Q3 2019 Earnings Call
Good afternoon, and welcome to the refresh solutions third quarter 2019 conference call.
All participants will be any listen only mode. After today's presentation, there will be an opportunity to ask questions.
Please also note today's event, it's being recorded.
At this time I would like it Kinda conference calls over to Jeff Sadik Investor Relations that I see our Sir Please go ahead.
Thank you and good afternoon ladies.
Today's presentation will be led by Jordi Ferre, Wright, Chief Executive Officer, and Graham mile Chief Financial Officer.
Comments during today's call any accompanying presentation contain forward looking statements within the meaning of the safe Harbor provisions.
Private Securities Litigation Reform Act of 1995, all statements other than statements of historical facts are considered forward looking statements. These statements are based on management's current expectations and beliefs as well as the number of assumptions concerning future events.
Such forward looking statements are subject to known and unknown risks and uncertainties that could cause actual results could differ materially from the results discussed in the forward looking statements.
These risks and uncertainties are identified and discussed in the company's filings with the as you see well refer to certain non-GAAP financial measures. Please refer to the tables included in the slide to the company. This presentation as well as the press release, which can be found on the Investor Relations section of our website Agrofresh dot.
Tom for reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures.
That I'd now like to turn the call over to Jordi forever.
Thank you, Jeff and good afternoon, everyone.
Please turn to slide three.
Third quarter results are not representative <unk> expectations for the 2019 northern hemisphere season.
Which extends through the fourth quarter.
This is the saw the laid up all harvest inboard, the United States in Europe , and <unk> third quarter results were exacerbated by a difficult comparison to the prior year, where we faced an earlier than normal start to the harvest season.
Well she has been sales from September to October these year causal door to become the largest revenue month of the year, which is an anomaly where our business.
Well of course, Smartfresh business was temporarily challenge in the third quarter due to the unforeseen delays.
Outerwear subrogation initiatives that are geared towards growth products. So to speak me they extend harvista all at cheap constant currency growth in the year to date period, and when you see babies momentum will carry through the end of 2019.
Nonetheless.
What a net sales decreased 29%.
Turning to the prior year period, reflecting the timing shifts in comparison to the early harvest season in 2018.
Significant variability in harvest timing is an ongoing reality of all business.
In fact, as you may recall from a first quarter earnings this year.
We noted that the southern hemisphere experience, a delay harbage, which shifted sales through the second quarter.
The magnitude of the delay on these years Northern hemisphere harvest was greater than normal because it impacted both North America and Europe .
We are encouraged by all kober results and we believe that all full year 2009, net sales will be stable down in the low single digit percentage versus the prior year, excluding foreign currency impact.
However, we do expect the positive impact of our ongoing cost initiatives, we will allow us to achieve.
The improvement in our adjusted EBITDA margin for full year 2019 versus 2018.
We remain focused on the controllable aspects of our business and I spoke sitting in our efforts to optimize operating costs.
As we mentioned in the previous quarter, we expect to see a reduction of nonrecurring expenses moving forward with the completion of the mere to take litigation in the first of all of a board.
Well that N., we are pleased with the jury's favorable verdict against <expletive> will force harvest Inc. and nickel parent company you P.L. limited and look forward to resolving this matter permanently.
Turning to slide four.
My first experienced a difficult quarter to due to a delay or 10 to 14 days in the northern hemisphere harvest versus the typical year.
Furthermore, the quarterly impact was compounded by last year's room comparatively early and short harvest.
Considering that most of our revenue in September takes place in the last two weeks of the month. The magnitude of change was significant as measured on a quarterly reporting basis as of September thirtyth.
[laughter] ultimately middle October largest salesman of the year.
North America is largely driven by your Apple business in the United States, which was significantly impacted by the Neely. This.
Despite the harvest the late at a for US in late October the Apple crop in the Pacific Northwest is still expected to grow versus last year.
Partially offsetting this growth challenges in the eastern growing regions in the United States in Canada, which were impacted by some extreme weather events, including hail and high winds brought about by Hurricane Dorian.
Oh Smartfresh business is facing weather driven at wins in Europe as well.
In Europe , the pair crop in Italy, and the Netherlands were negatively impacted by a variety of there, including weather and were comparatively small versus the prior year.
Similar to conditions in North America Western Europe is also experiencing a later than average Apple harvest, which is shifting revenue into the fourth quarter.
