Q1 2020 Earnings Call
Good afternoon, everyone. Thank you for participating in today's conference call to discuss concrete pumping Holdings' financial results for the first fiscal quarter ending January 31st 2020.
Joining us today are concrete pumping holdings CEO, Bruce young CFO in Humphreys and the company's external director Investor Relations Coty slot.
Before we go any further.
Back to try to come over to Mr. slots read the company's safe Harbor statement within the meaning of the private Securities Litigation Reform Act of that you already five that provides an important cautions regarding forward looking statements Cody. Please go ahead.
Thanks, Kevin.
I'd like to remind everyone that in the course of this call to give you a better understanding of our operations will be making certain forward looking statements. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from such statements.
Information concerning these risks and uncertainties see concrete pumping holdings publicly available filings with the FCC [laughter] company disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information future events or otherwise.
On today's call. We will also discuss adjusted EBITDA, which is a non-GAAP financial measure that just reported figures for certain items.
We believe the presentation of the non-GAAP financial measure is useful because it provides investors in industry analysts. The same information that we use internally for purposes of assessing our core operating performance for a reconciliation of this measure to not lost please refer to the press release issued today.
Or the Investor presentation posted on the company's website also please note that on December six 2018, we consummated a business combination whereby we acquired the formally private company previously known as concrete pumping holdings, Inc., which we refer to as CPH.
And the former spec called industry, a acquisition Corp., which transactions, we collectively referred to as the business combination in connection with the closing of the business combination the company change its name to concrete pumping Holdings, Inc.
Finally, the financial results described today for the dates in periods prior to the combination relate to the operations of the formally private company CPH for additional information. Please see our quarterly report on form 10-Q that we plan to file today, which includes the financial statements that we are discussing on this call.
I'd like to remind everyone. This call will be available for replay later this evening a webcast replay will also be available via the link provided in todays press release.
As well as on the company's website. Additionally, we have posted an updated investor presentation on the company's website.
Now I would like to turn the call over to the CEO, calling people think holdings Bruce Young Bruce.
Thank you Cody and good afternoon, everyone before providing an overview of the best performance in the first quarter of 2020. Please let me take a few.
Moment to comment on a few things about Corona virus first our people, our most important asset and as long.
As the virus remains a concern will continue to monitor the situation very closely and take prudent steps to protect our employees second we believe our company isn't unique position and in this current environment and we do not have any supply chain that is dependent upon China. In fact, we maintain a rolling inventory of parts to it.
Sure we are able to continually maintain our fleet and we do not source critical components only are directly from China and the demand side. At this time, we are not seen the virus cause any impact to active projects both in the U.S. or the UK and we are not seen any hold up in projects slated to begin in the near future while.
Employees in the field work in an opening their environment. They have been encouraged take appropriate precautionary measures business continuity plans are in place and regularly testing to ensure we maintain online capabilities to support remote working where required.
All employees have been made aware of appropriate hand hygiene practices and symptom recognition, we will continue to monitor the situation closely and update our shareholders Accordingly.
I'll now turn my attention to our strong first quarter financial results, which we have reiterated which we have have us rewrite or reiterating our full year outlook.
The momentum in our business has continued into our first quarter highlighted by topline growth of 27% and adjusted EBITDA growth of 39% that was supported by a 370 basis point improvement in gross margins.
Our successful acquisition and integration of capital pumping last year continues to drive unhealthy contribution to these results. Furthermore, our industry is still benefiting from every most robust U.S. market and we are generating accelerated growth in our U.S concrete waste management services business.
Our U.S concrete pumping business was strong in the first quarter as we experienced growth in most of our regional markets. It is very encouraging to highlight that our quarterly revenue growth of 35% and U.S. country pumping segment was outpaced by adjusted EBITDA growth of 59% when compared to the same quarter a year ago if.
We include capitals results and our Latin number in our numbers last year revenue improved on an organic basis by 4% year over year.
The capital business continues to run smoothly under our platform and as our results show we are realizing the economic benefit of both companies coming together.
Since we acquired the business in May of 2019, we have real reallocated approximately 15 units from the combined equipment fleet to other markets were extra utilization was needed. This is a great example of the EBITDA and cash flow synergies that we identified prior to the capital of pumping acquisition and those that we typically capture.
By applying our fleet management and equipment redeployment strategies. The fleet reallocation benefits achieved to date have allowed the company did for more than $4 million and growth Capex investment, which captures the majority of the previously identified fleet synergies.
