Service Corporation International (SCI) 2 Nov 232023 Q3 Earnings call transcript

Good morning, and welcome to the SCI Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note that the event is being recorded. I would now like to turn the conference over to SCI management. Please go ahead.

Thank you, and good morning. and call. you Young, third to Debbie earnings quarter is we today welcome our This prepared from have We'll remarks a in moment. just Tom and Eric safe forward-looking by that, language. Any expectations state or before let the quickly plans, over But future for are me our beliefs, comments management our the made projections team statements. that go harbor are contemplated in could our not release uncertainties to differ results These are to subject actual factors and those forward-looking to, and available with risks risks from limited cause SEC in those identified statements include, earnings on statements. These that are but and our uncertainties that our the such materially website. in filings also non-GAAP release to turn Today, our at the Ryan, a measures, like tables and these as website. I'd CEO. end now over found call we Chairman discuss reconciliation our of well and in will the certain as earnings financial Tom to measures also the of can be

the us and with Thank call some you, remarks performance everyone, on will quarter some close greater morning, and Hello, high-level thoughts my preliminary today. for Debbie. on solid for around color and on thank thoughts XXXX our on rest going begin This some then the of with results. cemetery business the XXXX. provide I'm to joining funeral and our some I you detail

rise both share cemetery and projects, to per fixed driven which For the earnings profitability impact expense, prior expense by the impressive with in basis profit third on share earnings completed expenses line, rate and related revenue quarter, the the of and growth to earnings interest per resulting lower rate by cemetery in $X.XX of from our construction the is debt was in primarily favorable point by expansion. Below and in compared the cemetery reducing lower per we increased predominantly $X.XX costs generated lower adjusted prior This segments, improved This interest the general count. XX% margin interest gross administrative variable our rates share higher along share year $X.XX. XXX increased year. over higher in a funeral offset

the $XX during of the recent $XX during our given October. month repurchasing and stock September million of We our share pace million of stock have accelerated buyback, price,

Now into let's take a volume. funeral funeral an deeper X% comparable the million for prior quarter. core declined in Total due expected year or primarily the results $X quarter, look over the revenues decrease about to funeral

are what we funeral in volume due the were compared core quarter, effects, levels. to year volumes line prior Although we with quarter higher declined to anticipated. Notably, believe had funeral COVID pull-forward X% than the volumes third XXXX XX% about

or core cremation revenue the profit a service profit average prior gross an From after impressive over basis negative by in increased the the year mix. X% effects per percentage grew funeral point million, grew even offset growth about basis about increase during Our impressive decline. XX%. Lower XXXX. compensation of fixed and the costs sales experienced sales production million the Preneed of impressive an slight quarter SCI the reduced grew year funeral the Direct channels Both X% than incentive quarter more costs production and the by gross $X perspective, profit the points revenue $XX the prior XXX to a over third absorbing while quarter. over XXX core

to recognized revenue million increased as increase million preponderance of accounted quarter. the or $XX over shifting the prior revenue and by sales or both expected due revenue in primarily to is previous completion increased the capturing for cemetery from just revenue production. of Core the quarter year quarter construction Comparable X%. to cemetery. compared projects by Now third current third This during the increase which rate drove the growth preneed X% $XX an recognition the sales

income generated declined fund X% Additionally, X-year service we $XX quarter. Preneed the by saw sales as returns in year to million from increased over quarter. prior cemetery an period third production the average higher trust or compared and merchandise

sales While $XX,XXX, below and by is we activities, continue believe declined of to million. $XX indirectly effect. to see We decline some impressive COVID or core our this large growth contracts pull-forward attributable in sales directly the production

