Core & Main (CNM) 6 Jun 232023 Q1 Earnings call transcript

Good morning everyone and welcome to the Core & Main First Quarter 2023 Earnings Call. My name is Karla, and I will be coordinating your call today. [Operator Instructions]

I would now hand you over to the management team to begin. Please go ahead.

you. Thank everyone. morning, Good Bradbury, & of Main. Robyn Relations and for Core Vice is Finance President Investor This Core advancing local reliable Main infrastructure & is with service a nationwide. leader in

our join We this are have earnings you thrilled morning to for first quarter call. us

first LeClair, business by Mark Chief an financial recent by of update quarter Steve followed I Officer. Executive today's lead acquisitions. our Chief then our Steve by joined full-year Officer our Mark discuss and am call outlook Financial Q&A will a today and Witkowski, with our will results a overview followed session.

conclude with the We remarks. will call closing Steve's

We issued our first earnings of website. to presentation morning press release our posted a and section quarter Investor Relations the this

call risks and As Commission. filings are the from These our Securities forth a presentation, differ uncertainties results projections. and our and Such reminder, risks the uncertainties release and release, forward-looking this subject include statements press to Exchange during could expectations and in and with materially the in to press include cause that our our actual earnings set statements. made factors statements

also the will our appendix results certain We in found A we measures, press can our and our of business. presentation. measures of be operating reconciliation these of investor to useful earnings non-GAAP believe are the which release discuss assess financial in

over the Thank Executive you for your Officer, interest Main. I to Chief call LeClair. in now turn Core will & Steve

expectations, today, to joining finished for Starting Thanks, sales presentation, quarter. excited Robyn. with quarter on the Good return of more the us share line we're X first our in a seasonality morning, for you with first our Page Thank to typical results you. everyone. reflecting net

in with and quarter first fiscal weather XXXX the last confronted in This when of comparisons tough, in quarter XX% year. markets. disruptive the major another grew year-over-year sales makes first some our Our especially of of XX%

of a to profitability elevated to solid inflationary XX%. pressure adjusted new offsetting first quarter excellent EBITDA and supply and record adjusted lower year-over-year sales chains margins points standpoint expectations, quarter a the outcome increasing quarter. volume, against gross XX improving our a EBITDA We basis had for with Prices deliver an from outperformed margin cost remained

repair end the continue healthy Our strong resilience project demand Non-discretionary show to municipal municipal throughout stable by replacement backed budgets first and quarter. markets and remain backlogs.

expected, we a significantly, were residential prior comparable. volumes As down strong compared year to

development seeing balance, the That and home are of many we vacant public believe representing level long-term in pleased customers the lot and the fundamentals housing short with are still said, solid, supply lots. a we from the of are is of demand industry of our Residential builders. we developed

and have positioned the growth from number side, scale On us of the increasing select has trends large markets. non-residential on to capture projects our an in shoring meaningful generated projects advantage

in non-residential tightening for non-residential which about While opportunities we the lending we to remain could that could optimistic demand recognize the growth have our services. standards products impact a development, for impact and on short the market, medium-term

over allocation opportunities. share investing acquisitions, $XXX the capital quarter, out we organic executing laid significant deployed quarter, made quarters. to maintain in frame capacity repurchases. growth in In capital work first million strides growth, the During we in continue prior And ample and we the we of to

product, and long-term customer, continue outperformance creation. of market in which support invest growth expansion We to to the initiatives, drive resources our geographic help value and

grow in expertise locations and For underserved our to products during footprint the accessible markets more first our quarter example, make we opened two new and nationwide.

new to to pool, efficiently we have greenfields mature open and the and our ability markets, growth training Our new due to attractive talent in offer scale branches opportunities, continue advantage, programs.

