Q1 2020 Earnings Call
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Ladies and gentlemen, today's conference is scheduled to begin shortly please continue to stand I. Thank you for your patience.
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The first quarter 2020 conference call for U.S.P. industries hosting the call today, our CE old, Matt Missad and CFO, Mike coal.
And Mike will offer prepared remarks, and then the called will be opened up for questions.
This conference call is available simultaneously and in its entirety to all interested investors and news media through our webcast at U.S.P.I. Dot com.
A replay will also be available at that web site through June 720, 20.
Before I turn the call over to Matt Missad, Let me remind you that the April 22nd press release yesterday's quarterly filing and today's presentation include forward looking statements as defined in the private Securities Litigation Reform Act of 1995.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from the company's expectations and projections.
These risks and uncertainties include but are not limited to those factors identified in the press release and in the filings with the Securities and Exchange Commission.
Now I would like to turn the call over to Matt Missad.
Thank you Dick and good morning, everyone. We appreciate you taking the time to listen to our first quarter 2020 investor call.
We delayed our normal call due to our desire to try to get more accurate information about the private will impact of cobot 19 on our 2020 results.
Well, we definitely have more information that we did two weeks ago. The picture remains far from clear today.
What is clear to me is the strength and experience of our leadership group.
Credible work ethic of all of our team members and a bright future once the virus and it impacts are behind us.
I will briefly review, our first quarter and trusted you have already had time to digest the numbers.
First I'd like to congratulate you have the family members, who had outstanding performance through mid March when the responses to cobot began to impact our operations.
Our team members produced record net sales record net profits.
Ed we're well positioned to continue our growth trajectory.
These individuals have worked tirelessly to make sure we have safe working conditions, while providing the products and services our customers need.
Or dimensions project panels, and our new outdoor essential picnic table or example, the products teach from sales growth.
New product sales for the quarter or 97.6 million and are in line with our target for the year of 450 million.
But lumber market increased slightly during the quarter at the random length, Austin Index rose, 8% from the beginning a bit border and the southern yellow Pine Index rose 5%.
As the cold like shut down to a greater effect in early April.
Lumber markets dropped as random like pause it fell nearly 14% and southern yellow pine fell over 8%.
Over the last few weeks both indices have <unk>.
Currently the composite index is a little over 2% above 2019 levels, while southern yellow pine is down on a little overheat percent from a year ago.
So I know curtailments and coping shut down and said the market recover and we are monitoring the reopening timelines.
Are inventory positions are in line with our sales forecasts and capital management souls.
We do not currently have access safety stock and most of our product lines.
So when the first quarter in the rear view mirror, what does it look like going for.
Fortunately most of our business has been deemed essential by the various state government and we haven't been able to operate most of our facilities that will be it at a lower capacity utilization.
Our labor force has declined 10% with a combination of temporary labor temporary layoffs and some permanent layoffs.
We hope to be able to bring back all of our employees who are on February layout, assuming they are willing to come back.
Some have already indicated they prefer to stay out until the cares benefits fire at the end of July.
We have established a variety of contingency plans for the right size or business in the event additional staying at home borders or an active existing orders are extended.
Or other restrictions are placed on our ability to operate.
Our best guess contemplate to re opening up the majority of the U.S. autonomy outside the high totally concentration areas.
On June 1st 2020.
We expect a space rather than a full opening at that time.
Based on what we are seeing through April we expect the financial impact on our industrial segment would be the greatest.
While the retail solution segment, you chose the smallest impact.
Looking at the end customer an impact in agriculture, durable goods outdoor equipment and certain nobody m. furniture manufacturers can give us a good indication of the impacts on our industrial.
At present time, we hope for a full be opening up the economy by August 15th.
Once businesses are reopened we expect some modest supply chain in taxes companies get into rebuilding the Tories.
If these scenarios will improve and we are able to operate within those parameters are internal modeling shows the people still generate significant fast low and then anytime in 2020.
And we will be very well position for a whole recovery and 2021.
<unk> take into account or highly variable cost structure, both our manufacturing operations and S.G.N.A. Basin Park on the alignment of our sense of programs to P. bought and are a lot.
As you know we have a very strong balance sheet and they have increased our capital availability drink last several weeks.
While we keep a logical lie on a financial strength of our customers, we still see several opportunities to execute our strategic plan and continue on our long term fat to improving sales thrill.
Off at grow and shareholder returns.
We still maintain our capital allocation philosophy.
