Kingsway Financial Services (KFS) 6 Nov 242024 Q3 Earnings call transcript

Good day, and welcome to the Kingsway Third Quarter 2024 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. With me on the call are J.T. Fitzgerald, Chief Executive Officer; and Kent Hansen, Chief Financial Officer.

Before we begin, I want to remind everybody that today's conference may contain forward-looking statements.

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

and actual and For XX-K implied or and Commission. on and in forward-looking Exchange the XX-Q which such the discussion see the differ Form risks subsequent please with factors a could those Form of in the cause X-K Form risk results statements, expressed company's to from report Securities uncertainties, filed detailed annual

Please management the include such with the metrics A in note the most call use the in recent may SEC. of available the most also that well utilizes our today's press comparable periodic of non-GAAP is as GAAP non-GAAP reconciliation company's filings that metrics to analyze measures to performance. release

I turn like of J.T., call please J.T. to to Kingsway. over Fitzgerald, CEO proceed. would Now the

you, Thank the welcome the for Kingsway afternoon, call earnings of and John. Good quarter to third everybody, XXXX.

saying another the Warranty continuing segment, quarter. expectations. claims strong that performance exited of Extended We our Let our with and me sales momentum quarter and in nice cash we the saw with experience quarter start very that which into largely line had moderation by improving in was heading a solid showed fourth

expectations segment and our KSX Our also improving performed with sequentially EBITDA adjusted to year-over-year.

September, The third sixth our marking acquisition of Solutions quarter in end was highlighted accelerator the by Image our acquisition at our portfolio. of

transaction in the capital a churn, all-cash service margins company largest acquired and roughly managed recurring the one working providers Western organic low Solutions Image an XX% small adjustment plus TTM of EBITDA, million, historical $XX.X growth. transaction. and with strong IT contractual some X.Xx North in is expenses revenue for with impressive We Carolina approximately

million relationships our all business operating $X.X investment asset-light a clearly high-margin adjusted the criteria. customer June XX, Solutions model and in attractive met XX of As Image established XXXX, EBITDA ended a with an of XX-month for months growth business with opportunities, long-term industry service defined

Zanchi the area his by since and the be expanding expanding and transitioned and OIR an their further to of geographically led offerings business CEO include company. scaling its services will of to deal service as such penetration Davide from market, Davide existing the on team and its has eventually the focusing cloud role cybersecurity as his storage.

Image was As Helene. devastated that in may you of area know, Solutions the by middle Hurricane is the

business. running working our IT the Image team recover. revenue to prospects their of Fortunately, tirelessly were and customers one Solutions get region all short-term hardware members providers and continues back first help from safe been families rather rescheduled and being year. was and has up get and to storm later to this the back to to as are its than revenue delayed lost impacts We the installations believe are any

with in Operationally, of XX% revenue quarter the the line Consolidated was compared third $XX.X solid increase largely was our expectations. prior nearly again quarter. million, year to a

Our year consolidated XX% $X.X million, improvement the the was million in a adjusted ago over $X.X EBITDA quarter.

third the Warranty in adjusted the compared was in $X.X an of to the of quarter, million Extended combined quarter the segment, year. $X.X and segment KSX EBITDA For last increase million X% third

which revenue increase gains cost the Digging an in EBITDA third claims $X.X quarter expense Year-to-date and the over period. experienced contracts year increase as is million the increase savings the was compared sales year, ongoing last XX% of over into Adjusted increase is prior in ago ago increased from year year essentially in Claims in that warranty flat and Warranty X.X% than increase XX% in period. prior segment, by up higher offset X.X% claims to initiatives. to an a of slight we lower rose our sale drove Extended cash expense the X.X% of a year, revenue.

claims abated from they quite impact are not inflation the as as improving. While quickly anticipated, have

in to while grow and union We opportunity warranty revenue accelerating business credit and mechanical and profitability. continues also commercial HVAC new businesses. hit has pipeline to levels significant Trinity, union levels our refrigeration IWS' credit growth is of pre-pandemic partners, our currently and opportunity see returned for onboarding X record and

make We rate for that positive more lower cuts any also business on have impact from could interest affordable future our the believe customer. end the interest Fed a as warranty extended financing rates auto