adjacent enhance of entered investments our busiest organic We markets, with to footprint, our these key initiatives time across and made the product we we've acquire growth broaden progress acquisitions enter lines, complement geographic the with pleased season. are talent. selling We as our our

three another acquire quarter. business the completed to subsequent during signed We the to and agreement quarter definitive a acquisitions

active, expect remains adding M&A XXXX and businesses new we throughout very beyond. to pipeline & to continue and Our Main the family Core

cash to repurchase from share quarter also a fund contributed operating secondary Our which million offering. million concurrent record by share $XXX liquidity the million to count XX a shareholder, was diluted our X share flow a first reduced repurchase with The majority shares. share

inorganic to capital one our we return and look organic capital number opportunities ahead, Looking to will as priority, growth arise. but remain allocation shareholders investments

on over Chicago acquisitions service of and and to two locations performing Metropolitan supplies high recent to the our annualized geosynthetics Landscape of three to in area. construction provider net combined added the is historical businesses subsequent our we fourth, $XXX signed generating Page million. family full products Turning quarter, sales X, a a with

the Since business in has at years upper adds existing well-regarded and LCS Midwest. more ago, states. XX offering built expands the opening nearly customers customers serves in control to erosion The than our talent product and and our team key a XX geosynthetics acquisition

regions infrastructure. products U.S. utility provider in the Finger its customers providing and for UPSCO Lakes sales reputation UPSCO York services a XXXX, of and Northeast, the trusted is infrastructure and earned services, of build Since Mid-Atlantic products and a Midwest of region in headquartered with New the to remediate with offices utility best-in-class has

acquisition to the and fittings, broad our market and customers. pre-fabricated products needs opportunities products In infusible satisfy customer thereby a meter selling its us sets, expanding unique product piping addition our to addressable solutions including to existing the range of for services line base, cross brings services. and This of adjacent valves, they pipe, offer

Supply XXXX, built utility them and as the storm we and our service drainage, products single in Northern of The Midwest Supply team service team reliable business. to reputation join Since Midwest commitment branch, to is distributor waterworks drainage shares Iowa. at full water dependable our have quality Pipe a of UPSCO and a are septic, excited strong distributor high solutions. providing infrastructure, products has and at Pipe for a

our and geographic and the contractors, commitment and reach the communities product with for This the services range municipalities, product and of acquisition offering throughout customers in a a wide team Midwest they The company to serve. agriculture offers alongside dedication expands state.

installer, concrete been leading other and West team of solutions innovative out distributor unique erosion drains, products, XXXX, a producer, Foster Supply the worksite and solutions, seven Virginia. at challenges. control and Foster Supply offering Tennessee, of partner precast has Since specialty seeking Kentucky, municipalities of storm for the and across locations is choice contractors for

to collective and of geosynthetics the Bringing combine that allow customers. team our meet service expertise needs will shared better to waterworks to Core product us & Main differentiated offerings and our and

of see our I Lastly, want share vision our advancing infrastructure realized through strategies. to extremely proud achievement to of reliable I'm growth that the

the to and All we in and capabilities one in customers is talent, deliver of to our is and to of the largest leverage scale, support have entrepreneurial, strategy suppliers. companies value teams consistently our resources, experience local Our our industry.

of our We've and have runway come way building foundation and a opportunities a long in significant executing strategy, & Core we ahead. the Main, growth for

call Go I'll turn financial Mark. to our Now, ahead, XXXX results to fiscal Chief our Financial the over outlook. Officer, and Witkowski, Mark discuss

X.X%, Steve. the compared begin the was quarter, We reported prior X of highlights of first the with performance follows quarter Page $X.X year Thanks, prior XX%, of with decline comparative decrease XXXX. and sales a the of period. sales grew on expected with slight net nearly our year first I'll fiscal in The for when net sales year-over-year compared billion strong quarter results.

levels, we quarter the during elevated contribution price for a positive and to sustained at the pressure due more on as material saw have return typical costs first quarter. experienced to We seasonality volumes

stable and and We more May of half have weather conditions improve country. April in demand with into since seen drier the across the second

period year beginning margins we inventory. of margins continue utilization gross to in XXX full-year the the be the likely reflects of we our Gross benefit quarter, the acquisitions, stronger basis low cost gross initiatives, XX.X% but of higher first at prior accretive expect was enhancement than margin and and the anticipated than lower the margin Despite of points execution the than to start for year. fiscal XXXX, to the strong of

increase anticipated of administrative as growth. first of quarter. for and the increased and SG&A sales percentage XX.X%. $XXX SG&A to acquisitions, investments inflation, million to a reflects basis the general Selling, X.X% increased points in our support XXX expenses The to cost net impact

the sales of cost higher seasonality a as of in to due percentage quarter, SG&A sales structure. fixed Our net and first our is typically

