NCR Atleos Corp (NATL) 2024 Q3 法說會逐字稿

Our backlog continues to grow.

That backlog is very strong and some or design changes have improved.

Our onboarding speed as we think about 2025 and beyond for ATM as a Service to things that become clear.

First, our reported metrics defined ATM as a Service as a singular product that represents the full opportunity for wallet share increase at Atlas for many of our customers see the opportunity to continuum of services that they can migrate piecemeal and over time, and our tight definition is causing an accurate comparison with competitors who brand any incremental or managed services at the ATM as ATM as a Service going forward.

Important, the important descriptor strategic success will not be units, but rather a team as a service revenue and more broadly total Company services revenue.

Second, the strategy does not need to be capital intensive.

Increasingly, we are signing asset light wins were ATMs are either already in place or outright purchase by the customer, allowing us to significantly improve our returns.

Moving to slide 7, the Network segment.

The network business continued to deliver solid and consistent performance in the third quarter with revenue and EBITDA up sequentially in line with our expectations.

We are executing utility banking strategy that is focused on driving incremental transaction volume from our fixed that approximately 80,000 company owned and operated ATMs.

And we set another new high in revenue per machine, driven by the continued migration of financial transactions from bank branches to our utility banking network.

We generated strong transaction volumes in both international markets in North America, fueled by adding new high quality banking and retail partnerships, new transaction types and new functionality to the network.

We grew the Allpoint transactions by 14% year over year as more consumers choose to do a regular banking at our convenient and safe ATM locations without paying a surcharge.

Deposit volumes grew 200% year over year as the uptake continues to ramp of key financial institution partners in the U.S., including Capital one, PNC and Navy Federal Credit Union.

We activated TAP technology on approximately 10,000 Allpoint machines that have already generated over 1 million transactions in the third quarter.

Our other emerging transaction types like ready code that enables cardless cash access for did workers and business deposits through our partnership with quit money also extended very strong growth trends.

International markets, we laid the groundwork for future growth and expansion into Greece and the pre-work for the expansion into Italy.

Turning to slide 8, the reiterates our 2024 key objectives.

These objectives described the path to both operational and strategic success in 2024.

I've already discussed many of the highlights for the first three quarters of the year, so I'd like to focus on our objectives for the 2020 for home stretch and setting ourselves up for success in 2025.

Starting with differentiate and grow.

Last quarter, I discussed how the strategy these are two reported segments are converging in response to our bank customers, adapting the retail business models to meet evolving consumer and market demands.

Conversations with customers have reinforced our view on this trend.

We are evolving our go-to-market strategy toward providing solutions that leverage the entirety of our unique, fully vertically integrated capabilities rather than selling defined product and service.

That's our focus will be on finding the right services that meet customer needs today and establish out Leo's as a trusted partner eventually for the full outsourcing of ATM, diligent prioritization and allocation of resources, including people, expense, capital time and in some instances, even components optimize the returns and catalyze this future period growth.

In preparation for our 2025 savings goals.

Our service organization will shift from initiatives centered around transaction dissynergies it toward extending our continuous improvement efforts and RAI. tool rollout.

Lastly, the process of separating from NCR works is nearly complete.

Most of our mutual TSAs had been completed.

A few new commercial agreements have been added to formalize remaining IT related separation activities and the outsourcing of all hardware manufacturing by voice will truncate our responsibility in that regard.

And that agreement at year end, it is very likely that the wind down of the other category and our segmentation will be nearly complete at year end, and we'll have no significant impact on reported results going forward.

Concluding my comments, I want to express my gratitude to the 20,000 NCR. Avios team members for achieving another impressive quarter, fueled by enthusiastic commitment to our new companies, missions and values, diligent effort and a consistently positive disposition even when under pressure.

I'm extremely proud of what the global NCR at Leo's team has accomplished over the past year and more opportunity weights this group in 2025.

With that, Paul, over to you.

Thank you, Tim, and thank you all for joining us today.

So we'll start on Slide 10 for an overview of the consolidated third quarter results.

Total company revenue was 1.08 billion, up 4% year-over-year on a quarter.

Solid top-line performance this year.

Growth was led by the accounting software and services revenue, demonstrating our ability to consistently generate income in total recurring revenue streams from installed base of approximately 600,000.

Atms coming revenue was $790 million in the quarter and comprised 73% of total revenues.

Reflecting this stability and consistency of our businesses.

