GEE (JOB) 15 Feb 232023 Q1 Earnings call transcript

Hello, and welcome to the GEE Group Fiscal 2023 First Quarter ended December 31, 2022 Earnings and Update Webcast Conference Call. I'm Derek Dewan, the Chairman and CEO of GEE Group. I will be hosting today's call and joining me as a co-presenter is Kim Thorpe, our Senior Vice President and Chief Financial Officer. Thank you for joining us today.

It's our pleasure to share with you GEE Group's results for the 2023 fiscal first quarter ended December 31, 2022, and provide you with our outlook for the remainder of the 2023 fiscal year in the foreseeable future.

I estimates, today about expectations performance. and forward-looking, be our Kim predictions, including and comments will may make considered future Some other statements represent results may future materially from what to These statements. and differ judgments forward-looking are risks actual and subject the that uncertainties our current our holds of SEC are captions below Form the Tuesday's and statement most recent caption press risks statements statements. earnings statements safe These and release the described and forward-looking XX-K filings and regarding forward-looking other XX-Q, uncertainties cautionary in under under harbor and forward-looking our no We today's to assume obligation on update statements call. made

this During the financial non-GAAP will earnings are about of measures. will we some the address today presentation, non-GAAP also we measures included explanations Reconciliations release. and in talk press

amounts and related rates, based financial growth are it and trend around rounded including margins amounts. upon items, Our presentation metrics of

amounts, For and purposes percentages accordingly. related items and this call are approximations of all presented

for Investor website, are our For call available today's convenience, the in www.geegroup.com. prepared your our of remarks Center

again achieved of $XX.X We revenues fiscal quarter, consolidated very first in once with million. beginning good results XXXX

profit consolidated $XX.X respectively, XX%, and XXXX. fiscal margin December the gross first Our million for quarter were ended and gross XX,

Our XXXX was million. of first achieved for EBITDA $X for income consolidated per $XXX,XXX consolidated XXXX quarter net diluted $X.XX first quarter. adjusted We or share non-GAAP fiscal the our

in current businesses. present in peak contract particularly quarter will compares the unique work. further, project still to hire year's into were in terms for account demand IT our the first of amount professional COVID-XX-related last first due explain fiscal Kim average direct of As a prior taking results year quarter opportunities growth The and above first favorably quarter and current significant

will day say continue to factor of future Kim, in so important most best ensure employees in Before to to service. very I Group and underpinning key fiscal stellar wonderful to every be that performance work our They was far want over This fiscal dedicated in and I extremely clients our XXXX XXXX the thank the a hard turn get you to and associates. the our company's it of GEE success.

to first I'll At will XXXX Kim? over this CFO, quarter fiscal further the Kim who results. on elaborate our our time, Thorpe, turn call

Once first and was morning. $XX.X for the million fiscal with you, XXXX $X.X Thank again, first X% which quarter is $XX.X Derek, up revenue lower good quarter revenue, the XXXX million, or fiscal million. compared

$X.X as Derek as revenue successfully hire average prior The for XXXX As alluded to, during discrete direct December are generated for million clients projects and serving in XXXX, above nature. and of January professional the XXXX the in well non-recurring first revenue included COVID-XX-related our fiscal from as revenue concluded projects quarter contract responders. performance COVID-XX

quarter-over-quarter, them and staffing of approximately revenues first million is increased fiscal contract or $X.X X% alone, XXXX's were quarter remaining $XXX,XXX for our quarter-over-quarter. industrial effects as the or total Excluding Professional compared million, to X% revenue X% revenue. $XX.X contract XX% services or all fiscal again lower which quarter the which revenue revenue. revenue non-recurring XXXX's and services of of revenue, contract COVID-XX-related XX% represents effects the total $X.X excluding increased Professional staffing contract projects of first services staffing services million

or and services quarter was represent hire professional XX% for revenue services $XXX,XXX $X.X highest the quarter-over-quarter. growth all contract of contract fiscal with Direct Professional IT is of revenue total compared revenue first million. grew X% XXXX hire contract million, revenue fiscal XX% $X.X of XXXX quarter down IT and direct priority revenue XX% specialty. our first

revenue revenue XXXX XXXX fiscal XXXX. are results. macroeconomic exceeds about pleased to for conditions, XXXX XXXX, Direct potential fiscal overall annualized level direct QX production we sensitivity its with hire hire this of the optimistic and hire and remain Considering inherent cautiously direct for still

