McGrath RentCorp (MGRC) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the McGrath RentCorp third quarter, 2024 earnings call at this time. (Operator Instructions)

女士們先生們，謝謝你們的支持。歡迎此時參加 McGrath RentCorp 2024 年第三季財報電話會議。（操作員說明）

This conference call is being recorded today Thursday, October 24th, 2024.

本次電話會議於今天 2024 年 10 月 24 日星期四錄製。

Before we begin note that the matters of the company management will be discussing today that are not statements of historical facts are forward-looking statements within the meaning of the private Securities Litigation Reform Act of 1995 including statements relating to the company's expectations, strategies, prospects backlog or targets.

在我們開始之前，請注意，今天將討論的公司管理層的事項不是歷史事實的陳述，而是1995 年私人證券訴訟改革法案含義內的前瞻性陳述，包括與公司的預期、戰略、前景有關的陳述積壓或目標。

These forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties that could cause our actual results to differ materially from those projected important factors that could cause actual results to differ materially from the company's expectations are disclosed under risk factors in the company's Form 10-K and other sec filings, forward-looking statements are made only as the date hereof except as otherwise required by law. We assume no obligation to update any forward-looking statements.

這些前瞻性陳述並非對未來績效的保證，涉及重大風險和不確定性，可能導致我們的實際結果與預測的重要因素有重大差異，這些因素可能導致實際結果與公司預期有重大差異，這些風險和不確定性在風險因素下揭露。我們不承擔更新任何前瞻性陳述的義務。

In addition to the press release issued today, the company also filed with the SEC the earnings release on Form 8-K and its Form 10-Q for the quarter ended September 30th, 2024.

除了今天發布的新聞稿外，該公司還向 SEC 提交了截至 2024 年 9 月 30 日的季度的 8-K 表格和 10-Q 表格收益報告。

Speaking today will be Joseph F. Hanna, Chief Executive Officer and Keith E Pratt, Chief Financial Officer. I will now turn the call over to Mr. Hanna. Please go ahead, sir.

執行長 Joseph F. Hanna 和財務長 Keith E Pratt 今天將發表演說。我現在將把電話轉給漢納先生。請繼續，先生。

Thank you, Jeff.

謝謝你，傑夫。

Good afternoon, everyone and thank you for joining us on our call today.

大家下午好，感謝您今天加入我們的電話會議。

It has been quite an eventful quarter.

這是一個多事的季度。

On September 18th, we announced that we had mutually agreed to terminate our pending acquisition by Will Scott.

9 月 18 日，我們宣布雙方同意終止 Will Scott 的待決收購。

In accordance with the terms of the merger agreement, McGrath received a termination fee of $180 million from the announcement of the merger in January 2024. We navigated a nine-month period where McGrath operated as a company anticipating being acquired.

根據合併協議條款，麥格拉斯自2024年1月宣布合併起收到了1.8億美元的終止費用。我們經歷了九個月的時間，麥格拉斯作為一家預計被收購的公司運作。

Needless to say, this stretch was an unfamiliar operating environment for our company.

不用說，這段時期對我們公司來說是一個陌生的營運環境。

We maintained our independent competitive positioning in the marketplace throughout this period.

在此期間，我們保持了在市場上的獨立競爭地位。

My direction to our teams was very simple. First stick to our strategy and execute as we have always done.

我對我們團隊的指導非常簡單。首先堅持我們的策略並像我們一貫所做的那樣執行。

Second, deliver our financial plan and keep the company healthy through the nine-month period. Across the company, we kept our teams together found ways to reduce cost and to enhance revenue streams and supported one another throughout.

其次，交付我們的財務計劃並在這九個月期間保持公司的健康發展。在整個公司，我們讓我們的團隊團結在一起，找到降低成本和增加收入來源的方法，並自始至終相互支持。

I truly think it is a testament to our strong culture and the dedication and commitment of our team members to each other and to our customers that we lost very few people to turn over through this challenging period.

我確實認為，在這個充滿挑戰的時期，我們流失的人員很少，這證明了我們強大的文化以及我們團隊成員對彼此以及對客戶的奉獻和承諾。

I could not be prouder of everyone's accomplishments during such an uncertain time.

在這樣一個不確定的時期，我為每個人所取得的成就感到無比自豪。

With that, we are back to normal quarterly earnings reporting and discussion. So, let's turn now to our latest results for the third quarter, total company revenues increased 10% and adjusted EBITA increased 13%.

至此，我們回到正常的季度收益報告和討論。那麼，現在讓我們來看看第三季的最新業績，公司總收入成長了 10%，調整後的 EBITA 成長了 13%。

The modular business performed very well while our portable storage and TRS businesses experienced market demand headwinds during the quarter.

模組化業務表現出色，而我們的便攜式儲存和 TRS 業務在本季度經歷了市場需求逆風。

Mobile Modular had a strong quarter with rental revenues growing 9% and sales revenues growing 14%.

Mobile Modular 季度表現強勁，租賃收入成長 9%，銷售收入成長 14%。

Both our commercial business and our education rentals grew during the quarter.

我們的商業業務和教育租金在本季均有所成長。

The commercial wins we experienced were geographically broad based and in a wide variety of market verticals including government and technology.

我們所經歷的商業勝利具有廣泛的地理基礎和廣泛的垂直市場，包括政府和技術。

Our education business benefited from modernization and growth projects and encompassed both public and private school customers.

我們的教育業務受益於現代化和成長項目，涵蓋公立和私立學校客戶。

We maintained our focus on solid execution.

我們仍然專注於紮實的執行。

Our team actively managed pricing fleet utilization and deployment of new fleet consistent with recent ABI data and other macro indicators of construction related demand. We experienced some delays and softness in the demand environment utilization dipped slightly year over year and ended the quarter at 76.5%. We still consider this to be a healthy range based on quote volumes and bookings. We have opportunities to improve this number.

我們的團隊根據最近的 ABI 數據和建築相關需求的其他宏觀指標，積極管理機隊利用率和新機隊部署的定價。我們經歷了一些延遲和需求環境疲軟，利用率同比略有下降，本季末利用率為 76.5%。根據報價量和預訂量，我們仍然認為這是一個健康的範圍。我們有機會提高這個數字。

In addition to our core rental revenue drivers, we also continued the expansion of our revenues in the services portion of our customer offerings revenues from mobile modular plus site related services and custom modular sales all grew in the quarter and we remain excited about the opportunities these additional services offer our customers.

