Verra Mobility (VRRM) 2 May 242024 Q1 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the Verra Mobility First Quarter 2024 Earnings Call. [Operator Instructions] This call is being recorded on Thursday, 2nd of May 2024.

I would now like to turn the conference over to Mark Zindler, Vice President of Investor Relations. Please go ahead.

Thank you. to First welcome Call. XXXX and afternoon, Verra Quarter Mobility's Earnings Good earnings available we'll announced of market after our results discussing our closed, which our with Today, the issued website in at be Relations the on Investor press ir.verramobility.com. release along presentation, section is the Mobility's Chief me Financial With Verra the and Officer; are call Executive on Officer. Craig Roberts, David Chief Conti, our then with Q&A. we'll remarks, Craig, open the begin followed prepared will and David for up call by

call the the regarding events, may you make involve during Management uncertainties are anticipated guarantees of statements trends risks future performance that not that the and difficult company. future and future are forward-looking anticipated caution performance to of and such predict. future statements We

forward-looking factors a of complete We to Verra update Actual undertake results may forward-looking described differ are our statements. for any disclosure. obligation materially filings. the due factors. earnings variety statements from Please These Mobility's our statement in those SEC in release refer forward-looking not press to do to projected

during to and on website of we'll can GAAP sec.gov. earnings found financial which is the at to website included non-GAAP refer SEC's directly measure most release, certain call, non-GAAP measures reconciliation in these be A on our measures. the our ir.verramobility.com Finally, today's at comparable

With that, I'll David. turn the call over to

joining quarter. all Moreover, exceeded EBITDA for Mark, earnings quarter. adjusted exceeding and units EBITDA We you, expectations to everyone, had the internal with business for first our and adjusted revenue, the for met us. our Thank thanks, a the year, expectations strong start X for or internal

VMOS, Verra we the guided financial or solutions are System, performance. our and strong customer-oriented Through strength Operating by execution consistently delivering Mobility

Based XXXX which over the year, the and increased X%, elaborate was full portfolio performance year for increased increasing cash on EBITDA we in of on of Craig our remarks. period, predictable remainder guidance, demonstrating the Consolidated first businesses. of financial year outlook are and flow prior quarter our revenue X%, our adjusted the free will his strength growth adjusted XX% the

services to and travel team on performance moving commercial strong results operations. trends outstanding The in continued the domestic business. delivered Now and our strong driven our by business management fleet unit durable

quarter EBITDA of points were XX% year quarter, of about XX grew year tolling. the to XX% over RAC First prior over adjusted margins revenue the and million last primarily up strength of due $XX basis

in of First in strong XXX% RAC adopted quarter incurred, throughput agreements increase revenue. in tolls about XXXX, and resulted TSA growth was a volume tolling rental all of driving XX% which

generated representing prior FMC our and for year the Additionally, business customers. XX% by of enrollment quarter, revenue from period, $XX of primarily increased growth over driven vehicles the million FMC tolling new

ahead, relative chains. the expect a over comps decision FMC factors to underlying primarily year the The strong particularly outlook key growth rates the of year over strength to continued anticipating RAC our tougher due to guidance. influencing tolling we bookings pullback and commercial full modest travel this hotel balance strength and In of the the raise revenue based course the XXXX, travel services were of year. are major due the airlines Looking on in and we business, from commentary strong

road revenue further Moving the customers year. grew existing improve and enforcement quarter, from on of program to Recurring reflects which expansion over the cities service same recurring Government safety. period XX% total revenue efforts X% The Solutions. revenue, to service new by for implementing was last driven growth

including Total due were prior City, existing New point, York To their up year safety outside about international efforts over growth programs. quarter. XX% we revenue, customers' this to XX% sales, product our expand the revenue of drove to

stop-arm school and to per $X and report ramp pleased of activity Florida. that year. we for executed call, continue light represent are to earnings RFPs that, speed, award we As have to revenue red million year-to-date, recurring school I programs up contracts we discussed in in in the our potential bus aggregate, up last seeing am zone

of side we Kingdom and contract an $X contract speed international business, award of lane the our closure the will increase variable for on run an maintenance systems. the the were rate. our GS Additionally, approximately in awarded United in national extension highways current revenue This ARR of drive million

first rate also beneficial We're an from the run speed for in and legislation deals, of market that of reforms. winning report of a which, pleased the potential. passed very Overall, $XX enforcement state bus to incremental in awards fair quarter million competitive share and up we for automated quarter, other to our was programs, highly of perspective. ARR Washington, the full lane had the expansion We're strong represented

city Moving year. automated its The recently City indicating of in published release fiscal the XXXX, enforcement in quarter on potentially intention York to a the late this notification the to year contract. second renewal RFP New

be experience to to a technical combination program. for this procurement have and competitive solutions market expect effectively compete We we of best-in-class a and this believe strong

update of Systems. brief generated and total a approximately on a solutions. compared decline structural away towards transition about quarter onetime we $XX TX hardware by million quarter $X the to mobile product due to and revenue first from the for year revenue Next, software million anticipated We as prior

