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spk00: Good day, and thank you for standing by. Welcome to the Rush Enterprises first quarter 2022 earnings results call. At this time, our participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 1 on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Rusty Rush, Chairman, CEO, and President. Please go ahead.
spk01: Yes, ma'am. Thank you. Good morning. Welcome to our first quarter 2022 earnings release conference call. On the call today are Mike McRoberts, Chief Operating Officer, Steve Keller, Chief Financial Officer, Jay Hazelwood, Vice President and Controller, and Michael Goldstone, Vice President, General Counsel, and Corporate Secretary. Now, Steve will say a few words regarding forward-looking statements.
spk02: Certain statements we will make today are considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Because these statements include risk and uncertainties, our actual results may differ materially from those expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in our annual report on Form 10-K for the year ended December 31, 2021, and in our other filings with the Securities and Exchange Commission.
spk01: As indicated in our news release, we achieved first quarter revenues of $1.6 billion and net income of $93 million or $1.60 per diluted share. We are proud to declare a cash dividend of $0.19 per common share. We are very proud of our results in the first quarter, which were largely driven by the continued strong economy and healthy consumer spending for most of the quarter. While new truck production capacity remained limited due to component parts supply chain issues, our Class 8 new truck sales significantly outperformed the market. Our aftermarket revenues also greatly contributed to our financial results and were primarily driven by increased demand for parts and service support and our continued focus on our aftermarket strategic initiatives. Further, the acquisition of 19 dealership locations from the Summit Truck Group in the fourth quarter of 2021 and the gain on sale in connection with the establishment of our joint venture with Cummins positively impacted our financial performance in the first quarter. In the aftermarket, our annual parts, service, and body shop revenues were $543 million, or up 30.7%, and our absorption ratio was 136.3. In the first quarter, there was a healthy widespread demand for parts and service, especially from refuse, large national fleets, and some energy customers. We continue to add service technicians to our workforce and remain focused on our strategic aftermarket initiatives. We expect the supply constraints will continue through the year, but we believe parts and service demand will remain strong. With the continued expansion of our workforce with technicians as well as aftermarket professionals dedicated to large national fleets, as we integrate our newly acquired locations into our network, we believe our aftermarket results will meaningfully outperform the market this year. Turning to truck sales, we sold 3,528 new Class A trucks, accounting for 6.9% of the total U.S. Class A market. While the industry is still plagued by limited new truck production, we experienced healthy demand from most market segments we support, particularly over-the-road, construction, and vocational customers, and we are pleased with our Class A truck sales results this quarter. ACT Research forecasts U.S. Class A retail sales to be 244,500 in 2022, up 7.5% from 2021. While we expect production capacities and truck allocation will limit our ability to meet the full demand of the market, our backlog remains strong, and we believe our Class 8 truck sales will outpace industry growth in 2022. Our Class 4-7 new truck sales reached 2,141 units in the first quarter, accounting for 3.7% of the U.S. market. Though production capacity remains limited with some manufacturers increasing heavy-duty production over medium-duty, we experience appearance healthy demand from a variety of market segments, especially vocational and municipalities. ACT Research forecasts U.S. Class IV-VII retail sales to be 263,000 units in 2022, up 5.4% from 2021. Looking a way ahead, we expect production constraints on Class IV-VII trucks to continue and we believe our results will align to the industry in 2022. Our used truck sales reached 2,395 units in the first quarter, up 24.5% year-over-year. Used truck demand ranged strong, though values began to retract slightly from the historically high levels we experienced in 2021. Based on production capacity of new truck manufacturers, those values may continue to slightly decline through the year. We believe softening spot rates will be offset by new truck production constraints, resulting in healthy used truck demand for the remainder of 2022. Next week, we expect to close on a deal to increase our investment in Rush Truck Centers Canada Limited to 80%. This additional investment will allow us to more fully integrate these 14 locations into our dealership network and further strengthen the support we offer cross-border transportation customers. Looking ahead, we are closely monitoring inflation, consumer spending and interest rates, along with other economic factors which may impact our industry. With growth of opportunities in our new locations and with our continued focus on expense management, we believe our financial results will remain strong this year. It is important for me to thank our employees for their outstanding work and for their commitment to our company and our long-term strategic goals. With that, I'll take your questions. Hello, operator.
