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Hello, and welcome to today's Tyler Technologies Second Quarter 2019 Conference Call. Your host for today's call is John Marr, Chairman of Tyler Technologies. [Operator Instructions] As a reminder, this conference today is being recorded. I would like to turn the call over to Mr. Marr. Please go ahead.
Thank you, and welcome to our second quarter 2019 earnings call. With me on the call today are Lynn Moore, our President and Chief Executive Officer; and Brian Miller, our Chief Financial Officer. First, I'd like for Brian to give the safe harbor statement. Next, Lynn will have some preliminary comments. Then Brian will review the details of our second quarter results and update our 2019 guidance. Then I'll have some final comments, and we'll take your questions. Brian?
Thanks, John. During the course of this conference call, management may make statements that provide information other than historical information and may include projections concerning the company's future prospects, revenues, expenses and profits. Such statements are considered forward-looking statements under the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties which could cause actual results to differ materially from these projections. We would refer you to our Form 10-K and other SEC filings for more information on those risks. Please note that all growth comparisons we make on the call today will relate to the corresponding period of last year, unless we specify otherwise. Lynn?
Thanks, Brian. Our second quarter results were strong as both revenue and bookings growth accelerated from the first quarter. Of course, bookings were the highlight of the quarter as we signed the 2 largest SaaS contracts in our history, one of which is our largest single contract of any type. We're gratified that new clients trust Tyler to execute a high level on crucial and complex projects, such as these. And while it is great to set a new quarterly bookings record, this quarter illustrates, albeit in a positive way, the lumpiness in our contract signings, particularly with respect to large deals. This is our 31st consecutive quarter of double-digit revenue growth as total GAAP revenues grew 16.5% and non-GAAP revenues grew 16.9%. Our core software revenues from licenses and subscriptions grew 23% on a non-GAAP basis, with 16% organic growth. Software license and royalty revenues declined 7.7% as the mix of new business was more heavily weighted towards subscription arrangements. Approximately 80% of the value of new software deals came from subscription arrangements and 20% from on-premises license arrangements. The mix was especially skewed by the 2 very large Odyssey SaaS contracts signed in the quarter. GAAP subscription revenues grew 38.6% and non-GAAP subscription revenues grew 36.5%. Total recurring revenues from maintenance and subscriptions grew 20.8% and comprised 65% of total revenue. Quarterly bookings were the highest in company history at $452 million. As I mentioned previously, we signed the 2 largest SaaS deals in our history, both for Odyssey court suite. The largest was a 10-year contract with the North Carolina Administrative Office of the Courts and North Carolina Judicial Branch, valued at approximately $85 million for several products from our Odyssey suite, including statewide e-filing. This marks our 15th statewide agreement for Odyssey, with North Carolina being the largest of those states. The second contract was a 5-year arrangement with Bexar County, Texas, the nation's 17th largest county, valued at approximately $20 million. The contract includes a broad set of products from the Odyssey suite to create a single integrated solution to advance court, prosecutor, jail and juvenile probation operations. We also signed a new SaaS contract with the Yolo County, California, Superior Court for Odyssey, including e-filing and Modria online dispute resolution. This is the 26th California county court to adopt Odyssey, and is the first new county in California we've added since mid-2016. New business for our ERP solutions continued to be robust during the second quarter. The largest deals of the quarter were SaaS arrangements with Stockton, California, a multi-suite deal for our Munis and Socrata Data & Insights solutions valued at approximately $10 million; Pembroke Pines, Florida for Munis and EnerGov valued at approximately $6.5 million; and the Savannah-Chatham County School district in Georgia for Munis valued at approximately $3.6 million. We also signed notable on-premises license arrangements for our ERP solutions with Campbell County, Wyoming and the cities of Vacaville, California; Kennewick, Washington and Redlands, California. For our EnerGov solution, we signed a significant SaaS agreement with Boca Raton, Florida, valued at approximately $2 million, and an on-premises license deal with Newport Beach, California, valued at $1.2 million. We also signed notable license contracts for our Public Safety and Brazos eCitation solutions, each valued over $1 million, with Colonial Heights, Virginia and Owensboro, Kentucky. For our Socrata Data & Insights solution, significant new signings included the Agency for Healthcare Research and Quality which is a federal agency under the U.S. Department of Health and Human Services, and the city of Grand Rapids, Michigan. In addition, notable customers upgrading to our Socrata connected government cloud solution included the cities of Fort Worth, Texas, and Richmond, California. Finally, for our recently acquired MicroPact solution, we signed a notable federal arrangement for entellitrak with the Export-Import Bank of the United States. Now I'd like for Brian to provide more detail on the results for the quarter and update our annual guidance for 2019.
