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Herald Inv Trust (NYSE:HRI)
Q1 2019 Earnings Call
May. 02, 2019, 8:30 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Operator

Good day, and welcome to the Herc Holdings Incorporated first-quarter 2019 earnings conference call. Today's conference is being recorded and after today's presentation there will be an opportunity to ask questions. [Operator instructions] I would now like to turn the conference over to Elizabeth Higashi. Please go ahead.

Elizabeth Higashi -- Vice President of Investor Relations

Thank you, Savannah, and good morning, everyone. I'd like to welcome you all to our first-quarter earnings conference call. Our press release and presentation slides went out this morning, and both are posted on the Events page of our IR website at ir.hercrentals.com., along with our first-quarter 10-Q filing. Please turn to Slide 2.

This morning, I'm joined by Larry Silber, our president and chief executive officer; and Mark Irion, senior vice president and chief financial officer. They will review the first quarter as well as the industry outlook for 2019. The prepared remarks will be followed by an open Q&A, which will also include Bruce Dressel, senior vice president and chief operating officer. Before I turn the call over to Larry, there are a few items I'd like to cover.

First, today's conference call will include forward-looking statements. These statements are based on the environment as we see it today and therefore involve risks and uncertainties. I would caution you that our actual results could differ materially from the forward-looking statements made on this call. Please refer to Slides 3 through 4 of the presentation for our complete safe harbor statement.

The company's Risk Factors section of our annual report on Form 10-K for the year ended December 31, 2018, which was filed with the Securities and Exchange Commission, contains additional information about risks and uncertainties that could impact our business. You can access a copy of our 2018 Form 10-K by visiting the investors section of our website at ir.hercrentals.com, or through the SEC's website at sec.gov. In addition to the financial results presented on a GAAP basis, we will be discussing non-GAAP information that we believe is useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures to the closest GAAP equivalent can be found in the conference call materials, which were furnished to the SEC with our Form 8-K this morning and are also posted on the Investors section of our website at ir.hercrentals.com.

Finally, a replay of this call can be accessed via dial-in or through a webcast on our website. Replay instructions were included in our earnings release this morning. We have not given permission for any other recording of this call and do not approve or sanction any transcribing of the call. I'll now turn the call over to Larry.

Larry Silber -- President and Chief Executive Officer

Thank you, Elizabeth -- if you'd turn to Slide 5 -- and thank you all for joining us this morning. We're very pleased with the continued year over year improvement in operating results we reported for the first quarter. Combined with the generally positive industry and economic metrics being forecast, we're confident that 2019 will be another strong year. Our strategic initiatives continued to improve pricing and contributed to the increase in dollar utilization and rental margins year over year .

We drove strong flow-through by controlling and reducing direct operating expenses and SG&A. And we continued to make progress in our fleet renewal and diversification program in the first quarter. The strong start for the year, particularly in our ability to continue to improve rates and control expenses, along with the seasonal ramp-up in rental equipment demand we are currently seeing, support the profitable growth we expect in 2019. Now please turn to Slide No.

6. The major initiatives of our long-term strategy guide our day-to-day activities and performance. We rolled out our new culture and people initiatives at our second annual ProExpo business meeting last month. ProExpo is an annual gathering of our senior team members, made up of operations, sales and field support staff.

We shared our progress on strategic initiatives, held regional strategy discussions and got a chance to see a broad array of equipment from our major suppliers. I was thrilled by the enthusiasm and the energy of our people across all of our regions. We heard about positive trends for 2019 regarding our progress, the customer demand for rental equipment we are seeing and the state of the industry. Now please turn to Slide No.

7. Safety awareness is a fundamental part of how we operate, how we treat our employees and how we work with our customers. Throughout our locations we focus on the simple concept of a Perfect Day, which means no OSHA recordable incidents, no "at-fault" motor vehicle accidents and no DOT violations. In the first quarter of 2019 all of our regions recorded at least 87% Perfect Days, with many of our locations reporting 100% Perfect Days in the first quarter.

As part of our Perfect Day goal and in support of building a robust safety culture, we continue to expand our safety training programs. Driver safety is a major focus for all of our team members, not only for work hours, but also on a personal-time basis. Our Just Drive initiative encourages all team members to eliminate distractions while driving. In particular, we strongly discourage texting and checking email while driving.

We continue to expand training programs for best practices in operations and sales, as well as programs to identify and develop our next-generation leaders. Our entire team is excited about the opportunities for continuous learning, as well as meeting other team members from around the company. Now please turn to Slide No. 8.

