Piper Sandler Companies (PIPR) 30 Jul 222022 Q2 Earnings call transcript

Good morning and welcome to the Piper Sandler Companies conference call to discuss the Financial Results for the Second Quarter of 2022. [Operator Instructions] The company has asked that I remind you that statements on this call are not historical or current facts, including statements about beliefs and expectations are forward-looking statements that involve inherent risks and uncertainties. Factors that could cause actual results to differ materially from those anticipated are identified in the company’s earnings release and reports on file with the SEC, which are available on the company’s website at pipersandler.com and on the SEC website at sec.gov. This call will also include statements regarding certain non-GAAP financial measures. The non-GAAP measures should be considered in addition to and not a substitute for measures of financial performance prepared in accordance with GAAP. company’s non-GAAP issued most financial GAAP the reconciliation for directly to measures. these of measures refer earnings today release a comparable Please to the the the release website. Relations available earnings and on The page the is of company’s SEC website at Investor

reminder, is begin being your call to the now like recorded. may this call a Abraham, to you Mr. And call. over turn Chad As I’d Abraham. Mr.

our President; CFO. us. joining Good morning and here Deb Tim Schoneman, you Carter, and I’m our with for thank

We our questions. open firm to the through accelerate to will the delivered up growth. and we focus acquisitions and long-term during then go expand and remarks prepared of our performance call continue The for in quarter, areas invest solid

reflecting model. diversified the benefits Our proved business of backdrop, business resilient against challenging a a

is and continuing scale to product our through advisory Our around share businesses add Financing cycles. Brokerage growing through as business in expansion well strategy sector focused our as market and increasing and market

M&A focus and Stamford existing serve clients on highly internationally. a with am position in Partners, June, remains and on execute beverage. and strategy. our point, European food strong complementary environment that our macro food to and in ability to our boutique market acquisition is of To franchise our on our beverage about to in consumer confident uncertain, we the ability and the increase growth While I Stamford a our will both closed domestically

a talent will adds The we enhanced of our announced acquisition fourth our well clients expanding record scale tech to banking new basis. practice brand a with reaching the July the roughly team both enhances pending close corporate X, practice. investment credentials expected our market sectors, and and firm. DBO exceptional professionals by The as over world. market-leading Partners, as and more XX technology of addition, cap In is technology financial XXXX double quarter large adding strong on to and of acquisition our share. combined on the track and brings working acquisition clients sponsor DBO will The a elevate DBO to franchise our in our during

private In sponsor offer turn, practice provide our advisory In with we our DBO capability business of grow equity business financial business. European DBO previously, as partner in capital our clients articulated consistent expand do to Both the our DBO’s well provides equity with transactions with. connectivity an the additional strategic M&A clients. to access goals technology markets further will to we valuable debt with addition, are general provide capabilities as and we’ve to us hundreds namely and

our on in Focusing results. financial

quarter net the second of we million, margin revenues a adjusted diluted of XX.X% XXXX, EPS generated of adjusted operating $X.XX. During $XXX and

XX.X% $XXX a During operating half revenues recorded and we of of diluted the first of $X.XX. adjusted million, EPS net margin adjusted XXXX,

Although delivered the performance compared challenging prior the and environment. given lower to solid macroeconomic record year period, complicated we

banks the XXXX. M&A during year the ago declined exceptional delayed review impacted volatility group, U.S. Financial announced both second closings, during Corporate closed was the Performance number services. largest of XXXX, and me which remain advisory number the quarter M&A half on in and on of quarter. and transactions revenues three quarter, Banking five advised with we resulted adviser based results. beginning Market Services the deals quarter one quarter of business, our by first let of bank Next, transaction of from XX% sequentially during U.S. $XXX the during million XX% Investment our QX the second Advisory has led that the the which to

M&A half the interest has the quarter both this the team was $X transactions strong first for number in quarter. More Piper billion our second announced results been In number on of and U.S. during capitalizing and activity renewed broadly, the power during driving of Sandler based under on increased the the year. deals two addition, energy adviser and industry,

Our pipelines advisory across verticals remain strong.

current our we that a the macroeconomic months. not experienced XX in conditions of level outlook past have However, uncertainty have in introduced

began the the more experience slipping that During half limited deals this second die. deal the of expect of and of to half XXXX. we to quarter, number a is lines Longer continue time we deals year a into in trend second

during Turning second to million financing of generated $XX we the revenues corporate financing, quarter.