Thanks, Lynn. Yesterday, Tyler Technologies reported its results for the second quarter ended June 30, 2019. I'm going to provide some additional data on the quarter's performance and update our annual guidance for 2019, and then John will have some additional comments. In our earnings release, we have included non-GAAP measures that we believe facilitate understanding of our results and comparisons with peers in the software industry. These measures exclude write-downs of acquisition-related deferred revenue and acquired leases, share-based compensation expense, the employer portion of payroll taxes on employee stock transactions, amortization of acquired intangibles and acquisition-related expenses. A reconciliation of GAAP to non-GAAP measures is provided in our earnings release. We have also posted on the Investor Relations section of our website under the Financial Reports tab schedules with supplemental information provided on this call, including information about quarterly bookings, backlog and recurring revenues. GAAP revenues for the quarter were $275.1 million, up 16.5%. On a non-GAAP basis, revenues were $278 million, up 16.9%. Organic revenue growth rose from the first quarter of 2019 to 8.1% on a GAAP basis and 7.4% on a non-GAAP basis. As Lynn mentioned earlier, the mix of new software business continued to trend -- continued the trend of being weighted towards subscription arrangements, which puts pressure on our organic growth rate for the second quarter. Our core software license and subscription revenues combined grew organically approximately 16%. Subscription revenues for the quarter increased 38.6%. We added 154 new subscription-based arrangements and converted 27 existing on-premises clients, representing approximately $128 million in total contract value. In Q2 of last year, we added 126 new subscription-based arrangements and had 32 on-premises conversions, representing approximately $32 million in total contract value. Subscription contract value comprised 80% of the total new software contract value signed this quarter compared to 47% in Q2 last year. The value weighted average term of new SaaS contracts this quarter was 6.1 years compared to 3.5 years in Q2 last year. However, the average term of 6.1 years includes the 10-year North Carolina Odyssey agreement. Excluding this agreement, the average term of new SaaS agreements was 4.1 years. Transaction-based revenues from e-filing and online payments, which are included in subscriptions, increased 26.7% to $21.2 million from $16.7 million last year. That amount includes e-filing revenue of $14.5 million, up 13.8% over last year. Annualized GAAP recurring revenues for Q2, which are comprised of subscription and maintenance revenue, were approximately $721 million, up 20.8%. And on a non-GAAP basis, were approximately $732 million, up 21.4%. Our backlog at the end of the quarter reached a new high of $1.4 billion, up 17%. Backlog included $395 million of maintenance compared to $356 million a year ago. Subscription backlog was $599 million compared to $480 million last year, and includes approximately $138 million related to fixed fee e-filing contracts. Our bookings for the quarter were approximately $452 million, an increase of 72.3% from Q2 of last year. For the trailing 12 months, bookings were approximately $1.2 billion, up 16.9%. Excluding the North Carolina Odyssey contract, bookings growth was 40% for the quarter and 8.5% for the trailing 12 months. Our software subscription bookings in the quarter added $18.5 million in new annual recurring revenue, up 153% over last year's $7.3 million. For comparison, if all of our new subscription contracts had been under license arrangements, we estimated that they would have represented additional license bookings of approximately $23 million. We signed 34 new on-premises contracts in the quarter that included software licenses greater than $100,000. And those contracts had an average license of $297,000 compared to 25 new contracts with an average license value of $459,000 in the second quarter of 2018. We ended the quarter with $79 million in cash and investments and $15 million of debt under -- outstanding under our revolving credit facility, which has subsequently been paid off in July. Day sales outstanding and accounts receivables were 125 days at June 30 compared to 114 days at June 30, 2018. The increase in DSOs is primarily related to the timing of milestone billings under several large percentage of completion contracts, resulting in a $31 million year-over-year increase in unbilled receivables. Excluding current unbilled receivables, DSOs were 93 days at June 30, 2019, compared to 89 days at June 30, 2018. Our guidance for the full year of 2019 is as follows: We expect 2019 GAAP revenues will be between $1.8 -- I'm sorry, $1.8 billion and $1.10 billion, and non-GAAP revenues will be between $1.09 billion and $1.11 billion. We expect 2019 GAAP diluted EPS will be between $3.50 and $3.63, and may vary significantly due to the impact of stock incentive awards on the GAAP effective tax rate as well as the final valuation of acquired intangibles. We expect 2019 non-GAAP diluted EPS will be between $5.22 and $5.35. For the year, estimated pretax noncash share-based compensation expense is expected to be approximately $62 million. We expect R&D expense for the year will be between $81 million and $83 million. Fully diluted shares for the year are expected to be between 40 million and 41 million shares. GAAP earnings per share assumes an estimated annual effective tax rate of 10% after discrete tax items, and includes approximately $27 million of estimated discrete tax benefits related to share-based compensation, which may vary significantly based on the timing and volume of stock incentive awards. Our estimated non-GAAP annual effective tax rate for 2019 is 24%. We expect our total capital expenditures will be between $48 million and $50 million for the year, including approximately $23 million related to real estate and approximately $6 million of capitalized software development. Total depreciation and amortization expense is expected to be approximately $77 million, including approximately $51 million of amortization of acquired intangibles. Now I'd like to turn the call back to John for his comments.
