MarineMax (HZO) 25 Jul 242024 Q3 Earnings call transcript

Good morning. Welcome to the MarineMax Fiscal 2024 Third Quarter Conference Call. Today's call is being recorded. [Operator Instructions] At this time, I would like to turn the call over to Scott Solomon of the company's Investor Relations firm, Sharon Merrill Advisors. Please go ahead, sir.

you us. thank and morning, for joining Good Hosting Chief the Executive are Brett company's President and McGill, MarineMax's Officer; Financial today's Officer. call Chief and Mike McLamb, discussing Brett operating call begin by will highlights. the MarineMax's to the financial then be Mike will take results, questions. review your management and will happy I'll release presentation that, earnings call over found at can The the be to and investor.marinemax.com. With supplemental turn Mike.

limited are everyone, start to forward-looking materially statements joining uncertainties seasonality this risks other actual of of opportunities expectations. like factors to identified ability by Thank conditions cause and the share, you weather, Litigation for results is our the could earnings let its most our the global directly on over non-GAAP for a as capitalize measures metrics the changes referring wish numerous other that other to Private you, statements GAAP the on We these today. company's we and today's turn for Securities XX-K will also and helps reconciliation call. Reform in the XXXX. or statements you non-GAAP quarter. spending, operating with differ investors only measures to comments overview the investors Scott. financial the defined companies can and grow by consumer measures a Act basis. These to, and These thank believe both comparisons market Form as level economic of to financial risks of help Good Any The impact understanding available me non-GAAP financial Exchange release. With certain reminding on the morning, are make GAAP make company's from speak meaningful that not of Commission. Also Securities and filings involve an I'd call These and that of forward-looking include, of in but the the of who and comments to today's measures. Brett? call, between inclusion to Brett a results. that, in gain comparable core MarineMax and

everyone, Mike. Thank morning, for Good joining you, thank and us. you

drove from top third revenue, quarter challenging of sales With environment and the To the Our marine deliver despite X% line to X% growth same-store complemented solid by were nice to is able an industry. exceptional across team. boat environment in the marketing growth and team's strategy performance increase testimony retail a our of strength in this promotions, we aggressive the generate amid to our in down was the insurance contributions continued and weakened aggressive interest inflation. level, of which much was in the U.S. powerboat data The in sentiment fiberglass Group, statistical revenue, persistent from registrations. rates concerns segment, According environment our businesses. At and Super Yachts about quarter. surveys, drives the finance the our consumer promotional in industry QX marinas, elevated evident inventories, and

end and it's premium the the value better without have is market not performing the its of all year, as While challenges. we said than segment,

are ensure with accurate retail information real-time We the communicate our manufacturing to regularly about they environment. to continue partners getting

with responded incentives support have sales. and partners Our increased promotional help manufacturing drive to

down of due to activity. margin from was promotional gross expected, As higher XX% last year

back XX%, Our industry-wide among many boat to many categories, storage We to lower levels With our other operating having credit resulted or of entities, that quarters. marina more focused stated the strategy down well to the have resilient others. strategy in company. was a IGY has improve our in we Johnson, structurally consecutive Marinas, and pre-COVID growth Fraser which initiated stronger as XX Northrop of acquisitions enhance and and profile & long-term and margins ago higher-margin certain MarineMax to for goal years gross as when sustain achieved above margins our settled we

to When financing storage a brands their industry boat, our business. location. marine one When meaningful centered of by customers of recreational and a the it Our decades be for premium has service. in areas our acquisitions build a a customer or presence to leveraging vision tools insurance, travel a year-round industry-leading experience, for digital drive our customer Supported they such the we to service have want in our for higher-margin past on Boatzon, have exceptional broadened and is our backed and significantly completed as customers be customer of mind. business MarineMax reach, When experiences marina, the our relationships strong our first excellence to we need of entire destinations. strategic our management they and expanded sheet, to several offerings make we strategic and vision geographic store touch for increased marine by across our boating goal great or have offerings years our the it yachting best levels and product engagement. us to want points the provide and recreational ecosystem. The our base, over to is the high our Boatyard technology giving plan superyacht Caribbean experience, balance we world's vacation, Through

