© 2024 Alpha Spread Limited. All Rights Reserved.
www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.
You don't have any saved screeners yet
Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Thank you for standing by. This is the conference operator. Welcome to the RediShred Capital Corp's Third Quarter 2019 Financial Results and Business Update Conference Call. [Operator Instructions] The conference is being recorded. [Operator Instructions] I would now like to turn the conference over to Jeffrey Hasham, Chief Executive Officer. Please go ahead, sir.
Good morning, everyone. Thank you, Savis. I appreciate everyone joining me this morning. As you know, we released our Q3 results, the press release in any event yesterday evening. You'll have our MD&A and financial statements later today for further analysis. I want to sort of start off with just some very high-level view of the business. And then, of course, we'll start to drill down on that. I think for me, when I look at the business, the operations of the business, the service revenue side of the business and the efficiency of the business, it was an extremely strong quarter. We certainly had growth in our consolidated EBITDA in a total manner, and that's really primarily through acquisition. However, when we get into the details of particularly our corporate locations, and the consolidated results were -- from a same-store perspective were heavily impacted by the declines in paper prices. And in fact, you'll note that actually our operating metrics have improved when excluding paper revenue from the mix. So the good news for me, and I think good news for everybody is, as paper prices flatten and then potentially go back up in price, we've attracted more new customers, more new tonnage to the Proshred system, and we should see a positive uptick. So just a few high-level items. Again, our consolidated EBITDA was $1.1 million. That grew 32% over the prior year, again, primarily through acquisitions. The decline in paper prices of 54%, however. That equated to $550,000 in recycling revenue decline in the quarter. So it was a heavy number. And of course, that had a strong impact on our operating income, our operating income being down 21% to CAD 441,000. We would have -- you can just imagine, even if we were at 80% of last year's number, we would have absolutely crushed the revenue and the operating income number for the quarter. So -- and again, we'll get into some details as to our corporate locations and the positive operating metrics there despite the paper. Overall revenue, up 47% for the company. And again, driven by service revenue increases, which were dramatic as well as the increase -- the new acquisitions from North Jersey and Kansas that we conducted over the last 12 months. Overall tonnage was up 2,000 pounds -- 2,000 tons, my apologies, 2,000 tons, not pounds, over last third quarter, so that's up 18%. On a year-to-date basis, we're up 5,000 tons, that's 14%. Just sort of looking at the overall system, so that's all revenue from all locations, both franchise and nonfranchise and from -- we'll talk total. In total, system sales were up 9%, so just shy of $11 million in the quarter. This is U.S. dollars at the moment. Last year, we were just a little bit over $10 million. And that primarily included our Northern Jersey location as the addition there. On a same-store basis, it was up 2%. And again, the paper had a pretty strong impact there. On the 9 months, we're up 16%. And remember, the first quarter of the year, really, if you start last year, in '18, Q2, Q3, Q4, plus the first quarter of this year, very, very high paper prices. And of course, we've gone from very, very high to very, very low. So we were up 16% on total system sales and up 8% on same location. So we're starting to see the real impact of the paper price coming down. When I look at scheduled service, I mean, scheduled -- same-store scheduled service, up 19%. Same-store unscheduled service up 12%. The service revenue is where we wanted it to be. In fact, on the scheduled side, it's more than where we wanted it to be, which is wonderful. Never going to complain about that. And if paper could cooperate a little bit, that would be great. So I'm going to turn this over now to Kasia. I'm going to have her run through the corporate stores in a little more detail as they drive the bulk of our cash flow, and she'll talk a little bit about the current capital structure, and then I'll close it off, and we'll get into some Q&A.
