International Money Express, Inc. (IMXI) Earnings Call Transcript & Summary

Good morning, everyone. Thank you for joining us for Citi's eleventh Annual Fintech Conference, Andrew Schmidt on Citi's fintech research team, with focus on software. Joining me for this session is my colleague Ang Weber on the team. For this next session, it's my pleasure to host the CEO and CFO of IMXI, Bob and Andras, thank you so much for joining us today. Really appreciate it.

Thank you. Appreciate it.

Just a logistical point just to kick off. For those joining us, if you'd like to ask a question throughout the discussion, you could do so using the web portal on the screen or you can e-mail me directly at [email protected] We'll do our best to work the questions in the conversation forward to try to make this as interactive as possible. So I think just to kick it off, maybe, Bob, if you can just give us a flavor for IMXI, maybe spend a few minutes talking about who IMXI is and what you do? You have a sort of a unique kind of very focused corridor player in the remittance space. But maybe you can give us a high-level sort of overview of the company, and then we'll dig in from there.

Sure. I'd love to do it. Thank you. So well, we are a company that is -- and I want to stress the point, omnichannel, we believe that remittances that we're very focused upon, that's our core business and sending remittances primarily to Latin America corridor. And when we talk about the Latin American corridor originating in the U.S., that's driven by Mexico, Guatemala, El Salvador and Honduras. Others are also large, but not quite as large. And I'll detail a little bit more about that and the size. But in that focus, we're omnichannel, meaning that we offer remittances from both retail capture, and we offer remittances online for the consumer to go directly on their own laptop, or on their cell phone using an app. Those wires are all paid. We call them wires or immenses paid on the other side, terminated in country. Sometimes those wires could be, again, omnichannel could be terminated through mobile mailbox, could be terminated in a bank account, could be paid out in cash at the retail location, which that retail location could be a bank or a retailer in Mexico, Guatemala or whatever. Our core business today is retail. And when you think about digital, digital is a really funny word. I mean everything that happens in money across border is digital. It's a question is it digital all the way to the consumer's hand on to their cell phone or is it digital and retail. Digital -- digitalization of the industry happened many many years ago when people used to send packages and send money orders overnight. We're digital in the sense that every wire we send is live and paid within minutes on the other side and actually paid faster than some of the companies that call themselves fully digital. We also, as I've said, have opened or what some people consider to be the digital opportunity, which is online digital, which is a very fast-growing almost triple-digit growth for us, we're originating wires online. Over the years, we've had tremendous growth back in -- when I came to the company in 2009, the company was a relatively small regional player. Today, we're clearly the top brand in the world top company of the world, sending money to Guatemala. We almost have somewhere between a 28% to 30% share depending on the month. In Mexico, we have much more than a 20% share, and we would be there shoulder-to-shoulder with Western Union, probably the largest brand in the world sending money to Mexico, Western Union has 3 brands, Western Union, Vigo and Orlandi. So they are probably bigger as a company, but we have the largest single brand sending money to the largest single corridor in the world, U.S. to Mexico. And when you look at the 4 biggest countries receiving money from the U.S. that receive about 75% of the money, that's Mexico, Guatemala, El Salvator, Honduras. We have about a 21%, 22% share to those countries. So we'd be a leader in those countries. We're growing very, very fast in countries like Dominican Republic, Ecuador, Peru, Colombia and others that would be the next tier year of opportunity there. Along with Latin America, we also have opened up the corridors to Africa recently. And where is that sort of a fledgling business for us, it's growing quickly, and we're continuing to expand. There's different language capabilities and necessities there, not only English, but some French-speaking countries. So we're working through that expansion. We've also opened outbound from Canada in the last couple of years. and we're sending money from Canada to Latin America and to Africa. And we have a third-party processing arm of our business where we work with other money transmitters who may not have the capabilities of doing online or even maybe some payers on the other side of the border would like to have an online application. And we utilize the fact that we have licensing, banking relationships and technology to co-brand our online business and offer it to them. So through our core branding today, we also service the Philippines and Vietnam, so we're in the Asia corridor, not directly with our business but with our co-branding. So as we become more pervasive and not just international but more worldwide over time. The way we see the industry is we think that the online digital is very, very important and growing quickly. But we realize that today, the retail business is extremely important, and we've been growing it very, very quickly. Our revenue growth for third quarter was near the mid-20s. That was not a COVID kind of induced because in third quarter of 2020, we had a strong quarter. So we were going against a weak number. So we continue to grow very, very quickly at retail. We think there's still a huge opportunity for us there, along with the digital opportunity online, and we also have a card product that we're building. So with that, I mean, I'll turn it over to you. I don't want to go on too long and turn it over to [Indiscernible].

