Kingsway Financial Services (KFS) 7 Nov 232023 Q3 Earnings call transcript

Good day, and welcome to the Kingsway Third Quarter 2023 Earnings Call. [Operator Instructions]With me on the call are JT Fitzgerald, Chief Executive Officer; and Kent Hansen, Chief Financial Officer.Before we begin, I want to remind everyone that today's conference may contain forward-looking statements.

Forward-looking statements include statements regarding the future, including expected revenue, operating margins, expenses and future business outlook. Actual results or trends could materially differ from those contemplated by those forward-looking statements.

For a discussion of such risks and uncertainties, which could cause actual results to differ from those expressed or implied in the forward-looking statements, please see the risk factors detailed in the company's annual report on Form 10-K containing the subsequent field reports on Form 10-Q, as well as others that the company files from time to time with the Securities and Exchange Commission.Please note also that today's call may include the use of non-GAAP metrics that management utilizes to analyze the company's performance. filings non-GAAP in the release, call the as our such measures comparable as over of I'd in available SEC.Now, CEO is most periodic to reconciliation JT metrics turn of most to GAAP well like Fitzgerald, A to the Kingsway. the with recent press proceed. JT, please

me been quarter call. Thank let you you, afternoon, and over everybody, call, earnings Thank go our welcome to earnings joining XXXX us.We've busy highlights. Paul. Good the since last Kingsway third the for so

and Our results forma with continue compared ago, XXXX a in to number quarter EBITDA adjusted $X.XX from repurchase of $X.X Warranty million, total a were compared third detail will decreased with XXXX.We KSX million largely of in XXXX pro year warrants, of Extended common our was later. consolidated of of to up to for the to in $X.X expectations quarter while segment a $XX.X stock in EBITDA million million line and consolidated our million which adjusted revenue total last of Kent shares $X.X a the Combined third XX% segment year.

acquired with strike Diagnostics largely we the on expired $X XX, but Digital DDI. Products International, are September Systems believe in acquired Our exercising. we XX,XXX Imaging, behind And We overhang XXXX October, created warrants that September, concerns all now us.In SPI. or or

was forma lot million year in And $XX.X I'd delivered which Search the Research, forma with $X.X to to quarter of current platform. Clinical $X.X EBITDA for million ago. a of a Kingsway million Extended Our is Institute compared quarter year pro $XX.X purchase shares of adjusted compared of to Warranty million EBITDA the the revenue current so the Adjusted like our in we NICR.This segment, revenue fourth pro ago. of National signed or unpack, start and acquisitions fifth definitive a XX% Xclerator October, to a agreement under to of

PWSC, July pro we As a sold exclude forma in results reminder, which last year.

earnings service credit be impacted revenue used prices.At by tighter call, continue level we persistent impact on Trinity, conditions As persistently consumers. our last that macro or VSA high companies maintenance and headwinds impacted paid by equipment support parts calls. been Primarily, car business and have agreement our weather which vehicle in and and due an have in results support impacted our by claims in its increase discussed to times lead revenues services Both breakdown segments long on decreases been installations. of conditions, negatively service also fewer Trinity's maintenance to mild

from million this ago. coincidentally, in as we've to ago. These quarter funds as was sequentially year been operating $X.X this segment. are with to had some offset extent had Warranty XXXX of a year. and or of completed the year CSuite better-than-expected than headwinds, able The EBITDA. is from Warranty that operating a SPI its to to were services revenues. profitability acquisitions more it last companies income adjusted from of this quarter Extended as at business favorable of revenue the a the mitigate worth to perspective Ravix, million Timi lower-than-expected Through slightly reserves with in performing and adjusted GAP for some provided, was terms release CSuite quality compared as in and is acquisition $X.X revenue higher customers the November the Adjusted noting in Ravix of team his EBITDA business Xclerator, of improved growth. of of have opportunities its lesser repeat compared diem of Okah current SNS near business performing to in September current EBITDA retaining plans million certain in of internal business Ravix million these However, and of higher XXXX.Switching EBITDA travel $X.X recently expenses revenue rebuilding increases last margins mix addition where gains of have very compared that year due ago.In XXXX to to ahead XX% investments performing search to up operating in these to year new now it's are in strongest from impact some is pipeline At pricing. assignments. team all in KSX the drive year, well to year. advancing product in all is Even companies QX talent IWS function instances a Extended adjusted a quarter through challenges, had Both didn't assignments our shift at and and reignite development segment lower $X.X its a growth.SNS CSuite, Search our despite the at per that a margin realized this year We or our added

