World Kinect (WKC) 27 Jul 232023 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the World Kinect Corporation Second Quarter Earnings Conference Call. At this time, all participants are in listen-only mode. After the presentation, there will be a question-and-answer session. [Operator Instructions] Please be advice that today's conference is being recorded.

to Ballard, conference Relations. Vice like host to now Elsa toady, President would hand over the your I or Investor go ahead. Please

quarter live slide Good World which welcome and presentation. be XXXX second will our evening, call, earnings alongside to presented conference everyone, Kinect's the

Elsa me here time. is I'm With on Vice be the for the available Officer. first the Financial am is Chairman relations also VP thrilled Michael here. new presentation and President Officer; and webcast on call the Today's investor call today Chief of I Chief to Executive our and on via website. Ballard, Investor Relations Kasbar, Birns, Ira today Executive

found about are range of cause to are we form our with that uncertainties materially made differ could statement. differ. a and risk safe our the that be started, Factors forward-looking our subject future a actual materially reports to results filed harbor to and to comments statements expectations and other plans statements would in Before results regarding get most could that performance SEC. like cause review could Certain XX-K including I recent today

our press Q&A of then with can will to directly begin prepared no by measure and or measure the of statements certain included financial comparable non-gap publicly revisions reconciliation release these most followed to Kinect a results of future a which their forward-looking in found obligation financial be new non-GAAP in to presentation release remarks, these measures minutes website. information on GAAP be of few a also We'll includes World any light or assumes This period. our revise events. financial measures, is

to and I'd Officer, time, this Chief Executive introduce Michael Chairman Kasbar. like At our

work a Elsa, you requirements. notice global for in you, to Elsa's his and of of call, and the commitment you, of I all. new Investor first Klevitz welcome would over mediums important and Relations, the Kinect. has years is World Glenn more to a now your the thank some treasury for elements may Glenn, communications forward he variety as Thank years. our and Welcome to like opportunity to on going This over Elsa. Thanks, on work all focus

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their to face reliable, customers achieve that satisfy sustainability a and increasingly carbon the is is our source regulatory today consume need lower challenges affordable, diet to ongoing and diverse targets the of or One energy not aviation, are customers' customers and sustainably today, we conventional energy with Kinect, access also marine. energy across provide our only to World but sourced portfolio land greater At needs serving to expanding our requirements.

an providers, in quarter, aviation an our announced energy XX with update to the of fuel Europe. our of largest America partnerships on sustainable during front, we or two SAF over expanding expansion As the the second supply to and renewable SAF ability North airports

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growth We are data and enabled relatively drive technology what and management a also including working digital related space. complex, specialized to organic in areas, is evolving for

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the incremental tomorrow, investing shareholder also continues value. looking long-term making investments aren't we the Furthermore, in sake investments, are certain promise to to that we requirements delivering customer early and strategically that but make offerings evolve. future their solutions ventures selectively future innovative satisfy and today enhance while of for of innovative identifying carefully market our Importantly, rather will show as stage for driving solutions and

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are on We of within efficiency our returns improving profit these from platform contribution activities. and and all focused global of the consistency driving laser

to summary, meaningful. very believe in so World name is we And our Kinect change recent

business critical further will the future. our clearly serve customers anticipating we future evolving reflects our relationships While day-in, trust our our the exciting to our markets relationships partners It's fueling and intended requirements in we capabilities alongside enhanced facing Therefore, as past and meet suppliers, emphasize the is adapting transformation of this World have and day-out, built customers existing expanded and us. solidifying throughout times of the the continue in world. ongoing we with that change we to our to certainly Kinect the more in continue needs and of for

with results of work every our dedicated, every because financial to your with team mission. the only passionate call the the X,XXX to work, and our of of day coming to work office It group continue Ira success a conclude and members over of such and As for business to hard our pleasure experience. day ensure thank our will talented, the hard over who I that strategy drive and company. long-term is and truly I a results, deliver to work a you we growth to engaging people on our make meaningful is review privilege a of who their It turn and want global to

Thanks the good very all much. Ira, let's stuff. hear

you, Mike. Good Thank everyone. evening

Kinect share change noted, for get Mike good the an I'm us, the been etc. exciting details the weeks As and recent clearly the But about specific of some to considering second now, World offering, to stuff. It's quarter. the we'll all name into convertible several

limited I'd with to second starters, like which For no is adjustments note results quarter. consistent quarter, impact results the GAAP EPS for last as non-GAAP always, quarter this our that with reflect to

numbers our website our and published are our you year presentation. of which results prior in last do the today's on exclude items, of in the non-operational comparative year's release. also reconciling breakdown in the assist certain webcast found the release, To highlighted earnings be However, non-operational in impact could items

