Q3 2020 Earnings Call
Good day and welcome to the twin disc Inc. fiscal third quarter Twentytwenty earnings Conference call.
Today's conference is being recorded at this time I'd like to turn the conference over to Stan Berger. Please go ahead Sir.
Thank you though.
Moving to 20 years feel extremely.
Just.
All right. Thank you for joining us to the switch we couldn't speak school.
Hi, good quarter, no most financial results and didn't show.
Before I introduce me no lunch with minor.
Certain statements made during this conference call, especially those actually.
That's true hopes beliefs expectations or predictions for the teacher well for statements.
It's important to remember that the company actually.
Sure.
No just in such forward looking statements additional capital could also cause actual results could differ materially.
No.
Then King places.
That makes some concerns there.
Absent jokes.
No no.
She has been too.
And your reported Washington.
Copies of which maybe getting back on track.
Sure.
I know you shouldn't machines.
[laughter].
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Did you get lucky because he's calling it.
So keeps its too.
I mean, what else can choose from talking to you.
Well from the calls today are drawn Dan pundits, Chief Executive Officer, Jeff Kaminski, because he's vice President finance.
I wasn't sure treasure chest.
This time I will turn the call over to John John.
Thanks, Dan Good morning, everyone before I begin just just in case, you hear a random dog working a person walking by I apologize if the new world.
<unk>.
Before I turn it over to Jeff to go over the financial it's just a couple of comments and on the quarter third quarter very many wage is very good operationally.
A lot of head grade cost reduction on on products that we've identified in previous calls in the transmission Marine area.
We're not for the continuing performance issue on 8500, Frac transmission that gross margin would have had more sequential improvement although operationally there wasn't too.
We also made.
Quite a bit of headway in developing new projects in customers in North America said that politics, and a lot of new application for industrial products.
Very many ways to the third quarter started off very normally are 85 on this will working extremely hard in the field and that led to a that includes charge. The issue is well as the transmission becomes out of alignments it as it becomes.
He's more and more hours, we have a seal issue.
And we need to change that before we have leach and then the clutch failure. So what's happening in third quarter transmissions reviews in the U.S very very hard so we couldn't get to all of them as quickly as we could so there's there was the belief that they've been more plus failures.
That has pretty much changed dramatically is everything that's come to a rapid halt and I'll come back to what we're doing there.
But again in late March.
Everyone everything all the things that would happen in the quarter came to a rapid helped in late March and extending into April outside of North America. All of our operations that are factories or distribution operations in Singapore, and Australia basically had to shut down at some point depending.
On the country the minimum of a week, sometimes longer for two weeks in Belgium is two weeks, Italy.
We'll take the two weeks, but we're all all of our operations with the exception of Singapore right now starting.
Slow open back up well back working Italy backward in Belgium, I'm coming up slowly as we see yep suppliers are often and how many hours need to ship, but is that is not order.
All of her employees globally that can work remotely or walking them remotely that includes Jeff and me today, we started that in the North American corporate offices in March before was deemed necessary.
Wrapping up 25, 55%, 75% and then everyone that could operate remotely I'm very happy to say that we've had very low told at 19 infection rates are today, the only one when the only place we know for certain was in Belgium.
Five cases, and all are recovering.
I see.
Never seen plants, North American operations never shut down we operated with a smaller crew and much fewer people only people necessary in the office, albeit at a lower shipment rate.
And we've also so or the Lufkin facility has been pause probably for three months, because we couldn't finish up the construction there but that shouldn't be back on track later this summer.
In April we apply Didnt received a P.P.P. loan I think most of you seem that press release do we think that other small businesses should have gotten the P.P.P. funding yes.
We follow the rules laid out in the chairs Act, yes in the acted absolutely good stage I, we prepared for the audit afterwards, absolutely do we think that this process could be vastly improved definitely.
Finally, we reviewed our good state certification process with legal advisors financial advisors and their board after research and all that funding auction.
The P.P.P. fund to use the seat we brought people back in <unk> and some of those are working on the 85 hundreds so.
Part of that charge that we took in third quarter is reflective of doing the repair work with our distribution.
Service Techs are more of this work is going to be done internally with people that are not necessarily needed for production than in other areas and we're going to be doing these appears internally.
We also recognized with this loan is temporary and that fully understand that we need to have the cost structure in place once this loan.
This funding and in late June.
