Watsco (WSO) 20 Apr 232023 Q1 Earnings call transcript

Good day, and welcome to the Watsco First Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode for the duration of the call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to the Chief Executive Officer, Albert Nahmad. Please go ahead, sir.

everyone. morning, Good the all launch you the see space history the of I minutes got ago, Starlink of the in few or in biggest ship country hope probably to world. space history ship Disclaimer error for or my [inaudible]. quarter welcome first call. In any our earnings event, to Nahmad, CEO; is me and is Al This with A.J. Chairman and Johnston, and Rick Paul President; Nahmad, Gomez. Barry Logan

pursuant harbor laws conference statements as forward-looking of before start, and that laws, may Now regulations has ultimate we safe the the differ call cautionary to are various these materially made by provisions forward-looking statement. SEC the This results defined statement. from

Watsco quarter. especially in Last Now EPS were light first store first same and impressive sales scale year’s an delivered year up exceptional XXX%. of up quarter XX% last was

again. that say me Let

and This sales per last year’s earnings and compares were was XX% to up share year last XXX%. up quarter

$X.XX grew in investments margins around and continued record This progress our to quarter our XX.X% to technology mindset our billion, margins. sales reflect field pricing optimize help price gross in X% up the and leaders

You year's OEM unprecedented first from margins benefited response also in actions pricing last recall inflation. that quarter gross will to

We first to happy of during of actions OEM year with this reduced result the pricing the are given compared last level year. this quarter quarter's

digits income early Operating containment XX.X% was on operating and efficiency $XXX what for SG&A operating progress that at with the increased quarter. was and $X.XX million, X%, remain builds achieve earnings to we reflecting cost gains double in last quarter. in per achieved, sale margins started

as year-over-year January segments but supply in last systems OEMs upcoming selling say seeing they're flow we million new when result over the in the efficiency year. took of problem not year shift chain yet, the I build place of flow, X. versus supply certain quarter we that an standards must inventory are is cash for and higher this product change time per unprecedented chains in improved cost to a the $XX ease are improving. despite all As inventory during the Cash season the

We flow market. the goes in virtually $XX opportunity with All-in-all, to remains of fragmented to debt. expect As us provides inventory invest American improved year sheet North our the strong in build and balance in cash further any This on. flexibility terms almost we a billion progress terms scale continue plus no as very

continue Watsco as building in of we something for love is build invest great That's companies legacies We businesses. legacies. to we acquisitions, technology secure for on provide great We doing sustain and home that a great family to and cultures, look people, their acquire.

the beyond provides trajectory. our that details Short growth Looking term, term support release today Watsco's long press critical

and and These market have advantage. We margin. gains, technologies investing technology attrition, are an supporting we immense are to share reducing engagement, creating that customer increasing advantage, grow

competitive is Watsco's serve in a of broad a say, products most array advantage us to brands competitive I should contractors and that environments. allows

have position stability market growth also provide some to markets bell We rates. leading higher in a and share

repair will standards, more deliver refrigerant made which new historically beyond. XXXX introduction the favors XXXX harder of it for saw replacements. that for important the which play HVAC few standards for in introduction out In next are regulatory XXXX and there federally several efficiency price will demand also benefits mark in the growth to years. has systems and catalysts existing addition, high of and mandated industry will equipment,

company first during outpacing of and pumps higher heat the also at generally continued in of growth rates. our grew heat towards come margins. and higher movement greater We quarter, pumps X% adoption which see overall electrification prices Sales

for Finally, in upgrades efficiency credits the provide we expect tax also ahead. electrification to years Inflation new enhanced Reduction incentives Act and and

opportunities. to would in and us financial capture believe certainly market we scale, our coming catalysts these the strength the share industry and position of All technology benefit the years, new

on answers. go let's and to that With questions

Instructions] [Operator

Our here come Merkel Blair. with William first from question will Ryan

Hey, so you Just trends healthy comment in I guess, question. trying pace. on April? taking off, can guys. this continuing the Good if far things first Thanks pretty are to at morning. for figure out

