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Rush Enterprises, Inc. (RUSHA) CEO Rusty Rush on Q3 2020 Results - Quick Version Earnings Call Transcript

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About: Rush Enterprises, Inc. (RUSHA), RUSHB
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Rush Enterprises, Inc. (NASDAQ:RUSHA) Q3 2020 Results Earnings Conference Call October 22, 2020 9:40 AM ET

Company Participants

Rusty Rush - Chairman, CEO and President

Mike McRoberts - Chief Operating Officer

Steve Keller - Chief Financial Officer

Derrek Weaver - Executive Vice President

Jay Hazelwood - Vice President and Controller

Michael Goldstone - Vice President, General Counsel and Corporate Secretary

Conference Call Participants

Justin Long - Stephens

Jamie Cook - Crédit Suisse

Andrew Obin - Bank of America

Shawn Kim - Gabelli Fund

Joel Tiss - BMO

Disclaimer: *NEW* We are providing this transcript version in a raw, machine-assisted format and it is unaudited. Please reference the audio for any questions on the content. A standard transcript will be available later on the site per our normal procedure. Please enjoy this timely version in the interim.

Operator

[00:00:05] Good morning, ladies and gentlemen, and welcome to Rush Enterprises, Inc. results third quarter twenty twenty earnings results call. At this time, all participants are in the lead and only mode leader. We will conduct a question and answer session and instructions will follow at that time. If anyone should require assistance during the conference, please press star then zero on your touchtone telephone. As a reminder this conference call may be recorded. I would now like to turn the conference over to your host today. Mr. Rusty Rush, Chairman, CEO and President. The floor is yours.

Rusty Rush

[00:00:39] Good morning and welcome to our third quarter 2020 earnings release conference call on the call today or Mike McRoberts, chief operating officer Steve Keller, Chief Financial Officer Derrek Weaver, executive vice president Jay Hazelwood, vice president and controller, and Michael Goldstone, vice president and general counsel and corporate secretary. Now, Steve will say a few words regarding forward looking statements.

Steve Keller

[00:01:01] Certain statements we will make today are considered forward looking statements as defined in the Private Securities Litigation Reform Act of nineteen ninety five. Because these statements include risk and uncertainties or actual results may differ materially from those expressed or implied by such forward looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements include, but are not limited to those discussed in our annual report on Form 10K for the year end of December 31st, 2019. And there are other filings with the Securities and Exchange Commission.

Rusty Rush

[00:01:33] As indicated in our news release, we achieve all revenues one point one eight billion and net income of thirty four million or sixty cents per diluted share. We delivered a cash dividend of 14 cents per common share and as previously announced, we declared a three for two stocks in the quarter go with nineteen pandemic, along with the previous anticipated industry downturn, continue to have a direct result in our financial results in the third quarter. However, when compared to the second quarter of 2020, we experienced a notable increase in revenues, primarily from increase in truck sales and increased profitability in our previously implemented expense reduction measures. We remain focused on monitoring covid-19 its effect on the economy and our industry, and we are cautiously optimistic that we are not only rightsize to support our customers, but that the economic recovery will continue going through our operations and the aftermarket, our annual parts service and body shop revenues were 400 million. Our absorption ratio was one hundred nineteen point four. While our revenues declined year over year, they did improve six percent when compared to the second quarter of 2020. This was due to increased aftermarket activity in August and September, especially from refugee construction and over the road customers. Looking ahead, uncertainties remain about the pandemic and overall strength of the economy, and that energy sector is still much slower than normal and likely will not improve significantly for some time.

[00:02:59] That said, though, we expect some typical seasonal decline through the winter. We believe that the gradual recovery of the aftermarket business will continue in truck sales. We saw twenty five hundred eighty four class eight new trucks, which accounted for five percent of the total US Class eight market due to the pandemic and an industry wide downturn slowdown in Class eight. Truck sales results were down significantly year over year, as we expected. However, our new class truck sales did improve 38 percent when compared to the second quarter of 2020, and our used sales increased 16 percent compared to the same time period. Government stimulus plan was issued earlier this year, combined with state reopenings, bolstered consumer spending in the third quarter with strength in freight and spot market rates throughout the country. As a result, we experienced an improvement in quoting and sales activity from new drugs, primarily from over the road customers. Further, the availability of new trucks of the production line was limited due to manufacturing shutdowns earlier in the year. This resulted in an increased demand for stock and U.S. truck sales and improved use of values, which is consistent with what the industry experienced. Active research adjusted its classic retail sales forecast one hundred eighty six thousand three hundred units in 2020, a significant increase from earlier estimates.

