Prepared remarks
Good day, everyone, and thank you all for joining us to discuss Equity Lifestyle Properties' second quarter 2026 results. Our featured speakers today are Marguerite Nader, our Vice Chairman and CEO; Patrick Waite, our President and CEO; and Paul Seavey, our Executive Vice President and CFO. In advance of today's call, management released earnings. Today's call will consist of opening remarks and a question-and-answer session with management relating to the company's earnings release. For those who would like to participate in the question-and-answer session, management asks that you limit yourself to one question so everyone who would like to participate has ample opportunity. As a reminder, this call is being recorded. Certain matters discussed during this conference call may contain forward-looking statements within the meaning of federal securities laws. Our forward-looking statements are subject to certain economic risks and uncertainties. The company assumes no obligation to update or supplement any statements that become untrue because of subsequent events. In addition, during today's call, we will discuss non-GAAP financial measures as defined by SEC Regulation G. Reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are included in our earnings release, our supplemental information, and our historical SEC filings. At this time, I would like to turn the call over to Marguerite Nader, our Vice Chairman and CEO.
Good morning, and thank you for joining us today. I am pleased to discuss our operating results. For the quarter, our NOI increased 6.5% compared to last year. We focus on translating NOI growth to normalized FFO growth driven by continued strength in our annual revenue streams and managed expenses throughout our portfolio. Our normalized FFO per share growth for the quarter is 7.7%. The strength of our portfolio allows us to raise our full-year guidance for normalized FFO per share. Our manufactured housing (MH) and RV portfolio benefits from powerful long-term demographic tailwinds including the aging of the population and the fact that approximately 70% of our MHC communities are senior lifestyle oriented. These demand drivers help support the stability of our business and position us well for continued outperformance even in an environment of broader market uncertainty. Our MH core portfolio represents approximately 60% of our total revenue with occupancy of 94%. We have increased our MH occupancy for two consecutive quarters and have raised guidance for the rest of the year for our largest revenue line item. Our properties are in demand and the teams are executing on our strategy to increase occupancy. The manufactured housing community model benefits from stability driven by long-term residency and high occupancy levels. Once communities achieve strong occupancy, they tend to remain highly occupied over time. Our portfolio is further differentiated by our resident base, with 97% of MH residents owning their home and choosing our communities as their retirement destination. Beyond housing, our communities foster a strong sense of connection and purpose through resident-led clubs and activities. The activities at our properties promote wellness, creativity, lifelong learning, and social engagement, creating neighborhoods where residents can build relationships and remain active and involved. Annual RV and marina revenue grew 4.8% year-to-date, driven by strong retention across our RV sites, park models, resort cottages, and other RV accommodations. We saw decreased attrition from our customer base compared to last year and a strong level of engagement from new customers. Our annual RV customer base is split between winter and summer seasons. Approximately 70% of our annual revenue is generated from Sunbelt properties, serving active adult customers. Like our MH residents, they value community, lifestyle, and quality amenities. The remaining 30% of revenue is generated from seasonal properties that primarily serve families who return year after year for recreation, traditions, and the unique community experience our properties offer. During the quarter, the Thousand Trails portfolio delivered strong performance with membership growth of 800 members and subscription revenue increasing by 11%. The strength of our membership platform continues to resonate with customers as more guests recognize the value and flexibility it provides. I want to thank our team members for their commitment to our customers and communities. I will now turn the call over to Patrick to provide further details on our financial performance.