have we nurses, typical the spike early travel yet in we still not for demand As are the in season. but we into seen winter, head

a low to fourth qualified Drew the into services. telemetry fit Importantly, in staffing provider market shortage acquired Richard, transitioned monitoring long-term a accretive. vacation and entire managed persists.In vertical fully recurring company. CEO capital industry we It demands. ownership solutions strong Operator-in-Residence, software has day-to-day the with immediately cardiac outsourced completed Xclerator. our of modules has it revenue, was nurse October, we and a industries. software cover investment for acquired believe world-class margins, operating includes acquisition platform be of with rental the software SPI company.In products the role for vacation of we under privately as growing that It care our Search September, be SPI enterprise. criteria comprehensive expect nurses of timeshare and Its operates held set deliver DDI, and strong will we the demand will SPI, the a

quality is on conference transaction the and is and DDI research. trials. attractive NICR about us diseases, a We and held of the on, market. NICR gastroenterology industry life-saving able calls recruitment to services you I nephrology, Institute will its for level service focus innovative participates therapies through separate its SPI was agreement high development remaining and cardiometabolic, the if the clinical and focus clinical of NICR clinical to Peter make scalable in to dedication and infectious those a record definitive calls.Also telemetry its clinical in has signing listen to to Davide Zanchi, and to are weren't a and to executing close largest DDI of transaction, track the CEO trials is legacy. of those October, are and transaction, with the established this pharmaceutical acquisitions the or transition career because impressive a site the is management has recurring NICR. clients the successful outlook purchase site announced trial high-quality offering. DDI. favorable an and of stable companies. committed replays as and provider finding of trusted for pipeline you seller. Officer Operator-in-Residence for has The and of its has Dr. encourage because remain and growth XX% the shares excited a in customers a reputation for and of outsourced into National highest clinical of the a Chief will the for services. of strong The through pharma NICR standard biotech commitment of of for profitability management of world's a in to level We following to we with some Its Operator-in-Residence each to to, Clinical transitioned role discuss Dausman, the of this is DDI dependable, growing of operates trial patients this service transaction. has and to continuing this responsible revenue X% Research, foundational as delivering with itself in we Executive a partner provider

quarter We we past, occur an expect closing closing a is across to the discuss in have we Shortly we've the the predict, NICR but which finish recent M&A line. will taken call difficult closes, host transaction closing, timing deal first intend certain deals in to further.As to XXXX. after conditions, of conference said several weeks, the is to subject the on

from MBA quarters, attractive OIR, several OIRs air and acquisitions during Investing patriot and War. the Morgan He pipeline and our missile third Real joined new President career we within holds transactions. Merchant us in the he the supporting a also In For quality as have Army, and management conveyed platform. United to the in and to JD Northwestern. we from in southern Miles a identify protect Civil an execute where for Miles Stanley, added the our a as BA the Mamon Operator-in-Residence, officer or responsible Vice about from States and of operation a we have defense spoken targets NATO Miles quarter, and Turkish a to where confidence missile was the asset Banking the KSX began unit an served his border Syrian group. Estate Northwestern he

We to million of XX-month to million adjusted $XX last than $XX believe the and now like our closing.I'd $XX quality to the and of bright identifying, our to earnings indicated was call, we is the our pursuing, reiterated our given company we they the million it to extremely trailing opportunities closer team that continue and run for likely future to $XX have range EBITDA on talent turn rate. million. are On

range are our $XX and Kent our increasing KSX XX-month of as to unpack to the an This positive excellence, EBITDA that NICR for the while long-term comments.Looking results. ahead, growth, XX we provides will remain As capital sustainable rate this million companies, flow includes companies, shareholders. attractive operations, in SPI, from a Extended result cash trailing a his priorities recent as million. further Operational run well acquisitions, existing build for and the Warranty generates strategically DDI, return same. and delivers our XXXX beyond deploying our business to adjusted

million to that review call new We criteria year the range the generate annualized continue each.I'll $X.X X in Kent and a dollars it million acquisition for clearly to X our of acquisitions now per of EBITDA target to will $X over financials. turn our to defined fit Kent?

