Q4 2019 Earnings Call
Ladies and gentlemen.
Today's conference is scheduled to begin shortly please continue into standby. Thank you for your patience.
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Good morning, everyone and thank you for participating in today's conference call to discuss Das Keith financial results for the fourth quarter and for your ended December 31st 2019, delivering today's prepared remarks are Chris Easter CEO and John Michelle VP of operations strategy after their prepared remarks.
The management team will take your questions [laughter] as a reminder, you may now downloadable PDF other presentations five now will accompany remarks made.
As indicated in the press release, we issued earlier today [laughter] you may access inside and they Investor Relations section of our website before we go further I would like to.
Trying to call over to Brooks, Hamilton, but investor relations with the Alpha IR group, who will read the company's safe Harbor statement within the meaning of the private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward looking statements books Hamilton with Investor Relations. Please go ahead.
Thanks Adnan.
Please turn to slide two for review of our Safe Harbor non-GAAP statements.
This presentation contains forward looking statements that's within the meaning of the private Securities Litigation Reform Act of 90 90, but.
Yeah, good financial information, including our guidance outlook are forward looking statements.
We're looking.
These statements, including those with respect revenues earnings performance strategies prospects and other aspects of does kids business are based on management's current estimates projections assumptions that are subject to risks and uncertainties that could cause actual results could differ materially from our expectations and projections.
I encourage you to read our filings with Securities and Exchange Commission for discussion of the risks that can affect our business. It's not place undue reliance on any forward looking statements.
We undertake no obligation to revise or forward looking statements to reflect events or circumstances occurring after today, whether as a result of new information future events or.
It was except as may be required under applicable securities laws.
During the call there'll also be a discussion of some items that do not conform to the U.S. generally accepted accounting principles for gap, including adjusted EBITDA adjusted operating ratio adjusted operating income adjusted net income or loss.
Free cash flow.
Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in the appendix the investor presentation in press release issued this morning.
Which are available in the investors tab at the dusky website www dot dusky dotcom now I would like to turn the call over to dusky CEO.
Mr., Chris Eastern Chris.
Thank you Joe Good morning, everyone I'll kick off the call by providing a few high level details on our performance and execution against our strategic priorities during the fourth quarter.
Also walk you through a quick recap of the transformative journey that we began in mid 2019 to reposition.
Turning to asking for more profitable growth in the future.
John will then provide additional details in a financial overview of the fourth quarter fiscal 2019 financial results.
That concludes my prepared remarks with a review of our 2020 outlook and then we'll take your questions.
My first earnings call at the permanent CEO to asking.
Well I took over the interim CEO position last August I hope, it's clear to all our stakeholders that neither I nor my team approach the work we needed to do with an interim mentality.
We were decisive and active with a clear sense of purpose to transform this company has jumped profitable enterprise.
A company that we look forward to growing as a chain for many years.
Just to come and we are we R&D just getting started I'd like to thank the board for their guidance over the last few months. It for the trust. They put in me to lead this great organization.
Please turn to slide three.
Which provides a quick overview of to ask is 2019 here.
During the fourth quarter, we delivered 400.
3 million unit revenue and 38 million adjusted EBITDA for the year, we had revenue of 1.74 billion and adjusted EBITDA of 171 million both of which were at the upper end of our prior annual outlook ranges. The transformative actions. We took during the last five months of 2019 helped us in part.
Some softer freight markets, which were exacerbated by excess capacity in the market.
It was focused on reducing cost and eliminated the inefficiencies helped us identify a number of underutilized assets and unprofitable business, which led to a reduction in company owned trucks and trailers as well as non driver staff.
This in turn allowed us to deliver 114 billion and cash from operations at 130 million in free cash flow for 29 team and the stronger cash flow allowed us to reduce our net debt by 48 million during the year.
While phase one of our operational improvement plan has been a significant success, we have a lot more work to do.
Our operating ratio at the midpoint of last year said at 99.4% and the market headwinds, we're pushing us on a pace to exceed 100% for 2019 in total.
At that critical inflection point in August our team rapidly mobilized and aligned around phase one of our transformation.
We have resisted the temptation to fix.
Every opportunity we saw and there were many to consider but instead, we prioritize on the actions. We believe would drive the most immediate and lasting improvements to our business, we changed our performance trajectory in a positive direction and delivered an adjusted or of 97% for the year.