Jeff that that'll turn it over to you right now.
Thanks, John Good morning, everyone I'll briefly run through the fiscal 23rd quarter numbers.
Well I'm failed at 68.6 million for the quarter were up 9.1 million or 15, just over 15% from Q2, but down 8.8 billion or 11.3% from the prior years third quarter.
Quarter decline for the prior year, primarily the result of the significant reduction in new build the aftermarket aftermarket activity in the North American fracking market.
Along with a softening in the global Marine and industrial markets oil and gas decline accounted for approximately 10 million in third quarter reduction in sales.
And as a continuation of the slow down we've seen or heard it towards the end of fiscal 2019.
The first three quarters sales are now down 42.8 billion or 18.6% compared to the prior year with foreign currency exchange contributing 2.9 billion to the decrease.
The third quarter margin for sat with 24.1 compared to 29 nine in the prior year third quarter.
Our gross margin performance for the quarter was against severely impacted by continuation against favorable product mix, which began in the fiscal 19 fourth quarter with lower fracking demand for new rig construction and reduced aftermarket demand being the primary drivers.
In addition, we recorded an additional $2.2 billion charge related to the product performance issue initially identified in the first fiscal quarter.
Adjusting for this charge the gross margin percent would've been 27.4% for the third quarter, which would mark the third consecutive quarter sequential gross margin performance improvement.
Proving operating trying to resolve the targeted cost reduction actions on t. products and overall focus on cost containment and production efficiencies.
As we discussed the the rents at school 19 earnings call, we anticipated a continuation of the difficult sales mix and have been focusing on cost reduction and pricing actions to drive margin improvement.
I think on marketing engineering and administrative costs for the fiscal 23rd quarter decreased 2 million or nearly 12% compared to fiscal 19.
The decrease as a result would reduce bonus marketing spending stock based compensation and professional fees along with the impact doesn't know walk sale, which happened during the third quarter of last fiscal year.
With the oil and gas markets troubling over the past four quarters, along with the anticipated downturn associated with called the banking, we have aggressively pursued cost reduction opportunities to compensate for the declining gross profit.
A restructuring charge of 500000 was recorded third quarter, primarily related to ongoing cost reduction and productivity actions that are European operations.
With the unprecedented combination of the cause of 19 uncertainty and the decline in global oil prices.
We accelerated our impairment review into the third quarter. That's resulted in a non cash impairment charge totaling 27.6 million is recorded then after just a quarter.
With a third with reduced third quarter volumes challenging product mix, a significant impairment charge. We recorded an operating loss of 26.9 billion net in the quarter compared to a 7 million dollar operating profit for the fiscal 19 third quarter.
Adjusting for the impairment charge operating profit would have been a positive on 23 million in the quarter.
Through the first three quarters operating profit declined by 67.3 billion to an operating loss of 38.7 billion from an operating profit of 18.5 in the fiscal 19 for three quarters.
Fiscal 20 year to date result includes 4.9 million got restructuring charges of 6.1 billion product performance charge as a $27.6 million a pair of it.
Adjusting for these items year to date operating income would have been roughly breakeven or $19 million decrease from the fiscal 19 for three quarters of 43 billion reduction fail.
Yeah, the tax rate for fiscal 20 to date was just a 29%.
Secondly, lower than the prior year rate of 24.6%.
Current year rate was significantly impacted by the 27.6 million dollar impairment charge recorded in the third quarter, which resulted in a 13.8% decrease with the current your effective rate.
Because your rate was also impacted by the guilty provisions the tax cuts and jobs that which requires the inclusion of Florida income, but to have that certain foreign deductions a card it wasn't a domestic loss position.
You guilty inclusion treaty year to date effective rate by 2.7%.
The net loss or the third quarter fiscal 20 was 25.2 million or $1.92 per diluted share compared to an approximate 4.6 million or 34 cents per diluted share the prior years third quarter.
Year to date to net losses, 38.1 billion or to 89 per share compared to a net profit of 11, and a half million or 90 cents per share in fiscal 19.
Negative EBITDA of 24.9 billion for the quarter down from a positive either the $10 million a part of your third quarter.
Again, adjusting for the 27.6 million impairment charges itself through the course would've been a positive 2.7 billion or at 4.7 billion dollar improvement from the from the previous quarter.
For the first three quarter, good because no negative 31.5 million compared to 27.1 billion positive EBITDA that fiscal 19 for three quarters.
