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Group 1 Automotive (GPI)

Participants
Pete DeLongchamps SVP of Manufacturer Relations, Financial Services and Public Affairs
Earl Hesterberg President and CEO
Daryl Kenningham President of U.S. and Brazilian Operations
Daniel Mchenry SVP and CFO
Michael Ward Benchmark
John Murphy Bank of America Merrill Lynch
Rick Nelson Stephens
David Whiston Morningstar
Rajat Gupta JPMorgan
Call transcript
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Operator

Good morning, ladies and gentlemen and welcome to Group 1 Automotive 2020 Third Quarter Financial Results Conference Call. Please be advised that this call is being recorded. I would now like to turn the call over to Mr. Pete DeLongchamps, Group 1's Senior Vice President of Manufacturer Relations, Financial Services and Public Affairs. Please go ahead, Mr. DeLongchamps.

Pete DeLongchamps

reconciliations good release and and to we slide that and call. to a on Christie, adjusted to presentation earnings the Group comparison The issued include been this you, call morning, will purposes welcome everyone, today's related results for Thank we to have refer posted related this website. morning X's

the The risks information not may and make results. related associated from to, mentioned the statements statements materially new well both company's management I'd known made current cause begin, to statements elsewhere future harbor restrictions of remarks to future on extent unknown economy health global unknown of Litigation oil brief XX and from and and the demand are virus safe forward-looking we and resulting Except Exchange in of the available call, current regarding our uncertainties, commercial risks its can some filings for these have various the last demand forecasted described recovery and effects with the COVID-XX and oil in provisions severity as that months. the like are measures. other timing, during in the are over affect developments impacts COVID-XX Private to volume, and turn involve Securities on future historical and of economic and services. Act pace conference and the in impact made of of the such regarding transportation which use the Commission used the as for international the will from activities. with of Securities Reform company's duration, vehicles but XXXX. for forward-looking and service. and Automotive an the and Copies related crisis Before use non-GAAP and on the limited vehicles periods the and likely Group public are of company. adversely both And include, impacts unknown the financial markets, prices, statements are and Those impacts of travel, to about by producers pursuant X the on forward-looking of U.S. authorities results SEC which actual adverse conditions in Uncertainly differ that the pricing, filings U.S. COVID-XX economic risks Those risks and uncertainty

may discussed non-GAAP In be addition, as measures, certain call. on in this financial rules SEC our defined

any Participating our Senior Hesterberg, Operations, the Mchenry, Vice I'd to company Officer, applicable required rules, and the President me to and Daryl measures on President Welch, and such GAAP U.S. President by Financial Chief and now of our Brazilian call As reconciliations with Daniel Officer measures its provides the the call Executive President to Corporate today, Earl. SEC Michael Controller. like over on website. directly give Vice of non-GAAP Chief most our Kenningham, and financial comparable Earl

Earl Hesterberg

the quarter year's an for X million. $X.XX record increase share Pete. per share. $XXX net Thanks, adjusted Group over adjusted of income per share the to that of earnings pleased equates to all I'm morning, XXX% generated everyone. earnings report prior per diluted Good time This adjusted

improvement major pre-tax and position once and our the on business will of the continuation our brilliant our Daniel XXXX. As liquidity across new notes due profit previously cost lockdowns major a factors being May balance of loss model lifted, of earlier and June company. substantial to and employees. X% improvements adjusted resiliency vehicle and of profit leverage the began The results were our margin the our month, in very this transaction issued strong this mentioned used large profits redemption we demonstrated call. exclude our These later or efforts driving results million sheet the our the in along again a our related pre-release generated cover $X.X after with in

voted to The EU, leave level the to made operations by both since restructuring shelter of and our March of place UK major financial first the the that we continue this a Very quarterly as XX%, significant XX% our to markets performance implemented even that will respectively. beginning UK pandemic. UK orders us operations have began UK the and time optimistic in in results. a reduce our extreme headcount in late before U.S. The required contribution

operations lower business of the time and sales U.S. UK at approximately levels. on believe, both well by way to levels we're efficiency below goal pre-pandemic During of Current this. levels. restructured We a the least in and We dramatically with headcount achieving this XX% both are service improving our XX%.

