ADT (ADT) 8 Aug 232023 Q2 Earnings call transcript

Greetings, and welcome to today's call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Elizabeth Lippitt Landers, Senior Director of Investor Relations. Thank you.

You may begin.

morning, good and operator, everyone. Thanks, business. joining We Second morning to Commercial ADT's call XXXX appreciate to earnings our this you Quarter announced and discuss we today's the sell transaction

President Speaking and EVP on CFO, Porpora. Ken will today's be and CEO, DeVries; and call Jim our ADT's

Q&A Officer; Officer. prepared take and EVP Chief Business for Wayne the Young, EVP Also joining analyst Thorsen, Following Don questions. and remarks, us we'll are Chief Operating and

press press this an the release morning, materials separate we our and Earlier business accompanying as at on website These on earnings of well release commercial our presentation. our are sale available investor.adt.com. a issued as slide

events. I and differ include need represent materially. or cause that that These we mention that are future could to beliefs do subject to forward-looking forward-looking start, uncertainties actual statements risks statements today's remarks results our Before about to expectations

filings. factors Some our in of cause SEC described the differences are that may

financial GAAP Investor on to the slide call non-GAAP And be the call, found on measures our the with discuss I'm that, with Jim. those website. can over turn to ADT the along also reconciliation presentation measures to We'll measures on comparable Relations earnings directly excited most a

our second then everyone more morning, about quarter the we talking I'll exciting road for bit Good quarter details I'll divestiture results, the you then second the perspective our some divest I'll finally, over comments the Porpora share premarket results. us financial about on outlook. and to Elizabeth. for our And and ADT's on begin thank to share some call about turn Ken today. XXXX a I'll Thanks, made joining announcement to call the commercial business. ahead.

into a just a private security, equity for to announced purchase ADT Life Safety our a firm definitive Commercial agreement GTCR, business leading morning, to price unit This of it Fire and divest this quarter in The by is billion. year, over our transaction close fourth Directors approvals. to of including closing customary $X.X the conditions, subject expected of regulatory and approved to was entered Board

of transaction will benefits There value. are that unlock key shareholder significantly X this

enables divestment business the growth facilitate ADT to Solar pursuit residential the in First, for Smart of more Home and markets. significant focus and small opportunities the

price billion at equivalent attractive value to and the a is allocation enterprise sale costs. EBITDA, XX.Xx estimated $X.X trailing the XX-month over multiple just an represents of of Second, including an corporate adjusted commercial

will leverage profile our ADT following close meaningfully Third, be the proceeds of entirety net current the by leverage to reducing our of from down used to a reduction lower transaction. X.X, down years. of X.Xx, X the ratio of the the debt, level pay accelerating have The will goal net debt achievement

strengthens financial the ADT's Fourth, transaction profile.

pay EBITDA debt divesting We cash expect impact and higher margins down commercial interest adjusted business. from to offset of the the savings

revenue investments prioritize for term. positioned be to the profitable, drive will better capital-efficient long We growth will that

is maximize the And commercial valuation beyond margins. transformation. to business from healthy testament price sales and revenue, shareholders. right and EBITDA finally, the divestiture benefits, ADT for the these The the we're To confident strong key is clearly in Commercial's value our this adjusted X value conclude, great backlog growth improving monetizes to a time a

overall dedication, the has Commercial moment like the grown to for inside McWilliams and business built service commitment and where team the a you've led Mike support thank culture ADT I'd Bresingham, Dan it has The commercial to take to excellence. their business entire your today. and

our XXXX. sales XX% Smart convenient retail exceptional and is expanding $XX our capitalize, road U.S. residential a in addition and include turning CAGR to To billion Home channels at business to grow we're and for approximately Solar Now and market security, addressable our today small total to e-commerce is in-home The combined ahead. consultation. through residential to expected

pricing, in peace customer innovation of new to increase driving capabilities is mind more Smart of choice seeking us advertising installation ADT's for the and product customer options demand. further and ADT refreshed a our security. and provider people that to awareness position campaigns Home the differentiate preferred continue and are experiencing to already transformed convenience as commitment ADT's Consumers driving

There are of platform our emerging development number the Product catalysts accelerated driving have our as a transformation. SMART few with development in years. Monitoring differentiators. of and the past unique growth ADT+ innovation And and

hardware Google products devices Our industry-leading by with with distinguishes premium our partnership Nest powered AI.

