CABO Cable One

Steven Cochran Chief Financial Officer
Julie Laulis Chairman, President & Chief Executive Officer
Craig Moffett MoffettNathanson
Frank Louthan Raymond James
Greg Williams Cowen
Phil Cusick JPMorgan
Steven Cahall Wells Fargo
Brandon Nispel KeyBanc Capital Markets
Call transcript
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Good afternoon, and welcome to the Cable One First Quarter 2021 Earnings Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Steven Cochran. Please go ahead.

Steven Cochran

Chad. you, Thank welcome call. and One's quarter first Good to earnings XXXX afternoon, Cable We're as join results. you glad have to us we our review

Before relating to may like involve we that uncertainties. proceed, discussion today's risks remind and contain future to you statements events that forward-looking I'd

any materially call our find differ and earnings and under obligation, its that events in as statements of no during SEC law, obligation results factors statements update filings. is forward-looking can cause whether result Cable today's these disclaims You to expressly actual One by except discussed and a recent or otherwise. future Cable One's required could to from or during forward-looking today's new release alter information, as

certain in Reconciliations this not be financial measures on remarks our comparable today's discussed financial most Additionally, that website directly earnings conformity at release accounting measures principles. U.S. GAAP of presented generally of accepted non-GAAP to the on measures can will include call discussion our in with are found or a

on is that, over our With CEO, Laulis. the Julie turn me let Julie. call me to today's President and Joining call

Julie Laulis

Thank joining us and appreciate We you you, today's call. good Steven, for afternoon, everyone.

of initiatives, is results, companies. Hargray Hargray as into Hargray part provide a teams of our we motivating Cable Cable have begin together. I in I'd process welcome to getting bringing two Resources in to Cable who brings successfully and companies integrating than comes May guiding, Vice new like to the as unique Hargray's us brands. Xrd One fast-paced extensive Human Hargray. She the to Senior family addition culture welcome XXX into also a on Detz closed will high-growth moment President Megan our experience our from of Before insight associates. She The valuable more extremely and leadership team. Megan are colleagues to excited our now are to of who want One acquisition and take One we the of

begin We Steven some before will and acquisition financial events the I'll recap important for by reviewing details to the call. call quarter, full a more get our highlights of over the into performance. on handing the later in from

as opportunity to well X,XXX as Valu-Net has to for we From basis Hargray a On also significant pull-forward have and growth. us quarter residential additional on last penetration basis we delivered figure We In customers sustainable It roughly but industry resilient. of early XXXX, contributed in remained customers, has improved predominantly And revenues was increased the a a that a added quarter growth. and the of first in of nearly residential XX,XXX capture. quarter, has the residential once basis residential year financial about XX,XXX XX,XXX from HSD prior of far versus Adjusted by customer of others again points X.X%, beginning and increased XXXX, available The experienced versus XXXX, long-term XX,XXX compared XXXX more robust adjusted growth far, from customer in quarter now, points whether high-speed record-breaking HSD customer EBITDA margin to XX.X% in first of XX.X%. for March until as sequential come to growth, and July to customers pleased remains EBITDA that the are year the we reflects quarter. have XXXX. an a XX% acquired trend. the XX that so excludes our we XX.X% XXX XXX highlighting in basis Internet XXXX, the customers led increased conjecture year-over-year data to In XX.X%, to still HSD that first XXXX. by growth how is

revert back the trends far year, adds, eventually believe, to continued the reasonable the of and is quarters growth in in stronger it customer While to quarter residential have healthy first second of gains historical will our XXXX. that so customer third HSD of

In of fact, growth our our XXXX. was first customer month April

the surge approximately from Selling product XXXX, customer pandemic XXXX. important increased April with quarter with believe in also remained well as as residential well. as second to additions, XX% as residential adds That than as additions of note, first greater X% increased we in XXXX, fourth XXXX unlimited contributed XXXX single into in our XXX-meg, higher XXXX. growth. higher quarter customers strong HSD month for contributing figures, net not plan of ARPU in Residential demand such this to were provides increased during comparing the of than factors, but pre-pandemic as an XXXX that customer to gauging In that significantly about the migration growth. tier XX% offerings for the entire packages the context speed a HSD download of our far data year-over-year tiers Given vein, other along existing of when data higher of take-rate only quarter

