Huron Consulting (HURN) 27 Jul 232023 Q2 Earnings call transcript

Good afternoon. And welcome to Huron Consulting Group's webcast to discuss the financial results for the Second Quarter of 2023. [Operator Instructions] As a reminder, this conference call is being recorded.

Before we begin, I would like to point all of you to the disclosure at the end of the company's news release for information about any forward-looking statements that may be made or discussed on this call. The news release is posted on Huron's website. along of filings subjects factors this webcast. information for the discussed that afternoon's disclosure a that review with with the SEC in Please may impact measures. discussing more The one will be non-GAAP company financial or

for Please look at most including the earnings release comparable SEC, GAAP required the to all Huron's by and disclosures reconciliations of on the website the numbers.

Mr. ahead. and turn Mark Hussey, And to President Huron now over of I go the would call Hussey, Consulting Group. like Executive Officer please to Chief

Good to me Quarter are our Financial welcome afternoon, Earnings John XXXX Ronnie Officer. and Chief Second and Group's Consulting Huron our Call. Dail, today With Operating Officer; Chief Kelly,

the revenues consistent basis to segments grew year compared strategy. and of Revenues with EBITDA same the the last the our strong drive both same of XXXX, in increased growth in demand three the continue capabilities. period XX% half second of while each grew prior company reflective first ‘XX. operating our over in first the quarter XX% over of the with period half consulting XXX managed margin, our to We expanding digital XXXX services quarter growth ongoing margin in organic for operating Adjusted and for strength and points our and XXXX, of year, wide

As we make solid progress toward a profitability. goal of expanding companywide

to in the ability objectives a in XXXX at our the at Investor these shared pleased we are financial performances And remain our ahead. We confident outpaced that our years Day. goals deliver above

the in was performance revenues grew demand year the In financial into driven second for advisory performance. quarter by healthcare some quarter and quarter. revenues the strong segment, prior insights share second digital over additional in our now The increase improvement, our I'll offerings. XX% quarter

and hospitals systems and collectively their pressures increased near in and experienced and to operating achieve many the organizations them and going the leading cost losses. the these are term and ongoing waned, net so challenges Healthcare a pressures doing shortages, is and operational cases, funding in matter broader organizations Many goals. markets, workforce competitive addressing labor supplies, strategic stabilize state pandemic enables physicians face margin in and have challenges. financial to health performance federal increased focused on has their As relief of to best

The our portfolio implement immediate our balanced new shifting expanded improvements industry for and growth and have also strategies and to for in more centered as turn diversification our the both choice healthcare immediate highlights market opportunities mindset partner solidify we offerings. around healthcare long needs the to -term need both create address In is also consumer. more to of clients current long-term financial the and longer to improvements, position broadened to our designing to client's address of significantly responding portfolio term We've industry. our and challenges strengthened seeking the in in which expertise expanded our and capabilities addressable while

identify to central me the significant working These across chain, millions and systems help cycle, operations, sometimes of and we of operating facing ranging life optimization. transform strengths with as their I play We're performance core revenue hundreds improvement, and exact models like to and just couple supply our dollars. financial workforce this a these of in to their capabilities current areas Opportunities bring clinical health with need examples. Let such as across sustainable improvement pressures noted. into systems

economics. fundamentally digital financial redesign and longer innovation, strategic care in care To driving order are offerings gains, support models and addition our near-term support sustained the the on strengthen focused to goals. their and to bring operating improvement delivery to clients and advisory growth the together second objective, term system's underlying efficiency also In transformation, to our we clients driving strategy

the a stems differentiation new set our of work of possible at of the operating assemble to model. competitive capabilities, and And healthcare a heart deliver our that's deploy across to solution to from collaboratively broad talented a experts and best ability integrated team for Our clients.

work using provided, its to improve and goals, drive processing quiet different example conjunction very implementing second and operations. digital and And engagement operational and first AI and in with challenges. an Using example our healthcare address performance processes. benefit is expertise, optimize to than term long our in center of AI efficiency which in scope, generative term these to financial our examples near I call and salesforce is it's contacts the to implementation The sustained team to in automate a generative healthcare drive we're in a

Our together address a us enable and broad clients. concerns offerings to deep that expertise of strategic healthcare of our design and range healthcare digital operational capabilities

now segment XX% broad driven quarter, by education, the the revenues Turning to across the XXXX, in quarter our all of grew in offerings education year prior segment. second over demand based

