Redishred Capital Corp.

Thank you for standing by. This is the conference operator. Welcome to the ReadyShred Capital Corp. 3rd Quarter 2022 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'll be an opportunity to ask questions. To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Jeffrey Hashim, Chief Executive Officer. Please go ahead.

Great. Thank you very much, Arielle. Good morning, everyone. Jeff Hashim here. Welcome to our third quarter of 2022 investor call. I wanted to thank everyone again for joining here. I know for many of you on the West Coast, it's very early, so appreciate you making that out for us. I'm also joined here by Harjeet Bharat, who's our CFO, and together we'll be reviewing our results and providing an update on ReadyShred Capital Corp. And of course, we will allow for a Q&A session once we've made our remarks. What I would like to also make sure everyone does know is that We have our Q3 financial statements, MD&A, and press release. Those were all filed last night, just after the markets closed. So obviously, I know a number of you have been digging through the numbers. And if you have not had a chance to take a look at those, please do so. So for us, Q3 2022, we continue to grow our sales and our EBITDA. Sales was another record for us. EBITDA was not another record. However, we continue to grow our EBITDA dollars year over year, double digits, and we'll go through the numerics shortly. This is driven by organic and acquisition growth. So both our organic service, recycling, Shredding all contributed to the growth as well as, of course, the acquisitions that we conducted late in 2021 and throughout 2022. We focused in on same corporate locations. EBITDA grew, sorry, revenue grew by 25% and EBITDA grew by 13%. Also, if we look at total corporate locations, including acquisitions, our total revenue grew 52% and EBITDA 33%. So the good news is we had good growth in our business. I think the key here for us is that our shredding business and our organic shredding service revenue continue to grow. If we look at just the shredding revenue, excluding the recycling business, it grew 15%. And then if we look at our e-waste business and our ProScan business, they continue to contribute positively to both the top line and the bottom line. Of course, we know paper prices continue to go up, and they were at record highs once again. We'll talk a little bit about paper a little later. Paper prices do right now continue to be strong. They've plateaued, but they do continue to be strong and they've continued to contribute to these results as well. So those are the strong highlights and we're pleased that the revenue grew. We'll talk a little bit about the EBITDA because there were some challenges that we had to overcome and really there's three areas that were impacting our results in the third quarter. First was the labor market. Second was the supply chain, and particularly for truck parts and truck supplies. And thirdly, the high fuel costs. And all of that, a lot of that is in the context of high inflation. Uh, and, um, and so, uh, these did impact our margins. Uh, we were, we were hoping to have stronger margins and we'll talk, we'll talk a little bit about the details here, uh, right now. So number one, um, We were just, I was just looking at a BMO economic report as well as the Anderson economic report and in the United States. And we're feeling this for sure. The labor market continues to be very tight. It was tight through the summer and into the fall. and that resulted in us making sure that we're marked to market on particularly driver wages. Those costs continue to go up. We are seeing some leveling. We're seeing some flattening. We're seeing a little bit even in some markets of softening, which is good for us because we want to hire great people. Again, we are mark-to-market in terms of hiring our very important customer service professionals, which are our drivers. So that softening is going to help us, I do believe, in 2023. However, that softening is really plateauing at a fairly high level. So we'll see, hopefully, where this goes. Again, in some markets, we're seeing a little bit of softening, which is good. We did push through price increases in the latter part of Q3, and we'll see the benefit of that in Q4 and, of course, into early 2023. Probably the largest – I mean, fuel, I think, goes without saying. Fuel is extremely high today. so far this year uh in the third quarter when uh some gas prices were coming down diesel prices didn't come down as much diesel prices actually have popped back up in some markets as well so diesel prices um were quite high and continue to be high uh and we are hoping to see some reductions in fuel prices going forward. Similar to the labor market, we do expect some softening there, and that should help us into 2023. Our business, our planning, right now we're planning to see fuel closer to the highs than the lows in 2023. So if they do drop, we're in a good position. Probably the biggest impact for us was related to truck parts in our truck fleet. So number one, when trucks go down, and they do invariably go down, and we need parts, a number of things are going against us. And we're not alone in this. Many people in logistics or truck-related businesses are feeling this. We feel it a little bit more potentially because of our application where, you know, you've got both the shredder box, the shredder and the truck, and they're all interconnected. So if a chassis goes downward, out. The shredder goes down, we're down. And so when the trucks were in for repair, they were in for longer. The repairs were more expensive as we waited for truck parts. And downtime is the killer in our business. And so when I look at the results and I look at the fact that we were able to continue to have extremely strong revenue growth organically, we did that. We serviced our customers organically. The customer acquisition is critical because we get an opportunity to service those customers in the future. So we did not want to miss customers. And so we took the opportunity to make sure we did anything and everything to fulfill our customer requirements, both on the recurring basis, schedule basis, and on a purge basis. So with those trucks being down, we had to secure rental trucks. We had to double team our trucks to make sure the clients were serviced in some cases. All of those things came to bear, which increased our costs during the quarter. I'll talk a little bit about what we're experiencing now beyond the quarter. So from a good news perspective, the supply chain bottlenecks are easing. The other thing that we had the challenge with in Q2 and Q3 was new trucks. We were anticipating several new trucks in Q2 and Q3 And, of course, those older trucks then would, a number of them would be traded in or be moved to backup truck status. And what, of course, happened there is we needed to use those trucks that neither needed to go in for trade-in or needed to be moved to backup status. And, of course, we're trading them in for a reason. We want new trucks with full capacity, and we didn't have that through a lot of Q2 and Q3. So, again... That increased our costs to repair trucks that were supposed to go back in and to, in some cases, have more labor on the truck. So it drove up those two costs. I will say this, our strategy, and we've talked about this a number of times, our strategy to maintain a very modern truck fleet, a standard modern truck fleet, this could have been worse. We actually, in a couple of cases, helped some of our competitors when their trucks went down and there were one or two truck shop and they go down and they needed help. We were there to help them because we were able to sort of sneak in a couple of stops for them, if you will, on a route. Our modern fleet strategy is, really saved us this quarter, and I'm very thankful for that. The other thing that saved us is because of our density, particularly in the northeast, is the ability to share trucks amongst locations. So we had that ability as well. Again, they're typically backup trucks, so they're not quite as efficient. However, all of those things really prevented a very adverse outcome. And so our strategy going forward, will continue to be to keep a modern fleet, to continue to grab new trucks. As noted, we are now, here we are in the fourth quarter, in the latter part of the fourth quarter, we've had a strong supply of new trucks come in, finally. And we will be able to start off the first quarter of the new year strong because we're going to have the capacity. We've also, of course, are working on our buying for the new year for new trucks. So from a truck supply perspective, things are easing up for us. And we're able to put new trucks on the road. In most cases, in most locations, we're seeing an easing up, which means rental costs are coming down. Our labor costs on routes are coming down. Our repair costs are going to come down. All those things are going to start to ease as we, you know, this latter part of Q4 and into 2023. So we're very pleased now. uh, about that. So, uh, I wanted to give everyone that color because, uh, that, uh, um, you know, that, that hurt us, um, in Q3, uh, quite a bit. And, uh, uh, so as much as fuel went up and labor went up and those hurt the, the, for us, truck capacity is critical. Uh, and, um, um, again, we were fortunate to secure the revenue we did and we're pleased about that. Uh, turning, switching gears, then I'll kind of pass it to Harjeet. Um, just on, uh, the acquisition front is, as many of you know, we acquired pro ship Philadelphia franchise. That was, uh, on November 1st, um, the cash consideration was 7 million, just over 7 million us. There are earnouts tied to revenue, uh, both service revenue and paper revenue. Uh, and really this completes our New York, New Jersey, Pennsylvania corridor for us. Um, We have a very strong presence in New York, New Jersey. In fact, we have a nice bailing facility in New Jersey now in the center of New Jersey. We have a bailing facility now in Pennsylvania. We're going to be able to reshuffle some routes. We're going to be able to get some further economies by having that. The Philadelphia location has a predominantly new truck fleet, newer truck fleet, which is good. Good people, good management. I think we're going to see, due to the geographic proximity to our other markets, we're going to see some opportunity to improve our routing, our margins, our back office costs, all those types of things. So we're very pleased about that. And of course, having another bailing facility. more premium on the paper for the company. And so that's going to help as well, creates more stability in that revenue stream. So with all of that said, I think I've done enough talking and I think I'd like to pass this over to Harjeet who will go into a little bit more detail on the numerics.

