Q4 2019 Earnings Call
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It is now my pleasure to turn the conference over to Karen Bauer, Vice President of Investor Relations strategy and Treasurer. Please go ahead.
[music].
Good morning, everyone and welcome to the Badger meter fourth quarter 2019 earnings conference call on the call with me today, our can by of course, Chairman, President and Chief Executive Officer, and by Broccoli Chief Financial Officer.
Earnings release and related slide presentation are available on our website quickly I will cover the safe Harbor reminding you that any forward looking statements made during this call are subject to various risks and uncertainties. The most important each of which are outlined in our press release and does he see filing.
Finally, please note that on today's call, we will refer to certain non-GAAP financial metrics. Our press release, some slides provide a reconciliation of the GAAP to non-GAAP financial metrics Hughes.
I'll turn the call over to Ken.
Thanks, Karen and thanks for joining our fourth quarter earnings call. We finished out the your with solid fourth quarter results, including an 8% increase I mean municipal water sales year over year higher operating profit margins in a record free cash flow.
Recapping the full year, our topline saw some unevenness largely from the mid year innovation pause associated with new product introductions and the sizable middle East project revenues in the prior year that did not repeat however, we delivered very strong margins both at the gross and operating profit levels and tremendous cash for improvement with 155% free cash flow conversion of net earnings.
For the full year.
Bob will walk you through the details are the most skewing of the quarter and after that I'll come back and talk further about the you're in review as well as our market outlook.
Thanks, Ken and good morning, everyone.
Slide four gives you a snapshot of the financial results for the quarter compared to adjusted results from the prior year.
As a reminder, the prior amounts have been adjusted to exclude executive retirement charges. A reconciliation of these amounts is included in the appendix slide deck.
Starting with sales total sales for the fourth quarter were 107.6 million compared to 104.4 million in the same period last year, an increase of 3% overall.
In municipal water overall sales increased 8%.
Sequentially. This quarter's domestic municipal water sales were about level with the third quarter of 2019 again near record all time highs in contrast to what we've historically seen in terms of a sequential decline from Q3 to Q4.
The increase was driven by continued adoption of smart metering solutions, including the newly launched large diameter, three and four inch east serious commercial meters and a Ryan LTM cellular radio endpoints.
In the quarter mechanical meters sales were particularly strong as we ramp the Columbia, South Carolina Smart meter award announced earlier in the year.
Sales mix remains positive with increased sales of meters with radios as well as increased Beacon service revenue year over year.
Flow instrumentation sales declined 11% year over year. The result of sluggish global industrial activity across the variety of end market served with the majority of the decline in international markets.
Operating profit as a percent of sales was 15.2% an increase of 60 basis points from adjusted prior year results.
Taking a closer look at the drivers gross margin for the quarter was 38.2%. This was the six consecutive quarter, where we have delivered in the upper half of what we would call our normalized range of 36% to 40%.
Net price cost had a negligible impact and while margins did decline slightly year over year, what the typical quarter variation in meter mix and lower margin installation activities. The overall trend of radio adoption and higher Beacon service revenues benefited absolute margin levels overall.
I see a expenses in the fourth quarter were 24.8 million approximately level with the prior years adjusted 24.9 million due to solid cost control measures.
I see a leveraged improved to 23% of sales from an adjusted 23.8% last year.
The income tax provision for the fourth quarter of 2019 was 24.3% slightly higher than the prior years, 23% adjusted rate.
In summary, EPS was 42 cents for the fourth quarter of 2019, an increase of 5% from the prior years adjusted EPS of 40 cents.
Our working capital management actions resulted in another quarter of improved primary working capital as a percent of sales, which ended the year at 26.4% down 230 basis points from prior year end.
Our overall free cash flow in the quarter was modestly below the prior years fourth quarter, but for the full year free cash flow increased by 21.5 million or 42% and we finished the year with a very robust free cash flow to net earnings conversion of 155%.
With that I'll turn the call back to Ken.
Thanks, Bob Weve spent quite a bit a time talking with customers and with investors about innovation in the benefits of our smart solutions, including infrastructure free cellular radio offerings.
Recently, our Smart City Alliance partner ATM T. participated in a panel at the consumer electronics show in January and highlighted badger meters industry, leading solutions when talking about the various benefits cities can realize ball deploying smart applications.
