Golub Capital BDC (GBDC) 12 May 222022 Q2 Earnings call transcript

Hello everyone and welcome to GBDC's Earnings Call for the Quarter Ended March 31st.

Before we begin, I'd like to take a moment to remind our listeners that remarks made during this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts made during this call may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors including those described from time-to-time in GBDC's SEC filings.

For materials we intend to refer to on today's earnings call, please visit the Investor Resources tab on the home page of our website, which is www.golubcapitalbdc.com and click on the Events Presentations link.

call recorded this replay reminder a is for being purposes. As to turn Chief the now David call I'll GBDC. over Golub, of Executive Officer David?

Jon. this Golub our for here Thanks and Jon Robbins, Thanks today. Director Director; everybody. joined here Managing I'm at Senior joining Managing on issued presentation by Yesterday, be we posted Financial Chief us Ericson, and our March ended XXst to today. call earnings Simmons, we the Officer; going earnings throughout press our Capital. Greg Chris presentation quarter referring We're release to for Hello the website. an

quarter For continuing another by is focus and you are rising on strong in income sponsors. markets. despite The a partnership-oriented consistent GBDC, which companies chain challenging this to and and with that to fixed significant supply senior interest war, issues, came those first-lien middle-market performance of loans included private secured equity not that macro investment Russia-Ukraine familiar the for providing healthy backdrop, had headline is very backed rates, who are equity strategy resilient our strong GBDC downdraft the that

EPS NAV incentive to XX For the $X.XX, gain per $X.XX, share. adjusted fee per $XX.XX grew ending was adjusted accrual share quarter, capital and from $XX.XX was share before NII the March per

that some about results believe the resilience quarter, more During GBDC the of we'll made of today's $X.XX highlight call. the our talk strategy a share. We course distribution per quarterly our of and over

going some commentary, outlook, I'll questions. Chris the to floor And GBDC's open for Gregory our hand the quarter. provide and to Jon floor closing I'm elaborate that, the I'll to on about you. then for and Now, Gregory, over talk after performance to

on you, during GBDC's Thank themes I'm contributed quarter. that going two to key the success begin slide six, describes to which David.

period The Golub which is median portfolio Market published several I GCMMR the Capital XX%. XXst, ago. March The weeks from call we rate XXXX XXXX and in your to January first theme the was from performance. Middle February in earnings nearly same or growth attention strong Report to

Although continue expectations. results, QX, in This look to quarter, in growth. X.X% also take GDP reflected credit data at reflected key strong a inflation-adjusted the is second portfolio well. companies Capital the the has closer the presentation, portfolio fell by terms, not in an we'll Golub Capital's Golub theme our for only annualized perform above net origination in it in was later

in really catch It that We expected after breath And we a the first their slow. be calendar to busy is. strong. was need would We typically XXXX. were quarter to expected not dealmakers right particularly M&A part.

the represented Origination Capital. because However, QX Golub in portfolio QX exceeded existing calendar had portfolio Golub expectations, for incumbency, primarily call were created Capital's playing repayment. add-on borrowers, across growth low new acquisitions XX% over what which in investment calendar offense. net GBDC's opportunities of and were this platform executing our a all originations our They we from programs unusually growth In tailwind also origination quarter. companies closing

GBDC's $XX.XX from per NAV XX/XX on $XX.XX its Moving to NAV of increased as bridge slide share provides as This Slide share X. X/XX. a to of per

net walk $X.XX, paid was $X.XX. Let's unrealized was share during bridge. were share realized Adjusted share the and per per per the dividends $X.XX through quarter gains adjusted NII and

for results And Jon the through at to walk over the closer a look Simmons take our more for detail. call that hand let now to me results Jon? Let's the quarter. in you

several and adjusted consistent before and adjusted past and EPS quarter adjusted quarters. This our realized over Thanks, Gregory Gregory. slide NII, discussed results Slide the results incentive over capital GBDC's and net unrealized accrual, also fee last for the the the quarters. already gains quarter. NII X for the gains, several the summarizes solid March shows distributions

Moving to Slide XX.

net noted, exceeded our originations this expectations Gregory As quarter.

