Good to see everyone. Thanks for joining us at the eleventh annual Laguna Industrial Conference. Really great to see everybody's faces, and I'm happy to welcome on stage the team from Lennox. Good to start off with what I think has been a good story here, especially over the last, you know, year or two with all the changes that have happened and all the improvements. I'm joined on stage by the Lennox team CFO, Joe Reitmeier, Chief Technology Officer, Prakash Bedapudi, and from Investor Relations and Corporate Finance, we have Michael Quenzer. Team, thanks for joining us. Thanks for having us. Joe, maybe just to start off, you know, kind of tell us what you guys are up to, what you're seeing out there. Certainly, a lot to dive into, and a lot of nuance in the HVAC industry right now, especially. But maybe just give us the overview of what you guys are seeing and focused on. You know, it's been busy. You know, we, you know, are off to a, you know, a record-setting start. And for me, the most encouraging thing is, you know, we're setting records for revenue and, and margins and, and earnings, with our largest business being in a down market. So residential volume was expected to be down this year, largely because of residential new construction. That's amplified a little bit with sell-in distribution destocking that's taking place. So, you know, setting all that aside, once again, you know, revenue will be up low single digits in our residential business, even with volumes being down. That's an encouraging sign. On the commercial front, you know, we had some challenges, due to COVID, supply chain, et cetera, that we're powering through now, and that business is on a nice trajectory, getting back to record-setting margins. And once again, on track to hit our long-range targets between 19% and 21% by 2026. So we're in great shape there. All in, you know, once again, it's been a challenging year, but a good year. We had regulatory change that we needed to get through. We've got some on the horizon in 2025 that'll be more disruptive to the industry, so we have Prakash here to shed some light on that today. So that'll be interesting. But all in, you know, we're in a very good place. You know, once again, we're back in the share game, game. So once again, we were crippled by a tornado, you know, some struggles in our, in our commercial factory, once again, that we're powering through, but it's really setting the table for us to do what we've always wanted to do, and that's maintain focus on unitary HVAC and commercial refrigeration here in North America. And the table is well set. Once again, first half record-setting results, we expect them to exceed the guidance we have out there currently, and the markets are showing signs of cooperating more on the residential side. So all in, we're in great shape. Excellent. So I guess coming through the first part of the season, obviously, weather was an irritant, to say- It was ... to say the least. Inventory is also running a little high. I think in channel, obviously, not as relevant for Lennox, given that a lot of that's company-owned, but maybe just snap the line on, you know, how this pickup in heat and, you know, where we are on destocking, sort of what innings we are on those. You know, we thrive in extremes, as you know. Of course. So it was a situation where we got some hot weather, but it came late in the second quarter and really didn't affect the second quarter at all. Normally, it would get hot earlier, and we see that benefit through June, but we didn't see that. We did see a lift as we got into the third quarter with hotter, warmer weather, really in the Midwest. You know, it was more sporadic there, but more consistent in the South and Southeast, so that's been helping us, you know, once again, here in the third quarter, but not so much in the second, and then, you know, we'll see where it goes from there. But once again, demand remains steady. We expect a lift in residential demand here in the second half. Volume, on the commercial side of the house, the industry itself is still product constrained. So we still have this bow wave of demand that we're continuing to fight every day to satisfy, but that's a high-quality problem. Of course. On the inventory front, maybe give us a sense for, you know, if there's anything that you would point out, either regionally, product line, you know, anything that stands out on that front. I think you guys said that you were gonna be done with this, you know, either third quarter or early fourth quarter. Does that still look like it's the case? It does. You know, we had some destocking that had taken place where distributors were carrying much higher levels of inventory than historically necessary to meet unmet market demand, just to make sure that they had product available, because that was a challenge during the, you know, during COVID and even lingering a little bit longer after that, due to component shortages limiting production. And that affected commercial more heavily, but it also affected residential to an extent. So we're, you know, through most of that. The destocking in the distributor channel, we think will carry through most likely the third quarter into early fourth quarter before that's complete. You know, we go direct to dealer, so we're less affected by that. In fact, we benefit from that when the destocking takes place from a share perspective. So that's exciting to see. Once again, I think we're just well positioned strategically. We're focused. You know, we've got the right priorities, the right strategy, and once again, I think you're seeing that bear