LKQ Corp (LKQ) 2004 Q3 法說會逐字稿

I'd like to thank everyone for holding and welcome you to your conference call today with your chairperson as Mark Spears. At this time, everyone is in a listen mode only. There will be a question-and-answer session. At that time instructions will be given. Today's call is being recorded.

Mr. Spears, I'll turn the call over to you at this time and thank you for using Sprint.

Thank you. Before we get started, I have a few comments to read. The statements in the press release and webcast include forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995, including statements regarding our expectations, beliefs, hopes, intentions or strategies. Forward-looking statements involve risks and uncertainties, some of which are not currently known to us. Actual events or results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors. These factors include the risk factors and other risks that are described in our Form 10-K filed March 24, 2004 and in other reports filed by us from time to time with the Securities and Exchange Commission. We assume no obligation to publicly update any forward-looking statement to reflect events or circumstances arising after the date on which it was made, except as required by law.

Good morning, everybody. Thanks for joining LKQ's third quarter 2004 earnings call. On the call today are 2 members of management, Mark Spears, our CFO, and myself. My name's Joe Holsten. I'm CEO of our company. I'll begin by providing some high-level overview of the quarter's performance as well as some qualitative comments on the business during the quarter and then Mark will provide more detailed assessments of our financial results. We reported impressive third quarter revenue growth of 27% today to $106 million in sales in spite of the adverse effects of the hurricanes on our business and a reported decrease in automotive claims by major insurance carriers.

Our organic growth rate was 8.3% and 18.7% of our growth was derived from business acquisitions. While our net income increased by nearly 30%, our earnings per share shows a slight decline as we had a 39% increase in the number of shares outstanding.

We were particularly pleased with the strong operating cash flows of our business, which improved 72% over Q3 of the prior year to $11.6 million as we drew down the inventory of unprocessed vehicles which we had accumulated earlier in the year. We paid down about $6 million of our credit facility during the quarter.

Since our IPO about 1 year ago, we have completed 6 acquisitions, Metro-East in St. Louis and Global Trade Alliance, our entry into the after-market parts industry, Topers (ph) Domestic and Topers International self-service facilities, Albert Lea in Minnesota. And this week, we have announced Foster's Auto Parts in the Northwestern United States. Additionally, we've opened 3 Greenfield projects in Pennsylvania, Texas and Louisiana. This is more than we had projected at the time of our IPO and we believe positions our company for strong growth.

On October 15 of this year, we hosted an audio webcast to discuss that our third quarter 2004 earnings would be lower than we had previously indicated and our expectations. For anyone who may have missed that call, that webcast is still available for you to listen to. I'll just summarize briefly the broad context of the call. We announced that about one quarter of our earnings shortfall for the quarter was due to or would be due to the impact of the hurricanes upon our Florida business and other Southeastern U.S. operations we have as the hurricanes impacted businesses in about 20-25% of our market, resulting in a loss of revenue of approximately $1.2 million, while our variable operating costs remain constant.

Secondly, we noted that about one quarter of the earnings shortfall would be due to slightly slower organic revenue growth in the third quarter, which we felt, at the time, would slow to 8% and, particularly in the latter half of the quarter, which was due partly to the hurricane. And consistent with that level, we noted that the industry is reporting reductions in claims experienced for their second quarters. And that some retail parts chains had been reporting flat to negative same store sales growth while LKQ was still posting 8% same store sales.

The balance of the shortfall we noted was a function of pressure on our gross margins and a function of a slightly heavier weighting toward buying higher end, more expensive salvage. Mark has significantly more detail available on that this morning, so I'll cut my comments at that point so as not repeat things Mark will cover. I'll just note that we have been lowering the cost of the salvage that we have been buying since approximately mid-August. And that was, basically, the context of that October 15 call.

In late February, we introduced the second complementary product line within our company, after-market parts, through the acquisition of Global Trade Alliance, which transacts business under the name Action Crash Parts. We continue to make progress in integrating Action Crash Parts into LKQ. During the third quarter, we moved our Detroit after-market business into the LKQ salvage facility, where the business will be managed as a single business unit. We have begun to deliver after-market parts into the Buffalo and Rochester, New York areas, opening 2 new markets.