retention. enabled take have customer rates home, of installation connected higher to larger, home devices and XX% translate period. per and revenue is help and products the a engagement home, increase us the over which the These prior correlated share in number to wallet Google up to of to expanding our our more systems variable increase representing device key year higher

customers. accelerate second to rates video take for quarter, impressive when attachment we install We Google the our see to of introduce continued pro and In remain Nest our on Doorbells even DIY approximately an we rates integrated partnership experience anticipate ADT+ XX% through integrated more new solution. in

our partnership customer that also will State We our markets reach costs. and new anticipate lower into broaden Farm subscriber acquisition

we for State subscriber runway We year. be policyholders continue states available with XX in up efficient in offering Farm to about it's in growth. future be expect this early to capital the to the Though to excited our partnership opportunity,

to second in adjusted approximately and turn was quarter. like small increasing XX%, X% with share EPS. Total solid I'm business adjusted deliver and and revenue cash and to year-over-year EBITDA, now adjusted we respectively. continued flows $X.X billion, to with revenue pleased consumer the commercial results in free I'd growth by to

$XXX million We net million. record balance $XXX year-over-year. quarter the was recurring monthly revenue posted X% Adjusted of ended up we EBITDA with or improved and adjusted a share, diluted $X.XX per income

with record of Our revenue stands attrition payback now XX.X%. from remaining record at X.Xx down a low gross a at ago, X.X low a year years,

producing to than free more cash previously. lower is rate swaps, of combination flow, quarter of interest and new translates up XX% year. SAC including last factors per efficiency, a attractive The anytime continue rate retention greater subs sub capital versus second better on return adjusted These that to drive

our evidenced customer commercial continued monthly impressive continued revenue Home by robust The and in remains double-digit market segment the and security with recurring high consumer And performance. margin to ending revenue. deliver for resilient, retention Smart growth

our division continue pressure by price higher partially to driven see sensitivity Solar in rates. consumer We related to interest

steadily pleased shared not we we're are issues The with financial previous the by improving. house. on results, calls progress While the operations of backlog the the side in are encouraged

Smart we've and Solar focus of as X sales well. With ADT improvement dealers to sell the we've and in good training reps key We've stabilization with sales had turned to now and growth. success partnered hiring our operations, Home our

access on financing added location. alternatives We've are who from depends The attractiveness and switch our diversify options as banking soon the providers customers utility just energy have to costs our loan want well. additional the to Solar financing of to a option of including help factors, Solar offerings. a renewable expected can now lease customer's variety to ADT in

Financial. we leadership customers and from alternative agreement to the enter offering a with both week, important an loan the team market lease have feel principle SunPower to very partnership this into good development. SunPower is We leasing an shifted to Financial. capability Last in of announced and about Portions of

a programs, Capital to our with access Mizuho we markets. the diversify through facility announced for financing also just to loan ABS To receivables in-house allow

several began customers week, long we're in Solar Smart we eye quarters. last Finally, closely. We're this monitoring to and next business, with cross-sell progress the to Solar versus focus a the Home realities, but term the to not with investing blind just on

expect much Home capturing pressure with sale EBITDA Even Solar. install improved still rooftop our residential time, as in revenue so on and adjusted Smart excited is about cycle as half. the well summary, share cycle second months, security and the more catalysts we In to growth several in we're

small We for innovative multifamily are provide in and residential the positioned premium customers to business our markets. experiences

Solar our flywheel penetration grows, and our in Home the As residential accelerate. to Smart continues market

We upside confident over serve continue well markets, see term. they we're in us long to opportunity the will significant these and

of resilience them they to for of take the results and Ken dealer every to reflect to dedication Porpora. all partners. and want do thank our our CFO, Finally, XX,XXX-plus turn positive now I'll employees ADT's call and I the day. determination customers our care over

