Q3 2019 Earnings Call
Good morning, and welcome to the Enviva partners third quarter 2019 earnings Conference call.
All participants will be in listen only mode should you need assistance. Please signal a conference specialist a pressing the star Keith followed by zero.
After today's presentation, there will be an opportunity to ask questions. Please note. This event is being recorded.
Now, let's turn the conference over to you right 'cause soup Treasurer. Please go ahead.
Thank you.
Good morning, and welcome to Enviva Partners LP third quarter 2019 financial results Conference call.
I appreciate your interest and have you ever partners and thank you for participating today.
On this morning's call, we have John Kessler, Chairman, and CEO , and Shai, even chief financial Officer.
Our agenda will be for John and try to discuss our financial results release yesterday and provide an update our current business outlook. Then we will open up the lines for questions.
Before we get started a few housekeeping items during the course of our remarks and the subsequent queuing recession, we will making some forward looking statements, which are subject to a variety of risk.
Information concerning the risks and uncertainties that could cause our actual results to differ materially from those in our forward looking statements can be found in our earnings release issued yesterday in the IR section of our website as well as in our most recent 10-K and our other filings with the FCC.
We assume no obligation to update any forward looking statements to reflect new or changed events or circumstances.
In addition to presenting our financial results in accordance with gap. We will also be discussing adjusted EBITDA and certain other non-GAAP measures pertaining to completed fiscal periods as well as our forecasts.
Information concerning the reconciliation of these non-GAAP measures to their most directly comparable GAAP measures and other relevant disclosures are included in our press release issued yesterday I would now like to turn it over to John .
Thank you Ray.
Good morning, everyone and thanks for joining us today.
As you can see from our earnings release published yesterday, we had a strong quarter and delivered results exactly as expected.
The third quarter was a step up from the second and.
And we reported our highest ever quarterly adjusted EBITDA on solid distribution coverage.
With visibility into customer deliveries in the fourth quarter and continued ramp up of production at our hamlet facility.
We expect the fourth quarter to be a step up from the third and to close the year out strong.
Given our confidence in the underlying business and our expectations for full year 2019, and beyond our board declared a quarterly distribution of 67 cents per unit for the third quarter of 2019.
Representing the partnership's 17th consecutive distribution increase.
And the continuation of the mid teens distribution CAGR since our IPO.
I will also note that the partnership continues to expect to distribute at least $2.65 per unit for full year 2019.
Which we expect to increase to between $2.87 and $2 a 97 cents per unit for full year 2020.
Well, we are focused on the strong close of the year.
The partnership in our sponsor are also driving towards the additional production and terminaling capacity needed over the next few years to fulfill the significant volume increases from the offtake contracts that we and our sponsor of side.
In the partnership we continue to ramp the Hamel plans and the North Hampton and South Hampton expansion projects are well underway.
I will spend sometime later in the call to provide additional details.
But our sponsors existing long term offtake contracts.
Underwrite a visible dropdown inventory that includes a new terminal plus four contracted production assets.
The new capacity includes not only the expanded production of the sponsors currently operating Greenwood plant.
But also at least three additional building copy plans around our sponsors deepwater Marine terminal under development at the Port of Pascagoula.
I hope you've seen some of the very positive media coverage that has occurred recently highlighting just how excited so many people are in Alabama, and Mississippi to have a world class industrial facility become a long term good neighbor and key contributor to their community.
This is our expectation that each of these assets together with the associated offtake contracts will be made available to the partnership for acquisition.
With the preponderance of our growth coming from these accretive acquisitions from our sponsor complemented by organic growth and expansions within the partnership.
There's a clear path to stabilize and sustainably double the partnership's 2019, adjusted EBITDA in just a few years.
And with our robust off take contract pipeline around the world. We expect that's just the start.
Market demand for wood pellets is expected to grow significantly as the global commitment to phase out coal and combat the impact of climate change continues to strengthen.
As evidenced by the pledge made by countries around the world. The recently concluded UN climate action summit to reduce greenhouse gas emissions to net zero by 2015.
The UN IP Cc, which is the international scientific authority.
Made up of thousands of exports from around the world, who advise global governments on climate change solutions.
And as recently published special report on climate change and land.
Concluded that a sustainable future depends on managing for us to store carbon answer produce an annual yield of sawtimber pulpwood and importantly bio energy.
