Q2 2020 Earnings Call
<unk> signal conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.
Okay question you May Press Star then one on your Touchtone phone to withdraw your question. Please press Star then too. Please note that this event is being recorded I would now like to turn the culprit over to Geoffrey Hedrick, Chairman and Chief Executive Officer. Please go ahead Sir.
<unk>.
Well.
Turning to our conference call to discuss our performance for the second quarter.
<unk> part of business conditions.
For the coming either.
Joining me are shown them ask a poor approach.
[music].
Oh for our begin I would like rather read the safe Harbor message that.
Sure Joe Good morning, everyone I would remind our listeners that certain matters discussed in the conference call today, including new products and operational financial results for future periods are forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially either better or worse from those two.
Including other risks and uncertainties reflected in our company's 10-K, which is why would the FCC. Another public filings now I'll turn the call back over to Jeff.
The colonial Barbara.
Uh huh.
Mike.
Root chipping away, we let them work according to lives.
Money.
Dedicated employees show is an ass.
As opposed to student is essential.
Just strength, we keep our operations open to meet our obligations to our customers, which includes markets and are vital to the nations circuit security such as the military.
Well its cargo carriers who are.
<unk> crushingly crucial role and getting medical supplies.
Hey throughout the country.
Every recognized challengers early on we took aggressive steps to protect the health well being of our importers our families our customers.
And our partners as well.
A media.
Ideal actions to minimize the impact to our business.
It was also these efforts have been rewarded.
Oh, 100% the I guess it is cheap members have complied with the new checks you procedures.
Good work my personal heroes.
<unk> <unk>.
These past three months resulted in a quarter over quarter revenue growth.
And the six core.
Seven and which we have generated sequential revenue growth.
Well you know we generated strong cash flow.
What are the strongest scores of Newpage there's back.
Our backlog has increased nearly 10 million higher spend years margins were impacted by <unk> cost fluctuations in the core we expect them to rebound to prior levels.
Two quick.
Of course.
We will deliver production quantities, we will deliver production quantities of our all throttle to the over him this quarter.
Which would represent the second major OEM contract and the general aviation market.
Youre driving six years and development, culminating with the every certification.
The.
Oh, Hi, upset protection and yeah.
Hi adoption.
Into one major OEM production.
The general aviation market and oral trial.
We believe provides an excellent excellent opportunity.
Further instructs us into a market both in terms of an OEM production and retrofit.
In a competitive market. This revolutionary Autothrottle, there's a compelling differentiator that aircraft operators, especially in charter travel military.
That's for separately.
The engine aircraft, where all these threats such oral trial is a unique.
Hi, good source of life saving.
M.C. very upset protection.
I don't really I would comment.
As a part of it.
30, or 40 years.
That.
I was always.
A.
With that call about the fact that they used to refer to the.
The multi engine.
Aircraft, having more afraid towers and single engine never made such.
<unk>.
We now understand why and what we've done here today, we were told by.
I know you engineer.
That.
Although we will push for people.
Hey.
Well one person every four days.
That what we're doing what we Werent I answer that she's doing here today will save lives.
I'm proud of that.
Interest remains strong in the air cargo industry.
Our flat panel display technology.
Richard operators have been installing in the aircraft.
Converting George sprint capacity to meet the growing shipping age, especially from the health care industry in light of the current pandemic.
Certainly our second quarter results six stretched.
Second quarter employers as well as well it was around US however, not significantly impacted our operators today and that there are end markets today appear not to have been affected by many others.
Well, we understand that investors are interested in the future and how the spend that might impact future quarters. No. One can say with any certainty, but we'd recognize it's an added rex process our supply chain.
And our supply chain, we have not experienced significant disruption.
[laughter], though we have seen some minor disruption such as supply of certain connectors.
There are still depended on the F. right before we get kinda officially start officially.
Starting under our oral trials.
Yep.
Under a shelter in place for which could potentially slow CE approval process also some real business meetings and demonstrate <unk>.
Our being reschedule do they pandemic.
Hi merchant on the onset the important thing is that we are receiving new orders and we're working hard to satisfy our obligations to me it's always ours.
In fact, we are actively hiring to make the growing demand has resolved the uncertainty created by corporate 19 pandemic we are.
And and to help.
Adequate liquidity during this period, we originally decided to participate in the federal Paycheck protection program or the care Sac. However, since the time a borrower application additional guidance has it been issued by S.P.A. and the Treasury department that create spread right.
