FS KKR Capital Corp. Third Quarter 2026 Financial Results Conference Call - VITRIA TECHNOLOGY INC

Good morning, ladies and gentlemen. Welcome to FSKKR Capital Corp's third quarter 2026 earnings conference call. Your lines will be in a listen-only mode during remarks by FSK's management. At the conclusion of the company's remarks, we will begin the question and answer session, at which time I will give you instructions on entering the queue. Please note that this conference call is being recorded. At this time, Anna Kleinhan, head of investor relations, will proceed with the introduction. Ms. Klein, you may begin. Thank you. Good morning and welcome to FSKKR Capital Corp's third quarter 2026 earnings conference call. Please note that FSKR capital corp may be referred to as FSK, the fund, or the company throughout the call. Today's conference call is being recorded and an audio replay of the call will be available for 30 days. Replay information is included in a press release that FSK issued this morning. In addition, FSK has posted on its website a presentation containing supplemental financial information with respect to its portfolio and financial performance for the quarter ended September 30, 2026. A link to today's webcast and the presentation is available on the For Investors section of the company's website under Events and Presentations. Please note that this call is the property of FSK. Any unauthorized rebroadcast of this call in any form is strictly prohibited. Today's conference call includes forward-looking statements that are not historical facts, including without limitation, statements with regard to future events or future performance or financial conditions, statements regarding share repurchase activity, distribution levels and frequency, expectations for net investment income levels in future quarters, and the financial position, business strategy, and plans and objectives of management for FSK's future operations. Words such as anticipate, believe, expect, intend, project, and future for similar expressions indicate a forward-looking statement, although not all forward-thinking statements include these words. These forward-looking statements are not guarantees of performance or events and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict, and could cause our actual results for future events to differ materially from those expressed or forecasted in these forward- looking statements for any reason. We ask that you refer to FSTA's most recent filings with the SEC for important factors and risks that could cause actual results or future events to differ materially from these statements. The forward-looking statements included on this call are based on information available to FSK today and current expectations, forecasts, and assumptions, and involve a number of judgments, risks, and uncertainties. Except as required by the federal securities laws, FSK undertakes no obligation to update revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In addition, this call will include certain non-GAAP financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles. These non-GAP financial measures are not in accordance or an alternative to measures prepared in accordance with GAAP and may be different from non-gap financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate FSK's results of operations in conjunction with their corresponding GAAP measures. For such non-GAP measures, reconciliation to the most directly comparable GAAP measure can be found in FSK third quarter earnings release that was furnished with the SEC on on November 5th, 2026, and in the presentation posted on our website. To obtain copies of the company's latest SEC filings, please visit FSK's website. Speaking on today's call will be Michael Forman, Chief Executive Officer and Chairman, Dan Pietrzak, Chief Investment Officer and President, and Stephen Lilly, Chief Financial Officer. Also joining us on the call today are Co-Chief Operating Officers Drew O'Toole and Ryan Wilson. now turn the call over to Michael. Thank you, Anna, and good morning, everyone. Thank you for joining FSK's third quarter 2026 earnings conference call. During the third quarter, FSK generated net investment income totaling 46 cents per share and adjusted net investment income totaled 46 cents for share. As of September 30th, our net asset value per share was $18.25. On October 8th, we announced that our board declared a fourth quarter 2026 distribution of $0.44 per share to common stockholders and a special distribution of $.20 per share to common stakeholders. Both distributions will be paid in December of this year. As we have indicated on prior earnings calls, we expect our quarterly distribution level will fluctuate as our net investment income varies on a quarter-to-quarter basis. The special distribution amount represents a portion of FSK's estimated accumulated spillback income and is intended to distribute additional taxable income to shareholders in connection with the company's maintenance of its treatment as a regulated investment company under the Internal Revenue Code. Our third quarter net investment income was positively impacted by a one-time portfolio company dividend, which Dan will discuss during his portion of the call. In terms of FSK's strategic objectives, while we recognize there is more work to be done, we are pleased with the progress we are making. Since the stock buyback plan's inception on June 29th through October 30th, we have purchased $90 million worth of common stock, representing 