Well, I'll some provide but let a Barry that. answer an to few days just that's start, --

four big think, as I – pretty all consistent of months the not change. very very really, we rest there's start and It's the of year year. four May and the and where that is the June a third the importantly is is first lot quarter. of for a in the pretty all But the volatility, not consistent critically months I seasonal would been increase quarter say

the of would probably XX% June quarter. be earnings and May the example, of For

in of far, representative like so so inference, an say I you April, read early simply. If give some what of the the rest yet. But more good. not I'll So looks it but it's season

my of Okay, out quarter well, inventory turning I'll I are margin we're at by and that in that. gross then point? was this season the hurt appreciate Yes, profits question profits And your margin, is, really take the not to rolling And off yet. guess, gross year-over-year? inventory

That's accounting Logan. question, a great Mr.

mean, first last first Yes, generally question of been because years. it's anything never career, quarter I quarter it's and year that's Ryan, because couple it's a been timing but of shot normal the for it, take XX But always question a I'll at pricing. my funny the a beyond the

pricing digit. X year double X. they double This So ago, year, not. digit than in had it's is actions and a the price This near less on effective action year January did OEMs March

margin you team, that amount by because heavy algebra and Working years, could two clearly points about quarter with in going and term, technology, for as which lifting development see because it to OEMs, obviously this the our margin. in is margin the in of into now say use So that the clearly that would been offset call term go your XXX cost. saying I margins didn't can all I the down really quarter basis everything the short impact be XXX a some is our there And the of equation. cost cost, wouldn't the year short we've entrepreneurial culture, pricing an last the a culture. the there's - there's a the term

and difference long So yes, can seeing the term. algebraic way. quarter. the impact or for you've term an in between the significant a short it see, the you now benefits there's and two last that's the three term, been Long pretty term, In in short quarters

And will question come Baird. here with Dave our next from Manthey

business say is offset I bit by and on can increased Al. morning, little if OEMs about you Good driving your tight true talk color expenses and investment the unit factors? sales cost Any level? control that the via provide OpEx a for Hey. being was Is you could wondering offsetting here. to marketing it key OpEx operating those selling at

Well, but let me we have explain certainly hope Barry so, that.

timeline a over more Hey, Dave. I like Well, story conceptually look just at the tell just to to again, short term. than things longer

So the last two years, it's remarkable. pretty

cost numbers. business of And business, it's market, That's the long a serve growing bring of I million deal looking might about people, XX%. more the in, million products, to technology, it for in grow environment whatever network think that's the remarkable growing way number. to that two talk been to about And $XX that's up the in say that And term. to customers, more to we've in to economics sell street XXX is we investment -$XX added our headcount be. the part with the we're the that

costs example, saw selling single and cost, again costs quarter a this And and I of be into the surgical went we more the double digits it the with dial some about quarter fixed if variable that made increase the digits. investments variable that And goes in are people for high where quarter. down

of been we and last what to expected, variable years going little costs two on shut the going So those investing, to right? transitory of if of that's the keep We're that investments, a going reduction. cost eases we're would eases, expect off bit we not as some or what's

XXX playing locations just can I've culturally quarter. there's everything ways. last very not a going over in SG&A, impact But just see on said you in So months the different is six in the big out

Yes.

at idea a mean what their investor you Okay. recent that? said they in Do believe by they conference, have And Carrier aftermarket. any they're second, underrepresented that

news never to that. heard that's No, me. I've

think OEMs share that their I OEM now in is something aftermarket increase after. it's all been this looking an for are has and

time as necessarily do more can past. that, parts done Do obviously. the repair than in want to I tradeoff and in they've go we out you how contractor we'll the hand. yes, units motivate the replacement on, so, And two parts? find to think But goes there's a don't hand

Dave.

said, a discussion There's in know editorial I Paul it. this all in I'll pretty that of probably have it's it's is don't development applied significant. to think, add but market share a can I think I commercial to I come I complex guess elusive, sector. business, some feeling And my the answer, machine, parts aftermarket the there. as a element and don't the long commercial term been OEMs know that but for my pretty that's that

Our next will Jeffrey Sprague come Partners. with question Research here Vertical from

Hey, you. Good everyone. morning, thank

You Hope Al. the sound weather, a you're okay. feeling under little

just It's my but thank cold. simple spring have It's asking. weather a spring to for the Every cold, cold. you I

carryover of I little But got right. granular lot volume, mix? of us, little and it's detail We clear bit going could bit you unpack got a price, a mean currents on we change. give of volumes the interplay down, us Yes. the just price, SEER for can that are on revenue got I line. cross Obviously, a right. wondering you the if we new price

