Q1 2020 Earnings Call
[music].
Good morning, ladies and gentlemen, and welcome to Parkland Fuels Corporation 2020, Q1 results conference call. At this time all lines are in a listen only mode. Following the presentation. We will conduct a question and answer session. If at any time. During this call you require immediate assistance. Please press star zero for the operator this call is being recorded on.
May 720, 20, I'd now like to introduce your host for today's conference broad Monaco director of capital markets you may begin.
Thank you.
Me today, and the color, Bob SB, President and CEO, Darren Smart Senior Vice President corporate development, an interim CFO Dirk lever VP capital markets.
This call is webcast and I encourage listeners to follow along with the supporting slides. We will go through our prepared remarks, and then open it up for questions from the investment community.
Please limit yourself to one question and a follow up that's necessary and if you have other questions reenter the queue.
We would ask analysts to follow up directly with the capital markets team afterwards for any detailed modeling type questions.
During our call today, we may make forward looking statements related to expected future performance. These statements are based on current views and assumptions and are subject to uncertainties, which are difficult to predict.
These uncertainties include but are not limited to expected operating results and industry conditions among other factors.
Risk factors applicable to our business are set out in our annual information form and management's discussion and analysis.
We will also be discussing non-GAAP measures, which do not have any standardize meanings prescribed by GAAP. These measures are identified and defined in Parklands continues disclosure documents, which are available on SEDAR.
For our website.
Please refer to these documents as they identify factors, which may cause actual results to differ materially from any forward looking statements dollar amounts discussed in today's call or expressed in Canadian dollars unless otherwise noted I'll now turn the call over to Bob.
Great. Thank you, Brad and good morning, everyone.
I hope everyone is staying safe and healthy and we appreciate you taking the time to join US today to discuss our first quarter results.
Bounced to these front line heroes, we're providing the truck driving community with free Hot showers, along with food and snack discount set select card locking convenience store locations and are also supporting Canada's food banks with fuel cards, and how healthy snack options.
Over the past few weeks the gratitude, we've received from customers and communities has been overwhelming.
Well now pass over to daring to go through the corporate financial results.
Right. Thanks, Bob in good morning, everyone.
We delivered adjusted to you but of 191 a million for the quarter compared to just over 300 million in Q1 of 2019.
Primary difference was due to the burn it'd be refinery turnaround.
During the turn around and as expected we did not capture a refining margin and we incurred additional operating expenses.
Cash from operations was 258 million for the quarter compared to 136 million in Q1 2019, despite the lower adjusted EBITDA.
Cash flow from operations was able to fund our cat backs the Keller Stross acquisition in cash dividends paid in the quarter.
All in all and given the environment. We are extremely pleased with the result, and we lived within our means.
Onto a slide six we've provided some of our other corporate highlights.
Our credit agreements allow us to normalize for the impact of the Burnaby refinery turnaround when computing, our total funded debt to credit facility, but dot ratio, which came in under three times and provides us with significant headroom relative to our five times a covenant.
On a trailing 12 month basis are adjusted dividend payout ratio was 40%.
Closely monitor our payout ratio and we are comfortable at this level.
We've also highlighted our current liquidity and debt maturity ladder, and we are well positioned.
We entered the quarter with approximately 1 billion of liquidity and exited with 900 million all of this in a refinery turn around quarter.
March 30th we highlighted 300 million of capital expenditure reductions and other cost cutting measures, primarily beginning and Q2 2020 in order to protect the strength of our balance sheet.
We have no debt maturing and 2020 and approximately 85 per cent of our senior note maturities.
2024, and beyond affording a significant flexibility.
We will continue to ensure that our balance sheet remains strong and now we are well positioned to navigate challenging market environments.
And the alternative back to Bob to discuss segment performance.
Thanks, <unk> I'll start with Canada.