That's a super helpful overview, and I appreciate it. It's interesting to hear -- I mean, the share and -- the shares you mentioned those figures are pretty impressive. I think my first question is how do you -- I guess we don't think about remittance as a sort of a growth industry, you've been pretty successful in growing pretty significantly and growing our share. So I guess the question is, how like -- what's driven your growth over the past few years? Has it been more agent expansion? Has it been productivity existing agents? What's sort of driving the share gains in your specific in the quarters that you mentioned as a starting point?

Well, I think there's 3 factors that are really different for us. Number one is we have, from a technological perspective at retail were widely thought of by the retailer who is the conduit to the consumer to have the best solution, the best application. It's the most -- it's the easiest to use. It's the fastest it's the most reliable. And so that really helps us a lot with the retailer that prefers our technology. Secondly, we're very customer service oriented. We had an investor recently that didn't trust us on the amount of time we said our customer service took to pick up a call. And he called us and the other competitors that are public companies. And they were all in the several minutes, and we were less than 10 seconds to get a live person on the phone. So customer service is a big part of what we do, and I could go on about all the things we do in customer service, but it's a big. So technology customer service. And then lastly, we have a way -- we don't just go out and the notion of remittances has been ubiquity driven by the biggest players in the industry that said, "Hey, I'm going to have Publix and Kroger's and Ralph, and I'm going to put it everywhere. But the consumer doesn't care about the 10,000, 100,000 retailers that you can send money. They care about the one that's close to them, that speaks their language, understands their culture and gives them great service. So we handpick our retailers like a fine wine. It's -- anybody can make a cheap wine, right? You just grab a bunch of grapes and you shmush them up. But we pick one great at a time. It's like a German [Indiscernible], it's a great wine. And so that's what we do. And so our retailers are incredibly productive because we match them up to the consumer. We know how many consumers there are by ZIP code, and we understand our market penetration by corridor by Zip code, and we pick the right retailers that match that. And so our growth has been attributed to 2 things. One, there has been great growth in the remittance industry lately. And it's been pretty strong industry really since the Trump administration and through the early days of the buying administration. There's been really strong growth double-digit growth, but we're also growing much faster than the market, and we're gaining share. And so it's 2 ways that our company has been able to grow. And today, we went public in July of '18 and our trailing 12, when we went public was about $34 million in EBITDA. And this year, our most recent guidance is in the mid-80s. So we've more than doubled our EBITDA on the way to almost tripling it in just 3 years, and our business has grown dramatically and our profitability even more in that period of time.

Interesting. Maybe you could just to that effect kind of bring us up to speed more recently, what you saw in the third quarter. Specifically in the retail channel, I mean, we saw some other players that had some difficulties in retail, and you seem to kind of power through it. So I would love to kind of get your perspective on just third quarter results especially as we start lapping the pandemic and what's been driving the performance more recently.

Yes. I mean I would tell you that I was surprised at the lack of success of our competitors for 2 reasons, things are really not that bad. The market is growing. And number two, that they were lapping really weak numbers, which we weren't doing. We really never had 1 quarter last year in the pandemic where we didn't grow year-over-year. Even in the second quarter, when everything shut down, we still actually grew transactions over '20 over '19. But when we got to third quarter of '20, we were growing pretty strongly. So we -- We had 25% growth thereabouts, lapping a number that was actually pretty decent in the teens growth number last year. So it's hard to determine exactly why and I'm not in any one's company, but anyone else's company. But if you ask me to speculate, I would tell you that people are vacating. Our competitors are kind of being me too that are retail-oriented and have been retail-oriented to 3 public companies. And they've done it too early, and they want to look like they're digital because they think that's where the market is growing, but there's still a huge business today we could talk about what the markets may be moving digital. And we're -- we believe in omnichannel, we're spending millions and millions of dollars to grow our digital from the online perspective. But today, 80% probably or more of the money that goes to Mexico is sent through retail locations. And it is something like that number was 95% last year. it was probably 83%. It's moved very slowly. If it's melting, it's melting at like 33 degrees, not at 70 degrees, so okay if it's melting, it's melting really, really slow. And we're the company that's really and really tied in the ice. So it's going to melt a lot of layers before it gets to us. We think there's a huge amount of growth to the retail that will fuel our company with this $85 million plus that we'll make this year will throw off free cash of $45 million to $50 million that really creates the opportunity for us to invest in online potential acquisitions, all kinds of other things. We're not walking away from that. We're doubling down on that opportunity while we're also doubling down on the digital. But everyone else seems to have vacated retail, the public companies. The small guys are still there at retail, and we're competing with them a lot, the privates, but the public companies have sort of vacated it, and that's just made a clear path for us to even be more dominant in retail.