除了我們的核心租賃收入驅動因素外，我們還繼續擴大客戶產品服務部分的收入，來自行動模組化加站點相關服務和客製化模組化銷售的收入在本季度均有所增長，我們對這些機會仍然感到興奮為我們的客戶提供額外的服務。

Turning to our portable storage business. Rental revenues declined by 11% in the quarter from a year ago. Recent A B I data and other macro indicators of construction related activity reflect delays and softness in the demand. Environment, less activity in commercial construction driven by interest rate, headwinds appear to be a primary factor driving our portable storage decrease, shipments for new projects were below expectations and returns were higher than planned as projects completed and were not replaced as quickly.

轉向我們的便攜式儲存業務。本季租金收入較去年同期下降 11%。最近的 A B I 數據和建築相關活動的其他宏觀指標反映了需求的延遲和疲軟。環境、利率驅動的商業建築活動減少、逆風似乎是推動我們的便攜式存儲減少的主要因素，新項目的出貨量低於預期，並且由於項目已完成且更換速度不快，回報率高於計劃。

The effect was widespread across our geographies and not concentrated in any one area at TRS Rentelco. Rental revenues declined by 10% with both our general purpose and communications. Rental revenues impacted this reflected the continuing industry wide slowdown in test and measurement equipment markets both at OEM and rental equipment providers.

這種影響在我們的各個地區都很普遍，而不是集中在 TRS Rentelco 的任何一個區域。我們的通用和通信租賃收入下降了 10%。租賃收入的影響反映了 OEM 和租賃設備提供者的測試和測量設備市場持續全行業放緩。

We took appropriate measures in the quarter to continue to keep the business on a stable footing. We sold excess equipment and scaled back purchases of new equipment, shifting gears beyond the third quarter. I would like to take a moment now to comment about the Helene and Milton Hurricanes.

本季我們採取了適當的措施，繼續保持業務穩定。我們出售了多餘的設備，並減少了新設備的採購，在第三季之後進行了調整。我現在想花點時間評論海倫颶風和米爾頓颶風。

Our operations are secure, and we are up and running in all locations with negligible disruption.

我們的營運是安全的，並且我們在所有地點都正常運行，中斷幾乎可以忽略不計。

Despite the extensive regional storm damage and heartbreaking photos and coverage of these natural disasters events like this are typically not a big needle mover for a graph near term. The storms in some cases could have a negative impact with delays to customer projects either in the field now or planned also until recovery efforts reach further stages. We are not anticipating much in the way of new business opportunities for McGrath.

儘管區域風暴造成了廣泛的破壞，令人心碎的照片和對這些自然災害的報道，像這樣的事件通常不會對近期的圖表產生重大影響。在某些情況下，風暴可能會產生負面影響，導致現場或計劃中的客戶專案出現延誤，直到恢復工作進入進一步階段。我們對麥格拉思的新商機並沒有太多期待。

Nevertheless, we are positioned to provide both space and storage for customers who need it. We will likely know more about any new storm related demand in the months ahead. As recovery operations continue to look ahead for the fourth quarter and beyond 2024 there is clearly uncertainty in the overall demand environment, soft demand that we have been experiencing. Our portable storage and TRS businesses may continue into 2025 at mobile modular, our range of growth initiatives and positive pricing dynamics should remain positive and help to offset any market demand, softness with interest rates projected to ease in the quarters ahead. We are cautiously optimistic that demand conditions may improve although that could take time and we will likely be well into 2025 before we see results that said long term, I could not be more positive about the prospects for our growth and continued execution of our strategy.

儘管如此，我們的定位是為有需要的客戶提供空間和儲存。未來幾個月我們可能會更了解任何新的風暴相關需求。隨著第四季和 2024 年後的復原營運持續向前發展，整體需求環境明顯存在不確定性，我們一直在經歷需求疲軟。我們的便攜式儲存和TRS 業務可能會以行動模組化方式持續到2025 年，我們的一系列成長舉措和積極的定價動態應保持積極，並有助於抵消市場需求的疲軟以及預計未來幾個季度利率將放緩的情況。我們對需求狀況可能會改善持謹慎樂觀態度，儘管這可能需要時間，而且我們很可能要到 2025 年才能看到長期結果，我對我們的成長前景和繼續執行我們的策略持非常樂觀的態度。

Our efforts to grow our modular business both organically and by strategic acquisitions continue to produce encouraging results with our broader geographic coverage from our new branch locations and acquisitions. We have plenty of opportunities to make further fleet investments to serve customers.

我們透過有機發展和策略性收購來發展模組化業務的努力繼續產生令人鼓舞的成果，我們的新分支機構和收購涵蓋了更廣泛的地理範圍。我們有很多機會進行進一步的機隊投資來為客戶提供服務。

We have runway to continue to grow for many years ahead.

我們有未來許多年繼續增長的跑道。

Our pricing disciplines and processes are robust and as the fleet turns over, we will have a revenue tailwind.

我們的定價規則和流程非常健全，隨著機隊的周轉，我們將獲得收入順風。

The initiatives that we started namely mobile modular plus site related services and custom modular sales are adding value for our customers and growing.

我們發起的舉措，即行動模組化加站點相關服務和客製化模組化銷售，正在為我們的客戶增加價值並不斷增長。

We have a large diverse and high-quality customer base across commercial and education markets. Our commercial opportunities are broad and include mega projects, government infrastructure and data center growth. We believe our education business has a multi-year period of continuing school modernization needs new construction to support shifting student populations and growth opportunities in private schools and charter schools. And we are well positioned to serve those customers across multiple geographies.

我們在商業和教育市場擁有龐大、多元化、高品質的客戶群。我們的商業機會非常廣泛，包括大型專案、政府基礎設施和資料中心的發展。我們相信，我們的教育業務需要多年的持續學校現代化建設，以支持不斷變化的學生群體以及私立學校和特許學校的成長機會。我們有能力為多個地區的客戶提供服務。

Our portable storage business not only has markets, we are in that we are early in their growth phase but also many new markets for us to enter over time representing future growth potential.

我們的便攜式儲存業務不僅有市場，而且我們正處於其成長階段的早期階段，而且隨著時間的推移，我們還有許多新市場需要進入，這代表著未來的成長潛力。

Our TRS business is a leading technology provider with the ongoing demands for more bandwidth and faster speeds and devices we use every day. We see a positive path ahead for the business to recovery.

