Redishred Capital Corp.

Thank you for standing by. This is the conference operator. Welcome to the Registrate Capital Third Quarter 2021 Financial Results and Business Update conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. she didn't need assistance during the conference calls, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Jeffrey Ascham, Chief Executive Officer. Please go ahead, sir.

Thank you very much, Claudia. Good morning, everyone. Welcome to our third quarter call related to our just released financial results. I think I'll start by maybe stating the obvious that we were fortunate to have a very good quarter and so far the year has been a good year. I think I would be very remiss if I didn't start by thanking the management team and the employees of ReadyShred, our board, our franchisees and our shareholders for all the support and all the things that they've done over the last 24 months because these past 24 months have been like no other. And, you know, it is nice to come here and report on a third quarter that I think all of the hard work and all the effort and all the support has sort of come and brought us to this point. So I did want to make that statement right out of the gate because this doesn't happen by accident. It happens because a lot of people do a lot of good work every day. So on the consolidated results, I think the 53% growth in consolidated EBITDA obviously is the headline. As usual, Kasia is going to get into the corporate location details in a moment, but we can see that really two components. Number one, acquisitions have fueled that, but not just acquisitions, same location EBITDA was an impressive 27% growth as well. And that's what we wanted to do, and we wanted to continue to grow this business. We survived the pandemic reasonably well, and now we're back into growth mode in all areas of our business. Shredding, scanning, and e-waste, all areas of our business are in growth mode. I view this sort of as a clean quarter because when Kasia sort of talks about the performance of the business, not only were our service revenues and if you exclude recycling from the big scheme of things, the business performed, operationally performed well. It was up. Even if paper was static or lower, it would have been up. So when you take out recycling, it would have been up, and then recycling happened to also be driven up because of increased tonnage as well as increased price. So having a 53% increase on consolidated EBITDA just shy of 3 million Canadian was a great result. EBITDA margin 29%, again, continue to hang at that high 20s. We were not forecasting anywhere near the high 20s for this year. We were sort of looking at mid 20s. So to be at the high 20s, again, The nice thing is I think we're seeing some operating leverage a little bit ahead of schedule. Yes, we cut cost during the pandemic and we were very careful to bring people on and we brought on a number of people in the third quarter and even a little bit into the fourth quarter. But of course, the acquisitions have helped add incremental EBITDA and cash flow, which is very good. And again, The ability to be better at routing and better at our logistics and better at selling into routing and marketing into routing, that has been very helpful to our EBITDA margins. So we're very pleased with that number. Again, it's sort of coming a little bit ahead of what we thought it would be and what we forecasted it to be. So again, this EBITDA growth, Massachusetts, Richmond, Atlanta, we've done those deals in a nine-month period. All of them are performing to expectation, if not a little bit better. We have new bookings and even our franchisees are having a great year and their unit economics are very good and they're seeing the same factors. They leverage the same marketing and sales platforms and so we're pleased about that. Clients continue to come back to work. As we know, the downtowns are still tough. Many of those of you in downtown Toronto, we still know that it's still a bit of a tough environment, but there are more people coming back to work, and some of our larger clients are coming back to work. And maybe they're not taking the full frequency, but they are certainly taking increased frequency than they were 6, 12, or 18 months ago. We generated record revenue, almost 10 million Canadians, just shy again, That's a 47% growth over last year. Now, remember, foreign exchange hasn't gone in our favor. So if you take out the foreign exchange in U.S.

dollars, that was 15%. This is the operator. Please hold the line while we reconnect the speaker.

you please go ahead sir oh sorry um don't know where where i dropped off but um my apologies for that um maybe we might need to invest in a new phone system or something but uh my or new new internet system here um maybe we overloaded it but uh let me pass this over to kasha uh and i'll allow her to talk about the uh corporate locations and i think you've heard enough from me anyhow great thanks jeff i think we just uh missed the last

