Q1 2020 Earnings Call

All lines have been placed on mute to prevent any background noise and after the speaker's remarks, there will be a question and answer session. If you'd like to ask a question. During this time simply dressed starting in the number one on your telephone keypad.

If you'd like to withdraw your question. Please.

Please press the pound.

This call may contain forward looking statements, which are subject to disclosure statement contained into various most recent press release issued on May 12, 2020 with respect to its Q1 2020 results.

Thank you Mr. Bourassa you may begin your conference.

Thank you James and I have anybody.

It's a pleasure for me to be a to be with you in.

If eradicate because were right in there.

Many different periods with a carve it so.

Well I've already said side about our Q1.

I think.

We should get caught with more in the last two weeks after March.

But.

Our shares where I know that just said, it's a bit to increase but they're very happy about the EBITDA. So our people are more and more efficiently and what we work since the two years like with the data then.

Or span okay. We see some some result, so I am quite happy about what we see and what I like it. She yeah. It's the people who want to see more and more so that would be very good decades to say yeah. It's why we have our new logo that sees they stay home okay.

Right. So I went back the that I into our CFO Mr. mouse model better.

I would only humorous though yes, thank you Michelle and good morning, everyone.

The corporation generated revenue of 88.4 million up zero point, Ninemillion or a 1.1 per cent compared to the same period in 2019.

Driven by business acquisition related revenue organically revenue contracted mainly due to the anticipated loss of revenue from the corporations patient handling segment as a result of spans exit from the low margin custom product market segment effective Q3 2009 Pete.

Gross profit and gross margin stood at 30.1 million and 34.1%, respectively compared to 27.1 million and at 30.9% for the same period in 2019, the increase in both gross profit and gross margin was attributable to a combination of a better product mix stemming from both the Corp.

Refunds accessibility and patient handling segments and from the continued realization of government that lift integration related cost synergies.

Adjusted EBITDA and adjusted EBITDA margin stood at 12, with 4 million and 14%, respectively compared to 10.5 million and 12% for the same period in 2019.

The increases in adjusted EBITDA in adjusting their margins were mainly due to the same factors as for the improvement in gross profit and gross margin.

Now moving onto our operating seconds.

Revenue from the accessibility segment stood at 62.6 million of 1.7 million or 2.8% compared to same period in 2018 due mainly to the acquisition of Fort Lewis made in Q1 of 2019.

Organic wheat revenue remained flat, mainly as a result of lower than anticipated revenue generation in the latter weeks of Q1 Twentytwenty repercussion of the global corporate 19 endemic.

Adjusted EBITDA and it just seemed the margin most people would head office cost stood at 10.4 million and 16.5%, respectively compared to 8.2 million in 13.4% for the same period in 2019 the improvements in both metrics were due in large part to continue anticipated given to lift related synergies.

Revenue from the patient having segment stood at 21 million stable when compared to the same period in 2018, Silverleaf acquisition related growth offset the anticipated revenue contraction attributable corporations decision to exit from spans low margin custom product record second effective.

You Threeq 2019.

Adjusted for the exact exit of custom products organic growth in revenue would have been 3.9% for the second.

Adjusted EBITDA and adjusted EBITDA margin, both before head office costs stood at 2.5 million and 11.9%, respectively compared to 2.2 million and 10.7% for unsecured in 2019.

The improvement in both metrics were due to a better revenue product mix from spam increased patient with unit sales and contribution from our civilly acquisitions made in the second half of 2000 lately.

Revenue generated from the adapters vehicle segment was 4.8 million a decrease of 0.8 million or 14.2% when compared to the same period in 2019, adjusted EBITDA and adjusted the margin boats before head office costs were negligible compared to zero point, Threemillion and 5.2% in Q1 2000.

I mean team.

The decrease in revenue and adjusted EBITDA, when comparing Q1 2022 coupons between 18 was due in part because the shutdown of the corporations Qubec based manufacturing plant in the latter part of the quarter.

Again, there the progression of the global corporate 19 endemic.

Hi extension, the lower revenue generated by the segment impact that its core fixed cost absorption rate.

Resulting in a negative adjusted EBITDA margin before head office costs.