As we reported during the call last quarter, we were able to complete the third amendment to our credit agreement would be on January 28.
It's about it was intended to provide temporary covenant relief doesn't work through the market challenges we're facing adopted.
Our third quarter results were in compliance with revised covenant levels with the debt to EBITDA rate show, a 4.56, which is within the revised covenant requires a five point L.
The recent market development.
And even more challenging outlook, we will be reviewing alternative covenant arrangements with <unk> for our fourth fiscal quarter and beyond.
Those discussions are ongoing has been very encouraging.
Okay, that's probably was down 7 million in the quarter as reduction efforts started to gain traction.
The salad inventory improvement and good working capital results free cash flow positive 2.9 million in the quarter contributing to a $9.6 million decrease in that in the in the third quarter. Six luck backlog finished the quarter at 87.4 billion, which is down 8% for the previous quarter and 12% from the end of fiscal 19.
Operating cash flows causes a 5.3 million at quarter end dates and year to date 17.5 million better than the prior year first three quarters, despite significantly reduced earnings.
Capex levels remain relatively high the quarter similar to prior year levels as we execute on some key investments and machinery and equipment.
Both the ongoing Capex had been approved several quarters ago is nearing completion.
We continue to expected spend between 11 and 13 million this year.
Given the current Mark market outlook, we are reviewing all capital projects and deferring all non essential capital spending.
And now I'll turn it back to John for some final Cogs.
Okay. Thanks, Thanks, Jeff.
Looking out into the next couple of quarters, we feel that the next six months, we'll be very challenging an unpredictable no the customers and distributors are actively working down their inventory as well as we are so markets our end markets. It could be down 20% couldn't be in the short term downturn false for 40% or in the next couple of.
Quotas looking at the incoming order rates.
We're continuing to aggressively to follow strategic objectives that market diversification through an acquisition and our lufkin investment and focusing our industrial products one team and just a final caught a comment on the impairment that this is in no way indicative of that confidence, but that is absolutely right. After.
Is there shouldn't be like time for us just given the uncertainty of market recovery and the length of the corporate 19 pandemic the impairment charge with the that's the right decision.
Finally, before I turn it over for questions. We feel like things are changing so fast HM we have regular calls.
With customers with our distributors or we have regular called update calls with the board.
Management feels it it's only appropriate and try to have another call. If you are investors.
Sometime between now and our fourth quarter results call, which would probably be in the first week of August.
So, Jeff and I will be sending out a press release, probably in the next month or so on the timing, but we're anticipating somewhere around late June early July obviously to stay away from the fourth of July weekend, and what we feel that things are changing so fast and we don't know exactly what we'd be talking about what I'm sure you have something.
You're talking about we won't be going over.
Any audited financial results would it be more on on market conditions, and what we're seeing so with that Valerie well open it up for questions.
Thank you.
She would like to ask a question. Please signaling by pressing star one on your telephone keypad.
If you're using a speakerphone. Please make sure there your mute function is turned off somebody's signals from each or equipment.
Again press Star one to ask a question.
Well pause for just a moment hello, everyone and opportunity just over for questions.
And we'll take our first question from the line of no. Okay. Oppenheimer. Please go ahead.
Well good morning, and it's actually something the questions first of all it's very good to hear that you and your employees are in good health and of course, we hope that those who have gotten infections continue on that perhaps a recovery. So there were just say that thanks. Thank you know we oh, we have been extremely.
Lucky.
We recognize how lucky we've done so far.
[noise].
Quick.
Question to start us off just really have us right.
Yes in fact should be impairment charge net of tax I guess, what the bucket and center, but just wanted to get that figure for other ones.
Yeah.
The data was Ah I think we had a $1.8 billion tax intact I was 27 six of 24 eight.
So about $1.86.
Okay.
Okay. You commented on the impairment you know not being indicative of any change your confidence in the acquired People's can you just called a year to date, how is a power got sales.
As you can get sexual figures I grapes relative to prior years and kind of what what drove the extreme turn it to what were the consideration and that's it.
Yeah, I guess I can take some of that no that that meet Q3 has been performing very well.
Its sales are I would say essentially flat with the prior year up from.
<unk>.
Pre acquisition, so we've seen growth.
In their sales they've had a lot of very strong market acceptance in North America that best Ah, it's sort of incremental to the business since since acquisition. So the strategy was a very strong and performing I think what what we we faced was.