30% of our $300 million program. The activity has resulted in the company's repurchasing approximately 8 million shares of common stock. We are continuing to achieve our goal of delivering a per-share annualized dividend rate of 8% to 9% of net asset value per share to our common shareholders. We're continuing to work through certain non-income-producing assets and investments-facing challenges within our portfolio, and we are continuing our longer-term focus of transitioning our investment portfolio to more first-lane senior secured positions. As we move into the fourth quarter of 2026 and begin contemplating the year ahead, we remain focused on achieving our strategic objectives. And with that, I'll turn the call over to Dan. Thanks, Michael. The market environment continues to be shaped by uncertainty surrounding geopolitical tensions, monetary policy, and the evolution and capital requirements of AI. against this backdrop we believe economic and corporate fundamentals continue to demonstrate resilience we believe private credit portfolios offer attractive characteristics in the current environment including directly negotiated transactions predominantly floating rate structures and diversified exposure across issuers and industries during the third quarter we We continued making progress on the strategic actions the FSK Care Advisor announced earlier this year to help enhance the financial profile of FSK. During the third quarter, we repurchased 6.2 million shares of common stock, or approximately $69 million, at an average price of $11.24 per share. Our third quarter share repurchases were accretive to our net asset value per share by 16 cents. Since the beginning of the fourth quarter through October 30th, we have repurchased 1.5 million shares, or approximately $17 million, bringing the cumulative value of share repurchases to $90 million since the $300 million common stock repurchase program commenced on June 29th. And as a reminder, beginning in the second quarter of 2026, KKR agreed to waive its portion of the subordinated income incentive fee for four consecutive quarters. This waiver had a positive $12 million impact on our third quarter net investment income. As Michael mentioned, during the third quarter, FSK's net investment was positively impacted by a $25 million non-recurring dividend from our portfolio company, Belk. This dividend increased our third-quarter net investment per share by $0.08. According to our investment activity, during the third quarter we originated approximately $335 million of new investments. Our new investments combined with $442 million of sales and repayments equates to a net portfolio decrease of $107 million during the 3rd quarter. We continue to focus on upper middle market companies with EBITDA in the $50 to $150 million range across a diverse set of industries and sectors. As of September 30th, the weighted average EBITDA of our portfolio was $235 million, and the median EBITTA was $131 million. Our portfolio companies reported a weighted average year-over-year EBITda growth rate of approximately 4% across companies in which we have invested in since April of 2018. Interest coverage levels remain healthy, with median third quarter coverage of two times. In August, Velocity Financial publicly announced its intention to acquire Torac, a business purpose real estate lending platform. KKR originally invested in Torac in 2016, and since that time has worked closely with Torac's management team to scale the platform considerably. As of September 30th, Romanew Thorax Holding Company was FSK's eighth largest investment. The acquisition is currently expected to close in the fourth quarter of 2026, subject to satisfactory closing conditions. As of Sept. 30th non-accruals represented 6.4% of our portfolio on a cost basis and 3.4 percent of our Portfolio on a fair value basis. compared to 7.1% of our portfolio on a cost basis and 3.8% of our portfolio, on a fair value basis, as of June 30th. During the third quarter, two investments, 3 Pillar Global and New Era Technology, were added to non- accrual status. These new non-accruals total approximately 142 million dollars of costs and 102 million dollars of fair value across our investment portfolio. Medallia was restructured during the third quarter into a new $66 million first lien loan, a new 42 million dollar preferred equity investment, and a new 14 million dollar common equity investment. Following the restructuring, Medallias was removed from non-accrual status during the third quarter. We'd like to remind investors, as with any restructurings, risk and uncertainties remain with respect to future performance. And with that, I'll turn the call over to Stephen to go through our financial results. Thanks, Dan. As of September 30th, 2026, FSK's investment portfolio had a fair value of $11.3 billion, consisting of 234 portfolio companies. At the end of the third quarter, our 10 largest portfolio companies represented approximately 21% of the fair value of our portfolio, which is in line with prior quarters. We remain focused on senior secured investments, as our portfolio consisted of approximately 59% first lien loans and 63% senior secured debt as of September 30th. In addition, our joint venture represented approximately 14% of the fair value of our portfolio as of the end of the third quarter. As a result, when looking through to the investments in our joint venture, first lien loans total approximately 69% of our total portfolio and senior secured investments total