Jim, to call today. Jim's commercial joining To sentiment and the agreement our to begin, to want divest echo on for our Thank I you, everyone division. thanks

on We focus quarter are add color I'll and excited about on then the the to shift unlocks. the strategic and first second financial our for this year. benefits commercial the transaction divestment outlook financials, on

and earnings, illustrating was the and improved We're record retention base $X.X off continued average net for a year-over-year an leverage or company first cash billion flow decline Total business. strong RMR in ratio, resiliency a the revenue, our half to $XXX of was strong from quarter subscriber and with the of of solid X% million, company our recurring free revenue and to our outcome higher our pricing. year up a customer continued monthly

the balance, Within remained year, last inflation. at flat gross pricing at a continue about XX.X%. our RMR to were slightly growing residential we Gross additions did excluding low bulk RMR outpace and year-on-year, record buy account attrition escalations

loss income. offsetting $XXX margins of X% near-term million, share, was in prior was consecutive up net Solar. net EBITDA $XXX CSB the or positive quarter fifth outstanding quarter and the million both Adjusted per for Adjusted some adjusted income of our in Commercial, $X.XX versus with year

now improved down X.Xx, X.Xx ratio year-end is Our net leverage from sequentially XXXX. and at

receive to of credit corporate continued by reduction a our recognition our goals. rating pleased upgrade debt progress in business We durable towards are and model S&P

highlights the for to Shifting segment quarter.

second and EBITDA Business, $XX by legal increased Our revenue CSB XX% for programs billion total the or CSB with some X% in coupled by up Consumer revenue, year. efficiency and driven Small quarter, prior the of versus in-period segment about cost settlements. adjusted our increased delivered or million $X.X quarter,

CSB prior posted of improvement basis an versus year. an margin of XXX points XX%, adjusted EBITDA

X.X accelerated years within continuing strong revenue Nest record driving and to efficiency, our are a Google for an which improvement payback just X.X SAC a from of have We see CSB, years products, ago. are year demand

year-over-year with integrating new Google's $X,XXX existing subscribers customer building and our Install up subscribers Installation is base Nest than Revenue products with a unit internally app and developed self-install. ADT+ over higher choosing services $X growing for the for is Residential ADT are signing per RPU earlier year to approximately up for up to in self-setup averages. XX% Pro launched additional

product Success in integrated received campaign, mentioned marketing We've and work. far our we in offerings from $XX funds our awareness is in we with quarter, driving are are XXXX these of which million worries no contributions funds to part our so by being success As funds. supported last Google putting

early later Jim this We said, year. on momentum we the offering. geographic State looking further are forward have Farm some to And also expansion as

We for expect future these growth. partnerships catalysts to be

CSB. efforts on quarter, great are margin in progress making last cost is EBITDA Additionally, contributing the we adjusted which efficiency I to improvement shared

win year, in more virtual this to remain of than million end for have a in we'll of service virtually. years the both come. our requests million program reduction efforts And with to requests to assistance over cost will for have July that serve of reduction we of completed cost roughly pay customers all Since By dividends XXXX, huge the the $XX customer cost and ADT's complement the launched virtually. program satisfied X.X service XX% benefits

$XXX Turning revenue. adjusted of prior up revenue year in drove margin sales XX%. up revenue year and million to the $XX EBITDA installation versus both versus basis XX% This Commercial XXX and points prior XX% quarter, strength commercial to segment. the with expansion up We of total in delivered strong performance million

this pressures and revenue business loss Solar an address continues the million quarter shifting million. Our of in remains with a the $XX to ADT posted of key EBITDA trajectory adjusted $XX Solar of focus. segment

of result previously previous a charge the impairment disclosed, took noncash million conditions a with results Solar of $XXX goodwill the and to we our associated operating segment, quarter current in relative macroeconomic expectations. As

We previously not we EBITDA, the flow related adjusted annual free impairments to and including the adjust and to quarterly our as measures, cash this goodwill historically tax with reported segment. related errors associated restated adjusted identified non-GAAP filings have correction. Also, any statements and to Three EPS. impacts noncash disclosed, adjusted Solar did for impact

plus sheet. balance revenue prior versus with quarter in swaps, free the million, EBITDA in the efficiency flowing improvement cash the was flow, free to to including up benefits through record XX% Adjusted payback. SAC X.Xx low of the Turning from and cash flow, flow $XXX cash the adjusted many year,

partially offset improvements year-over-year in free flow. cash interest expense cash adjusted Higher these

the the the statement, X% of in interest reminder, variable swaps we subject is swaps, given financing rates of than flow why with our focus a less of including to section our these which timely free As flow, benefit swap impacts. is debt on our rate primary cash cash reported

million remaining on from $XXX and have we cash loan left this hand. the balance year. XXXX, In term currently redeemed maturities We outstanding in proceeds of the using quarter, no approximately meaningful borrowing notes due our

the on quarter. $XXX redeemed also second $XXX We during million million cash with the notes of hand XXXX

actions, leverage will along springboard commercial other X.Xx the Our our divestiture ratio cash generation, with reduced plans. net to our and