been on the foreign exchange, so I don't think you dropped off for long, which is great. So good morning, everybody. Great to hear from everyone today. During the third quarter, as Jeff just mentioned, we did see the U.S. dollar continue to be weaker than last year. So the average rate was down from 1.35 in the prior year to 1.25 this quarter. So we have included in our MD&A the constant currency growth rates. in U.S. dollars to eliminate that foreign exchange fluctuation. So I'll speak to the results using that constant currency. So overall, we saw very strong performance from our corporate locations, once again, this quarter. And that's not only when comparing to the prior year, but also when comparing to pre-COVID performance and from an overall efficiency and margin standpoint as well. I also wanted to remind everyone that our results don't include any government assistance. So the corporate store results are strictly from an operational standpoint. So our same location or organic shredding sales, they grew by 24% this quarter over Q3 2020. They recovered well from the pandemic and our sales teams continued to add new clients on a monthly basis. We did see a substantial increase in paper prices of 44% this quarter. and that was coupled with increased tonnage, and so our same-location recycling sales grew 64% year-over-year. Our costs continued to be well-managed, both on the direct cost and fixed cost side, so while they did increase year-over-year by 16%, they increased at a lower rate than our sales growth, and this led to a 35% organic EBITDA growth. And our paper prices did play a factor in this growth as well. However, even when we exclude recycling revenue from EBITDA, we still saw growth of U.S. $200,000 in EBITDA before recycling revenue year over year, with margins improving 100 basis points. And our results from acquisitions are non-same locations in the quarter. They included Massachusetts results, including the ProScan business, as well as a full quarter of Richmond's results. And then we had two months of Atlanta's results. And the EBITDA from acquisitions was $818,000 in the quarter with a strong EBITDA margin of 47%. So when you combine all the locations, the same and acquired, we saw revenue growth of 60% and EBITDA growth of 86% year over year, just under $3 million less for the quarter. And when we remove recycling revenue, we still saw our EBITDA margin improve by 400 basis points. In terms of our sales performance in our electronic waste and scanning businesses, we saw another strong quarter in the ProScan Massachusetts location, where we had our highest quarterly scanning sales to date at 469,000 US, which was great. On the e-waste sales, We did see a decline by 20% during the quarter with clients holding on to their electronics. We've seen that the supply for new bulk electronics have been low and prices have gone up. But we have, however, seen improvement in the e-waste sales quarter over quarter this year, as well as on the EBITDA side. So with Q3 being our strongest quarter so far this year, so we are trending in the right direction there. And so overall, we are very pleased with the performance of our corporate locations this quarter and the record sales and EBITDA levels we've been able to achieve as we continue to acquire more businesses and then as well grow organically. And then on the year-to-date basis, given the strong second and third quarter results, that's really helped us improve the year-to-date results as the business was still coming back from COVID restrictions in Q1. And then we saw that Q1 2020 was mostly a pre-COVID quarter. So on a year-to-date basis, our organic shredding sales and total sales both grew 18%, and then our organic EBITDA growth was 36%. And then when you look at our organic EBITDA excluding the recycling revenue, that was also strong with $1 million in growth year-over-year, and we saw improved margin of 400 basis points. And then on a total location basis, our sales growth year-to-date has been 49%, and then EBITDA growth has been 80%, which equated to a $3.3 million increase in EBITDA year-over-year. And lastly, our year-to-date EBITDA margin also remains strong at 39%, and even at 30% when you exclude the recycling revenue. And both of those measures saw a 700 basis point improvement, which is great. And lastly, I'll just speak briefly in terms of capital management, and then I'll pass it back over to Jeff. So during the quarter, we did generate $2.4 million in cash from operations, and that was up from $1.8 million last quarter, which was very positive to see. And we continued to pay off a significant amount of debt, a total of $1.2 million as well. We also advanced $850,000 from our bank facility for the acquisition of the Atlanta business, and we used $1.4 million for that purchase. And so with that, we ended the quarter with $1 million in the bank, and we have still $1 million available on our line of credit and $1.4 million on our facility. And lastly, we also filed a short-form base shelf prospectus in November, and so that will allow us to issue shares for up to $2 million over the next two-year period as well. And I'll pass it back over to Jeff.