XXXX primarily of KSX of the acquisition In favorable fourth result quarter. segment, comparison in quarter and compared the QX a the Xcelerator due those SPI that year days owned of business the year for revenues quarter, of as or we of late few the year. the increased third of Search exclude our XX% only quarter last as acquisition results to during last DDI ago a to Solutions Image the in

both Within the prior the to to compared Ravix, rates about utilization despite the year. third in a Adjusted year-to-date, managing increasing last team quarter KSX, third and I'll down slight one revenue. each talk for and slightly compared those quarter year businesses. improved decline to was of third on At focuses improve profitability. margins the of in periods Gross EBITDA costs quarter

our venture in the quarter are services. remained slow with companies new market deal funded in being as and fewer the need volume Overall, depressed of

the the starting market from was leads as to for is signs new are this in month October positive solid of a October. year deals team's perspective first favorable marketing the efforts time a the showing over year turned trend prior and generate closed However, opportunity recovery. of

requests. pipeline conditions overhang business were team of Similarly, the persistent The market in the at for a third quarter. challenging again CSuite, staffing an has solid

deal market a with placement equity experiencing slower and deferrals. is team the However, macro uncertainty, private

and are canceled, the a in has the outlook deferred is and and Importantly, headed continue business not healthy the direction we to right strategically. placements being believe

of lower was revenue sales the period, income a expenses. prior was by quarter, and adjusted lower impact G&A of For the EBITDA operating third lower year yet diminished cost the and than

of travel of competitive At of while pressure year. decline also business the SNS, in the prior X% number shifts the magnitude rebuild the on in assignment than the and versus made beginning spite the is our of travel travel half the compared counts, X% more year-over-year current higher caused in has nurse total increased of great we XX% revenue year-over-year, of our year, slightly number quarter the staffing quarter. was nurses but EBITDA roughly down decline of doubled on progress In company, Adjusted The much first XXXX. shifts increased to we since to last saw year. pricing than shift on less

in continues about the the to nurse of staffing bench for and to remain Charles We're positive a capital building technology recruiters. this We and beginning outlook market prospects optimistic for management, a industry, see upgrades the change working on margins, the and focus business. top-notch

in our its fact, used revenue annual pipeline its the the and growth leads revenue, disciplined the provider base months for and software global our SPI, through net qualified expanded increased. that XXXX team, through a of retention Drew has growth. by revenue across revenue Since to expanded ARR, investment for acquisition, At of properties, and metrics year team number first solid is share-owned recurring recruiting X year and customers. also par with decision its ago. we of development year-to-date and just solutions on with with full management the grown the up And solid SPI excellent ARR of added are continued Operational board gross capabilities building XX%, a existing dynamics. ARR are new clients

third with of the DDI, monitoring Lake infrastructure outsourced to associated Salt year-over-year quarter At that and off. to the its with year-to-date. cardiac and grow, quarter, business in provider up provides XX% only operation our been talent grow only single Revenue have but in center beginning the fully year needed XX% in capacity reduces Team risk City made center. to prior not investments pre-acquisition managed operations opened having services, are periods the a over up in also pay continues second which revenue

and quarter down and the opportunities quarters investments the EBITDA pipeline backlog modestly due near has of over growth. that also year onboarded customers midterm periods remain to Adjusted couple will in aforementioned was be of the robust next strong. from prior of in to a DDI new the

business improve the to as We expect scales. profitability

operating of adjusted improved numbers XX-month performance Those the run the on $XX.X to businesses, $XX.X Based million. include our Solutions. million to EBITDA rate Image

to rate those at note, by the run we in end. businesses intended reduction the market rate including currently As XXX Of acquired. negatively warranty capture reinvestment EBITDA the float on adjusted quarter adjusted recently a a quarter point own, months have EBITDA basis yield XX we last for run of impacted our the reminder, roughly is was in

the Bachelor Naval Engineering of He an in joined served targeting Marine School. as experience Harvard really States services attractive Kingsway Last has that Academy operator running. of equity-backed newest private a Rob in terrific Science MBA in and Rob Rob and the our the hit a execution from the has is Rob service investment Business Systems Degree developed to Academy of veterinary ground deployments operational X consolidations week, a previously officer industries. and residence. plumbing solid industries in a and team brings led and the Corps. Casper graduate the HVAC we thesis and from couple has an leadership as announced and Naval holds United