Good morning, everyone. So I'll dig into the corporate location results. And as I did in previous calls, I'll discuss the results in terms of U.S. dollars, so that will eliminate the foreign exchange impact year-over-year. And then, of course, we have to contend with the adoption of IFRS 16 on leases as well, which wasn't applied retroactively to 2018. So I'll speak to the pro forma corporate location results, excluding the adjustments for IFRS 16, and these are also included in the MD&A. So our EBITDA from acquisitions, the non-same-store locations, which included North New Jersey and Kansas for Q3 2019 was $363,000 with a 26% EBITDA margin. And in this EBITDA was also $91,000 of nonrecurring vendor-related consulting fees, and that accounted for 5% of the acquisition revenue and 3% of the total revenue. And the EBITDA impact from the commodity paper prices was a total of $147,000. In terms of our same locations, shredding revenue grew by 7% in Q3 2019 over Q3 2018 and scheduled sales led the growth there. However, of course, the decline in paper prices, which was 54% year-over-year, that resulted in a decline in the recycling revenue of 58% or $275,000. So this caused a 7% decline in our total same location sales of $150,000. And of course, this then directly led to the decline of 23% in EBITDA for same locations, and our EBITDA margin declined to 28%. So given all the volatility risk that we've seen with the commodity paper price market, we've disclosed a new KPI in our MD&A, operating income less recycling revenue. So this measure allows us to assess the operational performance of our corporate locations, and it removes these fluctuations of the commodity paper prices, whether favorable or unfavorable. So in Q3 2019, the operating income less recycling for same locations grew 96% or $100,000 over Q3 2018, and the margin improved by 4 basis points to 10%. So in terms of operational performance in the quarter, it was a strong growth quarter over the prior year. And so we did see improvements in our routing efficiencies. We had flat repair costs over the prior year, and our costs were in line with the expectations. And on a year-to-date basis, total sales were still up 1% for same locations, as the paper price decline began in 2Q, and the year-to-date decline has been offset by the growth in shredding sales. However, we did have some driver shortages in turnover and some increased truck repairs earlier in the year that have not entirely been offset yet by the strong growth in Q3. And as a result, our operating income less recycling year-to-date is down 11%. However, with the investments that we've made in new trucks this year and the enhanced routing technologies, we do expect to continue to see the growth that we've seen in Q3 moving forward. And of course, the focus continues to be on building the scheduled recurring revenue stream and adding new accounts into our existing routes to continue to create more density and efficiency. And one other metric that I was looking at as well was, if you added back the $275,000 decline, looking at EBITDA margins as well, if you were to add back the $275,000 decline over the prior year, our margin would be 37% in the quarter with a 12% growth over the prior year. And I'll just jump into capital management. In terms of capital management, we did complete the private placement of 11.8 million common shares at $0.95 per share during Q3, and that was for net proceeds of CAD 10.5 million. And this resulted in the increase that you will see in the working capital at September 30 to $13 million. And subsequent to Q3, on October 1, we closed on the acquisition of the Chicago franchise. And earlier this month, our lender advanced CAD 6.6 million on our senior facility for the Chicago acquisition. And the term loan here is 84-month amortization period with a fixed interest rate of 3.5%. And after these transactions, the company has approximately CAD 12 million currently for future acquisitions. And I'll pass it back over to Jeff now.
Thanks, Kasia, for walking us through the corporate store locations and the balance sheet. Just before I turn it over to the Q&A side, I sort of want to make a couple of comments because, obviously, not only has paper prices affected us, but it has also affected our competitors. If you look at our largest comparatives, Stericycle had negative revenue growth including recycling and, of course, backing out recycling had positive paper growth. Iron Mountain doesn't do quite as much disclosure there. However, they did make mention of the paper price. We turned this around. I think, for us as a company, we're in a very strong position. A number of the smaller independents are now starting to feel a little bit of pressure because if you're a 1- or a 2-truck operator, these paper prices will take you from cash positive to cash negative. For us, we are still cash positive. And of course, we have the right balance sheet to take advantage of the acquisitions. We have done a very small distressed acquisition in Kansas City just in the last few weeks, again, bought a little tuck-in. Not even material, but I mentioned that because these are the types of acquisition opportunities that I think will present themselves as the paper prices remain where they are. And again, I think we foresee that the paper prices will remain where they are for the foreseeable future. We're planning for that. And if it does recover, it's great for us. And -- but we're going to take advantage of that, and we're aggressively talking to our pipeline -- tuck-in pipeline to go out and conduct these smaller acquisitions and bring their routes into our routes and further increase our route density and further increase our operational metrics. And as Kasia mentioned, operational metrics are -- have been improved over this quarter over last. And we're continuing to further improve our operations as we go forward. A comment on Chicago. Obviously, we purchased Chicago on October 1. Things have gone according to plan. We did plan lower paper prices for Chicago when we bought it, so that's positive. And again, no surprises there, which is good, and these are early days, of course. It was a well-run operation, and it continues to be. So I'm going to turn it open to Q&A. I'm sure there's lots of questions. And we will -- just as a follow up, we'll be working on our usual investor presentation and deck over the next 24 hours and should have that available on our website. So just come back to redishred.com at some point in the next 24 or 36 hours and it should be posted up.
