Earnings Call: Q3 2016

Oct 25, 2016

Day, and welcome to the Asbury Automotive Group Q3 2016 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Matt Pattoni. Please go ahead, sir. Thanks, operator, and good morning, everyone. Welcome to Asbury Automotive Group's Q3 2016 earnings call. Today's call is being recorded will be available for replay later today. The press release detailing Asbury's 3rd quarter results was issued earlier this morning and is posted on our website at asburyauto.com. Participating with us today are Craig Monahan, our President and Chief Executive Officer David Holt, our Executive Vice President and Chief Operating Officer and Keith Stile, our Senior Vice President and Chief Financial Officer. At the conclusion of our remarks, we will open the call up for questions, and I will be available later for any follow-up questions you might have. Before we begin, I must remind you that the discussion during the call today is likely to contain forward looking statements. Forward looking statements are statements other than those which are historical in nature. All forward looking statements are subject to significant uncertainties and actual results may differ materially from those suggested by the statements. For information regarding certain of the risks that may cause actual results to differ, please see our filings with the SEC from time to time, including our Form 10 ks for the year ended December 20 15 and any subsequently filed quarterly reports on Form 10 Q and our earnings release issued earlier today. We expressly disclaim any responsibility to update forward looking statements. It is my pleasure to hand the call over to our CEO, Craig Monahan. Craig? Good morning, everyone. This morning, we announced adjusted earnings per share of $1.52 for the Q3, a 6% increase over last year. With unit sales at 17,500,000 dollars SAAR was down 2% in the quarter. While our new unit volumes moved in line with the industry, we experienced new margin pressure due to a combination of lower manufacturer incentives and aggressive sales objectives. Despite these challenges, we successfully reduced our new vehicle inventory levels during the quarter. Our used vehicle business was adversely impacted by stop sale inventory associated with ongoing factory recalls. But despite the challenges we faced in both our new and used businesses, our strong parts and service growth enabled us to hold gross profit flat on a same store basis. In summary, our adjusted results represent another 3rd quarter EPS record and our 29th consecutive quarter of EPS growth. Going forward, we see further opportunities to grow our used vehicle, F and I and parts and service businesses. Assuming a stable SAAR environment, we believe the operational initiatives we have underway will provide the platform for us to deliver modest EBITDA growth in 2017, which will be further enhanced by capital deployment. With that, I'll turn the call over to Keith to bring us through our financial highlights. Keith? Thanks, Craig, and good morning, everyone. This morning, we reported record 3rd quarter adjusted EPS of $1.52 This represents a 6% increase from last year. Adjusted net income for the quarter excluded a $1,800,000 pretax real estate related charge or $0.05 per diluted share. Adjusted net income for the Q3 of 2015 excluded a $21,400,000 pretax gain on divestitures or $0.50 per diluted share and an $800,000 tax benefit or $0.03 per diluted share. Before I get into a more detailed review of our financial performance, I'd like to provide a high level overview of our 3rd quarter results. First, our total revenue for the quarter was down 2%. However, on a same store basis, our revenue was up 1%. The majority of the decline in total revenue is attributable to strategic divestitures we made during the second half of twenty fifteen to realign our dealership portfolio. 2nd, we added leverage to our balance sheet with our $200,000,000 add bond add on in the Q4 of last year, increasing other interest expense by $2,500,000 for the quarter. Finally, we deployed $206,000,000 to repurchase our stock over the past year, reducing our average share count by 15% and enabling us to deliver 6% EPS growth for the quarter. With that summary behind us, let's turn to SG and A. Our SG and A as a percentage of gross profit for the quarter was 69.9%, up 70 basis points from last year. As we discussed on the call last quarter, increased enrollment in our employee medical insurance plans put pressure on our overall personnel expense. Adjusting for the $2,000,000 increase in our benefit plans, our SG and A ratio would have been flat with last year. We expect that the cost of employee medical insurance will continue to impact our SG and A. And as a result, we expect our SG and A as a percentage of gross profit to be between 70% and 71% for the 4th quarter. In terms of capital deployment, CapEx excluding real estate purchases totaled $19,000,000 for the quarter. For 2016, we continue to plan for $80,000,000 of CapEx, which includes $45,000,000 associated with our core annual CapEx plan and $35,000,000 of CapEx associated with recent acquisitions and construction, which will enable us to move out of facilities that are currently under lease. In addition to executing on our CapEx plan, for the year, we have purchased $20,000,000 of previously leased property and $11,000,000 of property for future expansion. We now own approximately 70% of our real estate portfolio, which we believe