approximately 73% of our total portfolio as of September 30th. The weighted average yield on accruing debt investments was 10% as of September 30, as compared to 9.8% during the second quarter. Turning to our quarterly operating results, our total investment income was $294 million for the third quarter, an increase of $4 million compared to the second quarter. The primary components of our total quarterly investment income were as follows. Total interest income was 206 million dollars, representing a decrease of 11 million dollars quarter over quarter. The decline in interest income primarily was due to a reduction in the size of our investment portfolio and assets placed on non-accrual during the second and third quarters. Dividend and fee income totaled $88 million, an increase of $15 million quarter over quarter. Our total dividend and fee outcome is summarized as follows. $44 million of dividend income from our joint venture. Other dividends from various portfolio companies totaling approximately $40 million during the quarter, which includes the $25 million one-time dividend from Belk, and fee income totaling aproximadamente $4 million duringthe quarter. Our net expenses were $167 million during third quarter, a decrease of $1 million compared to the second quarter. The primary components of our net expenses were as follows. Our interest expense totaled $99 million, a decrease of $2 million quarter over quarter. Our weighted average stated interest rate on borrowings was 5.6% as of September 30th. Management fees totaled 42 million dollars, a increase of $22 million quarter over quarter as Dan mentioned for the second of four consecutive quarters. KKR waived 100% of its portion of the subordinated income incentive fee. This waiver applies to 50% of the subordimated income incentive fees that otherwise would be paid. Net of this waiver, income incentive fees totaled $11 million, a decrease of $1 million compared to the second quarter. Other expenses totaled $13 million, an increase of $2 million quarter of a quarter, primarily due to an increase in certain deal costs and professional expenses. Lastly, we incurred $2 million of excise tax during the third quarter in conjunction with the finalization of 2025 tax items related to certain international and ABF investments. The detailed bridge in our net asset value per share on a quarter-over-quarter basis is as follows. Our ending 2Q-2026 net asset value per share of $18.30 was increased by GAAP net investment income of $0.46 per share and was decreased by $0,19 per share due to a decrease in the overall value of our investment portfolio. Our net asset value per share was reduced by our $0.44 per share quarterly common stock distribution and our $1 per share on a common stock equivalent basis paid during the quarter. Our net assets value per shares was increased by $0,16 per share due to share repurchases. The sum of these activities results in our September 30, 2026 net asset value per share of $18.28. From a forward-looking perspective, for the fourth quarter of 2026, we currently expect our GAAP net investment income per share to be in the range of 8% to 9% of net asset value per year on an annualized basis. We encourage investors to consider that the third quarter Belk dividend was non-recurring and that the fourth quarter is when FSK typically recognizes its annual excise tax provision. In addition to these items, we expect the fourth-quarter will be positively impacted by a dividend from a portfolio company, JW Aluminum, approximating $17 million. remind investors that the portfolio activity Dan described, as well as market-based future risks and uncertainties, could cause our anticipated fourth quarter 2026 results to differ from this guidance. As of September 30th, our debt-to-equity and net debt-TO-equITY levels were 127% and 125%, respectively, compared to 127% and 122% as of June 30. At the end of the third quarter, our available liquidity was $3.4 billion, and approximately 73% of our drawn balance sheet and 49% of the committed balance sheet was comprised of unsecured debt. And with that, I'll turn the call back to Michael for a few closing remarks before we open the call for questions. Thanks, Stephen. We believe the third quarter represents another step forward in the goals we outlined earlier this year. We're encouraged by our progress, but we recognize there is still more work to do. Looking ahead, we remain focused on advancing our portfolio rotation efforts, repurchasing shares, and delivering long-term value for shareholders. As always, we appreciate your participation in the call today and for your interest in SSK. Operator, we'd now like to open the line for questions. Thank you. At this time, we will conduct a question and answer session. As a reminder, to ask a question, you'll need to press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 2-1 again. Please stand by. We will compile the Q&A roster. our first question comes from the line of john hecht of jeffries your line is now open morning guys and thanks for taking my questions and steven thanks for the detail about q4 um first question is you know within your portfolio you know what is it what's the maturity cadence over the next two years and is there any industry specific composition that you can call out. I guess software would be of interest predominantly, but anything else in terms of the industry composition during that period of time? Good morning, John. Thanks for the question. Ballpark 25% of the portfolio would be sort of between now