Returns to shareholders and expenditures for grow new products and manufacturing efficiency.
We are reducing our capital expenditure budget by $20 million as delay in getting equipment, coupled with the opportunity to consolidate sifting capacities, we'll either the furthest band or eliminate the need for this pen.
Yeah, we still have an apple pipeline of acquisition opportunities.
We are optimistic that some targets within our strategic plan will become available on more favorable terms over the next 12 to 18 months.
And our capital availability puts us in a strong position take advantage of those opportunities.
We continue to pay amount of cash dividend, including the 12 and a half cents per share quarterly dividend payable in June.
This amount to a 25% increase over the dividends paid at the first task 2019.
And we also repurchased shares at a favorable price relative to their recent issuances under our share of any compensation plans.
Some investors look at 2020 as applies here and look at 2021 at the new base from which to grow.
In my animals 42 years for the company I've seen that our teams, but not been good at Plaza.
We do understand that some things are out of our control.
So we will focus on the things that we can't control.
<unk> efforts will be focused on executing our strategic plan and we are waiting for 2021 to do that.
If the economy waits until 2021 to catch up so be it but we are moving forward now.
For those of you weary of having every compensation for broadcast centered on <unk>.
Wants to change topics for a minute and talk about the grave <unk> things that have happened continued to happen at U.S.C.
We celebrate in our 65th birthday, a company in February 2020.
Unlike many people that retired at age 65, we decided to go for a rebirth.
The shareholders improved our name change the U.S.P. industries in April.
We thing to do name more appropriately describes who we are today and where we are headed future.
More importantly, we reorganize their company to better position our future success.
Reorganization and go market based rather than a geography based model is gone very well.
We anticipated short term increase as an S.U.N.A. expense, while we drive deeper business unit growth and expertise and believe that increase investments will yield significant positive results far in excess of the investment amounts.
Well no structure is perfect. We are seeing even more opportunities for improvement I mean initially identified.
And now I'd like to turn it over to my Cool review the first quarter financial results things man, starting with highly trained income stable overall net sales <unk> increase in 2% with 5% increase in Unix upset by a 3% decline the selling price is primarily due to lower and lower prices for southern yellow pine.
Organic growth was 4% was driven by an 80 per cent growth rate in our retail segment and six per cent growth construction segment.
Developing new products continues to be a key strategy from gross margin improvements and new product <unk>, 7% this quarter and increases 6.3 million over last year.
Breathing down or satisfy segment sales to to retest segment increased 6%.
Thing coming unit increase with 9% offset by a 3% decrease in selling prices acquisitions <unk>, 1% square Unix both are Unix growth was strong with big box in independent each have customers, reflecting strong consumer demand.
New product sales or the retail segment, <unk>, 9%, which is in higher if not for an anticipated sales decline Susan's decorators branded products.
If you recall, we seems to tough comparison this year.
Large first time interval rebuilds at stores that took place hoochie one last year.
Sends to the industrial segments decline, 70% driven by a drop in prices as units has remained flat.
Recently acquired the company's contributed 2% unit gross but this was offset by the 2% decline in sales out of existing locations.
Since two new customers contributed $5 million to where sales this quarter and help mitigate a decline and demand of our existing customers. We continue to focus on enhancing our product mix to maximize sales at higher margins value added products and we're pleased to have maintained a margin improvements in this segment.
Or sales to the construction segment increased 4% due to a 6% organic unit increase offset by 2% decline and selling prices.
And then this segment unit she has increased 15% to kind of reforming.
Per cents a pack, we build housing three persons to commercial and one person to say construction.
I strongly any growth of continuity, forming was due to market share games with existing customers and our increase and shipments to producers just factory built homes was due to an increase in industry production.
Moving down the income statement, our first quarter gross profits increased by $13 million, 40% exceeding or 5% growth in units has has their price per unit improve.
The overall gross profit increase was comprised of and 9 million dollar improvement in retail and it 2 million dollar improvement construction.
Or gross margins increased 100 basis points to 16.2% this quarter, mainly 50 basis points as an increase is due to the pass through impact of lower lumber prices remaining 50 basis points improvement was due to a combination of effective inventory positioning favorable changes and product mix and strong.
And it grew up in our retail segment, which allowed us to leverage fixed costs.
Continuing to move down the income statement S.C.N.N. expenses increased 4 million or 4%, which was less than our 5% increase in unit sales and was better than our insurance plan.
The dollar increase is currently do too.
A million dollar increases and accrued bonus expense to 14 million for the quarter due to our profit to visit the increase.