Late in the third quarter, we opened a 40,000-square foot Dallas warehouse with product to be shipped to customers across LKQ salvage distribution network in Texas, Oklahoma and Kansas. That warehouse is being filled with product as we speak.

And finally, we completed the lease on a warehouse in Oakland, California of approximately 40,000 square feet. We are installing racking at the moment and product is in transit to that operation, which we would expect to become fully operational in late November to serve the San Francisco Bay area.

We've also placed inventory into our Bakersfield, California, Central California salvage facility, which be used to service not only the Bakersfield, but the Los Angeles area. And finally, our business plan for 2005 indicates that we will be delivering parts into additional new markets next year, including St. Louis, Birmingham and Baltimore, while we continue evaluate warehouse opportunities in the Chicago markets, also for 2005.

For our reported year-to-date results through September the 30th, Action Crash Parts own revenue was $29 million and their related gross margin was 44.1%. For the 7 months and 1 week that we've owned GTA, they have organically grown their business by about 17% over the same period in 2003. I would just add a footnote there that that growth is included in our revenue growth from acquisitions.

One product line that Action Crash Parts carries is automotive after-market lighting. Action Crash Parts sells about $7 million of headlamp lighting annually and that's about 1.6% of LKQ's total consolidated revenue.

Recently, I'm sure a few of you have noted that several insurance companies have stopped writing headlamp after-market lighting on their repair estimates. We like to clarify some thoughts on this issue. The Certified Automotive Parts Association, which is known as CAPA, is an organization that certifies sheet metal and bumper covers. It has never certified lighting.

In March 2003, CAPA tested after-market headlamps for the 1996-98 Ford Taurus model years and the 1999-2003 model years for the Pontiac Grand Am. And CAPA reported that those 2 lights did not meet certain DOT specifications.

In May of 2004, CAPA did a similar study on the 2000-2003 Ford Taurus and the 2000 and 2001 Toyota Camry and came to the same conclusions that those 2 units did not meet DOT specifications either. Both of their studies were sent to the DOT by CAPA.

As of this date, DOT has not recalled any of the headlamp lighting parts. We do not believe that this is a material issue and several insurance carriers have indicated to us that they will continue to write after-market headlamps and continue to do so today. Through last Friday, we have not seen a decline in our after-market headlighting revenues at Action Crash Parts.

On Tuesday of this week, we announced we acquired, for approximately $19 million net of cash, Foster Auto Parts, Inc. and related companies. Foster Auto Parts is a recycled - I'll say the leading recycled OEM automotive replacement parts business in Portland, Oregon. And from that base, they serve the central and coastal Oregon markets as well as the western portion of the state of Washington.

The company has 7 primary business locations, which include 3 self-service facilities and 4 wholesales business operations. Trading annual revenue of this business is approximately $28 million. LKQ has a much smaller business in the Portland area, which we will merge into Foster Auto Parts over the next several months. Foster alone is expected to contribute less than 1% per share on a fully diluted basis to our 2004 results, due to the fact the acquisition has been completed so late in the year.

Now, I'd like to highlight the status of certain Greenfield expansions. First, our fully permitted dismantling facility between Austin and San Antonia, Texas began dismantling and the warehousing of cars in the third quarter. This will be our platform for our entry into the San Antonio market. We also acquired property permitted for dismantling operations in Baton Rouge, Louisiana. This property replaced one that we had used as a redistribution facility. We expect the facility to become fully operational as a dismantling and warehousing operation late in the fourth quarter of this year.

As you also may recall, we opened a Greenfield facility in southern Pennsylvania in the second quarter so that, in total, our company will have opened 3 Greenfield operations during this fiscal year, which is 1 unit ahead of our initial plan. These 3 facilities will incur small operating losses for their first few quarters, but we believe these important market entries will come to our shareholders at a fairly nominal cost.

Over the past years, we have also been working on a fourth Greenfield facility near Philadelphia. However, after encountering over-restrictive zoning issues on the property, we cancelled further development efforts in the third quarter and wrote off approximately $70,000 of costs associated with the project. Our distribution expenses continued, once again, to grow faster than other costs. We continue to invest in our valuable distribution network.

In fact, for the third of 2004, we increased the business that moved over our transferred network by approximately 24% over comparable periods in 2003. We are currently in the process of renegotiating freight rates with common carriers and refocusing our sales force to recoup more of the freight and handling costs and we expect these combined efforts to slow the increase in distribution costs in future quarters. In total, our EBITDA for the quarter, $9.7 million, was 9.1% of sales, which was an increase or 23.2% over the third quarter of last year.