The Apple harvesting easily is ongoing and appears to be smaller versus the prior year.
Partially offsetting the low we'd probably an apple crop were the larger crop sizes in other European markets, such as France, Spain.
Okay and Portugal.
Turning to slide five.
Diversifying our core business to a broader crop and broad base is central to operating strategy and we continued to make progress towards this goal.
Well the trailing 12 months ended September 2019, or Abu mix measured as a percentage of total revenue was 7.2 per cent compared to 74.6% in the prior year trailing 12 month period.
Our expanding regulatory portfolio is the primary driver for growing up business be on apples and we are continually leveraging our expertise to address new markets, a new crops, such as mangoes and bananas.
During the third quarter, we obtained a number of new regulatory approvals a great example is a recent approval of Smartfresh in India.
India produces approximately 2.5 million metric tons of apples, which is comparable to the crop size of either.
And the infrastructure, there is improving and adopting control atmosphere supply chain facilities that necessitate utilization of our freshness solutions.
Please turn to slide six.
Our views that helps slow restoration and the ripening process, well apples and pears I still on that free for a morning fruit furnace and well I do for an extended period.
It also provides other significant benefits such as yield enhancement for other high volume crops, such as cherries, and blueberries, which we have started to address without growing registration portfolio.
Well the third quarter harvest the sales were down modestly versus the first quarter of 2018, you do the harvest the late in North America.
Well the Neely caused a deceleration in the business, we still generated year to the growth of 8.5% on a global basis versus the prior year period and anticipate the harvest that we'll have a positive fourth quarter, making it for a successful 2819.
Our recent future growth will continue to be driven by the timing of new regulatory approvals for our latest formulation of the product, which is more effective and easier for producers to apply.
So you formulation is already being used in the United States in Argentina.
And as we have mentioned previously approval of harvesting Australia drove new revenue. During this year solvent has missed fear season.
Building upon the success, we recently gain additional approvals in Chile, and South Africa, who established markets, allowing for additional growth opportunities next year.
Looking ahead, we are targeting regulatory approvals in New Zealand, Brazil, and the European Union, where the product has generated a lot of interest after some really promising customer trials.
A regulatory strategy goes beyond regional exposure and also helped drive our diversification strategy.
Driving the implementation of the harvest that technology beyond apples and pears to order high volume crops, such as blueberries in Chile and chairs in United States. I Grid example of these and we are in the midst of pursuing approval for blueberries in United States for next year season.
Turning to slide seven.
Techniques is the centerpiece of our citrus business, providing agrofresh wheat crop and technology diversification via an established portfolio fungicides coatings and watches.
We estimate the seats. This represents approximately 60% of the total global post harvest market and remains a significant growth opportunity for AG refresh.
On a constant currency basis.
Secondly that sales increased 4.7% during the first nine months of 2019, driven by a balanced of strength across our core European market and emerge in Latin America presence, partially offset by some temporary softness in Africa, and the Middle East, which we believe will be partially recovered in the.
Fourth quarter.
Well service oriented approach an expanded set of solutions to meet diverse customer needs for a broader variety of crops provides us with the significant opportunity to expand I'll take the next before there was a solutions to our global customer base. The reason, we recently secured global sourcing some key suppliers are focused sides.
The we've utilized for taking the big solutions that commitment to expand and support our business on the global basis is an exciting devvarman for next year Seadrill season.
Recently, we have also started to test, though the greening equipment at some customer facilities in California, which is a significant global citrus market, where we don't currently have a presence.
Please turn to slide eight.
We have continued to move forward with the relaunch of Ripelock Snooze simplified protocol then the leave us in estimating meaning of two extra days or banana yellow life to retailers.
We are responding to retailers were looking for ways to enhance the fresh ready to eat offerings on the perimeter of the store.
Beyond the retail store displayed we're strategically engaging deeper into the supply chain with Pakistan exporters leveraging the commercial infrastructure, we have in Chile, Brazil, Mexico him through to address other crops such as Avocados mine was a melons for exports to Europe and Asia.
We are engaged with retail partners in the United States in Europe in Banana trials, there will be completed smart and expect confirmation of our rollout soon.
We're also making progress with major ever cattle producers that are testing are in trends solutions for their respective supply chains. Consequently, we expect ripelock to be a key growth engine for the coming year.
Please turn to slide nine.