The BCC holds a longstanding view the biomass plays a fundamental role in the global response to climate change.
And includes bio energy as a requirement in every single one of the recommended pathways to achieve the goal of limiting climate change to 1.5 degrees Celsius.
Recently.
More than 100, domestic and international scientists and University professors each an expert in for science issued a letter to policymakers around the world, stating the imperative that Theyre climate change policy decisions be informed by current consensus peer reviewed science on the carbon impacts of 40 buyer.
Yes, as an energy source.
These signs is go on to remind policymakers that the consensus view.
Is that there really is no debate among experts concerning the fundamental long term carbon benefits of sustainable forest biomass energy.
As the world moves towards more renewables biomass remains the only scalable solution that can complement the intermittency of solar and wind by producing renewable base load and dispatchable electricity and heat as well as drive a reduction in carbon and benefit for us.
I will take sometime at the end of the call to provide a more detailed update on how this positively impacts the long term market drivers and activities taking place at the partnership in our sponsor.
To meet the significant opportunities ahead of us.
But I would like to now and it over to shy to discuss our third quarter financial results.
Thank you John .
For the third quarter 2019, net revenue was 157.4 billion dollar loan representing an increase of 9.2% over the delta relative to anything.
Well it sounds revenue was $155.2 million as compared to product sales revenue of 142.5 billion dollar for the Delta will do have left field.
Political until we sold eight on an 11000 metric tons of wood pellet as compared to seven only 62000 metric Dawn and it does go until 2018.
Gross margin was $26.5 million fulfilled gogo plant in as compared to gross margin of $30.1 billion with the same period in 2018 and decrease of approximately 3.7 million Bill.
Gross margin for the does what they'll do anything included $12.1 billion of insurance recovery net of expenses incurred related to the Chesapeake Insys.
Excluding such amounts gross margin for the fiscal 2019 would have been $8.4 million higher than the for the field quota of 28.
Adjusted gross margin was $41 million for the Delgado plenty 19, as compared to 35.6 million those will to build globeville twentyth in.
Adjusted gross margin per metric ton was $50 and 56, then for the deal closes plenty 19, as compared to $46 and 73 phone for the field Globules Glenn you team.
The increase in adjusted gross margin per metric ton was principally due to greater fixed cost absorption, resulting in low average Costco metric dawn due to the partnership's oil production volume and positive to them if they see waiver.
Net income for the sales globules Bernanke gain was 8.9 million dollar.
Well to the net income of building fund $4 million for the field global to any team.
Adjusted net income, which exclude the full financial impact of the Chesapeake into them and their weekends event and includes the impact of them. If they feel way, though was $17.4 billion, where the bills globules running on deem as compared to adjusted net income of $7.9 billion, where the delco until 2018.
It is available until 2019 to follow this should generated record adjusted EBITDA of $39.4 million as compared to $30.2 million for the sales growth helped when Dan.
The increase was primarily due to higher sales volume and mix a fee waiver full general and administrative expenses associated with the average transaction.
Distributable cash flow plasma any distributions of limited book incentive distribution rights paid to the general partner will still $80 million, which result in a sales quarters. When it has been distribution coverage ratio of 1.2 times.
Similar to previous year and as discussed on our last call. The bonus it expects adjusted EBITDA and distributable cash flow for the fourth quarter to be higher than the sales growth.
In addition, we have greater visibility into all shipping schedule for the rest of the and the partnership as careful narrowed the range is although 2019 guidance and now expect full year 2090, a net income to be in the range of 15.3 million to $20.3 million and then.
Adjusted EBITDA in the range of 140.7, maybe on $245.7 million and distributable cash flow in the range of 90 fall to $99 million bias and it is dilution that there's been no incentive distribution rights paid total general partner.
For the full is why do you think the into partnership comes into expected Stephen It's late to the alone to 65 cents per common unit.
The pharmacy, both at the did you expect the student between $2.87 and too, though the 97 cents per common unit portfolio 21 piece.
Tom liquidity perspective at the end of that Theyve got them, putting anything we had approximately $2.4 million the cash on hand with $185 million drawn under our $250 million revolving credit facility.
This anticipated increase in revolving Boeing.
Due primarily to funding of capital expenditures associated with the completion of construction of damage Atlanta and develop them to insult Mten expansion project.
The 3 million metric tons believe it or executed contracts with Japanese customers. We had outflows still have signed recently with not only greatly diversify our customer base, but those afib to significantly expand our scale. It is the partnership expects to have the opportunity to acquire full constructed bundle.