[Operator Instructions] Our first question comes from Nick Corcoran with Acumen Capital.
In your prepared remarks, you talked about a small distressed acquisition in Kansas City. I'm just wondering if you can maybe give a little bit more details on that. Like is it a 1- or 2-truck operation? Or what exactly did you buy and maybe a rough purchase price as well?
Yes, good question. And let me tell you how we did this deal. We didn't buy any of their trucks. We bought one vertical baler, I think, for $2,000 or something. I mean we're talking small. However, they had some routes on the southern end of our Kansas trading zone where we were already going about once a week in any event. So we picked up their clients. The way we did that deal, Nick, is pure earnout. We're going to pay them 20% of the actual revenue earned for the first 12 months. So if no revenue comes in, we pay them nothing. And if $1 million comes in, we'll pay them $200,000. And again, it's a distressed sale, right? I mean their alternative was to just shut it down and liquidate. So -- which -- so at least they're getting a little bit of potential value on that. So I really don't know other than my estimates, it's probably about $50,000 in revenue. So again, it's filling in a route. For me, that's -- those things are very, very accretive. So a very small acquisition, not material, of course. However, there are others out there, Nick, just sort of on the follow-up there. There are others out there that are 1 and 2-truck operators, doing anywhere from $200,000 to $500,000 a year. And they are feeling this pain more so than others. So we're hunting for those, and we'll continue to hunt for those and continue to talk to them. And there has been a little bit of uptick there from -- in terms of conversations and in terms of my pipeline, getting a little bit more of that type of deal. So that's positive. So I'm sure you liked how we structured that deal. There's no risk to us.
Yes, it sounds like a great deal. And I guess what I'm just trying to think of is with paper prices depressed, how long it will take to push some of the smaller players off the edge and put them in a position where you could potentially acquire them?
Yes. We're going to market now. I mean, we've given them, I think, a little bit of time now. And you don't -- it's always that game, right? You don't want to go to them too soon because you just -- you have to -- unfortunately, they have to feel a little bit of the pressure that the paper prices have caused. A lot of these new guys haven't been through this cycle. In the investor presentation I'll be putting out, I'm going to provide some more color on the last 10 to 12 years of paper prices and where it's been. This is my fourth downturn. This is the best position RediShred has ever been to take advantage of this downturn. And not just from an acquisition perspective, but from a schedule -- building our scheduled service perspective, building our purge revenue and converting that. A lot of independents have often sold based on price. And that's never been the way we've sold. So again, we can -- depending on routes, we can be pretty competitive on the purge pricing and convert. So there's a couple of different ways to apply pressure, and we will. And it's logical, right? If you've got capacity on a route, we may as well fill it. And that's what we're going to do.
Absolutely. That makes sense. And then maybe just talking on paper prices. What are you seeing right now? And do you have any update on what the drivers are and what might cause paper prices to turn in the next couple of quarters?
Yes. No, I wish I had that crystal ball because I'd be playing in that market. But look, the -- there is still obviously a lot of headwinds. China is -- and U.S. do not have a trade deal yet. That could help turn it. There's still an oversupply out there just because with the mills that were down, there are mills will take -- China take it, and they couldn't take it. And so those mills are now coming back online. So that's a good signal, which is good. And they are building. There's a couple of mills being built, but that takes 12, 18, 24 months. So there's a little bit of that. And of course, when virgin pulp paper prices are also depressed, then the processors have a choice between do they use virgin or do they use ours. And so there are a little bit of signals that we're at the bottom of that market as well. So that's good for us, too. So we're monitoring this, and there is sort of a mixed feedback. There's some folks -- every day, I get something different. Oh, we think it's bottomed out and they come back and then you get, hey, another mill has got oversupply. So we're getting mixed signals, but it's certainly better than the signals that we were getting 4, 5 months ago that paper prices were certainly coming down and paper mills were shut and all of that. And that's why there was some urgency 4, 5 months ago from us, just we really put in a lot of effort and energy into looking at every single route and every single customer and where are they and how are we servicing them and we knew this was coming, so we looked at our operations and looked to improve how we do it. And that's why some of those results are showing up.