Last year, we launched fresco the digital platform that provides insightful real time data about product freshness and projected shelf like.
This digital solution helps customers along the fresh frozen supply chain maximize their return by making better more educated inventory decisions.
Despite its infancy of growth trajectory year to date remains positive driven by growth in the United States in Chile, mainly with our storage insights model.
We continue to build out our capabilities by adding and proving its technical delivery as well as leading insights collected across the platform to provide valuable and actionable information through the fresh protos industry and our global customer base.
I'll now let brands some of the financial highlights Graham.
Thank you Jordi and a good afternoon to everyone on the call.
Please turn to slide 11.
The third quarter marks the beginning of the northern hemisphere season.
In our experience with a harvest the delay is a great example of why we emphasize that investors should consider our business in half versus quarters.
Taking into account seasonal fluctuations that can shift to sales between the third and the fourth quarters.
Net sales were $49 million in the third quarter 2019.
A decrease of 29%.
As compared to net sales of 68.7 meeting daughters in the prior year period.
Excluding the impact of changes in foreign currency exchange.
Which should reduce the revenue by $1.2 million.
Revenue decreased approximately 27% compared to the third quarter of 2018.
For the first nine months of 2019.
Net sales were 109.1 meeting daughters.
Decreased 13%.
Or 11%, excluding foreign currency impact.
Our growth initiatives, which are focused around tekirdag, harvista and a fresh cloud.
Or achieved role.
For the year to date period.
From a regional standpoint, Latin America realize the growth due to increased Apple crop size in Argentina, and the increased penetration in Brazil.
However, these positives were not enough to counterbalance the negative impact on the third quarter results due to the delay in harvest timing across the northern hemisphere.
Please turn to slide 12, where we'll discuss margins and operating expenses.
Our gross margin was consistent with expectations.
At 71.6% in the third quarter of 2000 to 19.
Versus 75.7% in a third quarter 2018.
Third quarter margin results was similarly impacted by the harvest the delay.
This anomaly influenced the sales mix, which in normal season is more heavily weighted toward our higher margin smart fresh business.
These are same trends affected the first nine months of the year with gross profit margin at a 71.1% this year compared to 73.8% in a year ago period.
While our gross margin profile continues the mall based upon our diversifying sales mix.
Our industry, leading gross margin allows us to continue to invest in R&D and post harvest innovations.
This is the supported by our service platform and our solutions based infrastructure, which allows for an advantageous asset light operating model.
From an expense perspective.
We continue to focus on cost optimization.
To create greater efficiency follow business and a better align our operating structure with dollar revenue base.
During the third quarter of 2019.
We build upon a savings we began to realize at the end of 2018.
And we expect these initiatives to continue to generate the benefits for the remainder of 2019.
Third quarter, selling general and administrative expenses decreased 17.6% to 15 meeting doors on a reported basis.
SGN a expansive included 1.6 meeting dollars into current quarter and the $3.7 million in the prior year period of nonrecurring costs, such as M&A mitigation and a severance.
Excluding these items.
As DNA decreased 7.7% in the third quarter of 2019 over the same period faster year.
But a nine months.
SGN, a expenses were down 6.2% to $47 million and a decrease the 7.5%.
When excluding non recurring costs, such as M&A mitigation and establish was up $7.3 million in the current year and a 6.7 meeting powders in the prior year driven by ongoing cost optimization initiatives.
Research and development expenses decreased 0.9 meeting daughters versus the prior year to $2.6 million in the third quarter of 2019.
The decrease was primarily driven by the timing of projects.
For the first a nine months of 2019 research and development expenses decreased 8.6 meeting dollars to $9.7 million versus the prior year period.
R&D remains an important component of our strategy to drive continued diversification beyond apples.
Please turn to slide 13.
Net income was $3.3 million to in the third quarter versus net income of $3.5 million in a year ago period.
On a year to date basis, net loss was $31.6 million compared to net loss of $27.9 million in the prior year period.
Adjusted EBITDA was 20.6 meeting dollars into third quarter as compared to $34.6 million into third quarter of 2018.
Driven by lower sales, partially offset by improved cost structure.
Year to date, adjusted EBITDA was $31.7 million, a decrease of $10.8 million or 25.4% versus the prior year period.
Despite the third quarter harvest that delayed and additional factors that you already mentioned.
We are projecting that we will be able to deliver an improvement in our adjusted EBITDA margin for the full 2019 versus a full year 2018.
