Q1 2020 Earnings Call
[music].
The goal Securities first quarter 2020 on these phone calls I.
Sorry.
No.
Good question answer session will follow the formal presentation.
When you watch required.
That's right bars, and the telephone keypad.
Especially to introduce your host Mr., Brett last night.
Thank you Sir you may begin.
You operator.
Well go to the conference call. Thank Mccall's management team for hosting this call with us on the call today.
Mr Drawer, Sharon CEO of Mccall, Mr. Cope we've been occur CFO.
Drawer will summarize key financial and business highlights followed by Cobi or vehicles financial results for the first quarter. We'll then open the call to questions and answers before we started like to point out. This conference call may contain projections or other forward looking statements regarding future events or future performance of the company. These statements are only predictions as mccall cannot guarantee they.
They will in fact occur like all does not assume any obligation to update that information actual real events results may differ materially from those projected.
Putting as a result of changing market trends reduced demand and the competitive nature of the security systems industry. The anticipated I know what effect of the kroner virus, including on our operations and our clients as well as other risks identified the documents filed by the company with the Securities Exchange Commission. In addition, during the course of the conference call will describe certain non-GAAP financial measures.
But should be considered in addition to and not in lieu of comparable GAAP financial measures. Please note that in our press release, we have reconciled non-GAAP financial measures to the most directly comparable GAAP measures in accordance with Reg G requirements.
You can also refer to our website as Pat Mccullough security Dot com for the most directly comparable financial measures and related reconciliation with that I'd like to now turn the call <unk>. Please go ahead.
Thank you Brett.
Welcome you all.
Talk one of them. Thank you for joining us today I hope that everyone. How many of them. So I didn't say from <unk>.
Well the quote talked once it's when do we reported revenue of $17.4 million one of the using operating expenses by not Santyl do though I think you come up.
On the talk is $7000.
Your video we both net income by almost one meal to pull on the smoking $9000.
Really due to cost me valuation changes in the bottom.
The do it be though or other parts, we told them well and it'd be the marginal 4.1%.
We delivered another quarter wasn't good that's cool.
<unk> point $7 million in cash from operations.
I'm pleased with my team [laughter] proposed merger closed new business, a manageable cost structure.
So what that is typically seasonally weaker quarter due to limited outdoor success in Europe and North America.
Yes, that's what took the also there was also.
Impacted by several meal dog living you come to look like.
It doesn't close what all thinking.
During the quarter when implemented several key initially focusing on that have to holistic once those while also providing all businesses.
You know t. and the good opportunity.
Let me Smigel Dilolo <unk> remained well above.
In recent years, we've been pulled the operational performance of the business increased there's no question, Chris I'd be though lodging keen to get those but all businesses the performance that drives shareholder.
We have made several organization changes include increasing two business to be Dunkin' pulled the business childrens tablet they'd go home new boat that caused the geography.
Oh, Scott the gene pool, mugging and a bit.
Hi, this gross margin business I'm reluctant to the increase in probably the most often.
When among all those have told by Symphony I'll begin management, so well and Oh, one hand last month to this Oh, a bar Bell reform that doesn't increase a good deal cost them up.
Well you were made New addition to.
Another investment call your tunnel.
One of the call me film was is that maintaining operating expenses well below let me end goal, which will unfold for the base he has resolved.
Oh, well for the amending the much like minded 20.8 used to manage all cost and to maintain and you're going to mitigate the while positioning the company wholly covering goal.
Well the other thing as Tony I'm, not sure something and our leadership team and great coconut and all of the new there on how long they almost nothing yet to go live in your new coupons.
As I mentioned there was the other Colby 19 license beginning in gold operation operations in late <unk> generally in a buck in early March and other young.
As a result, then the impact on how the smoking wasn't it.
Nevertheless, the company because she was considerable focus on that.
Neil responding to that never get well never gave the question.
[laughter].
But anticipate lodging in the second well certainly potentially in the second helpful.
That's what they can give enough to make the management operation operating expenses on the preserve profitability for the reminder, meal.
Oh, that's useful Oh, so having your screen diversification from somebody calls and everything we've done.