sales shortly, U.S. year's in low levels. As below vehicle volumes the levels, Daryl to will detail inventory remain primarily due well last

increased sales vehicle vehicle XX%. new sales UK up were and used same-store XX% However,

emissions sales vehicle drove quarter new X% large shortages in summer. currency of local UK and in sales XX% same-store during in the as was improvements sales This third be increases gross same-store can prior volume currency service as in nicely quarter. year's well increase margin improvement below new sales by Our in overall, vehicle to But increase increase market profit our vehicle a local the change throughout parts UK our by XX% on basis. the evidenced The revenue regulations. and vehicle recovered the a influenced of the used due with associated average has

was SG&A percent growth powerful vehicle by New per XX%. entered color vehicle far and XX%, the XX%. XX%. of gross turn of best Resolving margins gross unit while performance since now SG&A XXXX. used provide metric UK profit actually an margins expenses U.S. improved This X reducing I'll XX% over By while Group profit achieved up of the Daryl performance. less Brazil the Kenningham. our than to some call in To on were

Daryl Kenningham

growth, to and XX% growth unit discipline. U.S. and used versus use vehicle strong new year. vehicle contributed and outstanding vehicle prior and our of decreased third the F&I quarter factors gross PRU new mainly SG&A tight A number vehicle new Due unit decreased XX% Thank you, same-store sales results, Earl. to sales supply, profit used

New second vehicle quarter quarter units XX-day identical XX,XXX a the finished roughly at the inventories to supply. nearly

Our a margin. on gross disciplined fantastic staying job team did

far new volume Our improvement outweighed decline. vehicle our

As than increase a more gross $X,XXX a new profit. gross XX% same-store in increase you PR generated in vehicle profit

vehicle the unit Although throughout down quarter, our the it significantly new volume XX% in was period. improved

the up As prior only were X% September versus from and sequentially sales August. year down

used used a and our identical gross profit new PRU XX% drove was Our same-store on cadence nearly a vehicle total vehicle increase with improvement basis.

sourcing was enabled as well. improved Our used car performance PRU by

were going through individuals vehicles purchase build trades from for source up Both XX% we this and improvement record XX%. and and was individuals on forward. to sales us expect up Our a

major second quarter decline in was The sales. Despite F&I. same-store driver the in the unit

performance record of year Our record per our prior F&I levels. same PRU to F&I maintain profit store performance $X,XXX driven higher allowed gross basically income penetrations The of product and by offerings. was us all and contract,

our third profit performance factor The driving discipline. was cost outstanding major

XXXX. to viability discussed call all cutting employees we written productive unprecedented on very year's of environment. drove Throughout March, generated compared be this quarter's the economic modified our performance. actions could of a don't to improvement the there challenging to and our expect we headcount. expect our third in company's this house the be aggressive we and environment. our an Also, last we of after resilient We've this power targets in second adjusted our profit during decisive quarters, the revenue by to XX.X%. and As productivity in in level to Well, were markets as going a protect XX% meaningful sales prior took second with three of be extremely cost half sustainable, forward we gross are third SG&A and encouraged do quarter, percentage we profit of XX% record This gross

collision the due While X%, was declines the in down this to quarter business. primarily was

was profit our exit very we the the customer flat. of second our sequential we're warranty with and was And For very strong saw quarter, pleased from rate. up and pay XX% growth quarter, gross

As was after in total up the year. business September sales over our prior

levels into expect closer We we move as XXXX to XXXX. to return

a I'd on Brazil, Before I minute you to take to update like touch on accelerate.

and selling platform Customers accelerate.com. a We've will among rate accelerated Our customers feature, their bid customers allow many initiatives, retailing the trajectory Group live a and quick quarter digital the continued for higher we This And ability access now on payment. accelerate, upward than customers X,XXX advantage taking to includes, vehicle other remotely. launched to electronic customers. have at to choosing like. to treat retailing receive platform and by option over a soon its this third vehicles X's they'd features, additionally, digital whenever close us much the their receive of to sell our vehicles wherever

did performance a team thinning will our I a liquidity the Daniel of nicely of structure quarterly provide job ownership now to X.X and solid over years the an turn Daniel? rebound the the review. to pandemic. sales, a decline realize quickly in a margins the XX% to turning industry order Brazil. percentage CFO, best and Now region the vehicle and is for has positions out our group coming over new balance profit. of a call to XX% second quickly growing Despite sales cost Mchenry sheet SG&A as in a gross aggressively admirable

