vincent, and as you know, when it comes to underwriting, when you say tighter overall, I'd agree with that. I would say we're tighter today than were yesterday overall. On the other hand, we do look for pockets performing partners and performing risk bins that you can dig deeper in and take more risk in. So it's not like a carte blanche, just tighten everything certain people, certain scores, the certain people, what they look like when they come into the decision engine, depending on their scores and other attributes, we dig deeper when we can, so that helps too.

Yes. Vincent, I think the Mitch's answer for the second part of your question, it really applies to the first part as well, just from a standpoint of demand per location is probably down, but given we're adding more locations, that's why I mentioned the applications were up year-over-year. And then as far as the tightening that we mentioned in the prepared remarks, we really isolated it to our legacy Acceptance Now business, you've heard us talk a lot about synergies between the 2 major segments. And I think one of the biggest components of that is on the underwriting side and making sure that our underwriting capabilities at Acima, we apply on different parts of the business and the legacy Acceptance Now business rolls into the Acima segment but they are on 2 different underwriting systems today. We've started converting them earlier this quarter and we'll continue to do that throughout this year and the first part of next year to get the underwriting platforms consistent on the Acima consolidated business segment. And we did have to tighten there. And so you've seen that impact in our loss rates this quarter, a little bit, 40 basis points up year-over-year. You'll see that again in the fourth quarter as you cut revenue before you start seeing the impact on the loss dollars but as soon as that gets converted over, I think you'll start seeing a trend much more in line with the Acima segment and Acima virtual business.

Yes, and that's a tailwind in the next year. Anything about the virtual business being between 6 and 8 and we've been more like 9. If you look over the last 4 quarters, 9 and 9.5 because of the legacy business adding into that. So once that legacy business runs through there, certainly the latter half of next year at least, and then you're at 6 to 8, that's a nice tailwind for next year.

Our next question comes from the line of Kyle Joseph with Jefferies.

Thanks for taking my questions. Most of them have been answered, but on Genesis or sorry, Concora, just remind us timing in terms of when you anticipate that needing to flow through our models and how exactly that's going to flow through the P&L and which segment it flows through and how it impacts and when it should start impacting the consolidated P&L?

Yes, we're really excited about the prospects of the partnership. We're still in test mode and rolling it out in a few stores, but really positive discussions with our both our small and medium-sized businesses as well as our bigger regional players. So the ones that don't have a second look provider are excited about having a second look provider at their locations for their customers. And the ones that do today really like the benefit of having one vendor that has 2 products. And so really excited about the prospects of it. We'll look to roll out really in scale beginning of the year in 2024 on both the general-purpose credit card as well as the second look retail private label credit card. We'll give you more guidance into 2024 probably next quarter, but it will take some time to really ramp up for it to be a material number in the P&L. So I would look forward in the second half of next year, but we'll give you more of that specific guidance in the numbers as we get into looking into 2024. As far as where it will hit, the majority of it will come through the Acima segment. The Rent-A-Center segment will benefit from some of the general-purpose credit card, but all of the private label credit card on the retail side will come through the Acima segment.

Our next question comes from John Rowan with Janney Montgomery Scott.

Just one quick question for me, and I apologize if you covered this earlier. I had to hop off for a second, but I believe that you guys said that there was a slight reduction in credit quality of applicants for the quarter, and I'm just trying to remember if that foots or it doesn't foot with prior comments about the quality of applicants coming in at the top of the funnel indicating whether or not there was a trade down, because if I'm remembering correctly that was part of the call there that were seeing better front applicants at the top of the funnel. And so we do believe we're seeing trade down. Can you just help me understand the comments today versus prior comments?

So the comment around weaker profiles was really related to the Acceptance Now business and seeing some of that softness that we mentioned previously on and isolated to those retailers and those merchants really around the furniture side. But generally speaking, if you look at our third-party scores, they're still elevated year-over-year. Mitch mentioned it earlier in the call, but we did see a run-up in those third-party scores at the beginning of the year. It's probably, I would say stabilized over the last few months. But the consumer is very resilient. They're still under pressure. Inflation is still very high. The discretionary spending is still very limited and tough out there. But generally speaking, at the top of the funnel, we're seeing better scores and hopefully that continues as people above us continue to tighten. It could be a nice tailwind for us in 2024. It's not in any of our guidance that we've given to date but could be out there for us if it continues to come in at the top end of our apps.