Well that was a healthy improvement this is still.
Well for us as an annual or we're excited to build upon our positive momentum our momentum entering 2020 and I'll walk you through phase two of our operational improvement plan in a few minutes, which were officially announcing today and for those of you not reading ahead. The box on the bottom right. At this slide is not a typo the number 10.
And is a preview of where we had we are headed in our phase two of our transformation.
Before we do that let's quickly review, how we got here, please turn to slide four.
As many of you know I joined the company as COO in early 2019 was brought onboard specifically to help this company address is lagging operating.
Vince through the first half of the year my team and I analyzed the business from top to bottom with a 99% plus so our through the first half 2019. It was clear organization was not yet positions to convert our size and the stronger perfect profitability, we focused on topline growth for years with great success.
But our failure to deliver earnings presented a mandate for change.
With our second quarter earnings call last August we announced a modest plan to begin execution against phase one of our operational improvement plan.
Arabic few short weeks later, Don Taski, our founder and the original visionary for the company announced his retirement and the board.
It asked me to step in as our interim CEO.
The Board also gave me and my team the power to make more substantial changes changes that again, we are critical to build a stronger dansky at that point, we accelerated and enhanced our phase one plan to deliver results within two quarters.
Another key observation for my first.
Several months of the company was the strength of our operational leadership within our platform companies.
These leaders are only not great operators, but are also fantastic business builders, we reshaped our team tapping on several of these leaders take on broader roles and driving our business performance empowering this team a business builders.
Has been a critical component of our operational performance turned around over the past few quarters.
As we enter 2020, we're further enabling our team of business builders to continue this positive trajectory, we're delivering on phase one and will drive improved earnings quality through our next actions in phase two.
Slide five provides a.
More detailed review of our phase one operational improvement plan.
As you know we integrated three of our lower performing operating companies into three of our higher performing ones to achieve synergistic value as well as drive improved performance. We also restructured our organization.
Create a new leadership.
Texture to include greater contribution from our operating company leaders and identified numerous other areas for business improvement.
As part of the process, we identified underutilized assets and reduced our company owned trucks by 326 or 8%, we reduced company owned trailers by 993 or 8%.
Lastly, reduced our non driver staff by 8% as of year end 2019.
In summary, all these actions have delivered and we will realize our 30 million dollar improvement as we exit the first quarter in a few short weeks, while many of the cost to implement the plan impacted us in the second half of 2019, the initial contribution of our efforts.
It was clear and our outperformance against expectations in Q4.
Let's now turn to slide six what we will review the fate view phase two of our operational improvement plan.
Again building on the success and learnings of Phase one we have identified three core work streams for phase two.
In total we expect phase two to deliver an additional $15 million and operational improvements as we exit fiscal 2020.
Our first component in this space in this phase is further integrations, we will integrate three additional operating companies effectively reducing our operating companies from 16, when we started last August to.
10, when we complete our work later this year.
These integrations include Jay Grady Randolph, who is joining with Bulldog Highway Express Big freight systems, who will join with E.W., Wiley and steel and motor transport, who will join with Lone Star.
Unlike our phase one integrations, where the companies were chosen primarily due to.
I think performance the phase two companies are in some cases the combination of top performers phase two integrations are helping us build a more resilient business across market cycles solidify our bench strength better serve our customers and simplify our operations. The second component of our phase two actions are the execution.
A further business improvement opportunities within several individual operating companies as we continue to improve our capability to share best practices and develop a continuous improvement mindset.
And the third component of Phase two is what we refer to as cross platform network optimization.
One example of this type of.
Optimization actions, we are tackling is simply running our truck network better within our operating companies, we generally run our fleets effectively with a focus on efficient routing and low empty miles. However, as you look more broadly across our completion network of companies, we have several opportunities to improve our overall efficiency in the future our.
One office is working with our operational leaders to capture this and other untapped sources of value.
With the addition of phase two actions, we will deliver a combined 45 million of operating annual operating income improvement on a run rate basis as we exit 2020 again. This isn't this is compared to our exit run.
The rate of two to 2019.
Most importantly, this work will significantly improve our quality of earnings on a go forward basis allow us to capitalize on our scale and positions us to grow both top and bottom line to the future.
I'd like to conclude by highlighting a critical feature.
Of the.
We are building across the organization by our commitment to operational excellence the process and execution that we have demonstrated through this transformation has provided us a playbook to consider broader strategic options in the future.