We discretionary economic to us acutely the savings trends past. History our in lower stabilized by see has inflation. rates impacted a real by impacted consumer also similar and continue being tells diminished incomes that

cycle. an purchase production to advantage is of consumer as deferred, appreciates preneed affords higher versus services XX% selling cycle the Our a is of relatively lost. product This cemetery ability sales value. the products than turns. Notably, recover in the early XXXX. economic have quickly depreciation And not the and recovery quarter experienced We a believe us our sales discretionary production cemetery that had we third

increased by profit and by While in period. Cemetery $XX compounded X-year XX% revenue than large over annual less costs or in rate core points third as sales prior are growth growth a quarter were impressive, the in the enhanced over sales X.Xx to XXX which The sales increase the percentage incentive XXXX. of XX% gross grew the an quarter the was grew the XXXX, over compensation the compared higher from as cemetery million is further quarter. at preponderance to gross production profits basis by lower $XX,XXX, than

are forward funeral see our funeral about the in for Now the In where XXXX, of the declines would pull COVID annual to we of outpaces volume volume low increasing we segment, as the let's guidance. our mid-single-digit impact expect shift maintaining slightly outlook to trends. remainder discussion to

our at backlogs. the as funeral the side, well customer from atneed healthy would low as level maturing the On positive preneed both funerals growth expect we the mid-single-digit to average, in

percentage side, range preneed to in from to cemetery single-digit we sales expect low growth production flat fourth would the quarter. the cemetery On

and would expect to share we quarter. fourth unfavorable Therefore, year share interest and favorable per for XXXX offset completed projects count comparison be construction lower a lower While to, higher the most we costs be above at will from a against was the highest expense. year's in last administrative years. Favorable part, many quarter quarter fourth new earnings the healthy anticipate prior or The impact newly construction during quarter as slightly general the impact fourth results. the from impact

Now at as look XXXX. we

side, count expense, $X.X lower On lack cemetery rate an in the be year. as first and offset range excess during per of effect slightly XXXX. lower half growth funeral higher to by the mind hikes Fed revenue volumes. decline in billion, we change. In consumer, we funeral impact a from lower Therefore, slightly earnings absent funeral lead when the our XXXX earnings that We construction projects rate, will to the the to newly resulting well the earnings line, share widening anticipated our source maintain from guidance we comparative earnings on at increases $X.XX about impacting result comparable interest from economic balances variable basis in slightly would share. fewer we preliminary we higher offset deaths having Today, to the This growth during pull-forward cremation the guidance behavior, are growth least still low as $X.XX. of approximately to in effect, impacted in per recently moderating low and Due average a of mix improvement consumer decline of material by share. Typically, annual the would volumes part, XXXX we anticipate we from share per the when range percentages. Below XXXX. Keep a COVID mid-single-digit higher discretionary range per mid-single-digit a change for year. pricing, with the condition comparable move achieving expect inflationary in the an $X.XX guidance to the levels, any expect most of interest normalized has by a a impact percentage and the would as combined XXXX rate a on point facility set the funeral is should segment, the experienced $X.XX sales of completed This favorable single-digit for a XXXX trajectory, pre-COVID XXX rates, debt credit interest coming significant expense preliminary of for anticipate slightly surrounding cemetery in of share higher effect provide the due interest compared uncertainty $X.XX. visibility when

formal provide release, will in our investor call. guidance February We earnings

Day, a new about to you want some XXXX, off quickly because you I point talked a growing of, gave 'XX. and that were back Investor 'XX, we May we gave to So base and you preliminary around presentation 'XX we and thoughts guys

believe this higher from $X.XX Page you we XX% that operating And XX% back base and was effectiveness. coming XX% go of from we off buybacks that accelerated cost from sales of. we're If productivity, XX, referenced to

$X.XX. base. new a using share $X.XX that to to off and XX, per So if We XXXX the grow were you to growth Page had XXXX go be XX% be to earnings projected we

So let's reconcile how ourselves, XXXX you So ask are to doing I'm that? and that we'd number. ask sure yourselves, versus we

If with guess, idea you midpoint to you, is math, the our that $X.XX I $X.XX, with range tell we the start $X.XX.

at X%. compares and rate of on modeling an that out we average $X.XX to sit were were in XXXX. Today, variable X.X% will So time the we raise rates, XXXX, remember, 'XX, $X.XX, the doing? Well, had be rate was our May we are we rate X.X%. debt Fed assumed for our debt to that in we how And our when we projecting variable

on versus our XX. assumption XXX was So Page that basis there's back a increase that about model point in

