CarMax Group (NYSE:KMX)
2013 Annual Shareholder Meeting
June 24, 2013 1:00 pm ET
Eric M. Margolin - Senior Vice President, General Counsel and Corporate Secretary
William R. Tiefel - Chairman
Thomas J. Folliard - Chief Executive Officer, President and Director
Eric M. Margolin
Good afternoon, and thank you for coming today. As you know, I'm Eric Margolin, Senior Vice President and General Counsel and Corporate Secretary of CarMax, and it's my pleasure to welcome you to CarMax's 2013 Annual Meeting of Shareholders. And I now officially call the meeting to order.
With me on the stage to my far left is Tom Folliard, President, Chief Executive Officer and a member of the Board of Directors. Seated to his right is Bill Tiefel, our Chairman of the Board of Directors. We are extremely proud that CarMax has reported 4 straight years of record results. In a few minutes, Tom will provide additional details on the company's recent performance. First however, we will conduct the business of the Annual Meeting.
The policies and procedures for today's meeting are posted at the registration desk and at the entrance of the hallway of the ball -- at the entrance of the ballroom inside the hallway as well as on each seat. I hope you took a moment to review them. There will be times during today's meeting when we will open the floor to comments and questions from shareholders. We ask that if you wish to address the group, please step up to one of the microphones in the center aisle, provide your name and limit your comments or questions to a total of 3 minutes. I will serve as parliamentarian and timekeeper for the meeting.
The Board of Directors has appointed American Stock Transfer & Trust Company as the inspector of election for this meeting. Their representative, Kathy O'Kane, is present today and is seated at the table in the back of the room. Items available for review at the inspector's table include the following: the oath of the inspector, the list of registered shareholders entitled to vote, the affidavit of notice and mailing; and the minutes of the 2012 Annual Meeting of Shareholders. The inspector of election has informed us that there is a quorum present in person or by proxy for the transaction of business today.
Also today, with us are representatives from KPMG LLP, the company's independent auditors. Would you please stand? They are Donna Craver, Candy Duncan, Bob Slappey, and Andy Zulla [ph]. They're available to respond to shareholder questions later in the meeting.
I now declare the polls open. Shareholders who have already voted by proxy do not need to cast ballots in the voting today. However, if you voted by proxy and now wish to change your vote or if you did not previously vote and would like to do so today, please now see the inspector of election at the back of the ballroom.
Now I'd like to ask our Chairman of the Board, Bill Tiefel, to come to the podium and introduce the other members of the CarMax board.
William R. Tiefel
Thank you, Eric, and good afternoon, everyone. We have an exceptional board. Their business experience is extensive and is described in the proxy statement, so today, I will simply give you their current affiliation and the length of their service on the CarMax board. I will ask our members to stand as I call their names and remain standing until all directors have been introduced. Please hold your applause until the end of the introductions.
First, I'd like to introduce the board members who are continuing their service on CarMax board and whose terms do not expire at this meeting. We have Tom Folliard, President, Chief Executive Officer of CarMax and a Director since 2006. Do you want to stand, Tom? Leadership. Jeff Garten, the Juan Trippe Professor in Practice of International Trade, Finance and Business at the Yale School of Management. Jeff is also the Chairman of Garten Rothkopf and a CarMax Director since 2002. Shira Goodman, Executive Vice President, Global Growth of Staples Inc. and a CarMax Director since 2007; Bob Grafton, retired managing partner and Chief Executive of Andersen Worldwide S.C. and a CarMax Director since 2003. Ed Grubb, retired Executive Vice President and Chief Financial Officer of Transamerica Corporation and a CarMax Director since 2007. Beth Stewart, currently co-managing member of Trewstar, LLC and Chief Executive Officer of Trewstar Corporate Board Services and also the retired Chief Executive Officer of Storetran.com (sic) [Storetrax.com]. Beth has been a CarMax Director since 2002. I'm retired Vice Chairman of Marriott International, Inc. and Chairman Emeritus of The Ritz-Carlton Hotel Company, and I have been a CarMax Director since 2002. Now please remain standing.
