Q3 2020 Earnings Call

Two general Finance corporations earnings conference call for the third fiscal quarter ended March 31st Twentytwenty.

Hosting the call today from the company's corporate offices in Pasadena, California are Mr., Jody Miller, President and Chief Executive Officer, Mr., Charles franchise, Executive Vice President and Chief Financial Officer.

Today's call is being recorded and will be available for replay beginning at 230 PM Eastern time.

At this time, all participants have been placed any listen only mode and the floor will be opened for your questions. Following the presentation, if you'd like to ask your question at that time. Please press Star then the number one on your telephone keypad.

Your question has been answered and you wish to remove yourself from the Q press the pound key and it's now my pleasure to turn the call over to Mr., Chris Wilson, Vice President General Counsel and Secretary of General Finance Corporation. Please go ahead Mr. Wilson.

Thank you operator before we begin today I would like to remind you that this conference call may contain certain forward looking statements.

Forward looking statements include but are not limited to our views with respect to future financial and operating results.

Got it approach or.

Increases in interest rates for our variable interest rate indebtedness, our ability to raise capital or borrow additional funds.

Ability a sufficiently qualified employees to stop our businesses.

Changes in the Australia, New Zealand or Canadian dollar relative to the U.S. dollar.

Regulatory changes customer defaults or insolvencies litigation.

Acquisition of businesses that do not performance, we expect or that are difficult for us to integrator control.

Our ability to secure adequate levels of products to meet customer demand our ability to procure adequate supplies for our manufacturing operations.

Labor disruptions adverse resolution of any contractor other disputes with customers.

Declines in demand for our products and services from key industries, such as the Australian construction and transportation industries, where the U.S. construction and oil and gas industries.

The disruption of operations from catastrophic are extraordinary that's including viral pandemic such as the cobot 19 Corona buyers.

A write off all or part of our goodwill and intangible assets.

These risks and uncertainties could cause actual outcomes results to differ materially from those described in our forward looking statements.

We believe that the expectations represented by our forward looking statements are reasonable, but there can be no assurance insights expectation will prove to be correct.

For more details regarding these risks please see the risk factor section of our periodic reports filed with the FCC and posted to our website Www Dot General finance Dot com.

These forward looking statements represent the judgment of the company at this time and General Finance Corporation disclaims any intention or obligation to update forward looking statements.

This conference call, we will discuss certain non U.S. GAAP financial measures such as adjusted EBITDA.

A reconciliation at how we define in arriving at adjusted EBITDA is in our earnings release in will be included in our quarterly report on form 10-Q.

Now I turn call over to Jody Miller, President and Chief Executive Officer Jody. Please go ahead.

Thank you Chris Good morning, and we appreciate you joining us today for a third quarter fiscal year 2020 conference call.

I will begin with a brief discussion of our operations in our CFO Chuck ran us will provide a financial overview and our outlook for the remainder of the fiscal year. Following his remarks, well open up call for questions.

Before I turn to the results I want to provide an update on our company and managing through this unprecedented global crisis created by the Cobot 19 endemic.

First I'd like to say the health and safety of our employees as a foremost concern and I want to personally. Thank all of our dedicated employees for all their efforts through this challenging time.

We are considered a central business and therefore locations remained open across all of our venues.

We have implemented companywide business plans with flexible work practices such as work from home options.

Working and shifts practice, social distancing between employees and conducting meetings over the telephone and online.

Our recently introduced online rental and live chat is also aided in our customer response times.

Economic ball out from a pandemic is both swift and severe.

It is impacted sectors as the economy more than others. There's also created new opportunities as well.

Our core container business in both North America, and the Asia Pacific is holding up very well.

Overall leasing demand has remained steady across most sectors and we are seeing some new opportunities and temporary storage and office related to the covert 19 endemic.

Some of these opportunities are in the retail medical and industrial sectors.

Ground low offices continues to be the highest demand across all of our core product offering.