Thanks, Kasia. And just I think you broke up a little bit there. So that shelf prospectus is a $25 million shelf for 25 months, so allows us to be ready when we need to be ready. And so we're gonna flip over to acquisitions, because that might get us there. The acquisitions, as Kasia had mentioned, performed very well. The numerics coming out of it is great. I think this is probably an important moment just to remind everybody of the market opportunity and ReadyShred's execution vis-a-vis that opportunity. So A, we have what I would call a homegrown opportunity with our ProShred franchisees. We have 16 franchisee locations. many of them, again, coming to renewal over the next little while, many of them getting to a certain age as well where it's logical for them to exit. Their current run rate in Canadian dollars is about $30 million in revenue. So in an estimated EBITDA of about $10 million Canadian. So there is significant opportunity there. And remember, our franchisees tend to be larger than the independents. So those of you that have sat with me For my investor presentations and Roadshow presentations and or with Kasia, you know that there's still that homegrown, what we call hubs. On the other end of the spectrum, we have independents. There's 750 independents in the US and we estimate that that market share is about $750 million. With the majority of those independents either in markets that we're in or adjacent markets. we have that opportunity as well. And so what have we done? I mean, obviously in the last few years, even with COVID, we've executed on 55 million in acquisitions. We've brought, we've continued to grow our same corporate location revenue. Our current run rate, revenue run rate's about 35 mil if you look at just the 2021 results so far and the third quarter results in particular. And, you know, we've got a 10 year EBITDA CAGR of over 80%. We have a platform, we have a team that's executing on this business plan and we will continue to execute on this business plan. One of the things that we've been talking about here internally is how do you do it? How do you deploy more technology? How do you continue to drive good performance out of the things that we buy? We buy and we build. And that is the plan. So our pipeline, and I'm sure we'll get questions on that, we have a good pipeline of independents and some franchisees that we're looking to continue to work with. And that pipeline continues to develop the right way. And we're looking forward to hopefully executing on that. And that's why we have to be ready with the things that we need to be ready with. Good management team. investment in people that are doing technology, investment in trucks to allow us to service our customers. And we've done all of those things and we're executing on that business plan. And so I'm really happy that we've been able to execute on the business plan so well, knock on wood, and even through COVID and even through some rough waters. So I just wanted to make that note that we are continuing to be very aggressive and continuing to go after acquisitions because that is part and parcel of our three-pronged strategy of buy it, build it, also support our franchisees along the way so that they have something of value to sell when it's time to exit. So with all of that being said, again, thank you to everybody for listening to us review these numerics and review our strategy, and I'd love to open this up to questions.

Thank you. We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your hands before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. Our first question is from David Ocampo with Cormark Securities. Please go ahead.

Thank you. Good morning, everyone. Good morning, David.

Good morning.

Just sticking with the theme of M&A here, you guys do have a bit of cash in the balance sheet, some room on your lines, and you guys do generate pretty good free cash flow. So how should we be framing up that growth ambition that you guys have? Is it more the case where you can do those two to three acquisitions a year and fund that internally?

then the outside capital that you guys are talking about the 25 million that'll be more used for for larger chunky type acquisitions yeah i think that's the right way to look at it so um you know the smaller acquisitions we can generally do on our own through the cash flows that we're generating for the most part um obviously you know where that might not be the case is if you have a number of them at the same time all right so you get And that's sort of the way things sometimes work is you get a whole bunch of them at once. So if you get a number of them together, then we'll need to go to market. But typically what we have been doing historically is you sort of do one every couple months. The cash flows provide for that. Where you need to raise the dollars from an equity perspective is when you have larger deals. So whether it's a franchisee or a larger independent company, That's obviously where we need to come to market for the financing of those.

As a follow-up, and we've talked about this in the past, but with paper pricing moving up, and that typically keeps those low-margin competitors afloat, Are you starting to see, you know, these tuck-in opportunities delay their plans to sell or is it perhaps, you know, with inflation and difficulty sourcing drivers and trucks, these smaller independents are ready to just throw in the towel despite paper pricing moving up?

Yeah, I mean, I think the good news is paper pricing hasn't moved up to what I would say the early 2019 or late 2018 numbers where it was just insane. I mean, those are extremely high numbers. So, you know, people could survive quite nicely on the paper. We knew back then, as we know now, it goes up and down and you got to be able to survive on the business, not on the paper. And to your point, you know, with COVID, with fuel, with drivers and trying to find them, you know, it's been difficult. Well, mostly independents we look at, I mean, they can't afford to provide medical benefits and 401k contributions, and we can, right? And so drivers get to drive in nice trucks with us, right? Some of these independents are 10-year-old trucks, right? So the ability for us to retain our people is better. That doesn't mean we don't feel those pressures, but we certainly don't feel them anywhere near as acutely as an independent that's operating one or two or three trucks. And again, but typically the one or two truck operators, the owners own the truck. So it makes it even worse and even more painful. And they're not getting two or three, two or $225 a ton for paper. So, you know, they're still not seeing anywhere what they used to make pre-pandemic. And I think that's still driving, you know, the independent market to really consider selling at this time. And that's a good thing for us.

