New Mountain Finance (NMFC) 31 Oct 242024 Q3 Earnings call transcript

Good morning. and welcome to the New Mountain Finance Corporation Third Quarter 2024 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to John Kline, President and Chief Executive Officer. ahead. go Please

good Corporation's and Welcome New to Thank Quarter morning, XXXX Finance Third Earnings Mountain you, everyone. Call.

regarding Laura some of On does, ask the Chairman Mountain and CEO Klinsky, going CFO Steve he and make are today important of Treasurer to today's Capital; Kris Kris New of Corbett, line with before call. of some to me NMFC introductory I'd here but Holson, statements like NMFC; COO make is NMFC. Steve to and remarks,

Thanks, John. everyone. Good morning,

into we of strictly to that that and New Before Information prohibited. call recorded. webcast I advise of everyone the audio Corporation is on available is note get presentation, are any XX about the would unauthorized release. that our they Please this and property press October Finance like are broadcast the today's replay earnings press in call Mountain form being -- any

factors like Chairman, on X presentation. over the law. To we I'd this the time some of throughout update forward-looking access will unless of our copies webcast presentation safe those statements. attention to forward-looking the our the slide conference to regarding I to like statements and could highlights your obtain and of customary to X do to beginning projections and and call to we referencing important www.newmountainfinance.com. most turn release Pages undertake recent Page press Today's actual by ask cause include visit latest please projections at call, statements give from filings our and Steve be NMFC's with Klinsky, statements projections. differ SEC for not will the refer call X materially that would and SEC to in may or our website forward-looking results call the presentation disclosure slide slide you harbor Steve? to and on who our This to that filings We required

Kris. both share shareholder. to $X.XX September able and more cash per was implied our you dividend address today, for major great Thanks, regular net line share per fellow the paid our was It's with Adjusted income XX. Chairman all covering NMFC's than a as and guidance $X.XX that investment to in in be as quarter on

value stable Our net asset or of portfolio. declined per our $XX.XX share demonstrating performance $X.XX X.X%, across credit relatively

no non-accruals new Importantly, the had we quarter. during

supplemental NMFC distributions of we this dividend dividend the this December we supplemental supplemental of Given earnings on will our each XXXX variable be when $X.XX payout. Inclusive basis $X.XX XX than our make XX since quarter of program XX today. per per for share seventh to as December base these paid consecutive asset commenced will The pay dividend, share spreads per share. holders XX. of will quarter, in $X.XX QX variable in dividends higher to they have and points this are were of will rates we record

we to do currently of XX% have not do during and do Looking the to but and out our to achieve higher the per the share. we base cover we we in based incentive Furthermore, we NII current expect spreads place. Again, need If not $X.XX reduce need expect of pledge, to needed regular but per supplemental XXXX quarterly not it $X.XX quarters, XXXX. although NII below dividend rates, pay our to of credit earn pay dividends. to share, to is to fee or our expect base on the market this pledged think any percentage view we continue over protection coming conditions, dividend,

by Mountain team. and quality our is of NMFC We the of of driven believe our the the consistency strategy New strength of and

credit is developed sectors, infrastructure a has and very engineering. industry overall informed technology supplies, experts decisions. group members our high-conviction growth that such information utilize and underwriting we to of and make pursuing provide life allows XXX as extensive specialties attractive software, our over cyclical Mountain investing expertise efforts, When now to firm growth that the numbers services us health defensive digital New unique science in care knowledge

Over the we of year, quality continued to team. expand last the our have overall

in realized Mountain's its New XX are out manages a assets. and in and company XX times. per have less private funds think or growth years $XX as dividends. attractive experienced our positioned over only right particularly NMFC industries annualized billion share overall defensive never firm had that interest public basis of paying bankruptcy we of times in a cumulative certain well an today average over while the Similarly, now are $XX has equity payment losses believe net in loans missed economic points of We over all

me management, turn and own Finally, currently the John. XX% employees other as to we, major as continue let approximately that, of call NMFC. With of shareholders management I senior NMFC's total personally. NMFC's shares on

highlight cash seek to industries New to begin investment companies offering with drivers, conversion. firm's to broader exposure growth predictable of make map sectors list margin our long stability These would the strategy noncyclical diversified lending on Starting knowledge where private made sectors. I streams, is the like where X, defensive Steve. free by strongest. a Page you, great Thank Mountain we our to equity direct flow record. has durable investments and and a and successful our revenue investment review We track of in

virtually industry pie cyclical, have qualitile industries. to on As challenged chart from we see can you ] Page secularly and X, [ no exposure the

company. in and economic us as Our allows with environment. any strategy has been a our confidence years consistent to operate it over public XX-plus

yield XX%. approximately excess in through a of to distributing returned XXXX, shareholders billion and track Since provides return to generating our credit X minimizing our over our an has shareholders. long-term losses record our showing by delivering dividend statistics $X.X annualized IPO NMFC all performance shareholders to consistent, virtually of key Page program, enhanced income of