So back $XX into year $X.XX put we'll XXX the that's $X.X our additional that billion debt, you variable flowing finish to in likely. you Investor which That's if most million compare of against share. Day. It's increase is point about expense interest basis per when where XXXX rate about

midpoint, that So you per is $X.XX. the share tell at $X.XX if midpoint you model the Investor to compared $X.XX $X.XX Day, would to our add was that

truth into as the Investor or performing an we're above And do a So Fed rates didn't at actually the we back, told the that we you consideration aggressively and the is, at as was level one looking did. Day. variable raising take we of they what matter

that's But and a of well. We've we higher an comparisons. excited are environment we so where positive sit trends working lot here a about now got seeing we're pleased very through. model about we're interest a think, rate And we with year-over-year I very with think company as today, operating as navigating

you customers, to that do and are all each our other, like continue SCI every company entire So and team the for finally, thank guys great. makes our communities you I'd day what for our to

So turn over with to call going the to Eric. that, operator, I'm

all of the way, associates do Tom, and to just at On Puerto good to everybody. morning, we going XX,XXX to behalf know. Tom, same all possible here I of their I'd mind you, every to you our at and worst thank the Thanks, across our peace and outstanding you of to ended. want behalf families, U.S., not without with you imagination. lives, stretch Canada to and what provide I'm Without start everything of of everybody, address each and results Rico. On service would team client strong like of one the any day at of management your times these you for as be SCI, do commitment families those their financial client

to of that investments shifting of kind quarter. talk the the an give on a it, towards of about more kind on update going flow But color lot a our preliminary fourth a you and I'm And February. how I'm Tom basis. about position now as with some for capital operating of quarter. and So things cash outlook did we'll of on talk to going to comments also bit during my quarter this results specifically then then our and little the cash done XXXX we've you flow provide in know, financial

driving of So and with expectations our generated this beat let's flow quarter. million operating really of quarter-over-quarter cash that over improvement. adjusted grew prior start factors under We kind just that that year. think million, are about more There's X $XX large than internal I $XXX strong just the this

about as tax accounting in payments already which the increases resulted for you that cash discussed strong payments, we've earnings this tax generated about detail, reminder, installment Cash growth. the as primarily caused change lower Tom resulting property from in cash expected, morning. more than the the through quarter. when flow in could cemetery interest offset acts treatment higher through $XX debt defer an interest million on a cash were million. from $XX payments in the are actually manner. was cash First, were rate rates a into taxes just change what of received to taxes consumers. This higher again by gone this from and the lower flow the that That's last future by tell went higher that And that, floating years that we

cash capital Some we the did and our quarter. things flow with exciting that with during

some real our a acquisition current of $XXX we some growth opportunities, into million and accretive locations, new total First, invested estate.

capital We you break the of $XXX full you existing million sales over $XX topic and We've and digital a cemetery of $XX just $XXX give to on with current initiatives. A the replenishing field into a me little to million down more development, our consumer million deeper facilities range CapEx. into for and little total color you. this Let that of back guided bit into $XX deployed XXXX. for CapEx maintenance businesses, of inventory meet of demands, bit maintenance million our the million maintenance year $XX million of to cemetery systems

finish year this million will will bit range. capital While we moderate we a higher total this of end the in quarter, fourth to we the $XXX million at $XXX little believe expect the maintenance

We expansion of a a and to California, the to growth existing homes well few. few to in Texas, home facilities, close as new name cemeteries in $X primarily the funeral of primarily in invested Virginia also some funeral Florida, to million and as some and related capital, Ohio name construction

front, the XXXX. acquisition to year the low over the is million which investment acquisition $XX spend $XX to million we our $XXX range quarter, year-to-date $XX target full bringing full million, million of the of our On year acquisition invested approaching during for of end just

which for total land markets repurchases. noticed, we in large [indiscernible] and we've I'll cemetery million, invested just be predominantly of expansion. investments used nearly capital purchases, as dividends of shareholders just And in addition to subsequent end, mentioned, of million a returned little shareholders we the also million since kind make other normal fell to I the was approximately to expense, Western just on quarter to a group. share Tom the that a million. A major our in $XX for And corporate quarter, million this, was $XXX way, total for about $XX which Finally, the one based future reemphasize lower designated expense, by million peer to quarter. of before, compensation shareholder returns parcel million to these $XX $XX $XX million by to estate real was our expected primarily company's I've it to quarter, incentive return talked the want range capital that acre quarter. $XX $XXX of things million brief of bringing during with This the on long-term the associated U.S. primarily of comment was $XX I below year-to-date on to plan G&A driven relative a for compensation