As you May remember back in March we announced we had one an important smartwater deployment with Columbia, South Carolina that included not only our world class record all mechanical meters, but also our Ryan LT, he and the cellular radios solution.
It was recently announced that this Smartwater project, one a smart 50 award and which honors the 50, most transformative global smart projects each year among the benefits. The award notes that the Badger meter solution provides and I quote actionable intelligence to Columbia water, which can result in faster leak detection quicker data collection for compliance reporting and better right.
Avenue management.
Most importantly, we have received outstanding feedback from the customer across a spectrum of metrics associated with this project I encourage you to follow the link we provided here on slide five and watch the video which includes comments from Columbia as mayor.
Finally, turning to slide six as we embark on our 115th year in business I'm optimistic about our future.
I suppose spending trends are solid our focus on choice with comprehensive and Taylor mobile solutions across our differentiated metering communication and data analytics offerings is leading to healthy quote activity in a solid backlog.
We have strong earnings and cash flow that we intend to continue to reinvest in the business both organically through R&D and be a strategic tuck in acquisitions.
I'm pleased with our organizations willingness to embrace sustainability and a continuous improvement culture mindset, while we while we remain customer focused we saw a measurable improvement across multiple operational customer facing and back office metrics in 2019, and I anticipate further improvements in the year ahead.
In closing I want to say, thank you to our employees across the globe for their relentless customer focus on efforts with that operator. Please open the line for questions.
At this time, ladies and gentlemen, if he would like to ask a question. Please go ahead and press Star then the number one on your telephone keypad.
Your first question today comes from the line of Nathan Jones with Stifel. Your line is open.
Good morning, everyone.
I Nathan.
Maybe I could start off with the really good growth that you guys. So are there in the municipal business in the fourth quarter.
You had this innovation pause earlier in the year do you feel like this is returned to a more normalized level of customer demand here or do you feel like they might have been some catch up from things that would differ a little earlier in the any color you can give us around that.
Yes, I was like the point out first as as you and everyone else on the call no. It's things can tend to be uneven, but yes, we are back to a more normal level of growth.
I would not characterize the fourth quarter as having a catch up from Q3 because 10.
On the market has a tendency to push to the right because there's still the whole idea of installation and the other things that happened. So feeling good about where we are coming out of the year and I think yeah, I feel confident that we're back to normal.
That sounds good maybe looking out into 2020, I mean, I think municipal spending probably should be in the area. The market should probably be in the area of low single digit growth maybe mid single digit growth you guys have some fairly easy comparisons, particularly with <unk> in the second quarter, there and somewhat into the third quarter.
Do you guys think that there should be any catch up in 2020 do you think we go back to a more normal at more normalized level of demand you may be.
Growing a couple of points above the market just based on the age of those comparisons.
Just any color you can give us on how you're thinking about 2020.
Yeah, Nathan Yeah, we still tend to think about the business more for the long term as it it tends to be difficult from quarter to quarter, but we still feel very confident about the position that we've held that we can continue to grow in the mid to high single digits through through the long term.
Okay. Thanks, very much I'll get back in Q.
Sure.
Your next question comes from the line of Chip Moore of Canaccord. Your line is open.
Morning, Hey, Ken and Karen.
Morning.
One.
Follow up on that last question, maybe you can parse municipal growth just a little bit more.
Domestic versus international.
As you can see an eye.
So basically every product line okay.
Yeah.
We still see similar to what I, just said on the domestic side I think.
From a.
From an international point of view, we continue to focus the team around identifying markets and opportunities.
That's really not any different and on the commercial side, we feel we feel strong about our offering coming out with the three and four inch ultrasonic.
Keeping in mind that commercial is still a pretty small part of the overall portfolio and there is of course, some cannibalization as it goes from mechanical too.
The ultrasonic but.
Still feeling like we've been stating all along this mid to high single digit growth is a spot that we're comfortable with.
Got it.
The more on the quarter. If there was any you know your end business in Mexico or anything in middle east or anything like that on a municipal side. So specific to the quarter. If you think again overall utility up 8% would tell you. We saw similar growth rates in both resi and commercial as you look global and our growth rates domestic versus international realizing again International's.
Very small base there in that region too so there wasn't differentiation either in channel or in.
I agree.
Got it is helpful. Thanks, and you know just a follow up I think you called out.