XX% that price supportive purchase capital the performing owners with to businesses owned paid make. sponsors that who industries to are risk loans dollar high-quality within is well the of and companies is the last our for lend in invest significant primarily we business. are and junior portfolio current financial sophisticated where Our We that by approximately of

which to The risk our map companies as Turning portfolio compared quarter-over-quarter ratings rated XX.X% we have This heat of first rated XXXX as represents assets XX% began in the green improved red. internal of quarter. highest last in of to Page portfolio since no well using quarter our with the green-rated XX. rating we system the level

represent a portfolio. challenged orange most them only Our X.X% part names, of NMFC's negligible our value, making marked fair of

the Page risk map towards business continue orientation our shown and heat updated well landscape last Similar QX. XX, in entirety no defensive matter migrations to negative the have quarters, positioned like health software, NMFC's sectors is The rating in perform given two to we develops. services believe care, on we any are economic how did to its assets not

majority for We vast repaid going yellow line non-green to remain fact, experience quarter the the of many names investments optimistic and improving and top about the In during Notably, our bottom with our prospects harshly products at both has name one of our forward. continue par our underwriting. growth, consistent of

quarter HB provide resulting Turning quarter and $X.XX the value rate equity net Edmentum. during to book quarter. of graphical lease changes declines a last by compared Management, to XX. analysis in a decline performance a write-up We benefited the $XX.XX, value in in of credit core in good Overall, very of Page Permian a book our on our investment NAV tailwinds portfolio and offset value Wealth cap from in the

loss we reduced and Permium's growing, in existing ] stable as business sector. an of stake to equity contract our the of opportunity transition remains the core expand the [ result energy upside While of value carrying an a

end in are performance equity normalizing by Additionally, during after of very years we the whose pandemic. again the value markets Edmentum, modestly reduced the carrying impacted our stake strong

Page XX performance. nonaccrual NMFC's addresses

of the On portfolio the we $X.X currently portfolio we of the page, which the non-accrual. million value, approximately of $XX fair have state or at on of side X.X% billion left is investments where the show of only current

$XX IPO points IPO. realizing loss of page, million. of has On credit an our billion side the XX since basis while investments of the show right This performance NMFC realized net losses annualized of made approximately where we average since over rate represents cumulative $XX

returns in and Laura billion XX, the has of on income, Chief the Page NMFC's net net realized now value performance. cumulative earned present unrealized losses depreciation created discuss provide Operating investment to to billion in of the consistent $XX $XX details On Cumulatively, last our net NMFC over of years. Holson, for over more only resulting $X.X environment current and over XX compelling and million NMFC's will $X.X Officer, call I shareholders. over market while million quarterly we generating only cumulative turn

but to capital equity representing the $X.X flow, Thanks, pockets structure significant make yields attractive remain in our loans verticals the the found John. normal in sponsor defensive still we sponsor-backed overall that at Deal staying majority Despite below structures. in selective. with with vast while the very deal episodic that, contributions levels. third compelling have structures capital we where of of activity quarter can attach opportunities growth remained M&A double-digit

equity, the magnitude pressure capital We bullish for for financing attractive M&A the on remain to as outlook return the to ongoing markets SLPs of as for well borrowers. dry powder given private activity

market solution, the the recognize majority to execution, financing equity a should comes that The XXXX. decline, buyers environment really capital as firms narrow, lending lending in structure bespoke choice flow also fee deploy private risk-adjusted that increase off benefits When including the a of at more to the deal an as gap capital is returns returns, in with facilitate income sponsors may hand in remains rates a lenders. early general The between still base which market generally [indiscernible] should of flexibility activity. As opportunities direct select more creating portfolio and sellers the additional velocity. activity would and again direct of as along pickup well take bid-ask expect ability consensus attractive around the we regular for