We have <unk> bind the Canadian retailing commercial segments, which now lines with our U.S. and international operations, which also includes food retail and commercial operations, we had a great start to the year and are competent in the underlying.
Ability to grow this business, we delivered adjust the butt of 103 million a decrease of 14 million from last year decrease was driven by lower fuel margins in the first part of the quarter a warmer winter emerged reduce fuel demand in the second half of March due to Kovac 19.
Company C. store same store sales growth was 0.4%.
Or 17th consecutive positive quarter as convenience operations have performed better than retail fuel the journey program.
As in its initial rollout phase swim covert 19 hit and has demonstrated strong membership enrollment engagement with reduced site traffic an additional safety measures, we pause the tyranny roll out to plan.
But look forward to continuing when retail traffic improves our commercial operations performed well and we were particularly encouraged hell.
Withheld volume's held up in March our team continues to drive efficiency and when new business, particularly in industrial propane.
Or international operations, we delivered adjusted deep it of 67 million and decrease of only 4 million compared to last year, we got off to a great start demonstrating organic growth capturing synergies and benefiting from it initially strong tourist season <unk>.
We increased over all volume's by 31% driven by our wholesale aviation and Bunkering business.
We have also seen a real benefit from collaboration with Tropic oil in Florida, plus there are bright spots in our natural resource markets offshore Guyan, I'm, particularly which is continued into April.
Or U.S. segment delivered first quarter adjusting to keep it up 18 million, reflecting double digit percentage organic growth.
And the impact of our acquisitions in the last year. The U.S. team has done a great job not just buying crepe businesses, but growing them once they add them to the portfolio.
We have strength, we we had strengths in both volumes and margins in Q1 organic growth initiatives and national accounts develop and has exceeded plan and we experience very strong retail you'll margins in March of note tropical l. at a record quarter for both volumes and eat but.
Finally, turning to supply we delivered.
39 million of adjusted deep at a lower than 2019, but in line with our 2018 results, which also had a refinery turn around I'm proud to say the refinery team successfully managed to the covert 19 challenges while remaining healthy.
It was the large and complex scope of work near the end, we had less people on site and lower productivity do two additional safety measures, but are now up and running we successfully executed our product import program during the downtime and kept our network supplied.
During the turnaround. We also completed work that will help us expand our co processing ability and maximize canola in tallow throughput rates.
Are integrated logistics business continues to perform utilizing or capitalized infrastructure defined profitable supply opportunities across North America.
<unk> pandemic is hard to predict.
So we withdrew or 2020 adjusted EBITDA guidance, we do not have a timeline to reinstate guidance, but remain focused on driving value and being well position for when we eventually hits exit this downturn.
You maintain the strength of our balance sheet. We also reduced our 2020 capital program by 300 million, which is now 275 million for the year, we invested 150 million in capital expenditures and Q1. So the remaining corridors, we'll have a much lower spend intensity.
The remaining capital projects and 2020 will focus on operational reliability and meeting regulatory obligations.
Hi return growth projects, such as enhance digital capabilities and select network development initiatives, our growth capabilities remain intact and teams ready to push forward when the time is right.
Wrapping up now wants slide 12, we want it to provide a quick update what we have seen on the grounds since a quarter around.
Overall, our portfolio has demonstrated remarkable resilience, we built an internal stress case to help position the business during the downturn and acted based on that I'm pleased to say that we are performing well relative to that case.
Relative to 2019 retail gas volumes in Canada were down approximately 40% in April and commercial volumes off approximately 25% see store sales have held in extremely well in our only down marginally.
We are stocking shelves with high demand categories like groceries, and other seasonal items and the team is constantly adapting to the customers needs.
Good any impact of acquisitions, the U.S. say segmented volumes have declined approximately 20 per cent U.S. segment has fewer major urban centres in our areas of operation and a higher commercial waiting when including the impact of acquisitions, we are still above prior year volumes.