That's interesting. That's good to hear. Yes. in site selection is very important. I mean it's a good point you bring up in terms of like quantity of quality from a productivity perspective. And how the consumer chooses isn't necessarily always price that might be more convinced to like depending on what's close to them as well exactly in trust?

There's a lot to the quality of the product. I mean, we are always at the higher end of the pricing chain. And we believe we're value added. We believe the money always gets there on time. You've got great customer service. We've got a great agent and we believe that -- we don't believe that it's a commodity. People think it's a commodity that are not in the industry for the guy who toils all week long picking oranges in Fresno, and sending money well takes care of his family. That's not a commodity. That's the lifeblood for the family, and he wants to have the very best service possible.

I'd love to take your brain on migration trends because I'm wondering if what's going also is maybe -- have we seen step-up in immigration in terms of South-North versus East-West maybe. And that's what's also helping the late quarter, meaning like during the pandemic, we've seen more migration from Latin America to North America, and that's also helping. I'm just curious on your perspective, maybe we're at it, but what you're seeing from a migration trend?

Yes, I mean I think there's more migration. I think that many of the -- when you have typically people that are refuge migration, they're going to be less likely to be customers of remittances than people that have been organized crossing of the border to make money to provide a better standard of living back home. So people that pick up in the entire family comes then there's really less or no one to send to, right? So they become less remittance customer. I think some people that are coming across the board are going to be single men or single women that are sending money back home for families. But I think the consistent migration that's happened both people with the proper visas and many people that are undocumented are really the lifeblood of remittances. And that customer is a person that typically is coming over by themselves, not with a whole family, and they're coming over and they're coming here to work because they can make $500, $600, $700 a week and they can only make $100 a week at best in Mexico or maybe even $50 a week. And they're providing a better standard of living for their families. They're not always trying to stay in the U.S., and that migration has continued. I think the border being eased a little bit more now makes it easier for those folks who tend to come across and want to work and send money home. And by the way, people that have these work pieces and working more and more with people like that. There's more and more documented. And those folks are really organized. I know a person that has a construction business in Cleveland, and they have a group of people and they kind of shut down in Cleveland from around December until March. And they all go home and they love it. They go in for the holidays, and they have 4 months at home, and they come back and they work 8 months a year in Cleveland and they work and they spend money all. And it becomes a lifestyle and a pattern to create a better life back home where men will do that. Typically, the male would do that for 10, 20 years to create a certain standard of living back home and then may be able to go back home and retire or do work back home to be able to support themselves.

Right. And then helping to also drive your growth in the last quarter was larger average remittance amounts. I guess what was really driving that? And do you see something like that continuing? I mean, did you see any sort of benefit from stimulus last year and maybe some dribble into this year at all? And how are you able to grow through that?

Yes. I mean I think the stimulus clearly benefits, there's more money in the economy. Some of it may directly affect our consumers who are on the books working, right? So they got checks from the government, those consumers that we have centers of money that maybe are not directly on the books are also going to benefit because people they may have worked for got a stimulus. So someone gets a stimulus and they say, Oh, wow, we got this extra money, maybe it's time to do the landscaping. Maybe it's time to put the deck finally. Maybe we want to build the deck around the Jacuzzi, whatever, and it's our customer works for these folks. So either directly or indirectly. And it has affected the average principal amount and that's a great thing for our industry because we -- there's an exchange profit that we take changing dollars to pesos, it's standard in the industry. And when there is a higher principal amount that can make a difference of several cents to $0.20 or $0.30 or $0.40 per transaction that can drop to the bottom line. We don't look for it to go back to where it was. Usually when these things happen, they might ease back and pull back a bit, but they kind of plateau. So we won't look for a continued increase. But we're also not really projecting it into our future numbers as strong as it is. We're really conservative about it. At the same time, we don't necessarily think that principal amounts are going to go back $50 less than they are today.

Understood. That's super helpful. And then can we just spend a few minutes talking about digital. Can you talk about how Intermex is looking at digital? And how it's different from your peers? So maybe like how do you define digital? And then are you able to kind of provide a breakdown from there?