Due to the positive impact about ongoing cost initiatives.
And to slide 14.
Cash used by operations was $8.7 million for the year to date period of 2019 compared to a used up $16.2 million in the prior year period.
The year over year 7.5 meeting dollars improvement in operating cash flows was primarily driven by better working capital management, particularly with an emphasis on collections and expense control.
Capital expenditures were 3.3 meeting dollars for the year to date period, 2019, compared to $3.2 million in a year ago period.
We expect our annual capital expenditures to range from 3% to 4% of sales consistent with our asset light business model.
From a balance sheet perspective.
Cash as of September Thirtyth.
29 team was $18.7 million.
Total debt was 407 eight meaning dollars.
The term loan maturity in July 2021.
Our revolver was undrawn as of September Thirtyth, 2019, and our liquidity total liquidity was a $31.2 million.
Looking ahead.
We will continue to focus on delivering growth and optimizing our cost base.
In addition, we are working diligently to improve our balance sheet, particularly the capital structure.
We are actively working through a process of evaluating all possible alternatives.
We had our business in a very strong global position.
Im confident that will solve this issue before our term loan becomes current in July 2021 year before its maturity in July 2021.
Now I'll turn to call back to Jordi for his closing remarks before opening the call to Q anyway.
Thank you Graham.
Please turn to slide 15.
We are pleased with the resilience of our core business. Despite the unexpected harbors delayed into third quarter and are encouraged by the results of our diversification initiatives to expand into new regions in crops with a growing portfolio of post harvest solutions.
Our service oriented approach and proximity to our global customers providers with a competitive advantage to react quickly to meet the changing needs of the industry.
Finally.
As Graham stated, we continue to focus on options the reviews, our leverage and enhance our flexibility to drive strategic initiatives with that operator. Please open the call for questions. Thank you. We will now be conducting a question that answer session.
If you would like to ask your question. Please press star one on your telephone keypad.
Hey, confirmation Tony will indicate your line is and the question Q.
You May press Star too if you would like to remove your question from the Q.
For participants using speaker equipment.
And maybe necessary to pick up your handset before pressing the star keys.
Our first question comes from Jerry Sweeney with Roth Capital. Please go ahead.
Good afternoon, joining Graham thanks for taking my call.
Hi, Hi, Jerry Jerry.
Doing well thanks I.
I was under the impression the Pacific Northwest, which I think as the largest.
Crop in the U.S., what's going to be.
Larger this year than last year, but obviously, there's some puts and takes that only in the U.S., but as well as I guess the other.
Northern Hemisphere countries, and Hi York overall, if Apple market.
Larger.
Smaller or the same versus last year do you have any.
Data on that.
Are you referring to self Jerry to consumption.
No I'm, referring to just the actual.
Harvest size.
Okay. So I think Jerry you heard so youre right. The Pacific Northwest crop is predicted to be Vigo, we said that in the last call and that continues to be the view.
The thing is that it's been a big delay in the harvests into October and Q4, which is generally speaking unusual right. So having said that yes, the Pacific northwest.
Apple a forecast will be larger than last year.
In the east of United States, as we mentioned, we'd be imprudent, because we've seen weather impacting and potentially impacting on the downward side the crop.
And in Europe .
We most of our business is in Western Europe .
We have some business in the east. These as we said before was not looking very good but it's not really that material to us is the western Europe Western Europe , we had easily but he's looking to be down but other crops are going to be up.
So it's yet to be seen when the season andas, but it could be about I would say it's difficult to Ventura said all the season is wrapped up and look at the numbers, but I would expect that it will be probably equal.
Well.
Better.
So I mean, the next question was on this I mean this whole question was predicated on gestured net revenue being.
Flat to down several basis or Rob.
Several oh a few.
Percentage points.
Yeah, if the harvest as equal.
Yes.
And the Pacific Northwest, what's gonna be higher but net net it was maybe we'll say flat are you comfortable with your market share.
Ah, yes, holding today, yes, we are.
Yes, we are in fact, we are and I'm going to be cautious here as I said the season is not over until the end of the.
Fourth quarter, where we potentially see even into us some extra gains in share. There. So I think we regained some of the share that we lost potentially where again, we could you update better weather season is.
It's completely dawn.
Yeah. So.
So.
If if you're potentially will kind of even market share gain.
What would drive revenue.
Flat to down.