you, Thank JT.

during we Veterans quarter XXXX, of a get started, as owns Lafayette, Before to Administration. executing medical sell X whose a which reminder, the tenant VA of I began a is our plan U.S. sole fourth subsidiaries, clinic the

and are from assets reported operations The as not from of of for continuing quarter away Estate shift operations I'm Leased liabilities the in results last reported to the results our to and held is year. from income for operations compared was third XXXX sale. million included included discontinued operations $XXX,XXX its of are and about VA discuss.Loss the part Real Lafayette strategic continuing $XX.X As its separately segment, in of

Combined year. net year. includes for was compared XXXX EBITDA income quarter the XXXX to Extended adjusted of quarter KSX to PWSC.Consolidated $X.X XXXX of $X.X sale for million $X.X $XX.X gain third last of the was $X.X million the million a one-time third of on third operating of in The prior million million the for and Warranty compared quarter

these investment combined million the reportable Warranty, last Trinity. in end or and to was by results by adjusted year. the at $X.X of I'd XXXX prior a down through which in adjusted both year, payment were the revenues, excludes from pro PWSC revenue XX.X% of impact claims, quarter the $X.X X.X% pro third to million of the interest break XXXX operating $X.X decline go forma Extended due let of only third that In quarter which pro and was million revenue was segment. VSA on of rate were third consumers attributable or in third were down pro gains, in decreases of revenues and of to automobiles. VSA forma year our quarter continued $X.X partially to compared EBITDA, sold was and realized resulting offset price While in like expenses.First, higher-than-expected EBITDA lower last VSA companies XX.X% year.Now, forma used me of higher the from segment This the Revenues pressures quarter increase revenue continuing million of down the decline. an forma decrease in last in environment

begin has automobile occurring not quickly are this used to declines difficult end since predict ease. While consumer year, beginning macroeconomic these the of for to when the price anticipated. It a the fallen will of the trends is as as

lower spot as long is contracts loans in bright which Trinity, services equipment was results IWS, to parts placed.At maintenance of fewer weather conditions, in due on through discussed, calls mild IWS market lower and decreases much as breakdown credit support and a in lead as overall JT a and times service installations. well which result as where the the revenue in sells However, is sold decline decline than unions

continue relatively the VSA up was higher we on and The in an result third and the quarter trends.Next, general a of stable. prior cost associated the to claim Claims percentage frequency machines strong are and in than Trinity severity, increase claims that severity the of as we than or increase of the in absolute of a will were which continue installed, dollar due and QX as increase revenues parts have revert rising is slightly to were while supply and but claims However, is higher of frees Warranty backlog costs, expect shipped rates per business from inflation. $XXX,XXX at to basis market XXXX year, an the growth the down revenue. both labor orders the chain the increase historical or to number in

place the put since Geminus about a Warranty claim items. results as we we GAP on are were of release down -- product similar of scrutiny reserves. in year the as PWSC, totaled realized gains at increases.Operating which XXXX. Cosgrove of expense across IWS took well investment any expenses excluding about reflects that's in both in line front persistent Brian product all $XXX,XXX from initiatives about million earned quarter $X.X continue as the of from quarter and Also assess contributing reserves, in PWI well continued and its XXXX, realize income Extended investments.As Extended that These any our some very third a discussed, losses is staying and We to G-A-P proactively JT of Warranty or businesses ensure to our didn't investments, float companies a of favorable results gains severity had pricing second to sorry, other all ago, over as

with in and As million which XXXX, securities, our high-quality average we've to bonds, X XX, municipal X invest at bonds duration $XX was discussed before, an of about September float, we U.S. corporate years.