All of that doesn't really play into.
The impairment.
Analysis, right, so and while we look at impairment, we're looking at market condition going forward and our best estimate of what those might be and and the environment that we're in in particular in a goodwill impairment. It it can become a very conservative exercise.
So you're really looking at.
As a forward market conditions through a different land. Maybe then you Ben we evaluate that strategy on an ongoing basis. So its kind of two different two different views of it but certainly we feel very strongly that that's.
I've got strategy and that that company is performing very well and I won't continue despite what might be a difficult.
For eight quarters in front of them in terms of demand.
Right. So just following up on the you know that there, but there may be a some demand probably just can just talk about your your expectations for their overall resiliency say compared to some of the more cyclical course of the business.
Yeah, It's no it's John.
I think there, they're well positioned within the company could be the I kinda product line.
To be the most resilient. They also I should add they were the other exception I apologize. They remained open the entire tons well they had some reductions in force, meaning not everyone was coming in but they also stayed open its again.
Until I never would have <unk>, Jeff never would have been dream, taking any impairment charge on that until cope with 19 and really the exercise was the uncertainty on the length in the depth of this recession led to that and taking full amount, but as far as it.
You can north American really weak.
We're going to be very aggressive to take market share. We just don't it's it's how long it indicates what customers I mean, we definitely see we've seen some slow down in fried chicken activity. The things that are like site two vessels. So we just do the best in for Niagara Falls.
Yes.
And all electric vessel with just markets like that that are relying on tourism or people coming together you know ferries.
We think that that move those markets are going to be shipped for you know undetermined amount of time, but overall what their hybrid strategy. There all electric I think they have they haven't credit do they future with us in a very positive moment.
Well right I'm just thinking about.
Don't sort of original goals for the year to kind of get to a it was positive free cash flow as any commentary on the press release as well you know if we kind of coming at the low end of Capex.
Basically if you view it looks like you generate.
7 million.
Operating cash flow.
Sure.
You'll get to breakeven so just to talk about kind of confidence and believe the PUC staff working capital if they pick up there what are you doing right now to make sure the chair pedal.
Yeah, I can I can take at least part of that one though yeah. Obviously in this environment, where hyper focus on liquidity and generating cash.
I think the third quarter was the start of of good momentum Paul in terms of inventory reduction.
We.
With our markets down and we expected, particularly North America oil and gas to be down significantly it that puts a little more challenge on inventory reduction, but we're still confident we'll see inventory reduction to our fourth quarter.
Well, it's hard to hard to know what kind of.
Volume impact, we'll see in Q4, our projection right now would be that we have.
Continued positive free cash.
In Q4.
But obviously that that's a very.
Difficult.
Forecast to make with the uncertainty around what customers might be pushing out orders left suppliers might be a slow and getting us product. So a lot more uncertainty and variables and in Q4 than normal but were certainly we're pushing for.
While continuing to see black number than in free cash flow.
Right.
So I'm just trying to catch up.
Yeah. We are again hyper focus we should see continued inventory reduction from the plants.
And.
That that will continue so.
We feel pretty comfortable that we'll be able to maybe not replicate what we did in third quarter, but we'll have a pretty good result.
Yep, Yep, and that's with unless I missed that I think you're saying kind of initial thoughts it.
Quicker next quarter to be down about 40%.
Although please feel free to correct me if I just characterize that but I guess just last question on liquidity situation then.
You gave a leverage number.
First I'm just is for purposes of calculating leverage at the impairments included or excluded.
And then you mentioned that you're having some constructive dialogue on kind of leading to.
And then do you agree then further at as needed or can you talk about understands this discussion ongoing have expectations what for what that ultimately might be just in terms of segment increased its interest expense for a period of time and any other options that might make sense for years, just as you're thinking about further increasing.
Liquidity optionality between companies doing bridge facilities and things like that.
Yeah.
Yeah Alright.
Yeah the quarter. They did you, but that does add back the be impairment. So the be 4.5 cents a debt to EBITDA Uh huh.
Back to that impairment.
Our covenant relief steps down from five to one ratio in Q3, two affordable and ratio in Q4.
So yeah, we recognize that with our market conditions what was happening.
Well, they would probably not going to operationally get to that.
So we have had initial discussions I I really don't have enough detail to.
