ARB Corporation Limited (ARB) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the ARB Corporation 2023 Half Year Financial Results Presentation. My name is Lachlan McCann, Chief Executive Officer at ARB and joining me to present today is Damon Page, ARB's Chief Financial Officer and Company Secretary. Today, Damon and I will take you through a financial update on the half year results, and I will present an update on the business of sales and operations. During the presentation, questions can be made through the chat box at the top right-hand corner of your screen, you will see a blue circle with a hand icon. By clicking this, it will open a chat box for you to enter your questions. At the conclusion of the presentation, Damon and I will answer these questions. I'll now hand over to Damon to take you through the financial results.

Thanks, Lachlan. I express a warm welcome to all participants on this morning's call. It's great to have you join us. It's my pleasure to present the results for the financial half year ended 31 December 2022. Slide 3 outlines the company's sales revenue and profit before tax and after tax. Both the sales and the profit results are in line with the company's announcement to the Australian Securities Exchange earlier this month released on 6 February 2023. So the left-hand side there, the company achieved sales revenue of $340.9 million, a decrease of 5.1% compared with last year. Noting, however, that December 2021 sales revenue was 26.5% higher than 2020. Sales improved in the second quarter and were in line with last year's second quarter after a 10% decline in sales was reported for the first quarter at the company's Annual General Meeting had a few months ago in October. Profit before tax of $64.6 million, however, declined 29.7% compared with the prior corresponding half. The misalignment with the smaller 5.1% decrease in sales revenues is attributable to lower gross profit resulting from the lower sales level achieved falling straight through to the bottom line and the inflationary pressure on the cost of products sold, along with the inflationary pressure on the company's operational cost infrastructure, a significant portion of which is fixed. Profit before tax represents 19% of sales revenue. The company has implemented a series of small sales price increases over the last 12 months, the effect of which lagged the immediate inflation impact on products sold in the operational cost base, particularly given the healthy backlog of open customer orders. Profit after tax of $47.4 million was 31.2% lower than last year and a little behind the profit before tax result due to a higher effective tax rate with higher taxes being paid in the higher taxing jurisdictions. In terms of sales by channel on Slide 4, the Australian aftermarket achieved growth of 2.7% over the corresponding half year despite ongoing challenges with the fitment of accessories to vehicles with a very tight labor market, and it is difficult to recruit. Workshop fitting schedules have also been disrupted with delays in the arrival of motor vehicles to customers. In the middle of the slide, their export sales declined 8.8% during the half and have reduced to representing 36.9% of the company's total sales. This decline follows sustained high growth. For example, the last 2 financial half years being December 2021 and December 2020, export achieved growth of 39.9% and 36.7%, respectively. We see many companies across all industries holding historically high inventory levels to mitigate against supply chain disruptions during COVID. ARB's export sales were impacted during this half by wholesale customers selling through their higher inventory holdings. In particular, however, the U.S. distribution channel has been challenging, and Lockton will talk to the U.S. results and strategies later in this presentation. The decline in sales to original equipment manufacturer customers of 36.9% was previously flagged to the market. Now the decrease was due to initial order quantities purchased by the OEMs to stock up for new models last year. We expect sales to OEMs in the second half of this financial year to be in line with the second half of last year. On Slide 5, the Board has declared an interim fully franked dividend of $0.32 per share, which represents a dividend payout ratio of 55%. This compares with last year's interim dividend of $0.39 per share, a reduction of 18%. And -- the dividend reinvestment plan and bonus share plan will both be in operation for this dividend and will be paid on 21 April 2023. Slide 6 outlines the company's profit and loss statement. It also highlights sales revenue down 5.1% and profit before tax down 29.7% as discussed on the earlier slide. Items to call out specifically include the 2 line items highlighted in blue relating to the Truckman acquisition. Firstly, a reversal of deferred consideration for Truckman of $13.7 million has been recognized as other revenue; and two, an impairment loss on Truckman goodwill of $13.4 million has been recognized there on the third final row of the table. These 2 items will be discussed in greater detail on the following slides. A particular note, and the key driver of the result for the half is the reduction in gross margin reflected in the materials and consumables used line, i.e., the fourth line in the table, which has increased from 42% of sales last year to 47% of sales this year. This reduction in gross margin reflects the inflationary pressures on the company's cost of products sold and operational cost base, a significant component, of course, which is fixed. We note that inflationary pressure is very recently moderated on some key costs, including freight and steel, which will be reflected in margins after the company works through the currently higher costed inventories on hand. As mentioned earlier, we've implemented a series of smaller sales price increases over the last 12 months, which are lagging the immediate cost of inflation experienced as described earlier. We note on this particular slide that employee expenses grew by only 1.1%, i.e., less than current inflation levels as the company tightly manages its headcount and wage increases. Advertising and other expenses have increased as the company pursues sales growth, both domestically and internationally. Slide 7 provides further background to the acquisition adjustments briefly touched on in the previous slide. Truckman is a long-established Canopy business based in the United Kingdom, which was acquired by ARB back in March 2021 during the covered pandemic. To protect ARB from short- to medium-term trading uncertainty, ARB structured the acquisition consideration around the prospective performance of the Truckman business over the 3 years following completion. The deal allowed for an adjustment to the purchase price to the extent of plus or minus 25% from the historic core sustainable trading levels. Whilst trading levels were maintained in the months following acquisition, the U.K. has experienced a 30% decline in new vehicle supply, reflected in registration numbers of Truckman's target vehicles over the last 12 months, which has materially affected the performance of Truckman. Accordingly, the full amount of the deferred and contingent consideration of $13.7 million has been written back to profit as other revenue as the Board believes it is unlikely this amount will be paid to the vendors and an offsetting impairment of goodwill charge of $13.4 million has been charged as an expense. We note that these 2 adjustments were both noncash items and Truckman remains profitable and cash flow positive. We are pleased that the original owners of the business continued to manage the business assisted by a key [ expectory ] ARB manager who is assisting with the integration of ARB products into the Truckman lineup. Slide 8 outlines the company's cash flows during the year. The blue circle to the right of the slide highlights that the company had $29.8 million in cash and no debt at the December balance date. This is a reduction of $22.9 million from June 2022, a function of cash flows generated from operations, offset by the investments highlighted in red being an increase to inventories of $19.2 million, payments for property, plant and equipment of $17.9 million and the payment of the financial year 2022 final dividend paid during the half of $23 million. Key factors contributing to the increase in inventories were: one, forward purchasing of raw materials to shore up production in an environment where supply chains were disrupted and costs were escalating, two, raw materials and work in progress of new products to be introduced later this year; and three, the inflationary impact on materials and finished goods held at the end of the half. We're currently reviewing our inventory levels with supply chains now normalizing. I'd like to hand over now to Lachlan.

