Q1 2020 Earnings Call
Good afternoon, and welcome to the H.C. to holdings Inc. first quarter 2020, <unk> earnings Conference call.
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I'd now like to turn the conference over to Garrett Edson, Oh I see our please go ahead.
Thank you and good afternoon, we'd like to thank you for joining us to review AC Twos first quarter 2020 earnings result, with me today or Phil Falcone, President and CEO of HC, two and Mike Ciena AC Twos, Chief Financial Officer. This afternoons call is being webcast on our website HC two dot com and the Investor Relations section. We also invite you to follow along with our web.
Cats presentation, which can be accessed on H.C. choose what site again in the Irish section a replay of this call will be available approximately one hour after the call dialing for the replay it's one eight for four or five one to two nine to one with the confirmation code of 101 for three 550.
Before I turn the call over to fill I'd like to remind everyone at certain statements in assumptions and this earnings call, which are not historical facts will be forward looking never being made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995, including among others statements relate to the expected or potential impact of the novel Corona virus Cobot 19, pandemic and there really were.
Sponsors of the government HC two on our business financial condition and results of operations and any such forward looking statements whether concerning the cobot 19 pandemic or otherwise involve risks assumptions and uncertainties. These forward looking statements are subject to certain assumptions that risk factors that could cause <unk> actual results may differ materially from these forward looking statements risk factors.
It could cause these differences or or fully discussed in our filings with the FCC. In addition, the forward looking statements included in this conference call are only made as of the date as Colin as stated in our FCC reports HC two disclaims any intent or obligation to update or revise these forward looking statements, except as expressly required by law during the call management will provide certain information that.
We will constitute non-GAAP financial measures under the FCC rules, such as but not limited to adjusted EBITDA insurance adjusted operating income in insurance pretax adjusted operating income certain information required to be disclosed about these non-GAAP measures, including reconciliations with the most comparable GAAP measures is available in the most recent earnings press release, which is.
Also available on our website and finally as a reminder, that this call cannot be taped or otherwise duplicated without the company's prior consent now I'd like turn the call over age she was president and CEO filter Alkone Phil.
Thank you Gary and good afternoon, everyone. Thank you for joining us and we hope you and your family's remain safe and healthy and it's been a challenging couple of months for everyone. Since our last call in March as everyone has been touched and in some fashion by this pandemic.
We're especially proud of the tireless effort and dedication from our employees HC, two and our subsidiaries as they seamlessly work remotely and onsite when necessary to continue executing for our customers.
Today's call I'll walk through the impact of coded on our businesses as well as a recent progress on our top priorities of debt reduction in overhead costs or see it felt like center will then provide more details on our first quarter performance and then we'll take some questions.
<unk> 19 is that an unprecedented impact on the U.S. and the worldwide economy.
We have evolved from when we last spoke in March from an environment that was clearly starting to implement targeted locked down some select areas to one that saw the virtual shuttering of the U.S. economy and shelter in place at Ics for the vast majority of Americans.
Well once looked like a temporary shutdown migrated into a nearly six week shutdown in most states and while we are beginning to see states reopened mainly in the south and Midwest Theres still a number of major states, including California, New York that remain on locked down for the foreseeable future.
Well, we're all hoping for a V shaped recovery the ultimate impact continues to be increasingly challenging to predict and as such we and our subsidiaries are keenly focused on liquidity for the near term future as well as our fundamental priorities of debt and overhead reduction.
In terms of our Cobot 19 response, thus far we want to provide an update on each of our segments to give you. Some grant more granularity as to our expectations as we navigate through these challenges at the parent company I'm pleased to say that we continue to operate uninterrupted and Weve remained focused on working closely with the management teams of our subs.
City area to ensure were eating them in every way and to ensure they continue to operate as effectively as possible given our near term priority of liquidity, we've been taking action across the portfolio and at the Holdco level to further rationalize costs and responsibly reduce spending.
I'd construction DBM steel fabrication and direction group has seen minimal work stoppages to date as most states considers construction and essential business demand is still there in the broader market as we are receiving a significant number of RFP requests, but new contracts are still not being awarded at this time as customers.
Wait a clear view of the pandemic impact Fortunately our substantial adjusted backlog of 781 million continues to remain near all time highs, which will provide us significant cushion, but like most project based businesses that backlog needs to be replenished, our industrial services group.
Has been somewhat impacted as non essential maintenance repair services as well as various planned maintenance capex projects included in the backlog had been pushed out certain facilities have been temporarily closed.