I ask now that those directors who are standing for election this year stand, and they are Ron Blaylock, founder and managing partner of GenNx360 Capital Partners and a CarMax Director since 2007; Rakesh Gangwal, former Chief Executive Officer of U.S. Airways Group, Inc. and Worldspan Technologies, Inc. and a CarMax Director since 2011; Mitch Steenrod, Senior Vice President, Chief Financial Officer, Chief Information Officer of Pilot Travel Centers, LLC and a CarMax Director since 2011; Tom Stemberg, managing general partner of the Highland Consumer Fund at Highland Capital Partners. He is also the founder and Chairman Emeritus of board of Staples, Inc. and a CarMax Director since 2003. Ladies and gentlemen, these are the members of the CarMax Board of Directors. Thank you, all.
Today, we have 5 items of business on the agenda. I'll briefly review each proposal. I will then have Eric summarize the voting results on all proposals.
The first item of business is the election of directors. I have just introduced the 4 nominees for election of the board: Ron Blaylock; Rakesh Gangwal, Mitch Steenrod and Tom Stemberg. In accordance with the company's bylaws, the nominations are closed.
May I have a motion that all nominees presented in the proxy statement be elected to the Board of Directors for a 3-year term?
William R. Tiefel
May I have a second to the motion?
William R. Tiefel
Very good. If any shareholder wishes to speak to the motion now before us, please step to one of the microphones in the center aisle.
The second item of business on our agenda today is the ratification of the appointment of KPMG LLP as the company's independent registered public accounting firm. KPMG served as our independent auditors for fiscal 2013, and the Audit Committee has again selected the firm to perform the audit of our financial statements and our internal controls over the financial reporting for fiscal 2014.
May I have a motion to ratify the selection of KPMG LLP as the company's independent registered public accounting firm?
William R. Tiefel
Thank you. May I have a second to the motion?
William R. Tiefel
If any shareholder wishes to speak to the motion now before us, please step to one of the microphones.
The third item of business is the advisory vote on executive compensation. CarMax executive compensation program is designed to reflect the company's pay-for-performance philosophy and to support the company's key operating and strategic objectives. The program is discussed in detail in the proxy statement, and I refer you to this document for further information.
May I have a motion that the compensation of the named executive officers of CarMax, as disclosed in the 2012 proxy statement, be approved?
William R. Tiefel
May I have a second?
William R. Tiefel
If any shareholder wishes to speak to this motion now before us, please step up to one of the microphones.
The fourth item of business today is the approval of amendments to the CarMax Articles of Incorporation to declassify the company's Board of Directors. If these amendments are approved, all directors -- all director elections, including those being voted upon today, will be for a 1-year term.
May I have a motion to approve the amendment of the CarMax, Inc. Articles of Incorporation to declassify the company's Board of Directors as described in detail in the proxy statement?
William R. Tiefel
May I have a second to this motion?
William R. Tiefel
Thank you. If any shareholder wishes to speak to the motion now before us, please step up to one of the microphones.
The fifth item of business today is the approval of amendments to the Article of Incorporation to update and modify certain provisions relating to indemnification, which are described in detail in the proxy statement. I refer you to this document for further information.
May I have a motion to approve the amendment of the CarMax Articles of Incorporation to update and modify certain provisions relating to indemnification as described in detail in the proxy statement?
William R. Tiefel
May I have a second?
William R. Tiefel
Thank you. If any shareholder wishes to speak to this motion, please step up to one of the microphones.
The polls are now closed. Would the Secretary please summarize the preliminary voting results on the applicable proposals.
Eric M. Margolin
Mr. Chairman, on the first item of business, the election of directors, I'd like to note that CarMax has majority vote standard for the election of directors. In an uncontested election as we have today, directors must be elected by a majority of the votes cast. This means that the number of votes cast for each individual director nominee must exceed the number of votes cast against that nominee. Any nominee not receiving a majority of the votes cast for their election will be required to tender their resignation. The inspector of election has informed me that the preliminary results indicate that each nominee to the Board of Directors has received the affirmative vote of at least 99% of the votes cast. Therefore, each nominee has been elected. The term of office for each of these directors will be determined by the outcome of the vote on Proposal 4, which I will provide in a moment.
On the second item of business to be adopted, the ratification of the appointment of KPMG must be approved by a majority of the votes cast. The inspector of election has informed me that the preliminary results indicate that 99% of the votes cast have been cast in favor of the ratification of the appointment of KPMG LLP, and therefore, the ratification is adopted.