Thank you very much, Damon. We'll move now to Slide 10 and go through a snapshot of the domestic new vehicle sales in the half with a focus on vehicles most relevant to ARB's business. New vehicle supply continues to lag demand across all vehicle manufacturers. Total new vehicle sales in Australia in the first half of the financial year were up 12.7%. As a subset of this, ARB's core business being 4x4 pickup vehicles and large SUVs, we see 4x4 pickup vehicles and large SUVs in the reporting period increased 11.6% and 6.8%, respectively, both below total new vehicle sales. While other large SUVs such as the new Landcruiser 300 series, these increased by 22.8%. Key vehicle platforms to ARB, including the Ford Ranger, the Toyota Hilux and the Land Cruiser 300 series performed well. While there are a couple of underperforming vehicles such as the Toyota Prado and Land Cruiser 70 series that had a weaker 6 months. On now to Slide 11 and a report on the Australian aftermarket. ARB's core store network now comprises of 74 stores nationally, 30 are company-owned and 44 ARB branded stores, which are privately owned. In the first half of the financial year, the domestic aftermarket grew by 2.7% to $196 million, representing 57.4% of total sales. A strong result that reflects a sustained high revenue position post COVID. The committed customer order book remains unchanged from the beginning of the reporting period, reflecting continued healthy order intake. A combination of new vehicle availability and workshop fitting capacity is moderating further revenue growth. Demand for mechanics and workshop technicians across Australia remains a challenge. Most recent data nationally informs that there were 99,000 employed workers in this area for 111,000 available jobs. ARB continues to execute a number of HR strategies to improve our fitting capacity. We continue to invest nationally in both the quantity and quality of our retail sites. Corporately, ARB has acquired sites in Mornington, Victoria, which is an all new site. In addition, we have new developments underway Norbert New South Wales; Bundaberg, Queensland; Launceston, Tasmania; and Osborne Park, Western Australia. These are all new sites relocating from existing ARB retail stores. There are also a number of health -- also a healthy number of sites in various stages of planning through ARB's independent network, which will come to market in the coming years. Today, we'd like to share with investors the investment and passion behind ARB's independent store network, shown proudly through this video with the launch of ARB Cooper's Plains presented by the owner and long-term RV business partner, Mr. Mark Lacy. [Presentation]