XXXX's fiscal staffing and our contract professional revenues demand the initiatives workforce. the contract absent U.S. and in increasing economy COVID-XX demand staffing of non-recurring services new meet in strategic The increases quarter-over-quarter tactical are in professional our and result sector, in post COVID-XX revenue particular, projects and services IT our total to and this

indicators revenue recent downsizing while professionals our significant Staffing $X.X services, contrast, increasing Two for revenues December IT XXXX. the indicators of employers trends report corporate jobs X% unemployment and were are the Services larger outstanding fill of remainder candidates XXXX's available and more by quarter XXXX. for demand. recent lower first ended in IT Recent recent December IT total actions, of Industrial represented for meaning fiscal million also fiscal XX, positive demand to layoffs suggest

in We our experience conditions. in industrial in Recent led the relief in at with post-COVID-XX to time, also while has inflation remained markets active our economic and increases COVID-XX associated industrial wages business, hourly challenges same Ohio. growth continue state local certain unemployment programs and to and lingering significant

staffing to and combination preserve higher income streams the many labors turn competition that and to other balance of has seek welfare finding among benefits to and wages Ohio in and temporary of increasing This to moderate fill of order in subsidies. their reduce are or temporary firms We the hours effect to governmental the benefits the company's orders. tends in their labor cause

restore growth actively We profitability our enhanced and industrial sales are increases and new and recruiting introducing business. price programs in to

$XX.X fiscal down XXXX's for quarter X% compared with $X.X XXXX's first was fiscal first of profit gross million, profit million million. $XX.X quarter Gross or

associated overall decrease fiscal in direct professional resulting the contractor hire some our is to Our margin the XX% in and compression in margins gross margin spread services attributable which recent first profit XXXX and business, inflation gross and increases in quarters, gross has gross lower in mainly The were pay respectively. rise businesses. with for XXX% XXXX's and XX.X%

recently and of it lower as counter inflationary spreads compared increases bill with remains in gross to trend, margin. high has competitors. rates up those order increase stepped relatively quarter-over-quarter company in The margin our slightly gross Despite

with revenues fiscal X% XXXX's first quarter. administrative for XXXX's the quarter were of XXXX. XX% or quarter and first quarter first with SG&A general for first increased compared compared Selling, fiscal SG&A XXXX, XXXX XX, of fiscal for expenses December $XXX,XXX expenses, fiscal ended XX%

growth resources take to advantage recruiting increases investments quarter-over-quarter of strategic for Inflationary sales management including significant in future opportunities costs, the the in some of portion increase. accounted and and

these contributing this expect topline We year. investments to fiscal growth strategic to begin

we I and and other margin. expect spoke of of the addition, to increases In operating ratio rate cost spread improve and bill expense implementation reductions targeted the help our

XX% net income income $X.X per share first million per $X.X was XXXX achieved income, fiscal quarter We quarter. $XXX,XXX quarter. is XX% $X.XX for diluted first a of net fiscal for compared for or with net diluted or compared quarter first $X.X XXXX's diluted million XXXX share $XX.X $X.XX or as share diluted non-GAAP with XXXX's for $X.XX fiscal as million or fiscal financial Adjusted fiscal per per the of which million share, measure, first down or

$X.XX XXXX goodwill net and quarter of impairment was million December fiscal $X.X XXXX charge which first XXXX's $XX.X non-GAAP a quarter gains down $X Adjusted The for quarter. million compared fiscal is included fiscal $X.X on income million, XX% first million the first of for XXXX, a financial XX, non-cash loans EBITDA, of forgiveness PPP million. ended with forward measure or

since XXXX's increases in EBITDA quarter-over-quarter in adjusted our The adjusted expenses fiscal quarter. net mainly the and first other non-GAAP operating overall to are compensation due non-GAAP net and certain income income, declines

begin ago, targeted to effects in topline margins fiscal cost combination increases As the a contributing positive investments growth during to and I on have with in XXXX. moment expect personnel reductions begin strategic profitability remainder indicated we and to of our and price

fiscal negative a at Our current small quarter payments. to XX, first at X.X:X capital X.X:X, We $XXX,XXX was reported XX, XXXX basis extraordinary ratio working XXXX. XXXX, December XX operating up of from XXXX, December cash September XX, activities from the ended points for due flow