Thanks, Brian. We're very pleased with our strong second quarter results and our positive outlook for the rest of the year. We, again, achieved double-digit revenue growth and have now achieved subscription revenue growth of greater than 20% in 49 of the last 54 quarters. Our new business pipeline remains active and win rates are strong, and our outlook for the second half of the year is positive with an expectation of accelerating growth. We are also pleased with the progress of MicroPact and MyCivic during the first full quarter as part of Tyler. Work is well underway with the integration of their products and operations into Tyler and the opportunities in MicroPact's pipeline are exciting. Now we'll take your questions.
[Operator Instructions] Our first question comes from Rob Oliver of Baird.
Lynn, one for you and then one follow-up. Recognizing that there is significant lumpiness in these types of large SaaS deals, you guys have now strung together a bunch of quarters of really strong subscription bookings. And I'm just curious, I know you're not moving your customers one way or another, but whether there is anything you're doing within your sales force to incentivize or otherwise cajole your customers to move this way, whether it be ROI case studies or value or anything else you might be doing in the go-to-market motion to move those sorts of deals along?
Yes. Sure, Rob. It's a good question. I think what you're seeing, too, is a recognition of what we've talked about over the last several years, is how the market has been moving towards the SaaS environment, and has been adopting it seemingly more recently at a quicker pace. As I've said before, the adoptions today versus 5 years ago are significantly different and where we expect to go in the future. I think one of the things we've talked about generally before, perhaps on the last earnings call or 2, is we are taking a hard look at that internally. One of our strategic initiatives for this year has really been looking at this and really focusing on a companywide cloud strategy. That's a significant focus across the entire senior leadership team. It's a broad effort. As you said, it involves looking at things at sales and sales incentives, looking at our products, trying to determine the best cloud optimization, looking at pricing and financial modeling, potential opportunities to cloud providers. So all that we are taking a look at, and we are recognizing the shift. We see it. Historically, we've -- I think you've heard us say we've had mostly a cloud-agnostic approach, and I think that's something we are taking a look at going forward. And I'm probably not going to get into too much more detail at this time, but I think that's something you will continue to see and hear from us in the coming quarters.
That's really helpful. I appreciate that. And then Brian, just one quick follow-up for you. I know there was a lot of focus on the expense side last year and this year. And I heard John in his closing comments talk about how you guys are integrating some of the newer acquisitions. In the large deals that you mentioned on the call, I heard mention of juvenile probation. I think that sounds like that could be CaseloadPRO. Also heard Modria. In terms of those that are already integrated, is this a question of you guys are better positioned now to cross sell? Or is it that these products give you the ability to come in and sort of platformize and go after a much larger type of deal like we're seeing here?