Well, we expect the cobot 19 impact will cause the steel in construction segment to see some reduction in adjusted EBITDA for 2020 compared to 2019, we remain confident dbms long term potential once the pandemic impact dissipates importantly at this time there have been minimal effect in accounts receivable.
Collections, which is a credit to dbms high quality customers.
Turning to energy, our compressed Nat gas operation E. N. G continues to operate without significant issue well, we've seen a drop off in volume at certain stations by certain customers a significant number of angies larger customers our consumer staples.
Suppliers and grocers, which have seen increased demand in recent weeks a number of our contracts are also under a take or pay structure, which requires a minimum fueling requirement regardless of whether those customers fuel with a N G.
It helps to insulate LNG against short term volume fluctuations with the recent downward trend in oil prices. It it's conceivable that that adoption.
Natural gas vehicles could slow near term, but we continue to believe that clean energy from CNG will become the primary alternative diesel for commercial fleets.
At broadcasting, we believe our broad cast distribution platform remains a significant growth opportunity for H.C. too given the broad geographic reach of our station group and the ongoing acceleration of cable cord cutting across the country.
<unk> Network group, However, as Tech America or Hispanic network will be impacted body pandemic certain AD spend has been deferred and will affect the topline in that units.
In addition, while our capacity lease deals.
Which are the bulk of our contracts remain unaffected some of the expected benefits from our revenue share agreements such as would be in sports and Cheddar news will be delayed.
And our life Sciences Division, we remain very optimistic for both Medibeacon in our two technologies. The recent additional 10 million equity investment from Weidong post money valuation 90 million further validates the viability of our to.
That said the current environment may create a slight delayed Archie as expected commercial launch well the pandemic has not affected the record regulatory process that medibeacon.
We could potentially see delays that could slow medibeacon progress towards regulatory approval that being said it has not changed our long term belief in the value of those entities and in fact, one could argue that the issues discussed around covert 19.
And its effects on the kidney could prove that medibeacon is more valuable than previously thought in addition, as a reminder, both our two in Medibeacon have recently received new equity investments to fund the ongoing activities and as a result, we currently do not anticipate a need for further capital investment from HC two.
Finally at insurance Continental continues to be well positioned with approximately 94% of its book comprised of investment grade securities as with any.
Asset book of this size, we expect certain rating agency downgrades, which undoubtedly will result in higher capital charges on these securities, but the impact will be greatly mitigated by C.G. I see strong RBC rating heading into the coded pandemic at this stage in the pandemic, we've not experience any significant deviations.
From a standard liquidity needs.
Given the challenges covert 19 is presented to all of US we expect there will be some near term impact on our income statement. However, our overall strategic priorities have not changed and to that and we continue to make progress towards significantly improving our capital structure and reducing holdco costs and doing so we.
Continue to believe we will be able to fully pivot spend on that.
Be well positioned to execute on our growth and innovation strategy.
At the end of February we completed the sale of global Marine group and used a large portion of the net proceeds to redeem approximately 77 million of the 11.5% notes at the end of the quarter. In addition, we expect to close and the sale of our 30% ownership and Hmm to hang calling in short order as a result, we will utilize the net.
Proceeds HC two receives from the sale to further reduce the amount principal outstanding on our 11.5% notes by over 50 million all in after the next partial redemption, our 11.5% notes will have a principal amount approximately 340 million at 28% reduction from where it stood at the.
Beginning of 2020.
The pay downs also allow us to realize approximately 15 million in annual interest savings, while still retaining a 19% put option over $30 million to HC two after taxes and customary transaction fees at today's valuation on Hmm that is exercisable in two years we've.
Very pleased with the ongoing process for HC two as we reach the finish line on Hmm as the entire strategic process for global Marine is a testament of our expertise and capabilities to effectively navigate through the complexities and roadblocks in order to realize stockholder value.
Furthermore, beyond our marine services divestitures and the reduction of debt. We wanted to provide a brief update on our current strategic processes.
With.
Back to Continental insurance, we continue to progress in our discussions with our counterparty and have extended exclusivity to sell continental but are not able to come up comment any further at this point in light of the ongoing discussions.
We discussed in our previous calls closing on a sale of continental allow us to continue with our long term goal that reduction while focusing on and simplifying our overall corporate structure.
It relates to DBM global we continue to explore all options, including both the sale and subsidiary refinancing to ensure that we deliver appropriate value to address our capital structure liquidity and strategic plan as we move forward.