Certainty regarding the qualification of certain requirements for RPP baby well.
The abundance of caution and lineup no guidance, we have concluded that it's prudent to repay the PPV PT level.
This will free up that resource for other companies that have a greater need for the funds.
First half a year is going well and we're optimistic that we can continue and upward trajectory over the rest of the year what goes into the future. Let me turn it over to route for some really boring financial were details.
Thank you, Jeff and thank you all for joining us this morning.
Revenues were.
For the first quarter.
For the quarter of Crystal 2020 were 4.8 million, it's 15% increase over the second [laughter], Nike, reflecting increased product demand as well as increased customer service revenue, which was over 1.2 billion in the quarter.
There continues to be engineering revenue associated with the five development contract.
Gross margins for the quarter or 47.5% that is down from last quarter as well as a year ago due to product mix and an increase in warranty costs and higher labor expense as we step up at a future production demands.
Fully expect margins to returned to levels recently achieved as these expenses normalize.
Operating expenses for the second quarter.
Fiscal 2020 were 2.2 million down from the first quarter and little change from a year ago. So that normalize expenses remain relatively stable. Despite the revenue growth we are experiencing.
Research and development expense was up slightly from year ago, reflecting an increasing amount of internally funded R&D, which is expensed as incurred in contrast to funded R&D, which is expense, which is charged to cost of goods sold.
Wind down of the of five to Mount development contract funded R&D has been significantly reduced selling general and administrative expenses were essentially unchanged as we work hard to keep costs under control.
Interest and other income added $75000 to the bottom line this quarter, which is a little less than last quarter, mostly due to the.
Trees and interest rates.
Due to loss carry backs, we recognized a 309000 dollar tax benefit in the quarter.
The loss carry back resulted from the current Ronald virus aid relief and economic Securities Act repairs that which has been signed into law.
Parents that commenced a net operating loss provision line for the carry back or losses to each other to taxable years preceding the taxable year loss.
We reported 40 net income of 438000, a three cents per share more than doubled the same quarter a year ago as well as sequential improvement from 332000 <unk> two cents per share in the first quarter for the first half the year net income is more than twice that of the first half fiscal 2090.
The company remains in a strong financial position and generated positive cash flow.
500000 doors from operating activities in the quarter.
March 31st 2020, we had $22.6 billion of cash on hand, and no debt.
We believe that the company has sufficient cash to fund operations for the foreseeable future.
I'd like to turn the call over to share.
Thank you rather and good morning, everyone.
That's it really hasn't what kind of exciting and challenging first six months.
Hi, Jeff explain and it had been essential business you have remained open over the course of Pennsylvania shelf set in place directed.
Our first priority, let's say.
And health of our employees chilling, Mike So reacted swiftly.
To enact a plan that Matt.
Beyond the federal and state guideline based on maximizing productivity, although workflows.
Additionally.
Production crews during the month of April was split into two different shifts.
Sure well, because what we call well paid for both weeks.
Although short term productivity was reduced as the result of measures taken we believe you will grow results of this quarter will not be significantly impacted.
The quarterly meeting our delivery deadlines and in fact, no hiring staff up to meet the increase in production requirements.
Hi, John from Jeff.
We expect to start shipping production and all those throw units so on over yet this quarter.
This is encouraging endorsement of our almost your old technology from a leader in the general aviation industry.
As we have mentioned in the past the ability to incorporate vmc mitigation.
Auto throttle provides a tangible competitive advantage to twin engine aircraft.
It seems Oems want to capitalize on this advantage.
Fighting that incorporated beam that technology into their new production aircraft.
That's a great selling points to prospective buyers as it all players potentially lifesaving rollover protection, what's one engine aircraft.
I am sitting mitigation technology, the standard part of our oral small.
Wrapping and I'm anticipating an influx of oral trial production orders.
And while it may not be a year on the big oral strong shipments it is shaping up to be the beginning of a ramp up we believe at significant potential.
Once again, well to review into programs driving cotton results.
The PC 24 program remains on track to deliver approximately 50 fill out of it sets up this year.
It's only a quarter of two of deliveries I carried in our backlog.
Those for which a p. always in high.
You can't understand why we believe our backlog greatly understates, our future revenue potential.
In the commercial transport market, we are experiencing steady demand for Boeing 757767 portfolio of cockpit technology, primarily from the cargo market, which is converting traditional aircraft into cargo travel plans.
