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David Wells

Thanks, Neil. Just another reminder before I begin. As in prior quarters, we have posted a quarterly sub level investor presentation to our investor site for additional reference as we recap our most recent quarter performance and updated guidance.
Turning now to our financial performance in the quarter, consolidated sales increased 1.8% over the prior year quarter. Acquisitions contributed 660 basis points of growth, which includes the first quarter of contribution from our recent acquisition of Hydradyne.
This was partially offset by a negative 90-basis points impact from foreign currency translation and a negative 80-basis point impact from the difference in selling days year to year. Netting these factors, sales decrease 3.1% on an organic daily basis. As it relates to pricing, we estimate the contribution of product pricing on year-over-year sales growth was approximately 100 basis points in a quarter.
Turning now to sales performance by segment, as highlighted on slides 7 and 8 of the presentation, sales in our service center segment declined 1.6% year by year on an organic daily basis. This excludes 20 basis points of contribution from acquisitions, a negative 80-basis point impact from the difference in selling days, and a negative 130 basis point impact from foreign currency translation.
The organic sales decline was primarily driven by reduced MRO spending and lower capital maintenance projects compared to the prior year. On an encouraging note, the decline was a slight improvement from last quarter's organic decline of 1.9%. This is despite a more difficult comparison, including seasonally strong brake fix and capital maintenance activity we saw in March of last year.
The segments two year stack organic year by year sales trend improves sequentially every month in the quarter, including posting positive 4% two-year stack growth in the month of March. In addition, segment EBITDA increased 6.4% over the prior year despite a 3.5% decrease in total sales, while segment EBITDA margin of 14.7% expanded 140 basis points. The year-over-year improvement was driven by strong cost management, gross margin initiatives, reduced LIFO expense, as well as favorable accounts receivable provisioning as a result of our internal working capital management initiatives.
These results demonstrate solid performance and additional evidence of our ability to adjust and execute operationally in any demand environment. Within our engineered solution segment, sales increased 13.5% over the prior year quarter, with acquisitions contributing 20.8% growth, including our recent acquisition of Hydradyne. An organic daily basis, segment sales decreased 6.5% year over year, which was relatively similar to last quarter.
The segment's organic sales decline continues to primarily reflect ongoing demand weakness across fluid power OEM customers tied to reduce activity across the mobile fluid power market. In addition, backlog conversion and engineered systems and equipment remains slow as customers continue to take a measured approach to capital deployment and project phasing across our flow control and automation operations. This was partially balanced by growth across the technology vertical.
Segment EBITDA increased 10.2% over the prior year, reflecting contribution from Hydradyne as well as gross margin initiatives, cost management, and ongoing operational enhancements as we continue to execute our engineered solution strategy.
Segment EBITDA margin of 13.8% was below the prior level of 14.3% and last quarter of 16.3%, though largely in line with our expectations, considering the initial mixed impact from hydrodyne as well as more normalized organic gross margins trends following the last quarter. As a reminder, we see strong upside potential in Hydrodyne's even the margins as we complete integration and execute our synergy plan, particularly considering the business's higher gross margin profile.
Moving to consolidate gross margin performance as highlighted on page 9 of the deck, gross margin of 30.5% increased 95 basis points compared to the prior level of 29.5%. During the quarter, we recognized LIFO expense of $2.2 million compared to $4.8 million in the prior year quarter. This net LIFO tailwind had a favorable 22 basis point impact on gross margins.
Gross margins also benefit from initial positive mixed contribution from our recent hydrodyne acquisition. However, when excluding these positive impacts, we still generate solid gross margin expansion in the quarter, reflecting strong channel execution and the benefits of ongoing gross margin initiatives.
Price/cost trends were relatively neutral in the quarter. In addition, while gross margin mixed benefit from recent M&A, the business continues to face mixed headwinds from lower sales across local accounts and the engineer solution segment. As it relates to our operating costs, selling, distribution, and administrative expenses increased 4.1% compared to prior year levels.
