Q1 2020 Earnings Call
Good day, ladies and gentlemen, and welcome to the Hany's International first quarter fiscal 2020, <unk> earnings conference call a lots of them placed on the listen only mode on the floor will be open for questions on common following the presentation.
You should work require assistance throughout the conference. Please press star zero on your telephone keypad to reach five operator at this time it it's my pleasure to turn the floor or to your host David deeper.
Controller, and Chief Accounting officer, Sir the floor is yours.
Thank you very much for joining us today with me today or make sure President and CEO of Haynes International and Dan Maudlin, Vice President and Chief Financial Officer before we get started I would like to read a brief cautionary note regarding forward looking statements. This conference call contain statements that are forward looking within the meeting of the private Securities Litigation reform.
Back to 1995 in section 20, Onee of the Securities and Exchange Act of 1934.
The words believe anticipate plan and similar expressions are intended to identify forward looking statements. Although we believe our plans intentions and expectations regarding or suggested by such forward looking statements are reasonable such statements are subject to a number of risks and uncertainties and we can provide no assurances such.
Plans intentions or expectations will be achieved.
Many of these risks are discussed in detail in the company's filings with the Securities Exchange Commission in particular Form 10-K for the fiscal year ended September Thirtyth 2019.
The company undertakes no obligation to publicly update or revise any forward looking statements whether as a result of new information feature events or otherwise with that let me turn the call over to Mike.
Good morning.
Haynes has had great momentum for the past year.
Putting above average revenue growth in our slice of the industry.
A meaningful improvement in gross margin percentage.
And significantly improved profitability and cash flow.
Our initiatives related to safety pricing cost volume cash and overall business process development continued to show excellent progress with meaningful improvements in our performance.
Based on the actions taken and the results driven by our team at Haynes because pushed the following very significant items.
Our safety rates have continued to improve we completed a calendar year 19 within osha recordable rate well below that of calendar 18.
We've lowered our earnings break even point significantly by improving pricing in reducing costs generating $3.3 million in earnings in our first quarter fiscal 20, despite shipping only 4.2 million pounds in the quarter.
Over the past five quarters, our sequential gross margin as a percentage of net sales rose from 10.6% in Q1 fiscal 19% to 11.5% in Q2.
14.4% in Q3 and to 16.4% in Q4, and now to where just reported 17.3% in Q1 fiscal 20.
Our Q1 gross margin of 17.3%, it's 670 basis points about the same quarter last year and our operating profit was $7 million higher than last year's Q1.
Our cash balance sheet increased to 33.6 million at December 31st 2019.
The progress in performance of our business has been excellent.
Our team is now focused on continuing improvement in each of the following our safety performance.
Share gain in certain key accounts.
Continuing to price for value.
Cost containment due to a lower volumes product yield and cost improvements staying close to our customers and managing our inventories. In addition, we remain very well positioned to supply into the growing current and new generation Aero engine platforms, most notably with our patented Haynes 282, and Haynes 244 hours.
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With that said as you have written or first quarter earnings release, the uncertainty around the Boeing 737, Max build schedule and other significant issues and now are now, causing volume reductions across our aerospace customer base that we believe we'll continue to impact our business throughout fiscal 20.
The duration of the current 737, Max build shutdown is obviously still uncertain.
Well the 737 Max is the majority of our projected reduced demand in fiscal 20. We were also experiencing additional demand reductions there was demand issues are as follows.
First we experienced slower overall summer bookings due in large part to nickel volatility an Arab aerospace supply chain inventory concerns.
In addition, we were seeing reduced demand for material for the engines are the Athree 20, Neil primarily due to an inventory build in the supply chain it impacting our customers production activity that will continue.
In early calendar year, 2020 next our U.S. and European based aerospace customers are working through a fairly full supply chain and earn in inventory reduction mode across many of the platforms they supply.
Finally, we have seen base business <unk> slow this quarter likely related to China trade tariffs are typical seasonality issues as well as global an economic and political concerns.
We look at these overall demand in volume reductions as a significant but temporary pause in our growth remain enthusiastic about the actions we've taken any impact did they are having on our business.
Our team will proactively managed this demand low and we're also taking the necessary actions to prepare for the anticipated return of robust aerospace demand.
Now as far as details for the quarter.