Let me summarize a few of our financial results. We're pleased to report strong growth in total revenue in the first quarter, with an increase of 10.3% to $475.7 million compared to the same period in 2018. Equipment rental revenues rose 2.3% to $377.6 million. The growth was driven by strong improvements in pricing, but offset by strategic reductions in rerent revenue from improved profitability and margin improvement.

Average fleet increased 2% in the first quarter and pricing improved 3.8% compared with the comparable period last year. We reported improved year-over-year net results in the first quarter of 2019 with a net loss of $6.7 million, or $0.23 per diluted share, compared with a net loss of $10.1 million, or $0.36 per diluted share, in the prior year. Adjusted EBITDA increased 7.2% to $142.3 million, reflecting the reduction in direct operating expenses and controlling SG&A expense. Mark will discuss the specifics of these savings later on in the call.

Dollar utilization increased 20 basis points to 35.5% in 2019, primarily from pricing improvement. On Slide No. 9 -- illustrates the continuing positive improvement we made in the first quarter of 2019 compared with 2018. Annual pricing improved 3.8% over last year, marking the 12th consecutive quarter of year-over-year improvement.

Our 2019 year-over-year first-quarter pricing improvement in what is the most seasonally affected quarter of the year bodes well for the rest of 2019. This slide also shows our average fleet at OEC increased 2% in the first quarter of 2019 over last year. Average fleet on rent during the quarter was flat compared to last year's strong 7.1% growth in average fleet on rent. Let me remind you that we increased average OEC by 4.8% for the full year of 2018 and that this year's growth is expected to be slightly lower than last year's growth rate, allowing us to focus on improved fleet utilization.

Our fleet additions continue to improve the quality of our fleet and enhance fleet efficiency by focusing on select brands in each of our equipment categories. Now please turn to Slide No. 10. The improvement in price continued to contribute to the overall dollar utilization.

First-quarter dollar utilization reached 35.5%, up from a strong first-quarter performance in 2018. Fleet at OEC as of March 31, 2019, was $3.69 billion, with an average age of 46 months compared with 49 months for the same period last year. Together, ProSolutions and ProContractor equipment now account for approximately $794 million of OEC fleet, or about 22% of our total fleet as of the end of the first quarter of 2019. That's an increase of 7% in the value of that portion of the OEC fleet year over year .

While the pie chart on the left-hand corner shows the major categories of our fleet, as you can see from the graph on the bottom right, we have changed our emphasis within the categories. The largest percentage of our fleet consists of aerial equipment, at about 25.5%. Earth-moving equipment is now about 14.4% of our total fleet and compact earth equipment increased to 8.5% of our fleet from 7.9% last year. A detailed breakout of our fleet categories is in our Appendix.

Please turn to Slide No. 11. Through the end of the first quarter we had 270 locations, primarily in North America. We plan on adding 4 to 6 greenfield locations in high-growth urban markets in 2019.

This map shows the growth expectations by state and province over the next five years. The ARA continues to forecast strong growth, particularly in the Southwest and Southeast, with annual compound growth rates higher than 6% over the next five years. Please turn to Slide No. 12.

Our strategy is driving the further diversification of our customers and markets, as well as our industry mix. First-quarter local rental revenue grew 10% year over year and accounted for about 58% of rental revenue in 2019. National account revenue represented about 42% of the total in the first quarter but declined 4.9% with the last year, primarily due to a decrease in revenue related to various oil and gas process industries. Bruce will talk more about that later.

Our rental revenue by major customer segment for 2018 is shown in the rental revenue composition chart in the upper right-hand corner of the slide. Contractors represented 34% of equipment rental revenue followed by industrial with 28%. Other customers, which includes commercial and retail service, hospitality, healthcare, recreation, entertainment and special events, represented 19% of the equipment rental revenue, and infrastructure and government posted at 19%. Growth in new customer accounts continued to be quite strong throughout the first quarter.

We're focused on maintaining a solid pipeline for future growth opportunities. Now please turn to Slide No. 13. Key economic and industry metrics remain generally positive.

While the Architecture Billing Index fell short of 50 in March, the Index was most affected by regional declines in the Northeast, West and Midwest regions of the United States. Industry observers expect the Index to resume to a 50-plus level later this spring. Industrial spending increased 6% in 2018 over 2017 and spending forecasts for 2019 are showing a slight increase of nearly 2% over 2018. Our conversations with industrial customers indicate their confidence for continued growth and spending over the next few years.