improved as services capital preferred equity companies. basis several Although we largely XX raises, the for on debt a equity financial well as underwrote we shut remained markets deals and down, as sequential capital

we of diversified managing headcount, we We industrials Managing managing restructuring strengthen as a services well technology XXth from Director growth net on XXX and directors, at Turning expanded quarter our had representing added investment active our to perspective an to director our MDs and finished the X a quarter as as quarter practice banking recruiting consecutive groups. basis.

had success this franchise drive strengthening term, But short we results past, our current In conditions, platform. term market for remains in As the challenging have have can growing to experienced our have on during the long results. as we we the shareholders. communicated, more impact focus our

in success talent both efforts our our resonate of continue the and momentum the to priorities. and own be recruiting marketplace continue development Our to

in brokerage With remains long-term execute year competitive turn position the predict, growth. will While call I public discuss to to to plan, that, half difficult businesses. I our and ability our confident finance over Deb our the our second of strengthen to achieve and the remain

and approximately and was $XX basis. a will on financing of quarter in generated The up relative both activity quarter, have specialty outflows year-over-year municipal and public our as made Thanks, refinancing first the year on public of nominal solid share $XXX issuance. space the down activity, our Chad. across We Interest with market update in the Overall XX% generated less governmental as begin governmental We increased Higher market interest business. in volatility gained our municipal ago. rates interest and XX% rate fund we’ve contributed and finance performance during which benefits. billion, rate well north pricing from slightly more strong from the businesses drive challenging. issuance distributing to I resulted during continues specialty sectors, volatility finance deals revenues, million of an reflecting decline quarter. year-to-date diversification to a business, absolute as the

in are and strong However, strong difficult allowing capabilities our the results for expertise marketplace distribution in a market.

Looking ahead, be expect of similar half XXXX the second half. to we the first to

conditions of specialty of Our market is for could we execution pipeline. experience if backlog sector good, and financings upside this allow

continued elevated equity the to markets and Equity volumes quarter. Turning to volatility second brokerage. during experience

full benefiting Macro Our business brokerage quarterly a equity quarter from on Cornerstone revenues of $XX platform. million, of generated record our

analysts collaboration bringing Cornerstone, cross-sell our view a deepen one account macro analysts relationships. clients. fundamental of see With The and to and broadest to strong on We Street, are seeing opportunity from we coverages differentiated between our client our the

we are We also equity services investments Given believe offset approximately market the the XX% be our gains markets made fee for drive strength year-to-date, expect we share to the down headwinds. will enhanced of these down. XXXX and and trading research have and pool platform

fourth quarter seeing perspective, early share. enhanced which to of market outlook typical an votes, the summer the slowdown rebound third signs are market and ranking during an to From impressive client of penetration, we quarter. XXXX and clients expect during We increase experience is the relevance ultimately indicator of

fixed to income turning business. our Lastly,

relative compared XXXX, The interest the of solid was of as in higher market as this down redemptions secondary impact the For as quarter monetary to during income the and municipal activity first well the digested heightening values the outlook. economic market the inflation, second rates clients and year. revenues yields our policy centric of Client generated of experienced asset among volatile fixed participants second we quarter modestly quarter strongest $XX drove municipal million, class as fund activity.

Our was fixed depository clients the income clients market and business, The both more ability strengthens across deliver during volatility muted of sidelines. consistent moved our client diversification environments. quarter products, activity our to results to as the in

results over call update to provide will an I Now use. and financial turn to our review capital on Tim the

Deb. Thanks,

first As businesses. corporate performances comments non-GAAP the Net experienced of of well X% institutional as sequential revenues decline We first financial $XXX revenues net due a financing million from solid municipal quarter on from the improved half for driven our half decreased XX% decreased the our from strong reminder, revenues we the environments. year, lower adjusted of over generated platform to lower the million, Partially be brokerage historically and offsetting diversity financing by demonstrate business. risk second down benefited record as which low due impacted activity. M&A corporate transaction and prior advisory headwinds few of strong timing of and revenues across from totaled $XXX to as XXXX markets years quarter Net last in and durability will advisory, investments to results. most have made franchise across revenues The the first the the revenues the adversely for activity. year revenues XXXX, market of XXXX financing last quarter of our my Net equity of focused our deal market in our capital advisory we activity. continue exceptionally

lower focus for operating a resulting the revenues and continued compensation compensation second a year-to-date to on expenses to ratio Turning XXXX, from higher On basis was our ratio and quarter XX quarter, margin, XX.X%. in platform. our sequential the the investing XX.X% was of points basis, compared