And just a little more color on what Fahmi was just explaining where that's the, we are referring to the legacy Acceptance Now business a little weaker coming in, and it's mostly because more of the business with those retailers is coming from e-comm and they're doing a lot more furniture. A couple of them are doing a lot more furniture online, getting the orders generated online and we're seeing some weakness in the customer coming through there. And one of the reasons we're hurrying, and by early next year, we'll have everybody converted over the Acima platform is because it does a better job from an e-comm standpoint. You haven't heard us talking over the years about the legacy business that we want to get it to a different underwriting level quite as much as you've heard it today, but it's really because that e-comm business is growing over there and we're excited about the benefit by getting it over to the Acima side because it can do a better job identifying the risk in those people. So that's really what it was all about, just seeing outside and really one level down from the A Now legacy business is the e-comm is, where the weaker stuff's coming through. And we'll have that over on the Acima side and some of our partners by the end of this year, but all of them by early next year.

Our next question comes from Alex Fuhrman with Craig-Hallum Capital Group.

Hey guys, just quickly for me, there's been a lot of talk about trade down in terms of credit. Curious if you're seeing your customers trading down just in terms of what they're buying in your stores and with your partners on the Acima side as well. Are you starting to see people making smaller purchases or gravitating away from name brands at all?

No, we really aren't. We're not really seeing that. You're are getting here a little more about that probably at retail than when you think about small weekly payments that a lease offers or monthly payments for that matter. But when you think about a 55-inch TV at Rent-A-Center being $20 a week and the 75-inch TV being $26 a week, and those are close, so those aren't exact numbers, but $6 difference a week, you won't see much trade down. Now maybe a retailer that one of the TVs is a $1,000 and the other one's $500, they'll see trade down. But when you have the low weekly payments, you can return at any time. So if you get in over your head, you could in fact not just return it, you could switch to the smaller one. If you need the $20 TV instead of the $26 one, you could exchange it for the smaller ones. So there's not much reason for trade down with our lower weekly payments as compared to traditional retail.

Our next question is comes from Carla Casella with JP Morgan.

You gave some guidance on free cash flow. Can you just talk about some of the components of the working capital or specifically more the merchandise purchases that you'll have to make much of that? Is that driving the full difference in your free cash flow? And how should we think about that as we roll into '24?

It's a little bit hard to hear you, but I think it was a free cash flow question. And yes, we did end up lowering our guidance for the year slightly this quarter compared to last quarter, but very much in line with where were earlier in the year. And I think it's a positive story from a standpoint of GMV has come in higher than what we had initially thought and ramping up nicely in the fourth quarter. And same with the Rent-A-Center side of the business of replenishing that inventory for the holiday push. And so we expect that to continue to be a draw on free cash flow next year as well as we look into continuing to grow on both of the segments. So coming off of 2022 with a heavy free cash flow year coming in with that year with a really big portfolio, with comps down at Acima at 20% we were able to generate a lot of free cash flow in 2022. Still very strong in 2023 but we're starting to see that growth in the second half of the year that we kind of predicted and that should continue into 2024 so we'll get to more of a normalized level this year and then into growth mode into next year. So expectation is that it will continue to be very strong but probably a little bit less than '24 than we had in '23.

And then the active merchant locations, you mentioned you continue to add a different additional locations. Have you said the percentage growth overall you see in those in fourth quarter or next year?

We're up low single digits on the quarter and that's been pretty consistent over the last couple. And so I would say outside of us winning a big national account or enterprise account, I would expect that kind of percentage to continue quarter over quarter.

Yes. Low to mid-single digit growth in merchants. And again, I mentioned it earlier, Carla, not just growth is what we're all about and that's important, but also you got merchants that you're in now that you can enhance your position by having the best alternative for the customer. I don't mean best alternative price wise, but the easiest transaction to make on the website, things like that. So if you have the less friction than maybe the one of the other ones they're using in that store, you can enhance your position and so forth. So we're focused on continuing to grow that low to mid-single digits with the small mid-size players, but also enhance our position within each one we're in, as well as obviously we've got a whole team working on larger national accounts that have such a long sales cycle to them.

And have you said how many are you exclusive in?

No, we don't. The big ones we're in, most of the big ones we're in, we are exclusive but no, we don't disclose that number. It's not the easiest number to get, when you think about having over 30,000 small and mid-size stores out there where the Acima products in there but we look at it and we know we're improving it because we're seeing our position enhanced in a lot of cases, but we don't disclose the exact number or anything. It is a focus of ours. We do push the sales team to ask for exclusivity. And if we can't get exclusivity, how do we get first look instead of our existing merchants. So it is a focus of ours and that's the enhanced position has gone. That focus has helped a lot.

Exactly.

I'm showing no further questions at this time, so I would like to now turn it back to Mitch Fadel, CEO for closing remarks.

Well, thank you and thank you everyone for joining us today. We appreciate your time as you look at look at the quarter and our guidance going forward. Another good quarter. I want to thank you for your support, but also thank all of our employees all the way from our executives and the people like Anthony and Tyler that are running these segments very successfully right now, all the way to every employee in the company. We're executing, of course not a 100% because we never do, but we're executing at a high level and we'll just keep that going. Thank you, everyone.

Thank you for participation in today's conference. This does conclude the program and you may now disconnect.