Although it will be difficult to predict the economic fallout from the worldwide called the 19th endemic the corporation remain steadfast in what it can control, notably protecting its employees and serving its customers during this difficult.

[noise] the pandemic has negatively impacted residential sales and installation within our excess body segment and good afternoon vehicle segment as a whole.

However service and maintenance revenue within the accessibility, saying and medical equipment sales within the basin, having segment have expended.

From a production perspective, the corporation has not experienced any major disruptions as it and its meet suppliers are considered essential in most geographies where they operate.

Providing a full year outlook in the midst of the current called at Lincoln pandemic remain challenging however, given the corporations financial liquidity and strong balance sheet.

We believe our post pandemic future bidwell outdoor product offering is aligned with demographics.

This completes my prepared remarks reporter resell back to you.

Great and it's very much Melrose, so you'll see that and we are in a very interesting industry why do we talk about staying home. Okay. So I am the hetronic very good people around me very knowledgeable people. So you can go direct 34 and Sebastian Okay. If.

You want to speak about the 'cause it about that will operation about that were 10 factory a worldwide.

How are after that the P., if you want something on the finance, okay speak directly to Mount Okay, and if we want you lunch speaking about the span okay.

Or general tease you you can speak to add did it creature Nicola and if you want to speak about the vision of the company.

You can speak with me, Okay, and it will be a please refer to answer okay. What what's you ask so a thatll protocol and thank you had much everybody else could take your time, okay to listen to our conference. I. Appreciate you had you know something you are very important isn't lucky in the future of 7 million because a big.

Well read you so I am very happy I'm very proud that we have the.

Good day.

Yes, a number of and that is why on the call. This morning, and again, thanks, Okay to be interested in a 70 or so let's go protocol.

James.

And at this time I'd like to remind everyone in order to ask a question. Please press star followed by the number one on your telephone keypad.

Oh pause for a moment, while we compile the Q and a roster.

And our first question comes from the line of Frederic Trombley from dish or day go ahead. Please your line is open.

Thanks, Good morning.

Maybe question first Sebastian I'm, just in terms of the to put them through the various facility can you help us understand sort of the level of activity that we're seeing now a in recent weeks I've No main plan.

Thanks, Fred So basically where we said we have been very lucky since the beginning of the pandemic.

Our main factory as always remain open to you tell you we have shut down a key for approximately one month due to the severity of did a the virus over there now we got back in production in May.

And we do see so therefore do that for the effect to read. This is looking positive force will put a direct market can you tell me I'd be bought on a treaty to some customer I told to take some more new orders would that still has it been slow Montreal. Their car factory is back in operation. This is the month of me and for sure like in a different location that nowhere and we have tended.

In fact, we maybe in some of litigation, we are missing 5% to 10% of our employee which are outside.

Solution or did you decided not to come to work, but that she said or to whats till the this is good and it would make sure that if we have an order we can process. It because later I want to make sure. We still have a good capacity to produce more after their depend to make when everybody's back.

To work at that one other person so far we have been very lucky and a very cautious not lose on throughput in our factory.

Thank you in Q1, including a couple of weeks of coated.

Just a nickel was a full month mustard can you give us your general observations on I also very outperform the so far in April.

Hi, Andrew 17, again ASCII we are.

Sure. So she can see we're lucky for sure we're lucky, but we should that got good industry, Okay industry, India of the future 18 years that they went public Turkey and growing growing will make a couple enough acquisition, whereas Nick Setyan Vicki.

The balance sheet, Okay. That's I don't know us to predict how would you be dance, okay, and they even to look at that some acquisition. Okay. If if we have the right because you shouldn't.

You do so what I see Okay April okays like a copy of flash here, Okay. That's very very strong monarchy.

And I am very happy, but these even if that were very optimistic okay. Our I am very it's feasting cookie and so we we have to be cautious because that's something we never done Hershey and its well lightning.

And right now we have the operation worldwide.

So.

But this is so so far okay. Our main people. Okay are very proactive oaky AD spend ginnies data we have been so can you say again I've into okay, and we have some good people in the in Montreal and Toronto.

So and thanks to them.

But the phrase it it could be I see that a week I am very happy what they see right now and I am very happy that people want to stay home with somebody else.