Volume shipped in the quarter was 4.2 million pounds, which was 1.2 million pounds lower sequentially in Q4 of fiscal 19, and 100000 pounds lower than last year's Q1.
We are typically impacted in fiscal Q1 by planned maintenance outages holidays and customers managing their calendar yearend balance sheets. However, in addition to that as I previously mentioned, we believe uncertainty in the aerospace market with the graph grounded 737, Max along with.
The other demand reduction issues, so as such as lower base business C. <unk> C. P <unk> impacted the quarter.
Net revenues were 105 hundred $8.5 million in the first quarter fiscal 2020, which was 1.3% higher than last year's first quarter.
Other revenue contributed to this increase was solid increases in toll conversion over the past year average selling price in the first quarter fiscal 20 was $25.69 per pound inclusive of our other revenue up about 3.9% over last years first quarter.
With that let me move to our key markets.
Sales to the aerospace market accounted for 54% of our revenue at $58.8 million in the first quarter fiscal 20. This represents an increase of 7.9%.
From the same period last year due to a 9% increase in volume, partially offset by a 1.2% decrease in average selling price per pound.
The increase in volume is due to the planned outage that was undertaken last year in the first three months of fiscal 19, partially offset by lower shipments as the supply chain was beginning to be impacted by the aerospace issues previously mentioned.
Sequentially revenue in aerospace market declined 13.9% in the first quarter fiscal 20 compared to the fourth quarter fiscal 19.
Backlog dollars in aerospace decrease sequentially from Q4 to Q1 by 1.4%.
Sales to the chemical processing market accounted for 15% of our revenue at $16.7 million in the first quarter of fiscal 20.
This represents a decrease of 11.7% from the same period of fiscal 19 due to a 12.2% decrease in volume, partially offset by a 0.7% increase in average selling price per pound.
Business volumes have decreased in the first three months of fiscal 20 in the same period of fiscal 19, partly due to a decrease in sales to China driven by continued retaliatory trap tariffs.
However, partially offsetting this base business decline was an increase in specialty application project revenue in the first three months of fiscal 2000 compared to the same period last year.
Sequentially revenue in the chemical processing market declined 39.8% in the first quarter fiscal 2000 compared to the fourth quarter fiscal 19 due in large part to seasonality issues, China tariffs and lower special project shipments backlog dollars and Cpis decreased sequentially from Q3 to Q4 by four per.
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Sales to be industrial gas turbine market accounted for 13% of revenue at $13.8 million in the first quarter fiscal 20. This represents a decrease of 2.3% from the same period of last year due to a decrease of 3.9% in average selling price per pound, partially offset by 1.7.
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Small increase in volume is primarily attributable to a slight increase in large frame turbines, which represents a favorable turnaround after the previous quarters of reported demand weakness.
However, partially offsetting this is a slight decrease in demand in the small and medium frame engines, which has slowed down mainly due to the oil and gas market. Overall, we still believe challenges remain in the industrial gas turbine market sequentially revenue. When this market declined 12.8% in the first quarter fiscal 20 compared to.
The fourth quarter fiscal 19.
Backlog dollars in the industrial gas turbines increase sequentially from Q4 to Q1 by 31.8% coming off a very little levels, we continue to see meaningful potential opportunities here for market share growth for hanes.
Other markets accounted for 11% of revenue at $11.9 million in the first quarter fiscal 20. This represents a decrease of 16.9% due to a 39.9% decrease in volume.
Partially offset by 38.3% increase in average selling price compared to the same period of fiscal 19.
The decrease in volume was primarily due to a decline in sales to the flue gas desulfurization market.
The increase in average selling price reflects a higher value product mix and improved pricing sequentially revenue in the other markets increased 7.6% in the first quarter fiscal 20 compared to the fourth quarter fiscal 19 backlog dollars in our other markets increased sequentially from Q4 Q1 by 1%.
Yeah.
Other revenue accounted for 7% of revenue at $7.3 million in Q1. This represents an increase of 40.3% from the same period of fiscal 19.
The increase was primarily due to increased toll conversion sequentially. Other revenue increased 8% in the first quarter fiscal 20 compared to the fourth quarter fiscal 19.
One final item before I hand, the call over to Dan.
I wanted to acknowledge the important message sent by the CEO Blackrock, our largest shareholder and his recent letter to Ceos.