within addition In portfolio This activity, incremental portfolio loans add-on set continued XXX make over refinancings ongoing companies M&A. new large borrowers. opportunistic to as well unique have accretive existing financings seeking our well-performing an to opportunity to of deal seen to as pursue provides we

while rate rate Page into portfolio an interest is XX floating floating analysis and rate, and liabilities earnings. The on fixed XX% are presents fixed NMFC's loan XX% NMFC base rates provides insight effect rate. the XX% that rate our XX% of

successfully to mix debt we quarter, to the Similar swapped fully issued rate. our second floating investment-grade we our first During issuance, this from bond.

future, access market continue we we the in this manner. As the interest would to in hedge to expect investment-grade risk rate

the Furthermore, rate. the highlight We pro unsecured our to the maturities we XXXX the next XX% on rates evolve convert expect XX% to will XX sensitivity our notes forma fixed chart. months, significantly XXXX mix and and for over floating bottom interest

scenarios have the floating offset Namely, are base in and While pressure fixed rate capital some structure that our rates of decrease, our where shorter been to we swapping dated some rate, we we've we to fixed to also mentioned, exposure help to would expect debt. refinance opportunities potentially some cost rate see earnings evolving new pressure. higher as

callable X.XX% Our our and mature refinance XXXX, in opportunities baby rates. hopefully represent lower XXXX bonds of X.X% to converts which October are November both at in

had QX, Moving XX. repayments In originated million and fully allowing of $XXX million sales, on range. in Page $XXX our target we to remain invested at leverage to of us assets

portfolio modest unique Our as senior tremendous a a niches of services consisted loan enterprise power borrowers. core X% fair including XX SLPs across our of defensive our of originations program. software small in diversity upside and The underlying alleys, investments aggregate our value, growth in with as in represent at well business

While overall to our to of percentage a this yield are profile. the our we as important an don't materially SLPs grow contributor expect fund,

approximately senior of Turning to Page Similar first lease lien net are quarter, of nature. SLP inclusive last XX% investments, and XX. to in

the X% lien Approximately the of comprised the quarter in positions year. of QX is right XX% down of largest page. side represent X% our shown of the portfolio, of from are portfolio Second just which and last last equity on positions, our of X%

potential of these resources of companies. meaningful at positive which exits. in we making We and all believe time continue business to building medium-term dedicate progress are advance to

and operating of private owned capabilities businesses equity credit leveraged key positions Our team Mountain full any equity Capital operate We our like the business. ability is other to own differentiator. a and our New approach

downward that our to primarily Generally Page yield Yields to repayments, even support average speaking, NMFC's are and forward tighter, the though portfolio compared lower curve. on the target. spreads shows evidenced on attractive our to by in yields remain XX.X% and net as QX of XX the due investment SOFR income for shift decreased our originations

highlights our and XX trends Page scale the of underlying credit borrowers.

several last at EBITDA lend average of the to. we over to is quarters primarily of increased weighted growth some has companies to see, well our larger as can the individual you borrowers as attributable $XXX As the companies This million. originations

and that defensive new marginally first how tend While all internal opportunity an knowledge, larger criteria we on our mountain foremost to borrowers else and equal. maps against growth concentrate safer, we believe

additional well here and Portfolio that We the able X.Xx the the leverage at company expect continue continued loan-to-value activity. and and current M&A also are average that our portfolio. portfolio at seen as investment interest values we'd has this Loan last from was portfolio to the and several base We've quite rates be company attract relevant on quarters. liquidity of weighted to sponsors over the an a flat quarter, of has to leverage consists are valuations. to This coverage average show decline. performing interest indication great stats remained to companies across consistent support portfolio and compelling, XX%. that to healthy increase The coverage again continue proactively is

Finally, Page portfolio as across a companies. have illustrated diversified we on portfolio XX, XXX

will Excluding turn Corbett, Chief our fair fund names. single highest investments, the represents discuss value our I our the conviction now Kris our to financial total of issuers to call Officer, name and for over account Financial results. top XX% XX