Oh and using the right now they can pull up called me like game.
No no my opinion.
Given the impact of the pandemic.
Let's be dosing some delays in closing new loves deals and being the best accuse you know some positive due to.
[laughter] you measure.
The diversification have just although these associated with the license it geography that somebody that's we'll present in has had a different.
Ones for me the government.
The valuation from country to country isn't a wide ranging game on the economy in general I didn't know what have been smelting.
Well I just don't because in some countries the suffer the significant slowdown or won't stoppage in other yoga fitness and would there be involved there's less than they've been able to once you know crazy that said we are watching these areas carefully as we have relatively low visibility for the next day if you look.
[laughter] previously we had losses you would.
[laughter], Oh look because no one in God.
It sounds logistics and critical.
During the first quartile there wasn't going to help us both because you have successfully developed one of the second by the Dell Mucking declining oil prices.
Just a man and they took will be 19.
Causing delays they loved ones as.
Well they remain engaged with those customers and hope to see some purchase or.
What's on another market segments, there will be up [laughter] substantial goal or something.
My name cannot down by facility closure.
Well, just stick, particularly in EMEA and Youre going nicely coffield policies on the whole because somebody's focus on meeting the demand on done business with a significant increase in the Midland.
Is it going for subsequent thing is booked like in men. There's always the no is indeed indeed.
Yeah.
Go ahead.
Looking to sell territory nothing in North America, we saw a nice talking to all for the operation in this region during the quarter.
Well that they didn't know deliver deliveries in the U.S., mostly continues to secure once you get the Telesites is she doesn't isn't that essentially.
There's a lot because they let because they'll see bucketed into kind of get that we've always unfortunately in the northern got.
Well, that's okay, well done, which we will see last night vision.
I'm too old.
And we I've seen David.
Many of the publishing like public health actions in March and this was the impact of the twice as many as well as the Ministry of Defense is amazing customer and then and has continued to assess your operations.
Okay, because we came off on locked down many patients I'm able to receive imposed [laughter] that said when some recent wins and decision. The mother integrated solution Division lender than you see what secure them design and installation and your book.
Can you tell me told me. This we are excited to open.
Same says you called out can show suddenly thing is among the companies, where we have not in the impact yeah.
Hey, Brooklyn into a long dong in late generally Oh, that's really a nice level, that's something that they generally can leave us well do.
So we're supposed to say other than the original during Q1.
Lucky in Americas, and other regional <unk> copied like you know sanctions imposed California business.
One of the company's off once the Mexican bank, which is on hold actually I'm not allowed access to the like.
Well just [laughter], we'll come back on line one.
[laughter], but sounds already.
On the call. The Poulenc, that's when can we think we'll think that's funny platform with New York.
Oh R&D spend is the live their lives billing competitive advantage.
When you Bill.
Using electronic shots on goal so not all the three causing that labeling act when thinking oh ought to be seems integrating.
Capabilities as ammonia. So I'll just won't be can management solution Tacoma cutting through at least the cost only because it doesn't Q4 would be steel.
Right.
[laughter].
Good day.
Yeah.
Yourself.
[laughter].
Hello.
Yes, there are you Andrew.
Okay. So involved is a great example of phone continuous innovation is in technology development is safe spaces.
And your support the.
This new be doing anything solution can utilize all symphony Vms dot com or any other we must backbone with minor adjustments. So a nice neighborhood businesses, we opened a widening pending.
Well I'm.
The solution features Mckee section and worked on them, so she'll be something occupancy and had the same station and.
This does come with a low businesses too and people to what is your more.
Consumer and Oh, and social activities with the increased confidence and to reduce response exposure will be like <unk>.
[noise] the M&A targets, you know line of sight linker technology that can leverage all just think about coal.
It depends on brings new technology innovation.
We hope to close at least two in 2020 to support okay, because if people didn't see the pension lump.
The only odcs <unk> well in advance they just to be said about acquisition target. However, you do the ongoing quite says we have experienced delaying and deposit.
Hi, good to know and old due to the due to the fight the slide back before the fallout from the oil and gas like there's an overwhelming.