With respect to our product sales business, the typical demand to soften as expected and uncertain economic environment, but offset by some cobot 19 related sales.

Going forward, we'll continue to monitor trends that impact our business such as nonresidential construction starts the retail remodel business.

Hospitality industry and special events, we are hopeful many of these projects events are delayed and not canceled entirely.

Our liquid containment business, which is primarily operate in Texas through lone star's facing more extreme adverse conditions.

They've been dropping oil price due to lack of demand an oversupplied severely disrupted the oil and gas sector.

With the corresponding pullback in customer production levels, we've experienced pressure on both the utilization and pricing.

We have implemented measures to control costs without sacrificing our service levels for safety.

This strategy served us well in the last downturn as we emerged from that period with more business from both existing and new customers.

We're prepared to whether this crisis that could be well position to serve our permit primarily blue chip customers when oil market normalizes.

One potential near term opportunity is oil storage and our tanks.

We are receiving many inquiries for temporary oil storage at this time that being said the rate and term could be less than a normal activity.

On the manufacturing side or other our southern fab business has been fairly active during this period as we continue to receive orders for Gilo modifications. Both in the traditional uses as well as the cobot 19 related applications.

In summary, while we're unable to predict the severity or the duration of economic fallout caused by the pandemic.

Our experienced management team is whether challenging times in the past and we're fortunate to entered this crisis with a stronger balance sheet and liquidity than we've ever had and history of our company.

Our our business remains resilient due to the type of fleet, we lease and where we're able to cut discretionary fleet investment in acquisition, which enabled us to generate free cash flow and reduce debt.

Our hearts and support go out everyone impacted by the crisis, particularly the health care providers. The first responders and the central workers are all in front line.

We remain committed to helping our employees and our customers get through this extremely challenging time, and we look forward to seeing the country gradually reopen for business and return to a more normal way of life.

Now turning to a brief overview of our results for the core.

Our core North American leasing operation again delivered improved quarterly performance.

Pac man generated an 8% year over year increase in leasing revenues with increases across virtually all sectors.

Our containerized fleet once again led the way with 11% growth and rental revenue driven mainly by the favorable product mix and moderate price increases.

Offsetting strong growth Pac van was the continued softness in the liquid containment business at Lone Star, which recorded lower year over year results for the quarter.

As I mentioned earlier, we're being proactive and cost controls and hopefully we'll be able to continue to generate operating cash flow through the crisis.

Our North American manufacturing operations posted improved results for the quarter, primarily due to a large sales specialty trailers may or may to an external customer.

Now turning to the Asia Pacific region.

Our third quarter result in Asia Pacific region were higher year over year in local currency, but were adversely impacted by the declining Australian dollar relative to the U.S. dollar.

Leasing revenues increase in local currency and was up the pros across most sectors driven by higher year over year average lease rates.

Set sales revenues were up nicely mainly to the result of two large sales in the transportation sector.

Our Royal Wolf team remains focused on helping its customer through the disruption caused by the pandemic.

It appears that Theyre all markets will return to more normalized economy before the U.S. as a number of new cases in the virus is off in the decline.

New-zealand may take a bit longer is it as it has implemented more restrictive business and social distancing policies, but also has pent up demand for the future.

To conclude our third quarter performance was generally in line with expectation, but not without its challenges our fourth quarter will prove even more challenging because the disruption caused by the cobot 19.

We're closely monitoring the situation and remain focused on preserving our liquidity and minimizing the impact on our profitability, while sharing the safety of or employees.

Our senior management team is highly experienced.

And we have every reason to believe will emerge from this crisis the stronger organization.

Ill now call turn the call over to Chuck ran us for his financial review and our outlook for the remainder of the fiscal year.

Thanks, Jody will be filing our quarterly report on form 10-Q, shortly at which time. This document will be available on both the Fccs, Andrew filing system and our website.

