Q3 2020 Earnings Call
Ladies and gentlemen, today's conference is scheduled to begin shortly please continue to stand by thank you for your patience.
[music].
At this time, all participants' lines are in listen only mode.
For the speaker presentation, there will be a question and answer session to ask a question. During this I shouldn't you would need to press star one on your telephone if you acquire any further assistance. Please press star Zero I would now like to hand, the conference over to your speaker today can lease my senior director of Investor Relations for Matrix Service company.
Thank you. Please go ahead.
Thank you April good morning, and welcome to Matrix Service Company third quarter earnings call participants on today's call include John Hewitt, President and Chief Executive Officer, and Kevin Cavanah, Vice President and Chief Financial Officer.
The presentation materials will be referring to during the webcast today can be found <unk> under events <unk> presentation on the Investor Relations section at Matrix Service company Dot Com.
Before we begin sleep, let me remind you that on todays call. The company may make various remarks about future expectations plans and prospects for matrix service company. They constitute forward looking statement for the purposes at the private Securities Litigation Reform Act 1995.
Actual results may differ materially from as indicated by these forward looking statements as a result, the various factors, including those discussed in our annual report on form 10-K for fiscal year ended June Thirtyth 2019, and that's been filings made by the company with the FCC.
He thinks that the company utilized this non-GAAP measures reconciliation will be provided in various parts of at least it periodic SEC filings on the company's website I'll now turn the call over to John Hewitt, President and CEO Matrix Service company.
Thank you Karen good morning, everyone. Thank you for Jordan.
As many of you know we all begins each worries call with a focus on health and safety as a way of dropping works to our top priority number one for.
This quarter Cobot 90.
That said.
Swiftly dramatically impact these businesses all over the world.
Amanda even greater focus on health and safety at every level.
Majors leadership teams in our employees are quickly implemented and three measures.
Cobot Nike specific litigation for.
Management programs consider guidance issued bubble government agencies.
Areas in which we operate.
Guidelines issued by the CDC United States.
Yes.
We transitioned the majority of our thousand administrator engineered employees from opposite is working remotely we did so less than a week minimal disruption quite support services.
In projects like needs.
<unk> projects and make them sites continue to work for experienced limited suspensions staffing reductions or significant supply chain disruptions.
In all cases, we work.
Robert Lee with our clients they make decisions about your project sites and importantly, our field craft employees have taken extraordinary steps to keep everyone say.
Well I'll take this opportunity to thank our employees for continuing to support our customers gender critical ongoing work project starts across the country.
I'll be potter your commitment to always doing the right thing, particularly considering the significant challenges we're facing.
At this period, we're creating new habits workflows.
Occasion techniques that will positively impact our environmental social aperture keep us even more connected and make our organization more efficient.
Going forward.
Turning now to a more specific discussion about the business and our outlook.
In addition to dramatically impacted economic activity on a global basis.
She has also been driving force energy demand dislocation.
Matrix was founded over 35 years ago. The company gets operated in some very challenging Josh.
We've been able to persevere and grow the business over that time.
This is due in part due our server approach to managing our balance sheet. Our approach is simple we always look to maintain a good cash balance with minimal debt aggressively manage our working capital demands.
Approach serves our company Interstate over 12.
The point straight into weather.
Variabilities common in our industry as well as I'm confident that like the stands out.
Well, we're in a strong financial position today, we continue to review our business to ensure our cost structure is appropriate for the current market environment.
We've already made adjustments and expect to make others before the end of fiscal year, among them or organizational changes cost reduction programs enterprise wide.
The nation of all non critical capital expenditures for the remainder of the fiscal year, which is a 40% decrease compared to our budget.
To freeze all hiring except for project Chargeable personnel and key organization improvement requirements. In summary, these measures and others will result in an annual decrease as gene I think construction overhead costs of approximately $40 million.
These actions will make us leaner more efficient and protect our already strong liquidity position.
We will continue to be sharply focused on managing working capital.
So on existing new contracts or financial strength and supports our ability to manage the business over the short term it gives them flexibility to take advantage of the opportunities in a market that will present themselves over the next 12 months.
The next several quarters will be challenging, especially for a little gotten chemicals segment I'm confident about the long term outlook for our business opportunities in front of us.
Ability to achieve our strategic growth initiatives moving onto our operating segments.
We continue to see heavy activity in the storage solutions segment in North America, and select international locations across crude small to mid scale, LNG and NGL significant near term booking opportunities.