Oh God forbid that relates it'll probably like <unk>.
I've highlighted now how good questions is affecting all bill <unk> domain 10, cash and preserve profitability, we've established cost cutting measures.
My husband guideline that said <unk> employees.
Well in the concern is essential for the company, but probably for quite some.
Another kind of kind of expenses the.
Okay and all of your wasn't it.
We believe that keeping going [laughter] do you see him onboard provide support call customizable, okay, well pulled up solutions in self mill you know, it's a competitive advantage that enable us to preserve the I mean at the end the midterm and long term slippage you directionally about.
This is also also who feel so the company ability to exit the questions into positional like covering giving you the shifted to the future closing deals that the gold in the pipeline.
Oh, My God is well positioned we told that yes. They like the cash balance you called me down below and know that corresponds to the challenges or opportunities that we are fortunate where.
We live in your claim and the strong balance sheets me no push push us to also be so for that.
I want to think that entire magazine.
The performance into caught them, though as you don't see and [laughter] interface something unique circumstance.
They had to won't come down was.
Supporting customers and going to all pipeline been I'm confident that we felt strong balance sheet, oh backlog of business and skilled team.
We will emerge stronger position, though football.
And now I would like to end the call all over to Colombia sung always essentially the company.
Go ahead.
Thanks.
Revenue for the first quarter Twentytwenty was $17.4 million declined 17%.
Sounds compared with their revenue 20, I'm Mad Dog told me then dogs in the first quarter to south or anything.
The decline in the first quarter revenue was primarily in the <unk>.
ALJ project in Mexico in the first quarter over the last year and partially due to the.
19 on column I got anything, but that's and sent a problem division sales.
I know that's usually that's quota is seasonably weakest quarter.
<unk>.
Breakdown as a percentage of revenue trusts quotes out was this following Israel.
And that's just went to defend Nelson I got 25%, that's that's 22%.
Can I make up 5% versus 21%.
You'll see that vis a vis out.
I think though 20.
6%.
Asia <unk> 12.
That's 11%.
They break out between <unk>.
[laughter] looks revenue was 68.
<unk> and 42% Oh projects.
Mike I integration solution Division revenue declined 24% year over year and send to put a division revenue declined 6% year over yet.
This quarter blended gross margin was 45, the eighth Percentof revenue. This is 42 that does treat the sense last year [noise].
It's gone gross margin increase was primarily driven by high gross profit contribution related to the mix of sent a sensors and talk to a products sold during the quarter.
Oh permitting it yes, Weston have those $8 million and 88% reduction from the prior year first quarter operating expenses eight that's $5 million the reduction in operating expenses is attributable primarily to payroll related.
Actions, such as delays in hiring and reduction indication liability as well as reduction other expenses, such as travel and marketing.
Operating income was $237000 into first quarter of 20 to 20 compared to $471000.
Good day in the year ago period.
Financial income was $470000 compared to the financial expense of $731000 in the first quarter last year.
As an accounting effects.
Good how are we experienced your two adjustments all monetary assets and liabilities denominated in currencies other than the functional currency of the operational entities in the group at the end of pitch feared the change in currency valuation monetary assets and liabilities is recorded as a non cash financial expenses income therefore, we use.
EBITDA and not get metrics to even out desirable impact of foreign exchange fluctuations and other non cash share access and we believe that EBITDA is a better go up the gauge said the company's performance.
Net income attributable to Mcgalley shareholders in the quarter was at $439000 or two cents per share versus a net loss or $553000 up two cents per share in the first quartile did last year.
He'd be dealt with the first quarter was $723000, Mississippi Dells $999000 in the first quarter of last year.
Cash and cash equivalents and short term deposits and restricted cash in deposits as of March 31st set Twentytwenty, west 50, or those $4 million or $2.35 per share.
Our working capital decreased by three adult $18 million at March 31st Twentytwenty in comparison to the end of the last year.
Joe deal did decrease is driven by the trade receivables collection related to high billing level in the Q4 29 team.
We also delivered positive cash flow from Activations of pool.
Don't $7 million for this quarter, which was excellent.