[00:04:18] We are encouraged by our third quarter sales results, but we expect going nineteen and uncertainties about our economic recovery to continue to impact new truck sales for the foreseeable future. We believe our classic new truck sales. The fourth quarter will be consistent, though, with our third quarter results and our used commercial vehicle sales will also remain solid. Our class four to seven new truck sales were twenty nine hundred forty one units, accounting for four point eight percent of the US market. These results were up twenty six percent over the second quarter, primarily due to increased activity from landscaping, residential construction and other small businesses. Active research is forecasting US class forces in retail sales to be two hundred sixteen thousand one hundred units and two thousand twenty. Another significant increase from earlier estimates, although we expect medium duty truck sales will continue to be directly impacted by the uncertainties around the pandemic and the economy in general. We believe our class. Forty seven truck sales the fourth quarter remain on pace with our third quarter results. I am truly grateful to our dedicated employees for focus on what's important protecting the health and safety of themselves and those around them while serving our customers and helping our country recover from these challenging times. With that, I'll take your questions.

Question-and-Answer Session

Operator

[00:05:38] Thank you. Ladies and gentlemen, if you have questions at this time, please press then the number one key on your touchtone telephone. If your questions have been answered, you may wish to remove yourself from the queue. Please press the star of the pound. You. We have our first question from the line of Mr. Justin Long from Stephens. Your line is open.

Justin Long

[00:06:02] Thanks. Good morning and congrats on the quarter. All right,

Rusty Rush

[00:06:05] Thanks, Justin.

Justin Long

[00:06:07] So maybe to start with Jenay, continue to see some pretty positive trends on that front in the third quarter. How should we be thinking about Gooney in the fourth quarter and then looking into next year? Assuming that number is right on truck sales, what kind of DNA would we see in that environment?

Rusty Rush

[00:06:29] All right, and one thing I'm very proud of is the reduction in DNA that we've been able to accomplish so far this year. And of course, that's always the question, right? What does it look like going forward from a Q4 perspective? I'm going to tell you, we're going be relatively flat. You know, we have to eat into some holidays, but you have a few less fuel, but you have less working days that offset that.

[00:06:51] So I would tell you probably relatively flat with Q3, we are seeing some gradual increases and some of the expenses as our parts and service business has picked up. As I've told you, we've got some goals going forward and how much we're going to retain. His gross profit continues to grow. We will try to spend less than what we have historically. I'm very confident that we're going to be able to do that. I just going to converse with our folks and I think everybody's got their heads wrapped around it pretty good as we come out of this, where we've been with what looks like a pretty good run going ahead of us here. We believe once we get through this pandemic and all things settle down, that from an industry perspective that we're going to do a better job of managing these expenses. And that's where we're taking them down to as we go forward. Understanding, though, it does take a little extra expense and more gross profit, right? We sell parts, we turn wrenches. We do always things for how we make money. But looking out in the next year, oh, I would tell you, our goal is to be somewhere in that thirty five year gross profit dollar we produce in parts and service somewhere around thirty five percent of that.

[00:07:57] We will probably spend the rest, hopefully dropping to the bottom line. But as a basis, you know, we're using, I would tell you to look at Q2, not Q3, because we're already seeing, we're already starting to increase some stuff, but I still believe we'll be close to flat, maybe slightly up in the fourth quarter. We'll just have to wait and see how it pans out. There won't be a big rise for sure. So, you know, that is the goal. So using Q2 is your baseline, not Q3 from an expense perspective. You know, that would be as we grow gross profit off the Q2 level with the expense from there know back in gross profit. Remember, we're not talking about trucks that we're talking about parts and service. So I'm not talking about drugs. And, you know, our split there's S and a we look at it, we manage it separately because this is always, you know, a variable component tied to truck sales. And Jeanna is the overall cost of running the business. So hope gives you some flavor on it.

Justin Long

[00:08:54] That does, thanks. In parts and service. It sounds like things really picked up in August and September. Have you seen that strength continue into October? And any thoughts on parts and service topline performance in the fourth quarter versus what you just saw in the third?