Encourage investors and other interested parties to read it as it can state contains a substantial amount of information about our company.

Some of which we will discuss today.

Turning to our financial results for the record total revenues were 90 million in the third quarter of fiscal year 2020, compared to 86.2 million for the third quarter fiscal year 2019.

Leasing revenues were 57.8 million down modestly from 59.6 million, the probably years quarter comprised 66% of total non manufacturing revenues for the quarter down from 70% in the prior year.

Leasing revenues, excluding the oil and gas sector in foreign currency exchange rates increased 6%.

Nonmanufacturing sales revenues were 29.7 million the quarter up from 25.2 million in the prior year period.

In our North American leasing operations revenues for the third quarter fiscal year 2020 totaled 57.1 million a decrease of less than 1% from the third quarter fiscal year 2019.

Leasing revenues decreased by 2% on a year over year basis.

Decrease in leasing revenues was primarily the oil and gas sector virtually all the triple the lone star and will significantly offset by increased across the board and all the other sectors, particularly construction.

Sales revenues increased by approximately 6% primarily be industrial commercial mining and education sectors, while being partially offset by a decrease in the construction sector.

Revenues in our North American manufacturing operations for the third quarter, three and a half mean, including new company sales of $1 million from products sold toward North American leasing operations.

This compares to 2.7 million of total sales, including intercompany sales of 1.3 million during the third quarter fiscal year 2019.

As Jody mentioned, our manufacturing operations recorded or large sale, consisting of especially true at least to one customer during the quarter, which totaled 1.1 million.

In our Asia Pacific leasing operations revenues for the third quarter totaled 30.4 million as compared to 27.6 million for the third quarter fiscal year 2019, an increase of 10%.

Local currency basis total revenues increased by 19% decrease in revenues, primarily due to two large sales in the transportation sector as well as a 2% increase on a local currency basis and leasing revenues.

Consolidated adjusted EBITDA was 23.6 million in the third quarter of 2020 compared to 24.1 million the prior years quarter and adjusted EBITDA margin as a percentage of total revenues was 26% for Q3 fiscal 2020.

Down from 28% in Q3 of the prior year.

In North America, Jesse adjusted EBITDA for our leasing operations was 16.7 million in the third quarter compared to 17.3 million for the year ago quarter, adjusted EBIDTA Pac van increased by 11% to 13, the half million from 22.2 million in third quarter fiscal year 2019.

Adjusted EBITDA at Lone Star decreased to 3.2 million from 5.1 million in a year ago quarter.

For a manufacturing operations on a standalone basis, adjusted EBITDA was 490000 for the quarter compared to last year's third quarter, just see but if 17000.

Asia Pacific's adjusted EBITDA for the quarter was 7.7 million compared to 8.1 million third quarter fiscal 2019, a decrease of approximately 5% on a local currency basis adjusted EBITDA increased by approximately 4%.

Interest expense for the third quarter of 2020 was 6 million down 4.2 million from 10.2 million in third quarter of last year. The decrease was comprised of a reduction of 800000 800000 in North America, and 3.4 million in the Asia Pacific North American the lower interest expense interest was due to both lower average borrowings and lower weighted average into.

First rate of 5.4% versus 6.2% into year ago period.

In the Asia Pacific Urea to lower interest expense was also due to lower average borrowings and a lower weighted average interest rate of 6.2 compared to 13.7% in the prior year quarter as well as a weaker Australian dollar between the periods.

Net loss attributable to common shareholders in the third quarter was nine and a half million for 32 cents per diluted share compared to a net loss of 1.3 million for four cents per share in the year ago quarter, including needs results were non cash charges of 11.3 million and 1.1 million in fiscal years 2000 2019 risk.

Actively for changes in the valuation of the Standalone bifurcated.

Bifurcated derivatives. Both periods include 922000 for the dividends paid on my preferred stock.

