Q4 2019 Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the Common Corporation fourth quarter 2019 conference call.
I'm, all participants I know listen only mode.
After the speaker presentation, there will be a question and answer session.
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When I like to hand, the conference your speaker today, Jimmy Coogan, Vice President Investor Relations and business development. Please go ahead Sir.
Good morning, I'd like to welcome everyone to commands fourth quarter 2019 earnings call conducting the call today are Neal Keating, Chairman, President and Chief Executive Officer.
And Rob Star Executive Vice President and Chief Financial Officer.
Before we begin I'd like to note that some of the information discussed during today's call will consist of forward looking statements setting forth our current expectations with respect to the future of our business the economy and other future events.
These include projections of revenue earnings and other financial items.
Treatments on plans and objectives of the company or its management.
Statements of future economic performance and assumptions underlying these statements regarding the company and its business.
The companys actual results could differ materially from those indicated in any forward looking statements due to many factors. The most important which are described in the company's latest filings with the Securities and Exchange Commission.
Excluding the company's 2019 results on form 10-K, and the current report on form 8-K filed yesterday evening together with our earnings release.
We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in applicable FCC rules and regulations.
Reconciliations to the company's GAAP measures are included in the earnings release filed with yesterday's 8-K.
Finally, please note that in light of the sale of our former distribution business. The focus of today's earnings discussion will be on the results of continuing operations of the company.
With that I'll turn the call over to Neal Keating.
Thank you Jamie.
Good morning, everyone and thank you for joining our fourth quarter 2019 earnings call.
I'll start this morning by providing some highlights on the quarter in full year, followed by an operational and business update before passing the call over to Rob for a more detailed discussion of our financial results for the quarter and expectations for 2020.
Overall I'm pleased with our results for the for fourth quarter as revenue grew 7.7% to $237.8 million driven by strong demand for our J.P.S. and specialty bearings products, which contributed to fourth quarter operating margin at aerospace of 18.
<unk>, 0.9% or 19% adjusted.
Touching on our full year results sales an operating margin at aerospace we're at the high end of our outlook for the year.
Sales from continuing operations increased 3.5% over 2000 $18 million to $761.6 million.
This growth was impacted by an unfavorable foreign currency headwind of $6.5 million and the absence of $8.3 million in sales from our former UK tooling and engineering services businesses, which were divested in 2018.
Excluding these items the underlying business had topline growth of 5.5%.
Operating margin at aerospace for the year was 17.1% were 17.2% adjusted.
Contributed to the 62% increase in operating income from continuing operations over the prior year.
2019 was a transformational year at command as we laid the foundation for future driven by our strategic repositioning of the company into a leading provider of highly engineered products, which began with the divestiture of our distribution business in August of 2019 for approximately.
$700 million.
Shortly thereafter, we announced the acquisition of ball seal engineering, the largest acquisition in our history.
Paul Seal is an industry, leading provider of highly engineered seals springs in context, we successfully closed the acquisition on January through and we welcome the management team and 600 employees around the globe to the command organization.
The addition of ball steel enhances our position as a leading provider of highly engineered products.
Broadens, our access to high growth markets, such as medical technologies, and industrial applications and delivers both margin expansion and cash accretion in year one.
The integration of ball steel is tracking to our internal expectations and the teams are working closely to identify synergy opportunities throughout the organization.
Additionally, in the fourth quarter, we continued to make progress and reducing our general and administrative expenses and are focused on achieving our previously stated cost reduction goals.
Although we made significant progress in 2019, our transformation is still in the early stages.
We continue to pursue additional acquisition opportunities that fit well with our strategy.
We have significant financial capacity with approximately $700 million in cash and debt available to deploy and are seeking companies that will strengthen our current competitive position and provide improved long term growth opportunities.
To that end, we will remain disciplined in our approach inpatient and identifying opportunities that fit our strategy culture and internal return metrics.
We've also been investing in our operations across the globe.
These investments are designed to help us meet future demand to reduce lead times and as importantly to improve overall efficiency.
In addition, we have increased our investments in new products to position us for future growth.
Some examples include the next generation of unmanned capabilities and the development of a composite rotor blade. So the K Max new munitions sensor technologies, such as how does height of burst and advanced materials for our specialty bearings, which will enable us to expand into new applications.