have are an believe several and into has brought of MarineMax. We power generally unified of over on the streamlining the Northrop prior brand also met our that new of SuperYacht Atalanta how Division, example delivering increasing a into on our increased Golden the the the Management exceeded generate of add is Fraser operations SYD, and talent calls, SYD stronger. I synergies to platform past we and businesses of integrates each been The recent of of base Johnson, and these commercial our has expectations across and businesses that previewed that entity. office acquired future functions Yachts, Management, Yachts, formation would years we earnings our or never vision & Yacht portfolio. back The an operating we Fairport which able the are SuperYacht

yachts. from along SYD these of to companies portfolio retail our operations vessels into which began synergies support larger migrated increase our services, positioned years our others division of The to as Our to specialized Alexander for customer expand creates dealership provide. and exceptionally between creation complexity well Azimut, The with services international base. demanded our superyacht Ocean our SYD they expansion IGY many to and ago us to increasingly Galeon opportunities customers, this the new also are

long-term our plan, operational of to strategic improve the part we current and operating environment initiated expense As with improvement our structure cost-cutting align leverage. actions operating better

the Some the will of into toward season selling of our increase XXXX. fiscal actions and end

savings cost and from the initiatives contributing cash to flow We term. other expect increasing longer over enhanced these

Chair Rebecca MarineMax of pivotal expertise governance front, the XXXX, quarter, a as On of White Directors. wealth since of this Board the Board brings appointed White, Dr. a role. to our during Director the Dr.

Tampa, strategy. We As offers continues Director and Chair at creation invaluable strategy John P. as its development. in governance, members. execute of X James leadership Lowth insights esteemed of Walter the MarineMax to W. value Center the University Her will instrumental of Entrepreneurship retirement of Entrepreneurship recently the organizational and be announced she the Board

Watters work for Chairman, their truly a First, our spearheaded of MarineMax's thank our in pioneer. than Founder behalf to the career I spanning On Board, of contribution is Bill Executive success. and Joe entire of a vision growth He I Board enduring to Bill to the to want Charles the for members industry. gratitude behalf of more MarineMax, industry McGill, members, our X over acknowledge who his Oglesby. the want XX I other marine MarineMax's of distinguished transform On team and all also extend years.

remedies. quarter briefly were that mentioned second actively the our in concerning appropriate we operations situation call, During San pursuing marina Cabo I discussed our Lucas and

longer-term fluid, we is situation work on the since have we the While as early marina been remedy. May continue to operating

Given public the process, comments call address nature Mike, are from we the before to unable also to want I comments. And turn Island the Capital recent provide at this of time further to I Group. over

continue our occasions. call on best results, stated on evaluates to shareholders. enhance decisions Board to open-minded the guidance, release July will on the make always we focused have Island Today's issued in value. believe of shareholder we the is actions key this we spoken inputs strategy is and matter. Board company XX, to and on open from bona plan and several As The Capital don't we to take regularly interest comment fide and are in we with press and and responsive is stakeholders, MarineMax and our that our further opportunities

me turn over call to the Now, Mike the let Mike? for financial review.

also you, morning, I'd again, our Thank by their efforts like everyone. start industry quarter to for challenges. and a producing despite the strong Brett, team thanking good in ongoing

the X% X% of For sales gains. resilience positions resulting team. Despite Jet exceptional facing maintained their performance million, the and strength, this contributions reflecting growth. sales quarter, the last same but level of expectations, approximately Boat year, MarineMax, is as Yachts, Atalanta including strategically only our quarter exceeded and been declines This unit a reflecting in Williams the that us their not nearly we share our of C&C Williams market growth acquisitions, strength Golden for company's full quarter also from first has the industry Tenders. at revenue grew unit This demonstrates Works market same-store part our and to the challenging quarter, $XXX future at in in

boat of the however, in in consideration mentioned. SG&A as a to transaction the identified other contingent increased pressure consolidated margins gross Brett margins. expenses benefit items For the strategy, costs, due On earnings higher-margin X%, expansion expected, release. XX% margins basis, on excluding declined of quarter, the reflect as business changes and

move trends, last per as diluted or with we did income initiate quarter will $XX.X inventory, increased expected. Adjusted which reduction expense a the was Adjusted team. fiscal did within store million, was actions per share, positively compared XXXX. Interest result impact actions $XX.X These industry share As year. quarter, as $X.XX with million our and EBITDA expense we our or as interest million million, closings cost Brett and $XX.X given include diluted to $XX.X rates reductions last and mentioned, also during select compared structure QX the of through continue rising year. net for increased $X.XX

decreased equivalents with balance trends $XXX March, expectations. June quarter-end Turning cash at million. to over the cash increased Inventories and at consistent and from XX our sheet, historical sequentially to