XXXX the taxes and we quarter. were installment of first aggregate was cash deferred $X.X million deferred the Act in FICA the quarter of Operating by $X.X cash flow payment for commented annual last on the of bonuses under CARES final fiscal million and second reduced that

of deferred Excluding non-GAAP FICA payments $X.X the non-recurring million. and bonus aggregate adjusted flow have cash payments, these cash the been would free effects

position Our strong. is liquidity

debt. have outstanding We no

XX, value share. at tangible $X.XX net share was book per was per $X.XX and our Our book value net December XXXX,

optimistic our as are. remain outlook the appropriate we fiscal macroeconomic positive and they XXXX of conclude, To uncertainties for with in considerations lingering regarding remainder

Group's that be GEE in discussed in Derek, GAAP can found our Before note their over measures counterparts I today earnings of please included with schedules to turn it supplemental back financial non-GAAP press reconciliations release.

I'll now turn to it Derek. back over

quarter free XXXX Thank our consecutive of operating first strong The performance, flow. cash having marked and fiscal Kim. sixth margins you, quarter achieved solid consistently

for a as the future. For track the we last momentum strong continue to six as quarters, record build positive well

we future had expand under and results despite year bank its At credit we can over today million and in beyond. $XX or XXXX, facility. prospects continue macroeconomic Group's cash this and company profitable available challenges GEE the December produce unforeseen events, another believe continue growth $XX.X and to in XX, ABL to solid improve for million fiscal

special you to shared I today. our Before with dedication. hard we your take all thank we have could to and professionalism, the things a we not want for Without of you wonderful have work their pause again people all accomplished them, good questions, to say

come answer questions. is Please we ask Now Kim If a back and your rejoin one additional and question there be needed. will would questions. with you the I happy time, as to follow-up just to for queue

now session. enter question-and-answer the will We

a One a have, potential it's stock the of regarding initiate for the repeated the to that is we times few first questions and company buyback.

Board buyback. the revenue targeted Directors. management to market on time brought We the acquisitions. to in of our price had our strategic of performance and have attention additional actually tuck-in at stock would lengthy this going in-depth various the And growth is forward. We've our capitalization We've consensus better by better a very help a and had a discussions EBITDA acquisition and discussions it past company and Board analysis of the tuck-in our we regarding buyback, prospects that stock regarding senior adding and much impact have the

this to and the regard macroeconomic to very to more manage note successful forward a little more doing in smaller easier the acquisitions, acquisition point as not be a less with well. would going likely should trends fairly I'll have tuck-in potential integrate at about I in with uncertain been talk we've also would with cards risk and that because a risk acquisitions, easier bit also economy, large

few we're going forward. and what face we're going think a we regarding to have We questions what seeing

consolidating up costs? came reducing many is offices you at question Another Do have? how and you look offices do

bricks-and-mortar We costs. have reduced

virtual some with And gone we've cases, many and for need in In somewhat leases. reduced. of renegotiated the space remote is markets. our hybrid office have working, We

reduce and a will So rent as leases the expire, and lower cost space was amount absolutely for so It question. forth. of we good

management about last you a year little with had talk the projects COVID? discrete bit Can more

in expired very very very, those strong, projects was first Those of and of we're created and were Those little for very, had contracts in pretty contract contracts. good The much power a the and on that bit us, demand we too. second the on volumes huge workers special pricing quarter year last pricing, quarter.

an which on So times, expected, though, tires. should economy we've they're that of to for past. Noteworthy I've and contract that economy IT kind what business, now the to good very uncertainty contract more particularly rates hires in on similarly make is on margin, spreads in and seen our more before higher that volume several be happening was and forth towards are so been contract an the going permanent up from and has bill focused hard the rise, side it's business. moving to that with this through

payments, bonus payments? bonus questions, you are Kim? accruing Other

Yes.

last the consternation I for quarter, some was think there call that. about on

of the and program an I. So including performance-based let company senior me the The Board independent managers company, assistance of compensation the a with incentive consultant and Derek be for the created clear.

both on This and which and the Board based strictly compensation program revenue both and financial is equity negotiates sets profit, cash and for annually. based performance targets hitting the the is –

with strict accrue did are in we yes, that quarter, performance commensurate the So plan. the measures first formulas and some during that very

executives to bonuses the paid this in for level will targets not where they be year, And let if been they're performance be for fairly and add that set, high we've aren't me C-suite met, tend relative example, past. to set the

other and be possible that if there hit. aren't metrics targets for the it's performance won't bonuses So EBITDA any

what in accrued quarter, was that we happened So all catch-up. implemented and because them XX was a plan I newly it the think September quarter the

as yes that. quarterly a So think, bunching bonuses them up is And earn in Kim, is, accruing answer versus I another question you to are quarter? the you

the and questions, So that's good answers are that. to those

SG&A, general Another about can that costs? question, doing selling, Kim, well? are what address and we you as administrative