For the quarter, we acquired approximately 19,600 vehicles from all sources for our wholesale business, which was about 12.5% more than we acquired during the third quarter of last year. The percentage of vehicles that we acquired from salvage auctions in the quarter accounted for around 90% of our total incoming product flow.

In terms of our market development activities, our focus remains the same. We continue to market primarily to the insurance carriers and, secondarily, to the collision repair shops in order to attempt to first increase the utilization of recycled parts and then to supply after-market parts to the intent that recycled parts are unavailable.

Our vice president of insurance services continues to work major carriers and we continue to be optimistic that additional programs for direct salvage purchasing will continue to be implemented through the balance of 2004. We discussed in our Q2 earnings call that between June and August, we would enter into additional procurement agreements and during the quarter, we have received close to 60% more cars with insurance carriers and OEMs than we received in Q3 of 2003.

As I discussed on our last quarter's earnings call, we wanted to increase our sales staff levels and we've done so by an average of 10 people or about 3% more in the third quarter over the second quarter of 2004. At this point, I'd like to ask Mark to provide a more detailed discussion on our business' financial reports to the quarter.

Thank you, Joe. Good morning, everyone. Let's take a look at the tables in our press release. We have also included a table that reconciles net income to earnings before interest, taxes, depreciation and amortization, otherwise known as EBITDA. Looking at our income statement, our third quarter revenue was up 27% to $106 million from 83.5 million in Q3 '03. Our first 9 months of revenue for 2004 grew 27.6% to $311 million compared with 243.7 million in the same period in '03.

Our organic revenue growth was 8.3% for the quarter and 12.1% for the 9 months. Our third quarter 2004 gross margin was 45.9% versus 46.8% in the third quarter of 2003 or a decline as a percentage of revenue of 0.9%. This decline is related to several factors - 0.5% is related to our higher end salvage mix in inventory, 0.2% is caused by thus salvage availability in the Northeast region, 0.2% is slippage in our shipping and handling business - that is, that's when we bill a customer for - when we ship product over common carriers and UPS and that type of thing and those go out to the 0.9%.

In explaining what we mean by higher end salvage mix, it is important to note that you pay more for a car because it is better salvaged. By that, we mean less damage on it, less miles on the engine, et cetera. So while you would get more gross margin dollars from that car, you will earn less gross margin as a percentage of revenue.

So, let's go through an example of approximately 1,800 cars that we bought in a given month at one of our regions. And you may want to be ready to write some of these numbers down. The average cost per car was $1,718. The projected revenue of those cars was $3,946. That would give you an average margin, which was $2,228. In that example of those cars, your raw cost of sales percentage would be 43.5%. The illustration I want to give is if you group those types of cars into 4 categories - and the first grouping was, which was about 29% of the cars - cars that we paid under $1,000 for - the margin was $1,757. And that gave us a cost of sales of 27.9%.

Cars between $1,000-1,600, the margin was $2,073. So cost of sales was 38%. That was about 23% of the number of cars we acquired. The next group in this region, between $1,600-2000, the margin was $2,303 and the cost of goods sold was 43.9%. And the last group is what we paid over $2,000 for a car. The margin was $2,730 and cost of goods sold was 51.8%. And that last group was 33% of the cars we bought. So, here we have average cost of sales of all the buys in our region for a month is at 43.5%, but it ranges from 27.9-51.8% depending on the quality of the car we buy, which is characteristic of what we pay for the car.

Let's take a - let's move on and take a look at our overhead costs. Our facility and warehouse expenses for the third quarter improved as a percentage of revenue to 11.4% versus 11.9% for the same period in 2003. These expenses grew 2 million or 20.9% over the same period in 2003. Our business acquisitions accounted for 2.2 million in increased expenses offset by 0.1 million in net reduced expense from our other businesses. This net reduction of expenses was due to 0.2 million in lower rent expense, primarily on acquired real estate that we had previously had under operating leases. Also, it was due to 0.4 million in lower field personnel incentive compensation.