as below aging in our our a than basis, great shape, industry-leading levels. is same-store especially XXXX lead unit importantly, XX% inventories and generally plan the continues environment. floor to More On of industry considering by inventory lenders are the monitored more comparable

declined consistent availability both borrowings, liabilities, increased Turning floor is as EBITDA deposits, over was historical year-over-year continue plan we given the quarter-end, and as seasonality of inventory, Customer short-term is position. which Xx patterns. expected, our liquidity strong a maintain was due a up cash primarily generally to sequentially, net little to to financing, Debt and inventory. our with at which of to

in of credit. We form inventory million the available have additional and of unlevered roughly in liquidity lines $XXX

other guidance income industry results, reaffirming EBITDA that things, million. to the net Turning our may to give our or of expectations guidance, guidance diluted range for we among and year $X.XX effect $X.XX year, not material challenges events, economic changes to consider the million of do are and based share range we of global per complete acquisitions our remainder in or XXXX adjusted unforeseen $XXX fiscal $XXX conditions. These on other expectations including in year-to-date for, the adjusted

rate because our stock-based non-cash a Our an annual XX% range a guidance The more meaningfully and count million. XX.X depreciation versus assumes wider tax items of percentage. like share and and just is on EPS compensation of amortization over grow as expected EBITDA

the in the gross a on and same-store the to range growth remaining continue margins For we single-digit in full sales basis. year, percentage low-XXs anticipate low-to-mid

year-over-year year-to-date to performance, continues expect way. team be the environment. That our XXXX above we level, to continuing are but rise retail expenses to industry thrown cost reflect whatever challenges their increase We elevated continue moderate reduction our will additional to SG&A actions. July fiscal our expect the as tough to we given with implement said, XXXX

strong of are finish same-store for to on month As much today, month our of note. there's to the do the ensure a year-over-year, July positively but sales work trending we

with demonstrate the environment. With and Brett strategies, call over level coupled support, manufacturing the closing drive in Brett? Our challenging I'll comments. to QX our proper to that, sales with we generate that significant retailing are able flows for back turn growth a of results cash

which we on and world's experience ago foundation was superyacht best luxury services strategically-positioned brands, XX have highly Today, members of greatest Thank of remains true XX today: customers, our business global boating portfolio years exclusive industry-leading than a stakeholders. you, The our and expectations distribution rights more the to a exceeding diversified into consistently with to provide brokerage marinas. founded MarineMax premium Mike. evolved team the and by yachting our

executing enhance creation are and higher-margin growth our the segment. We investing brand and experiences for power and expansion, earnings value acquiring strategy businesses premium in by services to the complementary

and improve anticipate we and results, market newly momentum. our as yielding enhancement are significant initiatives strategic performance integrated Our conditions gain acquisitions

opportunities disciplined a capital will to the focus to criteria. highest-return our allocating high with on We investment meet in our continue be that approach core

the financial the for our questions. strength committed to company's that, let's value operator, sustained open up are shareholders. And maintaining and We long-term generating for with call

[Operator Instructions] Our from Swartz Truist Securities. comes question Michael first from

Maybe to reaffirmed you the here, in start wide just left to months guess, range the year why a fiscal year? of, a you justification didn't fiscal the 'XX your months pretty X bit or range. Any in with guidance, go narrow kind again, maybe quarter, With outlook. I around X it's philosophy

in industry just question, pretty warranted we industry it kinds We and is we wide just leave Mike. a challenged. good the uncertainties a but that the the Good tough And are that, to scenarios, felt clearly ran most just guidance the like the given produced and in prudent of range quarter was today. all environment, different

with -- just and any that of place. the you've quantify assume said I And the with is locations the think closing revenue there at impact in reduction and and of a the those you some of the a Okay. Is that's actions quarter, savings would high in strategic closed other plan you're you dealerships maybe putting way maybe I the then cost taken? level what part to few

Probably to talked back in goal we get it, the our look is quarter, about is it was expense XXXX. to XXXX's first to Mike, goal SG&A get best to The our way level. last at

now, QX look is our operated you closer closer. at and we've getting if and in So percentage SG&A how QX QX,

on an at end basis the on higher higher year-to-date still but quarter, points adjusted basis XX we're this basis of we're a think basis. XXX I

like So the we've is, the out $XX that company of million just do you that something $XX tell from million our actions we're goal would or overall, of if math some and to the you trying taken. get

of market case. in lot those add some a the are a in duplicative that way. and that stores of affect decision shouldn't I'll -- That some And of in revenue any the was