EBITDA services quarter over decline ancillary As in also quarter. decelerates, for the of product was X% growth. prior revenue up SaaS $X revenue the year-over-year was the Adjusted Recurring year SaaS driven revenue installation maintenance we million revenue. onetime a primarily experienced and by

and we on high of mid-single-digit continue to full revenue the System and and over TX pricing the term, transactional growth expect opportunities. year, the to return to introduction by revenue deliver growth long driven revenue single-digit focus the SaaS For strength

growing. optionality in respect remain been to future allocation. further providing the We've M&A, pipeline leverage around to reduced net capital X.Xx, to valuation is for deployment. our capital opportunities. but disciplined of We With evaluation Turning active

to capital open first a have we have we but open continues be sought the an option for increase the Through buyback stock million for $XXX on buyback. sheet, authorization cash Additionally, balance to viable a quarter, the deployment.

VMOS solving We Mobility. Mobility to management. sales continuous deliver power strategic company-wide areas Verra VMOS. unparalleled focus tools established Verra of set drive our years in and the System, unified critical operational areas, we a we of Mobility. for parts and funnel Verra improve brief maximize across build needed we Since or the Two including Operating and value have that provide to knew shareholders, to Mobility the Verra update continuously operating business. Operating to designed out a of spark I'll and customers Lastly, our all returns our and ago, future core We set deployment, problem planning mechanisms System, to a standardized implementation employees the a excellence dynamic of and and then, reviews, deployed mechanisms approach on of improvement

operational As are excellence around these an muscle VMOS to across leveraging memory we organization, drive areas. building the

Officer. Finally, Welcome President as leadership release her People as organization and month, Chief our to in Executive to like expertise HR be I'd congratulate our press experience announced in appointment last formally the and Cate. team, Vice welcome and will we HR Prescott on strategy. Cate Cate's and shaping instrumental

and it through you Craig, turn I'll XXXX results over us to the to our update. guidance guide financial

quarter by year we're call. joining thanks to overview afternoon, I'll our results, an David. full how first an followed out thinking of us the on for overview providing Good by updated you, about and XXXX. start of today everyone Thank

$XXX the revenue segment for Slide year consolidated And driven services and first the SaaS turn for business revenue service increased CS At Recurring recurring first driven X% across the quarter. to year-over-year year. by X% the of over the Total by to the over X% over Let's in service financial of in business XX% quarter, Systems' increased which demand prior service for strong key recurring revenue Government City Solutions travel grew grew million strong grew growth approximately revenue X, and Commercial measures XX% outlines revenue year-over-year. prior the New revenue quarter, level, Services company. XXXX. growth the York service TX the quarter the GS business. by outside

$XX Product million, profit which international of tax over X% revenue XX%. certain net tax of rate includes of standpoint, million the EBITDA year. the Systems, reported was this $X TX including million the million approximately were About of rate was of the $XX $XX effective adjusted $X rate favorably million from the million which Government increased products. income for total From provision from impacted consolidated majority while discrete items, of by an a tax for Solutions, last a total was representing quarter. quarter. about The We quarter, for $X

For tax the approximate full XX% an year, we are rate. effective anticipating

quarters $X.XX first quarter current completion was process Adjusted of EPS, count of of share in stock-based for the to XX grew $X.XX quarter over million additional over the XXXX. quarter other compensation shares second and per items, the Adjusted prior and third amortization, EPS share to which year X% in due per nonrecurring nearly excludes de-SPAC our compared the the XXXX. the share despite

includes $XX million in year. and received cash million were the We over cost of on delivered adjusted of December collections January adjustment a operating performance conversion million after-tax matter driven strong which XX% of flow the in basis. for $XX resolution adjusted an PlusPass $XX the of was last EBITDA The lieu by free of that early for quarter, of

generated approximately months, XX adjusted We EBITDA a EBITDA Turning of representing $XXX to revenue million on of adjusted trailing Slide for margin. $XXX the X. XX% million

per $X $XXX cash share a EBITDA, cash a XX% free conversion we XX-month flow of basis. of free or million representing Additionally, of adjusted flow adjusted trailing on generated adjusted

year, Slide on in We XX% rental X. million the of tolling volume Services year-over-year. million increased $X and million the revenue delivered Commercial revenue period over increased last RAC or $XX quarter, robust to first about XX% Moving $XX travel volume. increasing about same by driven or