I think has urged the company's in which Blackrock invest to address the issue of sustainability and risk management of climate change related issues.
We take seriously our responsibility for responsible environmental stewardship as willing as well as being aware of the impacts we have an all stakeholders at Haynes.
10 in the coming months to work with our board and management team to evaluate our practices in disclosures as they relate to sustainability and climate change risk and we will report in due course, when our progress in assessing and managing the risks related to these issues now let me turn the call where the Dan for more details on our financials.
Thank you Mike.
This quarter, we achieved a gross margin as a percentage of net sales of 17.3%. This is our highest gross margin percentage in 16 quarters going back to fiscal 2015, which was a year with many special projects.
The solid gross margin percentage. It shows the traction we are achieving in our improvement focus initiatives related to better pricing lower costs and better efficiency.
In addition, it has lowered our earnings breakeven point lessening the absorption impact when volumes are lower.
This quarter, we generated 3.3 million in earnings despite volume of only 4.2 million.
The gross margin headwinds that we discussed in prior year fiscal 2019 related to cobalt and our cold, finishing upgrade have alleviated as expected.
As we move through fiscal 20 additional challenges exist. Three notable challenges include number one aerospace market uncertainty outlined in detail already by Mike.
Number two tariffs that remain on product we ship into China. This is unfavorably impacted our base business chemical processing volumes and continues to be a difficult competitive environment with non U.S. producers.
And number three property insurance as we mentioned last quarter the market for property insurance has tightened dramatically.
There is much less capacity available, which is resulting in an additional annual expense of $2 million recognize primarily in cost of sales.
The specialty application projects this quarter were $8 million compared to last year's first quarter of 6 million and compared sequentially to Q4 of F. why 19 of 9.6 million.
We achieved a better margin percentage and these special projects. In Q1, then was achieved in any quarter of last year.
Moving down the piano SGN, a including research and technical expense was $12.4 million in the first quarter fiscal 2000.
This is 400000 higher than the same period of last year, which related primarily to foreign currency changes.
We expect SGN, a including research and technical expense in fiscal 20 to be approximately $50 million.
With a solid gross margin percentage operating profit improved by $7 million in the first quarter fiscal 2000 compared to the same period last year on only slightly higher revenue.
Nonoperating retirement benefit expense and the piano was $1.7 million, which nearly doubled compared to last year's Q1 of 900000.
This was due to the 932019 valuation in which the discount rate declined which significantly increased our liability on the 932019 balance sheet and has now increasing fiscal year 20 annual expense by $4.8 million as compared to fiscal 2019.
Approximately 3.4 million of this increase is reflected in nonoperating retirement benefit expense on the piano or 850000 per quarter.
And the remaining 1.4 million or 350000 per quarter is an increase in cost of goods sold.
And to finish off the piano, our effective tax rate for this quarter was 26% and net income was 3.3 million or 26 cents per diluted share.
Backlog increased 1% over the first quarter to 237.6 million at December 31st 2019, and it was relatively even with backlog at the end of the first quarter of last year.
As Mike pointed out the backlog increase was driven by the industrial gas turbine market.
Outlook for next quarter.
We are anticipating a continuation of the reduced demand into the second quarter fiscal 2020 due to the uncertainty in the aerospace market surrounding the Boeing 737 Max production.
As we manage through these issues our improvement initiatives continue to positively impact our results.
We expect revenue and earnings in the second quarter fiscal 2000 to be higher than the first quarter fiscal 20, as we move past seasonality issues that impacted the first quarter.
Compared to last years second quarter, we expect revenue in the second quarter fiscal 20 to be lower than the prior year second quarter fiscal 2019, However earnings are expected to be higher than prior year.
Moving to liquidity, we continued to have zero borrowings on our credit facility at December 30, Onest 2019.
Cash on the balance sheet was $33.6 million, representing a 2.6 million increase over the quarter and a 22 million increase compared to the ended the first quarter of last fiscal year.
Net cash provided by operating activities was $7 million in the first three months of fiscal 2000 in spite of cash used from increasing inventory of 20 million.
Offsetting a portion of the inventory was cash generated from accounts receivable was solid cash collections from the previous quarters higher sales and profitability.
The inventory increase this quarter was due to a few different factors number one lower shipping levels left a bit more and finished goods than normal number two when production slows and melt shop consumes less scrap.
The hard scrap in inventory typically increases.