In our J.P.F. program, we shipped over 15000 fuses in the fourth quarter and a record 41429 fuses for the full year.
During 2019, we secured two additional J.P.F. dcs contracts, which added more than $90 million to backlog and we continue to see strong demand for this product.
Our J.P.F. backlog at the end of the year is over $350 million and we expect unit deliveries in 2020 to increase to between 45050 thousand even above the record levels in 2019.
Our specialty bearing and engineered products sales growth was led by herself lubricating products and engine aftermarket components and these products contributed nicely to our operating profit performance for the year.
We saw strong order rates for these products throughout 2019 and ended the year with record order intake.
And.
We were pleased to see that this momentum is carried forward into 2020 with order rates up significantly over the same period in 2019.
Currently we project the grounding a Boeing 737, Max will have an approximately 12 million dollar impact on our topline results in 2020.
However growth in the underlying business remains strong due to the increased order rates across our diverse range of products and platforms and the strong backlog in the remainder of the business.
Moving to our Chemmax program, we continue to see good traction as we work to expand both our capabilities and customer base.
We've made great inroads with operators in North America, Europe, and Asia and are continuing to look for ways to expand the reach of our sales efforts to new operators and geography.
Just recently, we announced a strategic distribution agreement focused on K Max opportunities in the United Arab Emirates and across the Middle East.
Another step in our market expansion efforts.
During 2019, we also saw a significant improvement in our structures programs not only did we recognize this improvement in our financial results, but we were honored by a number of customers with supplier recognition awards during the year.
I'm pleased with the progress we've made and want to thank our team for their continued efforts in driving improved performance across our structures programs.
As you would expect we're closely monitoring the situation in China and elsewhere regarding the Corona virus at this stage, we're not seeing any significant impact to our business worst associated supply chain, but remain diligent in assessing any potential impacts to command.
In closing.
I'm very proud of the work we completed in 2019.
The progress we have made positions command for future growth will enable us to better serve our customers needs and drive long term shareholder value.
It's been a very demanding time, it command and I would like to thank all of our employees for their continued efforts as we work together through this transformation.
Now I'll turn the call over to Rob for a closer look at the numbers Rob.
Thank you Neil and good morning, everyone.
Net sales for the fourth quarter increased 237.8 million or 7.7% when compared to the prior year driven by our deliveries of JP FTC Es revenue recognized on R.J.P.S.U.S.G. program and higher volume for especially Baron products.
We delivered strong gross margin performance, 30.5% for the fourth quarter. However, the margin was modestly lower than the comparable period in the prior year due in part to the mix of JP of cells in the quarter.
Operating income and aerospace was 45 million a 7.9% increase over the 41.7 million earned in the fourth quarter 2018.
Operating income from continuing operations decreased to 14.8 million from 24.1 million in the prior period due to 7.1 million and corporate development and transaction costs 3.5 million and costs associated with the transition services agreement with our former distribution business.
And the mix of JP have cells in the period relative to the fourth quarter 2018.
On an adjusted basis operating profit was 30.2 million or 12.7 of cells when compared to the prior year period of 34.9 million or 15.8% of sales.
Diluted earnings per share from continuing operations of $1.22 increased significantly over the prior year, a 56 cents primarily due to the benefit we receive from an election to change the treatment of our UK entity for U.S. tax purposes.
Adjusting for this and the number of other items diluted earnings per share. It was 80 cents in the period, representing a strong finish to 2019.
Corporate expenses increased two activities associated with the acquisition of ball seal and costs related to our gene a reduction initiatives.
We have made good progress on these initiatives and exit 2019, with approximately 5 million or realized savings and clear line of sight to the high end of our previously stated range.
As a reminder, pursuant to the terms of the distribution sale. We have agreed to provide certain services such as tax treasury human resources in IP as they transition away from commands shared services.
While most of these activities have been transition we are continuing to transition the eye to services and expect to fully separate by the third quarter of 2020.
We will continue to report both the associated costs and income on a quarterly basis.
During 2019, we incurred a net expense of 1 million and expect to incur approximately 2.2 million and that expense for these services in 2020.
Moving to our outlook for 2020.
We expect sales in the range of 860 to 880 million.
We anticipate organic sales growth of 1% to 3% with ball sale contributing approximately 95 million to our topline performance for the year.