For the 9 months of 2004, these expenses, as a percentage of revenue, improved to 11.1% from 12% for the same period in 2003. On a 9-month basis, facility and warehouse expenses grew 18.6% over 2003, of which 17.6% of expense growth was due to our 2004 business acquisitions. Our distribution expenses for the third quarter, as a percentage of revenue, due to 11.8% versus 10.7% for the same period in 2003. Distribution expenses grew 40.8% in the third quarter over Q3 2003, of which 25.2% expense growth was due to our 2004 business acquisitions. For the 9 months of 2004, these expenses, as a revenue, grew to 11.2% from the 10.5% for the same period in 2003. On a 9-month basis, distribution expenses grew 36.1% over 2003, of which 19.4% expense growth was due to our 2004 business acquisitions.

The balance of the distribution expense growth was primarily attributable to our continued investment throughout 2003 and 2004 in our distribution network. We grew the number of our local salvage delivery routes by an average of around 6% for the third quarter over the same period in 2003. We also operated an average of 11% more daily salvage routes in Q3 2004 over Q3 '03. As Joe indicated earlier, the product we transferred between our plants during the third quarter of '04 was approximately a 24% increase from that level in 2003.

Contracted salvage transfer services increased 28%, common carrier freight, 12%, repairs and maintenance, 18%, and delivery supplies, 20% in Q3 '04 over Q3 '03. In addition, fuel for the third quarter of '04, as compared to 2003 has increased by 27%, the largest year over year jump we have seen so far. For the third quarter of 2004, fuel is approximately 11% of our total distribution expenses.

Selling, general and administrative expenses, as a percentage of revenue, were 13.5% for Q3 '04 compared to 14.7% in Q3 '03. Selling, general and administrative expenses grew 16.6% in the third quarter over Q3 2003, of which 14% expense growth was due to our 2004 business acquisitions. For the 9 months of 2004, these expenses, as a percentage of revenue, decreased to 14% from 14.4% for the same period in 2003. On a 9-month basis, selling, general and administrative expenses grew 24.5% over 2003, of which 11.3% expense growth was due to the 2004 business acquisitions.

Our selling expenses tend to be fairly variable in nature, due to our commissioned inside sales force. Our general and administrative costs are usually less variable in relation to revenue growth.

In third quarter of 2004, we incurred approximately 0.8 million in additional costs related to being a publicly traded company. This was offset by about a million dollars in lower management incentive compensation in the quarter.

Our operating income for the third quarter 2004, grew 21.5% over Q3 2003. Our operating income, as a percentage of revenue, was 7.5% in Q3 '04 versus 7.9% in Q3 '03. On a 9-month basis, our operating income for 2004 grew 29% over 2003. As a percentage of revenue, operating income improved to 8.7% in the first 9-months of '04 from the 8.6% in '03. Interest expense net in 2004 for the third quarter and full 9 months is lower than 2003 amounts, primarily due to lower debt levels and lower interest rates. It's important to note, included in interest expense in the first half of '04 was about $346,000 of previously paid debt issuance costs that were written off, a way of terminating our prior secured credit facility in February '04.

Our Q3 2004 pretax income grew 28.6% over Q3 '03 to 7.5 million. As a percentage of revenue, our pretax was 7.1% for Q3 '04 compared to 7% in Q3 '03. For the first 9 months of 2004, our pretax income grew 34.9% over 2003 to 25.9 million. As a percentage of revenue, our pretax was 8.3% for the first 9 months of 2004, compared to 7.9% for 2003. Our provisions for income taxes was 40% for the first 9 months of '04 compared to 39.7% for the comparable period of '03. The difference in rates is due to the changing mixed of business in different state income tax jurisdictions. Net income for Q3 2004 increased 29.7% to 4.6 million from 2.5 million in Q3 '03. Net income for the first 9 months of '04 increased 34.2% to 15.5 million from 11.6 million in the first 9 months of '03.

Our diluted earnings per share was 20 cents in Q3 '04 versus 22 cents in Q3 '03. For the first 9 months of 2004, our diluted earnings per share were 69 cents versus 68 for the same period in 2003. Be careful in looking at this EPS decrease for Q3, however, because the number of shares outstanding increased 39% over the prior year quarter and 30.6% over the prior year 9 months. Our diluted weighted average common shares outstanding were a follows. For Q3 2004, we had 22,492,225 shares versus Q3 2003 - we were at 16,178,200. Looking at the 9-month numbers for 2004, diluted outstanding shares were at 22,380,930 versus the 9-month 2003 of 17,134,652.