For our U.S. country waste management services segment, our Eagle pass the large growth opportunity remains intact with accelerated growth percentages of revenue and EBITDA, resulting from the new initiatives implemented and our ability to leverage our existing U.S. country pumping relationships just grow the country waste management services business organically.
Similar to our U.S. country pumping performance revenue growth of 23% in this segment was outpaced by an impressive 39% increase in adjusted EBITDA when compared to the same year ago quarter.
And our UK operations, we experienced slight demand headwinds from Brexit related uncertainty and then more recent developments political tension seventies foreign currency exchange translation is improving and optimism has returned to the UK construction industry with UK government underscoring their commitment to push ahead with the multi decade.
High speed rail project Hs too.
We continue to position, our Canford brand and reputation prominently in UK region, as we expect demand and momentum to pickup.
Given our consolidated performance in the first quarter. We believe we are on track with our long term growth strategy. Our initiatives are supported by the continued positive trends, we're seeing across the business and in the end markets. We serve and we continue to see significant opportunities for market share gains in the U.S. and UK regions as well as the continued rollout and growth.
Our European business now I'd like to hand, the call over to and so you can provide a detailed overview of our first quarter financial results and.
Thanks, Bruce and good afternoon, everyone for getting into the details I'd like to remind everyone that when you refer to adjusted EBITDA, which is a non-GAAP financial measure and a reconciliation from net loss to adjusted EBITDA can be found in the press release, we issued earlier today.
Also please keep in mind there are businesses seasonal.
Finally, 45% of revenue generated in the first half of fiscal year.
85% in the second half.
Additionally, our profitability is typically back half weighted while capital expenditures are largely from half weighted as we take delivery of new equipment in the earlier months of the fiscal year to ensure we maximize our fleet uptime and our busiest peanuts.
Moving into our first quarter 2022 results.
We generated strong topline revenue growth as Q1 revenue increased 27% to 73.9 million compared to $58.4 million in the same at Unico quarter.
The increase was largely driven by the contribution from the capital punks being acquisition and organic growth within burnished bone unequal Pan.
On a pro forma basis, which includes the results of acquisitions, both pre and post transaction, our Q1 revenue increased by approximately 5%.
Adjusting the pro forma revenue on a constant currency basis revenue was up by 4%.
And the first fiscal quarter revenue and are you guys concrete pumping segment, mostly operated under the Brundage born brand increased 35% to $55.1 million.
The capital pumping acquisition, which added additional pumping capacity to our Texas market drove approximately $12 million of the year over year increase.
Additionally, we experienced notable improvements and most of our other regional markets, including Idaho, Georgia, and our West Coast operations.
Q1, 2020 revenue in our UK operations operating largely funded the comfort brand was $10.7 million compared to $11 million in the same unico quarter.
Demand headwinds brought on by Brexit related uncertainty, primarily drove a 4% decline in revenue that was partially offset by improved foreign currency translation.
Revenue in our U.S. concrete waste management services segment operating under the Eco Pine brand increased 23% to $8.3 million in the first quarter.
The increase was driven by robust organic growth and the majority of our markets and higher utilization of our assets.
We experienced strong growth in our next tier markets as we continue to integrate the equal parts service and our concrete pumping food.
At the end of Q1 2020 tons in the field, which is a leading indicator for future pickups or 27% higher when compared to the same unit quarter.
Turning back to our consolidated results gross profit in the first quarter increased 38% to $32.1 million compared to the same unico corridor and gross margin at 43.5%.
370 basis points compared to last year.
The increase in gross margin was primarily due to the post acquisition contribution from capital pumping more favorable fuel pricing and continued improvement in our supply chain procurement costs.
General and administrative expenses in Q1, or 26.6 million compared to $18.6 million in the same unico quarter.
As a percentage of revenue general and administrative expenses or 36% compared to 31.9% last year.
The increase was largely due to higher amortization of intangible assets expense of $3.1 million most of which was the result of the acquisition of capital pumping and an additional $1.4 million and stock based compensation expense that result of the stock Grant in April of 2019.
The remainder of the increase was mostly mostly attributable to head count growth predominately from the new team members added with the capital pumping acquisition.
Net loss attributable to common shareholders for $3.2 million or six cents per diluted share.
This compares to our net loss of $26.6 million and the first quarter fiscal year 2019.
Please note that our share count increased in 2019 third quarter as a result of our equity offering related to the capital pumping acquisition that was completed in May 2019, and the exchange of 21 million warrants for 3.8 million shares of common stock.