Laura. Thank you,

please details, Form more yesterday filed with report SEC. our XX-Q For was refer quarterly to the on that

of portfolio on of quarter. of ] be asset available range. was cash or per liabilities Slide debt XX X:X $X debt-to-equity fair sheet, XX, had to share to total billion. quarter ratio down our billion, the $X.X end, the $X $X.X with statutory was to At Net which our net within was spot total value on slightly prior $XX.XX and X:X investments and outstanding the one total shown billion in statutory continues spot compared billion $X.X of value balance approximately [ As September of on over to at assets which billion, one

results. On Slide XX, we show our quarterly income statement

prior of quarter, X% a financing net $XX of Total total earned versus prior $XX expenses income This in increased increase increase year. investment we million product was the year. For costs. million, of expense approximately over higher X% a

dividend Our the regular weighted exceeded our quarter share, QX adjusted was of per which per average for NII $X.XX $X.XX share.

and of cash. in XX% this demonstrates, predictability regularly And recurring average, on quarterly of in the income investment over of total income. is our QX. As income Slide shows XX our investment income and our over historically XX% is of in consistency our is believe recurring paid stability nature We

average positions and from this Importantly, par are generating the of fair during of noncash generated quarter income green value income names. XX% XX% of marked at rated a is over weighted approximately our

XX% included generated is were from approximately income that -- by of positions inception. this pick Additionally, that

line XX. regular Slide our of dividend. The to red Turning the shows coverage

quarter, share. This regular NII dividend exceeded per adjusted by our $X.XX QX

of share has For QX dividend Directors supplemental again of a share. XXXX, as regular declared Board dividend $X.XX our per of a $X.XX well as per

SBA million Taking inception to This billion $X revolving On most since our our availability of total with capacity debentures, liquidity business diversify Slide $XXX borrowing financing and highlights profile. available guaranteed strong and subject our various lines, on account limitations. in into XX, we borrowing our base sources leverage highlight our significant position. represents have the we

from our our SOFR SOFR of to for corporate and the we lowering a plus our its XXX. of profile, developments from number rate plus more extending a plus quarter, to than base to size $XXX extend negotiating rate doubling including reduced million, lenders. plus repricing our and September the liquidity spread facility, of base spread During the XXXX and while XXX maturity credit to revolver had XXX which to Fargo with positive Wells XXX respect liabilities successfully

investment-grade really October which The second The our facility. higher-cost in Bank $XXX the XXXX. million activity fully Finally, from spread seen the used as proceeds mentioned, issued aforementioned result all that of in matures were repay bond our to we Deutsche mitigates tightening market. credit this

financing our in outlined and further cost represent reduce term. opportunities of facilities Additionally, in we refinance see to the medium red

expense covenants we than to generally the given reminder, rather any time, performance are underlying at think conditions. market under tied lend that facility marks Fargo the operating of is of important which a Wells during to volatile particularly the credit As businesses we our

our to leverage XXXX, turn upcoming maturities would to the and XXXX. Slide With to two to manage ladder or extending that, over our in maturities of I we increasing successfully on in bonds XX, opportunity after of our our including representing XXXX facilities to to maturity with Notably, maturity the an size and early diversify the Finally, like continue have John. show debt to continued bond investment-grade We've matures investment-grade to over debt access issuances, call and XX% maturities continue liquidity our schedule. the credit back near-term sufficient market.

Thank you, Kris.

the on of performance our XXXX, improve. continues reflect we As NMFC's quality to course over credit

substantial with before. our Our ever than to and portfolio more we more positive ahead. have senior is made structure changes liability opportunity

will that stakeholders for to to believe all the speaking closing, PIK again once will of exposure thank to would Q&A. on well-performing reduce our materially the through again back forward XXXX In monetization Operator? in call and NMFC support February. of begin its certain turn next . like now partnership to we and and operator things we ongoing positions. opportunities look Additionally, you to I the have in our to

begin now question-and-answer Instructions]. will [Operator the We session.

Raymond Our James. first . question is Robert from with Dodd

go of Congratulations had 'XX, I leverage I Can XX. down. we business Xs high million back to multiples you is given up I Or any should how back of it million. businesses type much on stats any, semi-permanent on with the versus in, i.e., just change expect to the $XX the rates us shift? of change give the to rates, like being color come on put obviously, earnings. meaningfully? on portfolio if a mean mean, you think leverage go the has portfolio base the we come in beginning Page at credit down that that is a $XX is how in lower is on if If much

Yes.