Rusty Rush

[00:09:13] Well, yeah, I don't know that we're going to increase a lot when you look at it, we look at it as a working days. A lot in the fourth quarter is the shortest working day quarter of the year. Right. You've got really three less now. We work on Saturdays and stuff, but we measured by how many Mondays and you've got three less working days in Q4. So I'm going to believe that we will be slightly off because, you know, three, four sixty two days versus sixty five. So I'm going to believe will be slightly off. But I do expect to maintain at least the average per day where we're at. You know, it's always a little bit wintertime as always. You know, November, December, January and February are not always my favorite months from a parts and service perspective. Holidays are nice, but they're not exactly good sometimes for our business. So but that said, I do believe will maintain some years we go backwards a little bit of gross profit per day average, but I don't expect that to happen. But you just have less work and it's a slightly down from the gross profit perspective, but not dramatically. You know, we picked up we really it was it was interesting that we went from like April, May, June, July. We're all very similar. We saw it. We dropped, obviously, as I told our last call, March was, you know, it's a 13 month year. There were two marches. But once we dropped in April and stayed flat, but we started to see the increases come back in August and parts more dramatically summon service, to be honest. But, you know, I think it's sustainable. And I think once we get through the winter time, I think you'll see it start growing again. I really believe that.

Justin Long

[00:10:49] OK, great. I'll leave it at that. Congrats again on the quarter.

Rusty Rush

[00:10:52] You bet. We're excited about what we're doing.

Operator

[00:10:58] We have our next question from the line of Jamie Cook from Credit Suisse. Your line is open.

Jamie Cook

[00:11:07] Sorry. Hi, good morning. Hope you guys are well, nice quarter. I guess just, you know, first question, Rusty, the margins, you know, on the on the truck side were fairly good in the quarter up from where you were in the second quarter. So can you just talk broadly about trends? Yeah, I expect that to progress in trend you're seeing in terms of, you know, ordering from the big fleet guys versus more of the vocational markets where potentially people, you know, are slightly more concerned about going forward, just as there's concerns on state budgets and stuff like that. And then I just guess my second question, if you could just decipher more within your parts and service business, the margins were a little lower this quarter relative to where they've been training any of you on that or just color on what you're seeing parts versus service with in terms of mix within that segment. Thank you.

Rusty Rush

[00:11:59] You bet. Around truck sales. I would tell you that, you know, use a new truck sales class. They were slightly up. I think used margins were dramatically up, even though they make up a lot less sales that were used. Margins were almost they were in the sixes last quarter and they were 12. And that was indicative. OK, and that's what really has some effect. When we were up slightly, I think five dents and new from a Q2, but in class, but really used truck margins were up because, you know, you've got to remember, the U.S. truck market took the hit right in March. Boom, you lose 10, 12 percent out of everything. Right. So you rightsize your inventories, as we always do as you finish Q2 and then you roll into Q3 and here comes the market. Right. So market picks back up, values go up. And fortunately, we captured some of it. Right. You know, your mark in the market and used all the time because that's a moving target. So we got the good side of it. This time. We're, you know, six percent in Q2 was down from our typical eight to 10 percent because you have to go ahead. And nobody was my only name for a while then when everything pick back up, because, you know, it's when inventory started to move both on the stock and was on the news side and on the other side. So, you know, that was that helped truck margins right there from a parts and service perspective. We passed more than doubled the growth of service in the quarter. So and remember, parts are a lot less margin of service parts runs in the twenty eight percent range is very bouncy.

[00:13:35] But service typically sixty five. So it's sort of a mix issue right there. I would expect that what you saw, I think is going to be cross for a combined fee and margin service margins. I don't think service is going to start accelerating back up, you know, keep more in line with the parts growth as we go forward. Like I said to Justin, you know, I'm not sure that will pick up a lot per day here in Q4. But staying where we're at, maybe picking up slightly on a per day basis is better than we usually do in November, December, January and February. It's just the way it works. So, you know, the reason for the overall margins being blended, margins being that was basically a mix issue, to be honest, with parts, you know, growing in a much higher rate than service in the quarter.

Jamie Cook

[00:14:25] Ok, and then just to follow up, you know, you talked about why the margins were better on the truck side, but how concerned are you about sort of what you're seeing specifically on vocational trends and just concerns out there with state municipal budgets? I'm just trying to understand your viewpoint on that.