spk00: Thank you. As a reminder, to ask a question, press star 1 on your telephone. To withdraw your question, press the pound key. Our first question comes from Justin Long with Stevens. Your line is open.
spk06: Thanks. Good morning, and congrats on a great quarter.
spk01: Thank you, Justin. We appreciate that.
spk06: I guess to start with parts and service, so the growth there was pretty strong. Is there a way to help us think through how much of the growth in parts and service was organic? And, you know, as you look out over the rest of the year, how you're thinking about that organic growth rate trending?
spk01: Right. It's a good question, right? Obviously, we had the acquisition of Summit in there, right? So that, you know, 30% growth rate was not all same store basis. But again, It looks like same store growth was around 18% year over year, so quite strong, right? Summit accounted for about 12% of that. So, you know, as we look forward for the rest of the year, I would hope, you know, I told you all going in that I was looking for high single digits. Well, we did a little better in Q1. I would expect we had a little better start. Well, I don't. know that we'll ramp, you know, we're going to maintain and probably increase as we go through the year. I'm not sure if it'll manage to historicals because we've got such a great start, but parts and service still looks extremely strong here as we sit in the middle at the end of April, and we anticipate that to continue. So somewhere around that same number, I would tell you, you know, maybe that low double digit like we had from same store growth is where I believe that... You know, our comps are going to continue to get a little harder. So, you know, because the comps go up right from last year. So even if we're in the high singles, it's still going to be growing because your comps go up as we go through the year. So, you know, we feel good about where we're at. Got a little faster start than we anticipated. But we do feel good about the market we're in. So, you know, we'll just have to let it play out. But there's nothing out there that we see that's going to change that in the foreseeable future anyway.
spk06: Okay, that's helpful. You mentioned it in the prepared comments, but spot rates have started to moderate here recently. You've got some macro uncertainties out there. I think some are more concerned about the potential for a freight recession looking into 2023. So as you think about just stress testing the model in that scenario, specifically with the parts and service business, how would you expect that segment to perform in a freight recession?
spk01: I would expect us to perform well. Now, does that mean we'll have the same growth rates of 18%, same score? You know, hoping we're still going to stay in the double digits later this year, even with harder comps. I can't say if we got into that recessionary type environment, that freight recessionary type environment, that we can maintain those healthy growth rates. But I would expect us to be able to maintain mid-singles, You know, or something like that. Because typically when you get in that environment, you know, sales do slow down and the age of the fleet does go up. So at the same time, there are more opportunities out there, you know, for parts and service if the truck market does go down. Obviously, if it doesn't keep up with replacement, your fleet ages. So that's, you know, that's one of the great things about our business model. is it gives us some balance with both of those, right? Inside both a fast-rising sales environment from the truck's perspective, and also when you do get some type of recessionary, a freight recessionary environment. But you have that balancing act. So where your growth rates aren't quite as strong, they're still solid. You don't have the fall-off in parts and service that you have in sales. If you look at our business model, that's the unique thing about the business model That's why the shift over time to when you see 136% absorption, that's over the top. In my mind, if you had asked me three or four years ago if we could get there, I would have said no. So the more we strengthen that absorption ratio, which is all driven by parts and service, the more we insulate the overall impact of a freight recession.
spk06: Okay. Very helpful. Last one from me is on OE production. Rusty, any thoughts on how that could trend sequentially over the rest of the year?
spk01: Well, if you look at ACT, the Class 8 side, we were about 51,000 or so U.S. retail. They're running up to the 240s, of which I think they've got fourth quarter up to 72,000. So obviously that's going to grow up. I think it was Q2, they're saying 56, 57. So obviously, you know, they believe that it will continue to go up as, you know, park shortages hopefully lessen. We don't think they go away, and I don't think the manufacturers do either. At the same time, you've got to remember one of the reasons that they only have it up like 7% or 8%, I think is what I said, year over year, is we started 7% in the hole already this year. I mean, I was telling everybody before, that was going to be the case because what's delivered in Q1 typically is a lot of what's built in Q4. You know, there's a tail on the dog. So we started off 7% behind 2021 already. Now that will, in Q2, they will probably overtake that. You know, they're going to be somewhat flat, and then the pickup will come later in the year. So sequentially, you know, they're banking on short-part shortages to subside somewhat, not totally go away, and get up to around 72,000 in Q4 deliveries. So, you know, I'm inclined, hopefully, to agree with them. I will say, a year ago when this started, I would have told you it would have ended last summer, but it hasn't, okay? It's not as rough as it was. You know, the toughest time from a supply-side issue was, Really, right at the end of summer, early fall last year, right, it was just that September, August-September time frame was just rough. But most manufacturers are up from their production at that time last year. So I would expect that to continue, that trend line to continue, just as ACT does through the rest of the year.