provides flexibility and long term value for our shareholders. Going forward, we will continue to seek opportunities to purchase real estate currently under lease and acquire properties in connection with future dealership relocations. From a liquidity perspective, we ended quarter with $4,000,000 in cash, dollars 36,000,000 available in floor plan offset accounts, $90,000,000 available on our used vehicle line and $240,000,000 available on our revolving credit line. Our total leverage ratio stands at 3.1 times. And on a net basis, our leverage ratio was 2.6 times, which is in line with our target range of 2.5 to 3 times. Going forward, we are committed to remaining in our targeted range, while maintaining flexibility to deploy capital on an opportunistic basis. With respect to managing our broader dealership portfolio, we are currently in the process of divesting our remaining stores in Arkansas, which we anticipate closing late in Q4. We intend to redeploy the majority of the proceeds from this sale on an acquisition with a more favorable return. Naturally, both transactions are subject to manufacturer approval. Now I'll hand the call over to David to discuss our operational performance. David? Thanks, Keith. Good morning, everyone. My remarks will pertain to our same store performance compared to the Q3 of 2015. New vehicles. Our new unit volumes were in line with SAAR. From a margin perspective, luxury grosses improved. While both midline import and domestic margins declined, the declines were concentrated in 2 of our brands, where we saw lower dealer incentives and aggressive sales objectives. These factors resulted in our new vehicle gross profit decreasing by 7% for the quarter. Despite the challenging sales environment, we were able to reduce our new vehicle inventory by 11 days from last quarter to a 72 day supply on a trailing 30 day basis. Our new vehicle inventory totaled $695,000,000 Turning to used vehicles. Our used vehicle retail gross profit was down 6% due to lower unit sales and margin pressure. Our margins were impacted by the influx of off lease vehicles into the market. While we did not meet our used vehicle sales expectations, we are pleased with our 7% increase in CPO unit sales. We believe there is additional opportunity to grow our used vehicle unit sales, specifically our CPO sales as additional off lease inventory comes to market. Our used vehicle day supply was 40 days, which is above our targeted range of 30 to 35 days. Adjusting for the $11,000,000 of stop sale inventory, our used vehicle day supply would have been slightly above our targeted range. Turning to F and I. Our team continues to deliver strong results, delivering F and I per vehicle retailed of $13.93 flat with last year. We have not seen any changes in the lending environment. Now for parts and service. Parts and service was the highlight of the quarter. We're able to offset the declines in our new and used business with strong growth in parts and service. Over the past couple of years, we have focused intently on growing this part of our business, including building out our leadership team, implementing business processes and integrating technologies to enhance the customer experience. These efforts have resulted in consistent growth in our parts and service business, which continued into the Q3 with our teams delivering 7% gross profit growth, including 7% growth in customer pay and 11% growth in warranty. Looking forward, we believe we can continue to grow our parts and service gross profit in the mid single digit range. Finally, we'd like to express our appreciation to all of our teammates in the field and in our support center who continue to produce best in class performance in many areas. Again, thank you. We will now turn the call over to the operator and take your questions. Operator? Thanks. Good morning. Good morning, Rick. Good morning. To ask you about the GPU, there was quite a divergence that they're from big declines with domestic brands and increases in the premium luxury segments. I guess, some more color around that and your expectations as we push forward? Rick, the way we look at it, as you pointed out, luxury was certainly a positive for us. With a couple of our partners, I'll talk globally when you think about the incentives and year over year how it looks. It's not just a component of hitting a sales target, but it's the dollar incentive. So you could actually hit the dollar incentives this year, but the numbers or the money that they pay out could be significantly lower than prior year. So we've experienced some of that. It's a little bit of both. In some cases, we've missed sales targets. In some cases, we've hit them, but the payouts have been significantly less. Rick, it's Craig. To give you a little more color, the most challenging incentives we saw this quarter were on the domestic side of the business, far more challenging than and for many of the other brands. Thanks for that. Also, I'd like to ask you about the proceeds in Arkansas with that divestiture. It sounds like maybe you've got something lined up on the acquisition upfront. If you could size both of those up, that would be helpful. Yes. Rick, that's correct. We do have something sized up, lined up. We expect to sign the contract on that any day now. The profit from the stores that we're acquiring would actually more than offset the profit from the stores that we're divesting. So we think it's a good value added transaction for