I'll to some color now on add pivot commercial divestiture. the

represents shareholder It proceeds significant number our As a EBITDA efficiently, key value. attractive. commercial those goals. quickly to enterprise allows and value The and of XX.Xx to redeploy the accelerating transaction mentioned, Jim very unlocks is us benefits debt reduction multiple adjusted

Following the net quarter the fourth close reduction. of sale expect debt to anticipated the proceeds we in against XXXX, deploy

we're spot. advancing post-divestiture sweet fully commercial lost ADT's net stated goal quickly and reduction, interest limited significant to flows the exposure, debt leverage. the business, With expect leverage interest from savings multiples leverage sub-Xx We to closer very this rate of variable offsetting cash

of growth to adjusted framework, our growth lines medium-term flow adjusted of adjusted rate revenue adjusted market flow growth proposition revenue cash in with ADT's for commercial swaps the line billion free interest year-end I wanted reiterate CSB $X a in new ratio and mix approximately EBITDA with free XX% by exceeding Given plus, leverage Xx XXXX. subscribers including of new investment and the cash net news transaction, growth, than annual of less target business, of return for with internal

funding priorities debt leverage Our continuing sustaining unchanged, are net achieve growth including attractive to optimal to pay CapEx to allocation ratio. yield our capital and dividend and returns, down

of for the finally, to And outlook turning remainder our the year.

starting be our and in on call. expect guidance update guidance reflecting Commercial, full basis, third quarter the an operations reported discontinued XXXX to including next segment we on to updating XXXX, Commercial our of the as are we earnings year While as-is discontinued the ops expect

I estimated divestiture will, commercial full to on the reconcile. however, year help for the impact measures the share key

free of guidance. EPS our reduction from from a solely cash of flow, and XXXX and including business. the business, in billion market stemming year Solar While in to total the $X.X driving We billion $X.XX reduction revenue segments to $X.X our adjusted adjusted allows now cash guide conditions are revenue Commercial adjusted the maintain billion free previous expect swaps to with $X.X Solar CSB current billion to strength full us our EBITDA, flow,

Included estimated approximately Jim now turn for comments. our XXXX EBITDA over unit. in allocation of year and approximately corporate costs million is $X.XX billion to commercial in closing for adjusted the full back after $XXX range I'll business revenue some in it

Ken. for ahead. closing, ADT poised and excited the Thanks, future growth In extremely for is lie I'm opportunities that

framework Our compelling when ADT the medium-term shared. that addressable just is market approximately is large investment target XX% expected a XXXX. with of total Ken growth thesis serving through market expanding coupled with and

brand most And scale Xx to competitor. business relative the awareness, tailwinds, ADT a from brand, trusted peace and brand secular the with is growing and industry-leading most mind. closest a most preferred safety brand one. brand synonymous powerful We're the to we positioned is ADT XX% the with are with considered of benefit the

the with allocation with a partnerships now large call turn attractive Solar stages. a compelling ADT stable growing profile base, base profile million ADT will capital increased X support our unit improving framework. the predictable early opportunity divestiture, over with Q&A. strategic cash have disciplined growth. economics with in to debt And X resilient a flow ADT and has for with and investment revenue an with operating and I'll world-class customers and operator recurring a RMR unique for commercial that margins. a over has has ADT

Goldman from [Operator Sachs. George first Tong question Instructions] We'll take with our

business. help softness execution year improve of sounds you're to Solar reflect guide when the within see and performance? the improved internally expect updated on describe would you to that primarily you Can full adopting initiatives Solar side like was It the to

George. Yes. Thanks for question, the It's Jim.