And for them and let them know facility for most lonza over the next few.
As we position the partnership to finance these activities, maintaining imbalance capital structure and Conservative financial policy, we remain hopeful.
Therefore, we continue to target 50, 50 equity that lead to these activities and a distribution coverage ratio of 1.2 time on a forward looking annual basis, taking into account expectation for distributable cash flow for the next locally.
Finally.
As you may have seen on Tuesday, Moody's upgraded copapods rating to be Athree and also upgraded the rating on our long view on it is nice to see our continued growth in scale unification of both customer base and trade growth built since our IPO in 2015 recognized by the.
Rating agencies and the rest of the financial community.
Now I would like to turning back to John .
Thanks shy.
Our sales strategy remains to fully contracted partnership and our current book is well balanced through at least 20 to 25.
As of October Onest, the weighted average remaining term or the partnership's offtake contracts now stands at 10.4 years and our revenue backlog is $9.5 billion.
Including volumes under the firm and contingent contracts held by our sponsor and its development joint venture, which we would expect to be made available to the partnership.
Our weighted average remaining contract term and product sales backlog would extend to 13.3 years and almost $18 billion respectively.
The scale of our expanding offtake book is yet another proof point that biomass is regarded by policymakers and customers around the world as indispensable to the global solution to phase out coal comment climate change.
This view and emerging incremental international policy developments continue to underpin demand growth in the industry.
For instance in Poland.
The government recently announced dedicated funds for the conversion of coal fired municipal heating plants to biomass fuel to support the country's efforts to reduce carbon emissions.
Local experts have estimated that up to one third of the more than 400 municipal heating plants will either fully convert to or co fire biomass driving more than 3.5 million metric tons per year.
In July 2019, the lower house of the Netherlands pass the draft law to implement the government's previously announced goal to phase out coal fired power generation by 2030.
Under the phase outlaw.
For coal fired power plants with a total generation capacity of approximately four gigawatts was either switched to an alternative fuel or faced shutdowns by no later than 2030.
To avoid the shutdowns these power plants are developing or commissioning biomass co firing.
Which we expect to drive the significant increase in demand for industrial wood pellets, Netherlands.
I'm, just 350000 metric tons in 2018 to over 3 million metric tons per year in 2021.
Across the border Germany.
The government recently committed to achieving carbon neutrality my 2050.
And then September released a new climate change action plan with an estimated $60 billion package of climate policy support.
In addition, the German government continues to progress towards implementing the coal commissions recommendations and the laws regarding the coal phase out and the shutdown of coal fired power generation assets are expected to be drafted in 2019 and come into force by early 2020.
All of these developments.
Could drive five to 10 million metric tons per year of incremental wood pellet demand in Germany.
We expect to see significant contracted demand emerge over the next 18 to 24 months.
Shifting to Asia.
While we continue to negotiate additional substantial offtake contracts in Japan, South Korea is also developing as the government announced that the 2019 UN climate some of it that it will shut down 10 coal fired power plants by 2022.
Which may drive a significant increase in the countries demand for bonus.
We expect our contract backlog to continue to extend and diversify with continued growth in existing markets in Japan, Europe , and the United Kingdom.
And for substantial new potential contract volumes to commence in the early to mid Twentys Twentys from the Netherlands, Germany and island nations as well as further volumes from countries like Ireland, Poland, South Korea and Taiwan.
You may have seen the media coverage of the Governor of Mississippi, and then via this head of sales meeting with the Taiwanese President and her delegation.
This highlights the potential benefits of wood pellets, a key renewable energy export commodity from the United States to an import dependent energy consumer like Taiwan.
We expect those market drivers drive incremental long term offtake contracts beyond what we and our sponsor of already side.
Based on our existing contracts as I mentioned earlier on the call, we and our sponsor will have the opportunity to invest in new production than Terminaling capacity.
In order to fulfill the long term contracted demand the grows to approximately 6.5 million metric tons per year by 2025.
Well the hamlet plant continues to ramp up production capacity as expected.
The partnership is progressing the expansion projects at our existing north Hampton and south into production facilities and expects to complete the construction of the expansion activities and the first half of 2020 subject to receiving our final permits.
Project like these are expected to be highly accretive and our operations and development teams continue to evaluate new opportunities to drive organic growth and capacity expansions.