One and a half million dollar increase due to acquire businesses and one and a half way into the compensation related costs and says incentives.
These increases Ross set by decreases in a variety of the campus.
We continue to focus on lowering our S.G.N.A. as a percentage of gross profit and what pleases me poor to drive from 68% last year to 65 per cent issue.
Driven by these positive factors were pleased me important that our operating profits increased by 21% or more than four times are increasing units.
Below the operating profit line or Dallas or insurance captive recorded at 3.2 million dollar unrealized loss and equity investments held in its portfolio in the first three months of 2020 compared to 1.3 million dollar gain in the same period, it's probably a year.
<unk> I mean, we're benefitting from the rebound in equity prices in April.
Moving onto our cash flow statement or operating cash build an issue improved by almost 10 million compared to the same period last year.
Primarily due to an improvement in earnings and an increase in non cash expenses as or additional investment networking cap since you're rand comparable in both periods.
Measure our cash likely to assess are working capital management and for the first quarter in the fruit to 59 days compared to 65 days last year, you know we're reduction in our days supply of inventory.
Investing activities, primarily consisted of capital expenditures totaling 27 million, including expansionary inefficiency cat facts totaling 10 million.
Also spent nearly 19 million on the business acquisitions, primarily for quest design and architecture window work in March.
Financing activities consisted of 3 million in that debt repayments almost $8 million a quarterly dividend is and 29 million of surely purchases is we were very active retraining capital to share holder string quarter.
With respect to our family machine or net that at the end of March was 131 million compared to 268 million in net debt last year and when we use to report part total liquidity was 392 million at the end of March consisting of 32 million and cash and 360 million and availability under every.
And try to facility.
At the end of April are liquidity improved to 433 million, providing us with an ankle resources to operate our business and take advantage of wise investment opportunities. During this challenging time.
Well, we're very pleased to be like she wanted results in the strong performance of our people we understand your primary interest to send her forward outlook and we've provided some information in our tend to me hope This house with you.
I'll provide some highlights year.
As you'd expect to demand of our customers has declined but fortunately the vast majority of been deemed to be essentially businesses and our plans that sort of them are essential as well.
As a result, we found it necessary to only close three it or 150 operations during this crisis.
Given the amount of uncertainty in the economy.
And our end markets. We don't believe we can provide an accurate target for unit sales growth in upcoming quarters.
At times like this may feel the diversity of our businesses strength and we believe you should consider R.T. and the market indicators when evaluating forecast for future demand.
With respect to profitability, we've analyzed or variable in fixed cost structure, our current business mix in a variety of other factors to evaluate the impact of a material in the client in sales volume on earnings from operations.
You just kind of our evaluation and you can leave her detrimental operating margin and a decline and sales is in the loading. The teens. However, there are a variety of factors that impact assessment, which are listed on our 10 q. and should be considered.
We have reduced our capital expenditures budgets 80 million from 100 million. This year as we read valuated unnecessary timing of certain maintenance and expansionary cat backs.
Or managers had been diligent in managing receivables inventory and we believe we can maintain a cash psycho consistent with <unk> performance.
And considering all of these factors would cost and then we can maintain are strongly put any position during this challenging time.
<unk> position you if you need for continued success in the future.
That's all I have an <unk>.
Thank you my now I'd like to open it up or any questions you may have.
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The question. Please pipe style one on your telephone keypad to the child question.
<unk> <unk> <unk>.
Mm.
That's like the question.
Well, let's see capital markets.
Uh-huh hope that everyone has it's safe at the you have pre family.
We are paid in fact girl type as well.
Thank you just plus question then I appreciate that it's difficult to.
They've always sort of forward looking you know while you M- guide and then things out so fluid and changing but it's possible that thawed, we'll do some fan or how the <unk> have been in <unk>, so far and <unk> any particular bright spots are weak spot.
<unk>, what you are seen.
Yeah, I think that's a good question keen and then what pride a point to some objective standards that are out there. So obviously you can keep an eye on what their retailers are doing and I would say as we mentioned before that as they certainly a bright spot in this time and I would.
Also say that I'm, the industrial side, we call that out and there there's been.
Fewer the businesses there.
Are operating a compared to like retail for example, so the bigger impact on industrial and then on the construction side that somewhere in the middle at this point and again, where it's been essential it's been fairly close to business as usual word scheme nonessential, obviously be there it's impacted.
So.
Hopefully that gives you a little bit better a color but.