For example, we were recently awarded the limited notice to proceed on an LNG peak shaving facility somewhere in scope to the facility. We are currently constructing for Piedmont natural gas quite approval, we anticipate making no announcement on that award soon.
The project for Eagle LNG Midscale export facility in Jacksonville, Florida has yet to commence we are finalizing the terms.
I was to proceed.
No that neither of these projects currently included in our backlog.
Finally, with an immediate need for additional storage greater body oversupply crude oil or inspection maintenance and repair teams also seen increased bidding opportunities, but customers, where previously idled storage assets.
Well, we feel good about the activity in the storage solution market recent macro events could impact start dates or word projects and award dates for proposals in progress and our extensive opportunity pipeline.
In our electrical infrastructure segment has communicated last quarter.
Demanded a performance improvement plan for the power delivery services portion of the second expectations that we will increase revenue volume gross margins overall performance as the changes to that plant take hold.
The geographic footprint most work in this segment is concentrated in the mid Atlantic in northeastern U.S., which is severely affected by the coated 19th.
As a result, we have experienced suspensions work at certain job sites and client proposal activity has slowed as they manage other pandemic related challenges.
This environment has impacted volumes in the quarter and will most likely persist in the near term.
We're pleased however that despite lower volumes, we're seeing better execution, which improved direct margins yeah decreased project opportunities from existing and expand clients. We believe this is indicative that the corrective actions, we have taken having a positive impact.
On the generation side, we continue to find quality opportunities to support the construction of new gas fired power assets with other VPC contractors.
Growth of the electrical infrastructure segment remains an important part what long term diversification strategy.
Our old gas and chemical segment performed at a high level for strong direct margins in the core but the segment has suffered from refinery project postponements temporary delays as a result of crude oil supply demand dislocation discussed earlier.
Under absorption of construction overhead costs. It's after the gross margin performance as we prepare for what's traditionally are busy March in fourth quarter.
Demand deterioration wells precautionary measures related to coded 19 reduce delayed or suspended a considerable amount for the plants seasonal refinery turnaround and maintenance activities.
Other projects such as the capital construction work on the ISO Alkylation unit Chevron Salt Lake City refinery continues as does our work in the mid stream gas processing space, including the PC cryogenic natural gas processing facilities.
Our teams are also hard work quite brand awareness and gaining more bidding opportunities chemical petrochemical markets a key growth area for the segment.
Finally, as we continue to streamline the business focused on markets, where we have the greatest opportunity I'm pleased to report that in our industrial segment. Our time, we exit from having a continuous presence in the domestic arms to market is complete.
National segment today consists of work for various industries, including major mining <unk> minerals companies engage primarily the extraction nonferrous metals aerospace and defense, So Matt agriculture, and various industrial facilities.
In our exit from the aren't still business, we are likely to collapse the balance of the services in this segment into the other reporting segments beginning this quarter 21 more.
As you read for going forward and this disruptive environment, managing our cost base without sacrificing quality safety I'll work for our market footprint. This critical part of our near term plan, our ability to do so and the conservative approach to our balance sheet goes or give us a good deal flexibility to execute on our plan.
Next couple of quarters, we'll certainly be challenging.
We are prepared for them is challenges and matrix service company continues to be a leadership position with best in class employees strong financial foundation and diversified opportunity pipeline.
We don't know how quickly the recovery will unfold, but we're confident that when we exit this unprecedented times matrix service company will be leaner stronger optimally position to take advantage of the business opportunities presented to us I'll turn the call it and Kevin.
Thanks, John.
Before we get is actual results I want to address two related topics of critical importance in the current environment.
Liquidity and the reductions of operating costs John referenced.
We entered the third quarter in the strong financial position our strategy of maintaining minimal debt.
A reasonable level cash reserves and borrowing availability under our credit facility. This critical given the cyclical nature of the energy and industrial markets. As a result with the strategy strategy. We remain on the strong financial position at the end of third quarter. Despite the current environment.
At March 31st 2020, we have liquidity of 216 million, including a cash balance of 88 million and availability under our credit facility of 128 million.
In addition, we have only 9 million of debt.
We have continued to manage our cash and working capital and that's up today, our net cash position has improved more than 20 million since the start of the fourth quarter.
During the year, we repurchased 1.048 million shares of company stock for $17 million.
Given our focus on preserving liquidity, we suspended all stock repurchases in mid March.
Last quarter, we also announced capital spending cuts and cost reduction plans in portions of the business.