Expectation for U.S. nonresidential construction spending for 2019 also continued to be healthy, with expectations of a year-over-year increase of 3%. Longer term, the North American American Rental Association forecast for equipment rental revenue growth remains robust, with compound annual growth rate projected at 5.4% for 2022. Our strategy to focus on urban market coverage should further accelerate the rate of growth that we can achieve as urban customers increasingly use rental to offset space and cost constraints.

We are making great progress on executing our strategy and driving improvements in our operating performance. Key economic indicators continue to look favorable and we are optimistic about our future growth opportunities in 2019 and beyond. And now let me turn the call over to Mark Irion and he'll discuss our quarterly financial results in more detail. And then I'll summarize before we open to questions.

Mark?

Mark Irion -- Senior Vice President and Chief Financial Officer

Thank you, Larry, and good morning, everyone. We're pleased with the results we reported for the first quarter. The first quarter always represents seasonal challenges and, having got off to a good start, sets the stage for us to continue to execute on our goals for 2019. On Slide 15, we can review our first-quarter results.

Equipment rental revenue grew 2.3%, or $369.1 million, to $377.6 million in the first quarter of 2019. Year-over-year growth was driven primarily by improved pricing, but was particularly -- partially offset by a reduction in rerent revenue. As part of our self-help initiatives for 2019 we are focused on utilizing our own rental fleet and rerenting less fleet. Re-rent revenue was down by $4.9 million, or 28%, in Q1.

Total revenues increased 10.3% to $475.7 million, our seventh quarter of year-over-year double-digit growth. Net results improved in the first quarter of 2019 compared with the prior year. We recorded a net loss of $6.7 million, or $0.23 per diluted share, in this year's first quarter compared with a net loss of $10.1 million, or $0.36 per diluted share, in 2018. Net results were impacted by higher depreciation of rental equipment, which increased $6.7 million, or 7%, in the first quarter compared to the prior year.

First-quarter net results also benefited from improved operating results, a reduction of $4.9 million in spin-off-related costs and a $2 million tax benefit. More details regarding our net income bridge are included in our appendix. Adjusted EBITDA in the first quarter of 2019 increased 7.2% to $142.3 million over the same period in 2018. Adjusted EBITDA margin was 29.9% in the first quarter, a 90-basis-point decline year over year, impacted primarily by the margin on the sale of used equipment, which is why we continue to focus internally on REBITDA, which uses the contribution from our core rental operation without the impact of sales of rental equipment and parts and supplies.

The first quarter reflects excellent progress in terms of flow-through. We reported REBITDA flow-through of 183.1%. Flow-through in Q1 benefited from the reduction in low-margin rerent revenues and our continued focus on cost control. Our REBITDA margin rose to 36.3% during the first quarter of this year, an increase of 280 basis points from the first quarter in 2018.

There's a reconciliation of these measures in the appendix, which I think you'll find useful in evaluating our operating progress. We summarize the operating metrics at the bottom of the slide and our average OEC grew 2% in the first quarter over the prior year. Our focus on rates delivered excellent results in the quarter. Pricing improved 3.8% year over year and increased 90 basis points sequentially from the 2.9% rate improvement we reported in Q4 2018.

Dollar utilization increased 20 basis points to 35.5% in the first quarter of 2019 compared with the prior-year period, benefiting primarily from the 3.8% increase in pricing. Slide 16 focuses on the changes in total revenues for the first quarter. In the first quarter of 2019 total revenues grew 10.3%, or $44 million, to $475.7 million compared to $431.3 million in the first quarter of 2018. Equipment revenue grew 2.3%, reflecting strong pricing improvements, offset by the strategic reduction in rerent revenue.

Our own equipment rentals were up by $8 million, or 2.5%, in the quarter and rerent revenue was down by $4.9 million, or 28%. Re-rent revenue is a low-margin business for us. Re-rent represents rentals of equipment we may not have available and in order to satisfy a customer we rent from a competitor and rerent to our customer. We have been deliberately reducing rerent transactions by focusing on acquiring or moving frequently requested equipment unavailable at the time to the requesting branch location, which will help us improve flow-through in margins in the long term.

