Q1 2020 Earnings Call
[noise] Good day, everyone and welcome to Norbord Inc.'s first quarter 2020 conference call.
As a reminder, today's call is being recorded webcast Norbords website www dot Norbord dotcom.
So first discussion today may include certain projections and forward looking statements regarding norbords businesses future actions unexpected results [noise].
These statements are subject to known and unknown risks on future results may differ materially.
Further information on the one risks you see the caution regarding forward looking information statement Norbords February 4th 2020 feet.
The information form under cautionary statements contained in the forward looking statements section.
Norbords management's discussion and analysis based on February four 2012.
Now I'll turn the call, which masterpiece or Weinberger, President and Chief Executive Officer. Please go ahead.
Hi, Carolyn good.
Good afternoon, everyone welcome to our long 2020 conference call.
I'm joined today by Robin line partnership Huh.
Okay, that's our director of corporate Affairs.
Robert Winslow, our vice President of Investor Relations firm corporate development.
Oh, sorry, just one I'm sure, we'll keep our prepared remarks <unk> this quarter.
Oh got a chance to listen to what Richard I'm, calling on sort of not a replay I'm transcript will be available on our website.
Just want to know where I want to take a moment drawn out of jail can't born she brought our Q1 results as well gosh, how to covert launching pandemic cashing in parts of our key markets and of course, telling actions we're taking.
That allows want to make a few comments about our balance sheet and capital allocation going forward to take your questions.
Well first quarter results most worst wrong.
We generated $75 million over just maybe.
Our best result in six quarters, I'm really jeopardy, we're going to level.
In North America improvement.
Those are telling me that began in late 29 channel carried into the fourth quarter 220.
Spring and crashed on Pantomimes on par with our benchmark process.
We produced 79% less available ups children, if that was 9% of available capacity.
Well actually I'm definitely cortone hundred wasn't corridor one level.
Okay. So different from older days of downtime in the quarter.
Hi, I'm, especially pleased that they were able to <unk> functional cost where she's girls comparative quarters.
In Europe, Donald <unk> improved <unk> true <unk>, the first quarter.
The Barnett process continues to decline.
The decline to start about Q3 last year.
I would just with me, but I was really one indoors lower sequentially.
Our Inverness nothing else was ramping up well, which supported the 26% sequential in crashing in our European she'll problems.
While the construction <unk> Uh huh.
The second same sort of investment <unk> has recently been snow <unk> go to covert lighting.
The mechanical insulation is largely complete or were still expects to complete this project afford wasn't here.
This will help us.
Sure sure junction, driven or think rose 40 hours to come.
Turning to try to impact of close with my team and I cant markets.
Wondrous, where I wish I had the most of that I had an impact was north American industrial.
Where our customers that's most mature products like upholstered furniture.
<unk> <unk> <unk> central.
After suspend operations in March.
We also saw me, Okay government and post click looked on older Shuttle manufacturing a me too.
Which forced many of our key customers in our largest European market to close operations.
However, in both cases businesses have stores really Oakland.
<unk> three weeks.
Waters or starting to come back.
Oh brothers in North America, Hi, indicating.
Hi, Brad business has of course consistent demand across three to four weeks after significant declines expires in March.
Oh no. It's dropped me of shame particular, Brazilians are the man from Germany, and the Benelux, our second largest European markets.
Well as North America, North American repair and remodeling, which represents about a quarter or north American demand.
Well this is encouraging in the short term.
Very advanced considerable I'm shouldn't get around to death.
<unk> economic impact of covert 19.
In April we would just operating capacity about 35%.
Both North America, Europe by adjusting operating schedules.
Our current flexible operating configuration largest <unk> most of our people employed a bit hydro scaling up and down that's needed to much production with the amount of trying to spur parent <unk>.
While these are difficult times underworld right.
To adopt.
<unk> <unk>.
It's not lost confidence in the future of hours they were a company.
We're closely monitoring effects of the pandemic.
I have confidence it or <unk>.
Part of the economic recovery when the time comes.
With that I'll pass the call over to Robin.
Thanks, Peter and good afternoon, everyone.
Norbord, we've always taken a balanced approach to capital allocation and right now our priorities cash conservation, we're taking a number of steps to do that.
As previously announced we are deferring noncritical capital projects and have further reduced our 2020 capex budget by an additional 25% 100 million to $75 million.