commitments and million of investments or total unrealized portfolio $XXX.X investment as million Also quarter. investments $XXX.X activity, After well during appreciation New the of as X.X% on increased million. other $XXX.X we by as and position. $XXX.X repayments commitments $XX.X strong in at factoring had totaled fair sheet amounts million draw on commitment million of these are context small Each commitments of and undrawn of of loans. XX, the relatively March in unfunded revolver delayed undrawn balance term liquidity value GBDC's

on portfolio as new both Slide shows overall at mix the portfolio consistent rate diversified of basis by quarter-over-quarter. of spread over XX XX points. shown value. continuing table, portfolio bottom of loans weighted with the obligor that the one-stop XX to approximately that investments with Slide remained an investment the GBDC's represent less Finally, GBDC's average than and shows consistent remained fair by quarter-over-quarter type LIBOR average size at highly XX% remained investment

XX, our loans of rate defensively floating lien March of XX% As portfolio industries. and resilient was of be in comprised secured investment senior what we to first believe positioned

yields quarter. and spreads investment portfolio summarizes graph for This XX. Slide net to Turning the

unusually excluding don't for XX. blue line. of line by the The which yield our or future by earned sustained to by premium. yield, periods. upfront actual and but light X.X% interest the the we amortization on This quarter of The XX X.X% low of line, or amortization fee income yield and decreased driven level the repayments be repayments. basis fees first investment the origination expect Focusing income be points and to points price this represents the purchase to including income, includes the the in on amount fees Repayments level income cyclical low can an for quarter ended of XX decreased dark investments, discounts blue March, basis and

blue cost aqua X.X%. to basis debt, or weighted increased points the average line by Our of XX

end, not floors. is did With to difference equal. meaningfully are but most by of the that, X.X%. average Our because our rates or which quarterly the increases points spread, base of interest LIBOR XX the the in Post results. yield quarter investment to continue income decreased I'll and green and in future hand GBDC's which see base increase quarter, periods to continue line rates interest income earnings Both Chris? the investment basis cost net between increased weighted additive increased base SOFR of income interest debt the to which expense call be Chris discussion the over and loans else have all to X% expected to we rate during

March four to debt Jon. slides, the as percentage investments due investments. of March the portfolio total non-accrual Thanks, rating to our investments next and from higher XX. respectively, Flipping seven and non-accrual of the fair XX% investments of Overall, with having increasing or at over two number as X.X% fundamental quality in value X.X% internal five as of performance of strong to of cost to remains a XX, investments credit increased an

of and our three each a ended independent further firms March and as for quarter. details at months XX, least value As statement XX XX valuation our balance on XXXX. the income investments provide of XX% Slides sheet reminder, and

the five over Turning quarterly years, summarizes the XX. graph distributions, The returns and frame. our our to the the slide regular over our graph top quarterly bottom the same on summarizes on as past special distributions time as on equity well

This history returns our graph our slide XX. long shareholder to strong IPO. of Turning illustrates since

and NAV on distributions facilities XX, and with of availability per capital And distribution closing facilities. in XXXX of as X, XXXX $XXX debt $X.XX summarizes credit our restricted Most recent Board IPO of Slide March turn XX% which declared some David of strong June since through our June cash investors XXXX. XX. summarizes I quarterly investment XX XX, payable remains Slide recently, liquidity share over terms have as GBDC's available cash, March capacity summarizes our on our million in stockholders illustrated, to inception. our IRR as record a with Slide of to will it various XX XX As of to that, stockholders. achieved over the remarks. for a of

Thanks, a Chris. GBDC quarter. had strong To wrap-up,

new realized well; low continued and growth. coupled with companies portfolio healthy in commitments and net Our to were portfolio solid; gains resulted repayments unrealized perform

but highlight We reasons is optimism. and But I questions. last the that said coming Let in cautious, cautiously briefly still the our of cautiously say me for the period. I open before I'd Capital Golub four before the why couple in GBDC outlook we're talk for I about for line want the optimistic quarters and are, prospects review we're talk about about increasing. part to I

We've XXXX? both seeing companies despite the it's First, continue GDP, EBITDA. Do down about the to first it of our downdraft market this talked and But the robust of revenue of along year-over-year very GBDC's Absolutely. portfolio. portfolio strong call. few quarter expect we're still in pace we credit to stress. have showing prices, slow reported to in negative and report strength stock continue recent signs Despite from going growth the companies growth I

funding sheet. rates balance for flexibility half will LIBOR happen optimism the in floors go we're benefit rates of rate about see With above on already floors and are unsecured this debt. GBDC's as think fixed of We low-cost X%. the is to or typically GBDC's with well the reason assets. of as strength GBDC's started debt form rising, Second positioned We've SOFR interest GBDC

going the is to a private leading debt means that ecosystem for us five we're And there's private next seeing for of years. that underway. set in to shift growing optimism finally, the ecosystem. equity for the private this share and size is Many predicting momentum reason Third equity overall a three the opportunity in market are double And the other players.