And number three we have placed strategic inventory and work in process semi finished and finished inventory stages to allow for quicker response time when demand improves, especially in the aerospace market.
Heading into Q2, we expect inventory to drop moderately as we work through excess scrap at our Kokomo mill.
A more substantial reduction would be contingent on the timing of a bounce back in orders expected once the aerospace uncertainty is resolved.
Capital spending was 2.3 million in the first quarter fiscal 2000, <unk> as compared to our depreciation level, a 4.8 million for the quarter.
The forecast for capital spending and all of fiscal 20 is $12 million.
In conclusion looking forward, we see short term challenges with which are expected to impact our fiscal 20 volume levels.
Our team is managing through this period of lower demand and we believe that we will continue to show positive momentum stemming from the execution of our improvement initiatives [laughter]. This combined with our continued strategy of thoughtful capital allocation is designed to enhance shareholder value over the long term.
Mike with that I'll now turn the discussion back over to you.
Thanks, Dan.
We've made steady progress as we first launched and then implemented or series of focus improvement initiatives designed to improve the performance of our company.
As we look forward, we see short term challenges in aerospace market, which are expected to impact our fiscal 20 shipments. Our team is managing through this period of lower demand and we believe that we will continue to show positive operational momentum stemming from the impact of our improvement initiatives.
Before I hand, the call over to questions one more thing.
I would like to welcome our New Board member General Larry Spencer retired United States Air Force Forestar General.
We look forward to working with Larry and leveraging his experience and leadership skills gain in the air force and through his extensive knowledge of the aerospace industry. We're fortunate to have a person of larry's accomplishments join our board.
With that cat, let's open the call the questions.
Thank you the floor is open for questions.
Ask a question on the phone. Please press star one on your telephone keypad at this time if your question has been answered.
You could remove yourself from the Q by pressing one again, ladies and gentlemen that star one and our first question comes from Edward Marshall from Sidoti and Company go ahead Edwards.
Hey, good good morning, guys very very nice job on the on the gross margin there. Good morning. Thank you. Thank you.
Im curious you've you've got property insurance.
Pension higher pension costs, lower raw materials, and the impact of that that flow through on the gross margin I'm I'm curious as we talk about.
Take even points.
What do you think the new level is from a volume perspective.
As it runs through your mill lot of.
Variables there to consider.
Yes. Good question I mean, we have previously mentioned, we need to get to that 5 million per pack 5 million pounds per quarter level to really alleviate that headwind and we were certainly below that this quarter at 4.3, and still generating 3.3 million in earnings. So we would expect our new breakeven point to be some.
But lower than the 4.3 million pounds.
Actually what that is I'm not sure.
You mentioned raw materials this quarter, we had a.
I really an increase in raw materials, it's sense decreased.
The current levels, but that increase had only really a slight.
Tailwind to margins and helped margins, but really only a moderate or slight level. It it's Mike.
For us the key and we've talked about this for quite a while the key is truly finding ways to change this business by increasing our gross margin and driving as you said the breakeven down.
The large majority of this is related to the price increases cost reductions, which are occurring throughout the company. So we're proud of that and we're thrilled with where it's taken us given the 4.2 million pounds that we shift.
Got it and maybe I can ask at a different way that maybe you talked about best in class margins and I'm I'm curious what are you targeting not not necessarily from.
From a.
Overall number perspective, but.
Maybe maybe from a timing and then ultimately where do you think breakeven points could go.
As volume increase as your business improves your cost scenario improves I don't think we've seen the end of where we can go and gross margins I think there's room to continue to improve them. Obviously, we have some headwinds related to absorption. It at the volume levels. We have but you know as I've said before to be best in class, we've got to be north.
So where we are now at 17 three and.
Continue to look percentage 0.5 percentage point increase we're far from done in what we're trying to do related cost reduction throughout our operations and even eke out incremental price increases even in this environment. So.
There's there's more out there we've got to get some buying back obviously as the markets cooperate.
Yes.
You talked about arrow volumes this year and I'm curious.
When I think about the trajectory of of Arrow volumes in 2020 give a sense as to what the impact might be for four Haynes has been through from a volume perspective, Yes. Let me give you. Some facts. We've obviously spent a fair amount of time and this and and honestly is everyone says we have also.