Finally, adjusted EBITDA in the first quarter increased 39% to $23.8 million compared to $17.1 million in the same unico quarter.
Adjusted EBITDA margin improved by 280 basis points to 32.2%.
Revenue growth gross margin improvement and procurement savings and parts and fuel drove the strong margin expansion.
It is important to note our businesses in the U.S. created substantial adjusted EBITDA improvement well in excess of them impressive revenue growth.
And our U.S. pumping business, adjusted EBITDA and through 59% to $16.8 million on the back of 35% revenue growth and then are you asked concrete waste management business adjusted EBITDA and through 39% to see point $8 million on the back of 20% organic revenue growth.
Turning to the balance sheet as of January 31, 2020, we had $433.5 million of net debt and that was made up of $2.6 million in cash and $436.1 million and total debt.
Equates to a pro forma ratio pro forma leverage ratio of just less than four times at the end of the first fiscal quarter.
As a reminder, our business generates healthy free cash flow as we invoice our customers daily for the worked we perform and we have minimal working capital requirements as we do not take ownership of the concrete we place.
We believe the ability to generate strong free cash flow along with our strong margins being enhanced with the acquisition of the accretive capital pumping business provides us with the ability to de lever and strengthening the balance sheet overtime.
During the first quarter, we invested 15.7 million and net capital expenditures, which is slightly elevated from the quarterly historical trends as we had the opportunity to accept delivery of equipment early and this allowed us to get in front of our busiest uptimes and improve on project execution.
This is purely timing difference compared with the prior years and does not impact our fill your expectation that net capital expenditures investment for the year will range between 35 and start to $8 million.
Our financial outlook for fiscal year, 2020 remains consistent with what we laid out last quarter only Quinn continue to expect construction activity and our end markets to remain robust.
We have a high visibility and our commercial infrastructure work, which accounts for nearly 70% of our revenue and we are confident of our current project.
And the U.S., which is much stronger today when compared to this time last year.
With that I will now turn the call back over to produce to provide additional color around our outlook and reiterate our strategic priorities for fiscal year 2020.
Thanks, and just to reiterate our first quarter fiscal 2020 delivered results are in line with our expectations at our growth strategy that we outlined on our last call remains intact.
This includes organically growing the copan branding gaining market share in our U.S. and UK markets as well as continuing to drive revenue and expense synergies from the additional capital pumping.
We have several large projects kicking off in the first half of 2020 with organic growth expected in most of our key regions. These projects include major campus rebuilds office buildings parking garage as Datacenters distribution centers hotels and medical buildings. These projects are spread throughout the us market, an eco pad and we see significant offer.
Security to increase penetration and expand our customer base, both through cross selling to our us country pumping and canford customers and organic customer acquisition, the new Eco Pan leadership, which we added last year has helped to execute on this strategy more effectively by creating great synergies with our country club in service.
Looking ahead to the rest of the year, we remain committed to the priorities we laid out on our last call. They are focused on driving organic EBITDA growth and free cash flow generation. We explain I expect this will come from steady growth in our us market successfully cross selling our eagle pan offering as well as prudent cost management and other benefits of scale.
Ill brought on by the acquisition of capital.
Given these dynamics, we still expect full year revenue in fiscal 2020 to range between 315, and $330 million and adjusted EBITDA to range between 110 and $115 million.
Aspect, a large portion of our free cash flow to be allocated to reducing our leverage ratio and we are targeting a 3.5 times leverage ratio at the end of 2020 fiscal year, we expect to maintain stable annual capex investment in our equipment in fiscal 2020 and continue to work towards our goal of store.
Lengthening our balance sheet. Finally, we expect that any M&A opportunities, we preserve pursue in the near term will be accretive tuck ins as we continue to develop the capital pumping synergies and Delever the business.
We are encouraged by our continued success and this first fiscal quarter of 2020, and we remain confident that our current strategy will continue driving long term shareholder value.
That I'd like to now turn the call back over the operator for human a Kevin.
Thanks.
Question.
If you if you placed into question can you. Please press star one of your telephone keypad.
I mentioned, Tony will indicate your line is in the question Q.
The press Star Q, if you'd like to move your question from the Q for participants using speaker equipment may be necessary to pick your per handset before pressing star one.
One moment, please before we can pull for questions.
Our first question today is coming from Andrew Wittmann from Robert W. Baird. Your line is alive.