Solutions, actively searching and Rob acquisition Davide of CEO for to addition who the we have With X Image transitioning of are OIRs opportunities. currently

within flow great strategy current our a support have deal growth to a solid acquisitive of segment. pipeline and entrepreneurs our We cohort of Accelerator

third quarter, to management disciplined operational opportunities acquisitions. Image and drove improving the portfolio seeing of promising improved of solid addition the consolidated corporate further our to growth financial with summarize, we're excited remain our strategy To KSX conditions. through and for and committed of market results execution about the We're signs Solutions

turn commentary financials. the to now call some related Kent for the I'll over to additional

Thanks, J.T.

began owns to below well clinic quarter the the the clinic. selling a the VA the medical fourth carrying on disposal recorded discontinued of between tenant our completed In the the assets in plan of during we As line net value sale sell final price is of Lafayette, operations. as sole U.S. the executing The the as August, a Veterans loss operating are one subsidiaries, Administration. which of adjustment we whose XXXX, and a reminder, VA

drawing during million Avidbank a The from form quarter $XX.X cash preferred and the schedule for term primarily shares expenses proceeds million we on was discussed, of acquired to proceeds $XX.X million funded provided JT a $XX.X transaction convertible hand. loan in and our the working of capital and stock million that newly XXX,XXX by with nonrecourse Class of from on a came Solutions debt loan KWH million was financing amortization Kingsway. of existing of adjustment. X-year As plus Image debt The graduated created in in $X.XX B by The and is the issuance financing. $X.XX third transaction cash the

owned wholly the an And company. of a during as we interest Also subsidiary in previously IWS the not accretive we IWS of own. XX% the third that purchase is such, quarter, completed did now

of As of million $XX.X and September at million total and we of at the to compared end debt XX, of XXXX XXXX. $X.X equivalents $X.X cash million of end cash to $XX.X million had the outstanding compared

Our $XX.X loans debt balance is comprised million of and $XX.X subordinated bank million debt. of of

at the draw million an repurchased of March Net purchase as million term a XX, due for XXXX, debt $X.X through acquisition shares aggregate we stock repurchase common increased XXXX, compared Year-to-date, million March of year, the million for as delayed securities the on $XX.X price million loan. and on extended of end revolver to our $X.XX $X million. have of this draw of $XX of a KWH approximately for $X.X X financing program Image well XXXX. of XXX,XXX KWH September year was as In to Solutions draw to the primarily

call now turn open John to any line back the I'll the questions. to over for

Palm. Instructions] with Horowitz Our question from comes Joshua first [Operator

out this most the A getting some there? flywheel? recruitment I getting What couple new look industries you and KSX questions. Are you model, is for attractive are you the guess years easier? into acquisitions like seeing what of multiple as talent to are

Maybe take reverse in I'll order. those Yes.

of terms that of fairly ETA schools approach that have maintain talent we to of In sort business We of the different active campuses programs. acquisition, sort elite a the ways. presence try several the on

internal their their So our and ETA on referrals suspect, best -- ETA but and lunch talent engage attend and do of boards. And might OIRs. learns conferences We as from job you well. as existing is, with clubs post from source our

OIRs networks. their of continues number the we grow, more from as so and higher referrals CEOs to become get quality personal that And

the that think real a a I really flywheel to able to really, And folks KSX think as there yes, talented we're So get in result, interested program. that. element I is

of OIRs, one terms industry encourage industries, we In develop them to each handful of thesis. a our of

you sort kind low industries that And revenue suspect, intensity, they're might market services, high they of asset-light across of about But business on think papers up recurring business end we I like sort capital of the spectrum. being have that. things margin, done in vertical models, white as XX focus on given to software, date. different our

won't for buy manufacturing So I probably business, a think we instance.

to smaller a targeting businesses So subindustries. have to opportunities -- specific it's advantage but That's a where to We're there really focused really say in identify within niche. niches. -- subindustries in like in ability trying the industry, is what have we're the competitive