On the third item of business to be approved, the nonbinding advisory votes on executive compensation must be approved by the affirmative vote of a majority of the votes cast. The inspector of election has informed me that the preliminary results indicate that 92% of the votes cast have been cast in favor of approving the compensation of our named executive officers as described in our 2013 proxy statement, and therefore, the compensation resolution is approved.
On the fourth item of business to be approved, the amendment to the CarMax Articles of Incorporation to declassify the Board of Directors must be approved by 2/3 of the votes entitled to be cast. The inspector of election has informed me that the preliminary results indicate that 84% of the votes entitled to be cast have been cast in favor of these amendments, which are, therefore, approved. Accordingly, the 4 Board of Directors elected today will each serve a 1-year term expiring at the 2014 Annual Meeting.
On the fifth item of business to be approved, the amendments to the CarMax Articles of Incorporation updating and modifying certain indemnification provisions must be approved by a majority of the votes cast. The inspector has informed me that the preliminary results indicate that 84% of the votes entitled to be cast have been cast in favor of these amendments, which are, therefore, approved. Any valid votes made today in person from the floor will be reflected in the minutes of the meeting.
William R. Tiefel
Thank you, Eric. The Annual Meeting is now adjourned. Now I'll turn the floor over to our Chief Executive, Tom Folliard.
Thomas J. Folliard
Good afternoon, everyone. Thank you, Bill. Before I discuss our business, I'd like to recognize a few individuals. First is Vivian Stephenson. Vivian was a member of our board who retired this year. She contributed valuable insights gained during her career, which included tenure as Chief Operating Officer of Williams-Sonoma and Chief Information Officer of Target Corporation. Vivian served admirably as a CarMax Director since 2006, and we will miss her. Let's please give her a round of applause.
As always at these meetings, we have a number of our valued CarMax associates here and members of our regional leadership team, as well as some -- many folks from our home office here in Richmond. We also had 2 executive promotions during the year that I'd like to announce and have you stand. Please, Joe Wilson. Where is Joe? Joe Wilson was named Vice President of Auction Services & Merchandising Development. Joe has been with the company, let's just say, a long, long time. He started as a buyer and training in Raleigh. And Natalie Wyatt. Natalie was promoted to Vice President and Controller, and Natalie has been with the company longer than the company has been a company.
We have several members of our regional teams here, including the leadership from most of those teams. I'm going to name each region, and if any members from that team that are here, please stand. From the Atlanta region, I don't think Kevin is here today, but Kevin Cox, as of that region, anybody from Atlanta here? From Phoenix, one of our newly promoted Regional Vice President, Kelly Rubel, could you please stand? Give her team a round of applause, please. Thank you. Vaughn Sigmon, the California team, I don't know if they're here. There's Vaughn. I didn't see you back there. Tom Vicini and his team from Chicago. Absolutely my least favorite region in the country right now. Thanks for the Blackhawks being ahead of the Bruins. You can fix that tonight though, Tom, I think. Donna Wassel and the Dallas team. And then let's just give a hand to all the other CarMax associates that are here as well. Thank you.
So I'll talk about the company briefly. I'm going to talk some about our full year fiscal performance year-over-year and then our first quarter performance, which just ended and we announced on Friday. I'll talk a little bit about some areas of focus for the company, our growth plans, continuing to improve our in-store experience, continuing to improve our online experience and then optimizing our operations, which we are continuously working on. Then I'll talk some about of our charitable efforts, and then we'll bring up our Above and Beyond winners. Lee and Mary [ph] are both here today. Let's give them a round of applause. I found out before the meeting that Mary is a Miami Heat fan, so she will not be coming up on stage. I do appreciate you flying here though, Mary [ph].
This presentation contains forward-looking statements, which are subject to risks and uncertainties. Additional discussions of factors that could cause actual results to differ materially from management's projections and estimates is contained in the CarMax, Inc. SEC filings, including its Form 10-K for the year ended February 28, 2013. The company disclaims any intent or obligation to update its forward-looking statements.
We had a pretty good last year. Our revenues, as you can see here, were up 10% to just right at $11 billion. Our net earnings grew 5%, and EPS was up 4% to $1.87. Used unit sales, 447,000 cars sold, the highest number in the history of the company. Our gross profit was strong and flat to last year.
Wholesale units, another big piece of our business, we've talked about lots of times here in the past, also up about 3%, 325,000 units sold. And again, gross profit in that area flat as well.