Given the current environment, we have expanded our actions to cover the entire organization.
We now expect capital spending to be no more than 2 million in the fourth quarter.
This will will result in fiscal 2020 capital spending at a 40% reduction from our original plan.
We also expect to continue a decrease level of capital spending when we enter fiscal 2021.
Specific to restructuring costs in the third quarter, we recorded $6.6 million of charges related to the implementation.
Business improvement and restructuring plan and a couple of units.
These changes were designed to improve future operating results into decrease the cost structure.
The cost incurred related primarily to consolidation.
Office facilities and severance associated with reductions in workforce.
The cost reduction from the expanded plan.
Designed to increase the utilization of the company's staff to bring the cost structure of the business inline with our near term revenue expectations.
The company expects to incur an additional $4 million to $6 million a restructuring costs during the fourth quarter related to the expanded plant.
Once complete.
We expect our cost reduction efforts to save approximately $40 million annually and specifically identified overhead costs.
Approximately 12 million other reductions are related to SG M&A.
Approximately $28 million are related to construction overhead activities.
The company will continue to proactively managed cost structure based upon forecasted revenue.
Overall, our approach of maintain a strong financial position will continue and should position us to capitalize on opportunities as the business environment improves.
Now, let's move to third quarter results.
Consolidated revenue was 248 million for the quarter ended March 30, Onest 2020, compared to 359 million in the same period in the prior fiscal year.
Revenue in the storage solution segment continues to be strong our revenue from the other three segments declined.
Consolidated gross profit decreased to 20.5 million in the quarter.
Compared to 36.9 million in the third quarter last year.
The gross margin decreased 8.2% compared to 10.3% in the same period of prior fiscal year.
Contract execution was strong we're improving in all four segments during the quarter, especially in the storage solutions segment.
Our gross margins were negatively impacted by an under recovery of construction overhead costs.
Due to lower revenue volumes.
Consolidated operating expenses were 19.7 million, an 18% decreased from 24.1 million in the prior year.
The decrease as a result cost reduction initiatives and lower incentive compensation due to weaker operating results in the current year.
Including the 6.6 million of restructuring costs I mentioned earlier the company had an operating loss of 5.8 million in the third quarter as compared to operating income to 12.8 million in the prior fiscal year.
Our effective tax rate for the three months ended March 31st 2020 will 60.9%.
Tax benefit on our operating loss.
Was negatively impacted by higher than normal nondeductible expenses.
The three months into March 30, Onest 2020, we had a net loss of 5.5 million.
Or 21 cents per fully diluted share.
Excluding restructuring charges the company had a net loss of $400000 or two cents per fully diluted share.
Adjusted EBITDA for the quarter was $5 million compared to 17.7 million in the prior year.
The primary reason for the decline was lower revenue volume and reduced recovery of overheads.
Moving to the third quarter second performance, starting the storage solutions.
Revenue for the storage solutions segment was 144 million in the three months ended March 30, Onest 2020.
Compared to 134 million in the same period a year earlier.
The increase in segment revenue was the result of increased tank and terminal construction work.
LNG related capital work and higher levels of work in Canada.
Segment gross margin was 12.5% in the quarter compared to 10.8% in the same quarter last year.
The fiscal 2020 segment gross margin was positively impacted by strong project execution, a large capital projects.
The third quarter, operator operating results for storage solution segment, we're not significantly impacted as a result of cobot 90 and related effects.
The few temporary project interruptions, we have experienced in this segment have been related to implementation of additional health and safety protocols.
And while we continue to see good project opportunities. The most significant impact to storage solutions has been to the timing to project awards in stars.
Next oil gas and chemical.
Produced revenue of 52 million in the quarter compared to 83 million in the prior year.
The decrease is primarily due to lower volumes of turnaround and maintenance work.
As John discussed our refinery client organic chemicals segment.
I have been significantly impacted by the supply demand disruption caused by the opened 90.
Scheduled turnarounds are moving out of fiscal 2020.
Rescheduled to later dates in addition, maintenance crews have seen significant downsizing.
As we work with our customers to safely meet the revised opex spending targets, while maintaining the central services.
The segment gross margin was 5.6% the three months ended March 31st 2020.
Compared to 13% in same period last year.
Project execution was good during the quarter. The segment gross margin was negatively impacted by lower volumes, which led to under recovery of construction overhead costs.
Now for electrical infrastructure.
The second quarter fiscal 2020, the company announced the business improvement plan.
Ports electrical infrastructure segment.