Mark’s been with the business for over 20 years, and it's just great to see his passion for the brand continuing and his investment in ARB Coopers Plains. We'd now like to move across to Slide 13 and an update on the export result. In the reporting period, ARB's export sales declined by 8.8% to $126 million, representing 36.9% of ARB's total business. This follows 50.2% growth in the 2021 financial year and 17.4% in the 2022 financial year. Pleasingly, ARB experienced moderate growth of 1.6% in the markets group is Europe, the Middle East and Africa, which is especially pleasing given we've ceased all sales to Russia. The sales result of the European business was a real highlight within a challenging market and one provides us confidence that our U.K. investments are bright for the future with ARB products. Asia, New Zealand and the Pacific region sales declined by 8.7%, largely due to a reduction to sales -- in sales to China. And sales to the U.S.A., Latin America and Canada declined by 15.7%, and I'll be providing further commentary on the U.S. result later in the presentation. Moving across now to Slide 14 and an OE update. The year-on-year success of ARB's OE business is very dependent on the timing of new model launches and vehicle availability. ARB provided guidance to the market of a forecast decline in our OEM business, which has materialized in the 36.9% reduction in OEM revenue to the half. Key considerations in this result include forecasting inventory requirements by the OEMs has been travel some given the fluctuating vehicle availability. This has caused both overstocks and under stocks in their warehouses. We anticipate the year-on-year results for the second half to be consistent with the previous corresponding period. Beyond the current financial year, we do forecast sales growth for the OEM business unit relating to improving vehicle supply and materializing of new contracts. Globally, ARB has won several new long-term OEM business contracts that are currently in the design phase. Pleasingly, some products within these overseas contracts will carry the ARB brand, and there will be more news to come on these contracts within this financial year. Just as a reminder that sales through Ford under the license accessory program are considered aftermarket, not OEM sales to product development, ARB continues to lead the 4x4 aftermarket with innovation and technology in our key product categories. A great example of this is the recent launch of the intensity IQ driving life, which our marketing team has done a magnificent job in presenting to market. And we'll now show you a quick video referencing this. [Presentation]