SG&A expense was 19.4% of sales during the quarter, reflecting an increase of 43 basis points in the prior year quarter. Excluding depreciation in the amortization expense, SG&A was 17.9% of sales during the quarter, an increase of only 10 basis points from the prior year. On an organic constant currency basis, SG&A expense was down 6.3% year to year.
During the quarter, we benefit from ongoing efficiency gains and reduced variable expense on lower sales, as well as other cost measures as our team continues to effectively navigate through the subdued demand environment. We also experienced lower medical expense as well as favorable AR provisioning tied to our working capital initiatives with particularly strong collections performance.
Overall, positive gross margin performance coupled with the benefit of spend initiatives and M&A contribution resulted in reported EBITDA increasing 6.8% year over year, including an approximate 2% organic improvement, while EBITDA margin of 12.4% expanded 59 basis points from the prior level of 11.8%. In addition, reported earnings per share of $2.57 was up 3.7% from prior year EPS of $2.48.
This includes an unfavorable impact year over year from interest and other income and a slightly higher tax rate, partially offset by a lower share account. Moving to our cash flow performance. Cash generated from operating activities during the third quarter was $122.5 million while free cash flow totaled $114.9 million representing conversion of 115% relative to net income and a 50% increase from the prior year level.
Year-to-date, we have generated approximately $327 million of free cash flow which is up 39% year-over-year. Our cash flow growth so far this year primarily reflects more modest working capital investment compared to the prior year as well as ongoing progress with internal initiatives and our enhanced margin profile.
From a balance sheet perspective, we ended March with approximately $353 million of cash on hand and that leverage at 0.4 times EBITDA, which is above the prior level of 0.3 times but below last quarter's level of 0.5 times. Our balance sheet is in a solid position to support our capital deployment initiatives moving forward as well as enhanced returns for all stakeholders.
During the third quarter, we repurchased approximately 205,000 shares for $50 million bringing the year-to-date total on share repurchases to 332,000 shares for $80 million.
Turning now to our outlook, as indicated in today's press release and detailed on page 12 of our presentation, we are adjusting full year fiscal 2025 guidance to reflect our third quarter performance and updated fourth quarter expectations.
Specifically, we now project EPS in the range of $9.85 to $10 based on sales growth of flat to up 1%, including a down 4% to down 3% organic growth assumption as well as EBITDA margins of 12.3% to 12.4%. Previously our guidance assumed EPS of $9.65 to $10.05, sales growth of 1% to 3% including organic sales down 3% to 1%, and EBITDA margins of 12.2% to 12.4%. Our updated guidance implies a fiscal fourth quarter EPS range of $2.52 to $2.67 on a total sales year-over-year range of down 1% to up 3%, and EBITDA margins up 12.6% to 12.8%.
Our fourth quarter sales guidance assumes average daily sales decline organically by a mid to low single digit% over the prior year. The updated outlook considers average daily sales in April, declining by an estimated 3% organically year over year, as well as near-term demand implications from greater economic uncertainty around recent tariff actions and an evolving global trade landscape.
We believe this backdrop could weigh on seasonal industrial production trends into the summer as customers conservatively manage costs and capital spending, finding greater clarity on trade and tariff policies. From a margin perspective, we expect fourth quarter growth margins to be relatively stable sequentially.
The outlook assumes limited impact from tariffs on pricing and cost inflation in the fourth quarter, given the timing of announced supplier price increases, our product procurement exposure, and an evolving tariff and trade policy backdrop. In addition, we expect life expenses to be relatively unchanged sequentially at slightly above $2 million and any significant changes in our inventory levels near term.
However, this would represent a headwind year by year in the fourth quarter of about 20 basis points on margins, reflecting LIFO favorability in the prior year fourth quarter, which we previously highlighted partially benefited from a layer liquidation benefit.
Overall, we remain constructive on our setup moving forward considering our industry position, easing prior year comparisons, sustained benefits from our internal initiatives, and engineer solution segment order trends. Greater financial contribution from our recent Hydradyne acquisition, including initial synergy benefits provides additional support.
That said, we believe it is prudent and remains prudent to take a balanced approach to our near-term outlook in the current uncertain operating environment, pending more definitive and broader signs of a positive inflection in macro and industry conditions as trade and tariff policies are formalized.
With that, I'll now turn the call back over to Neil for some final comments.