to from quarter relative quarter for in Based of year. on as manage on we were inflationary opportunities, second on growth The level resulted mix year compared absolute on travel revenue impacts or expect XX% the last current of the compensation focused to an quarters $XX prior to Non-compensation expenses, reimbursed investments the pipeline to of and increase for we XXXX, full continue excluding while ratio to compensation levels, first quarter We a increase be XXXX the acceleration business this of activity and above considering primarily overall travel million, slightly growth. expenses costs. X% outlook basis. near and our an and second deal compared our of remain

non-compensation within incurred associated to with expect hiring higher With be these near pre-pandemic increased levels returning to going forward. also professional recruiting and levels, we investment fees We banking. costs travel

of an generated second quarter, the million operating of $XX XX.X%. During we operating income and margin

which half income XX.X%. of totaled $XXX million, first margin in resulted an the of XXXX, For operating operating

grant the Our date included and than at $X first half million benefit the was for to second vesting XX.X% restricted XXXX the adjusted a higher rate tax year, prices quarter for price. XX.X% of which of related stock tax the

Excluding XX.X%. the for adjusted this was rate tax the half of first tax benefit, XXXX

be range to of adjusted the excluding our tax targeted We continue vestings. stock from our XX%, full impact to rate year expect will XX% within

$X.XX. the During of generated of $XX of and million XXXX, EPS diluted we quarter second income net

For million and $X.XX. XXXX, net of was half the totaled EPS diluted first income $XXX

on finish an me update Let capital. with

of significant XXX,XXX of first XXXX. And returns. We’ve $XX dividends shareholder shareholders has drive deploy Our generated approximately million we common that strong returned quarter absolute through million the cash stock to year, repurchased during buybacks have this to or continue the an to of for and paid. performance $XXX aggregate second half we shares of

per on Board to quarterly on to of record the August dividend today, shareholders share cash approved addition, In of September as a be X of close the $X.XX of XX. paid business

deploying be successful and acquisitions half first and during been Stamford produce capital Partners. with diversification results. during the Macro Cornerstone business DBO year we tough We half to with pleased platform despite our perspective. active durability expected is of also pending the from first XXXX an to and up markets The solid our model of through of a XXXX results acquisition are close have fourth the our overall, quarter, shaping the continued of investment Partners of to And

questions. to ability long-term. up continue can deliver progress to now strategy shareholder open confident the grow value on our our and remain in We the and long-term Thanks, for we and over call growth make

take Instructions] Please first James will Thank And our question Yaro Goldman ahead. you. [Operator with we Sachs. from go

thanks good for just the morning, corporate with questions. everyone. if my financing. Maybe Hey, And start I taking

build number you results in sort in And year? Maybe any the this off green the of up ECM think you of trends issuance, you you You think level saw, shoots? particular, reflects could were than broader talk half the think, stronger-than-expected this the about this quarter-on-quarter I and whether back could and the appear whether industry. of better just quarter

operating James. Yes. Thanks, still think a we’re just really it’s QX. levels. really, at mean, really low low levels I function actually probably in of I frankly,

got than say. ECM is us, would low corporate did slated got we DCM We’ve few financing some that – QX. line, in in of the And Obviously, handful for That’s for levels. QX. done have done, some quite did financial a two ECM, August. others deals still bit corporate stretches And For more definitely We business sort or financing And well, financing we services. got we we’ve line we things. a had financing a true. did a But line. this we it’s we healthcare our month we Today, of still in also where did pretty primarily healthcare this the then as week. got in I

relative pick So very, conversations for capital raise the and have still We I pace. levels. the that a very low business, would ECM people’s a specifically helps. we’re mean And and expect to think quite stocks and pick seeing up urgency our bounced it’s to ability XBI low so this getting then to at definitely think And relative Biotech yes, the to up, just healthcare I is shoots, sort I obviously, still QX, I green wait of to the tougher. bit, say

really levels certainly levels, muted in pretty could early So be low we better than the expect still year. the but

lot the me somewhat little talked than I first second Or terms environment guidance. I stronger of encouraging. a challenging? Maybe advisory this has half your the makes just become in in advisory more still be bit missed remarks, the Okay. last quarter in half. could know you That but your sense, you side being on to the of a do And that about touch true? if expect I prepared just forgive about

