NASDAQ:PRTS CarParts.com Q1 2025 Earnings Report $0.84 +0.00 (+0.45%) Closing price 05/23/2025 04:00 PM EasternExtended Trading$0.85 +0.01 (+1.20%) As of 05/23/2025 07:50 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast CarParts.com EPS ResultsActual EPS-$0.27Consensus EPS -$0.12Beat/MissMissed by -$0.15One Year Ago EPSN/ACarParts.com Revenue ResultsActual Revenue$147.38 millionExpected Revenue$146.14 millionBeat/MissBeat by +$1.23 millionYoY Revenue GrowthN/ACarParts.com Announcement DetailsQuarterQ1 2025Date5/13/2025TimeAfter Market ClosesConference Call DateTuesday, May 13, 2025Conference Call Time5:00PM ETUpcoming EarningsCarParts.com's Q2 2025 earnings is scheduled for Monday, July 28, 2025, with a conference call scheduled on Tuesday, July 29, 2025 at 5:00 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by CarParts.com Q1 2025 Earnings Call TranscriptProvided by QuartrMay 13, 2025 ShareLink copied to clipboard.There are 3 speakers on the call. Operator00:00:00Good afternoon. At this time, all participants will be in listen only mode. Please note this call is being recorded. I would now like to pass the conference over to our host, Ryan Lockwood, Chief Financial Officer. Please go ahead. Speaker 100:00:17Hello, everyone, and thank you for joining us for the CarParts.com First Quarter 20 20 5 Conference Call. Joining me today is David Mignon, Chief Executive Officer. Before I turn it over to David to start the call, I have some important disclosures. The prepared remarks contain certain forward looking statements related to the business under the federal securities laws. Actual results may differ materially from those contained in or implied by these forward looking statements due to risks and uncertainties associated with the business. Speaker 100:00:47For a discussion of the material risks and other important factors that could affect results, please refer to the Carpatharts.com annual report on Form 10 ks and the quarterly reports on Form 10 Q, each as filed with the SEC, both of which can be found on our Investor Relations website. On the call, both GAAP and non GAAP financial measures will be discussed. A reconciliation of GAAP to non GAAP financial measures is provided in the CarPrest.com press release issued today. With that, I would now like to turn Speaker 200:01:17the call over to David. Thank you, Ryan, and thanks, everyone, for joining us today. At the outset, let me say that today, we are not going to take questions related our strategic alternatives process beyond what we announced on March 5. That process is ongoing and being overseen by our Board of Directors with the assistance of financial and legal advisors. Now turning to tariffs. Speaker 200:01:40While the current headlines are broadly known, the final rates and applications have not been finalized yet. Our internal team, including leaders from trade compliance, procurement, forecasting, merchandising and pricing are focused on navigating and helping us make decisions. Specific to our exposure, less than onefour of our private label products are imported from China and approximately twothree from Taiwan. Over time, we believe tariffs will raise part prices in the market. Historically, tariff increases have benefited our industry as used car values are expected to rise faster than the vehicle repair costs. Speaker 200:02:22Our team is working on mitigating tariff impacts through a variety of actions, including pre buying extra inventory prior to the main tariff implementation, potential cost concessions from vendor partnerships, dynamic pricing adjustments, and identifying supply chain and operating expenses optimization. Over the last several weeks, our team conducted a comprehensive review of every product at the vendor level, assessing tariff exposure based on country of origin, material composition and other relevant factors. For products sourced from Taiwan, the majority of our purchases are currently subject to tariffs of approximately 25%. For products from China, current tariff rates range from 55% to 145%, but we are strongly encouraged by the joint announcement made yesterday between The U. S. Speaker 200:03:15And China Governments and look forward to reviewing the details as it relates to its impact on our products and supply chain. We will be monitoring in real time any changes in trade policy or regulations. Turning to 2025 performance. In the first two months, we saw soft consumer demand, very bad weather in many parts of the country on a relative basis, and our company was not immune. In addition, we experienced a significant increase in cost per click rates on search engines, which we believe is a response to the growth of AI models taking share from traditional search, while at the same time selling prices for parts online fell as retailers tried to capture as much demand as possible. Speaker 200:03:58While our top line and