system price revenues As our tiers of to rate our show increase legacy since on a legacy had a XXXX. higher fall packaging began and Valu-Net thanks of taking year-over-year across the at footprint. into start to basis, after about X.X% be divestiture our the Business our And products pricing and area. seasoned X.X% continue positive we extensive we XXXX, reminder, are we the Businesses when this optimistic new on our suite of momentum robust growth to rebounding of associates, haven't with services and growth launched sales our an actually in Anniston reopening network, organic quarter and we acquisition. decreased this account on and

local for partner provide seeking particularly entities to rural of in proactively communities. to team, connectivity with this are government We proud and

gigabits below recently in libraries and the School the access School for delivering Crown construct schools latest customers with grant World network, just to and footprint. than speeds in of Agency partnership Wilton. divide examples. Education a is project committed and per County up libraries. program to residential was the and megabits Cable schools construction to well customers an steadfast a optic illustrate FCC service, network bridging our commitment Arkansas recently five piece to Our of our and high-speed up Arizona across the King just all-fiber larger a for with effort Internet bandwidth speed for a the of five XXX within also Crown King fiber awarded one gigabit to second build, communities Prior deliver This of XX symmetrical County. businesses to broadband our business is in that one Service had Ogden One for in King Connect communities rural $X.X recommendations one will Yavapai Internet of Those Yavapai more our rural Crown to million partnerships

HSD results a as continued of demand strategic that well our partial in data quarter customers the services XXXX businesses reflected minority high-quality also reported of partners. growth our of we business And mind accelerated As These an that are the second customers update, in investments in in keep sequentially as shared XXXX. Hargray but these the quarter commitment quarter for residential in new will our Hargray have figure. be that Also, XX,XXX the included for adds which are approximately first companies and results added as financials. demonstrate in not they net

Turning to our network.

prior capacity, a downstream our continued year. meaningfully at of and the plant our As from utilization result investment targeted expanding improved upgrades

acquisition Despite surge milestone Although over upgrades to acquisition. unprecedented disruptions schedule as expect at original migrated peak ahead the platforms we the recently are gigabits downstream markets. pandemic XX% utilization the future cost towns the operationally all cities that utilization on the One traffic in completed continuing the month, interest months. to synergy as and tool. appreciate plant own. successfully average team that It improved in Fidelity time year, connect usage needs customers. of serves prepared we're rate of our know and associates of did usage worked of the to of diligently at continues several XX%. XX% already not and laid to remained management to Earlier small the our We equity data efforts onto large Recently XXX and we Fidelity remaining Fidelity this our past and estimate the we we just Hargray's met remain from the The with residential year-over-year invest throughout Arkansas of the internal per Missouri Fidelity that to we XX% plan upstream who run Cable our and increased past integration and with of over rewarding most technical associates out steady at is in reached Hargray week, another business we throughout for the Internet we still us

believe X.X fit to Cable while and markets Hargray's service markets same providing inorganic associates X,XXX and now Our for a to across company combined strategy more it XX the Internet with organic We serves million the providing than customers of natural a time growth at states. like-minded Southeast. and platform make commitment more future reliable fast in rural One, than fast-growing

to As have learned prior what our on we excited are build we continues, integration planning acquisitions. from

with closely companies. associates to seamlessly both Hargray to work best combine insight their into our will We practices order gain in

the by reception thus received have very are We far. we encouraged

anticipate over synergies we next annual realizing the approximately in reminder, a years. million rate run $XX As three estimated

eligible place Broadband and footprint, measures megabit we receive work we serve households month off hotspots this XX $XX EducationSuperHighway monthly on for low-income their on provide in have effort we $XX public Benefit help to three helps in current ACA school, which ensure relief up loved and or their including per Internet live broadband to off Alongside land. bridge across communities, K-XX and to connected for the for COVID-XX, program for other months Emergency COVID-XX initiative, proud $XX stay will with customers customers the to impacts providing from FCC's to Through families partnership Wi-Fi access for this bill their are service the first households. our the in feel rental and participate school free in As districts service kept students the program tribal that and a low-income our based to Internet continue states, one, who participating Connect up to the equipment our qualifying to program.

organizations its Chromebooks ever. children greater In providing lack I computers consecutive the help a to XXXX-XXXX the is recently Idaho, Louisiana, for school in need non-profit Illinois, provide and Mississippi, the to COVID-XX and they remains funding. Supporting that addition Arizona, We Xth tirelessly services to our donated a Kids individuals bridge year. measures, schools when year initiative, through Title divide we year support pleased schools XXX Missouri in to this time Texas than our now for Chromebooks by work digital to in as our communities underprivileged families to relief during priority, for are