You mechanical very strong and on Colombia ramping is there anyway to quantify I guess municipal growth, excluding a row, our colombia or you're not back to sort of the catch up idea there any way to parse that at all.
Yeah. So we typically haven't been that granular I would tell you. Obviously, there's an element of that is as weve spoke to in the commentary, but it's not overly significant to the quarter as a whole.
Okay got it thanks, and you just one last one up 80 million plus free cash flow very strong any any changes to how you're thinking about bolt ons versus organic investment and how should we think about free cash flow conversion this year Bob thanks.
Yeah, So maybe I'll speak to the free cash flow mechanics, and then I'll, let can speak about.
Just M&A funnel and and other aspects of that so.
A large part of the both the record operating.
Cash flows as well as the free cash flow conversion is a function of primary working capital as we've talked about continuously throughout the year.
A large part of wrapper efforts in 2019, a was what I I've always claimed and characterized as motherhood and Apple pie primarily on the accounts receivable in accounts payable side of the business like we continue to see the opportunity to improve that as we move forward. We came out of the year at a primary working capital as a percent of sales in that 26.4.
Percent range.
Again consistent with prior discussions all never tell your target in terms of where we hope to end 2020, but we still continue to see an opportunity to improve that number and continuous improvement focus I think with inventory being a bit more of a focus for us as we roll through 2020. So I do continue to see primary working capital improvement as a.
A tailwind for cash flow to think that we can sustain a cash flow conversion at the 155% level with the what I'll call step change improvement made in 19, probably isn't reasonable, but I still think you'd you'd expect than we would shoot for in our goal would be.
Free cash flow in excess of 100% of net earnings as a target with again, a primary capital primary working capital improvement initiatives being a tailwind to that.
Yes, chip and on the second half the question our capital priorities remain the same so we're going to continue to invest in R&D. We have we have some exciting projects again that we're working on this year because maintaining our innovator status.
One thing that we feel is very important for us M&A. The funnel continues to develop nicely on the tuck in acquisition side.
I would I would tell you that we are we have some interesting active discussions, but as I always say don't mean that that don't take that the mean anything is eminent.
And then thirdly, weve increased dividends for 27 consecutive years, and we expect that we would be doing that again this year for a 20 eightth consecutive year. So the capital priorities really haven't changed it's just a matter of continuing to get further down the funnel on execution.
Got it appreciate it thanks very much.
Your next question comes from the line of Andy Stein of burn Sir Your line is open.
Andrew you may be on mute.
Hey, guys, sorry about that.
All right and you [laughter] on the product side, so it looks like your cost of.
A little a product cycle here into 2020.
Somebody stuff you have coming out can you talk to the cadence of adoption do you think this is going to be it really start to see that flow through in the first half second half.
And how does this compared to like Pat past cycles you.
You've had.
Yeah. So so I think if I'm understanding the crushed question correctly I think you're asking if we're expecting in innovation pause with our new new products. This year, so let's kind of walk through it. So the first one we released in the second half the year on the three and four inch.
Again, we're seeing great adoption and that's projecting as we expected so very pleased there.
We're pretty far into the cycle on releasing our flow restriction valve meter so that will see come out this year and again I'm not expecting to see dramatic pauses as we shift because it's just an extension of the product fine we're going to continue doing.
Implement or do you feel the technology into our residential meters, which is more of a an opportunity to continue to increase our are caught or improve our cost position and then we'll continue to build out the a large ultrasonic line. So so overall I feel great about the projects that we're doing and not expecting them to have a dramatic innovation pauses in the year.
And then presumably you're the incumbent on some of these products as there there are you out their existing what I guess, what gives you the confidence that.
Badger meter.
I will be the.
You will see adoption and I guess im trying to get as.
Where are your customer conversations like that you do you feel confident that these will be.
Well to your portfolio.
Yes, So Andrew you don't we in March will be celebrating our 115th year end business and many of our customers have been with us for decades through several cycles of innovation.
So you know the relationships that we have in the ability that we have to walk them through the technology curve and retain them has always been very successful and I certainly don't see that changing as we go into the future.
We have customer we have customer focus groups that every year, we go through where we bring in customers and share with them are our ideas for new products and we really help that guide us on on where we where we take our innovation so feeling very strong about our ability to implement and retain our customers.
Okay, maybe just one last one you cited potential weakness.