Thank you, Jeff. Good morning, everyone. And thanks again for joining us on this call this morning. So, you know, as Jeff noted, we are pleased with our growth trajectory in Q3. And of course, we're very excited about the approach at Philly acquisition and the opportunities this acquisition will provide us. So in terms of financial results from a top line perspective, consolidated revenue for Q3 was 14.7 million. That compared to 9.8 million in Q3 2021. So roughly about a 50% increase. From a bottom line perspective, EBITDA for Q3 was 3.6 million compared to 2.9 million in Q3 2021. So those are the Q3 results from a top and bottom line perspective. If we look at it from a year-to-date perspective, we're ahead as well. So revenue in EBITDA for Q3 2022 year-to-date were 41.8 and 12.12 million respectively. If you look at it compared to year-to-date 2021, Revenue and EBITDA were $25.8 million and $7.5 million respectively. And if we look at what's driving that growth, it's both strong same corporate location performance and the results of the acquisitions that we have completed in the past 12 months, including, of course, American shredding and safeguard document destruction, which is an acquisition that we did over the summer. On a per share basis, fully diluted net income per share more than doubled at 21 cents per share for Q3 2022 compared to 10 cents in Q3 2021. And on a year-to-date basis, fully diluted net income was almost three times as high at 38 cents per share compared to 13 cents per share for Q3 2021 year-to-date. And just a reminder again, all these calculations that I am sharing with you they do reflect the one for five common share consolidation that we completed back in August. So those are the sort of the income results. If you look at the cash flow, cash provided by operations was 3.3 million for Q3 2022 and on a year to date basis, 8.7 million. And again, the main driver of that is our strong EBITDA results. If we look at the balance sheet, you know, we have solid liquidity, networking capital of 5.6 million, and we have 11 million in cash. So all in all, we're pleased with the results for Q3 2022 and are looking forward to executing our plan for Q3 and finishing the year off strong. So on that note, I will turn it over to Jeff for some final comments before we open up for questions.