For the first nine months of fiscal 2020, we generated net cash from operating activities of 53.3 mid 53.1 million up from 28 million in the prior year period, mainly the result of improved profitability in working capital management.

Turning to our balance sheet at March 30, Onest. The company had a net leverage ratio of 3.6 times for the trailing 12 months, which is a modest improvement for the net leverage ratios at both September Thirtyth in June 32019.

We've worked hard to reduce our cost of capital and enhance our financing flexibility over the past couple of years.

And are now in the stronger position entry into this period economic disruption is Jody mentioned, we're very focused on generating cash flow and maintaining ample liquidity. During this crisis in there for implementing restrictions are curtailing investing in spending initiating other cost cutting measures.

Turning to our company wide outlook for the remainder of fiscal year 2020 on our second quarter earnings Conference call. We stated that consolidated revenues for the fiscal year 2020 were expected to be in the range of 365 million to 375 million in a consolidated adjusted EBITDA was expected been range of minus two to minus eight in fiscal <unk>.

Your 20 from fiscal 2019.

While we're closely monitoring the situation the impact of Cobot 19 of the Colby 19 pandemic is fluid continues to evolve and therefore, we cannot regional predict at this time, the extent to which are results of operations liquidity and financial condition will ultimately be impacted beyond fiscal year 2020, However, based on our year to date results, including a week.

Our Australian dollar and and our view of the impact of lower oil prices and the pandemic in our business in the fourth quarter. We now expect the consolidated revenues for the fiscal year 2020, well being range of 347 million to 355 million and at the adjusted EBITDA decrease will be in the range of minus 12 to minus 14 in fiscal year two.

I was in 20 for fiscal year 2019.

This now concludes our prepared comments and I would like to turn the call back to the operator for the question answer session.

Thank you at this time I would like to remind everyone. If you would like to ask your question. Please press Star then the number one on your telephone keypad. If your question has been answered and you wish to remove yourself from the Q press the pound key once again to ask your question. Please press star one.

Our first question comes from the line of Wayne Carine of D.A. Davidson.

Hi, good morning, guys.

Good morning, pointing Wayne.

First off on toxins traditional and markets, which sectors are you seeing strengthening and similarly, where are you seeing some south Atlanta, we talked about lonestar and congrats to Lonestar, hi, and reduced oil and gas activity for Texas, How should we think about bond starts through 21, if we can even look at par and can you provide some more specifics.

On lonestars rates utilization.

And the general demand or sentiment in those markets.

Yes, So first start with your first question on Pac van as they stay in the call I think you know the health industry, obviously, you've seen a nice increase the application of our ground level off of some storage, but there's also some uptick in certain retail applications, where extra storage is needed needed for product and then.

Industrial you know a lot of the plants and ER.

Businesses that have a large consolidation of workers, they have extra storage and or jello's. There for you know.

Testing and screening and offices outside before people go in a those type of thing. So it's really kind of a mix across the board for storage and and GL lows.

But that's probably where the biggest uptick is.

You know one one thing that has happened as is our activity typically a the middle of April or construction season, usually a you know starts to really take off we haven't seen that as much. This year, but we've also seen less off hires so less fleet coming back.

Longer duration, so it's been somewhat offset but we're pretty happy with our with our core containerized business in both venues.

Holding you know really stable and doing well and you know its energy side is the is the biggest struggle and then your question on Lone Star.

Weve, obviously seen some utilization dropped.

You know through through this downturn and rate.

You know we are getting a lot inquiries as I stated on the call for storage Theres only some units that have been out you know maybe 100 or so that are that are out for storage, but we've got a way more quotes out than we have tanks and you know I think people are kind of waiting till the last minute to use that as a alternative storage methods that we do feel.

Like some of that is gonna be coming down the pike, a pretty shortly but you know as far as outlook on on the Lone Star I think it's hard to predict you know without knowing the oil prices and activity.

We're just really you know buckled down watching cost I'm trying to maintain our margins.

And so we'll be in a really good position to come back when when things improve.