To a I'd say, we're not deep enough into it to give you any guidance on whether that would result in and interest increase or what kind of covenant might make sense I think its something that all bankers are working through right now.
I'm quite confident that that'd be low we'll work with us and we'll talk to some a solution that works for both sides.
They've been great with whats the relationship is very strong and I'm I couldn't be happier with where we are interbank right now.
Yeah.
That's right.
I just wanted to add so when I when I said that if markets, where downs, we could be down 40%.
I don't have any concrete evidence of that yet that was just to say that we need to be ready with plans and the cost structure in place if that happens if he that happening we will react to that reality.
Yeah, No and I would think.
Well with.
Are you guys managing.
The balance sheet and working capital.
Do they seem to be able to generate a sort of close to positive free cash flow.
Coming up the other side. It does you know there should be flexible I'm. So appreciate all the updates and good luck obviously.
Okay. Thanks no.
Thanks Fellas.
Thank you.
Finally at your question has been answered you may even move yourself from the Q by pressing star too.
We'll take our next question from the line of Josh Chan of Baird. Please go ahead.
Hi, Good morning, John John Popeo, both staying safe.
Thank you I get asked here too.
Yeah. Thank you just if I can start off with the quarter itself did I hear correctly that oil and gas contributed 10 million of revenue will decline.
[music].
In the quarter Yep.
Yes, Oh I get appeared to forget that really important.
Right. So I guess that means the rest of your business actually did fairly well at least within the quarter or so could you talk about.
You know I, but I know that's was pretty good but areas there were a little bit more stable or even have some strength relative strength.
Sure I would say you know the brown water applications in North America, the push boats, along the river with units and spare parts and then also similar type push boats in in Asia did fairly well and again.
After market had been it's a fairly strong component in industrial and then our our markets had remained stable and as an uptick in our and our military legacy transmission sale. So if they said in the I'm really Josh and you know.
So you got into March we're feeling pretty good about the quarters and we still had oil and gas you still has smaller now those oil and gas shipments into Asia. So.
Third quarter for two and a half months was going along as planned or be it better than planned.
So everything changed in mid March.
Right, Yeah definitely that makes sense and so you see you mentioned some order cancellations I think in the press release, I mean or are those [noise].
Limited oil and gas or was it more more broad based on that as we've gotten to April timeframe.
It was more broad based certainly there were some oil and gas spare parts order cancellations some unit push outs.
[music].
But a lot of that I think was you know buying in advance of of projects primarily in marine some industrial but I I would say most of its been marine and again customers and distributors deciding to work off work down their inventories and not where places. So a lot of the projects will still go on.
But our distributors may not replaced the units that are they sell out of inventory with numerous.
So.
And in many cases, Josh that you know those orders could come back in the quarter to but.
If I can't point to any any one market other than.
A lot of our distribution partners.
Deciding to work down their inventory.
Right right. So I guess does the the 40% you know what kind of shows decline you know it would you handicap certain verticals or geography is being worse or better than others.
I.
Yeah, I would say most of the activity.
North American Asia, but but also quickly to come back you know that's what are concerned. If you know you <unk> you see order cancellations you see push outs or you don't see new orders just orders come in so you're like well the markets are down 20.
History has shown that that potentially could be double for us. So you re size and staff for that but it's short lived.
We got caught in this back in 16 and 17.
And it wasn't just oil in North America oil and gas became going back we had some other markets coming back to so.
We just then that's why we continue to have ER, our regular calls with a distribution principles and other customers because we want to know what they're doing so we don't overreact one way.
On the downside and we're not there for them on the upside so the unknown Josh it's unknown for everyone. Its you know I certainly don't think this is a V.
I don't know fit to you.
[music].
Because I don't know that recovery on the right side of the you will be is great is that a contraction on lots on the left side, but.
We just we're trying to get clarity in like how long is that bottom gonna be.
And you know I think is there a chance that we have one quarter like if it's a first quarter next year or second quarter is there a quarter that could compare 40% down from a year ago comparable there's absolutely that chance, but I don't think it'll be.
Four quarters in a wealth or anything like that but we just we're trying to make decisions on our cost structure based on.
Our best guess it with the next six to eight quarters are going to look like.
Yeah, absolutely appreciate that dynamic environment there.
I guess the I guess last question I haven't made we covered some ground on liquidity is high but how low can capex be next year.
If you kind of really.
Limit sort of the discretionary spending there.