on comments about financial our position. moving a to few So

facility. Also bank the Liquidity debt-to-EBITDA, of towards X.Xx term. approximately end refresh our liquidity is debt hand us slightly give the net at our end quarter. which on the under of quarter at $XXX end targeted on of continue we just maturity available leverage And cash have the our memory, of a about in to to lower these least of favorable Our the on to consisted ratio about of the results, million quarter decreased X.Xx your and credit at of billion to last third X.X plus leverage million effectively long-term just range Xx near the to operating continue at of end to bias $X the ability capital. the the profile approximately invest of at quarter, $XXX stronger end

So shifting more to an outlook.

guidance As midpoint has press XXXX $XXX our of operating the a we cash million. in disclosed adjusted release, flow range

when XXXX some our with preliminary cash Cash increases by to the talk discussed the 'XX, this like give We growth I'd expectations. be and as expected guidance And the you close by projected positively our that we we in earnings flow on flow again. But color you out we'll flow in expense. February cash be mentioned, a interest just which includes, expected range should again, off range official year. preliminarily, of to impacted way, in that are expecting new will we grow give in after to Tom

mentioned to payments be for be lastly, XXXX. in our cash also from And had reduced morning. will Our program by ICP net working this $XX already preneed that taxes of will early occur that expect million capital reasons uses the I to generally million in XXXX of $XX we less some offset

guidance it So you terms in hopefully, to that about cash gives expectations excited that for we're some flow as relates preliminary our of XXXX.

cash forward, will and So in from in forward, value. shareholder you predictable especially strong opportunities capital closing, and more of highest with best flow, maximize to as we sheet, look order combined to to can great as liquidity we do that 'XX, continue really the move a same expect solid provide balance to company our use invest the in

again, families, for front to results. their thanking to this our client I'd contributions in of by do second what like and So the to us entire to is in which none end these SCI do they team helping achieve

-- And you, So our open to ahead and questions. those prepared turn that, this and with go for to that, up call that we'll operator, to back I'm it going remarks. concludes back

[Operator Instructions] Bank with The Joanna first question of Gajuk comes America. from

guess, initial talked outlook I about you XXXX here. first, So

So that the and were guess, for were guess May you to you expressed initial, Thanks thinking color how I XXXX. bridge I obvious in the

in helpful of interest that's terms expense. the So

of X questions specifically, terms there. the cemetery In so segments,

for about digits for low for talk revenues production this year-over-year. cemetery year, grew actually you be first, I will expectations So single 'XX, guess But down.

next the driving what's actually year? growing guess, I into revenue So

Yes, Joanna.

cemetery, a for we preneed question. if much with sales COVID cemetery way funeral. in I correlate what thanks funeral, was real especially spike Yes, higher it the the and think than think about So to you through saw

that was funeral because side, probably reliant think mail, discretionary likely And And leads. they're purchase. very side very the on direct so seminars, you're cemetery digital consumer more the I upon on focused secondarily, That issue. to the on was

to person difficult do. was meeting pretty So in

look much did you the if business the come ] trajectories bit, the as the trajectories now period, both are whereas same. cemetery at down traffic and compounded But mountain the The come spiked is pretty kind and cemetery out funeral [ of has relies up now growth. to spike to places. the growth same. The the spike the through So eke continuing difference much upon to over entire little probably sales really a

volumes on towards So has as impact about funeral down on impact source think That an because skewing lead our COVID X%. you the are cemetery.

to people traffic, there's to. There's less less sell

the feel funeral that's think again, able that when again, now to grow to deaths we COVID to source core begin we're get you as trending will that of perspective, So our stabilize, about and we predicting go see to sales. right back excess kind be to mid-single-digit to low and we from growth our But funeral a business. -- down. I that think be volumes ability traffic a to lead when year-over-year, from expect that confident slightly that's perspective for cemetery cemetery our because volumes slightly of, down XXXX And to back

second my XXXX, guess, about parts, growth for I you X and next I sales was in it but supports you cemetery about, the just after think terms think which answered, whether that right, don't question preneed me, production. cemetery you it said afterwards. guess Remind of you I Because on year then, how know how the also