Sure. Sure. Well, I think we don't define digital in any particular way. I think there's a lot of confusion about what's digital. Like people don't understand that people they consider digital pay through the same payers we do and some of their payouts are done in cash on the other side so they wouldn't be digital end-to-end. They don't have someone online sending digital and go into a bank account in the receiving countries. So as a result, it's not end-to-end digital, it has a component that isn't. There's -- in a sense, everything we do is digital. I know the marketplace thinks of digital as online, the consumer doesn't have the interaction of a retailer. They're on with their phone or their laptop, typically their phone, typically a smartphone, going on to an app and sending money. The problem with digital today isn't the penetration of smartphones, our customers, if you went out into the fields in Central California, everybody's got a smartphone on their hip. They've had them for years. The problem is bank accounts. And most people in Mexico and Guatemala are not banked in their own country. If they come to the U.S. and many times, they're not documented. Many times, the bank isn't in their neighborhood. Many times, the bank doesn't necessarily want someone who deposit $700 on Friday and draws it down to $0 by the next Thursday. So it's just not the banking fees really rack things up. And they're used to going into the consumer is used to going into a friendly location in the neighborhood. They may stop to get a beer or soda at the end of the day in some stacks. And so they just send their money right then they can cash their check there if they get a check. Many times they're getting paid in cash. So they have to go to the bank and put cash in the bank and then draw it out with the card to send digital. So from our perspective, we think that the retail piece has got a long set of lives still. At the same time, we know that there are consumers that are more and more consumers are getting cards ourselves, we have a card product, and we're doing it payroll for some farms, processing plants where we're now doing the payroll with an intermix card, and we think those consumers, if they're going to go online are most likely to use us online than anyone else. So we believe digital will continue to grow at a much faster rate than retail. But we think today, with the growth there's been in the total market that retail is not getting smaller yet. When you think about growth, it's been in the low 10% to 15% recently year-over-year month by month, we think that retail, in my perspective, and no one can really know, because we don't have an exact split. Even the payers don't know exact split. But I believe retail is staying pretty flat to growing slightly. Most of the growth is going to digital, but it's not yet shrinking at retail. Now when you're at retail against others that are not executing very well, we continue to execute and take share. At the same time, we recognize the big growth opportunity is digital, and we want to be omnichannel. What we've seen is we've seen a large enough sample of customers of ours that have used us at retail and uses online, and some of them go back and forth. And now think about that customer, they would not be a candidate for someone who's only digital. They couldn't use retail, they'd have to go and use a different service. We also see that some customers who started with digital retail go and stay completely digital, but we see actually more customers if they migrate to one, migrate back to retail than digital. So we see this mix, and it's very interesting, and we think that the consumer has to be able to make the choice. The big thing we've always been as a company is supply the consumer with choices. That's why we call it omnichannel. So in the U.S. here today, you can send money with us with cash at retail. You can send money with us with a debit card at retail in many of our retailers. We can ask if you scan the card and you could send it you could come into most of our retailers in cash a check, convert it to cash and then send in cash. On the other side, we pay directly into bank accounts, about 20% of all of our wires are digital on the receive side, where they go directly into bank accounts. We pay through mobile wallets. We pay through ATM machines and we pay over the counter in cash. So what we want to do for the consumer to say, here's the range of products we have. What would you like to do today? I believe there's consumers who have might have a card and could go online. But sometimes you side work and just got paid $500 for side work and it's in cash. They're not going to go to the bank and deposit it and then go use their card. If they're going right to the store that day, they go and send $300 in cash. That's when they go back and forth. So it's a very unclear market in terms of what's what, consumers migrate back and forth. And there are some consumers that will be 100% digital. Some of that will be 100% retail, but a lot that migrate. And we think it's important to be that omnichannel. We just are completing now our updated app for our online. We just invested millions in that app. It's going to launch probably late in December or early in January. We think it's very much upgraded, easier to use, faster than what we have out there today. And we'll be investing millions of dollars next year in terms of promotion to drive people to our online. So we're definitely in the online business. But we definitely want to make sure we continue to gain share at retail. Because we think there's a lot of legs left there and a lot of cash to be pulled out of retail. A lot of consumers to service properly there.

Can I dig into that comment you made on the retail business for a second? You said retail, in terms of just share of the over market is staying, let's call it, flat, the cash-in portion. What drives that? Is it immigration trends? Is it economic growth?

Well, let me be clear first what I say. I'm not saying it's the same share. What I'm saying is year-over-year, it hasn't shrunk.

It hasn't shrunk. Okay.