Cash continues to be a very strong contributor to the overall business, up 14% to just about $300 million in income and our average managed receivables continue to decline, ending the year right at $6 billion.
For the first quarter, which I mentioned we announced on Friday, we had what I would consider an outstanding quarter. Our total revenue is up 19%. Gross profit up 17%. Cap income of 16%. SG&A, although it was up 14%, we actually leveraged our SG&A pretty significantly, and our EPS was up 23%. Our comp sales, which are not on this sheet, were up 17%. It's the highest comp store performance we've had since 2002.
We actually had quite a few milestones last year for the full year. I mentioned the 450,000 was, again, the most units we've ever sold. And I mentioned the $11 billion, but the first quarter was also the all-time best quarter for sales, earnings, EPS growth in the history of the company as well.
This is a map with our current CarMax locations. We have 122 superstores in 61 markets. As I mentioned, our areas of focus, growth, in-store experience, online experience and optimizing our operations. We're just getting back to growth now, coming back out of the recession. One of the best things about -- the best parts of CarMax's story is that we are still a growth story. We're only in half of the U.S. markets, and in many of the markets that we're in, we are not fully stored.
We have announced our growth plan for the next 3 years, including this one that we'll open between 10 and 15 stores a year. We have 13 on the slate for this year. You can see what we'll look like in FY '16, somewhere between 151 and 161 stores all over the country.
This year, I think, is actually a nice mix of the way growth will be for CarMax going forward. We'll enter into some new metro markets that we're not in this year. We'll enter 2 of those markets. We'll build 2 stores in Philadelphia and 2 stores in St. Louis. We'll go to midsize markets, also brand-new markets for CarMax. We've opened both Columbus and Savannah this year already. A new format for us is a smaller format store, going into markets where we may only sell 75 to 125 cars, something we really haven't done before, which we'll test and could potentially open the door for many more markets that look like that in the country, somewhere between around 80 and 120. We opened our first store in Harrisonburg, Virginia this year. We have a second one planned in Jackson, Tennessee. Bryan Ennis led that team. Bryan, if you could stand up, we'll give Bryan a round of applause.
And then we will continue to go back into markets where we already have a presence and are successful and add more stores. This year, we will add a store in -- our fifth store in Houston, Texas, our -- another store into our Sacramento market and 2 more stores into the Baltimore, D.C. market.
I think it's particularly important for us to continue to strive to do a better job, taking care of the customers when they come in our store. This is an indexed customer satisfaction, of course [ph], going back to just coming out of the recession. And as you can see, we have improved our customer experience each year, and over the 5-year period, up 7%. And this is on the question how likely is that you will recommend CarMax to a friend or a colleague. And these are for people who have purchased with us or sold us a car, so transacted some business with us.
It's also very important if somebody comes through the store and doesn't transact business with us that they have a great experience, and we've increased that score for this subset of customers even more over that same time period. So we're very proud of our associates in the stores and the fact that they take care of our customers each and every day, and that over the last 4 or 5 years, we've actually improved that experience.
More and more customers are shopping online. They're starting their shopping experience a lot earlier. They're spending more time online before they come to the store. We have to make sure they have a terrific experience there as well. Some of these growth numbers are awesome for the year. Hits to our website, we're up 15%, so that's fiscal '13 ending in February over last year, fiscal '12, up 15% to an average of 9 million a month.
In the first quarter that just ended, up 28% to 11.5 million from the year prior. And the other big shift that we see is more and more customers are accessing our site through their mobile device. And it's a combination for us of either our mobile website, which they have access directly to or using our app, which just came out in the fall. So although the app had only been out in the fall, it's already 8% of hits to our website. When you put those 2 together, the 20-plus [ph], it's almost 1/3 of all the hits to our website are now coming through some type of mobile device. So we clearly have to make sure that the customer has a great experience.
This is just a couple of screenshots from our mobile app. I think we have a really good search function. We have some great pictures available. And some of the things we're working on are continuing to try to personalize the experience for the customers. So if they're returning back, they've already done a search, they have quick access to whatever the things were that they were doing before and they'll get much more of a personalized experience.
We also have to make sure that in general, their visits, whether it's on -- through their mobile device or from home, that, that experience continues to get better and better. And another thing that we're testing right now is high-definition pictures in a few of our stores and the ability to zoom in and out of those pictures. And we have that up and running in 5 stores, and that's going really well. And we'll continue to work on that and make sure that their experience online is just as good as it is at the store.