XX% and education in year strategy both improved quarter, and offerings offerings our and operations well. research to perform continue the prior digital over Our

that some near While and tuition outlook, business XX institutions and confident a result as reduce largely universities term increasing the colleges revenues. enrollment stability, financial financial in next revenue, over concerns declines, their have of their feel officers expense college is net years, an in over faster base their

strong long term not goals. establishing Similar strategic a long-term challenges, while focused foundation near factors improvements they're healthcare, achieve sustainable establishing on confluence are need strategies. near clients the their education also drive highlights Our these term of to committed to term to to only their the

Again, of clients. of the use couple education on have that me a to higher their expertise to set highlight examples industry the capabilities impact let a broad deep

the by of example university execution engaged strategic plan. support first been we've to their a a As

financial invest identify priority and them that will drive plan. to capacity to operational high and the collaborating growth, are opportunities within We areas the with to improvements create in

at is administration, more. to areas. scope call technology the these spending in bring Our me this life, facilities, university of To and research broad, let three

a data analytics executing with strategy strategy find institution of helping goal value across the Within a and insights and to administrative driving institution. technology for the this within research the and research a greater entire operations enterprise, function we're

greater affairs empower to on academic goals. growth we're the to leaders finally, and And data, support institution's capabilities with offerings the working with with access new together academic to academic advising units,

and done their intercollegiate clients, to teams a job into to program. new operations areas athletics efforts their with additional have strategy, opportunities the Our including research leading great expand collaborating of university,

campus digital positive driven this advantage. Huron as to support establish second to competitive and was execute to were example students and focused foundation technology institution. process engaging Our consulting power experience growth agile enabling help two and these organization across future operational a highlights create multi the combined offerings. transformation clients the of digital a a to seeking hired on And an enabled

expertise helping Together with in strong future will Our their help challenging strategy industry and and reputation deep all address for institutions nimble landscape ability breadth faculty lay a foundation their in strategic and to strong recruit offerings solidify students, achieve collaborating and an that the new to competitive our of operations, research and to them our digital our foundation university, create education. agile higher flexible teams which operational goals. is collaborative the today the staff, position, coupled are culture a and in enhance to

increased partially given our challenging driven revenues segment year data second to and our financial in transformations avenues segment financial distressed the for portfolio helping some agile a our and executing offerings, digital growth markets quarter address by our continued offerings. distressed enabling how Demand and higher quarter making XXXX, pressures, our XX% engage strong commercial and of In the classification are advisory driving our innovation strong advisory for impact pressures. for over improve cost faster strategy digital infrastructure Healthcare demand analytics decision companies interest markets, Growth increasing expanding organizations in grew expanding the and offset and commercial, advanced their and decline in the to the and addressable to remains customers. same turning capabilities bend costs, strong new with offering, curves, by prior our and of competitive market. commercial capital better offerings and has and technology rates, a

coupled the strategy a expertise deepening be solid and broad innovation growth believe offerings segment. to We financial digital, continue advisory a portfolio for platform industry of in and with that will

me the let outlook Finally, our year. turn for to

increasing midpoint. guidance $X.X $XX increase to indicates, narrowing to at billion $X.XX an release press are of revenue and the our As our million annual billion, we

We of revenues, at adjusted XX.X% XX% expect EBITDA to raising and a our to the midpoint. range the to per margin to year our share continue of to adjusted range $X.XX of full $X.XX, be per $X.XX nearly in share an increase of earnings diluted

power results half and culture and products, first continued and model. operating the of a our services demonstrate Our for new demand collaborative the

guidance. on to in I demand continue shareholders first half performance and our growth as advancing we're revenue expect our and strategy. updated remain earnings pleased our focused the to summary, across commitment the our reflected we as segments our In with reiterate underlying we

offerings with total revenues and healthcare for our our further also drive upon strengthen future offerings we commercial relationships, to industry myriad of address strong our education, and represents we digital provides billion portfolio growth today, business, of new broad our Our our challenges success, expand expertise the expertise. array of clients and of in as strong face a XX% a along positioning which segment, from into will company for them which about capability, and to today going foundation $X.X avenues continue industry of and

Day, the ability of we've described quarters. in in our in we or ability growth still the confident to remain XXXX the objectives. we're financial term strategic And across demonstrated the our to While meet business exceed our Investor medium stages accelerate journey last six over early our

a to John? financial And John over for me detailed it a more now, let discussion turn of results.