Thanks, Marguerite. Stable annual revenue streams from MH residents, RV and marine annual guests, and Thousand Trails members have always been the focus of our business, accounting for more than 90% of our core revenue. Over the last five years, our core MH revenue growth has averaged 5.8%, while our core RV revenue growth has averaged 5.7%, led by long-term annual RV revenue which makes up more than 70% of total core RV revenue. I am pleased with the build back of annual customers in our northern markets over the last year. Occupancy across our MH portfolio remained strong at 94%, supported by demand from our 55-plus customer base to purchase and rent homes in our communities. To date, growth of our MH occupancy has come from both sales and rentals. We also typically see approximately 20% of our home sales are to existing renters who choose to become a long-term homeowner, and current homeowners who want to upgrade or downsize from their existing home. Our Florida markets continue to support long-term occupancy growth, with our major submarkets of West Palm Beach, Fort Lauderdale, Tampa-St. Pete, and Ocala-Daytona all meeting demand for the value that residents find at our active lifestyle 55-plus communities, particularly given the cost of alternative housing in those markets. We also continue to see steady demand across our highly occupied California and Arizona markets. While the Northern U.S. submarkets in the Midwest, Northeast, and Mid-Atlantic are in the middle of the summer home-selling season, we saw demand contributing to 40% of new home sales in the quarter. Property expansions are key elements of our MH occupancy growth strategy as we recognize substantial demand for affordable 55-plus communities. In Florida, we will add occupancy through sales and rentals across four recent development projects with close to 500 sites. And another age-qualified expansion project in the Phoenix market added more than 20 units of occupancy, growing the occupancy of the property by 4% year over year. The much-anticipated 21st Century R.O.A.D. to Housing Act became law earlier this month. Over the last 10 years, through the work of the Manufactured Housing Institute and members of the industry, manufactured housing has been increasingly recognized at the federal and state levels as a source to address the need for more affordable housing in the U.S., and manufactured housing is specifically addressed in the R.O.A.D.S. legislation. A few key points to mention: First, manufactured housing is exempt from the institutional investor provision in the act, which preserves investment in the asset class. Second, HUD code homes will not be required to have a permanent chassis, which allows manufacturers greater flexibility in home design. This will expand the market for manufactured housing by offering homes that include designs similar to traditional site-built homes, as well as two-story configurations. Third, zoning and land use best practices encourage state and local governments to accommodate HUD code manufactured homes in more locations and developments. The practical implications of the bill will take some time to materialize, but they include more diversity in the homes we can place in our communities and further support to secure entitlements as we pursue expansion projects. We completed the launch of our new Thousand Trails memberships a little over a year ago. Since offering these memberships, we have seen strong demand, with more than 9,000 memberships sold, including almost 7,000 over the last 12 months. Our 12th annual 100 Days of Camping campaign is in full swing across our RV portfolio. This social media campaign celebrates the roughly 100 days between Memorial Day and Labor Day and has 33 million views across social media channels so far this year. Campers across the country are using their hashtag and sharing photos posing with their campaign rally towel at 100daysofcamping.com. Now I will turn it over to Paul.
Thanks, Patrick, and good morning, everyone. I will highlight some takeaways from our second quarter and June year-to-date results, review our guidance assumptions for the third quarter and full year 2026, and close with a discussion of our balance sheet. Second quarter normalized FFO was $0.74 per share. Strong core portfolio performance generated 6.5% NOI growth in the quarter compared to the same quarter last year, 120 basis points higher than guidance. Core community-based rental income increased 5.8% for the second quarter and 5.7% for the June year-to-date period, each compared to the same period in 2025. In the second quarter, we generated rate growth of 5.8% as a result of noticed rent increases to renewing residents and market rent paid by new residents after resident turnover. For the first six months of 2026, occupied sites increased by 67. During that same period, we added 140 expansion sites, resulting in occupancy of 93.7% as of the end of June. Our RV and Marina platform offers products with differing features that allow our customers to enjoy our properties. These include annual, seasonal, and transient retail stays, as well as our Thousand Trails membership. In aggregate, the growth rates from our core portfolio RV and marina base rent combined with our annual membership subscriptions were 3.1% and 1.6% for the second quarter and year-to-date periods, respectively. Core RV and Marina annual base rental income, which represents over 70% of total RV and marina-based rental income, increased 5.4% and 4.8% in the second quarter and year-to-date periods, respectively, compared to the prior year. Seasonal and transient rent was 170 basis points lower than guidance as a result of lower-than-expected transient rent in the quarter, mainly in June. We continue to realize offsetting expense savings. The net contribution from our total membership business consists of annual subscription and upgrade revenues offset by sales and marketing expenses. The membership business contributed $17.1 million and $34.4 million net for the second quarter and June year-to-date periods, respectively, compared to the same periods