No not not tenfold then my on on the industrial <unk> is it possible that Paul <unk> you know how you put it has been so far.
I I think you know obviously anything possible I think the challenges that we have eaten as we look at it is it is that really a good indicator for what it should be going forward, we don't want anyone to take out of the the the wrong you, whether it's either more positive or more negative. So I think that's the challenge.
What we are trying to do is take a look at what the end markets look like and what those those called out customer types.
Look like and based on again available information out there. We think that you can get a pretty good idea about which markets are going to suffer a little bit more on which ones are still remaining strong.
Okay. That's not fair and then just switching to <unk> just give us some sense of how what you'll pain is the sort of core maintenance expense.
And within that sort of 18 Monday and are there any big buckets of <unk> <unk>, but you could <unk> in kids, you know things about the worse than.
I'll I'll, let Mike address kind of the maintenance cap packs piece of it out and I guess, what I would call out as there's still a significant amount of automation and manufacturing efficiency expand that we have in in the remaining amount, but Mike can you cover the.
Maintenance sure normalized maintenance you wouldn't be in the neighborhood of depreciation 760 to 65 million rent.
But at times like this you know we can always for some of that and tighten that up a little bit so.
<unk> three quarters of that you know from from past experience, we've been able to.
I, there about a little bit push those out.
So just to be cancer seek waters or that six to 65, you can define it that the <unk> right.
And that's been in that's incorporated within the 80 million revived forecast that we're talking about for for 2020.
And we've already considered bother with it for the 80 million.
I see <unk> and then just a quick one <unk>.
<unk>.
A little over a million shares.
<unk>, Okay. Thank you very much on I've done the door.
You're kidding.
The next question pens on line appalled that people.
Oh.
Oh, good morning, everyone <unk>.
He tell harp on April I understand you don't want to you.
Qualitative number please can you comment maybe.
On the weekly trends in April.
So I guess, what I would say, it's a fairly predictable based on when the closures occurred so I I would say that early April obviously was the toughest part.
And then if you kind of follow the trend in the lumber market that also gives you a good trend for kind of business demand.
So you know beginning of April we started to see the market fall and fall pretty significantly it and by the end of April is trying to come back as I mentioned in my remarks, one of the things that I would point to that helped that was some rationalization of supply by someone.
So I'll males. So yeah take that into consideration, but if you want to look at trend lines that would be a good way to do it is that it was improving it the month then.
Okay. Thanks for that.
Then the restructuring, though you provide an update on that.
Environment make it more difficult or use your.
I think you originally said <unk> sound like 20 millions of saving then you're prepared remarks or maybe.
Larger opportunities is that.
Or even grimmer <unk>.
Yeah, I think there that's a good question and so first of all I was on on the whole I think our reorganization has gone extremely well or people embrace that and <unk> are really driving that type of change that we were hoping for I think some of the things that are coming out of it Paul that are that are things that we didn't think we were.
<unk> two right away.
Partly because of our our individuals', having time not being able to travel as much as they normally would they have been able to focus on some other issues and I think in terms of building out their strategic plan getting more definition to it and finding ways to help leverage our existing cost structure to to drive.
Her sales in the future I think those are the types of things that we haven't really looked at so.
Terms of kind of cost savings <unk>, we're really not driving so much that part of it were driving the leverage of our existing personnel in our existing facilities better than we thought we'd be able to and and I think that's going to help us at regrow sales to keep our costs lower.
Okay. Thanks for that and you mentioned M.N.A.
Pipeline.
Pretty full are you able to make.
Acquisitions in this environment or that kind of the late as well.
Yeah, what we're what we're doing is obviously, we we have a consistent pipeline of activity and we've continued to work on those targets that are in the pipeline, we're prepared to move forward and their complete those acquisitions. We we also have new targets entering the pipeline.
Obviously, the timing of those is going to depend on it you availability to do due diligence and and travel and do the types of things that we would need to do to complete them, but we are we are still moving forward. In this environment. We were very optimistic that we should be able to accomplish them again, assuming valuations and everything.
Works out the way that we expect.
Okay. Thank you very much the quote from the good luck you. Thank you.
Unix question comes on line up everything going on with a pinch my company.
Thank you good morning, everybody morning Rubin.
Glad to hear you guys are doing well and say, let's see so first but.
A good personally I'm prepared remarks had some technical difficulties getting onto sorry for p. anything well, maybe I'll start on the retail side a lot of talk about how it yeah I live horse and.