Yes, that's if a nearby, you we that where a largely to have store are stores, good closed satellite store point. an adjacent The will. stores hub

next question from The comes Citigroup. James from Hardiman

is unit This trend of units? kind to you guidance the of what missed from but and sales sales that Wagner wanted where just what -- between might guess, same-store for ASP on James. then, was here? And was have the it, Sean breakdown do and go expect I assumption number the I same-store I your ASPs in versus to

question, Sean. Good Yes.

same fiscal we the quarter, had that in for growth. prepared had And was low-to-mid units same-store year, don't growth whole single-digit Now, for guidance, growth. same-store and same-store year. said We single-digit sales X% flat I remarks full quarterly the sales the what June In give low-to-mid held we said reaffirm fiscal the year-over-year. we sales that we

XX%. year-over-year, able But So average the flat for where extremely And of June, think entire the which of, in what basically I double growth May, is units the boat of digits. the also. increase is primarily we're price. was digits it's in selling that In fiberglass April, down month it industry unit month down I noteworthy it was a we're an double hold think lot the selling sales, in was our to down

the it of that of think speaks deployed I the and the we our to testimony team. strategies strength

think to I any Do think to guess, And of spark get rates -- how of interest better bottoms? rate when move And much without from here here you have interest the consumer, of to better guess, market things demand? reason on state you sort Okay. need this would cuts? from and the do without sort I just get

relief our on to interest feel How we? consumers marketplace. kind to to and bottom be but lot to But along needed, towards all would continues as of I cycle, us in ours. Yes, down think needed? it basis. trying the challenged feels year-over-year something is a the much bottom we're the somewhere of help. any the like A out of of help don't want skimming get we're know. clearly are in but this I your industry signaling good level, guess cycle. definitely of And it is figure rate like would all how Obviously, is as where

comes The Stifel. next Drew from question Crum from

and on some position you sense the industry a your quarters? you us So, give inventory. that as you how trending compares to Could over maybe provided for commentary your to business your expound see how on and the few next inventory

show Yes, we're to inventory very I floor that our There's of data to couple can a then and our tried wants versus have in overall. positioned, take of aging we perspective that a the get from lenders to. well plan if would a compare been this, especially can stab reports an other But industry lot others. at that Brett chime from relative he

I We've focused a shape. good think on we're it in been pretty while. for

pretty Our level noncurrent of low. is

Our obviously. fresh is higher, products

rises good. then inventory point, is through to The the June that's summer. as falls, end all and traditionally So, go usually and way seasonally rise it of the you a begins low

will So to expect, of all comes on get September, end the just what from It the now manufacturers. come June. inventories something are we of end would the they depends from where in at up as the I

We all of our said, the rates, our partners real-time we're working very adjusting adjusting feedback think manufacturing are, product with industry trends, given can what's about giving retail, happening build partners, on closely them getting you at Brett as the real today. just daily with I imagine, that of fluidness

up add are us retail, that shown needed through, manufacturers kind support an great. these which inventory all I'll providing push done trends the to this have in the helping our And push with of Yes. job stepping that they're outstanding data, of with even is

guys. follow-up, then, Got maybe a it. And just

above the can you but to year-on-year -- just decline low-XXs going like ability at the has rate looks sustain a you progressed confidence that keep moderated XX%. your kind that or in year, of decline as It in it through forward. confidence range your Just of margin gross

generally think that able be confident many I keep Yes, ago we've when to it strategy we'd that this deployed years there. felt we up

a I masking did think probably they of during what was lot as it kind COVID, people of expanded confused was our much boat that as margins when so strategy.

so, we pre-COVID boat higher-margin it industry, And below or it's today boat of to is the clearly, margins in these margins trying margin kept versus And much how much our breakdown, at how articulate, businesses. are levels. of of

that So we're we're upside the product our there's no in -- selling. longer from this margins

seeing this reflection margin so, there long is because tell be actually, those you're And industry at And margins would upside term probably you I may these is, the strategies. quarter of the the XX% of some right? where in

break these the down we continue as these of to acquisitions higher-margin margins into opportunity are the then, really, it the you synergies clearly under. And integrate, and You the the -- sales highest new very years, are, think find been used we at are -- of which new pressures businesses. our they've some some we strategy, that. at boat upside And in and next across several there's the platforms, in look

from comes from James. Altobello Joe question Raymond next The

just the question, that call, earnings I the comps April the you curious, mentioned throughout think retail nicely. last first on on trends quarter, So, were up

data, So as if quarter the the industry look get you seemed to at worse it progressed.