With respect to sponsor level development, where the preponderance of our capacity growth is assert historically.
Last week, our sponsor broke ground on Hulu steel plant. The first production facility in our sponsors plan Pascagoula cluster.
Construction has also underway at the Pascagoula terminal and our sponsor recently executed they project agreement with the state of Alabama and applied for an air permit to construct a potential wood pellet production plant in EPS, Alabama.
Our sponsor expects to be ready to commence construction of the EPS plant and the first half 2020 subject to receiving necessary permits.
Production from the us flat a.
One building copy replica of or at least rail facility.
As expected to be transported by barge be the Tennessee, Tom Big River to the Pascagoula terminal.
Our sponsor continues to evaluate additional sites in Alabama, and Mississippi for two similar build and copy wood pellet production plants, so what export wood pellets than Pascagoula terminal.
This development of course is complemented by additional activities the sponsors undertaking to evaluate potential production sites around the partnership's existing terminal facilities in Wilmington, North Carolina, and Chesapeake Virginia.
By design the expectation is that all of these assets developed by our sponsor and as joint venture as well as they're related contract backlog will be made available to the partnership for dropdown acquisitions.
As we continue to grow we remain focused on expanding our export capacity and manufacturing footprint in the southeast use.
A robust fiber basket that provides about one fifth of the world's wood products.
The low grade Woodfibre, we procure is a byproduct of sustainable forestry operations and traditional sawtimber harvest and gives us consistent and stable access to a growing natural resource without any dependency on sawmilling saw dust or other industrial residuals.
We're continuing to invest year because it is one of if not the most sustainable force resources in the world.
One that grows more each year than as harvested one that demonstrates increasing carbon sox year after year, all the while producing a steady and sustained yield of timber fiber and energy from the forest.
If that language sounds familiar.
It is because it describes verbatim.
With the UN IP Ccs vessel report on climate land described as the role of for US and forest products that will generate the largest sustained climate change mitigation benefit.
As a result, our industry leadership is not defined solely by the scale and reliability of our global operations, but also by the critical role we play in delivering a sustainable solution to our customers efforts to mitigate climate change.
In sum we.
We delivered our strongest quarter yet.
With more than $39 million, an adjusted EBITDA.
We expect the fourth quarter to be even better.
We expected distributor at least $2.65 per unit for 2019.
And to grow that to between $2.87 and $2 a 97 cents into the 20.
Longer term.
We expect our executed contract backlog robust contract pipeline strong balance sheet capacity and supportive sponsor.
To enable us to double 2019, adjusted EBITDA and continue to drive durable and sustainable increases in distributable cash flow per unit overtime.
To close I'd like to thank all the great people and in vivo for their hard work and dedication.
Building, a business dedicated to solving the difficult equation of energy and the environment.
Thank you.
Operator can you. Please open one for questions.
Thank you.
I will begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
Thank you speakerphone, please pick up their hands that before passing the keys.
Joe Your question. Please press Star then Q.
Our first question comes from Brian Maguire Goldman Sachs. Please go ahead.
Hey, good morning, everyone is directly now for Brian .
Hey, good morning, there good morning, Thanks for taking my questions.
Maybe looking at the volumes in the third quarter coming in a little bit lighter than than what we had expected given some of your prior commentary.
You My assumption is that maybe some of this this is going to get pushed into the fourth quarter. Because you guys had mentioned before expect about 2 million tons delivered in the back half of the year is this still sort of the right way to think about the cadence for 2020 volume between I think volumes and then.
Maybe some of this get pushed into the end of the first quarter 20.
Yes. Thank you. So the question as we said before we expected Q3, it to be better from Q2, and we're expecting Q4 to be another major step up both Q3.
Q3, it down out as we expected and now with the visibility into our shipping schedule and volumes for the fourth growth, though and the ships that will be in the first quartile 2020, we feel confident about the finishing there we do know the guidance range.
Okay. That's helpful. Thank you and then maybe just one more on just looking at the VA GM per ton.
The third quarter came in pretty good I know you guys saw some benefits from improved operating leverage and and some cost savings initiatives.
Maybe in some easing and the wood fiber basket, but anything else there might be missing within that number that you call out and then is that maybe a good run rate number to think about into the fourth quarter and looking into next year.
Yeah, I think Thats I agree with what you said the diet adjusted EBITDA for the quarter with many of the result of improved they jump is done we.