-- big that again, has portfolio of quarters, things. time base in I X.Xx a there's I has in different opinion, think even X.Xx. when we're you think because not originating. between reality around in about think But that last new And we're a leverage combination assets coverage interest rate right performing the well and couple it's of think light long been I our I our been you're is comfortable a mean, of over constrained has the been and environment. difference in that, of

think I lot the of moved take the to. businesses that that average probably recent on value is the be a to that time the given lending enterprise that in thing underwriting haven't we the that meaningfully comfort enterprise of over again, value we're period. And higher fact types tends of we're average multiples businesses

think So from seen and we a come lot stats on perspective, well. have in loan-to-value that report, we as focus a I our And bit down a which you've loan-to-value. of that little kind

is portfolio on loan-to-value. XX% average about now Our

good cushion So there below of is a us. lot equity

exactly hard I I a But that's that been base of long that has something know lend on loan-to-value there importantly, time, we take profiles lot a evolve, we for of where leverage comfort as companies think rates evolve. to it's to that and in. types the cushion think

a modify I your that want your of away pick I function lot than the if Got next of your and back, of market year. structured new be onboard the on you performance. that way looking PIK the to number is assets PIK, a you potentially poor a -- refinanced large because what's just that's case, that of you to appetite that ones? point, refinancing mean, get it. rather Is to they -- if reduce expect to mentioned might comes mean,

a new of it to -- out in So that on? choice peak hopefully is about put assets and then Is you're those get thinking deliberate refinanced 'XX. not what

Sure.

well, we're very and on think have underwrite higher assets. in When and because pick and that to that's our And exit. refinance they the are be. good the of to we I X, is X is that on And alluded cases, tend we PIK we the preferred unitranche to some put their be today, we PIK vintage, visibility exists end when expect market investments that companies to and as as PIK than lot being our proactively others sponsors, that In which those think investments that where a you the the on questions, there a to sold we performance life. coming strong I well, think I of well. our And their the underwrite, market. years expect natural PIK pick ago, a pressure some them and by in partially we your of good They of that. acknowledged just performed some driver assets see there's modest mix, has. want where so think about we've we that in we borrower option perform of

that to so been base a bit of response is trend a in that's And the rate. new little higher

PIK, the fact So we natural think if that would right slight I in like. ratio PIK would be PIK, our would would a XX%. we pressure us that And now. long-term that replace in portfolio improvement pick so get target is assets under-XX% at maybe to do that higher than meaningfully a with I and more PIK down I big we we given cash-oriented balance on just expect repayments can -- our get be and increases are that get to where or there, think our level could for

quarter, they can keeping mean, speak. quarter. One to the sequentially mean more, and I dividends The I together. but if quite up well. it. combine from X sequentially. down was two the income the in in ask X Got was fairly the combined just SLPs I performed I healthily so one,

With dividend from But mean, SLP by down those that us two was So vehicles. -- was unusual of with some there this income a any thing anything give decision individual the I timing mean, can up I do on they that. quarter? decisions boards you how

anything say wouldn't unusual. I No,

it bit just right a from related some that timing perspective. little of our You're is

is performers there, about of to they've diversity takeaway no, I the most doing quite all, tend talked think So well. companies underlying continued to for be really part, the those are I the and that strong -- those all portfolios

with it slightly happy of been -- program, just we've little on vary bit very so underlying a SLP can success nuances. And the quarter-to-quarter the is overall but based dividend some the just

[Operator would no with concludes Instructions] session. the for back Showing turn further over do our me, question questions. question-and-answer John I like any we pardon have a to This -- to conference Kline Johnson KBW. from Paul

When in that more mentioned on the cash underwriting not not election Yes. at more underwriting? utilized, be just I that PIK you that PIK versus underwriting you're the will mean getting based to I your option? guess, you're kind Or assets more expectation the of initial pay looking layer pays. mean have PIK does assets do