Thank you and colleagues the situation in China, presenting any headwinds for you in terms of sourcing the new units.

Right any sort of indirect impact to your Asia Pacific business that you're seeing this quarter.

Not as much yet you know obviously, there's a lot of tourism in Australia, New Zealand area are coming from the Asia side, and you know some of that I'm sure. We'll have some some effect that our leasing revenue at Australia is actually a improved most weeks since the pandemic it started.

They have a lot of product that you know fits nicely into some of the or the new opportunities in Australia and New Zealand.

You know they do a fair amount of sales as you guys know and and the sales business technical sales are still very good but just your normal retail.

Hip sales are obviously down but our core rental business is actually improves understand that make it started but you know the sales business is definitely down.

Okay and final question here, but is there a way or how should we think about the impact of declining fuel costs on your delivery services and potential for margin opportunities there and.

Yeah, I mean, you know on the trucking side. Your your Ah you know in the 20, 25% margin most of the time. So you know fuel does play a role in it but if it's not going to make a are you know huge material difference is only one component you know versus the labor maintenance cost of vehicles and everything else. So.

It obviously is going to help our margin, but it's not going to be something that you know that material across the board.

Okay I appreciate the time today.

Excellent.

Your next question comes from the line up Brian GAC non I've gotten on Securities I'm, sorry that question has been withdrawn. Your next question comes from Luis Fernandez.

Yes, Hello, everyone.

Hi, Luis good morning.

Good morning.

Yeah, Alright, well few questions.

I guess first one would be on.

Related to you know given this environment.

Oh Wow, what are your thoughts on capital allocation fleet expansion solutions.

Yeah, we've basically cut a cut that all off of wouldn't say that there isn't a couple exceptions on the fleet side on GL lows.

As we said our demand is still very very good on on the GE lows and continues to be strong. So there's a little bit of a trickle capex going into that product line, but nothing really else and we've taken proactive rolls on cost cutting and we've kind of Ah you know put on hold acquisition.

And we would look at anything that came our way opportunistically, but we're not necessarily out pursuing those at this time and I'm going to wait to see how everything kind of shapes up and how quickly can get back to more normalized you know comp economic conditions.

Okay, and Where's your demand for those come.

Make mainly from a southern fab is our number one supplier on those but we do have other suppliers as well but.

You know were the demand is very high still for the GL lows. So we don't want to slow the growth there, but we're cautious to make sure that we don't.

By anymore than we have two but it's very very little fleet Capex at this point, we've got everything kind of shutdown.

Okay, Alright, and regarding on working capital requirements, you do expect that.

I would certainly.

Those requirements would decrease given the environment sub right.

No I would say, that's probably an overall fair comment Luis its a.

A general comment, yes, specifically I mean, it depends on the situation and the customer the vendor that sort of thing you know through the end of March for third quarter. We did not have a significant impact from gold and 19, and we have not seen a significant noticeable.

Deterioration.

Receivables, but obviously you know we expect some which we did one.

Okay.

And.

Do you expect any contraction at all coming from construction I mean, there's this crisis effect.

Trucks from clients.

Yeah, I mean, we're not yet to see the a the full effect. So you know the good thing about it is a you know there are a lot of units are staying out longer so the duration and stickiness of the of the a units.

Construction side or.

Is there, but we obviously you've not seen or the normal spring start up on new jobs that we typically see this time of year. So it's kinda yet to be determined if you look at Dodge Mcgraw Hill, you know, they're predicting somewhere around a 15% decline on new start.

You know, we're hopeful that the remodels or are just delayed and not I'm not canceled as well as you know most of the construction work. So we're still hopeful it's gonna be coming it's just delayed and you know that that's kind of you know what what most people are our.

Looking at as far as a prediction, but you know yet it's yet to be told to be honest.

Right.

Okay, and then on Lonestar mentioned.

There's some demand for oil storage I would think got stuff pigs, so could you.