Well, get you advantage Rick, of anything than you, say else. to in have things take front little as you I that I jump But in mentioned the anybody a other well. see things, more would to than all positive us let's that and granular us. are and with the we don't want if that. Barry scale Paul of for good

first mean, Sure. Good units Yes, in Jeff. down morning, quarter. are I the

just the double that a pricing give decline. benefit converting is Again, new And quarter into that. quarter. near the And in season, this sense out commercial digits. single two we still digits, up think and we'll second to and of that, mixed well type later commercial We is double a carryover actually that, the a and market tier terms into and some look thing, up into this the of higher years have It's the of industry I very which quarter. as came which if pricing largely systems. in you the far to was OEM half trend. expected more Pricing of have territory, probably digits lag of some digit full as But benefit now is mid-single high is expected you mix

US part that for and our us and one could in think unique speak, too, the as year, it's You a all fourth pricing role I a so northern group, credits a business at lot to If this of which to actions further be the lot business, remarkable on prices. second is change, which is growth, carries to big what The XXXX of a investment, three influence market. asked have of is quarter. us, part centric, up systems this. the the add third new going tax Sun is a and a not a that but effective that higher which to into lot really And is market. growth Al so were it's the There's Belt has Watsco, somewhat of that pump play March are for with market refrigerant things manufacturers I heat the the OEMs, a X, most the territories growing but of catching on new will referencing ductless

this once all-in-all, we the pretty we of of the difficulty is of we're early mind think, I year. optimistic that's get frame have, rest comparable past some Al's about So that

from If credit. in little efficiency lot evidence the tax really I the product high of, with XXC first coming can didn't bit impact a wasn't see quarter. a tax of our tailwinds add lot coming of on credits to in mix the that in for a really the of We the

efficiency through. heat Barry marketplace. So the forward seeing is quarter into of seen and to going as not really pumps that we saying heat the we're And third more then the we And benefit flowed through still high second pumps exactly the yet have of existing that. start of haven't is looking what sell-through the

got QX. we're that some we've QX So good looking at upsides for and

pre that just or kind were happens maybe change clarification you in terms will refrigeration of refrigeration. XXXX Are kind like some a on you of on Or already referring have ‘XX to you that? And saying positive something in impact of buy things else? think the

in. to preparing rule we're No, when comes the

in interested not are We that.

That’s until ‘XX. not late us going to impact

And from Coe our with Research. Wolfe next Nigel question will come

Al. morning, Good

Sorry, soon. I was there. feel on inventory. mute on Quick you better Hope question

So what in much than a build bigger certainly we'd inventory expected.

you factors of magnitude inventory was any to need there that Are wondering, build just I'm intentional? bear So other mind? in

sort. in part one it, would that we get we into we more the have previous We rest system. bad is of still in inventory of get a get going just the of than at issue of inventory as see. system, the it's the so the inventory I'd suggested Well, lingers. would chain the still not It's do that into But and got part is And the I system, calls, I supply inventory have. pipeline market. a into we so that like moment good have problem to at season, eventually we're the to and believe And

beyond I we earlier, and are supply, and inventory, it's good turns, with that that issues the even it today. said where OEMs size pre we'll we having cash right As need. still some I are eventually, and product flow But improves think get

has the to performed well cash As very commentary you flow team? Any our from date. know,

I'll there are they’re you in look looks There inflation actually add And is down. those AJ. year-over-year while dollars, is numbers. This up at that inflation. in just inventory if units,

But are comes a agree we that than just is there it those weighs ideal. what issues and So we But inventory here numbers. pretty with in on I certainly sell shape you should keep was season higher chain good what at to through will, that got. position a said be supply if us,

Yes.

could And came quarter Okay. Obviously, on maybe then the later I Barry, normal. your through in the price go back helpful. than to the That's margin. gross just comments increase

that bit trip will year than be margin to normally? should through XQ the helpful. kind we we mean Any color expect So into higher gross should would little as the guess, we expect be a see does maybe how on I Thanks. to gross then XQ, margin that balance trend of of,

Again, away points don't carried with so we're Yes. it. in speaking here, basis get not percentages,

it's flow the gross away wouldn't But, basis carried analysis. benefit of will benefit quarter with the into that that timing price But profit in of second yes, because of points. there the I the end a the can is increases. get

ahead. go Please

later Sorry, I also it's it's true. usual, than at usual. was The just our least right? yes, going year. last came only business, increase than equipment that, And to on add It's moderate than price or more

tampered thousands the relative last on increases the price we of other The that to all two SKUs have years. sell

That's fair.

second Sorry, more one use XX% a and beyond? clarification. plus you just Do to quarter think for is good number

You mean gross margin?