XX% by $X year-over-year, of Additionally, the our from vehicles million tolling new existing grew customers. FMC FMC and growth enrollment business or driven about

XX% over driven EBITDA our last the a initiatives. tolling Services RAC of point year, was first were XX and execution Adjusted year-over-year by basis continued about XX%, the strength million, adjusted largely growth First $XX in in EBITDA increase quarter representing growth. margins quarter of Commercial of

is take customer, the million X% in benefit spending outside primarily by $X by to period last year first $XX a for margins a New for in as York revenue Government quarter well turn over million we'll EBITDA for Solutions quarter, and quarter. X, international of million of $X efforts of versus growth as of was driven was onetime increased the largest the development City, look was by $XX the slightly our to primarily Let's Product programs. Adjusted the Driven primarily million same a reduction year service on the due and quarter amendment at increased the XXXX. business. contract XX%. about Slide results to business million prior the The margins $X or for representing revenue

the the revenue adjusted quarter. business segment. million Solutions for Parking is X Slide generated EBITDA of to for turn and $X results of We approximately our $XX Systems, which Let's million TX of

sales services mobile transition X% from and year for hardware by year-over-year reduction This $X software to seeing was in decrease a slightly we're the solutions. prior product Software offset on million quarter. increased in expected over revenue quarter, the the based

Before financial material described weakness we where in I XXXX of close year. last out several quarter, the described on control XX-K, general give the like I'd you weakness to our deficiencies gaps, we an we IT In stand which update material aggregated on our a XX-K. the regarding review to

work our time materially that is and a as ensure required operating for controls will to remediation complete, are additional sufficient intended. undergo the they of to are new While testing length operate

on to continue and in will We measures. you our we corrective progress, remain updated confident our keep

Okay.

little the a Slide take to at and the look closer turn balance X Let's bit and leverage. discuss sheet

you resulting can in end. $XXX quarter balance net at ended a of As with quarter of debt million, X.Xx leverage we net see, the

We have with credit maintained undrawn significant our revolvers. liquidity

$X.X balance floating about at rate gross stands of at Our is billion, approximately debt million which $XXX debt. year-end

at the discussed fixed floating past, of about that's in approximately cancelable million current swap debt our total, a option. hedge $XXX rate float we've As our covers with notional of XX% for our

XXXX to targets. brief on to guidance, thinking a around provide on wanted our move leverage long-term I I Before update

This net of deliver We updated consistent trends. recognizing leverage strategy, periods from we M&A allocation temporarily to net current our flexible we updated that market through and have X.Xx exceed that value target in prior with commitment target and activity, our modestly long-term capital a target disciplined the is leverage, our view to this revised Xx level. new may level shareholders believe contemporary leverage more of to is and lower with an

Okay.

we the $XXX of range upper have range and end million XX of of at first Based the year our to EBITDA our and Slide million revenue to for million guidance. prior million of are on increasing upper our the from to the look remainder prior results $XXX our range. We're turn outlook year, $XXX guidance quarter the from that $XXX end the increasing a of Let's XXXX full to to guidance adjusted range. that

of $X.XX our from expected And per free EPS is million upper prior lastly, year-end We flow to $XXX are the share $X.XX range of increasing there adjusted prior range. to adjusted of the guidance or change net guidance of our our million at to leverage that cash Xx. end to $XXX no

factor quarter TSA travel primary guidance from has summer The XXXX, influencing are volume of Year-to-date after outlook been travel raise first to airlines. was season. major strong a spring about anticipating a strong the and the and we XXX%

the In anticipate quarters. in of revenue EBITDA we year, the terms to second of and and to third for increase cadence the continue rest adjusted sequentially

then third in shifting a Consistent fourth year. However, strong EBITDA in quarter. in to EBITDA we as the to in due and reduction and sequential to a expected XXXX, revenue trends. travel demand historical the we growth second growth experienced the expect both with forward would expect quarter, margins Adjusted sequential quarter we slower follow modest sequential revenue in the trends, adjusted are with XXXX

