Revenue and Sales Performance - UHG's revenue for Q3 2024 was approximately $118.6 million, a 35.2% increase from $87.7 million in Q3 2023, driven by increased home closings and higher average sales prices [191][200]. - For the nine months ended September 30, 2024, UHG generated revenue of approximately $328.9 million, compared to $304.6 million for the same period in 2023, marking an increase of 8.0% [192]. - Revenue for the nine months ended September 30, 2024 was $328.9 million, an increase from $304.6 million in 2023, representing a growth of 7.8% [226]. Home Closings and Orders - The company closed 369 homes in Q3 2024, representing a 30.4% increase from 283 homes closed in Q3 2023 [201]. - Net new orders for the three months ended September 30, 2024 were 341 units, an increase of 69 units, or 25.4%, from 272 units for the same period in 2023 [210]. - Net new orders for the nine months ended September 30, 2024 were 1,048 units, an increase of 46 units, or 4.6%, from 1,002 units in 2023 [224]. Financial Losses and Profit Margins - The company reported a net loss of approximately $7.3 million for Q3 2024, which included $7.8 million related to the change in fair value of derivative liabilities [191]. - UHG's gross profit margin for Q3 2024 was 18.9%, a decrease of 0.9% from 19.8% in Q3 2023 [200]. - The adjusted EBITDA margin for Q3 2024 was 7.6%, down from 10.0% in Q3 2023, reflecting a decrease of 2.4% [191][200]. Backlog and Inventory - UHG's backlog decreased to 220 units in Q3 2024, down 22.0% from 282 units in Q3 2023 [200]. - Backlog for the three months ended September 30, 2024 was 220 units, a decrease of 62 units, or 22.0%, from 282 units for the same period in 2023 [212]. Costs and Expenses - Cost of sales for the nine months ended September 30, 2024 was $270.8 million, an increase of $24.3 million, or 9.9%, from $246.5 million for the same period in 2023 [216]. - Selling, general and administrative expense for the three months ended September 30, 2024 was $18.7 million, an increase of $5.1 million, or 37.5%, from $13.6 million for the same period in 2023 [204]. Cash Flow and Financing - As of September 30, 2024, the company had approximately $25.8 million in cash and cash equivalents, a decrease of $30.9 million from $56.7 million as of December 31, 2023 [230]. - Net cash flows used in operating activities for the nine months ended September 30, 2024, were $12.0 million, a decrease of $57.5 million compared to $45.5 million provided in the same period of 2023 [242]. - Net cash used in financing activities for the nine months ended September 30, 2024, was $6.2 million, a decrease of $31.8 million compared to $25.6 million provided in the same period of 2023 [244]. Acquisitions and Investments - The company completed the acquisition of Creekside Custom Homes for $12.7 million, recognizing goodwill of approximately $3.6 million [198]. - The Company used $12.7 million in cash to acquire homebuilding assets of Creekside Custom Homes during the nine months ended September 30, 2024 [243]. Tax and Earnings - The company's estimated annual effective tax rate for the fiscal year ending September 30, 2024 is 17.0%, down from 26.2% for the same period in 2023 [222]. - Net income for the nine months ended September 30, 2024 was $46.2 million, a decrease of $145.5 million, or 75.9%, from $191.7 million for the same period in 2023 [213]. Market and Economic Factors - A 100 basis point increase in overall interest rates would negatively affect the Company's net income by approximately $0.7 million [254]. - The Company has not entered into derivative financial instruments for trading or speculative purposes or to hedge against interest rate fluctuations [253].