the company. Rick, this is Keith. Just from a modeling perspective, the assets that were placed and held for sale during the quarter equate to about $240,000,000 in revenue. And would the acquisition then be similar sized or? Yes. Rick, as Craig mentioned, it will be on a revenue basis, not as large, but on a profitability basis, it will exceed what we're divesting of. Okay. Thanks for that. Also, service and parts has been tracking well above that mid single digit guidance now for several quarters. Any comments on the sustainability of that mix increases in customer pay and warranty? Rick, this is David. We've implemented a lot of initiatives over the last couple of years. And quite honestly, they're not fully out in the field at all locations yet. So we're still in the process of rolling everything out. We're very happy with the progress that we have in parts and service, and we feel that we have a very strong stable base going forward. And if I could ask a final question about October, what you're seeing there. Some of our channel checks are indicating that things may have weakened some in October. The hurricane, because of our location of our stores, Rick, impacted about a third of our business. While we didn't sustain a lot of damage, it was certainly a disruption for a few days to our business. We'll take our next question from Bill Armstrong with CL King and Associates. Good morning, gentlemen. On parts and service, obviously, you had a nice increase in same store revenue. Margins down about 60 basis points. So I was wondering what was the driver there for the relatively soft margins? This is David. It was really pretty stable. It's really just a it's really the mix between internal customer pay and warranty. With our declining used car sales, there wasn't as much internal growth, which we recognized at 100% margin. So that's really what pulled it down a little bit. Okay, got it. And used gross GPUs, you mentioned off lease, more off lease vehicles. I was wondering if you can maybe flesh that out a little bit more. Why would that have a negative impact on your overall used gross profits? This is David again. It really just goes down to the basic law of supply and demand. We've been forecasting it. The industry has been forecasting this influx of vehicles coming. I think we're all seeing it a little bit and we seem to be somewhat in line with our peers as far as our margin depression. And is this because you're converting a lot of them to CPO and CPO has relatively low margins because of the reconditioning costs? We certainly do when you look at a used car sale, we benefit obviously through parts and service. We benefit with F and I and clearly, we benefit on used car margins. Normally, our CPU gross per unit is very good. This quarter, it was slightly depressed. But to your point, we were up 7% in CPU sales. Got it. Okay. Thank you. We'll take our next question from Bret Jordan with Jefferies. Hi, good morning guys. Hi Bret. Good morning. A question on the stop sale inventory. I think you said you had about $11,000,000 in the quarter. What's the flow of the recall vehicle looking like now? Is the airbag part supply smoother? And I guess, are you seeing any benefit in the customer pay from cross selling that recall volume? Jump in. We in some of our brands, when we came into the quarter, we had as much as 40% of our used vehicle inventory on stop sale. We made a lot of progress during the course of the quarter. That number now is in those same stores is down to about 20%. So we're starting to get the parts. We're starting to get the cars back out on the front line. Progress is being made, but it's clearly when you've got a store and you've got that much inventory sitting in your lot, it's going to impact sales. Brad, I'll just jump in with this to your comment on customer pay. We're heavy with Honda and Acura and some of the brands that have suffered and obviously that's why our warranty is up 11%. When we think about a warranty customer coming in, on average, and this will vary a little bit, but recent trends, we're typically upselling that customer a little over $100 a repair order on that warranty ticket. So customer pay is benefiting when that warranty customer comes in. Okay, great. And as far as just one last question. If there's going to be a flood of Honda CRVs because you got the parts finally and you were able to fix and sell that used unit, is there going to be depreciation or I guess deflation in particular brands as the supply really hits the market? And is that something that the manufacturers are helping out the absorption of? It varies by manufacturer. Some of the manufacturers have been providing us with assistance both to carry the vehicles and for depreciation. So obviously, we won't feel much of an impact there. There are other situations where there could be some impact on the vehicle. But I would say, broadly speaking, a lot of these vehicles are vehicles that are very much in demand, and we're actually looking forward to bringing them to market. David may have more color to add. I agree with you. Brad, that particular model you mentioned, the demand is very high. So I can't imagine ever having too much supply. We do have a new model coming out soon, which will probably create a lot more trade ins, but we look at that as a very positive going forward. Okay, great. Thank you. We'll take our next question from Mike Monitani with Evercore ISI. Hey, guys. Just wanted to follow-up on the GPU