International onshore volumes have declined approximately 40 per cent consisting of a 25% decline in the commercial lines of business and 55% or retail many countries in the international segments.
Extensive curfew measures and higher exposure to tourist activity.
Overall, the impact of the volume declines has been partially offset by generally stronger per liter fuel margins, which have been most pronounced in the U.S. followed by Canada.
We have not really seeing it in our international segment due to the increasing wholesale waiting and and a portion of onshore volumes being regulated.
The burned it'd be refinery. We're currently operating at approximately 75% utilization. We've shown are indicative crack spread chart on the right, which is currently quite volatiles and lower than the trailing through your average, but still relatively strong. So most north American refining markets important to know.
The chart shows the illustrate a 5311 refinery yield in response to lower jet demand, we've been able to reduce jet fuel to less than 10% of total refinery yield which helps improve our captured refining margin.
We are also in a good position from a storage perspective with low product inventories after completing the turn around.
And challenge in challenging times to resilience of our business shines through.
We have a large geographical footprint extensive product range exposure to highly diverse markets. When he combine this with our entrepreneurial culture and strict financial discipline I believe we were well positioned to navigate the pandemic and emerge as an even stronger company.
Thanks to the entire parkland team for a great quarter and it continued focus on safely supporting our customers and convenient communities. Thanks to those on the line for your support well now open the line for questions.
Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by <unk>, you will hear three town prompt acknowledging your request and your questions will be pulled in the order. They at receipt should you wish to decline from the polling process. Please press star followed by too if you're using a speaker phone. Please lift your hands.
Before pressing any keys, one moment for your first question.
Your first question comes from Michael then announced with T.D. Securities. Please go ahead.
Hi, good morning.
Good morning, or.
So I just like to start off by touching on some of the cost controls that you put in place because clearly we saw some some good progress already into one with costs down in most of it shows.
But you also mentioned that a lot of these measures that you're taking.
Starting and cute too.
So can you give us an idea as to whether these are focus more on our backs and M.G.N.A.
And maybe maybe give us some examples of some of the major steps, you're taking and and how significant they could be.
Yeah, No for sure you know again the costs have been across cost reduction been across the business.
And again you know the the <unk>. The the other thing is we reduced the capital spend significantly so on the cost reduction side. There is in in our operating business. There is a portion of our costs are quite variable.
And and we really did see that kick in you know, particularly as volume started to decline.
Now the way in Canada, we've got our retail or model where.
There's a a variable charge the.
Goes to the retailers.
Volume comes down we see that come down our distribution fleets scales quite nicely to volume as our truck drivers or play paid on an hourly basis and we can quickly idol assets when.
The volume isn't there so and and you know this we'd never ever planned for a decline of this nature, but we were quite.
I'm surprised or it was it was quite good to see how quick the business scaled naturally you're found the lower volume.
And then you know on the overhead side.
Yeah, there are certainly opportunities.
As relates to our our capital growth projects to look at into opportunities to reduce.
Both class and.
You know external costs and and internal costs.
And then on you know and then the other thing is it did it did force us to look internally and.
Make sure that we tightened up our our systems and processes and we're able to take additional costs, though.
Both internally and externally we've worked a lot with our vendors.
And you know they've also assisted us as we go through a lower demand period here.
You are able to give us any insight as to the mix of a variable versus fixed costs.
Yeah difficult to isolate at this point.
Okay, and then just fine layers a follow up can you provide some insight as to the synergies that you're achieving between tropic and saw because he did bring it up in a couple of places in the press release.
Yeah.
So again, we're really delighted with the the Tropic acquisition and the team there do want to think the team for.
Integrating into parkland quickly.
You know the main touch points with the.
Korea Caribbean have been around two areas one is the.
Supporting the shipping business.
And supplying fuel.
Into into vessels that.
You know initially that business set Tropic was very focused on Florida, and the Miami Harbor, and specifically, but that account book a or those customers were then also made aware of our capability in.