Commercial consolidated the And company. balance Services, will modest Government influence of expect Solutions, sequential follow rates, sequential growth largest growth the having as the revenue the trends year. on over same the we the

deliver Lastly, services, in SaaS mobile transitions onetime temporary driven software expected Solutions strong the focus mid-single-digit quarter fourth a reduction on revenue by a reduction sales Parking and revenue solutions. in and by is on to demand industry in revenue our product growth as call. to earnings growth, we The as offset discussed is total

by performance. adjusted margins as margin in to comparable increase performance, quarter second second expect half followed compared first We EBITDA an quarter in the

be SaaS Over high the EPS our free to adjusted supporting growth revenue can long flow return cash Solutions we key transactional single-digit XX. Slide term, Other we expect Parking on our assumptions and outlook to execute strategies. and growth as found adjusted

year, to summary, I'm we In XXXX the our in strong ability increased start outlook. and deliver our had to a confident on

continued business, the strong remarks. your growth you attention. operating and operational have deliver drivers execution momentum on performance. concludes We This solid favorable and We're prepared Thank secular and business trends. in time enabled our to by for focused excellence

to Over for Constantine to At questions. the to Constantine. time, this like I'd open any you, line invite

from [Operator Instructions] Faiza the Your Bank. comes line from of first question Alwy Deutsche

was the on But then mentioned first, just the guidance. sort wanted raised in outlook, additional and talk a raised So the factor of I to mentioned travel Craig, government the also of sort about know contracts side. guidance. that you potential you

incremental just about we of I Services in side Government on incremental little bit as wanted So revenue guidance the a color any more whether should raised the terms how revenue -- we any well. think expect and recurring recurring should

Thank sure. you, Yes, Faiza.

I'll we think on little a you detail I how that. So about more give think

of in of vast at take let's of increase -- to simplicity. you if an the to previous $X guidance million midpoint the we just okay? revenue look TSA Commercial high Services use in is first going the guidance the majority end So The for came than saw in million, range, If We $XX the due that's that anticipated of points we travel couple through in that to right? higher of the come increase quarter. as in demand, that a the increase

the As that we the raises think to about our neighborhood. out by take in TSA full somewhere I throughput points, on of X.X that X remainder year, year points that outlook for

talked see that revenue in spot last continue GS to we What overall. of to high when going which Florida of on and in low for about great much all ARR, the progression do the year. time, think I this the terms of actualize. about service that we're we It's single-digit state we the talked pretty service in growth same is end side GS at see

have late come revenue of year don't those. we notice either in or will the forward. can this That not necessarily into increasing proceeds think of very a to a factor the on into So good business for part XXXX. but what lot indication why deliver the the -- it's late XXXX, business I revenue of going That's a it's in very guidance potentially

a helpful. allocation. capital very on then That's And just Great. question

and did you of leverage to You lower buy stock. your potentially target, opportunity back sort mentioned

you to back stock? do want -- stock want the do talk of need sort Or just back understand, and you that be you get expect some actively want you first to I should reach buying this buy of your to before we target to leverage So the at point you about capital that to by of year? process around just end thinking So allocation.

Thanks for question, Yes. Faiza. the again

we've to balanced we the that going I we're past. about as think in think remain the way been --

and as look side, that have authorization, at can today, the reason. look I are screen on really We right? So first. say -- there are out we open actually what which there a M&A that than processes on would in one that certainly to the we is which it's market there hard kind the assets more dial for When on on at showing more come up of were,

And XX% I at as would very for the X of I totality, If chance do I years say in what won't as leverage we've so the I'd But looked look net guess, that. was rates screen perform right? how right view it Xx think is being today, in X.Xx seeing the the we that also we've in company get what seen ago, contemporary terms is, and a wrong, a we seen out the on we leverage M&A, what of for that and we're with company.

is a And remember target. Xx that, long-term that

came the go about, about versus X have a ability as quarters level years over back ago. in period come talked But delever past the over point, we X, still X.X of prepared and for talked it we've X.X that company, that with cash of being to maybe the we now the generation remarks, right? could hopefully, period, out that So right? a We the in to

the Your Securities. Moore CJS next is line from Daniel of from question

drill to little just just Services not on down in the necessarily quarter, quarters multiple but Maybe now. a bit, the Commercial

a double-digit pandemic-related cycled -- we past recovery. the growth double-digit Another quarter comp. on top of Clearly, quarter difficult

So TSA obviously, a volumes bit. helped quite

you the roads, maybe single-digit on algo, when uptake your continues contracts, think cashless? about your their rental sort more services, toll better would it indicate? algo maybe expectations? to shift rates, Is Just what trending than What of attachment outperform on to

Right. Right.