It's a little bit of both. Clearly, after the acquisitions that we've talked about in the past, we typically make investments in those acquired companies. Some of those investments are organizational to position them to be able to scale. Some of those are integrations of the products with other Tyler products. And I think with Modria, to some extent CaseloadPRO and some of those acquisitions that we've made in the last 2 or 3 years, you're now seeing us be at a point where we are integrating them into sales. We are including them in sales like North Carolina and like the Yolo County deal we talked about that include Modria, that include CaseloadPRO for juvenile probation in Bexar County. So yes, we're at a point with some of those acquisitions looking back a ways that now we have a cross-selling opportunity and we have an ability to include them in new deals as well as going back to our existing customer base. So that's part of our strategy. And I expect you'll see that contribute to future growth in a bigger part with the acquisitions we've just made in the last 12 months as we look out towards 2020.
The next question comes from Jonathan Ho of William Blair & Company.
Congratulations on the strong bookings quarter. I just wanted to start out with your commentary around the lumpiness in some of the pipeline. And just wanted to make sure were there any deals that maybe came out a little bit early or pulled forward relative to your expectations? And just how should we generally think about the pipeline of opportunity just given how big this quarter was?
Yes, Jonathan. I will start and maybe Brian, pipe in. I think we've talked about this for a number for years. I think the way I kind of look at it is, our core bread-and-butter business remains very strong. Our competitive position is good, the market is robust. And then from time to time, we get some of these rather large deals, and traditionally, we're talking about the lumpiness when we're coming off maybe a difficult bookings quarter. And I wanted to point out that this quarter, there's a little bit of lumpiness that served us well. But that's just part -- that is also a part of our business, you've seen it over time. We continue to execute on really good mid and upper mid opportunities. And then periodically, we sprinkle in these larger deals. So I think you will continue to see that as we move forward. I don't know that these deals were anything that were -- that's really pull forward or back. The North Carolina deal, for example, was -- has been on our horizon for some period of time. But the exact timing of it would have been Q2, Q3. There is always some movement there. But we have visibility on some of those deals, and I think you can always expect some of those deals to come down the road.
Yes. As you can see, we didn't change our revenue guidance. And so these -- the timing of these deal is generally in line with our expectation. So no big change there. I would say the pipeline continues to have a normal mix of some large deals in it and a normal mix of our more traditional mid-sized deals.
And Jonathan, Q2 2020, I'm going to go ahead and set the stage, is going to be a tough comparison quarter.
Absolutely. Absolutely. And just in terms of the MicroPact acquisition, I mean, should we expect in the third quarter to have a little bit more contribution from U.S. federal government. I just want to understand if there's any sort of seasonality shift that we should be thinking about on that side as well?
Yes, absolutely, Jonathan. So stepping back, I mean, we've owned the MicroPact now for, what, we started March 1, so maybe 5 months or so. We're pleased with the acquisition. Corporate integrations are going well. We've been doing some product integrations. They're generally on plan as we would expect. But as you point out, there's a little bit of lumpiness in their business. Q3 of the federal business is generally their bigger quarter. They've got a lot of number of good deals. We got pretty good visibility. We feel confident. It's the first time they are under our wing, but we like where they sit. We believe they're on plan. But you're correct that Q3 tends to be a little bit bigger quarter for MicroPact.
The next question comes from Kirk Materne of Evercore.
This is Peter Levine in for Kirk. So I mean obviously the 10-year deal was impressive in the quarter, but can you talk about how that deal came into the pipeline? How long the sale cycle was? Because I know in the past you've alluded to colleges aren't really handing out Cobol Engineering degrees anymore. So as governments undergo their own digital transformation or migrating to SaaS, I mean, could we see 10-year deals become the norm?
Well, Peter, it's good question. So I think originally this probably first started hitting our windshield back in 2017. It's a 10-year deal in part -- which is obviously a longer term for our SaaS deals, in part, because it's a state-wide implementation. North Carolina has got over -- has got about 100 counties. It's multiproduct, so we're multi-year. So what you will expect or what we expect to see over the first half of this term is really sort of a ramp-up of getting all those counties online, getting all their products online, getting e-filing online. And then really when you get to year 6, as revenue sort of start peaking out, then it turns into the more of your traditional SaaS arrangement. I will point out, we've talked in the past about our move to try to shorten some of these terms, primarily because the marketplace has been successful in sort of dictating a fixed fee over the initial term. This contract, as you move into the outer years, year 6 through 10, as -- after we get them up running those, those escalations already are built in there. So that's a positive. It's a significantly large deal. To your point about what we can expect in the future, I think it's representative of, as you say, customers moving to digital age, our ability to do multiproduct deals and really part of our Connected Community visions which are really spanning across our divisions.