So from quarter last getting in to of into of increased the volume backwardation while billion experienced real the when year-over-year, numbers XX% million profit consolidated impact on a second slightly aviation total consolidated basis, our segment. $XXX year's down extreme was we gross X.XX

the current of and quarter, laser face been solid elevated the rate as environment. interest focused in of last I have Speaking mentioned we on efficiencies driving aviation, returns

cargo aviation, in in reduction passenger intensive overall of growth contributed and including and certain improvement activity were volume these organic conscious offset made capital activities, to reduce gains many in as business experienced While in some we also by our to while volume to business, we which demand well. aviation working general margin exposure the resulting weakening decision international parts a part

returns our and of margins benefited significant 'XX, billion heightened the during driven was we second inventory from gross And second volatility $XXX backwardation. up aviation quarter however, slightly which profit by this all was by Considering year's aviation on again, extreme year-over-year, of second the quarter again gallons volume quarter up of this to when price million materially and compared in significantly quarter. impacted X.XX second only losses also focus was

traditional the to contract in profit we renewals. with in for aviation further our in third an a look from summer recent aviation, anticipated part quarter expect improvement gross increase margins benefiting we As seasonal

offset and Now, some American in down increase volumes was turning volume in part driven slightly by lingering with to natural activity in commercial our gas over by in our billion associated North year-over-year, industrial our land and trading weakness activities. further X.X segment power gallons a just part

$XXX.X $XX down year-over-year. approximately reported one in of natural total Consistent volume activities. a million third quarter, million power X% From with standpoint, or profitability gas generated quarter these gross profit last to the and relates approximately land second of land

the portion UK operations significant year-over-year benefited where to last results from As prior call, forecast on relates quarter's volatility. this year's principle market of our year decline

We our related gross the American increase service also commercial offerings. sustainability profit North our experienced offset by in an in from in profitability decline year-over-year business, in part industrial

gross as stronger profit in in a a a sustainability prices growth and principally as the we well As we significant driving the driven by service by year-over-year look America, fuel in North somewhat pump aided third quarter related improvement season year-over-year year-over-year summer offerings. for to at continued in expect volume land, decline modest our

segment in primarily marine market. container by X.X million declines quarter second the approximately of was year, activity the lastly, last And of metric from volume down our XX% driven tons in

prior the year, profitability, down $XX bunker market approaching from profit of and marine record terms quite prices million gross were was when quarter highs was In second volatility the significant. a in record in XX million

While ahead down year-over-year results were well as of historical marine remain margins expected, averages.

on we As I commentary, interest margins focused enable my which during acceptable maintain marine, also mentioned current returns ensuring in generate the we us in aviation environment. to rate remain

profit quarter, gross For similar down should experienced be while the decline will profits the marine the sequentially, again generally year-over-year we be third in second flat gross to quarter. year-over-year,

which Moving were operating lower expenses in expenses, $XXX last the is at of to end consolidated on quarter, guidance. million the quarter's second

As primary inflationary with persistent our all of on quarter, ahead year-over-year. as driven which expense environment as operating the million remains the and seasonality, sequentially, In million, be will areas the up categories. well uncertain to what as travel, conditions, to hiring one we scrutiny is face in look such management be other $XXX expenses principally expect of will down to an range be but as we well macroeconomic expense by $XXX of heightened priorities third as vigilant

objective is deliver outcome both Our shareholders this our employees valued best to primary the year. for and possible

of the by efficiencies, higher third enhancing reaffirming to XXXX. beyond target operating XX% margin reiterate our we Looking further commitment our quarter, or operating

share and a reminder, as adjusted incremental strategic to is to per income time. expected relates target overall This from gross our a over progressively earnings this drive to operations returns focus of profit. positively percentage As contribute

fourth focus to We've about $X million and efforts past These down have down expense talked continue optimizing in cash million, and the and flows been and with quarter the last facilities. and second million lot capital of expense more over terms than managing positive quarterly liquidity interest interest year. year, $X paying-off quarter capital working of on our our generating expenditures, conditions sequentially a interest peak we from of the $XX

expense principally interest million to expect moments we will I been our quarter, third offering, a which to the also $XX lower the and to about recent few ahead million, interest in lower. have rate convertible again Looking associated the of liquidity benefit facilities decline related talk a the of outstandings note more our $XX with with trending under further to to range reduction

the second tax adjusted than effective was higher expected. bit rate XX%, that's Our for quarter a