fruit in even challenging market conditions today, where, you know, once again, we're gonna have a record year, and then we'll be off to the races. We're excited about what we see today and what we have in front of us. And then maybe just one finer point, and, perhaps one that you don't have to grapple with as much, given the mix of business, but higher interest rates I would think the- Yeah ... would be a pressure on inventories for anyone who sells through distribution. Right. It seems like underlying demand and sort of working off the COVID excess has a lot to do with this. But is there sort of a toggle there that those folks are pulling along the lines of just higher interest rates, higher carrying costs? No, it's a situation, I think, you know, once again, it was the, you know, the supply chain shortages that led to the product limitations, where distributors didn't want to be sold out of product, so they hoarded inventory. Even us, you know, as a distributor, we made conscious decisions to go out and procure more, raw material inventory that was necessary. And where we could, we are carrying higher levels of finished goods inventory, just to make sure that, once again, we can meet unmet market demand. So, you know, once again, it's affecting us less than some of the, some of our competitors. But, you know, you know, once again, just really excited about what's in front of us. Then I wanna pivot over to what's really been kind of the surprise, the positive surprise of the year on the commercial side. You know, how should I think about the savings or the opportunities still in front of you? Obviously, margins have just kind of blown away everyone's expectations, perhaps even what you guys said internally relative to that original, you know, three-year expectation. Right. But where do we go from here? Where are the opportunities you still see in front of you on cost? You know, I think we're well positioned when it comes to our core of the business, which is our national account business. You know, they tend to be consumers of more highly engineered product, more configured to order product, more sophisticated product. We wanted to preserve that. Where we have the opportunity in commercial emergency replacement, which is roughly 40% of the market, there's low barriers to compete there. It's low first cost and product availability that will be in that game. There's no real differentiation to an extent on brand. So once again, that you kind of push to the side. So that remains the biggest opportunity for us, and then wringing out the inefficiencies really across the enterprise that we had incurred during the supply chain challenges and COVID still remains an opportunity from a margin perspective, not just in commercial, but also in residential as well. But you know, once again, we're powering through the challenges in commercial. We're gonna get that business back to peak margins here shortly. anything that happened either in the first half or second quarter, which was particularly exceptional, that you would call kind of a more temporary or transient good guy, and that we have, you know, maybe a step forward before or a step back before we take the next two steps forward? Yeah, I think there's a couple things. One is price and mix. Because of the regulatory change, the minimum efficiency also affected the commercial side of the house. So I think we got a lift from mix. We went out with additional price increases. They were targeted in nature, but I think that gave us some lift in the first half. So the first half story was price and mix. Second half is gonna be also volume. So once again, we have, you know, we'll get a lift there from, you know, just that pent-up demand and that volume that we came into the year with. And as our manufacturing facilities increase their output, specifically the commercial facility, it enables us, you know, once again, to drive more volume across those assets and grow margins. Got it. That's, that's helpful. And then you mentioned the commercial emergency replacement business. I think it's, you know, roughly at zero today, just, you know, given the preservation of the national account base. I recall this being, like, almost 40% of the business at peak, so. It was probably less than 40%. Okay. But it's 40% of the overall market. But, you know, we had, you know, just about 10% market share, if not more, and that went almost to zero. So we're clawing that back now, once again, as product becomes more and more available. We won't be fully in the emergency replacement game until we get our second factory stood up, which will be mid-2024, end of 2025. Got it. First end of 2025. I'm assuming there's a progressive ramp that happens along the way, and not- Right. - sort of just all at once. Yes. How difficult will it be to win back some of those customers? It sounds like the end customer sort of is, is brand agnostic, so maybe those folks aren't, aren't as relevant. But from a contractor perspective or, you know, sort of that reliability of, "Hey, I need a product, can I call Lennox? Will they have it?" Is that something that, you know, all, all sins are forgiven fairly quickly, or does it take some time in the marketplace? You know, I think with the national account customers, that's where you have the long courtship with the customer, and you, and you need to retain that and maintain that over time. With the emergency replacement, it's not so much. We're fortunate that we have Michael here, who's been close to that business for a while, so, be able to let him answer more. Sure. So first, winning market share in any space is not