Oh, so little bit about.

You mentioned, it's lower rates.

You know given the.

That's for women.

[laughter] oil storage capacity.

Huge demand for it.

Just want to understand that little better.

Yeah, it's our perception that we've had a tremendous amount of inquiries so not only from our customers that from as other customers as well.

That we haven't dealt with through normal activity and there's also you know speculators or looking to to take advantage of a cheaper oil and and companies that don't have anywhere to store. It Ah. So we've we've quoted a tremendous amount of tanks way more tanks and we have an inventory.

We've only had a couple of customers, so far or take tanks for oil storage, but oh.

It's extremely active so I think our perception is there kind of waiting to the last minute. Obviously the tanks can be mobilized very quickly, which is a big advantage of our product versus trying to build other type of storage. So we can set up takes you know literally within a day and they know that so I don't think bill the make the call.

All until they have to we've tried to impress upon them that you know we have a lot of quotes out there and there may not be enough a TENX to go around if all of it comes to ration, but I think people are just waiting to see if.

The consumption picks up in a thing get by without storage tanks. They obviously will but if they have to the you know our portable things make a very a very nice solution for if it gets to that point. So again, we've only had a couple of customers take or just over 100 tanks out for storage, but.

You know loss activity around the inquiry side.

Right right right, but they are good solution.

For anymore right.

And this again right no absolutely. It's a again very very quickly set up a portable.

Obviously safe and the containment around them very quickly just like on a site. So it's a very good solution if their store storing oil in the field I think their preferences, the stored closer to the refineries and get it through the pipelines, but as those pipelines are restricted in inflow and everything fills up you know down.

Downstream than than I think this is a great solution for upstream storage.

Right right.

Okay, and then finally do you expect.

And I know its little core looking but.

Do you expect this crisis.

Oil.

Oh, sorry Lone Star.

Like.

Previous crisis in 2014, 2015 hurt because it on the number.

Dropping to iron ore on Fivemillion, six merger or something.

Do you expect this time around to be similar worse or better.

Yeah, I mean, it's really a police hard hard to predict right now on current conditions, we feel like.

You know, it's probably getting into those levels. Just because everyone is you know stacking frac crews and stacking rigs and obviously, a depending on what happens with the storage side could affected as well, but our hope is and what our customers I think a you know there crystal balls are saying that as soon as a.

Economic environment changes and people start getting more normalized.

In a in a couple you know in a few months then you know consumptions going to show you know shoot back up and with all the production levels low it should draw drive oil prices up and get things up more active again. So my guess is a again just a with the backs that we have now and that's changing.

Three hour.

Everyday error every hour.

Our prediction is that it is gonna be you know a pretty catastrophic dropped but but a fairly short lived and the fact that we think things will bounce back a lot faster than than last time, but there's definitely a.

Okay.

A slowdown in the oilfield currently.

Yeah, let's hope that.

And then sorry to finalize I'm.

Sure could you update us on the bifurcated derivatives converted for no I thought that was already gone.

No the well now be weather was a conversion but is part of the a.

Part of that.

Convertible note the $26 million there is a minimum rate of return feature of 1.75, and that's always been there from the from the beginning so we've always had this derivative.

And so effectively or the way it works, it's it's based on the realize sale of stock.

Less interest paid.

It has to be 1.5 to seven five times, the $26 million so it fluctuates.

Based on the price more stock really is what it is of course, they would have to actually want to sell the stock of license affiliates they've indicated a vice attempt to answer that they have not so they'll stick with it so but a that that's what it represents.

But its hung up on cash right.

What's that.

It's all non cash expenses the derivative is the derivative calculations noncash.

Right.

So I guess who would only.

Sure Hi, so part of it or something.

Yes, yes, if they decide to sell the stock for whatever reason.

Which you know at this at this point or they have not indicated.

All right.

Alright.

Oh, Thanks, a lot can improve question for me good work.