PIK When to loans think amount about think about overall XXX% conforming that pay. loans have from When certain pretty opportunity we of positions PIK feel exposure. our the a offering as minor. are the pick I PIK -- the portfolio, that's reduce comfortable majority we big unitranche to on could option to it with exit unitranche PIK very cash small relates is come that new We

fine. that's so And

Hopefully, will allow And even I I think question. PIK more need clients options when reduce the opportunity addresses giving about our that your way to of have is it. that it. to then exposures some we we the they That's that be have. the think us that comfortable just chunkier pick

mean on XXX talked And then it. last a just that in about That a are in that question kind where lending actually for sense. sense. there makes direct of repricing add-on phenomenon we're in I'm spreads your of the kind it makes kind MA? more the are? XXX. That still below of Slide waiting range, Or XX is the add-on we had, call of little the in the are activity Yes. indicative real I think bump new couple remarks, but bit market kind investments, where do is There's I in looking of temporary a just we'll of of that this of at of higher type you you new with spreads are

comments. market down velocity level Sure. I'll view is point a XXX. this why would spreads that can give a where we is be little some tighter that the and just lower which tranche, of a the my right add seeing view my average indicative But and we lower, had now, would when very that spread Laura that our higher, -- but the deal a then -- would that in and push perspective seeing unit about My bit, own we're some are average in that and QX. pipeline is we think bit there's you're the some normalizing little around be

and we want our it where election that pipeline QX. of that But would we've widened is one do, the versus post part at into loans coming I see a underwrote a So perceive reach to big of for don't flow expense deal philosophy to thing fruition, bit little has more if XXXX. -- be we comes our we in credit quality. And the lot opportunity, we'll yield and

a period tighter, the B-quality deals. take little So are have to and what by yields QX, us. we have if a like time not gives market tempted where we doing of be

So overall, that potentially I decent than about QX, acknowledge would environment, new feel spreads forward. see had the what lower we'll but in going asset the originations

with Riley. Rowe question The is B. from . next Bryce

price for a late extending weak the a queue a wanted John, recent -- stock to here. a bit from I to press release the jumping perspective. buyback in Sorry kind you've got of

trades feel if XX% stock I to kind rarely think below of get for And your use valuation, want NAV the around appetite of you've the to Just buyback. historically. parameters got any

reflection I weak have, question. continue think PIK, has release opportunities been stock the of very there we've positions, equity of maybe of of it's PIK that. done we've that Yes. to good we are some Thanks a The for the the improve about to in do which perceive financing, big potentially we reduce 'XX our And upfront a job XXXX. in been and amount

strengthening on we use stock. weakness the very it's my belief story if and in we in the buyback It's we is the to place that's So in to the because the the want our place. ability shareholders. performance it -- like think think I in on have focused And NMFC of and strengthening interest stock we're the would

that. we're open lot do very we're about we're book we the most above trade have do defending going to typically, better acknowledge And very And a and XX% on focused going to the and than that mind very, and times would so that, math. we stock, a

it does focused. attention, So have our are . and very we

that. appreciate I Okay.

the have side kind bit of liability talked quite of you you've a sheet, repositioning, a of lot the speak, to that. for so about balance done the opportunities On all

You the SBA XXXX, ratio coming past And to I that's access we've just then up you you -- another update sensitive in to your going take this SBIC debt-to-equity that calls, but if speak optically, are higher. any could to that? do -- have to Is talked of terms trying regulatory license. in in know maturity about

are look X planning into range account of mean in the always as definitely so we we're upcoming, SBIC X.XXx as I Yes. financing take liquidity aware maturity our doing and I target our think and we into leverage well XXXX. range we the talked about planning we've X that to

target SP no ways how of think X.XXx. the our in And some have the program, to we to the of again, process. leverage that. We're think about no updates. But go-forward material we when change about range we still So then on X

with up 'XX. thoughts? knows and call now, the bonds in any got mean, locking but maybe are some maturities going you, that happen Laura, this the who to maybe guess And the of for Any baby what's financing I that in I coming period market? you've front-running and before around thought later some Okay.

Yes. do, right? think of we've the the what been activity described. couple of that we we that's that weeks did That's bonds, recently second to what Well, issued trying investment-grade $XXX Kris I some just So million just ago. a the

our upsized also We corporate revolver.

you we of could there do those certainly feel market gotten just risk, So ahead important recognize from maturities, a some et it's of perspective, and cetera. we be like have planning

upcoming reason maturities and we that got kind ahead the planning you So deal was we . those could noted. main done that then that when for why of

back like [Operator I our Instructions]. further question-and-answer no remarks. Showing John any for session. Kline turn closing to conference to would This questions. over the concludes

everyone, conference forward we with speaking call, in look you third much quarter Well, for you, February. and thank joining to our very again

for presentation. Thank you has attending now conference today's The concluded.

may now disconnect. You