-- So you're what understand asking. still I Dan, think I totally

rubric like is that, right? me high even that, let coming increased that the it single Commercial of build is growth, the of we I by talked a the quarter, secular looks saying lot So half about So with target, last And that digit growth when high guidance for let's half start Services. still it tailwinds. single-digit from X, did think from the

So transitioned of from -- barrier-based the rollout from transition United predominantly model. pricing roads, this roads. the toll is to roads toll and sorry, These then cashless all-inclusive I'm are continued additional in States,

then FMC Europe X growth growth. then half, and fleets pieces. XX% other of coming side. half TSA about from split or strength remaining growth And That's the is business, half the talked is growth we've the between some the of as then increased at And utilization the well. from initiative And mostly the the coming in that in

X ago. what we months That's said

tailwinds other think growth in today, it's the maybe the towards outperformance that and about discussed but from TSA last quarter, I the a XX% little between for given split than intact on and growth the then more rubric, we remains time. initiatives, the TSA XX% just what initiatives, first bit

was and that making the back enhancing to long customer-facing investments you're of last. I'd generally, platforms. how Solutions Government on just Or into terms much but will accomplish it some is of the expense -- I more onetime? how any in it of you're a the get More incremental think sort what math, on then And looking sense. then Makes the side, color

David. it's Dan, Yes.

Solutions There's have an great excited mean, basically, I business. sort the -- of of that ongoing really on do up the opening multiple Government to the is when that, of we're done which over end a things by platforms. been investments, buoyed legislative for lot across going acquisitions. the country. really with And So we've you you the history company, our platform, lots And of the

to or X go well. of it the future. our be And much the bulk scalable one, modernize we pretty several year ongoing part would the that's And probably from first been, cost platforms and year, and an ownership as and to reduce We into maybe anticipate is this two, so ongoing. of platform X; that's of really has can going opportunity going the to to more of to, be as consolidate this much that in be next so

Your next from question from Northcoast the of Keith line Housum comes Research.

quarter. Congratulations, guys, on a good

Government we Or about weighted the are that have little assuming Solutions talk in of last just by legislation of these I'm was the these a outperformance unrelated But the terms quarter. are positive year. agencies? a the down to engagements? different developments that perhaps In segment, a mix smaller bit few

what just from it's you're I think much I we Keith, saying, that the it's not as -- the not opened. TAM think from

last are off away starting those, of that the to wins last which we of really win some alongside especially tail year that seeing expansions customer the be did we revenue. of focusing before a you got This the But on in as is international couple that some start wins the year, exciting, really, We well. goes Florida. and to going quarters back theme to is the

and or how there. Great. the asking about in the a domestic? not of bit international for And growth Is compare line the Solutions kind But we're international is Or color talked they of we've from do context front. past. on opportunities growing in trajectory? international following that with Government -- an about the on size the a little area actually, up International of provide

it's mean globally, it's In a Yes. market. I if market. decent-sized hardware-only you a many places, look

really primary lands bit and a so a got in the set Canada, exclusively, the focused for kind Europe expertise part, part, in exists. most our are is, most for areas the where really North itself, in the but where we've component there's where service skill Australia not of because little and you've which places that's So that America,

or well as same market look model. red of a that expand may look hardware-only in service the approach, to right where to about look we American But growing here for got We've some good in those So we're opportunities now, we and kind so that versus continue speed which We the light model may markets plenty to have for focus to as we'll on is just North expand to now. really a fast. right countries. in, is feel

is of next Louie line the from from Your Blair. DiPalma William question

announced You strong cameras? for lines, there bookings the year, million in momentum And ARR with speed been cameras school government of for cameras U.S. $XX past has the red it any well that overall the improved? zone light red across sentiment over change the awards. has been And have documented industry you for light witnessed incremental these has But along demand also

is their that demand unchanged. instead intersection, mean precious I at the work is mostly transition which is enforcement that is, would hey, community I is the just overall are cargo the call where for really let's we something is, zones, trend, buses. the part, purpose-built most say school Louie, what where what by which most of to And to an school having important go the are, which a zones, to around problems the

we've that long would what would flattish red term. type light say so I demand, And a be of business thought that the flat, is always

the little more are, it's because legislatively I actually to it I one, there a and anticipate other to meaningful And palatable. more the think bit. also ones bit a I stay up would communities think

part legislation was dramatically wondering legislation. that the York I or light was to one-off a it's and if proposed makes was trend if City expand there more And That of thinking New is sense. granted yes, and program, just how red about nationwide I