They're virtually no capital projects committed for next year and could if economic conditions. So wanted pulled back capex to a minimum sustaining level, a $35 million and 2021.
We see great value in our stock with shares trading at a steep discount to our view of intrinsic value.
But while we were actively repurchasing our shares in January and February we suspended buybacks in March for the time being.
Finally, I'd you have seen our board reduced the dividends to Canadian five cents per share this quarter, which will save us $34 million annualized versus the prior quarters level.
This is entirely consistent with our variable dividend policy that gives us the flexibility to adjust the payout level up and down other operating results outlook and balance sheet allow.
So turning to our balance sheet.
Norbord has no bond debt maturities until 2023, and our liquidity remained strong with $247 million available at the end of Q1, even after we invested nearly 70 million in our usual seasonal working capital increase.
This seasonal build typically reverses over the remaining three quarters, and we'll release cash flow as it unwind.
We have significant headroom versus the two financial covenants governing access to our revolving bank lines, neither of which is EBITDA based.
First is net debt to cap, which was unchanged from Q4 at 40% versus the 65% Covenant and the second is tangible net worth which was almost double the 500 million covenants.
We will continue to prudently manage costs capital expenditures and liquidity to protect your balance sheet flexibility.
And with that we're going to jump right into questions and so I'll turn things over to the operator, who will open up the lines.
Thank you, ladies and gentlemen, if you wish to ask a question Keith signal by pressing star one on your telephone keypad.
I'm sure you mute function if switched off to allow your signal to reach our equipment again that is star wanting to ask the question.
Oh.
Our first question today comes from John Babcock <unk> from bank of.
Hey, good afternoon.
I just wonder.
Good kinda talk about.
I guess that you're kinda side at this point and also I was wondering how long could you keep capex at that 30 pagano level.
Oh, Hi, John Good morning, It's Robin afternoon, I should say it's robin.
Yeah. So I'll answer the second one first I'd just point you back to 2008 during the you know the global financial crisis, we kept capital at that minimum sustaining level for five straight years. So that's a you know that's our track record of things get that difficult you know, we could keep it well.
Keep sustaining capital very low for for many years. It wasn't a hole there wasn't anything individually significant that we cut out of the budget for this year to reduce the 25 million out of out of Capex.
We only really not the two significant projects going on this year as you know that's Inverness phase two which as you heard Peters days, you know is largely complete.
And we had been investing a little bit in Chambord.
Were also the activity on that side has had slowed write down from for multiple reasons. So its really just cutting out all the other small projects that we would have liked to do but that aren't essential at this point.
Okay and with regards to.
Realizing you're generally tend to produce you know to demand I was wondering.
It is kind of still ramping up and given the overall situation.
You know with silver 19, you know is there ultimately sufficient demand for Supernus continue ramping up production at this pace.
Warning or shrinking so [laughter] I'll take that long Oh, interestingly enough Oh speed amount on the continent has continued its Rockies parents and show our Moon Belgian must continue to run flat out.
ER for you know a lot of our demand growth.
No no Europe is predicated on content.
Shops attention affording importance materials.
From South America for many years younger believe stopped no doubt trends will continue to understand just continue were shut up.
Yes that was really their foundation for our for our growth around or boy model.
No.
And then back to North America.
It's kind of the reduction operating capacity for.
35% in April is that about how much did.
Can I talked about how trends of kind of evolved to debate here.
Well that's for sure no there are no rule.
<unk> statistics or not that's accurate or not close soon.
I would say my best or some other side demand.
The reduction in demand is responsible for some of that but we also believe that oh for their customers for supply the.
No I'm construction segment.
I'd like to see their doors, starting to turn levels, the world's left and we're already Duncan.
You know write a richer show understandable given these levels I'm sure isn't it.
And any color you could kind of provide on.
Order files, I guess stand right now.
Well I would say that may have been pleasantly surprised by the level of person is still diminishing over the last number weeks Arden My prepared remarks, I refer to the fact that a broader set of Shannon.
Turning improving over the last three or four weeks.
Teradata in combination with the fact that the pro dealer sharar between us and the builders have very low inventory levels.
That's a tough move shown there were helping.
Our order intake over the last.
Three or four weeks.
And have you done, but just kind of last question before I turn it over have you announced.
In time for me.
Well I think right in our in our.
Public disclosure around downtime retreat published at the end of March.
I'm sure a shot up there for adopted this.
Flexible schedule.