And then just optimizing our operations, I've talked many times here about working on reconditioning costs and trying to improve the quality of the car that we deliver to the customer. And our operations team has done a great job over the last few years. We have a lot more work to do there. I think we made some really fast progress early, and although there's not as much to be had, I think it's a little bit harder and our teams are working really hard to continue to make progress there.
And then we have to make sure as we get back into this growth mode, if you remember back pre-recession, we were growing the company at 15% a year. We've now had a very measured increase where we opened up 3 stores and then 5; last year, 10; this year, 13; the next 2 years, between 10 and 15. We have to make sure that we do that efficiently. And I think we've done a really nice job so far of kind of having a measured approach to making sure we build back up that pipeline. And we want to strike a balance between growing the company effectively, and at the same time, not losing the momentum we've made on improving execution. I talked about customer satisfaction, lowering reconditioning costs. These are some of things that we have to continue to make progress on.
And then just improving our execution. Our store teams have done a terrific job of taking care of the customers. I mentioned earlier our conversions. So of the customers who come in the store, how many of those buy a car. In the last year, we've set records on almost every month in improving our conversion year-over-year and had an all-time high in the first quarter. Let's just give all of our store associates a round of applause [indiscernible].
Now let me talk about The CarMax Foundation. We separated from Circuit City in 2003, became a separate public company. That's when we had -- we created The CarMax Foundation as a separate entity. Since its inception, we have now given away over $15 million into the communities where all of our associates live and work. Last year, over $3.3 million. We encourage our associates to volunteer -- to do volunteer team builder events. We match that up with a donation from the foundation. Last year, we had over 570 team builder events, which was up 43% from the year prior. And 100% of our stores did at least one team builder during the year at the charity of their choice.
We have lots of other ways that we try and push that money into those communities again where we live and work. We have a Matching Gifts Program where if you donate money to the charity of your choice, the foundation will match that up to $10,000 in a year for you or a family member. And then we encourage volunteering. If you volunteer with an organization, then the foundation will match that at $10 an hour. So I think we've gotten some really nice traction there.
We also put together Regional Giving committees, so a lot of the folks I mentioned earlier have helped serve on some of these committees. But in each region, we put together a small board. We give each region around $100,000 a year. They take those requests into each region and try to, again, push that money into Los Angeles and Chicago and Dallas and South Florida and some of the places we are that aren't Richmond.
The company, in general, is focused on kids and healthy living. We've been looking for a national partner for some time that we feel that their interest were aligned with ours. And we found a great partnership in a company called KaBOOM!. I don't know if anybody has ever heard of KaBOOM!. Who's volunteered here with KaBOOM!. I know lots of CarMax associates have. KaBOOM!'s goal is to build a playground within walking distance of every child in America. We now are an official corporate sponsor of KaBOOM! and we have committed to building 30 playgrounds all over the U.S. in the next 3 years. It's a $4.1 million commitment. We had built 2 of them prior, one in Los Angeles and one in Nashville, prior to becoming a national partner. We kicked off our national partnership a couple of weeks ago with 2 builds on the same day, one here in Richmond and one in Los Angeles. And we have 8 more coming for the rest of the year. And our goal is to impact the lives of 100,000 underserved children across the country with these playgrounds.
And then here in Richmond, we do a little more on our hometown. We have summer basketball league, which is free to all participants. Last year, we added free food for all of the kids and all of the players every night, which was done by a group of volunteers that actually approached us. So they like what we were doing, how could they help. They said they wanted to provide food. I said, "Oh, which night?" They said, "Every night." Last year, they provided hot meals for approximately -- it's 500 kids every other night, so 250 kids a night were provided a hot meal. And it's a really terrific organization. They're back again this year. Tonight is actually the tip-off of the CarMax Summer League. Many members of our Board of Directors will be heading out there. It's spaghetti and salad, if you were wondering. But you can't have any because it's for the kids.
But we're very proud of what we've done with the park here in Richmond called Pine Camp. We've renovated 3 basketball courts out there. And 4 nights a week for 8 weeks, we provide a safe environment for kids to play, and it's been a really terrific program for us so far. So we're very proud to be in our seventh year. 2 years ago, we added a Wheelchair Division. That's also been very successful, and we continue to get more and more interest from around Richmond to add teams into this program.