XX%, effective decline rates an held tax prior million and tax XX.X% effective in The income interest of first due & holders. in by Interest $XX for the with from Main, interest the portion to $XX rate on $XX was loan. in Inc. The increase non-controlling Core respectively. period. $XX attributable our resulting to unhedged was increase increase in year tax compared period, for prior quarter, compared interest was term the rates senior million expense expense million higher variable first the was of million, with to in year due a partnership quarter Income reflecting the

million quarter year prior share. period. of income net share SG&A prior performance. $XXX $X.XX per quarter, Diluted compared at The the in-line the primarily lower interest was for first favorable due to expenses, was earnings higher the expenses, decrease with partially recorded higher sales million volume, and by offset per gross the year margin in We $XXX with in first period

calculation adjusted margin margin upon of of EBITDA EBITDA inflation by gross nearly interest. impact adjusted common EBITDA was impact points our to share increased basis stock to increased cost Class average exchange The of common outstanding during in margin would investments partnership $XXX be Class diluted and stock, the the of due to quarter, shares The basic to support weighted performance growth. strong issued increase XX%. the million, dilutive earnings plus that includes the partially offset per A our XX Adjusted A X% and

operating Turning at sheet X, $XXX to quarter performance a balance the flow million. was cash Page record flow first our for on and cash

started in the our we a prior inventory $XX build first of spring year. continued $XXX to for quarter the in million and seasons. the quarter, second in optimization the inventory cash and first of inventory investment middle generating from million typically in selling We We year prepare the compared summer initiative, last with

maintaining this we net support with reduce to year-over-year service X% new acquisitions, due greenfields. On However, while was the our higher with even down quarter, inventory in the customers, first our inventory prudent the about acquired able inventory and basis, to levels inventory prior costs, through in year. our were inventory to a year product investments

EBITDA, and are of quarter. throughout the our cash last deployment end X.Xx, available year. I improvement expect took quarter of debt following mentioned conversion As flows the liquidity we $X.X actions we continued at was of at capital targeting in range we XXX% progress adjusted during the leverage the as an stands XX% Net quarter, to the billion operating and we cash

done majority our shareholder. million by The public we offering secondary the shares $XXX during X with concurrently a was repurchase executed million quarter share of

repurchase, by result XX count a shares. As the share of diluted our we million reduced

out laid quarter. we Our what last capital remains allocation framework consistent with

and growth shareholders to Organic we Number priority, intend capital dividends. or and remain continue our inorganic allocation repurchases capital investments returning X share to through

to We we have capacity in as ability the ample throughout confident develop to and remain opportunities they growth capture year. invest, our

I'll wrap the for Page with up update on an on of XXXX. our XX outlook remainder

market year. We for the volumes expect stable to the rest end of remain

to basis, quarter. new on level for homebuilders has development of from improved public sentiment and lot the a expect residential customers We and but construction be our last year-over-year down demand since

growth end in the replacement municipal to be relatively market we expect in project range non-residential mid-single-digit down expect exposure. activity, a and to stable year. continue We by low supported a to In for end and repair total, to diverse volumes markets the non-discretionary continue

and execution points of X above-market to the expansion from deliver initiatives. geographic expect X We customer, points to our product, of growth

growth an In that family adding X now within to have in last or more activity expect look of months. closed roughly and the points high-quality seen signed Core to of XXXX. the we from forward we've companies Main months, in recent sales We & terms XX acquisitions of acquisitions, acceleration

performing well, and into to acquisitions our them to continue our company. improve Our are integrate ability we

last the normalize to result the a to low-cost full-year. but of moderate quarter is lapse price and increases in better utilization expect from we We We've than a seen likely year XXXX, still inventory. ago price for gross continued to inflation continue as contribution margins fiscal we price we be our anticipated continue of roughly to the impact flat expect as

and Given strong our sales performance in net and EBITDA. quarter, expectations adjusted recent fiscal are we raising the acquisitions margin our first for XXXX

EBITDA net expect and $XXX We be to to million the billion, the adjusted $XXX range of in million. expect $X.X be billion $X.X in now sales we range to to of

EBITDA. operating expectation at conversion for Our adjusted to unchanged remains XX% cash of XXX%

year, growth the throughout to focus progress opportunities, inorganic continue on conversion through we expansion As we and margin operating and inventory will cash organic optimization.

customers stakeholders. well-positioned to this a are helping of all the We build we creating forward enter key environment, our construction our season. to for outperform the in reliable part more value We as complex market look demand infrastructure

it up to time, I'd like this for questions. At open

from Group. first you. question from Instructions] Thompson Thompson comes Kathryn Thank [Operator Our Research

is line now ahead. go Your open. Please

for you questions taking Thank Hi. my today.