So clearly regard pleased financial with not to results. the Solar, with we're

to As and address you're deep-rooted Those operational improved. aware, we intentionally growth have slowed down customer some issues.

rates. being back principal to than However, headwind on the we turning higher growth slower proving interest with is anticipated be

I on Cycle side sales. focused times we're would house. backlog The issues are focus the say being to the I'm the encouraged our progress turning operations -- addressed. improved and of by now

priority directly answer more to engine question, back your is so the turning And on. the now sales

just should shifted market then has partnered week, loan this lease reps. last obviously - be Smart Home Last We've September. productive success and Solar. PPA And a The alternative signed and to pretty dealers from We've hiring this monitoring our and for us in we to quickly. Home getting to a and of quickly ADT that the important We're Smart lease we customers, sales speed key deal X with we're good is them progress getting started cross-selling sell closely. week, partnership very up deal in SunPower. with had market done

helpful. Very

On where guide -- the relative reflected it ramp in? to Can like looks the you perhaps quarter initial discuss expectations? of states expect relatively the terms year you side, in your And in Farm to products strong. number residential in the you trends how of currently upside full the that launch saw are State is

Yes.

You Farm a growth a in that's work bet, vision. the of compliance will we're offer comments And quarter. the State program, and on Ken George. share the I'll and XX Farm, deal incredibly of been to states the transformation by regulatory on year. State the with start end aligned customer-focused. are the on perspective We're great very QX, companies in out rolling launch the I methodical some X then accomplished. states think, of being couple had partnership We've the and -- of

on very front work marketing July. in on and There's product been lot a just turning in of feel We that development. good

partners lot them with a I the side. long-term Farm company remain terrific as work the of I But customer-focused start have regulatory started The -- aligned is the vision. organization as doing on State with of methodical, the customer and the bullish. super and launch, we been So said, on

And the specifically on to CSB just the had George, overall you growth up mentioned, add Residential, momentum like we on X%. business, RMR the in

XXX margins another and the up year-over-year the low. margins, record are bps low, attrition, X.Xx saw You record overall, the SAC efficiency EBITDA at

Jim And to catalyst our launch more we we the builders ADT as really Google product additional So related the business. the whether Farm momentum then it's well. own just you that State existing see innovation, see the and or start as about in platforms catalyst talked

well. setting in but So term as we're pretty results the up foundation the some near really putting impressive

we'll Next, Barclays. Patnaik to with go Manav

on Kennedy Ronan is This for Manav.

you So the capital understand financial the pay it EV therefore, debt. proceeds and efficiency better was lower terms just be commercial, it of divestiture because the help benefits X can to us articulated down better to the of the with including of But the you regarded being a business strong returns. in --

as So just and it than CSB. lower a the flywheel of the flywheel, the to financial and played the payback the more from the be overall of as KPIs some also what also such how was it think impacts will the without standpoint, I into considerations also impact

So of of assessment just financials. your consideration more the on full

our business in enables on We've opportunities us, it to talent focused got think going to we Yes. thanks with start to then And have and some perspective a last advantage the more question, lot share transaction I'll like and operating I'd residential for to over time Ronan, We small the that hand the some helpful. details. Ken to an to there is think that on. available it the offer the focus. is and question. benefit. us

generation, product to are and that some about of business, be our returns, the enhancements partnerships. the We upcoming course, incredibly continue cash excited core

EBITDA [Technical both segment. COVID growing 'XX business, to But your After Difficulty] line. 'XX, bottom about your was total our the top to nicely of point, and directly the represents about commercial the an X% EBITDA. ], reflect valuation as the Turning and we [ purchase in question It stock using doesn't opportunity the costs you of the believe EBITDA had $X.X XX.X%. we value know, Xx company. of at the And with stand-alone was a price multiple billion intrinsic approximately our

able very versus unlock market. and our leverage important, we lastly, Ronan, price good then today. where to to the much a stock more is asset and this an in facilitates trading And getting received, arbitrage reduce the for our quickly. So debt, we ratio there's ADT I'd value that's it say objective think especially for Essentially,

flow -- And Based [ Ronan, what we it's Ken to just so the a that we is fact cash that than the as the said. leverage add near upgrade going on it see flow unlock to or Jim on it's fact and XX ] down ratio look The view -- that the cash is biggest we free multiple bit -- term. significantly to in neutral. the

As they obviously, portfolio. a and far of in while lower business margins lower. lower The the was than were overall commercial, were still that mix as the the improving, business EBITDA attrition bit

spike on would remaining how CSB But you'll pull bit look. deck, we and our up in that leverage the see for the But once to payback break accompanying you then pretty And how did the give bit. of us. and also in it ratio payback substantial. that color moved little it is will kind we business accelerates So some is a the out, debt tiny think out revenue We our prepared fantastic slides what transaction overall a lower.