Thank you for today.

Thank you.

And your next question.

Comes from the line of Zachary ever shared with National Bank Financial go ahead. Please your line is open.

Thank you good morning, everyone.

Hi.

Have you seen a pickup in demand for residential elevators that corresponds to measure stayed home measures being realized gradually.

After lunch speak too.

Yeah, that's becoming too yes. Please okay. Okay. Okay. It's a better trends that that's okay. So you see that whereas I too and you contract that we we have the and I know, it's OK Monday.

And I am very happy about that because.

Yeah, Maine.

Bills are lucky right now okay. The tendency is a two well then innovator right at the beginning okay. If I I see okay. I went prediction that seem to be chosen in Toronto.

We we were just okay going at this same raise enough last year, okay, even okay with the the theaters, so I see that a web.

Some project activity of our group booking we always see.

Good things and 2020 and for sure better things even in a 2021, so yes okay.

May be okay, we'll see the number of that.

Permit so can you can go down to exhibit but.

We havent you products, Okay that was installed to my home last week, it likely kind of what many of you don't right. Now. This one okay go right in the center of the of the step and is exceptional products.

And if it is gen solution. So I had almost 20 years, okay, and we have on three level and with this new you'll do that.

We design et cetera area and that's what was the first installation.

You know resistance.

And it's incredible first of all the statistic is fantastic.

But what is the most importantly jets, we told you little why cookie how about the pit is just stage five inches appeal and after that the K. you attach that Turkey to each.

Each Randall gap that different level. So just project is easy to install and you get.

Next is if it did four to treat evil right away. So would you products and what is good when you talk about problem. Okay to you want to stay home. Okay. I used not just in July two or in Canada, but in this state in Europe everywhere. Okay. We have just kind of project and the problem.

So what is good if somebody I think and I know that's we have good this line of project of the industry.

Thank you Fred.

Extra color on that.

Yes, tricky in terms of your split for residential elevators.

Historically and not looking at the new view lift products.

How much has been new home builds and how much has been renovation and remodeling.

Well I wouldn't see when you when you look for residential unlucky integrator, Okay. I go at 90% its you'll be him.

Why because you need you need to basically and fun and it takes like if I see by CTP and were in Dallas. Okay. That's already built okay. Even me okay, okay, whereas my feet to feed maybe ask when it's always data, but we're going to I don't know into bedroom or entered the what will go into battle.

That's that's easy to put the shaft from underground pizza that third level, but with this fuel if okay. That's that's at current project in the future for somebody else.

I see okay.

I see that that we're going to our residential elevators JAPIC will continue to grow and we'll continue to growth even with the this or that it was a penny me with that we have with the covered the Nike.

Perfect understood.

And you'd mentioned previously that you were looking at potential acquisitions in the late summer do you still think that timeline holds up.

Maybe okay.

That's why it's good to speak about that's at the beginning of the year, Okay, but right now.

Yes, we are very cautious agree its our cash flow and we want to see okay with the company. That's why I'm looking to be interested to see what do you were doing just say this period you know that's a challenge okay and the winner Okay. What was she that's what they will do in Q2 in Q3.

So I would put that into the data on though.

That makes a lot offense and just one last one for me.

Any long term plans to turn around the adapted vehicles.

Oh, that's a good UN.

So it's not an easy and project right now.

And you know that for US would then go out for kids will be Poland, which had them go out to get in the.

I would tell you it's a it's a challenge but this sector is still down okay. So often you read the floor again will then go.

Worst ended it was so but if we think about the setting just division we don't sell something okay. When it is kind of thing.

Salazar EBITDA that they make right now.

For sure if you will always in contact with gate with some people in this state that we can.

Well to sell some of what products.

But the that's would be a challenge of people are out for this year.

And we'll see what happened, but it's not the for sure just division occasion challenge for us, but there's no way that is the right timing to to make something about that.

Gotcha and actually just one more for Morrow.

The increase in gear and.

Margin.

Well, we we didn't give it out but it is a harder than last year last year was 7.3.

This year was a let's say it was between in line.

With that.