We delivered first quarter adjusted EBITDA of $207 million and margin of 19.2%.

Adjusted EBITDA and margin have expanded sequentially each quarter this year due to the growth in higher-margin transaction and services, coupled with the progression of our continuous improvement productivity initiatives, which resulted in a 380 basis points of margin expansion from Q1 to Q3.

These benefits more than offset expected separation weighted dissynergies, higher labor costs and ongoing macro headwinds.

Moving to Slide 11.

First quarter diluted earnings per share was $0.89, which is well above our expectations, driven by better than expected profits and lower than projected tax rate in the quarter.

The strong underlying EPS change through the first quarter and continued momentum of our business exiting Q3 has allowed us to revisit the full year EPS expectations, which we'll discuss later in the presentation.

Moving to the chart on the right, another example of extending consistency we have achieved this year, delivering a full quarter of positive.

Adjusted free cash flow was $38 million in the first quarter.

We delivered strong Q3 free cash flow, even with discretionary 50 million working capital use for cash from inventory and accounts payable, which will continue to hire hardware revenue in the fourth quarter.

Moving to Slide 12.

Self-service banking is our largest business and is comprised of a stable global installed base of approximately 520,000 of our 600,000 ATM units.

These 120,000 units primarily generate recurring revenue from services and software.

We are transforming this business by leveraging our network infrastructure capabilities to deliver a broader range of services to our customers and a more comprehensive outsource services model.

Self-service banking had a strong third quarter, exceeding our guidance ranges.

Starting in the upper left, revenue grew 3% year-over-year to $677 million.

The primary growth drivers were 23% for ATM as a Service and strong software revenues, partially offset by hardware revenue deferral associated with the shift to ATM as a Service.

Recurring revenue was up 8% year-over-year to $414 million.

The chart on the top right illustrates the growth trend of our first three quarters of adjusted EBITDA, which reached $167 million, driven by strong growth in high-margin software revenue on productivity initiatives.

Additionally, adjusted EBITDA margin increased 120 basis points sequentially to 25 5% in Q3 and up 340 basis points since Q1, as we continue to focus on higher margin services and drive continuous improvements to cost and expense initiatives.

The adjusted EBITDA margin trends continue to grow faster than revenue.

Moving to the bottom of this slide, KPI.s continue a positive trajectory in the third quarter.

The mix of recurring revenue was 61% for the quarter, up approximately 200 basis points year over year.

The third quarter was the 11th consecutive quarter with year-over-year growth in recurring revenue.

Annual recurring revenue was up 7% year over year.

Another proof point on our strategy of driving more recurring revenue from our existing installed base is progressing.

Moving to Slide 13.

Our ATM as a Service solution is 100% of cutting services, representing only revenue from units fully outsourced to Antonio's.

These results have, including in services within our self-service banking segment.

Given the strategic importance of it came as a service businesses as a key long-term growth opportunity.

We want to highlight strategic achievements in the quarter on Slide 13.

On the top left of this slide, ATM and service revenue grew 23% year-over-year to 49 million for the first quarter, which represents strong continued adoption of an ATM.

As a service life customer count increased 46% and we expanded into 10 new markets here over here.

We are now offering ATMs, SMEs and 34 markets on the right.

Gross profit increased 19% year-over-year to $16.1 million and up 12% sequentially, which is consistent with the ramp and ATM as a Service revenue.

Moving to the bottom of this slide, ATM as a Service KPI.s also continue to move in the right direction in Q3.

On the bottom left, annual recurring revenue continued a consistent upward trend in the third quarter, growing 23% year-over-year to almost $200 million on the bottom right, the last 12 months average revenue per unit or RPU continued to build during the third quarter and reached 8,500 per unit, up from 8,000 the previous year.

The increase in RPU is largely the result of adding customers in higher yield regions to the base of units support.

Important to keep in mind that there were a lot of variability in RPU between geography, product type, the central services included and the institution side.

Our focus is to expand the services that we perform for our customers to maximize revenue growth and margin expansion rather than talk in a single measure of number of units fully outsourced to us.

That said, this is a KPI that we have reference and expect to exit this year with approximately 28,000 units live and have assigned to backlog of approximately 8,000 units that would roll out in 2025.

Demand for ATM is the service is broad-based across all regions and particularly healthy in North America, which we expect to become an increasing mix of our ATM as a Service unit installed base.