And now my favorite part of the Annual Meeting is introducing 2 of our terrific store associates. Our Above and Beyond program was started several years ago to recognize just efforts that we see in our stores all the time. We constantly were getting letters or notices or somebody calling and complimenting somebody in our store for just going way above and beyond what they expected, particularly from a used car dealer. And we found a way to recognize those associates. They're nominated from the field. We select winners. If we have somebody worthy of their award each month, that person gets $1,000 check and their entire store gets a pizza party.
For the year, we select a couple of associates to represent all of the other Above and Beyond winners, as well as all of our associates in the stores who provide great service every day, and we ask them to come to the Annual Meeting. They can bring a guest, get to experience beautiful Richmond, 90 degrees today, 85% humidity, chance of thunderstorms. Hope you guys have a good time.
So I would like to ask Mary Ivey [ph] to join me on stage. Mary [ph] is a service consultant at our Kenosha, Wisconsin store. Last December, a frantic call was received in our store from a motorist in Pierce. On her way from Milwaukee back home to Indiana, the motor has got a flat tire and had no spare. Driving on a flat tire, the motorist arrived in our service department were technicians concluded that the tire was completely destroyed. Unfortunately, not only was parts department closed, they didn't stock the particular tire she needed. Her replacement tire was found off-site, and a tow truck was called to come get the motorist's vehicle. The towing company quoted a price higher than the motorist could comfortably afford, but after CarMax associates helped her negotiate, the price was lowered to something more reasonable. That was Oscar [ph], she said, just so you know. But the towing company also demanded cash in payment for its services. Mary Ivey [ph] overheard the potential issue, jumped in before it could become a problem and offered to take the woman to a nearby ATM even though her shift had already ended. Mary [ph] then took the motorist from the ATM to the location where her tire was being repaired and waited with her as the replacement tire was installed. Knowing that the woman was unfamiliar with the area, Mary [ph] had the customer follow her back to the interstate highway, which enabled her to safely navigate home to Indiana. Let's give Mary a round of applause.
Next, I'd like to ask Lee Hulsey to join me on stage. Lee Hulsey is a Sales Manager at one of our Denver stores, another group of stores that I'm not -- aren't so popular with me right now since they stole West Welker from the Patriots. Lee, I hope you feel good about yourself. I hope you can sleep at night. But Lee is a Sales Manager at one of our Denver stores. He recently transferred from our Modesto, California store. The night before Easter, a family with 8 -- a family of 8 was on its way to Los Angeles to spend the holiday with relatives when their car, which they purchased from CarMax a month before, broke down in Bakersfield. It was after working hours for rental car agencies, but Lee answered the phone when they called our Modesto store to arrange for service the following Monday. Upon hearing the story and realizing the family would be stranded in a hotel, Lee and a coworker decided to deliver a loaner so the family could spend their holiday as planned. After completing their closing duties, Lee and his fellow associate set out on the 440-mile round trip. They reached the family at 1:30 in the morning, and they were back in the Modesto -- in Modesto store 3 hours later. Next, they arranged to have the disabled vehicle towed to Fresno where it was repaired and then shipped back to Modesto. Because of Lee's dedication to our customers, a family was able to have a memorable holiday and experience our brand of exceptional customer service. Let's give Lee a round of applause.
It's stories like these that set CarMax apart from the rest and truly makes me proud to be a member of the CarMax team. Congratulations, and thanks to Mary [ph] and Lee, both of whom demonstrated uncommon dedication to customer service. I'm sure these customers will remember the helpfulness of CarMax associates for many years to come.
Thanks once again to all of our other Above and Beyond winners for taking such good care of our customers. Their stories are truly representative of the CarMax culture and why we've been named one of the Fortune 100's Best Companies to Work For, for 9 consecutive years.
This concludes our presentation for this afternoon. If you guys could take a seat. Thank you very much. I'd like to open the floor to questions. If any shareholder who would like to ask a question may step up to one of the microphones.
Thomas J. Folliard
Okay, there being no questions, we invite you to enjoy light refreshments set up outside the ballroom. Our shareholders and our associates are 2 of our most important constituencies, and we're glad you are all able to be with us today. This meeting is adjourned. Thank you.
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