So stayed very close to our customers and and have tried to understand where they are and they are still learning theres still trying to figure this out both on the airframe and on the engine side, but when you take a step back and look at the Max any impact our estimate is the Max is about 8% of our volumes.
And.
When we say that obviously, we know fundamentally there are.
Very good trends in the industry, you've seen them as I have with with where they were Airbus has gone 18 to 19 with Athree hundred 20 has gone.
777, now coming online even with the Gen GE, NYNEX, which our with our proprietary alloy and so we've got good stuff going there, but going back to the point, we've got 8% estimated volume in 737.
In addition to that and I referenced it on the call.
Brad Whitney 1100 engine again to the Athree 20 proprietary alloys, we were trying to catch up for probably a year and make sure. We did a great job in supply what we did a great job and now that supply where the supply chain. There is full but that you know as we move into this calendar year that will drop off also we know what's happening early production.
What we've seen with their customers is some cautiousness and some cash conservation so our customers are saying beyond the 737.
If they have platforms with full supply chains will pull back a little on that.
The offset to that of course is military and defense is good MRO continues to be strong.
So it's we certainly you're going to see an impact when we look at our business overall.
We did 105 point $108.5 million in the quarter and typically rough number 23% plus or minus of our sales are in that Q1. So gives you feel for wearable big.
Got it got it thanks for that that thanks for that color.
One for me.
You're generating earnings again, you're.
You've done that for a couple of quarters now on your you that's leading to better cash you talked about some inventory initiatives and some receivable you know kind of pluses and minuses around your receivables but.
I am looking out as we start to generate more cash you. Some may say, you're slightly under levered from this point.
Is there any change to maybe the capital allocation, what you might do from.
So from from from using your balance sheet, a little bit too.
To kind of spurrier growth any thoughts.
A couple of things there I can't talk about capital allocation unless I mentioned, the fact that we did build $23 million of inventory in the quarter and our Dan spelled out in his script. The reasons why and it's got to continue to find ways as we get a handle on the business in the volumes that will be dealing with and in driving that down and I'm confident we will be able to do that as we.
Move forward as from capital allocation standpoint.
Number one priority for me is to look ahead.
Try to look around the corner and prepare ourselves when when the aerospace business gets out of this having flexible short term inventory available. So we've invested some money as as our volumes of drops in putting inventory in and what we call. Our supermarket. So we have short lead time potentially higher price opera.
Todays when this thing begins to turn around and so that's number one number two we're always looking to make sure that we enhance what our core competency is which is our technical strength so bringing the people when we talk about this in the last call, bringing the people we need to bring in a way to make sure that we continue to maintain or lead.
What we are doing related to our alloy and our market development.
Beyond that obviously, we've got the pension and we in the board look at the pension everyday and then beyond that obviously, we will work with the board and tried to determine whatever's best for shareholders. We will look to do.
Great. Thanks for your comments, Mike Dan I appreciate it.
Got it.
And our next question comes from Michael We shot from Keybanc capital markets go head Michael.
Michael are you on mute.
Cat, we're not hearing anything on our.
Yeah, I'm not here he must be on mute.
Again, ladies and gentlemen at Star one to ask a question on the phone.
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Michael.
Yes, Hello, I'll, then you are okay Oh.
Hey, good morning, guys, sorry about that.
So firstly I just wanted to ask about the magnitude of the nickel price tailwind in the first quarter, two gross margins and kind of whats your forecasting there to to see in to Q, assuming prices remain around the levels there at right now.
Right.
You know for us being.
Bill and service centers and global service centers, you know generally were long and nickel so.
An increase in nickel, which happened.
From the quarter, we're talking about here would be.
A bit of a a tailwind and expansion of margins, but really it's it went up for such a short time, that's a pretty.
Small impact for for this quarter, we measured it well under a million dollar so.
You know since then prices have declined.
Nicole I think is now around the 575 level at least the was yesterday, so that would would likely unravel as well, but still a very small negligible amount on our earnings and earnings per share.
That out okay, yet in and then you mentioned you're seeing some of the adjustments in the supply chain outside of the 737 Max.
Can you provide any more color around what you're alluding to there or if there any specific platforms more prominently associated with the shifts that you're seeing in the supply chain sure.
A couple of things on our end I mentioned, this and I was responding to Ed.
We are we have proprietary alloys and the Pratt Whitney engine, which is going in the Athree 20.