As Joe mentioned in this fluid environment, where we have less visibility than normal business. We had the operational flexibility to maintain our cash I presume profitability for the named Oh the here.
That continues that concludes my remarks, and <unk> questions now operator.
Ladies and gentlemen.
Okay and question answer session.
Next question. Please press star one.
The combination total energy.
Thank you.
Starches, if you'd like to move your question from the Q.
Do you think speaker it may be necessary to pick up they had said before personal starkey.
One moment, please let me pull for questions.
My first question comes from the line of top Shafman.
Good question.
Well good day, everybody good day.
<unk>.
I wanted the S.
Good question one is.
What can we expect from Sun start in the kabi bonds as far as PR.
True.
The public in the different end users out there about the products that seven star has or non governmental.
Namely in the multifamily real estate and other real estate arenas and true can you also shed light on any activity with the United States government regarding electronics portion of the border wall. Thank you.
Okay, So uh huh.
Yeah. Thank you for the question.
And by the first mom.
That's what we saw that today, we did a very a big Logan though.
People.
And then it.
Well below you would and Youre seeing funny feature.
That's me, there's I guess, the talked about the and and end to end the call and ER. Later this year will do more and more that's sounds like this and the good yeah. It would be low a new technology and new offering to the different verticals.
And to open to the monk Oh.
Well what is the all in all of you can see a new Pete I'll just be just long.
Describing these are new well definitely are added to our portfolio will be either one.
Hey can you repeat your second question is.
Yes, I did cause you talked about yeah, yeah, Yeah, Yeah, you talked about the silicon bolder than the U.S. government Oh Wow.
Okay. So we talked about it didn't know a previous call.
You talked in all focus is wasn't it wasn't you know a pipe and for a lucky plenty.
Understood. That's me there at mountain piece of it investment and a is too high and.
There was nothing.
From on the U.S.
The government side I think the college because of the the wall.
Oh, the all selling the agent agencies that are adopting our technology and some but I will say the Boston <unk> and the possible I didn't talk me multiple choice and we see no that then don't participate in it.
Okay, if not the so Oh company as far as we know.
There's no too much investment of technology on the Dalton model.
Hello, Thank you.
Our next question comes from the line up Thurman Willis.
Your question.
Thank you for taking my question so.
Excellent quarter under the circumstances I have two questions.
The first question is where are you seeing opportunities for growth in this environment.
In other words closing business pipeline growth.
And can you specifically stay with your announcement on the safe spaces, Oh video analytics solution, what that might provide in the way of revenue.
And then I've a follow up question.
Okay. So.
How about you were first a question that we see the opportunities and go thing the feasibility goes into that in the short term I assume that.
Logistics or.
Really important one the amount of packages the tightening the on the wall, though a huge below a buying more and more online and are we don't want be closed a few deals with them logistics Ah well why those worldwide.
The end of last year, we closed the.
I put texting to one almost want these types of one of the major when did you stick or provide though are we kind of chemical revealed its name and we have many aldo.
Yeah, and this market is going we told me, though there will be 19 warning and we are focusing over there and training go a sales team and technical support guys.
To put you at least a market.
What the what them.
We are doing when the Cisco side.
From the video a management.
Told us we have is the lucky just described it they spaces, meaning are you see those gonna put you in acute support.
Different or industries with different verticals.
Adding them this capability unique everybody to the to the Vms indirect Oh Vms away a wonderful, but those are vms. It can be in Ed onto these are two of those it'd be a message and.
That's a pool.
And those organization too.
Get back to ER business.
And then we'll see Philly.
Those all the things that feel focusing currently in the near and Showtime.
And you didn't speak so you didn't speak to the a new Oh announcement that you did today relative so as to what revenue that might be able to provide.
To give us a little girl opinion.
It's basically if you know we just launched it today, a with a very big and what do we know we did as I mentioned.
Yeah, it's a.
Yeah, Matt lost a unique analytics to develop especially for the coffee their 19 by day. So in R&D team. They did have seen it really an amazing Showtime and very nice and and then well are well below the platform.
How much money is when the generated I think still interesting only after after a week or so we'll do people without the download. This the feature Cuomo a web site and are well see some production then we'll be able to.