Daniel Mchenry

Daryl and Thank morning you, everyone. good

will due $XXX XXXX. we our previously million newly all due As notes quarter, during X.XX% funded was the notes Earl of $XXX the of redemption credit XXXX. in expense. Along XXXX. million this April with with million of X.XX% debt year issued redeemed in no X% due the mentioned, outstanding notes before debt us restructuring redemption This June our interest maturities XXXX, facility U.S. Also the has matures now over material of undertaken annual $XX we save

proud the sheet company of position balance our the in is given strong economic faced is such very are challenges We fact XXXX. a world in the

flow. liquidity and cash to Turning

our There accounts. As total liquidity total XXth. to and as liquidity September bringing September cash XXth, had million syndicated $XXX also $XXX offset capacity of on of we U.S. our million million borrowing cash of hand, million in was acquisition immediate to $XXX invested million. another floorplan that additional on line, $XX of was $XXX Bringing

estate mortgage, million. over and to million another We also UK have million $XXX brings near-term of total available liquidity, which $XXX in to increasing roughly $XXX U.S. the real

from This used the Our million credit by This our floorplan the cash flow year-to-date the adjusted cash party of operating our of of down the flow million. times to generation reduce U.S. XXXX. reduced September, generated end at facility end flow to to end $XXX has at remains very non strong X.X brings XXXX. been we third $XXX as leverage ratio our in rent quarter. million was $XXX cash cash times debt of adjusted X.X Also, operating since

to for our capital forward, M&A. to add preference through allocation is company scale Going our

Often opportunity. market and are suitable acquisition our in we markets the open million the share at to U.S. our cash of shareholders, well of preferred the is reinstating foreign moment, recent are acquisitions returning announcement our to the program fourth our intention right quarter. repurchase the we our as open in targets, as in While certainly given dividend $XXX to evidenced

our release, as For information website. regarding the now additional scheduled over of well financial will on presentation as Please attached news call detail to I posted Earl. refer our additional the back turn investor condition. to the to the

Earl Hesterberg

we pandemic. Thanks, month of is first this the XXXX Daniel. as sell activity Related operations, to Mississippi. our This in on Nissan much our given our been buy corporate we've more a franchise focused development of earlier efforts organic disposed

recently, sign. once which remarks. As encouraging increased growing the Operator? to through Daniel will turn now over seen session. mentioned, M&A. looking activity flow We've however, to to our begin call our forward prepared I question-and-answer now company the concludes potential and operator is This an again deal the we're

Operator

ahead. first Michael go you. comes our from Thank Please question Ward with Instructions] And [Operator Benchmark.

Michael Ward

variable carrying down and go when takes gives everyone. talk But on vehicle the tight? Thanks. in positive Pushing and The that is some lose gross takes the variable of happens Can maybe inventory on price. what a Good morning, gives you are gross. there what on the you new about are profitability costs sales?

Daryl Kenningham

our tightest in quarter. sales our then Well, Toyota also brand an to the Yes, and obviously lose inventory, case is as we largest of well. the tight. be happened is inventory and

that certainly about when quarter operated cost yes, a supply -- most XX-day some of our the So brands. and we many can you business, during

Michael Ward

Okay.

relates it That's Now, of as it as SG&A of of percentage you gross. in allude things release costs down. holding kind to that press the one the to

what the continue we're replenished until inventory the could mean thing looking quarter. that or see doesn't that close of Is that of into you in we this that we possibly type this if into where you to get half? performance type of pay kind type at? well even the So the second as first success, and Does half second head to

Earl Hesterberg

know cheaply. they Mike, they savvy, don't sell very as this They another correct. thing. They can I vehicle. that's is it. the cannot Ear. Operators replace simple mean, with can it that's a they Directionally, dealer, if are when trade replace and whether

margins sector retailing just drop would So up now has far that's every industry. vehicles driving inventory in few our receive in these supply from And throughout the been ramp year-over-year, month. anyone new high the below vehicle have we're units. to OEMs XX,XXX starting one the our and point expected. a We're like But what something more

we we're were not And still nowhere levels. near So to sure, normal the one. back only I'm

is reduction to margins be proportionate back to way inventory a industry long still appears be increase go to normal will in forward in the vehicle move levels. inventory, the while going So and before to the there