of an hours due versus in as the a than able margin higher increase our latter of XX.X%, its as $XXX,XXX This the to compared higher income billable for just from just the services to lower-than-expected we continue revenue XX.X%, but are Extended line ago with of third XXXX increases.CSuite for of our due and acquisition delivered by investment last as by clients decline has of As XX.X% a offset KSX, that in adjusted Ravix. continues pipeline of profitability We to year of in segment in member focus reinvest year of higher pipeline, shift we year in current and rates, lower-than-expected remains was hold gross of offset in gross has as prior expectations, was at price $XXX,XXX this gross on last $XXX,XXX CSuite its or mix, to million segment of the the the third EBITDA expectations, outlook XX.X% revenue TTM is to reminder, our margin in quarter. in lower-than-expected on slightly quarter $X.X quarter in in to business hired X/XX/XX revenue number was At of was to The of the portfolio.At investments well revenue And mature, in revenues. resulted decline delivered Warranty XXXX interest the a believe on partially or during the rates. an was a included was margin business as was disrupted Ravix, which in opportunities.SNS was believe healthy period. quarter compared revenues. XX.X% third a XX% new decrease to essentially prior but year team ago development long-term rebuild compared year. up attractive which to the which to process the billing

the ago year-to-date see QX total to staffing travel shifts of a the per diem the Year-to-date, of mix is diem, We figure continue in to XX% the XX% down quarter. same to number staffing. was shifts which as year from months XXXX XXXX. that in of the Also, shift X were in first per

is and other purchase believe cold we At to quarter growth on rates minimal. compared results operations experienced number the end businesses, cash line when that to of of results XXXX, to expected XXXX. near-term activities we third provided shifts equivalents the in increases the compared as Cash than is months during number seasonality the and expanding acquired season.Given were expected now operations to cash early of pre-pandemic. upcoming plan reminder, was SNS, its last come used our its travel XXXX, million travel than purchased was million from SNS, We sheet. $XX.X base acquisition, go-forward the at the time to SPI million, of September, XX, historical end demand we SNS levels an contribution new travel well lower of calls.Turning X year. At the referred with from $XX.X first shifts more flu expansion of staffing million a balance in our months more as continuing $X.X X of the into operating was based nurses, improve recent as areas. by of September the of we in $X.X at cash to to the for and future results has geographic to had in ended being on SPI discuss As our price more current those as of and quarter

million from QX; $X.X operating on holders $X this $X.X in interest bank included income and payment related cash a debt. for impacted the Extended separate paid our of Warranty from the commercial escrow liabilities loans real of X item and total deferred exercising million the debt the Debt as segment; release been fees $X in comprised outstanding million for is of VA warrants; has the this by of is of lower investments; from sale management balance Limbach and year Lafayette estate balance line sale cash of QX $XX.X in sale. received TruPS trance TruPS XXXX; to million of of final of Our the QX associated stock.Our QX with sheet items held following remaining in million the Mendota year: of

$XXX.X of over quarter to debt outstanding the with that the the $XX.X of In we million the had to of compared million of a result, September company, After as just in $XX.X warrants last end Net I'm expiration. XX,XXX but As $X.X end year. outstanding you through our our $XX.X of million $X.X approved year. stock and and end warrant XX, common at XXXX. $XX.X million debt being repurchases repurchases, last held as X,XXX,XXX million may shares exercised repurchased resulting at Through last from by compared at at decreased of XX XX, stock a to company. $XX.X have recall, of cash were September on $X one-year shares been expired of both October of repurchased year -- strike exercised, million outstanding.As million common XXXX, for number the made third company of has the treasury could to XXXX, this a repurchases warrants The the total sorry, were of of warrants is of XXXX, end of or program. After warrants over be cost securities warrants removed had all March accounting our securities stock repurchase at the next year, common the just and prior we repurchase stock. stock XX, considering of million XXXX, year.Earlier Board our XXX,XXX repurchased

run sale in in the from close quarter see all $XXX,XXX. recorded we can our XXXX, discussing were of million.I cash to completed realized Holdings, by QX, the a stock release.During of held You rate. gain Limbach and today's earnings XX-month trailing Inc. $X.X Total a breakdown adjusted sales would EBITDA like by proceeds

metric the now $XX company. this XX-month capture is to of a to be things. the about from As Rather, has to what it regarding would to currently This the million the intended intended management get our or so often guidance by investors owns is earnings range not few like is $XX I future company JT million. indicated, of metric, questions We recently earnings acquired. explain