everyone. And you, Thank Mark. afternoon, good

financial free Before adjusted please net flow. be EBITDA, we adjusted non-GAAP EBITDA, that income, will EPS I such measures and adjusted note as begin, cash discussing

in management investors on discussion measures the the Huron the why and with of release,XX-Q useful to and non-GAAP to management comparable press operating GAAP website non-GAAP measures measures, believes regarding have results. provide Our reconciliations our they these uses relations condition of these information why along investor financial most page

results up Achieving the to we were the the XX.X% was across three to all another services From revenues same quarter same of of quarter of in strategy. continue in organic for as and respectively. the on grew digital second record in quarter revenues some of managed quarterly revenues to XX.X% growth XX.X% and grew by $XXX.X million, from consulting XXXX Revenues of XXXX, financial share I’ll operating our Now million when the quarter. perspective, a revenues growth for XXXX. the quarter key our capability The $XXX.X compared driven increase segments. in execute

income per income to XXXX. $XX.X of $X.XX diluted million, $XX.X net quarter was share second diluted in compared million, per share, of the or or Net $X.XX

XX.X% tax was effective same to of XX% period. Our year XXXX compared in second income quarter the rate in the prior

or inclusive rate, statutory primarily tax margins gains the by quarter rate income, QX state XX% on compensation primarily XX.X% Our from or XXXX. partially nondeductible deferred revenues XXXX. of QX nontaxing of items, liability. $XX.X reflecting compared EBITDA Adjusted million EBITDA of The to our less the toward our operating was adjusted the fund tax increase favorable in the increase to XXXX to expense revenues goal XXXX certain in by was investments offset in effective QX progress to in $XX.X income used of taxes, to segment in than due mid-teen million, of EBITDA was the continued attributable adjusted benefit

compared the $XX to Adjusted increase diluted XXXX, XXXX second was share was XX% of earnings second per compared million quarter XXXX. net in in in quarter, million quarter to an $X.XX year-over-year. of income year of in QX prior Adjusted the $X.XX the $XX.X

comments I'll million, posted during of segment the second healthcare revenues of each a make XXXX. the XX% broad or demonstrating about XXXX. the performance services quarter $XXX.X portfolio quarter for The up company total revenue strong based across offerings. operating our managed of digital This few The generated $XX.X million, segments. revenues of of Now, second continued financial XX.X% advisory, performance revenue our and our demand improvement, in reflects of from healthcare cycle of demand increase offerings, segment

of to we of the percentage As our a healthcare our expect based performance projects, on we those performance generate to methodology, on we using best fees earn on for of portion in recognize based our fees improvement which accordance total as reminder, recurring that GAAP, typically expect based with completion financial the projects US project, are we clients. and estimate a benefits performance on a each deliver that

revenue changes To benefits the period, those adjust estimate to our to in that contract our we we extent of financial due performance, ultimately build amount given a that expect to flagey amount our clients our under of clients. the recognized for

contracts the adjustments included second our healthcare Our based exceeded in managed quarter where benefits several made $XX for clients ability clients revenues favorable for fee previous million opportunity expectations. for benefits incremental performance healthcare financial and our of services our that for and to teams of expectations related financial performance consulting our revenues ongoing generate our to approximately delivered deliver our Huron to model. improvement strength that exceed The an business business

vary the the quarter-over-quarter for to However, The and adjustments same revenue quarter favorable to-quarter. in for healthcare XXXX was from timing XX.X% margin magnitude quarter- XX.X% for can Operating increase of compared is due margin income QX primarily revenue XXXX. and a project revenues. in for by outpaced of as and in in the that percentage to our expenses partially increases revenue expenses costs growth salaries professionals, related in generating increase contractor offset such

XXXX. or million, XXXX. of a broad from offerings of education the driven across revenues segment and increase segment education The of in revenues posted second total generated XX% the quarter portfolio The was million, quarter segments. of second quarter The the by $XX.X of revenues $XXX.X in company XX.X% up demand during

education Our reflecting and and services product digital demand for digital, grew continued capability year-over-year, offerings. XX% technology analytics and our

Our second strategy XXXX. quarter continued research of also and the in operations their growth and trajectory offerings