We see more clearly that over the long term of granite organic growth opportunity there in front of us as.
We have better leverage our reshape business platform.
Further we are building new tools and capabilities demonstrated through simultaneous integrations of existing operating companies, which now include both lagging and a strong performers these new capabilities and experiences are providing us with an expanded target profile.
Our future bolt on or tuck in acquisition targets I do want to be clear our focus is still laser sharp on executed against our transformation plan and strengthening our balance sheet.
But our long term growth opportunities have clearly been enhanced by our strategic transformation. We R&D just getting started with that I'll now.
I'll turn the call over to John Michelle to review, our financial performance last quarter John.
Thanks, Chris our Q4 in fiscal 2019 financial details are presented on slide seven in the fourth quarter revenue was $403 million compared to 447 million in the year ago quarter.
The decline was driven by both lower freight rates and lower miles driven both of our operating segments.
Net loss for the quarter was 18.4 million or 31 cents per share and included a non cash impairment charge of $6 million.
Adjusted EBITDA was 37.9 billion down 5% compared to.
39.9 billion in the year ago quarter.
The year over year decline in adjusted EBITDA was driven by softness in freight rates and higher driver pay which was only partially offset by productivity gains from operational improvements realized beginning in the quarter.
For the full year revenue was $1.74 billion compared to one point.
Six 1 billion in 2018.
The increase was driven primarily by the full benefit of the acquisitions completed in 2018.
Net loss for 2019 was $307.4 million for $4.86 per share, which included noncash impairment charges. We took this year.
As we mentioned last quarter decline in our stock price and an updated look at our historical acquisitions given market conditions prompted an impairment review.
When coupled with a small fourth quarter item I just mentioned the total impact was 312.8 billion noncash impairment charge to our asset carrying values for the year.
Adjusted EBITDA was 170.9 million in 2019 down 2% compared to $174.3 billion in the prior year.
This marginal year over year decline in adjusted EBITDA was driven by the softer rate environment lower freight volumes higher driver pay which was partially offset by lower.
Our salaries and our corporate segment.
Productivity gains from operational improvements and a gain on sales some of the company's equipment.
Before I leave the slide I'd like to briefly highlight our corporate segment adjusted EBITDA, which is not an operating segment and includes corporate salaries and other corporate administrative expenses as well as the intersegment eliminations.
The 4% decline during the fourth quarter was a direct result of the Rightsizing of our executive team and strive streamlining of costs in general and we expect to see further reductions as we progress through 2020.
Moving onto a more detailed look at our specialized segment results on slide eight.
Specialized.
Revenue in Q4 decreased 7% year over year to 257.4 million.
Adjusted EBITDA for the fourth quarter decreased just over 14% 31.4 billion driven primarily by weakness in our oil and gas related end markets.
This headwind to our adjusted EBITDA results was offset by continued.
Thanks, and that are Nouvel energy end markets in particular wind energy.
With some further supplemental health from a gain on sale of underutilized assets related to the integrations.
Our adjusted operating ratio was 94.5% compared to 93% in the fourth quarter 2018.
Especially as rate per mile.
Reached 4.7% to $3.43 for the quarter and revenue per tractor decreased 5.1% to 59800, driven by similar factors that negatively impacted our adjusted EBITDA.
As well as the mix shift from very high rate per mile rig moves although rates are holding decent another.
Industrial markets.
The takeaway here is that since the piano by went below 50 in August of last year, coupled with trade impacts you are seeing general industrial softness of the sustained weakness in the oil and gas end markets, having to mid Sheryl impact on our results.
For the full year 2019 specialized revenue increase roughly 13% to.
$1.1 billion adjusted EBITDA for the year increased 3% to 138.8 billion driven by the full impact of the 2018 acquisitions.
Slide nine shows our flatbed segment flatbed revenue in Q4 decreased 13% to $150.3 million.
While adjusted EBITDA as a.
Quarter increased 17% to 17.8 million.
The improvement to adjusted EBITDA was the result of a shift to more owner operator freight and was spot rates below contract rates for the year resulted in higher margins on purchase freight.
Given lower industry demand 2019, we also had some brokered shift to company.
Asset to higher margins. These impacts were partially offset by softness in manufacturing and construction end markets.
The fourth quarter adjusted operating ratio five at segment was 93.8%, which showed a 200 basis point improvement compared to 95.8% the year ago quarter.