easy. So I, I don't want to discount how easy it is to win the market share, but this is highly fragmented share spread across thousands of contractors, many contractors that want to do business directly with the OEM. So it's an advantage that we have, as Joe talked about. It's about product availability, which we're gonna have when we get the second factory up and running, and it's about pricing. Currently, we're pricing the product in line with market. We expect to continue to do that, and they're still attractive margins. So it's a space that we want to continue to go after. The way you win it is you forward deploy inventory, you have awareness of the product as we start to invest in our sales force and get awareness that the inventory's back out there again. And then when we get calls, you have to quote within 2 hours, and you have to ship within 24 hours. It's something we think we can do, and we can get market share into the mid-teens, if not upper teens. So it's really the focus for the next couple of years, is that opportunity to grow that share. How would you characterize the mix around that? Sounds like it's a little bit less beneficial than what you would have on the national account side, but is it so wide apart that we would see margins degrade on that? No, I'd say actually the margins right now are similar to the national accounts as a percentage, to margin percentage. The average sales prices are obviously less, but less when you sell more units than you do a larger national account, rooftop. But we think, you know, volume growth should be significant, but margins are really attractive still in the business. Yeah, the product that we go to market with on the emergency replacement, we design it for lowest first cost. So, you know, once again, we go in with the intent that that's going to be the lowest cost unit in the industry. And, you know, we, you know, procurement team do an excellent job of helping us reengineer products once again to minimize cost adders, et cetera. And, you know, once again, we're fortunate we've got a great engineering team that helps us support, you know, that initiative. Excellent. I do want to bring in Prakash to talk a little bit about all the changes that are coming in in 2024 and 2025, and I'm- What Josh is saying, he wants to get to the good stuff. We'll bring it all together. Yeah. But I do think that, you know, it's sort of a unique opportunity to have, like, the CTO involved in what is a super technical point in time. Right ... in the market. So I think into next year, the big refrigerant production cap step down and then obviously R-454B transition in 25. You know, maybe just to start off here, Prakash, how do you see that reduction in R-410A next year as sort of a market impact? Or, and how are you thinking about that relative to the business? It is a significant reduction, as you know. So what you have to do, work closely with the refrigerant OEMs, manufacturers of refrigerant, like Chemours and Arkema, have a strategic relation so that you get your volume quota that you need. We feel very good about where we are in that journey. We have ample supply of R-410A that we need as we transition out of R-410A, go to R-454B, we have contracts in place. So we're not concerned about refrigerant to sell the product, so we feel good about that. From a product design, redesign, testing perspective, we're exactly where we need to be. I think we'll have all the testing, validation done, certifications done, all the mitigation, leak detections, sensors and controls, all of it in place, and we'll start launching the products in 2024. By January 1, we'll be in full compliance by January 1, 2025. So a lot of work, a mountain of work. I, I don't want to underwhelm it, but we've got a great team, like Joe said. We've got all the facilities we need to... It's heavy testing burden. We need to get through all the various models, all the testing done and certified. Right. So. Now, how much, and maybe, Joe, this is a question for you as well. Given that inflation on refrigerant next year will be pretty extreme, is that something that will be detectable in your price to the street? I mean, 30% cut, I mean, I know the refrigerant is not the dominant- Right. -component here, but it's got to be worth something. Well, it's one of those commoditized inputs that influences price. Absolutely. So, you know, it will be a variable. I don't know if it'll drive, you know, the pricing decision, because the new units will be higher priced relative to where they are today, simply because of all the reengineering effort and some higher costs that need to be employed. But we're gonna have a better unit on the other side. And once again, we're fortunate that we've got, you know, great engineers, you know, on the Lennox team, both here and at our technology center in India, that we leverage, and give us best-in-class, industry-leading claims on product, and we expect to sustain that. So once again, the pricing will fall in line with wherever the commodities fall, because we're all affected by that. I don't think we'll be an outlier when it comes to pricing, but it will be a situation where it will be higher priced. But it'll be noticeable, right? Yeah. This is points of price, not- Right. Okay. Yeah. Probably high, single digits is, you know, where I believe it will be at the end of the day. For the entire unit goes up high single digits? Right. Wow! Yeah. Pretty high. Yeah. I guess this transition looks different than maybe some of the other ones we had. I think the industry was, you know, particularly disappointed by the whole dry charge