spk06: Okay. Thanks, Rusty. I appreciate the time.
spk01: Thank you.
spk00: Thank you. Our next question comes from Jamie Cook with Credit Suisse. Your line is open.
spk05: Hi. Good morning. Nice quarter. Rusty, I guess a couple questions. One, could you just elaborate on the strength that you saw in your Class 8 shares and the market share strength, where that was coming from, and sort of how sustainable do you think that is? And then the follow-up on that, obviously, the margins, too, on the truck side were very strong, understanding that was probably a lot used, but just the sustainability of that. And then I have a follow-up question on the industry after that.
spk01: Sure, Jamie. Yes, when it comes to the numbers, we were the 6.9 number I gave you of the Class 8 market. I don't know if that market rises. I don't know if we maintain 6.9, but we maintain over 6%. Same store was about 6-2, okay? The other was the Summit acquisition, which I think they really should do it better. They should actually be up a little as the year goes forward. But we would expect, you know, I think the – is that our manufacturer there picks up their production pace faster than some others, I think. I would tell you that – The absolute number is for sure sustainable, and I think there's some topside to that. Remember, we're on allocation. We know what we're getting. So I would tell you that we do believe we had a push at late year end, which flowed into first quarter, why we had such a strong first quarter compared to the market. But I do believe there's no question that I believe we're going to at least maintain the same absolute number, but I really think we've got some upside to it given we're on allocation. We can see pretty far out just what we've got coming. Sometimes it's just a matter of timing and mix and bodies and things like that because some of them take 90 days to 120 days to get to when you get into vocational stuff sometimes to get your product delivered to the end user. The over-the-road stuff comes quicker, but you know, We feel good about being in solid sixes this year when the year finishes and, you know, hopefully do a little bit better. So we feel good about that. And you asked me about, what was the last question?
spk05: The margins.
spk01: The margins, yeah. On used margins especially. Used margins were, you know, new margins were sequentially about flat. Used were slightly down. Volume was good. So absolute dollars were strong. You know... As new truck production picks up, you've got to believe that's going to put pressure on used volumes and margins. At the same time, it is gradual. I think there's like an offset going to happen. I do believe, like I said, we're at least going to do what we have been doing as a whole, not quarter to quarter, but as a whole when you look at the back half of the year for Class 8 deliveries. I think we'll do as good or probably better than what we did in Q1. Used margins came down from Q4, as I said. And I don't look for them to drop dramatically right now, but they should start trending down as new truck retail deliveries go into the marketplace. That will offset some of the used that we have seen over the last 12 months, the used demand. So I don't see it clipping right at the moment, but I do see a gradual decline in used margins going forward. Not, you know, typically, you know, we're still probably 50% above used percentages that we typically do. But I don't see that all falling away to begin with. I think it will still remain strong in Q2, pretty much for sure. I'm pretty confident in that. And we'll just have to let the year play out as new truck deliveries, you know, increase and see how it affects. Because a lot is going to have to do, you know, we watch the spot market a lot with used. And obviously it's down a little more than typically. The spot market's typically down a little bit in the first quarter, but it's down a little bit more than it typically is. So that's a, you know, there's a direct correlation a lot of times between that and the used market. So as I said, I mean, I don't run from anything. We will continue to monitor that, you know, because our terms are really good from our inventory perspective. So we'll just keep watching it. And, you know, I'm real proud of the used truck team. They've done a great job. You know, there's parts of the organization that sometimes don't get the accolades that they sometimes deserve. But the use side and the leasing side have just been outstanding over the last 12 months. So, anyway, I'll take your next one.