Core Viewpoint - United Homes Group, Inc. reported significant declines in profitability for the third quarter of 2024, despite strong revenue growth and increased home closings and orders [1][7][9]. Revenue Performance - United Homes registered revenues of $118.6 million in the third quarter, reflecting a 35.2% increase year over year [2]. - Home closings during the quarter were 369, up 30.4% from 283 in the same period last year [2]. - Net new home orders were 341, representing a 25.4% increase compared to 272 in the year-ago period [2]. Pricing and Sales Metrics - The average sale price (ASP) of production-built homes was approximately $320,000, a 1.3% increase from $316,000 in the previous year [3]. - The active community count as of September 30, 2024, was 55, with 8,600 lots owned or controlled by the company or related parties [3]. Profitability Analysis - Gross profit improved 28.6% year over year to $22.4 million, but gross margin contracted by 98 basis points to 18.9% [5]. - Adjusted gross margin was 20.6%, down from 22.1% in the year-ago period [5]. - The operating loss totaled $7.4 million compared to an operating profit of $152.6 million in the previous year [7]. - The net loss was $7.3 million against a net profit of $150.8 million in the year-ago quarter [7]. - Adjusted EBITDA was $8.9 million, up 2.1% from the previous year [7]. Operating Expenses - Selling, general and administrative expenses increased by 37.1% year over year to $18.7 million [6]. Liquidity Position - United Homes ended the third quarter with cash and cash equivalents of $25.8 million, slightly up from $24.9 million at the end of the second quarter [8]. Management Insights - Management indicated that the company is implementing initiatives to drive growth, reduce direct costs, and manage overhead effectively [10]. - The company is updating its product offerings to remain competitive and meet market demand [10].

Financial Data and Key Metrics Changes - For Q3 2024, the company reported a net loss of $7.3 million, influenced by a change in fair value of $7.8 million related to potential earn-out liabilities [17] - Revenue for Q3 2024 was $118.6 million, up from $87.7 million in Q3 2023, marking a significant year-over-year increase [18] - Gross profit for Q3 2024 was $22.4 million with a gross profit margin of 18.9%, compared to $17.4 million and 19.8% in Q3 2023 [20] - Average sales price for production-built homes in Q3 2024 was approximately $320,000, slightly up from $316,000 in Q3 2023 [19] Business Line Data and Key Metrics Changes - Home sales revenue grew by 35% year-over-year, with a 30% increase in new home deliveries [5] - Home closings in Q3 2024 totaled 369 homes, compared to 283 homes in Q3 2023 [19] - Net new orders for Q3 2024 were 341 homes, up from 272 homes in Q3 2023 [20] Market Data and Key Metrics Changes - The company noted steady traffic in its communities, although conversion rates were affected by mortgage rate fluctuations [6] - The backlog at the end of Q3 was 220 homes valued at approximately $79.9 million [20] Company Strategy and Development Direction - The company aims to transition from a private home builder to a production-focused builder, emphasizing affordable housing segments [8][12] - The strategy includes leveraging relationships with land bankers to maintain capital efficiency and reduce risk [14] - The focus will remain on the affordable housing market, which is seen as undersupplied and in high demand [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to market conditions and execute strategic initiatives, despite a competitive environment [16] - The favorable housing fundamentals in the Southeast are expected to provide a consistent pipeline of new home buyers [11] - The company anticipates elevated incentives for home buyers due to the current mortgage rate environment [7] Other Important Information - As of September 30, 2024, the company had 55 active communities and approximately 80,600 lots under control [23] - Total liquidity was reported at $89 million, consisting of $25.8 million in cash and $63.2 million available on the credit facility [23] Q&A Session Summary - The call concluded without a detailed Q&A session, as the operator indicated the end of the conference call [24]