Fund last grants now, to on we markets, Giving the Charitable launch development. concentrating relief hunger One the month, will of With throughout our literacy, of education Cable areas and non-profit And organizations provide digital and Steven. community

Steven Cochran

Thanks, Julie.

in by HSD quarter divested of we results, revenue generated increased Anniston and have quarter mentioned, X.X% the HSD of sense operations quarter increased HSD first by of first from Meanwhile, organic revenue Revenues prior X.X%, first quarter would we or service quarter grew business business revenue first revenue by $XXX.X Valu-Net's for which customers XX.X% by give revenue the results Anniston approximately operations. in of XXXX as was million which increase. a first $X.X first This year-over-year, increase XX.X% fueled a growth, Residential million, Valu-Net of Julie X.X%. exceptional and residential our total quarter $XXX.X financial results. XXXX increase a exclude our million by million from revenues services To The compared seen XX,XXX X.X%. increased residential year-over-year increase revenue included XXXX XX% when XXXX quarter, a $X.X to year fair were million included administrative and XX% $XX.X prior year $XX in compared for of quarter Operating of excluded approximately to million acquired to first point from expenses Broadband $XXX.X XX.X% year XXXX and to These expenses also was were Hargray, call non-cash Investments' improvement. or million a that were XXXX, in or million the first with the compared quarter revenues included general were the of in quarter, XXXX, prior quarter. were year Valu-Net. basis discussed income XX.X% Mega $XXX.X $XX.X associated $X.X system that expenses to Net in Net Anniston of options, we the compared quarter, XX.X% XX,XXX revenues quarter. the the last adjustment contributed put million and from prior from revenues first gain and quarter of million. in included of Selling, a first a were the the quarter. value XXX income revenues

results to exercised options in Until in increase these fair accounting are to the As a fluctuations or significant any a which from another. $XX.XX or was Net per the subject basis. XX.X% cause resulting their the could basis prior was the financial mark-to-market quarterly Adjusted diluted assumptions options increased GAAP are just inclusive one our to used for the of decrease from fully reminder, year these first income expire, non-cash to gain share I quarter valuation, per could a changes on and million quarter. on mentioned. $XXX.X quarter share, value non-operating EBITDA determine turn

start But we fully of on increased quarter points mismatch. revenue yet our to historically of second increased to of recognized quarter. adjustment XXXX while for impact the EBITDA adjusted of increased decline EBITDA XX.X% another from million the adjusted video basis the and have programming quarter has $XX.X business, totaled Our sequentially year, not the indication timing going which rate XXX XX.X% organic the equates Capital as was diminishing expenditures in adjusted quarter pay EBITDA. first XXXX, XX.X%. until year-over-year first of our despite margin our adjusted the video the We cost fourth from the as EBITDA at seen

notes $X.X CapEx continue During and million was billion purchaser year deducting and quarter the other EBITDA offering the At million XX.X% activities. of and equivalents we free we end, From consisting the notes, loans, of capital $XXX.X $X $X.X net of we due In $XX.X $XXX In and billion increased billion as finance hand lease significant $XXX zero for approximately first quarter, approximately quarter March dividends of liquidity notes million The less cash and of for the XXXX. a invested expenditures in to convertible offerings paid convertible million first due in flow. liabilities. March Adjusted million initial and costs quarter. approximately generate of and $XX.X of on network and from the for expansion prior percent proceeds integration convertible XXXX million after in X-X/X to we XXXX cash our we million cash XX $X.X XXXX, debt million $XXX.X had million were shareholders. discounts of term unsecured quarter $XXX standpoint, $XXX balance was in notes expenses. issued

annualized available million our was Overall, borrowings under debt also netting times our of at adjusted cash-on-hand revolver XX. after EBITDA for March We as X.X against had additional $XXX March debt-to-last quarter XX.

of $XXX this already transaction already proceeds debt-free value proceeds As in with remaining on interest new from on of a Term funded enterprise total convertible The Julie Hargray the from the we mentioned, was cash-free and didn't The XXX% that earlier a week the billion cash we closed approximately acquisition own. of Hargray and purchase B. hand, for $X.X the net including million notes Loan incremental the our equity XX% implied basis.

