Thank you, operator, and good afternoon, everyone. Welcome to the U. S. Xpress 4th quarter 2022 earnings call. To Eric Fuller, U. S. Xpress' President and CEO, will lead our call today, joined by Eric Peterson, our CFO, who will discuss our financial results. To our discussion today includes forecasts and other information that are considered forward looking statements. While these statements reflect our current outlook, they are subject to a number of risks discuss the risks and uncertainties that can cause actual results to differ materially. These risk factors are described in U. S. Expressive's most present Form 10 ks filed with the SEC. We undertake no duty or obligation to update our forward looking statements. During today's call, we will discuss certain non GAAP measures, which we believe can be useful in evaluating our performance. The presentation of this additional information to conclude by the SEC. Please note that our press release should not be considered in isolation or as a substitute for results prepared in accordance with U. S. GAAP. A reconciliation of these non GAAP measures to provide an update on our earnings release. As a reminder, a replay of this call will be available on the Investors section of our website.

To we also have posted an updated supplemental presentation to accompany today's discussion on our website at investor.usxpress.com. To we will be referencing portions of the supplement as part of today's call. And with that, I'd like to turn the call over to Eric Fuller.

Thank you, Matt, to Good afternoon, everyone. Today, I'd like to discuss high level results across our business in the Q4. What gives me confidence that we are moving in the right direction to turn the call over to Eric Peterson's financial commentary on the quarter, I will provide our current outlook for the freight market. 2022 was a year of transition for U. S. Xpress as we executed our realignment plan, transitioned our OTR operations back to make a more traditional model focused on ensuring freight is delivered on time and in a cost effective manner for our customers and recently transitioned all truckload and brokerage operations under one leader, Justin Harness. The heavy lifting associated with our realignment plan is complete, and we began to see cost savings in the Q4 from the actions we have taken since early September. Overall, I was pleased with the progress we made in our OTR division and with our cost takeout initiatives from our realignment plan. Improvement in underlying metrics, including fleet availability, service level and utilization give me the confidence that we are moving in the right direction. To From a financial results perspective, our spot market exposure more than offset these operational gains and cost savings from our realignment plan.

To Conversations with our customers continue to evolve. Our Back to the Basics message and our progress to date continue to resonate well with them and has been instrumental in helping to add some incremental load volume despite the weak freight market. Feedback from our customers indicate that many are still working through some level of inventory destocking. To Our pipeline of OTR freight opportunities is extremely robust, and we expect to make meaningful progress reducing our spot market exposure As we navigate through bid season and begin to service new awards, our customer base is heavily focused to on industry leading companies and defensive segments of the economy, including discount retail, consumer non durables to call back to the operator for questions. Thank you. Thank you. Our next question comes from the line of to proactively add new logos to our customer base. And we're excited to support these new customers and demonstrate the value proposition of partnering with U. S. Xpress Every day. Turning to our Truckload segment. We generated truckload revenue net of fuel of $397,000,000 to sequential decrease of approximately $5,000,000 primarily due to the spot market rates declining sequentially. Consistent with what we said on our Q3 earnings call, we exited the 4th quarter with a fleet that was approximately the same size As that which we exited the Q3, we will continue to be focused on improving the mix and profitability at our current fleet size.

To Turning to our OTR division. In the Q4, although peak didn't materialize, we continue to make progress to Driving accountability through our OTR fleet, our service levels continue to improve, our percentage of empty miles decreased And we continue to improve the overall quality of our OTR professional drivers as sourcing qualified professional drivers continues to ease. Exiting the Q4, the structure and discipline has been implemented into our fleet operations and we are seeing the benefit of this in our current to provide some modest incremental improvement to utilization from these efforts to immediately improve our utilization, we need to add more freight to our network.

As I mentioned earlier, our ability to service the freight we do get from our customers at a high level is critical to adding more contracted freight. To Turning to our Dedicated division. Our Dedicated division exited the year with another strong quarter. This service to continue to resonate well with customers due to its unique value proposition, which includes exceptionally high service levels. As we said last quarter, we want to work closely with our customers to identify additional opportunities where our dedicated offering is a good fit for them. For 2023, we are targeting approximately 2,800 tractors in this fleet, but could increase that depending on customer needs. To Turning to brokerage. Our brokerage segment generated revenue of $78,000,000 and sequentially performance was similar in the 4th to take a look at the Q3. Adding more freight to our network will not only benefit our assets, but should also benefit the top line and brokerage. Our margin performance has benefited from lower capacity acquisition costs with gross margins of 20% plus for the last three quarters. In addition, margins in the 4th quarter benefited from some project capacity that we provided customers, which helped contribute to our 92 discuss our operating ratio in the quarter.