The flatbed rate per mile the.
Fourth quarter decreased 4.6% to $1.87 cents.
Net revenue per tractor tree, 7.9% to 38500.
For the full year flatbed revenue of 663 million was flat compared to 202 2018.
Adjusted EBITDA.
2019 increased 9% to 76.9 billion driven by the similar trends I just discussed related to Q4.
Now turning to our balance sheet free cash flow as indicated on slide 10 at December 31, we had 95.7 billion cash and liquidity of 182.5 billion.
Including the availability on our on the revolver.
Net debt was down $48 million year over year to 608.4 million in our leverage as defined in our debt agreements was 3.18, well below our 4.0 times covenant.
For the full year 2019, net cash provided by operating activities.
As 114.1 million.
Cash Capex was 22 billion cash proceeds from the sale of equipment was $37.8 billion or free cash flow of $129.9 million for the year.
Capex financial debt or capital leases totaled $72.3 million during the year.
When you with a net of 57.6 million after finance Capex.
As Chris mentioned, our teams did a great job driving improved efficiency of our equipment and look to exit unprofitable businesses, which allowed us to sell off some older underutilized assets.
The key takeaway here is that our decisive second half.
So allowed us to drive strong free cash flow lower our debt and protect our balance sheet.
Lastly, I want to update our investors on the closing process of the Aveda transportation and energy services acquisition. We completed in June 2018, which includes a potential earn out associated with it.
As.
As we said last quarter and accordance with disagreements with submitted our Earnout calculations to the Venus shareholder representative in our our ended communication related to Earnout calculations.
We'll not comment any further on the envied earn out until we have completed our discussions with the very the shareholder representative.
With that I'll now hand, the call back.
Over Chris.
Thank you John Slide 11 outlines our key assumptions and outlook for 2020 like many of our peers, we are anticipating softer conditions and rate pressures to continue through the first half of the year. We are indeed see even softer conditions in the first quarter than we experienced in Q4, we.
Still expect capacity to tighten in our key markets as we enter the second half, which stood start to firm up second half rates.
So we're forecasting our volumes to remain flat in 2020 compared to 2019, which would result in a low single digit decline in revenue at the midpoint of our 1.61 to 1.69 billion range.
As we start to realize the full benefits of our phase one operational improvement plans as well as some initial phase two contribution later in the year, we expect to overcome most if not all of that market headwind that delivered solid profitability.
So for the year, we are seeing a challenging Q1, followed by the gradual improvements.
Delivered by our actions as the demand and supply side to the market shift in our favor later in the year.
Thus, we are providing outlook ranges of 74 day 2 million for adjusted operating income and $170 million to $180 million for adjusted EBITDA for fiscal 2020.
Lastly, we are provided an outlook for capex of 75 to.
80 million in 2020.
We expect 75% to 80% of this spend to occur in the first half of the year given the capital need in spending in the first half we want to caution that is highly likely that our leverage ratio will trend higher before decreasing in the second half of 2019.
Strengthen our balance sheet is a clear requirement for our team.
And we will continue to prioritize debt reduction as part of our capital allocation priorities moving forward, we expect to remain comfortably below our debt covenants based on the outlook we provided.
Slide 12 provides a more visual look at our profitability guidance for 2020.
We expect continued headwinds from three areas.
One market based pricing and volume declines as I've just outlined.
To significantly lower us rig counts and lower oil and gas activity, which began in the second half of last year and has accelerated into 2020.
And lastly, three and higher insurance cost.
Using the midpoint of the.
Arranges I've just provided for our 2020 outlook, we're forecasting adjusted EBITDA growth of 2.4% and adjusted operating income growth of over 50% in 2020, and remember that growth is built on a single digit topline decline and that shows the power of our organization to drive earnings growth in a down.
But.
In anticipation of the question is likely on many of your minds, we have not factored in any potential impact from the rapidly developing corona virus situation beyond some limited impact in the first quarter. The situation, obviously remains fluid and our hearts go out to those affected around the globe.
So far we've seen no.
Direct personal impact to our staff, who safety will remain our number one priority.
Were primarily of domestically focused business, but many of our customer supply chains rely on global partners, whose businesses have been interrupted so we do expect to see varying degrees of impact as we progress through 2020.
The extent of.