And that allows us true and crashed where didn't crash acorda generative favorable demand well shut up and it wouldn't make any sliver announcement with regards to about them.
Remember cleared up into priced for antitrust reasons real only reports on downtime. After we have taken it's unrealistic or that policy going forward, but.
Our published Washington has always been through only produced which we can show on chauvinistic without the mantra.
Okay. Thank you.
Thanks, John.
Next question comes from kept time, Mamtora I'll be minimal capital markets.
Well thank you.
Oh, Okay Titan.
Yeah.
He is doing but I would imagine back some okay can be invested anymore.
[noise] cadence sorry to interrupt me anyway.
You stopped we couldn't hear you. After you said Hello, So you need start again please.
'cause this though.
Yeah, I can hear your now yeah, okay, sorry about that nowhere I was just curious I'm just wondering one that's kind of this would vectoring thumbs up Hollister won't be end markets trends are.
The board in your prepared remarks on psychotic knowledge is doing a little bit better, but some of the industrial end markets, especially on the furniture site hockey and this would be good if it's possible to be less solves some.
Sponsor to quantify how some of those end markets are doing in holiday if not deep into the second border.
I'll do my best.
Sorry, I mentioned already.
They are in our sites Ashwin, Maine study and strong you know rich in line with previous owners.
Housing already talked about at the last question. So you know reflecting a decline.
End of mine.
[laughter] for a long construction.
Primarily driven by the end of March on them and the first half of vehicles are starting to shoot up markets recover.
Well at least a lender the near term.
In terms also aren't threshold amount or certain aspects of your industrial demand have continued its true true abroad.
Oh, a paper, but a heavy manufacturing for shovels inch where there's lots of people are working close together no doubt upturn were curtailed or bristles. They were not doing to central that vision is starting to come back now and you know I would sort of say.
[noise], which you I'm guessing a breath here, but no sort of a 50% level for a protocol orders probably a reasonable estimate no from my perspective at this stage.
I'm not worried about Oh, my gosh overly ambitious baby.
[laughter] tens or 20% of our total.
Total shows.
Understood. That's helpful and then she's going to Capex again.
Just looking at the time, so you get down to 75 million Bucks off the bad minimum back you have is about 35 million and it sounds like you know kind of eating in is left on trim board. So one how are you thinking about spending that you mean <unk>. It's just something at this point European.
That you would want to beat did not anymore for 2021 kind of spring or and then kind of walk on the big buckets that good bridge from 35 to seven suffice.
Okay. It's on August me, there's no urgency on that occur under Chambord spending at the moment.
However.
Structure activity has been stopped completely in the provinces will have come back show.
I'm sure we haven't been able to spend any money, even if he would have one or two.
That's obviously a scenario where are you there are spending is going to be minimal.
Until they've got a better perspective.
On with market recovery.
You know thick trunk off the remainder as to completion of San furnace first don't go direct.
Rather than a rather than on shouldn't you got a.
No we expect a project completed before the other your no. There's a lot of to most of the mechanical installation is complete as of today.
I'm, sorry, I'm, so what does that thing.
This is about 59 months I saw them there.
[noise] surely left on that shows over Inverness.
Yeah that sounds about right, yeah, not to lever in that range.
Got it that's what I've done a good luck.
Thanks [laughter].
Our next question comes from Sean Stewart of TD Securities.
Good afternoon, Thanks, a couple of questions.
Robin can you help us with.
Some of the other liquidity leaders you can pull beyond a lower capex and.
Q2, working cap declines.
You go through some of the other variables that might be in play and I'm thinking is expensed. It for roles tax refunds things of that nature or any other.
Variables, we can expect to help support liquidity in the mature.
Sure Yeah, I mean, obviously one of the things. We've we've done is look at all discretionary costs.
And you reduce them to the extent, we can obviously things like travel a it's it's come down significantly it's almost been eliminated in the last two months as an example, but I will note that we last year, when we curtailed hundred mile House and.
Cardio line one.
We have our philosophy is always been whenever we have curtailed significant operations, we've taken the equivalent amount out of our overhead and so we already streamlined our SG nine last year.
Which will benefit us through this year, but obviously, we could do more there. If if we you know if that made sense. If we if we face ongoing significant curtailments.
So that's on the you know on the overhead cost French.