So you saw. guys curious what I'm

Yes.

finished the you, strong. June, the and strong. Our April quarter data finished finished was I'd we strong, Despite we tell strong. We in

region But -- So -- know a you a it June. really out that strong real as we we bright a May ask no necessarily bad. wasn't that, bad. geographically, I but doesn't strong stood mean needed didn't It It spot. was had just

as as a Northeast Texas. April pretty with would a we then well. to alive you and strong, said to continue month degree, Midwest as the Florida Joe, expect, But, the But a earlier, strong think we place we finished quarter cite as be. came did, seasonally, I was the yes, to good

the cost I that is Okay. see next of assume think $XX guys Helpful. terms of cost end that by million mentioned encompasses on the you And we'll full all about. of that talking $XX fiscal earlier, timing, the initiatives so then, year, savings, the in And that benefit to you 'XX? are in of I million. savings

Yes.

where let's it, Joe, was in where get the math So SG&A I'm you And that first -- back let's what it is get of are our -- our do XXXX. way -- get now, with articulating we're goal in we with line and run we've to progress. mid that kind inflation if is, that the that's some stuff, like be changes probably been set would making Obviously, a rate to million but that for $XX add that other goal good all on and that's out. and range, caveats. We've [indiscernible]. I'll subject you

our As year-over-year. you tell, in are how percentages the quarter, just close can pretty current SG&A

The from next question from B. Wold Securities. Riley Eric comes

margins little bit let's margins that OEMs inventories. incentives more. channel dive you continue are We noted heavily the of pre-pandemic level. reduce sales or sort on know also So that But and push to a into at to lean below boat

on expect keep basis, OEMs they on incentives how from here? above boat if longer do off And levels term? foot you term? those gas demand can much longer margins, does you rates, levels a have boat take normalized on the when should on at their lower So be margins pre-pandemic that to Or imply that improves current upside

Good answer margins question. I'd pressure are the boat way today. is Eric, under it, Maybe

soft where years So like when think in declines margins, transaction aggregate, would because averaging you only a the of below industry COVID the don't they're the this. of how before industry. they most for little I seen look been has have probably, at

I long out XX%, XX%, If the financial the think a crisis, down that you industry time. declines stuff it's seen take like where long, has don't in

a long from perspective, So margin boat upside, I there think is term.

the drive continue on manufacturers dealer partners. question, part work retail to are I think I and with help your closely of going first think to their

incentives their line are and that historical in add with also. trends support would I

So out I kind think plays that normally. of

in is and about at buyer kind needs that into boat indicates the would financing value -- maybe any obviously, the recent you demand you the that demand a on groups guys, thinking in buyers value then, deceleration store, have or [ follow-up kind else a bit he better may maybe Have but Got somewhere of your buyer better their seen maybe improvements higher-end but the shift it. months? come And of question, the from or that positioned just the seen least X financing buyer. of than cash a buyer positioned maybe in ] any be higher-end little buyer

our there a are the reasons as a the while, to yachts, way across bit environment carry, spectrum answer of it's doesn't because including really a selective. a and this most obviously tough larger a is it where think very the spectrum. brands positioned. which out reason the been But buyers difficult. unlock ] general People a that those are I for today, question I'd They to and really technically rule smaller we to able say better from when is need been [ they little to in maybe that, buy Brett successfully. But has saying a matter a of product we've product, it's are -- find

the I much And profile or we've to finance really finance looking seen don't shift has there. think Nothing Yes. dramatically us any or or not different. finance in with major changed their appetite

in touching were on your you question. think I that

question from comes D.A. Davidson. Next Brandon Rolle from

provide fiscal maybe year year that early on to given is puts we you 'XX? year just First, takes any model would almost thoughts as 'XX a close, think to about fiscal coming and some 'XX fiscal and

[ Brandon, I and this, the a guidance hard the get for quarter, in year the get talking kind think guess, for this commentary a question. into ] I touched is, XXXX. change may industry about we thank can then too you on only XXXX of our thing lot don't ends, until to knows, would whole Brett We who state softer. say but it's I this and deeply

consistent model business, businesses, are lot of we down, a Yes. And you many from around derive our a usually up, the of model of a how higher-margin be lot do -- kind industry many, on units it's been we we although changed years or number that. think I kind we our could next up with think for but pretty what to going we've year,

applying with and in, perform, think And year year feel with way more are that should they'll also be so, it I quarter, to we've and we'll out in consistent business our that. a show done higher-margin continue the and think show this resilient how touch those I we

one And more then, just Okay. question. Great.