Great. Thanks, guys. Good afternoon, and thanks for taking my questions.
I wanted to start with some questions that I think are topical for the investors and understanding here that you're quarter was quite strong with very good growth and nice margin expansion I think the market is this looking the questions that I ever on the forward look about some of the concerns.
Here in the macro environment, specifically Bruce in the past you've talked about how most of your work is kind of a line from Seattle to Atlanta, Charlotte, I guess and everything beyond that.
Included in those geographies or a lot of markets like Texas, maybe some work in Louisiana, I don't know new Mexico, Im just kind of curious.
Bruce or even if you could help us understand.
The percentage of revenue that you get from from state.
That have no larger energy exposure.
Just that we can understand how how you might be affected or think about how the business might react in those markets, where there could be some oil pressures from from the economy there.
Yes, Thanks, Andrew and so.
To be clear, we don't do any work on a well sites are directly related to the energy industry now we do.
Support buildings <unk> infrastructure and other things that are there to support the that bit business or that that NZ now what we found in the past is that.
We use a lot of fuel than our equipment and so that as far as the energy markets.
Especially oil declines if fuel prices decline with that in the benefit to the company is actually greater for this fuel savings than it is for revenue loss because work and the energy industry.
Got it can you just remind us what percentage of revenue is fuel cost.
It's about 5% onto.
Okay.
That's helpful. And then maybe just similar question again I think that's something that everybody is wondering today is in Bruce you talked about this a little bit but.
Can you just talk about for somebody has been in this business along time, what the business looks like in an economic slowdown what do you see in the revenue trends and how does that impact your margins and what what kinds of things do you do operationally.
If if the markets are not as pointed to have been for the last couple of years.
Yes, and so as we look at it we've been through several cycles and what we've learned in nearly all cycles that all end markets and in all geographies don't cycle at the same time and so we're we're careful to to make sure that were not too heavily weighted in any one end market or anyone geography, which as you can see.
At our footprint and by the waste from that line from Seattle to Charlotte asserting south of that Weve, largely don't do anything so that line.
So with the geographic diversity in the end market diversity, we think we protect ourselves.
Some from that now if theyre clearly if there is a significant downturn that affects all operations 70 plus percent of our business is variable costs and we'll make sure that we keep that those are variable costs in line and and if it gets extremely significant we can shut off capex or even turned negative we needed to.
Great. Thanks, I'll leave it there for now maybe I'll chime back in after I give other people a chance. Thanks.
Thanks, Andrew.
Thank you. Our next question today is coming from Stanley Elliott from Stifel. Your line is now live.
Hey, guys. Thank you all for taking the question.
Excuse me.
Could you give an update on on HM two exciting news to see that.
UK moving forward on that maybe remind us of the duration of the project and also kind of remind us. When you go think potentially will start to see concrete getting pumped here.
Yes Stanley this is Bruce.
Now the Hs to project has been approved and supported by the government.
There is substantial amount of the excavation that has already taken place or is in a process being taken a being performed now.
We are in a process of trying to secure and work on that process that we're doing some small projects, but the more significant portions will come later on we do expect to start seeing more significant revenue coming off of that project by the end of our fiscal year, which is fall. This year and then we see that extending.
Well into the next several years, so theres two phases and and so the so phase two is a phase that we're working on now that extends from London up into the Birmingham area.
That should take maybe five years, and then or second phase that that would take into the northern portions of England that would run much longer than that but enlarge from start to finishing it could be running into.
10 years that maybe even into 20 years.
That's great news.
Kind of switching gears you on the Echo Pam business I think you said, 27% higher pans out in the field.
Can you frame that out like at I'm, just trying to get a size of the growth opportunity here, maybe how many more of your location to can you can you bring this service to or where are we in terms of your view on the on penetration here.
Yes, so we.
We had 23% revenue growth in the first quarter and we see a something similar that.
Continuing on through through the year.
Our focus this year has really been.
On our on our tier one and tier two markets our largest markets in the next year down where we found that there is much more opportunity there than what we had seen in the past and as we focus on those markets.
We're capturing more share and and creating more route density improving.
Our margins and so those two areas or the areas that we're focused on right now we we've been as you know last year, we didnt grow in the first half of your as fast as we had hoped we'd bought all the assets to do that so those assets are now fully utilized and we're looking to add additional assets as part of our.
Capex strategy that we've laid out it would be included in that to continue that growth with eco pan and those markets it without it without actually having to go into any new markets. This year.