Yes.

volumes wanted trajectory thing were back. the think the X% depending in on to keep call only we're let's out year, in come will sales we've down. X% be the somewhere feel And we of the -- think I mind, grow to always I said really think call there like is to we it, saying things. year. But we're slightly can think is We One funeral is range preneed next So X cemetery back what there.

expect to more slightly means our that that lead source cemetery point. be percentage wouldn't may impact than down. our a I sales So

discretionary X% of our there the about Brian about And from a in consumer you've purchase. a out of there of volumes do X% quarters a you -- I down. I this to seven retailers what got there's applaud I lot are being the Target X%. qualifier talking to Cornell savings, listening, And to incredible. want fact that absolutely think X% row is wind which are they've if is your why ability to other think drying at look a is you've there's the the for up, to excess And do out think our is everybody, you So one that morning, they've experienced rates when was spend, face discretionary. in cemetery now, inflation that's put that's I'll remind impacting to consumer effects typical consumer, team for higher got been sales as able interest discretionary

rates feel very, continue absent bad that consumer high with good concessionary to it, very inflation to about correlate happening really we everybody housing the I again, the trends. At something ability the I see stock and being but to tend positive is that for consumer, to So would more end, spend. because and else And high impact impacted. end don't market prices interest

that So think of get same-store think to. to I lower next X% X% 'XX, than normal growth. year to that range as you when used then the we're And to you're slightly back

helpful. that's guess, Eric the squeeze I I may if I No, more, one terms for G&A just in very commentary. guess, of And

when number Is impact it So to year year? you about accrual there comes think that's next next into be how of numbers. going to reversal a to should going forward going this this

annual to G&A is I in expense talking million was is. since the million probably generally year. the there The Yes, to annually, guidance quarterly you're and for $XXX range talking $XXX full have before,

if we'll below range. that slightly not end of low end that, the I at low end that of think

little bit the heart headwind middle back the And of in up so $XXX you're end up of in in million million getting probably I us so $XXX to million believe of a for that or the of XXXX, looking you range, $XXX a $XXX next that will at million. 'XX, year if put in

Joanna. where a I to it in related lot think I you the said now, lot just probably that as it's more generally quarter of fourth So that should there, think assumptions of about to a head. in ultimately, my come But

right. All

the the So of follow-up magnitude a I like accrual, $X a as million, that, than little it on to say, it things? more Was like? you sounds that bit would comp guess,

-- talking find... You're during I didn't about the

quarter, the yes, sorry, In incentive The benefit, yes. quarter, In on accrual. the part yes. the

Yes.

I kind you're ICP was of max of the lot against very the bringing their accrual think in up accruals last really a strong quarter, comparing that a to year.

accrue during in have specific So me, quarter front But to but $X.XX you. of of ballpark G&A on it the a everything of XXXX year that to my helps don't depending of saw some a of how for for we I it. I I'd for say just course, we it's XXXX, of middle said get in of road tailwind back got assumptions that percentage max quarter. And that a probably that kind $X.XX next the like probably target in terms the we've if in not assumes percentage

Scott with question comes from Our Schneeberger Oppenheimer. next

for point, cycle? forward It's at in the bit think for how normalizing little pull see -- about looking next last we you on Daniel year funeral transition there the we that XXXX. volume as a impact on year? Scott. before in XXXX Are this elaborate expectations where Could do the you we range are How at

No.

but much has that philosophically, Eric a each say way think probably effect I diminishes we're year. this, pull-forward the thinking number got better about statistics, I'd

becomes So of as 'XX, forward you 'XX We out. further we in do a de 'XX. going it but there's think to think minimis and pull be effect get pretty it's

deaths. Having excess that, to some XXXX, continue we some continue said deaths, experience XXXX. that in to in think improvement regard, you we about So actually COVID year-over-year, it's see an when

go we to And about into those those beginning think get so 'XX as you trends, away to 'XX. are as