Yeah, thanks, Sarjit. You know, I think some, you know, given where we've been and given some of the headwinds we faced in 2022, starting the year with Omicron, fuel, labor, truck supply chain, I think I'd like to direct everyone to the fact that on a year-to-date basis, we are ahead of where we thought we'd be. We're ahead of plan. Even in Q3 with the headwinds, we put up some record revenue numbers in a number of areas, including the most important is our service side. And now with the Philadelphia acquisition here, our goal here is to win Q4. And we want to win Q4 and end the year strong. And that's our plan. So with that all being said, I'm sure there's lots of questions out there. So I'm going to turn it back to Arielle, our operator, and see who's up first.

Thank you. We will now begin the question and answer session. To join the question queue, you may press star, then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then 2. Our first question comes from Amar Azad of Echelon Partners. Please go ahead.

Jeff, Harjeet, good morning, and congrats on another strong quarter. Thanks, Amar. Can we start with the capacity issues and the increased repair and labor costs? Is it possible to quantify how much of an impact these had on the quarter, both on sales and costs?

Yeah. On sales, where we wind up being hurt on the sales front is typically Not scheduled because once you're on a schedule, you're a preferred client and we do anything and everything we can to service you. Obviously, in some markets where you're down more than a truck or two, you're sometimes having to double team the truck. Where we might have suffered on the revenue side is where we weren't able to take on all the purge or event-based opportunity. I think you can see from the solid revenue side, we did anything and everything we could because we recognize that by doing so, they're in our database and we can convert them. So really for us, it's servicing those customers because in the short term, yes, it hurt. But in the long term, that has golden opportunity for us, not just on the shredding side, but the e-waste and scanning side. I would say, and Harjeet, maybe you can confirm, but from a – when we look at sort of our direct cost of driver labor, that would have been – that would have accounted for 1% or 2% increased cost, and then repairs and maintenance. There's two – one thing is very difficult to quantify, and we've been trying to. One thing is – the easy part to quantify, however, is repair and maintenance costs, right? That was probably up another 1% or 2% versus our historical standards. What's harder to quantify is the impact of downtime other than we couldn't accept all of the purge revenue. Harjeet, I think my numerics are correct, but just to confirm that.

Definitely, yeah. So the numerics are correct. So that wage inflation did impact the margins. And some of these other truck-related costs, they definitely do impact margins. And I think one of the things, you know, that, you know, one of the things that we do have going forward is again, you know, we're going to get the full benefit of some of the price increases and we're able to plan for this a little bit better. And then especially when we sort of, you know, reestablish and sort of increase sort of that the capacity to service clients, especially on the purge side, you know, that'll help us going forward.

Understood. So, so if I'm thinking about operating expenses going forward, you're at 9.2 million for the quarter. That's, I think you were $7 million a couple of quarters ago. I'm looking to understand how much of that increase in operating costs is permanent versus one-offs such as temporary higher maintenance and repair costs. I'm not sure if you guys can quantify that, or is that $9.2 million number good to use going forward?