last year. The year-to-date growth of 9.6% is mainly attributed to rate growth in our subscription revenue. Year-to-date, approximately 2.6 thousand upgrade subscriptions were originated by new and existing members. Core utility and other income increased 6% for the June year-to-date period compared to the prior year. Our utility income recovery percentage was 50.4% year-to-date in 2026, about 220 basis points higher than the same period in 2025. June year-to-date core operating expenses increased 2.3% compared to the same period in 2025. Expense growth was 120 basis points lower than guidance in the second quarter, mainly resulting from savings in utility and real estate tax expenses following resolution of appeals at properties in Texas. Second quarter core property operating revenues increased 4.9% while core property operating expenses increased 2.9%, resulting in growth in core NOI before property management of 6.5%. For the year-to-date period, core NOI before property management increased 5.7%. Income from property operations generated by our non-core portfolio was $2.9 million in the quarter and $5.9 million year-to-date. The press release and supplemental package provide an overview of 2026 third quarter and full-year earnings guidance. The following remarks are intended to provide context for our current estimate of future results. All growth rate ranges and revenue and expense projections are qualified by the risk factors included in our press release and supplemental package. Our guidance for 2026 full-year normalized FFO is $3.18 per share at the midpoint of our guidance range of $3.01 to $3.23. We project core portfolio property operating income growth of 6% at the midpoint of our range of 5.5% to 6.5%. We project the non-core properties will generate between $8.7 and $12.7 million of NOI during 2026. Our property management and G&A expense guidance range is $119.7 million to $125.7 million. In the core portfolio, we project the following full-year growth rate ranges: 3.9% to 4.9% for core revenues, 1.6% to 2.6% for core expenses, and 5.5% to 6.5% for core NOI. Full-year guidance assumes core MH rent growth in the range of 5.2% to 6.2%. Full-year guidance for combined RV and Marina rent growth is 1.1% to 2.1%. Annual RV and marina rent represents approximately 75% of the full-year RV and marina rent, and we expect 4.8% growth in rental income from annuals at the midpoint of our guidance range. Our assumptions for full-year RV and marina rent growth reflect current seasonal and transient reservation pacing for the third quarter. Our fourth quarter guidance assumes no growth in transient rent compared to the prior year. Consistent with our historical practice, we make no assumption for the impact of a material storm event that may occur. Our third quarter guidance assumes normalized FFO per share in the range of $0.76 to $0.82. Core property operating income growth is projected to be in the range of 0.3% to 6.9% for the third quarter. Third quarter growth in MH rent is 5.6% at the midpoint of our guidance range. We project third quarter annual RV and Marina rent growth to be approximately 4.9% at the midpoint of our guidance range. Third quarter growth in core property operating expenses is projected to be 1% at the midpoint of our guidance range. I will now provide some comments on our balance sheet and the financing market. Our balance sheet is insulated from refinance and rate risk and is well positioned to execute on capital allocation opportunities. Our floating-rate exposure is limited to balances on our line of credit. Our debt-to-EBITDAre is 4.4x, and interest coverage is 5.6x. We have access to approximately $1.2 billion of capital from our combined line of credit and ATM programs. We continue to place high importance on balance sheet flexibility and believe we have multiple sources of capital available to us. Current secured debt terms vary depending on many factors, including lender, borrower sponsor, and asset type and quality. Current 10-year loans are quoted between 5.25% and 5.75%, 55% to 70% loan-to-value, and 1.45x to 1.65x debt service coverage. We continue to see solid interest from life companies and GSEs to lend for 10-year terms. High-quality age-qualified manufactured housing assets continue to command the best financing terms. Now we would like to open it up for questions.
Questions and answers
Thank you. At this time, we will conduct a question-and-answer session. As a reminder to ask a question, you will need to press 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press 1-1 again. Our first question comes from the line of Michael Goldsmith of UBS. Your line is now open.
Good afternoon. Thanks a lot for taking my question. Two questions on transient RV and seasonal. I guess you have updated the guidance there, and so we have good visibility into the third quarter and what is implied for the fourth quarter. Maybe you can walk through your expectations for the rest of the year. Clearly, seasonal trends have been under a little pressure. Is that the expectation for the third quarter? And given you are lapping some of the disruption from Canada, maybe in the fourth quarter on the seasonal side, could you walk through the overall assumptions that you baked in for the back half?
Sure. Happy to do that, Michael. We have raised our full-year normalized FFO per share guidance. That reflects our year-to-date outperformance and the changes to guidance in various line items for the remainder of 2026. The main contributor of the change is core NOI improvement of 30 basis points that is mainly from expenses. We also included changes to our MH rent and our membership subscriptions in addition to adjustments to expenses with respect to RV and marina-based rental income growth. We adjusted transient guidance down and at the same time raised our annual growth by 10 basis points. The change from our prior guidance reflects our transient expectations for the third quarter, which are based on current reservation pace, and we reduced fourth quarter year-over-year growth in transient to flat year-over-year.