Financial Performance - In Q3 2024, United Homes Group closed 369 homes, generating revenue of $118.6 million, a 35% increase from $87.7 million in Q3 2023[1][3] - Revenue for the three months ended September 30, 2024, was $118,643,955, a 35.2% increase from $87,728,091 in the same period of 2023[22] - For the nine months ended September 30, 2024, revenues were $328.9 million, compared to $304.6 million for the same period in 2023[6] - Net loss for the three months ended September 30, 2024, was $(7,339,235), a significant decrease from net income of $150,842,687 in the same period of 2023[22] - The company reported a basic loss per share of $(0.15) for the three months ended September 30, 2024, compared to earnings of $3.12 per share in the same period of 2023[22] Profitability Metrics - The gross profit percentage for Q3 2024 was 18.9%, down from 19.8% in Q3 2023, primarily due to increased sales incentives[4][7] - Gross profit for the three months ended September 30, 2024, was $22,383,027, compared to $17,410,295 in the prior year, reflecting a gross profit margin of 18.9%[22][26] - Adjusted gross profit for the three months ended September 30, 2024, was $24,480,958, with an adjusted gross profit margin of 20.6%[26] - Adjusted EBITDA for Q3 2024 was $9.0 million, slightly up from $8.8 million in Q3 2023[5][9] - Adjusted EBITDA for the three months ended September 30, 2024, was $8,978,713, reflecting a slight increase from $8,797,192 in the same period of 2023[29] - The adjusted EBITDA margin for the three months ended September 30, 2024, was 7.6%, compared to 10.0% in the same period of 2023[29] Orders and Backlog - Net new home orders increased by 25% year-over-year, totaling 341 in Q3 2024 compared to 272 in Q3 2023[2][3] - Total net new orders for the three months ended September 30, 2024, reached 341, a 25% increase from 272 in the same period of 2023[39] - The company’s total backlog inventory as of September 30, 2024, was 220 homes, with a backlog value of $79.9 million, representing a 16% increase in inventory and a 39% increase in backlog value compared to the previous year[41] Assets and Liabilities - Total assets decreased to $282,611,518 as of September 30, 2024, down from $298,647,328 at the end of 2023[21] - Total liabilities decreased to $262,822,204 as of September 30, 2024, down from $329,829,864 at the end of 2023[21] - Homebuilding debt decreased to $72,196,208 from $80,451,429 at the end of 2023[21] - Cash and cash equivalents decreased to $25,818,156 from $56,671,471 at the end of 2023[21] Equity and Retained Earnings - Total stockholders' equity for Q3 2024 was $19.8 million, with an adjusted book value of $87.7 million[2][4] - The company’s retained earnings improved to $12,257,158 as of September 30, 2024, from a deficit of $(33,981,864) at the end of 2023[21] - The company’s total stockholders' equity as of September 30, 2024, was $19,789,314, with an adjusted book value of $87,671,035 after excluding goodwill and derivative liabilities[37] Operational Expenses - SG&A expenses as a percentage of revenues were 15.8% in Q3 2024, including $1.6 million in stock-based compensation[4][8] - Adjusted SG&A for the three months ended September 30, 2024, was $16,434,672, with an adjusted SG&A percentage of 15.8%[33] - The company incurred $1,567,945 in stock-based compensation expense for the three months ended September 30, 2024[33] Market Expansion - The company plans to expand into new geographic markets focusing on positive population and employment growth trends[15] Interest and Derivative Liabilities - Interest expense in cost of sales for the three months ended September 30, 2024, was $1,524,748, slightly down from $1,531,318 in the same period of 2023[29] - The change in fair value of derivative liabilities for the three months ended September 30, 2024, was $7,784,965, compared to a loss of $(149,703,161) in the same period of 2023[29]

Financial Data and Key Metrics Changes - For Q2 2024, net income was $28.6 million, including a change in fair value of $32.1 million related to potential earnout accounting [10] - Revenue for Q2 2024 was $109.4 million, down from $122.1 million in Q2 2023 [11] - Gross profit for Q2 2024 was $19.6 million with a gross profit margin of 17.9%, down from $23.9 million and 19.6% in Q2 2023 [12] Business Line Data and Key Metrics Changes - The company delivered 337 homes in Q2 2024, generating revenue of $109 million, with the Midlands operations contributing the highest number of deliveries [6][7] - Home sales gross margin was 17.9% on a GAAP basis and 20.9% on an adjusted basis [7] - Net new home orders for Q2 2024 were 323 homes, flat year-over-year, but coastal operations saw a 59% increase and upstate operations a 44% increase [7] Market Data and Key Metrics Changes - The company ended Q2 2024 with 59 active communities, up from 53 in Q2 2024 [14] - The average sales price during Q2 2024 was approximately $341,000, compared to $313,000 in