What to your measure success? is the appropriate frame time

question. great a That's

I acknowledge that we there J-curve with founder. the assessing transition then team that be of starts exiting of think a making always sort that investments a from building and a you new you It will a into when just CEO growth. bit acquired business in and

industry, CEO low kind you to start to the and of through you months that to happen. really in start get things see experience so maybe that And first then develops XX once attribute, high learns got

around has we would assessing kind now the in the built team, how was the is we then team, And doubled at Timi EBITDA mark, X-year So of really business since going million. mark of then business, it's I and learned acquisition in, the EBITDA leaned pricing, would almost right? start that the right business, you he Ravix. into X-year say at TTM development assessed When bought So got optimized his that Ravix acquired it. at $X.X

of momentum year And months so M&A really -- X to and tough after this the get first private starting equity some kind environment. given of a

from comes David Capital. Patinkin question with next The Instructions] [Operator Adam

business progress. nice the continued quarter and on the Congrats

Adam. Thanks,

got of couple All you. questions right. for a I

So bit What categories those release the you're him? a board. that new Can do brought little first, about at? you him? you looking on maybe are about saw I about who do What color you the like share the And like categories? OIR more about what you

Yes.

exactly small we past are very, those And level. a A bit later other at right? X of HBS, spent of in folks. about in indicative old is, very equity-backed XX little So think being operator a we've our business. XX years Rob how strategies. different know X or the roll-up in don't high that a private Rob our successful demonstrates The than someone H's, talked career some but length attributes in at after he I

Coast recently origins in a The was one then up so firm, Alpine, HVAC large in private with XXX care, equity in first veterinary And at rolled interestingly doing more roll-up or vet plumbing. its West hospitals. and search,

maybe platform, inning based there on developed experiences, goal -- expects innings, has the around that those as what interesting Rob's consolidation. out very service-related some equity-backed first would basis use buy of in thesis so very be And Rob And front consolidation. some follow-on industries then would to he do in of the acquisitions that early private a to and a run it be are

out a Got different shift businesses running that on through that's the thank it. you that of but statements force a EBITDA. of bunch and in seems That's and little helpful. DDI hasn't little the updates of tour have bit To the growth maybe about you showing really KSX for great, how the been them really platform. -- in kind meaningful, know But a it you up did stood to I yet to on of terms one -- financial the was

people adding slightly that, In know fact, EBITDA was business that that has I and said you year-on-year. think quickly. very been down I the expanding

where you actually was financials could of to? that in going you business? that the some EBITDA up up that maybe of little bit growth. more has just ahead from the kind been there like showing a So fill business is think start what to out about maybe -- building that in color or when costs And But

we're Yes. sort would inbound. been patients. add don't going dealing of great That that, entirely I have on. this a working insight. the They've yet. all a on. what's exactly to given all, say Great inbound and service, question level -- of of will They that's been we'll first monitoring is But high growth interest force of be the with sales project be

real And safety on focus and and there's quality. so a emphasis

handle volume we we a that adding to perfectly And can't that want sure way. reliable so we aren't make in

to And second those for factors, onboarding business to of a facility. so a operations We availability experience. also goal importantly, so techs the by at the lot different bring looked of and City that of sort EKG trained most advance get opening and probably a And a perfect of monitoring Salt derisk Lake geographies of down in talent. kind up on West them of the on settled was really both good and variety we have of customers then the sort inland

scale new in operations had of the to so so investment of continue add the to these the were in board and that have on we kind to for visibility then bringing our into having. the redundancy and inbound we capacity and more so that we new people, could access the pipeline talent mid-stage we're customers interest given And them the funnel that facility our

bottom we So to can to you start bring profitability our line see customers. now these ought on scale that

it. Got

So operating you sounds going that but like investment bit those do it's is you mean, biz lot -- of you obviously, start and to super least of build investment that of and feel out got to seeing a a you the not of dev behind like be kind it big leverage. lot team at things, eventually a I before little long a

we this quarter, to even seeing quarter. think start the in I ought fourth Yes, operating leverage

just Okay. Great. on question your And is pipeline. last then

was just you KPIs a So How What how that the a I it are little there looking. presidential You've but election. Josh I tracking? got asked OIRs does know it, X are bit seeing? know about feel?

But I in seeing the of that, maybe key but you're pipeline that just terms curious was deals. some would what new now. ahead with -- there know, and there maybe assume I and go that your KPIs away hesitancy I'm So of metrics in that don't

think going monthly measures, we of our Yes. things metrics. that of we the No, right? activity-based we're We KPIs both were I kind of predictive focus kind kind sort are yesterday influenceable through incredible of very do measures and activity. with lead active, on lag of just can we team and that think the lead

are intent goal the with obviously ultimate doing Our lag metrics acquisitions. letters of of

internal top-of-the-funnel we goals. park in with conversation business terms the proprietary our relative of outreach, owners, so out NDA And to are knocking signed, of

and experience in of And so show quarter in costs deal-related We a the some activity fees. did some the that things there's up pipeline. lot through working sort just of SG&A., broken

the working we're It's that do things finding diligence and things. on stuff. So end reason you we due not up closing

we're I would do with hold So to subject of sort to obviously, the to X of continue And X would to X definitely active. in ought to that market XX-month OIRs. any We to expect anticipate able buyouts. serendipitous middle lower period, very we be nature acquisitions

phone the We I'd no floor e-mail. questions James from may have lines. for questions any to Carbonara like the further back he turn via to have