Neil Schrimsher

As we prepare to close out fiscal 2025, I'm proud of the ongoing progress we are making to strengthen our industry position, customer experience, and growth potential. Near term, we remain focused on executing and managing through a muted in-market backdrop. We expect customers will continue to conservatively manage operational and capital spending amid ongoing business and economic uncertainty that has been intensified by the evolving tariff and trade backdrop.
That said, we remain focused on internal growth and margin initiatives and believe our US centric technical industry position provides near-term resilience and strong growth catalyst long term. Order and backlog trends across our higher margin engineered solution segment provide strong underlying growth momentum in the fiscal 2026, and we're favorably positioned to manage potential greater inflation given our technical industry position, minimal cross border sourcing, structural mixed tailwinds, and various self-help countermeasures inherent to our strategy.
Combined with our strong balance sheet, exposure to long-term secular tailwinds, including reshoring, and easier comparisons moving forward, we remain constructive on our setup in the fiscal 2026 and beyond. I want to recognize our entire Applied team that the foundation of our performance and evolution, their perseverance and operational focus provide a strong position to accelerate our potential moving forward.
With that, we'll open up the lines for your questions.

Question and Answer Session

Operator

(Operator Instructions)
Christopher Glynn, Oppenheimer.

Christopher Glynn

Thanks. Good morning, guys. So your analytics and everything, the insights into the margins and markets are really impressive as always. I get a question that might be a little tough though, if you look across your broad customer base, how are you thinking about the mix of proportion of them that might be particularly levered to some China sourcing and possible major production slowdowns?

Neil Schrimsher

Chris, I don't know that I have all of that insight in going through. But I would say I think the trends that we saw in the quarter and the improvement in the top 30 were positive the move from the 11 to 16. So if I think across it, I think technology and the domestic work that I'll continue to do there announced investments. I think those likely continue. I think obviously food and beverage should stay resilient.
The amount of construction activity and that would be needed as industrial infrastructure builds out would be positive for the aggregates and others into that site. And I would expect -- and we expect a pick up in machinery, utilities, and metals as potentially more domestic work comes in in that side. So that would be some of my insider indications that I have right now.

Christopher Glynn

Appreciate it. I know it was an abstract topic (multiple speakers)

David Wells

In terms of improved daily sales rates as we moved across the core in the service center segments, and of course, the positive impact and in flow flex we saw on new order intake in the engineer solution segment, so those were all encouraging signs.

Christopher Glynn

Great. And then if we could look at some of the piece parts of engineered solutions, relative or specific growth for fluid power flow control and automation, and do you think fluid power could pivot in the first half of fiscal '26 or is that probably a little later?

Neil Schrimsher

I think there could be some trends there. So if I break it apart, right? Automation on the order side was the was the strongest in the quarter, the 30% year over year and nice improvement sequentially. Fluid power on the technology side was double digit, a plus 10 on that side, which was positive as well. And then the mobile and industrial, positive year-over-year sequentially up 6% in that side.
I think we've talked about previously, I think the inventory has normalized in with some of those OEMs as well. And so in some of those sectors as we work through '26, we can start to see some of that pick up. It could develop to your point in the first half, but I think it continues to build throughout the fiscal '26.

Christopher Glynn

Okay, and I missed your comment on fluid power, David, prior to Neil there.

David Wells

I mean, prior to Neil referenced, broader engineer solution segment order trends. As Neil indicated, broke that out a little bit of detail. We did see the tech up around 10% within fluid power, encouraging, year-over-year growth on the mobile off highway piece, industrial as well, fluid power and up 6% sequentially in terms of water intake.
So all encouraging in terms of ultimate recovery in that mobile off highway space within fluid power where we've seen some of that lower demand. And you did experience some of that hangover coming off the supply chain disruption with some excess inventory in the channel. So all encouraging trends there for sure.

Christopher Glynn

Thanks. Last one for me, just want to check if that 30% automation or growth is an organic number.

David Wells

That is.

Christopher Glynn

Great. Thank you.

Operator

David Manthey, Baird.

David Manthey

Yeah, thanks. Good morning, guys. As it relates to the guidance, some companies are sort of assuming known and expected price increases and then layering that over their growth expectations. We just had a company that is not assuming price increases as kind of a hedge for demand destruction and others are in between that. Just wondering as you think of your approach to setting guidance, how would you characterize it relative to factoring in? Any tariff driven price increases and balancing that out with demand destruction?