Our dialogue with customers cause us to increasingly believe that majority of financial institutions will continue to outsource more of an ATM fleet operations, and we'll move to a full outsource model at some point.

Moving to the Network segment on slide 14, our network utility banking strategy focused on offering financial institutions and retail partners, access to the industry-leading scale of our owned and operated ATM network.

We are progressively increasing the types of transactions, a number of uses of our approximately 80,000 unit base of ATMs driving a higher revenue per unit.

The netbook segment had another strong quarter.

Starting on the top-left.

Revenue increased 2% sequentially to $332 million.

We continue to drive new incremental transactions to an ATM fleet, which has driven withdrawal volumes up 9% year-over-year.

Withdrawal volumes increased 6% from North America and 11% for international transactions.

Also of note, we continue to execute on our nationwide deposit strategy by adding a third U.S. top 10 bank to our deposit network.

Deposit transactions continue to accelerate, growing approximately 218% year-over-year and 50% over Q2, albeit from a small base.

We are seeing increasing use cases for our medical product with volumes increasing for X sequentially, again from a small base on the right adjusted EBITDA of $103 million was also in the high end of our guidance range and increased 2% sequentially.

Adjusted EBITDA margin remained strong at 31%, reflecting the success of our strategy to drive higher margin transactions from our existing managed units.

The key metrics at the bottom of this slide highlight the validity and execution of our strategy on the left shows the last 12 months, you know here in the third quarter.

On the right, you can see our ATM portfolio finished the quarter at approximately 80,000 units.

The slight decrease in unit count is due to pharmacy partners calling low-performing stores, which are also our low volume units.

This has a negligible impact on our revenue as customers use the visit our other nearby locations has discussed earlier.

Transaction volumes continue to reach all-time highs.

Despite the small reduction in the unit base, we expect a number of units to increase in 2025 through the addition of new clients and geographies.

On Slide 15, we provided trending product centric view of results to help investors assess and model the Company.

The key takeaway from this is the progress of maximizing monetization of each ATM unit in a 600,000 units fleet by attaching more transactions, services and software success in executing.

This will be evidenced by growth trends and services and software and in transactional product lines.

As a reminder, the other segment represents legacy voice, I guess, to geographies and commercial agreements between us and Vioxx.

We expect business is off to continue to decline in this non-core segment.

On slide 16, we present a breakdown of free cash flow and a snapshot of our financial position at the end of the second quarter.

The key takeaway on this slide.

As is that, we generated 38 million of free cash flow for the third quarter and year to date of approximately $123 million to support higher hardware revenue expected in the fourth quarter with the use of cash on inventory and accounts payable for inventory in transit at the end of Q3.

This will be a forced the source of cash in the fourth quarter.

On the bottom of the slide year to date, our net debt is down by 76 million and net leverage ratio dropped from approximately 3.7 to 3.5 times.

We have ample liquidity of 689 million at the end of the third quarter.

The Company's consistent and strong fundamentals and cash flow generation concomitant with support more than our current debt.

On slide 17, we highlight the debt refunding financing transaction that we executed in October 2024 that will translate to meaningful interest savings and incremental free cash flow in 2025.

Based on our strong and consistent financial performance over the past year, lenders and credit investors agonized our improved credit profile and a very cooperative in refinancing our credit facilities at lower rates.

This also allows us to raise an additional 300 million of testimony to pay down a more expensive term loan B.

In addition, we improved our liquidity position by adding 100 million to a revolving credit facility capacity, which we have not used and abused dry powder are the kind of level of indebtedness.

These changes reduced the weighted average spread to software and by approximately one percentage point for an estimated annual savings of approximately EUR17 million.

Turning to slide 18, our total company financial outlook.

For the full year 2024, we now expect fully diluted non-GAAP earnings per share to be approximately $3.12, up from the previous guided range, midpoint of $3.5 for revenue, adjusted EBITDA and adjusted free cash flow, we affirm our guidance at the midpoint of the previous guidance ranges.

Concluding my comments on Slide 19.

We've delivered our fifth consecutive quarter at or above guidance, demonstrated a proven track record and set the stage for a successful full year.

We made great progress in our operational cost saving initiatives, and we emphasize our strategic objectives with growth in transactional software and services revenue.

We raised our full year non-GAAP EPS guidance and reaffirmed revenue and adjusted EBITDA.

With that, I'll turn it back to the operator for questions.

Thank you.

And you would like to ask a question, please signal by pressing star one on your telephone keypad.