The strong quota would move that fits the bill on 56 cents the metrics Don.
And then with.
With no weather impact as discussed on our second quarter goal behind us Fiberlan production cost OPEC to their normal levels for this time of day, while sales volume was lower than Q2 due to timing of customer delivery production volume was higher which led to better fixed cost absorption.
You'll note higher ending inventory that affects this reflected.
Okay. It was there also just some improve sort of customer contract mix in the third quarter is on bridging from Twoq to Threeq you and then at that also similar impact you might see in the fourth quarter.
Yes, we do expect.
That that could continue into Q4 with highly comp contract mix pricing.
Okay, great. Thanks, I'll turn it over I appreciate it guys.
Thanks, Eric.
Our next question comes from Ryan Levine of Citi. Please go ahead.
Hi, Good morning, I'm curious what was the driver lowering the top end of the 19 EBITDA guidance.
Thank you. Thank you for the question. So now as we mentioned we have better visibility into the.
Shipping the timing of the shipping contracts into Q4.
We've started to.
No the guiding range for.
So adjusted EBITDA for nailed the regarding range for adjusted EBITDA to one unfolded oneseven maybe onto one in 40 570 unbelievable with winning team.
Okay.
Everybody's time has passed to lower the drivers the Indian was just lower volumes are weaker margin expectations various original guidance.
There is there some other factors.
It's really.
It's really greater visibility into Q4.
As we know more about the shipping of a timing of shipping contracts into Q4, and how much of Oh shipping contracts will be moved into Q1 2020.
Okay, So lower guidance for the back after the year.
Or on volume, mostly it's what's driving the reduction in outlook.
No I think.
Ryan It's John I think the.
I think what you're hearing from US is that we now have.
Highly specific ship timing matching specific contracts with specific volumes and specific time periods and as you'd expect us to come through come through nine months of the year, you would expect us to narrow the guidance range as we have greater visibility into the nine months, which is completed and what we expect to the balance of the year.
Which is which is right inside the guidance range restart.
Okay. Thank you.
Our next question comes from perpetual motion, though.
Raymond James Please go ahead.
I think for a for taking my question.
We've been looking at Germany for a better part of a year now.
Are you getting a sense that maybe the German utilities are not as.
Proactive or kind of quick moving on now the coal phase out Commission.
Recommendations as perhaps you know, we would've thought a year ago.
Not at all the valid in fact, we remain as bullish on the German market as we add when the when the coal condition announced the commencement of its work I mean, what you're seeing is is and perhaps you've heard me described this before but what you're seeing is it the replication of the process that we saw kind of broadly speaking in the in the UK.
Okay.
They really began to reshape their energy mix and a focus on the full phase out coal and so you begin to see a number of major utilities are beginning to understand exactly the current plants that are expected to be rationalize over over what period of time and boat work at both the very local level sort of the shot Burke.
Approach to how theyre going to undertake.
New heat and electricity energy generation on on a localized basis and then of course, you got to measure the quite large facilities that are really important long term.
Job, great job preservation ones and the regulatory framework around all of this is currently evolving right. So you've got an expectation.
From the German government about the carbon carbon floor in the carbon price somewhere between 35, and and I think 60 per ton.
That provides for a remarkable ability to pay for many of them as utilities and those are the folks within them were directly engage many of these utilities is are we talk about before our both both power generations and thermal generation the combined heat and power.
Aspects and you may be aware that the CHP laws is currently under review to specifically address how effectively many of these men. These facilities can be converted from coal to two biomass and so you've got you've got some pretty significant tailwinds and utilities that I would say are actually moving much more aggressively than perhaps is this.
On the newspapers, although there have been some pretty aggressive media coverage points about hey. This is what we're going to go out is we got to go figure it out and lets get after it.
And for us that as we look out we see sort of a five to 10 million metric tons per year.
Market for us with with them potentially test deliveries beginning in the next call. It 12 to 18 months and and then probably as you think about the sort of our Japanese equivalent sort of the 18 to 24 month timeframe for announcements of major long term structured contracts with deliveries beginning thereafter.
[noise] Andre Yeah, that's useful I I've noticed that on on this call I think maybe more so a lot than the last few quarters, you kind of highlighted the.
Environmental sustainability aspect of of Biopower or are you seeing any change in a in the push back from.
Environmental activists community to that and if so and in one geography.