The plan included significant changes to the operations a management of the business, including changes to leadership.
Modifications to operational processes.
Changes to mid level operating personnel and increased business development resources.
Next acumen of the plan is progressing but the current pandemic environment is impacting the timing of the turnaround.
Revenue for the electrical infrastructure segment was 28 million in three months ended March 31st 2020.
61 million in the same period a year earlier.
Project execution did improve from prior quarters.
However, gross margins were negatively impacted by under recovery of construction overhead costs as a result of lower revenue volume. The segment gross margin was 2.6% of fiscal 2020.
And 10.2% in fiscal 2019.
Finally, the industrial segment as expected the revenue for the industrial segment decreased significantly as a result of the company's strategic decision.
To access the domestic iron steel business revenue for the industrial segment decreased to 24 million in the quarter compared to 81 million in the same period last year.
The segment gross margin was a negative 5.2% and the three months ended March 31st 2020 compared to 6.6% in the same period a year earlier.
Fiscal 2020 segment gross margin was negatively impacted by stranded overhead costs associated with the iron and steel business. These costs will be eliminated by the end of the fourth quarter.
Now brief overview of year to date results. The company produced revenue of 905 million through three quarters.
Compared to 1.018 billion in the same period last year.
For the first nine months of fiscal 2020 operating results, which included 38.5 billion of impairment charges and $6.6 million of restructuring charges were a net loss of 27.4 million or dollar and two cents per fully diluted share.
On an adjusted basis, excluding the impairment and restructuring net income was 11 million for 40 cents per fully diluted share. This compares to net income of 15.2 million or 55 cents per fully diluted share in the first nine months of fiscal 2019.
Adjusted EBITDA for the first three quarters of fiscal 2020 was 31.6 million.
Fair to 35.6 million in the prior year.
Moving to backlog our backlog decreased to 727 million at March 31, 2020, compared to 872 million at December 31st 2019, the quarterly book to Bill ratio was 0.5 on project awards of 113 million.
In addition, the company that cancellations or previously awarded work of $10 million.
Finally, I'd like to remind everyone that given the disruption in our end markets.
Certainly concerning the duration of the pandemic, we review our financial guidance for fiscal 2020 on April nine.
I'll now turn the call back to John.
Thanks, Kevin.
Before we open the call for questions. Let me reiterate three points first we will continue to be relentless about the health and safety of our employees clients and business partners next we will remain focused on those elements. We can't control, we are making adjustments to our cost structure are appropriate. The current environment. We will continue to tick super approach.
Balance sheet, which benefits all of our stakeholders, especially in times like these finally, despite the significant challenges ahead, we are confident that major exit this great stronger and more competitive and we will achieve our long term growth objectives with that I'd like to open the call for questions.
As a reminder to ask a question you will need to press star one on your telephone.
Please turn your question, Chris dipping our Heskey. Please standby compile the Q1 day roster.
Your first question is from John ranging from Sidoti and company.
Good morning, Johnny Karen.
Good morning, John.
I guess I want to start with the differences you're seeing as far as maintenance work in the turnaround season, you mentioned that some of them we pushed into the fall can you talk a bit about your ability to recapture of hold out work or is this going to go into the full and into again next spring of next year what are your thoughts there.
So it's.
The client that we normally do business with year on year out there the.
Fixed base maintenance operations that we have that the.
Our workforce was reduced that we're already hearing about plans are starting to bring that back here over the next quarter a couple quarters.
So no real concerns there that will be dependent on our clients maintenance demands on our sort of and I say working in our in our turnaround that we had plan would be our would be our.
At least and strongly that those clients that we have lined up for turnarounds and the spring that a push that work that we will be back with majority of those clients. When it's time for them to two to do their turnaround whether they are those turnarounds in the future minimize toward or potentially expanded.
On the condition of their facilities.
Okay.
Regarding the awards that you had in the quarter and that you're seeing now.
Fourth quarter.
Can you talk about how much has been pushed out that you kind of expected to close in Q3, and possibly because Q4 and you expected Hello into Q4 or is it something like the timing is are these awards are they moving into next year.
Size and for me, who know what are you thinking along those lines.
Well so.
If you look at.
The three projects that we've talked about that have moved out I think we would've expected one or maybe two of those have been signed in the third quarter, an excellent get into backlog I think there's been some delays in up into the award process.
John mentioned, there is still in progress on those so.
It's hard for us to gauge exactly when.