as an of better it’s half. we And Yes. closer our in April, the in some the X much just first look think call given end is But pickup how things last do think company, the we and say, half June June of things obviously, been than could and you for changed did if advisory, to absolutely tough I certainly, and I tougher. second see May would just at I our May got and flat. history at environment see have years, will XX a July QX. where last and you

quick sense. then of just Okay. That lot one makes business. here And on a restructuring just last one the

of Maybe continued talk restructuring liability from you relative is that grow sort the if here? quarter. in on is about activity difference this to there side traditional obviously outlook You’ve management? could And the then what to any just

so still Yes. a to base, we’re engagements. for a more really reminder off low And for even is of half, new are definitely industry low starting see coming just the again, pretty though volume, we’re us first levels more

added see more a managing in a pickup We’ve will We couple revenue. directors.

build to trying still We’re the team.

becomes we’ve small. and us, mix we’re to point, And pickup definitely of where advisory some about seen So this line at is relatively a still a more But this excited meaningful revenues. headed. total for as it’s a

taking questions. Okay, makes so for sense. Thanks much my

from We Securities. will next ahead. take JMP our Please go with question Devin Ryan

everyone. morning, are good you guys How Hey, doing?

Devin. good, Hey,

the parsed Maybe of through to of advisory couple back Good. a outlook, M&A the the just commentary on just kind items here. coming of some

sounds good backlog in very the hand, one on like So shape. it’s

On hearing just the are is we’re more lot deals other hand, and there slow, uncertainty, of that a everyone. moving from kind

financing wide at you trying you reverse are to macro, it’s sense you the create think to Is sellers? bid-ask spread theme? just like a of creating how and bit going obviously, Like Are of Because or – talk I’m what inflect maybe about the So that dynamic. becoming an here. to maybe dislocation? to get just just between we it some buyers little elongation needs a far the kind I But uncertainty that’s issue? the to in think point, do think in seeing an industry that’s still a and change

of moment to whether pain the a still maybe today? very slowing or is so in think And just trying the uncertain down we’re about kind

combination would few I Yes. really a say a of things. it’s

I mean, differently. bit measures I mean a everybody it backlog right. little pipeline, definitely You’re

signed, letters downturns, to on, have relative you look at other working still that. that deals we’re yes, things potential, good engagement about very long. we feel The If is just list

they today, We more done. slower. are not have a the wonder But they are longer, are if many things going transactions. April of tracking lot they of we They well, to died, from of closing, are slower, thought a kind were lot have that get to you but

things. So I combination think a it’s of

it’s think pricing to to And valuation. shut leverage? a not that in less but private the difficult. you side, it’s, adjust impacts case, turn takes get we can a equity and quite it valuation, a bit And of just but I it’s while definitely down, one and more little isn’t for financing on rates, that sellers

my was a reaction and private big So at we own of weeks a And of sort view lot equity see at is this few I certainly, event, ago. dry of equity will still private equity. least there months. of had is another with a private of funds, mixed couple senior you capital managing partners a lots

hey, told be are on to doing transactions. had Some Others are see our take sort in of hands, might sort than of on are but what sitting other trying me, kind advantage looking, value-oriented of their hands them happens. of they we they sitting do of the more us transactions, looking people until of Others third not to waiting been past.

of these just less that long it’s past, haven’t – time. leads to In crazy just all the So activity. lasted stretches

expect not have up, we like we visibility but into pick certainly it’s to So perfect when.

guys on to That’s as thanks. a follow-up And already very Stamford Stamford you helpful. well. I and see in liquidity was advisory Tim, DBO, recently DBO front, side? capital mentioned, is here should which and the doing which and know thinking for, active then investment on Okay, allocation, for position been, accounting just think the closed we very the good How even then about about have as capital you maybe

for capacity buybacks? that for what priority what getting at expectation And a is buy what’s cheaper you M&A either is as stock for flipside, capacity to the your the announced in beyond like? really what And assuming looks So well? already that lower your just I’m or at or kind maybe can lot cheaper of more given is moment, things I’m do maybe on market M&A there or the then is