spk05: Yeah, and just a follow-up. You know, you said you're on allocation, obviously, and I know there's some macro indicators out there that are concerning. But, like, what are customers telling you about wanting to place orders for 2023 and and or when do you think the OEs start to, you know, open up the order books for 2023, you know, in particular given we've underserved the market? I'm wondering if at some point you get better visibility than you would have usually had. Thanks.
spk01: You bet. I don't think – I think really most OEMs have not, as you know, opened up their 2023 order bank, okay? And I think that's pretty across the board from what I'm told. You know, I have access to a couple of them, not all of them, but – most of them have not opened it up. I expect it to open up here as we get into summer. I mean, you've got to be right. We're going to be halfway through the year, and you should have a better vision as to your cost. Some are slightly opening, but I think they're going to be cost conservative right now after the pains that we've been through. of the manufacturers have been through over the last year, right? You know what manufacturer margins have not been what people were looking for in a robust environment because of all the issues with, you go back to the chip stuff, to this, that, and the other. So, you know, they're being cautious, and it might be some people taking a few orders, but most of it, I expect, by the time we get to June, July, probably be full open with everybody by that time. They should have enough insight just to where they're going to be, hopefully. from a cost perspective in 2023. Because I know customers have spent, I don't care, all OEMs, all OEMs have dealt with surcharges this year. So, you know, trying to, you know, get their margins back in line. And so, you know, they don't want to really go through that again. Surcharges are not fun for a customer or a manufacturer or me in the middle as a dealer. So it's better off to do what we historically do, price a product and deliver it at that price but the environment has not really allowed that. So sometimes that creates some angst on all sides. Let's just say that.
spk05: Okay. Thank you. Great job.
spk01: You bet. Thanks, Amy.
spk00: Thank you. Again, as a reminder, if you would like to ask a question, press star 1. We have a question from Andrew Obin with Bank of America. Your line is open.
spk01: Good morning, Rusty. Well, good morning, Mr. Obin. So nice to hear from you this morning.
spk03: So I have a question. So, you know, historically, to figure out how much money you make in any given year, you know, your quarters are fairly flat. You know, Q1 tends to be the weakest, and then it's relatively flat from there. So, you know, to start out, you know, you made $1.40 plus. So that, if we multiply that by 4, we get a number north of $5 easily.
spk01: You know, no, no, no, no, no. I'll finish.
spk03: I'll finish. So, you know, so Jamie, I think, highlighted the fact that, you know, probably new truck margins, new and used truck margins, gross margins, probably unsustainable long-term because of the mix. So let's say those sort of step down, you know, mid to high single digits and where they were historically. And you yourself said that even in a freight recession, probably between volume and continuing inflation, I don't see you lowering your labor rates. Probably you can still experience growth in your parts and service business next year. And then on top of it, I would imagine that SG&A this year has been tough, because labor shortages and efficiencies, you know, you could probably streamline SG&A volumes, stay relatively flat. So as I put it all together, you know, what is the run rate? What's a good run rate for earnings, for normalized earnings for Rush? Because the number I come up with is sort of, well north of $4. And I'm just asking, is that the right way of thinking about long-term earnings power of new and improved rush?
spk01: Andrew, I love the way you danced all around to get to that. You know I'm not going to give you direct earnings guidance. I will give you macro guidance and You're a fine follower of the... I'm not asking.
spk03: I want to make sure I'm not asking for guidance. I'm just sort of saying that if volumes this year... you know, probably a little bit above average, right? Your service business will continue to grow. You can make your SG&A more efficient. You know, let's say this year is above average. But all I'm asking is that it seems that normalized earnings structurally should not be, you know, half of what we're, you know, they should be maybe the lower we are, but not that far off.