Yes. Yes.

actively manage routine do First of all, one, number we on basis. a expenses

we're call average. we cases, However, call we've per down including last with on desk we we of the given hard and And LinkedIn we leases the them renegotiating that our contracts, them. they're job of producing what all on then divas, world, we'll if the negotiated counsel and hand, job behind, And be productivity be. try to we’ve workforce reviewing system primarily that won't we but reasonable what it's our with And in where and when not the Bullhorn, recent we like, manage some forward. our going The people are use, doubled tracking folks need get making not to in our a principally where help them inflation But providers. fall least, up we've and PDA operating board, back with or the cards, tools our lessors pick we had, a certain renew one the candidate to locations accordingly. they of

our second There mind, need, keep and One them then and productivity you and is recruiters two incentive them by make they – that managing need. people the compensation tools hire also are you the sure with So then the that. drive growth. motivating that And can. is achieving do thing they're that the our by appropriately giving both business and best and always they you sales goal things fundamental in

managing we those are very all things. actively So

we they for if that make targets cost more year. we business. produce prior to plans then graduating to payout people don't look did own by incentivize if in bonus upward a producing if produce, set, they example, milestones, we only those get their commission to the And we're and what when saving plans achieve they I Now want granular, more again, to, and at

continue And we then back trim the away, to in lean in corporate support we're staff, our very office.

As can. promised lean that we I’ve we're staff, word. it. in corporate very staff, we my and wherever I used never I’ve and done use our integrate But technology

but our from XX% goal ticked be – down is up the our actually came Our I to quarter, realize SG&A goal that below percent XX%. to and fourth

below cost to XX%. our get so reductions down SG&A And that's where targeting we're our

Thank you, Kim.

of I'm Here's is the an a happening results this? are Why that pool hiring question low, is of not This Unemployment growing. very applicants for really Group. is at to address. happy great we be favorable the all-time should GEE seeing and

workers. and you have a of stratify environment, So it's employment complex to the population

You also workforce participation and the have something rate hiring. that influence things other called

vertical. each So as standalone the rate employment of itself always of unemployment segment a metric not is or indicative

at technology. example, For let's information look

Facebook, low a coming. an unemployment of So had layoffs information more Dell you and light had technology Amazon, in Salesforce rate, you've tight more or – Google, at very and are

Now we have an IT vertical.

to to that's in us. candidates So able in for of the us or how better shift has labor? that to done because get an two our for orders. in it's issue IT of terms always pool candidates have vertical that recruiting The and job past reacted increased made being year fill What has been

this manager contract How IT takes momentum staffing are at open companies job the segment. good but rate in point for orders we at job are longer orders? make steady. hiring The Open are to the decision, fill bit seeing a our

that Amazons permanent recruiting what there's labor very we in or off, laid and pool hard the get These are were have would think not us be particularly jobs of salaries, the Googles first hire hiring taking have a been permanent presented contract and to call I was people and because laid now And and they talent the to group with placements. distinction to past at full-time. between since Facebooks huge the entities going those and a direct high be off recruiters, layoffs

even so hybrid call use shots office hires. talent somewhat the And laid and today macroeconomic wages the year in and people of the and and a Last employer the remote toward uncertainty work. What schedules shift a or it of workers terms a fiscal could we're versus seeing calendar talent to permanent banner was bounce I lot in assemble versus off forth, post-COVID for workers of scrambled is year of environment. year potential because call of flexible the also permanent and because

see somewhat of and hospitality, it the segment recession. a even singularly, that bit type not, some than of GDP, noise segmented, of economy was or you tends haven't successive pockets two take take if the not been or comp that you'll that by of downturn and like hard out low-spread possibly for in we've in seeing with labor quarters big you risks. little workman's example, statistics then get pockets published, if of high The definition, a it borne indicative to average to them We're negative that's had unemployment lower higher be rate It it's We're workers. hospitality segment. but

that hiring see but is keeps by their a in stats and said, unemployment and XX segment, government XX That government we're Ohio And and higher to stats, don't influencing a of from working themselves welfare these subsidies/benefits. of the a limiting hiring force out is instead industrial. may you to taken hours they're again, Kim possibly some had our as they at the focused because because of certain to in some the end. meaning the the from hours week, area probably continue, point. on at beating other disqualify labor will that or that bit people So it itself run XX-plus on somewhat want which We've that's subsidies,