phenomenon. Right. When, you know, we went through the last one of these with R-22. It, it seems like instead of a pull forward or, you know, pre-buy, that we're actually moving in the other direction, that folks don't want to install something that maybe has, you know, service issues down the road when refrigerant is more scarce. How are you guys thinking about managing that transition? I mean, the homeowner doesn't know, but a contractor is out there like: "Hey, 7, 8 years from now, this could be really expensive to maintain." How are they threading that needle? How are you helping them thread that needle? Well, I think part of it is a consistency of educating the contractors. I think that's the first point, is we need to make sure that they're spooled up on the new technology, what it takes to install it, and then more importantly, the implications of some of the you know, regulatory changes that are coming in place with R-410A being rationed, et cetera, and then the escalating costs that will occur there. So it's gonna be a bit of a dilemma for you know, a contractor who has R-410A product available that's on the brink of this new transition, where they know the repairs on the other side from the homeowner is gonna be significantly higher. It's more expensive than the R-454B units that will be in the field. So it'll be a situation where, you know, once again, it starts with educating the contractor, and then more broadly, I think, you know, the consumer base. But most folks don't really wake up on a Sunday morning, and go shopping for HVAC equipment, per se. So it's going to be a catastrophic failure that will lead to the replacement on the residential side. So it'll be a situation where that'll be something that we're gonna prepare the dealers to effectively manage. Would you guys have anything different? I would say the initial cost of the new unit is gonna be higher, the low GWP unit in 2025, so there may be enough people buying and enough people deferring. So on the balance, it's a wash, I think. I think past transitions, for whatever reason, maybe just the industry likes this, these round numbers, it's gonna fall in this 10%-15% range. Is that probably the right ZIP code for R-454B? That seems like what we've socialized so far. Yeah. Yeah. What I'd add is that it's gonna be over a two-year journey. So the first year, next year, is gonna be about the refrigerant cost increase. We're gonna focus on that next year. Joe talked a little bit about the magnitude we think that that could do next year, including just normal inflationary effects. And then in 2025, there'll be another cost and price increase, as we have to add sensors. You add depreciation through the factories. We've made significant capital investments as well as there's some efficiency loss that we need to come up with for the the new refrigerant. All of that will be an additional price increase in 2025. So over a two-year period, you know, 15-ish% sounds about right. Yeah. Then I know when we went through the last transition, the concept of matched systems was very important and maybe even led to some of the loopholes that people were trying to exploit. I don't know that the installed base of 410A is big enough to where we went away from matched systems, but is that a phenomenon that is gonna show up or, you know, kind of move the needle at the margin? Yeah, this is a real technical question. I'll hand off to my friend. I'm an HVAC expert. That's what I do. So yeah, I go down the rabbit hole pretty fast. So is your question, can they mix and match? Well, it sounds like you can't mix and match. Right. But are there enough purchases today that are just the condenser to where you actually see in your business: "Oh, we were selling, you know, 20% of our business was just condensers, replacement only. The indoor unit wasn't being replaced. Now we have to do everything again" Or are most of your system sales today already matched? I think most of the systems are already matched today. It's just the coil. Maybe they might have to replace the furnace. ... but typically AC, furnace unit, so coils are replaced when we went from 22 to 410A or, et cetera. So I think same thing will continue when we go to 454, leave the furnace section alone or air handler, you have to replace the whole thing with the heat pump, so yeah. We'll see that continuing with the new refrigerant match systems. Got it. And then anything on the warranty front that should be unusual, or it just seems like these are more technically complicated units? I think they're just more technically complicated, and once again, it requires us to redesign all of our products, as has added, you know, most folks in the industry, if not everyone. So it's a situation where we're all making that same level of investment, so. Got it. And then, I guess the other phenomenon happening here in the background amid all these industry changes is the government incentives around IRA. Yeah. So a lot of initial work done on that last year, maybe too premature relative to where the states are, but we got a little bit more information sitting here a year later. How do you guys think about some of the incentives there? Because obviously, a lot of, you know, a lot of slicing and dicing need to be happening on who lives where and what's their income- Right. and how many heat pumps do they want? But how do you guys think about it at, at a high level in terms of, you know, the amount of the market that should just convert to heat pump with, with the incentives you have? Yes, it's opportunity for us, Michael. Yep. So we're excited about the regulatory improvements for, or for