question Mark initiatives, Just, federally Core IIJA, to, I When they first and flow several & win CHIPS do get funded at with [indiscernible] Main quarter. they the before how bigger through? those does those and look participate Act, Act, picture a to you as Inflation the dollars how Reduction

and lot Thanks, going what I would able addition scale, couple that a has in in, are these a different projects geographies. would part us. of areas chip of is piece been of share this that contractors us, lot have support just size benefit been it's these opportunity for Kathryn. involved you. we've This with given is that facilities But also all a A I lot across the Steve. our the Certainly, infrastructure onshoring share of that major that to facilities, of to battery are with the activity themselves multiple itself, whether new

We've assist been help parts country. to able of in that, supply in to still in be short utilized cases, the in some being other access or may product getting

and lot So, areas. get as we've utilize larger unfair work in with to continue those find these of to to share larger contracts, to of we business projects scale ways our continued these and size a

give was resi, clarity And to in fire more I softness a fire you color quarter, by deeper a Okay. valves protection on that? in could driven bit valves modest that pipes, more maybe as saw little declines you just And digging & pipes, protection and segment. modest then the on & assume the fittings, little fittings more bit the

I'll Yes. Well, residential. start first with

as certainly, end, into but in sentiment here, going given we've quarter So, QX, change up the the got we was development with have beginning scaling been we we’re as difficult homebuilders also saw more onto softening new from certainly to the we the residential from of that anticipated That year. anticipated quarter. what challenging comps I'd the back. – positive And slightly particularly as a some a last we call land pretty against exited seen

XX% we year. you last As saw, were up

there. we some were seeing certainly challenges So,

the some some the It's much softness couple typical that impact of areas, and to a across we out As areas protection, were last seasonality far which finger of exactly as parceled country. fire in returned part see the the saw. put of difficult other in Weather was we did seasonality how weather. different between also our on year

even impacted We certainly were into pushed impacted the lot And things in the California and other areas pretty with of areas extraordinarily it underground wet all then some weather areas in spring. of winter returned, a where those the a tough in northern and that in later seasonality work. was

great. Okay, very much. Thanks

Thanks Kathryn.

Capital Our Market. next Michael from question from RBC comes Dahl

ahead. Your line go Please is open. now

the made pieces better understand the morning. accelerating – us what's capital driving the like that when M&A Good you of pipeline? you deals for of do think of contribution, the Thanks you of activity. you comments buyback, on might now And in just maybe sounds acceleration than lot what I but points. have in questions. four then kind the progressing It a Can about, you taking outlined kind I the you think think some in anticipated? along with is to help moving start my wanted quarter a nice off Obviously, the allocation. about

have Just deals little thought you've to that's be I a closed. clear, based is higher already that the [Technical than Difficulty] would on

that contemplating inclusive deals expecting you're close? and any is from of So, that to contribution still

the in terms what about Well, little M&A bit I'll in first quarter. we of talk a delivered

in $XXX that came quarter. annualized had close as XX through that sales So, branches we you and million in to there, saw

very robust. be Our pipeline continues to

we well Supply. Water We're well, that other our number geosynthetics year, last acquisitions a get to in then Works. increase of those targets for number control, into to been acquisition of of some solid space with we into we've Pipe saw in able bolt-on really and continuing different as categories, You as see get And tie product a had too. as too Midwest you erosion

this. there. we're And gone a prioritizing. seeing been we about capital Mark talk see been The favorable robust we've let of So, allocation and how a very us more continue the I we've through lot a for little opportunity can very And as pipeline. have bit multiples to

for thanks the Michael, question. Yes,

expect completed And deployment shareholders. that continue capital we've you change we'll what commitment can priorities, allocation, we capital our the along of laid then that the during really terms represented described in On I repurchase the organic quarter again, inorganic path from priorities we the capital to the no think to of out. growth quarter allocation being our that priorities. And last that back growth, top

In terms for XXXX. of Foster in addition remaining four acquisitions we of of your the which and points embedded Pipe includes have parts guide, there, Midwest the question of on do UPSCO, the

that So, acquisitions been no acquisitions that's and not been this have have contemplation that point. all signed of at completed