based realized recent the our higher adjusted rate to results Warranty it includes segment prior XX to from income includes our environment; actual like results to our gains on IWS summary, since with Extended would expense, while XX SNS it declines; line quarterly well results. Ravix results of we actual results, earnings such, reflect the continued NICR based includes float pre-pandemic operating that results do so diligence much far QX adjusted levels segment. as Warranty performance last DDI, to adjusted post-acquisition. months the CSuite current XX with to following: Extended and due to the also results year. we or results And It of had investment the of order and management's softness the Extended in perform pre- more XX months, not deliver actual factor results associated as interest year months claims acquisition on results in includes continued quality for revert best some for SPI, both this of in any earnings at view of Warranty our on associated the As experience businesses months with reports.In reflect months and for which in due losses, It the XX actual expectations and

acquisition KSX deliver companies will net of to of now for call in amount able our have robust the progress to Paul? operator turn third enable to growth.Finally, reducing on us.I'll were repurchase debt, year, open our to questions. and X front of which line over back to portfolios our We strategy and made added the early meaningful securities, we the a our further hope add to a next we we opportunities pipeline a have of us

questions call for questions any no I to via from like to James the there Instructions] submitted hand were [Operator the currently lines. e-mail. And Carbonara would

have a on e-mail. questions did few in come the We Sure.

pro is for KFS?And for a EBITDA run of interest debt It is what necessary. rate the can one forma forma base rates? re-read acquisitions? What is is if and any rate X-part first says, I expense that, acquisitions at recent question. the pro what run current The the

I it. got Okay. I Yes, think

walked pro So that. recent first, run forma rate for I through just EBITDA acquisitions, the Kent think

I guess, increased and $XX would things X/XX million million borrowed plus additional $XX didn't that we at to include We TTM acquisition. million million net SPI sort was so And own, that's the range, transaction. to forma the And borrowing We we we roughly help NICR then to acquisition. the EBITDA own.Pro to new any $X.X that finance $XX.X debt DDI the the anticipate have the acquisitions. roughly expect the another of finance or million. an We of debt, debt things to help use pro to $X finance forma,

sorry, question if add what plus the you then, $XX.X million $X.X was James, the part net of of So, debt.And final get million that I all $XX.X you guess, million -- question? up, $X plus would million of

the rate is what expense rate acquisitions rates? with, concluded It current run interest base and Sure. for the

I'll take reverse in Yes, order. that

debt an points. rate plus So prime rates, DDI of current acquisition interest the XX base basis has

So prime think. today, at X.X% is I

that debt. acquisition expect on pricing similar X%. the be would we So NICR And would

plus or $XXX,XXX spread. an interest translates into take, of DDI. that base at expense, So And additional give

at expense or so And NICR. interest somewhere of $XXX,XXX around

e-mail these a Great. do And before Operator, question back in to the questions? that have can queue. we see I live reverting take we

have from from coming question Adam David Capital. [Operator we Instructions] Patinkin And a

Great. along of way. and a on all the quarter progress the nice Congratulations

And a disjointed. I questions little that wanted jump few a have bit sorry, they're I I'm through. to So

So they're kind another. one unrelated of to

would question guess, earnings the would I call based the is what, first be. would or of that value So guess, go-forward what is, my company I I you way about earnings on normalized think the be

that And which track a so, XX to try where a obviously, to $XX through "Hey, that I to growth know. months I number of warranty. helpful one clear I million the number there's some say, trying to adjusted little KSX do of less the to But is do really is Xclerator". is some be the $XX to math this But then in not forward. guess, I made where The what I'm acquisitions can is predicting. million, you're guidance that And might of EBITDA on no and I'm look think the you've trailing

mean, about for quarter revert the a the is talked you've which tougher I with has improvement $XXX,XXX going how it So maybe period, is partly versus but opportunity there call this the mentioned warranty underway quarter.You in maybe been like reduction. last a to think profits through an to on

normal if $X of get so, And in maybe I you I where to annualize million and currently above a EBITDA X are, between million that, more environment.