And in terms of things like a tax deferral, yes of course, where we are taking advantage of of all of those opportunities where they exist. You know there have been things like payroll taxes, where you can differ on you know BHP in the UK a those kind of things were taking advantage all of all those opportunities too.
To just defer the l. outflow of cash where that's permitted.
And then on the income tax fan you will see we already got a significant refund in the first quarter and there's no a receivable on our balance sheet and so there will be more to come in the future.
And so we are taking advantage of all those leavers.
And I think it's a 40 million dollar receivable you still had that that is phased in over the next 12 months I should.
Yeah, I'd want it won't all be 12 months, but some of that would be related to filing 2020 returns, which would then we wouldn't you wouldn't be able to get that cash until next year.
Okay and last question for me Peter if Inverness phase two is wrapped up by year end I think the previous guidance was it say an extended ramp up begs the incremental capacity.
Assuming demand starts to normalize in Europe, how should we think about the incremental capacity there be hey, Dan.
And your 2020, well well sonar pick me up talk to them or they have talk in general about no about a 100 million instead of 400000 cubic meters per your or where does for the four to five year period.
That's true ramping up and I don't see any reasons why why we should be viewed or <unk> comes out at this stage.
No. Thank you for that were below a lot of there's a substitution right that's not necessarily it's not necessarily depending on who demand creation.
Got it.
That's a that's it for me thank you very much.
Thanks, Sean.
Our next question comes from Mark weighing problems of global.
Thank you.
First question you get given the an unusual nature of dynamic I'm curious if.
A random lengths pricing is still a good proxy a very good proxy for following.
Your your realizations.
Oh, Yeah, Mark that's Uh huh.
That's always a tough almost a telephone for us as well I.
I would say that Oh, no random last is a reasonable.
Proxy for markup, reflecting off market activity at the moment.
Peter I think even in some regions, where the cost we have had some concerns she wants to Dan.
It seems to be a reasonable approximation of what's going on at the moment.
The challenge in Arkansas to fluctuate largely up and down there's got to have the lag effect.
First of all.
The Childress.
Well, there's much a difficult Oh sure.
Reconciled to our murder to our dry realization.
In addition, or some of our industrial products on the north fixed long term pricing or so.
Oh Im sorry high level market stores prices were looks more I don't know oh poor pricing environment or those kind of approaches will look harder. So that's daughters. Other children major moving parts of my cutover is difficult to reconcile to to a random like sprint.
And the financial think of came around you know I think our.
<unk>.
Those numbers public or not yeah. You can you tell just stepping back sorry, better if I talk to the numbers [laughter] D. A if you do you come back into a realization versus the originally weighted benchmark Mark as I know I think you've done you do that yourself.
Yeah, we were 100, an 8% in that first quarter version is 120% in the fourth quarter, and obviously that differences related to that lag effect and that Peter just outlined and I'm just also remind everyone that.
Only about three quarters of volume in North America is tied directly or indirectly to random lengths. The corridor that 25% ralphie, our volume that it's going into specialty and uses is de linked from random lengths and negotiate a pricing that doesn't move up and down a with random lengths.
Great and and.
We also get a sense as to where April was.
Either relative to those benchmarks or where it was relative to the first quarter.
I lost the right you asked a right to our next quarterly review I think you're thinking I rely on done up nicely up myself no problem, Oh, and then on the cost side.
Can you get the flavor of what's going on with wood resin energy.
Well I mean, we're cautious assure us you've heard us say for a long [laughter] for a long time now have barely moved to give a little sort of quite flat I'm not I remain that way.
At the moment, you're really across the board.
No I wish you all know on the aggregate persisted and I'd be down slightly because a 100 miles familiar with British English are by far and away our highest cost.
Well what cross mill.
So obviously not taking anyway at the moment.
Rosin prices are dropping a pure when there is a link their indirectly running true true energy crisis, where oil prices.
And no I understand your energy was a small relatively small portion of our of our ER.
Cash manufacturing cost most of those electricity.
But there's a small portion of those natural gas and those costs. Obviously have continued to do quite low Robin I didn't know if you can provide any specific sir.
No no no okay, [laughter], so and that I guess [laughter] submission perspective and everything.
No cost.
<unk> costs I think are there any Jim I mentioned, the fact that no. There's no cost continued to decline in March and April.
Despite the fact up north felt the deal that's curtailments.
And then I guess that last part because.
Maybe one could come out fairly favorable from from much of what's been done in the last part is I guess.