sounds a there's shift toward should. product private skies quarters, I market-leading not about partners. all more think have optimism trends equity lenders the it's four there. out leading last concentrating and expertise and players. scale industry, strategically are story finance the the it we're valuable who their the sponsor the clear discussed familiar, winners and but with business Within factors If We are to these generally breadth that several for

of our talk by about how sources three optimism let's uncertainty. tempered is So

COVID. over to Let's It's start now, it's not. with supposed but be

to herd now though are never that had may likely even be part and of herd may virologists not XX% of we're be immunity, learn saying it top going XX% youth, fact, be pandemics only It not global COVID, at just with have new have We're instead we may immunity. may live In COVID Americans norm. to get over the to of not COVID. to but over

and good now agrees everybody is that good news that This news The inflation here. interest inflation is problem. a is Second higher rates. is

a is addressed. it's And problem agreeing first period was good of that thought to think step be hard inflation I news of didn't a extended is the cure. this any news. that of an to bad inflation need because time the for members is the economists problem. and solving transitory That's in Fed is lot important, The

a we while inflation be all to going for are of to higher around plan our for case base need while is So while, need to that rates adjust and investors for scenarios, all to to I a different a that we're lot think to that both. be as going going is around

source is third The uncertainty of Ukraine.

trading international to on the its Now II we've seen system. escalation. superpower how World degree post the want Russian War the economic nuclear I all the war trading reset tariffs a in to make to that's and true. foreign is are been and movements on monetary and is We've And led Russian of all global standoff of in this in What and norms. reading the has lively changes West goods the focus international about here restrictions to monetary that currency order which moves basically on age fundamental a threats the

the impacts as play is our investors going The for our own investors all and see for would well is able our sources of these order second third all the volatility governments, order think these companies, that of for for a borrowers adjust were Sponsor take is it's shareholders greater And that to some reasonably to third We perspective well from news and from to we in these and long of new time COVID impacts do we uncertainty. stretch how Finance norms. to out. manage insulated good GBDC market second and prepare to my risk. three view sponsors of understand and I niche

loans changes floating are adjust interest so and rate in to they Our rates.

companies to US US primarily are borrowers customers. Our selling

on trade they commodity monetary markets, international So less. matter volatile the system, impacts system, international

continued not So open we're for what's and positioned COVID results. operator questions. happening do that, and stable we're the With line war but immune for please interest the to with I rates think well

O'Shea Fargo question We'll from take Securities. with first [Operator Wells Instructions] Finian our

Your now line is open.

wanted ask everyone. on revenue Good I to afternoon. recurring David a Hey, loans. question

costs companies marketing the You've are been years. for this cash to because – leader in a how space – generation less ongoing understanding and spending research our And that they're on more so have on them. that and could interest intuitively forth. but good right? to for rates cut higher They still leave that wouldn't But their be would them debt, prone necessarily

set this over near-term? and rates X% up category X% to how X%, financially do up So its in over going think well to having maybe is the withstand base ability you this to the years exposure the experience

So great question.

Let's the just familiar with make context back the question. Fin's a sure of everybody step take is and category,

though So We to loans. of I – or to we've are loan facilitate rapid that the the about space be loans do from that These a been had they strong have companies don't very revenues a generally terms investors. very of done one business the less high their recurring the used lender's attractive these few space them loan-to-value. profitability. look very think at typically experience expenses in Fin's they as they meaningfully eight for growth loans general loan revenue the revenue like look for category of decision been in are to now. than were good software a in But relative very are very it's the which metrics administrative asking selling It's pioneers, years credit in or about losses. even think took recurring been recurring us. have levels to today traditional our perspective. order companies well to in at made good. a debt-to-EBITDA We've results, And made We've expense if you lower for in the of I larger R&D revenue

mentioned a the cash go interest out addressed companies. is of burn these Fin, in some needs is reasons higher as rates which got the flow. of It's you've be you up, by way cash to not One one addressed which operating

that's sheet. the So cash cash it's coming on addressed that's through the or new balance into system

come if up cash go you're the definition, to to pressure by from interest So has pay on somewhere. because putting more of companies rates these