spk01: No, troughs, if we get into a trough, Andrew, there's no question. The company's in way better shape than they historically have been to take a trough, okay? I don't know what that number would be if we get into an overall recession in 12 to 18 months, as some people say. No question, no question we'll weather it better, you know? Your math was pretty good for this year. I'm proud of you. You're doing the $1.40 times four. You know, I'm not running from any of that. As I said, we expect the year to remain strong, so you can read into that how you want. You know, the good thing is we do have, but people never value properly. We do have multi-baskets of different revenues, right? You had an acquisition from last year that I think we're just starting to integrate into the company. and it's going to be accretive, and you're being able to weather some of those types of ups and downs that you're going to deal with. We always know nothing ever goes straight up forever, especially in this business. But, yes, the earnings power of the company is in better shape to weather along any types of troughs that come at it. I mean, the numbers speak for themselves. Even if used, it goes back to some, which it's going to. You know, well, maybe it gets offset with more new, right? And parts and service, you know, you've had inflationary stuff in there, which is good for it, obviously. Not good overall for the whole country, I don't think, but obviously good for any of the people reporting from that perspective if you maintain margins and percentages. So I think we feel good, and even inflationary environments never last forever. They only take, what, three years max or so. When we come out of this, we're in that piece. If we do have a trough downstream, if they have fed some slow things down and up, I'm very confident that we will prove out that this model is way different than what it has been in past cycles. I'm not going to get to hard numbers, but I am confident anybody can look at these numbers and understand that the company, I mean, when we finish this other 30% of Canada, we're going to have over 150 dealerships now. okay, scattered and provide a different platform than anybody else. No one's going to compete with us from a national network perspective. So, I mean, there's so many things that we're, and by the way, we're just scratching the surface on some of this stuff. You know, the Summit acquisition, the Canadian acquisition, we're spending money. I'm rolling them onto our systems. We still haven't even, I know I'm getting off of exact numbers with you, but these are things people need to know. I mean, Navistar still has to get their market share back. there are still tailwinds outside of everything and outside of the great results you're seeing in the organization that are there. And I know they're there, and we're going to do our best. And obviously on the Peterbilt side, too, I mean, we perform quite well, and we're excited about both sides of the house, that we've still got upside in both, especially on the Navistar side and going forward with new ownership and the capital that will be put into it and the products and stuff like that. they can take their market share up fairly dramatically over the next three to five years. So anyway, Andrew, all those are good things. The model right now says our troughs are a lot better than what they used to be, a whole lot better. So we'll just let it play out. And you were doing really good on the math this year.
spk03: No, I try. And then another question. Given that it does seem the model is more stable, do you think in terms of capital allocation in the next trough, a rush could be more aggressive in terms of share buyback given that the service model is a lot bigger, the balance sheet is in fantastic shape. How do you and board think about sort of what's the game plan looking forward if things do get weaker on capital allocation and perhaps be more aggressive on buyback?
spk01: Right. If you know, for the last five years or so, we have come out and said we are going to return to shareholders 35% to 40%. Obviously, it makes up two ways, right? Dividend and share repurchase. We authorized another $100 million back at 1st of December, and I can tell you we've already, last year, for example, on that other $100 million, we only spent $35 million by December 1. Well, we're only in April, and I've already spent $36 million over this year. So we have accelerated our repurchases somewhat. We will continue to do, as we get to... Typically, we really relook at our dividend situation in the second quarter, at the end of the second quarter, and we'll do that again. We don't look at it every quarter. We look at it at the end of the second quarter at our shareholder meeting. We'll do that again this year. Or more meeting in May, prior to the end of the second quarter, obviously. So, yes, I mean, and especially, Andrew, if, you know, we're going to be, you know, my goal is a little crazy probably, but by the end of the year, I want to be debt-free with cash in the bank other than floor plans. So that means I'll have a $700 million leasing fleet paid for plus everything else. We won't owe anything, so we're set in pretty good shape to weather any kind of interest rising rate environment. Floor plan is controllable. You turn it three to four times a year. So our cash flow should still be extremely good. We don't have a lot of major real estate projects going on other than maybe we find another acquisition, which I'd love. I don't have anything at the moment. We will look. especially if the market takes a hit. There's no question that we would pour more back to repurchase, I would think, you know. I think we're undervalued right now. Just look at the numbers. I think we're way undervalued. But, you know, I'm not the investment community. I just run a business. So, you know, trust me, it's all out there and it's all in front of me. I'm looking at it. And the board, I'm sure, will be looking at it. So will my whole team as we go forward. So, If I've got $100 million, $200 million in cash a year and no debt, you better believe I'll be looking if we take any. Especially, we'll continue down the path we have been, returning like we have. But if something was to happen in the market where it even got more undervalued, you better believe I'd be all over it.