Our organic growth expectations are slightly muted by the impact of an approximate 12 million dollar headwind from seven to seven Max and a 13.5 million had one from the completion of our SH two program with Peru, and lower volume on our age once the program.
This implies that the remaining business expects organic growth of approximately 5% in 2020.
Operating margins of 5% to 6.7% include cost related to our DNA initiatives corporate development activities.
And transition services for our former distribution business of 10.3 million as well as 32 million a purchase accounting expenses related to ball seal.
Adjusted for these items, we expect consolidated operating margins for 22 20 in the range of 10% to 11.5%.
We expect to deliver adjusted EBITDA margin at the consolidated level in the range of 14% to 15.5% a 175 basis point increase over the midpoint of our adjusted EBITDA for 2019, and a 650 basis point improvement over our 2018 results inclusive of distribution.
This anticipated improvement in adjusted EBITDA over 2019 is due to the expected sales mix in the year. The addition of higher margin sales from ball seal improved performance from our structures programs and a partial benefit from our cost reduction efforts.
We expect cash flow from operating activities from continuing operations in 2020 to be in the range of 85 million to 95 million leading to free cash flow 60 to 70 million.
Additionally, we will see net periodic pension benefit of approximately 16.5 million.
Expect interest expense for the year of approximately 15 million estimate our annualized tax rate at approximately 23%.
Finally, consistent with prior years, we expect the cadence of earnings to be weighted towards the second half a 2020 with approximately 35% of earnings in the first half and approximately 65% of earnings in the second half the 2020.
With that I will turn the call back over to nail.
Thanks, Rob.
We are well positioned as we enter 2020 to drive value through strong execution across our businesses and corporate initiatives. Finally, I would like to thank our employees for their hard work during the year.
All of US are excited about the opportunities ahead in 2020 and look forward to updating everyone on our continued progress with that I'll now turn to call back over to Jamie Jamie.
Operator may we have the first question. Please.
Thank you I saw in mind that to ask a question you would need to press star one on your telephone to withdraw your question pest the pankey.
Please standby, we compile the candy roster.
First question comes from Steve Barger with Keybanc capital markets. Your line is now open.
Hey, good morning, guys.
Thanks, Steve Martin Steve.
Rob just thinking about the organic growth guidance and I heard you go through the puts and takes there do you expect positive organic growth in all four quarters.
Yes, I know that that's an excellent question, Steve and I think the answer is most likely yes. There may be you know as you can appreciate in particular with or J.P.F.
A small change in shipment timing can move cells meaningfully between quarters.
That's affectations would be yes.
Okay.
And the midpoint of the guidance range suggests incremental operating contribution margin of about 90% plus or minus on what will be low double digit growth.
And a lot of that growth I know, it's coming from ball steel, which I think is higher margin. What can you talk through what's kind of keeping a lid on incrementals. If you see it that way or what the longer term expectation is for incremental margin on the portfolio you envision.
Yeah.
Yes, Steve you are correct I mean, we're certainly seeing a benefit at 18.5% at the mid range and I think what's important to recognize is that as we continued to make improvement in our in our cost structure.
As as we got to exit out of 2020, we certainly depending on the growth of ball seal and some of our higher margin businesses could certainly see some upside to that we don't provide guidance on 2021, but we certainly do there is opportunity and that's why we're very focused on DNA reductions and efficiencies.
Well I guess as you think about the portfolio and how you think about M&A going forward would you think that this kind of 18 and <unk> percent as more of a floor to be beaten in the future or is this how you think about the incremental of the portfolio.
Yeah, I think there I think there is opportunity Steve based on M&A to to the certainly do better when we think about the focus of our M&A efforts on highly engineered products relative to the balance of the portfolio. So certainly depending on M&A activity, which is hard to predict.
We could see upside to that and we're certainly focus on improving our cost structure to really improve incremental margin.
In north.
Yes, and so last one for me I know, it's not built into the guidance and I heard you just say, it's hard to predict but do you think we should reasonably expect incremental revenue and EPS contribution from new M&A based on what you can see in the pipeline right now for 2020.
Yeah, Steve I really can't comment on that.
As you can appreciate we do have an active effort to identify M&A targets.
But those transactions are very difficult to predict. So we are we are diligently working in as.
Neil alluded to we do have significant capital our balance sheet as in terrific shape. So we're certainly pushing to find the right target something similar to ball feel would be terrific, yes, I'll jump back in line. Thanks.