For those that are interested, getting to an ARB store and have a look at the new intensity IQ driving life's a fantastic product. And look, the ARB engineering pipeline remains full with a number of key new products, product releases due to come within this calendar year 2023. Now to Slide 16, an U.S. update. Despite the result, we remain confident in the long-term outlook for our U.S. business. Unlike Australia, ARB relies on a wholesale distribution part relies on wholesale distribution partners in the U.S. There is no predominant national retailer in the 4X4 aftermarket. In recent times, there have been a number of acquisitions and subsequent business restructuring that has caused a decline to ARBs business from key U.S. resellers that has impacted our results. ARB holds strongly that the demand for our products and brand exceeds our current sales levels. To address this, we have a number of key initiatives underway to support ARB's brand and distribution vision for the U.S. market. Within the calendar year, ARB will launch a direct-to-consumer e-commerce site in the U.S. The site will complement our brick-and-mortar distribution partners while optimizing our brand image, product presentation and online consumer purchasing experience. As previously reported, our third distribution center in Dallas, Texas, is being commissioned and will enhance delivery service to Texas, Central U.S.A. and Central America. Under Toyota's AAP program, ARB products are now available online at toyota.com. Dealers are actively promoting the program and they're offering a range of these products to customers as they finance their new vehicle purchase. More update on ARB's Toyota USA business will be made available shortly. Further commentary on the Ford business in the U.S. is presented in the later slide. And finally, we're very pleased to announce that ARB has acquired a retail site in Seattle, Washington to pilot our first U.S. flagship store. Seattle has been selected as one of our top -- or Seattle has been selected as it is one of our top-performing sales regions today, but is also in close proximity to the ARB USA head office and distribution center. Building plans are currently with cancel, and we expect the site to open early 2024. Moving on to Slide 17 and an update on the Ford relationship. The relationship with Ford Motor Company is strong. Both companies are pleased with the commercial results following the engineering collaboration involving the Ranger, Everest and Bronco. The new Ford Ranger Everest are now visible in the Australian market with strong demand for both vehicle and accessories. ARB had a full lineup of accessories for both vehicles available at launch, a step ahead of our competitors. Ford and ARB dealer networks have been working closely together to support customer vehicle and accessory demand. The program provides customers a Ford backed 5-year warranty of the vehicle and accessories, where the accessories can be financed in with the new vehicle sale. The program in Australia is performing very well and delivering strong results for both Ford and ARB. In the U.S., Ford continues to develop the ARB FLA offering focused on the Bronco and Ranger of platforms. Unlike Australia, safety-critical products require much more engineering work from a compliance standpoint. For are placing consistent orders for accessory products and are becoming an important revenue customer in the U.S. ARB has been working closely with Ford engineering on accessories for the all-new U.S. ranger. Now it's important to point out that the launch of the all-new Ranger in the U.S. trials the Australian release and is due to be in market in the second half of this calendar year. ARB will have a comprehensive lineup of accessories available at launch for the Ranger to be sold through both Ford channels and ARB's aftermarket channels. Ford and ARB are rolling out the FLA program in several key markets internationally. Ford Europe and Ford New Zealand have both kicked off local programs, and both offices are now receiving orders and supplying products to their respective for office. Ford programs in Southeast Asia, South Africa and the Middle East will be in market within this calendar year. Moving on to Slide 18 and an operations update. Further exciting international expansion news that ARB has acquired the pro form manufacturing site in Hamilton, New Zealand. The site, which includes a healthy parcel of land is being developed as a 5,000 square meter expansion to support manufacturing, warehousing and to consolidate the domestic retail and distribution company, but on to one site. The expansion will include an all-new ARB flagship store conveniently located on the main highway connecting Hamilton to Auckland. And now an update on our 33,250 square meter factory in Thailand. The site has been completed on time and on budget. Consolidation of the manufacturing consolidation of manufacturing in Thailand to this site as well as commissioning of new machineries underway, and we're continuous program through 2023. The site will provide manufacturing efficiencies to the business, which is currently run across 5 different sites. There's also providing -- it will also provide expansion capacity into the future as new contracts and products come to market. And finally, as a part of the head office redevelopment, the engineering team now have a new 1,000 square meter center of excellence. The site was completed in December 2022 and provides a state-of-the-art engineering facility, testing equipment, prototyping workshops and secure areas for confidential developments and OEM work. Our 100-plus design and production engineers are now on site, developing our future lineup of class-leading turbo accessories. Now on to Slide 19 and our current focus. The senior leadership team remains focused, remains focused on core initiatives to drive short-term and medium-term performance of the business. Domestically, we will continue to grow the flagship store network by both upgrading existing stores and growing a national footprint. This will be done through both corporately owned and independently owned stores. Feeding capacity remains a key constraint of the business. is focused on increasing the number of fitters within our stores as well as various retention initiatives for fitters currently employed in the business. While we're disappointed with the performance of the U.S. business in the last half, ARB's future in the U.S. market is very bright. We have a strong brand, an excellent product lineup. And with the addition of the e-commerce platform and our trial of the flagship store in Seattle, we're excited to watch the business develop in the next few years. Inventory is a key focus of the operations of the team globally. While we do not anticipate a rapid reduction in inventory levels with heightened focus of the business, improved freight lead times, improved raw material and finished good supply, we do expect to see more efficiencies in inventory over time. In both existing and new port markets, we continue to develop our brand presence and improve distribution channels globally. And finally, on to the outlook. The directors and the senior leadership team are excited about the future of ARB with various key initiatives to support future growth underway and a very capable senior leadership team. We have a strong vision of success for the future within the company. ARB maintains a positive short-term outlook based on the continued strong order book, which is in line with order levels throughout 2022. ARB is focused on supporting export markets as pursuing various market opportunities whilst managing input costs and global supply chain pressures. The Board believes ARB remains very well positioned to achieve long-term success through new product development, expansion of the Australian aftermarket, strategic development of OEM customers in Australia and overseas, increased distribution and manufacturing capacity and the continued development of the senior leadership team at head office through our state offices and subsidiaries and within our international businesses. That concludes today's presentation. I'd like to take the time to thank all shareholders investing investors for joining us online today. And Damon will now move to the questions.