operating expenses came in line with our expectations, the gross margin compression and advertising spend climate put significant pressure on our profitability in the first quarter. This reinforces how critical it is for us to continue upgrading our customer base with higher income and less price sensitive customers to diversify our acquisition mix. Realigning our business around products to target higher margin sales, adding high margin fee income, growing customer lifetime value with our mobile app and increasing our focus on wholesale and other commercial opportunities. We continue to believe these are the right bets as we counteract these external pressures. Our first quarter results were disappointing, especially as measured by our profitability. Speaker 200:04:45But behind the scenes, we made a lot of progress and we're seeing momentum with our 2025 plan. For the first six weeks of the second quarter, we are seeing revenues up double digits year over year on sequentially lower marketing spend. Our focus on repeat customers, mobile app traffic and high margin fee income are all paying off and we're seeing record levels for all three. While early in the process, we're slowly changing our customer acquisition mix and margin profile to transform our company's profitability. As we continue to scale these initiatives and grow our assortment, we can leverage our supply chain and fulfillment network, increase operating leverage and return the business to strong profitable growth. Speaker 200:05:30On the wholesale side, we have onboarded over 700 new commercial customers and continue to leverage our catalog to target collision shops and mechanics in key markets. During the balance of this fiscal year, we will continue to focus on navigating a dynamic macroeconomic environment, including tariffs and volatile prices. Given the uncertain environment, we are redoubling our focus on growth and profitability, supported by a strong foundation already in place. We're confident that our current investments will help unlock future opportunities and drive stronger financial performance. While certain investments will yield results sooner than others, we remain flexible, continuously refining our approach to achieve sustainable profitability. Speaker 200:06:17We have important work ahead and we will be laser focused on execution. Before covering our financial results, I want to reiterate some of the strategic initiatives that are starting to pay off. Number one, we have scaled and optimized our vertically integrated supply chain with tightly controlled in house and often proprietary capabilities, leading to an attractive product margin in the mid-50s percent. We have extra capacity in our network, which we can leverage as the business grows and drive more operating leverage. Number two, we continued investing in our fitment based proprietary catalog. Speaker 200:06:55This catalog, which was built and refined over the last twenty years, serves a full assortment across collision, mechanical, private label and branded products with the ability to build custom sets and kits. Today, our catalog contains 83,000 private label SKUs, 1,500,000 premium branded SKUs and continues to grow each year. Number three, we continue to be the second largest importer of aftermarket collision parts in The U. S. And the world's number one seller on eBay Motors. Speaker 200:07:28As a reminder, our collision parts account for approximately two third of our purchases and are primarily sourced from Taiwan, which is not currently subject to the same high tariffs imposed on products made in China. Number four, we fully replatformed our CarParts.com website with a best in class mobile first fit specific user experience, which generates 100,000,000 annual visits and serves 10,000,000 customers with a new search, product recommendations, and fee income capabilities. Our best in class mobile app is well on the way to 1,000,000 users and now accounts for over 10% of our e commerce revenue and growing while allowing for a long term reduction our paid versus non paid traffic mix and associated customer acquisition costs. And five, our highly profitable wholesale business recently launched same and next day last mile delivery in both the Texas and North Florida market with a contribution margin up to three times higher than e commerce. We are leveraging real time integrations with shop management and estimating systems to drive profitable volume to this business. Speaker 200:08:37While the first months of the year presented their share of challenges, we made significant progress in key areas that position us well for future growth. I'll now turn it over to Ryan to review our financial results. Thank you, David. In the first quarter, Speaker 100:08:52we reported revenues of $147,400,000 down 11% from 166,300,000 last year. The decline was primarily driven by inclement weather, softer