Neil Schrimsher

So I think as we go forward, we will be factoring in what we believe the price inflationary to look like. I think to-date, we talked about it in the remarks, we probably had 100 basis points of impact in the third quarter or contribution to price. In our fourth quarter, we would expect a similar amount. We are seeing increases from suppliers. I think many that have an annual increase at the beginning of the year have implemented that.
There would be some inflationary expectation or input into that, so perhaps a slightly larger increase. There's another group of suppliers that would be more mid-year. That has looked to accelerate those. But if I look forward at our fourth quarter, I think many of those increases will start to layer in somewhat the middle part of the fourth quarter, and that's why we think price contribution is still similar in that 100 basis points category in the fourth quarter.
And then as we look forward, I think it's still to be determined. We're working with suppliers. Many are formulating strategies about what might be reciprocal tariffs and that impact. I think it has the potential to be several 100 basis points potentially in that, but there's still things to work through in that time period. So we're going to work very hard to have the understanding and execute on what material, what price inflation will be, and also what in market activities would be. And perhaps there will be some that get lessened through this area, but I also contend there are going to be some that are going to strengthen and go forward with investments and have more regionalized demand, be it in the US or including in North America.

David Manthey

Okay, so it sounds like you're just taking a logical approach to the tariff driven price increases you're seeing and layering that on to your demand forecast, and that's what's guiding you. Okay, that's that's helpful --

David Wells

Sorry, they're guiding one quarter, David, but it's -- a lot of what we're seeing in terms of price increases as you indicated is more general inflation related. As everyone seems to be taking a wait and see attitude in terms of that 90-day, now 60-day window in terms of, better clarity in terms of what tariffs do to us. So given that timing, very little impact for us in Q4, purely tariff driven.

David Manthey

Yeah, great idea to be on a June fiscal year this year for sure. Yeah, so then I guess there's kind of this thesis out there that there's a differential in demand destruction or growth rates across whether it's MRO related products, parts and components that are feeding production lines, and then third, sort of capital expenditure driven demand.
It doesn't sound like you're seeing sort of an increasing level of demand destruction there given your automation organic growth you just talked about. So could you just talk about those three things MRO and then production sort of driven products versus capital expenditure driven sales? Is there a general trend in any of those or is it kind of dependent on the end market more?

Neil Schrimsher

Yeah, I think for us, David, overall we think about our service centers and given half their demand often will occur at a break fixed time, that's really resilient in that. We have seen in the broader MRO or some planned projects perhaps some deferrals or some kick out a little bit of that, as customers work through or think through planning and look for a little bit more certainty in the backdrop. But MRO, we feel given that's 70% of the overall company mix stays pretty resilient throughout.
And then where we are involved in projects and capital projects, they're really not extremely large capital intensive investments. They're enabling customers to be more productive, more efficient into the side. They have good paybacks and returns. And so we have seen some deferral or some delays in that, some of that's related to how the project -- part of the project interacts with the total part of the investment or the project.
But we take encouraging signs the engineered solutions order rate that we would have had in the quarter, the building backlog that we're seeing including in flow control and automation in this site, and then the very early signs even in off-highway mobile, perhaps it is bottoming and firming into the side, while the technology that has been a headwind, if we look back, over perhaps 18 to 24 months back is starting to be a contributor again.

David Manthey

It's great color, Neil. Thanks, all.

Operator

Sabrina Abrams, Bank of America.

Sabrina Abrams

Hey, good morning. Yeah, I just wanted to talk, I guess, a little bit about the what you're seeing in the macro. And I think generally your trends seem positive, like sequentially, clearly there's a great extent of uncertainty, but the Q4 guide just decelerating trends from '23. And you know I guess it seems sort of May and June get worse. And I guess how much of that has to do with what you are currently seeing, maybe if you could clarify, whether April actually slowed from March, February or if there was something with Easter going on but from a demand if April has slowed?
And I guess how much of things accelerating in the guide has to do with what you've already seen versus just assuming that things are going to get more negative from here. And then how do we sort of square the order trends in engineer solutions which I think have been positive for two quarters now with the implied deceleration quarter over quarter?

Neil Schrimsher

Yeah, so I'll perhaps work backwards. I'll start with the engineered solutions orders. So depending on the amount of engineering and the work to go into those projects which can vary, the conversion time can be 120 days, maybe 180 days on some of those. So encouraging on the build that I think many of those start to contribute into our fiscal '26 on that side.
And then if I think about the overall guide as we said, we want to be prudent in this environment. And as Work through these 90-day periods and what some of the tariffs and potential reciprocal tariffs may turn out to be into that site, we're still very focused on how we are executing the business and helping the customers in.
So I think that guide has appropriately prudent in that area. To your point, April did have an influence of a Good Friday Easter holiday timing into that, perhaps that was 100 basis points into that side influence. And then as we think about, March as it built up, probably on a two-year stack basis would have been down 1%, March more 4% into that period, so. As we think about April, given some of that order activity, we just want to be conscious of some of that either cross current or uncertainties that could exist.