我們的 TRS 業務是領先的技術供應商，對我們日常使用的更多頻寬、更快速度和設備的持續需求。我們看到業務復甦的積極道路。

In summary, we believe our multi-year opportunity to bring additional value to our customers through expanded service offerings are and are committed to continuing to increase our customer base and geographic coverage.

總而言之，我們相信，透過擴大服務範圍為客戶帶來額外價值的多年機會正在並致力於繼續擴大我們的客戶群和地理覆蓋範圍。

We remain committed to building long term shareholder value through sound strategic focus discipline, capital allocation and consistent execution.

我們仍然致力於透過健全的策略重點紀律、資本配置和一致的執行來建立長期股東價值。

Mcgrath is on a strong footing as we emerge from the terminated merger agreement, sometimes companies emerging from a terminated merger process are damaged. We are not fundamental to our success is a culture that I am genuinely honored to be a part of our team members care about our customers and each other. Unlike anything I've seen in my 34 years of business experience, their will to serve and lean in was the driver of our success through an uncertain period. And I'm quite sure that coupled with our strategies and execution plans in place today, we have what it takes to move McGrath to another level of growth and performance.

當我們從終止的合併協議中恢復過來時，麥格拉斯站穩了腳跟，有時，從終止的合併過程中恢復過來的公司會受到損害。我們成功的根本不是一種文化，我真的很榮幸能夠成為我們團隊成員關心我們的客戶和彼此的一員。與我 34 年商業經驗中所見過的任何事情不同，他們的服務和學習意願是我們在不確定時期取得成功的驅動力。我非常確定，結合我們今天制定的策略和執行計劃，我們有能力將麥格拉斯的成長和業績提升到另一個水平。

We will be focused on doing just that benefiting our shareholders, customers, partners and team members. Along the way.

我們將專注於讓我們的股東、客戶、合作夥伴和團隊成員受益。一路上。

I would like to once again, thank our team members and leaders for the outstanding job. Each of you has already done this year. We're focused as a team on a solid finish to 2024.

我想再次感謝我們的團隊成員和領導所做的出色工作。今年你們每個人都已經做到了。我們作為一個團隊致力於在 2024 年取得圓滿成功。

With that, I'd like to turn the call over to Keith who will take you through the financial details of our quarter and our outlook for the full year.

接下來，我想將電話轉給基思，他將向您介紹我們季度的財務細節以及我們對全年的展望。

Thank you, Joe and good afternoon, everyone as Joe highlighted, we delivered very good results in the third quarter driven by the performance of our mobile modular business.

謝謝喬，大家下午好，正如喬所強調的那樣，在行動模組化業務業績的推動下，我們在第三季取得了非常好的業績。

Looking at the overall corporate results for the third quarter, total revenues from continuing operations increased 10% to 267 million and adjusted EBITA increased 13% to 104 million.

從第三季的整體公司業績來看，持續經營業務總收入成長10%，達到2.67億美元，調整後的EBITA成長13%，達到1.04億美元。

During the third quarter, the company received a $180 million payment from WillScot Mobile Mini. Attributed to the termination of the previously announced merger agreement.

第三季度，該公司從 WillScot Mobile Mini 收到了 1.8 億美元的付款。歸因於先前宣布的合併協議的終止。

The transaction costs incurred during the quarter due to the knive terminated merger process were 39 million.

本季因終止合併程序而產生的交易成本為 3,900 萬美元。

The proceeds received partly offset by the transaction costs incurred and an increase in provision for income taxes resulted in a 104 million net income contribution during the quarter or $4.'21 per diluted share.

收到的收益部分被產生的交易成本所抵消，所得稅撥備的增加導致本季度淨收入貢獻為 1.04 億美元，即稀釋後每股收益 4.'21 美元。

Reviewing mobile modulars operating performance as compared to the third quarter of 2023.

與 2023 年第三季相比，檢視行動模組化營運績效。

Mobile modular had an impressive quarter as we continued to make progress. Delivering on our mobile or modular business growth strategy adjusted EBITA increased 23% to 71.4 million and total revenues increased 13% to 191,400,000.0 million.

隨著我們不斷取得進展，行動模組化季度業績令人印象深刻。實現我們的行動或模組化業務成長策略調整後的 EBITA 成長 23% 至 7,140 萬美元，總收入成長 13% 至 191,400,000.0 百萬美元。

There were increases across all operational revenue streams including 9% higher rental revenues, 23% higher rental related services revenues and 14% higher sales revenues.

所有營運收入來源均有所成長，包括租金收入成長 9%、租賃相關服務收入成長 23% 以及銷售收入成長 14%。

The sales revenues increase was primarily due to higher new equipment sales and demonstrated good progress with our initiative to grow modular sales projects.

銷售收入的成長主要是由於新設備銷售的增加，以及我們發展模組化銷售項目的措施取得了良好進展。

Rental margins were 62% up from 59% a year ago.

租金利潤率從一年前的 59% 上升至 62%。

Primarily because of the rental revenue growth and lower inventory center costs.

主要是因為租金收入成長和庫存中心成本降低。

We continued our disciplined fleet management on a larger fleet with 5% higher average rental equipment on rent and average fleet utilization of 77.1% compared to 79.9% a year ago.

我們繼續對規模更大的車隊實施嚴格的車隊管理，平均租賃設備租金提高了 5%，平均車隊利用率為 77.1%，而一年前為 79.9%。

Third quarter, monthly revenue per unit on rent increased 18% year over year to $820 for new shipments. Over the last '12 months, the average monthly revenue per unit increased 16% to $1191.

第三季度，新出貨的每單位月租金收入年增 18% 至 820 美元。在過去 12 個月中，每單位平均月收入成長了 16%，達到 1,191 美元。

Progress with mobile modular plus is embedded in these data points and is an additional growth driver.

行動模組化+的進展嵌入在這些數據點中，並且是額外的成長動力。

We continue to make progress with our modular services offerings for the third quarter, mobile modular plus revenues increased to 7.9 million from 7.6 million a year earlier.

第三季我們的模組化服務產品持續取得進展，行動模組化+營收從去年同期的 760 萬增至 790 萬。

And site related services increased to 12.8 million up from 10.1 million.