No exact is actually quite the opposite what we see is.
It is so much of the work that the you on IVC is as Don is really again come out.
Come out so strongly in favor of the role of biomass the role of by owners of the importance of healthy working for us.
There is there's been a lot of talking to you and on this and so we think it's really important.
Mostly because the policymakers around the world you come out of Red to with the on the last year again firmly affirming roller biomass, 60% of renewable energy generation in Europe today.
Incredibly important for it to continue you and I VCC describes it as essential to every single pathway to addressing the ever more urgent need of mitigating the 1.5 degree Celsius.
The climate change mitigation.
And then you've got to of course folks like the 100 Sciences letter continuing to reinforce.
This is a story that is so important to how we're going to mitigate climate change on long term basis the size than their 40 years the questions when asked and answered and let's use it even more aggressively.
Alright.
Hey, guys.
Absolutely feel good to talk to you.
Our next question comes from Elvira Scotto.
Do you see capital markets. Please go ahead.
Hi, good morning, everyone.
Can you talk a little bit about on the 2020 distribution guidance a treaty 70 to 97.
You know the drivers of the low end versus the high end and how you're thinking about drop downs baked into that number.
Yes on the distribution guidance. Thank you for the question to do this division guidance, we discuss this before we do expect too.
Hi, good distribution per unit folks look 2020 deal between the you mentioned between $2 energy seven to do the only 97 per unit.
We also discussed before to provide additional more information we put we discussed the fix we expect into get Aldo 2020 would run rate Debbie die Nexus of well exits over 200 billion dollar.
We do.
Thanks to get a benefit from a full a fully ample hamblett, we'd say 26 to 27.
26 to 27 billion, though we do expect to get the contribution from the no attempt on itself.
I mentioned project that expecting to being at least $30 million the stopping.
So next year.
We are expecting.
To provide the multiple some guidance.
On 2020 .
By the time that we have the code the next the mix them. So.
Yes, all of our the.
The 280 70 to 97 was was consistent with when we undertook the handle dropdown transaction and also undertook the prefunding of the expansions for North Hampton and John and the judges mentioned, so with regard to with regard to that that guidance. It doesn't include any further drops and so as we described.
Prepared remarks.
Upstairs at the sponsor there's five assets, there's an existing operating.
Plants in Greenwood, South Carolina, There is now a terminal asset under construction in Pascagoula, Mississippi plants under construction in lieu still Mississippi.
We signed our sponsor assigned.
No agreement with the state of Alabama, which back to the development of a plant in EPS, Alabama, and then there's one additional one that we will we will expect to announce in relatively short order.
That are contracted assets under the long term backlog that we profiled and so as you've seen us historically undertake we've grown as a corpus and certainly had given some view to our expectation that we we drop in one or two assets in 2020 with the others have all thereafter.
Okay, great perfect.
And then.
On the the credit rating.
Great to see that that upgrade can you just remind us what your target leverage is and then is there any rating.
The picture aspiring to get too.
Yes.
That's a good question so to remind you all we believe that we have conservative financial policies. So we continue to target as we mentioned.
Just a few minutes ago delegates full acquisition will drop downs, we continue to target a defined of them with that 50% equity 50% that based on.
Based on all the previous the job done acquisitions, we expecting.
Two acquired assets at EBITDA range of seven to seven ask time and that leads to all actually target leverage as a leverage over to enough default times. We will have this is appropriate conservative for the type of the fully constructed lives that we have long term taco bail of state contracts with the escalation clauses.
Contracts.
We do expect as we continued to scale him go we do expect to see a further recognition by the agencies. So we believe that this is just the style. We know we recognize that there is some some level of scale that we expected to have before we'll see now the.
Another.
Within the credit ratings, we expecting that to be a globally.
Relatively soon to come.
And we believe that though we dare further improvement to not quite ready, we'll be able to reduce the the cost of capital fulfil entity and we feel very helpful.
That with implementing a great trading we'll see a reduction in the field.
As well.
Great. Thank you very much.
Of our always good to talk to you.
This concludes our question and answer session I would like to turn the conference back over to John Kessler for any closing remarks.
Thank you.
Thank you all for taking the time for joining us today.
As folks who have gotten to know me a bit.
I'm quite fond of saying, we're just getting started and given what we talked about today.
That certainly never been more true.
We'll look forward to catch up again next quarter and thank you all.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Okay.
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