spk03: And the last question, I know people have asked about freight, but a lot of your business is vocational trucks, waste, energy. Can you just give us a sense where these markets are? What are you seeing on the construction market? Because, look, it's always appreciated. You have a ton of experience. Your comments on inflation are fantastic, and I appreciate it. But what are you seeing outside of freight, as I said, in markets like commercial construction? infrastructure, oil and gas. You know, you're in Florida, Texas, California, the three biggest markets in the U.S., Midwest. Could you just tell us what you're seeing sort of in, quote, unquote, not real economy, but outside of the trucking market? Thank you.
spk01: Sure. It remains strong. You know, obviously, let's not talk oil and gas is oil and gas. It will never be what it once was. People are much more, oh, disciplined, let's say, No matter what's going on on the geopolitical area right now, people I know in Texas are going to be much more disciplined. Now, has our service business started to pick up somewhat? Yes, it has. But from a capital expenditure perspective, we haven't seen dramatic increases on the capital expenditure spend at all. You know, people are just working on their old stuff and using it. And so we've had a little pickup around that arena from a service perspective. I mean, it's not huge, but it's been a pickup. So that's nice, right? Overall construction remains, housing remains strong. I mean, in Texas and Florida, I mean, those are still big driven housing markets. You know, I don't look for Florida to go backwards anywhere for a long time because, you know, we have an aging out population moving that direction from the northeast continuing. No state income tax in Texas or Florida. I mean, all you do is drive down the highway here, people keep pouring in. So, I mean, that just bolsters the economy around here. So, The economy here in San Antonio, Austin, or Dallas, or Houston still remains extremely strong, much more diversified. Remember in the days when this was all oil-driven, right? Well, it's not anymore. The economy's much different. Navistar, for example, is just opening up a plant in San Antonio. We know what Tesla's doing in Austin and many, many other projects like that here in these areas. California remains strong. You know, having the basin out there, I mean, there's 30-plus million people out there. They've all got to eat. And so that whole area continues to remain strong, too. And California, Arizona remains strong. There's a lot of construction going on around there right now. You know, so we're, I mean, it's pretty broad-based. And even our Midwest, you know, we're doing well up there. And it seems to be, you know, their economies, they're a little bit different than, say, down here when you look at, When you look at Illinois and, you know, Ohio, but they right now, you know, stores are doing well, too. And, again, you know, those are the Navistar stores. Georgia's doing good. But those stores, like I said before, have the best tailwinds driven because I think you're going to see them be able to increase the market share over the next few years. I mean, I know that's the goal of Triton. I know Packard's going to maintain theirs and try to grow theirs too, so I feel good about the manufacturers I've got supporting me. Where else? I don't know a lot. I've only been in Kansas, Missouri, and Arkansas now for three or four months, so those are big freight countries. You asked me not to talk about that, but those are big freight countries over the road in big areas, so we feel good about that. They contributed nicely in the first quarter, and we expect that to continue and even increase as we bring our systems and our stuff forward. over time. It's not an add water and stir thing, but we do believe, you know, that we bring something to the table with that. The power of the network, and that pretty much covers, I can't cover all the states that we'd be here a while. I mean, Utah's been extremely strong this year. We've done real well up there. I think we've, and again, that's another Navistar area for us. That thing's got tailwinds in the future. So, you know, I mean, I'm sitting here painting this picture of roses every day, the sun never setting, but at the same time, these are true things I see, and we're All they are is just they set the organization up to better navigate the troughs that we know you get in business. I don't care who you are. So we just feel good about it. It's a very balanced income stream when you look at it from a market segment and an overall perspective, from my perspective.
spk03: I know that your team worked extremely hard to deliver these results, so the credit goes to them.
spk01: Thank you, Andrew. The team has done an outstanding job across the board, across all the brands and all the people and all the suppliers and all the partnerships that we represent. But it is the people that made the difference for us. There's no question about it.
spk00: Thank you, and I'm showing no further questions in the queue. I'd like to turn the call back to Rusty Rush for closing comments.
spk01: Okay, well, thank you very much, and we look forward to speaking with everyone in July with our second quarter earnings release call. Thank you. You guys have a good start to the summer coming up. See you.
spk00: This concludes today's conference call. Thank you for participating. You may now disconnect. Everyone have a great day.
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