網站相關服務從 1,010 萬增加到 1,280 萬。

Turning to the review of portable storage adjusted EBITA for portable storage was 10.8 million. A decrease of 10% compared to the prior year.

轉向便攜式儲存的審查，調整後的便攜式儲存 EBITA 為 1080 萬美元。與上年相比下降10%。

Demand conditions during the quarter were weaker, primarily because of lower commercial construction project activity.

本季的需求狀況較弱，主要是由於商業建築項目活動減少。

Higher sales revenues partly offset rental weakness resulting in a total revenue decrease of 11% to 23.1 million rental revenues for the quarter decreased 11% to '17 million and rental margins were 86% compared to 84% a year ago.

較高的銷售收入部分抵銷了租金疲軟的影響，導致總收入下降 11%，至 2,310 萬，該季度租金收入下降 11%，至 1,700 萬，租金利潤率為 86%，而去年同期為 84%。

Average rental equipment on rent decrease 12%. While average utilization for the quarter was 62.8% compared to 76.5% a year ago.

平均租賃設備租金下降12%。本季的平均利用率為 62.8%，而去年同期為 76.5%。

We responded to the softer market demand conditions by reducing new equipment capital spending and carefully managing operating costs.

我們透過減少新設備資本支出和謹慎管理營運成本來應對市場需求疲軟的情況。

Turning now to the review of Ts and Telco adjusted EBITDA was 18.9 million. A decrease of 10% compared to last year and total revenues decreased 11% to 34.8 million rental revenues for the quarter decreased 10%. As the industry experienced continued end market weakness.

現在轉向 Ts 和 Telco 調整後 EBITDA 的審查，為 1890 萬美元。與去年相比下降 10%，總營收下降 11%，至 3,480 萬，本季租賃收入下降 10%。由於該行業終端市場持續疲軟。

Average utilization for the quarter was 57.3% compared to 59.4% a year ago and rental margins were 37% compared to 40% a year ago.

該季度的平均利用率為 57.3%，而去年同期為 59.4%，租金利潤率為 37%，而去年同期為 40%。

Sales revenues decreased 13% to 7.6 million and gross margins were 52% compared to 35% a year ago.

銷售收入下降 13%，至 760 萬美元，毛利率為 52%，去年同期為 35%。

To address the softer business conditions. We continued to reduce new equipment capital spending focused on sales of used equipment, reduced fleet size and carefully managed operating costs, total fleet value based on original cost of equipment with 357 million at the end of September down '11 million from the second quarter and down '26 million from a year ago.

應對較疲軟的商業環境。我們繼續減少新設備資本支出，專注於二手設備的銷售，縮小機隊規模並精心管理營運成本，9 月底基於原始設備成本的機隊總價值為 3.57 億美元，比第二季減少 1,100 萬美元，比一年前減少了2600 萬。

The remainder of my comments will be on a total company basis from continuing operations.

我其餘的評論將基於整個公司的持續運作。

Third quarter, selling and administrative expenses increased 0.8 million to 49.3 million during the quarter, the company determined that transaction costs totaling 39 million attributed to the terminated merger agreement were non-operating and therefore were excluded from selling and administrative expenses.

第三季度，銷售和管理費用增加了80萬美元，達到4,930萬美元，該公司確定因終止合併協議而產生的總計3,900萬美元的交易成本屬於非經營性費用，因此不包括在銷售和管理費用中。

Interest expense was 12.6 million an increase of 1.6 million as the result of higher average interest rates and higher average debt levels during the quarter.

由於本季平均利率上升和平均債務水準上升，利息支出為 1,260 萬美元，增加了 160 萬美元。

The third quarter, provision for income taxes was based on an effective tax rate of 26.4% compared to 27.3% a year earlier.

第三季所得稅撥備的有效稅率為 26.4%，而去年同期為 27.3%。

The decrease was primarily due to changes in business mix by state.

減少的主要原因是各州業務結構的變化。

Turning to our year-to-date cash flow highlights net cash provided by operating activities was 338 million compared to 119 million in the prior year.

談到我們今年迄今的現金流亮點，經營活動提供的淨現金為 3.38 億美元，而前一年為 1.19 億美元。

The increase was primarily attributed to the 180 million payment received from Willscot mobile mini net of 61 million transaction costs.

這一增長主要歸因於從 Willscot mobile mini 收到的 1.8 億美元付款（扣除 6,100 萬交易成本）。

Rental equipment purchases were what 167 million compared to 171 million in the prior year.

租賃設備採購量為 1.67 億美元，而前一年為 1.71 億美元。

New equipment purchases were primarily for the modular business as we reduced spending at TRS and portable storage. In response to softer demand conditions.

新設備採購主要用於模組化業務，因為我們減少了 TRS 和便攜式儲存方面的支出。為了因應需求疲軟的情況。

In addition to investments in new fleet, healthy cash generation allowed us to pay 35 million in shareholder dividends.

除了投資新機隊外，健康的現金產生使我們能夠支付 3500 萬美元的股東股息。

At quarter end, we had net borrowings of 609 million and the issue of funded debt for the last '12 months adjusted EBITA was 1.75 to 1.

截至季末，我們的淨借款為 6.09 億美元，過去 12 個月的融資債務發行調整後 EBITA 為 1.75 比 1。

Finally, our 2024 financial outlook for the full year, we currently expect results from continuing operations to be total revenue between 910 and 920 million adjusted EBITA between 345 and 351 million gross rental equipment, capital expenditures between 181 and 190 million.

最後，我們對2024 年全年財務前景進行展望，目前預計持續經營業務的總收入將在910 至9.2 億美元之間，調整後的EBITA 將在345 至3.51 億美元之間，租賃設備總額將在345 至3.51 億美元之間，資本支出將在181 至1.9 億美元之間。

Our outlook reflects the following expectations for the final quarter of the year.

我們的展望反映了對今年最後一個季度的以下預期。

Modular rental revenues up slightly from the third quarter.

模組化租賃收入較第三季略有成長。

Modular rental related services revenues at a level comparable to the second quarter, we expect fewer site related services projects in the fourth quarter compared to the seasonally busier third quarter, modular sales revenues down slightly from the third quarter.

模組化租賃相關服務收入與第二季度相當，我們預計第四季度現場相關服務項目將少於季節性繁忙的第三季度，模組化銷售收入將較第三季度略有下降。

Overall performance at TRS and portable storage below third quarter levels reflecting demand, market softness and seasonality total McGrath selling and administrative expenses excluding expenses related to the merger transaction up sequentially from the third quarter, interest expense of approximately 10.5 to '11 million.