In the Caribbean and have extended business to us in the various regions. So we basically picked up a lot of marine fuel business through Tropic in our international segment. The other areas in the area of lubricants, where we were able to inventory.
Use Miami as a as a a point, where we can inventory product and then pull inventory out a local markets and it just made us more efficient because we could utilize the existing trade flows into the Caribbean to to reduce our inventory.
Great. Thank you.
Yeah.
Your next question comes from John morale with J.P. Morgan. Please go ahead.
Hey, Good morning, guys plans quicker my question the morning, John So.
In the U.S. isn't it business environment present, a chance for some attractively priced on than anywhere you're seeing some distrust carburetors or the margin environment. So strong that you're not really seeing that.
Yeah, I'll, let inside Karen answer then.
Yeah. Good morning of Stern here, Yeah, I know so I think it at the moment you know everybody is quite focused on safe operations in protecting their customers and employees. So there there really isn't a lot of m. and they activity happening in the market right now you know that being said.
You know as as things improve you know I do think that there will be opportunities again, and you know we'll be looking for for situations, where there's where there's good value.
Great. Thank you and international.
The 55% requiring you're sitting on the retail side is there any sense for how much the tourism pizzas been down there may be hard to parse out, but just from a traffic perspective, I would think that tourism would be one of the web pieces to recover across your system is that a fair way to think about it.
Yeah, you know certainly tourism is way down and the hardest hit segment has been or aviation business in that market.
You know, it's hard to to separate out how much of the activity on a retail level is driven through tourism versus local demand.
And it would certainly very by by jurisdiction, but overall.
As as as you can expect tourism is off.
And and it's you know certainly will impact.
A a portion of the business and again recall that business segments into sort of three types of markets you know one or the tourists intensive markets.
The other other the natural resource intensive markets, where we really haven't seen activity fall off and in fact.
In some markets those that are that are leave more towards gold mining and oil.
Oil we've seen activity increased so that's been a nice offset and then the third type of market.
<unk>.
You know doesn't have either the tourism or.
Or the natural resources and and again you know those are being prudent, but we would expect those to.
To bounce back to normal activity ones the market's open up there.
Great. Thank you.
Yeah.
Your next question comes from Steve Hansen with.
Raymond James Please go ahead.
Yeah, right guys think Sebastian.
And thank you for the the color on April status, just hoping it it perhaps the recipient two granular.
You could comment on the trends even seeing on just about two to four weeks.
Some of the reopening plans have started to roll out here. There are obviously staged in very by province, or state, but Oh well. All these plans do appear to be gathering. So I meant I'm just wondering if that's had any impact on your discernible volume says yet thanks.
Yeah, Thanks, and and and Great question you know, it's certainly in April we did not see that but coming into may here and it's early days.
We are starting to see things gradually come back and again to your point it depends on the jurisdiction and now we expect that over a may as as restrictions get lifted we do starts the.
To ban, particularly in our retail segments strict to come back you know it's interesting, though the one area that's held in quite nicely through.
Through April is our convenience store business. So you know, we we're still getting good traffic there.
And and and some good strong sales.
Very helpful and just just maybe a follow up to that you mentioned earlier that the journey program. It's been temporarily stalled did you have a sense for what kind of metrics you want to see on the recovery foot traffic before you three get that back going.
Yeah.
You know we would expect you know if we start to see things come back we should continue that roll out later in the corridor.
It may not have the promotional intensity that we'd planned initially, but we can certainly roll it out and get it up and running in the remaining markets and then you know once once falling and comes back more dramatically we can.
Apply the promotional activity that we'd planned.
<unk>.
<unk>.
Your next question comes from David Newman with T. shirt N. Please go ahead.
Martin gentlemen.
Oh, Hi, David wealthier fairing, as well and the circumstances.
My first question is on the C. store I kinda further to fees question, it's been very very resilient and obviously not seeing the down side that you you would expect given what 21 or the pumps. So in terms of merchandise offerings that you guys are now movie.