Yes.

ahead, think. a we question, course, of It's, goodness. my Oh, Hear go Barry.

I didn’t hear.

you the margin? I or said, in gross second said you you quarter I do XX% think in think we'll that. think do better

XX%.

that Oh, sorry. mean Barry? XX%, I'm I I I didn't that. hear right. want to speculate on –

we've ago. of going XX the last six I'm of until impact see that out months can Yes. a said to as target, at XX% the what I'm stick baseline. Nigel, you Obviously, We But, margin? are exceeding year to going XX%, we've stick a especially. everything. to gross been now, about just What to larger seasonal that real said looking business a from as now for We're just first XX% we seasonality. days

and So mind change we when data. we'll let's be our conservative have and more thoughtful,

up set time, last should time, maybe against we well for Last you and did so Barry. XX that you Barry, pretty goal, the raise us Thanks, bar.

Josh will Morgan question from Stanley. next with Our come Pokrzywinski

morning, Good Al.

I in think Just margin any points, But, mentioned follow want of you that the or Obviously, of on impact. there? like XXX more specifically maybe the but better big, Obviously, that out on buying the selling that selling customer gross that side? on basis to on doing side? going keep trying on price, that looks just as better I to see You And the mind doing you forward. should both price. -XXX figure commentary. kind up have factors think the the when selling Do we side everyone's Barry, mentioned you where numbers freight anything other then guess in

that. good trade. Barry, a answer go point brought on you You and ahead

actually line Yes, ago. have cost culturally within comes well, been last variation months that it's two didn't again, And as freight, them have years of what sales the impact. is point are as be a in last pricing OEMs a to of and the giving the that don't the leadership or or Like at over on those to incentivizing costs contributor as of result as gross sales higher would also things profit, impact first the seen. years. a program. last it six from hope a two no couple also, the results working level product. more they to again, no had items great of branch I XXX,XXX parts freight And some over freight of three branch a the But trend, We months, relate last cost years. inner them the -XXX,XXX generically said, shrinkage, basis cost over would point SKUs with tools you've through the margin optimization taking goes going It cost

Josh, will that there's the now, cost, sense. yes, impact it. all variable look consistent, like pretty been only out It's articulating volatility or several And benefit. that Hope the that's out, that things the the I quarters report today. levels been level or So at the be changes it I actions to think, last think, carefully we one not for items. pricing to benefits the pricing but big extent a levels much makes we're the of how other had that there actions had OEM and And a has

to just the with with then repair you why in trying that of expensive kind XXXX see replacement or years, guys before a is of morning I of entering over more two, of operating even three been change, as that of to the better. it normal Monday supply sort more just higher function lot and Got did factors doesn't we that COVID? people was just is I long market strength it, step XXXX put new higher out a guess, mentioned a little ton chain, sense, of all cost this replacement of know just mean but think repair quarterbacking today which the people past to earlier, has more make rates on we it probably especially I I kind sorts But get I And lot of front. uncertainty. a was a certainly figure getting But know that trying units does. on, kind the to off, macro way a that is context are

that. it's any up. scientific on don't not of And a take yet included we I labor yes, a at to labor warranty not know, gone you as is cut has able And calculation. If quantifiably. or probably and being But The can repair cost going up. have data in that is answer

able of hit of definite with price to a a system. were it then than than and a to and not replacement like being world. to longer things they has has warranty replace also some our it covered are timing commodities the side in warranty. it obviously in And also adding are takes to it the that cost it that the compressor or of refrigerant consumers So being other it repair warranty do entire the a do the Warranty a Warranty free is do to a by aren't of is does to past. higher a to cost

fairly into that as explain to find repair now in drive past really lot simplistic I the I and detail dig with we that. as more concepts So does we've go there's very to think that that think things out need far replace deeper what away of versus tried subjective some a the

Stephens. Moll And question from will come Tommy our next with

vis-à-vis that signs a pricing seeing Good year mentioned like industry? the this And emerging competitors, OEMs across this moved the competition? like be not But basis, price morning. the up again do on could pricing you any distributor Appreciate later little taking Al, your you based initiatives. of are a actually think you year you their if for bit questions. on