And as we've noted consistently we are always exploring other opportunities within the portfolio as we were sharply focused on continuing to improve our capital structure, particularly in these uncertain times.
I will now briefly run through a few highlights of our first quarter performance.
For adjusted EBITDA for the first quarter 2020 was 13.2 million versus 14.2.
First quarter 2019.
Our energy segment performed nicely in the quarter as it nearly doubled the amount of gasoline gallons equivalent from the prior year period. Thanks to the 2019 acquisition of 20 additional CNG stations. The segment was also partially Boyd body alternative fuel tax credit, which will continue to be able to utilize through.
2020.
DBM construction was somewhat impacted in the first quarter by timing of commercial project work under execution as well as seasonally lower contribution from maintenance repair work, but as a reminder, the first quarter is typically the lightest quarter from an adjusted EBITDA standpoint, and while there will be impact from coded as I.
Noted before we would still expect adjusted EBITDA to be a good amount higher in the second quarter of 2020 compared to the first quarter.
At our life Sciences segment in April.
Our two technologies received an additional 10 million in equity investment from Weidong adipose money valuation of 90 million to further from the company's efforts as it gets closer to commercialization.
As a reminder, under an exclusive distribution agreement, while Don will distribute our two skin lightening devices and products in greater China, and other Asia Pacific countries.
And that broadcasting we increased the number of operating stations to 218 at quarter end of which approximately 165 are currently connected to our central cast cloud based system.
During the quarter as previously announced we reached the carriage agreements with both dabble CBS television distribution lifestyle did Jeanette and Cheddar news and LTC USA company.
Finally in terms of our corporate overhead we further reduced recurring SGN a by over a million dollars on a year over year basis.
Importantly, I believe our assets continue to have untapped value. We have the right long term strategy in place to drive stockholder value to reinforce my full and clear alignment with stockholders and desire to create value for AC too.
I took the additional voluntary step a couple of weeks ago of committing to forgo any potential bonus payments I may be eligible to be rewarded in respect of 2020 for any future year performance until our stock reaches an average trading price of at least 750 per share over a 30 day period.
This commitment is further proof of it might complete alignment with our stockholders to successfully execute on H.C. twos growth and innovation strategy.
As we look ahead, despite the pen dynamic and the effect it will assuredly have in the near term.
We remain excited and energized about our longer term future prospects for a streamlined sharply focused and financially flexible HC two.
We continue to believe that by focusing on our unique higher growth and innovation.
Strategy at 82 of energy Broadcasting in life Sciences, while we continue to explore strategic strategic options on DBM global.
We will be best position for the long term to strengthen our balance sheet and maximize the full potential.
Value of our businesses.
With that I'll now turn the call over to our CFO, Mike set a who will discuss some of our financial highlights.
Mike.
Thank you Phil Let's review, our first quarter performance consolidated total net revenue for the first quarter two having 20 was 444.8 million compared to 449 million in the prior year period.
As a lower revenues from the insurance net of eliminations and construction segments were partially offset by increases in revenue from the telecommunications energy and broadcasting segments.
Net loss attributable to common in participating preferred stockholders for the first quarter of 2020 was 83.5 million or $1.82 per share compared to a net loss of one point sixmillion or five cents per share in the prior year period.
First quarter 2020, net loss attributable to continuing operations was 85 cents per share.
Compared to the first quarter net income attributable to continuing operations, a four cents per share.
At the company's core operating subsidiaries, which now comprise a big see Jews construction energy and telecom segment's adjusted EBITDA for the first quarter of 2020 was 13.2 million compared to 14.2 million in the prior year period, that's improvements of energy were more than offset.
By reduced contributions from construction in telecom.
Total adjusted EBITDA, which excludes our insurance segment was 1.4 million into first quarter 2020.
Compared to an adjusted EBITDA loss of 2.2 million in the prior year period.
The improvement in year over year adjusted EBITDA during the first quarter.
It was driven by reduced losses at the broadcasting in other segments and the 1.1 million dollar reduction in non operating corporate adjusted EBITDA losses.
Let's just take a couple of minutes to go into a bit more detail in a few of our segments.
At construction, we recorded adjusted EBITDA for the first quarter 2020 of $9 million compared to $12.4 million in the prior year period.
First quarter 2020 results were impacted by the timing of commercial project work under execution and seasonally lower contribution from industrial maintenance and repair project work.
As of March 31, 2020 reported backlog was 486 million adjusted backlog, which takes into consideration awarded but not yet sign contracts was 781 million.