Thanks Louise.

Thank you.

Once again, if you'd like to ask your question. Please press Star one. Our next question comes from Brian got non I've got some securities.

Hello, gentlemen, can you hear me okay.

Brian go ahead.

Good afternoon.

Thank you.

Do you guys think that Lonestar stays EBITDA positive at this point. She is similar to what you guys were able to achieve last time.

Yeah, I mean, we're obviously a hopeful that's going to happen we've taken a very proactive approach on on expenses. So you know our utilization is a kind of holding in there I think theres no question. They will have a the storage tank a scenario plays out and Ah you know the.

Thanks go out for storage wouldn't be an issue at all.

You know I, if you read all the releases from all the all the producers and things I think there's you know still flow back again, we concentrate on the completion and production side. So these companies don't want to shut their wells completely down because one there's penalties involved with that into its extremely.

Pensive to.

Really.

Frac the wells and they typically don't get the production now the wells that they were getting before when they when they shut them down so.

I think there's always going to be a work there we deal with some of the best customers. There. So we're very hopeful that we can for sure state cash flow positive through through this just like last time and the the storage scenario.

All they can be a lot more positive.

No the terrific.

With with fiscal year 20, almost over you thoughts <unk> I'm sure your thoughts.

About your free cash flow for 21, and where do you like to see your debt levels go down too because it seems like you're in the big de leveraging mood at the moment.

Yeah, you know I would say that certainly from.

Absolute dollar basis, we will be reducing our debt you know we expect our leverage just stay under four and the reason I can't be more precise it just depends upon the profitability portion of it but we are we would be generating free cash flow in we will be reducing or debt.

Chuck do you think it's possible that this company could get down to 300 million of dead in the next year.

Brian I, you know I'll say, it's possible you know I won't go any further than how likely that is but honestly the certainly possibility lot of it depends obviously on.

On the business itself the profitability, how much free cash flow generated but certainly with the reached the at the very minimum restrictions and effectively curtailment.

This thing in spending in acquisitions, we would expect to generate.

If you want to cash flow.

Terrific.

Thank you guys appreciate it.

Thanks, Brian.

Once again, if you'd like to ask your question. Please press star one.

Your next question comes from Evan dry sense of RMB capital.

Good morning, I had a quick question you you'd mentioned that you want to preserve liquidity, which you know makes a lot of sense, but I've noticed I think the last quarter, you've made some adjustments to your credit line. It with Wells Fargo too I guess to be able to refinance your bonds to come due in July 21.

They're gonna be callable at par coming up.

The next couple of months and with Great where they are I'm curious.

When when will you take those out or wood or is that can hurt your liquidity too much to do it.

Well Yeah. This is Chuck.

Yes, well the original plan was obviously to into the summer to look at Refinings right before they seem to see you nodes.

Something happened since the time that we increase the facility in February till now a at least king didn't happen. It became more pronounced. So you know the plant is still to be financing, which when we shape or form a it'll depend upon the markets. We had envisioned a couple of months a few months ago to be below the current interest.

It remains to be see what the credit markets are like in the summer and in the fall in any opinion into the spring of the following year calendar 21 to see where we are but yes. I mean, we would it's very possible that we would rely on the wells Fargo facility, the North America solely to.

Help in refinance at least a portion of that the senior notes, but I can't answer the question because I don't know what the credit markets going to look like.

<unk>.

Well thank you.

Sure.

There are no further questions at this time I would now like to turn call over to Mr., Jody Miller, President and CEO for closing remarks. Please go ahead Mr. Miller.

Operator.

I would like to thank you for joining the call today. We appreciate your continued interest in General Finance Corporation, and hope everyone remains healthy and safe during these challenging times.

Have a great day, and we look forward to speaking with you on our fiscal year end conference call. Thank you.

Thank you for participating in General Finance Corporation's Conference call. You May now disconnect your lines and have a wonderful day.

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