Michael Ward

life with alternate chart XX kind the in It particularly the years vehicles. Any seeing I like sounds the type that dramatic side dealers it's energy service for of market to a side. those of through these three to tell. big capitalized service share you and service towards the off more the goes vehicle vehicles of on on gain on Page four? chance moves side the idea? have On than guess rather the too well for the these drop basically But as the could that on vehicles it's early service

Daryl Kenningham

whether Potentially I take do training a mean, What's certainly definitely more are better franchise much from equipment. investment and or true. dealers is those yes, vehicles positioned that in to that's true that's

Earl Hesterberg

think I much than The levels Yes, been has the Mike, the vehicles And brands. with decade, customer retention levels more over volume again. on got that they seen thing same as Earl brand we've luxury is complex this higher those loyalty last brands electronically. and

much the the so, business us And vehicle. maintain of just complexity, the a extend position to powered a stronger the percentage world, which customer the now electronic competitive will of battery of regardless kind of higher into age service gives

Michael Ward

it. you. really Thank appreciate I

Operator

next John with ahead. Murphy America. our of And go Please question Bank comes from

John Murphy

Good morning, guys.

is mean you're First workers you're still this question I it talking been improvement mean, SG&A. brought mean really how as on means at look looks mean, a -- that those folks we efficiency is are even that exactly to it of Could stay about the workers out. you're sales about those XX% that do recover? don't what come of thinking sales mean just out And efficiency? XX% that's how sales like back, the kind And about have I talking if back? that you XX% I getting in XX% by efficiency? really

Earl Hesterberg

is bring this salesperson the both But the bit than efficiency that is going I are were believe greater now a had have to volumes our tech business we than this just because what we're because and And way have is materially be more certain for more depressed, John, short we'll And as and structured tech. our you toward believe structured we is level our can see, Yes, more support we salespeople the place. few Earl. different a we to XX% back, we a inventory. on have been in past. and the in we've way before functions, a efficiency people

would I some related. come related, yeah, would to So people be strictly back not I expect support to volume

John Murphy

breach actually question. It be rate Okay, that's then given very like that to component the it. is business recovery as high XX. waning second I U.S. see, particularly going XX, might very helpful. sales the looks is of fleet in mean, October a And remarkable, it we'll

back And it's a this you much this demand about that I March, up business coming months the the the early here. mean quarters? a your you are do think of coming matter recovery, of May, durability -- about to how depressed shape think how June, from point, you going and July how April, because how of So lot do pent in for

Earl Hesterberg

as And to chat of durability on, week the low, trains safe away commuting incredibly that more the shying in some the surprising does are rates have or last it so their And forth is as goes even so interest are people isn't time for heard so. to car. and It be low. and to UK, going John, their we Well see sustained. more, work. tube people me, seem like cocoon the I it still and and more confidence from And in you've

So good. affordability is

anything the don't disrupt I so And and we behind see on demand. the going that horizon where to is current situation have, this supply band solid

the the it through spring into sure. So seem, got would pretty a runway, for winter least good we've at

John Murphy

Yeah, backdrop. it's But like tap early, great. like in you're or past. on the fairly what table the it a seems been not a way. a key remarkable back not had And M&A turning the certainly then It's focus, off lastly sounds just material

the curious acquisitions Do in this you just I'm in of shift back created set opportunity changed towards business really? So what's M&A? it's or the

Earl Hesterberg

think our the it's in stability of our operations. company I Well, the financial strength again, and

down got from get And may be performing level the a and company I to can quickly. same we our more we particularly degree, think integrate leverage dealerships, we've now that necessarily expanding very buying and more are. at them we not can that large laying

John Murphy

Okay, that's much. you very helpful. Thank very

Operator

And ahead. Stephen. go from Rick question with Nelson our next comes Please

Rick Nelson

back Thanks, absent is you or and careful guys. those morning. buybacks? for XXXX the you and GPUs, or EPS at [indiscernible] acquisitions implications do the grow higher we levels? quarter timing can you normalizing as very about supplies. to Nice curious I'm normal then, pre-COVID think good When we And levels stock go do in

Daryl Kenningham

the it'll but address then see inventory fourth EPS bit expect. on the may are the I'll margins gross that of of And materially little inventories Daryl. until really I'll to the the vehicle side modest. growth answer until that quarter everything and expect see is situation first very next I part, year. would is we We our but in be right the inventory quarter, first won't materially a we continue part this on changes. growth, Rick ask the improve Earl I that stable now. And new see to the