the incentives for the IRA. It'll roll out over the next couple of years. It's still to be determined with some of the local income requirements it has to get through. But there's also existing tax incentives out there. Both these two help the homeowner buy down the replacement system cost, which helps from the repair versus replace dynamic. So it's something we think is favorable in our industry. It helps us generally because what the consumer will do is they'll mix up, and they'll generally buy a higher efficient product to get the, to maximize rebates. So we see that heat pump systems generally have a little bit better margins than a traditional air conditioning system with furnace, so it's a mix of benefit for us. We think the incentives are big enough to have a shift from a traditional system in areas where heat pumps are already prevalent, into a heat pump. In the colder areas, we're gonna still see the technology advance. It'll take several years before that technology really improves, and you get full adoption in some of the colder spaces, but the technology is improving. So it's gonna be something that will happen over the next 3-5 years, but Prakash also is, you know, heavy into the heat pump technology and the cold climate side of it. We'll launch our highest-end cold climate heat pumps, along with the low GWP refrigerant, and that'll propagate into the meat of the product line shortly thereafter. So we'll have cold climate down to minus 10, minus 20 degrees Fahrenheit, almost near flat capacity, heating capacity. So yeah, that's pretty exciting. So that'll address universally all the geographies where we offer today. Right. That should drive the conversion of heat pump a lot more than anything else. Then, the duration of the incentives is literally a decade, which is- Yeah 2x, if not more, what typically the incentives are for. So I think that'll help sustain some of the, you know, the offset to a homeowner of, you know, the increased costs of the more involved technologies. So I think at a minimum, putting aside things like rebate, where maybe people get a free heat pump, I think at a minimum, you get $2,000- Right. Um- Per unit, and you kind of refresh that annually, so multiple units, you can, you can navigate that. Is $2,000 enough to basically jump from cooling to heat pump across, you know, most, most lines? It, it seems like it would be, pretty close. So... You know, I think it's enticing enough to get people to listen, and then once again, if you mix up even more, there's more benefits for, you know, for the taxpayer. So, you know, I think it's $2,000 to begin with, and then it's $2,000 plus, depending on what your system ends up being designed and, and looks like. I mean, is there a situation where, you know, three, four, five years from now, that a straight cooling split system is sort of a dinosaur relative to a market that's all heat pump? I don't know about 3-5 years. Yeah. I think it's going to be a longer adoption- Yeah -than that, but there is-- we're seeing shifts in it, and we think that overall with incentives, there's local, utility incentives, there's tax incentives, there's IRA. All of these help buy down the system costs, and generally, they're more focused on the heat pump than they are on traditional systems, so that should help the transition over the next, you know, 5+ years. Part of our efforts, you know, I talked about, you know, educating and training dealers. Part of that education is making sure that they optimize these financial incentives for the homeowner as well. When you think about Lennox's legacy as a furnace company- Yeah ... so picture Dave Lennox sitting in Marshalltown, Iowa, in the factory. Although I do, I do think we also created the first heat pump. That's right. Oh, okay. Back in 1965. Fair enough. Right. Now, we've updated our design since. I would hope so. But- I hear there's been some refrigerant changes. There has been. On the furnace side, though, I mean, clearly, you know, a good share position there where heat pump would naturally erode some of that. How do you think about the economics of that or what the cannibalization rate looks like? Because I think to Prakash's point, if you live in Minnesota, you're probably not ditching the furnace right away. Right. You might not even be replacing all these things at the same time. So there's probably a long tail. Like- Yeah ... is that neutral, positive? Like, what, what happens as, you know, furnace shrinks and heat pump grows? You know, I think longer term, and I'm gonna invite Michael to dive deeper in the economics, but I'll paint the corners initially. It's opportunistic. You know, once again, from a margin perspective, it's more attractive. From a margin dollar perspective, you know, it's a little bit less, but it's also a situation where heat pumps have a shorter life. So once again, we you know, over time, we'll be selling more heat pumps. So once again, it's encouraging from those perspectives, but from more of an economic perspective, I'll let Michael answer. I mentioned earlier, the system margins on a heat pump basically are slightly more than that of a traditional system with the gas, mostly because you move up in efficiency, because everyone's trying to maximize the rebates on it. So we think it's good business, and we'll continue to expand margins, but overall, the cannibalization doesn't hurt us too much. Yeah. ...And then, I guess on the useful life, because these things are now running, you know, 10, 11 months out of the year- Right. instead of just six. Yep. Is that sort of proportional to the decline in useful life? I think, you