Mainly consisting of smaller to medium sized projects and provides construction with significant visibility.
As a reminder, the first quarters typically the lightest for construction in terms of generating adjusted EBITDA.
Yes, we do not believe the first quarters indicative of the run rate for adjusted EBITDA, which is consistent with what we generated in the prior year.
That energy, we recorded adjusted EBITDA in the first quarter, a 3.8 million compared to adjusted EBITDA of 1 million for the prior year period.
As Bill noted in his remarks, the segment continues to benefit in the quarter from the renewal of the alternative fuels tax credit or a FTC, which had not yet been approved in the first quarter of 2019.
As well as saying Jeez acquisition of 20 CNG stations at the end of the second quarter 2019.
The FTC is in effect through December 31, 2020.
As a reminder, it is typical that the if we see is only renewed for the current year and one year forward rather than for multiple years in advance but.
Well, we remain optimistic there compressed natural gas continues to receive support on Capitol Hill.
The gross tax credit, which equates to 50 cents per gasoline gallon equivalent is shared with our customers as an incentive for them to continue the conversion of this leads to CNG and overtime larger CMG fleets would mean greater volumes for stations.
Meanwhile, at insurance, we generated pretax adjusted operating income for the first quarter of 6.6 million compared to 28.7 million in the prior year period.
Reduced pre tax A.O. I was primarily driven by favorable claims activity recognized in the prior year period and unfavorable claims activity.
Claims activity for purposes of reserves as forecast on the linear basis, while actual claims activity is not and as such periods and favorable and non variable claims activity as normal.
Insurance also incurred larger expenses due to increases in headcount to support the segment's growth.
As of March 31, 2020 insurance had cash and invested assets of 4.2 billion total GAAP assets and 5.3 billion and an estimated 347 million in total adjusted capital.
At the end of the first quarter. It seemed to have consolidated cash cash equivalents and investments 4.2 billion, which includes cash and investments associated with HC Jews insurance segment.
Excluding insurance consolidated cash was 64.6 million.
Corporate expenses for the first quarter 2020 were 5 million, a 1.1 million reduction from the prior year period.
As we continue to focus on significantly and responsibly, reducing overhead at the holdco level, particularly in the face to the pandemic.
Our first quarter corporate expense is typically higher than other quarters due to normal year round activities such as audit.
In addition, subsequent to the agenda first quarter, we announce additional measures to further reduce CEO and board compensation moving forward.
At the end of the first quarter, we completed the partial redemption number 11.5% notes, reducing or no principal by 77 million.
Upon the closing of the sale of our 30% interest nature men, which we expect imminently, we will announce another partial redemption permits you choose portion of the net proceeds which we expect will further reduce or no principal by over 50 million.
The redemption will be completed in compliance with a 11.5% notes and venture and the combined decrease in aggregate principal outstanding will provide us with annualized interest savings of approximately 15 million.
Well two in one interest payment, we will require a little under 25 million in cash with cash on hand, or new 15 million credit facility. We entered into last month in upstream cash we will receive in the second quarter, including 14 million to be receive BBM later this month.
We are comfortably capitalized to make this june interest payment.
Our plan for 2020 as the upstream over 40 million in cash from our subsidiaries remains unchanged. While we have the capacity upstream additional cash from our subsidiaries of the need arises. We currently intend to keep capacity other subsidiaries as today and we execute on their strategic plans.
We remain comfortable with our overall liquidity position in 2020, while we continue to focus on further expense reductions and pursuing our strategic initiatives to reduce holding company debt and unlock value within its you do portfolio.
Now I'd like to open the call up for questions. As you know we're here to talk today about the company's earnings announcement and not the pending consent solicitation and proxy contest with one of our stockholders and we asked this focus of questions on the company's first quarter earnings operator.
We will now begin the question and answer session.
Ask a question you May press Star then one on your telephone keypad.
If you're using he speakerphone, please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then too.
At this time, we will pause momentarily to assemble our roster.
And our first question comes from Saar Quiche serve veteran of B. Riley FBR. Please go ahead.
Hey, good afternoon, and thanks for taking my question here.
I'll start off with a the construction segment first no you said the adjusted backlog was 781 million.
Near an all time high there and how can we kind of reconcile that against the new no New backlog Awards stated on the call.
[noise].
Well, that's the number as of March 31st.
I'm not quite sure how when you talk.
Talk about reconciling.
So I think I heard Andy commentary that you expect higher EBITDA in the second quarter versus the first quarter is that correct.