'XX will we rate continue year with our XX%. tax approximately consistent full However, believe at to that remain XXXX, generally

after million quarter, million, strong of to on in driven date flow strong the balance brings operating positioning operating all liquidity enabling $XXX quarter, operating growth opportunities carefully incremental profile profitability. well $XX opportunities focusing an cash to cash financial to continue to our first That additional very year drive keeping while flow we Onto delivering again, to this by, and flow generated solid maintaining levers. managing sheet flow cash us flexibility continue and us to pursuing cash related

our how capital uses on as receive wanted you of capital. More capital we we our about and touch quickly make I often about questions framework allocation remind specifically, decisions allocation, flexible to

the managing delivering balance while leverage, with our Our on principle incremental remains guiding all carefully supporting eye shareholder business, value. growth sheet an of

platform, sustainability the as team, our year M&A, In well as North business to the and and and on American continue our building which on which good make expanded is bucket, breadth business. progress organic focus where growth growth include part thanks to this primary we continue land of acquisition Flyers talented related to of our last like accretive services and organically, the focused depth opportunities opportunities product growing our our could

on which returned sheet shareholder and maintain low our want consistently business prioritize we the to holding investors, our through balance our and attractive liquidity why for dividends. prudent have capital side, to we to cycles, is On throughout buybacks an we returns, leverage management and through work remain ample shareholders, again, capital both

with returned and shareholders dividends, and have million year-to-date conjunction of $XX offering. convertible repurchasing our stock $XX to in of dividends recent Speaking million buybacks $XX million paying we in

with million reduces have note going years. X we more by effectively share than for now repurchased shares forward, your X.X our QX. to recent $XX Just over models, count past approximately starting million X.X% buyback or our shares million XX And the

annual rate expense environment. As in quarter, on expense reduces being the to $XXX end million. of mentioned XXXX structure this approximately this which reduce million immediately diversifies one is our many elevated $XX our earlier, run issued and of convertible we maturing Again, second at interest in focused rate capital interest notes by the July the of opportunities of interest

bond transactions, stock does option. offering, the equity are it As we or created of entered Kinect conversion convertible our value simultaneous This two convert us, or many World upon to note combination be the hedge a we settled this in and important transaction successful new exceeds so for was cash price story. to Company's stock to the the can a warrant exceed into that, a our unless the series price very very welcome is to shares, happy of is investors at and the $XX.XX. And related there when no whatever price to dilution conversion, may related be

new and with our period the bank secured notes well an have of our strengthened extended facility our XXXX financial to XXXX, maturing maturity convertible significantly time. position of we liquidity the in extended recently With for

operating So a free cash the in year-to-date We solid summary, to a higher going despite flow flow bit anticipated quarter, we and second flow. overall tax additional strong than into cash results. cash delivered rate contributing delivered

first our with capital diversified ever We structure our bond offering.

to year interest to X.X%, to 'XX profitable seasonally We our for driving we into the in quarter. with and and ensure interest focused the share by third intently results million find worth remain of lower managing deliver for results and repurchased our we and continue count quarter strong reducing expense full ways consecutive reduce $XX strong 'XX. expenses strong second stock should We sequentially growth deliver carefully on approximately

about And we as Thank proud World team opportunities excited lie finally, the remain Kinect Mike and our of the and continued mentioned you. of earlier, growing we evolution are that ahead.

to to our begin I'd Liz, back like over call the now operator Q&A session. the to turn

Our with Ben first of Nolan Instructions] line Stifel. from comes the [Operator question

Nolan have just Hi a of I questions. from guys, Ben couple Stifel.

to contracts first, think that talk usually you happens mentioned already I time the around Can of I or this the are of the are or is to what repriced being trajectory on maybe business something going, how respect reprice incremental those price the The not? those pricing how conversations portion that's think both the you year. and and with side aviation I that sensitive

hey, Well, Ben, joining Sure. thanks today. us for

to no So, simple straight answer question. line that

current considering that possible. one on meeting as interest help the we're environment, that So, to increased I'll give our have broad we're you probably that rate that Considering I the to the in. myself much keep hurdle try focused rates a about repeating fact environment as