No, that's great color. And then just sticking with the inflationary pressures that you guys are personally seeing, whether it's labor or equipment costs, how easily is that for you guys to pass it off to your customers or, or is there a lag, you know, especially with your scheduled routes that might be on a more contracted basis?

Yeah. So we, you know, we are putting through price increases more frequently and, and, and, Again, sometimes you can just do it little amounts, you know, when no one's, you know, right now is a good time. It's Thanksgiving, Christmas, holidays, right? But, you know, look, you can't put out a 10% increase. That'll get noticed. But you can put through some increases. Look, anyone that's under contract, you're under contract. So you're going to get a lag. Anyone that we signed up this year, we typically won't give an increase to because they're new and you don't want to, know hey we sign you up and now you've got an increase but those longer standing customers you know we're looking through them and uh and putting through increases so we we did one earlier in the year we're doing one later that now because we're at the end of the year um and that that's going to help offset some of these pressures uh paper going up in a way you know so again you know the nice thing about paper going up is fuel and paper tend to mirror each other uh so uh That's the good news, right? And even when paper fell last time, fuel also fell. So other than COVID periods where things were wonky, you know, the two do correlate. So one does offset the other.

Okay, that's it for me. I'll hop back in, Keith. Thanks a lot, guys. Thanks, David.

Our next question is from Amra Edzak with Echelon Partners. Please go ahead.

Jeff, Kasia, good morning, and congrats on a very strong quarter again. Good morning, Amr. Thank you. The first one is maybe a tough one, but, you know, like I asked it last quarter, can you help us segment your 13% same perfect location shredding growth into proper organic growth versus accounts coming back post-COVID? Any way to sort of quantify that for us?

Yeah. You know what? I think it's a good question. I would argue the majority of the growth is new client acquisition. We're sort of at this point now, Amr, and this is more anecdotal and we can get you some quantification, but Most of our clients that were sort of on hold last quarter are still on hold this quarter. Some have come back, no doubt about it. Some will never come back, right? There's some that will just close down. The good news is we haven't seen a lot of that. We haven't seen a lot of they're permanently closed down. So that sort of eight, 10% that are sort of on hold, and it's probably closer to 8% now than 10%, they're sort of waiting and seeing. It's interesting because it's our clients in the downtown cores, it's our professional services clients that are larger, and of course, technology-type clients. The good news for us, again, is the vast majority of our clients are small, medium-sized enterprise. The vast majority of them are back to work. Anecdotally, I can provide you that color, and we do see stats every day and every month on who's on COVID hold. We probably can get some incremental color on that. more precise color, if you will. We'll make note of that.

Fantastic. That's a good color nonetheless. Back on paper prices, Jeff, not a historical peak, but getting closer. Probably, again, a hard one, but do you have any insights to share with us on dynamics there and expectations? I noticed that you guys gave your usual forecast for Q4.

Yeah, and it's gone up, and it's gone up reasonably well. Again, as you said, it's nowhere near the peak, but we're certainly above the 10-year average. That 10-year average is $135, and I think we're now getting closer to $160, I think, in the fourth quarter, or $155 to $160, which, Kasia, correct me if I'm wrong, but I think that's where we were, or where we are. Am I correct in that, Kasia? I thought so. And so look, the away market, and again, you know, it's interesting, right? This away market that we talk about where people are traveling, going to hotels, you know, going to hockey games and, you know, as the vaccine rolls out in the United States and even here, right? And as people go back to more normal lives, they consume more the end result of our paper, right? So our paper that we pick up goes into the toilet and tissue and all that paper. That away market is driving it at the moment. I can't say if China's come back online or not. It doesn't look like it. They are taking some shipments of paper, but nowhere near what they were 10 years ago, not even close. Markets like India are taking paper, South America. the domestic market is definitely taking it, but there is demand for the end use of it. And that's, what's driving it. Um, I think the good news is for me, actually, frankly, is, you know, I'm glad we're not at two or $225 a ton because again, um, our, our independent market, you know, they look at, they look at the world very differently than we do. Right. You know, they, they price, you know, based on the paper price and, um, you know, that they win, they can win short term, but again, Again, that $135 per ton, 10-year average, if you sort of look at the deviation around that, there's not a lot of deviation around that over the last 10 years. Yes, we've had some spikes either way, but again, there's not a lot of deviation. So I think people need to think about that. And look, independents don't. That's fine. And it hurts them in the long run, frankly.