One moment for our next question. Our next question comes from the line of Steve Sakwa with Evercore ISI. Your line is now open.
Marguerite, could you talk about the process for building occupancy? If I look at the core portfolio, you are sitting around 93.8%. In past calls, you talked about some storm issues that knocked some units offline. Could you walk through your confidence level of building occupancy back toward 95% and what the timeframe might be to get the portfolio back to 95%?
Sure. Thanks, Steve. As I noted in my opening remarks, we did grow occupancy for the last two quarters. I feel good about demand and occupancy growth in the back half of the year. Over 50% of our properties are 98% occupied and have been for a number of years. That is sustainable due to the investment that the customer is making when they pick a community. They make a long-term commitment, generally a long-term commitment for us and for the home. Our customers are often paying cash for their home, which gives them a strong incentive to preserve resale value. That contributes to our positive outlook on growing occupancy.
Yes, Steve. Over the last two quarters, we are up about 70 units. Over the last four quarters, combined new and used home sales have both been increasing. We increased rentals year-over-year by about 140, so we are meeting demand on both home sales and rentals. On the path back to 95% occupancy, we are taking it a quarter at a time and I would expect that over the next few quarters we will put up occupancy growth that is favorable to the last few quarters. We did have a transition where some properties were impacted by storms, which required recovery and putting inventory back into those communities and across the portfolio.
We feel good about demand and feel good about occupancy growth in the back half of the year. Again, I would remind you that over 50% of our properties are 98% occupied and that has been sustainable for a number of years. Our customers' long-term commitment and their home ownership supports stability and resale values, which contributes to our positive outlook on growing occupancy.
One moment for our next question. Our next question comes from the line of James Feldman of Wells Fargo. Your line is now open.
Great. Thanks for taking the question. I know in the third quarter you start to send out renewal rates for the following year. Can you talk through for your annual business lines what those are starting to look like or what you are asking? Have you had any responses yet?
This is Patrick. As we move through the third quarter into the fourth and begin our annual budgeting process, we will start finalizing MH rent rates for the upcoming year. The majority of those notices occur in the first quarter and we typically provide 60 to 90 days' notice. We are going through that process now and expect to be in a position to provide more detail on the next call.
And James, one thing to keep in mind as we think about those increases: a couple of metrics we look to are indications of COLA, which typically come out a bit later in the year, as well as CPI that is released in August and September.
Thank you. One moment for our next question. Our next question comes from the line of Jeffrey Spector of Bank of America Securities. Your line is now open.
Great. Thank you. Listening to the opening comments and the discussion around the 55-plus customer, given your expertise and strong brand serving that customer, how are you thinking about 55-plus built-to-rent communities? It seems to be an emerging niche area within residential.
Sure. Within our portfolio, we have rental properties and rental communities. As we look to opportunities to grow, we will consider those types of assets, but our primary focus remains on our MH portfolio. We will continue to look at opportunities to grow inside the MH business.
One moment for our next question. Our next question comes from the line of Eric Wolfe of Citi. Your line is now open.
Hey, thanks. I want to go back to your guidance increase. You beat your second quarter by $0.02, and if I look at the components of your guidance, you raised your core income and also raised your non-core income. It looks like there is some increase in income from other investments as well. What is the offset to all that? I would have thought maybe a little larger guidance increase. Also, could you talk about what is in the income from other investments and whether that is one-time or more recurring?
Sure. As you mentioned, we were $0.02 ahead of our guidance. The core portfolio did outperform, and that is the main contributor—largely the result of lower expenses in the second quarter. There are a number of items below the line, including income from other investments and a pickup related to a joint venture we mentioned. When you run those through to the bottom line, they are effectively offset by shifts in our expectations for JV income and certain other line items. So on a net basis, the pickup in non-core is offset. Regarding income from other investments, we have some subsidiary businesses in that line and we also report certain income related to corporate and other matters that may come from time to time. During the quarter, we did recognize income from a settlement of a dispute and some income from prior business interruption flow-through. At the end of the day, the core portfolio is what drove the outperformance.
One moment for our next question. Our next question comes from the line of Brad Heffern of RBC. Your line is now open.