Rusty Rush

[00:14:41] Yeah, I guess, you know, I, I don't I don't think vocational and totally the government, OK? I mean, I look at it in a broader perspective when you still see, you know, residential construction still strong at least, and a lot of areas where at I can tell you to me, I just barely got here for the call between the rent and all the stuff. I had to go through three different ways this morning to get here. Let me free. You couldn't believe how many trucks I try to get around all the aggregate stuff this morning. But no, you see, you know, we still believe that the vocational side will outside of oil and gas and I understand where commercial buildings that. But, you know, residential construction and a lot of areas where that is still pretty strong and we're still, you know, when it comes to customers that are in that type of construction, housing construction, you know, road construction, stuff like that, we're still seeing this little bit of our money spent around those areas. Now, sustainability folks, you know, I'm not I don't know what I can say. How sustainable. I got a six month window. I don't it's hard for me right now in this environment. I challenge anyone. Everybody puts stuff out there. But to give you a 12, 18 month outlook low and certainly we've got right now. But, you know, I feel decently blessed. The margins you saw in the quarter other than used, I don't think that's the most. Sustainable, still be solid, not six more in line with our typical eight to 10, I would look at the profit margins to remain where they're at, to be honest.

Jamie Cook

[00:16:17] Ok, great, that's helpful. Thanks again.

Rusty Rush

[00:16:20] Well, thank you, Jamie. Good to hear from you.

Operator

[00:16:26] And we have our next question from Andrew Rubin from Bank of America. Your line is open.

Andrew Obin

[00:16:33] Good morning.

Rusty Rush

[00:16:34] Good morning, Miss Obin.

Andrew Obin

[00:16:37] So a couple of questions. So how should we think about Rush in an upturn? Because, you know, you do have specific brands, you know, Peterbilt and Navistar, the big ones, I guess international and, you know, Pelago behave in terms of market share. Right. It sort of does not behave like the rest of the market. And then you have your own very industry specific exposure relative to the industry. So how should we think about your market share relative to the industry in an upturn over the next, you know, let's say 12 to 24 months? Are they going to be any big differences?

Rusty Rush

[00:17:21] No, I don't believe so, Andrew. I mean, when you look back, you know, I will tell you this. I would hope that our market share from Class A troughed in Q3, that five percent is the bottom. We have historically been, you know, high fives to, you know, low sixes in that range, depending on what the volume is. And I would anticipate, you know, that I would anticipate that we will you know, I don't think there was market share going to fall off. I look back at what they were 12, 19, a big year, and it was solid with solid on historical terms. And Navistar as market share, I believe, will continue to grow, you know, as they go forward. So I feel pretty good about where my class eight OEMs are. And I would look for us to maintain where we historically have been. Probably the biggest headwind for us, to be honest with you. I think I think we're capturing new customers. But we used to sell all the gas trucks. I feel like that's one of the reasons I'm so proud of the print. You know, in the press we've been having is because, you know, we've done that without Oji and we could have done that four or five years ago.

[00:18:33] So the organization has done a very nice job. You know, you look at our exposure, Oklahoma, Texas, Colorado, New Mexico, lots of oil and gas places. Right. And we've had to do all this with huge declines in those areas to sort of reinvent ourselves around it. And I'll let the results speak for themselves.

Andrew Obin

[00:18:55] I guess what I was. Yeah, what I was referring to, you know, maybe we can take it offline, but I always thought you have more exposure to vocational. And so, you know, at the peak of the cycle, when large, please come in, that's when you sort of lose some market share. It's just structurally and particularly Peterbilt wood. But that's what I was referring to specifically.

Rusty Rush

[00:19:17] If you think I think if you look historically, you could have been right, Andrew, back years ago. But if you look at the last up tick, no disrespect in 18 and 19, they grew market share and those were big market over the road years, too. So, you know, they broaden their customer base. And from our perspective, Navistar back in the game. OK, so we feel very good. I'm not worried about the size of the market, but getting our share just to answer.

[00:19:43] I wish I wish I had oil and gas and I do a whole lot better than see it. I don't. But we're picking up more over the road business than we historically have.

Andrew Obin

[00:19:51] So I can model you in line with ACT forecast effectively.

Rusty Rush

[00:19:55] That would be correct. I'm buying into their numbers right now. I mean, like I said, it's hard to look at 18 months or 15 months to me. But, you know, I feel pretty solid about activity that we're seeing right now. And, you know, the stuff that we're looking much, much better than, you know, we've seen little, obviously, during a pandemic. But even right prior to the pandemic, you know, we were not didn't seem to be getting the order intake that I've seen over the last forty five sixty days.