So in quarter. on of them gone through some the we've as the of third Xst renewed spring, July at renewed with mind, contracts beginning in of that our the many

that easiest serious market, that's their I factor in a we've account have question account being a the organic every strategic others, this as each say in which growth been prepared remarks, to certain I to will forever rate little markets account you answer experienced business mentioned. that hurdle the very interest That's which my the environment, rates, some a deciding, the your versus bit take seen team into meet doing that And is that into than stronger well in result didn't alluded takes position decline in the way volume of competition those of and result when etc. necessarily that areas to with

of increase in the that compared at many or a June. end in of our cases expiring in margin also the spring bit But contracts an were seen we've the to

did in some the uplift margin not we teams So, see margins in reasons, the a third even great job It's that quarter I the finding the possible of but there. mentioned whatever those did that's should have opportunities because massive, to bring we than second up. stronger in an one should we

from given have we we'll have annual dollar incremental anything net So, several up. margins, million that those benefit may of

to as sort of the your gears, relates buyback, curious, thinking a activity? characterize episodic. one-off buyback. it it a the buyback just for with that Would you little something more I'm have respect changing are sort continual And of been $XX to bit you guys million buybacks you about as or

similar call, over So, million I actually a on XX word. wound a back that ensures over rateably as targeted conjunction in that average, that convert, the very we the a up million at We've years with of remember on to we're number shares couple minimum number at episodic, quite impact the several while bought last that We shares year buying the equity offsetting a dilutive the awards. employee back related I'll that's number five a years. least mentioned

before the probably and amount the because us the when some only convert actually value pretty a closing transactions. issuing market. it That's anyway. basis with stock that was doing in would So what conjunction purchased see helped There deal that's an reduce as type in we a worked to moved would've of well for other convert, the a volatility considered often companies day about we to our the immaterial that were very comparative on on X% strategic

about done price. $XX with always way. combine our same had that for between a going our done the beaten in would disappointed all us. it to trying the two to million generally, same future to XX items. it's efficient we dividend we'll But it metric times that are those I got to forward do or got up But really, to defending year the at that is return to rationale. really bit good of plus minus a all say It more of day. was levels going number back million, So, It kind when a We've to years. we it $XX going bought shareholders forward, get be that back stock There all unusual one think million

million So annual good number in other number? XX words, an annual is a

That's right.

comes Raymond line Pavel James. Our next the with question of Molchanov from

lines? expanding mix. of historical revenue along kind specific talk previous or those the put sustainability contribution maybe numbers, kind comparisons year of within versus about Can You QX some you any

almost Kinect, few year points. which services sustainability power you It's increased related revenue. second is at grown that our if gross by a quarter XX% mean, to gas And year-over-year profit. year-to-date, defined look XX% percentage somewhere historically expectation But full everything of nat exactly we as around of I about that's World businesses. progressively

Yes.

XX% Just top-line of did clarify, or EBITDA? to what of XX% -- you mean

revenue. talking contribution that EBITDA to net And very is XX% about of the number. also similar I'm

So, it's pretty close to XX%.

Okay. kind aspect of And of zooming on in one maybe that.

aviation their said sustainable are and from base. I seeing XXXX fuel year you what and in You airlines about SAF? talk volumes obviously you But to pretty XXx Neste, guys in recently will versus announced a your last just with as be think about that a you talk up SAF small deal interest

airlines for have a of Yes, meet. pretty commitments a manufacturing supply. that, demand. to demand mean, the exceeds well inadequate folks Pavel, the and But, pitch far amount I the I think it's the lot all And they of it's truth It's of that, have feverish is willfully of known got build the production. of that the matter to looking

continue the will you help in this slow will being that the is terms certainly a the going see of and there cost burn. to of But distributed. will LCFF be cause, So, support

businesses we the any fully. participating of that the in are in are same businesses, And infrastructure, sustainability are the any particularly We to participate using it. of going

will in projects a and So we that sense. invest we fuels thing, drop in think make are beautiful

history that. We have Company, we to over the of that done and the do will continue

before So, this it, in really was which anybody lot have amount talking is our and whole to right journey it. certain started we requires to well we a logistics continued XXXX wheelhouse, It will a capability, just do that. about in of accelerate continue we and

So, that's our commitment.