Okay, around that's also follow-up is very helpful. Thanks. And capital my allocation.

the sheet end like flow the else one we if guiding to range balance low it cash the like in or all Xx. So, and year, the that leverage in probably you're for up, to look you'd Xs, seems net – equal, close the around at

kind So, to that gives range, available million target your full based of of you on leverage, or dry I year powder relative is a like turn your this EBITDA more of XXX guide. which technically, think

order deployment? to layering is is year gradual buybacks, in of think be potentially way this that – or you of you between think magnitude it more about, would can So, in about on the a thinking incremental and kind of of M&A terms that kind you deploy what of right

look of we'll continue and Yes, think timing Xx again a deploy deploying shakes feel right for And decent potentially over inorganic it us. organic our how the share year, and leverage a level about to where capital that think that time. to about assess we and/or The provides Michael, amount additional yes, flows but dividends. through Xx this it, way period capital, leverage a out to that's repurchases timing as we we'll comfortable the think cash that's of liquidity that for the is that of level and I of initiatives, to

That’s great.

Okay. Thank you.

Thanks.

question Joe Our from comes Goldman Ritchie next Sachs. from

Please is line now ahead. Your open. go

morning, Thank everyone. you. Good

maybe wondering quarter. growth was could I start So, bit a little you you can more your by if – was start wondering organic on color maybe I by giving us just if this

kind any standpoint. the on they – expected So be And and specifically, pricing volume from how but a year, quarter contributed first out is quarter? started of markets magnitude to curious, the like order different how know like also of end the curious to the flat I for in that pricing

we've in I'd of quarter, breakdown range Thanks, the impact say, an the, the Yes, the we much the seen for less Definitely price I'd of from terms were years we a quarter. Yes. as in Joe. for saw than sales standpoint, say, prior in what of the in the residential pricing there a prior range And volume the comps, some the year. market there softness bigger double-digit impacts, particular given stabilize. with that from and the low of end perspective, in residential in really the in market, then kind tough obviously, single-digit

and And return in the due weather to seasonality typical I'd primarily and we say, about some to down that impact. to the extent muni lesser that from non-resi volume perspective, a of the talked a was

wouldn't I but the that drivers in necessarily market softer the were quarter. volume So, the call necessarily, of

in infrastructure the some that of this come question debt maybe guess, ceiling. a been is, curious, through. to We we've specifically, while my now waiting what spending through for just on I side like to follow-on like And helpful. super muni any That's Okay. of into clearly, that got know clearly, just I'm the seeing, for customers? mentioned seem bit early from are would the around second I be half gotten have that predominantly to and you Just little a April was muni-driven? that your what color you helpful. May, things are better hearing that, you

Sure.

flowing. of think things certainly this have strong. municipal gone and been have seasonality From but hampered quarter, We to with incredibly piece activity been some way some into encouraged projects through we're perspective, first starting the to I bid in what by municipal budgets few its as had has we're The funds really piece. a seeing the make continue resilient weather that projects. in a IIJA Municipal been we've trickle period. be seeing

in in some been allocated. one Florida, We've another Arizona that's seen

of starting So, certainly still we make and see to those green we anticipate, slower ramifications it but than coming positive and its know that is also shoots starting what through, way through. would to some

for Steve. better ask to to more. the I [ph]. just [XX.X% just the XQ off much looking Clearly, XX.X%] a you're one great start EBITDA at That's XX%. adjusted hear, I maybe your guide in If at could was to year, margin

level, of next progress how we think do this our like kind the from about a the seems of conservative. So, quarters? as What least – like the are Because – in high through – at looks of year? rest very three the number offsets it some looks you

Yes.

us, think you additional low-cost as at some terms had of what was of look the some in the for I the obviously releases, we inventory guide gross in the quarter. from margin the embedded surprise of

normalization we at we do as year. expect the at talked year-end, the gross at margin progress level As throughout point, it some we about

I'd expecting, was to point say XXX quarter. even driver for reset a inventory we're basis the to on us still to we little though that's in basis But some early which think gross that EBITDA of revise low-cost that I'd yet margin say, the some too about. make have we've in I talked the XXX range, normalization margin that we primary but did point the progress that release

you. Thank Understood.