Andrew Obin

[00:20:23] And just a follow up question after you've done in the past, but could you just walk us through some of your key geographies in terms of and just walk us through, you know, what are you seeing in terms of economic activity by key geography? Thank you.

Rusty Rush

[00:20:38] Sure. Look at the coast. The start on the ends, both ends. Both are strong. You know, surprisingly, California, as everything going on, California has been pretty strong, especially in parts of the service perspective from an over the road in Florida, Florida while it took a dip. You know, we got really a lot of Orlando stores, you know, Mickey World, Mickey Mouse closed for a while and all the other stuff there. But it is with the growth in Florida driven by growth in population and construction, you know, has been good and also has always been a lot of car haulers. What you see with the automotive business is done right. So they've had varying factors, has picked Florida up.

[00:21:25] Is that. Work my way around the country. You know, we've hit you from a truck, sales is different, right? In my view. Drug sales are parts of the service perspective. Pretty solid. You know, Virginia, North Carolina, pretty solid. Ohio truck orders intake was good. Illinois coming around. You know, if you look for negatives, we're still we're still suffering, saying some of those areas. Arizona strong, too, by the way. I would I would tell you Arizona, California and Florida being the strongest, but we're still suffering in some areas there. Oil and gas related, not doing as well as we got in West Texas and into New Mexico and Colorado. So picking up better than what we were last year from a return perspective up in the Mountain West and Utah and Idaho. So, you know, I mean, it was just running around the map. But I'm looking at the map over here to my side and I will say, you know, it's broad based, but those would be the ones that stand out.

Andrew Obin

[00:22:40] And again, congratulations to you and your team on all the hard work and great results.

Rusty Rush

[00:22:46] Thank you. We appreciate your comments. As I said, it's a print that I'm very proud of.

Operator

[00:22:53] Thank you once again. If you would like to ask a question, you may press star one on your touchtone telephone. Your next question comes from the line of Joel Tiss from BMO. Your line is open.

Rusty Rush

[00:23:08] Mr. Tiss, take it off, Joel.

Operator

[00:23:22] Will go on, you continue, your line is open. I think we have to move on, we have two more questions, we have a question from the line of Shawn Kim from the Gabelli Funds. Your line is open.

Shawn Kim

[00:23:43] Hey, good morning, guys. I'm not Joel, but hopefully I suffice here. I just had a quick question for you guys. I had a quick question for you guys. Wanted to follow up on the big news from Friday. Obviously, you guys have a near the pavement, but Rusty wanted to get your thoughts on the Navistar trade announcement when you think the final documents will be signed. Anything else that could shed some light on that combination and how that impacts you guys long term?

Rusty Rush

[00:24:09] Well, you know, as far as the closure of the deal, I'm not totally in the middle of all that I would expect I would imagine that they've already done, you know, been pretty far along the path of a due diligence perspective. They announced that prior, remember? So I would expect that, you know, they'll get this document signed here, I think, the next month or so. And then I would imagine working for the SCC and things like that sometime, sometimes, or I would think, you know, like winter. Spring, that would be my guess. But I know that that's something they would have to say. I'm just going to conjecture on my part. What do I think about it makes it's great. I think it's great all the time. Brings it brings a global a strong global partner. You know, when you talk about pray to God, you, you know, as being a partner to leverage also from a new product perspective going forward, especially with the amount of money it's going to take with all this new technology, you know, with the green wave and new technology over the next decade or plus as we transition, you know, the transition is going to happen some day, is not going to be as fast as people say. But that transition will happen and that that takes a lot of money. So they have the ability to leverage off the, you know, the global efforts of greater not just a standalone. So from my perspective, that's a win big for both organizations.

[00:25:38] Obviously, you know, I wake up in the north up North American grant coming to this country and starting from scratch. It just didn't work that way. The. So I feel good about it. I'm really excited about it. I think it's needed to happen. No disrespect to the old Napster, but from a long term inauguration and growth of the organization, it's great. That's great. It's great. I look forward to. It's not something that warrants for. But remember, they've already been you know, they've already had helpage agreements, you know, cut costs and things like that, already joined forces over the last. So I think unlike a normal system there. Well, OK. Well, it started prior to this. I mean, this is just the concluding donation of what the way it was supposed to work when you bought a piece four years ago.

Shawn Kim

[00:26:46] I appreciate the color that tore the grass again and quarter. Thank you very much.