These impacts is very difficult to gauge we're communicating both with our employees as well as our business partners to place ourselves in the best preventative position possible will also preparing contingency plans for varying degrees of potential business interruption.
I'll end, our prepared remarks on slide 13.
The work his team has a.
Complex. The last few quarters is exceptional on the surface. The changes we've implemented may seem straightforward and simple that is by design in order to successfully execute within the accelerated timeframe frame needed we had to keep our focus simple with a limited number of priorities in our initial work.
The Sheila the shift to a collective.
Performance based culture has repositioned this business to drive additional earnings improvement in the face of a soft market backdrop.
It is also helping us drive improved cash flows which in turn is providing the fuel to strengthen our balance sheet and building more profitable platform for growth as we move forward.
We will enter 2021, with 45 million and operational and cost improvements in place, which will facilitate solid bottom line expansion, what our markets return to topline growth in the future.
We have a lot of hard work ahead of us this year, but we have the right team in place to get it done we've just gotten started and looking forward.
To updating all of you as we execute and deliver against our goals.
That concludes our prepared remarks, and I'm excited to turn the call over for your questions.
Ladies and gentlemen ask a question you on either press star one on your telephone to withdraw your question press the pound.
Please standby compiled acuity roster.
And our first question comes from Jason Seal with Cowen and company. Please proceed with your question.
Thank you operator, hi, Chris I team couple of quick ones from me here.
Chris can you talk a little bit about so to your fees to and how it's going to help.
The top line can you give us a couple examples.
We know it I wouldn't say with as much focus on phase two helping the topline as much as continue to drive bottom line performance.
So really we're not that thats not where our focus is in this market earned this space.
Okay, sorry, I thought you said I think you said before there was going to help both top and bottom lines and Thats, what that was kind of.
Well my question I wasn't sure our top help today in the longer term, yes. It's always is we're reducing our cost basis over the long term. It certainly is going to positions for topline both growth because were more competitive from a price perspective and could command more business as we move forward, but that's not much as much in immediate focus right now is driving the bottom line actions.
Okay, you mentioned.
The outlook for the oil and gas based on the rig count sort of having an impact on on the guidance. You. Just gave one could you tell us what your projection is we're sort of that rig count to go down and what's the current oil and gas exposure.
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Let's say, we know I don't want.
Try to get into forecasting where the rig can forgot to are going to go I know, they're down hard and it's it's moving quickly.
I think if I'm not mistaken I'm looking over John as I'd say, there's I think our oil and gas exposure was it 13, 13%.
Honda on the.
On the.
There was that actually 2018, if we compile that for 2000 on deck in 2019 phase 2019 by 13% in the oil and gas sector. Fortunately for us that with the diversification of our business. The wind energy sector, which has been real strong as has largely offset that but it's it's a tough situation in the oil and gas sector Needless to say.
Okay sensor.
Once you get through phase two of your plan how should we look at maintenance Capex should we look at that is thats, probably going to shrink a little bit what you guys consider maintenance capex when two combined down to 10 companies, Hey, Hey, Jason. This is John I think when you look at our John The Capex Guide.
That's a pretty good barometer for what the maintenance needs to have this company are going to be on a go forward basis.
We are reducing that feet a little bit this year, but I think from a capex perspective, it's going to stay within that range.
Okay.
Two more questions I'll turn it over to somebody else I think you guys said there was a gain.
On sale of underutilized assets in the quarter, John could you tell us how much that was.
Just a couple of million dollars, it's related to those integrations that we had.
Fantastic.
Last question I know, it's not the current focus but you did leave the door open for future acquisitions Chris.
Could you.
Tell us a little bit of sort of what you guys learned from the prior acquisitions and some of the steps I guess you were forced to make to make the more profitable and how is that going to change when you look at companies in the future to acquire.
Well, thank you for asking that and I'll restate appears to be clear, we're not looking we're not out looking in the market right now we are.
Just on that bottom line performance and and strengthening the balance sheet, but.
We're going through the integration aspect again with some some performers that weren't strong as well as some that are really strong it's really I guess flexing, our muscles and demonstrating our capabilities to look at integrations in the future that kind of run the gamut.
We'll have as we move forward, we'd have a much broader net we could cast.
In terms of integrations.
Looking back at that.
We weren't perfect I mean, it is hard.
Acquiring and running through an acquisition type process and integrating companies will isn't always a perfect.
Science for sure. So obviously, we had some that were not nearly as strong as we would have liked.