Anthony question Our next comes from Citigroup. from Pettinari

now Your line open. ahead. is Please go

my Anthony. on taking Hi. Asher This is for question. Sohnen Thanks for

– EBITDA to than looking increase one, low-cost it guide, to Just the up following be by last at expected. seems part inventory your on driving more [indiscernible] the

maybe some your moving low-cost you So, more make or sit enough that? bucket, expected, of has strong the inventory volume driving prebuys? of been or through pressure pricing sort So, continue or is may be doing maybe a to than with inventory slower into, just what's of basis that function even you're to able

is really you through – that all softness to the inventory we longer And take did to there. I get question. I QX Asher, of mentioned the the think that in the given it volume. us just system answer mean, some items good in

of hanging than to continued that we some anticipated. come opportunity see product invest to categories longer in to we've an some So, given through. also price It's other are that us on

I'd have are to beyond some progress in the those then margin of initiatives we we've some other that, got. And continuing say, our make particular, So, been and pricing against the of label, factors. gross that initiatives, private

I the of you'll see the us it kind some longer takes release think is to, So, – what of that inventory.

You offset more too for opportunity we of know, that I expecting, that reset again, have a we think an But normalization we've to have. us some the margin that gross early level. adjust of just that little been to

And sort seeing commercial or sort that? then Okay, helpful. presented In prepared your but credit risk delayed Thank private tightening, Are you you kind segment non-res like you. of projects remarks, I'm about impact, kind have from the to, at talked of That's gears. maybe I of on the you think of something just switching through anecdotally, that? start get come seen still the wondering or even actually just, the

have about we really end we perceived much out at projects bit credit from we for projects if that see really there. project the seen – the at favorable haven't As that quarter, a happened, in been look of all us, have you challenges And have credit and and those commercial the non-residential. been of onshoring institutional or buildings, little have, from mix these warehouses, and data first the and a of large talked all we've there. diverse challenges of impact have volume activity that bid types the that and trends to continued Everything centers, we

earmarked of bridges, billion look that drainage that for we the infrastructure as just to addition at particularly a we and erosion view that's contain products. control and as tailwind, In been federal roads $XXX funding storm projects

make lending we bit we're So, a of aspect in here the terms happening seen so it. what's we've sure understand but not this, little of far, to closely watching

I’ll Great. That’s over. it helpful. turn

Bank comes of from Andrew Obin question next from America. Our

go ahead. open. now Your line Please is

Good first the This maybe versus was David Can it gross guidance the fiscal quarter How outperformance for change than morning. on of you here this the versus you Ridley-Lane help had is margin acquisitions EBITDA the much Andrew. bridge adjusted feared? for year? additional being better in

thanks the David, question. for Yes,

the full-year, As the up primarily to $XX that million. for acquisitions was we better-than-expected gross the of it you added at of the included midpoint, the that it the related that The we adjustment we look I'd were the be in Half had prior guide. guidance in took say, quarter. margins at remainder it EBITDA to about would that was not

for much I you you to have that. And because of different couple know of gross Thank the – how then internally a initiatives improve margin.

the And so, from another of cost progress the of the, wondering just lower kind of, sort I'm underlying inventory? of what sell-through just, was versus, kind benefit

but benefit a Yes, initiatives, at label David, inventory the other of if you're from release of chunk coming still standpoint, gross and margin say And sequentially looking there, some over was nice you good QX, say, particular, say it from some in of the year-over-year, a I'd most lot place. of that margin from still private a through the in if some that of of pricing inventory. I'd number. that put of had QX look I'd it release low-cost in we initiatives improvement QX at gross to

a Hard releases lot of some of those to make on a just progress inventory. low-cost still had some that initiatives but quarter, of in nice

primary components say, that. the those are, of I'd So,

much. Thank you very

Thank you.

back I have go ahead. We Please no hand further to further now host will remarks. your any for questions.

the you was a all you to It joining again today. on have us pleasure Thank call. for

diversity result and our work the quarter-after-quarter a field performance of products direct and our the strong of on and consistently operational hard Our is our discipline, of functional end markets. focus support teams,

momentum, positive to for outlook our and on fiscal build strong well-positioned have XXXX. are We we a

for innovation, opportunity creation provides value in is agility, grounded growth and platform significant our execution. strategy as Our

well-positioned execute Main. tremendous for you are We ahead amount Core & to on a opportunity we us, have those interest in Thank opportunities. your and of of

Operator, that concludes our call.

Thank call. you. today's This concludes Thank for you joining.

now lines. a disconnect your great may day. You Have