We're trying to be on right now it's been over here and Uh huh. So we've gotten to a lot of the synergies in so I think for now comparing the whole company.

As a whole makes sense because we've had.

And you still see the increasing the overall margins.

Yes, a piece of it does come from government Southeast also comes from legacy scenario.

It's a couple reasonable, but you still see some some synergies coming in there.

Okay. Thank you very much for taking my questions I'll leave it there.

All right.

And again as a reminder, if you'd like to ask a question. Please press star followed by the number one on your telephone keypad. Our next question comes from line of Nick Augustine or what's the wrench in Bank go ahead. Please your line is open.

Thank you good morning, everybody.

I guess first question.

Dennis do that.

<unk>.

And just listening to it and here.

Typically as it.

Sounds like you're struggling in North America itself, just wondered maybe or so.

Can you maybe call. It is what you guys see specifically north American market and eager to gauge scared.

Market.

Oh, you know that said and you do very well, okay. I'm scared. So why do we see that has resulted okay.

Yeah, but especially okay. This is a very good cockpits tariff anybody who they are very nice products and they want to be more aggressive okay on that penetration of Oh.

In North America.

And even the I don't know why but the change okay. There to see you that he recently.

But the I'm doing quite quite well kill related okay to this day I live and.

I understand if they have a very nice president the are very strong.

But okay. They have to politics, okay, our did a bit three projects with the seating is sitting here.

But I see okay, well complete line.

So often that distributors or the deals if you want to make.

Business with will want supplier and we had death company. Okay. If you have to make business, okay with just one supplier.

So well we will we still there looking after many years fit into that opportunity that the that we have okay.

And as you mentioned a key I didn't mention in do you see that Sunday statement.

That.

That's a that's a challenge for US okay, because I'm very happy that they are going well, okay 40 industry, maybe I would ask aggrastat and add that to.

Well that's about to schedule a complete my answer you color.

Yes, Thank you must know.

Speak briefly about no our own performance within the dealing with segment, it's difficult to really compare.

So we handed here in terms of stealing market share or not.

Their performances, but but from our perspective.

We had our strongest quarter to date in Q1 in terms of ceiling of sales, we reached nearly $2 million in sales in the quarter and we've been promoting the portable lifts and the gantry systems to be used in some of these temporary cobot facilities and so we're seeing how that plays out over the next several weeks months.

We're also pushing it was part of our staying home. It's a very a campaign that Marcel mentioned earlier. That's also an area of focus for us as it relates the lifts so trying to put more lift into the home care market.

Finally, we're also seeing quite a bit of momentum in live sales through our recent acquisition in the UK through Silverlink.

So that's also a period quite nicely with their sling distribution, we're seeing some some uptick there as it relates to live sales into a book UK and their distribution channels in Europe. So I would say, it's it's quite positive from us I can't really speak too much in terms of what the compact competition is doing but from severest perspective.

We're encouraged and we hope it will continue to address the here.

Great. Thank you.

Nick while you're on the line.

I think lot.

That's true.

Actually Mark did that have deep on but you guys felt yet that division margin.

That's a.

Great.

Absolutely.

You start.

Well that are you still got it correctly are you guys still comfortable with that.

Right.

Yes, I mean, if you think about all of last year. When you look at it on the year basis, because there's some seasonality that happens from quarter to quarter, but.

For the full year last year, we achieved a 14% EBITDA margin within the patient handling segment.

And our expectations are to improve upon that this year, we had mentioned getting up to 15% was the goal. So if you look at the first quarter, we're up just over 1% I believe versus the margin of last year. So we're at 12% I think last year were about two and half didn't have to live in person. So we're seeing incremental improvement in the first quarter and I think that you'll see throughout the rest.

The year, we should also see some improvements there and the margin at a again, both expand made GOG silver lease or our division that whole.

So yes, I think we're still confident that we can make an improvement over the 14% of last year.

Great and then my last question.

We stop stuff on effort.

Are you able they backed it up.

Okay.

And.

I think we are looking into that like we said there was a there was a couple of clients that were shut down during the quarter one in Europe and the one in the.

For the enough that vehicles. So we are looking into into that.

We've also kept a lot of people online.

So we're looking into that the programs are not as a as simple as a.