A measure but there are what is the future business and come out of me.
But the was there was a huge at both on the and Alan do you mean, and Canada and are well pretty much if it would appreciate the way they did it in such a thing.
Thank you my second question is.
Your stock.
It's trading like at a 290 and and wanted your thoughts on the company repurchase program.
And well catch is important.
What is the stock failed to $2.40 basically cash in the company.
To me the best use of cash would be buying stock with less than $6 billion of your $55 million you could repurchased 10% of the outstanding shares and I think this would show the investors facing the company and be the best use.
Josh.
Where do you stand on a repurchase program.
With the stock trading at such a low levels.
[noise] that them and so at this is cobiz.
<unk> <unk>.
<unk> and operationally and <unk>.
<unk>.
Yeah.
<unk>.
<unk>, which would do right now where in a this terrible period and Oh technological offering. So the company is is not just a in the business. It's.
It's a executing the <unk> turn my strategy so.
And the balloon is a in did problematic.
The cash the still quit bushes program is something that we we discuss internally. We also have this subject raised on we understand why <unk>, we sent to investors calls.
We it's one of the things, which will be looking at the <unk> you know definitely one of the things that.
Could be done however.
The current stage.
We do everything too.
<unk>, our mid tech and long term goals, which includes <unk>, yeah, and they transactions and <unk> relatively significant.
Volumes did should.
To boost the business or you know <unk>, we invest in technology, and Oh got any growth as well and it added this to the high uncertainty that's <unk> in that they.
Industry, Yeah, Okay, I mean my <unk>.
This is not at the moment this is not the leading auction to.
You know this is something that's.
Is is on the table.
And we we do it.
Oh, Thank you for that and if you would get I'd like for you to come back to me in the I'll get back in the key but I'd like for you to come back to him because I have a couple of follow up questions, but your answer to that I. Thank you very much but all the more reason to repurchaser stock up in my opinion.
Thank you.
Thank you then.
Oh yeah.
Oh.
Ones that.
Question from from them on a family.
Yup.
Management.
No question.
Good morning grower good morning, Colby, although it see afternoon in Israel, Oh, I hope everybody is doing well mcgols seems to be holding its own now as far is the backlog I has the backlog decrease from the previous.
Quarter, and what do we see as far as improving the backlog.
Hmm.
So specifically this.
We saw some <unk> <unk> $2 million.
I mean and the overall.
Even after <unk> continues to be a strong but in its high levels comparing to.
Previous years.
We do we did start seen by the end of the quarter.
Some delays and things in order bookings as a result, so Ah Ah Kobe 19 crisis.
And this is something that's so basically.
Caused.
Lower than than that or the booking in comparison to deliver any level.
Okay, well good good luck in improving backlog as you you mentioned you were talking about closing going to acquisitions. During the current in here could you sort of give a range in the sales of these acquisitions.
I mean are you getting a better deal based on the economy et cetera.
Fortunately you have a substantial cash so could you talk about the acquisitions and when do you expect to make them into size.
Yeah, Yeah size wise.
Oh yeah.
Oh, Okay called me a few <unk> size wise, we are talking about between the 10th of one coming on below the revenue.
We have a few of those on on the infant <unk>, but the the current situation.
Isn't isn't holding holding back people are we thinking and we want to we evaluate the the evaluation of those companies.
So it's a it's when think I think yeah first we have to be we need to be able to fly and meet them discuss face to face the the those companies again and the sick and and we love to we evaluated the version of the companies because thing they'll changing.
Some of them willing because it's.
He said it looks a bit so we want to see watches <unk>.
<unk> focus that they can provide enough and what the showing as they can give us some of these focus and.
Of course, what is the respond also.
So this was the <unk> this is still the plan.
Do quite a fish too.
Due to store positions in this range, but we'll have to wait and see how things are moving in in the world in the in the different different because it's we on exploring.
Was that that makes sense scope drawer. So each one is 10 to 20 million. They have they indicated on their finances <unk> their finances slipped or how I mean.
That they could submit to you.
Mmm without seeing them.