looking customers for and our their to and goals. what achieve helping targets following them We their are are

invest and little to take bit happen, make going it help a to in time. of projects will it's We but

impact we prices, I year steepest than the perspective July? four question of in oil a year-to-date. resulting your there you ago. for demand increase have in seen escalation But I me. beginning pretty Is macro certainly Okay. get kind notable hope have still weeks, any since Last oil last on the of observed that this. lower you can the In

not price. I'm it's sure Well, directly related to

issues are that at think may sort trends of play and larger economic macro I more just be cycles. there fundamental probably

on fact, probably the feel and we relative price. the comparative benefit that gasoline side, In from retail will lower the

in of in But of long in and land-based, that the international despite some shipping off on air I haul think increase some disruptions some demand, you've demand of in fact the is got which that seeing within the you're beneficial. an certainly the drop travel,

a can move of swirling so finger So, think meaningful it's enough wouldn't not really lot trends, and one to put really But commercial It's consumer driving I I thing. have don't that any activity. impacted now. is much, you say your price I think a behavior or on right

Pavel to that, quarter. just add is it And seasonally our to strongest

areas maybe impact somewhere, by commercial will. are being and like more you're and consumer especially you seeing masked have the that growth but you got would that a crews oriented that in fact activity that you So it's negative you're, passenger the which it's if because summer,

we're seeing headwinds quarter. we're we're not seasonal that expected to really pattern the into and -- going So, any we significant that that not seeing

with comes question Hoexter next from Our of Ken Bank America.

about talk so sustainability obviously maybe bit. about gross little to here, could a talk key that margins you of want Just the pretty aviation

Ken, you. mean, better pretty wild this it's ride. nobody know, You been think, than I knows I

and recovery the market and of of some supplied disruption to quite XXXX been the in and for oil the from XXXX but following implosion Ukraine quite You've XXXX to back it's what the COVID, that from pricing been complex extraordinary. us then if to the profile, of the go terms meant in you energy time,

got what commercial practice to business in aviation. our business, I both The exemplary. of which now, material our able be been proud aviation business should mix think team of and they've aviation we've accomplish And sort of extraordinarily is a

combination on So, of and a team. mix it's tremendous the both I discipline business the think

difficult hurdle you've really are transit local long expensive, as some market pricing. up. All rather rate when earlier from discerning showing was local manage and is times, supply got commented more we whipsawing all terms of and sorts And Ira being in rates supply to interest of where

So a been combination it's of things.

our look obviously and obviously that services think it you prudent of we at I I'm sort of flex items, would healthy for And on. volume reasonably norms, think we us at to levels. if to sure not that want these something is can that of focus growth because to some that, be on continue some we're growth historic

is Ira's headcount organization But efficiency comments sort a look we on really on areas and bottom-line on spending and focused perspective. the those back just are closer we broader at of and I money, what and the of were to what at on looking think doing taking and going holistic and returns at, working sort a we're return cost looking of

So if you helps kind think of business. that I don't know the about

Yes.

to bit to Just that, add little a Ken.

this back phenomenal you is bit If kind thank pre-COVID, to go of of aviation business. you to our team the in

of It was business. lot obviously a had margin. government higher we where remember related You'll

of would margin back interruptions, considering it with those lot. last unit COVID to achieve changed that business related over we But be that, are now which all had a some dynamics, the think would the then really you hard mix has few years So gone. our

bought we where XX now UVair expected a couple returned to minutes But a that's business to be We and mentioned. later got beyond. years business started. COVID really before aviation Mike of We've it growing kind

the Our business of has started travels a become out that's in that seven bit that's margin business bigger come piece pie. old, Europe now five, business in Exxon the that's six, years from Europe, airport, physical, more the acquisition a on back from higher principally really

where zip again XX focus as better it's commercial on we're the we of the that remarkable then than for Mike now been core course, think dynamics have so I the And where couple just last at code what's with greater mentioned today And on the pretty years. gone to next is margins, business, answer general question? were sustainable. in your

seasonality, that's And right? So pretty some there's cool.

Mike peaks in grown the quarter, short-term The levels even mentioned the not fourth the lower of blip comparison. apples-to-apples that have It'll and than always but an overall quarter It's third margin have be the our third to to mix contributing in some that probably our So margin. non-fuel offerings contribute all we quarter. factors some these are sustainable.

we're great a should and we levels just it's now to to. hang at So, that on able job be

into So passenger don't a culling you versus terms or within is business versus I Ira, just that break buckets occurring different would in it mixed of of, that's other it shift you… that down know private and small jets

XX% Absolutely, would it is private few that jet call, in general, you a of or back XX%, would five years I you if market three, four, the you business years, the maybe as go the say would business.