TRS 和便攜式儲存的整體業績低於第三季水平，反映了需求、市場疲軟和季節性，McGrath 銷售和管理費用總額（不包括與合併交易相關的費用）較第三季度連續增長，利息費用約為1050 至1100 萬美元。

In summary, McGrath is on a solid financial footing.

總而言之，麥格拉斯的財務基礎穩固。

We remain committed to building long term shareholder value through signed strategic focus, disciplined capital allocation and consistent execution.

我們仍然致力於透過簽署策略重點、嚴格的資本配置和一致的執行來建立長期股東價值。

Despite distractions from the merger process and challenging end market demand conditions for two of our businesses.

儘管合併過程分散了我們的注意力，而且我們的兩家企業的終端市場需求條件充滿挑戰。

We have delivered strong year-to-date results and we are fully focused on solid execution for the remainder of the year that concludes our prepared remarks.

我們已經取得了今年迄今為止的強勁業績，並且我們完全專注於今年剩餘時間的紮實執行，以結束我們準備好的演講。

Jess, you may not open the lines for questions.

傑西，你不可以打開提問線。

Thank you. At this time. If you would like to ask a question, please press star one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. Once again, that is star one to ask a question, we'll pause for a moment to allow questions to queue.

謝謝。此時。如果您想提問，請按電話鍵盤上的星號一。您可以隨時按二號星將自己從佇列中刪除。再說一次，這是提問的首要問題，我們將暫停一會兒，讓問題排隊。

We'll go first to Scott Schneeberger with Oppenheimer. Your line is open. Please go ahead.

我們首先請教斯科特·施內伯格（Scott Schneeberger）和奧本海默（Oppenheimer）。您的線路已開通。請繼續。

Thank you. Good afternoon, Joe and Keith. A few questions. I'm going to start in mobile modular with end markets, the commercial and education you mentioned both are up in rental and it sounds good. Could you give us a sense of the magnitude? I would imagine education is a good bit stronger. But can you give us a sense of the magnitude of how much each of them is up? Thanks.

謝謝。下午好，喬和基斯。有幾個問題。我將從行動模組化終端市場開始，你提到的商業和教育領域的租金都在上漲，聽起來不錯。您能為我們介紹一下其規模嗎？我想教育會更強。但您能否讓我們了解一下它們各自上漲了多少？謝謝。

Sure. Scott, actually, it was pretty balanced for the quarter. There was not a big divergence there as far as how those both those segments performed. I think education was up 10% and commercial was up 8% for the quarter. So, we're pretty balanced.

當然。斯科特，實際上，本季的情況相當平衡。就這兩個部分的表現而言，並沒有太大的差異。我認為本季教育成長了 10%，商業成長了 8%。所以，我們很平衡。

Great. Thanks. And could we speak to, to price versus volume with regard to that. I it looks so we saw the charts in the deck that you're still getting very strong pricing, I guess so, there's two questions in this one. Do you anticipate strong pricing to continue in the next year? It sounds like the demand environment is solid. And then how was the, the price volume split? Thanks.

偉大的。謝謝。我們可以談談價格與數量的關係嗎？我看起來所以我們看到了甲板上的圖表，您仍然獲得了非常強勁的定價，我想是的，這個中有兩個問題。您預計明年定價會持續強勁嗎？聽起來需求環境很穩定。那麼，量價是如何劃分的呢？謝謝。

Yeah, I would say I'll answer the first part and Keith can follow up; I would say we have a nice tailwind there. Our pricing efforts have paid off for us and we anticipate that same dynamic will go into next year.

是的，我會說我會回答第一部分，基斯可以跟進；我想說我們在那裡有一個很好的順風。我們的定價努力已經得到回報，我們預計明年也會出現同樣的情況。

Yes, Scott, just in terms of price volume pricing overall remains healthy. We've also been working hard as you know, to add in additional services to contract. So that helps with the statistics on revenue per unit on rent. So we're making progress there. You'll see in some of our published statistics that the value of equipment on rent increase for the third quarter compared to a year earlier was up about 5%. Having said that there is a dynamic as we churn the fleet and we introduce newer assets that are more expensive units on rent were actually down slightly year over year. So there's a lot of moving parts there, a lot of mix issues as well. But those are some of the dynamics that we saw in the third quarter.

是的，斯科特，就價格數量而言，定價總體仍然健康。如您所知，我們也一直在努力在合約中添加額外的服務。這有助於統計每單位租金收入。所以我們正在那裡取得進展。您會在我們發布的一些統計數據中看到，第三季租金上漲的設備價值與去年同期相比增長了約 5%。話雖如此，當我們攪動船隊並引入更新的資產時，會出現動態，這些資產是更昂貴的單位，租金實際上比去年同期略有下降。所以那裡有很多活動部件，也有很多混合問題。但這些是我們在第三季看到的一些動態。

Thanks Keith and just following on that and then we'll move to another segment. But the how is your quoting activity in your deliveries there? I realized this time of year for classrooms probably quiet until you get to the first quarter. And also, for commercial modulars. But what type of trends are you seeing there may be on a year over year basis or however you, you care to comment. Thanks.

謝謝基思，接下來我們將轉向另一個部分。但是你們在那裡交貨的報價活動如何？我意識到每年的這個時候教室可能會很安靜，直到第一季。此外，也適用於商業模組。但是，您所看到的趨勢可能是逐年變化的，或者您願意評論的。謝謝。

Yes, Scott, actually, quote volumes and opportunities resulting from those quotes were up very nicely in the quarter. And I'm talking, you know, some of that was influenced by the addition of Vesta, but, you know, we're in the double-digit range, very easily there. And so, we were very encouraged and that, that has remained strong virtually the entire year so far.

是的，斯科特，實際上，本季的報價量和這些報價帶來的機會都成長得非常好。我說的是，你知道，其中一些是受到灶神星加入的影響，但是，你知道，我們很容易就處於兩位數範圍內。因此，我們感到非常鼓舞，而且到目前為止，這一勢頭幾乎全年都保持強勁。

Great. Thanks, Joe. Appreciate that. O over in portable storage, obviously a little bit more secretly pressured. Could you answer the same question, please? Either one of you on the, the quoting and deliveries, and specifically, I kind of missed it. Keith, you said something about, fourth quarter just now in the guide portable fourth quarter versus third quarter. Is it expected to be down despite seasonal? I know you don't do a lot of seasonal relatives and maybe some others in the industry. But, if you could just speak to that trend. Thanks.