Okay.
Thank you. Our next question comes from Edward Marshall with Sidoti and company. Your line is now open.
Good morning, guys how are you.
I wanted to I wanted to I wanted to ask on ball seal.
It looks like in their initial press release, you talked about 12.
2019 revenue around 95 million, there's there's no growth expected in the guidance for ball seal.
For 2020 is that is that kind of what you anticipated when you purchase this or is there something unusual going on if you divested a piece of that business trying to understand why the flat revenue growth year to year.
Yeah No Ed.
Good good observation a couple of things when we acquire then we do that they were experiencing some potential weakness in some of their industrial markets.
What I can tell you is that their 2000 19000 come in marginally below our expectations.
We do have.
Yeah expectations for growth in 2020 for the business and there are a couple of pressure points with a couple of accounts, which if you kind of carve those out the balance of the business is growing at a high single digits, which is what we would have expected. So we have a couple of account matters to kind of worked through but we remain very positive on the business very strong.
Cash flow generation. So overall, we're very pleased with the outlook for 2020 would fall seal and are working very closely with their team to identify both sales and other types of opportunities to drive growth.
Got it and the roughly 3 million in EBITDA.
Producing.
What what's the how does the deal accounting shake up could you sum that up maybe DNA component of that of the 23.
Yes, so yeah, we're expecting.
Fall fill DNA to be roughly in the neighborhood of about $10 million.
In 2020 as you can appreciate with some of the purchase accounting that we're going to see somewhere in the range about five to 6 million dollar DNA drag relating to intangibles and we're still working through the purchase accounting those numbers aren't yet final but.
As you can appreciate it's complex.
Right.
On the on the seven to seven Max you talked about 12 million and revenue drag for 2020.
What does that is just that.
Restarts.
The reason I ask is still structures competitor.
Yes, as this was a customer on the structure side indicated the restarted production on the 737 Maxim March.
Is that consistent with.
Your expectations.
Ed Good morning, its Neil I think that we're we're probably looking at it in in that timeframe to perhaps a little bit later the way. We've worked through it is a combination of what GE and safran are working on what would spirit, who you may have been referring to is looking at for deliveries to the year and why.
With Boeing is.
Publicly stated their target maybe so as we look at those three figures, we come down to delivery of about.
Between 210 to 220 ship sets for the year, our deliveries that necessarily boeing's, but our deliveries.
And and that's a.
About.
For us, taking about 10 $10 million to $12 million out of.
Out of our our year to year growth and and as you can imagine as well and that is very heavily weighted towards our specialty bearings business. So higher margin. So we're we're considering a about half of be losing about half a year.
Okay, Okay about six months and and is that they.
Original 624, Shipsets a year on the 52 a month roughly.
Yes, actually we were since they've been working it at 42, a month for most of 18 that was that was the baseline we were looking at so we know that we're going to have higher content of about $45000 on the new aircraft going out since we've been able to add some product.
To that aircraft as we had talked about before so we're looking in the range of about $45000 per aircraft for the balance.
Got it okay. That's all I was trying to back into.
And then finally I just wanted to get a an update on on the 139, DB and then and the next generation rollout on what that might.
Hi, how you see that kind of shaping up over the next few years.
You know Ed we continue to be very comfortable with us with R.J.P.F. product, obviously, when we're looking at $350 million of a backlog today working with US Air Force and both options 15, and 16, which we expect to get in the backlog in the first half of this year that takes us out to 2023.
So we feel very good about that and that's not even.
That is before we consider additional foreign demand, which as you know it's been pretty consistent for us in recent years at the other thing is when we look at the reliability of the product in use.
We feel very comfortable with us with where we are but we also know that we have to continue to work through.
Reduce the fast and and that's what we're doing so we feel pretty good about where we're at right now.
Great sounds like it's in good shape I appreciate it guys. Thanks very much okay. Thank you Ed.
Thank you I sound mine there to ask a question you will need to press star one on your telephone.
Next question comes from seats sets. These men with JP Morgan Your line is open.
Hey, thanks, Thanks, very much and.
Good morning.
Thanks.
So it's just wondering about the progression of kind of bringing down or he asked DNA and I guess, if we look at the guidance and what seems to be implied for the legacy business, maybe about 80 million of.