David Wells

I'd add, as you move across the months, June is a little bit tougher comp for us, April did see that impact from what we call a half day, in terms of Good Friday holiday. So could factor accordingly for that. But I just add, really the low end of the guidance, that seems an average daily sales is roughly 500 basis points below the normal sequential trends in the quarter.
At the high end though, where we say down low single digits. Assumes average daily sales roughly 100 basis points below the normal step up we would see going into our Q4. So you know that compares that 100 basis points compares to a 230 basis points, kind of below normal seasonality level we've been running year-to-date. So just given all the uncertainty, thought it prudent to position it accordingly.

Sabrina Abrams

Got it. No, thank you, that's helpful. And then just on the EBITDA margins, if you've had good performance here today, and I guess if you look at what's implied by the guide, you have maybe similar year-over-year sales growth and maybe slightly worse in Q4 to Q3.
On a total basis, and then you have a much larger step up in SG&A, year over year, so the implication is something like I don't know, like 7% year-over-year increase in SG&A on 1% of sales growth. And I just want to understand at the sort of what it's implied by the midpoint of your guide. And I just sort of want to understand what will be driving so much the leveraging quarter over quarter. Does it have something to do with the acquisitions, something to do with inflation, so any color there would be helpful.

David Wells

Yeah, very proud of the business's cost controls and productivity in terms of SG&A spend in our most recent quarter. Hydradyne, comes in at a favorable gross margin mix up benefit, but still, higher SG&A rates. So you're seeing that read through. We're starting to get great traction on some of the synergy initiatives, but not a great deal of that reading through yet, even in the fourth quarter. So that is an influence.
And I'd say, thinking back to the ghost margin performance, we said WIPO would be at a similar level sequentially what we saw on Q3. But just a reminder that you know in Q4 of last year as we comp this quarter, we did have a layer of liquidation benefit in the prior year, so that alone drives about a 20 basis point adverse impact on both gross and even a margins. So you're seeing all those combinations read through the, show some deleveraging as a result of just looking absolute numbers year over year.

Sabrina Abrams

I'll follow up on that offline. Thank you.

Operator

Ken Newman, KeyBanc Capital Market.

Ken Newman

Hey. Good morning, guys. For the first question, I think longer term, I know you're not ready to talk about fiscal '25 yet. But I think you typically think about incremental margins through the cycle of kind of being in that mid to high teen range.
If demand does start to normalize next year, whether it's in DS or in service center, do you think that's the type of incremental that you could drive or does that become a little bit tougher depending on maybe some higher lifeboats for potential price increases? Just how do you think about maybe the moving pieces and operating leverage?

Neil Schrimsher

Yeah, I would think end of the year and longer term, we still believe in our ability to have incremental in that mid to high teens range into the side as we think about it. To your point, a little early on fiscal '26, and a lot of moving -- perhaps a lot of moving parts. We'll be working through our planning. We're going through our long range strategy sessions and game theory had the service centers. And game theory with the board this past time, engineered solutions in in coming up, and we're working the planning cycles right now.
But perhaps as a starter, as we think about or look at '26, perhaps it's as the fourth quarter guidance that would end. And if you apply normal seasonality looking ahead, that results in something that's flat, then if you think about there will be price contribution in that perhaps that's several 100 basis points into it.
Perhaps with some of the uncertainty in environment that degrades that volume a little bit, but we also contend we can have engineered solutions with backlog conversion into that site which could potentially contribute so. Perhaps '26 looks like a low single digit environment overall, perhaps it could be better as we work through.
And then just as a reminder on LIFO, if there is more expense, I mean, obviously I'd start with it does provide LIFO overall a significant cash benefit to us in inflationary times. And if they look back at '17 through '19 with LIFO, we did a very nice job managing through that. And we grew gross margins into that period, 60 basis points or so. So the team has a good playbook. We have that muscle memory. We will be focused on really any operating environment that's ahead of how we execute and perform.