In the Q1 of 2023, we could see some margin pressure as we won't have the benefit of this project work. Looking ahead to 2023, I am confident that we are moving in the right direction as our operational issues were concentrated in our OTR division. We spent much of 2022 putting the building blocks in place to correct these issues. As I said earlier, the heavy lifting has been completed with fleet ops to We are seeing improvement in our underlying metrics, including service level, driver availability, percentage of empty miles and utilization. The market remains challenging, but it will turn. And when it does, we expect our financial results to reflect the work we put into the business in 2022. To With that, I'd like to turn the call over to Eric Peterson.

Thank you, Eric, and good afternoon, everyone. This afternoon, I would like to discuss our financial performance in the Q4 as well as capital allocation priorities and provide some financial guidance before turning the call turn back to Eric to provide our freight market outlook. Turning to our performance in the Q4. We generated revenue excluding fuel surcharge to turn the call over to our operator for Q3 of 2022. To Consistent with the last few quarters, we are focused on the sequential progress of the business and therefore, my commentary will focus on comparisons to the Q3 to of 2022, unless noted otherwise. Turning to adjusted operating loss. Total adjusted operating loss was $5,700,000 to sequential improvement of $15,800,000 compared to the Q3. Sequentially, our spot market exposure was a headwind to that could not be overcome by our significant cost reductions executed this year and our improved results in both dedicated and brokerage. Our spot rates declined another $0.20 per mile sequentially, which contributed to a $0.06 per mile decrease in our overall over the road rate per mile. In addition, in a rising fuel environment, this business also has an adverse impact on our net fuel expense as most of these spot loads note that we don't have fuel surcharge revenue associated with them.

As a result, our net fuel expense increased an additional $0.02 per mile compared to the 3rd quarter. This combination led to an overall $7,700,000 headwind to our results. Spot rates continue to be at record discounts compared to the contractual rates. For illustrative purposes, had our spot rates been at par with our contractual rates in the 4th quarter, operating income would have been better to 25,600,000 Keep in mind, we believe the headwind from our current spot market exposure is transient as one, to add more contracted loads to our network through the current bid season, which is well underway and 2, the spot market rates recover from record discounts as compared to contractual rates. In terms of positive sequential contributions in the 4th quarter, to Realignment plan related cost savings totaled $8,000,000 and included reduced office wages of $5,500,000 provide an additional $2,500,000 in other fixed cost savings. On an annualized basis, this represents $32,000,000 in fixed cost and savings, to which compares favorably to our prior expectation of $28,000,000 which we disclosed on our Q3 call. In addition, incremental brokerage operating income to of $2,400,000 and the 4% per mile increase in dedicated rates were also positive in the quarter.

To Turning to capital expenditures. For the full year, net capital expenditures, which primarily relate to tractors and trailers, to $153,100,000 compared to $97,000,000 in 2021. The year over year increase was due primarily to anticipated equipment deliveries to in 2021, which were delivered in 2022 as well as fewer proceeds from the sale of used equipment. To In our earnings supplement, we have provided a slide which includes our net CapEx by category. Looking at the other two categories, Both general and other, which primarily relates to renovations in our terminal network and technology, which is primarily capitalized wages from our IT development efforts, Decreased year over year. Our technology related CapEx was $24,500,000 a decrease of $7,900,000 to continue to be a key contributor to our business. Keep in mind that our realignment plan, which included a meaningful reduction in the size of our IT organization, to didn't commence until September, and therefore, we expect our 2023 technology related CapEx to decline on a year over year basis, to once again as our leaner tech org will focus on concentrating their efforts on fewer higher value projects. For 2023, we are currently expecting net capital expenditures to be less than $75,000,000 Our equipment is currently in excellent condition and the average age of our tractors is approximately 2 years old.