and kind of 28. You'd probably expect considering when you kind of tie that back to origination dates. you know I think from a conceptual perspective you know I'm probably a little bit less worried about you know the maturity wall concept in general but I think we are focused on that on the software space obviously there's been a seismic shift there in terms of you know valuations where the debt market is going to take sort of new deals or revise existing deals so you know i think outside of software probably not that worried inside of software i think it's clearly on our mind and i suspect it's on the mind of many others okay and then you know i guess thinking about your pipeline and outlook for deployment activity anything moving with you know bid-ask spreads or terms you know i guess particularly right of you know interest rate uncertainty and geopolitical uncertainty Yeah, I'll take that in a couple different pieces, right? I think the market is definitely, I would say, wider than it was at the start of the year, right, and I would attribute that mainly to the activity or the redemption activity in the non-traded BDC space. You know, I think, at least in our opinion, I thinks spread's probably gone 100 basis points wider, including OID, the sort of upfront fees, and it's since given sort of some of that back, but probably 50 basis points wider versus the start of the year. And I would say the overall tone or a little bit more lender-friendly than sort of borrower-friendly, and obviously not just the redemptions but the rest of the stuff gone on kind of macro geopolitical helps that. You know, I think in terms of FSK specifically, obviously, we're a little less focused on deployment, you know, more focused on getting the buyback plan done, more focus on getting leverage inside the target. So, the number, you now, even our new deals or kind of new deployment this quarter was a little bit skewed by one transaction was committed to in 25 that actually funded this quarter. So, you know, I think Mark did a little bit better. I think where we're at now is we're focused on the things we sort of talked about. You know, at some point that dynamic will change. We'll get a little, you have a little more kind of fresh new deal flow in here. Hopefully generate a little bit more on the upfront fee side as well. Great, thanks very much. Thank you. Our next question comes from the line of Rick Shane of JP Morgan. Your line is now open. Hey, guys. Thanks for taking my questions. John really stuck the landing in terms of what I wanted to ask. But the comment about focusing on continuing to delever and at the same time buy back stock through paydowns makes sense. I am curious now that we're starting to see book value stabilize, you realized a lot of losses in the third quarter, but did not hit book. So suggesting your reserve levels or your reserve level, your marks are appropriate. That's good execution. What do you think the timeframe realistically to starting to deploy capital again on sort of a net basis looks like? Is that a 28 timeframe? Yeah, it's a fair question. I appreciate the question. You know, I think we've been pretty consistent in, you know, in either conversations or, you know, talking about it on the last couple of calls. You know it's important for us to get the buyback done. I think, you, you want to manage that buyback with also kind of being in the right leverage kind of zip code, right? I think we've talked about our leverage target, you know, it's kind of one-to-one and a quarter. We've gotten it down at least versus, say, two quarters ago. You know, so that's probably playing out, you Know, John, over the course of 27 is my guess, right? You think about both getting the repurchase program done as well as getting within that leverage number. Now, there are things that I think are, you know, good results, like we had a very good investment or experience with the TORAC investment. We started that in 2016. You know, the company grew meaningfully, you're well beyond anybody's expectations in terms of value, but it felt like a good time for that company to take its next step and sort of monetize. So I'd probably think about it over the course of the next five years. Got it. And, Dan, I do realize the irony of me asking questions about growth and sort of glossing over the commitment on the buyback. So I do appreciate, you know, where you guys are sort of – what you're moving through. I appreciate that, Connor. Thank you. Thanks, guys. Thank you, guys, for having me. Thank you for having us. Thank you very much. Our next question comes from the line of Finian O'Shea of Wells Fargo Securities. Your line is now open. Hi, everyone. Good morning. Steve, I think you mentioned you had a more complete picture of spillover from the ABF vehicles. Any color you could give on that as to where you are if we might expect future specials or this is it? And if you will, maybe a range on the fourth quarter tax item. Yeah, Ben, good morning. You know, I think when you consider in our last 10K, I Think we said spillover was $464 million. You Know, we paid $2 million of excise in this quarter. So that would imply that, you know, that balance is a little bit higher when you do that math, and then we also announced the special distribution of $0.20 a share. So you're sort of settling still in the top end of the range, and we will publish the spillover for the end of 2026 when we file our 10-K in February. So that number will come out then, but still would say from a guidance standpoint, you're