Q2 2023 [11] Company Strategy and Development Direction - The company is focused on acquiring lots in a capital-efficient manner and building homes in high-growth Southeastern markets, targeting affordable segments [3][5] - The strategy includes a combination of mergers and acquisitions (M&A) and organic growth, with a commitment to maintaining local builders' operations post-acquisition [5] - The company aims to improve absorption rates by focusing on slower-moving communities and adjusting product offerings [16][17] Management's Comments on Operating Environment and Future Outlook - Management noted a transition period in Q2 2024 due to consolidating acquisitions and rationalizing the workforce, which impacted results but did not alter the long-term outlook [4] - Positive homebuilding fundamentals were highlighted, including steady job growth and low inventory levels [5] - The company remains optimistic about the future, focusing on starting and selling homes to meet delivery goals [6] Other Important Information - The company had approximately 9,300 lots under control as of June 30, 2024, with a strong liquidity position of $80 million [14] - Adjusted SG&A expense for Q2 2024 was approximately $16.1 million, or 14.7% of revenue [13] Q&A Session Summary Question: Can you talk about your absorptions and strategy for improvement? - Management acknowledged current absorption rates and emphasized a focus on slower-moving communities, adjusting product and pricing strategies [15][16] Question: Can you discuss the lot count and the land market? - Management indicated a tightening of the filter for land acquisitions and noted that while they are still acquiring land, they are focusing on quality deals [18][19] Question: How is the integration of acquisitions progressing? - Management provided updates on the integration of three acquisitions, noting varying levels of progress and operational alignment [25][26] Question: Does the strategy change with interest rates coming down? - Management confirmed a continued focus on affordability and value engineering, adjusting incentives based on market conditions [27][28]

Financial Performance - UHG's revenue for Q2 2024 was approximately $109.4 million, a decrease of 10.4% from $122.1 million in Q2 2023, primarily due to a reduction in home closings [162][170]. - UHG's net income for Q2 2024 was approximately $28.6 million, a significant decrease of 88.3% from $245.4 million in Q2 2023 [162][170]. - The gross profit margin for Q2 2024 was 17.9%, down from 19.6% in Q2 2023, indicating a decline in profitability [171]. - UHG's adjusted EBITDA margin for Q2 2024 was 7.0%, a decrease of 34.6% compared to 10.7% in Q2 2023 [170]. - Adjusted gross profit for Q2 2024 was $22.8 million, a decrease of $3.3 million, or 12.6%, compared to $26.1 million in Q2 2023, with a gross profit margin of 20.9% [173]. - Net income for Q2 2024 was $28.6 million, a decrease of $216.8 million, or 88.3%, from $245.4 million in Q2 2023, primarily due to a decrease in income before taxes [177]. - Gross profit for the six months ended June 30, 2024, was $35.7 million, a decrease of $5.0 million, or 12.3%, with a gross profit margin of 17.0%, down 1.8% from 18.8% in the same period of 2023 [182]. - Net income for the six months ended June 30, 2024, was $53.6 million, an increase of $12.7 million, or 31.1%, from $40.9 million for the same period in 2023 [187]. - EBITDA for the six months ended June 30, 2024, was $64.5 million, an increase of $14.6 million, or 29.3%, from $49.9 million for the same period in 2023 [193]. Home Closings and Orders - The company had 337 home closings in Q2 2024, down 12.5% from 385 closings in Q2 2023, reflecting the impact of rising mortgage rates on purchasing power [171]. - Net new orders for Q2 2024 were 323 units, a decrease of 18 units, or 5.3%, from 341 units in Q2 2023, with a cancellation rate of 12.7%, down 3.1% from 15.8% [178]. - Backlog for Q2 2024 was 248 units, a decrease of 45 units, or 15.4%, from 293 units in Q2 2023 [179]. - Net new orders for the six months ended June 30, 2024, were 707 units, a decrease of 23 units, or 3.2%, from 730 units for the same period in 2023 [187]. - Cancellation rate for the six months ended June 30, 2024, was 11.1%, a decrease of 3.4% from 14.5% for the same period in 2023 [187]. Acquisitions and Growth Strategy - The company completed the acquisition of Creekside Custom Homes for $12.7 million in cash, enhancing its market presence in South Carolina [167]. - UHG plans to expand its business through targeted acquisitions of complementary private homebuilders and homebuilding