If you are using a speakerphone, please make sure your mute function is turned off to allow the signal to reach our equipment.

Again, press star one to ask a question for pause for just a moment to allow everyone an opportunity to signal for questions.

First question is from Matt Summerville with D.A. Davidson.

Sites on a couple of questions.

Given some of the tailwinds that you have, what I thinking about free cash flow, lower cash interest expense and ATM as a Service business that is increasingly asset light relative to maybe expectations you had said a year ago.

How should we be thinking about the Company's free cash profile, ability to free cash flow conversion, if you will, in 2025, realizing you probably don't want to give full guidance, but maybe just a soft look, if you will, at the free cash flow profile next year, it will have a whole lot.

Yes.

Thank you for your analysis is exactly right.

It is a little early for 2025 brand that we're grinding out here.

The closed 2024.

We started our planning process for 25.

I think the way to think about 2025 of the walk all the way down to free cash flow would be another year, not so different from this slide, right?

We generated about 3% to 4% growth probably in our core business this year.

I'd expect that very same thing next year here.

We grew profitability more quickly than that.

I think you should expect more than double that in terms of a growth rate and EBITDA next year, something like 8% growth in EBITDA and then a much higher conversion rate of EBITDA to free cash flow for the reasons you just described.

But I think if you buy a 35% conversion back after you close to right, which suggests a much higher free cash flow number in 2025, that then a respectable number in 2024, but a much higher at over 20,000 button.

Then along those lines tell, how does the Board thinking about share repurchases if you're on a firm passive from just doing very quick back-of-the-envelope math in my head to exit the year, it probably 2.87 or so times net levered at below $30 stock price where you can we start to expect from at least to become more active from a capital deployment standpoint.

Thank you.

Just to clarify, I think we are targeting to get to below three times providing the midpoint of next year.

We will probably exit this year, probably around 3.3 times to 2.7 times.

Well, I'll pass to Tim for the question.

I'm sorry, Paul, I was referring to hedge that I apologize.

I was referring to aggregate a next year at around 2.7 story question.

Okay.

Necessarily all bets are off to David for his commentary.

So I am also a positive claims this year.

Our debt.

Here's what I say of the Board is very pleased with our ability to generate cash flow this year, and they're excited about up to generate even more of it.

Next, the last conversation we had about the deployment of free cash flow.

They made very clear to me and I concur with that.

That does a reduction of dedicated under three times, however, is the absolute right thing to do when we get to that point, I think or let's say, on our way issue that point on our way to being three times or less levered every dollar we just we de-lever with.

I think it's good for both our equity and our debt holders at that point in time and be very fair to have the conversation about returning cash to shareholders that would be the midpoint of next year.

And Doug, if you ask me currently the best way to return cash to shareholders, it's a no-brainer.

We're undervalued.

We buy our shares back.

Understood.

I'll get back in queue.

Thank you, guys.

Sure.

Next question is from Shlomo Rosenbaum with Stifel.

Hi, good morning.

Thank you for taking my questions.

Can you talk a little bit about the strong performance in the 12 Cerberus banking in the quarter?

Like we are we in the rate refresh cycle?

Were there any pull forward of hardware sales and job?

You had a lot of positive commentary.

It seems with firm to the cycle, but some of the commentary you had no sounded like you think you might be a little bit earlier in the cycle that you could just talk about that a little bit.

So any refresh cycle is going to take place would be a follow on from the 2019 effect, right.

But saw some of us have significant changes in our hardware volumes.

They bring to the tune of 30 or 35% above what you would have anticipated at the average trend rate.

We don't anticipate anything like that.

We are lapping those machines as machine and sort out aging out at five to seven years, as you will see them get replaced over the next several years, albeit singular event, it will take place over a period of time.

We are seeing larger orders from some of our bigger bank customers suggest that there are hitting that reprice.

Like I don't think I think I said in my script earlier that we're probably in the early innings of that.

We saw a little bit of lift above expectations at 2024.

I anticipate a much higher, much better hardware revenue, and we are going to make up a tremendous or portion of our total revenue base.

But I do expect a hardware to actually convert contributor to growth next year, which will not be the case typically.

But I do think at 25 and 26 likely that hardware is a contributor to growth.

Our growth this year is almost entirely driven by our outsized growth that that which is above our expectations, was driven entirely by service revenue and importantly by outperformance at the at the network business.

Okay.

And then on, could you talk a little bit about kind of the mix of what's happening in ATM as a Service?