Thank that in Yes, you, came number Sure. e-mail. a on we have operator. do

is current to First And a estimate Why claims. part it And claims claims warranty What's then to X% to from returning that normal the moderating? level? states there's has percentage? question, second when XX% which you do last one on year. a moderated is expense growth

one. moderating, claims I a track was So the we why very macro level. Look, at is think, this first

been year. there's the the over sort line they the for CPI break just especially vehicle change item, it that for last the September, repair, was maintenance, September we've X%. long If and deep time, a but September you but of like in tracking in of out, CPI one and month. not look every tables, And And repair. sort over report service at monthly

XX%, peak its was it range. the year at ago, about think XX% I a in

down. So it's to step continuing

up labor expense not is not the down. Claims technicians parts we've the factor market cars the going also of all to is And Claims driving just last claim was severity, per in think up the absence a qualified just It is and labor as several cost on what of and labor. function fast. seen over years, going of recently. largely then sort until work I

of would always closely that So historically, labor mirroring parts think see I and normal, CPI. we that inflation would kind

that rates speculating. time so but moderate would over And increases labor to in I expect that's just moderate, as

Hurricane is the $X.X delaying in and And says It QX and Image comes Solutions Great. quarterly. the installations? simplifying sorry, in does next annually million one Helene Image Solutions. the What $XXX,XXX -- that $XXX,XXX XXXX expected hardware impact EBITDA in EBITDA on from

mean of any I to providing kind to Yes. want try I guidance. sidestep probably

that I just the installs think remarks we spoke portion equipment in prepared delayed, about the fact the comes gone. revenue that from their of not is

And monthly we portion hardware. businesses focus will come not technology, get in was be IT existing online which is can A of all. back their and desk so revenue, the recurring of and replacement region in service business on able back to big that the facilities impacted those at install as and help contractual

is So the guidance, I pushed of out believe don't that gone. opposed sales think I as thing give to just we to hardware just but that really kind install want and months X

be to always it. next they that And then to private venture into diversify for do likely to market Or opportunities tied tied diversify CSuite, equity? you be see Ravix? And opportunities there the Ravix to always new to are Understood. the Or one volumes away on from verticals? Got A and to market? the likely CSuite. are on same was business

of terms is exposed there CSuite CSuite the would be thesis into original I in venture opportunities cross-sell the acquisition verticals. of exposed. and private of think Ravix Yes. was equity part complementary I historically mean on was historically original of sort kind those to -- services different that the

of so cross-selling verticals. those -- into both sort those of And businesses each other's are

a PE equity a In sort full-time more from but -- accounting, new on not maybe have acute to investment VC capital, there's diversifying away necessity or the fund sophisticated an it's private one, venture a terms like need always of resource. by like of for

CSuite. fractional really it's think placement business obviously, a and and interim the we at good for accounting fit So

Matrix. like strategy, And called so about -- we but this then stepping we like framework the ANSOFF use the back, think when

quadrant of pricing cross-sell. great with that the customers, of acquisition, and a move where that, of to and right? penetration those existing cross-sell upsell the Timi doing those so CSuite optimization, matrix, And verticals is we to X been penetrate And different with job to then right? then new that and we've add focus markets did the start kind ability

think would the verticals a before lot And there's next to which you a thing go so take that move I new harder to of those room just still penetrating to is to on vertical. in do,

think is the I to move exhaust Matrix would so harder before that of execute. to And we want to something fully quadrant we that ANSOFF

Got it.