consumer demand and continued pressures in lighting and mirrors. Gross profit for the quarter was 47,300,000.0 down 12% compared to prior year. Gross profit margin was 32.1%, down slightly from 32.4% in the prior year period. The decline in gross margin was primarily driven by increased outbound transportation costs. Speaker 100:09:23GAAP net loss for the quarter was $15,300,000 compared to a loss of $6,500,000 in the prior year period, primarily driven by lower gross margins and higher marketing costs. For the first quarter, adjusted EBITDA loss was $6,200,000 down from adjusted EBITDA of $1,100,000 in the prior year period, primarily due to soft consumer demand and increased competitive pressure in performance marketing. Turning to the balance sheet, we ended the quarter with $38,500,000 of cash and no revolver debt, and we generated $300,000 of interest income. Earlier this year, in the face of uncertainty, we started proactively investing in inventory ahead of the tariffs to improve the continuity of our supply chain. This works out to about two extra weeks of stock shift cost of goods sold. Speaker 100:10:09As a reminder, our inventory has very low obsolescence risk and no risk of spoilage, and our pre freight margins are over 50%. Our inventory balance was $94,000,000 at quarter end versus $90,000,000 at the end of twenty twenty four. As of the end of the quarter, our cash position and untapped revolver continue to provide the necessary liquidity to support our business plan. I'll now turn it back over to David for final remarks. Speaker 200:10:35Thank you, Ryan. Looking ahead, we are confident that the foundation and improvements across our business secured in the last eighteen months have set us on a path to achieve long term sustainable positive net income and adjusted EBITDA. Our priorities in 2025 include: one, continue to expand our product offering to attract new customers and increase average basket size Two, monetize our 100,000,000 annual visits and customer list with high margin fee income. Three, scale our B2B offering with last mile transportation and higher touch sales in key markets. Four, grow our mobile app business to diversify our marketing mix and deliver greater customer lifetime value. Speaker 200:11:17Five, maintain a strong balance sheet with a focus on managing cash flow and inventory levels while navigating the uncertainty of the tariff environment. We are committed to maximizing long term shareholder value as we focus on capturing the growing opportunity in front of us within the highly fragmented and underserved $400,000,000,000 auto parts market. I would like to thank our global team for their resilience, hard work and commitment as we continue to transform our business. Thank you everyone for joining today's call. We'll now turn it back over to the operator. Operator00:11:52This concludes today's conference call. Thank you for participating. You may now disconnect.Read morePowered by Key Takeaways Management highlighted its tariff exposure, noting less than one-fourth of private label products come from China and two-thirds from Taiwan, and it is mitigating impacts through pre-buying inventory, vendor cost concessions, dynamic pricing, and supply chain optimizations. The company reported Q1 revenues down 11% to $147.4 million, a GAAP net loss of $15.3 million (versus $6.5 million loss a year ago), and an adjusted EBITDA loss of $6.2 million, citing weak demand, weather and higher marketing costs. Early Q2 results show double-digit revenue growth year-over-year on lower marketing spend, driven by increases in repeat customers, mobile app traffic and high-margin fee income. Key strategic initiatives are gaining traction, including a vertically integrated supply chain delivering mid-50s percent product margins, an 83,000-SKU private label catalog, a replatformed mobile-first website and an app nearing 1 million users. The wholesale business has onboarded over 700 commercial customers and launched same/next-day delivery in key markets, offering contribution margins up to three times higher than e-commerce. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallCarParts.com Q1 202500:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) CarParts.com Earnings HeadlinesCarParts.com’s SWOT analysis: navigating challenges in auto parts e-commerceMay 24 at 2:44 PM | uk.investing.comCarParts.com (NASDAQ:PRTS) Raised to Hold at Wall Street ZenMay 24 at 3:05 AM | americanbankingnews.comMusk’s Project Colossus could mint millionairesI predict this single breakthrough could make Elon the world’s first trillionaire — and mint more new millionaires than any tech advance in history. And for a limited time, you have the chance to claim a stake in this project, even though it’s housed inside Elon’s private company, xAI.May 25, 2025 | Brownstone Research (Ad)CarParts.com Stock Short Interest Report | NASDAQ:PRTS | BenzingaMay 17, 2025 | benzinga.comStockNews.com Downgrades CarParts.com (NASDAQ:PRTS) to SellMay 17, 2025 | americanbankingnews.comAnalysts Offer Insights on Consumer Cyclical Companies: CarParts.com Inc (PRTS), Cannae Holdings (CNNE) and Home Depot (HD)May 16, 2025 | theglobeandmail.comSee More CarParts.com Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like CarParts.com? Sign up for Earnings360's daily newsletter to receive timely earnings updates on CarParts.com and other key companies, straight to your email. Email Address About CarParts.comCarParts.com (NASDAQ:PRTS), together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories. The company sells its products to individual customers through its flagship website www.carparts.com and app; online marketplaces, including third-party auction sites and shopping portals; and auto parts wholesale distributors. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.View CarParts.com ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Booz Allen Hamilton Earnings: 3 Bullish Signals for BAH StockAdvance Auto Parts Jumps on Surprise Earnings BeatAlibaba's Earnings Just Changed Everything for the StockCisco Stock Eyes New Highs in 2025 on AI, Earnings, UpgradesSymbotic Gets Big Earnings Lift: Is the Stock Investable Again?D-Wave Pushes Back on Short Seller Case With Strong EarningsAppLovin Surges on Earnings: What's Next for This Tech Standout? Upcoming Earnings PDD (5/27/2025)AutoZone (5/27/2025)Bank of Nova Scotia (5/27/2025)NVIDIA (5/28/2025)Synopsys (5/28/2025)Bank of Montreal (5/28/2025)Salesforce (5/28/2025)Haleon (5/28/2025)Costco Wholesale (5/29/2025)Marvell Technology (5/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. Start Your 30-Day Trial MarketBeat All Access Features Best-in-Class Portfolio Monitoring Get personalized stock ideas. Compare portfolio to indices. Check stock news, ratings, SEC filings, and more. Stock Ideas and Recommendations See daily stock ideas from top analysts. Receive short-term trading ideas from MarketBeat. Identify trending stocks on social media. Advanced Stock Screeners and Research Tools Use our seven stock screeners to find suitable stocks. Stay informed with MarketBeat's real-time news. Export data to Excel for personal analysis. Sign in to your free account to enjoy these benefits In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer. Sign In Create Account Your Email Address: Email Address Required Your Password: Password Required Log In or Sign in with Facebook Sign in with Google Forgot your password? Your Email Address: Please enter your email address. Please enter a valid email address Choose a Password: Please enter your password. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Create My Account (Free) or Sign in with Facebook Sign in with Google By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
There are 3 speakers on the call. Operator00:00:00Good afternoon. At this time, all participants will be in listen only mode. Please note this call is being recorded. I would now like to pass the conference over to our host, Ryan Lockwood, Chief Financial Officer. Please go ahead. Speaker 100:00:17Hello, everyone, and thank you for joining us for the CarParts.com First Quarter 20 20 5 Conference Call. Joining me today is David Mignon, Chief Executive Officer. Before I turn it over to David to start the call, I have some important disclosures. The prepared remarks contain certain forward looking statements related to the business under the federal securities laws. Actual results may differ materially from those contained in or implied by these forward looking statements due to risks and uncertainties associated with the business. Speaker 100:00:47For a discussion of the material risks and other important factors that could affect results, please refer to the Carpatharts.com annual report on Form 10 ks and the quarterly reports on Form 10 Q, each as filed with the SEC, both of which can be found on our Investor Relations website. On the call, both GAAP and non GAAP financial measures will be discussed. A reconciliation of GAAP to non GAAP financial measures is provided in the CarPrest.com press release issued today. With that, I would now like to turn Speaker 200:01:17the call over to David. Thank you, Ryan, and thanks, everyone, for joining us today. At the outset, let me say that today, we are not going to take questions related our strategic alternatives process beyond what we announced on March 5. That process is ongoing and being overseen by our Board of Directors with the assistance of financial and legal advisors. Now turning to tariffs. Speaker 200:01:40While the current headlines are broadly known, the final rates and applications have not been finalized yet. Our internal team, including leaders from trade compliance, procurement, forecasting, merchandising and pricing are focused on navigating