more the top end of the range. So I'd probably just leave it there for now. Okay. That's helpful. Thanks. And then just a follow-up on sort of the overall progress that continues. You guys talked a bit about should we think about the fee waivers as, you know, more straightforwardly this one-time, one-year event, or as they lapse, do you all contemplate a more permanent change after that? Yeah, good morning, Ben. I'll take that one. Obviously, we're in the second quarter of that, the second corner of the announced sort of four quarters. you know, I think we're, you know happy we sort of did that. I think we're happy with the overall package of you know items we did, you've gone back now sort of two quarters. I Think we'll obviously you know have that conversation with the board kind of as appropriate as kind of required on that annual basis. But you know right now I think only two quarters in and I think were happy with some of the progress that we've been able to make across the portfolio, but I think we acknowledge that there is some more work to do, and that's what we're focused on. So it ties to the portfolio progress as to whether it's sort of just this one time? You know, obviously, you know, I think it ties, you know, in some ways, you know, the entirety of the situation, right? I wouldn't say it ties directly to the portfolio process. My point being more that we're two quarters into the four quarters being announced. We obviously discuss fees with the board on an annual basis. But I think we singularly on our side as a team are focused on the portfolio and the work we have to do. Very good. I appreciate that. Thank you. Thanks. Have a good day. Thank you Thank you. Our next question comes from the line of Aaron Sekinovich of Truist Securities. Your line is now open. Aaron, we can't hear you. Yes. Thank you Apologies. Apologies. I want to touch on the portfolio management and non-accruals that have already come through. You had a couple new ones this quarter. you know what's in the watch list and you know i know it's hard to say when things go bad or not but uh do you feel like you're you've gotten a you know a good handle in terms of you know maybe limiting some of these uh new non-accruals as you as you're kind of working through the portfolio and going forward yeah i'll have to take that you know I think um I mean you are correct but a credit book does move and it does have a change of quarter on quarter so it you know that said I think you can you know look at kind of our you know risk rating threes and fours as probably a fair description of watch source names yeah I think if you think about some of the specific events of the quarter you know I think speaking for ourselves but I suspect the other lenders as well. We were happy to get the medallion restructuring done to try to get to the next phase for that company. Repillar is one of the names that would be kind of in that software space with some AI risk around it. The team is very active in trying to work on to the Next Steps there. It's more of an IT integration kind of managed services business um you know i think there's really operational points there more than you know anything else but again kind of team and other lenders in that kind of position focused on that so um you now i think you know active across the board um feel like we've had you know some good progress on some of the other names that we may have talked about in the past but i think we are mindful that you know things can change or you know the world is a pretty volatile place right now um and you know we got to get some of these positions to the other side and and maybe just to talk about it from the standpoint of your platform um beyond uh this bdc uh you know what what are you seeing you know i imagine that you're still originating and you're you know still you're doing all of the more uh forward looking and in forward actions uh in in other vehicles um you know what are you seeing from the market from from that standpoint and um you maybe just some thoughts on uh on some of the trends you're you're seeing uh currently yeah maybe a couple points i mean you are correct right i mean um you know we are uh quite active in the market um uh you know through you know other pools of capital, the UFSK is historically invested alongside of, or still does, but maybe just in much, much smaller size. I do go back to what I said on, I think it was John's question, the overall tone of the market, definitely a little bit more lender-friendly than it was sort of prior. I think that's good to see. You know, I think the team, you know, for most of this year probably felt pretty light in terms of new deal flow, you know, kind of broad stroke across the board. I'm not sure that's entirely surprising considering, you know, Iran and still this lingering inflation. I think we're getting a bit, you know, busier or there's a bit more kind of activity, you know, more kind of inbounds on books being prepared, companies trying to be sold, but I think the market is still missing what I think we've all been expecting, a healthy amount of deals, a lot of sponsors selling businesses, and I think that's just going to take some time or it's going to, the kind of bid-ask of price is going to sort of narrow or need to narrow. So, you know, so I think we're out of the business of forecasting, you know, when M&A is going to come back in a normal sort of sense. But, you know, at some point I think some of these things will have to come to market. You'll have to see some