No no they're fine on so those companies.
No go ahead.
[laughter].
Yeah, you know, what we're talking too right.
Entity about privately a private company so.
Of course, there is some delay in a in the availability of financial information.
Nah, we Ah constant constant contact with them.
As well as without without a.
The only thing you'd targets in the pipeline <unk> I have just to add to toward choice says that's you know so far we.
Two three months within the crisis, we still didn't.
In the dynamic in the emanate dynamic so far we still didn't seem.
Huge impact in terms of the expected valuations.
You know on the set aside meaning that it looks like.
You know they that nicer and definitely it's going to be Oh, buyer's market and a here is our strengths with a with cash.
Ah cash on hand, but it's only we don't see yet you know.
The good.
We want to purchase and we want to have strategically we still don't see you know petunias immediate to put you in T. for Koby 19, a deal you know to buy something for a very attractive moderation because over that maybe it's will come in the future, but not for now.
Two or three months within the crisis.
It sounds good caches King you are in the driver's seat and I guess mm you you have to wait to see what the numbers are and what the attractiveness of the potential acquisition could be and how it meshes hopefully it fits.
Good luck and keep doing what you're doing.
Okay. Thank you so.
Yeah.
Oppenheimer. Please.
[noise], Hi, I just want to clarify so are you seeing any.
New potential for other acquisitions or is it just really too.
Oh, that's how.
Right the other acquisitions reading.
<unk> you how to hide your eye on previously.
[noise], calling say, we didn't see any new opportunities that we didn't know in both.
Or wherever pipeline of.
Cover that's been defined and we oppose the most of them.
With fewer than with the women are much further steps hook 'em again everything is constantly on home.
But there's nothing new that to be sold you to the <unk>.
Must be called a coffee 19 opportunity.
Companies go see for.
Cash and we can support them and acquire them and and then in that looks like.
Okay.
And what other question like what are your subsidiaries that you acquired recently.
How's the thermal cameras and military equipment that could be used at the U.S. border. It's it's something that you've looked at potentially.
The the components, we acquired the three years ago, two years ago, Yeah, Yeah, two years ago <unk>, yeah require the company's <unk>, 55% of the companies run the S.U. boat.
But no download the unlocked or.
No not proper philosophy can also and a and b. was mobile nodes in the enough.
Suppliers of <unk>.
What we can provide if.
The infidels it'd be a 10th of over those would be more since all the.
So unique and also a U.S. based company.
Once we have here.
Some are coming in materials and the other thing because we have on just company to.
More related to military starting a business.
And it is that something you're looking mostly just with.
Product with the M.L.D.N. a Israel.
Yeah.
It was one of the customers of this or something.
<unk>.
Are you looking to increase the.
The 55% at any time.
Yeah.
Yep.
Hmm, Okay right.
Good luck.
Drink covered not cheating.
How did your business yeah.
Thanks again.
Thanks, Yeah.
It costs.
I don't know that.
Question.
Yes. Thank you for coming back to me a couple of follow up here.
At the present levels.
Basically trading it cash.
I would think if I were in your shoes. Your greatest fear is getting bought out by another company.
And the way to prevent that.
Is through education.
And and moving forward.
Faster pace on your Investor Relations font.
No bitchy filed an excellent our company.
And I can't I think it's a very important that you move forward on this for it.
With a weekly.
Telephonic conferences.
Well managers.
And participating in various virtual conferences.
So could you caught me out.
The fear of getting bought out if you're not able to get your stock up and where you're headed relative to increasing your exposure to new industry.
Yeah.
Hi time, and again, you know <unk>, we're happy with the with the hate and I are and.
Ah together, so we have that program to reach out to a new investors and you will say management teams.
The original that program was to participate physically in there.
<unk> Princess.
The plan to attend Eh Eh she'll then.
In your <unk> the basis Koby 19 that.
Cost 10 company and those so conceited.
Yeah I.
<unk>.
I, just see how effectively huh.
And.
Onto the limitations on the concentration what's they have in a in plan together with that breads and his team.
He is to.
<unk>.
Reaching out after this sick, what's new with these two.