have about warranty compared to XX it about talking not that but not it? I'm power way last how think So the over environment, about right to of Is business a a a where months? do you poor the the you peak environment. for I'm also talking what Or kind about think earnings normalized be would

question. of ways of Yes, great that's attack lot sort a that. to A

there I our and normal right sort a more future First is best environment. foremost, would in of Obviously, isn't say, predictor of TTM the Adam. now, warranty

and very they and sort on challenging both operating lean is of been so, yes, very environment. a sales And in what focused claims maintaining cost rationalization environment have

entire that we And so, cost quarter sort high $XXX,XXX price That get reductions revenue but to are in profitability, the of than the the have of as way through to prior way going the the work were we're working sort kind the book, those the of so, into of And price about mid- pricing question different increases in things, expense pretty guidance, kind single-digit as that's exercise, and rate just to claim is math book.And right? the their of $X that, essentially here, about severity. kind -- I operating a talking isn't play claims and sort through me moving then move across the back reduction it if forward, and quarter. And taking of also mileage the I offset vehicles, are comprehensive on way would sustained, if improvements bands million just through think higher offset those your that that price classes and in both you we're think increases, improved it.

super past. I'm That's at that. more it. that Got are see to will is But back can declines a that maybe coming maybe warranty in whatever will see, Obviously, whatever environment million means Can question market what or million the the is give helpful. confident VA that's might -- end okay, next think would it I what that's adjusted you normal a head do more say, more the come. on I in trying $XX the normalized like it's And know through being.Let's done any sales $XX essentially car to Lafayette. on process? to that get mean, the car towards really or more it and that EBITDA you prices update that environment, my in be to with up in I'm business I'm confident normal number that's helpful

Kent. is this Adam, Yes,

it to continue does commercial we be national or number but targeted little towards have challenging companies this we year, had just estate to in bit being it the have So of And -- a continue has marketed interests a by attractive. some a would market some that. real broker. We've been it particular on think that people continue people in that that debt find profile. interested It to we market we

recapture year. some buyers need the of end depreciation Some before the

a still market active it's right now. So very

helpful. next And just on then your Got my it. question is searchers. Great. That's

about with I to those? current they then high-quality join how And And searches? your your maybe to you to level of both searchers attracting How's their on in goal more searchers? the going know next is your searchers? searchers. And you a right candidates Can X now. speak as X also, to progressing got bring speak can going are couple confidence You've it

to Happy sure. talk about Yes, it.

a to. handful be acquisitions in XX-plus joined We're Hearne of X circles at X Davide, networks really high-quality the advanced of joined May in we've pretty and to Peter them. to Dausman of us our we've Peter that OIRs both talk Miles always the And soon support recruiting looking would folks we've as inbound then actively and mid launched of been the have with actively Drew August. And early of interest X concentric dozens for us and X CEOs dozens, goal been year. to fielding and So in people and current a candidates, now late stages and acquisitions to group of end launch just to that summer, talking through to

want effective And we're great that Again, we of great CEOs attributes making more have them so, both and set folks target progress. businesses. importantly, and searchers, will make but small discipline yes, we that our to think that maintain really

finally we've intermediated they're work is XX nice X really interested built would close And to I around in Peter respect But average time so, close searchers search, close to a months. and back and that of always very search. go days, at to seen transaction. they're industries running both probably at is set transaction with to right? Davide. a like a They've ongoing.And XX proprietary a playbook. that well years early took Peter, as over that here sort as or him handful quickly, We've Kingsway, processes Dausman Some very Miles of that got of

derive them, we what to we focus is, of business safety say we're quality. so, on margin our And from going support

sure acquisitions And making discipline around we're so, really pursuing. maintain of types the that our we

but all things about the maintain also they're doing so, prospects, And and optimistic we their very discipline. want we're to right

it. is question, ask ask to to going Got gotten maybe this a just but is which wanted there on this, then lot I question haven't of makes And X you I'm a maybe just That you. last sense.

growthier acquisitions businesses the there made positive a in approach company, be Search or more my I I the don't prefer business be as acquisitions about growth kind every know more That's about about businesses. snapshots guys disclosures will wonderful that's being a to positive sharing now terms each like that to you really quality of growth on something question. and think there, more think business lower businesses hopefully, come. bit And of your more understand if with settled you X here And last businesses the EBITDA are you you which should you from little higher little a trying you've just be think of business. lot but just market. of through business of of of guys do a have the away whether get last you step to thinking And the acquire going to growth mix had an maybe how the the So Kingsway In growthier.How lump shifting when I'm time, disclosing the is that the and mix over off. information portfolio about way of is I'll earnings ahead maybe all or you terms over as about then? their is and which and are and a some where in them towards think But together Xclerator, Kingsway these warranty, time? kind

is great businesses. of the now that under have focused question, same them it's a within We segment we of how and KSX a profile and think reportable right all similar fitting we're GAAP means things a And about those things on things. very certain manage to Adam. Yes, we types

we for that to we And its that out the be And investor that then so, that And of our businesses. would going that sort to do update I of expect intend of one also unpacked becomes segment. something And deck would today, the performance do continue as quarterly reportable individual that like would each performance. segment own break we forward. Certainly we QX, that. within