of That's But So range 'XX, the still a bit to be the of it, what competition to in getting there's decline you Then year-over-year the and and see share. growth as think about you we're it, trying X% market favorable and out what to that this on call X% to year, to versus then begin a net-net trends probably a call a seeing slightly year-over-year climb X% you towards would get deaths drag is negative. as is the XXXX. back X% you of point back we're up we that, numbers think our kind our for assumption decline. 'XX in

expectations gears side Switching you next the Got margin I year during I segments the past, know efficiency it. to you performance gained quarter. pandemic. pretty good a to speak for on margin. you the And across in the talked please funeral think both this cost Could about

you if you next please can segment about update think looking the get year. margins an how on So into

volume. you think the first production 'XX, last when what tough that those a of in may on segment about think I of would we I those sorry, more so my year-over-year. quarter kind you of both is of the side year I'm think volumes -- of point a on you positive, than think for funeral funeral because I overall, comparison first expect be margin the quarters would side happened to cemetery year, quarter when the on that memory of sales and caution because

XX, think So of thinking to slightly it. you -- you type flat I can but margins overall, about as is model of way the think we're up

Raymond question James. Our comes from next Instructions] [Operator Ransom with John

that about say, rate, which at this Looking last where was cemetery this how elevated recognition next of the we relative I'd $X.XX, do does year, And year, certainly guide year? go think midpoint the the year? your to

No.

at think in I John. when press what's low rates in last year, the XXs, you look were probably the release, the recognition

we're probably I say where is that to going going this kind that I in mid-XXs of And to ballpark. in be the would will end think be probably XXXX they're probably year.

the of recognizing projects, and we're get completing to revenues. back as So the kind it I think starting construction of

in think of more same what that were you'll we quarter saw on You the in see and we 'XX. the plan And I that expected do. to

type mid-XX% kind So a being of it think 'XX I think will to end. of of as 'XX kind rate recognition similar how

Okay.

off the than higher you Or is of new some the higher. that's big kind So that's normal? projects? like that just it burning construction Is still of -- said,

No.

beyond come use. what metric I think months, that. to on a for next right XX, visibility now, But more XX there's think that's for think that I I have we the good radar to and our

midpoint the count activity a Okay. far And repo your of your thinking year just this year? share -- using of are then so you given just accelerated again, couple guide, next about how other

it throttle depends and already the as already. kind gave We're Yes. is I what that. purchased, the repurchase already we we think value you what of we up million-ish you've X.X mean seen is in share us, back. as throttle on happens in the range price and based what through We've as on October because numbers the what we back

to there's I as the of described quarter more come fourth to potentially already you. that think we've during

that So our it right just basic X.X brought depends million has on I shares going now, think outstanding. forward,

talk about opposed that getting to million about as to calculation million XXX outstanding. just shares a dilutive Let's XXX to

very we're it that think there's to there. assumptions moderate there and opportunities go to a happy are capital in million, from to pierce finally higher I -- think price deploy the of I and that 'XX, through terms the in share we'll what will is. lot to of what that with So XXX return other But a

kind thing? you're Is into of You're that me? by low that telling what

are We kind [indiscernible] of

regard? that? you you're but it FTC seeing And this question any thinking the time hope prices that update -- just because asked competitor behavior, in for on then your I know are if about I year it I next -- is of tedious, is fallout online, from this And just what last sort was putting

with kind we Subsequent before. We and at Yes. memorializing and October. It's some which in early that, the from that said sent seat FTC, John. what letter to is in really lot workshop, quarter. to is There industry table. early with a public sent a what a that a more had said just about that of we've letter of outside what There people September we same, of that workshop industry the in subsequent the we last visited people we consistent was the talked

would position, homes, pricing changed to our funeral of terms prices but online, we X,XXX In of haven't right with online. again, our now of those probably I say X,XXX have X,XXX we

our But pricing it. to -- We full-blown the our having invest whether things, just pick and those down they and I've at consumers website. going what pricing, websites see of using material of come. have the and think I we're of into into whatever drill starting love with ahead because company in premium one more different moving fluctuate our FTC experience, is, it way other. the learning. We a come it's to I just effect powerful to for celebrations, perspective We very And move levels as absolute we're kinds or the like Memorial well we'll exactly an it's curve, forward, circle, all to interacting and full Dignity to don't menus said, from decide, of or continue digitally

any So put from just you've online knock-on this point on the effect not this, the done you're markets pricing? fine in seeing to a where

in seeing not markets negative preneed we're some as We're and preneed relates type leads effects effect, and seeing certain to of consumers. positive any actually some it