I excited development we able to about be are more on active fact yes, Devin, think the side. corporate Yes, the we’ve been that

how able the XX% maybe I along one to is think lines of of those we’re I and XX%. to generate range highlight piece to in terms our dividend would maybe capacity related

lower end been to that the so, maybe of I on more active or the higher corporate may talked at range, we’ve we’ve last the bring we development, but think that about when we’re end. year down

forward capacity lower So some at that provide we range. of does that if end the pay

at levels we we’re to cash that think continue generate continue we obviously, to, the will at deploy. I that can

be to So there do things. capacity will continue to some

continue also think October, ahead will We that’s of XXX. tranche next we’ve note due here, to the the got second at

try talked be around want of piece, then in active So as of been as given prioritize but to million terms over well. year continuing this I about And we in mean, opportunistic, bit have that the might measured more pace to mindful corporate on little to We’ve and almost of development. terms to always to be back of first we and more a buybacks, little the be forward we go continuing here, want again, last our X.X uncertainty maybe bit the a bought shares. half just buybacks we

of the I to is of sort that platform. always to continue our think grow list top

in we own of to deploy we that grow I the Devin, the in buyback still increased about top the the haven’t over capital need special, we would line Yes. any several capital. it, we add, And have of operate sort – kind acquisitions, years, I mean as our and use and all last we as investing think need for business. regular I really these of dividend, them to the always tools, we’ve just mean,

the end the of will down payout the some we we think the because a Tim for year, it on it’s need used of it tools at still, capital. for we likely lean continue to buyback. frankly, with lower work. And here, of matter Cornerstone, putting to cash be Stamford, those I will ratio, will, but this we So, well, DBO all to said deploy And stock

Yes.

Okay. Terrific. deal closes? coming with directors And how that then in are many once managing DBO

This more, big sort talked excited in when energy keeps to our high-quality with that. of have healthcare, opportunity think everybody the recruit team really Seven. jump mean about we start, place and a Yes, I probably tech to undersized priority is add market. I kind the for we of the is strategic have the are a us top team. we relative me to financials, asking DBO, real team that in

added seven excited partners XX M&A going California, we it’s senior So, team. our about tech to practice. total pretty to And what the to do people in are over we

Alright. Thanks Great. I leave everyone. there. it will

And with we question Research. Chubak next Wolfe from Please our ahead. go take will Steven

guys. is Steven. Hi, good This O’Brien Brendan in morning filling for

Brendan. Hi

rates M&A the default be half timeline in obviously, dialogues of last less we but also healthy one first have longer will to that results So, times given go generating within view in potentially obviously, time, into the cash, a a the more elevated on How strong Like all coming recession, get same are anticipate to rates debt and even point? institutions? activity completion. stress. bank do dramatically M&A the hand, appear in need group, first bank past, lows to your they some we at do more willing financial at be slow how historical deals transact they seen But sheets advisory been from the And if for you the generate impact scale? this at they will tends moment. of likely higher with year not the do on piece, balance those sense remain given But have to you your

I strong the opening had would half first a your say commentary true. financial really is in very Yes. services. We

$XXX the of of but for it’s Some announcements million, the have $XXX of deals. for couple sort that in good market, related long seen deals the mostly deal times and pretty months, us the is depository to we last larger smaller Frankly, of some the some lead million. of

the deals frankly, We good. deals, haven’t seen of larger been a lot pace pretty but the has of

question the market pace deal is feel changed. good we I So, has in that. no about larger There think

of of transaction. the tale would cities the two the commentary is say right. So, size of on your it’s depending But sort I

quite stocks in time, are For And some diversified year, business, non-depository we slow of insurance, say transactions. certain things we I in some our our are it. This pickup should that also will are, where rates really again are business. where financial a for positive. have be the folks, the would seeing doing But then asset over we services good of management,

So, since we few really ago, been closed years good for a growth Sandler us. that’s area a

Great on Thank Great. fixed to there some relative finance income, both the peers. of you. then the on much color. the business, And better in brokerage and your results public your came

I you that some to comments maybe that so factors you And you expect be greater year I And this led that about of your hoping unpack was the second would to based similar. expect continue could resiliency. guess your the the progresses? idiosyncratic on half to as business

You seasonal but anticipating any typical are you build, not that color is could great. there provide

sure. Yes,

the really out diversification say with we geographically have the business, side, our that I across would me breadth U.S., sectors built also it. side only just public municipal but in it’s the of the specialty Let that finance the of of financing, time. governmental over not start the

was that a often, from environments, give to $XXX at that business. been raised right similar us to flat I if and So, issuance, more to if of our first a to look right refinancing year, about half year, performing similar that perspective amount very is where is stayed we look in and year to noted overall that – at And money the balanced last we are half probably see will the second the different the certain which is like has you down. issuance, refinancing pretty of and about probably a in sort the double feel first a commentary going it as you of of half. outlook, see last the is of just And levels and the better now, now, tends business think some stayed our as that new billion we strong parts