XXXX quarter the XX% of compared Operating revenues for demand financial million, second to in of XX.X%, declines with the or quarter offerings. income of strategy XXXX. Operating revenue by company revenues for $X.X commercial performance. in education XXXX for quarter-over-quarter generated percentage for driven our to as is QX The quarter-over-quarter XXXX. QX, same income to margin XXXX. expense was of commercial decrease the offerings posted same in quarter our strong year the The a our in our total was by The during expectations offerings, XX% for professionals up segment quarter the full and was and segment updated for for margin partially compared XX.X% offset in million, primarily XX% XXXX, bonus second increase based on generated increase advisory primarily revenue revenues XX.X% digital performance the $XX.X our attributable for distressed in of

million reflected related and second at the Corporate in deferred to of XXXX, million to XXXX, $X.X the in $XX.X QX including grew allocated not Unallocated expenses the in expenses of XXXX. corporate were in QX of the the liability million quarter corporate the expense $X.X in level plan. segment offset compensation to second of our $XX.X XXXX the and in income used by expense. Unallocated investment that plan, reduction other in which is expenses deferred assets a gain million fund related the compensation quarter to plan, expense increase reflected

plan expenses Excluding in support due our compensation the the million, costs compensation $X.X corporate of impact personnel. increased both periods, increased deferred for primarily unallocated to

in percentage compensation impact second the as corporate of period of of the Excluding revenues XXXX, XXXX. deferred plan decreased in compared unallocated XX% SG&A a of XX.X% same quarter the to the to

DSO adjusted for the Now $XX.X million, million, our million debt finished net of with X.Xx revenue generated $XX.X to cash for of bank quarter and days the compared the of XXXX. debt, approximately XX, the we first days $XXX June second in $XX and as with XXXX the developed second internally $XXX.X of free agreement turning in ratio of repurchase with in the invest June XXXX, XX, million of We of by XXXX, balance second Cash in second debt of total $X.X days XXXX, million. during million flow and defined shares to the cash was expenditures, flows, our at consisting of capital representing XX sheet flow of quarter we senior EBITDA cash inclusive quarter $XX.X for software year, operations the came a cash of in resulting quarter seniors of our of our our XXXX. entirely XXX,XXX XX million, cash to quarter. is record quarter to XX a bank quarter, was use used of for costs, of both

me expectations our and let Finally, turn guidance for XXXX. to

guidance strong range The to full the our reflects revenue to XXXX billion. business. we our of year momentum our in $X.XX across guidance increase $X.X in As raising are Mark revenue billion noted, be primarily

EBITDA are year the be in range per expect our range XX% now of of guidance XX.X% diluted guidance addition, maintaining in We the and our to year $X.XX $X.XX. cash free non-GAAP revenues, range of and to share of earnings to be raising flow full full we adjusted adjusted narrowing million. our $XXX million In to to $XXX

call Finally, full would questions. I year to like range our we XX%. the Thanks, to to of tax expect open be XX% everyone. effective rate in Operator? a for now

[Operator Instructions]

question first from of Our securities. comes of Sommer line the Tobey Truist

riskless the pieces to feel been continues you've about for it wanted a sort because deployment question for kind if you to And sort makes and number term. that the growth of or I at organic like broad spend acquisitions near a got kind you pivoting of of your to least Do potential on you. wondering risky. you've over Thank of, terms. and organic business drive your in stock years of runway the money less ask de-levering of cash bridge starting all a I'm there's

Tobey, a little up bit. it’s breaking you're Mark. And

got more And I have over healthcare about we strategy. digital, to question our yes, continue performance look solutions capital last financial the the answer you think the happened balanced portfolio whether and portfolio we other between years, growth business the large XX is amounts and what's be if diversified organic we deploying today to without back improvement have platform advisory our like far to M&A. the in of to

to we that level have has the period acquisition of in us education expanded very in markets conjunction was we got time, of digital small with it today. acquisitions to that large nice to the many into platform over platform this areas commercial grown business a what Our scale from

for see we opportunistic that But we as the us what now. I deploy. think So in would don't any it platform I there characterize to are major gaps pieces right see as

they'd that for Do more be education, in skills experiencing for they do Thanks. the sort think functional more or think than or adoption, to on IT tuck-ins, would you specific you have are care software you and that areas? rapid getting emerging be do; side of

Tobey, I business. they work advisory of those rapid collaboratively probably markets, those the those, we're as it'll lean hand-in-hand, working both a really because think when especially of more I actually it'll model the be to a in we enabling of combination team are digital, side think

bit largely to And relevant so little flair, the solutions markets. and in a probably likely some would more not but we're speaking, the expansion be of help say to on, have edge digital advisory be and I and a side, it a could pure foothold particular in that us gain on those in focused industries again,

so a to And probably on irrespective an statement, I that'll a towards be solution, as have digital leaning absolutely but well. think industry bit general the a going industry as little it of focus

professional question even services improved retention, visible. see we’ve that's operating Last in heard I retention employee case. is your to significantly. that some the it dampening cases, in if for employee firms, other leverage But And though wanted still some evident leverage, evident, me, seems improved year-to-date is from dampening to pretty not be operating