I would say right now, for the remainder of this year, just to be on the safe side, and again, we are finishing the year with Q4, which tends to be slightly softer. I think you can go that route. I think with the opening up, if we sort of look at capacity moving into the new year, so if you look at that direct store level EBITDA, You know, we were running pretty hot at 40%. You know, we look at last year and even the earlier part of this year, we've always targeted sort of direct store level EBITDA between sort of 35% and 37%. That's sort of where we've always targeted. So I think that's a safer number to go that way. There's certainly going to be some opportunity, to Harjeet's point, as capacity continues to build Um, uh, that's there. The unknowns are really the fuel. Uh, and the other unknown is still, you know, if a truck goes down, even new trucks can go down, you know, what, what is the time delay to service? Um, uh, the good news is of course, we, we, you know, we sometimes do get preferred service at the, at our, our shops. Um, um, I've already made a suggestion, you know, that, uh, 35% so far, you know, uh, for the quarter, um, you know, that's not a, that's not a bad number to sort of go forward with a little bit. Um, you know, but we've always been targeting that 35 to 37% range. Uh, it's sort of always been our direct store level EBITDA target.

Yeah, no, it's, it's not a bad number at all. You're actually above my number. So, um, Then if I could just go back to one thing Harjeet said on the price increases. How much of the recent price increases are reflected in the current quarter? Is it all there or is there still upside to be had?

Sure. So I think I can sort of help answer that question. So I think the price increase is We did start pushing them through, but we started pushing them through in the quarter. And so we started pushing them through in quarter. So we're not getting some of that benefit, that uptick in the early part of Q3. And so we're going to see that in Q4. We're going to get the benefit of that for the full quarter. So that will help us a little bit.

Okay. Then maybe one last one on the truck fleets. Maybe specifically, how should we be thinking about capital expenditures, I guess, into 2023? Yeah.

Similar to what we had planned for 2022, I think maybe the difference right now is there does seem to be production happening. So, yeah. when I sort of look at that operating income, that knocks out your depreciation on the tangible assets. As an example, we are looking to continue to replace the older fleet and continue to add net new trucks to fund growth. So I think if you look at 23 in a similar way that we originally looked at 2022, we'd probably be accurate. I think the good news, of course, for 2023 is we should have faster, sooner, better access to the trucks. Does that help, Bomber?

Ish is like six to seven million dollars in capital expenditures.

Yeah, probably not that much. Probably five to six versus six to seven.

Lefty here, that's. Yeah. Fantastic. I'll pass the line. Congrats again. Thank you very much, Amr.

Our next question comes from David Acampo of Cormark Securities. Please go ahead.

Thanks, Dave. Jeff, just curious on your thoughts. I know you shared it on the last quarter about the fuel surcharge. You guys don't have it. How often are your contracts repriced, and do you think that some of your customers are going to want some of some sort of relief if prices do check back?

Um, so yeah, so we, we, you know, it's interesting. So this year, obviously we've done a price increase recently. Uh, we budget for a price increase every year. Um, and, and we evaluate, you know, what the size of that price increase may be depending on, you know, inflationary times and, and, and the like. And, um, um, Our plan is to do another price increase next year. That's the plan at the moment. Like anything, you have to be agile. If the economy is going into the crapper, you're going to be doing something a little bit different. If the economy continues to run hot, maybe we're going to budget a higher price increase. We have to be agile. We don't Knock on wood, we typically don't do reversal, price increase reversals. You know, often what's happened in the past, especially with larger customers, they might go, hey, we're going to RFP. You know, we're looking for a price decrease. Can you do something? That's the danger of going after large accounts is that you do get more pressure on prices. What we have seen this year is on large accounts, we haven't seen as much pressure. I think everyone's understanding that we're in an inflationary environment. So that's been positive for us. But we'll be agile. But our smaller customers, and if last year you were $100 a month and now this year you're $110 a month, for the most part, it's under the radar, which is good. And so if we move the next year from $110 to $115, chances are it's going to be under the radar. But again, we have to be mindful of the macroeconomic environment and what's going on out there. But price reversals, especially with our bread and butter customers or small medium-sized customers, probably not.

And what about your competitors? Are they running a fuel surcharge? Because if fuel checks back, call it 20% or 30%, you guys will look not as attractive on a pricing basis anymore.