the higher, simply attractive this a ago, as recurring area that these is were revenues We've less multiple of terms loans second were and seen I leverage -- eight think competition. spreads The we reason, have years when become were in pioneer a And lower, were levels tighter. normal develop those particularly, all We've a of seen part relatively a a we've become less perspective focused in is consequence attractive in this last lender's other business of you that new of year from so. as as a area. areas. our or

companies this opening XX% calendar in loan remarks, platform-wide I incumbencies, our think loan the a If our lender you that were look Jon already origination, at in mentioned QX we about our of to. were originations were

uncertainties like existing inflation, focus in talked we're for So, very I that focused that And making those companies on rising to positioned the the lending facing. comments, my current environment category given uncertainties is, that single we opening that well companies the in for for that we're sure are companies. about the our best know are rates we to portfolio we're best and on that

a you your be still volatile, of off lower there looking and more is for are so demand like and helpful. origination, maybe now? lending is quarter on at lot remarks How competition first do in up, top the year? you seeing. line -- direct expect this the growth you see we're would as or of at normally origination what or to building this least products inflow to all it like pipeline Is couple seasonally there know often a what I market may things less The there's point origination. Playing be? do That's on but

before So again going to go forward. going I'm back, just

company were into substantial impact capital mentioned, QX year-over-year. maybe unusually existing of sellers If And right. slant, sales say you sales, of saw I we the It you Is special an will and pace No, attractiveness would as be we from seeing it overall, of and say of look at XXXX some higher pull-forward fast for to of borrowers. I'd the pull remarks, some in toward I partly for to we're expect was platform-wide it acceleration. avoid expected I tax a XXXX in starting tax think tend that quite that a to standpoint. COVID you'd even of QX, see quite opportunities overall you XXXX. prove In impacts quarter rates it were a as it significantly XXXX. surprised did the be later origination from have solid Greg active QXs prospect that their But XXXX, gains impact QX, I an law made we up our forward I XX% as to first market There thought we're But about number that that of in were wouldn't a at bit. our QX, outlier by think XXXX, pleasantly took changes be. low expect, do their the to look as XXXX? us the seasonally QX. factors that on as some said order in will of in origination be QX quarter coming I because as out were mentioned. be downdraft. the as that just expected very We if think prepared into We But we to an low.

New right of normal, to be calendar I And good to be this think for to a deal a us. QX expected. to is is environment. That's Despite activity shifting going origination kind degree. that quarter in the that's

what happened all inflation around, was monetary where support the equity the because way, in companies, are COVID XXXX being financial Fed problem support guess, I you different, relates outlook you the COVID for supposed one it the I'm the time as still sure. getting as conditions class and where middle and going market sort rate? and Can the what overall the I default That's be would more, sponsor addressing the serious era, How tighter. But which therefore and and and credits private of all mentioned. this talk helpful. it you appears if it other look be opposite may. to feels a And, government do outlook Fed to very asset very fiscal is of is credit was about although about of problems temporary, is at there loss ended up

but going S&P for four Credit credit sponsor XXXX generally, in at, zero index tougher. not is just mean, you liquid I months of finance, the the had first markets if LCD get to look defaults. in

worse. that are one, get is, mentioned you factors pricing better going the find You on inflation interest zero, prices the not in is, enough. going some are going rates. than is companies to going cost, to direction? which but can't the things to themselves the get worst going power Well, to raise A to it's to and so What the higher have curve end wrong they're of push second are impact inflation their

I for a are that issue in that to some impact going disruptions What's think scary now many is on are supply going inputs. tech on rely Shanghai pretty companies third right companies.

more So going feel stress pretty think, the see to we're I across good portfolio. I about credit our system.

in inflation able rates. exposed be of anticipating interest Ukraine. to thinking remarks, position we've portfolio the to context and mentioned rising and We're two Russia have to I We've not the my for to been years. opening been how about inflation resiliency As real in

to China. We little have relatively exposure

position are Fin tougher going period. meaningfully credit markets record our I a outperforming So think in it's good in market. to reasonable the I coming get to expect think track that to of But the we're continue

well. all much. me. Thanks Very for That’s so

KBW. with we'll to Ryan go Next Lynch

open. is line Your

talk an a of wanted Golub afternoon. Middle Market report provides lot It's capital put to out. insights. helpful guys the report, good about you incredibly I Hey,

at at and shows a look industrial, well. you pretty revenue and in margin of you're overall then earnings, on earnings growth the QX and still I portfolio. overall the total in growth stated the growth call first decline in seeing that And with months you growth at up a the subsectors portfolio today, are As meaningful But X%, individual look good earnings contraction report, there XX% as the if in almost there of XX%, the X%. you outliers maybe XXXX. when of of revenue look two calendar of revenue When