Just sifting through, thanks to those who've submitted questions over the platform, just working our way through them and trying to group them into various groups, Lachlan. I'll hand to you in a moment. There's a few questions around U.S. distribution and our strategy in the U.S. But first up, there's a number of questions around sales margins and when we expect them to improve and what they might look like over the second half of this financial year and into FY 2024. We've mentioned throughout the presentation that we've taken sales price increases. And we've taken sales price increases over the last 12 months. And those price increases take a little time to filter through to our results, particularly with the very healthy order book we still have in place. And we've also mentioned that we have -- we see some cost moderating. For example, freight costs and steel costs did increase at a faster rate than inflation through those, particularly that cover period where distribution costs were often at 3x historical levels. So we've seen steel and freight come back. They will start to filter through to our margins into the second half and more fully into the next financial year. We have $240 million worth of stock on hand. Some of that stock has been purchased at the higher costed values over the last 12 months. and will take some time to filter through on a FIFO basis. So I would suggest that we will see margins start to improve in this second half, and then we should see the full impact of the margin improvement in FY 2024.

I'll take this. There's a question that's come through about the fourth manufacturing site in Thailand. And just as a reminder, there are 5 manufacturing sites in Thailand. We just happened to acquire the fifth site before the completion of the forth site, if that makes sense. But the expansion to the fourth sight in Thailand will allow us to consolidate running manufacturing of some common products across 5 manufacturing locations is tricky. And the extended the size of 4X4, as we call it the fourth manufacturing side will allow us to create efficiencies by taking some of the processes from the sites I, 2 and 3 and putting them in site 4 so that we can get the right products being built in the right place to create those efficiencies.

Thanks, Lachlan. So questions around the U.S., particularly the impact that the restructure of 4-wheel parts has had on the business. Can you comment on that?

Yes. Look, it's 4 parts was acquired by Polaris in 2018 and subsequently sold 5 years after the acquisition by Wheel Pros has meant that they've cut a large part of the business out. So they reduced wholesale from the business, which was an important part of our sales through parts. And we believe the most recent information is they've taken their store footprint from a peak of 104 stores down to between 70 to 80 stores is the most recent information. So on one side, we've lost wholesale distribution, which we're regathering through other partners. And on the other side, we've -- there's been a significant reduction in the number of retail skills 4 parts have in market.

Okay. Look, I'm going to fit for the U.S. ones at yes, some U.S.-based questions that have come through. Has the Toyota USA collaboration officially launched?

Absolutely, please visit toyota.com. Have a look at the Tacoma. You'll be able to see products, -- at products being on that site. I won't go through the list in detail, but you can do your own research, jump online at toyota.com. Shopper vehicle, have a look at accessories, and there'll be obviously a range of products being offered through that site.

What month do you think the U.S. website will be live, I assume that's the come…

Obviously, possibly the person that's written that question has never met an IT person, but we'll call it this calendar year.

Okay. And why is that the right place for the first store? How is the company's brand awareness in the state of Washington versus the rest of the U.S.A.?

Look, Seattle is a great location. We've always sold products particularly well in the Pacific Northwest. It is a strong overlanding sector. There's good money in Seattle. It's a very -- it's a very wealthy city and surrounding regional areas. But our DC is located there as well. So to have proximity to the store to be able to supply the stores products within hours, literally. It will help ensure our customers have a good experience, and we can get products fitted up quickly.

U.S., how many pilot stores will we roll out before potentially moving to a full rollout?

Okay. We're trialing one. We'd like to see how it goes. We'd like to dip our toes in the water and make sure it's successful and make sure that we understand what we're doing. But we believe we will be successful, but we want to get the first one right and make sure that we present correctly to the market, make sure that if there's any lessons on that we take those into further sites.

Okay. Lachlan does U.S. retail expansion impact on existing retail distribution relationships from a retail perspective and direct-to-customer offering?

Look, we don't believe so. Our customer network in the U.S. is reasonably diverse. We've been on the front foot with our key accounts in the U.S. and advise them this is what we're doing. They understand our strategy. So no, I don't believe it adversely affects our partner business in the U.S.