Given our equipment is in such good condition to And well maintained primarily through our in house preventative maintenance program, we believe that we will not require significant capital expenditures during 2023. As we have said in the past, the per mile increase in maintenance costs from aging our fleet in a disciplined manner is significantly less to incremental per mile cost of new equipment. We intend to take advantage of these to pay down debt and lower our leverage profile in 2023. Turning to net debt. At the end of the 4th quarter, net debt, which we define as long term debt, including current maturities, less cash balances, to was $481,900,000 compared to $369,800,000 at the end of 2021. Over the next year, we expect to pay down debt and decrease our leverage through our disciplined capital allocation approach, divestitures of non core real estate assets to provide an improved earnings as the market turns. After the close of the quarter and not reflected in our Q4 results, we sold a terminal, which was previously being leased to an unaffiliated company. The sale generated cash proceeds of $6,500,000 which we used to pay down debt. Turning to liquidity. At the end of the 4th quarter, liquidity, which we defined as cash plus availability under the company's revolving credit facility, to was $106,100,000 and we generated $43,500,000 in cash from operations for the full year.

Our overall liquidity position exiting the 4th quarter remains strong, providing us with ample liquidity to fund our business and serve our customers. To As a reminder, we use cash generated from operations together with our revolver to fund day to day operations and use separate loan financing and lease arrangements to fund our equipment obligations. In 2023, we expect cash flow and liquidity to improve as a result of lower net CapEx, improved operating profitability and cash flows and debt repayment. Turning to guidance. To assist with your models, we expect the following: Flat overall truck count as we focus on improving our mix and profitability at our current fleet size, moderate to sequential improvement and utilization in our over the road fleet for at least the first half of the year. Further sequential improvement in the second half is be more dependent on adding more freight to our network. In addition, for the full year, we expect the following: interest expense between $26,000,000 $28,000,000 to And net capital expenditures of less than $75,000,000 Looking ahead to 2023, our priorities are clear. 1, we must add more freight to our network to take advantage of our significant operational improvements 2, reduce our spot market exposure in our over the road business and 3, we must continue to manage expenses, deploy capital in a prudent manner And reduce our overall debt levels.

With that, I'd like to turn the call back to Eric Fuller for our outlook. To Thank you, Eric. Looking out to 2023, we are anticipating a soft market for at least the first half of the year to as shippers continue to work through higher than usual inventory levels and there is too much capacity in the market relative to demand. In terms of capacity, although we haven't seen evidence in the spot rate, we continue to expect smaller carriers to exit the market in the coming quarters as to provide some color on our outlook for the Q1. Thank you. Our next question comes from the line of Scott with Morgan Stanley. Please go ahead. Hi, good morning, everyone. We continue to have an easier time sourcing qualified professional drivers and we have observed prices continue to soften to be in the used equipment market, both of which suggest some capacity is leaving the market, albeit slowly. As far as how these dynamics will influence rates in 2023, there is still a lot of uncertainty about the rate environment. From our perspective, we will continue to price business in a manner that reflects the value we deliver for our customers.

We are aggressively adding more contracted freight to our network, which should help to alleviate some of the volatility in our OTR rates as we progress through the year. In terms of 2023 priorities, we will continue to focus on what we can control, which includes: 1, continue to execute on the basics 2, servicing our customers at a high level and 3, to Reducing our spot market exposure. We expect the benefits from these initiatives combined with cost savings from our realignment plan to positively impact our financial results as the market turns. And with that operator, we are ready to take questions.

Your first question comes from Ken Hoestra with Bank of America. Your line is open.

Hey, to Hey, good afternoon. Hey, it's Ken Hoexter from BofA.

So Eric, I want to talk a bit about this drive from spot to well, first of all, where do you see spot versus cost of operations now, right? Maybe tell us how that is relative to cash costs? And then Do we fear that you're converting to contract at the bottom right? Is there a drive to say, hey, we want to get all this stuff to on contract and then do you make a push that we're just doing this to get freight on the network and therefore we lock in the wrong rates? Maybe walk me through that thought process so we see how you progress in 2023.

Sure, Ken. If you look at where we started this down cycle. I mean, we were in a different mode. We had a different strategy. And unfortunately, we had to take a look at the spot relative to our overall truck count. And so we have gone through this period with way too much spot exposure. To And if you look at the gap between spot and contracted times, it's been as much as a dollar a mile. And so as we look at converting over into contract, we can get a big pickup even if we have to get a little bit lower than we would like from a contract perspective. So we're being selective on what contract business we're taking. To partner with people that we value from a relationship standpoint and those that we think have value long term. But we do think that switching from spot to contract will have a meaningful impact to our results to in this cycle and then we'll set us up to better manage our portfolio of freight and our network in the next cycle.