In the first quarter of 2019 sales of rental equipment increased 81.4% or $38.5 million, as we took advantage of a strong used equipment market to improve fleet mix, to maintain the age and the quality of our rental fleet. The largest portion of our sales went through auction channels and accounted for 50% of the total sales volume in the first quarter of 2019 compared with 27% in the prior year. We generated proceeds of approximately 44% of OEC during the quarter. Please turn to Slide 17 to review the Q4 adjusted EBITDA bridge.

Adjusted EBITDA for the fourth quarter was $142.3 million, an increase of 7.2%, or $10 million, compared to $132.7 million in the first quarter of 2018. The bridge shows that the largest contributor was increased equipment rental revenue, with growth of $10.4 million as compared to the prior year. Direct operating costs fell $6.8 million compared with the first quarter of 2018, with improved operating efficiencies such as lower rerent and maintenance expense. Those reductions were partially offset by increased delivery, freight and facilities costs compared with last year.

Selling, general and administrative costs were basically flat in the first quarter compared with the previous year. A reduction in professional and consulting fees were somewhat offset by increases in payroll and other expenses. REBITDA measures the contribution from our core rental business without the impact of sales of equipment, parts and supplies. We believe REBITDA provides a better comparison with our industry peers as it excludes the impact of depreciation policy.

First quarter 2019 REBITDA flow-through improved 183.1% and drove margin of 36.3%, an increase of 280 basis points compared with Q1 of 2018. Turning to Slide 18, we have broken out fleet expenditures and disposals on an OEC cost basis and provided a rolling balance of the OEC value of our total fleet. A quarterly breakout of this information is also in the appendix. Total fleet at OEC was $3.69 billion as of March 31, 2019.

The average age -- the average OEC of our rental fleet during the quarter increased 2% over the prior year quarter. For the first quarter of 2019 fleet expenditures at OEC were $103 million, with fleet disposals of $193 million. The average age of our disposals in the first quarter was 81 months. We reduced the average age of our fleet to approximately 46 months at the end of the first quarter 2019 from 49 months in the comparable period last year.

Please turn to Slide 19. Total debt was $2.1 billion as of March 31, 2019, about the same as the prior year. Net leverage continued to improve to 2.9 times, solidly within our targeted range of 2.5 times to 3.5 times. We had ample liquidity of $774 million as of March 31, 2019.

Gross rental equipment expenditures were about flat with the previous year, but proceeds from disposals decreased $69.6 million year over year as the company took advantage of a strong used equipment market to improve equipment mix and reduce fleet age. Net fleet capex for the year was $13 million compared with $29.6 million in the prior year. Nonfleet capital expenditures for the quarter totaled $11.4 million, down slightly from $14.4 million in 2018. Free cash flow for Q1 for 2019 was $107.7 million, a substantial improvement compared with the previous year.

And a reconciliation of free cash flow is in the Appendix [Inaudible]. We are continuing to focus on a disciplined financial strategy to reduce leverage and fund organic growth opportunities with our operating cash flow. On Slide 20, we can take a look at our continued guidance. It's based on strong demand in the ER markets and our continued margin improvement focus to improve dollar utilization and tightly manage operating expenses.

We are affirming our guidance range for 2019 of adjusted EBITDA of $730 million to $760 million, or an increase of 7% to 11% year over year . We continue to expect to spend $370 million to $410 million in net fleet capital expenditures. Reduction in capital spending over the prior year, along with the expectation of improved EBITDA, should continue to generate strong free cash flow for the year. Our overall strategy is expected to continue to provide ample liquidity and the financial flexibility to fund our strategic growth, to improve our operating margins, to serve our customers and to create value for our shareholders.

And now I'll turn it back to Larry.

Larry Silber -- President and Chief Executive Officer

Thanks, Mark. Before we move to the Q&A portion of the call, let me summarize a few points on where we are on our journey. Please turn to Slide 21. We're pleased with the results we reported today and the outlook for the balance of 2019.

Our strategic initiatives are expected to continue to drive growth in both revenue and dollar utilizations. We expect to maintain our REBITDA flow-through of approximately 60% to 70% throughout 2019. We expect dollar utilization and REBITDA margin to steadily increase year over year. And, finally, we're affirming our adjusted EBITDA guidance of $730 million to $760 million.

Now we look forward to your questions. Operator, please open the lines.

Questions & Answers:


Operator

[Operator instructions] And we will take our first question from Steven Ramsey with Thompson Research Group. Please go ahead.