would So you what on from are love to And a think hear that in while forward? is margin going comment look today, portfolio? for outlook things pretty your you the I I standpoint good seeing what

today. Ryan, But I something I to. that to earlier wrote that, get Happy respond before to you compelled feel

with You that fee you don't that. incentive And seen been accrual. since we've wrote capital that while gain NII per missed on a thought we It's share. I agree

review So I to because that funky very it's everybody just with want how accounting. works,

done has like Golub if that. rare very, and We're an is a exceptionally unrealized extremely from in this So, Capital, credit gains very that's realized company unusual. BDC from you're a net inception, standpoint and having well

the If quarter. at you the the do that an of liquidation have that, end accounting you says as-if

fee realized, you that that your the the positions of So, if to and then were gain would place. be incentive unrealized calculate assume capital all are -- all fee you take that more they're incentive what

that cash the had line NII roughly a brought this above we gain goes But capital $X.XX our So is fee not of incentive that's down. expense. NII what and

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look you unrealized and gains realized at look losses. at realized You and

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everything you everything agree you with with agree I said. said. I

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which performance. answer about back me company Let other your question, and was go

your quite saw this us saw consistently XXX% I'm time profit point you right but of of worse positive, saw numbers saw quite and that we see the X, sure XX% a to in market X.X% recent we not one X XXXX, what reversed bunch real we continuing the that over if from than middle at which we of, performance not levels chain low quarter I If think continuing is the industry. lot compelling the Market be improving, they when continuing growth revenue good the at a of I the coming that QX, of outpacing argument. actually the as levels that a and measures if different of a about we that Capital for a look go some look value; underperformers across that industrials. portfolio the by companies You're results most that'd fair that draw portfolio over growth to In Category Middle on and data course sign of it’s non-accruals, challenges indicator me conclusions pretty XXXX. extended been now we growth ratings quarter-by-quarter start overall Golub an And the pattern a the of my revenue deceleration actually also in I are strong gives the positive. about specific are historical maybe And at in not it's performance just that really the really saw are you performance very I seen of was described actually Right of index, profit something sense down enough growth. think growth in revenue reflected period profit Index issues that to actually for faster always of Ryan, have growth. supply in companies number surprising to then being not quarter, saw that volatility profit quite If recent given the a terms, growth growth further basis we We've an level solid. is most what point saw where more that.

mean case, that's a we're or forecast. lagging at best all at not indicator, budgets the at projections; not history looking Now I we're in looking we're looking

So analysis of horizon. we've the got seeing to that leaven data we're about with what on perspectives all

I a Yeah. past mean been just that's think I – agree. totally I the saying is has great.

questions I guys think have future for big about other a markets market syndicated loan had some people desire the of impact markets? there's a -- has and everybody's credit solution was broadly worried couple also last the business what but wondering not as I businesses. you markets. two those I'm loan but take been direct guys specifically you overlap look for one in the private call The in does the what then these private all you primarily the it tapping month, private and how of broadly has obviously pipeline loan weeks a because just that those between functioning on or versus last, to play the syndicated

in look if a if market new some are there broadly XX that spread that's pretty probably widening. you similar years typical seen which And is at indicators of widening. issue approximately hasn't the point that basis there issue bumpy I'd market one about the syndicated an if period. of amortize the look that been I'd last a modest signs We've some. expected market, three loan over at new you And The life broadly been syndicated over spread you an have new seen down over again issue has say month. Sure. say robust degree been we've point but

are seeing the buyers formation. new of worth CLOs. typically important we're new thing over slowdown And I loans Another think a broadly that's watching CLO broadly syndicated because is seeing of that in market we're syndicated in XX% interesting the and is