behind market of sort our the there. context statements that’s So,

we also to been to really stability I we some fixed alluded pipeline, a in it, as And said, not take move the our will comments, to income base client be of of the the our It’s products. I the different particularly actual strong brokerage muni much there high-yield side a specialty pipeline. and some assets breadth that of if that’s If Now in that of of our sectors. story. market, the advantage in have ability see services,

for saw more banks example, strength being strong, but spoke the were rising, those of from also as active investors public So, asset saw lot about assets short we the management, and clients. we as depositories, end and a less in is curve even municipal-centric the entities I but activity those

are So, stability. that of the breadth we helps the to products would the that do I that trading drive of our able clients. some only gives and it’s also that say from and that product, standpoint And then with not products queues derivatives loan trading

overall, diversification those businesses. both message is just across say the I would So, of

both And just equity the Cornerstone also it the I would side, yes, Yes. strong was And platform quarter had just seeing on relative on income really headed into very bit. a would full basis results, of agree we built. both those quarter, with sort obviously, say July, after have quarter. add I fixed of a we slowed but a and equities really strong everybody’s a have businesses

Some of the months. that summer is just

we them. slower So, slightly for QX both expect certainly of

for the Thanks color Great. guys.

Mike Securities. question ahead. from take with We Please Northland Grondahl [Operator next Instructions] our go will

relative the backlog a of the for get strong feel bit of it XX is would Hey. little Is it Thanks comparable Hey that am of clarity to or basis. comment. sort like on backlog trying to XX% guys. say on a relative just last months? M&A in How you a Chad, I your backlog.

of close at terms say of old, letters signed year. it super sort number would of that darn I last letters they where to in it’s pretty are aren’t actionable, active Yes, of engagements, periods was

smaller. of sizes of on are equity certain sort get getting smaller, that big private some the as much. is some not of deals, buyer we the The of ratchets into on valuation maybe final Now bidders deal are list list you bidders list, processes where

see as much quite don’t stretch. You valuation

can So, will the then the closing. deal, party close the at transact, question will a client there be of it’s you

it’s number can the just will situations of accept. situations. about not number we It’s So, the client get of closed about that the

for you business, How was more same? then July the of encouraging was And it. Got kind it characterize overall of – a would little the July? or

slower July healthcare to of I relative the income. thing clients of stocks of market the an August should businesses. slower transactions little need in much before same in fixed with we seen ECM, said, talking the only spikes. – are little see of a very with I Day. more But to Like equities, that even starting see would was to in actually and play same. the about of either backlog healthcare little uptick most have Probably more say is Advisory of a actually some shoots volume take sort the in green to that We Labor out. need the post advantage interest of we you in or we bit a in

So, much of same. I July the very would say more was

is that expense continues always just careful on even as today? critically for you side. And tougher more think starting of guys weigh, this maybe the Fair. on environment to guys kind lastly to Are of then of are where you the Kind mentality sort expenses, Tim, on

Yes. right. think you I Mike, are

have about are seen expenses sort front certainly important get pretty side. to the always We and those think clients Yes, have that’s increase been in those. thinking in of travel meetings. consistent terms of managing of back We face-to-face and on we this

have that. we So, encouraged

thing which had of expenses a hiring, and just in terms recruiting is additional longer also some have perspective. good term a from We also

normalized back like travel think be more pre-pandemic on the we front, levels we now that. I feel on may to

in non-comps I these the have what could we be as QX. in seen of in my expect, sort range that that we comments noted So, guess

yes, I how outlook. have We at go from to I I wouldn’t outlook, that forward think try say to all continue we decisions based margin we we do, as on we doing time, different what will think make as current and typically in mean is about non-comp the anything perspective that – the that are here, the impact But a past. than does

on obviously, focused we And would long-term just Yes. Mike, I are growth. add,

spending that’s a seeing to to we am I Revenues mean kind encouraged conscious. relative quite to back picked other spending. are clients of production are related very comes it So, last obviously, clients, and mean when from bit I I up that, down very year. and

it. So, are very focused on we

guys. Great. Thanks a lot

I questions are to the closing there back remarks. Mr. time. turn appears this any It to Abraham would at further conference for like no additional or

on great Okay. third Thank you, forward quarter updating you. operator, October. a look and our day. you everyone. thanks Have end We Thank results of to

your today’s Thank for this call. And concludes you participation.

may now You disconnect.