Hey, thanks. On seasonal and transient, you saw a weak June and have adjusted guidance for a slower booking pace. Can you talk through what you think is driving that? Sometimes it is weather, and I would think Canadian customer comps are getting easier. What are the dynamics?
It continues to reflect volatility. As we work through the summer season, we have experienced some challenges with weather, which has had a persistent impact on transient results. Looking at the seasonal business, we would not expect to get better visibility for several weeks as we move late into the third quarter and into the fourth quarter. As people consider booking reservations for winter stays in the Sunbelt, activity typically increases later in the year.
I have been in Florida over the last few weeks and have been on-site with our property teams. They are reaching out to seasonal guests who chose not to book last year or who were with us last year and chose not to book early. There are indications that many are considering a return, and we are booking some reservations now, but we expect that activity to pick up over the next several weeks. As we work through that, we will have better visibility and can share more insight.
One moment for our next question. Our next question comes from the line of John Kim of BMO Capital Markets. Your line is now open.
I wanted to ask about the expansion sites in MH and whether that is having a direct impact on MH occupancy. Are these harder to lease up given they require a new, more expensive home, or are they easier to lease up because they are in more established communities? Also, how do you price expansion sites versus a comparable existing site within the community?
We completed an expansion in Florida of 140 MH sites on an age-qualified property with a history of expansion. We acquired the property in 2016, expanded by 40 sites in 2019, and the adjacent parcel we developed and just brought online. Site rents in expansion sections can reflect a premium if sites are on water, have a good view, or a favorable configuration, compared to a standard site within the original property. Expansion sites can typically carry a higher rent, but it depends on the community's configuration. The homes that we place in expansion sections reflect the range of price points in the broader community; there may be higher-end homes as well as standard site plans.
One moment for our next question. Our next question comes from the line of Haendel St. Juste of Mizuho Securities. Your line is now open.
Hey, thanks for taking the question. I was hoping you could share more color on the cadence of RV bookings throughout the second quarter and early third quarter. Marguerite, I think you mentioned Memorial Day was a bit light but within your range. Could you give more color on Juneteenth and July 4 holiday weekends versus prior year and versus expectations? Did you see any benefit from the World Cup?
With respect to holiday weekends, they were slightly down versus last year. In June we had some significant weather events that affected results. As we headed into the July 4 and early July season, reservation pacing was influenced by weather and by smoke from Canadian wildfires over the weekend in some locations. Regarding the World Cup, we did not see a meaningful contribution or pickup related to the World Cup based on the locations of the events and our properties.
One moment for our next question. Our next question comes from the line of Adam Kramer of Morgan Stanley. Your line is now open.
Hey, good day. Just wanted to ask about the membership business. You have talked in the past about prioritizing rate over membership count. It looks like the membership count declined now. What is the right level for memberships, and at what point might you anchor back to membership count versus prioritizing rate?
In 2024 we introduced a new dues-based upgrade option allowing members to commit to higher annual dues for a two- to four-year term with total upgrade costs of approximately $2,000 to $4,000. Those members receive enhanced benefits designed to increase usage, such as longer stays, earlier booking windows, and discounts on cabin rentals. That initiative contributed to strong growth in annual dues revenue. On a per-dues-paying-member basis, revenue has increased from about $580 to almost $700 per member, reflecting the success of the upgrade program and members' willingness to pay for additional flexibility. What you are seeing is a deliberate tradeoff emphasizing higher rate rather than volume.
One moment for our next question. Our next question comes from the line of Jason Wayne of Barclays. Your line is now open.
You consolidated seven RV communities into the non-core portfolio during the second quarter. Can you give color on what was acquired in terms of geography, mix between annual and transient, and occupancy there?
It was seven properties totaling about 1.4 thousand sites. Two of the properties are in the West—California and Colorado—and the remaining five properties are in the Southeast United States, proximate or adjacent to submarkets where we already have a presence. Of the seven properties, five of them, representing about 70% of the sites, were developed over the last 10 years, so they are relatively new with attractive specifications in high-demand locations. In terms of the current revenue mix, about 40% represents longer-term streams at this point. That has been increasing with our platform's focus on longer revenue streams, and we are optimistic about continuing to grow the long-term revenue streams in that portfolio.