And that's we six, XX%, the zero. at shift. at Now we zero, a of weren't five, ago, we XXX So, right? it's closer seven to had was airport any, today, locations were then have business We type that big over right? years

And a where the of well. and are of beast that's because on the and the just margin ground the the and as we fuel driver the much that's truck tanks, the business with nature higher

a mix now of bigger So, the a have right? shift. mix, piece you had So that's yes,

more lost two what pie pieces went relatively pieces arguably that much government have the offset the bigger You piece, have back but away. than become those that then small of were

part we is we is on land, gallon and a methodology? Maybe right, nat per that is it how faster. gas And about And know is that talked know, related. then you which I do that margins growing don't like there? about just versus priced, sounds what one diesel about talk think on How XX%

Great question.

It's volume and a pie. nat the XX%. power it's still more of different, both than gas is There power. bigger I So know as It's about piece grown they volume. nat are gas

it's a confusing. little you If --

But a kind small. to If gas gallon fantastic because much which average our small group, of lower you volume nat the makes very much serve try to do, than a volume. are in to ounces trying a to that's you sense lower not equivalent tight, cost as the is convert it margin, but

So, power we that to XX% gas land higher a if the split don't XX% profitability. than it of lot to and volumes, gas smaller would of you is number of it power. and But about related spend actually net only much money that is generate say, is our average The volume I net is power margin. XX%

line that outgrows our extremely exists that our a that all an on So fuel that of again, the negative has average that, dropping could if it's business to business. bottom arguably efficient structure have of a that cost impact. because impact the in But margin, bit

good it's a So, question. good

the one got debt just receivables Last all move for balance long-term the Can balance that. on off that real you abbreviate debt. a about Thanks of me, your sheet one, quick? given just debt, versus off. what small for Talk just paid

thing So, at buyback, associated took that and of million the changed the only we the date revolver, is, our $XX that's really net just deal the million the at that the $XXX really second minus costs happens. repaid and of that June the those proceeds XXth quarter all right? end that So, all

You have lower revolver borrowings.

you to got average. have convert Now on

sales, of on outstandings most cost down, coming average capital remains contributing one expense. since part things question our are that other that on which receivable interest is expensive your the The that's the today, of to of reduced

for lower somewhat the convert. and revolver receivable new then the lower So, on borrowings, million balance line somewhat sales, the sheet $XXX

interest a those Mike average because the He opposed of who done of two the at overall rate mentioned treasurer sales. some call full-time beginning renegotiating Glen, of are has somewhat then our And of mix reasons and has net, time convert come job, of down So as treasurer. deals. great XX% net, lower receivable the a to for now

that they quarter. are So, even coupon the were the a receivable lower first in back sales than with outstanding coming are somewhat

your they're understand just quick from big not business, of I but If really delinquencies we from economic you one anything view, how manage I a is and to on view, it, business downturns, your works of end here? that getting well? that changed? closer anything, so right, risk want just too just economic couple well. part feel the we, our, your like point is anything from can just last Are point Are are shifting we, to view, point given an you the of part, a sneak small, of just do department it's small is of your that or

Yes.

bankruptcies, and on would I through correctly, little managed There weakened strength parts set got governmental would would certainly a a with, good really certain a went I horrors business have otherwise balance where of the fire today have very did that So, question whether really we be phenomenally may it but support say, strong, focus lot were job alarms, through of off I the but most bit. and rebounded more sheet a COVID say, if I few or companies the well. wouldn't the obviously there's the market's well, customers

I horizon on don't playing issues knock we're of no wood, I on anything, to of. customers, think think don't paying close and again, it's it's elements that alarming, the aware certain anything the we're but market attention

done for could a teams that something Our couple it job a avoiding become which problem, is repeatedly we've great well decades. done a have

as would So, just strong the of it ago. as is XX% overall a was year say, I portfolio

The looking carefully, little our very could and from you other see again, is we're limited at results, XX% very offs. but bit write it as weakened a

No, you down if because it you know. I the just write that. tighten I were because you you getting sales for there out. always was things better. guys low had manage seeing and was… like seeing day if or Thank That widen didn't are were you that's you've it know I if and take know re offs that a,

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companies. the offering, if we The best portfolio to better, and you the offering continues get speaks to at largest service our the when, look have service

going business. benefit is So, back the we always it. that portfolio quite wasn't significantly and the ago, but better obviously do case some has its that's That own to our time where

a and trying Yes but view, macro Yes. and see time the Ira. to know. the was answers. Mike after appreciate thanks had if just the I Company just more perfect. stuff you that, I I No,

call. Thank you. you Thank today's concludes participating. for This conference

disconnect. now may You