transactions. B $XXX expense $X.X Chad, available approximately X.X% billion annual on total outstanding we effect current ready the of projected rate to we're financing, and approximately the on being existing with undrawn of million Based weighted million approximately our transaction had a debt, closing years capacity. Term of XX% for $XXX revolver outstanding weighted cash rate is our and in and approximately the debt X.X average rates, after average questions. $XXX duration swap Loan interest million debt LIBOR interest the approximately and the Following of of a giving approximately Hargray now approximately fixed


you Thank very much.

be And the session. question-and-answer begin now question Moffett Please the MoffettNathanson. will from go Craig [Operator first with will We ahead. Instructions]

Craig Moffett

you. Hi. Thank

in growth to doing a actually edge you on that hard a exactly are of, footprint aggressively from that And a questions funds what expectations want all just just for about your are talked is for acknowledge at page for then also any little lot to divide that. what tell how applicants. know digital your potential Julie, a you work And sort Can of but that if so if infrastructure would footprint we close One the expectations and that. outs to it's you're come about peers comment thing. that your get would and I about for One, you then organic indeed second think already the fairly pursuing on Cable expansion, participating talk you government your the for separately I stimulus just you plan? And got thank your JOBS the plan. to I appreciate First see two-related Act could website you've on organically?

you've you what what from you're see just expecting If could prepare. and to to talk done that about

Julie Laulis

do are our in cities Sure. small Craig. these Thanks towns, to recognizing associates large in working hard what and for communities

edge would as don't I what want to are. far I outs, our much know about plans As how divulge

think city telco What about have a we large some that's to you more in really tip the hat there anyone But town another reliable There's that our wherever don't our If robust the consider. place planning something small about another say we if United fits profile would would need be provider. I services. cable think no provider other I if services is States it is edging we service in they want might a out quite there honestly. where is if future for offering co. we're it a it where a Internet isn't more to fiber

is service $XX have crystal since by of will our consider in government. ball people, the paid imagine having As for very scrambled government working EBB people quickly $XX their a a certainly be to of will not while far USAC. the the bill and that obviously, XXX-meg upgrading hard And as service fill who we that mind I bunch the plan of our Keep needs month. yes a

XXX-meg But service easy of because for broadband will service we the XXX-meg hardwired to So be folks first this our will try quite time possible a draw it's our into for either or service. it some people upgrade that quite the service to reliable to opportunity.

Craig Moffett

Thank you.


Frank the And come with question will Louthan go Raymond from ahead. James. next Please

Frank Louthan

walk network steps is you think What, are the Southeast They've where How that they on got the going us you forward? some side? the the necessary? commercial of opportunity next idea territory. think of, outside do with about sort of Can us you Hargray? Great. investment incremental we an through give should Can throughout as an

Steven Cochran


relative on a standpoint an low. So investment is purchase from -- I think pretty from one this price incremental standpoint a

fiber that that is network, the common think I it's a much in alignment a a $XX guessing just incremental a well-invested lot But capital very standpoint player came more from given Fidelity spent is somewhere more from same years. will million part a it's most over they've Commercial few in part background, they for the and technology business, big we're of ILEC network and be the really way of that in did. been commercial always that. important the services that was in a their of a their part

their So commercial the combine One well, -- it's there learn an our as what existing Cable important teams to build excited part really And No. business Frank? done two the we and business question we're there both was then, they've from and another of together.


Frank Louthan

-- I'd the of characterize that what fiber that and mean, thinking they And is your side. for commercial just have that capitalize the on I of are have Well, they the network? outside business? how the the networks on love to much can you fiber part how what

Steven Cochran


network pretty So I deal that's more going a – Georgia, into fiber of over a robust mean, great they Florida. got throughout a have North they've of a --

way past customers to homes presence, us of their XX% Fiber actually Anniston XX% their towards their with acquisition -- from served its are of the Alabama With are the over Home. working Atlanta. increased of

a both standpoint. very and standpoint from a and fiber a it's So network deep residential commercial

making lot under chance So get definitely we it made of to ownership. been time. monetize over they've the definitely been investments and Pritzker feel to we last -- the There's lot investments in over very of the a that fortunate years, few a

Frank Louthan

a I right. their All Thanks running see lot. right. around so. here trucks All

Steven Cochran



next The Cowen. go Williams will be question Please with from Greg ahead.