One moment for our next question. Our next question comes from the line of Wesley Golladay of Robert W. Baird. Your line is now open.
Hey, everyone. I want to go back to the comment about the positive demographic for MH. Would you look to increase your MH expansions and, if so, what is the primary constraint for doing more?
Over the last few years we have looked for opportunities within our existing portfolio to develop adjacent parcels, either on vacant land we own or by purchasing adjacent vacant land. You will see us continue to pursue opportunities to buy land adjacent to our properties and develop those sites, specifically on the MH side. As Patrick pointed out with the Florida example, those MH developments have shown strength and support our strategy.
One moment for our next question. Our next question comes from the line of Peter Abramowitz of Deutsche Bank. Your line is now open.
Thanks for taking the question. About the expenses, you mentioned savings on utilities and real estate taxes. Any other color on other expense items? As we think about expenses in the back half and into 2027, how much of the expense downside relative to expectations is sustainable going into the second half and into 2027?
I will speak broadly to guidance for the full year. We have guided to expense growth generally tracking CPI with some realized and anticipated savings from a few sources. Our main three expense line items—utility, payroll, and repairs and maintenance—represent about two-thirds of our core expenses, and we have assumptions for those roughly in line with CPI for 2026. The savings versus prior guidance are partly due to anticipated occupancy levels in our transient properties, which affect variable expenses. The remaining one-third of expenses include real estate taxes, insurance, membership sales and marketing, and other items. Our full-year growth-rate assumption for those is, in aggregate, flat to prior year. That includes the effect of our previously disclosed insurance renewal and some successful real estate tax appeals we saw in the second quarter. Going forward, CPI is the key driver for the two-thirds portion of expenses, while the remaining one-third is where we see more variability, with insurance being the largest driver of variability in that group over recent years.
One moment for our next question. Our next question comes from the line of David Siegel of Green Street. Your line is now open.
I'm trying to better understand the slow lease-up pace for MH. Is it due to a lack of available home inventory in properties that have demand, a lack of demand in properties with vacant sites, or still primarily related to repairing storm damage or other factors?
I would focus on recovery from the storms that impacted us in 2024 and into 2025. We have good demand, and we are gaining momentum. The timing of getting inventory into the communities is a key factor—we are in the process of doing that. As I mentioned earlier, we are up 70 occupied sites year-to-date and we have a favorable trend with good demand that should allow us to pick up the pace through the back half of the year.
One moment for our next question. Our next question comes from the line of Jesse Lederman of Zelman. Your line is now open.
Hey, thanks for taking the question. I wanted to ask about the income profile of your renters. You have healthy rent growth on the MH side. What is their ability to continue to absorb these 5% to 6% increases? Are you seeing any change in behavior, such as resident turnover, delinquency, or home sales from residents to compensate for these increases, or any other resident health metrics?
Over the last several years we've implemented increases on the MH side of about 5% with the current average rent around $950. To set those increases we prepare a detailed market survey for each property, which includes customer-level indicators of affordability. We compare our rents to alternatives such as multifamily and single-family rental and to other manufactured housing communities in the area. We also consider CPI and new and resale home prices within our communities. Those inputs inform our pricing decisions. Our long-term delinquency levels across the portfolio have been and remain very low.
One moment for our next question. Our next question comes from the line of John Kim of BMO Capital Markets. Your line is now open.
Thanks for taking the follow-up. When I look at your site count, RV transient sites are now up quarter-over-quarter and up 20% over the last two years despite uneven results. I know you use transient RV site stays as a front door to annual and seasonal customers, but are you seeing a slower conversion rate from transient to annual or seasonal, which is why the site count keeps increasing?
One reason the site count increased was the inclusion of our JV properties in that site count; that is the main driver of the difference compared to a couple of years ago.
On conversion, we are seeing good demand on the annual front, reflected in occupancy growth year-over-year in the mid-200s. As Paul addressed, there was a pickup in guidance on the annual side. Transient stays are an important component and an introduction to our properties—historically 15% to 20% of our annuals and seasonal guests previously stayed with us as transient guests. We continue to see annual demand come through and are optimistic about the back half of the year.
Since we have no more questions in the queue, I would like to turn it back over to Marguerite Nader for closing comments.
Thank you for joining us today. We appreciate you taking the time to discuss our business. Take care.
Thank you for your participation in today's conference. This concludes the program. You may now disconnect.