Great. Then maybe a second piece of that question on your tonnage and that system tonnage. Not bad volumes the past couple of quarters. Are we close to a peak there or can you push through more tonnage?

Well, look, as we add more service clients and, you know, we'll get more tonnage. That's, you know, that's sort of the way it works, right? And that's why the schedule business, that recurring business is so important because you you're sort of guaranteed a certain amount of tonnage, right? Because each client will produce a certain amount of tonnage in a container every single month or every single year. And then what also drives increased tonnages is the purge, right? And as we get more one-time event-based shredding, we get more tonnage that way too. So I think as long as we can continue to grow

organically uh and can and really grow that recurring business will get more tonnage and again recurring business leads to more event-based business because once you're in there you can get the the event-based business much easier as well great then maybe one last one appreciate your comments on m a you had a couple of nice smaller ones you spoke to looking at chunkier ones um how do we think about valuation and multiple levels when thinking about these larger ones um is that you know like

much higher multiple that we should expect you guys to pay any thoughts there yeah look I think we're going to be in our tradition our franchisees you know they they run really good operations strong recurring revenue you know those those you know what I would call drivers of value what is your quality of revenue what is the quality of your routing what are the quality of your trucks or the quality of your people that drives the value and that's how we look at it and you know the Our best franchisees get six, six and a half multiple of EBITDA. But we have franchisees that we've paid five or five and a half. So that range of let's call it five to six and a half for our franchisees is still a relevant range. Large independents, again, checking similar boxes, they're going to get similar multiples, right? They typically don't check as many boxes as our franchisees do, but there are many independents that are very good I look at SafeShred that we bought in 2018. They ran very much like a franchisee. They didn't check every single box, but they got a six multiple of EBITDA because it was a good acquisition for us and it proved to be so. So I think we look at that. Smaller ones, look, nothing's changing there, right? Sort of three, four multiple of EBITDA. Sort of look at those a little bit different. Sometimes you build up the asset value onto its own Look, the value in those tuck-ins are what do we do with it in the next six, 12, or 18 months. That's the value. And we've typically shown that we can pay four for something and the next year it'll be a three. And the year after that, it might get to a two and a half. So those little independents, as much as they don't move the needle, they are lucrative, right? And so nothing's really changed here, but it's a good question because it allows me to sort of give everyone the information on sort of how we're looking at this.

Fantastic. Congrats again. That's all for me.

Thank you, Amar.

Our next question is from Nick Corcoran with Acumen Capital. Please go ahead.

Good morning, and congrats on the record quarter.

Thanks, Nick. Good morning.

Thank you.

Just think about your overall network. What proportion of clients are operating at reduced service levels? And can we expect this to be a tailwind either through the end of the year or to next year as these clients resume what we call full service?

Yeah, I think, you know, in that 8-ish percent that I spoke of earlier, you know, again, anecdotally, a number of them, you know, our larger professional services clients are still typically at reduced frequencies. Um, and, um, you know, it's interesting because, you know, we, we have been getting some word from some of our larger clients that, yeah, we're going to, we're going to bring everyone back, uh, to the office or the majority of people back. And, you know, we want to resume service or, or get close to, to fuller service levels. Um, my take is, um, as we, you know, look, uh, it's, it's taken longer than I think we thought simultaneously. We were able to add new customers at the same time, which was great. So we've been able to replace the loss with new clientele. I think what we're going to find is over the first quarter of 2022, those larger clients, the Googles of the world and the large law firms of the world and investment banking firms of the world, they will be coming back. Look, I don't think we should be naive enough to say every one of them will. Some of them may permanently not come back, or some of them may permanently shut down, but they're still operating, and you know what? I look at our own office here, and we allow for a flexible model, but more and more people want to come back. So that's kind of a nice thing, right? That people actually want to go back to the office, and that's a good thing. I don't have the exact number for you there, but I think we're going to continue to see a migration and we're going to continue to see some folks get back to the office and that's a good thing.