Xclerator those growth are like true under different diversified segment.And the So investable float. of each businesses, maybe prepaid businesses within one same of a the the combination that hood Search We can and profile. warranty, is how revenue at people see doing really these contractual

mature more Just a market. slightly maybe

answered we'll within that we'll investor but one deck. would know segments reportable and don't out certainly Adam, your of about but quarter separate every and businesses underlying think I KSX, the each So, performance we I don't them the break in talk if question, have -- our fully of

this Kent. Yes, is

comes add, related of much filings be to acquisitions it continue hard rules that a way. looks if we'd color we to sort that closely GAAP KSX are to well. just are the when can to each complicated of up profile it's depend Board in of at right they as that the and And try required your too without segment pick of our KSX at now, the internally sort And as look also other. I'll sort disclosing determining as U.S. apart determine to information reportable perhaps much -- but will But internally, on to might as segments. we'll give we how future and it a competitor So sort break of

questions from there James. lines. to And Back no you, other the were

feel It shoot Yes, from in most to during actually you live. in for on have webcast, all CSuite. more to the over X X questions the question, questions up.The it disrupted was we just came a if the JT e-mails, listening james@haydenir.com. CSuite's Yes, was do acquisition the question came free to have question that And the on Happy why pipeline recent teed get that that's or says, Kent. process? you're

great question. Yes,

seller, Arthur, development the So, company. business person was the his primary at

just business I say, And through so, the of involved new as of distraction. business, would a got his in bit, sale pipeline suffered deeply he his

the development. as of Timi at his selling the is no pipeline I focused business not consulting because And agreement. company satisfied sales longer rebuilding well. so, of during his new that been is the business to has focused activity internally pipeline He and He year with Arthur on Timi a process now X-year the most on the But promoted transition company. and And say, backseat has business out. took would was that now someone Arthur

it. levered the acquisition spreads about does able given the current management one was, next rate acquisitions currently? debt they interest are how Got on environment? to get feel And What

rate given prime the deal. about think and our continue amount of been the to acquisitions.And pretty current we point have conservative that's in points acquisition of consistent it's then we to transactions. on leverage important spreads be use of debt basis I levered of I believe over recent on sort these environment, out talked And support Acquisition Yes, what will to XX debt. acquisitions, interest we all think is relatively our that a in most

funded senior Xx at less closing. debt-to-EBITDA or So

and of debt And so, sort is you acquisition models, higher. years. sort things, from X% decreases by on that the or of capital of of over the cost interestingly, then so of capital, the model But only of IRRs, because impact debt amortization the go obviously, our basis the capital if points cost out modeled in you our XXX to if X%, debt X

with we a really to those returns, but as modeled equity of have enhance use to cost big debt want amount on of higher doesn't impact a right? gate. the the modest we're want to before, appropriate striking So, said covenant out returns.But I've probably debt on give more balance capital we on our so, operators the focused cushion headroom, invested these the returns And adequate of to of plenty

of don't [ so So charge or a debt fixed ] not funded we debt-to-EBITDA take that challenges. senior on ton coverage we're PICLs in ratio

rate current the so, hasn't of level really impacted leverage at And environment our things.

different came Great. here pipeline And pull threshold? coverage that the Xx for but that or i.e., in. coverage, have interest if that, answered sharing they back is, just just a would last on below management the bound a last lower have one we fell does acquisition You question interest have may

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Yes, JT, it. and any additional finished question? I seeing answering I'm that's e-mail I'm it. questions in not Got had think there. you the the at looking

Yes, that's great.

no are more operator. we'll think Thank on back I the hand if there everybody, participating you, questions, to the call. for it

day. wonderful Have this a may you for participation. your today's Thank Thank you conference, disconnect your you. This does lines time. conclude and at