appropriately in are We cutting that get division respond to order profitability to costs in that want. level the to we

economic expected are decrease respond and year cutting of is challenges bounce. the business, versus across last of hire costs the in also because to the direct board to We because which COVID

last $XX to million year, were the year they're placements fiscal found $XX aberration. last that's in somewhat in to approximately and range, years, similar to aggregate permanent our range of $XX.X a that year, fiscal competition, historically of in anticipated high almost million comparison And which million in except in which been all year example, all was For the the number for last be is results. an this

is indicative companies happening So to in different not again, while what's our of itself labor statistics by always sector.

For example, us it entirely labor, an lot some end-driven performance. staffing if TrueBlue, took professional of firms, of including harder than they've business, in taken a you that's low and terms the

that, buybacks Now XX.X% XX%. very, percent it there low another increases action as revenue that's A to And acquisitions? SG&A question. possible can historically The you we've is, reduce SG&A, do below taking we're as very as and and had question and we addressed our well. as aggressive

that to The answer is yes.

We have of are improve the and size, example, a cash that not good generating profitability, in we revenue that very the profitability, and that's for are can enough to tuck-in large add do but flow. We're resources under that acquisitions assumption both, are our level IT. and IT-focused. add And to verticals,

So at the the we're both. a to likely management. And our an able to we possibility And back at that's senior most point. also and come that would consensus acquisition this do But time, believe table. been Board will be scenario of initially, some buyback the before

because companies? yes. We see. questions of answer recent more talked was, is able let's The get you layoffs the you're to of One bonuses, about the IT IT to of workers

interest the we'll the are we acquisitions that similar. question and very And action just Many questions and in take of that a repeats seriously, Obviously, rest very I buybacks as assured, is take discussed. very, key itself.

acquisition current you the Can discuss pipeline?

some environment. It's in will good, and prices this moderate

back off the year not will number. way, In is what price placement sell historically look company, to accordingly. the at and excessive trend trying hire situation, go buy by or we business of that adjust will that last and direct We that had purchase a and line the is permanent

bonuses. catch-up had the that quarter ratio – questions seeing the number – prior an fourth year implemented XX a SG&A, to everybody program. just last the on because year I'm quarter, the a September reassure some of SG&A of newly Derek, for last of outsized I our fiscal about want a or

are So now across we I that want a to place just year. monitor assure – the to process have everybody that we in quarterly

or see now that operating of end intended. another at expect year, is outsized in like accrual shouldn't any that another future as the place like the bump you that this So or year program to and

that. you, Kim, for Thank

care you long-term do the about stock price? said, Somebody

about answer up when to the morning I'm price at the stock And dreaming so forth. in in morning, afternoon, and the care in the is that I wake the when I night, next

focused I future. generate return when profitability long-term in shareholders deserve, about? is value about care and in that I me build do the our that to including on and getting care talent invested the company what others we the What revenue have and they we're

have I a shareholder, Fortunately, do area. And focus. I think that they you long-term rewards. I'm And a little a say short-term your get will if shareholder whether that a this say, in shareholders are most just with experience you

the sincerity. I very understand at and short-term, frustration that So long-term delivering on confident And times, I the the we say we're share same of performance the in with but that in value. frustration all equity

operating this Kim doing I tackling then as I that take and company football the the bomb, itself. not my the of streamline say, spreads there. and cost margin lasts I'm of But leaders. operating can't that is it long-term you We're key focus And any other rest building on we the to for way salary our should of get value execute every as on and the looking and aspects what appropriately, We to when company and call of or continues do and for our blocking And is up shareholder us it's now, our neither you right care succeed. advantage a is to day. take structure, throw analogy. a the

if you acquisition? drops, okay, buyback price your with stock an Another question saying, back in a came reconsider conjunction will

answer to the And yes. that is

very keen bring of nature, it that plan. our then accordingly at to very back the table the flow continues time. be on cash it if is, we'll that way it something good, the which We will appropriate is will And

company? of questions far. you were buy most had your answered to offer see, Have so the Let's somebody

delivering to stock at that becomes consider not that bring further. if the an if made point, phenomenal, that and a [indiscernible] value point, this to you appropriate just building to on of make that that's some will our offer with execution to from refuse. depressed unless there's fiduciary we're and But to value obligations time. that get someone shareholders we top focused one this time the that And price, say decision it Let's those Board of But that on at shareholders. course, recommendation couldn't it's And extent have it. we consider,

company and a then XX ran sold for good years, at I we it the time. level really And at a appropriate

always I You let not strength, of best weakness, personally best exit. for decide out want that's an want sell quite will point. I them, shareholders be deliver the at to want on to all what's this on if the exit your don't value for frankly. time and appropriate the to the which us, shareholders