In the military market.
You have a recently awarded the production contract for the at five day, the computer that it has been under development.
This is the U.S. Navy fleet retrofit.
With many foreign militaries line do you have five hoping to expand sales into the global market.
Our production KC 46 program also remains on track.
New orders into second quarter, roughly 8.3 million given got some almost 7 million backlog at quarter end.
Well, yes.
That would be feeling the effect of the core Nevada, and then make.
Isn't prospect meetings and demos.
Getting pushed out to July and later.
In addition to revenues generated from backlog up people. You also continue to experience a steady demand for customer service intra quarter book and ship War and the contribution from long term contracts, but only a fraction of the total contract, it's a quarter or not.
MRD backlog.
Let me turn the call bye.
For some closing remarks, thank you Shirley.
[noise] well current conditions make it particularly difficult.
Forecast future sales rising real degree of certainty.
We're confident that the prior progress we've achieved to date has.
Positioned us well to prosper over the longer term.
I want to turn it over there operator for lines for questions and answers.
Thank you.
Thank you we will now begin the question and answer session.
To ask a question you May Press Star then one all your telephone keypad.
If you are using a speakerphone. Please pick up your handset before Pressingly keys to withdraw your question. Please press Star then to at this time, we'll pause momentarily to assemble roster.
And the first question will come from David Campbell, What Thompson Davis and company. Please go ahead.
Hey, good morning, everybody.
I'm wondering that I they are.
They give or all the good news.
[laughter], we're happy to give a tragedy.
It's very good time, except it's an interesting time.
Sure in that's for sure what's that.
With that massive downturn and and.
Commercial Air Transport I guess, it's down 95%, it's hard to believe.
We just send somebody out Joe Wichita.
So I think you said there were only about 20 people on the airplane.
Although he said I wonder if one of the though flights that was a woman that wasn't completely wrap and plastic with where there are risks and an ankle is tank and up [laughter] tend to like a breather [laughter].
Didn't want to take any chances, but wanted to speed still interestingly enough affairs.
Oh I'm more interested in Florida.
From and and charters and business Jets, where you can control number one the people that are going to be onboarding airplane with you and number two you don't have 100 people. So I have an example, we had some friends down in Palm Beach chartered out are they a passenger.
Citation to bring them back up and one that the price was distributed among the a passenger was about the segment as a first class second so it's interesting that we may even actually see a strengthening in that market.
We're delighted to that we've.
Established sharp shorten the door just by the way David.
[music].
I did some looking if I look at that the three production programs, what we call that ongoing OEM type production programs.
Their revenue or at the end of next year will be a core equal.
Just films three programs.
Well be equal to our revenue last year total revenue last year huh.
Now being just comes through ongoing programs.
So it's it's a problem it looks very promising he promised Ron.
You are always to cast.
[noise] they know that thanks for the comments I I just why is it sort of technical question about the taxes.
Cataract care exact provided use some tax benefit in the second fiscal quarter well. He that's the only corridor, though was the third quarter go back to normal tax rate [noise].
Right.
[laughter] impact of the cares.
And going forward, it's it in the past quarters we.
No well, we really haven't had any tax expense. So I don't expect tax expense that's true.
Okay great.
This quarter this past quarter it tended to mitigate that periodic fluctuations in period costs. So it kind of level goes out this coming quarter, they won't be there, but we expect an upturn in both volume and.
In March and Shout at all balance out for a change it worked with that's rather than against us.
So assuming there is pre tax income.
In the third and fourth quarters, there shouldn't be any any charges for taxes, yes, that's yes.
Okay great.
Well.
What about the rest of the theirs is a the <unk> the flat panels.
Growth in the car, though conversion market.
That's likely to continue because the passenger market it will probably stay down for some time.
And they'll be using these past airplanes for a car, though <unk> I'm, sorry, very very accurate observation.
Reality I've been thinking about Europe, Europe, an airline or a carrier and you got all hell of a lot of airplane specific like 576, Savage, which you don't need now because no but there isn't anybody to carry I don't expect to have large markets for several years because people are myself included.
Might be apprehensive about going to your apportionment traveling shell is trying to beat down those areas returning to show the obvious thing. It's a convertible <unk> package carriers, yeah, we've learned and this last three or four months is that people realize.
Far more heavily on Amazon and alike, and you can even see deliveries are in that area. The.