Existing and a new potential investors and bring our story to to them.
Huh.
Saying that you're going to wait till after the Cove it.
19 is remedy it or are you going to move forward immediately with virtual conferences and telephonic.
Conferences and allow her investor relations.
Up to better educated to others.
Oh, we we have not waiting for the and the so called in 19, nobody knows when to end so.
Ideas to start a.
Meetings, and clay and calls with with the new people than investors and tell the story.
Good and the only thing you didn't comment was your fear about getting bought out trading at these levels to me that would be my greatest fear of our in your shoes, and you're you're not successful in getting the stock price. So.
Uh huh.
I can't comment about.
You know about P.I. terms that.
No. We do we folks nah physical you know continued and improve the business or did you know the game.
We can deliver it increases improved profitability gold the company than in such a year.
<unk>, maintaining the companies so yeah profitability and and be you know take two hour longer term strategic goals.
And and also in part of their lives together with that work on a improving the company's valuation by a marketing probably still.
Good. Thank you very much for taking my calls.
Continue to believe you're the most undervalued stock a follow up about 150 stocks and I think if you really move forward on the education fraught your stock will trade are much higher thank you again and good job.
Yeah.
Thanks.
[noise] [noise] awesome.
Yes, good afternoon over there gentlemen, I I'll be brief I hope use your family's employees everybody's greater than the golf.
As you guys, probably know and many of the listeners Mr. Willis Mr really Mr. Abovsky at out <unk> collectively long-term holders I think it Mr. Willis Express the frustration that we all share.
Of course with your 40 per cent told her I don't think the the fear of of of a takeover, which is all that imminent. However, one thing I do wish to point out I I did on the last call and for a few years is that we want to get the evaluation up not merely just so that everybody feels better.
Which is true, but the that the shares themselves can become a vehicle as our currency for you to use for future acquisitions. That's you know primarily what how I see it irrespective I believe you guys are aware of this and I don't mean to be patronizing in any manner, but.
Realistically putting in place a very small stock purchase program.
Floor price.
Meaning.
Mr. Well, if we're suggesting in terms of the dollar amount buying a <unk> putting enough floor price you don't name a price you put in the small percentage buyback and you never really have to execute it. It just sets a floor, it's like having a a an imaginary put option for not just for shareholders.
But for a confidence in the marketplace that there is a price below which we will we will be on will you know unwilling to let this stock think and the reason.
Once again this has nothing to do with you know my personal ambition. It has to do with the ability to utilize the stock down. The road is a currency. So I just wanted a point that out that by by putting in a small by back.
Within you don't name a price, it's a percentage and you choose when two executed if indeed, you ever do and it shows coffins for the marketplace and that is one of the things I think you should consider it when you are considering it. The next time it comes up that these are not.
Mandatory, but they do set floors and they do boost confidence and that's what we're looking for in terms of using the stock as currency down the road I have no objection to the store of capital that you have accumulated the company since the last secondary offering like four and a half years ago.
The value I think there's about 380 and change not the stock price, but the value of the price of those additional shares plus or minus I don't have the numbers in front of me so I.
Cash value for example, I say 235, even notwithstanding that you'll probably draw down some of that in the next three months.
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Even at 220 in other words the floor should be something that you guys picking your mind that you do not have to state to the public or two we are sure to us a shareholders, but by just putting in place. The program you are instilling confidence in the marketplace and.
I think we'd be something for you to consider.
And that's it I didn't mean to hugs the line here I hope, everyone as well and I think you're doing a great job navigating a and good luck with the new product I think you should push it sounds like a great way for companies to you know get back reopened faster with some security and I await any comments you have.
[laughter].
Thank you very much like it so oh said and [noise].
It's clear.
Okay.
Well. Thank you I just wish you Oh well.
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I'm definitely management again, I'm very pleased to be having a very strong links game that can navigate it together very committed during this <unk> simple.
But I'm definitely management and Linux female mcgartland, we'd like to thank you.
Continues interesting and longtime suppose a phobia.
Most of them did you next month and then hopefully at home.
Feel safe and sound and the feel of thank you haven't been doing.
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