The absorption of fixed costs, given that you are producing a lot can you taking some actions but.
It's also get up.
Ballpark number of what to used and what percentage of six call and kind of modeling.
And I.
Significantly lower volume environment, AFECTAIR, Mark I've talked to a true or the major cost tractor show a religious about a third of our manufacturing costs Cashman, if I can cost.
RASM was about a corridor.
I'm not saying there's about 10%.
Sure. That's got went to a cop 70 70.
So the remaining roughly.
As for variable.
Sure. Thanks.
I bought in order to current environment.
With all the.
You know the government programs that are out there.
For the fact, the fact that some of our fixed costs has become variable at least in the short term.
Show the could push on those are probably slightly lower than that.
Okay.
Okay very helpful. Thank you.
Thanks Mark.
Our next question comes from Paul Quinn of RBC capital markets.
That's correct there and good morning for me [laughter] Huh.
And the but it certainly feels like getting just yes, the lack of its cost fixing it didn't make it makes a cost tracking into Q2.
Our down quarter over quarter, and I'm just trying to.
You know I suspect the input costs are still could be down space, you I mean again and the regicide each wondering the effect of the downtime it.
You know exactly that's holding your cost flat are you pushing up or is it continues to come down.
Well I picked in life public comments earlier I mentioned, the fact that we've seen costs continued to decline in March and April.
No are probably took a lot of downtime and you're right. We have a crew couple of benefits at the moment as long as declining resin prices on the back off.
Mortgage trended lower oil prices.
At the same time, you know our Canadian capacity.
It's benefiting from you'll hear about 70% of or could any manufacturing costs is Canadian dollar crashed and the Canadian dollars today centers like 70 cents compared to 76 cents much long ago.
So those are a couple of things that I really playing out of favor I also mentioned.
But to some of our traditionally fixed cost as a love with more variable at the moment because of all the government programs that are available to employees.
So through I mean, it's early in the quarter show, but I'm I'm pleased with the direction.
Our operating team was able to ministers in North America.
Yes.
We've seen have kicked in and it will be president North America. The last two weeks shoot you do you attribute that to demand coming back or is that that inventory. Just document you talked but it was are going to call is just sort of weakness Maxine any uptick in demand is it is it's going to flow through in person.
Yeah, I think it's probably the culmination of those two things.
Paul you know I think.
But keep talking bug inventory is about as long as I've got some done the cuts or even lower obviously you know people have taken.
You know dish.
Got a fixture extreme uncertainty the trajenta right thing richer shops lives and you know minimizing the working capital and I'm, taking inventory down show that they are no.
Flux are there ever more flexible operating model just like our model is more flexible today I don't agree that's traditionally being.
Sure I think it has reached <unk> absolute minimum level at the same time.
We're starting to see demand for recovering.
For several reasons I finished from the low let's say the low point most people tell me builders in particular to tell me about showed young in March.
Yes, sure machine things improve because first of all no. There's a bunch of states, where our group, which are being remain open for construction.
Secondly, builders told me that they're starting to show homes again.
The other clips on that expected.
They're starting to see industrial demand come back as I mentioned earlier.
No and ARNA or demand continues to be running stronger so it's probably a combination of improving amount.
Instead of a short term.
Combined progress a inventories just kind of shrink any further.
Okay.
That's helpful. And then just flipping over to Europe. It looks like it must be afraid just sort of.
Uh huh.
You know stabilized here do you see this at the bottom the bottom the placement staple in Europe I should be came together.
Yeah, I would say a as art mentioned earlier pull a pre though demand on the continents really seems to have continued to be strong throughout this whole periods. You know that's when it took me by surprise.
But uh huh.
Convalescent plasma surprise.
I'm sure it looks like things have bottomed out there.
And can you tell me no, it's probably a bit really to tell whether we have in rent and has reached a bottom.
You know early indications might you just talked about you know we're still is up market. There still are starting to come back and then reopened as from Snake show <unk> Reserve judgment until you know a month or two from.
Okay.
And just say Las Vegas.
Export markets out of North America into each you what's what happened.
You know in Q1 did you see big drop off.
Page.
With my team took over and have you seen that stuff or to fall pick back up.
And factored in the first quarter I think we're pretty much in line with previous quarters for for export program.
Right no debt, putting out a proportionate represents less than five for about 5% I believe over a total of our total north American production.
Well, there's been a shuffling between the different markets.
I think a.