Barry. good to Tom, going I'm and question it's Paul very two and my go a to guys,

and competition and with price will always customers, competition our still distribution. yes, There this Yes. Regionally be industry among is price among existing there on. the in OEMs certain going

to in aspects about, past. there. very a think it in still, it's we've and the with as It's I it's of other perhaps products the with been significant always as changeover been a the talking be there. been going that probably lot competitive It's industry. hasn't But

sticks noise, their Yes. in they're the of But transition and from regionally one MX we the businesses out, region being yesterday some Paul, signal. I the at I mean, of old agree prices. and our products are that kind products, it's one the thing not that heard northern the product, of lower in to moved new that later

but that'd end not will, an So and a material, the regional, temporary you kind be think, in example a the of of day. I if of

And Right. hopefully transitory.

of they're expensive Right. in replacing. be that now, The this quarter. the Yeah, first MX beginning just that's offering And what whole new would is impact. market more than

That's Right. the big story.

my are stories just noise, point. other The is

be Right. this put that any volumes they've does, across do industry particular, moderated Do Maybe to move this higher pricing or you a fact of finer on given accelerated like in point may feel think the through net-net that year? wide Or industry dynamics just still year these pressured? it. in

anything I us pricing. But and it's we no to than know think advise just Well, we've add? hard it been. moderate comes OEM. has would the I had that hard something we now, in don't to place pricing expect just from action we that a for changes it's you Paul, have, starting, it's but more that's predict, to takes that hope, that

on consumer Yes, April part. agree be start I we our what the mean is, chain, the I seeing a prediction that completely. in seeing making Al normal where think a wild goes dynamic supply weather I start we with would guess until like until and

a that. Just to layer to add

is educationally. this important, think just I

store different selling of sells. thousand Miami than Depot a more at to We're than more that couple Right. a Home have a here sells million $XX That's customers in We prices. equipment. of

as has our known buying has what's has It manufacturers now. Our it. has to at extrapolate well mammoth XX,XXX locations. where we XXX really products we're manage and match pricing to that and customers. technology that equation It not to is it And customers margin sell science and in thinking different Miami. from the granular market, And now customization, prices to many across it variability. our and around competitive to is that customers math closely let's pricing It's markets a

I'll to lot there's in can how a OEM immense it place manage how news a again, there's no or be years now doing what ago. to the it we of might is, in or and say good third that that market time is have of strategy that, that in this at behaving. So is that, technology didn't prosecute equation fluidity fluid. an margin, way a very look manage matter all to two another local call, three And in to points we two It's is

ask or I just of up repeat could in the just this this one But to say net construct market you'll industry If think? the somewhere starting context. significant presume share. on down, share year, volumes year. even the Appreciate again that the years, again, to plan let's volumes you've recent you mid-single that on flat could I from Watsco in digits taken do year,

in You mean in or units dollars?

In units.

hope would certainly I so.

a Given shot. it’s always good

increase just isn't That set in never a in the a DNA. not Watsco market share that's goal year. We've something to

demand. to do, weather creates the to here. environment. are Hot environment there weather, is I hot The going referring going demand heat we have want he's grows think demand. that the to get if variables And you that grows because to it to doesn't matter the be we're what

split the think looking pumps type splits versus heat for Well, year Not the what looking is this at versus but segments. market in straight also, just into different ductless we're market systems, share spicing at in cool market mini product. share the at I looking

a got pump it's the become and more product have ductless obviously at think markets important than the the going longest is the the future. we're at longest here, we product. markets That and that the in looked more looking to to heat And in complicated that legs equation going past. probably be I also So we've it's think

Appreciate I’ll it the insight, back. turn

in Dimension, of think I that's products. those right, correct terms share, of statement

KeyBanc from And Jeff Capital our here come question next with will Hammond Markets.