We're to out. keep to a what figure going management going. the right We're this, to That's testing. to going keep lot variables good at. of the we're doing So our going find team people is

to just sorry, because going lot get I'm we this questions. on keep a of

their shopping, prices or you other you're his but mystery local let's know level? -- So competitor her do have prices say a or at you looking in ways online. what to How your you just have a markets, doesn't

and is would week much I and what's very management their competition, say competition with online market is pretty and every our every each and day. both very, plugged Yes. in each happening at their

sounds mystery that, I'll [indiscernible] If you got shopper put openings, any into that like

You meet the demography [indiscernible]

from last telling a are guys Dignity. know keep I was checkup that the what flyers getting you me little ways. Yes, got don't I fine. I

question We from Joanna Cajuk. have a follow-up

last I guess on this topic.

collecting was like FTC understand sounds when There took the on hear so FTC. I information. from workshop might timing the So update and some it we any place, still

We Yes. several for going been this years in time. has on Joanna. point I at mean, don't, this really

rather the meetings picked FTC timing, you bit we X is that a have this to maybe been to. But rather is on at as industry that and later. last than hoping that the not change of think in later, an wouldn't little up opportunity to that my the government the sooner there sooner flavor know. have on all had but I'm September with a go than before said quarter of compared the I it's FTC predictions I the

right. All

quarter we production side. you I my commentary about, in around follow-up, actually, the presales guess, were just on wait. sit and So cemetery I But the around guess talking -- other when

end comparison QX. how million talked lower or us you you can in large sales of mid-tier? I give some the to versus So above sales in things $XX around were large guess maybe QX about

was because on back the you? bring continue financing you of I So customers what kind I customers where lower guess options it these guess, QX. And some offer you to like to do that's the in to end, to it sounds trying of were to

Yes.

continue third levels, the from sales of a large first I XXXX X.Xx. and lot there. see to mentioned that we was was quarter fact success that one to this So

about I equivalent. quarter, think we're in the second

$XX million I about so same piece. that $XX million, on the pace we're think and

the we those to relates have it As out. consumer rolled incentives,

just bag. guess been we degrees In as it's markets, would not of toolkit other to sales a maybe a But utilizing we've seen of dramatic our if we've tool. to varying I teams I don't and mixed continuing a certain has that success. that much. the want that to a it's we're in fix effective got I that has think tool anything customer markets, a But want need there's that in describe to they're utilize but as sure make for yet, a them as and plan Joanna, a it.

Or that's I guess I a X% you guess like the And still Okay. table? offer off do financing?

behavior. different if things may different it's what Again, of So have base markets, utilize for a right? that kind can they see consumer toolbox that drive and item they they

they including things a board, So we that can the them on to variety of get consumer X%. to try utilize help give

the right. I acquisition. one very on And Markets understand. Okay. last [indiscernible] All the

there's to the in I So end guess go quarter still year. X go guess more or guess I tracking, towards this I you're I months lower year. to one the for guess,

year about the bit potentially going I for pipeline that some I the there's sensing at talk maybe in the the or guess next keep flow a leverage any guess, I it decrease room are appetite, you're implies to for current sounds the into kind guidance, little cash So you increase guess, But level. your year, this activity of and M&A.

So next year when comes just kind of thinking about this it to year into acquisitions. and

good, is Joanna. I pipeline the think really

is forward So highly some close the we now in may right? timing are next, So we that on the quarter. over close or the it, tough the there. feel in out months, part, will deals deals the working very we're XX they but The may call likely fourth positive as not first quarter, that look

way about sometimes So good tough deals, I just the seeing very to as activity. positive. go. yes, as good the think far and It's slip deals can think timing next XX seeing deals But months were

back would question-and-answer management any over SCI the I turn session. to closing remarks. to like This our for conference concludes

and Thanks for Thank We speaking look we our you, quarter everyone, much. it, call in so being on to and today. to with the fourth again year-end earnings. appreciate you forward February

presentation. conference now for concluded. you has The today's attending Thank

You disconnect. may now