Greg Williams

taking Great. Thanks questions. for my

Home. is First on Fiber the to question

like some pitch. at indeed few fever of at days these last the are calls, months earnings analyst telcos and it Over seems

on In lesser addition, pretty But much, with funds. PE guys maybe I came much who's vocal more in out know you seeing you then any and question your And federated been last CenturyLink housekeeping. overlaps second And is to Are they with degree. I space? territories a or also overlap about infrastructure the think your Frontier some initiatives. and Friday AT&T, it. aggressive anticipating encroachment

little the SG&A a XXXX? about think comps I volumes remind you your we in sort as Thanks. reopening, pick are in up versus costs me increasing up as XXXX SG&A of bit. the think intensity is Can what

Julie Laulis

I'll Home question. start with the Fiber to the

our largest And we so, footprint pretty much we -- AT&T and CenturyLink. split with do -- our

an than concern. footprint XX% with that's Frontier, that past to with that We XX% the be our have does being XX% -- and the I competitive, mean Fiber have majority an less of have AT&T. is overwhelming of homes fiber. is would our about AT&T overlap not so of Home

how do we know So have against go they where to up AT&T fiber.

but we remaining you on so see sure the speeds And the then quite where we most we've any competitive. other a the carefully. important into to encroachment? marketplace, not We and far. make No, of do believe the service that value. and customers is honestly. providing our track just the anyone ourselves -- part that But customers reliability and community we need turn to that ones neighbors, people track their our and service mentioned focus that's just we coming we then from are them very that that that our the getting means need, associates, And think So

Steven Cochran

of one that largest -- work the in first side, Yes. most to all the million and on related transaction the the as was Hargray SG&A the can the is pull this M&A cost, so quarter. $X.X in as well. happened Q, Greg, from then you around it there of increases And But happened

saw when the first fact higher tied anything health had people lot a COVID-related going other that stop issues. also We last of doctor was really the we with half by about to to quarter cost of the year's which than $X.X second million,

of bit catch-up. a was that so, a And

We was is also actually tied there accrue cost $X.X for bonus accrual in had of million our conversion system year's lot and when quarter, first just first in quarter costs where $X year's to about -- a million that X. lot ERP about this we how April lastly, labor costs was more conversion last a that that, effective to there conversion And higher were compared we tied going. greatest uncertainty our then bonus to that launched

Greg Williams

Thanks the Great. for color.


from is Please, Phil question ahead. next with go Cusick JPMorgan. The

Phil Cusick

Hi, guys. Thanks. Julie maybe May been that has you can go again the far? into that And April there? drivers how so strength. money? What have Is been stimulus

Julie Laulis

I All drivers what? was I drivers. heard know don't of

Steven Cochran

Drivers growth. the April of

Phil Cusick

The April strength, sorry.

Julie Laulis

April. Yes.

Sorry, getting have It the everywhere. what mid-March, from of seen are about but been old, It honestly. let last mean be same up. be Home. quite Phil, I us since to could honestly we've that mean continuing of April quite DSL DSL, hearing from is I'm growth. not has cell-only. my it's play everywhere year, -- just COVID, from also in be it it's and April to literally going. The I to -- We must people the start things coming and it drive could see Fiber continues

is that need need and take that slowing people way need our feels being neighbors. they're need fast a far that a They not network reliable a us network. growth so a We to They needs. of in lot And care down. a of have with they them for people drawn throughput. They network is like

Phil Cusick

plans what your looks you on basic on price And point. prices update us uptake above Can talked like on about that? Okay. the you before

Julie Laulis

On our packaging?

Phil Cusick


Julie Laulis

is -- our meg mean, -- $XX I we XXX had have a not service

Phil Cusick

I'm On… No. sorry.

Steven Cochran

The sell-in.

Phil Cusick

uptake the $XX. On the the -- Thank yes, sell-in above you. the above

Julie Laulis

My apologies.

megs. sold XX% took the in base total year, megs. them XXX first our of of this above XX% in XXX XX% above So subscriber quarter people tiers are Currently,

just current So selling take not upgrading as higher it's tiers, folks well. that's rate but the driving on

Phil Cusick

last expect just Fidelity great. That's into pricing on bit. little you What a you integration that thing, digging Have yet? integration? the do done maybe then And

Julie Laulis

out that saw of exactly have and I expect what We would NewWave. we not done yet,

the One's legacy as same Cable I The ARPUs with the put now. exactly to let happen are Cable Their it ARPU, prices thing the expect right as Ones. prices are that just NewWave's would same and me Fidelity. way. same

Steven Cochran

the Fidelity add they're to growing as is I thing, would And well. only tremendously

we And definitely of a don't so not through anything. have it, to what's fix and will no to but do so need work broken sure. we That's mindset rush for