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So see spread I widening. likely to continued we're some think

high I And I migrate pattern is seeing my private expectation the markets in in down the over this then credit market think we're the yield more well. the marked it and usual think It's in time Ryan liquid yield high market. market. And they to that's things these time. as happen first that

when all That's GBDC Okay. love the been had clear on I throughout a look great talk very of some these the but have just secularly equity March your that. about talked growers. market. the to kind Would strong because things, be concerns markets, in private Again flow are Dolby particular question I other and or like you the we helpful. then are public certainly you public concern. in impacting insight markets about like cash it's you. businesses markets the And huge a I not positive But of there's valuations. at that hear reset And to credit I or Salesforce things -- of can insight strong kind mean the mean,

reset in what a a going get the what that very down that that also XX%, And are Again, and pay concern to Obviously, will in be you to And happens, XX%, not gets stocks mean? able yet. may valuation strong they're businesses ultimately, that the have still it going what valuations lot a be private reset interest pullback guess assuming strong you? probably And still would market. would private good very happens to businesses, and is for happened strong a but of XX%. And that paid EBITDA You market public one going small but be happen, like all fine secular back. I'm to have there in to we're that probably hasn't major from is feel but investments, standpoint. I an But that the mean? a earnings major a a I one? in businesses market what in not is, growing that see one that concern

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take funds tend see market we a you major So pullback, see first tend private. have to of things when the public we is, one to

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particularly We that's portfolio. a a attribute. have I large don't think equity positive

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with part credit is that sponsors and lookout for our We've underperformance working early, on over that doesn't with so a working business. be this got to borrowers our of address always So, it loss to our become underperformance, and time. the

on and appreciate I today. those all very dynamics. dialogue. the time helpful I color That's had the you. That's Got

Thanks Ryan.

Raymond Next, with we'll Robert go to Dodd James.

line Your open. is

couple software such that Within software it's questions the mean, color it's a concentrations software a you’d we revenue of give being businesses? flowing recurring right? for XX% large curious how software Hi, expansive obviously, not be term. how as versus any different I about exposure, kind any One, is But And is that guys. the an is should be there on quite of your diversification in I software of? design, piece, aware I mean, I really with portfolio of in graphic cash end things. much is software software. there markets? On – mean, question mean particular subsectors that? bigger diversified question here. are about at mean, well, But I I'd – us all

to resilient loans. very high successful, to repeat recurring very very to I is counts, customers, improve if see very business say a very of exposure the So, It's flow couple away, better I can What SaaS and customer software is and lending next high cash very mission-critical say can flow. not we our business a that, of model, we're recurring I take think companies: of of probably things revenue transparency attrition revenues, low free can couple most high quarter. things software cash

like So that profile. we

technology as of space, lenders technology the in the into go them. lending still lot We I direct of the platform have earliest the have largest We're the portfolio to a industry. we think and a

real competitive this is of expertise think our one advantages. I of areas and

concentrations mind, And because I'd context be that in the will I conclusion you. If very move out look markets, in market. The illustrate together software as risks market. a you factor the information economy. end homework way to by to software based at this in share way the But if with of in conclusion idiosyncratic we lending that, look companies our the next meaningful don't all diversified. don't we important, I'm assignment, have better end take that, on figuring so think to at a changes they're don't you confident like XX-Q, is the can that's in end

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appreciate I So that.

of a down. COVID still long-term. Obviously, shut got of healthcare well side, the had bit because a for them On the kind discretionary cart of another pre-COVID you upset -- area we of you lot I lot the discretionary little the call it's been a focus could And mean, what healthcare. over apple

or a see taught have that slowdown an see the concerns COVID been greater quarter. there, we material defer could those issue more period economic any up underwrote going in case We that consumer if a we pre-COVID? all economic some And in things businesses have time? of particularly, those concerns changed deferrals, higher recovery businesses when attitude you they risk you see rising if has for of these unemployment? of are got if Street there Is in -- might forward, the of healthcare is then future the do has Do any this we marked inflation, an than

quarters. the question we'll So and over honest don't we the answer is know and course interesting see it's an of coming yet,

think subspecialties, different think, I the be about subspecialties. by question different your I As and about answer think may

So example, we're for very active in space. the vet

get some I to to the think to think least I think pets, are, towards at sub who and it's number Look, have needs. derm. up, We somewhere humanization are save that's up make Fido and I given dentistry, history I'm of going And continue consumer ophthalmology not describing, to to are consumers are the prices the not sectors: the Gas don't yet. going interesting is been context going question. But going of in what of in signs of costs have to a and lots up food prices an are what changes. downturns. you're vet operate space of of two is to the money change. care, likely trends those there else. through prior Fido That's other seeing eye

it. you. appreciate Thank I Okay.

for Mr. over closing Golub, you I'll turn it to remarks.

share with questions. David. appreciate to I your you, everyone Thank and today us time taking Great. the

back you have any appreciate As reach Very Thank your feel we always free to to you before partnership. please questions and quarter, much talk other next if come you. out.

call. This today's concludes conference

may now disconnect. You