decline that we saw this quarter. I guess the question I had was twofold. One is, how should we think about new vehicle GPUs into the Q4? Do you look for more of a 2015 step up sequentially of like 90 to 100? Or is it more like 2014 where you could get 150 just because the results were somewhat depressed last year? And then a follow-up on that. Mike, it's Craig. Let me start. It's very difficult for us to give you a precise forecast on how these incentive programs are going to play out in the future. And as you see in our results this quarter, these GPUs are very much a function of what's happening with these sales targets and incentive programs. Some of the we've seen some of the manufacturers, But I think it would be But I think it would be unrealistic for us to say that we can give you a hard forecast where this goes certainly next quarter and the quarter thereafter. The only comment I would add to that is, one of our domestic partners recently stopped their stair step program. So going into the Q4, we don't have those incentives. And when you look at the Q4 of 2015, those incentives certainly existed if you hit the targets. Okay. That was actually what I was going to follow-up on. So I guess from that domestic partner, it sounds like sequentially, they stopped the program, if I'm not mistaken, October 1. Is that right? That's correct. So I guess sequentially, is it fair to say for that one that it actually is a firmer GPU environment all else equal? It's too early to tell. Okay. If I could, on a separate note, the F and I per unit has been flattening out here a little bit even though transaction prices are rising. Can you just talk about kind of what's going on with attach rate? And then is there some kind of an impact due to capped markups there that's constraining that? I would tell you it's a combination of a few things in our F and I PVR in the quarter. It's a combination of chargebacks, some turnover in folks and in some cases, in some locations, some just poor performance in product sales. And so if the some of your peers like AN and GPI are like $1600 per retail unit and you all are more like 1400 dollars Is it realistic to think that that continues to improve or have we kind of hit a near term limit here? We think this quarter was a small setback for us when it comes to F and I, and we're pretty positive about the 4th quarter. As it relates to that. Okay, thank you. Last if I could was on tax rate. Can you guys just clarify how to think about that in the Q4 and then kind of moving forward, given some of these parts that we've been discussing? Yes, Mike, this is Keith. Our tax rate is moving around a little bit with some discrete items during the quarter, maybe a $0.01 to $0.02 pickup on tax rate from discrete items. For planning purposes, we should be looking at 38% to 38.5% into the Q4 into next year. All right. Thank you. Thanks Mike. We'll take our next question from Jamie Albertini with Consumer Edge Research. Great. Thank you for taking the question and good morning, gentlemen. Good morning. Good morning, Jamie. Wanted to sorry to do this to belabor the point on GPUs. But on the used side of the business, I think, as you mentioned, it seems like the industry is expecting this broader supply improvement. You got some pricing in fact in the quarter look like on a positive year over year basis from a comp store sales perspective and yet margins were under pressure. I imagine it's going to be volatile here on out, but it looks like your compare eases significantly for used vehicle gross margins in the Q4. So what I'm really asking is how do I balance sort of an easier compare with what I would imagine is further increase in supply that could pressure prices looking into the balance of the year? Jamie, there are all factors that we take into account as well. And again, I'll come back to it's we think we can do better in used. We think we can do better with CPL. It's an area where quite frankly we don't we did not live up to our own internal expectations. And it's going to get a tremendous amount of focus from us as we move forward. Is there a reference point you can provide? I think you said historically that some of your better stores, maybe as high as 2:one used to new retail ratio, may be even higher if I recall. Your average is about 0.75 if I did the math right here. So how quickly and how many opportunities are within the portfolio? How quickly can we see that trend higher? And what are some of the best stores running at right now? Some of the best stores we have run a little bit over 1 to 1, which is well above obviously the industry average. We're trying to look at used vehicles in a holistic approach and understanding what it generates for parts and service and that internal growth and how we benefit from that. As far as margin pressure going forward, I think it will look similar to what it looks like right now. Opportunity is within the volume aspect. Again, I've said it, I'll state it again, we're very happy with that CPO increase. We think there's more opportunity there. And we think some things that we've been working on within the last within this past quarter will tend to come to fruition plus the benefit of these stop sale vehicles actually freeing up. I appreciate that. And if I can sneak just a strategic question in very quickly. Within your portfolio and I know you span a lot of geographies, obviously a lot of brands within those geographies. Have you seen a divergence between the