Yeah. That's that's typical that if you look back over the last number of years, that's not a that's that's not a typical first quarter is typically the delight us from an EBITDA perspective.
Yes, so the reason I'm I'm using the word reconciles because of the kind of pandemic updates. So just trying to understand you know I understand what's typical from twoq versus one Q, but given kind of the details released on construction independent make and the lower industrial services situation kind of help us understand is this.
Hi, I'm, the second quarter is going to be inline or better than the first quarter.
Well I think as it relates to refilling the backlog that is more important for beyond the second quarter and the third quarter. You know you. If you get if you get for instance in April you get something if you are rewarded the contract it's not like you start and.
You know may.
So.
And that's one of the things with with the with the backlog there's very.
Visibility for over the next 12 plus months.
But there's a lag time between.
Getting a the contract and then starting up that business. So you know at some point, where we believe we're in good shape now, but at some point you have to fill up that backlog backlog for.
Future months, where future quarters I think.
Im not sure if that answers your question or not.
Yes.
Yeah Okay.
So and then also you know if you if you kind of step back and think about the historical margins that the construction business has generated do you still think that margin profile still kind of something that we should take into consideration hasn't or has that kind of been under pressure can you help us there.
Yeah from our best estimates and from our <unk> from our knowledge, we haven't seen any margin contraction per se.
You know again, it remains to be seen how future months and what that looks like but.
There, we haven't seen anything to give us pause or cause for concern around that.
Okay. Thanks for that and I'll switch gears here into the broadcasting segment I know you mentioned lower advertising kind of.
From from heading into the pre covered situation and if if we kind of try to get a sense for when you'd expect broadcasting to break even kind of given this changing environment.
Yeah, you know as I I think as I mentioned from up from my first [noise].
As I mentioned.
From the perspective of.
Broadcast.
One of the reasons you've seen increased somewhat increased expenses is the number of stations coming online.
For every station that comes online you have expenses associated with it you've got your utilities, you've got your tower rent you've got your backbone expense. So if you bring on a tower or bring on a station.
Today.
You're gonna be charged you're going to incur additional expenses today and by the time you fill that up.
There's again, a lag time, so the the business the the from a model perspective.
We've we've actually built a lot more stations than we expected you know I think that the as I mentioned.
The number as of March 31st was 218 stations I think we've built maybe.
Oh, you know 80 to 90 plus stations over the past number of months and you know it takes time to fill those up.
So it has slowed down.
Getting to cash flow breakeven.
But that's the reason and our objective is not necessarily where were the key part of this is is getting the platform complete and and you know our goals are getting to the 250 station Mark. So you will see some added.
<unk> expenses, but that's from a growth perspective and building out the stations you know, it's it's from a break even perspective.
No. We've got a massive amount of capacity that we've got to fill up and I'm, we're doing a number of things, including working with various consultants on that and but there is a tremendous opportunity I don't want to go.
Give you a specific date.
You know our engineering department doing much better than we expected and you know I got an E mail today of the number a few more stations coming online. So I don't think you're going to see anything dramatic on not a bottom line positive or negative over the number of month over the next number of months.
But the the if if you look at it from a again from a station build perspective.
We've done.
But I just I don't want to be wrong, and give you up a bad or a bad time period, but it's not necessarily an aberration in what we expected.
Internally so.
That's fair and I noticed there's you know kind of like over 30 active projects underway and.
If my calculation search correct like over 60 stations need to conduct a the central cost system upgrade that use.
You know basically been deploying yeah, maybe if you can kind of state how much capital you'd expect to spend in either kind of here in 2020 for for broadcasting to achieve all of that and then kind of how would that be funded you know given kind of the lack of cash flow here.
Well.
I wouldn't say, there's a lack of of.
Oh, how you have to look at it as.
We do have cash on the balance sheet, we do have.
Some flexibility with regards to <unk>.
The build out and slowing down the build out to make sure that a one plus one equals to.
So there's no cause for concern on that end.
But.
If you look at from a station build perspective, we've got it down to about $160000 for a station build which is pretty darn efficient.
Incorporating that station or not that necessarily that station, but a station that's been online and putting it under central cast is about.
15 to 20000, so you're not looking at a lot of money.
As it relates to the capex necessary.
To get everything under Central cashed I mean, there's <unk>.
Granted there's there's no need to two at this point slow that down, but there's also no need to speed it up as well I mean, we can operate just as efficiently.
Under central cast or not but it's just more fits it's more can I shouldn't say move more convenient but it is a bit more efficient because your then delivering the content into one.