Then just one more question for me before I pass the line. I'm just looking at the EBITDA and EBITDA margin. I was just wondering if there's any onetime items other than paper prices that might be affecting margin in the quarter.
So only thing, as Kasia mentioned, is on the non-same-stores, there was some transaction transitional costs, onetime nonrecurring that would be embedded in there. And then that made up for, on the non-same-store, about 5%. So like anything, when you do these acquisitions, usually in the first year, you have a bit of nonrecurring items. On the -- and one thing you'll notice in our MD&A, you'll see that today, we have our now normal bridge charts. And the bridge chart in the first couple of quarters indicated repair and maintenance costs and some driver turnover challenges. Those have been -- you'll notice -- and you'll note in those charts, those have been now rectified or stabilized, if you will, and really paper was the driver of the variance.
Our next question comes from Maggie MacDougall with Cormark.
Switching gears, I was wondering if you can comment on your same-store sales growth. Despite the decline in paper pricing, it was extremely strong. And I was hoping you could provide a bit more color in terms of what is driving that? Is it -- are there particular regional trends? Or is it more so related to your efforts on the sales and marketing front generally?
Yes. Great question. Thank you for that. And I think there's a couple of factors out there. Certainly, we like to think it's all us, right? And there are things that we've been doing over the last couple of years that I think have -- are helping us, particularly on the scheduled side. And I want to break this up into scheduled and event-based. And obviously, we know scheduled is the gold for us and really getting our clients that have called us up for the onetime purge and getting them into our CRM and, at some point, converting them to scheduled, number one. Number two, we have outside sales people in every one of our corporate store markets. And so their objective is primarily to get scheduled sales. Also in this last quarter, we just started working with a couple outbound teleprospectors here in Toronto. And their job is -- now that they're trained, is to just drive calls to new customers, potential customers and old customers, and again, look to convert them into scheduled service. So that's on the internal side, the things that we are doing on the scheduled side. I think we're also seeing a little bit from our competitors, particularly our largest competitors, where, again, their migration from an on-site model to an off-site model does create a little bit of churn in the market. And of course, when they do their Google search and they find us, we're an on-site provider. And again, that's more on their smaller customers, probably less so now than it was, say, a year or so ago when that change was really being driven. I think that change is now more or less done.On the purge side, we didn't see quite as -- we saw good growth, but we didn't see quite as good growth. And what we're seeing out there is purges are smaller, smaller in nature. They are more in nature, more -- and I think as we're targeting small, medium-sized enterprise, they're going to have smaller purges than large organizations, and that is our target market. We're also -- we just revamped our websites. Our marketing team redid our website, and we've seen an uptick in leads. And in fact, we've seen a little bit more residential. And those tend to be smaller as well. However, we like taking those too. So I think there's a bit of -- there is a little bit of -- there's some internal stuff that we've been doing, and there's also some external factors where a smaller customer is not happy about moving from an on-site service to an off-site, and we pick up some of that churn. Does that answer -- does that help answer the question, Maggie?
Yes. And then the other question I had, I think, might refer back to some of Kasia's prepared comments. And I apologize if you provided the information, I just -- I think I may have missed it. Did you give us an idea of the impact of the decline in paper prices? In other words, what would your consolidated EBITDA margins have been or some other metric to give us some sort of perspective in terms of the impact of that?
Absolutely. So what we're going to do. Yes, Kasia, yes, we're going to provide supplemental information in the MD&A, but I'm going to let Kasia answer that question for you.
Thank you. Sure. Sorry, I know I threw like a ton of numbers at everybody, and it's hard to keep up with that. I have it -- what I had mentioned was strictly for the corporate locations, but in the MD&A and financials, hopefully, you're able to find sort of the consolidated figures. But the impact on the same locations was $275,000 of decline. And so looking at same store EBITDA, if we were the same paper prices as last year, so adding back the $275,000, we would have had a 37% margin with 12% growth year-over-year. And then, of course, there's no year-over-year variance on the acquisition EBITDA, but there is some impact on the paper price there as well, and that was around $147,000 on the acquired EBITDA. And this is in U.S. dollars.