<unk> the construction industry is doing doing pretty well in this environment can you can you provided any kind of color on maybe what portion of your retail business. You think yeah is it supposed to to that part of the market.
Yeah, I think if.
If you kind of look at the D.I.Y. piece of it very significant portion of our overall businesses D.I.Y.
On the retail segment and there are obviously, our our individual independent retailers that are continuing to operate haven't been deemed a central businesses as well. So overall, if you're kind of look at the whole retail area that that's been very good through this process. So.
Whether that continues or not obviously.
Yeah forecast that but that's been good to date and that would cover all of our product lines of I laid out in Q1 gives you a good indication of that information.
Okay, and and on the deck inside a in particular like you guys, providing but that's substrate n. the that for themselves, while they're treated lumber compartment or or your your other materials.
<unk>.
You don't have any sense.
How many or how much of the decking industry is <unk> kind of re facing an existing substrate versus building an entirely new you know that cost of the house I imagine that restate thing and something that's a lot easier for for you know can seem ready to do at home that they're looking for a project versus you know having the.
Pour concrete and and actually build a structure.
Yeah, that's a great question Rubin in a I recently saw some information on that and and I hesitate to give out the information because I'm not sure of the accuracy of it but I will tell you that it was roughly 65% to 70%.
Daxor are really resurfacing.
And and replacement so <unk>.
But that is helpful to you I think there is a third party source for that too, but I think that that was kind of the number I heard.
Okay.
That's very helpful. Thank you and I understand that it's it's I guess like but that's definitely helpful. And then okay. The the the last question I have is on the [noise].
Industrial exposure can you give us and I know you've done a little bit in the past, but given the environment is there anything you can do to help us kind of break down your your and market exposure within industrial itself, it's a pretty broad.
Category I know you've got some AG in healthcare and you know some other categories. Just so we can try to follow the yeah markets as closely as we can and that's it for me and good luck navigation to discuss.
<unk>, Yeah, I I you already know the answer which is probably why your site. It off but you know I'm I'm in the babies that phase, where we provided all segment information and trying to get to the individual kind of and and user type of information is much more difficult.
So I don't think we'll be able to provide that anytime soon but I think if you kind of take the groups that Mike laid out there and that I talked about you'll you'll be able to get an overall picture of what that looks like.
You know I had the trident that yeah.
The next question kind of sound <unk> U.S.C. I.
Hey, what are we supposed to do all.
Morning, really opened on while as well.
So my first question ends up on the S.U.N.A. you have some good improvement on the S.T.A. as a percentage of gross profit year over year for the consolidated you apiece.
Q shows the industrial side, yes, you need the percentage of gross profit rose here over here. So I guess with the implication be that at least for the first quarter. The other two segments might have seen some better headway on the whole situation is industrial.
Yeah, I think one of the things I try to point out is within industrial itself.
You you have to look at there's a couple of different pieces to it one is from the industrial part that's position much more for accelerated leverage of existing personnel. So we expect them to be able to grow significantly without as as much of an increase in S.G.N.A., So and I think.
Part of it as product mix and where we've gone from last year to this year with respect to the individuals involved in industrial.
So part of the characterization of customers and other things that we did as part of our reorganization I would expect that there's an opportunity and industrial going forward to to again better leverage those costs that are there.
Okay, but that's helpful and I guess.
On the margins for the segments I I mean do you feel the first quarter up margins are.
Reflective of.
Out of the segment not margin for.
For the full year or and if not maybe you could give it gives a sense of what it had been in the past yeah. I think if you've got to look at Julio in terms of kind of relative margins, that's probably a reasonable way to look at things I I think one of things it's called out in the queue was is.
Conversation regarding the impact of lumber Mark and you're talking about margins in that gross profit dollars per unit. So if you're looking at margins. There is an impact of lumber market in there as well.
Mike you have any other color on that and the I think the only other thing I would add to that really is seasonality and so you know industrial tends to be an area that that tends to be a little less he's in a little more study from quarter to quarter.
Retail is is an area that's.
One of the more seasonal construction is too and so in a busy or seasons, though the leverage the fixed costs, a little better in a second third quarter, so that that might make.
He went maybe a little little not representative what the full year might look like.
Okay and I just meant a lot from here is.
<unk> standpoint, as opposed to disruption depend dammit.
Maybe creating opportunities for you in any of your businesses.
That's the last <unk>.
Yeah. That's a good question and you know obviously, we don't want to use this type of a negative situation to wish anybody hill, but I know there are some other companies out there that aren't as particularly well capitalized.