Earl Hesterberg

Rick, challenge, to given what's all this Relative mean, EPS, going happened year. we know I that's is growing huge to be a this Earl.

three mitigating we've as and One do been that because conditions, that volume doing -- we we've we've So in than on. we've we discussed, factors can we is, three more new got on -- market can constrained we've got these been lean used. can

margins can of we degree, some with volume. any tempering to think I So mitigate more

Our back strength and company. a of our previous the still been up quite service year levels that's businesses not

So structured, of get UK market year. thing our and we stable is can chance believe now to we've Brexit of going to had couple continued at get I we had UK The think operation. the more time really different never company years about a we're which we third election next rationalize the and I get out operation. three out service have got have of And more integrated really to is our to about and added now. our We properly the UK done dealer groups ago, we

that So the to on to can if we're moving company keep see forward. lean those things the going are we three

Rick Nelson

acquisition what are course, elevated compares, some drivers been And lot got To is What -- UK, seeing relative sense. of a easy. you make outsized over to -- I opportunities. a seem were have But to October, here we there? the -- if read in were there? That restriction there relatively buyback you growth market. the saw of

Daryl Kenningham

is still strong. the in UK pace the Yeah,

seasonal than Now it's market U.S. the more a

from the than particularly a quite And but So normally would change the in November, it's more it's would that you but order have seasonality. I take a volume, December still have the month, say we in after decreased market. don't the little would have rates the healthy -- no you U.S., expect bit, September plate

for a produce levels. us still that at it's So can market these

Rick Nelson

in [indiscernible] do people opportunity you if in tide can and out into the per that low these sector. unit you rise? here number and How fact vulnerable? the section see freight finally, last And from this driving I that do commerce rates interest Is $X,XXX lead important start to have bring how been think much

Earl Hesterberg

for And Rick, us. a thanks is, and we what with was terrific the rates it record helps quarter Daryl contracts are as for do mentioned And question noticing, clearly interest maintenance really a us agreements. had tailwind. thanks selling and traction, So, for service it

about we just every that up was offer quarter. for product So the

able And standpoint, next Going to hoping we've trajectory I'm to for forward pretty is upward number. last not a have backwards from modeling a $X,XXX the eight year, go years. to admirable but seven been

these it So steady customers. we I now to services our doing think, provide kind keep and continue keep for of everything we'll can for to

Rick Nelson

Great. good Thanks a luck. lot and

Operator

last our comes David Whiston Morningstar. And with from ahead. Please question go

David Whiston

Good Thanks. morning.

if such year, the said worst does you it play some UK, that case lot COVID-related no out UK Brexit there's that I'm do headwind? UK offset it's a nicely. in the the in massive just And recovering it still think the deal causes wondering you next Brexit could On perhaps havoc and of pent-up demand a

Earl Hesterberg

whatever the could what to could it's some be there There cars in steady past marketing just difficulty]. have and -- market [technical lot tend [technical to which very, over when in of is with end there's Well, the of and the is that. the found very, excess EU so [technical disruption of cars part shown car And only U.S. margins you time, UK is UK gone flexible. the service. up they lean is the car is would trade see likely market beauty a occur, new the the strong our in coming UK has the way. channels the isn't very as business. over difficulty]. used to ideal, longer the car There's This me U.S. better. the could Well, the think of no in hard really being potential used into that we by used bit is be UK been can get out, of make any is to that could the have and be in And itself is power car for say the something be UK Earl, The market and and time and difficulty] stuff, that What the the right. stuffed XX% very has the that's the year. see in UK remains disrupted. the again, the I between business distribution like The the at and the And situation we why but And channels which when much new strength UK. disruption UK big to

David Whiston

Okay. permanent eliminations aid And terms there you eliminations guys, from technicians? global in of and -- headcount, any for service of have been

Earl Hesterberg

When we started this, put going to dealerships flat we of technicians made as a -- decision I technicians in guess the our I from we that to trying hourly much rate call could. transition we in it a were strategic productive spirit as to workforce

technicians, So, with them did the headcount replacing And technicians. the we're technicians. flat hourly it process rate of right we reduce in and was now

David Whiston

saying you aggregate, reduction you're in technicians? have net So maybe, a in wouldn't