[Operator Instructions] Our next question comes from Devin Schilling with PI Financial.
Just looking to see if you could provide a bit of an update on your guys' deal pipeline here looking forward and just kind of how you guys are looking for future acquisitions, whether you think they're more likely to come from, I guess, corporatizing existing franchisees or through some potentially new acquisitions from some new independents?
Yes. Thanks for that, Devin. No, we're going to -- it's going to be a combo. I think there's a couple underlying things with our franchisees, namely length of service in the business, number one. Number two, their age. And number three, those that have been in the business longest and are the oldest have created very good businesses, businesses with strong scheduled revenue, businesses with volume, businesses with multiple trucks, businesses with good management in place. So there's a number of franchisees that are sort of at that -- sort of look at the demographic and their age or sort of, you know what, and being potentially close to renewal. That pipeline is good, and we continue to work that pipeline over real hard. And so you can imagine, I spend a lot of my time on those tasks. And those are obviously deals that move the needle in a big way, right? Chicago -- obviously, Chicago's numbers weren't in here. But I can't wait for Chicago's numbers to be in here because that was the biggest. But we've got others that are larger. When you look at our MD&A and you see the location lists and you look at where -- how long they've been in the system, you'll -- those that have been in the system the longest are the ones we're talking to the most and the ones that are strong in the development pipeline. On the tuck-in side, that's starting to redevelop again, just -- and I think that's really a function of the paper prices. So again, we did that little deal in Kansas, and that was just someone we've been talking to for a while and a friendly competitor, if you will, and we got them. And I've been seeing a little bit more activity in my pipeline there. And so we're going to -- I think over the next 6 months, my prediction is paper price is going to stay. Unfortunately, they're going to stay where they are for the next little while. So we're getting more aggressive there. And so my take on that is there will be more -- hopefully, more tuck-ins as they feel the pressure of paper price.
Yes. No, that makes sense. I guess, also, with the current low paper price environment that we're in right now, is this changing how you're looking at potential new acquisitions, I guess, with regards to revenue mix? Like obviously, Chicago was more heavily weighted to service revenue versus recycling revenue, but is that something you'll be looking going forward?
Absolutely -- you're absolutely right. I mean that's the thing, right? So if an independent is, again, more purge, they're going to have more paper, which means their value is not going to be very good. That's just the reality of it. So if they want to sell, then first of all, their value is not going to be very good. And then their earnout is going to be heavy, right? That's just the logic of it, right, where if you're more scheduled, your value is still going to be okay, but paper still plays a role in that. Like paper, for a lot of these little guys, is the difference between making money and not making money. I mean, we can even see the impact on our business, right, of what paper has done. We're just fortunate that we've gotten to a certain size and certain scale where we'll keep going. We'll keep making -- we'll still keep producing cash. For a lot of those little guys, they're not going to be producing cash. And I know they're not. I've spoken to enough of them that I know they are now whittling into savings or the like. A lot of them who priced lower, now are no longer pricing low. So there's some market dynamics that are going to favor us, both from selling the service and, of course, doing the acquisitions and doing the acquisitions more on our terms than on their terms. So I think, again, each deal is different, and we structure these deals to evaluate the risk. And I suspect we're going to have more earnout on most of these, and valuation on these little guys are going to be coming down because they just can't -- they're just notwithstanding this right now.
Yes. No, that makes sense, for sure. Just finally here, you guys mentioned these onetime transaction costs. Do you guys quantify the amount that occurred in the quarter?
Yes. Kasia, I think you mentioned that, yes.
Yes. So in the MD&A, it will be under the corporate locations section. So it was $91,000 for the quarter for the sort of vendor-related acquisition fees. And that was 5% of the acquisition revenue and 3% of the corporate store revenue total.
Our next question comes from Aaron Lanni with MEDICI.
Yes. Jeffrey, I think you mentioned that you've lived through these decline in paper prices in the past. So I was just wondering, how does the industry usually adapt to situations like this? Do you see any pricing mechanisms? Did they offset the drag on profitability through increased pricing? And have you seen that in the industry currently?