of the activity and stuff. And maybe the only other comment, just for your benefit, you know, we haven't seen, you know, even, you know, maybe the redemptions in the retail space. We have seen a strong either continued interest or maybe even a little bit greater interest from the institutional side on investing, per se, on the investor side. On that last comment, is the institutional interest remaining kind of at that level? I know it kind of picked up in the summer and early fall whenever spreads were – Yeah, I think it's remaining. Okay. Great. Thank you very much. I think it's amazing. Obviously, there's a little bit of a tailwind, too, of kind of rates sticking up, right? Yep. Absolutely. Thank you. All right. Thanks for your questions. Have a good day. Thank you, as a reminder, to ask a question, you will need to press star one one on your telephone. Our next question comes from the line of Robert Dodd of Raymond James. Your line is now open. Hi, guys, and congratulations on the stable quarter. I've got a question on the asset-backed finance side of the book, right? I mean, if I look at it in the – just do the math, right, you had 11.6% of the portfolio at the end of Q3, but with TORAC, Romano, whatever I'm supposed to currently call it, getting acquired in Q4. I mean you could end the year potentially in the single digits on that side of business, so call it, you know, 10%-ish. Is that, like, is that the new plan, right? I mean, you've talked about going to more first lean. I mean is the plan to shrink the ABS component in the book, which may not be as well understood by investors, because it is different from a lot of other BDCs do, is it the plan shrink that? Or is this just a temporary low in terms of allocation to the ABF strategy yeah good morning um i i wouldn't classify it as a as an active you know focus on striking it i think we've historically talked about it in the range of 10 to 15 um i think you should expect that range to sort of continue obviously we're we're you know constantly managing the like any other bdc the 30 bucket as well um and as we are kind of shrinking certain assets are taking repayments to buy back shares and sort of de-lever. So I think it's part of the whole calculus, but I wouldn't think about it as an active piece. I think we've seen good performance in that part of our portfolio. We think that marketplace itself remains quite interesting from a risk-adjusted return perspective. But I just constantly have that 10% to 15% range. Got it. Thank you. Just on webinar, I mean, obviously there's a there's about a 40 million dollar gap between your fair value um and your cost basis this quarter i mean on the acquisition price is that basically that's baked into the fair value um or is the acquisition prize potentially higher than you have had it marked at q3 yeah i mean i will actually go check the specifics on that and circle back i mean Yeah, I think the business has historically been a strong sort of dividend payer for us. So I want to check on some of that sort of piece. But, you know, I Think kind of overall, you'll resolve with the investment. You know, considering when we started that business, I think we thought we would have originated a billion dollars of assets. I think The company's done 14 or 15 billion dollars by this point. You know and they've done a good job. I think it was just the, you know, we've owned it for 10 years, I think, both for the company's benefit. I think from time to time it's good to rotate out of these things. It was sort of proper to sell. But I'll come back on that to a specific point here. Got it. Thank you. One more, if I can, real quick, flipping the other end on what's normally non-income producing equity, JW Aluminum, but it's going to pay a dividend in the fourth quarter. I mean, that business continues to do very well. I know I've asked you about this before, but, like, you know, yes, the M&A market's slow, but that's a good business. It's not AI-exposed. Maybe you're going to use aluminum to build the skeletons for robot overlords. But, you Know, that seems like exactly the kind of business that would be attractive to a buyer right now. Is there any, have there been any inquiries or any interest more recently in you monetizing that business? Yeah, your points are not unfair. I think we've been very happy with performance there. I think the team has done a good job over a long period of time, you know, and the management team today is doing a good job. There is kind of tailwind there to your point. you know, probably difficult to comment on if there's any, you know inbound interest, but I don't think you're incorrect in the sense that, you know, with those tailwinds, with it not being AI, it's probably not a bad fact. You know, I would note, you know, this is the fourth or fifth, you know, dividend the business has paid in the last handful of years. It's not necessarily every quarter, but considering performance, it is becoming a little bit more of a consistent fact or recurring fact than sort of a one-off fact. I just would note that. Yeah, fair enough. Fair enough. Thank you. Okay. Have a good day. Thank you I am showing no further questions at this time. I would now like to turn it back to Dan Peterzek for closing remarks Thank you and thank you everyone for your time today. If there are any follow-up points, please do not hesitate to reach out to the team. We look forward to speaking with you on our next quarterly call. Have a good day. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.