And it may have deeper struggles than than we do so I do believe there will be offered opportunities out there over the next year or so.
And as I mentioned before will be will be seeking them out.
The next question <unk>.
Good morning goes thanks to according J. and J.
The so first question customer help.
What about your customers balance sheets, what's going on with receivables and and if your seeing some issues is three skewed to one segment versus another.
Yeah, that's a terrific terrific observation and one of the things I know that Mike and his team are doing with our operations Guises meeting weekly on on large customers and taking look at exactly what you're talking about obviously customer health is very very important and.
There are some customers who have not been deemed essential and unfortunately, there are going to struggle I think we have very good plan in a very good process for managing that risk, but nonetheless, there is a risk out there and we're definitely aware of it.
So overall, we're keeping a close eye on things I don't think it's it's a.
Based on any individual segments. So much as it is based on whether they are essential or non essential.
And literally as we we sat in the earlier remarks retailers that's been deemed essential in most areas a lot of industrial customers have have not been deemed essential so.
And then let me flip it on to your suppliers, Hi, How're you feeling about the financial health of your suppliers are there any opportunities we're seeing maybe the vertically integrate.
I'm a little color on that would be great and if there is <unk>, you, where you're worried more about being able to keep one segment running versus another would love to hear about that.
Yeah, I think <unk> at this point, we feel very good about our suppliers. We are a very large usually a top five customer of most of the major mill that middle providers to us.
And so I think there and reasonably good shape.
Yeah decent balance sheet. So I don't think that's a big.
That's a big issue I think the other part of the you talk about vertical integration I, that's not something that's really on our radar.
We we we I liked the position that Randy today.
There may be other products and things that we would look at but certainly not for the lumber side, we're not looking at vertically integrating.
So hopefully that answers your question, but at this point, it's really more about getting supply from the mills, who up curtailed in our reopening.
And trying to make sure that that we can get ample supply.
Doesn't favorite one segment over another.
Two more for me.
Just a phone that curtailment topic.
What are you seeing from that had those <unk> picked up where they started slowdown.
We're actually hearing that a couple of mills are planning reopenings and that will help and.
One of my other comments, which may sound like an editorial comment, but it's real as we also had a mills who.
Their employees did not want to come back to work until after July 31st.
Yeah, so that that put a little bit of a damper on their ability to come back so.
I do think they are they are looking at reopening.
<unk> different areas.
And then the the last question I had.
When you're looking at construction and maybe some projects being pushed out where you've seen more push back or delays on Rosie construction or on on commercial project.
Yeah, I think that's it's probably a mixed mixed view there j. because I think on the residential side I think that the home builders have have not been continuing for but a lot of their land development plans. So it'll take now I'm a little bit of time to reboot.
On the commercial construction side, you're seeing where where it's essential that that businesses continuing on where it's not essential it's been stopped so and then on the concrete form inside that's been a bright spot that continues to show a lot of traction and that's been deemed.
<unk> most market so.
If I kind of looked at it that way that's why I think it's a a mixed outlook but.
I think there will be at some point in time, they've got to read stocks got to restock that it.
Inventory of a of land.
Appreciated guess thank you.
Thank you.
And I'm, saying no further questions at this time <unk> <unk> <unk>.
[noise] once again I would like to thank you for spending your time with us on a call. This morning.
We are deeply saddened by the loss of life cause by cope with 19, and we are equally sensitive to the loss of life in livelihood suffer by those impacted by the response to cope with 19.
We look forward to a common sense risk based re opening a business and livelihoods as rapidly as possible and we don't policymakers actor the same emergency getting removing barriers to business activity as they did and putting them up.
The massive shut down a business and opportunities, but predictable economic are followed by massive government intervention into the attempt to offset that arm will be written about and talked about for years.
The actual virus could be a footnote.
Instead of a negative story line, we want to write and talk about U.S.P. responding well to adversity in protecting its employees serving its customers can safeguarding the investment shareholders.
And I recently read we might all be in the same store, but we definitely are not in the same boat.
Take care to protect the most vulnerable and allow the others to safely return to work in one.
Life in livelihood need not be mutually exclusive.
I expect brighter days ahead, my forecasts calls for decreasing U.V. rays higher temperatures in higher humidity, which not only kill viruses, but can make like more enjoyable.
Thank you and have a great day.
Well you can tend to minutes into this conference call. Thank you for participating you may now disconnect.
Yeah.
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Oh.
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