The T. store any permanent learning is that you're you're getting out of this and do you think that post the pandemic that there might be some customers thinking is that you guys are able to retain some of those customers that are now going from the front court to the backward.
Yeah, you know as we look at our retail business. So there have been some interesting changes so we've seen the mix change.
You know our age restricted products, such as tobacco vape, M.B. or up considerably grocery items dairy bread Staples, and then household items like a toilet paper garbage bags and cleansing products are doing very well.
There's been an offsets around carwash single serve confectionery items are doing poorly.
And we did we did hold fresh food and frozen Hot beverage service.
In April.
You know, we do expect to revitalize that once.
Once things start to open up you know it's interesting changing formats, you know, we're seeing customers evolving to take larger home formats instead of single serve.
No for example, the large bag of chips versus small bags, a case of coke versus a 600 million 600 milliliter bottle.
<unk>.
And and we are appropriately represented in those categories and again you know the format turns so quickly that weekend re vector the skews quite quickly to to make sure that we're meeting our customers needs.
And.
You know and the other thing is are are bundled offers in our private label skews are performing very well.
And and and again you know I would our team is <unk> executed extremely effectively here you know looking at skews in real time monitoring customer behavior, and our supply chain and making sure that <unk> reacting very quickly. So our teams done a great job.
We also you know delivery is also a a popular item.
We did launch.
Skip the dishes trial with our triple low okay in N.B.C. and it's interesting we've seen some really good uptake there <unk>.
Yeah, and then we're also exploring options to.
Actually use skip the dishes for our R.C. store item. So so you know again as as.
The pandemic you know pushes changes on us all we've been able to react quite quickly and adjust our business to.
To meet the needs evolving needs of our customers and with all the puts in Cape <unk> is the margin profiled <unk> all that dramatically with the mix.
You know a again the the certainly with the the lower.
Margin items like cigarettes are up and.
You know, it's early days taxi tell how the the.
Margin does shake out, but you know indications are would be similar to what we've seen in the past okay and the second question for me. It's just on the on the refinery there's a minimum threshold I think most refiners site that it's like 65, 70% utilization.
Even sort of the hydraulic can process limitations that are involved if you run it at that kind of minimum threshold and it does look like you still have the ability to to tank or some of the <unk> refined fuel that's coming out of the refinery.
If you ran the full Porter I that is a is that the minimum threshold and and and be what would that imply for utilization for the full quarter looks like it can be 50 60.
Yeah, David Hyde door Cleaver here with respect to the with respect to the refinery yeah, we could run lower than 75 per cent <unk> must say that a historical you'd never had to do that so this is unprecedented times, but what we're doing is looking forward, we're looking at what our storage.
Levels are where we think demand is going to be and we always have to plant a month ahead, because you're ordering crude.
In advance so.
It's it's always up a forward look so it's not as if you can just shudder refinery off because you have crude being delivered to you right, but the but the plan is to look try and balance off what you think demand is going to be so you're looking for the trends your try to factor in what you've got for storage availability.
And we were very light on storage at the very end, we drew down or inventories knowing that we're going to be up and running.
So the idea then is to try and optimize based on what you what the forward look is.
And that's what the refinery has been doing can we run lower than 75%, yes, we can but we set ourselves up at a great position with low inventory levels that we could run build up our finished inventory and then the other what we need to do as far as production goes.
As demand hopefully increases here with the opening up of the province.
Very good thanks, gentlemen, Stacey.
Yeah.
Your next question comes from Luke Davis with our B.C. Please go ahead.
Hey, good morning, guys just to follow up to the last question on the refinery wondering if you can frame out Dirk how much storage capacity you have on site and how much. It that is utilized to recline product started specifically just in order to kind of buffer some market pricing volatility.
Yeah, I'm, we're about 2 million barrels of total storage and think of that is.