偉大的。謝謝，喬。很欣賞這一點。O在便攜式儲存方面，顯然壓力更大一些。同樣的問題你還能回答嗎？你們中的任何一個人，報價和交付，特別是，我有點錯過了。基思，你剛剛在指南便攜式第四季與第三季中提到了第四季。儘管季節性，但預計會下降嗎？我知道你們做的季節性親戚不多，也許還有業內的其他人。但是，如果你能談談這種趨勢的話。謝謝。

Yeah, just to start with your last comment. Scott. Yeah, if you plot a chart and just look at the rental revenues at portable storage this year, they've actually gone down as we went Q1 to Q2 to Q3. And it's disappointing, it reflects the very difficult demand conditions we've seen there. And at this point, we don't see any change around those demand pressures. So we think the fourth quarter most likely will see rental revenues lower than the third quarter. And therefore overall performance of that part of the business, we would expect to be lower than Q3. So that's sort of the first comment and we're not necessarily going into all the percentage detail. If you look at the drop in rent revenues in Q3, we saw similarly a reduction in quote opportunities reductions in bookings reductions in shipments. All the metrics were consistent with a difficult demand environment and similar to some of the comments we made, I think at the end of Q2, so that difficult conditions and, and definitely what we experienced.

是的，從你最後的評論開始。斯科特.是的，如果你繪製一個圖表，看看今年便攜式儲存的租金收入，你會發現，從第一季到第二季再到第三季度，它們實際上已經下降了。這是令人失望的，它反映了我們在那裡看到的非常困難的需求狀況。目前，我們沒有看到這些需求壓力有任何變化。因此，我們認為第四季的租金收入很可能會低於第三季。因此，我們預計該部分業務的整體業績將低於第三季。這是第一個評論，我們不一定會討論所有百分比細節。如果你看看第三季租金收入的下降，我們會發現報價機會減少，預訂減少，出貨量減少。所有指標都與困難的需求環境一致，並且與我們在第二季末發表的一些評論類似，因此困難的條件，以及我們所經歷的情況。

Thanks Keith and just one more in that segment. Given everything you just said, how's the, how's the pricing environment? And just any elaboration on that topic? Thank you.

感謝基斯以及該部分中的另一位。鑑於您剛才所說的一切，定價環境怎麼樣？以及關於該主題的任何詳細說明？謝謝。

Yeah, pricing. We have to reduce slightly, but we've really worked to hold our pricing as much as possible. And so, we haven't seen a significant deterioration there, Scott,

是的，定價。我們必須稍微降低價格，但我們確實努力盡可能地保持我們的定價。所以，我們沒有看到那裡的嚴重惡化，斯科特，

I think so. And then, I guess so for you, the standard questions, one, if you could speak to what you're seeing with regard to semiconductors and five G. And then, the last question on this segment would be this, this has been a pretty prolonged cyclical downturn. Could you speak to the duration of past downturns and how you would compare contrast this if possible? Thanks.

我想是的。然後，我想對你來說也是如此，標準問題，一，你是否能說出你所看到的有關半導體和 5G 的內容。的周期性衰退。您能否談談過去經濟衰退的持續時間以及如果可能的話您將如何進行比較？謝謝。

Sure. As we reported earlier in the year, the weakness that we had first seen in the business was with semiconductor, computer and semiconductor part of the business, but that is actually spread a bit. It is now we're seeing slowness in the wireless part of the business and that's mostly, you know, tower work and things like that, the service providers are doing out on site. And we're just seeing less of that than we had anticipated wired communications. On the other hand, which is supporting all of the bandwidth requirements for data centers and things like that has actually been very strong. So, we're seeing two different kinds of mixes in that business to address your, your question about longevity. This has been a longer downturn than typically we've seen. And so, we'd like it to turn, we think it will turn one of the things notable in the business that I that I think is worthy of mentioning is that you know, from a sequential quarter, over quarter basis, the business has been performing in a very narrow band. So we really haven't seen a deterioration there as the year progresses. So, I have to hope that, you know, we're in a kind of a situation right now where things have leveled out and that we have upside ahead of us.

當然。正如我們今年早些時候報導的那樣，我們首先在該業務中看到的弱點是半導體、電腦和半導體部分業務，但實際上這種弱點是分散的。現在我們看到無線業務部分進展緩慢，這主要是服務供應商在現場進行的塔式工作和類似的工作。我們所看到的有線通訊比我們預期的要少。另一方面，它支援資料中心的所有頻寬需求以及類似的東西實際上非常強大。因此，我們在該行業看到了兩種不同的組合來解決您關於長壽的問題。這次衰退的時間比我們通常看到的要長。因此，我們希望情況發生轉變，我們認為這將改變業務中值得注意的事情之一，我認為值得一提的是，你知道，從連續一個季度來看，整個季度，該業務已經在一個非常狹窄的樂團中表演。因此，隨著時間的推移，我們確實沒有看到情況惡化。所以，我必須希望，你知道，我們現在所處的情況已經趨於平穩，我們還有上行空間。

Thanks. And then last one for me is just on the $180 million cash inflow Keith. You quantified it on the call as post, you know, your legal and other expenses and post taxes. I think it was $104 million left over. How is that going to be applied across the business?

謝謝。最後一個對我來說就是關於基斯 1.8 億美元的現金流入。您在電話中將其量化為郵寄費用，您知道，您的法律費用和其他費用以及郵寄稅費。我認為還剩下 1.04 億美元。這將如何應用於整個企業？

Sure, Scott and I just want to expand upon your comment and you're absolutely right with what was said regarding the third quarter results and the contribution that we got related to the $180 million reverse termination fee. But if you look at it more broadly and go back all the way to the fourth quarter when we began to incur transaction related expenses, you may recall, we disclosed approximately 2 million of expense back in that quarter. And then we had additional expenses in the first and second quarter of this year. Really the entire journey of the transaction process caused us to incur 63 million in expenses. And if you take that number against the 180 million and then apply a tax rate to the, the sort of gain that we had really the net proceeds to McGrath are much closer to 86 million. So that's the first comment, everything you said was right about the third quarter. I like to look at it in terms of the overall economic impact on McGrath. When we look at the full journey that we've been on with the terminated transaction, in terms of what we do with the money. A couple of comments, I think the first thing to keep in mind is we just got the funds slightly over a month ago and we're assessing our options. And if we look at the business really, it gives us a little bit more flexibility in terms of our capital allocation choices, we routinely look across the business and look at all the normal areas for capital allocation. We start with organic investment in the business and we look at our M&A opportunities in the landscape that can complement what we're doing organically. Obviously, we have a long track track record with our shareholder dividends and increasing those dividends. And then periodically we'll look to repurchase our shares. So any excess capital in the near term that is not immediately allocated to one of those areas is used to pay down debt. And that's what we did at the end of the third quarter. But we'll be looking at those normal areas of capital allocation as we go forward and we will try to make wise choices that benefit the shareholder over the long term.