You need to note the number of weighted average common shares outstanding in 2004 versus 2003 changed primarily as we repurchased 3.6 million shares common stock back in the first half of '03 and then issued 5 million shares due to our IPO in early October 2003. We also issued 187,000 shares in 2004 related to our business acquisitions. Other changes in average diluted shares outstanding, related to the effect in our stock price and the exercise of stock options and warrants.

Let's take a look at our cash flow table. We generated 20.2 million in cash from operations for the first 9 months of 2004, with 11.6 million coming in Q3. This compared to 6.7 million in the third quarter of 2003 and 17 million in the first 9 months of 2003. For the first 9 months of 2004, we invested in an additional inventory of 1.5 million compared to about 1.1 million in the first 9 months of 2003. Note in the third quarter of 2004, we did reduce our inventory by $3.4 million from the level it had at June 30, '04.

CapEx, excluding business acquisitions for the first 9 months, was 21.3 million with 5.2 million coming in Q3. This included approximately 11.4 million in real estate acquired during the first 6 months of 2004 that was previously under operating leases. We estimate our full year 2004 capital expenditures, excluding any future acquisitions we may do, to be around $28 million. However, this does include the 11.4 million in real estate we purchased under operating leases. It also includes about 1.5 million related to new startup facilities, 1.8 million to consolidate our core businesses in Houston from 2 facilities to 1 and 2.3 million related to our 2004 business acquisition that incurred CapEx post our acquisition date.

Cash paid for our business acquisitions for the first 9 months of 2004 was 43.5 million. Taking a look at our balance sheet, you'll notice in the third quarter 2004, you will note we had 36.3 million in debt, which includes 33 million in debt under our credit facility. As of today, our credit facility is at 50 million, with an increase of 19 million related to our acquisition of Foster Auto Parts and net payments on a credit facility of 2 million. Including - looking at our 2004 earnings guidance, including business acquisitions we have announced to date, we expect 2004 revenue to between 423-427 million, net income between 19.7-20.8 million and diluted earnings per share between 88-92 cents.

Breaking out Q4 2004, that would indicate revenue to be between 112-116 million, net income between 2.3-5.2 million and diluted earnings per share between 19-23 cents. Using these estimates, our net income growth for Q4 2004 over Q4 2003 is expected to be between 40-73%. We estimated the weighted average number of diluted outstanding shares for the full year to be approximately 22.4 million and the fourth quarter to be at 22.5 million. These share numbers are estimates and assets will be affected by factors such as stock issued in any future acquisitions we may do, the number of options and warrants exercised at such at such period and changes in our stock price. I would like to turn it back to Joe for any further comments and to open up to Q&A.

OK. Thanks, Mark. While the team here is obviously disappointed that we did not achieve the original earnings guidance that we had provided for the quarter, I would like to remind people on the call and to reemphasize a few of the highly attractive aspects of our company. First, we continue to see trends moving toward higher alternate parts utilization and our company outtake to (ph), we believe, is uniquely positioned to provide both types of those parts, both after market and recycled parts, and to leverage our significant relationships with the insurance industry.

Secondly, we believe that the long-term trends of an increasing vehicle population on the road and the overall enormous size of this repair market confirm that this is a very attractive business to be in. Third, I look at the companies compelling value proposition in terms of the cost savings that we provide to our customers and, in particular, to the insurance industry. Fourth, we believe, and finally, that the company has profitable and sustainable growth strategies in place, which include continued acquisitions such as the Foster Auto Parts deal we announced this morning, continued geographical expansion and finally, increasing our market share in both the recycled and the after-market parts business as we continue to grow in an overall enormous retail and repair parts market.

This concludes our comments this morning. So, Sherry, we would like to move to the Q&A session now.

Okay.

[Operator Instructions]

The first question is from Ryan Kelly (ph). Ryan, your line is open.

Thank you. Just a couple of questions. First off, on Foster Auto Parts, you know, 72 acres, 7 locations, about 10,000 cars purchased annually - based on LKQ business, that looks like it's a lower revenue per car. I was just hoping you could talk about that and the margin of that business. And then, on the 15-20% EPS guidance for next year, is the Foster's incremental to that?