They seem to be there's a lot of different criteria that you can apply to it. So we do see us being able to use some of it.

We're not talking.

Game changer here, we're talking about reasonable amounts and we'll have we'll probably have an update them that probably towards the end of Q2.

And we'll see if if need be to mention dream or next call, but like I said, we're not talking here.

Millions and millions and millions of dollars here we're talking.

Within reason, but what do you can expect to get because overall as you saw Q1.

Our performance was actually not not unhappy about compared to last year and we'll see how Q2 goes on with the progression of via the company's 19 situation.

<unk>.

Our next question comes on the line of Amar Shah with a capital go ahead. Please your line is open.

Hey, good morning, guys. Thanks for taking my questions and Oh, if everybody is that they said.

So.

With.

What's the impact recorded 19 global.

Got you know, there's definitely different timelines, depending on geography, I'm wondering are there certain markets that you can touch to even if the smaller markets that you know are showing some signs of a recovery into may odd that might be a return for somebody other market stuff I don't know if this one.

For years myself or not but.

Any color there to good.

Okay I will begin in maybe a few Sebastian with would add some comments after that tricky just to give you a key why we I write down okay. At this data in me okay.

So, especially one back okay, well, we spent about the European because they talk to them to them every day, but yeah I would just one to two to mention appeared and what the what is very important lucky that we have as a right now.

Our off is there a coffee so pay our footprint.

And we added 75% of our.

Our.

Our dealers in the states okay.

Oh are open.

If we see Akiko like California, that's a good markets for us okay.

Our open East coast, Okay about Oh, the East coast. Okay. We are open for sure in New York Cookie long Guy doing okay, that's a challenge but.

When you have 75 a fewer.

Dealers will bid and 100 person of our junior XL Okay.

And just give you a Kid example, okay. We we have that were sort of doing this.

In the in a 30 day, okay that they are going just a great job and we have the same acai at the end Ameriana. Okay. We have with the Premier League.

So it's why I see that okay that is.

Very interesting okay. In this industry, that's where right now that's where all this.

We have very busy in North America and hiking, okay. That's a that's a vision what would be to the next core to our two or 2021, but I don't presidents myself. Okay. That's something we'll never seen our life, but we have right now just that evening. So so that she can you add up he added a bit too to answer that.

Okay, Yeah for me in Europe.

So basically it was so unfortunately, we've been lucky enough to learn from the west to East accused so really if we started which I know we had a good or first quarter financially in China, but for sure February was stuff I wasn't missing a lots of staff, but from March is back to normal I have all my employee the variable to travel to goes to the supplier cost do some customer.

In Australia, we are old brenneke, a as normal Italy. It was a tough March bhatnagar a in the beginning of April and audio playback work for the manufacturing direct sales in Italy used to less difficult makeup with minimal customer Swiss Germany for lung in check.

As a bit or maybe than usual, but still we are that put operational mode and we are up to North America will talk about the car factory. This was shut down for almost a month audio back into operation North America, Kosmos S C and 5% <unk> dealer, Oh professional but what's important to understand it doesn't mean that though do you already which is not making us.

In addition is not sending order to their factory because maybe is planning is reopening of is every year. So if you do you want to be successful you need to make sure you have so many rents are ready to go to install so I was just we'll probably have been lucky always learn from a or west location to come to the east and just try to improve every month with some new measured in place to keep our employee.

Safety.

Okay very good color.

Now.

Turning to.

A patient handling I got to fund probably for next.

On your ambient.

Excluding cuts are custom products on the organic growth print I think was just under 4%.

I'm just wondering if you can kinda and even directionally talk to how that said into Q2 and onwards, particularly given.

The potential Phil and I know you've got to talks about the bench ideas about.

You know just some other ways that there could still beat them. Some good demand not in that segment stuff.

Yeah any color there would be good.

Okay anymore.

So yes, the 3.94% we achieved in organic growth in Q1, that's kind of inline with our expectations for.

And for that Division and you've always said kind of in that mid single digits is what we expect terms organic growth there wasn't much of an impact of covered in the quarter. Maybe the last couple of weeks of March but for the most part its really into April in the first part of me that we're seeing an impact.