Online ordering I understand it's going up by about 25% to 30% just just in Alaska and I expect that people will get you a short I certainly am getting used to it.
[laughter] very nice so.
We can probably expect more and more I'll take a look at the aggressive action that Amazon Trump.
Which was to essentially build their own fleet.
Airplanes I mean, obviously there are more on chart, but they're committed to that to the Amazon operation I think you're over 80 now and.
It is very reasonable, but they could be up too.
Several hundred a committed cargo aircraft and they all would be converted from five to 767 is presently service.
Yeah, It's amazing to me. The these five 7006 Evans all have old old technology that yeah.
It depends on 5767 at the time it was very advanced that was the Gordon.
Literally there are other airplanes that that weren't Brexit the second time.
Three 7005 Sevens really were analog airplanes, where the 5767 years were substantially I sort of a digital airplanes. So they were they were transitionary airplane and national and.
So they've got a lifestyle and.
There are a very efficient way about mobile cargo.
Six seven has a lot of Oh space to both lots of packages.
Mhm right.
Thank you very much in a good when what do you know what your deliveries now.
I was looking or something this morning, I think site, you can well deliberate and an hour.
Uh huh.
Why would you want Stryker car and drivers store mask, well do that I'm, sorry, why I'm, sorry forget I carried away you got.
No I'm, just saying thanks for the comments and thanks for doing such a good job.
Building the business.
And Oh I'll talk to you soon thank you.
For your support.
Got it again, if you have a question. Please press Star then one our next question will come from Michael Frederic.
Yes, Sir please go ahead.
Good morning, everyone.
Good morning, I have a question a follow up question from the last call you haven't been able to announce the new OEM partner yet it has that been pushed way back or is that still on schedule for maybe the next quarter.
The simple answer is I don't know.
Okay. Okay.
Oh Boy, we're where we have obligations under agreements that just don't <unk> doubled circumstances, and that's all it and there's nothing there's nothing very dramatic about it so people aren't where it doesn't really affect our business anyway, but you're right. It is a cold weather.
Hi, I would say yeah yeah.
Oh boy.
I understand that is odd outcome glare sensors will say, yeah, and I'll be honest I guess, not really hard to figure out who it is but anyway.
Yes.
I want say anymore, but anyhow and another question I had for you you said that you had three or three OEM programs is that the PTC 24.
The the tanker and the and the new OEM are we talking about.
That's exactly right has no that's exactly what it has and they're all solid programs. Obviously the tankers solid appreciate 24 has been it's been a spectacular success has an airplane keep raising their rates and we're adapting our manufacturing to accommodate.
As much as double the right, so we're and stronger and a third the OEM that we don't talk about.
As is quite frankly, we couldn't be more pleased with their cooperation and support.
And they're realization that that this is this is a significant.
Safety feature for their aircraft I will be you need to them for.
So that aircraft in the World I real lifesaver, So that's that's fantastic.
We've got good partners.
I think the prospect of a lot of versus.
Gone it really doesn't reflect all the potential business as an example.
Any any L.E.M.
Maybe maybe I agree to put their your equipment basic on the airplane, let's say standard.
Well, we'll give you to purchase order for the next 20 years. They only they only released purchase orders and over six month period separately Boeing dented <unk> Douglas debt. They they will release, a a six month group of so the only.
The thing we ever see in our backlog are those that six month period. The total if you took it to total over the the the next 10 years or the program would be obviously orders of magnitude larger.
Okay, but to make at the back while you're essentially thing you need a purchase order. These these are.
<unk> leisure orders, where the define schedule is that right down but.
And and and ballpark <unk> I mean, how much time, we talking about the adult or be delivered over how many months I can't answer that I don't know alright, okay. Okay.
Alright, well guys great Great report just.
Doing great appreciate it take it.
Thanks for your support.
Our next question will come from George <unk> with.
<unk>. Please go ahead.
Hey, good morning, guys that was that was fantastic new order number today.
To to follow up on that.
Approximately out of this new orders or how much of this was.
New all we M. autothrottle business versus the the retrofit markets.
And and and and and just in general how is the retrofit market for the auto sense Autothrottle Oh good.
Before me.
The the visitors for the <unk>, starting a really blossom now we're getting a lot of interest.
The <unk>, we've been doing P.C. 12, and now we're doing I've.
Cares as well so.
<unk> retrofit opportunity.
Orders of magnitude larger than.