And did you clarify how much was spot versus contract in the OTR?

Yes. Eric, I don't know if we disclosed that.

Yes. We hadn't talked about it. But what Eric just said At times, it was $1 per mile, but that's he wasn't saying that it was $1 per mile lower for the entire quarter, but just saying it reached to No, no, I meant the mix. I think in the past you said what 30% of the base is spot exposed. Do you talk about what percent is to Yes. It's approximately yes, I think we disclosed that in the last quarter. We said approximately 30% of that over the road fleet and it's slightly higher than that in the Q4, but relatively consistent.

Okay. And then Eric, you talked about not growing the fleet and I thought you said in your commentary it was flat, but I thought it was up. I'm talking OTR, right? Wasn't it up 200 sequentially in 3rd quarter from 2nd quarter and then another almost 200 in the Q4. So it seems like you have been growing it or is your commentary that we're going to not grow it going I'm just trying to understand The difference there between what I'm seeing on the numbers.

Yes. Ken, those are go ahead. I was going to say those are averages is what you're seeing. So the average 4th quarter is higher than the average 3rd quarter, but the exit rate of the 3rd and the exit rate of the 4th to We're consistent. So that means you added and then removed. So what is that, just deliveries and then you get rid of them through the quarter?

No. I mean, if you look at how managing a truck count is, I mean, when you're talking turnover anywhere from 80% to over 100 to to stay flat for that all the way through the quarter. It moves around and it could move around as much as 150 to 200 trucks at our size. And so that's typical in any quarter, and we try to manage that inflow and outflow. But if you hit, Say for example, if you were to have a weather event or something like that, we could not get the drivers in for orientation that week And that could greatly impact our truck count. And in some cases, a single week like that could impact your truck count by 40 or 50 trucks. And so you can have a big impact on that with some small movement. And so, we're always trying to manage it to this level. We're not to Over the next last two quarters and going forward, we have no plans to change our truck count or try to grow or shrink. But if you look at the average on a quarterly basis, it may look like it's moving around 100 or 150 and that's just normal operations.

So that's more seated truck count, right? So you're just not counting the non seated, is that how to look at it?

Well, because we're kicking that The non seeded, we're usually trying to if we don't see that, we're typically trying to divest of it.

Got it. And then one last one for me just to understand the math. Eric, to Peterson, you were saying we're moving kind of from CapEx, right? So reducing CapEx, but the liquidity available, But you're putting more of the I'm trying to understand what you were saying there. The CapEx is not might not be cash CapEx, it might be more leverage, but that doesn't count in your total leverage or did I not catch that in the right way?

Yes. I'll just recap to be completely clear. What we're disclosing is that we have net CapEx for 2023 will be less than $75,000,000 And just to clarify there too, we also have still have some non core real estate assets, on the market. And so to the extent we sell and execute those transactions, We'll give you another update and it will be even lower than the $75,000,000 we're anticipating now. Liquidity, that's what we talk. We're really just to talk about the availability in our revolver. And since our CapEx is so low, we'll generate some cash, we believe, in 2023, which will increase our overall liquidity. So same liquidity was $106,000,000 at the end of the year. I'm saying my liquidity at the end of 2023, we believe that it's going to be a number higher than that and we won't burn through our liquidity during the year. Overall leverage, We had a challenging year in 2022, particularly the Q3 with over a $20,000,000 operating loss that we believe that we're not going to have losses to that extent during 2023. So as those quarters roll off, not only will we have lower debt or earnings to be better, Which will improve our overall leverage.

I mean that's really our focus during the year is just try and get as efficient as possible with the capital that's already to and not throw new capital out there.

I know I asked a few. I appreciate the time. Thanks for the thoughts and good luck through a good season.

To Thanks, Ken. Thanks, Ken.

Your next question is from the line of Ravi Shanker with Morgan Stanley. Your line is open.

Hey, this is Christine on for Ravi. Thanks for taking my question. Hey, I also want to circle back to the spot contract mix. As you guys think about targeting more of that contract rate, is there a particular mix That you're looking to target either year end or even longer out that you think is kind of the right balance going forward. And as you look to do that this year, Any thoughts on the ability to kind of keep the contract rate to either up or limit kind of how much price you have to give away to get that volume into the contract side of the business?