Operator

[00:26:52] Thank you. I think we have the line of Joel Tiss from BMO, can you hear me now?

Rusty Rush

[00:27:02] Ok. Make sure you're awake, Joe. That's all I was for.

Joel Tiss

[00:27:07] Well, the first question is the most important one must be how did you manage with a twenty five percent salary cut? I think everybody knows your kind of paycheck to paycheck.

Rusty Rush

[00:27:17] Yeah, well, actually, I'm still I've still got money that I've still given. I still haven't taken mine. We did bring back, by the way, the same question we did bring back all by October. We started bringing back some of it was in Q3. And that's part of where you have a little bit of expense. Grief is we reinstate the only thing we haven't reinstated is my paycheck and our 401k. But all the normal reduction things that we did, those things will be reinstated as we plan, as we continue to get more clarity, hopefully one day maybe to get my money back, not back, just get started back because my creditors are seriously after me. Joe. You're right,

Steve Keller

[00:27:57] Joe. We're making sure he has enough money for tequila and food.

[00:28:01] So I get tequila and food allowance.

Joel Tiss

[00:28:04] So that's it. That's good. And everyone's kind of dancing around. And I just wondered, do you think, like on a three to five year basis, that your Navistar dealerships are going to be a lot more profitable with what's going on with Troughton or it's too early to tell if it's not going to matter.

Rusty Rush

[00:28:24] I know you better believe it matters because I still the returns are not anywhere, you know well where I'd like them. Right. I don't have to go back to the history of the last decade or so. Those returns have not gotten there. Are they getting better? You better believe it. OK, for two reasons. One, you know, the drove the Organa Navistar is, you know, getting back on solid footing for getting freight on. And, you know, our internal you know, our internal growth taken after we got through all the Mac force and then, you know, our internal from a personnel perspective and from any other perspectives, just getting our arms around it. So when you add that together and then through freight on the mix, you better believe that's still what I believe is one of the biggest growth pieces of the organization. I believe is, you know, we don't have the fifty five years of being a leader reliever like we do with Navistar. So that's only going to get better with Reagan. That's only going to help. Like I said, they can stay in the ballgame from what we've always new technology stuff I'd be having to worry about, you know, capex budgets quite as tight as they probably had to have been. So the investments that will be made in product and people and the whole thing across the board can be nothing but a win.

[00:29:43] And we're still we're still in the third inning run these things and we're getting better about where we were from now and where we were a few years ago. So, yeah, that's got a lot of runway on my mind. You better believe it.

Joel Tiss

[00:29:58] And then with all the disruption in the market, that's the last one for me, all the disruption in the market, are you finding more acquisitions or is that something you're likely to get back into that or there's too much work to do internally to drive profitability?

Rusty Rush

[00:30:12] I'd like to find some. But unlike me, they all spelled PPP. Ok, so that propped up everybody and then the markets come back strong. No, it was it was such a sharp, steep decline and then rose back up with what happened with the freight markets, you know, and is freight is rocketing back up because everybody was buying whole goods with all the money they got. So, you know, so everybody's you didn't see if you had told me what was.

[00:30:44] I didn't really foresee exactly that happening back in, say, May and June, you know, but that's exactly what happened. It was such a steep drop. And then to come back from a, you know, transportation perspective because you had to fill the shelves back up first year to fill the inventory, build itself back up. So, you know, you've seen what's Price been doing and what everybody's the models being run. So, you know, unfortunately, I have there haven't been much, you know, M&A, but I don't think we're not always looking for something to show up somewhere, I'm sure somewhere down the line.

Joel Tiss

[00:31:17] All right. Thank you very much. You bet.

Operator

[00:31:22] Thank you once again, if you would like to ask a question and be press star one on your touchtone telephone. Because I'm not showing any further questions at this time, I would like to turn the conference back to Mr. Rich, chairman, CEO and president.

Rusty Rush

[00:31:42] Well, this will be the last time I speak for everyone once we get to an election and then the holidays and everything else. And I'm not going to worry about the first election, but from a holiday perspective, I wish that each and every one of you all the best with your families. It's been a long year for everyone, so please make sure to enjoy and savor the moments with your families throughout the holidays that we will see you and talk to you again in February. Thank you very much.

Operator

[00:32:09] Thank you. Ladies and gentlemen, this concludes today's conference call. Thank you all for joining me. Now disconnect.