Steven Ramsey -- Thompson Research Group -- Analyst

Good morning. I kind of wanted to dig in more on local accounts and local mix. Being they're 60%, clearly very high, does that reflect any seasonality? Is that an optimal level you would like that to be at going forward?

Bruce Dressel -- Senior Vice President and Chief Operating Officer

Yes. This is Bruce. I would say that's the level we're looking for. And there's probably a little seasonality in that, just seeing that, as Larry spoke earlier on our national business, our national business was down a bit year over year due to some comps and some timing of some large downstream OEG customers.

Steven Ramsey -- Thompson Research Group -- Analyst

Excellent. And then, thinking more on local mix, can you talk even directionally to the customer type of local accounts? Are they more weighted to contractors? Are they more weighted to industrial? Just trying to figure out how that high local mix reflects in market activity.

Bruce Dressel -- Senior Vice President and Chief Operating Officer

Yes. I would tell you the local customer base is a broad, diverse customer from your kind of contractor base like you're talking about to retail to facility management to smaller government. So it's a whole mix of just a local customer base within that concentrated large urban market.

Steven Ramsey -- Thompson Research Group -- Analyst

Great. And last, on new customer accounts, are you winning these from other competitors that are larger or smaller? And is there any way to talk to the fleet mix that is rented to new customers, if it's different than accounts that you have had for some time?

Bruce Dressel -- Senior Vice President and Chief Operating Officer

Now again, it's a broad range of customers. As you can see with the way kind of we're -- we've been executing on our pricing. It's not really a competitive market out there and that. It's just -- a lot of it is this conversion from ownership to rental and just new rental customers entering into the marketplace and just serving a customer base out there in a robust kind of environment.

Steven Ramsey -- Thompson Research Group -- Analyst

Great. Thank you, guys.

Operator

And our next question will come from Brian Sponheimer from Gabelli. Please go ahead.

Brian Sponheimer -- Gabelli and Company -- Analyst

Hi. Good morning, everyone. I hopped on a little bit late. I just wanted to talk a little bit about the rerent decision.

Is there a way to quantify the year-over-year impact on revenue and the year-over-year impact on EBITDA?

Mark Irion -- Senior Vice President and Chief Financial Officer

Yes. It's -- I mean, it's not necessarily meaningful on either. It's more of an impact on margin. So it's around $5 million in terms of revenue.

It's not a huge amount. But it's really just focusing on self-help. It's a low-margin business. If we're rerenting at something -- came to 20% margin, if we can use our own equipment then that's a win.

Or if we can satisfy that customer or get a new piece of equipment in there to satisfy that customer for a longer term rerent then that's also a win. So it's really just part of focusing on maximizing the utilization of their own fleet and making sure that we've got optimal fleet on hand to take care of customer needs as they come up.

Brian Sponheimer -- Gabelli and Company -- Analyst

Right. No, I think I get that. I guess the question is just relative to the lower volume in the quarter. I guess, well, we've heard from two or three peers so far.

You obviously -- you made a strategic decision to give up some business. I'm just wondering how much of that was rerent versus just general volumes.

Mark Irion -- Senior Vice President and Chief Financial Officer

Yes. I'm not sure that's the case. I mean, some of that rerent can get supplanted with an actual rental of our own fleet. The gap between -- the impact of the rerents might be 50 bps of that growth.

So that's not a big driver. Our strategy is more focused on organic growth, so I think that's probably why you're seeing a lower growth rate with no acquisition sort of activity in our P&L. Q1 seasonally impacted and was in line with our expectations. So we're happy with the revenue and the volume and especially the rate that we got in Q1.

And that sets the tone for a positive year going into 2019.

Brian Sponheimer -- Gabelli and Company -- Analyst

No, the rate and the profitability look great. All right. Well, congratulations on the strategy.

Mark Irion -- Senior Vice President and Chief Financial Officer

Thank you, Brian.

Operator

And our next question comes from Komal Patel with Goldman Sachs. Please go ahead.

Komal Patel -- Goldman Sachs -- Analyst

Hi. Good morning. Thanks for the time. I wanted to check in on the bonds.

Both your 2022s and 2024s are callable next month and are trading above their respective call prices. What's the latest thinking on those and the potential for a refi?

Mark Irion -- Senior Vice President and Chief Financial Officer

We're comfortable with the balance sheet as it is. We don't have any immediate needs in terms of refinancing. We continue to analyze the markets and we're in discussion with our Finance Committee in terms of opportunities. So it's something that we'll all attack opportunistically over the next couple years.