Yes. I mean, if you look at it from a mix perspective, we would like to be below 20% as a percentage of mix of the Over the Road to take us to into that next upcycle before we can accomplish that. But that is our focus right now. It's slow. And like I said, we're not just giving rate up just to get contract. We're doing it methodically and we're doing it very targeted. And so it really it's going to be a slow, slow build through the next couple of quarters until we get a more favorable market and then that will allow us to shift the portfolio a lot quicker. As it relates to rate, it really depends. If we're seeing a gap of $1 a mile between spot contract, which is not something we see every single week, but in many weeks we have. We're willing to give up a decent amount of rate on the contract side. It just depends on the lane and it's got to be something that's going to be a direct trade one for 1. To I wouldn't want to go and add a contract lane and not be able to reduce the spot lane.

But if we can make that switch and it still benefit our network and hopefully benefits our network from an efficiency and utility standpoint favorably, then there to There's some give that we're willing to give on rates. I can't really say what it would be in certain lanes. I mean, it could be we can be willing to close the gap by to $0.15 $0.20 And in some cases, they may not be as much. It just really depends.

Got it. Okay. Really appreciate the detail on that. To Maybe switching gears a little bit on the utilization, if I could ask a follow-up. Just one point of clarification. You mentioned that the utilization has sort of improved, but if I look through the supplemental deck, it looks like the total number of miles actually to decline sequentially. So is that just like a per day comment given you call it kind of number of holidays Or an exit rate comment, maybe you can just clarify, sort of what the improved utilization comment was pointing to?

Yes. This is Eric Peterson. Looking at our sequential utilization 3rd to 4th quarter, when I look at a normal working week, We're seeing absolute improvements in our over the road fleet and we're doing that by managing our drivers better and availability. If you look at the year over year comps, say, 4th quarter to 4th quarter, you can see that in the numbers better where there was the same number of holidays. To Yes. Sequentially, the decline in Utility, that was driven by the calendar. Got it. Okay.

But also, I think it's relative to the to reiterate, too. So as we exited Q4 and going into Q1, we've seen significant improvement in our utility. To And that's in what I would argue is potentially even a less favorable freight market. So we've gone from Q4 to Q1 with a significant weakness in the market, less volumes available to us, but we've actually increased utility. And I think that's a significant I think that shows that we've made some significant improvement in our model and we're really set up for to take full advantage of the additional volume.

Got it. That's really helpful. And maybe actually bring to the second question on the utilization front. I think in the opening remarks, you noted that the second half, any sort of further improvement in utilization in the second half would be to contingent on getting some freight back into the network. Is the implication of that, that the first half sequential improvement is more idiosyncratic sort of in your control, to Even in the context of the software market, maybe you can just kind of parse it out a little bit more for us.

Yes. I think we can make some small incremental improvements to discuss on a week by week basis now, how the calendar falls and all that may create some noise in a quarterly basis. But for our purposes operationally, I see improvements on a pretty much to continue to see a sequential basis. And so I see us getting better. We're getting better utility. We're being able to perform with the same, if not worse conditions. And so that's made us pretty optimistic about where we're going when the market turns. But looking for some big to significant increase in utility to the tune of 10% or something like that. We're going to have to wait until the market turns before we see something to that magnitude.

Got it. Understood. Really appreciate all the time. Thanks very much.

Thank Your next question is from Brian Ossenbeck with JPMorgan. Your line is open. To Hey, good afternoon, guys. Thanks for the time.

Hey, Brian.

Eric Fuller, just to follow-up on that last comment just to make sure I understood. It sounded like you're saying conditions were actually a bit worse currently, maybe coming out the Q4, so maybe I just didn't catch that right. But either way, if you can just give us an update on kind of where things stand versus the weak peak and your level of confidence and to we might have actually seen the worst of this cycle from a demand perspective. Obviously, the recovery is still to be determined, but where do things stand right now in January?