Great and then lastly from me.
I apologize if he said it can you talk about the pricing environment that you all are seeing out there maybe I don't know if it goes forward kind of parse out the 4% between price and volume, but I'd be curious just to see of on how the discussions are going with customers on the forward look business.
Yes, so so we're seeing pricing and grow and organic growth consistent with what we've talked about in the past was a 4% being split between between price and build hours in the country pumping portion now now obviously our contractors they have an obligation to make sure that they're getting the best deal on on their projects and and our risk.
Possibilities and make sure that we're providing good value.
And we have a lot of very technical projects right now and the more technical projects.
We prove out value more easily than we do on some of the more simple projects. So we see being able to bet that to help benefit our business throughout this year.
Perfect. Thank you very much the time congratulations on the start to the year and best of luck.
Thanks satellite.
Thank you. Your next question is coming from Q, Tim Mulrooney from William Blair. Your line is no.
Good afternoon Brits NAND.
Hi, Tim.
Hey, so to start off on the Guy that.
I know you touched on this but I was little surprised to see that you maintained guidance, which is great news.
Given most of our companies they've been lowering their numbers in the face of increase macro uncertainty and I heard you say that you weren't experiencing any delays in current projects.
But but would you discussions with customers has there been any indication.
A push out a future projects or any signs of changing behavior in the backlog in the pipeline.
No not currently our our customer base is pretty optimistic about the workload. This year now everybody's mindful about the Corona virus and if it becomes a long term issue that there may be some effect to that but as as we see it today were very comfortable that that things will continue as we expect.
Okay. Just wanted to confirm thank you Bruce and on the.
Switching gears on the supply chain.
I know you typically make most to your capital investments in the first half of the year.
I thought maybe you procured some of your pumps from China, I guess I was wrong about that can you just remind us where do you typically procure most your pumps from and how many different suppliers you have in the event of a supply chain disruption I'm just looking for more color into your contingencies for growth Capex.
Yes. Good question. So the two main suppliers that we purchased from our both German businesses that are Chinese owned.
Currently the products that we buy come from Europe, and and other Germany largely in other parts of Europe, and then or mounted on trucks and some assembly is done within the U.S. all the parts supply for those machines.
From Europe, and the U.S. as well, we do have some other suppliers that are Korean and nature that.
We have very similar where parts to some of the German made units.
We do.
Buying a lot of our where parts and machine parts for our machines from the supplier to the manufacture and so we have very good relationships there and we have very large inventory of parse. It when you would need to run that out for some period of time.
Yes, okay. Thanks for the color.
Maybe just one more from me.
You discussed pricing already I think you said.
4% ish.
Usually update pricing at the beginning of every calendar year that right.
Yes, so it's done and many different ways. So often is by project. So as we roll off one project can go onto the next one we'll we'll bid that with a with any increases that need to come because of inflation labor that sort of thing and other contracts are annual comp and then they get the updated.
Typically end December just started into January.
In the UK, we've been a little careful about getting the rate increases out as soon as possible with the Brexit concerns there, but now that we have.
Some certainty on how that will play out or price increases are being rolled out currently in the UK.
Understood. Thank you very much.
Thank you.
Thank you as a reminder, ladies and gentlemen that star one to be please ask your question Q1 moment. Please when we pull for further questions.
Our next question today is coming from Alex Regal from B. Riley Your line is allied.
Yes. Thank you.
Can you update so what's your utilization rate was in the quarter and then circling back to backlog whos backlog compared today to say the previous quarter in the previous year.
Yes, Hi, Alex this is an m. so on the utilization utilization for equipment and a little higher than 75%, which is right in line with where we expect it to be in in Q1 and the fiscal year.
Two.
No no Alex on the backlog question as you know we can only track the the larger projects, it's very difficult to Pratt.
Half of our business is kind of day in cost calling kind of work.
Our backlog on the major projects using our specialty equipment is.
I can't give you a percentage, but it's greater than what it was last year.
And then as it relates to the U.S. could you give us a little bit above kind of geographic.
Plus or minus which markets are a little bit stronger, which ones are a little bit weaker.
And.
Comments or highlights on the ones that are maybe inflecting.
To the opposite direction.
Yes, all of our markets, except for two or heading in a better direction than they were last year and largely because those two markets had very large projects last year, there were uncommon to those areas when being salt Lake, where we did quite a lot of work on the on the Salt Lake Airport that work is on hold now until the next phase starts.