operations [161]. - UHG's pipeline as of June 30, 2024, consists of approximately 9,300 lots, indicating potential for future growth [160]. Expenses and Financial Position - Selling, general and administrative expense for the six months ended June 30, 2024, was $36.7 million, an increase of $3.7 million, or 11.2%, from $33.0 million in the same period of 2023 [183]. - Cash and cash equivalents as of June 30, 2024, were approximately $24.9 million, a decrease of $31.8 million from $56.7 million as of December 31, 2023 [194]. - The Company reported net cash flows used in operating activities of $19.1 million for the six months ended June 30, 2024, a decrease of $69.4 million compared to $50.3 million provided in the same period of 2023 [216]. - Net cash used in investing activities for the six months ended June 30, 2024 was $12.7 million, primarily for acquiring homebuilding assets [219]. - The Company’s financing activities provided $120,322 in cash for the six months ended June 30, 2024, a significant decrease from $30.1 million in the same period of 2023 [219]. Debt and Interest Rates - As of June 30, 2024, the total debt on contracts amounted to $72,724,336, with homebuilding debt from Wells Fargo Syndication at $71,196,208 and other notes payable at $1,528,128 [204]. - The outstanding balance of the Convertible Note Agreement was $69,040,609 as of June 30, 2024, with a maturity date of March 30, 2028 and an interest rate of 15% [214]. - The average interest rate on homebuilding debt from Wells Fargo Syndication was 8.57% as of June 30, 2024 [204]. - A 100 basis point increase in overall interest rates would negatively affect the company's net income by approximately $0.7 million [229]. - The company utilizes both fixed-rate and variable-rate debt, with fixed-rate debt affecting fair value and variable-rate debt impacting future earnings and cash flows [228]. Tax and Derivative Liabilities - Income tax expense for Q2 2024 was $0.1 million, compared to $2.7 million in Q2 2023, with an estimated annual effective tax rate of 15.3% [176]. - The effective tax rate for the full fiscal year is estimated to be 15.3% for June 30, 2024, compared to 26.2% as of June 30, 2023 [186]. - Change in fair value of derivative liabilities for Q2 2024 was a gain of $32.1 million, down from a gain of $242.3 million in Q2 2023 [175]. - The change in fair value of derivative liabilities for the six months ended June 30, 2024, was a gain of $58.4 million, compared to $35.3 million for the same period in 2023 [185]. Stock-Based Compensation and Financial Instruments - The company’s stock-based compensation includes stock options, RSUs, PSUs, and stock warrants, with specific accounting methods applied for each type [221]. - The fair value of stock option awards is determined using the Black-Scholes option pricing model, while PSU awards with a market condition are assessed using a Monte Carlo simulation model [222]. - The company has not entered into derivative financial instruments for trading or speculative purposes or to hedge against interest rate fluctuations [228].

Core Insights - United Homes Group, Inc. (UHG) reported a significant decline in earnings per share, which fell to 50 cents in Q2 2024, down 88.3% from $4.27 in the same quarter last year [1] - The company experienced a decrease in revenues, totaling $109.4 million in Q2 2024, a decline of 10.4% year over year [2] - Home closings decreased to 337 units, down 12.5% from 385 units in the previous year, while net new home orders also fell to 323, down 5.3% from 341 units [2] Revenue Analysis - The average sale price (ASP) of production-built homes increased to approximately $341,000, an 8.9% rise from $313,000 in the previous year, driven by changes in product mix due to acquisitions [3] - The active community count as of June 30, 2024, was 59, with 9,300 lots owned or controlled by the company or its affiliates [4] Gross Margin and Profitability - Gross profit declined by 18.1% to $19.6 million, with gross margin contracting by 170 basis points to 17.9% due to amortization of purchase accounting adjustments, severance costs, and abandoned project costs [5] - Adjusted gross margin was reported at 20.9%, down from 21.4% in the previous year, primarily due to continued sales incentives offered to homebuyers [6] - Operating loss was recorded at $0.04 million compared to an operating profit of $7.6 million in the previous year, with net income down 88.3% to $28.6 million [8] Operating Expenses - Selling, general and administrative (SG&A) expenses increased by 20.1% to $19.6 million, with SG&A as a percentage of revenues at 17.9% [7] Liquidity and Cash Position - UHG ended Q2 2024 with cash and cash equivalents of $24.9 million, a decrease from $28.7 million at the end of the first quarter [9] Overall Assessment - The company faced disappointing top-line and bottom-line results, with declines in home closings and net new home orders, alongside gross margin contraction [10] - However, the increase in ASP for production-built homes was noted as a positive aspect during the quarter [10]