And going forward, but gross margin weakness for.
Related to brass.
Call.
I would think.
Yeah, I think as a proxy for Brad copper seems to be down a bit what do you mean by that.
That would be a headwind.
Yeah. So maybe lets just on the on the copper pricing again as a proxy for breast cost to talk about maybe what pricing look like in the fourth quarter here comparatively and then we can talk about kind of the blip I think the market seen here in the in the very recent past. So if we take that sequentially through 19, we started the year, where the with a more favorable.
Copper price position on a year over year basis that rate of influence moderated as the year progressed and really the fourth quarter as I mentioned had a modest price cost dynamics in the margin, meaning to 75, where we spent most of the fourth quarter was basically on par year over year, obviously with copper now in that.
Matt Hi to 50 range I think a lot of that isn't large response to Asian markets quite frankly in terms of productive projected industrial and business demand on the uncertainty there surrounding a health scares and other things.
If I could predict where that was going I probably wouldn't be on this phone call in this capacity.
I'd be I'd be counting my money somewhere else. So I think we just look at it over the long term and say, we're coming off a year, where we had favorable cost dynamics with copper input pricing largely being in the 270 or five range for a large part of the year.
I think when we look forward, we just assume that and to some regard that could that could be an unfavorable headwind.
And so we're just cautioning on that again, that's a single element of our margin equation as we've talked about historically, there's a lot of positive dynamics to our margin profile. Both at the gross margin level and at the operating margin level, but we'll continue to caution that that metaphorical stairway to heaven that everybody just assumes with mix.
The average sell price and operational improvement in copper becomes this thing that continues to step up and that our normalized range of 36 to 40 all of a sudden becomes 38 to 42, we keep coming back to and I keep reminding folks we still are operating in a in a in an oligopoly primarily in the north American market rational.
But still.
<unk> price focus competition.
Comes along overtime and beats that margin expansion down overtime and when you introduce into that the dynamic of a potential copper price change combined with again as we experienced a little bit here in the fourth quarter or some of our installation projects being on a relative basis.
Lower margin installation revenues, we just continue to think hey, we've got six quarters of operating in the higher end of that normalized range that feels good and we'd like to continue to be there overtime.
In copper is a big variable that so I kind of meandered, there through that but wanted to give you a broader view.
View toward operating and gross margins beyond.
I'm, just copper and on the piece I didn't mention of course is the consistent point, we've talked about as with average selling price being a big part of our topline we continue to believe overtime, while still investing organically in the business. We can leverage our sta spend that leads to then expanding operating EBITDA margins overtime.
Got it okay. Thank you will help.
Your next question comes from the line of right Richard Eastman of Baird. Your line is open.
Yes, good morning.
Right you can speak to [noise].
Demand on the ultrasonics side of the business.
Obviously, the new three and four inch kind of commercial meters to market.
And I'm curious when you think about your ultrasonic sales across domestic or cross residential as well as commercial is the demand skewed directionally towards either the commercial market or the residential market.
Yes so.
Yeah. So so I think you know, we see a little but that faster adoption rate on the larger sized commercial meters, just because it's a little better with low flow and you have higher higher volume usage.
Keeping in mind, that's a much much lower volume profile, but but the rate of adoption on the larger sizes is is faster.
In which you would you just say across that ultrasonic product line, both residential and commercial I mean as it is it you know 75% of the meter uptake is on the commercial side, where the payback would arguably be quicker.
I'm trying to get a sense of you know the just competitively.
Kind of where the market is because obviously everybody's all focused on a couple new entrants a that have come in on the ultrasonic side, but.
My understanding is the competitors kind of lack a commercial product line and ultrasonic and I'm just curious if that's where you've seen the faster uptick.
So let me take a swing at this one here so overtime, Rick we've talked about a from a units perspective, our E series product being roughly 15% of metering units and about 30% of metering sales dollars.
When we look at that on a on a commercial versus residential basis remember we've been selling the residential meter much much longer. So we've got 10 years of road hold on the on the residential side and it's taken US 10 years to get to 15% of units and 30% of radios, what Ken or have a revenues excuse me what Ken saying is we think that adoption.
Run rate or that percentage of our units in dollars on the residential side, we continue to expand but at a slow tick versus whereby the commercial side, which for US is really two inches to four inches. The three and four inch has only been out for six to eight months. So we haven't had nearly as long of a road to hold there, but what we do.