To bring into China has been crashed along with recently.
Divergent true bushing ownership to three market's ripe to Vietnam, China, and Japan is our biggest markets.
As a Japan volume has been quite strong.
We're doing a competition we have terrorist from Europe.
But I think transportation costs have become are huge hindrance for.
For that long haul shipping those containers back from up to two Japan.
Yeah, it's a bit of.
Shuffling of right of rooms goal, but total it's more or less inline with what we've said in previous quarters.
<unk>.
[music].
Sorry, I didn't hear a muffler I couldn't hear him.
Well, that's best of luck going forward.
Hi, Thanks.
[laughter].
Our next question comes from Andrew Kuske <unk> of credit Suisse.
Thank you good afternoon.
That's the question really revolves around your rotating curtailments that you've got on your plants and I guess, there's just a few circuit or related issues.
You mentioned, that's a little bit earlier on that to certain degree you're getting some benefits from stimulus plan. So lets me house in a region, you're obviously keeping your people working.
Or greater degree then they rather watch would be if the shutdown specific plants and then.
So that's where theres one benefit I guess that the magnets that benefits. The first question I guess the second question revolves around your customer needs that just probably positions you better to serve them at the lower cost fashion and then third late in the Lucky as I guess, we learn from paid nine which in some of the research were painful when things came back. So you probably avoid that once we get back to normal.
Bargain thing you can go full throttle wouldn't Saturday issues is that latter point fair and then any color on the first two issues with the appreciate it.
Yeah, I think as a point is absolutely fair.
And that you know what Matt what my focus on the sort of pairing up mills in certain regions show that they have an ongoing supply in every region, where you know workers demand.
Showed that way and then secondly, they can sort of.
Rankings.
This rotating.
She shopped volume.
It's required if demand improves.
Or increases if demand declines.
I'm sure many picked up that's kinda flexibility in the current circumstances is really important you know the other auto writers, we do not want to abandon ban on customers.
Every working very hard on their term drew a two captive market growing and Ah. So I think this doesn't matter of intercept flexibility. That's also sort of <unk> no I think the responsible way to deal with our no. Our employees, just where we can maintain their health benefits.
Can maintain an income or whether it is.
Supported by the government in certain cases, especially in the states.
For the to parents in the short period of so they're not working.
The other thing that's kinda that's interesting observation from our perspective, you know there's a lot of discussion in the broader economy abroad claims starting.
Well, we are expansion just across our operations now on a Friday you know a regular basis. So people come back after a full all for a couple of weeks.
I may have to go alternatives have turned develop.
And to amounts.
Very strict protocols coming back to work.
To make sure that all of our I'm pleased to remain safe.
You know asked to happen so far I'm show.
You know I'm, not saying that we can teach lessons here, but it's been interesting for us to really sort of.
I have to have forced ourselves through their thinking process. What I believe mining industries are going to after think about here over the next couple of months.
That's very helpful. And then the second question just relates to your per unit costs were down.
Which is very encouraging but I guess, maybe some perspective on how that was tracking at the beginning of the quarter versus you had been then you're right in a related but that is you had impressive MIT gains.
In the quarter, so sporadic any color additional color would be great.
Yeah, I can't really give you like within the quarter color, Andrew but the and my P. It is indicative of the kind of productivity improvement that we've been able to.
Realized in the quarter.
Remember that we you know we consolidated a bunch of downtime from last year by curtailing Cardio line, one and hundred mile House.
And so I think that's part of what were what we're seeing now in the first quarter and as Peter just outlined this.
This rotating curtailment flexible curtailment configuration that we have in this current environment. We're doing yeah. We're we're finding a way to do it in as cost efficient ways. We can and that's you know we're happy to see that in our and our unit cost.
I'm I'm rushing some payback of investments we've made.
Over the last couple of years is wrong, but you're right.
Why you're seeing some others and my P. now are coming up as well right.
Okay. That's great. Thank you.
Great. Thanks, Andrew.
Ladies and gentlemen that concludes the question answer session I would now like to turn the call back to Mr., Peter Wijnbergen for any additional they're closing remarks.
Well, thank you Kevin.
All right rather than other Robert and I are available to respond to further questions if any.
I want to thank all of here for taking the time to participate.
Okay. So your thought there answer me look very much forward to report on our progress next quarter.
Hello, Good afternoon.
This concludes today's call. Thank you for your participation you may now.
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