We're going to gifted all the t's crossed an i's dotted built but those things and backlog at this point.
But the good news as those three projects are moving forward and appears and these are good sized projects. These are projects that would would move the backlog.
Backup to a more a level that we would normally expect.
Okay, all right, Kevin and one last question given the access but oil around north America's for Youre concerned.
Can you talk a little bit why you haven't seen some spike in demand and the storage side as a business now.
When did that prevents customers from from building storage facilities.
Yeah, I think no the sort of so two things there one is that our our repair and maintenance and inspection teams, which is up work, we do on a quarter over quarter basis.
They are seeing some slight and bringing idled tank assets back online. So people can use doses store accrued but for our midstream companies perspective, and probably fried integrating companies perspective, if you look at the forward curve on on oil and then price of oil and then you consider that amount of time that.
Takes and get through all your permitting environmental studies financing decisions get thanks, Bob feed studies get them.
Built you got 12 or 18 month cycle. There. So so if you look at that and then look at what the forward curve is.
There isn't there isn't a real great financial model that would say LG will oils pick a number 20 bucks well go below 5 million barrel of other storage.
And we'll have that 18 months, while price of oil 18 months from now could be $45. So there is enough there isn't a time you actually able to buy the oil starts so the financial models don't necessarily work real well based on where the forward curves are on the crude oil. So I think what we're seeing.
Is the projects that the the true midstream people. They look out in time long way they care about what it's going to be going on in supply demand 510, 15 years now their foot long term assets in place and so a lot of the big projects that we were providing.
Pulmonary engineering on feed work on those projects are still out there there are still looking out into the out into the future to build those projects and so those kinds of things that make comments as investments are architecture.
Great great. Thanks, I appreciate the color I'll get back into queue. Thank you Karen.
Your next question is from Bill Navy with D.A. Davidson.
Good morning, guys. Thanks for taking my questions.
Hi, Bill Marco.
Yes, if any Kevin I just wanted to start on the cost reductions.
Is there.
Is there a portion of those that will take time to kind of ramp up or put into place or do you guys expect.
To enter fiscal 21 kind of with all of those 40 million.
Cost reductions and place.
On a run rate basis.
Yes, the plan is that that.
Virtually all the steps required to get those.
Hey means a 40 million would be in place as we start the fiscal year.
Okay. We've we've been taken actions in the third quarter, there's been some activity already before so we've got a step plan.
To achieve that 40 million.
Okay. So we know we know where those cost reductions are coming from so this is a start up.
Hey.
Uh huh.
Reactionary plan right. So we've done a review of our cost structure of the company.
In spite Venice bid business by business, including corporate and we have a plan, we know where those cost reductions are coming from where we're asking right now.
Got it I appreciate that.
I guess I'm wondering if you could maybe try to help size that the potential downside in oil gas and chemical in the near term I mean, I look back to.
2015, and timeframe and it looks like that segment did at 530 ish million in a quarter I mean it.
Is that potential there here in the near term or do you think you are closer to a floor than that.
I think we're closer to a for them that Bill I think our business has changed since 2016.
Yes, we do have a bigger a gas presence and while that that markets under stress too. We do have worked there. So I think we're closer to the floor now than.
I wouldn't expect down.
For.
Okay.
And then I just wanted to touch on storage quickly I mean with.
Assuming we continue to see projects pushed to the right I mean, it's like we had been kind of past cycles. I mean, with what you guys had been the backlog right now and the cadence of those projects and I get starts continue to move around but I guess I mean, how far out did your visibility to growth to go and.
That business Jets looks like you guys haven't backlog at what point does that does growth start to get a little little more money.
So if were for the the three projects that we mentioned.
So at least two of those you know as we get those into backlog.
Thats going to give us a lot of.
Strength over the next 12 months.
What were seen in the bidding that opportunity environment. There, we still think very strong pipeline there.
Our next with individual tank projects as well as well terminal projects in a couple of energy medias.
It's just the visibility for us on the time.
Mark this a little merger so.
As opposed to that work, but as opposed to his or work. So we feel fairly confident about the quantity of work that's out there in the future our ability to continue to work out into the future the quality of our backlog, we still feel very good about so it's just going to be that you need a wendy.
Things will get awarded and when they start so.
Remember back in 16.
Right Depression.
We were not the same company, we were four or five years ago, We've got a much more expanded strong business develops.
Yes, we've got bigger geographic.
The proven ourselves.
LNG market very well.
Proven ourself terminal markets instead.