Hey, pretty within This where chain any morning. issue. areas on lead close is to the are guys, like here, It for resi seems is normal just Mitch there's wondering residential supply times Moore good was but equipment where I if still Jeff. an for

not going we it, identify to We're Yes. but have.

in with issues We are equipment the And itself. places about Yes, and still. overcoming equipment we more different issue No have an still shortages different serious brands. the are of it. question

Okay, that's I wondering on a what's inventory, of helpful. this of And source then just realistic year? from kind maybe inventory cash was

like? because What another to But before mentioned see and is supply it. got we And will I cash what better goal chain that be freer that the to improve obviously as sell I better going think happen? Or million but, what technology yes, prepared our has because a is. just we like churn. would do happens. for it get I'd we'll of improves, now matched, of right $XXX can our the flow, will be out we're we improve our inventory our to churn equipment various That's that so matched lot what isn't

it's a not projection. a a goal, So number. I gave It's you

Our Patrick from with here JPMorgan. come Baumann will next question

I feel Al. it morning, you going? Good hope How's better.

Yes, it's cold. Thank though. a just you,

that's release, a more one, But quick had rates. to I volumes the Maybe a actually. few, Good. a run comment? that meant that you In question. what was conventional press Barry are by mentioned unit adjusting

able do Paul. And come hope to be suggest soon. visit and Barry We you want always us. to, you'll going I to have visit. come that Patrick, Are you guys you that may

Yes, down We'll be coming we there are. soon.

will. We

for Thank you that.

Well, guys. that. Okay, answer

the of three I industry right to closer last the growth. mean, around Patrick, if growth Yes, unit you is X%-X% look years. the at of years data, X% It's been two XX-XX or rate

is that rate last so realignment some point. is few adjustment obviously, what going And growth towards longer at I some that really term quarters. on, And probably the see think the we'll is comment the

last been year so just obviously we not short that has the the kind reset. And to cards it's be taking of think it's now meant tell place. but of will term, for the in It's part growth reset a probably you what unit

that HVAC was And sense. of parse then or stuff there's volume what that through whether out kind or Can little products quarter talk of talk if there? about curious decline price first on it's a seeing a sales. subset Makes just I within it. in you of could know sales. you're bit, gears want The but you the however lot switching to modest, you

curious talk of if that subset. about Just kind you could

didn't I your hear Patrick, question.

Yes.

talk equipment product of sales. about subset little Not the want product the a to Just bit sales. HVAC side,

volume or the in So it down or quarter. about, specific whether price X% product you was Anything could categories. it's talk

However, what's in that going you can talk segment. on to

It's different to parts from about replacement duct refrigerant copper lines, XX anything X,XXX vendors, on. tubing about and product so to and to tape

great thing. on a same I basket any store sales one plus, XX% year think, ago. year no ago It's a So again, inference a where

that's So later a I very a of tough reality a comparable. year think just

stable. just participate we we business XX%, that months about not involved year. as We're Also, That's heating air helping do. what of be Patrick, know, remember And sometimes. to what continue where it's in XX- the We much sort construction. with market. a that's not pretty maybe of going conditioning I nice support. it's a the don't business operating in new and much in to, that We're It's very about, stable XX% as

with the products, Sometimes faster we And essential. than businesses say, it's a stable. something HVAC it's that, that shall but and millions it and just of using goes others, little are homes millions

going got homes. economic You to be that a you got cool large And effective extent. not heat that's trends homes, to with to to

terms is we if of can interest we on product. too get in financing things help think also inflation the rates and where Now, expensive

with the have consumer help And contractor products. the financing designed probably with we consumer these on we financing help technology are so the focused helping leading industry that to

Thanks you just about talk the know could about I the last that pipeline. And give that back on Maybe you M&A expectations. a uncertainty for space any are the you could color. Maybe feeling one M&A days, that. color then Understood. on is market how seller guys bit. holds don't these

come the that kind think We're the a our We And strategic that We'll be that on want We in point. term, like our different private M&A. equity I of acquisitions. Will of legacies for buyer expand make of industry. that's unique for entered created that to a out don't will there. see. our distributors building selling footprint remember, position. to mean now. is to equity. is go? that we going know competitors way always have as from a for as people active yes, private I the of Well, a X,XXX we're not equity culture over to We're equity throughout and going best in North It to doesn't active in very it. it. reputation I think Private America. impact there higher in are the But to going change doesn’t rates always But we're us active business. say our be are we're private And don't think I long

concludes our question-and-answer back remarks. like any to turn for to closing And that the Nahmad conference session. I would Albert over

having And another Thanks, look job. now. we a you of the And forward good in these to this at our calls interest Joe, our one end Bye-bye of for for thank quarter. listeners company. all

you now The very now disconnect conference concluded. your for And has today's lines. may much attending presentation. you Thank