From from Carbonite team.

So what we have seen we've kind of hinted on this on our last call together after Q4.

We have seen an increase in demand for beds.

That's been pretty steady.

Again, maybe the last little bit of April or a little bit of Mark.

And very strong in April we're seeing that continue into may.

You know if we're lucky you might go into the first part of June So I would say on the bid side things have been very very strong.

We did create capacity, there and and beams Seville by by upwards of 50% there in April so so again, taking some measures to meet this kind of urgent demand.

On the Metro side I would say is that you know at first we did see quite a bit of an uptick in because uptick in mattress sales, which corresponded to what we saw it with the bed, but you have to realize that a lot of these it's kind of surgeon demand is for the temporary covert facilities. So they're really looking for no mattresses on a very temporary basis actually.

They will be able to dispose of relatively quickly afterward, so now what I would call high in mattresses, so there as well.

You know the mattress sales haven't I mean, it's not kind of a one for one ratio out there with the bed as it relates to discuss increase in sales due to covert.

But again, we're seeing some good demand overall within that segment <unk>.

The early to tell how it's going to play out throughout the rest of year, we're not even halfway through Q2, but but so far you know through April it's been good and again, it's primarily driven by beds in an otherwise the lift you know I mentioned that are there on the other question lifts they've also been quite nicely.

And that should continue we expected to continue into Q2.

Great. Thanks. Thanks.

I guess a final one probably for tomorrow.

Are there any or they synergies left.

They'll be extracted from the or that.

No.

I don't mean call it and then.

Quarter to given everything has gone called the I just mean more.

Longer term.

And there's still a lot that's left there a little better.

You see that operational efficiency or you know rolling out call. It a you know.

Post call that.

Well I mean listen we do have some that we still see seventh floor.

No as to what extent that as you mentioned, you're the because it might peanuts, and I'm going to kind of little cringe into it.

Yes, we were supposed to be a little bit of an uptick coming from from government for no grew for the rest of the year I'm not sure Sebastian maybe you can talk a bit more as far as the the costing size.

But.

There should be a little bit more.

So basically okay. If we look okay. We've got at last your core business I'm, sorry, we always see it wasn't 20% plus it but the business and were finished guy, but 10% last year. So I think where I just had their beginning and does the first right. Nick first quarter. Two was a contribution will go from 13.4 to 16.5, you haven't though as his contributions that.

What are from not what we have trouble is four points.

Efficiency in the factory and utility and their Vancouver.

Typically we don't sit that they're very high backlog got some of our we have to make sure. We have a good true what that's number one number two and when we bought got haven't done not start west profitable, we have a lot of starting to state and new up so were working that each store is profitable every month.

Purchasing which I know it yes, we are purchasing in China, where just at the beginning and last thing is our product mix in Europe. We have two for one to be successful we have to manufacture. This is whatsoever on the Ous has been though is doing in the past.

And this year, we're doing a lot of effort on the beautiful under many of whom we said good potential future new up.

Last year, we have talked too much or own stores can you tell me. So I take your by improving all those fourth Q segment. There's no. Good reason why we should not be able to continue each year to bring to get haven't to up to increase the overall their margins.

<unk>.

Thank you for that because that color Sebastian and thanks, guys I'll turn it back.

And again at this time I'd like to remind everyone. If you'd like to ask a question. Please press star one on your telephone keypad.

And your next question comes from line of Michael Do Me with Scotiabank Go ahead. Please your line is open.

Hey, good morning, guys.

This quarter.

I wanted to circle back on the elevators I'm trying to square the comments about flat sales in April.

And the lower housing starts I guess that we're expecting too.

So is that I mean, the company for filling previously received orders.

Or is there a huge elements your market share growth and how do you look how should we think about orders.

For the rest of Q2 and do you think you can say maybe level that much the question as.

I'm asking it because consensus is looking for negative 17%.

Yes.

Sure.

What was presumed season, most disadvantage for the business. Thank you called it feels like it's actually.

Hey, I think that's one okay, yeah, but I just wanted to try to mention okay.

For sure Okay that or what is very important in a company, okay or at least my vision of this company is that booking booking and booking.

And so far.