So that is affecting them and they're slightly going down and then in Oklahoma. We had two very large projects last year that were on comment to that market. So that markets have been a little bit this year, but a more than offset by the growth in the other markets.
Very helpful. Thanks.
Thank you and then thank you Alex.
Thank you. My next question is coming from Remy Malhotra from nuclear capital. Your line is now live.
Okay.
Good afternoon wonderful job on the operation.
Streamline processes and.
Ed to two she's sort of categories of questions and that's been touched on a lot by the other.
Color is about sort of forward outlook and I think.
Sort of obvious right like God.
A lot of industries are going through an extreme shock travel being sort of.
Traveling energy lets say being too really.
Front and center, one then probably.
The hotel or a cruise operator, or an airline executive how their business is going only 90 days ago that they would be very optimistic about it and here to really turned out a dime and.
Im trying to manage liquidity et cetera, et cetera, and so what I.
Back in your type of businesses is construction project is funded proved its green lit and that let's say for the next 12 months, but.
Perhaps 12 month, you guys really feel like you had good visibility or or is there real chance that.
You know after you work through the backlog that you know.
You know projects are just not getting lit up because the.
The chaos in the financial markets.
Yes, I mean that great question. So we do have good visit that visibility for about a year out now projects that are started underway very rarely get.
Shelved unless unless they run out of funding for the for the project, which we don't see those things things happening now so we do feel pretty good about where we're at through the remainder of this year now depending on how long the Corona virus issue stays in play and how how deep it affects a businesses.
Certainly it could affect things into the future, it's really hard to predict what that might be.
And so you commented that 70% of your cost structure is variable and is that literally trucks and operators or what.
Well its fuel is parts a it's everything related to the operations of the business.
Mhm and so if we did see that Paul up the idea is idle.
Idle as appropriate or reallocate, if you have the opportunity to different markets.
Yes, yes, I think we would have to see how it affects the different markets that we allocate the assets to where we can get the best return on them and then we would look at what are what our capex spend would be to offset what our needs would be.
Perfect and into my next.
A question more financial capital allocation, but don't tell that.
The first that so.
In.
110 million EBITDA guide.
My right that that translates roughly two.
80 590 million whats.
110, EBITDA is how much of operating cash flow.
On an entity.
Yeah, Hi, if you have me if you will get done through the way, we think it with free cash flow in the businesses less capex less interest and effectively converts to and just under 40% of EBITDA.
Okay, and when you say capex in that scenario is that maintenance capex or does that include growth Capex. It's all capex. So we have given some guidance them on this call and before about the Capex range is 35 to 38, so if you take that.
The midpoint on that and that's all Capex is planned for the year, including go.
Okay, and so if we used 110 or that you put out here and say, 40%. That's you know 45 or 50 million.
After tax.
I just got Flowcrete allocate and then if you're trying to get to the three and a half times leverage am I thinking about it right basically almost all of that goes down to that paydowns or yes, yes, yes, I mean, and first and foremost that split our focus in minutes. If you do the math there is some free cash flow leftover and that we would.
Okay currently, but yes, I mean, that's our focus is to them and pay down debt strengthened the balance sheet.
And and that's fantastic and I think managing liquidity is incredibly important in this environment.
Especially given the history of the company.
The second.
Quite so with the decline in interest rate.
And you know substantial debt that you guys do you had do you see an opportunity to refinance the.
The the debt facilities, you know what the combination of the quality than.
You know.
Protect the company in from and maybe get better better terms or or.
I guess I'll stop there and let you let you respond to that.
Yeah, I think the short answer is yes, absolutely I mean, I think the businesses, well seasoned whether or not that much different and market than we were and back in December of 18, and the company execution and public information is out there so and there is definitely.
I don't opportunity in India, and we are outside of our.
One year call anniversary. So yes, obviously the market is more favorable today than when we first came out so that's something we're very thoughtful about.
Perfect and so just to be close at that that's something that you guys are actively talking about at board level and exploring in terms of.
At the opportunity yet.
Yes.
Well that's it for me congratulations.
Thank you for all the focus and hard work.
Thanks, Remington actually me.
Thank you we reached one of our question and answer session I like to turn the floor back over to management for any further.
[noise], we'd like to thank everyone for listening to today's call and we look forward to speaking with you. When we report our second quarter of 2020 fiscal results in June. Thank you.
Thank you that does conclude today's teleconference. You may disconnect. Your lines. This time and have a wonderful day, we thank you for your participation today.