next optimistic to reiterate one The prospects Okay. here attractive hear and the for business? market the is Can market on dynamics you SNS, glad the for and and it's business. outlook those the are about you SNS of

just going nursing look in expanding in you demographic of number churn for alone number the Yes. of there supply get high health of big a nurses of of the side, think as an U.S. schools, let and nurses level, function and demand, demographic shortage even of out trends. not school, resolved to that attractive On that workforce, people at refill long-term, care is can services as dynamics at macro, kind because soon and the demand the aging they're I I the if in supply Like very to anytime nursing the tell. acute meet I far the picture right? a enough are persistent mean doesn't

sort that's attractive the So that. of dynamic of

had recently, boom nurses. pandemic obviously, of for Now a more lot that big of sort we a demand

-- travel businesses also new from get And the those times. kind lot of labor. systems put on pressure into enter of staffing the a had cost market on the of side. rushed lot hospitals hospital during contingent And And a boom market those upstart to you so the that

probably large to there's the or so trying in industry, to XX they're being and price. them entrants XX of of XX some pressing the those of sort ultimately, out of back kind using, And levels, seen the months, And travel away. been amount also hospitals of new to will a of some boundary negotiators the limit XX the tough into And you've sorting months out on staffing contingent or market. go sort pushing last for sorting labor minimize on

is through to around take turned those business I going in out the this the and up sorting year-over-year Travel the feel trends demand, long-term And of of sort quarter. just we of we're think I positioned XX% So corner. well and quarter, really in supply secular kind like shifts finally were the advantage period.

little that is per seeing in some cold business Our season. was of that down and hospital kind driven, and census we're come diem a of but bit, back flu

So and I professionalizing some think a great It think things poised pen out. a Charles done business hired the has tech that opportunity of in take it. job paper a sort and whole bought once It's settle stack. put good we new was when I He's well business. to advantage recruiters of

on so sales one the hires? congrats possibly do growth or acquisitions more you to on well? Excellent. tuck-in it continue What The comes growing says in or in SPI, focus on and next organic it's SPI. steps you take the Do when business

Yes.

back there, yes on the type get organic call Drew's growing had when focus a kind but than a announce as customers was We acquisition. of but that, And strategy, we There growth. If had exactly space did the is company we And provides the strategy. opportunity you to -- why software of investor white either/or, we first really and market part adoption. is add felt faster some its we anyone to was to to the this -- GDP. call in like which and would on go it remember, acquisition, not reason no the an

really right on really focused organically. for so growing he's And now,

we getting solutions, and was always has. created developed that of that muscle could those over kind once vertical he part focused software the that market really started, XX%, -- of a strategy Drew until running retention But to and in grown retention of unless happy really just of ARR company But thesis, exhaust holding we market and gross mid-XXs, businesses. of the the very small practices his sort acquisitions to on he's doing the And done. he's that yes we're he more net sort XXX% growing use software business the got vertical built, business, getting started. the vertical on and well what market and explore just He's with with

possibly next and in expansion? it would in you self-fund says, the for one debt expansion And use on Terrific. your comes DDI, or the always future

We acquisition used debt.

and focused That's we the creation of as they're have, of down most and levers to that light got of fairly And online. so right? of So volume we incremental lean businesses, with don't case coming that on cash case the grow. paying headcount of In capital open one is value lot a generally require we're in the right? these into to anticipation facility debt, a DDI, new

be But would the be the that conversion and flow form right? days, If which longer to like cash paying pay a customers the cash than are working I capital. and your fund to would growth, mostly plan your to working taking suppliers, delever natural investment use of think capital, here is be right, in you there with you your cycle in XX growth, will

of And cash to the think sort that of grow. of source only use rather so would I that, be --

here. couple last And Great.

First is OIRs.

Aside is other from Casper, brand who your the how now? with OIRs been new, have Rob long firm

Yes.

May Hearne joined Peter year. in of us last So

Paul months joined then Miles the us months. year. so year, this XX, beginning or in at September So And Vidal that's XX joined of about last of us XX so.

got of period, if sequence of where kind gestation you we are they So here will. a their nice in and OIRs

and guys kind hopefully that's a of to so that new match bring least kind thing kind acquisitions, goal. the cadence board of on And continue at these just with quarter of

what VA. just last the And you one the respect or the reiterate was financial VA? Great. Can with on to impact was the share

one? Kent, do that want you to take

out got about of We cash Yes. that $X of sale. million

No P&L impact?

be shown operations. P&L discontinued would in

pass over to operator. e-mail. the That concludes I'll back questions Great. it from you,

Thank you may we questions today's time. from conclude conference the This phone your have does for at Thank and no you this call, you participation. lines. -- further disconnect lines your