Phil Cusick

both to of Thanks it. you. Got


from Fargo. Please with The go ahead. will next Wells question come Steven Cahall

Steven Cahall

After for first minority Maybe M&A in a to the expect investments should and front. those growth of M&A pipe, couple some minority the through more acquisitions Thanks. already next few more be and and in few or some Hargray that the we expect about organic to recent investment? opportunities just years already find bets integration, you on the pipeline of the do years, you've next made the

Steven Cochran

keep broadband our we're think that. mean, for open opportunities I we'll looking markets our I so to Well, always deploy for the and of eyes strategy in and rural to balance sheet grow on

clearly with us. large we we got Mega think we've and have with deals what with of Hargray what I have ahead

future, so things more set either and that spend smaller get we'll to acquisitions see we'll tuck-in be would I anticipate scale. the stuff or the are other that that for – investments in in will businesses And up we're on time

So that, both now and look might tuck-in are things substantive tuck-in and to we can things say the for platform that before, footprint fill now both are been have size be bigger is – but somewhat continue our that But at. company our I needless general. Mega to not we'll gaps. to that consider acquisitions so in Hargray added other And added to in to a opportunities both look lot

So we'll continue definitely but those explore to transactions. wouldn't anticipate large

Steven Cahall

being us of fixed help what lot about very we've is from T-Mobile's one gave going or base you investors. your And competitive helpful. threat? We're meg for XXX I heard you mean just wireless above to because as point wireless a fixed you think an XX% and not of market it's see Can contextualize was you data risk. it asked Thanks. getting point one that the whether meaningful incremental a a you see thought then just competitive product whether as

Julie Laulis

really but their customers higher doing, customers see at cellular product are is as will also T-Mobile And backhaul. need their being what rates of to least own friend investment The take they I the in driven they and able data this to close do understand to to clearly in it order care think and need run. very needs the use of own by much stay Certainly, XG provide that long as half will in be I network.

overly our making then eyes in on keep need. and back but and customers sure them focus concerned, the not ourselves So again that providing on what are our turn we

Steven Cochran

say network really the XXX average customer a just as as but important as ability a speed point the gigs to XXX the of of home that of lot as over meg and month, going carrying keep mind, mobile their traffic side our importantly Wi-Fi using in have just over we're I Steve, far And it I'd over already is that networks of networks. the the as our mean their is a most players' usage. supports kind in usage

Steven Cahall

Yeah. you. Thank


from with ahead. [Operator question Instructions] The Markets. Capital Brandon Nispel KeyBanc Please go next is

Brandon Nispel

would difference in your they you What first then been And mentioned the for update expense for from Steven margins Great. elaborate question. more Thanks. either on acquisition? one you. us full – increase expect in Hargray rate on Could from quarter and contribution timing that? EBITDA had the Could the second increase. you the of a the matched? you taking you video year in have Thanks what for been

Steven Cochran

it. Got

annualized their you we I say give guidance what what and give nicely. obviously, back grow go what But continue first will going guidance talked can as is, won't on, we they we to needless don't the to fourth to And in general. on look they're numbers quarter question at contribute being. about So say

that out extrapolate going to could effective into be May you is be. what essentially. done – It X contribution will it's their So

this had of two second second in months full a what sure, I is, half get only them the of we'll back-end more will the expecting a the on the a quarter I'm lot year. on not and we've and a in pull team answer without obviously And of worth. would in months, a lot in this So increase the half say then as cycles with I All unlike just we I would billing month's that synergies and in transaction loaded we a increase first into had have nine And move particular, that it, I basically margins for in got from was Fidelity March we're a a say the speaking. plan year. spread the of we standpoint more rate their Xst comparatively of quarter month's been already synergies would the could the rate work of do half be side mean, really bit we'll gets of time early, place. place next it. worth side on exactly video definitely over very But not little to – it, that you in integrate as executing in rate

So the in quarter, the full in increase of obviously second we'll rate the numbers. have representation that

Brandon Nispel

Great. Thanks.


closing to remarks. Laulis and Julie question-and-answer this conference would for back session. any turn over our concludes Ladies gentlemen, I the to like

Julie Laulis

everyone done associates Thank you, with you. have appreciate for for speaking continue for next want Chad. our us and quarter. to again We thank today's to our for Thank I joining company all our do call, to they look and customers. forward and again you


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