Okay. So I think we've responded to this question. Comments around U.S. sales suggests the sales issues for well parts of Beyond the transition to a new owner and the new owner may not be as strong as support of ARB products through that channel is the primary driver of the change in U.S. strategy to become a retailer and not just a wholesaler, Actually, it's not a bad question. They're all good questions.

Look, the strategies that we're discussing today predated the acquisition of Will pros and our vision for this space predated the acquisition of full pass wheel Pro. So I answer that, no. We're not reacting to that situation. We certainly have a vision of our brand in the U.S. that we would like to take more control of. We'd also like to know what our retail customers think. One of the beauties of the Australian market is that we've got really strong connectivity to the Australian retail customers. They come into our sites. We meet them at chosen events. And that's quite difficult to do in the U.S. when you don't have your own retail outlets. So we think by online channels and via retail channels by having direct access to the customer will hopefully learn to better understand the products and the way our customers are using their vehicles so that we can build design and supply products to those customers more in line with the needs of the U.S. market.

And when you think about the size of the U.S. market Lachlan, their space there to be retailing and wholesaling absolute large population to cover a large market. Okay. There's a number of questions around capital expenditure coming up. And so I might just quickly touch on those. We have -- we've obviously completed the fourth manufacturing site in Thailand. So that capital spend has all been spent through the December 2022. So there's no further cash outflow in relation to that particular site. We do need to set the factory up. So there will be some spend on equipment as we move forward and as we consolidate the operations. We currently have the construction of our head office facility in Kilsyth, Melbourne, Australia underway. That capital expenditure will be approximately $20 million, and that will be incurred over the coming 2 years. We have, as we've announced previously, we've got capital expenditure in New Zealand being incurred for the development of our manufacturing site there. That will be AUD 9 million. And the other significant site we're expanding at the moment is our national distribution center in Keysborough, Victoria, where we're putting another 5,000 or 6,000 square meters of warehousing space and the capital spend for that will be approximately $5 million. So we do have some significant capital expenditures still on the horizon to facilitate future growth. Beyond that, we have a number of stores that are under development. As Lachlan outlined earlier, Albury in New South Wales, Mornington, Victoria, Osborne Park in WA and Bundaberg in Queensland -- plus the U.S. retail site in Seattle. So there is still capital expenditure in the pipeline for the next 2 years, as outlined earlier in my comments. There are some questions coming through about providing some color to some of the information they want to have their Crane's reef today for some coloring. But look, without getting into details, we're hopeful the export business declines have bottomed out, and we will see some stabilizing in the second half of the year. But beyond that, we won't provide any further information on that second half performance, particularly in export. So there's several questions locked on the Australia aftermarket. And what we're seeing that look like in the coming 6 months and 12 months?

Yes. Stable. The demand is as presented, the demand for product is the order intake is good. The supply of product is good. So we're very confident we'll see the business in a good position domestically within Australia.

And the supply of vehicles has now started Yes, we've seen new vehicles, as Lachlan described earlier, we're seeing new vehicle growth, and that will hopefully continue into the short term into the medium term. And so really for us at the moment, it comes back to fitments and the ability to fit accessories of vehicles. So that business will hold where it is and hopefully grow if we can get more fitters onboarding. There's a question about the geographies involved in the new OEM contracts -- of course, Australia, and that holds true. I'll build it this one. The U.S.A. and Europe are the 3 geographies that we have discussions with the OEMs and look forward to presenting more news on that within the calendar year. There's a question I'll read out, given the problem you now have with distribution in the U.S., and I don't think do you think the sales from your new direct tour site through Ford and Toyota and new retail stores to recover the decline in sales by traditional channels.

What I wanted to take the time to point out is that the brand is in a great position. And the sales through aftermarket channels in the U.S. are only as strong as the brand is and the quality of our distribution is. So we will continue to work really closely with our existing aftermarket distribution partners and reinforce that business. We also need to create our own future through distribution channels that we could control. And as we grow and develop the ARB brand in the U.S., we very much are focused on growing both ARB corporate distribution and independent distribution channels.

Just walking through our list here to see what we may not have covered.

I think we've covered most questions.

I think we see a repeat on a number of them. Okay. Well, we might call it there. Thank you very much for everyone's finding attention online today and enjoy the rest of your day. Thank you.