Yes, it's point. a good

the quite trendsetter go but New areas, could York has and embraced benefits automated of for they other obviously often slowly. really a that enforcement, are

to but say wouldn't a be future. could the that transition red in means harbinger it immediate expansion, I something something that's of light So

to the Craig, answers, to onto for for finished in System? Verra that you migration we the in And the when that are you is something finish quarters? this targeting Great. the but will throughout new of Mobility Or you may that from expenses the elevated the one next Operating legacy expect be prior couple the be year? answered have rest Should expect of platforms of

Yes.

of first Louie, to XXXX. part in work have completed The we expect that, that

But dollars-to-dollars some incremental still We on points to in spend. will system but keep the again, isn't you'll margins just a do look business dollar-for-dollar basis, flat right? increase were XX at So GS basis see see the year-over-year. I to you that expect that up new the expenses, to least if year-over-year, increase

through in new TAMs his -- them these David of remarks. As walked some prepared

As they in open, been those need We we need folks. right, some haven't attend salespeople train to to to to we put need before. areas. We conferences of

some there's just the market along So with SG&A also comes that expanding.

spending. I to able take think we together So increase even business, -- you them it the GS but roll to if and and basis into margins that to still it expect with all total the put and up do hold be XX points year-over-year

CapEx this, CapEx year seasonality quarter? And be year? may And the reiterated throughout missed target. any there is to And but what I $XX CapEx the the was full have to that in Great. you sense. million first makes the expected

is think the on -- that. will the in That rounds we in somewhere first over whatsoever. bit not little surprise XX a million $XX it was for that anticipated a half. the the I it in still ramp it It going so back up quarter, ramp up and year, -- Louie, was around come does and to

Baird. Dave Instructions] Your next from from is Koning [Operator question

then But first was it? the through But we that guess, FMC kind travel, a to the of all, if demand growth that give And is smaller. $XX growth $X little I little I travel $X year, as million a or stay, the how about TSA million. job. looks FMC. better go around year-over-year the Nice $X good? gets take, of said maybe I think million you even does about million or in that think mean about commercial

to how it. is about That think

I think there. you're really close

in in the third quarter. the again quarter. up to level I it growth year-over-year I So second I FMC expect the it expect quarter. expect in fourth

X to we balance math So for is the about over applied bit here right? saw year right of we've the save took of the to I And that. think that first to months a think little FMC. what When go I seen is TSA essentially, way on the on there the seasonality think more in -- last the decade you the year, that the and I'll we

this, of few It perfect that the talked remember way year, months bit and of we even I that, little out, when comp either. talked worked before at -- isn't The a that did a through XXXX. when ago, ramp we kind XXXX say said the beginning we a let's

it quarters, how the the at year, looks it little here's -- look for we as So shook a total it out. But funky.

the said, I somewhere ], between X X the That's X months it'd total X we X probably that X of north maybe today months to what apply year, take little forward of originally, first of right? [ through ], goes comps the back the think the that. if be bringing and end X that see X a it bit I what what of X [ X in up year. year to the the right to saw taking We X we to the year,

of year, million about cash The that. follow-up, $X that thing it debt Yes, sense. last before just kind interesting and $X an bad million then QX, my flow expense of you. statement. makes in quarter to was $X.X And and kind Got was all million through maybe even in per the

a So was collect? what it that the to something were cards used by travelers to there higher. harder was credit that? a little Or Was little

a and it's then what get tell what question seeing And good not it not. best to do not it's great -- we're you I'll It's let a really consumer that's So my what is, we it's right? not you same we is question. tell catch. Yes, the the with there's consumer, and actualized, ], have the seeing is differences, through health come we're and weaker [ transacted. saw not when right? they of all necessarily it's how transactionally, been those some we me What Because the

I that come So in line. think has back

health still was So think that what the in consumer. out incremental to in go but of exactly the I'm seeing the we do I it and expense that was, need the it not quarter, debt the some find the is first to do know way I saw work second about it we not bad that quarter.

it forward. see don't So a I expect onetime think to go that was thing I

today's Ladies are your further participation. this questions call. for time. conference no this There and Thank gentlemen, you at concludes

You may now disconnect.