Well, they always have fuel surcharges, even when fuel is low. They still charge a fuel surcharge, right? I look at it a little bit differently in that we're all, like if you look at the base pricing, we're all charging similar for the base pricing. Whether it's shredded iron, mountain moss, or independence, we typically are in the same range. So if you, again, look at our bread and butter customers, small, medium-sized customers, and if they're $110 a month, Are they really going to shop that around because Shredit's now 105 or are they going to shop that? Probably not. We use the fuel surcharge as a weapon. Don't get me wrong, we've considered doing fuel surcharges. We've considered those things, but our total go-to-market strategy has always been keep it easy for the client, keep it clean, keep it consistent. Be honest with the client. Our costs went up. We've got to give you a price increase. And I think the reality is if fuel doesn't go up, something else goes up anyhow. So where shredded is a good example, the alternative, I mean, they've done all kinds of stuff, in my view, that's hurt them. They've done fuel surcharges. They've done delivery charges. They do a reverse paper surcharge. And you know what? That's easy for us to sell against. And so I would rather go clean and easy, make it easy for our salespeople to sell, make it easy for the client to understand the bill, and knock on wood, that's worked for us. And as long as our base pricing is reasonable, it should continue to work for us. But David, you always have to ask yourself the question, and we do. We probably ask ourselves the question every year, should we go that direction? And for us, the answer has always been stick to this approach because clients do appreciate the transparency and they appreciate the, you know, cleanness of their invoice.

Got it. And then just on the M&A environment, I'm just curious how many of your franchisees are up for renewal in the next 12 months?

Yeah, there are a number. There's about... three or four more that are up for renewal in the next 12 months. And, you know, speaking to the M&A pipeline, we continue to develop that pipeline. It continues to be a mixture of small, medium, and large companies. It's still a good mixture of franchisees and independents. I think, again, you know, when things bad happen, right, those are good opportunities. So inflation, interest costs, you know, truck supply, I think, You know what? Again, we're fortunate. We're able to do okay through all of that. But some of these folks, I'm seeing it in some of the deal sheets that I look at now, that they've been hurt by all of this. And I suspect, and we're seeing it in some of the growth of the pipeline, I expect this coming year there's some good opportunity to buy. Independence, of course, we've been buying. at pretty good multiples. Franchisees are still performing. You can see that in our system sales. They're performing quite well. Let's see where that lands, but there's good opportunity everywhere. Our focus is still really Midwest East Coast focused on doing the acquisitions because I think The point of the truck issues is absolutely why depth is critical and why the strategy we've taken was a good one. Because when trucks went down in one market, we could take trucks to another. We buy something in Idaho, we're an island, right? We'll get to Idaho at some point. But right now, our focus on the M&A side is still M&A. really where we are to drive that density, to drive the stronger margins, and to create that risk mitigation, which came in handy in Q3. So I know I answered your question in a long roundabout way, but I hope that gave you and maybe some others some color there.

Yeah, that was very helpful. And if I could sneak one last quick one in. On your commitments table, you guys have a contingent consideration of $2.5 million over the next year. Is that indicating that the acquisitions you've done have been hitting all their targets further or no?

The vast majority have, yes. Okay.

Got it. Thanks a lot, guys. I'll hand the call over.

Thank you, David.

Once again, if you have a question, please press star, then 1. Our next question comes from Nick Corcoran of Acumen Capital. Please go ahead.

Good morning. Just a few questions from me. The first one on price increases, how customers respond to them, and has there been any material churning your customer base?

Sure. So in terms of the customer feedback, the customer feedback has been very understanding, especially considering, again, this inflationary environment. Customers understand the need for the price increases. And So far, you know, in November here to date, we haven't had any notable churn as a result of that. So it's just an environment, again, with high inflation. I think everyone's feeling it and there is some degree of understanding for the need to increase prices.

Great. And then maybe moving to the trucks, what trucks do you receive in the third quarter and what do you expect into the fourth quarter? And are these fully financed?

So, number one, they are fully financed at the moment. We work with a couple truck financing companies. So, yeah, they're fully financed. We've taken in the latter part of the third quarter, I think we took five trucks in. We've got a couple more. I think in the fourth quarter, we've taken another couple with a couple more to go. most of those five trucks, we took them a third quarter. We're supposed to be delivered in the first, in the second quarter for sure. Uh, so, um, yeah, we, we've taken in a number of trucks recently.

Great. And then, uh, maybe thinking about your scanning and we, you waste, how did that perform in the quarter?