I know you're saying that it's become more of a continuum as opposed to just oh one metric is dead, um, if you look at the LTM RPU acquired declined 60, actually no one knows that due to a higher mix of asset-light deals, is they're getting into geographies that are lower revenue, geography deal.

Maybe you could just give us a little bit of a clue as to what's going on beneath the covers over there because if you look at it initially, it would you think you know, he was also going down, but I know that there is it gives us story behind that.

And asset-light as could be play is positive.

Yes, ability at let me take that.

But if you don't mind, the DRP will have an imperfect measure in there because of the base is so small.

So eight were contained and at the number of ending units and competent GRP.

So if we put it all on the last day of the quarter, that Coach, they get it better, be functionally indoor revenue for it.

So it takes time to so far.

So good, a full quarter of the denominator, but colleagues, the actual revenue piece in the numerator, we're expecting to our prudent to increase steadily on a normalized basis.

Hi, Justin.

We had quite a big batch at the end of the quarter that we covenant at timing impact on the RP just because the base.

So Europe year over year, our rolling 12 is a better way to look at.

Yes, metric get an idea.

We feel great about where the RFPs headed.

If you think about the spread of B&R, please, between by machine and yet at full function machine in the United States, it's dramatic different.

It's three or four or fivefold or the annual revenue.

And so the upward pressure on that backlog is terrific.

And importantly, as Paul described, we've got a really strong backlog, I think probably 8,000 machines rather back totality of that.

That is the backlog has an RPU that is well above the 8,000.

So that it should be really helpful.

Yes.

So with this in context, there are two in our backlog today is roughly $14,000 or about.

So we expect that to increase.

Okay, great.

And then just one last one, if I could just sneak it in because there is any change in competitive dynamics in A-Pac.

Just one of your yield Diebold noted there reentering for us from a data countries over there in including India.

Is that some of what might be causing some of the pricing pressure sure, over there?

And is that something that you're noticing now as to the pricing pressure?

We've seen that so much a hardware pricing pressure as a service pricing pressure in India, a total lifecycle cost of an ATM is much more heavily weighted to the service component of that to the hardware component.

And so it's really that servicing that is putting price pressure.

We've not seen any change in pricing behavior by the major players in our space has been the same.

Same competitors for very long time are relatively robust.

And between the three primary players, is that an 80% share globally, I think for a long time.

And so I don't anticipate any changes there.

Great.

Thank you.

The next question is from George Tong with Goldman Sachs.

Hi, thanks.

Good morning.

You previously had more longer term target for ATMs and service units.

And now that you're deemphasizing units more focused on ATM as a Service revenue growth, do you have any internal targets to share around ATM in the service revenue, either absolute dollars or mix for growth trajectory, but we will we will give guidance for 2025.

We'll give guidance, but a lot of revenue first and then described units and some of your model that way, it will help you continue to model that way.

But we've not given any guidance on either of those metrics for 2025 years.

The only insight we gave is that the that our RPU is increasing.

You know that the $200 million business currently growing 30% year to date and it up we already have 8,000 high value units in backlog for next year.

Okay, got it.

And then can you talk a little bit more about what types of customers are preferring to own their own hardware in ATM as a Service late transaction and why they would not want to outsource their hardware as well?

I think it's pretty apparent to our larger bank customers who own large fleets of machines that Doug, their cost of capital is far far lower than ours.

And for us to build a cost of capital into our pricing to that doesn't make any sense for either of us as more economic in aggregate for folks who already own device to continue to own devices.

Importantly, the machines already in place, and that doesn't even better outcome for us.

And we thought that most of our ATM as a Service revenue would be generated by folks who at the time they're replacing the machines.

We've had success of adding a service to already installed machines that can be a very good deal for us as well.

So it is more likely in some countries or in smaller bank situation, I think less than two to date DMs.

But it's more likely they prefer for us to put new machines in place starting to buy a much smaller investment in those for us.

And those transactions tend to be those deals tend to be the most lucrative up a bunch.

And so we're happy to do it.

Got it.

Very helpful.

Thank you.

Your next question is from Prem and yet with Wolfe Research.

Hi, guys.

Good morning, solid quarter.

And how should we be thinking about incremental EBITDA margins going forward?

You've had some nice margin expansion year to date and the roadshow at Investor Day, you had some good margin targets out there for 2027 or the past two quarters indicative of the future or should be thinking about a little bit differently?