But growth to in business. the our the Tobey, this we over than given because a our it's in deploy the improved this rate, retention pipeline that demand on a certainly have has Yes, to case, of even norms seeing means we're that the we of This I on historical course our we news business. be bringing the people in rate is prior to great had of attrition our we have lower the in the year, we backlog having talent trajectory pandemic. right be seeing terms market, the our think, at have that so for in is need to John. to the aggressive us attrition now were we're we the in more If across higher just project. have that the really point,

Blair the and comes with Andrew question next Co. of Our from Nicholas William line

well my to really the above EBITDA wanted that really, guidance, Hi, full and guide. second was I the Thanks second on obviously, for margin a taking questions. quarter good ask year afternoon. strong margin first quarter

the expectations the in it wrapped second makes headcount that conservative half more Just half EBITDA and kind hiring of is of curious maybe the growth you on in back year. margins? bit And question is, question a within what on

Andrew. Sure,

think pleased setting company that with so far of And really of you it's we the And pricing, we've increase utilization, during first, deployment the also SG&A. had fees number within to very initiatives reflection of margin healthcare scaling the help recognized but quarter a our the this the a performance So based the the to improvement progress business improve margins question, are to our our our increase on our year. of with during and resources, the global also corporate performance quarter. continued I

So pipeline XXXX. may with back had likely the we're far it's And an with typically think to so pressure we'll with really with see we half the evolving because second resource productivity this in year, as to the out there's as all new that even And consultants. of on we've this to now that rate for also a well pool build that starting said, into we additional eye look the some XXXX. on that pleased out ramp growth mind, that a continue half margins, create year in

push margins. from there, rate potential to see the the to likely just little And with I of comfortable the still guidance but the to recognizing a perspective, just and And bit ramp be growth, talent, our be there conservative as of with tends initiatives to a bit adding probably a the very described just to that, be market, range little based we're at we up in going balancing certainly and resources. able building guidance, our we're our we're point your that. we're So the being upside on

a was sequentially. the XX Thank utilization, pressure part picked last Maybe about wanted in the know there digital nicely, margin your of to key India I of related, is up which targets, I ask helpful. somewhat I quarter, you. that's little That's a initiative, think bit

progress an your staff. So of within support business, part and just the you update on that utilization give global if could

about resource last So seeing back to on the Andrew, as we progress really to global prior nice talked some we India, in did intentionally talent make in build in and particularly our those with pressure, are our we utilization pool year calls, digital up right diversify there, half be capacity to little we that deployed. growth. a as sure areas just trained that clients, got had up resources, and serve of we And ready of of the came our bit to

was so our pass, And the utilization. what each year And ramp we'd see expectation as quarter to that for seeing. start we're that of sequential that is, in fact,

when So composite at utilization ramping is we've looking geography been which we us. within sequential some ended, improvement from for you XX% quarter, XX.X%, America, the this has that's nice India, look quarter, North XX%, for we're and in at that to up then published digital at the there, perspective near a it a

Andrew, a add John said. I'm things it’s to to couple going what Mark,

the So the utilization is one part story. of

a in And every that we Another in have part quarter, leader last that within line Singapore, just out India. will today. capabilities served we're what also of across breadth be hired of the predominantly of the India the doing mentioned story service I is country the we just which

to the channel great done pulling have well into in a and clients is particular we've it there. So for platform us market that us very and expand,

of in only very growth. a revenue to ability as our leverage but So source also a drive to we feel confident help expansion, not continue that margin to

Company. Our next question of the of comes Benchmark from the Sutherland line Bill

terrific in had did that side? digital In John, a the quarter, you healthcare the on in congrats you mention healthcare, growth guys. and Thanks

for XX% quarter, the was It Bill.

because Okay. is cloud so need And insatiable migration in just education there's the this strong, the universities? for

there's new going investments there's a help et in their opportunity to like Yes, Bill, cloud be decades space, to Mark, CRM to grow and cetera. technologies systems, for this Salesforce, the businesses old them applications conversion is if leverage long-term from to

data as So opportunity analytics, a higher there's digital broadly to solutions as the well landscape whole education just healthcare. across tremendous bring

growth, growth? guidance with the year, in in think little in to that? In of your second Are now line half, potentially we a the for being hiring hiring kind about of and growth going ahead terms Okay. of revenues be implies that that should you the for

for think In the in as line. of base is next into of I a the Bill, year, case, projects us generally earlier hire continue the in year. for there's good but would they like I if continue revenue in in said half to line pipeline view than and potential the being convert, back as with remarks, that, get the half in to my think back base Bill, more it, even of I year aggressively the of But to generally case