and helping us make decisions. Specific to our exposure, less than onefour of our private label products are imported from China and approximately twothree from Taiwan. Over time, we believe tariffs will raise part prices in the market. Historically, tariff increases have benefited our industry as used car values are expected to rise faster than the vehicle repair costs. Speaker 200:02:22Our team is working on mitigating tariff impacts through a variety of actions, including pre buying extra inventory prior to the main tariff implementation, potential cost concessions from vendor partnerships, dynamic pricing adjustments, and identifying supply chain and operating expenses optimization. Over the last several weeks, our team conducted a comprehensive review of every product at the vendor level, assessing tariff exposure based on country of origin, material composition and other relevant factors. For products sourced from Taiwan, the majority of our purchases are currently subject to tariffs of approximately 25%. For products from China, current tariff rates range from 55% to 145%, but we are strongly encouraged by the joint announcement made yesterday between The U. S. Speaker 200:03:15And China Governments and look forward to reviewing the details as it relates to its impact on our products and supply chain. We will be monitoring in real time any changes in trade policy or regulations. Turning to 2025 performance. In the first two months, we saw soft consumer demand, very bad weather in many parts of the country on a relative basis, and our company was not immune. In addition, we experienced a significant increase in cost per click rates on search engines, which we believe is a response to the growth of AI models taking share from traditional search, while at the same time selling prices for parts online fell as retailers tried to capture as much demand as possible. Speaker 200:03:58While our top line and operating expenses came in line with our expectations, the gross margin compression and advertising spend climate put significant pressure on our profitability in the first quarter. This reinforces how critical it is for us to continue upgrading our customer base with higher income and less price sensitive customers to diversify our acquisition mix. Realigning our business around products to target higher margin sales, adding high margin fee income, growing customer lifetime value with our mobile app and increasing our focus on wholesale and other commercial opportunities. We continue to believe these are the right bets as we counteract these external pressures. Our first quarter results were disappointing, especially as measured by our profitability. Speaker 200:04:45But behind the scenes, we made a lot of progress and we're seeing momentum with our 2025 plan. For the first six weeks of the second quarter, we are seeing revenues up double digits year over year on sequentially lower marketing spend. Our focus on repeat customers, mobile app traffic and high margin fee income are all paying off and we're seeing record levels for all three. While early in the process, we're slowly changing our customer acquisition mix and margin profile to transform our company's profitability. As we continue to scale these initiatives and grow our assortment, we can leverage our supply chain and fulfillment network, increase operating leverage and return the business to strong profitable growth. Speaker 200:05:30On the wholesale side, we have onboarded over 700 new commercial customers and continue to leverage our catalog to target collision shops and mechanics in key markets. During the balance of this fiscal year, we will continue to focus on navigating a dynamic macroeconomic environment, including tariffs and volatile prices. Given the uncertain environment, we are redoubling our focus on growth and profitability, supported by a strong foundation already in place. We're confident that our current investments will help unlock future opportunities and drive stronger financial performance. While certain investments will yield results sooner than others, we remain flexible, continuously refining our approach to achieve sustainable profitability. Speaker 200:06:17We have important work ahead and we will be laser focused on execution. Before covering our financial results, I want to reiterate some of the strategic initiatives that are starting to pay off. Number one, we have scaled and optimized our vertically integrated supply chain with tightly controlled in house and often proprietary capabilities, leading to an attractive product margin in the mid-50s percent. We have extra capacity in our network, which we can leverage as the business grows and drive more operating leverage. Number two, we continued investing in our fitment based proprietary catalog. Speaker 200:06:55This catalog, which was built and refined over the last twenty years, serves