See when you look at it on a relative basis is a greater share or a faster pace of adoption largely because of the economics of pay back when you start talking about our low flow capabilities as well as the added enhancements of.
Temperature and pressure they use case becomes a bit easier. So we would expect the rate of adoption on the commercial side to be more rapid then maybe the slow slug that we've seen in residential over the last 10 years and maybe just to add to that we do have cities, where we have the mechanical meters in the residential spaces and they're buying that the few commercials.
And the ultrasonic.
No.
Again.
To be really basic here, but the payback.
Delivered by the larger sizes. It shortens the payback right. I mean is is it any more complicated than that.
Which I think is why you see the adoption trend that worse that we're seeing that we're signaling here.
Okay.
Then just a question around [noise].
Industrial flow business.
Obviously.
You didn't pull in some a year end revenue probably budget flush type stuff that didn't materialize, but im curious as you look out to 20.
The 2020 here, how how does the you know backlog how does it demand feel and is it is it reasonable to assume some modest growth for industrial flow for 20.
Yes, so for the long term, Rick we still haven't moved off our position of being able to grow the flow instrumentation business by focusing on the four main product line product lines that we've been after two or.
To be able to growing the low single digits now the first three quarters weren't great, but but Q4 was obviously a in bed English terms more bad we don't expect that to persist at that rate. We still think we have opportunities to to get some gains in that business. We feel like we've been repositioning when we did our our or chain.
Engine in Europe last year repositioning by markets. So we're feeling good like we can still get into that low single digit range.
Okay.
And I wanted just if I can just flip back for sick into the to the Muni business.
Yes are we at a point is there any visibility where our international business.
Can start to be a driver I know, it's I know it's small.
But you know we made an investment there and it seems to be we've had some kind of choppy sales that that grow and then.
Fall off obviously these projects are completed but at what point.
Is it product offering is it is it reach.
Where international can start to see some more consistent growth.
So can I, just say, yes [laughter] no.
There's there's a a couple of different things that we're working through in one as we've been I think doing a much better job of aligning ourselves to the markets and identifying where the growth pieces are and and really knowing where we need to be Additionally, one of the other projects in our funnel that I didn't talk about before was designing our new.
Static ultrasonic deal flow technology meter for rest of world, which will be coming out with.
Certainly late in your early next year so.
I would not tell you it's imminent, but it is definitely part of our longer longer term view that we certainly have opportunities to grow internationally and be more consistent with it.
<unk>.
Okay, Alright, just to just a really quick one for Bob.
Any any reason.
The tax rate should should change much year over year for 20.
No okay.
Okay and last one for you, but [laughter] lots and lots of discussion around the gross margin.
Leverage.
I think I think we have a good sense of the puts and takes there.
There is leverage in.
I hate to do this to you but SMIGA.
So if we you know again, if we just make the assumption that we might grow.
Mid mid single digits, yes. It is it unreasonable to assume that that the model in the plan here.
Don't convert it to the EBIT line, it maybe a 30% type conversion margin.
Is there any reason not to assume that.
Yeah, So I think that.
Obviously, you're not going to pin me down to that number but I.
I think when we think about the long term you're exactly right in terms of thinking through a leverage and incremental margin a at that level I will tell you. The one thing that we will not sacrificing thing will remain steadfast in his organically investing in the company to continue to innovate Thats a large reason why we.
In the seat that we do a from a historic perspective, and so I think theres opportunities over a multi year horizon, where that trend you discussed would not come true. If we're if were again, putting money into R&D for future benefit, which would then gets you back to where you talked about over the long term so.
Obviously by my bias would be to not shut down a little bit from that incremental standpoint of saying, 30%, but I don't think your logic is too far off Rick Okay, and again predicated on kind of mid single digit growth. So if growth were to slow any given quarter or whatever again that our R&D spikes up as a percent I mean, that's.
That's kind of what you're suggesting.
Yep.
Perfect. Okay. Thanks, guys. Thanks for the time.
Thanks, Rick.
Our next question comes from the line Sandoz, though with Brown Your line is open.
Hi, Good morning couple of a good questions first one on Bob on working capital what I've noticed on accounts payable that beginning in third quarter of last year 19, your year over year accounts payable have grown and same same trend in fourth quarter. Your.