But are finally, view as this then And Thanks. resources up guess continue in that you requires business? commercial, parts outlook the to whether thinking in to economic other build some that of the of I distress. how you about and

success the the one So know, rate that of one as in we seen higher the are advisory been continuing of in pipeline converting one backlog. It's to great really distressed higher you for our where areas we've build it's bill financial of resources some out areas that the space. business. of of strong pipeline And margins, areas us. been It's

expect talent been in certainly adding we've to do would So so. to and that area, continue

Associates. comes of Research of and the next Our line question Barrington Kevin Steinke from

as and afternoon. consolidated right your that about at wanted and utilization do I look you is you utilization. follow digital how much XX% think on rate the together, on if discussion guess and can I Good up a I And kind between higher or level expectation over Hey. of US XX% go? consolidated in in towards digital, that the so to and mentioned in basis, that well XX is the is XX% to percentage India, time migrates India near that think think this about? number or XX% the you then consulting

in over to so are really, the map on there we say, been would to I high be, your John. it's pleased it's pandemic. the as that's point of prior Kevin, terms XX% since utilization, we've to the mark,

very pleased we're that. So with

XXX think And that points when certainly we utilization. and we play to And increased I there still think opportunity utilization. that, deconstruct I of basis part of terms in couple of will resources there's a get can a believe time. think there are India resources that where be? opportunity to the India there's for even that about to question in we move mark. up higher there In over Certainly your as reality, it believe we should that XX% think utilization India

we've that high. big prior margin utilization And one as revenue opportunities. actually So kind quite remains work India on done of think generation said, our of I or on probably in is our per calls, employee that

going us, we're for drive extent So the think accretive to utilization that improvement, margins. our to that's able be to to we that

or in Okay, serving into efforts energy, are front? significantly, wondering to more services more expand commercial, what additional progress you making wanted about and but financial great. your around you and just looking that into historically, also ask you're industries or about nice industries, expand And to on strength some we to just had

Kevin, The right. there answer is, it's you're yes, Mark.

energy have We strength utilities. financial in services,

The as and dimension solutions both third one, the model our market, power well for industrial of dimension. encompasses which well is different industries of is doing say horizontal I us, and of a into you as three actually number the expertise very pretty companies. capability it's ability And bring that to vertical collectively, would combination on two these broad, the where have

why the ago, only low So time, us that that of you'll back to back, particular as we naturally very up our to ends continue us naturally taken the percentage broader market. expanded we healthcare really very if construct complementing a digital earlier was in thoughtfully into And much and and go tuck-in an it rest we've to commercial can continue ways positioning continue expansion industry and to hiring path our as in Huron years where that feel we like capabilities, use question see not the accretive down education, that's exactly a this Historically, go that's business digit grow growth. to but overall solidify XX-XX are markets that organic segment there, to of you over M&A a has single really in if model. this on strengthen

Securities. have question Sommer of from up of the We a Tobey follow line Truist

Fed to yesterday's the markets, soft look I is restructuring Thanks looking today what's recession. And you. a about for ask and up. outlook be for there? landing. until conference tell the you I like your seem longer questions think Chairman your no follow business, press at What's the to least capital relatively Powell a modeling mind small The wanted said up

continue now, going right a to it's I'd while. Tobey, strong demand for in be say to

slowdown While a increases, in terms interest are high. absolute pretty rate

have to environment. restructuring the solution you that markets in were to now prior the think this in I financial capital a due periods

you Now an to solution circumstances. often have operating fit to have

to continuing the on complexity of of have well plays so see that some we And we for time. that that the period that particular strengths And market. in

is got situations really a that these lot the not now. market The expensive. senior is You of market whole nonregulated quite it's supportive right lending of

have I to pressure at And going it's months. the lot a to XX-XX think, I would in so of say, least, next continue

Thank the you. no seeing And call more Hussey. Mr. questions I'd turn the to queue. to in back like

forward this when time in third our with spending with Have you look evening. us announce We we November afternoon. quarter for results. Thank to good again you speaking a

That Thank concludes participation. call. today's conference everyone you for your