Is it pricing.
We don't really see any material change in pricing.
I think that a to be Frank with you Jerry we tried to be a little bit cautious here. Okay. That's fair pause I'll tell you why it's because as you see.
There's a lot of them break in predictability with weather et cetera, et cetera, right. So this is the outlook that we see today as they give you, but you know what where there's a little bit the out of normal right and.
We want to make sure this though even when sometimes you. The <unk>. There is a delayed season, you might get into cold weather.
And the first on the trees to give you. An example, so we've been very very cautious here not to give you a completely upbeat outlook based on the unpredictability that we're facing but as we said before that's why we try to make some of the areas of business that we can control more predictable and this is on the.
Other hand that we said that we see an improvement in adjusted EBIDA based on our cost.
On a cost initiatives.
Got it Okay, that's fair and like I could attack and AG has drivers that are.
Outside your control so I just wanted to make sure you're comfortable with market share.
Pricing. So that we are we aren't we don't see any material is materially at this point in time, we would say that Hawaii, but again when the season is done we will be able to do a better.
Balance, but if we have seen anything that was worth pointing out we would have mentioned during this fall.
I mean, it's fair to say you would've seen any pricing degradation by this time already I mean.
At Harvard It is November right. So you haven't seen a chat sorry.
Certainly.
We haven't seen that did not.
You know I I don't think you could talk that much about that go in new PL, but the one question I had.
And this is.
Going off a little bit of memory, and just reading a lot of legal documents.
Believe deco with some joint from selling any.
One NCP product.
At least during the trial and they've been out of the market for that reason with the trial entering its and phases.
They're going to be able to enrol enter we entered the market I mean in any shape or form or fashion I know, there's patent issues, but.
There's a lot of moving parts there so are they.
I'm curious if you can give a little bit of context around what happens post.
Wrap up by this trial and we can really is speak for April and they will have to decide whether they want to do.
What we are always going to do though and I'm one of the very clear we're going to vary fiercely be fan.
A scrap has mentioned we put a lot of money in R&D, we have a lot of developments and anybody that we see that is not really following the rules we will enforce it.
Very strong manner. That's all we can respond for whatever other people are going to do I cannot tell him.
Got it that's fair.
This question is little bit more for I think ramps. So SGN asset size, you said 15 million in the quarter and there was some.
Got 1.7 million up.
[noise] normalize or not or extraneous costs I'm, assuming that was a lot around the legal side what is a good SGN a run rate not just into fourth quarter, but really into next year.
Could you give any insight into that because that could be African driver as well.
Yes so.
If you look at our year to date.
Total operating costs, Saudi marketing.
SGN, a including R&D.
Well, the but a three quarters so far.
Do you do an annualization to the run rate that will give you a good because spa and we believe we can even do better than that.
Oh other words staff if you so far for the year today, we set a.
Including as reported a basis before.
Excluding before we exclude the nonrecurring costs.
Year over year was.
Down.
Six percentage right. So you take that internet, excluding the if we exclude the non recurring item the decline caustic high will be even greater in a 7%. So that probably will give you have good proxy for next year.
Okay, all to run the math chicken okay.
And then actually the final follow question in the.
A press release, you had a comment to align it says succeeding in our efforts to optimize operating costs and improve the capital structure.
First half of that.
I got a that's optimizing operating costs you did talk about a little bit on the call about capital structure.
Any more detail as to.
Optionality, that's going on in there or.
Moving down the road talking to banks.
As it had amend and extend the or maybe a whole new debt facility anything you can discuss on that front.
Yeah, when we're looking at.
Thank you put a question Gerry so do the obviously.
On top of agenda. In addition to driving all organic business growth.
So the were looking at it to be Frank the we're looking at all of these options and the clearly as you see despite the fact that we have the seasonal delay our topline revenue impact our cash flow continues to be strong stable and as a matter of fact, a year over year, we're improving our cash.
Cash flow.
Through internal operational improvement working capital cash collection optimization up a cost structure, so our ability to service all at that.
Is strong so we're looking at is to how to a refinance or other alternatives to look at a capital structure. So that we can at we can be in a position not only to extend.
Amanda Thanks, Dan or refinance so have a new terminal, but also we're looking to the lab, which overall that levels. So what we're looking at all of these aspects and aware so as we mentioned on a call. It's an ongoing process right now what you can be.