So on a decreasing share, I believe, but the share isn't decreasing fast enough for it not to be bigger this year at retail than it was last year. I haven't seen that yet in my mind. And your second part of it was what has caused that, I guess? Was that...

Right. Correct. What's causing it to stay sort of neutral versus decline?

I think that it's a very reticent market to bank accounts, and that's really the issue. You could -- I mean, the digital piece is not something easy to convert people too. I mean -- and the example of that is look at the companies that have gone public recently and they do the same revenue we have and they have net income losses because it's so expensive to drive consumers to do online because there aren't a huge amount of consumers lined up to do online yet. There's a huge amount of consumers lined up to do retail. So it's a group that's hard to pull from there. When you look at the payback on like, for instance, is a little bit off of your question, but I think it adds some color. When we put up a retail location. We get a payback on that, including the CapEx, we put a machine in there, we get a payback on that 3 to 4 months. And then it's from [Indiscernible] next [Indiscernible] Okay. When you go out today, it costs most people online $50 to $100 to get a consumer, and they're getting a net gross margin of about $4. Now you're not going to need, if that person stays with you at least a year, but maybe 2 years to get a payback on that advertising cost. So there's still this group of consumers that this is what they know. This is kind of where they congregate, I've been out in the -- at retail hundreds of times in my career, less often now. And you see this is where people get picked up for work. This is where they come back to at the end of the day. They see their buddies. This is where if they're going to go watch the soccer game together. They meet and they buy a 6-pack of beer and some nachos or whatever it is, just normal stuff we all do, but it's a social and it becomes almost a consulate in the neighborhood. It's a very comfortable place, language capabilities, all the rest of it. The quality of service is so good. The way that there's ushered through the process versus it being very -- the whole cultural experience, particularly in Latin America, is this connectivity, not this sterile sort of modern day Silicon Valley sort of approach. So they're going to be more resistant. It's a different customer. And I think where the technological part of that is good, the customer service piece of that is not so good. It's hard if you have a problem on most of the digital guys to get someone on the phone where at retail, you could go barrage back to the retailer who then gets the provider on the phone. -- very different one.

Right. So flat growth in retail obviously implies that you're taking a pretty significant amount of share in your growth rates. So who do you -- who are the primary shared owners?

Well, the big share of donors have been the big guys over time. And it's not direct because for instance, the biggest player, I'm trying not to name names, but the biggest player is mostly at supermarkets in large chains that are not particularly effective and aren't in the right neighborhoods. So consumers that used to send there are moving away from those retailers and sending money in the neighborhoods, and we're in those locations. So we're taking share, but it's not like we're head-to-head in the same retailer. They're just going away from the retailers that they provide their service in. So I would say, over time, the 2 biggest companies have been the gist. I mean, look at their revenues overall, what they were 3 years ago as a company what the revenues are today. And you can see, you look at ours are twice as big and theirs might be 15% smaller than where they were. So they're the guys that are shrinking, yes.

Got it. It makes a lot of sense. And one last question for me before I pump it over to Andrew for a question on margins and investments. But since you're in Guatemala, it's interesting to sort of ask this question, the Facebook note announcement, right? Obviously, you're well aware I'm sure you've got a lot of questions on this. The pilot is obviously pay out in Guatemala. And the infrastructure, obviously, the concept is sort of pre-money transfers and the infrastructure is using sort of stable coin-based infrastructure. So in your mind, do stable coins add efficiency to kind of the -- to the money transfer process because wholesale money movement is already relatively low. So just curious to get your thoughts on whether Stable coin actually adds value in terms of like the wholesale money with the process.