Earl Hesterberg

Certainly Yes. time, true. over that's

David Whiston

if segment humor? and guess consumers? lot has that the Okay. there's a still of based [ph] an And especially Texas and And you the just pickup -- domain customer, really about about the like I are humor to GMC I'm premium pickup from they in want interested from now manufacturers, see the they of do Do are they hearing this a guys ICE being something wealthy truck? excited in EV Texas startup addition being you

Earl Hesterberg

levels. going They're grade three with GMC different period stores some we the to truck humor four over version roll now have from a Texas, the that reaction year that has first very those out in positive. on of customers Right been the

the of the the So test down will when get true $XX,XXX and into I into $XXX,XXX truck come the $XX,XXX, transacts out one that we think range.

the thing. early ones positive So we were received very

David Whiston

any worried the about cannibalization all [ph]? Triumph Denali Are with you at

Earl Hesterberg

to point. to tell. -- this It's Not early at Not this early at point. too

David Whiston

on quick real have driving pandemic? come service And expect you many business from aren't really because still just service, stores is that your a think for away because consumers the once the that people you of are take that back, staying of miles up the function And or Okay. just pandemic? miles

Daryl Kenningham

a has pay saw basically it we it year What is where Daryl. returned is customer our a to ago. basically business was ago. This where was Warranty was year

it previously was back. see And think trends -- think that had continue, come as see I these I that momentum we'll we we'll So, driven. miles the

Operator

And from Please we have with Rajat an ahead. additional JPMorgan. Gupta go question

Rajat Gupta

coming discussion the There lot the us supply the that's back? a morning. new where how And of tightness does then for you taking is to forward? things expect questions. on of side. supply our to and going Do or Hi, back Could good you come was used the of similar new relatedly of sense you influence -- and Thanks side volumes my how the a continue side on new GPU know, that faster? does give that

Daryl Kenningham

quarter. Rajat this new those expect first is till to been improvement we clear on see we've material that, Daryl. The the side, think not I really any

auction purchases, tried our the we like. On very than with have open, we've our auctions did tried side, to limit to be used inventories lighter been judicious auction what we would purchases. Because once the

for. that of in well are from number You increase as purchasing vehicles saw we as vehicles the increased we're quarter the number trading a of individuals,

total we that's now, the like go. may sourcing certainly We have right had that's the like at feel is And we case. so trade feel auction worst can even place inventory, our that used on an but right off. effect vehicles the And car

a purposeful some So that of is that made. conscious change we've

Rajat Gupta

it. Got the -- to to likely is tuition, like the is get what you're And better pretty you're is that or -- is gotten seeing? it better that or it the of but has rest similar year supplies is it like --

Earl Hesterberg

improves. it think I

And and more the improve, trades. October inventory. to our and going car be assume new to SAAR very going the what we're is car you that's seen, you you've saw As highest can used from best good. And, volumes get that that is

improve. would that expect we yes, so And

Rajat Gupta

transaction AcceleRide. those know you color the you part how Can growth just nice incremental to capture any instead versus done if rate both helpful. expecting sense your to are the it. Got to pretty historically, data able How there, on AcceleRide to Any a what pick you've maybe customers And online, clearly existing versus all store? that Thanks. us mean, your give then be just as if a year-on-year a growth platform with still around? strong incremental the is dissect up have able would that doing many one going business. I you're a been just you've when And -- follow-up volumes just or what small around you of coming of customer drive forward. you

Daryl Kenningham

always higher Daryl AcceleRide through make do is as our easy With our our with been avenue. again. that a us rate us. this XX% customers come we than to customers that for customers AcceleRide, focus possible see close business as Things has is different Rajat, it about to at to

a So because the -- potentially, It's robust an or itself, is us easy tell some what it we to How not. of for tend who year is have we quarters now tool and by exactly much not look continue today? iterative little be improve that, customers we little part I as from there's experience that a our than to a it bigger at better do and business. on better and AcceleRide see incremental today use. expect several piece a that at increased. how you of retailing am line But we it's What where of like to this can sure point. We digital think number put good to are very the I is so our that and incrementality we it hard will looks

Rajat Gupta

much so Thanks luck. enough. Fair good and Understood.

Operator

Earl to the I'd remarks. back that, like for over with any closing turn And call to

Earl Hesterberg

to in fourth today. you call earnings our February. for look Well, forward quarter thanks on updating joining everyone us We

Operator

appreciate We that participation. And your today's does conclude teleconference.

may this You lines great have your a day. time and disconnect at