can strong. else Solar, That's Anything and the cetera. to kind you answer And strategic expectations long-term very then what changed business in off operational et the why the for back of seeing that, the else you the of just that of time helpful. for makes since because obviously, operational confirm, question. the were trends were -- business addition focus, now the the And discussed, have acquisition. Anything to benefits, I then

process the On say some of reach years, about little with opened business. received agreement last broadly inbound were inquiries a a of this of couple couple After and GTCR. buyers. We with considered several to inquiries we've up able process, commercial, the commercial earlier year, the more Ronan, in terms in I'd we the inbound consistency

to and especially have net of we now past. the They Ken got the important our had you the just proceeds I team. commercial commercial perspective, pay cash that invested flow time think a savings good from price, the businesses to they've delevering from underscore, read, great then free anticipated right business. in flow from debt. in interest using may expense offset cash a decided comment As been essentially And gave an is us all They've very rate the a down

to with Stanley. [Operator Instructions] Kaplan go Toni Morgan Next, we'll

on to sort of portfolio wanted actions. I start off

you from So additional actions here? after portfolio are selling -- now considering commercial, would you

considering nothing incremental there's a that today -- was potentially in business. opportunity I core think we're better actively, larger nothing delever The deployed we bit contemplated business and largely inflection commercial to Toni. It's as today. the commercial at an capital that meeting earlier, point, the was instigated of said replace the there's rationale. And cash of flow that, of sort outside But our

arsenal And and Toni, We throw growth play us. penetration down we that do tremendous the do and we for and in some business catalyst really have opportunity. that And think the the -- now if future that we just shared assets we The think it's the Ken, to play pure it's of rates, market reason a the I in, want growth. that has our to could CSB so. have we place, double we ride

being to participating delever business. that and on and efforts in how substantial our We where the opportunity that a is growing we divest, are see focus So able market. market growing given

to you with last should new how the how a the sort in a what on of we some rates know has that's or new And then could just just partnership. Solar, high of And But sales. been barrier of the about of I over quantifying that. Solar, on terms benefits few interest market Great. financing from anything weeks the maybe comments some think any better to I mentioned months. regard signed Maybe getting you or you're expecting maybe macro know the changed Okay. you a worse? about talk

-- It's Jim decline. The modest talk a estimates estimating I've growth year -- rate you to on XX% place. Thanks, [Technical some Difficulty] comments have and are people -- on over some talked to all Ken people. your the number ask for It's growth, a of question. then Yes. this Toni. macro Generally, elaborate

were interest in modest the it one reasons sales there's important much it's for when probably interest a of product, get decline, in of sales Our the the driven year, sense drives rate of with that compares why of the at cost up, closer neighborhood doing rates many that to environment probably to is loan the Solar XX%. the us customers PPA a market, these bill and it's of higher beginning by leased. neighborhood being are because is which of of And product exiting the something XX% this in the year, so -- something of just

as term, we're renewable So we product market. residential about about lease I getting Long bullish and market. good the said and with earlier, SunPower energy that in about feel bullish partnership, the Solar

And theme diversification. was Toni, the quarters We of options a that here us on the couple for ago. about talked

banking And partners, option will the eventually and into the have ABS in-house So also we through well. have have finance loan they customers we they now as tap to loan, either financing, a securitization option, option. and lease within upfront, which that a could pay market now have

based options you on customers will become the So on that attractiveness of provide we've from again, executed an standpoint, geographically, the depending are utilities. on more and The theme now where diversification, options. different

on the what are options, going those you lease are. loan it's rates U.S. and where depends or different the a whether really So in

We time. have any no DeVries further or I'll back additional closing Jim remarks. for this questions turn at over now call to the

David. you, Thank

of a growing loyalty. divestiture about key commercial. lot As momentum our from building good brand you innovation, the this driving are of and about we good effectively, benefits feel the business the feel in heard morning, We

a a do like and today, appreciation my Thanks, results great ahead. to employees road have I I'd exciting outstanding to your call quarter. as everybody, good our an have for extend each ADT as joining quarter We dealers. in for day. the Thanks

This concludes today's conference call.

a Have disconnect. now great may day. You