And then just in terms of the subscription mix during the quarter, you have to look at the composition of the pipelines when you entered. How many of those deals kind of shifted from license to subscription? I guess, the better way to ask that question is, who are your customers using to advise them? Are they working with consultants? Is just an internal decision that they feel comfortable making themselves as they're kind of making this last-minute ditch effort to kind of go to SaaS?
I think it's a mixture. I believe the number is roughly around 1/3 of our deal, there's a consultant involved. Often it's not one of your better-known consultants like a Gartner, a Forrester but consultants who specialize in the Public Sector or the local government arena. So it's not the majority of the deals. And with respect to the mix this quarter, I don't think it was -- it varied significantly from what our expectations were going into the quarter. We expected it would be, even excluding North Carolina and Bexar County, more heavily weighted towards subscription, but with a very strong license deal component in it. And certainly we knew for some time that both North Carolina and Bexar County were going to be SaaS deals. So again that hasn't changed our guidance outlook for the full year and wasn't very different from what we expected.
The next question comes from Peter Heckmann of D.A. Davidson.
Brian, could you give us the acquired revenue for the 2 larger deals, aggregate acquired revenue was somewhat lower than my forecast?
The aggregate -- so the revenue in the quarter for which deals was that, for MicroPact and Socrata?
Socrata. Yes.
Okay. Hang on just a second.
While you're looking through that, another question maybe for Lynn. Are you seeing any shift in short-term IT spending priorities given the uptick in security breaches at municipalities with Malware or Ransomware? Do you find that there are some clients who were tracking towards buying or make a decision on a product from Tyler or related product and then getting a security -- getting concerned about security and getting -- and that initial procuring gets offtrack?
Yes. I would say -- I don't know that I would say there has been any material short-term uptick. It's certainly an opportunity for us. As you know the acquisition we did last year, Sage Data Services, we see that as an opportunity. We like where we sit with that. It's an unfortunate reality of the business that's out there. And surprisingly, for the number of things that you read in the paper, I think they are even at least that many, if not more, that have not actually hit the public windshield. So it's certainly a -- it's a higher awareness factor. We see that as an opportunity again. And I think we are positioned with Sage to capitalize on that.
And Socrata and MicroPact combined were a little north of $23 million in non- GAAP revenues this quarter.
A little more than $23 million. Okay. Great. I'll follow-up with you with that off-line. It doesn't seem like that math then was the 7.4%. So we can talk about that later. I appreciate it.
The next question comes from Scott Berg of Needham & Company.
Congrats on a good quarter. Lynn, I wanted to see if you can talk about sales hiring and capacity. You guys have historically had great coverage in your local municipalities, whether it's on the city or county level. But MicroPact and Socrata have obviously stretched that, a little bit more federal governments and states in there obviously and some international items, which is representative of that new U.K. contract opportunity. But how do you expand yourselves first to properly address those? Or did you think you already have proper coverage today?
Good question, Scott. I think we've got pretty good coverage right now. When you look at Socrata, their focus before we came in was really more, as we've talked about, the Gov 500, including federal. They maintained their sales force and is continuing to push that in the markets that they traditionally did. What we're able to do is leverage our existing sales capacity with those products as we continue to build out more and more solutions that dovetail with our division product. So it's added extra things to the bags of our current sales people, while also allowing them to continue in those -- in Socrata in their more traditional markets. As it relates to MicroPact, you're right, there's not the same level of crossover. I think their sales coverage is pretty good right now. One of the things that they have been working on over the last couple of years, and one of the strategic initiatives that we liked, is that they really leverage a partner program. And they've been developing that for a number of years. It's really starting to bear fruit. The number of RFPs that are submitted by partners continues to grow. The partner pipeline continues to grow. That's something that they are really going to be leveraging with respect to international sales. And I would expect that sometime over the next 12 months, you may see an international account or 2 that come in that are really the result of their partner program.
Got it. Helpful. And then a small follow-up for Brian. Brian your online payments business had a nice jump over Q1 in the quarter. I know those expectations, I assume, that's all material at least and those expectations were brought in a little bit earlier. Was that all planned? Or was there something unique maybe that spiked that in the 2Q results?
We did plan for those to increase and they did. We also had -- to some extent, we had a onetime pickup from an arrangement with a payment processor that gave us a little boost there. But there was organic growth as well.