Yes, I think that comment was probably more of a seasonal type comment. Anytime you going from Q4 into that January low, you typically see a little bit of a dip. We've seen that from a volume perspective. I think if anything, things have bottomed out. I don't see it getting necessarily worse. We see that rates to kind of bottomed. We've seen that volumes and demand seems to have bottomed at this point. And so We believe that there is a market. The market will turn and a likelihood, given to Macro conditions and I think that that's the big unknown, but given macro conditions that there's a good likelihood that we could have a turn in the second half of this year. To demand actually is decently strong and could get will get stronger when we get through the inventory correction, I think that we have some of our retailers that had over inventory and as they work that inventory off, we'll start to see demand come back. And so as long as demand stays strong, then right now, we're also then waiting on the other side of the coin, which is to and the supply in the market is coming out.

We are seeing supply come out. We're hearing it from to a lot of different vendors. We're hearing from a number of people in the industry. We're hearing it. We're seeing it in our brokerage division. And so we know capacity is coming out. But unfortunately, right now, it's not coming out quick enough. I think there's a lot of what I call zombie trucking companies out there that are kind of to barely stay in a lot and kind of making it through the day, but they're not cash flowing and eventually they're not going to be able to continue operating and those guys to come out of the market for the market really to turn, and I think that will probably happen over the next couple of quarters.

To Okay, got it. So when you roll all this together, maybe some improvement in utilization bottoming out of conditions here. Do you think in the cost savings you outlined earlier, do you have visibility to profitability for the truckload business in the Q1, would that take a little bit longer? Maybe it's the back half of the year. To, what are you thinking about return to profitability and the confidence around that or the conditions you need to see to really to turn back into the green.

Yes. So we have too much exposure to spot and that creates a big headwind from a rate perspective. As we mentioned in our release, had spot rates just been equal to contract, we would have had additional roughly additional $25,000,000 to and income this quarter. So that would have been very impactful obviously and really that rate is what's dragging us down. So the problem is, I can't outrun that rate per se. So I think it will continue to be a drag on us and will make profitability tough to until we get to a little bit more favorable rate market. We don't need a rate market where spots running $1 above contract or anything like that. But if we can get to a closer to equilibrium where spot starts to come up closer to contract, Then we can start making money and we're really well positioned. We've got our cost in the right place. We feel like our costs are very much in line with our peers And we're really set up to really take off as soon as this market takes off, but we do need a little bit of that rate to come back. To One quick follow-up for Eric Peterson.

Just on the divestments, you mentioned the one that happened after the quarter, is there a way to size what's up for sale in terms of either buildings or other pieces of real estate? And then I think even in the slide to mention there's maybe some cost reduction opportunities around that as well. I don't know if that's meaningful or not, but to Yes. If you look at our corporate headquarters, which is in Chattanooga, Tennessee, we've had We have our main building and then we had an auxiliary building across the street, meaningful and that's what's on the market right now. And We anticipate being able to generate some cash to pay down debt during this year. And If there's a transaction and it becomes once it gets executed, we'll be sure to give everyone an update on that and let everyone know what we did Funds and what that is, is liquidity and our debt levels.

And is there an expense component of that? Or is it just more cash and liquidity?

Yes. Well, the expense report, I mean, you see where interest rates are right now. So to the extent you have a meaningful that you're selling and we're a net debt organization. There could be a couple of $1,000,000 a year in annualized savings and on the interest line item, to Then property and real estate taxes, you're no longer paying. Utilities, you're no longer paying. And so, yes, I'd say in the grand scheme, those are probably a to take a look at the overall interest expense, but it's still a number. And the point is on the cost savings, that's our focus to we're not trying to build an infrastructure that can house double the revenues of where we are now. We're looking at our current footprint And trying to be as efficient as possible. And as we do that, the mindset really changes of the organization. We'll be able to, I think, to continue to identify waste. And it'll just be a process, maybe not big numbers from quarter to quarter, but The point is with the mindset, there will be a number from quarter to quarter of cost savings.

Okay, understood. Thank you for the time. Appreciate it.

Thanks, Brian.

There are no further questions at this time. I would now like to turn the call back to Mr. Eric Fuller.

Great. Really appreciate everybody attending the call. We're focused to And we believe we have a plan in place to get this thing turned around. We do admittedly need a little bit of the market to help us. To But we've got the right strategy, we've got the right team, and we've got a plan in place that we are executing to We see the results. And so we're really excited to share those over the next couple of quarters as we start to see the market turn back positive.

Ladies and gentlemen, thank you for participating. This concludes today's conference call. You may now disconnect.