Yes. Great question, Aaron. Thanks for joining the call. And yes, look, it's interesting. It sort of varies. But I think those that -- and let me talk about the event-based purge type of sale. Those will typically immediately see price increase. Now for us, we're actually not increasing our prices in that regard because what we want to do is continue to -- we've always been providing that service at a reasonable price. We never really discounted. And we always think of Uber, right? We always sort of do, hey, what is it? If it's a route that's pretty close to capacity, we're charging a premium for that route to get you on it. And if it's a route that's available, we may discount that one. And so that's the way we look at pricing on the event-based purge. On the scheduled side, our largest competitor, Stericycle, did announce that they were doing a paper recycling charge. And that's just been implemented, and I've got a bunch of their invoices because we've already had some clients. So again, we may get another round of churn because of this, because customers hate those little extra charges. And what they've done is they've communicated that while you're losing money on the paper side. I would rather not do that. I think what we would rather do and we will be doing is, we're looking at price increases on our scheduled service, both on new customers and on existing customers that don't have a contracted price or are relatively new. So we're actually taking the exercise. And again, as you know, and you probably know us well enough now, is we take a disciplined approach, and we're going to go through our client list, and we're going to scalpel it out, and we're going to add value. And we are going to add value as a preferred customer, as a scheduled customer, you get a small price increase. The nice thing about that price increase is, well, guess what, when paper prices recover and Stericycle has got to give that recycling charge back, we don't. And so we've always taken a different approach to the market in that we don't like to surprise our customers with these types of things. We charge for the service. And when our cost structure changes and we need to pass the price increase through, we do. And when we don't, we don't. And I think customers appreciate that sort of straightforwardness, if you will. So we've seen that in the past, to really answer your question, where you do see prices going up on the purges. Scheduled, it's a little bit of a mixed bag. The last go around the -- our competitors actually raise their fuel surcharges, the percentages on the last go around. So we'd just -- rather just be straightforward and raise the price and let everyone know that like them, their cost structures, our cost structures have changed.
Okay. Perfect. And just a last question. So your same-store sales, kind of, includes new customers versus your organic sales from your existing customers. So it's that second piece I was wondering about. So if you look at -- let's say, you take your existing customers today and you look at 1 year, 2 years, 3 years of data on those existing customers, are you seeing kind of a growth? Decline? Is it kind of flat? So organic sales on the same customer basis.
Yes. So the way our same customers typically work is, I'll give you a good example. Our average customer is $100 per month. Our average scheduled customer is $100 per month. So typically, we get in there and we put in our containers, and we'll charge them $100. Invariably, we'll get some extra boxes from time to time. So that doesn't change a whole lot. Invariably, we'll do a purge with them every year, 18 months, 24 months. So we'll get that piece of it. If they're a growing business, then we're the call to get the extra container. And thankfully, the U.S. economy is doing well, and there's growth there. We do have a 2% attrition rate. So you'll get a little bit of attrition. And the primary reasons for attrition is typically companies closing down -- bankruptcy and closing down. So our attrition rate is pretty low. So that's -- our existing base of customers is -- once they're in, they're pretty stable. There's not a lot of growth, and there's not a lot of decline. And -- but we're always the first call to get the purge and the extra boxes. So that's how we sort of grab more revenue from the same base.
This concludes the question-and-answer session. I would like to turn the conference back over to Jeffrey Hasham for any closing remarks.
Yes. Thank you so much. First of all, thanks, everyone. As much as paper has been sort of the story on this call from both our side and from the questions, I think also -- I want to remind everyone that RediShred is very well positioned to continue to grow our service revenue. We're very well positioned to continue the acquisition program we have. The operations at their core level are performing well. We're going to continue -- this is an iterative process, so it doesn't stop. So we'll continue to improve our operations. We'll continue to look to be better. I also want to thank everyone for their support over the many, many years, and some of you are new. So thank you for your recent support. And we'll just -- we'll go back to work now, go put our head down and keep working on the business and keep executing. And I want to thank my management team. They've done a tremendous job, and so thank you very much. For those of you in America, happy Thanksgiving.
This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.