The next question comes from Tim Klasell of Northland Securities.
Great quarter. Just first a quick housekeeping one. I know you guys sort of keep track of awarded but not signed contracts. Is that sort of in your normal range at the end of this quarter or was it sort of a buffer below that?
I'd say, generally normal, maybe a tick above normal. But I think that comes just with our size now. Normal is a bit higher than it used to be. Nothing particularly unusual there.
Okay. Good. And then obviously a 10-year term, as you guys mentioned, is pretty long. Is this a trend that you see happening in your customer base and importantly, when contracts come up for renewal? Are you seeing the renewals begin to stretch out a little bit, giving you maybe a little bit better visibility going forward?
Yes, Tim. This is Lynn. As I mentioned earlier, part of the 10-year term is really because it's going to take about half of that to get fully up and running across all the counties and across all our product lines, including e-filing and everything like that. So on the back end of that, as those revenues ramp, it converts into more of a -- I would say, more of a traditional SaaS arrangement. As I mentioned earlier, what's good about this arrangement is we do have built-in escalators throughout the term. I don't think it's a -- I wouldn't consider that to be a norm. Your question about renewals, I think our experience has been that renewals tend to be more on the annual basis.
Okay. Good. Thank you for that clarification. And then MicroPact, obviously one of your competitor service now had a very strong federal court and you guys mentioned maybe some expectations or visibility into that in this quarter. How about selling MicroPact into the state and local governments. I know it's early, but what are you seeing sort of early on, maybe do you have any expectations for next year?
Well, half of MicroPact's business, at the time we acquired them, is state and local, with a bit more of a tilt towards state within that side of the business and about half is federal. The federal, at least in the last year, has been growing a bit faster, but they already have a very healthy state and local business. And we expect that to continue to grow, particularly as we look for opportunities to leverage our existing customer base and introduce MicroPact offerings into that space. So both sides of the business are growth opportunities for us. But even though we tend to talk about a little more on the federal side because that's relatively new to us, they do have already a strong state and local business.
Okay. And will you be rolling that product set out to the broader sales force next year? Or what are the expectations -- or what are your plans there?
Yes. I think Tim, the expectation is, as I mentioned earlier, they have a sales force that knows their -- their federal market knows their state market. They have been working on their partner program. I don't really see this as something necessarily going over the next year, pushing into our more traditional sales force. What I do see is the continued product integrations that we're doing and getting some leverage there. For example, Socrata, you talked about some of MicroPact competitors, that is something that I think is going to be a distinguishing factors. We had Data & Insights to them. And their ability to continue to push out new products based on their entellitrak platform.
[Operator Instructions] The next question comes from Keith Housum of Northcoast Research.
With the new Tyler JAG contracts that have been signed and the Odyssey Courts, the e-filing, would the e-filing assumptions change for you guys going forward? If I think about what we've talked about in the past, I believe it was visibility into that $75 million revenue 3 or 4 years from now. Do these contracts change that visibility at all and your assumption there?
I don't think it really changes the visibility that much. As I said, the North Carolina opportunity has been on our radar for a couple of years. We have a general sense of the overall market, just sense of our perception of our competitive position in that market. I think you're going to continue to see more and more counties, more and more states move to e-filing and mandatory e-filing. So I'd say overall, our assumptions are about the same.
Great. I appreciate it. And then obviously it was a good quarter for you guys, just in general with the bookings. Was there anything in particular with the market that got some of these guys, I guess, over the hump that they were willing to sign the deal this quarter compared to perhaps a quarter or 2 ago?
I don't know that there is anything specific that moves it. We talk from time to time about certain areas of our business, and large deals slip and they come in. We generally have pretty good visibility looking out forward. The timing is always a little bit, I wouldn't say suspect, but always moves a little bit from time to time, which is also why we often talk about the lumpiness of our business and some of these large deals. It's a just a function of our market. And as I mentioned in my earlier remarks, having that core underlying really strong business that keeps us going day in and day out and then sprinkle these large deals on top, it's a good mix.
At this time, there appears to be no more questions. Mr. Marr, I'll turn the call back over to you for closing remarks.
Great. Thank you for joining us today. If you do have any further questions, please feel free to contact Lynn Moore, Brian Miller or myself. Thanks, again. Have a great day.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.