Of EBIT and if the you know you're kind of into the 17 like you were last year aerospace.
No that's about 60 million.
Have a corporate and that you know as you go down towards that target of 15 to 20 seems like you want to be exiting around.
Around that level of 20, so yeah, what it implies kind of a very low amount in the fourth quarter. Two should we think about kind of significant reduction and in that corporate expense as we move.
As we move through the year.
Yes, that's a this is rob.
A couple of things going forward and 2020, we will not be providing any separate guidance as it relates a corporate expense were just doing a full operating income guide. So just want to clarify that as it relates to where we are we've already realized about $5 million on a run rate basis on the savings so were.
Very well on our way.
Towards achieving the range that we had guided previously.
I can imagine that as a major focus for us we recognized the importance of achieving that.
Part of the reason you're also seeing some of the earnings cadence. The way that you are is that we do expect as we run through 2020, you will see those savings accumulating which will have a positive impact on our results.
So we've talked about reaching a rate towards the high end of the range as we exit 2020 and remain on track to do so.
Right, Okay, Great and then on on just following up on the last question on on keep you up you know you talked about the higher deliveries can you give us a sense of how much higher.
If you have revenues will be in.
In 2020 versus 29 PM and then what do you think about moving beyond you know, who we think about that 2020 level at kind of a sustainable level or a level off with.
You see potential for incremental correct.
Seth It's Neal I think that.
Given the range of 45000 to 50000 units or.
2020, we think that.
As you look to the backlog of 350 million before option 15, and 16 going into backlog that we see that is sustainable the next few years.
You know that's.
A rate that we feel very comfortable with we've we've worked to be able to consistently.
Meet that kind of output and the team under Jerry Rickets leadership has done a great job.
Great.
Okay.
Yeah. That's that's a takes care of my questions for now thanks very much.
Okay. Thank you said.
Thank you as a reminder to ask a question you any of the press Star one on your telephone. Our next question comes from Steve Barker with Keybanc capital markets. Your line is now open.
Thanks.
Just going back to M&A can you remind us how you think about necessary metrics in terms of accretion timing margin expectations or free cash flow characteristics or just what are your deal requirements.
Yeah, So well, we think about accretion I mean, you know, we we certainly look to reduce or eliminate the purchase accounting adjustments I mean ball sale.
Certainly with $32 million of negative adjustments. This year. That's that's that's a tall hill to climb.
But when we look at.
Are you know, we do and I are metric as you would appreciate you know well in excess of our cost of capital that is very critical assumption for us as we evaluate transactions from a cash flow perspective as you would appreciate looking at IR that plays a very significant role we are looking for strong cash flow contributors.
So so that is absolutely a key criteria as we look at acquisition opportunities and really what's really important for us as well is understanding one the technology. The macros that are behind those acquisitions and how well in how synergistic they fit into our portfolio I think for us ball seal.
And by the way for those folks on both feel or on the call welcome to command very hopefully a number of them are listening into the call. This morning.
That is really just an ideal and acquisition for US you know given that the technology and a focus on medical instruments in that market. So we're going to continue to look for engineered products across 80 in the medical space just as we have been and the strong financial performance is absolutely essential for us when were going to pull the trigger and deployed.
Capital.
And and Steve the other things that were really attractive to US was the was a very strong management team engineering team and operations team at ball seal.
So those are clearly a those drive the financial performance of the companies that we look at and enable us to be able to add new capability to us. So those are the other things that we look for that really helped drive those financial returns.
Yeah, as you think about finding companies of that size or maybe bigger that have the characteristics that you're looking for do you feel like there is a sizable enough pool out there or is it really hard work trying to define things that.
The meet those definitions.
Steve We think that there's there's good opportunity for US you know, we will say that we'll work hard at it. So we're not gonna be shy of saying that we have to work hard at it.
But I think that there's a good universe of targets and also one of the other advantages of the acquisition of ball seal was that it opened up the aperture for us into some more kinds of markets in sealing where we can do smaller to mid sized bolt on acquisitions and end user.
That is another platform for growth. So we you know.
It always is hard work for every company to be able to identify the right opportunity and then to be able to bring it home.
At the right price and also do you have a good plan for integrating it into your your operations and take advantage of some of the the synergies that you might have across operations sales and marketing et cetera, but we feel we feel pretty good about where we are right now and.