best and the worst markets sort of in the last few months as it seems from the outside looking in like SARS gotten a lot choppier depending on who you talk to? And I'm wondering if that if your markets have widened in terms of best versus worst and in the worst performing markets, if the offsets are occurring as you'd imagine, parts and service is picking up, F and I is stickier maybe than last recession. Just trying to get a sense of the resiliency in those underperforming markets. Well, that's a big question. Let me take a shot at it and maybe Keith and David have more to add. Markets are different. As you would imagine, I think based in part on the strength of the local economy. Clearly, our stores in Texas are more challenged than the stores we see in Florida, as an example, just the kind of thing that you would expect. But I think brand is also important. And if we were to sit down together and go through a list of stores and markets, I think brand might jump out at us more here this quarter than markets. And you see it you see it here in these GPUs. It's hard for us to absorb this type of a GPU movement and not have a material impact on the bottom line of store. Got it. Very helpful. As far as if I could just continue. So with that in mind, the way we're thinking about the business is let's attack the things that we can control. As we've mentioned earlier, we think there's opportunities for us to do better in F and I. It's 100% margin business for us. So it's an area that we continue to focus on. There's clearly opportunity to grow our used vehicle business. As I mentioned earlier, I think it's we didn't live up to our expectations in the quarter. We think there's a lot of growth opportunity there. And in many ways, that's a key driver across the entire stores, as David mentioned, because it brings us incremental F and I benefits as well as benefits in parts and service. And then, like David said earlier, parts and service is where we're making a lot of our investment in people. We're investing in systems. We're putting a lot of our marketing initiatives behind our parts and service areas. There's a lot of capital that's being invested in our collision centers. It's an area that we feel very good about. So we step back from everything that we see happening. There's still a lot we can control. There's a lot going on. There are a lot of initiatives that will come to fruition. And we feel pretty good about how we can manage this softness, if you would, as we move forward. Got it. Extremely helpful as always gentlemen. Have a thank you again and good luck in the Q4. Thank you. Thank you, Sharon. We'll take our next question from John Murphy with Bank of America. Good morning. This is Liz Suzuki on for John. You may have mentioned this already, but were there any particular brands or vehicle classes that actually experienced any year over year improvement in gross profit per unit or was pretty much just weak across the board? We certainly obviously, the luxury segment was up year over year and we did have some midline imports that were up year over year as well. Okay. Any particular brands in there that you call out as being strong? We prefer not to mention any of them. Got you. Okay. And it looks like you took a break on share buybacks, even though the average share price was pretty similar in the Q3 versus the second. In fact, it was actually down a little bit. Are you getting more cautious about the company's liquidity needs given the tough selling environment? Or was there another channel of capital deployment that looked more attractive this quarter? Hey, Liz, this is Keith. I think when we look at capital deployment, we take a lot of things into consideration. We look at our business, the performance throughout the quarter. We look at the broader markets. We look at where we're trading, from a share buyback perspective. There's a lot of things taken into consideration. To answer your specific question from a liquidity standpoint, no, we're still well within our targets on our leverage ratios. You can see that with the list of liquidity position I provided, we have plenty of liquidity. Quite frankly, we're very well positioned. We're generating and anticipate generating and anticipate generating about $100,000,000 in free cash flow a year. And our leverage ratio being net at 2.6 times, we're in very good position. Craig mentioned in his prepared remarks, we anticipate that capital allocation will enhance our future share performance or earnings performance. Maybe if I could just jump in there and give a little more color. If you were to look at the months across the Q3, July was a very soft month for us and caused us to reconsider our capital while our share repurchase programs in light of the softness that we saw in July. The August September actually performed considerably better than July. All right. Thanks very much. Thanks. We'll take our next question from Chris Baldigari with Wolfe Research. Thanks for taking the question. Your plus 7 CPO is actually really strong, especially relative to peers in the market. So one, I was wondering if you could remind us what your CPO penetration is? And then 2, more broadly, how you think about the CPO market overall? Are the OEMs still being supportive right now given new vehicles are flattening out? Do you think there's just we're reaching for the at an industry level, are we reaching like the upper band of consumer demand? Just some thoughts there. From a CPO