Every year and I'm just gonna wondering did you are you in the process of changing any came in terms are extending the accounts payable terms because it seems like Thursday.
Directional change in your accounts payable as they have kind of increased.
Your balance sheet year over year.
So that's the mother and motherhood and Apple Pie, we talk about from an <unk> accounts payable standpoint, I think on the last quarterly call. We've talked in depth about some of the initiatives. We've done a in terms of parade, owing our top 100 suppliers and pursuing what I'll call advance advantageous payment terms with them. So I think.
Overall, if you looked at a DPL perspective, you'd see that extending overtime and that's largely a result of those initiatives and then the flip side you Didnt ask about it but.
The flip side of 2019 performances that on the accounts receivable side, while still being sensitive to customer relationships and needs and <unk> and the sticky long term relationships. We have we're just becoming a bit more aggressive in our collection efforts and that's in large part what yielded the primary working capital percent as a percent of sales improvement and.
Created the tailwind for current year Freak, <unk> free cash flow and free cash flow conversion.
Okay and second question is on flow instrumentation, I remember back in 2015 2016, when oil had the initial collapse at that time, there was a prolonged six month impact on flow instrumentation sales to the oil and gas business. The weakness that you saw in the fourth quarter.
What end market our customer segment was it was it kind of oil and gas, which was you know.
Hi, historically hurt you back unit three four years ago.
Yes. So this this is certainly a more broad base in general across the myriad of product lines that we have in their oil and gas while that's one of the four targets that we that we're working on is not overly significant in the portfolio of that product line.
And this downturn just more broadly in general is far different I wasn't here in 2015, but I was working in the energy space that was a completely different animal than what we're seeing now when the price of oil went from 110 to 30.
So just more broad based just more of the general things that you're hearing from I'm sure. All the other calls that that you've been on the last week or two.
Okay and can one final one is.
What is your relationship now in terms if any.
I mean I try on the reason I ask that I try and last year.
Introduced their water meter ADW of your comp in the had a investor day, which they presented their water meter and I know historically badger and I try and had a.
Relationship in the U.S., so water meters I, just I'm wondering given now itrons own water meter product available is that it can ship still.
Ongoing or had what's your kind of the.
Status not one.
Well, what I'll tell you assign is that I generally whatnot will not speak.
Particularly about relationships, but what I'll tell you about our product line as we feel very confident that we can compete with anybody we have the best line of meters in the market. We have what we think is a very compelling case on.
On our infrastructure free am I cellular radios are beacon software.
We can go toe to toe with anybody we're prepared to do that we keep a healthy paranoia on every single competitor, whether they be bigger or smaller entrant and we're very comfortable with whatever decisions. Other people make that we're going to be able to fight and continue to to grow our business.
Okay. Thanks, everyone appreciate it.
Sure.
And again, if you'd like to ask a question. Please go ahead Im Press Star then the number one.
Your next question comes from line of Jose Garza of Gabelli management.
Hi, This is open.
Hey, good morning, guys I.
I would say.
Just.
[laughter].
If you could remind us kind of what the a larger deliveries.
In 2020, <unk> I guess.
Primarily but just kind of remind us and then maybe just talk about the pipeline.
Municipal side.
Yes, so so.
Without getting into the specifics the to the two primary projects that we've announced our our Colorado in Columbia South Carolina.
We certainly have other wins that we don't make the habit of of making a lot of small and a.
Different announcements that we considered to be run rate. So those are the two we've made public. So those are the two that I talked about but just in the broad sense, we're seeing a tremendous amount of quote activity. We're seeing a lot of we're having a lot of healthy discussions with municipalities broadly about.
Their ability and willingness to spend into upgrade on am I type projects and I think we're positioned well to continue to win and drive that so those are the two big ones Aurora in Colombia, and just just a reminder, on those projects the product piece of that is over three or four years.
And the software as a service piece of that is over 20 years. So again, just thinking through longer term phase here as you think about those projects.
All right. Thanks, guys appreciate it.
You bet. Thank you.
At this time there are no further questions in queue I turn the call back to the presenters.
Great well. Thank you all for joining our call today for your planning purposes, our first quarter 2020 call. It 10 natively scheduled for Wednesday April 16th So Mark your calendar for that I will be around all day to answer any follow up question.
Great. Thanks.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation.
You may now disconnect.
Okay.
And.
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