One to enter into one gateway.
So it's it's more efficient to get every station under central cast, but it's not an absolute necessity. So we can manage that part of the business. If if we need to if it looks like we need to manage cash flows just like we can manage our build out.
Out.
And then some up stations or if you're if your co located there are a lot less than 160000. So there's things that we can do on that end, but were down we're getting down to a point where.
You know we've got another you know 20 to 30 stations to get to our goal of the 250 and it's not necessary that we get that done you know in two months or three months or four months its kind of a high class problem to be in a position where we are because we have.
City substantial amount of capacity.
And there's you know there's been certain things that have slowed us down just from a pandemic perspective, finding rigging I'm, bringing a units and getting everything on time from a from a from a from a labor perspective and making sure.
The various parties show up.
Because there have been certain entities that have slowed down but you know we're way ahead of plan.
I'm not perspective, and we could slow it down accordingly, if need be but at this point theres no cause for concern there.
Okay. Thanks for the color just moving on to the insurance Division I know you mentioned again kind of in advanced discussions and it sounds like you granted a party exclusivity you know how how should investors interpret the context, you gave advanced discussions exclusivity I mean, you know why bother even disclose out if we can.
Really got much more of an update.
[noise].
Well I mean, that's what we can disclose so obviously, we want to try to be as transparent as possible. You know we just thought that we would be asked the question and quite frankly, we wouldn't have extended exclusivity. If we didn't believe there was a deal to be done.
You don't just extend exclusivity for the for the sake of it. So I think that's indicative without going into too much detail of yeah. There's.
<unk>, there's a there's a there's a rationale for extending out of exclusivity it it's not to waste anybody song.
Yes, and so let's assume you know something happens for example in this quarter right regarding the insurance.
How long would that take to close the sale, obviously, there's regulatory things and whatnot.
Is that two quarters three quarters four quarters can you maybe help us frame. It you know assuming a a second quarter close right, yeah, well typically it depends on the the regulators.
Experience or comfort level with the buyer you know when you don't have like when we first stepped into it we didnt have.
We weren't coming with.
The an insurance platform. So it took us a bit longer you know you could be looking at you know three or four to six month plus or minus.
I don't think that's out of the ordinary.
You know the fact I think Theres no reason to believe that this group that we're in negotiations with would have the any.
Any any any issues over and above what a traditional insurance platform would face from a regulatory perspective, because they do have that experience.
So I give guest that gives us comfort that you know the standard time could be you know three four to six months I wouldn't suspect.
You know, while I can't put my finger on it and say it will be done within six months or it will be done at three months you.
You know I think that's reasonable to assume that up one could suspect three to six months within that timeframe.
To close that's super helpful and I'm going to work on the nose switch over to a marine real quick I know that you know the business was sold its not core anymore.
I guess.
On the 30% interest that's going to be sold to hang Tong and close your mentioned imminently close.
How should we interpret the word eminently close [laughter] you know.
Interesting because we actually discussed that.
We feel pretty good that it is.
It is going to always a imminently that it's going to be in short order.
We don't think that.
You know I have to be careful with with what I say, but it's imminent you know means pretty soon I guess.
Scott I I suppose the reason I ask is you know how does that compare to the last calls.
The first two weeks in April.
Well you know you had people I think the pandemic kinda it was in its relative infancy, and you know clearly a people's heads were spending.
But where in a different situation now we're in a different position now there had to be there were certain steps that had to be taken.
For an out for a closing I.E. you know money transfers et cetera that takes time and when you get people out of the office and some entity shut down.
Do you you experienced delay I think we're at a point right now where we feel very good about.
From a timing perspective, where you know in early April it could have closed in one week or it could take four or five six weeks because there were a lot of things that were unknown at the time from a timing perspective, we knew it was going to close. The question was was it going to be the first week of April or the first week agenda.
So now it's to a point where based on what the events that have taken place and what things needed to be done.
We are at the you know or the one yard line quite frankly.
Good. Thank you all cede the floor.
[music].
At this time there are no further questions in the queue I would now like to turn the conference back over to sell Salcombe for any closing remarks.
Okay, well again, thank you for your time today I hope everybody is safe and healthy and again, we are very happy about.
The first quarter, and a especially that a everybody on the team. This.
Safe.
That is the most important thing. Furthermore, if you have a questions that come come up.
Over the next a few days you can always reach Mike or myself.
So with that Ah, Thank you again and could either.
The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.