David Wells

I'll just add, coming out of the inflation of the COVID and some of that demand rebound, the business did very nicely in terms of levering when you think about the times, incrementals in excess of 20% despite some of those LIFO headwinds, etc. that Neil indicated. So structure, I just think the business is even better position now when you think about the mix up benefit that comes with higher engineered solutions, contribution.
And once again, just thinking about the way the business levers on, some of that SG&A base. Once you get past that first 1% to 2% of growth, would expect, like I said, those mid to high teens incrementals for sure.

Ken Newman

Yes, that's really helpful. Maybe for the second question here, talk a little bit about capital deployment. Obviously, you've got the the new bolt on deal for IRIS this morning. You also, I think, announced a new share repurchase program as well. How do you think about priorities between the two? Is this a good level or a good share price level as you think about acting on that? That share repurchase program and with the capacity to act on M&A, even here in the forth quarter and into '26.

Neil Schrimsher

Yeah, so I can start. So Ken, overall our capital allocation, our priority is going to remain growth. We know that organic investments we make have high returns. And while we're not so capital intensive, we will be going through that planning and executing on those.
We know also M&A can be a strong contributor to that. That will remain a priority. The pipeline's active. We're busy into that front, so that will contribute into the side. And then from a share repurchase standpoint, I'm pleased that the authorization was renewed in coming out. We will maintain a disciplined approach, a returns driven approach at that. But I would expect that we will be active in the fourth quarter.

David Wells

And to say, yes, so coming off of Hydradyne and the incremental share repurchase activity in the most recent quarter still at 0.4 times leverage, plenty of dry powder to handle all those capital deployment opportunities.

Ken Newman

Very helpful, thanks.

Operator

Brett Linzey, Mizuho.

Hey, good morning, guys. This is Peter Kass on from Brett. Could you just add some color on what you're seeing from, reshoring investments, specifically? What's the pulse out there just as we wait out this policy uncertainty? Anything you're hearing around customer tone would be helpful. Thanks.

Neil Schrimsher

So I think overall, the activity or discussions around reshoring continue. If I think about the investments in facilities and we're seeing that from kind of the manufacturing non-resi construction rates being up. I know there's been a positive impact for a number of years in manufacturing employment, whether that's 1.4%, 1.5% into the side that continues.
Many discussions with customers as they think about upcoming environments, what are they moving inside of their facilities or how they're looking to qualify other suppliers. And so many of Those next tier, second, third tier OEMs are customers of ours today, and so there will be capital and operating investments that could be continuing on that.
And then we all see and read about large companies making extended investments in. And so as those projects start, we've got great indirect participation with our service centers as we think about metals, mining, aggregate as things get built and formed. And then as the facilities run and operate, they give us a strong aftermarket MRO. And then for some of these, including in fluid power and technology products depending on the industry, we're on that equipment going in which can create some pull for us as well. So I think reshoring continues to be an input and perhaps can be even a greater input as we look out at fiscal '26 and beyond.

Thank you. And then maybe how do you think about the willingness of the channel to take on more price? Just any early pushback there as you kind of start to have the conversations with your suppliers and then with your channel? And then is there kind of just a willingness for the suppliers to to work through on any contract timing mismatches, anything there?

Neil Schrimsher

Sorry, what was the last part of that question about suppliers?

Just any willingness, on the supplier side to work through contract timing mismatches maybe with with larger national accounts, anything like that.

Neil Schrimsher

Yeah, so I would say overall, right, I mean there's clear awareness of tariffs, inflationary impacts, and inputs throughout any environment. And we're firm believers that we as consumers will pay more for items going forward, and that's going to be the same in the industrial environment. And so many of our customers are looking at right how they have clarity of what those inputs are going to be, and how they form those pricing inputs and policies as they take them forward in going out.
As it relates to suppliers, they will be coming with the faith -- they'll provide the documentation that it will go through, And we work closely with them to have the right implementation schedule across the producing or customer landscape in that. And so if I look back, it's been productive in our operating history and cadence, and I expect the same as we go forward.

Operator

At this time, I am showing we have no further question. I will now turn the call over to Mr. Schrimsher for any closing remarks.

Neil Schrimsher

I just want to thank everyone for joining us today, and we look forward to talking with many of you throughout the quarter. Thank you.

Operator

Thank you, ladies and gentlemen. That concludes today's conference. Thank you for participating. You may now disconnect.