Probably 65% on the crude and.
35% on the finished product summer in those neighborhoods.
We have more crude storage than finished products storage at the moment.
But we also you know we do have a storage capacity that we utilize with the trends mountains. There is storage there. So it we have two stages of storage for for the crew.
Got it it's helpful. Thank you.
[noise]. Your next question comes from then Isaacson with Scotiabanks. Please go ahead.
Thank you very much.
Just looking at your financial goals that looks like you have a boat 2.7 billion of [noise] off balance sheet unsecured guarantees on some commodities swaps can you talk about who those counterparties r. and has their financial profile or their credit worthiness changed over the last six or eight weeks given all.
The volatility.
Yeah, it's a it's daring here thanks for the question.
Yeah, No. We continue to monitor all those count them Party exposures and you know nothing you know significant has has changed on that front at this point.
Who are those comforter parties.
I mean, just yeah, I don't know it.
Oftentimes investment grade parties.
Okay, and and their upstream done correct.
Yeah generally.
Okay.
My follow up question is when you look at the Coral model. How many are there right now and and where do you think that's going by the end of 2020 and I guess the reason why am off screen, it's with Ah traffic volume down so much however, the.
The the retailers.
Holding up for naturally do they need your support or or your balance sheet support financially I'd be getting into trouble.
Oh.
Yeah, we have roughly 650 retailers you know we look at these key partners for parkland in interface sing with our customers.
And you know our retailers are super dedicated to running the sites safely effectively in providing outstanding customer service.
You know the way we've helped our retailers are on a number of friends one as up by adjusting store hours. So that they can adjust our costs based appropriately were generally a 24 hour operation and you know as you can expect with activity down certainly.
There's an opportunity to reduce hours and not really impact sales.
So you know that was we've done that with the bulk of our retailers and and help them through that.
You know the other thing is we've also they're they're particularly they're they're small businessmen and there are governments <unk>.
Programs available to assist and we've helped we've helped them access those programs and apply for them. So that they can push through this this difficult environment.
Yeah, and and most of our retailers are single site operators. So.
No they they tend to.
Be on site and and our operating the site.
Is it possible that if some of those guys go under you pull those stores Bach and make them a corporate store or is <unk> P.C. right now that's not a risk we see right now you know we.
Again, we've got some great retailers and they really are are are great ambassadors for brands <unk>. You know, we we do regularly change retailers out you know people decide to move on or or the performance isn't there and we do have a a good.
Candidate pool to draw on should that happen.
Thank you very much.
Yeah.
Your next question comes from Kevin Chang with C.A.B.C. Please go ahead.
Thanks [noise].
<unk>.
Hopefully I was doing well just a couple of from easier just on the competitive environment in Canada, I think you've highlighted the past few quarters increase competition, just just wondering how that environmental looks today or how you see it looking forward given all challenging environment is.
Maybe some of that you rational competition could I get the market, but but any color that would be helpful.
You know look the the the market's there it's alive and competitive.
You know I would say.
We have and and you saw it in the tail end of March with when you look at.
The cans you can see the rack to retail margins you know they certainly did a widen out and we saw that maintains through April.
But again you know the market's the <unk> at an operating level.
The competitive intensity varies by market than we're certainly seen a healthy competitive market across the country.
Okay.
Maybe just a and I apologize to be mentioned this you're prepared remarks, just with an oboe rubber how exposed or you too crude by rail with them that what's good about division and it is is is that a significant had when we should be contemplating just given given we're all prices are today.
You know that that's the beauty of the elbow River business and the team their their ability to react quickly and you know certainly as as certain opportunities have fallen off and we have seen because accrued differentials and just like a demand that.
You know the amount of crude that we would have normally handled has come down.
You know the team there has been able to look for other opportunities to deploy the assets and make sure that.
We're continuing to move product.
And you know, we we are seeing some parts of that area folding quite nicely like our L.P.G. business, but certainly into crude business.