But there's no immediate need to do anything. And we continue to look for the best opportunity to refinance those notes as they come up.

Komal Patel -- Goldman Sachs -- Analyst

Got it. Thank you. That's helpful. And then just quickly, as you've put up some good results over the past few quarters and leverage is coming down, have you had conversations with the rating agencies recently, in particular with Moody's, on any potential upward momentum on the ratings front?

Mark Irion -- Senior Vice President and Chief Financial Officer

We have ongoing and annual conversations with the ratings agencies just as part of our normal treasury function. You know as well as I do how rapid they are to adjusting sort of EBITDA and leverage. So it's something that we look forward to changing it at their leisure based on their analysis and their say conversations internally.

Komal Patel -- Goldman Sachs -- Analyst

Appreciate it. Thanks so much.

Operator

And our next question will come from Jerry Revich with Goldman Sachs. Please go ahead.

Ben Burud -- Goldman Sachs -- Analyst

Good morning, everyone. This is Ben Burud on for Jerry. Just wanted to touch on rental rates. So you grew pricing 1.6% sequentially, which is well above your normal seasonality.

I was just curious if there was anything we need to keep in mind regarding applying normal seasonality over the balance of the year. So typically 2Q seems to be 1% sequential improvement. I know Larry on the call mentioned that the strong start to the year implied good things to come. Just wanted to make sure if there was any puts and takes to keep in mind in terms of normal seasonality.

Mark Irion -- Senior Vice President and Chief Financial Officer

Yes. I think -- I'm not too sure. Some of my numbers are different, Ben. I've got 90 bps of sequential rent growth from Q4.

And looking last year Q1 to Q2 is like 10 basis points. There's not a real sequential -- there's not really a real seasonal cadence to the rate. I mean, Q1 is definitely the most seasonally impacted quarter, so typically it's the most challenging. Having got 3.8%, we're -- definitely sets the tone for a positive momentum through the course of 2019.

And you can sort of just see the cadence. We've been steadily building rate growth. That is a metric that once you start getting success you can continue getting success. There's a bit of a flywheel impact as equipment comes off rent at an old rate and then goes back out on rent at the new rate.

So it's a key focus for us. We had a great success. Success breeds success. And we sort of continue to look forward to focusing and delivering good results on the rate front through 2019.

Ben Burud -- Goldman Sachs -- Analyst

Got it. And then I know it's not the biggest piece of your business, but can you give us an update on what you're seeing on the public construction side of things?

Bruce Dressel -- Senior Vice President and Chief Operating Officer

Yes. This is Bruce. I would say we're seeing kind of stable, good environment in infrastructure in the public side. And then if in fact additional funds go toward that in infrastructure, then that bodes well for the entire industry overall.

Ben Burud -- Goldman Sachs -- Analyst

And is there any -- are you cognizant of increasing your exposure there? Or are you kind of just taking business if it comes?

Bruce Dressel -- Senior Vice President and Chief Operating Officer

Well, I would tell you it takes the mix of fleet we currently have and it's in the markets we're in. So we play in that to begin with. It's not a huge part of our business overall. But we would benefit from any additional dollars going toward that type of work.

Ben Burud -- Goldman Sachs -- Analyst

Great. Thank you.

Larry Silber -- President and Chief Executive Officer

Yes, particularly since we operate in concentrated, highly urbanized markets, if there will be infrastructure spending that we heard about the other day, it will certainly impact us and we'll participate in that in our fair share of the way.

Ben Burud -- Goldman Sachs -- Analyst

Understood.

Operator

And that concludes our question-and-answer session. And I would now like to turn the conference back over to Elizabeth Higashi for any closing remarks.

Elizabeth Higashi -- Vice President of Investor Relations

Thank you, and thank you all for joining us on today's call. If you have any further questions, as always, please don't hesitate to call me. We look forward to seeing you all soon. Take care.

Operator

[Operator signoff]

Duration: 36 minutes

Call participants:

Elizabeth Higashi -- Vice President of Investor Relations

Larry Silber -- President and Chief Executive Officer

Mark Irion -- Senior Vice President and Chief Financial Officer

Steven Ramsey -- Thompson Research Group -- Analyst

Bruce Dressel -- Senior Vice President and Chief Operating Officer

Brian Sponheimer -- Gabelli and Company -- Analyst

Komal Patel -- Goldman Sachs -- Analyst

Ben Burud -- Goldman Sachs -- Analyst

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