If I just go back last week, Okay, as a general back again to say.

Yesterday Monday, we see some orders a pea.

More orders come in.

And what and getting a cat focus that we have.

Hi, King Cookie with manufacture as much of the return Lucky in a 2020 in Q2 in Q3 before that we have done last year.

Ross, we add that you eliminate the key that we have the viewed it.

And the smaller the small unit the Kid that's is it is roughly.

39 inches and should disappear.

I have major okay, because that's a.

That's a round one.

So I I see that and I am very very optimistic cookie how about the key what we see a key on architect Cookie would make we've been our okay to our kids and cookie.

And that was a good strategy in Q Anarchy, and we do continue to do that Okay education of our de there was about that were residential they knew each other is okay and then you.

You live so I want people looking we don't go we will learn we learn how to listen to our shelf, okay and before okay. The with excelled that's was going to PTC that Ito is a key and go again on the strip, Okay, and then take a follow up four or five days a month ago just to travel.

And when you travel located lefties diet the times up he got president maybe a 50% okay. Because you travel okay and you don't that to travel when you have the well they are a key or we have the will team.

So we and many.

Many happy that we push showcase this idea to reach out would either more often with the.

Some the some the internet the key that who can reach them. Okay show our products discuss with them again, what we can help the people and it's why I think we are better right now than we were before.

And the people appreciate though we do appreciate that yes, we have in every week it but right now can we add completely.

New products that we can offer okay to more people key that you don't have the speech within the leaders now we have some space a T that the we have and will we put a view and if so I see grating, okay coming up here.

What is the Greek DCP is it didn't a Q2 Q3 two for next year. So we don't know how about this spending me, but even during this period, we are at Mississippi that who can.

As most once we have done last year, okay, but we'll see it is the future but for sure if we.

Look that up.

Couple of years.

Yeah.

What projects, Okay are exactly what we need to feed the people need to stay on.

And what's not in front US 10, Okay is there all my favorite started it maybe the also to customer. It takes six to 12 months of gets it to bid and the Guy that that started is also kept the beginning of the your west hobbies project West type after two months and he has already planning designed to put in that I read served as soon as these markets real print is going to faces order for as any read through anywhere.

You put it in the he wouldn't finishes project and the Guy that do not start to build the exhaust maybe we'll call back is architect say I don't want my parents to stay anymore in the long term care I would find this was trying to bring demo, but that's why we're very positive about those residential that they went through and we have done a lot of marketing efforts in the last year, which are viewed if yeah, we've tried to customer preference.

You did but maybe it end up with the traditional sectors over what Kabili winter. So I think we have the best mix and a lot of options. So that's why where we have a good traction in this excess of just segment, which on lift.

Okay, great those those are great comment.

Sort of does help gaskins sense of where the numbers to land in the next.

Couple of quarters, I mean, I wanted to I guess, it's a good segue into.

The campaign first David Hollaway scenario.

Obviously got a lot of relevance as addresses the needs in the current environment.

Maybe I just want to address what's your take on the longer term applications problem.

Yeah.

The accessibility business, particularly as it relates to seniors maybe.

What's considered very a do better address that.

I guess the future.

Okay, Yeah, maybe asking you have a good C O the future Nicola.

And your Crystal ball.

Well my Crystal ball is pretty cloudy, but I can give you the I can give it a shot I would say, yes, the trend of people wanting to stay at home.

I think that will continue and if anything it's gonna be more reinforced by the current environment.

So so what does that mean I mean, it could be.

We talked a lot about register elevators, but there's also other products that we offer that could fit into those there's need so even if you're not looking to build a new home you can retrofit your home you could put in a porch lift for example, so those are products that we offer you could put in a stair lift we haven't talked much about that but that's also a product that we're looking to promote.

As it relates to retrofitting the home to keep you in it longer you have the various lift products, so kind of promoting guar our home lift.

Alex I guess the portable.

Ceiling lift in the gantry systems. So I think if we look of our product mix. It's not just resins elevators, what we're really trying to push the entire portfolio of products that we offer that suit you know this trend.