The Oh, yeah ambitious.
Give you some idea there's probably.
Just one airplane, there's a total market of over 5000.
Opportunities.
So that's huge.
And we're looking at other airplanes that were working on now.
Where are they built over roughly 9000 of the airplanes.
And this all throttle has gone from being a cruise control.
What a lifesaver in a multi engine airplane.
The as you as you're aware of the Addison.
<unk>.
Scenario that we saw on the news where the airplane just generally rolled on over on its back and into the warehouse.
It is not enough savvy and uncommon.
Minerals scenario.
Our system.
Been sort of five to prevent that.
Yeah.
Right.
Are you guys are you guys in discussion with additional always comes on this auto sense.
Yes, we are.
Okay.
So I I'm, the new orders I'm, assuming that some of this is from the from the Autothrottle business correct.
<unk>.
This is off sort of happening is that.
The last couple of months something to finding that and trying to trying to understand.
<unk> relevance.
I think premature I think we have to kind of say.
These things I remember maturing well in light of the they they pandemic and all the other crap, it's been going on I'm <unk>, just think about it under under a pretty adverse conditions, we were able to expand our business I'm in Brooklyn toward the future if we could just.
<unk> heads down at work hard hopefully, we'll keep that going.
Okay. If you look out into the you know back half of this here next year do you expect the gross margins in terms of product mix to sort of stay in this.
Normally zone, you've had the last couple of years Ray and you see any longer.
I mean, there's a there's a bunch of fixed costs associated with them <unk>.
Say building and things like that to just don't need to be expanded.
Therefore, the <unk> <unk> remember I'm I I do remember because I've been around in a while the here that we did over 60 million <unk> 18 million M. profit and then in cash 30% that after tax.
<unk>.
No I don't expect to do that again, but that gives you an idea how.
Sensitive. They then the margins are two volume.
Yeah.
Already alright, thank you.
Thank you.
Our next question will come from Roger Goldman Investor. Please go ahead.
Thank you good morning, and I'm, an investor you guys knew my dad, Who's a long term investor and he died a couple of months ago and now my sister and brother and I are in restaurants and.
He's very much for the good results and the good report a quick question about your cash are you guys getting in the banking business that's a.
Question Gosh, Oh, you got a lot you got a lot of cash on the balance sheet and the questions are there sure any interesting opportunities out there that to do something with it in a low interest rate environment, well, what we're looking at that I'm <unk> I'm I'm reminded about two seconds.
It was it was.
It was seven different s.
And at a time when the federal government felt that had to.
Money to the industry to keep it alive and so they would have cash flow and wouldn't go out of business.
<unk> had bad right.
So I I won't make any apologies for no I I watch.
You too.
And one other thing yeah, we're going to we're going to work how we best huge that the the company has now transitioned into a position we believe that will generate cash ongoing in the future and that will change the the.
Equation. So <unk>, we will look at that I wouldn't I mean.
That you're <unk>.
I I made the company and I.
I always enjoyed your dad, if I remember writing was 95 and I still remember I'm, saying to me you know I got a third of my <unk> My not worth a new guys so get going.
That's right, but he he died peacefully with all his marbles in January and basically told me I mean, Jackie are basically told me don't you dare sell that stuff.
[laughter] yeah.
Yep. Thank you, thank you and <unk>.
97.
97, with all his marbles and I regret it $97 models any came in a drawer and you owe me from Jersey, that's correct.
That's that's correct well hopefully runs on the family anyway. Thank you so much by the way I I <unk>, Yeah, I wasn't asking for anything specific in terms of how to use the cache chip is that'd be lots of bargains out there asset values of a lot of companies are going to be dropping and.
Cash becomes king as you know in this environment.
<unk>.
We obviously I'm mindful <unk>.
Yeah, I'm, not I'm, not asking any disclose anything but.
<unk> commented on yeah.
I think we're okay. I, we were trust me, we discussed it constantly and okay. I Gotta have you would not for me.
When you're doing with the Bunny so anyway.
No okay.
<unk> yeah.
Yeah, well I'm looking forward to meeting you were in Palm Beach in the winter and actually your comment about chartering is spot on that's how we're getting north.
It's a sensible way to do it yeah, yeah, you're right.
And you don't and they actually don't even have to land.
Philadelphia International in fact.
Well, we're going to fly right into Westchester.
Yeah.
Airport is going to land in in Westchester in places like that.