Yes. I don't believe that it does, and I'm not an expert on crypto currencies. I think that there's a couple of things. I think the Facebook sort of project and as I understand it the way it to work, the connectivity from a technological perspective is great, but that consumer still has to somehow go somewhere because they don't -- they're not banked. So they have to come out and acquire that currency and they have to load it on it. And so that's the rub always, right? It's always to up. That's the challenge. And I think that's where that challenge will come in. As far as the currency itself, I think that Guatemala is a country where the CONSOL is not widely traded, but it's not a dollarized country. I don't think they have felt like they have an issue. It's a relatively stable currency. I mean, which is interesting that they picked it because there are other countries that have more volatile currencies. But Mexico, for instance, currency has been much more volatile than Guatemala. Guatemala stayed pretty stable over the years where Mexico's has been declining versus the U.S. dollar. And in 2008, when it had its first downturn, it had always been around 8 or 9. Now it's in the 20s usually. So it's really been much more unstable. The CONSOL has been, if you look at it over time, are really stable. So I don't know what problem they be solving relative to Guatemala with the stable currency sort of concept. I think the challenge that they'll have is just how do you get people to load up with that currency. Where do you go to get it. And how do you get it? How do you transfer because the funny thing about these smartphones, there's not anywhere to shove cash in, right? So how do you get that? How do you convert? And it's the same issue instead of it being a card or a bank account, you've got the issue of how do you convert and have load up with the stable currency to be able to send that. And so that becomes a challenge. And whether the consumer looks at that and says, that challenge and that obstacle and all of the things that I know and has been a pattern is worth undoing because I'm not going to have any fee at all. I don't know. I don't believe that it will be widely accepted early on. It could chip away. But I think certainly something we're watching. We're not denying that it's a possible competitor to us in Guatemala. We're the lead company. And I mean they are little company, almost 1/3 of the money that goes to Guatemala comes to us. So it's a big market for us.

Got it. All right. And then Andras, I'd like to pull you in on margins real quick here. I believe that year-over-year margins have come down a bit, but I think that has to do with some cost initiatives that you guys took last year. And just would like to get an idea of how you see margins right now and going forward with the investments that you guys are currently making?

Yes. I think your point on last year is spot on. There was so much uncertainty still at this point last year that we were very, very cognizant of spend, and that's why you see margins -- EBITDA margins a little higher last year than this year. I'd just say that we don't obsess about margins. We're going to make the decisions that we think are right for the business. At this stage of our growth as a business, 17% to 20% kind of feels healthy for us. Absent something on the inorganic side that would change that or we decide to make an outsized investment in digital, but we feel that 17% to 20% is a good spot to be in, but I'll just kind of back up again that it's not something we obsess about to something that we keep an eye on.

Okay. And then in terms of capital allocation, like what's your strategy there? Where would you be looking? Is it geographic capabilities?

Sure. Sure. Quickly, we significantly upsized our credit line this year -- And we also got authorization with the Board on a buyback, and we did that to create flexibility for the business. I'd say our first choice to invest is right back in the business where we're in. We're 36% year-over-year in terms of volumes. That's at a 42-plus percent ROE. So doing just what we're doing is choice # 1. Choice #2 is in the inorganic space or from an M&A standpoint, we do like acquisitions on the tuck-in side, countries that we're already represented in now, but I think we could be more represented in there are some specialty providers that are interesting for us. We also think we could have a high degree of success there in terms of acquiring and making sure that we're providing, making sure that we're providing a return to shareholders. So I think along those lines of doing what we do and more of where we do it, also some outbound providers who are more penetrated in the regions that we're not right now, like we're represented in 50 states, but not as not as represented in the West, and that's a huge opportunity for us as well. And there are some specialty providers that would give us some presence there. And then third, on capital allocation. We'd also -- sorry, I talk on the M&A standpoint. We also look at adjacencies, things that there are synergies from a customer standpoint, from a distribution standpoint, from a technology standpoint in payments and financial services, not as high on the opportunity list for us but certainly things that we look at and consider. But as I mentioned, the first set of -- in the core of what we know and understand, we certainly feel like we have the real high probability in those first couple opportunities that I mentioned in terms of increasing return to shareholders. And the final one that we had is just a return of capital. We have a buyback program now. We haven't levered that up a significant amount, but it's there when the decision makes sense for us. I think we have a feeling we have a strong sense that we can do both a meaningful acquisition and a meaningful buyback. And I think time will prove that out. But hopefully, that gives you a sense of how we think about it.

I appreciate that. We're a couple of minutes over. So I wanted to thank you guys for your time, but I also wanted to give you one last quick moment to give any final thoughts or anything you want to lead people to take away from this meeting.

I thank you guys for the time. We appreciate it. Just for the folks out there, look, we think we've got a company that will continue to perform. Our record has been 13 quarters as a public company and 13 quarters where we've met or exceeded EBITDA projections. We've done 2 beat and raises already this year. We think this year is going to come in strong, and we're looking optimistically towards the future. We think we still have a lot of opportunity at retail that will continue to fuel our tank for our ability to invest in growth in the next stages, which is the digital. And so we think really, really optimistic about the future, and we're happy to answer any further questions from anyone going forward or have any conversations. So thank you guys for the opportunity, and we'll talk soon. Thanks, again.

Awesome.

Thank you, Andrew.

Great conversation. Really appreciate it. Thank you.

Take care. Thanks.