當然，斯科特和我只是想擴展您的評論，您對第三季度業績以及我們獲得的與 1.8 億美元反向終止費相關的貢獻的說法絕對正確。但如果你更廣泛地看待它並追溯到第四季度，當我們開始產生交易相關費用時，你可能還記得，我們​​在該季度披露了大約 200 萬美元的費用。然後我們在今年第一季和第二季有額外的費用。確實整個交易過程為我們帶來了6300萬的費用。如果你把這個數字與 1.8 億美元相比，然後應用稅率，我們實際上獲得的麥格拉斯淨收益接近 8600 萬美元。這是第一個評論，你所說的關於第三季的一切都是正確的。我喜歡從對麥格拉斯的整體經濟影響的角度來看待它。當我們審視終止交易的整個過程時，就我們如何處理這筆錢而言。有幾點意見，我認為首先要記住的是，我們一個多月前剛剛收到資金，我們正在評估我們的選擇。如果我們真正審視業務，它給我們在資本配置選擇方面提供了更多的靈活性，我們通常會審視整個業務並查看資本配置的所有正常領域。我們從對業務的有機投資開始，並尋找可以補充我們正在做的有機業務的併購機會。顯然，我們在股東股利和增加股利方面有著長期的記錄。然後我們會定期回購我們的股票。因此，短期內任何未立即分配到這些領域之一的過剩資本都將用於償還債務。這就是我們在第三季末所做的。但隨著我們的發展，我們將專注於資本配置的正常領域，並努力做出明智的選擇，使股東長期受益。

Great, thanks Keith. And, and I appreciate your clarifying that over the life of the endeavor with Will Scott. Now complete. So, just a final question on that are all the costs that you anticipate incurring related to that done as of third quarter or might there be some trickle into the fourth quarter? And was that counted in your 86 million? Net? Thanks.

太好了，謝謝基斯。而且，我很感謝你在威爾·斯科特的一生中澄清這一點。現在完成了。那麼，最後一個問題是，您預計發生的所有成本都是與第三季完成的工作相關的，還是可能會在第四季度產生一些費用？這算在你的8600萬裡嗎？網？謝謝。

Yeah, substantially all the costs we believe have been incurred at this point.

是的，我們認為此時幾乎所有成本都已發生。

Alright, great. Thanks for filling all my questions. I'll turn it over.

好吧，太棒了。感謝您回答我所有的問題。我會把它翻過來。

We'll move next to Mark Riddick with Sidoti.

我們將與西多蒂一起移至馬克·里迪克旁邊。

Hey, good afternoon.

嘿，下午好。

Hi, Mark.

嗨，馬克。

Hi, Mark.

嗨，馬克。

So, I just wanted to follow up on the and I appreciate all the commentary you've already provided. Wanted to talk a little bit about the, the debt reduction that that did take place. I wonder if you could sort of give us a little additional commentary around the magnitude and what was taken, I guess very at the very end of the quarter or how should we think about the debt reduction from the end of Q2 to Q3 and maybe the timing and what we've got there?

所以，我只是想跟進，並感謝您已經提供的所有評論。我想談談確實發生的債務削減。我想知道您是否可以就規模和採取的措施給我們一些額外的評論，我想是在本季度末，或者我們應該如何考慮從第二季度末到第三季度的債務削減，也許是時間安排以及我們已經得到了什麼？

Yes. So, we announced the termination of the merger process on September 18th, and we promptly received the funds for the merger agreement from Will Scott A and that really came in just a few days after the announcement. And as I mentioned, we used the net proceeds to pay down depth in the third quarter and that is reflected on the balance sheet. So, you know, if you look at where we are at the end of the third quarter, that's really net of all of that activity, the only item if you look into the details is that we will have some higher cash taxes in the fourth quarter, there'll be a few tens of millions there, but the fourth quarter is also a quarter where typically we have much lower rental capex expenditure and generally higher cash flows. So, if you want to sort of look ahead and look at debt levels for the fourth quarter and year end, I will say they're going to be comparable to what we saw at the end of Q3.

是的。因此，我們在 9 月 18 日宣布終止合併流程，並立即從 Will Scott A 處收到了用於合併協議的資金，而這筆資金在宣布後幾天就真的到了。正如我所提到的，我們使用淨收益來支付第三季的深度，這反映在資產負債表上。所以，你知道，如果你看看我們在第三季末的情況，這實際上是扣除所有這些活動後的結果，如果你查看細節，唯一的項目是我們將在第四季度徵收更高的現金稅第四季的租金資本支出通常會低得多，但現金流量通常會更高。因此，如果你想展望未來，看看第四季和年底的債務水平，我會說它們將與我們在第三季末看到的水平相當。

Okay. And that sort of then brings me to the, so sort of just general long term thought process would be a reiteration of maybe how you guys have looked at leverage and comfort levels of ranges and things of that nature. How should we be thinking about things going forward and then maybe could talk a little bit about the potential of ramping up of acquisition pipeline, which was sort of you know, you guys have been on the sidelines on that during this process. So, I wonder if you could talk a little bit about those opportunities maybe and, you know the opportunity to start doing that again.