[laughter].
I think we've been as low as in the in the five to 6 million range. I think that's that's about where you would expect it would be would drive too.
<unk>.
Okay, great, thanks, sort of like color and felt like managing through a tough environment.
Thanks, Josh.
Thank you.
Well take our next question from assignment as long as GE Research. Please go ahead.
Hey, John and Jeff how are you.
Hi.
Uh huh.
Good I'm thinking so.
It looks like oil and gas oil and gas down 10 million year over year that puts your Oh gosh why would you like 8 million for this quarter.
<unk>, how much of that new equipment versus consumable.
Yes, I don't have the numbers in front of <unk> 80, 2090 10.
Yeah that make it through you know how many units we delivered to age out right that would be the that the new equipment that.
So.
Yeah, I saw something in that.
[noise] maybe that.
Yeah.
It was getting at something that we're still we still in the quarter had pretty pretty healthy shipment basis.
Yes.
Okay.
Okay, and then not in terms of taking so much slowly getting kirbys extra cost related to <unk> pressure pumping customary guys having issues.
How big is the fleet and how far long like you and every centers.
I.
I would say we are.
Well I was closer to 75%.
And it just got a lot easier because everything is pretty much come to a stop so.
Our goal is to get to you know as many of the but you can do on the rig in a couple hours to get that all buttoned up here pretty quickly.
But we still have again the repairs that need you know the.
Late December to bring out the clutch you got to take to the the transmission off the rig a we're going to do as much of that work internally as possible with the people that we brought back from PPP.
Okay. So she was up <unk> in the fourth quarter or so.
No no into other than you know just.
You know paying labor charges, you know just its its man hours now and that's been accrued for.
Okay.
And then.
With the latest Frac spread out count down to about 85 public longer 50 off this week when they actually mark down from 485, a year ago. There's a lot spreads us park that inactive for maybe a two quarters, what's the process for them to return to work turned the consumable business, that's often <unk> opportune.
Any per rig.
Oh yeah.
Yeah, it's it's all over the map Simon I think you're gonna see well read a lot of stories about people coming up the older Frac spreads and only maintaining a the ones that are relatively newer so my hope, which is which didn't necessarily happen.
Four years ago, five years ago, now, where they were not stored in the the best manners that.
People have the cash available to do the right permit preventative maintenance and putting them away. So.
Yep could we get some some overhaul and maintenance work on the front end. The answer is yes, but it's not I, it's not significant it's all stuff that you can do on the outside you know maybe.
Well, you know changing oil just but I don't see anything where they're breaking apart to do any maintenance ahead of time I wish people would because.
It's just pushes it then to the beginning of a cycle down the road, where everyone wants new units and.
And overhaul work, but I don't have a number I can't begin to predict but I know that a significant amount of what is considered available horsepower will be scrapped.
You know this calendar year.
Mhm.
Okay.
My final question Soc.
Ladies that cataract any opportunity for tax credit coming back to you.
Yeah, we're certainly when reviewing all that Simon and there are opportunities I think you know we're still working through what they are and how they might impact us.
Yeah, there's some interplay between the different programs for instance.
In terms of deferring a payroll withholding taxes.
You can't do that if you're going to request forgiveness of the P.P.P. alone. So you know there there were trying to balance the interplay between the different programs and making sure that.
And even not just the U.S. Cures act and the benefits there, but also there are programs and all of our foreign jurisdictions that where we're pursuing so I feel like where we're spending a lot of time and getting some good assistance from our advisors to make sure. We're taking advantage wherever possible I can't really quantify it.
Sorry, though at this point.
Okay. Okay, great. Thank you that's how I have.
Makes sense. Thank you.
So again, if you'd like to ask a question. Please signal by pressing star one on your telephone keypad.
It appears that the no further questions at this time I'd like to turn it back to the presenters for any additional or closing remarks.
Alright, Thank you Valerie and thank you everyone today for a.
Taking a your valuable time to join US on the call like I said earlier will be sending out notification to have a mid Q4 call late June early July to talk about issues in the markets that we're seeing wont have again won't have any audited financial results to go.
Over.
Just what we're seeing in and then or end markets with our suppliers and in different regions of the world. So thank you very much and we'll look forward to talking too late June early July.
Value I'll turn it back over to you.
Thank you.
This concludes today's call. Thank you for your participation you may now disconnect.
[music].