a full assortment across collision, mechanical, private label and branded products with the ability to build custom sets and kits. Today, our catalog contains 83,000 private label SKUs, 1,500,000 premium branded SKUs and continues to grow each year. Number three, we continue to be the second largest importer of aftermarket collision parts in The U. S. And the world's number one seller on eBay Motors. Speaker 200:07:28As a reminder, our collision parts account for approximately two third of our purchases and are primarily sourced from Taiwan, which is not currently subject to the same high tariffs imposed on products made in China. Number four, we fully replatformed our CarParts.com website with a best in class mobile first fit specific user experience, which generates 100,000,000 annual visits and serves 10,000,000 customers with a new search, product recommendations, and fee income capabilities. Our best in class mobile app is well on the way to 1,000,000 users and now accounts for over 10% of our e commerce revenue and growing while allowing for a long term reduction our paid versus non paid traffic mix and associated customer acquisition costs. And five, our highly profitable wholesale business recently launched same and next day last mile delivery in both the Texas and North Florida market with a contribution margin up to three times higher than e commerce. We are leveraging real time integrations with shop management and estimating systems to drive profitable volume to this business. Speaker 200:08:37While the first months of the year presented their share of challenges, we made significant progress in key areas that position us well for future growth. I'll now turn it over to Ryan to review our financial results. Thank you, David. In the first quarter, Speaker 100:08:52we reported revenues of $147,400,000 down 11% from 166,300,000 last year. The decline was primarily driven by inclement weather, softer consumer demand and continued pressures in lighting and mirrors. Gross profit for the quarter was 47,300,000.0 down 12% compared to prior year. Gross profit margin was 32.1%, down slightly from 32.4% in the prior year period. The decline in gross margin was primarily driven by increased outbound transportation costs. Speaker 100:09:23GAAP net loss for the quarter was $15,300,000 compared to a loss of $6,500,000 in the prior year period, primarily driven by lower gross margins and higher marketing costs. For the first quarter, adjusted EBITDA loss was $6,200,000 down from adjusted EBITDA of $1,100,000 in the prior year period, primarily due to soft consumer demand and increased competitive pressure in performance marketing. Turning to the balance sheet, we ended the quarter with $38,500,000 of cash and no revolver debt, and we generated $300,000 of interest income. Earlier this year, in the face of uncertainty, we started proactively investing in inventory ahead of the tariffs to improve the continuity of our supply chain. This works out to about two extra weeks of stock shift cost of goods sold. Speaker 100:10:09As a reminder, our inventory has very low obsolescence risk and no risk of spoilage, and our pre freight margins are over 50%. Our inventory balance was $94,000,000 at quarter end versus $90,000,000 at the end of twenty twenty four. As of the end of the quarter, our cash position and untapped revolver continue to provide the necessary liquidity to support our business plan. I'll now turn it back over to David for final remarks. Speaker 200:10:35Thank you, Ryan. Looking ahead, we are confident that the foundation and improvements across our business secured in the last eighteen months have set us on a path to achieve long term sustainable positive net income and adjusted EBITDA. Our priorities in 2025 include: one, continue to expand our product offering to attract new customers and increase average basket size Two, monetize our 100,000,000 annual visits and customer list with high margin fee income. Three, scale our B2B offering with last mile transportation and higher touch sales in key markets. Four, grow our mobile app business to diversify our marketing mix and deliver greater customer lifetime value. Speaker 200:11:17Five, maintain a strong balance sheet with a focus on managing cash flow and inventory levels while navigating the uncertainty of the tariff environment. We are committed to maximizing long term shareholder value as we focus on capturing the growing opportunity in front of us within the highly fragmented and underserved $400,000,000,000 auto parts market. I would like to thank our global team for their resilience, hard work and commitment as we continue to transform our business. Thank you everyone for joining today's call. We'll now turn it back over to the operator. Operator00:11:52This concludes today's conference call. Thank you for participating. You may now disconnect.Read morePowered by