Yeah. Uh, so, uh, e-waste performed well, um, uh, e-waste performed quite well. Um, scanning was just slightly down, uh, I mean, for the year, scanning has done very, very well. And the way that works, the scanning works is you can get some chunky jobs. So we had some really nice size jobs from existing customers. I'd call them not recurring, but repeat customers. And so in Q1 and Q2, we were really busy on the scan front. And that dropped off a bit here in the third quarter. The fourth quarter typically is soft because the government doesn't do anything. We have a lot of government contracts. Our contracts tend to be larger. So it tends to fall off a little bit in the fourth quarter. The pipeline is good there on scanning. So we're planning to have another good year on the scanning side to finish 2022 and moving 2023. We're planning to have, again, a strong growth in that business. E-waste, we're pleased with the results on e-waste. we're seeing some normalcy there finally, where, you know, people are now buying new computers finally, and they're going, I've got to send these old computers in. So we're starting to see some normalcy back, you know, after two years of COVID. We had a lot of volatility. We're getting more normalcy there. So both businesses, just even on a year-to-date side, I mean, scanning is up 48%. E-waste is up 36%. percent on a year to date but I think the quarter is just a little bit soft a little bit a little bit of panic uh certainly wait the beat uh and and of course our core business shredding did not miss a beat on uh especially organic growth so uh year to date we're we're quite pleased on on all fronts that's helpful and just the last question for me allowance for gopro accounts was up a bit in the quarter was there any specific reason for that Rajit, do you want to take a look at it this quarter?

Sure. In terms of our allowance for Duffield accounts, we obviously took a deep dive into the valuation of the trade receivables outstanding. We took a look through and that allowance that you're seeing, that's actually a general allowance. There was nothing material that's specifically identified. as sort of being bad debt. So that's a general provision that, again, you know, it's also reflecting the fact that our trade AR balance, you know, with our growth in the business, it obviously has increased as well. So, but yeah, no material sort of amounts that we recognize for specific customers. It's more of a general allowance.

Thanks. That's all from me. Great. Thank you. Thank you. Thanks, Nick.

Our next question comes from Devin Schilling of PI Financial. Please go ahead.

Hi, Jeff. I might have missed it. What was the magnitude of the size of the price increases you guys implemented?

Seven to nine percent on our regularly scheduled clients. So really, if you sort of think of the price increase in a number of ways. So our go-to markets or new customers are coming in at higher prices. So right out of the gate, we're not. They're coming in at higher prices on the scheduled side. Purges, you react to capacity, right? If you have lots of truck capacity, you can afford to go in there and be competitive if there's competition on pricing. If you don't have capacity, well, then you can charge a higher price. There's a little more elasticity there on the purge pricing. Scheduled pricing or go-to-market pricing is higher. And again, 7% to 9% on our regularly scheduled clients that are not, you know, for example, hospitals that are under a contract, you can only do a price increase once every three years or has per contract. The good news is the majority of our customers are small, medium-sized enterprise, so we're able to push that through.

Okay, that's helpful. And I guess just lastly for me, maybe you can just comment on paper prices, you know, at this point in time where we're sitting at.

Yeah, I mean, they were flat. They've been flat last couple of months. Harjeet, I think you've been seeing the same thing. They've been relatively flat sort of here October, November.

That's correct, yeah. So they've been sort of hovering at the same price point as of right now.

Okay, perfect. That's very helpful. Thank you very much, guys. Thanks, Devin. Thank you.

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

Great. Thank you, uh, everyone. So first and foremost, um, I want to thank everyone for joining us today. Uh, um, so many of you are shareholders. Uh, we don't do it without our partners, uh, our shareholders. So thank you for your support. Um, you know, the company's on a nice trajectory right now. We've, uh, We have the capability and the ability to withstand things. As seen in the third quarter, we have the capability and the ability to take opportunity when presented to us. We have the capability and ability to continue on our acquisition platform. We also have the capability to have great people. Many of them are on this call. Many of them are not. And they do such heavy lifting. So I want to thank all of our employees, our management team, our franchisees, our board of directors as well for everything they do to support this company. And now this call is over and Arjeet and I got to go put our head down as well as the rest of the team. And we got to go win Q4 and tee ourselves up for a very successful 2023. So that being said, if I don't speak to any of you individually, which I know I'll be speaking with some of you individually, but I do want to wish everyone a happy holidays and thank you again. for all you've done for ReadyShred Capital Corp.

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