We think we've addressed that now and is we're going forward.
Thank the lessons we've learned will help our team focused much more on making sure we're making the right acquisitions, but at the same time that netscout to be much broader we're not looking for.
Form companies per se as we're moving forward because we've got.
What will be a strong platform are ready to build upon.
Okay Fantastic I appreciate the time is always gentlemen.
Thank you.
Thank you and our next question comes from Gregg Gilbert with Northland Securities. Please proceed with your question.
Great. Good morning, guys. Thanks for taking my questions. I think you said something about there being minor effects from the virus in Q1. So just to clarify have you noticed any negative impact from the buyers at all yet.
Yes, theres been some minor impacts to me, we don't have a lot of container volume business that we move in and out of the ports, but we do have some so we've certainly seen that.
GAAP off start to drop off already and then we've had a I know we've had there was one project I know of where some components were coming in from a from Asia from China in and that project has been delayed.
And we're starting to hear of potential impacts again with some of our suppliers in the sites supply chain. So.
Really the only real impacts have been some of the port volumes and a little bit of some delay in a project in some other small.
Initial impacts, but nothing dramatic yet.
Got it Thats very helpful.
And then sorry, if I Miss this on the call, but what was the primary reason for the Delta between.
I mean, what you realized in Q4 than your previous guidance I was just some of those maybe cost savings coming in a little bit sooner than expected.
No. It was really that that $6 million impairment related to the third quarter write downs the difference between the preliminary results.
Okay sure.
And then do you have.
Maybe a total amount of the onetime costs associated with that restructuring this was made.
Maybe how much of that would be allocated between 19 versus 2020.
If you look good for 2019 year to date, which is that third quarter fourth quarter is $18.1 million between restructuring and the business transformation costs.
About four four and a half of that was in the fourth quarter.
Okay perfect.
And then just last one for me as we think about phase two improvement efforts, taking full effect as we exit this year.
When do you expect to start to see some of those benefits being recognized.
Yes, I die.
Let's see only we're going to see it as the year progresses, but I'd certainly push it to a more toward the back half of the year.
Got it thanks guys.
Youre welcome.
Thank you and your next question comes from Ryan signal with Craig Hallum. Please proceed with your question.
Good morning, guys.
All right so given your only including an impact from Corona buyers in Q1, nothing the rest here I know you've touched on several different ways, but is that because you don't have visibility to the magnitude.
Potentially in Q2, Q3, Q4 or is it because you're not expecting theory about.
I'd say, it's more the magnitude.
But at the same time I'd also say there is a third a lot more an unknown unknowns at this point.
I feel that we will see impacts but at the same time, you know depended upon the severity in the link we could see recovery in the back half of the year that could offset a fair chunk of it as capacity might tighten further.
Further dependent upon how far in deep this any declines are and where we're in a strong position to withstand it from a liquidity position.
And I think therefore, that's why have they view right now we don't know what that impacts going to be but there could be very well some offsets in the back half of the year that help us.
Rebound.
And then.
How much in onetime costs do you expect from additional business unit consolidations in 2020, and then secondly from a GAAP free cash flow perspective, you think you can draw on the 57 million are reported in 2019.
Yes.
I was just say on the on the onetime cost I think right now were factored about 4 million that we're expecting tied to phase II.
John did you want to take that other part of the question Yeah. Greg can you to again on the free cash flow.
Yes, you reported 57 million of debt free cash flow in 2019.
Directionally do you think you can grow on that in 2020.
Yes, so when you look at that 57, that's that's.
That's our free cash flow, which is cash from operations less cash Capex plus finance Capex. When you look at our guide this year, our capex is going to be a bit higher.
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Between 70 580, whereas we came in for the year in 19 at about 56, and a half billion dollars in Capex, So don't feel a little bit lower than that because of our incremental capex.
Okay, great. Thanks, that's it for me.
Thank you in front.
Thank you and again, ladies and gentlemen ask a question you want me to press Star one on your telephone.
And I'm not showing any further questions at this time ill now turn the call over to Chris Easter CEO for any further remarks.
Thank you, saying, thanks again, everyone for joining us today I'm very excited about the path. We are on in the future of Desking. We're looking forward to the hard work ahead and thank all of you for your support have a great day.
Ladies and gentlemen. This concludes today's conference. Thank you for participating you may.
Now disconnect.
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So.
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