you I and kind I X maybe September. rising it take think had are year feel could kind last calendar you like, of remainder inventories months industry are are underpinning the where at, levels Or then of you maybe do XXXX? ready maybe guess, dealers on given you're mentioned in more of throughout more inventory start inventory? expecting to destocking of

I a question. great think that's

think dealer I on depends really it deal. by

aged I there's out from have think have They there product an who perspective, overall, still. a lot too much too of industry dealers much product.

better as manufacturers we a we're in in how -- we're be to anything that means new going the better they're going we'll depends July, our the retail and are today different So adjustments -- well, take in in earnings and coming we seeing think hard-pressed and out I a a from needed. need lot think that that in we reflected And the to you're in trends in traditionally, September. models lot We're think of slightly aging today. obviously, that industry are And we inventories August reports the for From an there. we're into bringing All future. to on foreseeable we head from and perspective. that be shape as September, noncurrent seeing product make rise perspective,

next from Healy The John Northcoast. from comes question

you retail gross margins. When it if been of even will ask starting that from do on are I'm the know on of continuation it get a framework it at recover your here? to that I you at, Or and where how the the wanted and trend? competitive kind this on of think of that question how period, point. dealers, gross way. look some low I one for being better just discussion the there's you understand but simply call margins and retail? a that to already, just Just this pace lot trying at feel process we comments might on we're your I'd Is weigh thoughts here some kind like to evolves. from situation need you see we're how pretty But maybe of of love that a at as your take they to get

just I'll Yes. comment.

but that sure, do and some plan environment level wholesale. of December. There on really And is would beneficial the a end a for weeks also dropping showing is retail, be lot lenders end the you all hand September floor of need is out some terms what's at the of projecting there in at of of think dropping is in data healthier of driving I happening. some -- and have shared that significant then of that industry that, inventory which levels, drops

the coming So as good. the out, isn't which is going replenishing product sales are as in fast

kind in late an to. Margins it do can not help. contract calendar a cycle, in the rise And times that our I that then, be XXXX, early you box, check do that been then have of they all type chalk it's some up and uncommon. a maybe So, happening XXXX. as team, afterwards. cycle and organization, We're multiple we, management now And through consumer will fiscal feeling should obviously, early think, XXXX, I better, normal so that of calendar it's here a as

can levels trend. there's we that ahead start decisions bring downward some retail And our of down They getting tough know that kind been to production of manufacturers have to this make great. so

quickly. in And so, too. industry that's to going going said, like trends, But be hard to help, those the to it's get with uptick Mike

MacGregor The next David Longbow from from question Research. comes

of couple a questions. guess, I

throttle a the mean we'd this points maybe in back of and right little a more now a efforts you little cadence, around and focus motivation Or does do of around acquisition as accelerate activity? and on more seller, consequence, acquisition activity? of all, cost see kind the other your environment business the just the First reduction create of kind

Yes.

flow wanting and what I great could think But the kind opportunities industry has I eye, is to the of call cash grow. make you're sure past, there's a we to as things there's we probably trends we're throttled out place always on year. an to as little -- continue keeping it, think do and there, in a in I'll do,

question. follow-up A

million. composition $XX programs underperforming dig that are other And if the some terms [indiscernible] in wonder going Or here you we largest talked cost that a the some the closing million about Is $XX worth things already are that to number? I maybe talking further Just to could about? of into of locations. there of on part reduction little

call, are everything David, last and bunch -- line of the at item. a facilities. And thank insurance other we're in of looking We've every related certainly, facilities think, to part costs on the that are comes It with I things talked, business, it. you. big it's a

So member reductions, we've largest may that spend So, or it? the done, with and the of partners other we renegotiate we've that dug decide goal really and vendor then overall sure, costs do we can or although that's we not, don't really we're different some up end recall percentage, internal into on. for which team to do I just that need then being but working level that

This you. Thank the turn like back would closing Brett for concludes conference to over question-and-answer our to remarks. McGill any session. I

you at hard call And the want work, to we'll today. thank call. be on for next everybody I the quarter to we'll and talk joining

The now Thank attending conference concluded. you. presentation. Thank you has today's for

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