But our house and that's I guess at the beginning of the call Marcellus mentioned that one of the big advantages of severe you use that we do have the full suite of of accessibility products and so our stay at home with severe campaign, it's really pushing all of those elements because not everybody might be building, a new home or be have the means to put in a view that but maybe the.

There are those can be for them or maybe a porch lift. So I think it's we're pushing the entire categories the whole.

And so longer term I don't know exactly what it means in terms of our sales into 1234 years down the road, but there is this baby boomer population that the oldest baby boomers those born and acting 45, or 75 years old now and and so we have a big kind of a wave that's coming in front of us of these baby boomers that we would like.

We look to stay at home.

If possible as opposed to going into some sort of.

Skilled nursing facility or long term care facility.

Yeah. Thank you Nick just I guess just to add the key I used to deny them into you with the <unk>.

Quebec newspaper that put us okay, and he asked me a roughly the same question, okay, and I see watching what what you see okay and the future for this access and B D. What kind of go and I make sure I mentioned that is accessibility division of sub area.

It is just so Keith would make the job again, we'll make that Jackie that I see a over 10% of goes back okay, and just the exclusivity I, just see like yesterday that 10% or more okay I.

I don't know if it would be in a in a 2020 in the Q4 Q3, okay well early next year, but it will be there because the people want to have an exclusivity on.

Thank you straight thanks, guys.

Thanks for the questions. They appreciate it.

And your next question comes on line of Justin Keyword with Steve Stifel. G.M.P. Go ahead. Please your line is open.

Good morning, and thanks for taking my call I'm wondering if there's been any changes in your view on the supply chain and if you feel comfortable with the current inventory levels.

Sebastian.

And as you can see no financial inventory has always had never been any sweat survivor Yucky. We carried at the right level. That's why we went to crude to first quarter, we're talking to supply issue from or I mean factory in China, because we had the right level in China right level here and as soon as we started beginning with the and they make we ship audit finished goods from China.

To ensure would have no disruption in our supply chain so for sure like not with a.

Tighter economy that might be an opportunity for us to renegotiate some of the pricing. So we assume the long term what can be achieved but that fees. We don't see any price increase on or on our supply chain and maybe just some portion to to work on.

Stuff cost saving the long term you for volume I continue to be there.

Okay. Thank you that's helpful and another question on the a 3 million dollar in contracts that were announced earlier this week or these new customers and is there an opportunity to expand those contracts either for the current projects or new project start coming online.

Yes for sure. Okay. That's all new question, I'd, and but that said the dealers that is our dealers in the Premier League, Okay and into I think Thats how were okay generic I did a coffee as these are the contract but.

Now I will begin okay to release.

Added two should the people in okay. If we have contractual were 1 million. Okay. I wanted to begin to to put that on a on a press release, Okay and you will see that it will kind of mckee around the this than yours, just say because they have better bigger project that we have often in Canada. So.

Yes, Okay. That's views a generic customary okay and that's very good okay. When the people see that the all four other builders order I can think of PC, hey didn't put any makers in each of the that contract cookie that open eyes are key to customer.

Our even architect all builders Lucky and Thats, what Weve question was just one thing more orders.

Okay. Thank you I appreciate that thanks for taking my questions.

And thank you to add photos have area.

And there are no further questions in queue at this time I'd like to turn the call back over to our presenters.

Okay back Tomorrow sat okay first of all okay. Thank you.

My idea and that is Turkey, I had to be on the line.

I appreciate all other people although maybe.

So I appreciate the time that you pass on somebody else and be sure. Okay. When taking that to work for genome. There isn't 50 people working for so you're right now and right now Qaeda Fortune 100, okay.

Hiking IP guy, Okay, we give them okay attitude bonus okay. During this period the key I would make a check up 1000, okay to each employee oaky and was maintained at 1000 Lucky was fully in Canadian dollars, Okay, and even the guy in China. Okay.

I didn't really RMBS investors west Marine once we're done like 7000 6000.

Approximately a 5500.

Yes, so and that's a big would there be so.

But the you know something we have to assist and thinks our employee but if we yeah are known this well lucky. It's because of you gave with your research make on Saturday up and you bring some the good news. So again, thank you very much and thank you for making.

James Thank you for your work.

Thank you and this does conclude todays conference call you may now disconnect.

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