Thank you.

If you remember that we came into this year.

If you go back to legacy NCR, this business is performing at a margin rate closer to 20%.

And we started this year the fifteens because we added a bunch of costs associate with the separation.

So we are ready to functional organizations and to service organizations trying to separate across the year, you've seen that margin rate improved.

I think if you do the modeling for the fourth quarter, you're going to have a margin rates to about 20% as we exit the year.

So it took us a year, which is what we thought to get back to where we entered the here.

I feel great about the progress against those dis-synergy costs and where we're at from here, we have to generate further productivity and line and his team have got a continuous improvement culture that's leaning hard on a I tools, other banks to keep driving margin higher.

We our margin rate is not high enough.

It needs to go higher.

It needs to be closer to a real service organization margin rate, and we're working through those costs.

I'd say this year, we save quite a bit of money on indirect costs and the some money on direct costs.

I think next year we are heavily leaning other direct cost takeout with some incremental improvements and indirect as we go around the world to simplify our business model and make sure we're only doing business in places where we can make a fair return.

So club, I think margin rate, I think as I've said that if you think about three or 4% growth in revenue next year to date by 10% growth in EBITDA, that probably implies a nice yet, again, a nice expansion in margin rate in 2025.

And there's no reason to believe that, that trend should continue.

Okay, great.

And then one more in terms of recurring revenue mix, I know there's a goal to litigate the 80% plus over time.

Has anything changed in the year that would that would make you think that you can get there quicker or it's going to take a little bit longer to get that kind of longer term target?

So I think we're still on track.

Everything we most of our growth because his comment in the current revenue space where we are on track to add to deliver that it has to go.

Okay, great.

Thanks.

There is a follow-up question from Matt Summerville with D.A. Davidson.

Function to push additional ones.

You'll see the our improved similarly as new service backlog at roughly 13,000 units versus I think you just reported 85 hundred a unit.

That's a big difference.

Yes.

Help me bridge from through sort of point A. to point B, if you will.

And then where that's 13 or I guess where the inbound our who will look like from here into that funnel.

And then I have a follow-up.

Yes, I'll let Glenn answer for you.

So the at the R2 and base, there's a big portion of our installed base is India, and it was one of the first geographies to go ATMs or service.

So the RPU there has a larger mix of those type of deals also has a good mix of asset-light deals and UK payments on time, data, et cetera.

They are the RPU into backlog.

We've got a lot of net new deals, a lot of North American deals.

And I thought I saw price differential buys.

There's also a differential in the product types.

So the I love our backlog as cash expense as a lot of our back half.

So a lot of our installed bases, interest expense as a lot of our backlog is multifunction units, recycling and incentives and even IDNs.

And it varies by service type of effect, depends for services included.

We've got to have a stack of services on the multifunction years relative to the cash dispensers.

Got it.

And the advisor, Madame?

Yes, you did.

Thank you, Paul.

Is that look at the network business?

How should we be thinking about your go forward cost of cash and based on the rate curve and what we've seen from the Fed over the last few months?

Thank you.

Yes, now that's a little more complex.

And you think because it's not just a forward rate curve because of the steep potential exposure in that space.

We do derivative swaps that even out the interest rate over time.

So you wouldn't be of interest rate was at a point in our debt indirectly exposed to the network space.

Obviously, these items we will try and add forward swap contracts to avoid any buffer.

So year on year fee, we anticipate that the fault cash cost in the cost of goods will be a slight headwind for 2025.

And then as we get into 26, 27 will become a tailwind.

The opposite effect on update on our debt cost will be the opposite.

We've refinanced, which will give us a good flow through.

There are so focused on or directly flow through to the variable portion of our debt, which is about 1.7 billion.

Understood.

Thanks, Bob.

Thanks, Bob.

There are no further questions at this time.

I will turn the conference back to CEO, Tim Oliver, for any additional or closing remarks.

Thanks.

We appreciate all those questions are the most we've had thus far that, but we are glad to have been able to answer them from.

We won't talk to you again until the new year.

So firstly, happy holidays.

Everybody stay safe out there.

And I have a great time where I'm going to work hard here to close out a successful 2024.

We feel good about the momentum we're going to carry into 2025, and we'll be back in 90 days or so to talk to you about that completion of a good 1st year and importantly, where we're going from here.

So thank you very much, and we'll talk soon.

This concludes today's call.

Thank you for your participation.

You may now disconnect.

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