And the kinds of companies that that we can bring into the command fold.
Yes.
You know command is still a relatively small company and when you're trying to do more with less than a lot going on in terms of the integration and looking for new M&A can you just kind of rank order what you're most focus on right now or what's the most pressing conversation that you have with the team Neil.
You know I think that I think first of all it it always starts with execution to make sure that we can we can meet our customer demands and and that's number one because that's what drives our future business number two it's taking advantage of the investments that we have made in in advanced.
Automation and robotics to help drive our costs down it is certainly for us to be able to keep our eyes open on new technologies like the unmanned K Max like our titanium diffusion heartening to expand the markets that we serve and then certainly for us to be able to identify.
Those.
Companies, where we can really strengthen our relative competitive position and add some some.
New capabilities is important and then without question you know we recognize that we are a smaller company today than we were a year ago, and we need to focus on aligning our cost structure with the size of our company and while doing that building that strong foundation of processes and people.
Where we can drive that growth through acquisition organically. So it's it's a combination of.
Various areas that we have to focus on Steven I think its.
I think it's one where we've done a really good job through 2019, ER and into 2020 were a very different company than we were a year ago and.
And we have a very strong outlook, we think for 2020 and beyond.
Yes, I guess, an end to that point about being a very different company than you were any updated thoughts on an analyst day I know you have a lot going on but just.
What's the thought process about maybe explain in more clearly to the investment community about how you see this portfolio progressing overtime.
Steve you're exactly right and we've we've been active with that with discussions internally on being able to do that and certainly we'll we'll probably talk more about that maybe on the next call even but.
We recognize that we are very different company and and that we have to do a.
Put more focus on getting that message out and certainly in Investor day would provide us the opportunity to do that.
Great. Thank you.
Okay. Thank you thanks, Dave.
Thank you.
Our next question comes from sets Eastman with JP Morgan. Your line is now open.
They are just a quick follow up let's let's make sure there going forward.
Do you still plan to report legacy segment and.
Paul steel separately, well as as we go through 2020 here.
Yeah, sorry.
The short answer is if we're going to be reporting going forward as far as we understand as a single segment operation. So we will not be providing.
Paul seemed like a separate entity.
So so thats, where we are.
But will there be will there be that.
A segment or or just kind of revenue.
At adjusted EBIT or at the whole corporate level.
No just at the whole corporate level.
Right, Okay, Okay gotcha.
And then I just kind of updated thoughts I guess as you think about the M&A opportunities out there and where you know things are headed and you think about your target and market structure between arrow.
Oh, good commercial Aero defense or non Aero I, you know some things where there might be.
I guess.
Opportunity.
Outside of era that are attractive from a return standpoint, maybe something that you an area that are attractive from a return standpoint on that how should we think about that evolving.
Seth I think that we would break it down into a few different areas number one.
We have really been emphasizing investments both organic growth.
Production efficiency and in acquisitions more in our specialty bearings and engineered products area as opposed to our strong are lower margin structures area. So I think that that's that's the first thing we've had very good.
Performance improvement in our structures market, but we know that the upside opportunity for us realize more in aerospace and.
And specialty in an engineered products and then within those.
We really like our specialty bearing space it was.
It is one that we continue to leverage and grow I think the G.R.W. acquisition was a good example of that that enabled us to expand more into medical and industrial which have proven to be and in the industrial market more so in the automation in robotics parts of the industrial markets. So we have we've had very.
Good results, there and net informed in part.
Our acquisition, a ball seal because of the mix of industrial aerospace and medical markets that they had so I think that as as you look at the acquisitions that we would be most interested in it will be those were.
We have a unique competitive advantage or intellectual property.
Cross Aerospace we have it we have a good mix up almost 50 50 between commercial and defense today. So we like that mix I think as you can see that despite the headwind from several programs, including 737, we've got organic growth from year to year. So it highlights the diversity of the products and platforms.
We're on so we like that a lot.
But I think that you'll see more activity in the in that specialized industrial markets and medical markets going forward.
Great great. Thanks.
Yeah. That's that's all for me thanks, very much for any additional color.
Thanks.
Thank you I'm not showing any further questions at this time I'd now like to turn the call back over to Jamie Cook again for closing remarks.
Thank you for joining us on todays conference call. We look forward to speaking with you again, when we report our first quarter results.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
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