And that we are now in a position where the supply chain of our customer is fairly full so that is something which is a temporary issue, which will bounce back early in this calendar year than the other thing in general terms, obviously, we're not supplying directly to the engine manufacturers or to the airframe manufacturers were supplying the customer.
Does that have.
Products going into various platforms and what we've seen from them is a concern on what will be coming with a 737, so they're a bit more cautious about what else. They have everybody for the past year and a half two years has been catching or has been running to catch up to make sure their inventory supply chains are full they've done that and.
And so they're being a little more cautious across platforms not necessary not necessarily a specific product just starting to bleed off some of their inventory in their supply chains.
Okay.
And then looking at your your other market segment. There was very strong pricing you realize there in the quarter could you talk a little bit about what products drove that increase in pricing. If you. If you view that sustainable going forward.
Yeah that market, obviously, you know other markets category have many different in diverse sub markets to it so really when you see changes in average selling price there, it's likely more related to product mix than it is pricing I mean, certainly we're always pushing pricing on our high value differentiated products and answer.
Only anything with the contract not so much in other markets, but you know a lot of annual contracts come due here in January so, we'll certainly be pushing it there as well but.
In other markets, it's really a mix issue more than a more than price increases.
And then just lastly from me.
Any long term aerospace contacts or contracts that are on the radar that might be coming up for renewal or in negotiation process.
We have contracts that come up throughout the year for US typically January is the heaviest period for us.
We've negotiated those contracts, we feel good about where where we've ended up related to pricing on those.
But this is an ongoing process for us and nothing.
Out of the ordinary so we'll just keep pushing along and.
Working very hard not to make sure to make sure our pricing momentum continues.
Got it thanks, guys. Thank you Mike Thank you.
And we have had Marshall again from Southern Company go ahead outdoors.
And your life.
I'm sorry, that's a that's a mute function that I forgot.
In quarters past few.
You provided kind of some color or some granularity around the backlog dollars.
Curious if you can kinda talk about so I can get to gauge on the order book.
Mainly between the three different segments and how the components my have grown or slowed and in backlog in the fourth quarter in the first quarter.
You have that detail.
Yes, I mean, we kind of outlined it up a bit in and Mike script.
As I mentioned as well the the big increase that we saw.
Within the industrial gas turbine market, so that had a pretty substantial increase in the backlog and that is really.
A a market that's coming off the bottom.
So we're seeing some signs of life, there, especially in the larger frame engines, which you know in our past calls weve.
Been pretty pessimistic on the large frame power generation and that seems to be having a little more.
Improvement than we've seen and some of the small frame.
Medium frame is slowing down a bit but of course are offsetting that is large frame. So that went up pretty dramatically before you go on just a point of color I admit yesterday, we want to our sales guys and obviously, we go through the markets and what's going on in for the first time and.
Well since I've been here when I brought up large remind you t. as isolate often talked about some potential opportunity. So we're at the bottom we're bouncing off the bottom, but it's good to hear some positive comments, our Dan, but that's fine and you know aerospace went down slightly at 1.4% backlog in dollars.
Kind offset by other markets went up 1%.
CPI down, 4% and I think thats related to what we've been speaking here about the that China, retaliatory tariffs and and all that and we certainly have our eyes.
Opened to the Corona virus and what that May due to the to the markets. Obviously, we're not really pulling that much products from China, we're more shipping into China.
But if the overall economy of China slows that would be a headwind to us, but we're keeping our eyes on that as well.
Got it and to Mikes previous question.
About about the other markets would there be represent.
With that represent less flue gas desulfurization, I mean with that improve the mix dollars per pound that's being shipped in that business said.
I think you said in the press release that you saw losses that content, yes, FTD for us has potential to have some volume, but very very low margin. So we continue to.
Look at that market to understand if we can continue to find ways to reduce our costs, but that is a when it's in here at higher volume and it's very low margin.
Got it. Thanks again guys. Appreciate thank you Ed Thanks.
Okay.
There appear to be no questions in the queue I'd now like to turn the floor back to make sure. Thanks, Scott. Thank you everyone for your time today and thank you for your interest in support of pains. We look forward to updating you again next quarter.
Take care.
Thank you. This does conclude today's conference. We thank you for your participation you may disconnect. Your lines. At this time, then have a wonderful day.
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