Knowing that they cut assets.
Infrastructure. So we're just a different company we weren't so we've got a much more solid patricia into storage market and we added the path and on top of that we're continuing to see.
More international opportunity so international.
For us would be used the Caribbean Islands now into Mexico.
Yes.
So we're we're continuing to see more opportunities out there too so.
I would say, we feel pretty good about positioned in storage market, where thats going now, it's just going to be the timing of awards quarter. All the next three awards.
How small awards flow through.
Our backlog over the next to work.
Yes, Bill we we usually in the form of 520 million of backlog.
Average interaction or 45 million or revenue per quarter in the first report year mortgage though we've got.
Close to a full year Oh.
Backlog today without those three projects so.
We are positioned well too.
For the for the next year.
Okay.
Got it now Thats why I was thinking thanks, guys I appreciate it all out our come back in Q.
Okay.
You have a follow up question from John franchise with Sidoti and company.
Yes, hi, electrical side of the business I.
I know you have customer concentration in north consume in Atlanta.
Pursuant to the core one of your frustration is when you decide to downsize the business is correct.
We didn't feel that you were getting your fair share of awards or.
We're out there and the opportunity to type thing.
Since I talked to how Thats progressing you know creamer its latest since we've had this conversation last.
We havent so.
Couple of things, we haven't completely finished the on all the so obvious improvement plan. We've got a lot of work on around the execution in the in bidding part of it the business development piece of it has been the part that we haven't gotten as far as what we wanted to some really quality improvement and personnel.
All additions there, but we have a couple other steps that we want to take Fortunately this pandemic issue as has created a lot.
Out in the whole in that in that part of the plan. So and then you got our main clients in the northeast our AR.
They're dealing with their issues like lot of other place across the country related to the pandemic and not so for administrative standpoint are focused on other things not necessarily on what's the next substation are going to fix so.
We're starting to open up some doors on some clients. We don't traditionally work for so that work is going on and so I think when things get back a little bit more run rate are probably clients that will start see a much improved job proposal opportunity pipeline.
Yes, I'd add on to that.
Think about.
The electrical segment performance this quarter, we really didnt have any what we call a product major project fades and for that matter, we didnt have any bad projects throughout the throughout India, the four segments and so.
I think that shouldn't be lost that our teams are booking good projects and then executing those projects and for us its focus on.
Given the next projects and they get the cost structure in line with the future revenue base to to improve their.
Earnings in the gross margins and in all four of the segments.
Okay.
Fair enough and just on the soon to be merge industrial business.
The cost actions that you're taking.
How quickly will they.
Notify the.
Operating loss that this business is currently generating I mean, you did operating loss of 7 million this quarter.
10 million last quarter.
I mean, we're going to get to break even with that remaining stub piece the business.
The June quarter or not.
Well as Kevin it's Kevin on here as Kevin noted, we had some stranded overhead costs as we while down the are our services in the iron steel business that we could can't get rid of hundreds of immediately all that stuff will be will be out of the company by the end of the fourth quarter. It.
If you.
Normalized that segment without that stuff the things that remained in their provided a gross margins.
At the top end of the ranges that we expect in industrial. So so you get thats about that segment made was make money, yes, but one thing about that $7 million loss.
You'll see this in a footnoted in Q.
Filed later today and that that.
3 million of that as restructuring charges.
7 million are some some cost are still hitting that will will be out of that but into the into the quarter. So.
Just to support John pointed out the projects that are in there are actually good projects, making decent decent margins.
Perfect exactly I was looking for things like guys.
Okay.
Thank you.
I think anything you'd like to ask a question. Please press Star then the number one.
Keypad.
[music].
Im showing no further questions at this time I would now like to turn the conference back over to John Healy.
Just want to thank everybody for joining us today.
Courage, everyone to be careful to the healthy and to be safe in Europe, and Europe homes, and environments, where where youre working.
Thank you to take the cautions.
That are being recommended by the CDC and years state local federal governments and as relates to matrix. I mean, we're going to continue to do that we're going to be conservative on how we re enter the the the normal workforce and but we are still really really good about our company about where.
We are about our ability to work through this storm that worked very good and strong position financially. We're in really great markets and we've got good visibility and good client relationships and we're really we're really excited about when when the markets.
Starting to pick up as the economy begins the churn we're going to be in a really good place and take advantage of that improve those improved market conditions and so with that I look forward to talk and everybody on the in the next quarter and thank you very much for being with us today.
Okay.
Okay.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.