好的。然後，這讓我想到，一般的長期思考過程可能會重申你們如何看待範圍和此類性質的槓桿率和舒適度。我們應該如何考慮未來的事情，然後也許可以談談擴大收購管道的潛力，這是你們知道的，你們在這個過程中一直處於觀望狀態。所以，我想知道您是否可以談談這些機會，並且您知道再次開始這樣做的機會。

Sure. And I'll let you comment maybe on the broader, you know, how we think about M&A work, but just in terms of leverage, we ended the quarter at 1.75. Keep in mind with our loan agreements, we have a cap of 2.75. So from a leverage point of view, we're extremely comfortable, we're very comfortable running the business in the twos. And again, we look at that as we look at strategic opportunities and capital allocation, it's just one of the factors we weigh as to when we pull the trigger on M&A or, any other big initiatives that are you know, more sporadic in nature, but very comfortable with leverage. At the end of Q3, it really speaks to the fact the company is on a very fun financial footing as we exit this this process that we've been through.

當然。我會讓你評論一下更廣泛的，你知道，我們如何看待併購工作，但就槓桿而言，我們本季末的槓桿率為 1.75。請記住，根據我們的貸款協議，我們的上限為 2.75。因此，從槓桿的角度來看，我們非常舒服，我們非常輕鬆地以兩人的方式經營業務。再次，當我們考慮戰略機會和資本配置時，這只是我們在啟動併購或任何其他大型舉措時權衡的因素之一，您知道，本質上是零星的，但對槓桿非常滿意。在第三季末，這確實說明了這樣一個事實：當我們退出我們所經歷的這個過程時，公司的財務狀況非常好。

Yeah, Mark, I can kind of comment on our M&A strategy. We're in the process of, you know, updating our priorities there. However, as in the past, our portable storage and modular business will be the focus area for us if we do any M&A we view that as a continuing viable option for us to either you know, grow in areas that we are not present in or grow in areas that we have perhaps a newer footprint and could use an acquisition to help build out that area. But we will follow the same guidelines that we have followed in the past. We get look for good quality businesses at fair prices. And that's exactly, you know, what our strategy would be moving forward.

是的，馬克，我可以對我們的併購策略發表評論。你知道，我們正在更新我們的優先事項。然而，與過去一樣，如果我們進行任何併購，我們的便攜式儲存和模組化業務將成為我們的重點領域，我們認為這是我們持續可行的選擇，可以在我們沒有涉足的領域實現成長，或者在我們可能擁有較新足跡的領域中成長，並可以利用收購來幫助建立該領域。但我們將遵循過去遵循的相同指導方針。我們以公平的價格尋找優質的企業。你知道，這正是我們未來的策略。

Excellent. Thank you. And then I was wondering if you could talk a little bit about, you know, having gone through this process and, and I appreciate your commentary around the, you know, the strength and the culture and everything that your employees, we were able to sort of shoulder through this process. I wanted to talk a little bit about maybe sort of what you're looking at as far as internal hiring needs or any areas that you might want to be sort of re looking at or if there are any places that maybe you may not have been active in during the course of the year that you'd like to sort of pick up as far as internal investment wise, whether it's, you know, technology spend or anything like that. Is there any sort of areas that we should be thinking about going forward?

出色的。謝謝。然後我想知道您是否可以談談經歷過這個過程，並且我很欣賞您對您的員工的力量、文化以及我們能夠做到的一切的評論。我想談談您可能正在考慮的內部招聘需求或您可能想要重新考慮的任何領域，或者是否有任何您可能沒有去過的地方在這一年裡，你希望在內部投資方面有所增長，無論是技術支出還是類似的投資。我們是否應該考慮繼續推進哪些領域？

Sure. You know, there are some positions that we had put on delay essentially because of the merger agreement. And we're, going to start hiring those and that, really varies across the business, some sales positions, some operational positions, that we, staff for. But nothing, you know, we haven't had a significant decrease at all in the turnover or in the number of folks that we had lost during the process. And so, we're, it's not like we're operating from a, you know, a deficit there. And so, I think in terms of other investments that we make, we perhaps delayed some investments in real estate, we put some its initiatives on a slower path. And we'll get those projects going again but nothing, significant to report at this time.

當然。你知道，我們推遲了一些職位，主要是因為合併協議。我們將開始招募這些人員，這些人員在整個業務中確實有所不同，一些銷售職位，一些營運職位，我們的員工。但你知道，我們的營業額或在過程中流失的人員數量並沒有顯著減少。所以，我們並不是在赤字的情況下運作的。因此，我認為就我們所做的其他投資而言，我們可能推遲了一些房地產投資，我們將一些舉措放慢了步伐。我們將再次啟動這些項目，但目前沒有任何進展，這一點值得報告。

Okay, excellent. And mark just to help you with one of the comments that, I made in the prepared remarks regarding SG&A being higher in the fourth quarter than the third quarter of this year. If you just think of things like hiring, it's a lot more difficult to make hiring in are actually achieve hiring in a period where there's a pending acquisition. So, if you think of where we were in January, we had a few positions we would have liked to hire over the course of the year to support business growth. And in addition, like in any normal year, we have some turnover. If you look at the net effect of that we're running with a position in the organization that we're not very actively filling and it's not easier to fill them because we're clearly an independent company and we're charting our future here. So, there's been a little bit of pent-up demand to do that and that will be reflected on the expense side with some increase in that area, all normal for running the business.

好的，非常好。並標記只是為了幫助您發表評論之一，我在準備好的評論中發表了有關第四季度銷售管理費用高於今年第三季度的評論。如果你只考慮招募之類的事情，那麼在有待收購的時期，要真正實現招募就困難得多。因此，如果你想想我們一月份的情況，你會發現我們希望在這一年中招募一些職位來支持業務成長。此外，就像任何正常年份一樣，我們也有一些營業額。如果你看看我們在組織中運作的職位的淨影響，我們並沒有非常積極地填補這些職位，而且填補這些職位並不容易，因為我們顯然是一家獨立的公司，我們在這裡規劃我們的未來。因此，存在一些被壓抑的需求，這將反映在費用方面，該領域增加，這對於經營業務來說都是正常的。

Excellent. Thank you very much.

出色的。非常感謝。

Thanks, Mark.

謝謝，馬克。

Ladies and gentlemen, that appears to be the last question. Now, let me turn the call back over to Mr. Hanna for any closing remarks.

女士們先生們，這似乎是最後一個問題。現在，讓我將電話轉回給漢納先生，請他發表結束語。

I'd like to thank everyone for joining us on the call today and for your continuing interest in our company. We look forward to speaking with you again in late February to review our fourth quarter results.

我要感謝大家今天參加我們的電話會議以及對我們公司的持續關注。我們期待在二月下旬再次與您交談，回顧我們第四季度的業績。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。