Financial Performance - In Q2 2024, United Homes Group closed 337 homes, generating revenue of $109.4 million, down from $122.1 million in Q2 2023[1][2] - Net income for Q2 2024 was $28.6 million, or $0.50 per diluted share, compared to $245.4 million, or $4.27 per diluted share in Q2 2023[2] - Total revenue for Q2 2024 was $109,420,037, a decrease of 10.4% compared to $122,091,629 in Q2 2023[16] - Gross profit for Q2 2024 was $19,577,696, down 18.1% from $23,917,480 in Q2 2023[16] - Adjusted EBITDA for Q2 2024 was $7.7 million, a decrease from $13.1 million in Q2 2023[4] - Adjusted EBITDA for Q2 2024 was $7,660,139, down from $13,109,262 in Q2 2023, reflecting a margin of 7.0% compared to 10.7% in the prior year[22] - The company reported a basic earnings per share of $0.59 for Q2 2024, down from $5.10 in Q2 2023[16] - For the six months ended June 30, 2024, revenues were $210.3 million, compared to $216.9 million for the same period in 2023[5][6] Equity and Assets - The company reported total stockholders' equity of $25.7 million and an adjusted book value of $85.6 million for Q2 2024[2] - Total stockholders' equity as of June 30, 2024, was $25,745,352, with an adjusted book value of $85,633,639 after excluding goodwill and derivative liabilities[27] - Total assets decreased to $284,032,996 as of June 30, 2024, from $298,647,328 at the end of 2023, a decline of 4.7%[15] - Total liabilities decreased to $258,287,644 as of June 30, 2024, down from $329,829,864 at the end of 2023, a reduction of 21.7%[15] - Cash and cash equivalents decreased to $24,915,782 from $56,671,471, a decline of 56.0%[15] Sales and Orders - The average sale price (ASP) of production-built homes increased to approximately $341,000, an 8.9% rise from $313,000 in Q2 2023[1][2] - The company reported a total of 323 net new orders in Q2 2024, a 5% decrease compared to 341 in Q2 2023[30] - The backlog inventory as of June 30, 2024, was 248 homes, with a total backlog value of $81.2 million, representing a 31% increase in inventory compared to 189 homes in the previous year[32] - The Upstate market saw a 44% increase in net new orders in Q2 2024, totaling 82 orders compared to 57 in Q2 2023[30] Operational Strategy - United Homes Group aims to expand into markets with positive population and employment growth trends, focusing on affordable housing segments[10] - The company plans to leverage its land-light operating strategy to mitigate risks associated with acquiring and developing raw land[9] - The company is focusing on improving operational efficiency and managing costs in response to declining revenues and profits[18] Cost Management - Gross profit as a percentage of revenue was 17.9% in Q2 2024, down from 19.6% in Q2 2023[3] - Adjusted gross profit for Q2 2024 was $22,845,124, compared to $26,077,447 in Q2 2023, reflecting a decrease of 12.8%[19] - Adjusted SG&A for Q2 2024 was $16,077,590, with an adjusted SG&A margin of 14.7%[25] - Interest expense in cost of sales decreased to $1,659,089 in Q2 2024 from $2,159,967 in Q2 2023[22] - The company incurred $1,504,416 in severance expenses during the first half of 2024[22] Market Trends - The company controlled approximately 9,300 lots as of June 30, 2024, with over 95% controlled via option agreements or land banking[1][2] - The company experienced a 31% increase in backlog value in the Coastal market, with a backlog value of $18.1 million as of June 30, 2024[32]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission File Number: 001-39936 United Homes Group, Inc. (Exact name of Registrant as specified in its charter) Delaware 85-3460766 (State or ...

United Homes Group, Inc. (NASDAQ:UHG) Q1 2024 Earnings Conference Call May 10, 2024 8:30 AM ET Company Participants Erin McGinnis - General Counsel Jack Micenko - President Shelton Twine - Chief Operating Officer Keith Feldman - Chief Financial Officer Conference Call Participants Carl Reichardt - BTIG Operator Good day, everyone and welcome to the United Homes Group First Quarter 2024 Earnings Call. [Operator Instructions] Please note this call may be recorded and I will be standing by should you need any ...