Okay, thanks, Ryan. The Foster's business is, as I mentioned, there are 4 yards in the Foster's business that are full-service, wholesale-focused yards and there are 3 of the facilities that are more retail-focused. They are somewhat akin to a self-service yard, but far more focused on retail parts sales. So, the reason the car account looks so significant given the acreage and the number of vehicles is the fact that they've put through far more volume into the retail self-service businesses, which generate a significantly lower revenue per car.

In general, if you would look at their business mix, it's probably about 80% of the revenue that's coming from the sale of - from the full-service businesses and about 20% of their revenue is coming out of the retail self-service operations. The guidance that we had mentioned earlier of 15-20% did not include - or did not anticipate the Foster's acquisition or we would - I would assume now, when our business plans are pulled together, that we would be looking at an earnings growth level of around 20%.

Great. And then, on the hurricane impact, can you talk about what you're seeing in your business now? I mean, obviously, it helped you on the supply side, but on the demand side, if you could just give some color on that and what the timing is of that impact?

Absolutely. You're absolutely right. The big impact on our business right now is on the supply side. That is generally coming to market as we speak. The state of Florida has obviously been swamped with title processing. And we have just, the last couple weeks, started to see the volume of products at the auctions expand considerably. We feel it's a fairly lucrative buying market for the company right now, so we have been buying somewhat aggressively.

The impact on the sales side right now - I'll say the business is good, it's robust, but it certainly is not - it's not kind of blowing anyone's socks off, if you will. It's our view right now that the repair shops are booked up to the end of the year and into Q1 of 2005. And as a result of the backlogs in the shops, it appears as though the insurance adjusters are probably totaling vehicles that they will ordinarily have repaired.

You know, one could assume that as some time goes by and the shop backlog starts to get worked down, maybe the insurance carriers will reverse trend on that. Still, another aspect that I really hadn't fully appreciated, in the panhandle of Florida, a number of the service - repair service centers have not even reopened yet and may not reopen. So, the short answer - business is good, but it's not great.

On those cars, does the flooded car represent a different type of mix or margin than a traditional wrecked car?

I think that's probably fairly neutral. You know, while you may gain the advantage of sheet metal being higher, you know, better quality sheet metal and less, really, no damaged panels, in some instances, you lose some of the power train, especially to the extend there's been any saltwater contamination into the engine or the lighting. Maybe a slight advantage to the kind of flood-damaged product, but not all of the product is simply flood damaged. A lot of it's obviously had trees fallen on it and damage to the sheet metal as well.

Okay, great. Thank you.

Thanks a lot, Ryan.

The next question is from Gary Prestopino. Your line is open, sir.

Yes, thanks. Hey, Joe, could you just go over that whole issue with the headlights? You kind of lost me there when you were talking about all of the different tests and whatnot. I mean, what's the bottom line? Are these headlights - are not certified for repairs or what?

Yes, I'm sorry. I maybe provided more detail than you were looking for. Our view on the headlights is pretty simple. CAPA, which is not a certifier of headlights in the first place, sent some tough things to DOT, for what reason, we don't know, but CAPA made a decision to do that and challenged that the headlights failed to meet - met the safety standards. The lights have been - have not been decertified by DOT. There's been no documentation, no guidance forthcoming from the DOT.

It's our view and apparently the view of a number of insurance companies that these headlights are still DOT certified for use in installation. We continue to get demand from the insurance companies and from the body shops to install this lighting and we continue to sell it as long as it's certified by the Department of Transportation. And it's limited to just 4 vehicle model years and those were the 4 I read off.

What were those years again?

Sorry - those were the '99 through 2004 Grand Am, the '96-'98 Ford Taurus - let's see - sorry, it's picking off a separate piece of paper. Let me - give me 2 seconds here. The 2000-2003 Ford Taurus and the 2000 and 2001 Toyota Camry.

Thank you.

Thanks, Gary.

Sir, at this time, there are no more questions in queue.

[Operator Instructions]

Sir, you have no questions in queue.

Okay. Very good. I'd like to thank everyone for joining our call this morning and we will be putting out our '05 guidance sometime around the end of the year and we'll figure out how best to communicate to the group over the next few weeks and get back to you with the date when we'll be doing that.

Thanks again for joining us.