Yeah sure Jerry is that we always have the best interest over shareholders in mine.
So its or the season that we continue and we will make it right.
On that consideration.
Got it thank you I'll jump back in Q.
Again that is Star Wars two asked a question. Our next question comes from Ben Klieve with National Securities. Please go ahead.
Alright. Thank you I'm just a one quick follow up from one a jerry's questions regarding the kind of the size of the harvest this year on the especially in the Pacific northwest for for a while the summer looks like it was potentially going to be really a bumper crop.
Alright. Thank you I'm just a one quick follow up from one a jerry's questions regarding the kind of the size of the harvest this year on the especially in the Pacific northwest for for a while the summer looks like it was potentially going to be really a bumper crop.
Jordi I heard you I'm clear that you said that you think it's going to likely be an improvement from last year last year was a particularly weak year. If I if I recall correctly sell my question for you as the.
I'm guessing that that any improvement in the Pacific northwest would be kind of modest relative to last year, and that's not going to be.
Kind of on par with harvest overseen and kind of 2015 16 17 is that is that a fair statement.
Im not going to speculate at this time, we we are going to be a little prudent until the crop is or again the de Lee makes it a little bit difficult to answer your definitely at this point in time, because I do think that you have to consider other things that affect our business potentially right. It's the.
The obviously the size of the crop it's positive for us.
When do you have to see if there is all apples uptake in store and other things. So yes. It looks like it's going to go at least with normal level. If you want to put it that way in terms of the average over five years.
However, we have to be a little bit Bruno until this is Don in terms of so many of those actually make it to storage right and that's why but we are in the process. It looks good but at this point in time I would prefer to delay that responds to when the season is though.
If and.
And I want to add that last year as a reminder, third quarter last year was particularly strong quarter that's correct.
Yes.
Yes.
Right Okay.
A couple other questions one well first of legal settlement I know theres a lot of uncertainty still here, but can you kind of providing an update as to your your your understanding of kind of the timing of any potential appeals and kind of your best estimates for before really the status of.
When you may actually collect those proceeds.
It's a little bit early I know you again, I'm not going to speak laid on that the only thing I'll say as we have an excellent legal team and they'll make sure that we are able to collect this.
As soon as is materially possible right you can understand we've made our own estimators internally, but I'm not in a position right now for sure that.
Publicly okay, yes.
What we had another but we have very very confident in what we're doing and that we will be able to resolve this.
The best way.
As of putting a closure to this.
Right fair enough.
And then.
Also a kind of on the noncore side, what are your expectations for the balance of this year and into next year for.
The tax receivable.
Payments.
You're making a deal.
So so tax receivables are a function of our U.S. and as you as a reminder is a function of our us entity taxable income.
So so in the U.S.
When you look at our disclose the piano now we have a huge.
In is the amortization as part of the.
Yes.
The acquisition four years ago.
The intangible amortizations so for for this year, we had we have carryover from last year. So last year, we paid a for meeting dollars.
Okay, and we had a carryover of a meeting dollars said this year and then for for the ongoing tie. It typically we estimate is back in a three $4 million.
Well, it's a function.
The taxable income is calculated.
Okay.
Perfect and last one from me I just.
Wondering if you can kind of provide elaborate a bit on on kind of your outlook for fresh cloud kind of through 2020 can one of the one of them metrics that you're really looking out kind of what are the.
Well, maybe some some.
Some post we can target for next year that really show that kind of continued advancement on.
Of the first part product.
So we have already mentioned that the although from a small base. This year I mean, we have we are seeing.
Big increases percentage wise and we expect this trend to go into next year.
And to gain more penetration in terms of especially our stores insights that is the molecule that's a lot more events.
So we continue to see growth next year, and we're very bullish and we have said many times. This is a journey, we're not going to let go. This is a very strategic being for this company, but also for the industry. It's a neat.
We starting with growing we continue to invest in next year you should see.
The growth also in that area.
Alright, very good that the that does it for me thanks for taking the questions I'll get back in line.
Thank you Ben.
Ladies and gentlemen at this time I'm showing no further questions I'd like to end the question and answer session and turn the conference call back over to Jordi for any closing remarks.
I just would like to thank everybody for.
Attending school and you'll continues interest and support for the company and we.
We continue to work harder for your everybody to make sure that we deliver thank you.
This concludes today's conference call. We thank you for attending you may now disconnect your lines.
Okay.