And to a lesser extent refined product business I've come off someone.
[noise] parts of the color they save everybody. Thank you.
Your next question comes from Peter Skull are with B.M.O. capital markets. Please go ahead.
Hi, This is trying filling in for Peter I'm, Jeff too quick questions.
This is that sport that 300 million dollar reduction in cap actually got give a little detail as to where that's coming out of.
Yeah, it's it's coming from across the business you know, we we did.
No I would say in for the most part where delaying the capital.
A a large chunk or that would've been in retail around our retail.
Rebuilds, an N.T.I.'s, so we've slowed down down as we go through.
The good news is a lot of that can be revitalized fairly quickly when things come back.
You know that the the second area would be around some of our supply assets and some of the project. So we planned again we.
To EM [noise].
Increase our our storage and.
You know in in our various markets I would say that.
That's the other area that we've we've curtailed and then you know areas that we've kept to focus on or some of our internal projects star systems or investment in digital.
In our I.T. platform, which is really integral to our continue them in a once we come out of this and it just continuing to to make sure and push towards our ideal systems architecture.
We had some cleanup work to do after a lot of the M. in a we've done over the last few years. So it's giving the team an opportunity to continue to push that and and complete it.
Okay. Thanks, and I think previously last quarter, you mentioned that the tobacco segment within here see store well, it's up north of 40% of the total merchandise sales and that was pre criminal virus. So can you guess kind of been updated number given that h. restrict departments are up considerably.
You know I I that is correct I can't give you the exact mix at this point you know like everything there's lots of volatility generally the.
He sings sales up across you know as I'd indicated all categories, except for a car awash.
And.
Yeah.
And and yeah some of the single serve items.
But but the strongest as the age restricted which is the tobacco vapor and beer that's gone.
Okay. Okay. Thank you.
Ladies and gentlemen, as a reminder, should you have any questions. Please press start one.
Your next question comes from Derek delay with <unk>. Please go ahead.
Yeah, you guys and just wondering if U.K.
Give us some color in terms of your split between urban you would define it urban in on urban markets for your retail locations in Canada.
Yeah roughly.
Yeah, I would say 40%.
His his non urban.
And then 60% would be suburban in urban.
So you know if you think T.T.A.
So that <unk>.
Hamilton through too.
Oh sure what cord or you know the the G.D.R.D. Montreal, you know those would be our our largest urban exposures.
Okay, and and fair to say that you know non urban is if they would've materially be outperforming urban in terms of just the decline that you've seen in volumes I got I guess for you know for April for example.
Yeah. It's interesting you know I would say volumes of held in better than in the non urban markets.
Yeah and.
Yeah, I mean, primarily volumes of have held in quite nicely and in those markets and that's been an offset to further to to.
More decline in the urban markets now, we expect the urban markets to spring back pretty quick cure ones things open up.
You know what we're seeing in other jurisdictions as people favoring their vehicles over public transit and we would expect that trend to be in Canada as well so that could be an offset.
A positive definite.
Sure I mean, I it would it be fair to say as well I mean, some of the the industry data that we follow and admittedly. This is more U.S. focused kind of pointed to demand or volume demand sort of bottoming and what looked to be that.
Last week of April maybe maybe just a third you know that they ended a third week of April until the last week in April of you guys seen something similar.
You know certainly as we get into May It does look like things are trending marginally up but.
Again, you know, we really haven't seen restrictions come off in a major way, we will start to see that over the next couple of weeks and no Ghana would expect to see that we see.
Demand improve.
Okay. Thank you very much.
Great Thanks to her.
There are no for integration thought this time. Please proceed.
Okay, well. Thank you very much thanks for your questions and look forward the catching up at the end of next quarter.
Mm.
Ladies and gentlemen that concludes your conference call for today, we thank you for participating in S.P.G.P.S. Disconnects Airlines have a grey day.