perspective, like I said, we're up about 7%, but the percentage of our total business, it runs about 35%, 40% of our total used car sales. We see that there's opportunity there to grow that number further. I don't know if I answered fully your question, if I missed a piece of I was just wondering, the market itself seems like it's slowing. Obviously, it's not for you guys, but maybe just some thoughts overall on the CPO market, if you have any. From talking to peers and what I hear in our industry, it doesn't appear to be slowing at this point from what we can see. Okay. The next question I had was on stop sales. It seems like, if I calculate that correctly, about 7% of your used inventory is now on stop sale versus 10% last quarter. So I guess, 1, is it safe to assume the worst is behind you and for the industry? And then 2, I was just wondering if you could talk more broadly, it seems more mixed from your public peers in terms of the exposure to the stop sales, but would you say the large privates are experiencing similar headwinds to some of the smaller privates? Or is it kind of just it's hard to, I guess, directionally quantify? Chris, it's Craig. I'll start and then David can give us more color. The issue with stop sale is that it's concentrated in certain brands. And we've got a couple of brands where our stop sell inventories, used vehicle inventories are in the 15% to 20% range and that's got an impact on the operation of the store. Like we mentioned earlier, it is the situation is improving. We saw a good improvement over the course of the quarter. But until we get this completely behind us, it does cause some disruption, again, in selected brands. The only thing I would add to that, when you talked about the public and the private side, it really comes down to the brand mix and what someone has, what the impact will be. Okay. And then one final question. I noticed that for the Q Auto, it looks like you're kind of co branding that with your courtesy brand now. So when I was just kind of curious on your learnings from that, I know there's a longer term question, but if you decide to roll out Q Auto across other markets, how do you get to the branding? And then does your experience thus far kind of maybe rethink like a national rebranding strategy down the road? It's Q is it's a distribution channel that we continue to experiment with. You're correct, we have we are experimenting, especially in the web. That's probably where you saw that branding Modification that we've made, it's still Q. If you were to drive by a store, you'd see a very large Q on it. We're concentrating in the Tampa market, but we are moving to the sub brand of Q Auto, a courtesy quality outlet. And we our view is that we're going to experiment with this, see how it works. We've got 3 of the stores that are using that concept on the web. The 4 stores still a pure Q store, so we're continuing to experiment with our positioning. But our view is that if we can make that approach successful in that market, we could move to another market, Atlanta, for example, and we could still have a model where it's a large queue on the store, but instead of it being a courtesy quality outlet, it could be a Nally quality outlet. Okay. That's very helpful. Thank you for the time and for the question. Sure. Thanks. Our next question comes from Mike Montani with Evercore ISI. Hey guys, just wanted to follow-up, if I could, on the SAAR and the new car environment, understanding Hurricane Matthew impacted you for a few days. But if you were to try to back that out and just look at the daily selling rate excluding that, did you notice any divergence from the 3Q trend? Is it consistent, better, worse? Can you just discuss that? I would say it's consistent. Okay. And then if I could, just to follow on with the stop sale. If I heard correctly, I think you said 20% of the units are still on stop sale and that had been 40% to start the quarter. I guess, first of all, is that correct? And then within that, are you seeing down 40% to 50% volumes for those units that are on stop sale? Because I guess I'm trying to get my arms around the potential headwind and that would really suggest that all else equal, it could be high single digit headwind to the used business. I'll start off. In one of our brands, we started the quarter with some of those stores at 40% of their inventory on stop sale. That same brand is now down to 20%. The second if we were to look if we were to rank the stores, I think our 2nd highest brand is in the 17% range possibly and then we're going to drop down into the low teens. But again, it's this is probably 3 brands where we see this issue. The and you're going to have to help me with the rest of the question. I missed that. Well, I guess what I'm trying to get at is, for those stores, are you seeing a material divergence in their used unit comp performance versus the stores that are not impacted by the staccata issue or stop sales? And I guess, dramatically, is it can you put anything around that like on a similar geography, are we talking about 100 or 200 bps? Or is this like 800, 900 bps kind of impact or divergence in trend rather? Mike, this is Keith. We don't have that data all set in front of us right now, but it's certainly something we can talk about and share with in the future. Okay. Thanks a lot. Well, that concludes today's discussion. We appreciate you participating with us and we look forward to talking to you at the end of next quarter.