That's where we're going right into Westchester Yep.
Plants here.
Where.
Well, especially in New York H.P. and.
Yeah.
Oh, Okay, well I'll come visit you.
Well.
New York or Pennsylvania.
So no we're we schummer in western mass and winter in Palm Beach.
Okay.
Good luck pretty good life.
Yeah, I <unk> I I grew up and my sister time anyway.
Okay, and we're doing alright.
<unk>.
Right well. Thank you in my best you have to go.
You betcha.
Okay next.
The next question will come from Steve Rudd with Black Wall. Please go ahead.
Hi, guys first and very grateful that you all of the coming into work and an organizing things as well as you have and you know happy to hear everybody's voice on the call we talked about mm delivering production quantities of autos rattle this quarter and if I remember correctly the.
This can write up to $50000.
Per unit so how many.
How many units or are we talking about for this quarter one world couple of doesn't.
A couple of doesn't.
Yeah.
Okay. So that's that would be than a significant impact.
I hope so on revenue.
Okay, alright that sounded different than what we had.
And I remember going about to be honest right right <unk> really I'm pleased that what that our customers.
Committed themselves in such a.
<unk> terrific, where I've been a a hell of a good partner and the program is going along a exceedingly well or even then simulators for the aircraft already and and and and being built as we speak and there'll be training people within a couple of.
<unk>.
Programmers moving along very well.
Okay. So the incremental revenue could be as much as a million dollars for more.
We we don't Wanna, We're we're not gonna.
That's with math.
<unk>.
Well, there's a lot of movie marbles right now right.
Right.
We're trying to keep them together, we're up like focus <unk>, we're going to we'd like to explain what we think is general opportunities and we'll work hard to try to make the best out of realizing those opportunities. Okay fair enough I did note that are gross margins yeah.
<unk>, 47.5% I think they run higher on Autothrottle, so that incremental those incremental sales I'm, assuming our sales.
Take a base of 4.8 million for this quarter, we're going to be running up higher than that with a given that our margins in order to throttle are a bit higher than that.
It should be.
Average gross margin of greater than 47.5 for this for this quarter wherein Ah.
Oh sure when you get it working again.
<unk>.
50% range.
Don't want to expect to help a lot more you can get we bad times that were over 65%.
<unk>.
Trying to run a business where that as a target yeah, probably not going to grow the vision is very fast.
So.
It's it's you know that that <unk> <unk>.
Just appears when you get into those levels, okay that makes sense.
People that are kept maintain those kinda Marjorie there's heidi fleiss.
Oh God.
Alright, I won't take I I won't go for that too much more in a in the me to moment and and and I'm not among those who are <unk> me tooting any negative way so.
About the care Act.
Marketable comment let's talk about the <unk> what is the magnitude of the benefit that we're going to get on the tax the tax benefit because I I somehow that blew past.
Yeah, the biggest benefit.
Right.
As you remember it.
<unk>.
So you couldn't carry you change the law when of course.
Could only go forward.
So this this new.
Whatever the exact date.
Park.
The amount companies that do is a carry back.
For Austin's workers for two years.
Point was cats.
<unk>.
<unk>.
Walk back and that's another way of funding from company. So that's.
The benefit we received from it.
Yep Yep, what's the dollar amount that we should expect to get back because you're talking to have a refund right yeah.
Hundred $9000.
Okay.
Okay, very good and we get to take that in from an accounting point of view, we then take that into.
You can work, it's you have to restate the prior years, what happens with Oh no no. It's it's a it's a it's a now thing so you.
Due to you'll see a a tax benefit of $309000 into.
Okay. So that'll give us you know from the just the number point of view it'll give us a nice presentation just to that point.
Very good the new order number that we had for you know that would be stated in the and the press release is it I take it it's correct that none of that new order number is autothrottle or does it include that the the roughly two doesn't that we just talked about what <unk> what amount.
Yeah. It doesn't include doesn't include again.
<unk>.
I'm, sorry say it again.
It doesn't include or.
Okay. So it includes the the units we just chatted about.
Yes, okay.
Right terrific listen all of you take good care of yourselves in your employees and hats off to your in the business and saving lives and we really really appreciate what you're doing.
Thank you for your support.
I guess that wraps it up thank you for your attention today. Thank you for coming in thank you for a supporter of our company.
Mm.
They're calling friends has now concluded. Thank you for attending today's presentation you may know disconnect.