Great. Then switching gears, did you acquire any trucks in the quarter and what are the plans for acquiring new trucks through the end of the year?

In the third quarter, Akash, I don't think we added any trucks.

Yeah, we did add a couple of trucks. There's been a total of seven trucks year to date or up to September 30th. And there's a plan for a couple more for the remainder of the year.

And you say a couple more. Can you quantify that?

Yeah, I mean, we were looking at sort of two to three or so.

Great. That's all for me. Thank you. Thanks, Nick. Be well.

Thanks. Once again, if you have a question, please press star then one on your telephone. Our next question is from Devin Schilling with PI Financial. Please go ahead.

Hi, good morning, Jeff. Congrats on the very strong Q3 here.

Good morning, Devin. Thank you for joining us so early in the morning.

No, thank you. Just looking at your scanning revenue, another really, really strong contribution from this segment. I'm just wondering if you could provide a bit more color on what's really driving the growth here and kind of the strategy on that to grow this segment.

Yeah, look, I think part of it is, again, people getting back to the office is people are coming back to the projects that they left behind that were related to the office. So I think some of that demand is from that, which is good. So that's one component of it. Number two, since buying ProScan, you know, our marketing team and our sales team, so our marketing team has been cracking the code on the marketing. We've been marketing in every corporate location. We actually set up a small scanning operation in Virginia just because we were able to get a nice size contract. So we've got that. We've been enabling our sales team. So, you know, putting some some good knowledge about scanning and how to open some doors. They don't need to close the door, but they certainly need to open the door. And we've been enabling them. We're going to continue to invest in sales-related resources in the scanning area just because we are seeing some good demand. We're seeing some good opportunity in that area as people come back to the office. But again, the nice thing about this is And we've got 14 corporate locations that we can market scanning into. And so that's a, you know, a really good thing. I think, you know, the other part of it is, you know, we have a lot of government contracts. So there's some pent up demand there. The other part of it is, is that, you know, as people downsize, right, people still need to, they don't want to store paper. So I think one of the fundamental things and the differences between, you know, record storage and digital storage is, why on earth would you store your paper physically? You've got to pay for it. When you want to retrieve a document, you have to pay for it. If you want to move it, you have to pay for it. But when you can store this digitally, you're not taking up space in your own facility, nor are you taking up space with one of our competitors, frankly, an Iron Mountain or a Recall or an Access. You're not paying for that. You're paying for the digitization, and you're paying potentially for the hosting space the digital storage of that, but that's way cheaper than physically storing it. And you have 100% access to that information 24-7, 365 days, 366 in a leap year. So that is a very compelling situation. And so all of those things are coming together and allowing us to see the positive results. As you can tell, I'm pretty excited about the scanning business. I think it's a good business. We've got a team here really dedicated to learning this. They're already cracking the code in terms of the marketing and in terms of the sales. And I think we're just at the beginning here, Devin. So I'm glad you asked that question. I think it's a great, I think it's a good business. And we have an opportunity to really leverage so many things by having that business.

Yeah, for sure. Just as a follow-up, you mentioned that your 14 corporate locations. Can you just remind me how many are offering scanning services at this time?

So they're all marketing scanning services and three of them are actually physically scanning, imaging. Two of them have on-prem server capabilities and one is actually leveraging the capabilities and particularly the capabilities of other locations. That's the beauty of this. You can scan in a location you can actually index in another location if you choose to. And it just depends on the workflow. But so there's some opportunities to leverage what we already have. And so you can create like small centers that leverage the bigger centers.

Okay, yeah, no, that's great. That's everything for me again. Congrats on the great quarter. Thanks, Devin. Appreciate it.

This concludes the question and answer session. I would like to turn the conference back over to Jeffrey Ashen for any closing remarks.

Thank you very much. First of all, everyone, thank you for joining us this morning. As noted, we're very pleased with the quarter. The team did an amazing job. I really can't say enough about what they've done to provide for this quarter. I want to thank Kasia for everything she and her team does to report. As we know, the reporting is very good, and we appreciate that. very much obviously any one of you have any questions please contact me or one of our partners that can line up a phone call we can certainly happy to do one-on-ones with you as well as we walk you through the quarter and we're now now that this part's done we go put our head back down and we go work on the business and hopefully we can we can have another successful quarter to finish 2021. So thanks, everyone. Appreciate your support. Be well.

This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.