know, you guys have talked about sort of, okay, it was 14 years and then maybe about 16. Like, are we going to 10? You know, I think that for a heat pump, it probably is closer to 10 than the 15 as a result of, you know, you know, what you just mentioned. You're gonna be running it more, you know, more often than, you know, your typical air conditioner because of the heating capabilities. Yeah, the life is proportional to the runtime. So if heat pump runs 50% longer, corresponding production, corresponding reduction in life. The temperature stress is non-linear, so rather than running on a 90-degree day, if you're on a 100-degree day, then it goes, life goes down significantly more. I'm assuming same thing on the low end, right? A negative 10 is, you know, pretty brutal on the system. Yes, it is. Got it. Just zooming out on the residential market as a whole, you know, I think there are a lot of us, certainly myself included, who tried to run, you know, this useful life math, you know, call it 4 or 5 years ago- Yeah -when the industry hadn't yet kind of kicked that extra gear for COVID. We're replacing at sort of astoundingly high rates, and I, I think maybe, you know, with kind of a postmortem on COVID, there's a few things that we can try to explain away, but, like, what, what do you guys think about this? 'Cause replacement demand went pretty high pretty quickly, and I don't think it's 'cause everyone was just stuck home running their, their systems more. I think there had to been more to it. Yeah, I think, you know, when we looked at the runtime data, you know, that we have access to, you know, we know the systems are running 15%-20% more. So, you know, as, as, Prakash mentioned, you know, it has a finite life there. And then secondly, I think there's just much more attention focused to indoor air quality. So I think that lends itself maybe to situations where they want, more air purification, dehumidification, all those things factor into it as well. When they're making that replacement decision, it won't be a catalyst for that decision, but when they're making that decision, there are now other, you know, bells and whistles that they want in their systems that maybe they didn't want before. That lends itself to more of a mixed benefit longer term. Got it. And then when we think about where the margins can go in residential, Lennox is in a unique position of being able to say, "Okay, we're the OEM, but we're also the distributor. Right. I think we can all see what at least some distributor margins look like. Maybe those, you know, maybe those are extended, maybe they're not. Is there an environment or situation where you could get to OEM plus distributor? I guess if not, or if there's some leakage in there, where does that leakage come from? Yeah, I think that's the opportunity in front of us. Michael, do you want to- Yeah. So aspirationally, what we do is we look at Carrier and WESCO. The commodity margins could get to mid-20s. It's a long journey that we're focused on. Most of the improvement we think we have is on the distribution front, and really it's gonna start with us kind of aligning our sales incentives, both for the selling group and the distribution group. So we're starting that journey now. We're gonna have to make some investments into the distribution processes and the distribution systems, which Prakash definitely leads. And then, because you really have to have strong fulfillment rates to be a really great distributor, so we're really focused on the system side of it. And then it's about picking the right products to have for a distribution, so then you get the revenue per square footage up. We aspirationally want to get from about 15%-20% of our residential sales of service and parts, or parts and supplies, to about 30%. That's the longer-term journey that will get us to the combined margins, you know, in the mid-20s. And Josh, what I'll say is, you know, when we had 100 stores and we were adding 20 a year, it was about the next 20 stores. You know, when we have 250+, it's about what can we do, you know, with that asset that we're not doing today? So there are other things that HVAC contractors have an appetite to sell, and it's different by region. We want to make sure that we make those things available to them. As Michael said, our goal is to get an attachment rate with parts and supplies that's more in line with the broader industry, which is closer to 35%-40%, and we're probably half of that today. Got it. So there's -- that's not something that you're sort of giving back to the market in terms of price. No. This is an efficiency thing. Yeah, this is an efficiency, productivity, and how do we get more revenue across that distribution footprint? That's what we're looking for. Got it. And over what time frame is that sort of- You know, that's a longer-term commitment. You know, we're looking, you know, once again, that's 3-5 years out. We want to be at this 35%, you know, mix of parts and supplies. And we're achievable. You know, we're on the trajectory to do that. There's some fine-tuning that we need to do as far as, you know, the inventory mix and, you know, what needs to be carried in certain stores, et cetera. You know, some stores have light commercial, so we'll need more light commercial. So, you know, it just depends, but we're going through that exercise now and fleshing all those opportunities out. Excellent. I know we have a little bit of time left. Anything in the room? Excellent. Gentlemen, really appreciate the time. Always a pleasure, and always very helpful conversation. Thank you, Josh. Thank you. Appreciate it.