So see at have… if this point, we let's

thing. a questions the one And couple of why item new other on is in so… there interest There's income? here this small for is in There

to we that. get. of Yes. But I wanted Oh, one consistent questions answer go That's yes. ahead. the

Yes.

not So in with rates locked optimized decent cash low risk, that and in investments for meaning all just suitable and the has can for we're earn quarter. rate, the penalties a something but us, last really that's relatively

we cash So do large of have most – sorry, in million of sizable amount, million chunk the or $XX.X a it $XX.X invested. I'm a

can $XX,XXX today. that's to you in income investment and the than So more the sizable P&L grow be expect

latter spread and asked One your hour? other I question Kim. will your address prices gross per when and question. doing or after the profit someone want dollar see speak. the of next that. as next quarter in quarters, results? that part in are effect We and the then the the you, will the increase say quarter Thank take influence your we When is would that two to it And you that we're I we in when will financial

else. the or conscientiously it's are we on statistics not CPI or inflation anything contingent increasing and So spread,

in and you even segments Again, an skills labor for IT within the gives supply specific vertical and demand power. particular for pricing

exceed level and So take that, as same advantage going are which and gross ultimately, years. to prior before be Permanent placements are we our percent. not will years more we've on track as the to But the before, influence at year. we're margin of fiscal said spreads normalized the that the

The economically, have a unemployment we So good don't influence an again, high pretty where so transition everyone from space. virtually X% we is we're it going. recovering forth. feel which about year our would And and from on COVID, in is, aggregate, thing appears, have inflation the in this good

So can the continue be with to appropriately, dealt we or think macroeconomic execute. and challenges changes to going we're

haven't that Kim, addressed? any do you see other we questions

No, I – addressed think mean, don't to not think – I point. mean almost I we've at be addressed we've really. everything this I

Here's multiples one, acquisitions? can bit But one is things like you structured somebody Each a between when are probably do said, EBITDA. somewhere what Xx your that, the bring but and earnouts on you and Xx differently, down multiple.

line to will And add and of market in to acquisitions the the That's can then how away going we're it you next trading some stock topline, that Well, EBITDA, give And will the at acquisition be, Xx? the bottom value point. and Xx equity the question not you're if be an would do sure. at reflected cheap. believe for we at

that giving So answer short question. our cheaply we're not the to away is stock

a the accretive cash mean picking these the company. I in us scale I add which the company, that adds buy the me importantly, through of value away that powder But right free targets, dry stock people is pull terms of using growing generate of reliably in to it cheap choosing therefore, let can Derek, which our and gives patience accretive understand which stock gives and only to now. of us the on go our see where back and acquisitions because good growing in And position grows the right the is the growing acquisitions we in and the intangible the without and of the stock value aggressively enterprise cash flow, company. other more capital means value run, company luxury keeping now us hand, wanting long to put to and our work it

Great.

I – other if based let's payments overall see think one that bonus EBITDA? the on there's company's are – question was

bonus is part plays huge a absolutely that answer payments The in and... metric

growth. topline as well As

combination, And yes. topline growth, the

That's revenue? question. When can a you $X in get billion to

the So as revenue becomes the to strategic start go that very and growth. we large And not for of acquisitions that grow target going sake internally, answer real. to acquisition for to just is, we're make a

more So that have our take easily contribute and and articulated to appropriately quickly for very It's appropriate that the to more allocation tuck-in the integrate And the is off and risk time. buybacks potential then time. what less capital table. acquisitions profitability. what's when, not needs with the internal aggregate we will in acquisitions growth sure also capital it of make was That's at I can we consensus to this appropriate augment and already reconsider the where and be at deploy and it and

So concludes very today as and our that say a company. can optimistic about our that future call we pretty much we so are for much

We delivering concludes company. thank for performance and very also want work. price that stock and you value. we their are work considering to hard much shareholder dedication in care day, about say are shareholders We Thank are and you our call. our or also those you you. And employees very for we and That thankful our an investment to of every hard